CHAPTER 4

STUDY OF BANKING SECTOR

4.1 HISTORY OF BANKING SECTOR IN INDIA

The conceptual existence of banking transactions is there in India since the days of
Vedas (with the existence of Usury). Also the banking industry started taking its true
form from the ancient Era to mediaeval period till colonial era.

The formalized banking started in India way back in 18th century with the
establishment of three banks under Presidency government. The banks were Bank of
Madras, Bank of Bombay and Bank of Calcutta (which is functioning now as SBI
Bank). The banks underwent many merges after independence. A major breakthrough
happened when many of the banks were covered under nationalization. The purpose of
nationalization was to achieve the then national government goal to achieve socialism.
The stated purpose of nationalization by the then government was also to accelerate
growth in the agricultural and industrial sector. It also aimed to develop the backward
areas and to promote Entrepreneurship.

The banking industry also experienced many revolutions with the major being the
establishment of India’s central banking authority RBI in 1935 (Nationalized in the year
1949). The regulations became more standardized and effective with the
implementation of Banking Regulation Act in 1949. With the development, Banks also
got impacted by the technological development like computerization of banking
transactions, automatic teller machine growth and expansion of banking infrastructure.
With all this, banks became the preference for many career focused individuals. The
systematic approach of the banks have made it a lucrative option for today's workforce.

In the past decade, many significant mergers have taken place like the amalgamation of
Dena Bank and Vijaya Bank to Bank of Baroda, merger of Oriental Bank of Commerce
and United Bank of India to Punjab National Bank, merger of Andhra bank and
Corporation Bank to Union Bank of India. The most recent merger was announced in
2019, Allahabad Bank being merged with the Indian Bank.

95
Currently, banking industry is one of the most significant an impactful industry of India.
As per the Indian banking industry analysis ( January 2 2021), Indian banking sector
consist of 12 public sector banks and 66 private sector banks in which 22 are Indian
private banks and 44 are Foreign private banks. Cooperative banks also formed a major
segment of Indian banking sector.

4.2 PUBLIC AND PRIVATE SECTOR BANKS IN INDIA:

The banks in India can be divided into two broad categories: public sector banks and
private sector banks.

4.2.1 Public Sector Banks

Public sector banks refer to the category of banks that are usually owned by the
government. The management and control of the banks is in hands of the government.
The category of Indian banking sector majorly focuses on serving the society rather
than just earning profits. More than or equal to 50% of the capital of these banks is
owned by the government. Many of the public sector banks were established before
independence and have a long history with immense restructuring. Due to the
revolution in information technology and communication, the banks have seen swift
changes and so have been the HR policies of the bank. Generally all public sector banks
share similar HRM policies.

The public sector banks use combination of methods of job analysis. Also they have
systematic standard procedures for recruitment and selection of the employees. The
employees are provided timely training as many of the banks now have their own
training institutes. They also have tie-ups with apex private training institutions and
foreign training organizations especially for providing training to the senior position
employees. Bank conducts performance appraisal to motivate their staff but the
promotions are majorly seniority based. Banks provide scale up and special increments
to employees. Indian public sector banks have almost a common standardized pay
structure.

Dr R Maneka et al (2014) researched on “Employee Motivation in Nationalized Banks

in India” and stated that the major factors that can motivate banking employees are job

96
security, emotional bonding between management and employees, effective leadership,
career advancement opportunities and challenging work environment.

4.2.2 Private sector banks:

Private sector banks are those banks whose major capital is owned by private players.
Private sector banks could be categorized into old private sector banks and new private
sector banks. Old private sector banks existed in India at the time of nationalization of
public sector banks. These banks were not nationalized and coexisted as private players
in the banking industry.

The new private sector banks follow the revised guidelines of RBI 1993. Indian banking
industry also has a major share of foreign players who have now become an integral
part of Indian banking industry.
Private sector banks primarily work with the profit motive and are considered to be very
competitive and efficient in its operations in order to win the interest of shareholders.
The various processes like loan approval are quicker in the private sector banks. These
banks have lesser and minimal government interference. The employees in the private
sector banks are majorly appointed and promoted on the basis of merit.

Figure 4.1: Employee Strength in Public and Private Sector Bank in Various Years
Source: https://www.alphainvesco.com

97
4.3 TOP PUBLIC AND PRIVATE BANKS OPERATING IN
MUMBAI:
RBI got established on 1st April 1935. RBI was initially established in Kolkata and then
later in 1937, it headquartered in Mumbai. The bank was earlier privately owned and
then later got owned by the government of India 1949 during the wave of
nationalization.

The head of RBI is Governor followed by a further central board of directors. RBI is a
Central Bank and not a regular bank. Its functions and objectives are different than the
other banks. RBI holds monopoly privileges in matters of currency. Due to this special
status received by them, they are popularly known as “banker of banks”.

RBI also performs the function of inclusive growth. It also focuses on maintaining the
liquidity and credibility of financial institutions. It primarily regulates the banks and
ensures the protection of depositors. RBI also has other institutes under his umbrella
name. RBI has established RBI Academy, Training Institute that trains and provides
various courses on topics like central bank, regulators and supervisors. It also owns a
College of Agricultural Banking and RBI Staff College.

RBI Staff College is located in Chennai and works for the knowledge enhancement of
the bank officers. It offers a wide variety of training programs for the newly recruited
to the superannuated officers. It also conducts international programs to train its officers
on trending topics concerned with their area of working.

Perks, benefits and career opportunities offered at RBI:

RBI career progression works in a grading system for class 1st employees i.e. Grade A
to grade F. Grade F is for the most senior most officers that includes the post of
Governors and Deputy Governors.
The Perks and Benefits received by RBI Officers as per eligibility:
● Dearness Allowance
● House Rent Allowance
● Conveyance Allowance
● Education Allowance

98
● Medical Allowance
● Leave Fair Concession Travel Allowance
● Fuel Allowance
● Maid Allowance
● Mobile Allowance
● Briefcase Allowance
● Spectacles Allowance
● Bank Loan Facility
● Furnishing of Residence Allowance
● Life Insurance Coverage
● Interest Free Festival Advance

The salary structure of RBI is very attractive and it also offers various increments to its
employees in regular time intervals. The promotional opportunities are also very
attractive in RBI due to clear hierarchy.

On 4th November 2019, RBI had also issued guidelines for sound compensation
practices of top management executives for improving corporate governance and to
reduce excessive risk taking.

These regulatory reforms included adoption of formal compensation policy,

identification of Material Risk Takers and review of fix and variable pay of senior
executives and many more. Hence it shows that RBI works for the betterment of its
own officers and also envisions the benefits of the officers of other banking institutions.

4.3.2 Central Bank of India

Central Bank of India got established in 1911. An important fact about this bank is that
it was the first Indian commercial bank wholly owned and managed by Indians. The
bank in its due course of time has launched many innovative banking activities like
exclusive ladies department for female clientele. Bank holds a prominent place in the
banking industry because it has a huge network and has a PAN India presence. The
mission statement of the bank talks about leveraging human resources and one of its
values is nurturing potential which gives an insight about the bank’s employee centric

99
approach. The bank depicts many gestures that showcases people oriented approach of
the management.

Employee Motivational Practices adopted by the bank:

● Adoption of philosophy of employee engagement by maintaining both
emotional and transactional relationship with the employees.
● Adoption of philosophy of team building by encouraging cordial relationship
and cohesive teams with shared vision and goals.
● Adoption of moral and just attitude towards workforce
● Development of learning organization
● Rewards for high performance
● Transformational leadership
● Silver Jubilee Awards for employees
Perks and Benefits offered by Central Bank:
● Provision of residential accommodation
● Mid Academic transfer allowance
● Hotel facility for first 15 days of transfer
● Transfer travelling allowance
● Leave travel facility
● Reimbursement of hospitalization expenses
● Loan facility for staff members
● Maternity leave
● Reimbursement of club membership fee
● Duty leave for medical issues and injuries on duty
● Legal and financial support to offices
● Reimbursement of newspaper cost
● Reimbursement of health check-up of staff
● Relief to family of staff who die in harness
● Reimbursement of tuition fees of officers’ sons/ daughters
● Canteen subsidy
● Holiday homes for staff and their family
● Memento to superannuating officers

100
4.3.3 State Bank of India
State Bank of India was established in the initial years of 19th century as the then Bank
of Calcutta on 2nd June 1806. It further got merged with Bank of Bombay and Bank of
Madras and formed Imperial Bank of India in the year 1921.
In the First Five Year Plan in 1951, Imperial Bank of India was taken over by the state
partnered banks so that with the urban areas, rural areas could also develop as it was
one of the primary concerns of First Five Year Plans. Hence under the Parliamentary
Act of 1955, SBI came into shape on 1 July 1955
The major vision behind establishment of SBI was the focus on holistic and national
development. The vision and mission also talk about providing simple, responsive and
innovative financial solution.

Employee Motivational Practices adopted by SBI:

Bank is famous for adopting employee centric approach hence the bank has bagged
many awards for its excellent HR practices. It also has special focus on inclusive
approach and focus on gender diversity. They have strict policies against sexual
harassment at workplace. Also, it provides up to 2 years of sabbatical leave for female
employees, provides constant learning environment by practices like job rotation and
focusses on career development of employees and provides continuous promotional
opportunities.

Employee perks and benefits as per the eligibility of the employees:

● Competitive compensation package
● Housing rent allowances
● Medical benefits including group insurance
● Attractive leave policy
● Leave Travel Concession facility
● Housing, car and personal loan facility
● Scholarships to deserving children of the staff
● Post-retirement benefits

Shalini (2017) studied the HRM practices of SBI in Gorakhpur to evaluate the
motivational level of employees. The author concluded from the research that SBI
needed to alter its traditional HRM techniques and has to focus more on developmental
101
aspects. The areas like communication, bank employee welfare, education, training,
research etc. Require more attention from the management.

Basha (2016) also conducted research on SBI bank and ICICI Bank employees to
analyse the linkage between employee rewards and employee work motivation.

The author found that both the banks had been following similar word practice for the
employees but ICICI Bank had been ahead of SBI Bank in providing fair reward against
the performance of the employees. Another study carried out by a researcher in IGNOU
also confirmed the above findings that employees are quite satisfied with the reward
policy of SBI. The promotional schemes were also found to be satisfactory.

4.3.4 Standard Chartered Bank:

Standard Chartered PLC is a financial services company established in 1969 in London
UK. It is one of the leading international banks with over 85000 employees and a
presence in over 60 markets. Standard Chartered Bank is among top hundred largest
companies listed on London Stock Exchange and on two of Asia's largest stock
exchanges. Its presence is majorly in Asian, African and Middle Eastern markets.

The bank due to its wide global presence has diversity of people, culture and networks.
The bank believes in equality at workplace and also in creating and inclusive and
flexible culture. The bank is recognized as diversity leader by Financial Times list of
European 2021.Standard Bank has also observed Black History Month, International
Men's Day, and International Day of Persons with Disabilities which showcases their
inclusive culture for work force.

The bank also provides freedom of work and also an area of Learning and Development
tools. It provides exhaustive training and development opportunities to employees
focusing on their personal growth. The salaries offered by the bank are competitive and
just. It is reflected in the fair pay charter, a public declaration that reiterates their
philosophy of competitive, equitable and fair pay and benefits to employees.

Standard Chartered Bank also provides performance related compensation. They are
compensated both on performance and value ratings. The bank focuses on learning and
102
development of employees with encouraging regular formal and informal development
and conversations with line managers. Employees are also given right to form groups
associations and bargain collectively thus strengthening the employee relations

Perks and benefits offered by Standard Chartered Bank as per the eligibility of
the employees:
● Group health plans and Dental coverage
● Group life insurance
● Short term disability insurance
● Extended Medical and relocation benefits to LGBT
● Globally revised health and safety standards

4.3.5 HSBC Bank India:

About the bank:
HSBC holding PLC is the sixth largest bank in the world (2020). The multinational
investment bank was established on 3rd March 1865 in Hong Kong with an initial
purpose to finance trade between Europe and Asia.

HSBC laid its root in India with the purchase of Mercantile Bank of India in 1959 which
was established in 1853.

HSBC is famous for giving India its first ATM in 1987.

HSBC is value system consists of virtues like commitment, resilience, accountability

and empowering others. The bank also believes in treating people fairly and being open
to different ideas and cultures.

Benefits and perks at HSBC

HSBC remuneration structure consists of four parts
● Fixed pay
● Annual leave
● Other benefits
● Performance linked incentive and employee share plans
103
HSBC also takes into account the vision and values of the company while paying the
employees. Other than the regular perks and benefits, HSBC also provides its
employees flexible working hours and alternative working methods.

The bank also works towards career development of its employees. Setting career and
developmental goals and providing support and feedback to achieve them is a part of
HSBC’s performance review process. Other career developmental methods adopted by
HSBC are on the job coaching, e learning, and instructor led workshops etc.

HSBC holds regular development program to upgrade its employee’s skills.

Economic Times report 2019 stated that HSBC India has enriched its childcare benefit
policy as a gesture of help in women employees. The age of child to be covered under
day-care reimbursement has increased. HSBC has a huge international network in 60
countries which have employees to enhance and build their connections.
With all these motivational practices HSBC has been awarded as Stonewall Global
Employer in 2015, 2016, 2017 and 2019

Benefits and perks offered by HSBC bank as per the eligibility of employees:
● Fix pay including bank salary, fixed allowance and pension plans
● Health Care: medical, dental, vision, life insurance, disability and prescription
drugs
● Retirement plans, post departure benefits to Executive directors.
● Performance based rewards
● Long term incentive based on performance metrics
● Carbon offsetting
● Child care facilities
● Fitness Club
● Retail vouchers
● Cycle2work

4.3.6 ICICI Bank:

ICICI bank was established in 1994. The bank aims at providing medium term and long
term project financing to Indian businesses. The bank also provides a large range of
financial products and services. ICICI was also the first non-Japan Asian financial
104
situation to be listed on New York stock exchange in the year 1999. Bank has 5275
branches across India.

Motivational practices at ICICI Bank:

The bank provides through the learning opportunities like job rotation, challenging
roles, employee empowerment, career mentoring by superiors etc.
ICICI also has an enabling work culture where employee grievances are pay retention,
communication policy is clear, clarity of performance expectation exists and superiors
pay attention to the development of the subordinates’ organization also provides
superior compensation policies and many growth prospects. The organization cares for
the employees and respects their need of personal time and also supports the employees
at the time of their personal and professional emergencies.
The employees prefer working with ICICI due to the brand name and job satisfaction
and also due to the quality of work offered by the bank.

As per the latest news from Economic Times 2020, ICICI bank has offered 8% salary
hike to around 80000 employees as a gesture of gratitude during the pandemic. The
hike is for the frontline employees as recognition of their services during covid-19.

Perks and benefits offered by the bank as per the eligibility of the employees:
● Fix pay and bonus
● Employee stock option plans

Priyanshi (2020) in her study on employee motivation by ICICI bank states that ICICI
depository limited has a healthy organization structure and workers have good
relationship. Employees have been provided safety measures an increase in salary will
work as a stronger motivational tool.

Another study on employee satisfaction at ICICI bank was carried out by Dr. Suhalia
in 2014. The researcher observed that many of the employees were found dissatisfied
due to poor salary, job insecurity, absence of recognition for work, poor job status and
lack of promotional opportunities.

105
4.3.7 CITI Bank:
Citibank started serving in India in year 1902 in Kolkata. Citibank is working as a
significant financial institution and is currently headquartered in First International
Financial Centre. Citibank has also contributed in bringing technological inclination in
banking sector by establishing CITI group Overseas Software Limited and Iflex
Solutions Limited. These were further acquired by Oracle and TCS respectively. CITI
bank has bagged many awards with the recent being the 2019 Asia Money Bank best
awards for India, as the best International Bank.

Benefits and Perks unique with Citibank:

Citibank has very systematically disclosed its benefits offered to employees on its
special website named City benefits. The bank provides the following benefits to its
employees as per eligibility:
● Plethora of Health and insurance benefit
● CITI retirement savings plan
● Flexible working hours as per eligibility
● Professional assistance to employees for any legal issue
● Citibank employee benefits 401(k) plan that even includes stock option plan.

Citi Bank is also famous for managing gender diversity. The bank also works for career
progress and work life balance of employees. The bank has an Affinity Model to
manage the cultural diversity of work force. The leaders of this program work for
priorities and needs of the employees and aim to utilize the uniqueness of the entire
employee base.

The bank focuses on gender equality and makes representation goals. As for the city
2017 Talent and Diversity annual report, out of the total workforce of 209203, a total
of 106603 are female employees. The bank also pays attention to fair employment
practices and non-discrimination. The bank also provides fair compensation to the
Employees based on individual and company performance. The bank also focuses on
career development of employees and prefers filling vacancies through internal
recruitment by focusing on learning and development of the employees.

106
Citibank also provide ongoing feedback to the employees followed by midyear and end
year reviews. Maintaining work life balance of employees is also a major objective of
Citibank. The institution provides flexible work arrangements, child care facilities,
physical and mental fitness program and parental bonding leaves etc. Recently the bank
announced at 12 weeks sabbatical and extra vacation days to its employees in the wake
of covid-19 pandemic. This clearly proves employee orientation of the bank.

4.3.8 Axis Bank:

Axis Bank was established in 1993 and its headquarters are in Mumbai. It provides
financial services to mid-sized and large sized companies. Currently, AXIS Bank is the
third largest private bank of India. The bank also provides overseas services and holds
over eleven international offices across the world.

Axis Bank motivational practices:

The bank maintains and nurtures the capability of diverse employees. Many leadership
programs are conducted to train the employees. Axis Bank also provides employee
engagement opportunities like informal networking platforms, providing employee
connect, customized HR processes, celebration of events etc. Bank gives awards to the
dedicated, passionate and committed employees at regional and departmental levels.
Also employees are motivated by organizing storytelling and experience sharing for
exhibiting role model behaviours.

Bank provides many learning and development opportunities by classroom programs,

certification programs and also by providing e learning opportunities. Bank has
provided many learning interventions to its employees like AXIS Academies, Axis
competency profiler and Axis Bank - Coursera tie up. Bank provides many leadership
programs like top leadership development program, executive leadership program,
business leadership program, Axis Aspire etc.

Bank promotes ‘Freedom of Association’ to its employees and also focuses on whistle-
blower policy and employee grievances. AXIS bank also holds policy on human rights.
It provides guidelines to employees regarding ethical working conduct, prevention of
sexual harassment and non-discrimination. Bank takes health and wellbeing measures
and provides safety and security services to its employees.
107
News on HR website ‘People Matters’ flashed recently regarding talent acquisition
strategy of Axis Bank. Axis Bank tried to transform the threat of global pandemic into
an opportunity to benefit from the productivity of employees that comes in while
working from home. Amid pandemic, the bank had made a decision to hire 1000 joiners
who will work from home for the organization. This shows the adaptive talent
acquisition approach of the bank.

Axis bank also started a program known as ‘Beyond the manager. The program aimed
at the sense of identity in the digital world. Rajiv (2019) researched the employee
performance appraisal, rewards and recognition of Axis Bank of Andhra Pradesh. The
researcher concluded that the results of performance appraisal rating are not directly
linked to the promotions and other motivational opportunities. Also many line
managers were not found following proper process in reviewing the performance of the
subordinates.

4.3.9 Bank of Baroda

About the bank: Bank of Baroda is the second largest nationalized bank of India that
provides international banking and financial services. The bank was established in the
year 1908 at Vadodara, Gujarat by Maharaja Saiyajirao Gaikwad II. The bank, later,
got nationalized in the year 1969 by the Government of India. The bank has around 99
overseas branches does ensuring a great employee diversity.

The bank has a dynamic and vibrant environment. The bank takes care of the career
progression of the employees. It has many programs for classroom training for officers
and clerks and many cultural on-board exercises. The bank also provides branch
rotations as a job satisfaction initiative. It also has a carefully crafted career path policy
to give exposure in various different segments to create holistic bankers.
Bank also has succession planning programs in talent management programs in place.
Bank offers various employee benefits like LTC facility, concession on staff loan,
housing accommodation facilities etc.

In 2020, Bank of Baroda organized psychological counselling for around 8,000

employees on pilot basis to control the stress level among employees amid the global
108
pandemic. This shows the inclination of the bank towards the mental wellbeing of its
employees.

4.3.10 Kotak Mahindra Bank:

Kotak Mahindra Bank was established in the year 1985. The bank in its first year started
its bill discounting business and in couple of years entered lease and hire purchase
business. In 1991, bank established its investment banking division. In 2003, Kotak
Mahindra Finance Limited became first non-Banking Finance Company to get
converted into a bank. The bank has seen an unprecedented growth and 2018, it
launched Kotak Infrastructure Debt Fund.

Employee motivational practices at Kotak Mahindra Bank:

Kotak Mahindra Bank provides maternity insurance and benefits to pregnant
employees. They are exempted from night shifts and get full paid leave for 26 weeks
for first two children. They cannot be asked to resign during pregnancy. In 2020, the
bank has also introduced fitness allowance for the employees. It's a part of bank “Health
to the Power Infinity” initiative. To make work from home more comfortable, the bank
has announced very unique female working allowance.

Dr Saritprava (2018) studied the impact of rewards and recognition on employees in

the banking sector. The researcher studied the employees of Kotak Mahindra Bank and
HDFC Bank. The researcher had a positive observation and concluded that bank
succeeds in retaining the quality employees. The rewards that the bank provides, leads
to improved work performance.

Bank has employee oriented philosophy as the head of the bank bullied in empowering
employees which ensures a sense of ownership among employees. It even forms a part
of their core values.
The bank believes in building dynamic ownership culture in sense of responsibility
among its employees.

The bank takes many initiatives like Wellness initiatives, Employee engagement
programs (festival celebrations, involving families, In-house sports tournaments and in

109
house library). The bank also holds regular interactions between subordinate and
leaders as a feedback helps in building a better organization.
Organization also provides various rewards and recognition like Kotak RACE, I
Applaud and long service awards.

In Business Responsibility Report published by the bank in 2017, the bank has
mentioned employee well-being as one of its principles. Also the bank has mentioned
employee engagement practices like launching of employee portal ‘Redscape’ that
publishes the opportunities for connecting employees with the bank. Kotak Mahindra
Bank also focuses on ‘Women Safety’ and organizers women safety workshops in
office in office premises.

4.3.11 Federal Bank of India:

Federal bank of India was established in the year 1931 and it is currently headquartered
in Kerala. The bank was earlier known as ‘Travancore Federal Bank Limited’. Federal
bank of India is a Pioneer in Indian commercial bank and has 1284 branches across the
country. The bank provides all conventional and non-conventional banking services.

Employee motivational practices of Federal Bank of India:

The Employee orientation of the bank reflects in the bank's mission statement itself
which includes their mission to develop pride and loyalty in the employees.
The bank conducts employee engagement programs and recognition programs to
motivate the employees by appreciating and recognizing their dedicated and hard
efforts.

The bank also conducts developmental programmes and facilities like State Of The Art
training facility and fully equipped library. The bank also has employees union
affiliated to All India Bank Employees Association. Many benefits and service
conditions are negotiated with the union. In an interview with People Matters; the senior
Vice President and Head HR, Dr Satheesh P.K, unfolded many employee centric
strategies of the bank. He stated that despite of having 12500 employee base, the bank
believes in deciding and up skilling.

110
The bank invests a large amount for learning and development of its employees
and works on their skill advancement. The bank has a huge female employee base and
hence bank has introduced programs like Maternity connect. The bank provides
medical insurance two employees and their family and dependents. The Bank also
provides counselling programs for retiring employees. Federal Bank of India has also
strongly moved towards techno driven and automated HR processes to create separate
and experiences right from the job application level to the interview process.

4.3.12 Canara Bank:

Canara Bank was established in the year 1906 by philanthropist Shri Ammembal Subba
Rao Pai in Karnataka. Bank got nationalized in the year 1969. Canara Bank was the
first bank to achieve ISO certificate for its branch. Also the bank initialized the issue of
credit cards for farmers and provisions for agricultural consultancy services. The bank
holds 10495 branches and 13023 ATM across India (as on September 2020). The bank
is known for its unprecedented contribution in rural self-employment and overall rural
development.

Employee benefits at Canara bank as per employee eligibility:

● Reimbursement of amount for purchase of briefcase
● Reimbursing mobile bill charges
● Staff welfare measures of employee getting a sizeable operating profits of the
bank
● Festival advance
● Provision of staff housing loan, car loan, two wheeler loan
● Provision of clean DPN
● Provision of house rent allowance, conveyance charges, cleaning expenses,
newspaper allowance, furniture allowance, halting allowance, deputation allowance,
officiating allowance, balance sheet allowance and faculty allowance
● Provision of medical aid and canteen subsidy
● Provision of business development expense reimbursement

Work culture at Canara Bank is made to induce family culture amongst employees.
New ideas from the employees are welcomed and growth of the employee is facilitated.
Canara bank has taken many HRD initiatives like providing professional training to the
111
employees with the establishment of the training school and college across India. Hence
the culture of the bank is popularly known as Canbank Family Culture.

The bank provides Employee Suggestion Scheme to improve the system and procedures
of the bank. Self-development of the employees is encouraged by the bank with the
establishment of ‘Study Circles’ which is also considered as innovative HRD practices
of the bank. The bank conducts many brainstorming sessions to strengthen employee
idea generation and to stimulate thinking process of the employee.

4.3.13 UCO Bank:

UCO Bank was established in the year 1943. The bank has its headquarters in Kolkata.
It also has two large International Financial centres and Hong Kong and Singapore. The
bank is also engaged in other services like foreign exchange and more than 100 major
centres of the country provide core banking solution.

Employee Perks and benefits provided by UCO bank as per employee eligibility:
● Medical and Group Health Insurance schemes
● Assistance to the family members of the employees who died while being in
service
● Various prize schemes and scholarship scheme
● Newspaper reimbursement cost
● Financial assistance to employees who have physically and mentally retarded
children
● Health check-up, eye check-up, spectacles cost and hospitalization bill
reimbursement
● Payment of funeral expenses to the family of retired staff members on the death
of the retired employee
● Half yearly closing allowance to award staff
● Provision of graduation pay
● Leave travel allowance ,halting and transportation allowance
● Rotational transfer
● Sports policy
● Sabbatical leave for female staff
● Compensation to bank employees who gets killed in bank robberies
112
● Provision of privilege leave
● Granting award like the Daftary award and Milestone award to employees
● Housing loan, marriage loan, UCO education loan, UCO shelter loan scheme
● Festival advance to the Employees
● Compassionate appointment
The bank is employee oriented and adherence to the rules

Case study:
One of the zonal heads of UCO Bank in Kolkata demanded salary of employees for
non-performance but the proposal got promptly shot down by management.
Management representative agreed that such a step may demotivate the employees.
Even the employee associations reached immediately and disapproved the
move. Hence very promptly this action was suspended and this proves that the bank
holds employee centric values.

Pushpanjali (2016) studied the job satisfaction level of employees of UCO Bank. The
researcher concluded that job satisfaction of employees is high and they have the zeal
to achieve organizational goals. Also the employees have good relationship with
management. Superiors guide the employees during working. All employees are
satisfied with the facilities provided by the bank.

4.3.14 Union Bank of India:

The bank was established in the year 1919 as a limited company. Its headquarters are
at Mumbai. The bank is one of the most prominent public sector banks in India. The
bank has around 9,500 domestic branches and more than 75000 employees.

On April 1 2020, Andhra bank and Corporation bank were amalgamated into Union
Bank of India. One prestigious fact about the bank is that the initial head office building
of the bank at Mumbai was inaugurated by Mahatma Gandhi in 1921. Also in 2003,
Union Bank of India was amongst the first public sector banks to initiate anytime
anywhere banking along with Tele-banking.

113
Employee motivational practices at Union Bank of India:
The bank has dedicated and committed diverse workforce with around 75000
employees all over the country
● The bank provides increment to the Employees like stagnation
increment, yearly increment graduation and post-graduation increments.
● Various allowances like dearness allowance, house rent allowance, washing
allowance, cycle allowance, Hill and fuel allowance, split duty allowance, halting
allowance and conveyance allowance physically challenged employees
● Provision of special pay
● Payment of overtime
● Provision of privilege leave, extra ordinary leave, maternity leave, paternity
leave and special leave.
● Medical aid and hospitalization reimbursement
● Retirement benefits
● Provision of various loans facilities like conveyance loan ,gold loan, NSE loan
and housing loan
● Compassionate appointment
● Staff welfare measures like medical clinic and tie up with hospitals
● Canteen subsidy
● Provision of holiday homes and transit quarters
● Honorarium to Union youth for extraordinary and outstanding performance

Bank also has systematic training policy in place. It provides training and fulfils the
need of general and specific segments. The training are delivered as per the needs of
the organisation and individual employees. It provides an opportunity staff members to
work towards their personal development. Other than conventional training methods,
the bank also provides mentoring coaching and on the job training. The bank also has
a progressive HR policy and systematic unbiased performance management system.

4.3.15 Punjab National Bank

Punjab National Bank was formed in 1894 at Lahore Pakistan. It is known to be the
first bank which was completely handled by Indians with Indian capital. The bank has
been in news due to transformations as 9 banks have been merged with Punjab National
Bank. Oriental Bank of Commerce merged with United Bank of India in the financial
114
year 2019-20. The bank, as on September 2020, is the second largest public sector bank
of India.

Perks and benefits offered by the bank:

● Financial assistance to employees children, to the family if the employee dies
while on service
● Awards to the Employees
● Holiday homes
● Library facility for the employees, canteen facility
● Medical facility, hospitalization contribution scheme, group insurance scheme,
employee relief fund and also benevolent fund scheme to those who have mentally
challenged children
● Reimbursement of newspaper expense, entertainment expense, purchase of
stationery items, cost of business attire, expenses for engaging personal drivers, lodging
expenses and expenses for travel on duty
● Schemes for retired employees
● Redressal mechanism for sexual harassment at workplace
● Provision of bank vehicles for senior executive
● Sabbatical leaves for women employees, bereavement leave
● Various allowances like halting allowance, conveyance allowance
● Housing loan facility

Dr Satish (2019) study the practices adopted by Punjab National Bank of Kangra district
Himachal Pradesh. The researcher found that the officers of all the studied branches of
the bank had similar satisfaction level regarding the HR practices and also demographic
factors did not have a major impact on satisfaction level of employees regarding HRD
practices.

Dr Pradeep (2013) also study motivational tools for employees used by Punjab National
Bank. The researcher stated that employees were found to be satisfied with bank's
practices. The study also revealed that interesting work and good pay are key to
employee motivation.

115
Subhash (2014) when compared the HR policies of ICICI bank and Punjab National
Bank found that performance appraisal system, organizational development and
training and development of ICICI Bank were better than that of Punjab National Bank.
But both the banks were found to have good HRD practices.

4.3.16 Yes Bank:

Yes Bank was established in the year 2004 and is headquartered in Mumbai. The bank
offers many banking and financial services. The bank has Pan India presence. It has
also bagged many prestigious national and international awards for robust performance,
finest capital, service, knowledge, transparency in banking and world class
infrastructure.

The motivational practices at Yes Bank:

● Learning and development practices at Yes Bank: The bank follows knowledge
driven approach by implementing many unique approaches. The bank has centre of
excellence known as Yes School of Banking to impart skills and knowledge to the
employees for achieving the strategic business goals of the organization.
The bank has internal knowledge training experts for imparting training to
the employees. The bank implements many professional entrepreneurship programs,
talent management and leadership programs. Bank has its own LMS for enabling online
learning for the employees.
● Employee engagement initiatives: The bank has followed a 5 ‘C’ employment
engagement model wherein they engage the employees with culture, communication,
career, connect and care. The employees bond through various unique and best practices
of the bank like evening get together, applauding for exemplary achievers and by
celebrating birthdays and festivals.
● The bank has taken many employee fitness initiatives
● Yes bank has also implemented YES-MENTOR program to mentor the
executives with formal and informal communication and grievance redressal.
● Yes bank is a techno savvy bank which is proved by the use of modern in
trending initiatives that it takes to merge IT and HR.
● The bank has an unbiased and merit driven performance management process.
It also organizes Yes Talent Optimization programs

116
As per the economic times report 2016, the bank is moving towards the paperless
procedures. The move will make the employee benefit process easier for employees
and the employer.

Shalini (2016) researches the human capital optimization and engagement at Yes Bank.
The researcher stated that Yes bank is a superlative place to work as an employee. The
bank has bagged many international awards for employee talent management,
continuous innovation and excellence in training. The bank even targets and brands
itself as ‘Employer of Choice’ due to its exceptional and unique Human Capital
Management practices.

The Bank's key differentiators are:

● 5 years Commendation Initiative
● YES Golden Pin
● CEOs League of Excellence
● YES Personality
● YES Club Fit
● YES Bank’s HRIT System
● YES CONNECT
● YES My Voice
● YES Y Top
● YES MENTOR
● YES to Employee Branding
● Talent Management Initiatives
● Learning and Development Initiatives

4.3.17 Indus IND Bank:

Indus Ind Bank is a private sector bank established in the year 1994 by Srichand P
Hinduja. The bank is a promising choice for many public sector undertakings and large
corporate houses. The bank has also received many awards for its excellence with the
recent being the Best Commercial Bank Of The Year( India) and the best Innovation
in Retail Banking in 2018 at International banker awards.

117
Indus Ind Bank also has many overseas offices at Abu Dhabi, Dubai and London which
indicates its employee diversity.
Measures taken for the employees by the bank:
● The employee safety measures taken by the bank are stringent and are directly
overlooked by the senior management
● The bank provides insurance, health and wellness facilities like disability
insurance, dental and vision insurance.
● The bank provides work from home facility and gives provision of maternity
childcare and flexi hour’s benefit.
● Indus Ind bank provides extra perks like employee discount, free lunch,
membership of gym and employee assistance programs.
● The bank also provides on the job training and organizes diversity programs to
support the employees professionally.

Learning and development of the employees on the philosophies of Indus Ind Bank:
The bank culture is employee centric and the principles that the bank follows are
transparency in communication, provision of Creative Thinking platforms for business
improvement, participative management, employee consciousness and providing merit
based rewards. The reward and recognition awarded by the bank to its employees are
performance linked.

4.3.18 Indian Bank

The bank is headquartered at Chennai and it was established in the year 1907. In 1932,
Bank started its first overseas operations in Colombo. In 2019, Indian Bank
amalgamated with Allahabad Bank

Perks and benefits provided by the Indian Bank to its employees:

● Medical facilities and aid to retired officers
● Provision of holiday homes
● Health check-ups, group insurance policy for staff members, accident insurance
policy and reimbursement on the expenses of treatment and surgeries
● Provision of residential accommodation
● Computer loans, housing loans
● Canteen subsidy
118
● Reimbursement of conveyance and travelling expenses
● Scholarship to the dependents of the bank employees
● Reimbursement of accessories cost to the physically disabled employees
● Leave fare concession for foreign trips
● Awarding Memento on superannuation
● Legal and financial assistance to employees against false external complaint
● Festival advances

Promotional policy of Indian Bank is in the form of two channels: Fast channel and
Seniority channel Indian Bank also provides performance linked incentive under group,
individual and campaign specific category. The bank also provides many training
opportunities to the employees’ performance appraisal system of Indian Bank is
adapted with the changing times. The bank uses self-appraisal method for appraising
its staff.

4.3.19 ABN AMRO:

ABN AMRO India started its operations in the year 1920. Earlier the bank was working
towards the core corporate business segment and then it further diversified in two large
range of services. ABN AMRO has over 16 branches in India and operations in 11
cities. The bank is one of the most profitable foreign banks in India. ABN AMRO has
also received many prestigious awards for being Best Bank, for ranking on business for
branch and also for operating profit per branch.

The bank is planning to yet increase its footsteps in India. As per Business Standard
report 2019, Dutch based bank has planned to invest 1 billion in India through the route
of selective mergers and acquisitions in order to increase its distribution network and
market share in India.

Motivational practices for employees at ABN AMRO:

The bank believes on the approach of ‘Working for the projects that matter’. The bank
believes in imbibing expertise, sense of responsibility, accepting challenging tasks to
enhance the innovative attitude and to foster team spirit amongst employees.

119
ABN AMRO portrays itself as a learning organization. The core values of the bank for
its employees are trust, professionalism and being ambitious. The bank strongly
believes in diversity and inclusion as the diverse employees lead to generation of more
ideas and better solution. The bank aims to be an attractive employer. Another angle to
the diversity approach of the bank is giving equal opportunity to women. In 2018, 28%
of senior management positions of the bank were held by women. The bank has also
received many awards for working in this aspect. The bank also hires the people who
suffer from occupational disability with the belief that talent has no limits.

Ex organization: ABN AMRO believes in creating a sustainable world class and

meaningful employee experience (ex). The bank believes that only a good employee
experience can lead to a good customer experience. Bank has developed ex designed
principles. It is planning to architect employee journeys and will optimize design
thinking and agile in action.

Employee engagement practices of the bank:

● Best start: To attract candidates
● Let me help you- Supporting and assisting the employees
● Meaningful growth- Enhancing learning and development in the employees
● I owe you- Recognizing talent of employees, providing sabbaticals, taking steps
for wellbeing of employees and appreciation for long-term contributions
● Great ambassadors- Creating good external reputation and positive alumni
experience

4.3.20 Bank of Maharashtra

Bank of Maharashtra was established in the year 1935. The bank is a public entity and
it deals with huge array of financial services. The bank has 1832 branches. It got
nationalized in the year 1969 which led to its fast expansion. The bank achieved
autonomous status in 1998. In the year 2017-18, Bank of Maharashtra underwent
technology scaling which included conducting online training for the staff.

Employee motivation practices of Bank of Maharashtra:

120
Employee value proposition of Bank of Maharashtra includes providing employees and
accelerated growth and lifelong learning. Also the bank believes in the value of
diversity in inclusion.
Growth oriented culture: Bank claims to possess a growth oriented culture with its pan
India presence and huge network

Perks and benefits by Bank of Maharashtra:

● Festival advance
● Medical facilities and provisions
● Leave travel concession
● Various loan facilities like vehicle loan, housing loan, consumer loan etc.
● Terminal benefits like pf and gratuity
● Post-retirement benefits
● Perquisites like medical aid, residential accommodation, entertainment
expenses, club membership fees etc.
● Various allowances like dearness allowance, house rent allowance, adjustment
allowance, personal allowance, area allowance, deputation allowance, closing
allowance, split duty allowance, hill and fuel allowance, custodians allowance,
officiating allowance etc.

4.3.21 Bank of America

Bank of America started its operations in India in 1964 and offers a wide range of
financial services to multinational companies and government entities. The Bank of
America has many branches in India and one of them is headquartered in Mumbai.

Employee benefits provided by Bank of America:

The bank has been a pioneer in conducting research on ways of improving employee
productivity. Bank of America, in its continuous research, had concluded that the
employee financial wellness has a direct and great impact on the overall happiness and
productivity of the employee. The employee motivational level and focus on work
improves when the employers provide them appropriate financial and non-financial
benefits. The report also stated that gen Z employees also need appropriate debt
management as it's a universal obstacle in fulfilling the growth plans of an employee.
Another major area of employee financial wellness is the predictable as well as
121
unpredictable healthcare expenses. This indicates the employee orientation of the bank
and hence bank supports the financial, emotional and physical wellbeing of the
employees.

The bank also believes in the principle of diversity and inclusion. It focuses on
attracting, retaining and developing employees. The bank has great diversity in terms
of gender and geography. It has created Global Diversity and Inclusion Council to
support this philosophy. Bank believes in pay for performance philosophy.

Employee networks: Bank of America builds many employee networks so that the
employees are connected with each other on various common grounds and can build
strong ties with each other. It improves productivity of the employees. As per the bank’s
human capital management report, 2020, the bank has been very sensitive TOWARDS
employees in the crisis hit year by announcing no corona virus related layoffs in 2020.
The bank has taken utmost care of employee help by transitioning 85% of workforce to
work from home. Bank believes in sharing their success by providing special
compensation awards. Bank also provided additional location and personal day
flexibility to employees. The bank also provides learning opportunities to the
employees by arranging many learning tools like learning hub, women executive
development program, accelerated growth program etc.

Reskilling: Bank believes in retraining and reskilling the existing employees. Bank of
America provides cross functional responsibilities and exposure by many programs like
Career Path Tool, Pathways Career Program, Tie with Year Up Organization and
Learning in the Academy: Development and Coaching Organization. Bank also owns
its own training institute. More than 23000 employees of the bank have been benefited
by the reskilling programs.

Top management commitment towards maintaining the ethical standards and to have
proper compensation programs has been one of the key features of the bank.
Talent management: Bank hires the best talent from the world taking into consideration
the diversity aspect.

122
Support services to the employees: Bank provides support services to its employees in
matters of leave and absence, medical accommodation, terminal illness, domestic
violence, retirement and in critical events like natural disaster or death of a loved one.
Bank provides equal pay for equal work and competitive compensation.

4.3.22 RBL Bank

RBL bank was earlier known as Ratnakar bank and was established in 1943 and
headquarters in Mumbai. The bank provides its financial services across various
verticals and is continuously expanding its network across the nation with 266 branches
and in 20 states and union territories.

One of the mission statements of the bank talks about enabling work culture at the bank
and realizing employee as a pillar of success. This depicts the employee orientation of
the bank. In the 76th annual report of RBL bank published in the year 2018-19, the bank
stated that employees have been the driving force behind the growth of the organization
with the increase in employee’s strength 8 times in 9 years.
RBL bank believes in developing inclusive workplace for employees and provides the
employees nurturing and fulfilling environment.

The bank provides many learning and development opportunities. The annual report
18-19, states that the business for employees has increased from 9.1Cr in financial year
2015 to 19.3 Cr in financial year 2019. This shows the bank has satisfied and productive
employees. RBL bank also organizes many employee enrichment programs envisioning
the growth of the employees.

The bank focuses on career development of the employees by organizing training and
skill building programs. In an economic times report( 23rd April 2020), CIO of RBL
bank mentioned that they effectively transitioned 6000+ employees to work from home
by expanding their capacity and virtual desktop infrastructure thus keeping the safety
of the employees intact during covid-19.

Additional employees were personally reached by HR business partners of the bank and
even dedicated helpline service was started for the employees. Head HR, CSR and
internal branding of RBL bank mentioned in her interview ( December 31st 2020) that
123
during pandemic, bank took many measures for the physical and mental wellbeing of
the employees by ensuring manager support and by providing digital training and
development to the employees.

4.3.23 DBS Bank:

DBS bank is a multinational bank with its headquarters in Singapore. It was established
by the government of Singapore in 1968. The bank provides financial services in
various verticals with dominance in consumer banking, asset management and treasury
and markets. In India, DBS bank headquarters in Mumbai with 33 bank branches across
the country. In November 2020, Lakshmi Vilas bank was merged with DBS bank.

Employee motivational practices at DBS bank:

● Work culture: Bank provides joyful, respectful and open minded work culture
to its employees. The major values which drive the work culture of the bank are
purpose, emphasis on long lasting relationship, strong team, innovation, decisiveness
and fun at work. The bank calls this mantra ‘pride’.
● Health and wellness: The bank provides medical insurance, leave benefits,
flexible work arrangements and exposure to wellness and recreational activities.
● Work life balance: DBS bank takes measures so that employees can fulfil their
role back home. Family leave, paternity and maternity leave is provided. Also activities
like annual kids@work and family day are organized.
● Learning and development opportunities: Bank has designed a dedicated career
portal to assist and guide the employees in their professional development. Bank
provides internal mobility and cross departmental projects. Also scholarship programs
and professional qualifications are provided to the employees.
● Employee financial management: Bank assists employees in their financial
planning.
● Employee recognition: DBS bank rewards the employees on quarterly basis.
Also peer to peer recognition programs honour the achievements of employees. Bank
also provides service recognition awards. The bank has also won the world's Best Bank
Award 2020 by Global Finance.

An article on People Matters published in May 2018 stated that DBS bank won Aon
best employer- India award, 2018 on account of its employee engagement practices.
124
DBS bank provides a self-learning environment to its employees. Bank focuses on
challenging employees to be creative and innovative in finding solutions.
The bank has developed an app named ‘DBS Power Up’ to facilitate employee
operations. The employee orientation of the bank can be understood by the latest
initiative of DBS bank. As per human capital online report (November 18 2020), the
bank is planning to provide formal job sharing scheme for its employees where in
employees will share the responsibilities of one full time role. This initiative will bring
a wave of transformation in flexi work environment of the organization.

DBS bank transforms its working technologically within weeks during covid-19 in
order to reduce risk and protect the employees. The bank is realigning in its online
infrastructure to become future ready. The bank is equally focused towards maintaining
gender diversity with 40% of senior management and around 60% of the overall
workforce held by women. They provide flexible benefits, pro-family employee leave
schemes, infrastructure support and other support schemes to new mother.
The bank designed an innovative working environment for employees by providing
them freedom to choose where they want to work, what they want to work and how
they want to work. The bank also provides market competitive pay to employees with
pay calculated by performance measured against balance score card.
DBS bank’s HR team strategy refines its learning platforms. Also the banks recruitment
process is digitally driven. DBS bank is also a part of HRD Asia as top HR team
2018.As per report of BW Business World website (5th June 2019), DBS bank work
culture eases employees working journey.

Few best practices of DBS bank are:

● Mantra of pride
● Technology assists employees
● Professional mobility and global career mobility options
● Nurturing talent pool for succession planning
● Rewarding the loyal employees thus enabling employee retention

4.4 CONCLUSION:

125
Public sector banks are observed to follow traditional human resource management
techniques. Various types of perks and allowances are provided to the employees taking
care of all the aspects of employee needs. Many perquisites are also provided for the
dependents of the employees. Public sector banks are very old in its origin. They are
gradually adopting intrinsic motivational techniques like employee engagement, career
development and learning opportunities. Private Banks are found to practice modern
motivational techniques. They provide more freedom of work and performance related
compensation. As per the secondary sources, the declared perks and allowances are not
as varied and structured as provided by public sector banks. Employee oriented culture
is depicted in private sector banks as many facilities are provided like flexible working
hours, job rotation, fitness club and child care facilities. Also the work culture at private
sector banks is enabling and promotes good relationship. They also promote many
leadership programs. Private sector banks are observed to address the diverse aspect of
progression like focus on diversity and inclusion. Hence the work culture improves and
leads to better work performance for the leading to greater profits and more success for
the organization.

The source also shows that public sector banks mostly adopt conventional motivational
techniques whereas private sector banks are found to be innovative in introducing new
motivational techniques showing the focus on research on human resources. The
secondary source studied during the research also proves that private sector banks
follow progressive HRD practices. They believe in human capital optimization and are
more employee-sensitive.

126