why people are blaming current govt. for less vacancy in jobs..be pragmatic and think that only a govt which has been in power for less than 3 years will decrease your vacancy. Its not BJP or Congress to reduce the vacancy. Its the nature of banking sectors cycle of employment generation.
1) It is a long time process for vacancies to be created. Market share,profit margin, manpower efficiency, digitisation or upgradation in technology to run parallel with world class organisations,policies of an organisation- all these factors come into consideration for vacancy to be created in any industry for future.
2) Take specific case of banks. Lets got a decade back. A voluntary retirement scheme, was introduced early this century(2000 onwards), saw at least 11% of 870,000 bank employees marching out of public sector bank premises. Since then, banks did not recruit too many people while their assets have risen nearly three times, from Rs10.2 trillion in 2001 to Rs29 trillion in 2008. On top of that, a large number of employees retired in 2001-2008 period. They were recruited in early 1970s, after the nationalization of banks. This created a lot of vacancy in banks in 2010-till date to filled up. At some point they will slow down. right? Also since now they have focus more on digitisation so obviously they dont need much manpower.
3) Regarding Merger of banks. This idea is an old one not invented by Arun jaitley. They are just implementing it now and they have to as it is the need of hour. Maidavolu Narasimham,the 13th governor of the Reserve Bank of India (RBI). His report in 1991 recommended merger of public sector banks to make them stronger. It had envisaged a three-tier banking structure with three large banks with international presence at the top, eight to 10 national banks at tier two, and a large number of regional and local banks at the bottom.
4) Regarding NPA creation in 2014-2017. Between 2008 and 2013, public sector banks engaged in indiscriminate lending, which led to the rise in non-performing assets. Assests dont turn into NPA in a day or two. So obviously the laons were some time before till it turned into NPA. A common sense. right? So in these 3 years itself of BJP rule they lent money and it turned NPA. Sounds absurd. You better understand here who is the real culprit here.
5) Earlier in the 90s, the then government had issued recap bonds to borrow from the banks without allowing fiscal deficit to expand. Same thing is being done now to rescue banks. So no one to blame here. It has been done in the past and it is being done again.
6) About 1.22 crore candidates registered with the IBPS over the past three years and 86 lakh turned up to take the common test. During this period, over 99.5 lakh candidates signed up for SBI jobs and 66 lakh of them appeared for the exam. Do you really think only banking sector will be able to solve the unemployment issue by just adding few more thousand seat. A lot of other sectors have to contribute to this.
Constructive comments welcome. Please dont be abusive.