Mumbai: Hiring in banking sector is expected to go up to 25 per cent this year on the back of a growing economy, policy overhauls and improved business sentiments in the country, say industry experts.
“We foresee an increase of about 25 per cent in hiring in the banking sector this year, compared to 2014. Hiring will be across levels, with more action happening at the entry and middle management levels,” PeopleStrong co-founder and CEO Pankaj Bansal told PTI.
With new players entering the market, new opportunities would be created for the senior layer as well, he said, adding that it has been a standard industry trend that a sector undergoing growth phase experiences an increase in salary levels.
“Same will be the case with banking industry. There will be a significant increase in the salary at mid and senior levels,” he said.
Echoing similar views, Michael Page India Regional Director Nicolas Dumoulin said hiring is expected across the board in investment banking, corporate and private banking and NBFCs, given stable government at Centre, policy overhauls, improved business sentiments and improved global outlook.
“We are also expecting team expansions across the board in the BFSI space after a long gap of 3-4 years. Two new banking licenses given to IDFC and Bandhan will also create plenty of job opportunities,” he added.
Further, Dumoulin said the new bank licences are in the process of expanding their leadership teams with candidates from domestic banks as they are more accustomed to the Indian market and assure scalability.
Lower down the chain of hierarchy, banks are more willing to fill positions with people from MNC banks and there is also a rise in demand in skill sets within remittances and cash management as well as a need for product specialists, he said.
This increase in hiring will result in 15-25 per cent hike in increments, Dumoulin said, adding that banks are still maintaining some decorum to maintain consistency and avoid disparity across levels.
GlobalHunt MD Sunil Goel said that the banking sector is likely to witness 15-20 per cent growth in hiring this year as a large pool of jobs is expected to be created.
The two new banking licences, that were given by RBI to infrastructure financing firm IDFC and micro-finance firm Bandhan Financial Services, are also expected to create job opportunities across the board in the banking space, he said.
The maximum number of jobs will include the bottom of the pyramid, but existing banking and financial professionals will get recruited by the new players, Goel added.
Due to the surge in the demand, the sector will grow 30-40 per cent and this will be good news for fresh graduates to fill the gap of resources for the sector, he said.
“Most of the companies will expand their portfolio in the sector to retain the talent and compensation and increment rate can go anywhere between 10-15 per cent for top performers,” he added.