Shocking News for Banking Aspirants
IBPS May Stop Bank Recruitment for Few Years
If you are a Banking Job Aspirant, then this news might be a great shocker to you. As per the Recent Reports,the Public sector banks in India are facing a huge crisis due to the substantial increase in their non performing assets (NPA). This in turn is leading to the banks undergoing huge financial losses.
The Banking Sector Creates thousands of Jobs every Year, but there may not be the same scenario from now onwards.
Even RBI has also pushed itself into the matter and ordering them not to hold further recruitment if their financial position is not stable,
IBPS (Institute of Banking Personnel Selection) conducts Exam for all the Public Sector banks. The CWE PO / MT Exam 2015 had around 40000 vacancies, but this number may decrease substantially for CWE PO / MT Exam 2016.
Status So Far?
- Indian Overseas Bank have already confirmed the news. It didn’t even recruit any candidate the previous year.
- The reason accounted was the rise in their gross NPAs (Around 20 of their Total adavances amounting to a whooping 30000 Crores).
- This resulted in a huge loss of around 1500 crores.
- Taking this in regard, RBI imposed PCA ( Prompt Corrective Actionon them).
- As the loss is too big, it is debarred from recruitment unless the loss comes within the permissible limit.
- Even in 2014, the action was taken against United bank of India.
What is Expected in Future?
Not only this, this year it is expected that more than 4 banks will also face the corrective action. If we take the numbers, the gross NPA of all public banks stands at a whooping Rs.5,90,772 crore, a 67% increase compared to previous year.
The banks which are already on the verge of getting actions are
- UCO Bank
- United Bank of India
- Bank of India
- Punjab National Bank
The list may even increase in the next review by RBI, which is proposed in a few weeks. If it happens all these banks have to stop their recruitment process until they bounce back.In simple words.The Merger of SBI with its associate banks is also being considered as a face saving step by SBI.
The information shared above is based on the inputs from Financial Express Newspaper along a few other independent sources. The official notification on this is yet to come by IBPS/ RBI.