PSU Banks Barred from Campus Recruitment

In a setback to business schools, the government has barred the public sector banks from recruiting officers through campus placements.

In a recent directive to PSU banks, the Finance Ministry has asked not to make any appointment against the permanent vacancies by resorting to campus recruitment/interview mechanism.

"Recruitment of officer in public sector banks against direct recruitment vacancies on regular basis by resorting to campus recruitment/interview method may not be in accordance with the law," the directive said.

The move comes in the wake of a Bombay High Court judgment last year, which had ruled recruitment of officers in PSU banks via campus hiring or recruitment method as illegal and unconstitutional. The Central Bank had challenged the High Court's verdict in the Supreme Court. However, Central Bank's review petition was rejected by the Supreme Court.

The Bombay High Court had ruled that not inviting applications from the public at large by issuing public advertisement as illegal and unconstitutional.

The public sector banks could account for 5-7 lakh new jobs being created in the coming years, as close to 50 per cent of their workforce in the lower and middle-level functions will retire in this period, says a recent report by HR services major Randstad.

According to Manipal Academy for Banking, about 4 lakh candidates applied for jobs in public and private sector banks last year. Of these, public sector banks hired 60,000-70,000 candidates, while private sector hired 40,000.

(With inputs from agencies)