1.
INTRODUCTION
Modern Banking system is highly dynamic and challenging. The advent of technology has made
banking more customer oriented. It is no exaggeration to say that modern banking is technology-
driven. In this context, there is a need for continuous-up-gradation of skill and knowledge in the
banking staff. In Banks, there is a need for the continuous training and development of the staff
in the areas of customer care services on operational aspects and behavioral aspects of the
business. How are the needs identified? The training needs are assessed through task analysis
and performance analysis, which can be conducted through surveys or from the departments,
customer complaints, even from the reports on 360 degree feedback system. In case of a large
bank, there two ways of conducting training programs through an established department having
a full time HRD functionary. Who oversees all the training and development functions of the
banks or through an external trainer co-ordinate by the HRD department. These days bank have
recognized the need for training and re- training their staff, in order to develop a competitive
edge over their competitors in delivering high quality services to the customers. Traditionally,
banks have recruited young school leaders and their initial training was either long
apprenticeship or on-the-job or formal training in basic routine operations. Aspirants the
management positions were encouraged the quality. Professionally by reading for associate-ship
of the institute of Bankers or an equivalent qualification. It was advocated that banks should
undertake sound training and development programmes for their employees
Training and Development
After an employee is selected, placed and introduced, he or she must be provided with training.
Training is the act of increasing the knowledge and skill of an employee for doing a particular
job. Training is a short- term educational process and utilizing a systematic and organized
procedure by which employees learn technical knowledge and skills for a definite purpose.
Training is usually considered organized procedure by which people gain knowledge or skill for
a definite purpose. The aim of any training program is to provide instruction and experience to
new employees to help them reach the required level of performance in their job quickly and
economically. For the existing staff, training will help develop capabilities to improve their job
quickly and economically. For the existing staff, training will help develop capabilities to
improve their present jobs, to learn new technologies or procedures and to prepare them to take
on increased and higher responsibilities in the future.
Differences between Training and Development
There exists some basic difference between employee training and management development or
executive development. While the former refers to training given to employee in the operational,
technical and allied areas, the latter refers to developing an employee in the areas of principles,
and techniques of management, administration, organization, and allied ones. The basic
differences between training and development are given below.
Area Training Development
Content Technical skill and Managerial behavioral
knowledge skills and knowledge
Purpose Specific and job related Conceptual and General
knowledge
Duration Short – term Long term
For whom Technical and Non Managerial personnel
managerial personnel
A brief History of Training in Indian Banks
Institutionalized system of training in the banking industry commenced in India in 1954 with the
establishment of the Banker’s Training college(BTC), The Imperial Bank of India (state Bank of
India ( SBI)) also set up three schools almost the same time to train probationary officers is
Calcutta, Bombay and Madras. The focus of training curriculum Until early .1960, however, was
on hard core principles and techniques of banking and the target were entry level officers and
branch managers.
2. REVIEW OF LITERATURE
1. Ritambhra Goswami, Manoj Pandey and Anil Vashisht (2017). Analyzed the training
and development practices in public banking sector and private banking sector. Training
and development is considered to be a key factor in human resource management
practices. It enables the employee to develop their skills to get better result in their
organizational performance. The study concluded that as compared to the public sector
bank, private sector banks are more conscious to provide training to their employees.
2. Thanuja and Suja S Nair (2016) examined the human resource management practices and
their outcomes of public sector and private sector banks (SBT and ICICI) in Nellore
District. The two major components of HR practices namely Training and Development
procedures followed by the employees in the selected bank, were considered HRM
activities relating to training and development procedure were found good in case of both
the banks.
3. Poonam Madan and Jasleen Kaur Bajwa (2016) conducted an investigation to study the
impact of HRM practices on job performance of bank employees. Human resources are
the bone of the organization without which accomplishment of objectives is impossible.
The study revealed that there is a direct impact of H.R practices on the performance, level
of employees. The study highlighted that better training programmes and evaluation of
employee performance are the important element of HR practices which are to be given
due attention by the banks to satisfy their employees and customers. The study conclude
that as banking is an emerging sector necessary changes are required to be made in order
to enhance employee satisfaction to perform better.
4. [Link] and K. Shrinivasa Rao (2017) made on attempt to review the existing
literature on the HRM practices of various Indian banks. It was noted from the discussion
that HRM practices in the Indian banking sector have evolved in the past few decades. It
is now increasingly perceived that HRM practices play a straight role in the
organizational growth and in the context Indian bank initiated .various HRM practices to
address various. When in the spheres of training and development.
5. Chanderjeet (2017) conducted a study to review the human resources management
policies and practices in the public sector banks with special consideration of some
important indicators of banking sector such as performance appraisal recruitment and
selection, training and development compensation. The research opined that a systematic
human resource management policies and practices realizing the need of the banking
sector should be developed in Indian Banking sector.
Objectives of the study
1. To identify the training policies and objectives followed by the Banks.
2. To ascertain the training areas and the adequacy of the training infrastructural facilities
in the banks
Methodology of the Study
The study is based on secondary sources of data. It includes available published literature such as
book, journals, Unpublished their and relevant websites. The study tries to look at the Human
Resource management practice training and development of bank employees.
3. THE EMERGING TRAINING SCENARIO IN BANK
The banking system in India is currently poised for far reaching changes. The emerging business
profile of banks would include non-traditional areas like merchant banking, mutual funds newer
financial services, personal investment consultancy and research services. Besides their; to be on
the top, bank, will have to continuously innovate to find still new areas of operations. It Indian
bank will have to launch new activities; they will necessarily have to innovate. The immediate
and the possible distant changes in the environment will made .Indian banking more complex as
the profile of their bank will undergo major transactions. While they continue to engage
themselves in conventional banking, they will also enter areas of modern business ventures.
These changes will call for new knowledge skill and attitudes and training system will have to
stand up to these challenges .No Indian bank can survive without being up to date with the latest
developments. Indications to this effect are visible. If the banks go in for enhanced
microelectronic assistance for its multifarious operations, it will definitely call for changes in
approaches to training. It is a fact that must significant effect of diversification and technological
revolution are in the sphere of skills with new line of business, product diversification and wide
spread technology adoptions, the type of personnel required in handling jobs under most
complex and competitive, managers will have to match international quality and performance
standards.
THE APEX BANK TRAINING INSTITUTIONS IN INDIA
Reserve Bank of India [RBI] has six training establishments. Three of them namely, College of
Agricultural Banking [CAB], Bankers Training College [BTC] and Reserve Bank of India Staff
College [RBSC] are part of the Reserve Bank. Others are autonomous, such as, National Institute
for Bank Management [N1BM], Indira Gandhi Institute for Development Research [IG1DR],
Institute for Development and Research in Banking Technology [JDRBT], but these are not the
only major bank training institutions in the country. Other institutions are The North Eastern
Institute of Bank Management [NIEBiM], Indian Institute of Bankers [JIB] and the training
institutions of SBI.
COLLEGE OF AGRICULTURAL BANKING (CAB]
The College of Agricultural Banking was originally set up to impart training in agriculture and
rural banking. The college has diversified in to other areas such as the non banking financial
sector, human resource management and information technology. In the near future, the college
proposes to consolidate these activities. Now a day the college is extending faculty support to the
workshops conducted by the reserve bank of India and conducted offsite programmes for state
level financial institutions.
BANKERS TRAINING COLLEGE [BTC]
Reserve Bank of India established Bankers Training College in 1954. It was the first conscious
effort ever made by an Indian institution towards systematic training establishments of Bank of
England and Central Banks of a few Commonwealth countries.
The college has been endeavoring to impart qualitative professional training for the functionaries
of Indian commercial and development banks, foreign banks in India, Reserve Bank of India and
certain cadres of Government of India. The college also receives participants from some of the
countries in Asia and Africa. Besides, the college facilitates formulation/ implementation of
banking policies by acting as a forum for interaction among the top officials of RBI and
commercial banks/financial institutions.
RESERVE BANK OF INDIA STAFF COLLEGE [RBSC]
The Reserve Bank of India Staff College caters primarily to the training and development needs
of officers of the RBI. The college is expected to play a crucial role in upgrading the skills of the
officers to face the challenges of new tasks and introduction of new technologies. This has
assumed an added significance in the context of the large retirements under the Optional Early
Retirement Scheme [OERS]. The thrust of the RBSC would continue to be on probationers and
middle level management officers.
NATIONAL INSTITUTE FOR BANK MANAGEMENT [NIBM]
The NIBM was established in early 1969 as a part of the banking policy enunciated in social
control to serve as an apex institute of the banking system to initiate and coordinate all matters
connected with training of bank personnel and relevant research and consultancy in bank
management problem. Later on, with the nationalization of 14 commercial banks in 1969, the
institute devoted itself in ushering a new era in the development of banking and “it became the
„think tank‟ for the banking industry and leads the industry’s move towards professionalism”.
The NIBM has since then focused on management issues and acted as a change agent in many
areas of banking. One of these was the human resource management. Personal management was
not given the required importance in banks. Formal training was almost absent. Recruitment,
transfers and placements were perceived to be the management’s prerogative.
INDIRA GANDHI INSTITUTE FOR DEVELOPMENT RESEARCH
[IGIDR]
The Indira Gandhi Institute of Development Research (IGIDR) is an advanced research institute
established by the Reserve Bank of India for carrying out research on development issues from a
multi - disciplinary points of views.
The aims and objectives of the institute are to promote and conduct research on development
( in its economic, technological, social, political and ecological aspects) from a broad inter –
disciplinary perspective; to gain insights into the process of development and alternative policy
options and to disseminate the knowledge so gained.
THE NORTH EASTERN INSTITUTE OF BANK MANAGEMENT
[NIEBM]
This institute was established in 1983 and is sponsored by RBI, NABARD and public sector
banks like SBI, UCO Bank, United Bank of India, Allahabad Bank and Central Bank of India,
Indian Bank and IDBI. The institute is set up to assist the development of banking and financial
institutions in the North-Eastern region. It looks after the training and development activities of
the banking institutions in the region. It also undertakes research studies and surveys relevant to
banking and provides consultancy services.
INDIAN INSTITUTE OF BANKERS [IIB]
The Indian Institute of Bankers was established on 30th April 1928. It is the premier Banking
Educational Institute of India with membership of 750,000 on its rolls as individual and
corporate members. The different classes of members are Fellow, Associate, Certified Associate
[CAIIB], Ordinary Member and Institutional member. It conducts different professional
examinations for its members and encourages the study of different aspects of banking.
The objectives behind the setting up of the Indian Institute of Bankers are many including [1]
“To encourage the study of theory of Banking and to institute a scheme of examination and to
give certificates, scholarship and prizes. [2] To promote information sharing on banking and
kindred subjects by training/lecture, discussion, publishing of reading material. [3] To sustain the
competence developed by way of collecting and circulating statistics and other information
consisting of works on banking, commerce, finance, political economy and kindred subjects in
India through Journal, Newsletter, Publications, Seminars, Lecture and Workshop. [4] To
facilitate research in banking and course innovation through award of Fellowship/Scholarship.
[5] To collaborate and co-ordinate with banks‟ own training establishments to ensure healthy
correlation between banking education and training. [6] To provide means of social intercourse
between persons engaged in or connected with the business of banking in India”.
The Institute has opened four zonal offices and around 100 sub – centers in different parts of the
country to provide prompt and better services to its members.
THE TRAINING INSTITUTIONS OF SBI
State Bank of India, the largest public sector banks in the country has got several personnel
training establishments. They include [1] State Bank Staff College, Hyderabad, which focuses on
Functional Training. [2] State Bank Academy, which was set up in 1982 and situated in
Goregaun which specializes in Training of Middle and Senior Management Personnel. [3] SB
Institute for Information and Communication Management, Hyderabad, started in 1987 which is
catering to Technology Planning and Execution and [4] SB Institute for Rural Development,
Hyderabad which was formed in 1981 with the purpose of Training Personal in Agriculture and
Allied activities. The State Bank Staff College at Hyderabad was certified by the Lloyd‟s
Register Quality Assurance International Journal for Research in Engineering Application &
Management (IJREAM) ISSN : 2454-9150 Vol-04, Issue-02, May 2018 268 |
IJREAMV04I023855 DOI : 10.18231/2454-9150.2018.0154 © 2018, IJREAM All Rights
Reserved. regarding the Quality Management System Standards. The Quality Management
System is applicable to the identification of training needs, identification of inputs, conducting
training programmes, evaluation of training programs, feedback processing, research and
publications, selection of faculty, training of faculty and maintenance of infrastructure.
“Training in the State Bank is a pro-active, planned ad continuous process as an integral part of
organization development. It seeks to impart knowledge, improve skills and re-orient attitudes
for individual growth and organizational effectiveness”. Table 2 presents the training
methodology in the SBI in a brief form.
Training Methodology in State Bank of India [SBI]
Training Area Methodology
1 Knowledge Lectures, Exercises,
Questionnaires, Quiz, group
work, Interface/Panel
discussions
2 Skills Case studies, Exercises, Group
Work
3 Attitudes Group work, Role Play,
Exercises, Interface/Panel
discussions, Customer
interaction
4 Training Media Audio-visual teaching aids and
computer aided learning
For selecting, the most suitable faculty talent scouting is done for in-house subject specialists.
Selected faculties are put through structured faculty development training to give further needed
skills and attitude. In-house and external training is given for advanced specialization in the
relative subjects. Usually the selected faculties are senior bankers with varied and rich
experience and State Bank faculties are guest speakers at other reputed institutions.
THE RECENT DEVELOPMENTS IN THE TRAINING ARENA
Enhancing training system is very important to keep with changing pace and existing levels of
activities and to keep pace with technology up gradation. The training system should be able to
take care of both quantitative qualitative aspects of training. Certain major changes required in
this regard are [1] “For the purpose of decentralizing routine skill training activities, training
system has to ensure that software on different skills training is developed, and sufficient
facilities provided. [2] Identify the best trainer talents in advanced areas and provide them with
sufficient incentives, encourage them to develop other specialists, and also draw their attention to
research and in house consulting and [3] Effective linkage between training need assessment and
performance appraisal system to be established.
The Narasimham Committee on financial reforms has also enumerated a number of problems
related to Human Resource Management [HRM] in banking such as “over manning, lower
productivity, indiscipline, restrictive practices, lack of management commitment to training etc.
The committee has recommended radical changes in work technology and work culture as well
as adoption of forward looking personnel policies, which are seen to be objective and consistent
with a satisfying work environment.
4. CONCLUSION
Training and Development of employees are areas, which have got lot of attention from experts
and researchers all over the world because of their importance in direct increase in the
profitability of organizations and the development of countries. As far as India is concerned; the
liberalization of the economy and the resultant up heals have created unprecedented situation and
they call for creative responses especially to training and development of employees in the
banking sector.
REFERENCES
1. Books/Articles
2. Dale S Beach “personnel; The management of people at work “ Mac Millen ,1980
3. Mamoria C.B. Gankar S.V “personnel Management” Himalaya publishing company.
4. Subba Rao P.” Essentials of Human Resource Management and industrial Relations” Himalaya
publishing company
5. Ritambhra Goswami, manoj pandey and Anil vashisht (2017),training and development practices
in public and private sector banks, A International Journal for Research in Engineering
Application & Management (IJREAM) ISSN : 2454-9150 Vol-04, Issue-02, May 2018 269 |
IJREAMV04I023855 DOI : 10.18231/2454-9150.2018.0154 © 2018, IJREAM All Rights Reserved.
comparative study :IJAR11E,VOL-3 issue-3 2017,P P.3807-3816:ISSN(0)-2395-436
6. Thanuja and Suja S Nair (2016), A study of HRM practices in public and private banks with special
reference to Nellore District, International Journal of management and development studies 5
7. Pp44-53(2016) ISSN (online)[Link](print) 2321-1423 [7] Poonam Madan and Jasleen
kaur Bajwa(2016), Human Resource management practices and impact on the job performance
of employees with special reference to banking sector, International journal of engineering
Technology, management and Applied Science, April2016, Volume 4, issue 4, p.p. 30-34,
ISSN2349-4476
8. [Link] and Dr.K Srinivasa Rao(2017),A Review of Literature on HRM practices in Indian
Banking Industry , Imperial journey in Indian Research(IJIR); Vol -3,Issue-4,2017. ISSN2454-
1362,pp-2126-2133.
9. Chanderjeet (2017), HRM practices in public sector Bank of India , International journal of
applied Research 2017 3(7) pp-626-628,ISSN print ;2394- 7500, ISSN online 2394-5869