New Delhi: Leave of Employees Private sector banks have seen growth of around 25% and this high turnover rate is significant. Operational riskAccording to the latest report on Banking Trends and Developments in India 2023-24. Select private sector banks and small finance banks (SFBs) have high employee turnover rates, the report said Reserve Bank of India (RBI) said.
Total number of employees of Private banks It said it overtook public sector banks (PSBs) by 2023-24, but their attrition has increased sharply over the past three years, with an average attrition rate of 25 per cent.
“High Attrition and Change of employee The rate poses significant operational risks, including disruption of customer services, in addition to loss of institutional knowledge and increased recruitment costs. In various discussions with banks, the Reserve Bank has emphasized that reducing attrition is not just a human resource function but a strategic imperative,” it said.
It said banks should provide better onboarding procedures, extensive training and career development opportunities, mentorship programs, competitive advantages, and a supportive workplace culture to promote long-term employee engagement. Such strategies need to be implemented.
In view of several irregularities observed in disbursement of gold jewelery and loans against jewellery, including top-up loans, the Reserve Bank advised the supervisory agencies to conduct a comprehensive review of their policies, processes and practices on gold loans so that Gaps can be identified and appropriate remedial measures initiated. Time bound method
It said supervised institutions were advised to closely monitor their gold loan portfolio and ensure adequate controls over outsourced activities and third party service providers.
The report states that climate change risks affect financial institutions’ profitability, growth prospects, and inflation dynamics, thereby affecting financial stability and price stability.
It added that to promote the assessment of these concerns by regulated entities, the regulatory and supervisory framework should include better risk management guidelines, disclosure requirements, periodic stress testing, and reasonable assurance and assurance. The functions of the need to be strengthened with determination.