The attrition rate (the rate at which employees leave a company) in Private Sector Banks is very high, some of the common reasons for this high attrition rate are:
• More job opportunities in banking sector employees
• Interest towards working for Public Sector Banks
• Better Salary Offers
• High work pressure in banking sector (I have personally spoken to a lot of employees at ICICI Bank, and one of the common reason is high work pressure and late working hours).
To resolve this ongoing problem, a lot of Private Banks like Axis Bank, Kotak Mahindra Bank, Federal Bank, Ing Vysya, Ratnakar Bank etc have tied up with Manipal Global Education an created a Program offering a Banking PO Course (Banking Diploma) with a guaranteed Bank Job on successful completion. Candidates are trained about the working culture and knowledge in the Banking Industry. ICICI Bank was the pioneer in this segment offering a famously known as ICICI PO Programme which was an easy entry to India’s Largest Private Sector Bank. Though this has a lot of advantages for the Candidates and Banks, it has its own set of disadvantages as well. Mentioned Below are the Pros and Cons of and the Bank PO Programme in India.
IBPS PO vs Private Bank PO (ICICI Bank)
|Features||IBPS PO Exam||Private Bank PO Program|
|Training||Free Pre Exam Training||9 – 12 months course; fees approx Rs 3.5 lacs|
|Job Guarantee||No Assured Job Guarantee||Assured Job on successful job completion|
|Age & Qualification||Max 30 Years & Graduates||Max 26 Years & Graduates with first class|
|Application Fees & Course Fees||Rs 600 Application Fees (General Category) & No Fees Later.||No Application Fees but course fees approx 3.5 Lacs payable against part salary.|
|Bond||No Bond Agreement to be signed for IBPS PO, though on hiring some banks may have a 1 – 2 years bond.||Though there is not Bond Agreement, if the applicant leaves during training or within 5 years of joining the Bank post training, the Bank would recover the principal and the interest at market rate on the loan amount.|
(checkout our post on FAQs Regarding IBPS PO)
Pros of Private Bank PO Program
Job Guarantee - This is one of the big reason why a lot of candidates join Probationary Officers Programme. Banks guarantee a job to the candidates who successfully complete the course.
On Job Training – Banks offer 3 months on job training to candidates which helps them to understand the working functions at banks.
Course Duration - The course duration is between 9 Months – 12 Months, on completion the candidate is hired by the bank. Compared to MBA or other Post Graduate courses which are mostly 2 years, these courses are completed in maximum 1 year.
No Application Fee - Compared to IBPS or other competitive exams, candidates do not have to pay any application fees.
Course Fees Loan - The course offered by Manipal in association with bank costs around Rs 3.50 Lakhs plus taxes as applicable. This amount covers all boarding, lodging and tuition expenses for the entire course at Manipal Banking Training campus and the entire fee is funded by the bank through an subsidized loan which candidate will repay (60 months EMI) after joining the bank. So ideally there is not monetary investment to be made by the candidate.
Cons of Private Bank PO Program
Training - Candidates have to go through the training process in order to get hired by the Bank. Candidates applying for IBPS have to clear the online exam, interview and using their scorecard are hired by the banks, as and when they have an opening.
Age & Education Criteria - Most of these programme have an age criteria of 21 – 26 years (some of them have it as 25 years) and Educational Qualification required is Graduation with 55% – 60% marks. Students / Candidates meeting these criteria can only apply for the Programme.
IBPS allows candidates with Graduation Degree and Age up to 30 years. So comparatively the criteria for Private Bank PO are more stringent.
Location Criteria - Training is held at Bangalore, candidates have to move to Bangalore till the time the training is completed.
Pay Scale - The Salary of a Probationary Officer after completing the course is approx 3.5 L to 4.0 L from which the loan amount is deducted every month for a period of 5 years, the starting take home salary works to around 25K per month, which is much lesser than the PO drawing at SBI or other Public Sector Banks.
(checkout our post on Salary of Bank Probationary Officer)
EMI Catch - The EMIs are spread over a period of 60 months (5 years), but if the applicant leaves during training or within 5 years of joining the Bank after training, the Bank would recover the principal and the interest at market rate on the entire loan amount for the period that the amount was given as a loan to the Probationary Officer.
Concluding - Bank Officers programme are good for candidates who want to join Private Sector Banks, ideally young freshers / graduates who have recently passed out of college.