Public Sector Banks seeking apprenticeship to strengthen customer services

New Delhi: In a move to bolster customer relations, many public sector banks are hiring apprentices for the first time through their apprenticeship programs in semi-urban and rural areas, amid a gradual decline in the workforce over the years.

Recently, Union Bank of India, Canara Bank, and Indian Overseas Bank announced that they would recruit 500, 3000, and 550 graduates, respectively under a year-long apprenticeship program for a stipend of up to Rs 15,000. According to executives from these banks, they are hiring apprentices for the first time.

Bank of India has also received board approval to recruit in a staggered manner 1,300 apprentices, who are likely to be deployed in customer relations, which, according to an executive from the lender, are becoming crucial, especially for liability mobilization.

"The (apprenticeship) program focuses on deploying apprentices in semi-urban and rural branches to enhance customer relations. They will work to understand customer needs and address issues, aiming to improve customer satisfaction,” said K Satyanarayana Raju, MD & CEO, of Canara Bank.

While there is no obligation on banks to absorb them on completion of their program, the experience gained is expected to help apprentices get opportunities in the financial sector in the future, said a senior executive from a public sector bank.

 The banks can use these apprentices in areas where they have a shortage of employees, especially in attending to grievances of customers such as senior citizens, and share the workload of bank employees who are under pressure, he said.

They will be mostly recruited in their hometowns where they will help provide better services, he said.

The move is in line with the government's Apprentice Act, another senior executive at a public sector bank said, adding that apprentices may also be deployed for the banks’ back office functions during their training.  

Under the Apprentices Act of 1961, it is obligatory on the part of enterprises with a manpower strength of 30 or more to engage apprentices in a band of 2.5 per cent to 15 per cent of their total staff strength (including contractual staff).