High attrition forces ICICI Bank to tie up with varsity

Inks alliance with Manipal University to start one-year programme for probationary officers

MUMBAI: ICICI Bank has roped in Manipal University to offer a Probationary Officer (PO) programme.

The bank, which is facing nearly 20% attrition in various segments, plans to recruit 20,000-30,000 students every year. The one-year programme is likely to commence by the end of November 2007.

K V Kamath, managing director and CEO, ICICI Bank, said: “We need to get the right manpower for our job. Through the academy, we can attract the best managerial talent suited for the job.”

ICICI Bank is mirroring a strategy adopted by leading companies in the recent past as they filter and embellish talent for employment afterwards.

“Being a part of the services industry, shortages are bound to happen. High attrition and rising wage costs is putting pressure on us,” Kamath said.

Saurabh Singh, general manager, ICICI Bank said the bank has “already got 75,000 applications, out of which 40,000 will be short-listed for the test.”

A candidate up to the age of 25 years and a minimum 55% score in any stream will pass the eligibility criteria.

“These 40,000 students will undergo an aptitude test, out of which 7,000-8,000 employees will be selected. The final list of 600 graduates will be filtered for the course. The list would be ready by October-end,” Singh said.

In the past, ICICI Bank has tied up with NIIT to set up an Institute of Finance, Banking and Insurance.

In the last seven months, the institute has placed over 1,000 students and has conducted skill enhancement courses for 4,000 professionals.

Banks like ICICI Bank are facing a high attrition rate of 20% in various segments like treasury management, private banking, insurance and call centre business.

For ICICI Bank, 600 probationers may not be enough. The bank expects to increase the strength to 2,000 in two years.

The programme will be conducted at ICICI Manipal Academy in Manipal and Hyderabad.

Anand Sudarshan, managing director & CEO of Manipal Education, said: “We have invested Rs 100 crore on both the campuses for infrastructure, air-conditioned rooms, video conferencing rooms, auditorium, library and recreation,” said.

The institute is also in talks with 6-7 other banks and companies.  

ICICI Bank has decided to cover the entire fees for the programme. “The probationary officers will be paid a monthly stipend of Rs 2,500 for the first nine months and Rs 5,000 during internship towards their living expenses,” Singh said.

At the end of the course, the probationary officer will be designated as an assistant manager. On completion of the course, they will be paid Rs 3.5 lakh per annum. Those exiting the programme before completion will have to pay the entire course fee of Rs 2.5 lakh.

Apart from this programme, ICICI Bank has tied up with Delhi University, Loyola and Annamalai University. “We are roping up with three other universities including Kolkata next month,” Singh said.