Laxmi Capital News
Lack of skilled human resources poses a challenge to BFIs

Banksand financial institutions (BFIs) that are under pressure to expand are facinga crisis of skilled human resources, according to stakeholders.

Speaking in theinaugural session of the second series of ‘Human Capital Conference’ organisedby the National Banking Institute (NBI), Upendra Poudyal, board of director atNBI, said that BFIs have been facing the challenge of skilled human resources.

Poudyal mentionedthat BFIs are under pressure to expand, but lack of skilled human resources hasbeen a serious challenge. Citing the recent provision of Nepal Rastra Bank(NRB), he urged the banks to mobilise three per cent of staff expenses forcapacity enhancement of employees, under which working culture and ethicalvalues should also be taught.

Stating thatinvestment in human capital eventually pays back, Poudyal advised BFIs toproperly follow regulatory provision to enhance the capacity of their staff.

The NBI,established through a joint initiative of NRB and Nepal Bankers’ Association(NBA), has been conducting training and skill development programmes foremployees of BFIs to fill the void. He advised NBI to design courses as perdemand of BFIs in changed context.

Also addressingthe inaugural session, AnukoolBhatnagar, vice president of NBA, highlighted thechallenges being faced by the banking industry. Despite being the largest jobcreator, the banking industry has not been treated like it should be by theregulator, he mentioned.

“We have beeninstructed to expand in rural municipalities,” Bhatnagar informed, adding, “Butthe regulator has not take care of the challenges to set up branches wherethere is scarcity of concrete buildings, proper security, internet, road accessand other basic facilities.”

Bhatnagar alsospoke about challenges to retain staff in BFIs. “The talented people aremigrating to other countries and only the average are working in bankingindustry and staffers keep moving from one BFI to another seeking morefacilities, which is really a challenge for the banks today,” he said. Hehighlighted some drawbacks in NRB’s directed lending policy like agriculturefinancing and said that every financial institution does not have that sort ofexpertise.

As per the currentstructure of the country, 75 per cent of the staff of the BFIs need to beshifted to the province and local levels as a large chunk of the governmentbudget is going to be mobilised from the lower layers of administration. Inthat context, staff adjustment will be the biggest challenge for BFIs, as perBhatnagar. He suggested the banks and financial institutions to focus on ruralareas and train the workforce in rural areas.

SanjibSubba, CEOof NBI, pointed out the significance of human capital for running anyinstitution and stressed on the need to focus on developing quality humanresources. Around 150 banking professionals got the opportunity to learn aboutregional and global practices on human resources development from resourcepersons from IDFC Bank, KPMG Academy and State Bank of India, who had beeninvited for the event by NBI.

HarlinaSodhi,senior executive vice president, Human Resources of IDFC Bank, was one of thekey speakers who highlighted the changing dynamics of human resources, andstressed the need to build a culture among employees and agile leader who canhandle changes and achieve organisation goals.

In the event,NishchaeSuri, partner and head at KPMG Academy, discussed changing landscape oflearning and development and emerging HR practices.

Source:The Himalayan Times, 6th February 2018

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