Last year, a video from HDFC Bank went viral, showcasing a senior manager publicly berating his team for not meeting targets. This abusive behaviour is not an isolated case. Recently, similar incidents involving private banks such Bandhan Bank and even a public sector bank, Canara Bank, have come to light again, painting a grim picture of a workplace driven by numbers, devoid of empathy, and where personal time is seen as a luxury. The absence of accountability for such behaviour allows it to cascade down, perpetuating a cycle of stress and hostility.

“The relentless pursuit of numbers can lead to a culture of fear and anxiety, ultimately diminishing productivity.”

Ramesh Shankar, seasoned HR leader

Why are private banks, in particular, breeding grounds for such intense pressure? The answer is a complex web of factors, with unrealistic targets, communication breakdowns, and leadership shortcomings at its core.

Crushing targets, stifling communication

Every interaction becomes a transaction, the pressure to perform overshadowing the human element. This, unfortunately, is a reality for many in private banking. Ramesh Shankar, a seasoned HR leader, aptly points out, “The relentless pursuit of numbers can lead to a culture of fear and anxiety, ultimately diminishing productivity.”

Stringent sales targets are a cornerstone of performance in any organisation. However, in private banks, these targets often morph into unattainable benchmarks, leading to a culture of fear and anxiety.

Further intensifying the pressure is the fierce competition within the banking sector. New players and fintech startups are challenging the established order, forcing traditional banks to constantly prove their mettle. This relentless pursuit of performance translates to a culture of urgency, where results are expected not just annually, but quarterly or even monthly.

“The influx of new players in the market has intensified competition, forcing banks to adopt a more aggressive approach, which often translates into pressure on the workforce,” says Satyajit Mohanty, VP-HR, Dabur India.

“When there’s a lack of accountability or repercussions for toxic behaviour, it can cascade down the organisational hierarchy, perpetuating a cycle of stress and hostility.”

Nihar Ghosh, senior HR leader

Leadership by intimidation: A recipe for toxicity

Leadership styles play a pivotal role in shaping organisational culture. “Respectful environments foster dignity, while others inadvertently cultivate toxicity,” highlights Nihar Ghosh, a senior HR leader. Recent incidents serve as stark reminders.

Recent incidences serve as stark reminders. The issue escalates when such behaviour emanates from the upper echelons of management. Senior leaders, tasked with setting targets and driving performance, inadvertently set the precedent for acceptable conduct within the organisation. “When there’s a lack of accountability or repercussions for toxic behaviour, it can cascade down the organisational hierarchy, perpetuating a cycle of stress and hostility,” cautions Ghosh.

Furthermore, the relentless focus on short-term gains, driven by investor demands, creates a myopic approach.

“The focus on short-term gains has become ingrained in the banking sector, driven by the need to satisfy shareholders and investors. Listed entities are particularly vulnerable to this pressure, as they are beholden to quarterly performance reports and shareholder demands,” Mohanty emphasises.

Long-term employee well-being and sustainability take a backseat as employees prioritise immediate profitability.  Compounding this issue is the communication gap between management and employees.  Many managers lack the skills to provide constructive feedback, resorting instead to intimidation tactics. This not only erodes employee morale but also stifles innovation and critical thinking, crucial ingredients for long-term success in a dynamic financial landscape.

“The influx of new players in the market has intensified competition, forcing banks to adopt a more aggressive approach, which often translates into pressure on the workforce.”

Satyajit Mohanty, VP-HR, Dabur India

The perfect storm: Young leaders, shifting values

The changing demographics of leadership also contribute to the problem. Younger managers, lacking experience in handling complex situations and managing pressure, often clash with older generations who value stability and respect. Additionally, the evolving values of some company promoters prioritise aggression and results over traditional values of loyalty and respect for employees. This shift can lead to a culture that prioritises immediate results over employee development, hindering long-term talent retention.

“This generational shift in leadership has resulted in a clash of values and management styles, with older generations valuing stability and respect, while younger leaders prioritise innovation and results,” asserts Mohanty.

The path forward: Beyond the pressure cooker

The onus falls on private banks, and the banking sector as a whole, to implement effective strategies to create a healthier work environment. This involves holding individuals accountable for their actions while incentivising respectful behaviour. Regular performance reviews can be used for course correction and support, focusing on development alongside goal achievement. Training managers in emotional intelligence, conflict resolution, and effective communication can equip them to navigate human behaviour and build a supportive environment.

“Addressing these issues requires a collective effort,” emphasises Ghosh. “From senior management to frontline employees, everyone must be committed to cultural transformation and behavioural change.” By prioritising people alongside profits, private banks can move beyond the pressure cooker and create a sustainable work environment that fosters employee well-being and long-term success. After all, a thriving bank isn’t just about numbers; it’s about empowered and motivated people working towards a shared vision. This can be achieved by fostering a culture of open communication, where employees feel comfortable raising concerns and offering suggestions. Additionally, investing in employee well-being programs, such as stress management workshops and flexible work arrangements, can significantly improve employee morale and productivity.

In conclusion, the pressure cooker culture in private banking is a complex issue with deep roots. However, by acknowledging the problem and implementing targeted solutions, banks can create a work environment that is not only profitable but also fosters a sense of purpose and well-being for its employees. This shift towards a more sustainable and human-centric approach is not just ethical but also essential for long-term success in today’s competitive financial landscape.

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The first video, circulated on April 24, captures a chilling scene at Bandhan Bank, where an officer identified as Kunal Bhardwaj launches into a tirade against a junior employee who allegedly failed to meet monthly targets. Bhardwaj’s aggressive demeanour, punctuated by foul language, underscores the hostile atmosphere within the institution.

In the footage, as the apologetic employee promises to rectify his mistake, Bhardwaj’s response is anything but empathetic. “Definitely correct sir?… Are you even ashamed of yourself? This is March?” he berates, exemplifying the culture of fear and intimidation prevalent in such environments.

The second video surfaced on 4 May, exposing similar misconduct at Canara Bank, where officer Lokapati Swain chastises employees for prioritising personal time over work commitments. His scathing remarks, laden with disdain for familial obligations, highlight a systemic disregard for work-life balance.

In a statement, Swain articulated a perspective that underscored corporate allegiance over personal welfare. He stated, “If you will not participate in recovery, including holidays because you want time after working to travel with your family but your hell to your family. What should I do? And the bank has given you a job for work not for travelling with family. I don’t care about my family, I don’t care about my family also, I care about Canara Bank.”
In response to the uproar, Bandhan Bank has issued a statement acknowledging the incident and denouncing such behaviour. The bank highlighted that it doesn’t endorse or promote such an approach and has initiated necessary action.

Similarly, Canara Bank has distanced itself from Swain’s remarks, emphasising its disrespect for employees and their families. Denying support to any such behaviour, the bank clarified that necessary action has already been taken.

As these videos spread across social-media platforms, they serve as a stark reminder of the urgent need to reform workplace cultures within the financial sector, prioritising employee well-being over relentless pursuit of targets.

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On May 21, there were reports in the media that the staff of several public-sector banks may receive a significant payout in line with the performance-linked component in the wage agreement entered into with the Indian Banks’ Association (IBA) in November 2020.

As per the agreement, if any of the public-sector banks report annual growth in operating profits, an increase of 5 to 10 per cent, the staff of the bank are to be given an incentive of five days’ salary, and if the increase is 10 to 15 per cent, they will get 10 days’ salary as incentive. In case of an increase in operating profits of over 15 per cent, the staff are entitled to an incentive of 15 days’ salary.

Meanwhile, Canara Bank and Bank of Maharashtra have already paid their employees their performance-linked incentives. While Canara Bank posted a net profit of Rs 2,557 crore for FY21, Bank of Maharashtra posted a net profit of Rs 165 crore for Q4.

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The selection will be made on the basis of an online test, followed by a group discussion for those who pass the same. There will also be a final interview round.

Interested candidates can start applying starting tomorrow.

The online exam will take place next year, that is, any time between January and February, 2021. The two-hour long online test will comprise 150 questions and the candidates will be given marks out of 200. The exam will test the candidates’ knowledge of English, latest developments in the banking industry and their professional knowledge in the area of specialisation.

The candidates will have to be at least 20 years old and not more than 30 years old to be able to apply for JMGS-I level. For MMGHS-II level, the age range is 22 to 35, wheras for the MMGS-II level, the minimum age is 25 and maximum 38, as on October 1, 2020.

The applicants are expected to possess at least a graduate-level degree and working knowledge of computer systems and the Hindi language.

Meanwhile, the State Bank of India (SBI) has also invited applications for 8,500 apprentice posts. The online hiring process has begun and the application process will end on December 10.

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