The Rising Challenge of Attrition in Jammu and Kashmir Grameen Bank

Amid the ongoing unrest across gramin banks in India, Jammu and Kashmir Grameen Bank (JKGB) is undergoing a turmoil of attrition at a rampant pace. Bankers are quitting the job citing major discrepancies in transfer and promotion policies. 

In the last one year from April 1, 2023 to July 12, 2024, Jammu and Kashmir Grameen Bank has witnessed 70 resignations across regions of Jammu and Kashmir. As per official record, most of the resignations are from the region of Kashmir and are of office assistants (clerical staff). 

JKGB has a total of 212 branches across Jammu and Kashmir which witnessed attrition in the past one year.

Why Resignations?

The wave of employee resignations in JKGB has posed a colossal challenge to maintaining the bank's performance amidst a decreasing headcount.

An anonymous employee disclosed to Kanal, “The resignations are primarily from non-local bankers stationed in Kashmir. Factors such as threats from militancy, low salaries, high cost of living, lack of lease accommodation, staff shortages, and the absence of local language-speaking staff are major contributors to this attrition.”

A ground visit to several branches in the valley revealed that many employees, including officers, are languishing in far-flung, militancy-affected districts like Baramulla, and Kupwara in northern Kashmir and Poonch in Jammu.

Image: Locations of a few JKGB branches in sensitive regions of J&K experiencing high attrition.

Another official of the bank said that, “Increased attrition has negatively impacted the bank’s performance. However, despite additional workload and unbearable pressure, the bank returned to profitability after four years of losses.”

Promotion Without Transfer

JKGB has a significant number of instances where branches in Kashmir are staffed with non-local bankers from states like Rajasthan and Chhattisgarh, who have been stationed there for 6 to 8 years without transfer.

One banker, who was promoted from clerical staff to Assistant Manager in 2020 but was not transferred out of North Kashmir, eventually resigned in 2023. The reasons cited included security threats and a lack of motivation due to being stuck in the same region without geographic mobility.

A clerical staff member shared with Kanal, "I have been at the same branch for 5 years without any transfer. Expecting a transfer in JKGB is futile as the management ignores such requests."

“In the name of promotion, a few bankers were moved to nearby branches but not beyond Kashmir. Additionally, staff shortages are affecting the overall performance of the bank,” added the clerk.

Staff Shortage

JKGB operates 90 branches in the Kashmir region, many of which are grappling with staff shortages. Most branches function with only a branch manager and a clerical staff member, leading to issues like unsuccessful recovery of NPAs and low footfall in branches.

Moreover, the lack of recruitment of Kashmiri-speaking daily wage workers significantly impacts NPA recovery and customer footfall.

The National Federation of RRB Officers (NFRRBO) recently addressed the staff shortage issue with the JKGB management. In a detailed letter dated June 27, 2024, addressed to the Chairman of JKGB, NFRRBO highlighted that the current vacancies announced by the bank fall drastically short of the actual requirements as per the S.K. Mitra Committee guidelines.

The letter stated, “According to the committee's recommendations, the vacancies for Officer Scale IV should be 36, but only 3 positions have been notified. Similarly, for Officer Scale III, 32 vacancies were notified against the required 58, and for Officer Scale II, 29 vacancies were notified against the actual requirement of 92.”

The larger concern of the bankers is the regressive operations of the bank that have derailed their morale. Underlying concerns of security and ineffective promotion and transfer decisions further exacerbate the issue.