As you are aware adoption of effective human resource management and development policies is vital for achieving the organizational goals and objectives. In this connection State Bank has been encouraging banks to put in place well-defined policies for various areas of operations including recruitment, career progression and severance of the employees. It has, however, been observed that these instructions have not been meticulously followed by some of the banks.

          Keeping in view the importance of the matter it is desirable that all the banks must put in place a comprehensive personnel policy. Accordingly, you are advised to formulate a clearly defined personnel policy, duly cleared by your Board of Directors, covering, interalia, recruitment procedures, compensation, performance evaluation, promotion, separation, training, service rules, etc. and submit a copy of the same to the State Bank for approval. The requisite policy should reach this Department latest by 30th June, 2001.

          Please acknowledge receipt.