Its SBI again hitting Head Lines!

Panel Moots Maharatna tag for SBI & Navaratna for PSBs : Economic Times dt July 29, 2010

I wrote on June 30 on this topic after reading a news item then.  It reappears today with some more details.  The main recommendations of Mr Khandelwal Committee to the Government of India are stated to be:-

• Maharatna for SBI, Navaratna and Mini-Ratna status to other State-owned banks;
• Stock Options for 15% staff;
• Rural Stints for hires (including clerical staff);
• Separation of the Post of Chairman and Managing Director
• Setting up of Banking Leadership Development Institute

These are all really welcome recommendations.  Instead of blaming the banking industry for every scam that takes place,  there seems to be a positive outlook in this report.  Public Sector Banks deserve to be treated well for obvious reasons of their undertaking developmental role instead of confining to commercial approach.  It recommends a systematic manpower planning, HR approach as also setting up of a new Institute to groom future Managers and CEOs.

Finally, SBI being tipped straight away for Maharatna by another banker from a PSB is a laudable gesture.  He seems to have done an honest assessment of its size in terms of branches, staff, levels of business and as a trendsetter in several business development initiatives.  SBI deserves.