PSU Banks may link pay with performance!
Unbelievable. That I read a news item in Financial Express today about this radical departure in public sector. Only two days back RBI took a bold step of monitoring of pay of CEOs of private sector banks in India. There was huge difference in the pays of private and public sector banks at all levels, leading to large scale dissatisfaction and demotivation among public sector banks. Research has shown that in no way, these PSBs were inferior to private banks. In fact, in recent years, thanks to reforms PSBs have also turned around, became customer-savvy, tech-savvy, profit oriented, productive, modern and so on. They carry out over 80 per cent of the banking business in India. Comparatively, Private and Foreign Banks were only handful, and were not responsive to handle developmental banking vis-a-vis PSBs.