Soon, higher incentives for top PSU bank staff

IN A bid to attract best talent, the incentive structure of the top brass public sector banks is set for revision. In a marked shift from the old policy the finance ministry has thrown open the gate to top private sector...
executives to join the public lenders.
Government bank bosses and their juniors can earn incentives to the tune of Rs 4 to 6 lakh per annum based on their performances. The amount go touch 7 in case of exceptional performance.
We may have a look at the current structure, there is disparity in salary levels of top executives in public sector banks and their private sector peers," a finance ministry official was quoted as saying in Hindustan Times.
State Bank of India chairperson Arundhati Bhattacharya had earlier said that compared to their private counterparts employees of state-owned banks are underpaid and said that it was critical to provide better salaries.
At present PSBs are allowed to allocate only 1 per cent of their profits to pay as incentives to staff. As reported earlier, State Bank of India (SBI) is mulling a novel move. The bank plans to offer up to three-percent of annual profit to employees as part a talent retention and motivation initiative.
According to bank chairperson Arundhati Bhattacharya, SBI has sought permission from the Finance Ministry in this regard. The move is likely to benefit around 2.3 lakh employees.