Wednesday, June 20, 2012

PSU Banks' salary more than Pvt. Banks' : RBI

The average cost per employee for public sector banks has overtaken that of their private sector peers since FY11—a development that has emerged from data released by RBI on Tuesday. This has prompted RBI to raise issues of productivity. The central bank has warned that public sector banks are losing their cost advantages with per-employee expense of public sector banks today being 150% of their peers in the private sector. The central bank has said that an HR transformation is required to address the issue of lower productivity as there is competition for talented manpower.
"The per-employee expenses of public sector banks have gone above that of private sector banks and today, is more than 150% than that of private sector banks. This is despite the fact that pension expenses of PSU banks are not fully reflected in their staff expenses," said K C Chakrabarty, RBI deputy governor, while addressing public sector bank chiefs at an HR conference last week. The deputy governor came up with numbers which showed that the staff strength of public sector banks had gone down between 1998-99 and 2010-11 due to retirements and voluntary retirement schemes, but that of private sector banks has gone up significantly. Also, PSU banks expanded their employee base to grow operations pan-India in the '80s and a big chunk of their employees are in their 50s and set to retire in the present decade. As against this, private banks have expanded in the last four years and their lower-end staff are in their 20s and middle managers are in mid-30s. 

"One thing is clear—the competitive advantage in terms of staff costs that we always thought the public sector banks had is no longer there. Hence, the time has come for us to pay attention to this critical aspect. We can no longer postpone this issue," said Chakrabarty. 

Source : An Article of Sri Mayur Shetty in Economic Times (6.6.12)

6 comments :

Anonymous said...

Let RBI mount the burden of the so called "social responsibilty banking duties" and financial inclusion drive on the shoulders of metro city oriented posh private banks where you need to have minimum rs10000 in your a/c to step in. Even if after that this data given by them is unchanged,then they should make these types of comments to media.
These comments are being made to gain an upper hand in negotiating the 10th bipartite agreement which is due from nov2012

Anonymous said...

RBI should compare their salary too before making such comment

Unknown said...

you are right anonymous.If the PSB are for commercial activity with social service without commensurate salaries.RBI should set an example by bring their salaries at par with PSBs

Sanjay Bhatt said...

PURELY Flattery FROM RBI SIDE AND PRE PLAN FOR XTH BPS.

I AGREED WITH OTHER COMMENTS.

UNION LEADERS MUST BE AWAKE.

AGAIN I REQUEST ALL BANKERS

" DON'T JOIN IN 25-26 JULY STRIKE CALL. YOU WILL DEFINITELY LOOSE 2 DAYS SALARY AND NOTHING WILL GET.
ITS ONLY PLANED GAME TO DIVERT OUR MINDSET FROM XTH BPS TO USELESS DEMANDS.

Shankar said...

Our banking system need several reforms which may take decades to achieve.In order to improve performances of Nationalized banks,some steps are needed.
01. Borrowing from any nationalized bank is nothing from borrowing from the Government of India and hence loans availed from nationalized banks should be out of the purview of the Limitation Act 1963. A borrower from nationalized banks should remain as a borrower till he clears the loan. This enables thousands of Branch heads and Regional offices to concentrate more on development than going behind these borrowers every three years, in case they fail to repay loans in time.Limitation act may be made applicable only to those loans which have been sanctioned by the branch heads as personal loans under their discretion.

Sanjay Bhatt said...

Head Line of Comment is;

" PSU Banks' salary more than Pvt. Banks' : RBI "

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