RBI wants higher salaries to PSU banks' CEOs

India's central bank concerned that public sector may lose talent to private sector that offers crores.

Concerned over low salary structure in PSU banks, the Reserve Bank on Tuesday said that in the absence of suitable compensation package they would lose talent to private sector lenders.

“The executive compensation in the public sector, as is well known, is lower than that in the private sector...If public sector banks are required to compete with private sector banks on a level playing field, there is a good case for compensating them too on a competitive base”, RBI Governor D. Subbarao said a conference organised by IBA and FICCI.

Incidentally, Mr. Subbarao’s compensation is about Rs. 15 lakh ($32,082) a year compared to packages worth crores for CEOs of private sector banks like ICICI Bank, HDFC Bank and Yes Bank.

“There is a good reason to revise their (PSU bank executives) compensatory packages...There is also a risk that if the public sector bank compensation is not improved, the public sector may lose talent to the private sector,” Mr. Subbarao said.

View the full story in The Hindu.

Also Read

Olea, Standard Chartered forge alliance to empower SMEs

Australia’s Macquarie well-capitalised despite lower profits

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit