The world of finance in India is a study in contrast. The gulf between private and public sector banks has been widening on various parameters — growth, bad loans, profitability, service standards, product innovation and many more.
The most glaring difference between the two banking segments is in the compensation and incentive structure. Private sector bankers are paid astronomical sums, which they justify on grounds of profitability — performance determines pay.
Now, there is a need for a change in state-owned banks' pay structure given that they handle as much resources, if not more, than their private peers.
Courtesy: Economic Times