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
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