As per the data released by RBI, average salary of employees working in public banks is more than that of their peers at private banks. RBI is now concerned with the issue of productivity. According to the Central Bank, HR in public banks requires a complete transformation to address the low productivity of the employees as market is full of potential and talented emploees.
Per employee expense at public sector is 150% more than their counterpart in private sector. K C Chakrabarty, RBI deputy governor while addressing public sector bank chiefs at an HR conference last week showed the number in which it is clear that staff strength in public sector banks have decreased between 1998-99 and 2010-11 due to retirements and voluntary retirements schemes. On the other hand the number of employees at private sector has increased. Further while addressing the issue Chakrabarty said that we can no longer postpone the issue as the competitive advantage of the staff cost is no longer there.
Earlier the salary at public sector was low but there were other additional advantages such as secure salaries, secure job, pension. In addition to this banks in some of the cities provided accommodation facilities to their employees. But with the regular efforts of bank unions salaries have increased. Deputy manager has urged to select not just the good but suitable employees in the public sector.
Source: Times of India