The Hindu Business Line : Performance-based wage system

As advised in your editorial “Banking on performance” (Business Line, December 8), the public sector banks should not succumb to the pressure of employees’ unions but immediately introduce individual bank-wise, performance-based wages for their employees, which will surely increase their output.

As suggested by you, it is high time the PSBs eliminated the deadwood by introducing another round of VRS without any additional incentive so that the deserving employees are retained and fresh young talent is recruited, and then their skills enhanced to international levels.

Otherwise, if they continue with their outdated wage system and the kind of existing passive staff, it may not be possible to face the competition from the new generation banks; finally, the public sector banks will have to withdraw from the cities and confine themselves to semi-urban and rural areas.

The writing on the wall is clear indeed. The PSBs should ensure that the race is not lost before it begins in 2009.

K. G. Sheshagiri Bangalore

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