Shocking comparison

With respect to your editorial, ‘Paying for performance’ (August 19), it is astounding that Raghuram Rajan should compare himself or PSB chiefs with the heads of private commercial banks in terms of their emoluments. These great institutions were founded to serve the people who are till date immersed in poverty. Has he not thought of the respect and honour they receive from the people for the office they hold? It can never be equated with any amount of money. This sends the wrong signal to the youth.

Rajan is known for his pragmatism. It is fine within a confined zone. On a larger horizon you need great vision and genuine feelings for the people and the country.

D Mitra

Kolkata

PSB chiefs or directors are free to go to greener pastures in India and abroad. The fact that most remain where they are testifies to testimony how PSBs take care of staff and officers by giving perks during service and after retirement. Rajan himself, despite the low salary in the RBI, would have happily continued as governor but for the unwelcome political environment.

KVA Iyer

Kochi

The pay-scales of top management cadre of PSBs, PSUs and other commercial and regulatory entities of government are linked to the pay-scales of top secretary-level bureaucrats. Arguing that the salary of the chiefs of state-owned banks must be similar to those earned by executives of private banks is illogical and unfathomable.

The whole of the civil services need performance-based salaries. We need experienced and talented minds in the top echelons of power. Government employees must understand that what they are doing is a service to the nation.

Gaurav Singhal

Rewari, Haryana

The executives of PSBs deserve pay equal or more than that in the private sector. First, their performance is subject to many regulations and supervision. Second, accountability has to be compensated. Private sector banks also should be subject to such supervision.

The observation about higher pay at entry and middle level is without proper analysis. Private sector staff get off-salary slip compensation in the form of conveyance, lunch allowance and house rental bonuses which far exceed the pay of their counterparts in PSBs. The work culture and multitasking of PSB managers has no parallel. Apart from meeting business targets, they have to comply with the social objectives of government. In private banks, many functions are outsourced.

The responsibilities and accountability of staff in PSBs far exceed that of private bank staff. Hence it is a misconception that they are overpaid. With only regulatory role, RBI staff enjoy higher pay and additional benefits than PSB staff who are subject to all operational risks. In terms of the recent pay commission revision, PSB managers get compensation equal to that of class four in government.

S Veeraraghavan

Madurai

The disparity in salaries of becomes more glaring when we compare the burden of workload in terms of size of the banks and the responsibility for implementing various government-dictated activities such as Jan Dhan Yojana. The other side of the coin is that PSB chiefs are much less accountable for results than their counterparts. Look at the state of NPAs in both entities. A composite salary structure should be worked out which balances rewards with accountability.

Y G Chouksey

Pune

Payments banks

It’s good news that India Post Payments Banks (starting with the corpus of ₹800 crore) has got Register of Companies approval. This will not only help to create employment, it will help improve GDP. People in rural areas will now be able to bank close to home (1.39 lakh post offices are located in rural areas). The bank will definitely become a robust and effective cart of real monetary addition.

Vijaykumar HK

Mangaluru

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