Letters to the editor dated July 29, 2020

| Updated on July 29, 2020

PLI system in banks

Apropos ‘Towards a meritocracy’ (July 29). There was a time when public sector jobs were most sought after for two reasons — stability and pension. Now, when pension is out of the equation, it is the performance of the employees which would count in future.

In the last two decades private banks have been cornering public sector banks’ business and clients. The biggest difference between a public sector banker and a private banker is that while the latter is always looking out for more business the former is content with whatever comes his way. That approach has to change. And, yes, a performance-linked system must be introduced in PSBs.

Bal Govind


Reward employees

Cognitive skills are important for employees in the banking sector. The employees are required to not only serve the public efficiently but also generate business for the banks. They must be incentivised by offering both monetary and growth benefits. The PLI system proposed in the settlement, though inadequate, will motivate employees to enhance operational efficiency and, thereby, banks’ reputation and profits.

TR Anandan


Wage-settlement exercise

The bipartite wage settlement for public sector bank (PSB) employees is indeed a hangover of the bygone era. It is time that this time-consuming exercise, which lasts for 2-3 years, is dispensed with.

With the government now committed to having just about half a dozen public sector banks, it is time that each bank gets a distinct identity of its own. This would necessitate, among other things, an independent wage structure, based on a bank’s financials. Merit of individual employees should find place in the wage structure if PSBs are to remain relevant to the Indian financial system.

Otherwise, not only would PSBs lose lucrative business opportunities to their private sector counterparts, but also banking talent in the years ahead.

Navin Bhatia


Hike in wages justified

The 15 per cent wage hike agreed upon between banks and trade unions is justified considering the increase in the cost of living and the time lag since expiry of previous settlement. But the delay of three years was avoidable and both banks and unions should try to complete the revision soon after the lapse of earlier settlement.

It is time they dispensed with industry-level settlement and each bank has its own salary structure and scale. The pay has to be bifurcated into fixed and variable, the latter being performance linked. PSBs should go for lateral recruitment at the management and senior levels with market-related salaries.

M Raghuraman


JRD, the visionary

The article ‘Citizen JRD — the nation builder’ (July 29) took me to the Bombay of the 1960s. I had a friend working with Tata Textiles then. He introduced me to the Forum of Free Enterprises, which was organised by the Tatas every Friday evening in the mezzanine floor of Bombay House.

Anyone interested in new ideas and with a zeal for nation building could attend the sessions. New ideas and thoughts were presented and discussed. JRD was the man behind the initiative then. Many young executives and managers used to attend the sessions regularly. Occasionally, JRD used to participate in the deliberations. He was a true nation builder. Very few industrialists of the present are able to follow his paths to develop a better society.

George Samuel


Rafale, the game-changer

The reported remarks of the French Ambassador that Indian technicians and pilots are the most adept in getting the best out of the Rafale fighter aircraft could not have come at any better time.

Little wonder that Rafale’s early induction into the IAF has been making China and Pakistan nervous, as it is capable of destroying the pre-identified enemy targets without transgressing into their respective air spaces.

Kumar Gupt

Panchkula, Haryana

LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.


Published on July 29, 2020

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