The bank has sought permission from the Finance Ministry in this regard, SBI Chairperson Arundhati Bhattacharya told reportres. "...if you consider the fact that incentivisation is a good way of ensuring people meet up to whatever are the challenges...they respond to them. So to that extent government allows us to share one percent. We are saying that it is necessary for us to hike that amount to 3 percent," she said.

The matter is now before the Finance Minister who will take decision in this regard. "It is necessary especially for people in senior management and mid-level management, the amount that they get in the private sector is much higher than they get in the public sector," she said.

As a result what happens is that people who come up to the higher levels because of their merit and hard work, are easily picked up by private sector, the SBI Chairperson cited.

"They have a tendency of leaving and going and this will become more so with newer banks coming in and more players entering the field of banking. Therefore, for meeting competitive pressures, we need to ensure that we are able to remunerate our people better," she said.

Latest News  from Business News Desk