Business-Standard reports that Public Sector banks, State Bank of India and Bank of Baroda have undertaken HR change in the areas of compensation as well as organizational structure.
SBI has internally worked out the details of a performance-related, variable payscale for its officers. A senior SBI executive confirmed the move.
It may soon place the matter before its board for approval.
A radical market-related pay package at SBI will force other public sector banks
also to follow suit.
BoB plans to increase the number of general managers from 22 to 28 and recast the positions as strategic heads of businesses. The general managers will now focus on business development rather than look at operational aspects.
The attempt was to decentralise power and empower people down the line so as to speed up the decision making process.
That is interesting news. I wonder if these proposals will be accepted by India's trade unions representing bank managers (yes, such a thing does exist !)