[SoumenD]

Originally Posted by alpha1

Don't be alarmed but I am sure there will be a lot of our colleagues who would say that they are performing better than others hence there should be no pay cut for them compared to someone else who is not performing as well.

Agreed. Not exactly a pay-cut but TechM & Wipro apparently sent out notices about stopping shift allowances(Rs.5000-10000) for people as working from home as they don't need to travel at odd hours. They have been served notice from labour department in Pune for the same.



To which Tech Mahindra spokesperson said:

The shift allowance paid for hardship due to travel to work at odd hours and other out of pocket expenses, continues to be paid to all Tech Mahindra associates, who are coming to office or are at client locations as per policy. Our focus remains to ensure the well-being of our associates, customers and partner ecosystem; while maintaining business continuity

Link

[PetrolheadRup]

As companies world over are cutting pay and are firing employees, Asian Paints has gone against the tide by raising salaries in order to 'boost morale'.
https://economictimes.indiatimes.com...9.cms?from=mdr

[udzgodfather]

Yawning gap SBI chairmans Rs 37-lakh salary

I didn't know where I should have posted this, it can be put on its own thread(Mods please do the needful), but it is very saddening to see the moment where companies are flowing so much salaries and here when as a chairman you are responsible for pulling 50000 Crores in profits and your take home is merely 37L, for reference if you join as a PO in Tier A city, your take home salary is 12-14L/Annum in SBI.

I find it mind boggling, even if the chairman is not getting his hands dirty like people in the lower rungs, the decision and policy making still takes a lot out of you;

State Bank of India (SBI) Chairman Dinesh Khara took home Rs 37 lakh in the fiscal year 2022-2023 marking a jump of around 7.5 percent from the previous year, according to the bank’s annual report. SBI is India's largest bank by assets. Khara’s salary included Rs 27 lakh basic pay and Rs 9.99 lakh dearness allowance. In the previous fiscal year, Khara earned Rs 34.42 lakh in annual salary for the financial year ending 2021-22 (FY22), 13.4 percent higher than what his predecessor Rajnish Kumar drew during FY21. Khara joined SBI as a probationary officer in 1984 and took over as the bank chairman in October 2020. He previously served as MD of the bank in charge of global banking and SBI subsidiaries, among others.

[NomadSK]

Originally Posted by udzgodfather

Yawning gap SBI chairmans Rs 37-lakh salary

Comparing to inefficiency and corruption of public sector banks, they are getting much higher salary than they deserve. Private banks work hard and are much more efficient, they don't let people run away to London with loan, they are not worried for telecom sector or Adani Sector, not performing well, with almost 1 tenth of branches ICICI has 50 percent of turnover of SBI, few notches more efficient, never letting defaulter to carry public money, that is despite of fact that govt Treasury is with SBI and govt favors them here and there. So, comparing salary of two is highly illogical.

And yet do we see these PSU Bank employees leaving the banks? The answer is no. Because they know they will be receiving money even after they have left the bank, Or bank defaults. Isn't that why we see large number of people willing to join PSU banks?

There is no performance system in public sector whereas in private sector do have. In general, public sector CEO's have been seen wasting peoples money and taking bribes where as private sector prove their mettle by generating profits and turnover.While restoring parity in pay will someone ensure parity in the professionalism and customer services offered by both players.

PSU Heads generates huge NPA Loans without any repercussions to their career. In pvt, it's not possible. its simply Perform or perish.

So many of drawbacks, but I would love to join a PSU bank anyday

[Turbohead]

Originally Posted by udzgodfather

Yawning gap SBI chairmans Rs 37-lakh salary


State Bank of India (SBI) Chairman Dinesh Khara took home Rs 37 lakh in the fiscal year 2022-2023 marking a jump of around 7.5 percent from the previous year, according to the bank’s annual report. SBI is India's largest bank by assets. Khara’s salary included Rs 27 lakh basic pay and Rs 9.99 lakh dearness allowance. In the previous fiscal year, Khara earned Rs 34.42 lakh in annual salary for the financial year ending 2021-22 (FY22), 13.4 percent higher than what his predecessor Rajnish Kumar drew during FY21.

Surprising. There has to be something else! How many shares will he be receiving? 37 LPA is quite low for such a high position. If he's paid through dividends, that'll be lower taxes. Else it's absolutely wild. Even worse is the fact that he will be taunted and trolled by his haters on being underpaid.

[udzgodfather]

Originally Posted by NomadSK

Comparing to inefficiency and corruption of public sector banks, they are getting much higher salary than they deserve.

This is going to be off topic but I think it needs to be said. My concern is not related to the difference of services between private banks and PSU banks, on a personal level I have enjoyed way good services with PSU's as compared to private banks, I enjoy good banking relations with Union Bank and SBI, on the other hand I have also enjoyed good relations with Kotak Mahindra, ICICI has been a huge disappointment on multiple levels. But here the discussion is about difference in the parity of the pay, for a Chairman of one of the biggest PSU Bank, the pressure, the politics and exposure to making mistakes when you are working with employees who are holding hands with corrupt officials and what not. PSU's are forced to service the agriculture and lower strata household which are more prone to be default. So I have a more stronger believe that there is a much more wider pay gap here, because to taking in the consideration of NPA's, Corruption, and other ancillary and auxiliary losses raking in a profit of Rs 50000 Cr is a more tremendous feat.

Back in 2018, I had the opportunity to audit a PSU Bank, situated in a rural area, while having a discussion with the Bank Manager, I was apprised that, due to political parties declaring exemptions from paying loans, lot of people used to stop paying loans all together, in the hope of it getting waived during political campaigns and hey they did get waived, so the NPA Load comes on the bank itself, this are the areas which the private banks are not serving at all.

[V.Narayan]

Originally Posted by udzgodfather

I didn't know where I should have posted this, it can be put on its own thread(Mods please do the needful), but it is very saddening to see the moment where companies are flowing so much salaries and here when as a chairman you are responsible for pulling 50000 Crores in profits and your take home is merely 37L, for reference if you join as a PO in Tier A city, your take home salary is 12-14L/Annum in SBI.

Thank you for highlighting this. When I read this in my news feed I couldn't believe it was so low. Unfortunately, our PSUs and our senior Govt officers who shoulder responsibility that would make most private sector jobs look small are forced to live with inadequate and unfair incomes due to the past hangovers, from the 1950 to 1990 era, that money and profits and fair wages are a sin. And the larger better managed PSUs can easily afford to pay a fair wage of say Rs 50L a month + ESOPs to the SBI Chairman. Going off the deep end to equal private bank salaries might be rolling over to the other extreme of 'greed is good' a la Gordon Gecko.
----------------------------------------------------------------------------------------------------
All,

Normally I try to be civil on Team BHP but when I read a deeply prejudiced post full of negative opinions and spilling bile on a large section of the society, without a shred of data, I feel compelled to put a stake in the ground.

Originally Posted by NomadSK

Comparing to inefficiency and corruption of public sector banks, they are getting much higher salary than they deserve.

Dear NomadSK, Can you elaborate further on this by explaining your benchmarks for inefficiency and sharing data on corruption. Are you aware of corruption in private sector banks and even private equity funds. Never heard of it did you say? Think again.

Private banks work hard and are much more efficient, they don't let people run away to London with loan, they are not worried for telecom sector or Adani Sector, not performing well,

Are you aware of the NPAs private sector banks in India have had to hold & manage/write-off? Would you like to read up on it on the net first please. While you are at it research their exposure to Vijay Mallya, Nirav Modi, Telecom sector and Adani.

with almost 1 tenth of branches ICICI has 50 percent of turnover of SBI, few notches more efficient, never letting defaulter to carry public money, that is despite of fact that govt Treasury is with SBI and govt favors them here and there. So, comparing salary of two is highly illogical.

While ICICI Bank is indeed more efficient and generally more courteous SBI carries a whole lot of weight of getting banking across to the remotest corner of the country and to the smallest depositor which brings banking home to the poor and the rural. The private sector have far less pressures to serve the nation's needs. So please compare apples to apples.

There is no performance system in public sector whereas in private sector do have.

Really!!! Really??? Is this deep seated prejudiced or sheer ignorance at work? Please help us understand how does an organization which is among the top 50 banks worldwide (as per Forbes), has a revenue of US$59 billion, a Net Income of US$7 billion, 244,000 employees and the largest branch banking net work in the world function even for a day without systems and processes.

In general, public sector CEO's have been seen wasting peoples money and taking bribes where as private sector prove their mettle by generating profits and turnover.

As you have chosen to fire a rather serious accusation in writing in public either back it with data or request the Moderators to take down this comment. This is Team BHP a social media platform known for quality and integrity. This is not one of those social media riff raff platforms where members can write any nonsense of hate that comes to their minds.

PSU Heads generates huge NPA Loans without any repercussions to their career. In pvt, it's not possible. its simply Perform or perish.

Rather a broad sweeping statement without understanding the loan melas dumped on the PSU banks by the politicians or the way the system of recovery in India is loaded against lenders or without understanding the root cause of NPAs in India.

So many of drawbacks, but I would love to join a PSU bank anyday

Good idea. Do that.

NomadSK, Team BHP works to higher standards than the usual mill of the run social media platform. We encourage strong views and debate provided you can support with data or other facts. Simply venting bile serves no purpose.

PS: I have no connection with State Bank of India

[subraiyr]

Originally Posted by V.Narayan

NomadSK, Team BHP works to higher standards than the usual mill of the run social media platform. We encourage strong views and debate provided you can support with data or other facts. Simply venting bile serves no purpose.

PS: I have no connection with State Bank of India

Thanks, Narayan for your post. I am quite astounded at the accusations laid out against PSU entities. I have a few folks working in SBI and I can recount some of the information gathered from them. There is a very robust performance management system that was overhauled around 2019 or so. There are defined KRAs and assessments done which have been standardized across all their circles. I believe SBI partnered with BCG to come up with the processes, not sure who did the rollout though

Secondly, on the question of private banks performing better and increasing shareholder value, it is to be noted that private banks charge a pretty penny from us customers to do that. I cannot have a zero-balance account free of cost. I am charged if my balance goes beyond the threshold. With PSU banks, the story is completely different.

As an employee, I have greater benefits at a PSU bank compared to a private bank. At the same time, PSU employees work hard. Just a point on that, my aunt who works in the loans division at SBI Bangalore HO does a second shift and works between 12 noon till 10 pm in the evening.

I can go on and on, but i would request that we back up our comments with facts

[NomadSK]

Originally Posted by V.Narayan

Dear NomadSK, Can you elaborate further on this by explaining your benchmarks for inefficiency and sharing data on corruption.

Sir,

With due respect and not to hurt anyone’s sentiment, comments made were not sweeping statement. Refer the link for the statistics,

https://m.timesofindia.com/business/...w/73818232.cms

Just recently, this is what t-bhpian has to say about his predicament #6310

https://www.team-bhp.com/forum/stree...ml#post5567844 (FASTag: All you need to know about procuring & using it!)

These NPA’s are written off by PSB’s; I have taken only the maximum ones and not considered the smaller banks,

SBI wrote off in total Rs 1.65 lakh crore
Rs 19,666Cr in loans in FY22,
Rs 34,402 Cr in FY21,
Rs 52,362 crore in FY20 and
Rs 58,905 crore in FY19.
PNB at Rs 59,807 crore in this period.
IDBI Bank wrote off total Rs 33,135 crore during the same period.

Private banks also did, but their numbers are less than PSB’s

https://www.livemint.com/news/india/...444488419.html

One can always question the pattern, how these loans were disbursed/approved to the entities below. The silver lining is gross NPA’s have been declining on YoY basis in recent years.

Banks involved in some of the major issues in recent past;

Vijay Mallya Fraud case - SBI/PNB/IDBI
Mehul Choksi - PNB
Winsome Diamonds bank fraud - PNB
ABG Shipyard fraud case - SBI
Kanishk Gold bank fraud - SBI
Andhra Bank fraud - Andhra bank
Rotomac Pen Scam - BOB/BOI/UBI/BOM Etc
Videocon Case fraud - ICICI

However, I do agree to some of your points, that these PSU banks are the back bone for the rural economy. And if their target audience is rural, then I agree with you, they are doing an excellent job. But not what urban generation is looking for.

Also Sir, I would have elaborated more about corruption, but that would go off tangent considering the forum rules. A simple google search will give the results of the SBI chairman’s involvement in wrong doings during last 4-5 decades. We need chairman like “RK Talwar”. I’m not saying private banks are holier than thou, but PSB have a lot to catch up with in technology department and efficiency wise.

I myself having financial dealing with one of a PSB, have to go through a very rough time when they froze my account for almost 14 months due to KYC during corona times and worse I couldn’t travel. Without being physically there at the location with original documents and few passport size pictures, they won’t unfreeze my account. I can deposit/transfer the money but wasn’t able to do any outgoing transactions whether online or offline. I kept screaming at Customer support which fell on deaf ears. Mails went unanswered. No support on telephone. Even my parents went physically to the bank, if something can be done, to which they simply declined to do anything and continue sipping on their tea.

Also the bank with almost 68 years of existence, got the performance appraisal system (saksham) few years back. I don’t know if others banks still have any system or age wise seniority still rules over.

Thanks for understanding. Apologies again if it did hurt someone’s sentiments unknowingly. With this I rest my case.

PS I don’t have any affiliations with the banks mentioned in the post.

Just a sample space of the problems reported in SBI and ICICI bank in last 24hrs. One can see the difference. And below is the stats for NPA, the research paper is in public domain.

[thanixravindran]

Originally Posted by NomadSK

Comparing to inefficiency and corruption of public sector banks, they are getting much higher salary than they deserve. Private banks work hard and are much more efficient, they don't let people run away to London with loan, they are not worried for telecom sector or Adani Sector, not performing well, with almost 1 tenth of branches ICICI has 50 percent of turnover of SBI, few notches more efficient, never letting defaulter to carry public money, that is despite of fact that govt Treasury is with SBI and govt favors them here and there. So, comparing salary of two is highly illogical.

And yet do we see these PSU Bank employees leaving the banks? The answer is no. Because they know they will be receiving money even after they have left the bank, Or bank defaults. Isn't that why we see large number of people willing to join PSU banks?

There is no performance system in public sector whereas in private sector do have. In general, public sector CEO's have been seen wasting peoples money and taking bribes where as private sector prove their mettle by generating profits and turnover.While restoring parity in pay will someone ensure parity in the professionalism and customer services offered by both players.

PSU Heads generates huge NPA Loans without any repercussions to their career. In pvt, it's not possible. its simply Perform or perish.

So many of drawbacks, but I would love to join a PSU bank anyday

Quoting you in full and hope mods allow it (Saw Narayan's reply and your rejoinder too)

I had the same notion like you about the PSU banks and its unionised staff sipping tea and gossiping without doing any work till I got married to a PSU bankers daughter. To borrow Hitler's alleged words about Soviets, 'it is all a rotten structure and a single push will collapse it'.

Like in any profession, there are always good and bad apples. I won't go into big roles like board member or higher management of PSU banks. It was a revelation on what political and public pressure the mid level management undergo at just branch level. He was in a branch located nearby to another behemoth called Railways which too is heavily unionised. There will be protests organised with insider inputs if petty loans are not sanctioned to them and can easily get into physical violence.

And the accountability, they carry has immediate effect on their pay. Example - If safe key is lost, it will be formal police case and if the safe has to be broke open, it will straight away deducted from their pay which is easily a months salary. After 2016, if loan turns NPA, the loan approvers are responsible and forensic audits happen for mischief/bribery before recovery.

And whoever has the key holding responsibility, they have to go and open bank whatever happens in outside world. In 2015, Chennai floods, at hip level deep water he went to open the bank and I was stunned when the entire city is under water.

Much less said about Jan dhaan/Gas subsidy seeding/demonetisation on how he and many bankers didn't even went home because the branch was closer to the biggest market in Chennai. All we heard is interesting stories about few people getting fat by note exchange.

And yes, many people opt for VRS after 50 years of age if given loan section as their retirement benefit can be blocked due to loan turning NPA. And the pension is not by default either one can get lumpsum or get it as pension.

Overall, PSU banks may not be for suave, well heeled and polished. It is a different world catering to a different set of society for whom banking is still a privilege. Though I largely believe in privatization and vote out government in business, I believe this is one crucial sector which should have government stake for the sake of financial and social security.

Hope you have read the history of private bank era of 50s and nationalization of banks that brought banking closer to masses. Current fintech revolution that is going on will finally achieve the goal is my belief.

[V.Narayan]

Originally Posted by NomadSK

With due respect and not to hurt anyone’s sentiment, comments made were not sweeping statement. Refer the link for the statistics,

Thank you for responding with data. Most helpful in supporting your stand. Not an issue about hurt sentiments I just reacted to your all sweeping statements condemning all 20+ lakhs PSU Bank employees as corrupt, inefficient, louts. Such statements full of anger and hate are common in this era of social media and anonymous handles. Most of my life was in an era where you double checked anything you were consigning to the written word. Sadly social media has tossed that norm out of the window.

Just recently, this is what t-bhpian has to say about his predicament #6310

Your experience with KYC, this members experience that you quote my experiences with banks are each only 1/8 billionth of human kinds collective experience. It is our vanity that makes us believe that our tiny experience is universal. Which it is not. Like you have had poor experience at hands of a PSU bank I can narrate shoddy service by HSBC, Bank of America, BNP Paribas and cooked up charges by the quintal by Citibank. But just because I had shoddy experiences at their hands I can't condemn all MNC banks and all their employees. I hope I'm making my point.

These NPA’s are written off by PSB’s; I have taken only the maximum ones and not considered the smaller banks,

Yes these NPA write offs that started after 2013 under Raghuram are the right thing to do and are the result of lending sins of over 30 years prior and political interference over the ages. I'm glad they are doing this balance sheet clean up and we see a drop in political interference and loan melas to get some of these ready for privatization.

Private banks also did, but their numbers are less than PSB’s

Yes correct. They are, thankfully, not subject to political pressures and they stay away from the Micro & Small of MSMEs to the detriment of the small businesses. They restrict their retail to the rich & upper middle class and middle-middle class through corporate salary accounts and their contribution to financial inclusion has been patchy at best.

However, I do agree to some of your points, that these PSU banks are the back bone for the rural economy. And if their target audience is rural, then I agree with you, they are doing an excellent job. But not what urban generation is looking for.

For all their faults, which are many, PSU Banks have led the way in financial inclusion in our society. As per the World Bank 80% of Indians above the age of 15 have at least one bank account. In terms of bank accounts and digital banking we lead the world. This did not happen my itself and a lions share of the credit goes to the much reviled PSU banks.

Also Sir, I would have elaborated more about corruption, but that would go off tangent considering the forum rules. A simple google search will give the results of the SBI chairman’s involvement in wrong doings during last 4-5 decades. We need chairman like “RK Talwar”. I’m not saying private banks are holier than thou, but PSB have a lot to catch up with in technology department and efficiency wise.

Yes corruption was rife in some PSU banks. Much less in names such as SBI, Canara, Bank of India and much more in PNB, PSB and so on. We cannot hold the employee of today responsible for the sins of 40 years ago.

Also the bank with almost 68 years of existence, got the performance appraisal system (saksham) few years back. I don’t know if others banks still have any system or age wise seniority still rules over.

No PSU of size in this country operates without an HR system of performance appraisals. So, we can agree to disagree.

Peace. :-) We are now wildly off topic and I'm stepping off lest the Moderators infract me!

[warrioraks]

Originally Posted by udzgodfather

I didn't know where I should have posted this, it can be put on its own thread(Mods please do the needful), but it is very saddening to see the moment where companies are flowing so much salaries and here when as a chairman you are responsible for pulling 50000 Crores in profits and your take home is merely 37L, for reference if you join as a PO in Tier A city, your take home salary is 12-14L/Annum in SBI.

This is such a low number for CEO of one of the biggest banks in the world, that I had to read this twice before digesting it.

What a pittance of a salary. This is also one of the reasons successive governments have failed to attract talent from the market to run these PSUs.

I am sure that CEO of a compatible private bank would be earning atleast 3-4 times of this salary.

[udzgodfather]

SBI AR Page 112

Please find the enclosed Annual Report of SBI, director salary details are given on Page 112.

[aashishnb]

Originally Posted by udzgodfather

[
State Bank of India (SBI) Chairman Dinesh Khara took home Rs 37 lakh in the fiscal year 2022-2023 marking a jump of around 7.5 percent from the previous year, according to the bank’s annual report. SBI is India's largest bank by assets. Khara’s salary included Rs 27 lakh basic pay and Rs 9.99 lakh dearness allowance.

Originally Posted by udzgodfather

SBI AR Page 112

Please find the enclosed Annual Report of SBI, director salary details are given on Page 112.

Just to throw some perspective around it, this is only Basic+DA.

Most PSU banks, if not all, have a very robust perquisites system for e.g. residential units in posh areas like Malabar Hill (I think there are even bungalows, which even the highest paid pvt bank cannot afford), house helps / gardeners / security for these bunglows; they have holiday homes / guest houses across the country, and other similar perks like LTA, cars for family use, job security, inexpensive home/education loans, etc.

I agree that in monetary terms, all of these combined may not equate to pvt banks salaries (depending on value one attributes to it), but then the gap does not look that outrageous.

Originally Posted by NomadSK

:

Many have commented on your post.
I would just like to point out one specific thing - PSUs also act in some sense government's 'delivery system'.

Therefore, the same metrics that apply to pvt banks would not be comparable for them, especially not SBI. Some of their NPAs should & could be attributed to various governments.

Their performance metrics should therefore be somewhat different, like for eg NGO vs private businesses. Of course, this has been & will be used as an excuse for non performance by some and one can argue not to mix business with welfare, etc.etc., but again, its an art and not science/math.

[udzgodfather]

Originally Posted by aashishnb

Just to throw some perspective around it, this is only Basic+DA.

Most PSU banks, if not all, have a very robust perquisites system for e.g. residential units in posh areas like Malabar Hill (I think there are even bungalows, which even the highest paid pvt bank cannot afford), house helps / gardeners / security for these bunglows; they have holiday homes / guest houses across the country, and other similar perks like LTA, cars for family use, job security, inexpensive home/education loans, etc.

I agree that in monetary terms, all of these combined may not equate to pvt banks salaries (depending on value one attributes to it), but then the gap does not look that outrageous.

Sir, to be very honest, you don't get to take such amenities with you when you leave the job/post, but hard cash/equities you can do what you want. The guest houses and holiday homes the bank/government were built when hotels/Inns were not easily available in suburban/rural areas, but eventually due to development they have emerged out in the prominent places. To my opinion PVT banks could be fitting the bills of there MDs/Chairmans too, then it would again bring us to the principle question that the gap is outrageous and I still believe for someone who is holding the reins of bringing Rs50,000 Crore of profit in the company deserves a decent salary in the ratio similar to what he brings to the table.