[BlueFyre]

Having worked as a PO in SBI, I can vouch that the said take home of 12-14L is not a reality as advertised. As for the salary of SBI Chairman, the bank follows a well laid out salary structure from JMGS-1(Assistant Manager/PO) to the Chairman level and there is no scope for alterations except when the bipartite settlement kicks in every 5 years. Since this thread is specifically about the salary of SBI Chairman, what appears in reports is rarely true, lots & lots of incentives/commissions are paid which goes unreported.

[Wason4699]

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

Well if you would love to join Appear for IBPS first. Before naming all public sector bankers as thieves or lazy people let me clear some facts for you.

70 percent of India s population still banks with PSB s rather than Private Banks.

Public sector banks are present in every nook and corner across the length and breath of India. Even in leh and Kargil where your So called Suited Booted pvt banks wouldn't even dare to.

All the so called dirty work or revries or freebies or social scheme are carried out by public sector banks, be it Old age pension, Scholarship of students,opening Jan Dhan or no frills account or giving mudra , education loans to the lower strata of the society.

Can you imagine any person with torn clothes or no slippers and no sign sitting with authority inside a private bank but in public sector banks they are treated as equal and par.

Public sector banks do the social obligation works of the government. Do you think that these excellent highways you speed on is made by loans from pvt banks None of them lend in infrastructure. It's the public sector banks which does.

Try getting an education loan from a pvt bank or a kissan credit card or a street vendor loan and then you would understand and regret that two India s exist here in. One for those who live the high five life travel in Vande Bharat, Drive luxury cars. Own multiple property have high end phones and curse the system while enjoying all the benefits of it on the other hand an India exists of people who barely make ends travel in general compartments. Buses and live from foot to mouth on a daily basis.

Regarding the loans and npa and the Malya n Modi s. Do you think these loans are possible without any political interference. The loans are sanctioned on calls from Finance ministry and other such sources. Every political party gets it's cut as Chanda so it's only a blame game and no action.

On the sanctity of private banks did you forget the Chanda Kochhar case..Yes bank Rana kapur case. Since independence more than 80 private banks have failed and everytime a gov bank had to come to rescue.

I don't say that everything is white or milky in Public Sector banks but it's not as black as portrayed and vice versa for the private sector.

[Hemantteen]

I am also surprised by the allegations at above posts against PSU Banks. PSU banks have the responsibility towards serving the poorest thereby serving the country unlike Private Sector Banks whose sole motive is profit just like any other private organisation. PSU banks operate in the remotest corners of the country where the cost of operations is higher than revenue. PSU banks serve the poor who cannot afford the minimum balance requirements of Private banks. Infact, minimum balance requirements of private banks are specifically stipulated just to keep the poor away. PSU bank employees were working overtime to open Jan dhan accounts. Further to add, government employees were serving during corona risking their lives. I am not against Private banks but the allegations against PSU banks are unfounded.

[SinghBHP]

Originally Posted by BlueFyre

Having worked as a PO in SBI, I can vouch that the said take home of 12-14L is not a reality as advertised.

. Since this thread is specifically about the salary of SBI Chairman, what appears in reports is rarely true, lots & lots of incentives/commissions are paid which goes unreported.

Very interesting information, can you(or maybe some other knowledgeable member) add more details to it - would be helpful in terms of original post on the topic.

[chinmaypillay]

No expert on this, but usually bank employees do have some good set of incentives provided right?

Maybe the salary just covers his pay and excludes other details like the kind of incentives and perks provided by SBI. When you provide basic facilities like good place of stay/rent expense, petrol expense claims and host of other incentives, you can actually save most of your salary unlike the other sectors.

Just my basic 2 paise from limited working experience

[manchandap]

Sharing my thoughts as a customer of both public and private banks:

To summarize:

The service level in a public bank is person-behind-counter oriented rather than process oriented as in private banks.

If you happen to know the bank employee or the bank employee has a consciousness to do his/her job, then you will get good service and your work will be done. Otherwise, even multiple visits won't help to get the job done.

Sharing few 'anecdotes' from my personal experience:

Requirement: Needed a new bank account for my son.
Here's how the events unfolded when we approached different banks:

Public_Bank_1: The computer guy is on leave today. So, I cannot open any account. You can talk to the Branch Manager and even he will not be able to open the account.
Me: Fair enough. When should I return
Public_Bank_1: I don't know. Come back after few days

The second public bank was few steps ahead in customer service:

Public_Bank_2: Fill this form (rather a few pages thick booklet printed on low quality paper), attach a copy of your Adhar Card and leave this with us.
Me: Ok and what next !!!
Public_Bank_2: Then we will send you a letter on the address mentioned in your Adhar Card. Come back to us with that letter and only then we will process your application.
Me: (Speechless)

So, here's a sarkari entity not trusting a universal identity document issued by their own sarkar.

Private_Bank_1 and Private_Bank_2: Do you have Adhar Card and a mobile number attached to it?
Me: Yes
Private_Bank_1 and Private_Bank_2: Great Sir, It will only take 30 minutes to open your account. We will key in your data and there is no cumbersome paper work involved.
Me: Let's get it done

So, we walk out of this bank with a functional account, net banking and debit card in less than 30 minutes, without using pen and paper.

Of course, the initial deposit/minimum balance was higher for the Private banks than the public banks. But the difference in their working is as stark as day and night.

As I said, the things are person specific in Public Banks. During the demonetization of 2016, it was a young lady at the counter of the public bank who went out of her way to let me and other customers withdraw money. However, such employees are rare in sarkari offices.

Public entity providing services in remote areas or to poorest of poor cannot justify their complacency and lack of their service.

Another one:

Dealing with other sarkari entity 'Post Office' is even more nightmarish than dealing with public banks. Post offices have more deeper reach than public banks.

It took me 4 trips to get my passbook updated. Reason: Server down or net down.

No surprises another sarkari entity BSNL is their service provider.

Now, my account is frozen and my application to unfreeze is 'under-process' for more than 10 days. I have already made 3 trips for the same and I get same 'net down' excuse.

And this post office is not in some remote corner of the country. It's situated in a locality where ISPs are providing 100 MBPS speed with unlimited data at less than INR 1000/- with minimal zero time.

Few years back, I was having a discussion on this topic with a banker friend who works for a private bank. When the discussion reached the customer service or lack of customer service, he shared an interesting use case:

For people like me, service matters a lot since we don't have luxury of time and we need to get the things done on our own. While a business man would be more interested in getting better overdraft limit or lesser rate of interest on loan, irrespective of private or public bank. Because, the business man is not running to the bank every now and then for routine tasks. His employees will be.

Comparing salaries of public and private entities is like comparing apples with oranges.

PS: I have deliberately not quoted anyone or named any bank to avoid ruffling any feathers.

[udzgodfather]

Originally Posted by manchandap

Sharing my thoughts as a customer of both public and private banks:

To summarize:

If you happen to know the bank employee or the bank employee has a consciousness to do his/her job, then you will get good service and your work will be done. Otherwise, even multiple visits won't help to get the job done.

Sharing few 'anecdotes' from my personal experience:

Requirement: Needed a new bank account for my son.
Here's how the events unfolded when we approached different banks:

Public_Bank_1: The computer guy is on leave today. So, I cannot open any account. You can talk to the Branch Manager and even he will not be able to open the account.
Me: Fair enough. When should I return
Public_Bank_1: I don't know. Come back after few days

The second public bank was few steps ahead in customer service:

Public_Bank_2: Fill this form (rather a few pages thick booklet printed on low quality paper), attach a copy of your Adhar Card and leave this with us.
Me: Ok and what next !!!
Public_Bank_2: Then we will send you a letter on the address mentioned in your Adhar Card. Come back to us with that letter and only then we will process your application.
Me: (Speechless)

So, here's a sarkari entity not trusting a universal identity document issued by their own sarkar.

[/i]

Sir, I don't know which public sector bank you went to regarding the bank account opening, but helping you to put out a picture here, I had my Bank Account opened with SBI by filing an online form and taking print out of my filled form and Aadhar Card and was out with the same facilities as you mentioned in less than 30 minutes, I am currently banking with SBI and Union Bank at the same time, and there speed regarding getting my work done is unparalleled with Private Banks, although I have had good experience with Kotak too, but the thread is not regarding the service we receive from the Bank, It is rather more about someone who is managing a Public Bank that is making profits to the tune of Rs 50,000 Cr and still receiving 36L as an annual income, out of which let's say 25% will be deducted towards Income Tax, if accommodation is provided by the bank, HRA is not paid, if any other service is provided they can't claim deductions, now comparing the same with private bank employees, I know someone working with ICICI Bank as a sales AVP with her take home salary to be 27L which is quite okay with the responsibilities she has been asked to shoulder upon, but the same is not the case with the SBI Director who shoulders more responsibilities compared to a private bank sales AVP.

I hope it helps to understand that the pay is not equivalent to the responsibilities as compared to the private banks.

[V.Narayan]

Originally Posted by manchandap

Sharing my thoughts as a customer of both public and private banks:

To summarize:

If you happen to know the bank employee or the bank employee has a consciousness to do his/her job, then you will get good service and your work will be done. Otherwise, even multiple visits won't help to get the job done.

Sharing few 'anecdotes' from my personal experience:

The discussion on this thread is about the fairness or otherwise of the rather inadequate take home salary of the SBI Chairman {and by implication other senior personnel} and not the service levels at some PSU Bank experienced by one of their crores of customers. Maybe you are mixing up apples and oranges here. Are you implying that because one customer {i.e. you} out of about 80 crore PSU bank customers in India received poor service {which I agree is not a nice thing} the Chairman of the largest Indian bank should be underpaid 10X or 20X? Similarly, would you say that just because one customer of car OEM {fill your OEM name here} receives poor service support at the authorized garage the CEO of the OEM should receive a 20X lower wage? Sounds like seriously mixed up thinking to me with all due respect.

I concede that service levels at some PSU bank branches can be tardy. The converse is also true. I dread to imagine what service level I'd receive at Kotak & ICICI {the two I bank with} if I wasn't in some elevated glit edged category they have placed me.

It is the PSU banks that have taken banking to the masses in India in a way not done any where in the world except China. It is the PSU bank that dominates the approximately 210,000 bank branches in India* which gives India a healthy ratio of ~15 branches per 100,000 population. The private sector banks all together cater only to the top 5% to 7% of our population to which we belong - that's it. They also hesitate to provide working capital to the MSME sector especially the Small & Micro segments. So, if we talk of service let it not be a narrow definition of the upper crust {you & me}, English speaking customer only. Let's talk of service as needed by India's 1400 million.

We are way off topic now. Back to unfairness of PSU salaries at senior levels.

*Includes Scheduled banks including co-operative banks.

[neerajku]

There is absolutely no doubt that salaries are low, claims on incentives and bonuses unreported are not true. These are publicly listed companies and all payments have to be duly reported. Yes they get some perks in the form of cars with driver and unlimited mileage after becoming DGM, free houses in really good areas, every few years allowance or reimbursement for laptops, mobiles, sundry other electronics, hard and soft furnishings, unlimited leave travel allowance as a flight ticket for family every two years, generous medical coverage. There are soft loans for housing. Admittedly, none of this when monetised, adds too much. may be a few lakh rupees extra. What they get is job guarantee, fixed pension. medical post retirement, prestige and so on. This is a trade off with a private sector job and its uncertainty.
Ideally they should be on a generous incentive plan; banking worldwide is well known for this. Issue is a fat clerical and Lower staff layer. In terms of manwpower costs as percentage of revenue, profitability, even per person cost , they are far higher compared to private sector banks, despite automation , digitisation etc. May be rural branches, antiquated processes. One would not know. But yes till the time they sort out their over employment, they cant afford a generous incentive structure or better pay.

[manchandap]

I know we have moved from salary comparison to service comparison of public and private banks. It might seem digression from original intent of the post. However, everything is related in one way or another. As the saying goes, if I have authority, I also have responsibility.

Originally Posted by manchandap

Now, my account is frozen and my application to unfreeze is 'under-process' for more than 10 days. I have already made 3 trips for the same and I get same 'net down' excuse.

Let me share update on this: Last Friday, I made another visit to the Post office. The Post Master assured me that he will process my application. After few hours, he called me that he cannot unfreeze my account and I have to visit their Head Post Office. This was done on Saturday. The dealing lady at the Head PO told me that your home branch has to initiate the process and they have not done that. So, I made her speak to the Post Master of my home branch and she explained him what needs to be done.

So, I will have to make another visit just to check if my home branch has processed my application or not.

Here's the link to salaries of India Post Employees.

Originally Posted by udzgodfather

Sir, I don't know which public sector bank you went to regarding the bank account opening, but helping you to put out a picture here, I had my Bank Account opened with SBI by filing an online form and taking print out of my filled form and Aadhar Card and was out with the same facilities as you mentioned in less than 30 minutes,

The Public_Bank_1 in my earlier post is SBI and I had filled their online form.

As I said, the service is person specific and I quoted one example from my experience.

Will provide point wise reply to V.Narayan Sir's post:

Originally Posted by V.Narayan

The discussion on this thread is about the fairness or otherwise of the rather inadequate take home salary of the SBI Chairman {and by implication other senior personnel} and not the service levels at some PSU Bank experienced by one of their crores of customers. Maybe you are mixing up apples and oranges here. Are you implying that because one customer {i.e. you} out of about 80 crore PSU bank customers in India received poor service {which I agree is not a nice thing} the Chairman of the largest Indian bank should be underpaid 10X or 20X? Similarly, would you say that just because one customer of car OEM {fill your OEM name here} receives poor service support at the authorized garage the CEO of the OEM should receive a 20X lower wage? Sounds like seriously mixed up thinking to me with all due respect.

Comparing salary of public and private enterprises is like comparing oranges and apples. E.g. Public Enterprises provide job security, life-long pension (for employees who joined prior to 2004), medical facilities etc. Private enterprise can never match that. If you add all the perks to salary, the employees of public enterprise are at par with private enterprise. Unfortunately, we are comparing only the cash component.

It might sound rude: how many public enterprise employees switch to private enterprise to get this 10x/20x salary.

Also, do you have stats based on any survey that says that I am the only customer who has received tardy or below par service?

Originally Posted by V.Narayan

I concede that service levels at some PSU bank branches can be tardy. The converse is also true. I dread to imagine what service level I'd receive at Kotak & ICICI {the two I bank with} if I wasn't in some elevated glit edged category they have placed me.

I have been banking with both public sector banks since my childhood and started banking with private sector banks when I became part of the workforce. The service provided by my private bank has been at satisfactory level even when I had minimum balance in my account.

Let's accept it private enterprises need to care for their customers otherwise they will be doomed. While public enterprise, especially banks, have no such accountability. Read the next part:

Originally Posted by V.Narayan

It is the PSU banks that have taken banking to the masses in India in a way not done any where in the world except China. It is the PSU bank that dominates the approximately 210,000 bank branches in India* which gives India a healthy ratio of ~15 branches per 100,000 population. The private sector banks all together cater only to the top 5% to 7% of our population to which we belong - that's it. They also hesitate to provide working capital to the MSME sector especially the Small & Micro segments. So, if we talk of service let it not be a narrow definition of the upper crust {you & me}, English speaking customer only. Let's talk of service as needed by India's 1400 million.

You are missing a very key point here. PSU banks didn't take banking to masses. It was the masses that had to go to the PSU Banks since they had no other options. All banks were nationalized and the private players were out. Public sector banks doling out loans to certain sections of the masses is not a charity or show of solidarity. Albeit, it's a justification to nationalize the banks.

Now, why SBI is the biggest bank? it's not because of their customer service or aggressive marketing but because of govt patronage. They hold the govt treasury, they hold the money of India Post, govt departments bank with them.


Now compare this with an late entrants like ICICI becoming the second largest bank or HDFC becoming the biggest player in home loan market.

When the private players entered the banking sector, the public sector banks were already 'well entrenched' and serving the masses across length and breadth of the country.


How private banks were able to gain foothold and become leading players, if not biggest players? Why did people flock to the private banks for their banking needs?


PS: I don't have any bias against public/govt sector or in favor of private sector. I am trying to compare apples with apples e.g. service level.