New appraisal framework for PSBs from this year: FinMin

Accountability framework was one of the area in which the government proposed a new framework in order to measure performance of PSBs

The new performance review framework for top executives of public sector banks that were announced by the finance ministry last week will come into effect from this financial year, Hasmukh Adhia, secretary, financial services told reporters today.

Last Friday, the finance ministry launched a seven-point reform programme for the public sector banks, named as 'Indradhanush'. In the seven-point agenda, accountability framework was one of the area in which the government proposed a new framework of Key Performance Indicators (KPIs) in order to measure performance of PSBs. KPIs were divided into four sections totalling up to 100 marks.

Apart from KPIs, the government also said the KPI framework will be linked to the performance bonus to be paid to the MD & CEOs of banks by the government. For this purpose, the government is considering employee stock option for the top management of public sector banks.