Give govt banks free hand on pay, says panel

Public sector banks (PSBs) should get freedom to decide the pay structure of their employees, according to a government panel headed by A K Khandelwal.

The suggestion to do away with industry-level wage settlements was in line with the thinking that effective solutions to challenges were specific to enterprises, the panel said in a report.

“One-size-fits-all solution approach,” whether it be for remuneration, incentives or welfare, was not the apt way to ensure better performance and rewards to high-performing officers and managers, said the panel, which was set up to deliberate on human resource issues at public sector banks. The panel submitted its report to the government early this week.