Beyond the gaps in bank reforms, articulated well in the editorial, “Chasing rainbows” (February 15), Indradhanush 2 may have to do a lot of homework to make state-owned banks more enterprising.
Linking rewards, incentives and disincentives to a performance matrix will be a daunting task but one that has to be done. PSBs have been struggling to raise the bar for their performance to match their private sector peers. But macro reform integration has not been adequately aligned with a change in the performance management system. Annual performance appraisal reports (APAR), currently used by all PSBs, are not enough to
