Salary Hike For Staffers On Cards

The Industrial Development Bank of India will soon be hiking the compensation package for its staff. The move is being aimed at making salaries more market related.

This was stated by the banks chief S H Khan, while addressing a press conference in Mumbai yesterday.

He said the board had in principle approved the increase in salaries, but the final approval has to be made by the central government. We have moved the finance ministry with the proposal last week, Khan said.

Booz Allen & Hamilton, in one of its recommendations made to the IDBI, had also mentioned that a hike in staff salaries was necessary. The consultants have suggested that IDBI should evolve market-related compensation package for its staff suitable to the present day competitive environment and comparable with its competitors. Khan said the new compensation package will not cost the IDBI a lot. We spend about 0.5 per cent of our expenses on staff salaries. It will not make much of an impact on the IDBI, he said.

 

IDBI has around 2,900 employees of whom around 1,300 are officers including professionals in accountancy, management engineering law computers and banking apart from economists.

At present, the IDBI staff is on par with central government employees unlike its competitor, the Industrial Credit and Investment Corporation of India, where salaries to staff are much higher than IDBI.