PSBs have a human capital problem: Do their top execs need a pay overhaul?

Nearly two decades after the Nayak committee's report, the competitive landscape in the financial world has completely changed

“It is unsustainable for such (pay) differentials to continue without a major adverse impact on the recruitment and retention of talented managers in public sector banks”

- P J Nayak Committee report to “review governance of boards of banks in India” (May 2014)

In FY23, the State Bank of India (SBI) reported a 57.4 per cent jump in its net profit to Rs 55,684.17 crore. But the chairman of the country’s largest bank, Dinesh Khara’s annual pay for this creditable performance was just Rs 37 lakh (his peers at state-run banks are no better off). Look at his private bank