While banks in the US and Europe collapsed as a result of reckless lending and trading in risky and complex financial instruments, banks in India, particularly public sector banks (PSBs), remained unscathed. Suddenly, critics started praising these banks, the RBI and the government for their so-called cautious and pragmatic policies.
But these people are those who wanted these PSBs to be decontrolled and at the same time wanted them to invest in shares. Had that taken place, by this time most banks would have lost their entire sum of deposits.
But when it comes to raising the salary of employees and officers of these banks, the government acts in a very miserly fashion. It has proposed a mere 10 per cent raise with many riders. It seems the government does not want to acknowledge the role of these banks in shaping the economy and is testing the patience of these employees. The government has already given a raise to its employees. Then why not extend this to the PSB staff as well?
In these banks, only CMDs and executive directors get yearly bonuses in lakhs and the rest do not get any bonus. Why have these double standards?
Sudhir K Bhave, via email
