A government-appointed committee to study HR issues in state-owned banks has recommended a slew of reforms, including awarding Navratna status to PSBs, variable pay for staff and major changes in the management structure of such lenders.
Among the recommendations, which the committee has already submitted to the government, is for appointing a committee to award Navratna status to select PSBs, based on their efficiency ratios, and Maharatna status for State Bank of India.
"We have recommended that a committee should be set up to assess various banks and award them the Navratna status, depending upon various efficiency parameters.
These banks could receive special powers like that of companies from other sectors enjoying this status," former Bank of Baroda Chief Anil Khandelwal, who heads the committee, told reporters here.
The committee, which included Union Bank CMD M V Nair, amongst others, has also recommended rigorous training for executives and employees depending upon their responsibilities, setting up an institute for staff training and incentives for top performers in banks.
The committee has also recommended proper succession planning for 'identified critical and leadership positions', with each position to have at least three persons in reserve.
It has also recommended that larger banks appoint an Executive Director for Human Resources and constitution of a monitoring group at the ministry for monitoring the HR transformation agenda in PSBs.
Further, the committee recommended that bank boards should decide on bank-specific wage and compensation structure welfare funds for their employees.
According to the committee, over one lakh employees will retire from the PSBs over the next five years, which includes 7,736 executives, over 50,000 officers and around 48,000 clerical staff.