Subbarao seeks more pay for PSB officials

Amidst debate over high compensations offered to bank executives, RBI Governor D. Subbarao on Tuesday made a strong case for increasing the compensation packages of public sector bank (PSB) officials.

Amidst debate over high compensations offered to bank executives, RBI Governor D. Subbarao on Tuesday made a strong case for increasing the compensation packages of public sector bank (PSB) officials.

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"If public sector banks are required to compete with private banks on a level-playing field, there is a good case for compensating them too on a competitive base," Subbarao said at a banking conference organised by the Indian Banks Association and FICCI.

"There is also the risk that if the public sector bank compensation is not improved, the public sector may lose talent to the private sector," he said.

On the proposed the proposed Basel-III norms, he did not see the norms hitting Indian banks significantly.

"Indian banks are not likely to be significantly impacted by the proposed new capital rules."