New Delhi: Lamenting that bankers are paid very poorly in India, especially at public sector banks, SBI chief Arundhati Bhattacharya on Thursday said there is an urgent need to provide better remuneration to attract good talent.
Bankers are paid poorly in India as compared to their counterparts elsewhere in the world, she said.
"Let me start with income of banking professionals in India. Here, 70 per cent of the banks are in public sector and they are paid very very poorly compared to market," she said at Delhi Economic Conclave here.
The SBI chief said there is an urgent need to improve quality of board members by providing them suitable remuneration so that the overall efficiency improves.
"We are very blessed in that. SBI has invariably had very good quality board. But that may not be true across (other banks') board. One of the reasons is very low remuneration that is given to the board directors," she said.
"If you are trying to attract best in the field, they have to be remunerated accordingly. We must insist on people who are coming into the board having sufficient hands on experience in both planning and execution in their respective areas," she said.
So, this is something that government can easily be implemented and should be done, she added.
The comments come about a week after PSU bank employee unions went to a four-day relay strike to press for early revision of wages.
Talking about changing regulation in tune with the present system, Bhattacharya said India has over 60 Acts and multiple rules and regulations that govern the financial system at the moment.
"Many of the laws are from 1950s and 1960s. The banking regulations themselves they were established before ATMs, credit cards, internet banking, investment advisory, private banking, mutual funds,... whole lot of other things," she said.
"These acts have been amended from time to time to keep pace with changing reality but the legal foundations have remained more or less static and as the result the framework is very complex and inconsistent," she said.
"Occasionally, it is also open to regulatory arbitrage.
So, we need to look at these things also holistically and move the laws to be in tandem with the times," she added.
