Performance Linked Incentives for bank employees likely in the next fiscal. This is a dramatic shift to the way our bankers did business. Now, it will bring them at par with private. At first though it is talked that incentives will above the regular pay. Soon, good talent will begin to earn a fat salary and they will also help the banks compete efficiently among their peers.
When competition gets strong, quality comes in as a by-product. This shift will be one of the stepping stones for our banking sector that is struggling to catch pace with piled up NPA’s. Once the employees get drummed up, non-performers will get weeded out systematically, which otherwise will be a big pain to clean the system of un productive labour.
This change will bring the next one, hire the best, fire the rest. Though it will make many of the present staff jobless, the country and its citizens will be relieved on both their investments in the banks and taxpayer money not getting wasted to fund poor performance.
And this change will soon spread across other government enterprises, thereby making the country efficient in the way we do business. Though this change will take time to show its visibility in the economy, in few years from now, we will for sure see India at par with global peers.
And this kind of change is required, it would not have happened if not for the slowdown which we are having now. Everything happens for a good reason.