PSU bank chiefs may get performance based incentives
New Delhi: The finance ministry is expected to announce a performance-based incentive scheme for bank chairmen on Tuesday. According to the new scheme, a bank chairperson will get extra Rs8 lakh per annum over and above what he gets if targets are met fully. If the target is met 81-99 per cent, then a chairman will get Rs7 lakh per year and Rs6 lakh if the target is met 61-80 per cent.

That means a chairman who gets Rs5 lakh a year under the pay scale system, will either take home Rs13 lakh or Rs12 lakh or Rs11 lakh per annum, depending on their performance.

Bank executive directors are also likely to get between Rs2 lakh and Rs5 lakh extra depending on the performance in meeting various targets.

The assessment will take into account performance on 16 different parameters such as profitability, deposits, loans, loan recovery, non-performing assets, priority sector lending and agriculture lending.
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