Govt defers key decisions of Khandelwal Committee

KOLKATA: The government has put on hold the key decisions concerning HR policy in state-run banks like wage negotiations at bank levels, variable pay, increase in welfare fund and incentives for top management and other staff while accepted some of the relatively softer recommendations of the Khandelwal Committee, including manpower planning, recruitment and training.

The Khandelwal Committee on HR issues of public sector banks had suggested introduction of performancebased incentive structure and variable pay to promote efficiency, setting aside the present socialist kind of approach where talent does not get rewarded adequately.

“This is the bane of manpower problem as public sector banks face difficulty in retaining talent in the absence of proper incentive structure,” a top executive in a state-run bank, requesting anonymity. The HR committee had also recommended employee stock options for 15% top performers.