Ask Experts » Career Guidance » Finance and Banking Jobs »

Do the private banks pay better salaries than the PSU banks?

Date: 19 Jul 2016    Group: Career Guidance    Category: Finance and Banking Jobs   

Generally it is believed that in private sector, candidates earn better salary compared to the PSU sector. Do the private banks pay better salaries than the PSU banks? How to compare the banking jobs in the private sector with that in the PSU sector?

Wants to know which is better in terms of paying salaries - Private sector banks or PSU banks? Here are the views of our experts, just go through.

Author: Mahesh    20 Jul 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

PSU banks do reveal the salary of the person in the advertisement for the specific position when they employ a person and so it is possible to compare the salary of PSU banks among themselves. In case of private banks they are under NDA clause so they can't reveal the salary. So you have to ask them how much they make. And not many working professionals are going to be blunt about this. Private banks get better salary benefits, HRA and few other benefits. Glassdoor website has some of the speculative salaries mentioned on their site. But that data is not accurate on many context. However you can idea of salary in general.

Author: Venkiteswaran.    20 Jul 2016      Member Level: Diamond     Points : 5  (Rs 5)    Voting Score: 0

There are two types of private sector banks. The old generation private sector banks and new generation private sector banks. Federal Bank, Catholic Syrian bank etc. are old generation private sector banks. ICICI bank, Axis bank,HDFC bank etc are new generation private sector banks.

The Public sector banks(PSU banks or nationalised banks) and old generation banks follow the salary structure agreed and settled under Bi-partite settlements between bank managements( represented by Indian Banks Association) on one side and the employees / officers unions on the other side. These settlements are then ratified and approved by central government. Hence the salary structure of all banks following Bi-partite settlements will be same. There can be some differences (other than salary related) in certain bank specific benefits, reimbursements, quarter's facilities etc either due to historic reasons or by the bank specific management-union agreements.

State Bank of India has some extra increments and more benefits due to historic reasons.

The promotion policy is also largely as per the Bi-partite frame work subject to needs and vacancies. Hence the salary and promotion matters are almost similar in the PSU and old generation private sector banks except some allowances, benefits or reimbursements.

The new generation private banks have certain extra operational and financial freedom than the banks mentioned earlier. These banks are not parties to the Bi-partite frame work. Hence depending on market parameters their recruitment, pay and other compensations, promotions and many employee benefits are much more than in PSU and old private banks. The only difference may be in the perception of job security. However as of now we do not see that much risk for confirmed employees in new generation private banks, as the attrition rates are not very high. However they have a system of recruiting by franchisee method and on contract basis also. They also outsource many of their functions.

Author: Sheo Shankar Jha    20 Jul 2016      Member Level: Gold     Points : 4  (Rs 4)    Voting Score: 0

Private - sector Banks want to maintain superiority and excellence at all levels and as such they would like to recruit the result oriented young men helping in achieving the targets set by the private banks. The salaries and perks offered by them would vary from executive to executive since numerous factors are taken into account prior the finalisation of salaries and perks. They would definitely consider speed and alacrity of each employee in discharging the duty and moreover the dealing of the executive with the customers and employers should be cordial.
In case of Nationalised - banks, the emoluments of the employees are transparent and there is no hidden perks. Employees of State - banks are somewhat the privileged classes owing to enjoyment of certain facilities which the employees of other nationalised banks are being deprived of.
The basic difference between the private and PSU banks is in the working condition. Where as the job - condition of the PSU employees are more secured, such is not the case with the employees of Private - sector banks. In the private banks, the employees have to show the consistent performance and have to ensure that the targets are achieved.

Post Answer

You must Sign In to post a response.

Post Answer        

Related Questions
  • Return to Question Index
  • Ask Question to Experts

  • Awards & Gifts
    Top Contributors
    TodayLast 7 Daysmore...

    Online Members

    Asha Kurian
    ISC Technologies, Kochi - India. © All Rights Reserved.