Mumbai: Country’s largest lender, State Bank of India (SBI) on Tuesday advertised the vacancy for a new chief economist offering an annual package of Rs 60 lakh, nearly triple to that typically drawn by a State Bank chairman.
The appointment will be on contract basis for an initial period of three years, the advertisement appeared in news papers, said.
“We have to offer competitive salary packages for the candidate in line with the industry standards,” a top SBI official, who did not want to be named, said.
This is not the first time SBI is appointing a chief economist but the post has been lying vacant for quite some time.
In 2009-10, State Bank’s former chairman O.P Bhatt got a total remuneration of Rs 26.5 lakh. Traditionally, salaries of public sector bank chiefs and top executives are much lesser compared with their counterparts in foreign and private sector space and even less than some of the heads of miccrofinance firms.
In September, 2010, Reserve Bank of India governor, D Subbarao had said that in the absence of suitable compensation package they would lose talent to private sector lenders.
“The executive compensation in the public sector, as is well known, is lower than that in the private sector...If public sector banks are required to compete with private sector banks on a level playing field, there is a good case for compensating them too on a competitive base” Subbarao said.