Pay disparity

Big gap in top private, public sector salaries

- RAKESH JOSHI

The debate over difference in the chief executive's pay packages between public sector banks (PSBs) and private sector banks has flared up again, after it came to be known that Dinesh Khara, chairman, State Bank of India, which is India's largest bank, took home an annual salary of ₹37 lakh in 2022-23, as against Sashidhar Jagdishan, CEO, HDFC Bank, who drew ₹6.51 crore in 2021-22, though he manages a balance sheet less than half of SBI, where Khara manages ₹55.17 lakh crore of assets (as of March 2023).

Successive governments have toyed with the idea of appointing professionals from the private sector at top positions in PSUs. While the decision on appointing from the private sector had been made in principle, the government has however dilly-dallied on pushing changes to the law required to constitute a pay package in line with the private sector. So, lateral entries from the private sector into the government or PSUs are far and few between.