It has been for the first time that public sector banks have spent larger chunk of their income in wages than the private counterparts.
In a study done by consulting firm Boston Consultancy Group (BCG), it has been revealed that while for public sector banks, the per employee cost in terms of salary accounted to Rs 5.6 lakh, it is Rs 5.4 lakh per employee for private sector banks in this fiscal.
According to BCG's Saurabh Tripathi this rise is due to the higher average age of employee for the PSBs. He also said one of the biggest challenge to be faced by these banks in the next 10 years is in the field of human relations.
However, the comparative report was criticized by MV Nair, chairman of Union Bank of India, who based his point of view saying that public sector banks had more hierarchial levels and also employed staff at lower levels like guards and sub staff. These functions are mostly outsourced by the private banks.