Governor of Reserve Bank of India, Dr Duvvuri Subbarao has cleared that it is high time that pay scales of public sector bank executives be raised. He warned that there are chances of drain out of hurman resoruce from PSBs if the pay structure is not brought at par with the private counterparts.

The recent pay revision has also not brought the pay scale of PSBs at par with the private and foreign counterparts.

"The executive compensation in the public sector, as is well known, is lower than that in the private sector... there is perhaps a good reason to revisit this... There is also the risk that if the public sector bank compensation is not improved, the public sector may lose talent to the private sector," said Dr Subbarao.

In the month of July, RBI had come up with draft guidelines about compensation of wholetime directors/chief executive officers. But these guidelines seem to be applicable on a small segment constituted by the non public sector banks. PSBs have their pay structure defined by the Government wherein the variable component is very limited.