With the wake of this century, banking has turned out to be one of the major industries and a large shift has been measured in the overall banking scenario. Post nationalisation of banks in the year 1969, the policy of the country regarding finance and banking has seen a tumultuous change. Over the 46 years since its nationalisation one thing that has remained constant is the performance of the banks in terms of financial outcomes. Almost 77 percent of the deposits and 76 percent of the advances are with the public banking sector in the country, resulting in a stabilised banking scenario over the country. It was fought gallantly the global financial meltdown which was started to get felt by the year 2008. While the big foreign banks were giving up to the pressure it felt due to recession hit superpowers, Indian banking sector stood still in both quality and quantity.
Not only the performance of the Indian public sector remained unaffected, it has grown enormously since the last decade with host of new branches opening up and manpower getting recruited every year. The prospect of a better pay structure and secure future attracts the youth of the nation to join the industry and work along their way. Banking is not limited today to only commerce graduates or students having interest in economics, but people from all walks of life are coming join the sector. The public banking sector has given open challenge to its private counterpart as well. Though there is a popular conception that the private sector pays well than that of the public sector banks, it needs to be delved further deep to know the actual benefits of working in the public sector and the pay perks associated with the job.
The salary and benefits of public sector bank employees
The salary received by the higher management authorities in the private sector bank is certainly higher than that of the public sector banks, but when it comes of junior or mid-level management staff in these banks, public sector gives a neck to neck fight to its counterpart. The composition and breakup of the payment structure would undermine this fact and clear the air about why public sector banks remain the ideal paymasters. May be the entry level salary of the private bank staff is higher than that of the public sector one. But the glitch lies in the benefits and allowances that the public sector employee gets. The benefits in getting the home loans, education loans, various club memberships, provident funds and gratuity are some of the benefits that these workers get from the bank.
Apart from these there is a provision for pension and staff quarters are provided to the officer level workers in the public sector banks from the bank authority. The quarters often remain furnished and in a wonderful condition to live in. The public bank staffs are given medical protection and they can carry the protection to their dependents as well. There is a provision for holiday homes and one or two holiday is sponsored by the banks on yearly basis. Along with these benefits the public sector bank employees are also given opportunities to admit their children in schools that have tied up with certain banks.
Benefits of the Public Sector Bank Employees
Along with the monetary benefits, the public sector bank employees enjoy various other rewards and facilities that make them be seated in a better position than their private counterpart. The most important factors remain the job security and work life balance for these workers. The average service years for the public sector bank employees are way too higher than that of the private bank employees. While there is a risk of losing jobs anytime, depending on the global financial situation in the private banks, the public sector bank employees are immune from such risk. They can enjoy their life with limited or fixed work hours and less pressure to handle than that of the private bank employees, who strictly have to maintain deadlines and work for targets.
The leave policies are also lot easier in the public sector banks than the private ones. Irrespective of the performance of the candidates who are in the same position the public sector bank employees are paid the same salaries. On the contrary the public sector banks force its employees to topple each other by walking the extra mile and achieving goals to earn the extra buck, giving rise to tension and competitiveness in the workplace.