PSU bank employees overpaid at the bottom, underpaid at the top: Rajan

Zee Media Bureau

New Delhi: Outgoing RBI Governor Raghuram Rajan on Tuesday said that public sector banks' employees are overpaid at the bottom and underpaid at the top.

Emphasising on the need to to tighten loan practices at state-run banks, Rajan said, “ There is a need to shift loan sanctions from committee-based approach to single lead banker taking responsibility”.

“There is need for more equity, flexible loan structuring in infra projects,” he added.

Voicing concern over state-owned banks shunning project loans, Rajan said that such projects are still profitable.