Will look into compensation issues in banks: Vinod Rai


Vinod Rai, the former comptroller and auditor general and the current chairman of the banks board said he will look into compensation issues in banks.

Rai said that he will look at tools like performance related incentives and employee stock options to “attract talent into the banking system.”

Addressing the 12th convocation of National Institute of Banks Management in Pune, Rai said, “unfortunately the legal system does not allow swift action on the resolution of stressed assets.”

 He cautioned against scare mongering against rising bad loans. “Banking system has seen considerable stressed assets (accretion) in recent years … however, not all defaults are wilful defaults. So, we should not create larger scare in the system.”
He added that we have addressed such situations in the past.”The political and economic environment is geared to target recovery of bad loans,” Rai added.

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