Underperformance in Nationalized Banks: Could It Lead to Premature Retirement?

Some queries were raised in Lok Sabha regarding Underperformance in Nationalized Banks and Premature Retirement of Employees if performance is below set standards

Underperformance in Nationalized Banks

The clarification sought by MPs Shri Subbarayan K. and Com. Selvaraj V. highlights an important concern regarding the potential implications of policies targeting employee performance in nationalized banks. They are questioning whether the government has directed nationalized banks to conduct performance reviews to identify underperforming employees and impose premature retirement on those failing to meet set standards.

The following information is a response in the Indian Lok Sabha (Parliament) concerning the performance review of employees in nationalized banks.

Performance review of employees in nationalized banks

The Questions Raised

a) whether it is a fact that the Government has directed the nationalized banks to conduct performance review of their employees and officers and prematurely retire those who are found
to be below the norms;
(b) if so, the details thereof and the reasons therefor;
(c) the criteria fixed to decide the performance of the officers and employees; and
(d) whether adequate measures are not existed to address the issue of under performance of employees in the bipartite settlements?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) to (d) : Public Sector Banks (PSBs) are board governed commercial entities and service conditions of their employees are governed by their respective Service Regulations / Bi-partite Settlements. Provisions regarding review of employees already exist therein and as per PSBs, while undertaking the review, various criteria such as service profile, health status, key responsibility areas, annual performance reports, vigilance proceedings, leave record etc. are taken into consideration.

The Department of Financial Services vide letter No.4/1/22/2015-IR dated 26.09.2024 advised PSBs to conduct periodic review of the performance of their employees as per the extant provisions and the schedule specified in Department of Personnel & Training (DoP&T’s) O.M. No. 25013/03/2017-Estt.A-IV dated 28.08.2020, regarding periodic review of employees in the public interest, with an objective to strengthen the administrative machinery for achieving efficiency, economy and speed in disposal of the Government’s functions.

View the Lok Sabha Answer pdf