Tuesday, August 28, 2012

Suggested directives for public sector banks - Non-Performing Staff (NPS)


Just like non-performing assets (NPAs), there is a proposal to calculate the percentage of non-performing staff (NPS) . This is one of the recommendations of a committee appointed under the chairmanship of a former CMD of a bank.

All staff who have secured less than 50 per cent in their annual appraisal for three years in a row will be classified as NPS.
This number divided by the total number of staff will give the gross NPS ratio.
This should be one of the parameters to be taken into account while fixing the incentive for the Chairman/Executive Directors.

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