Public sector bank heads may get more sops for debt recovery

The finance ministry plans to increase the weightage given to debt recovery in the appraisals of top public sector bank managers in an effort to stem the rising tide of bad loans at these lenders. 

The ratio of non-performing assets to total credit of state-run banks rose to 3.78% in March 2013 from 3.17% a year ago. At present, a bank chairman can claim up to 8 lakh as incentive if he scores a perfect 100 on the appraisal matrix. The performance incentive for executive director is 6.5 lakh. 

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