It is PS banks which have to shoulder the responsibility of target for Financial Inclusion fixed by the government.

They have to open branches in remote villages where possibility of earning profit is very rare. Number of branches as such in public sector is far more than that in private sector. And the bitter truth is that majority of branches opened in rural areas are loss making and they spend their time mostly in unproductive work imposed by state or central government.

It is PS banks which have to oblige various politicians on sanction of loans and then on write off of loans. Banks have to lend under priority sector, under PMEGP programme, under SHG etc which private sector banks are not required to do.
Similarly PS banks have to lend for agriculture development, distribute UGC and taken part on all KVC projects recommended by District Industry centers. Such types of loan more often than not become bad in a year or two and then banks has to sacrifice huge money to keep their Balance sheet attractive. 

On the contrary ,Private Banks do not perform and do not undertake such work which are economically not beneficial. Political loaning and political write off of loan takes place only in public sector banks, not in private banks.

As such there is no comparison between private and public sector banks. Hence effort of Dy governor Mr. Chakravorty to demoralize the employees of public sector banks and deprive them of wage hike is not justified.

Private Banks are employing 80% of their workforce at pay less than Rs10000.00 per months and only 20% of workforce get higher pay package. These banks cannot retain the employee for longer period and therefore attrition rate is much in private banks. 

Public sector banks have to follow uniform wage structure as prevalent in government departments and other public sector undertakings. 
To add fuel to fire public sector banks did not make any employment or made negligible recruitment since 1991 due to which average age of bank employee in PS banks is more than 45 whereas the average age in private banks is less than 30, Due to this private banks has very less load of terminal benefits payable to retiring employees ( because employees in private banks seldom retire, they resign much before ) whereas it is more in PS banks

Why RBI Dy Governor does not compare the wage structure of pay package of central government employee with that of government banks?
Why he does not compare the pay package and productivity of PSUs with that of private corporate houses?

Why RBI Dy Governor does not compare the pay package of Indian railways, Indian airlines, BSNL where productivity and profitability is negligible with their counterpart in private sector (excl railways)?

Why BSNL, Railways, Airlines run in loss despite the fact that enjoy all privileges.

If MOF  or RBI is still of the view that average pay of bank employees in PS banks should be reduced to some extent. I have a suggestion as given below to put before them for consideration.

It is true that due to almost non recruitment of fresh officers or fresh clerical staff during last two to three decades , average age of bank employees in many banks have gone upto 45 to 55 whereas in private banks the average age is still 20 to 25 in junior scale and 30 to 35 in higher scale.

If Public sector banks still wants that their average pay to become equal or less than their peer banks in private sector , they should come out with a Volutary Retirement Scheme (VRS) as they did in the year 2002 to kick out senior officers.

By such action many incompetent officers whom bank management feel surplus and non effective for higher post may be shown the exit door and in their place fresh officers may be recruited paying much lesser salary. This will help in reducing average pay of bank employee in PS bank.

http://jaindanendra.blogspot.in/2012/06/why-average-pay-is-more-in-government.html