Amidst the ongoing pandemic, when most companies are laying off staff or imposing pay cuts, Axis Bank has gone ahead and announced salary hikes. It is reported that the increment of 4 to 12 per cent will be based on performance.
Recently, the Bank had given bonuses to its 76,000-strong workforce.
However, Axis is not the only bank to have paid bonuses this year. HDFC Bank hiked its employees’ salaries in April, based on performance, and also gave bonuses, to about 80 per cent of its staff. Increments were also given to a significant portion of the workforce at ICICI Bank.
Kotak Mahindra Bank, on the other hand, had announced in early May this year, that it will be cutting its the salaries of employees earning over Rs 25 lakh, by 10 per cent annually, starting May. These cuts were announced at a time when the board had approved the raising of Rs 7000 crore via issue of equity shares. Before that, in April, the top leaders of Kotak Mahindra Bank had begun taking a 15 per cent cut in their salaries to help tide of the economic burden brought on by the pandemic. The Bank’s founder and CEO himself had foregone his salary for FY21.
Axis Bank, Kotak Mahindra Bank and ICICI Bank have raised about $9 billion via equity markets to protect themselves and be ready for the future. The funds thus raised will also help these banks to handle bad loans.