State Bank of India will be paying its employees 15 days of pay as performance-linked incentive. The Indian public-sector bank recently reported an 80.15 per cent hike in net profit for quarter four of FY21 on a year-on-year basis. The Bank’s net profit was over 6,000 crore, which is way more than the profit of over Rs 3,000 crore it reported in Q4 of FY20. The performance-linked incentive will benefit the over 2.5 lakh strong workforce of SBI.
On May 21, there were reports in the media that the staff of several public-sector banks may receive a significant payout in line with the performance-linked component in the wage agreement entered into with the Indian Banks’ Association (IBA) in November 2020.
As per the agreement, if any of the public-sector banks report annual growth in operating profits, an increase of 5 to 10 per cent, the staff of the bank are to be given an incentive of five days’ salary, and if the increase is 10 to 15 per cent, they will get 10 days’ salary as incentive. In case of an increase in operating profits of over 15 per cent, the staff are entitled to an incentive of 15 days’ salary.
Meanwhile, Canara Bank and Bank of Maharashtra have already paid their employees their performance-linked incentives. While Canara Bank posted a net profit of Rs 2,557 crore for FY21, Bank of Maharashtra posted a net profit of Rs 165 crore for Q4.