State Bank of India (SBI), the largest public sector bank in the country, is going to pay its 2.5 lakh employees 15 days’ salary as performance-linked incentive for the previous fiscal, according to reports.
This comes after the bank reported a net profit of Rs 6,450.7 crore for the quarter ended March 2021, registering a jump of 80.1 percent from Rs 3,580.8 crore in the year-ago period.
According to the wage agreement signed with the Indian Banks’ Association in November 2020, the employees of public sector banks are entitled to get incentives when a bank reports annual growth in operating profit and positive net profit.
If a PSU lender reports between a 5-10 percent jump in its operating profit then its employees will get 5 days' salary (basic plus DA) as an incentive. This incentive will be to 10 days' salary if operating profit jumps between 10-15 percent and 15 days' salary if operating profit increases by more than 15 percent, the report mentioned.
Canara Bank and Bank of Maharashtra have already paid their employees' performance-linked incentives. Canara Bank recently paid 15 days’ salary towards the performance-linked incentive after reporting a net profit of Rs 1,010.87 crore for the fourth quarter of FY21.
Bank of Maharashtra reported a net profit of Rs 165 crore for the fourth quarter of 2020-21, Moneycontrol reported.