According to the reports, State Bank of India (SBI) is going to pay its 2.5 lakh employees 15 days’ salary as performance-linked incentive for the previous fiscal.
Due To Reporting A Net Profit
This move comes after the largest public sector bank in the country reported a net profit of Rs 6,450.7 crore for the quarter ended March 2021, which is a 80.1 percent from Rs 3,580.8 crore in the year-ago period.
The employees of public sector banks are entitled to get incentives when a bank reports annual growth in operating profit and positive net profit as per the wage agreement signed with the Indian Banks’ Association in November 2020.
How The Employee Salary Varies With Operating Profit?
If a PSU lender reports within 5-10% of his or her operating income his or her employees will receive a 5 day salary (basic plus DA) as incentive. The incentive will be on a ten-day wage if employment profits exceed between 10 and 15 per cent and a 15-day wage if employment profits increase by more than 15 per cent, the report said.
Canara Bank and Maharashtra Bank have already paid incentives related to the performance of their employees. Canara Bank recently paid a 15-day salary in respect of performance-related incentives after reporting a total profit of R1.010.87 million in the fourth quarter of FY21.
Bank of Maharashtra reported a total profit of Rs 165 million in the fourth quarter of 2020-21, reports Moneycontrol