Employees of State Bank of India (SBI) may get performance-linked incentive for the previous financial year as the bank has reported 41 percent jump in its standalone profit for FY21 at Rs 20,110.17 crore.
Around 2.5 lakh employees of SBI are likely to 15 days' salary as performance-linked incentive, news reports said.
The employees stand to get this windfall as 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 said.
A few other banks too have done the same. According to a Times of India report, Canara Bank paid performance-linked incentive to its employees soon after announcing its Q4FY21 results. Canara Bank paid 15 days’ salary as a performance-linked incentive to its employees. Bank of Maharashtra, which reported Rs 165 crore profit, up 187 percent year-on-year, for the quarter ended March 31, 2021, also paid performance-linked incentive to its employees, the report added.