GOOD NEWS for SBI employees: Around 2.5 lakh staff likely to get 15-day performance incentive

Amid the stress of the pandemic, the State Bank of India (SBI) is likely to surprise its employees as around 2.5 lakh staff of the bank may receive an additional salary of 15 days.

According to a report by Times Now, the likely remuneration is a performance-linked incentive. The performance-linked incentive or the salary of 15 days will be given to SBI employees as the bank has registered a strong 41 percent jump in its net profit. The incentive will be for the previous financial year that ended on March 31.

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According to the wage agreement signed with the Indian Banks’ Association in November 2020, the public sector banks have to pay incentives to respective employees if the lender reports a positive net profit and a growth in operating profit.

If a public sector bank registers 5 to 10 percent growth in the operating profit, then employees of that bank will get 5 days salary which will be basic and Dearness allowance (DA).

If there is a hike of 10 to 15 percent, the salary hike will be for 10 days. Employees are entitled to get 15 days salary if the public sector bank registers an operating profit of more than 15 percent.

However, in all cases, the bank must register positive net profit. If profit rises by less than 5 percent then no incentive will be paid to employees, the Times Now report said.

SBI on Friday reported an 80.15 percent jump in its standalone profit after tax (PAT) of Rs 6,451 crore for the fourth quarter ended March 2021. On a consolidated basis, the lender reported a 60 percent increase in net profit at Rs 7,270.25 crore compared to Rs 4,557.49 crore in the fourth quarter of the previous fiscal.

For the entire financial year 2020-21, the bank reported a 41 percent jump in standalone profit at Rs 20,110.17 crore, from Rs 14,488.11 crore in the previous financial year, as per a PTI report.