SBI Employees May Get Performance-Linked Incentives: Report

SBI is likely to provide performance linked incentives to its employees as per the wage agreement signed with Indians Banks' Association.

(Photo Courtesy: State Bank of India (SBI) website)

India's leading public sector bank State Bank of India is likely to provide 15 days' pay as performance-linked incentive for the previous fiscal year to all its employees.

The employees are entitled to get this incentive as per the wage agreement signed with Indian Banks’ Association (IBA) in November 2020. According to the agreement, employees of public sector banks would get incentives if their bank reports annual growth in operating profit and positive net profit.

If a bank reports an increase of 5-10 percent in its operating profit, then its employees will get incentive of 5 days' salary. They will get an incentive of 10 days' salary if the jump is reported between 10-15 percent, 15 days' salary if it is more than 15 percent, reported Times of India.

SBI on Friday, 21 May, reported a rise of 80.15 percent in its net profit for the Q4FY21 on a year-on-year basis, reported IANS. It further mentioned that the bank's net profit rose to Rs 6,451 crore from Rs 3,581 crore in Q4FY20.

According to Times of India, Canara Bank and Bank of Maharashtra have already paid performance-linked incentives to their employees. The report further states that Canara Bank reported a net profit of Rs 2,557 crore for FY21, while Bank of Maharashtra reported a net profit of Rs 165 crore for the fourth quarter.

(With inputs from Times of India, and IANS)