JOIN USThe State Bank of India (SBI) on Friday said it plans to offer up to 3 per cent of annual profit to its employees, as part of a talent retention and motivation initiative.
The bank has sought permission from the finance ministry in this regard, SBI Chairperson Arundhati Bhattacharya said.
“It is necessary especially for people in senior management and mid-level management, for the amount that they get in the private sector is much higher than they get in the public sector,” she said.
As a result, what happens is that people who come up to the higher levels because of their hard work, are easily picked up by the private sector, she said.
“They have a tendency of leaving and going, and this will become more so with newer banks coming in and more players entering the field of banking. Therefore, for meeting competitive pressures, we need to ensure that we are able to remunerate our people better,” she said. The bank has about 2.3 lakh employees.
SBI also said that it is not expecting a rate cut in the monetary policy next month on account of slightly higher retail inflation.
“No I am not. I am not expecting any rate cut (by RBI),” Bhattacharya said.“WPI is (negative) but CPI has gone up a little. Though it is mainly on account of food prices, the RBI has been benchmarking it to the CPI numbers, I think it is unlikely”
RBI mostly tracks CPI for its monetary policy decision, and its next review is due on 4 Aug.