Two and a half lakh employees of State Bank of India (SBI) are likely to get 15 days of salary as performance-linked incentive (PLI) for the previous fiscal, according to a report published in many media outlets.
The news comes after the country's largest lender reported an 80.15 per cent jump in standalone profit after tax (PAT) of Rs 6,451 crore in the three months to March 2021, aided by higher interest income and lower provisioning for bad loans.
As per the Indian Banks' Association's wage agreement signed in November 2020, Public Sector Bank employees are granted incentives when a bank registers an operating profit.
If the rise in operating profits is between 5-10 per cent, then employees are entitled to five days' salary (basic plus DA) as an incentive. This incentive will jump up to 10 days' salary if profits are between 10-15 percent and 15 days of pay if operating profit rises by more than 15 percent.
Recently, Canara Bank paid 15 days' salary as PLI after it showed a net profit of Rs 1,010.87 crore for the fourth quarter of FY 2020-21.
Earlier, the Bank of Maharashtra also registered a net profit of Rs 165 crore for the fourth quarter of 2020-21,