After HDFC & ICICI banks, now Axis gives salary hikes to its employees
Axis Bank is increasing staff salaries between 4% and 12% from October 1, 2020, based on performance. The bank which has about 76,000 employees, also paid bonuses to its staff.
HDFC Bank boosted salaries in April based on performance and also paid bonuses.
ICICI Bank has rewarded over 80,000 of its frontline employees with a salary hike of up to 8%, in July this year. These employees are over 80% of its overall workforce and the decision was taken in recognition of the services rendered during the COVID-19 pandemic.
The pay rises come as the coronavirus pandemic forces some local and global peers to cut jobs and pay. Many Indian banks are seeking to save costs as the coronavirus is expected to push soured assets to a two-decade high.
However, executives earning more than 25 lakh rupees ($34,109) at India’s fourth-largest private lender, Kotak Mahindra Bank Ltd., is taking a 10% salary cut, while senior management is taking a 15% reduction.
The Reserve Bank of India forecasts that the capital-adequacy ratio for lenders — a measure of available capital meant to ensure the bank can absorb a loss — could fall to as low as 11.8% by March from 14.6% a year earlier, close to the minimum requirement of 9%.
Representatives for Axis Bank, HDFC Bank, ICICI Bank didn’t immediately respond to media emails seeking comments.