State Bank of India, India’s largest bank, is introducing performance incentives for its middle and senior management.
These variable incentives are being structured in such a way as to provide higher incentives for better performance.
The bank had said that it hoped to grow its deposits at 20 per cent and its loans at 16 per cent this fiscal.
Last year, its deposits grew 11.75 per cent and advances, 15.78 per cent.
Given the slowdown that the economy is facing, it may be a tough ask for the bank to grow its deposits at nearly twice the pace of last year.
Perhaps to ease the pain involved in meeting the targets, the bank has decided to provide its middle and senior management with incentives that will be as high as Rs 1.5 lakh for a Chief General Manager.
The bank has now fixed a target for achieving 25 per cent growth in deposits over March 2012 level.
However, consolation incentives are also proposed on achieving 20 per cent and above. Interestingly, there is no mention here of other bank officers, clerks or the subordinate staff who are the first point of contact and are on the field mobilising the deposits. The results of the scheme will be announced on the PBBU (personal banking business unit) Web site.
All incentives will be in the form of gift cards only.
The performers under various categories will be felicitated at various conclaves and performance review meetings at the end of financial year 2012-13.
The campaign would be for all branches opened up to March 31, 2012 and run (with retrospective effect) from April 1, 2012 to March 31, 2013.