Mumbai, June 24:
The State Bank of India’s business per employee has seen a 51 per cent jump in the last four years on the back of large-scale recruitment.
Staff productivity or business per employee increased to ₹10.64 crore as at March-end 2014 against ₹7.04 crore as at March-end 2011.
Though profit per employee increased to ₹6.45 lakh in 2012-13 from ₹3.85 lakh in 2010-11, it declined to ₹4.85 lakh in 2013-14 primarily due to higher provisioning, increase in overheads and staff cost during the year, the bank said in its annual report.
The large-scale recruitment of Generation Next employees in the Officers and Assistant grade over the last three to four years has brought about a far-reaching attitudinal change among staff in their customer interface and services across the branches, the bank said.
Business growth
Further, recruitment has also become a catalyst in enhancing/improving the productivity and efficiency of employees, resulting in an increase in business growth. Many of the new Assistants hold good academic qualifications, including computer engineering and MBA.
Further, recruitment has also become a catalyst in enhancing/improving the productivity and efficiency of employees, resulting in an increase in business growth. Many of the new Assistants hold good academic qualifications, including computer engineering and MBA.
In FY2014, SBI saw its employee additions and retirement/attrition aggregating 8,021 (22,393 in FY2013) and 14,284 (9,578), respectively. The bank has been recruiting in a big way since 2009 as each year thousands of employees, who were recruited in the mid-1970s, are retiring.
As on March-end 2014, SBI had 2,22,033 employees (2,28,296 as on March-end 2013) on its rolls. Of this, 36 per cent are officers; 46 per cent are clerical staff; and the remaining sub-staff. Women accounted for about 20 per cent of the total employee strength.
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SBI average salary at Rs 10 lakh exceeds ICICI Bank’s by 67 per cent-
State Bank of India (SBI) has raised salaries by 47% from fiscal 2011 to December quarter FY14
State Bank of India (SBI) has raised salaries by 47% from fiscal 2011 to December quarter FY14. In fact, SBI’s average salary per employee at Rs 10 lakh is 67% more than Rs 6 lakh paid by ICICI Bank.
In a report, IDFC Institutional Securities said SBI’s average employee salary has risen 47% over FY11 (after the impact of pay hikes), while its better performing private sector peer ICICI Bank’s average salary has declined 22% over the same period.
The report added that most of the sharp increase in employee costs for PSU banks has come after a hike in compensation levels in FY11 and also because part of employee compensation for PSU banks is directly linked to inflation indices.
For the three months ended December 31, 2013, SBI’s total payment to employees at Rs 4,512 crore was up 25.05% from R3,608 crore in the same period last year. SBI had reported net profit of Rs 2,234.34 crore for the quarter ended December 31, down 34% from a year ago, on higher bad loans and increased provisioning. The bank saw provisions worth Rs 3,429 crore for non-performing assets (NPAs) during the quarter, up 24% from a year ago.
“While ICICI has clearly been tightening its belt, SBI’s salaries are to some extent indirectly linked to inflation in the domestic economy, preserving the employee’s purchasing power over the longer term,” the report said.
A part of SBI’s salaries are in the form of long-term retiral benefits and, therefore, are not a part of take-home salaries. Retiral benefits were close to 22% of SBI’s employee costs in April-January period of fiscal 2014.
http://indianexpress.com/article/business/banking-and-finance/sbi-average-salary-at-rs-10-lakh-exceeds-icici-banks-by-67-per-cent/
SBI average salary at Rs 10 lakh exceeds ICICI Bank’s by 67 per cent-
State Bank of India (SBI) has raised salaries by 47% from fiscal 2011 to December quarter FY14
State Bank of India (SBI) has raised salaries by 47% from fiscal 2011 to December quarter FY14. In fact, SBI’s average salary per employee at Rs 10 lakh is 67% more than Rs 6 lakh paid by ICICI Bank.
In a report, IDFC Institutional Securities said SBI’s average employee salary has risen 47% over FY11 (after the impact of pay hikes), while its better performing private sector peer ICICI Bank’s average salary has declined 22% over the same period.
The report added that most of the sharp increase in employee costs for PSU banks has come after a hike in compensation levels in FY11 and also because part of employee compensation for PSU banks is directly linked to inflation indices.
For the three months ended December 31, 2013, SBI’s total payment to employees at Rs 4,512 crore was up 25.05% from R3,608 crore in the same period last year. SBI had reported net profit of Rs 2,234.34 crore for the quarter ended December 31, down 34% from a year ago, on higher bad loans and increased provisioning. The bank saw provisions worth Rs 3,429 crore for non-performing assets (NPAs) during the quarter, up 24% from a year ago.
“While ICICI has clearly been tightening its belt, SBI’s salaries are to some extent indirectly linked to inflation in the domestic economy, preserving the employee’s purchasing power over the longer term,” the report said.
A part of SBI’s salaries are in the form of long-term retiral benefits and, therefore, are not a part of take-home salaries. Retiral benefits were close to 22% of SBI’s employee costs in April-January period of fiscal 2014.
http://indianexpress.com/article/business/banking-and-finance/sbi-average-salary-at-rs-10-lakh-exceeds-icici-banks-by-67-per-cent/
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