State Bank of India (SBI) New Notification On Jan - 2016 - ALL JOBS FOR YOU

State Bank of India is seeking the government's permission to dole out up to 3 per cent of its annual profits to staff in incentives in an attempt to draw top talent that normally make a beeline for private sector behemoths such as ICICI Bank and HDFC Bank.

The state-run giant also plans to give stock options to employees above the rank of assistant/deputy general manager, hoping that it will help retain talent and improve performance, two people familiar with the matter said.

If the proposals are approved by the Centre, it could lead to more than 2 lakh SBI employees sharing about Rs 390 crore of its profits and set the stage for other staterun lenders to follow suit, which will end decades-old collective bargaining by trade unions. The details of how the incentive schemes would work are yet to be finalised. The profit number is based on 2014-15 earnings.

"We are taking all regulatory approvals to incorporate a new performance-based incentive structure," said Ashwini Mehra, deputy managing director andcorporate development officer at SBI, without elaborating on the proposals.

The proposals are in line with the government's initiative to induct private talent in state-run banks, which have accumulated huge bad loans due to poor credit analysis and a slowdown in the economy. The government has already split the position of chairman and chief executive, and is in the process of hiring private talent to head Punjab National Bank and other lenders.

"There is a wide gap between public and private sector middle-level bankers, both in terms of remunerations and promotions," said Babu Sivaprakasam, partner (banking), Economic Laws Practice, a consultancy firm.

"If SBI is doing it, others too should follow suit as future lies on such progressive approach," said Sivaprakasam, who has worked for large public, private and foreign banks.

An assistant/deputy general manager at a public sector bank is typically in the age group of 42-52 years, but much younger people often become vice-presidents at private sector banks and draw much higher salaries. An AGM or DGM earns Rs 22-28 lakh a year at SBI while a person can earn as high as Rs 35-45 lakh in top private banks, say headhunters.

SBI plans to hire 2,000 probationary officers this fiscal while 500-1,000 people will be taken on as contractual staff. It will also recruit 5,000 assistants. "With digital banking being the focus, candidates should have sparks for Internet banking," said SBI's Mehra.

In fiscal 2015, SBI reported a 23 per cent growth in net profit to Rs 13,102 crore. A 3 per cent distribution of net profit would mean allocating Rs 393.06 crore among 2.13 lakh employees, including 78,540 officers. Total employee payments, including salary and provision for wage revision, were 12 per cent up at Rs 19,393 crore during the period.

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