Indian private sector lender Axis Bank is reportedly offering pay hikes of up to 12% based on the performance of employees.

In doing so, Axis Bank joins its rivals in the country despite the Covid-19 pandemic hampering its profitability, Bloomberg reported.

The bank said that it will increase the salaries of its employees by 4-12%, effective from 1 October 2020.

The Mumbai-based lender also paid bonuses to its staff; the report added citing people familiar with the matter.

Axis Bank currently employs 76,000 people in the country.

The bank follows the footsteps of the country’s largest private sector lender by assets HDFC Bank, which raised salaries back in April 2020, based on performance, and also paid bonuses.

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In July, ICICI Bank also offered a pay rise and paid bonuses to nearly 80% of its 100,000 employees, Bloomberg said.

These salary hikes in the Indian banking sector comes after the pandemic pushed some local and global peers to cut jobs and pay.

Many banks are looking to slash costs as the current crisis will likely push non-performing assets (NPAs) to the highest in two decades.

For example, Kotak Mahindra Bank’s executives who are earning more than INR2.5m ($34,109) will take a 10% pay cut, while the senior management will take a 15% reduction.

Axis Bank in 2020

In August, Axis Bank raised INR100bn ($1.34bn) through a Qualified Institutions Placement (QIP) issuance.

In the same month, Axis Bank partnered with Innoviti to offer EMI on debit cards.

In July, Axis Bank shut down its UK subsidiary to focus on its home banking market.

In May, Axis Bank plannned to make work-from-home (WFH) an integral part of its work culture even after Covid-19 subsides.

In April, Axis Bank was planning to raise INR350bn ($4.6bn) as it reported a loss stemming from additional loan provisions related to the Covid-19 crisis.