India-based private sector lender ICICI Bank has decided to offer a pay hike to more than 80,000 of its frontline employees for working amid the Covid-19 pandemic.
The bank will offer these employees a salary hike of up to 8%, the Press Trust of India (PTI) has reported.
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These employees represent more than 80% of the bank’s total workforce across the country.
ICICI’s decision to offer the pay raise to its frontline staff is to recognise their services rendered during the ongoing pandemic.
The hike is for the fiscal year 2020-21 and will take effect this month, the report added.
According to the report, most of these employees work in customer-facing roles with grades M1 and below.
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By GlobalDataThese frontline employees are responsible for the functioning of the branches and other bank operations.
The latest move from the bank is contrary to stand taken by several other companies which have suspended compensation appraisals in the wake of the Covid-19 outbreak.
The report from PTI noted: “Reducing costs has become imperative because of the economic impact of the Covid-19 pandemic, which has resulted in lockdowns across the country since late-March and has disrupted economic activities.”
As at the end of March quarter, ICICI Bank has recorded a 26% growth in net profit at INR12.21bn ($162m) on a standalone basis.
