The State Bank of India will share up to 3 per cent of its annual profit with its employees to retain talent and motivate them. The bank has sought permission from the Finance Ministry in this regard.
Besides, it is also considering a share-purchase scheme for all its employees, irrespective of their posts. The largest public sector lender expects to raise between Rs. 800-1,200 crore through this scheme.
Currently, the government allows it to share one per cent of profits with its employees but it has sought to hike the amount. The matter is now before the Finance Ministry, which will take a decision. For the fiscal ended March 2015, SBI’s net profit rose by 20 per cent to Rs. 13,101.57 crore as compared to Rs. 10,891.17 crore last year.