The incentive bonus received by employees of state-owned commercial banks, state-owned specialised banks and non-bank financial institutions will not be given more than three incentive bonuses from net profit.
A notification in this regard has been issued by the Financial Institutions Division of the Ministry of Finance recently.
The notification states that net profit will have to be calculated by adjusting the provision on loans and advances, provision for depreciation and increase in the value of investments and provision for depreciation and increase in other assets from the bank's operating profit.
After this directive, state-owned commercial and specialized banks and financial institutions will no longer be able to give incentive bonuses to employees indiscriminately.
In determining profit, the net profit rate on working fund; rate of increase in the amount of deposits; the rate of increase in the amount of loans and advances; the rate of recovery through cash and adjustment from classified loans and cash recovery from written-off loans will have to be adjusted. For this, a specific table will have to be followed, which has been mentioned in the notification.
