The City Bank, a private sector lender, has raised staff salaries despite the Covid-19 pandemic. The company will spend an additional Tk13 crore on this.
The pay raise was approved at a board meeting of the bank on Monday, June 21. According to sources at the bank, the new pay scale comes into effect from 1 May.
The bank has a total of 4,000 employees from junior to executive officer level. Of them, the salaries of 2,000 employees who have performed well have been increased. Among those whose salaries have been increased are 700 temporary workers.
"We have tried to meet the standard of salaries and allowances for employees at this level (from junior officer to executive officer) in the banking sector," said Dr Selim Mahmud, an independent director of City Bank.
"This type of practice is exercised all over the world. If salaries are not increased, then good workers may move to another bank. Only those whose performance is good, have had their salaries increased."
He is hopeful that the salary increases will raise the enthusiasm of workers.
A bank official said their deficit has been compensated for by their efficiency as valued by the salary increase. "No bank in a pandemic will decide to increase salaries. This is good news for the banking sector that The City Bank has taken such a bold decision."
In 1983, The City Bank started with 12 young entrepreneurs. Last year, the lender spent Tk547 crore on salaries and allowances.
At the end of 2020, the bank's deposits stood at Tk25,478 crore, and loans and advances stood at Tk26,820 crore.
Last year, the bank had a net income of Tk8,363 crore from interest alone. Amid the pandemic, the lender posted a profit of Tk401 crore last year and the bank's earnings per share stood at Tk3.9.
For 2020, the bank paid on its profits, 17.5% in cash and 5% in stock dividends to its shareholders. As part of corporate social responsibility, it spent about Tk25 crore last year.