The Al-Arafah Islami Bank will cut its employees salaries by 10 to 25 percent to minimise the cost amid coronavirus pandemic.
The decision was taken in a board meeting held on Thursday, according to bank insiders.
As per the board decision, employees getting salary above Tk40,000 to Tk1 lakh will face 10 percent pay cut, while deputy managing directors will see the highest 25 percent pay cut.
The salary of the managing director rank was set to Tk8 lakh, according to the bank.
Moreover, increments and incentive bonus will remain suspended until December next year.
The bank will not go for fresh recruitment during this period, the bank board decided.
Other extra expenditures will be kept limited to reduce operational costs.
The decision will come into effect from the first day of July.
Earlier, City, AB and Exim banks announced pay cuts above 10 percent to offset loss incurred amid pandemic.
Association of Banks (BAB) recently instructed banks to move for cutting salaries by 15 percent to limit expenditures.
The association gave 13 instructions to reduce operational costs.