Bankers are preparing to enjoy a more festive Diwali, as several government-run banks have declared special payouts to cover the expenses associated with purchasing and gifting sweets, in line with the customary practices during the festival. Diwali 2023 is set to be celebrated on Sunday, November 12.
Indian Public Sector Banks Show Generosity to Employees for Diwali 2023
The State Bank of India (SBI), the largest public sector lender in India, has offered Rs 2,500 to each of its employees in anticipation of the festival of lights. According to the bank’s 2023 annual report, it employs more than 2 lakh people.
A circular from SBI, which has been reviewed by Moneycontrol, stated, “An allocation of Rs.2,500/- per head has been made from Welfare Funds for the distribution of Sweets/Dry Fruits to all employees. As per the provided instructions, the distribution of Sweets/Dry Fruits is to take place just before the Deepawali Festival.”
The note from November 3 further added, “In this context, we advise that it has been decided by the Competent Authority, that a Greeting Card from Chairman has to be given to every Staff in the Circle/ CC/CC establishments along with Sweet/ Dry Fruit Hampers/Vouchers in a befitting manner.”
Similarly, Punjab National Bank (PNB), India’s second-largest public sector lender, has granted Rs 1,000 to each of its employees this Diwali to enhance the festive celebrations. The circular from PNB stated, “We are delighted to share that in order to enhance the joy in the upcoming Deepawali celebration and express the unwavering dedication of our employees, it has been decided to distribute confectioneries (Sweets, dry fruits, chocolates, etc.) worth Rs 1000 to each active employee of the bank.” PNB has over 1 lakh employees.
Diwali Bonuses and UCO Bank’s Sweets U-Turn in Public Sector Banks
Union Bank of India has allocated Rs 1,500 to each of its employees, while Indian Overseas Bank and Canara Bank have set the amount at Rs 2,000 and Rs 2,500, respectively.
In an interesting twist, UCO Bank, a public sector lender, reversed a previous decision made on November 2 to distribute packets of sweets to the top 10 debtors who had not repaid their loans. According to the most recent circular, which Moneycontrol has reviewed, the bank stated, “It is hereby advised that the instructions contained in the aforesaid communication stand withdrawn.”
In an earlier note, also reviewed by Moneycontrol, UCO Bank had mentioned, “The top management has suggested the distribution of a sweet packet to the top 10 NPA (non-performing asset) borrowers of each branch, in line with peer PSBs like any other valued customers, where branch heads need to personally meet them, greet them on the occasion of Diwali, and distribute them a sweet packet.”
The circular from the Kolkata-based bank also indicated that zonal heads were advised to personally meet and greet the top 10 NPA borrowers of the zones on the auspicious occasion of Diwali. The previous circular suggested that establishing a connection with these customers might bridge the gap between them and the bank and potentially encourage some of the borrowers to settle their outstanding dues.
