76,000 Axis Bank Employees Will Get Salary Hike; Every HDFC Staff Will Get Bonus, Job Security

It seems that the banking sector is seeing a boost and a positive environment is ahead after a series of downfalls due to moratorium and other issues related to the ongoing pandemic.

HDFC Bank Assured Its Employees

While assuring the employees about pandemic effects, India’s largest private sector lender, HDFC bank said that they are doing well with sufficient capital and not have a strain on the loans that it has made.

Further, the Managing Director and CEO Aditya Puri have assured the employees saying that their jobs and bonuses are secure.

Moving ahead, Puri hinted that the bank is expecting to post a strong set of quarterly numbers for the July-September period and quarters ahead as well.

Moreover, he urged the employees to work as a team and follow the vision of the bank to beat the competition.

The lender has also launched festive offerings and urges employees to share messages about the festive offers on their social media handles.

Axis Bank Offering Pay Hikes To Its Employees

In another development, Axis bank, being India’s third-largest private lender is joining the league of larger rivals.

The bank is offering pay hikes to its staff despite the economic fall out of the coronavirus pandemic threatens profit growth.

The  Mumbai-based lender plans to increase the staff salaries between 4% and 12% from Oct this year 1 based on performance, according to people with knowledge of the plans. 

Moreover, the bank has also paid bonuses to its staff which is about 76,000 employees, as per the sources.

Other Competitors 

Prior to this HDFC Bank Ltd. also gave salary increments in April based on performance and also paid bonuses.

The second-biggest privately-held lender, ICICI Bank Ltd also gave bonus and pay rise to its 80% of the 100,000 employees during July, as per the information given by sources.

The pay rises hold significance as many local and global peers are forced to cut jobs and pay due to the coronavirus pandemic.

Currently, several Indian lenders are looking to save costs as the coronavirus is anticipated to push soured assets to a two-decade high.

So far, Kotak Mahindra Bank, Axis Bank and ICICI Bank are some of the private lenders who have raised about $9 billion by tapping equity markets to protect themselves and prepare for future business. 

This will help them to have a greater ability to cope with bad loans even as they extend credit.