Banks paying less salaries this year

CHENNAI: Banks are sharing a smaller percentage of their revenue with their employees this year as compared to the same quarter last year.

For HDFC Bank, the share of salary in the sales went from 12.25% in the September quarter last year to 11.3% in the same quarter this year. For ICICI Bank, the figure went from 10.33% last year to 9.63% this year. Axis Bank dropped too, from 9.45% last year to 8.64% this year.

“With the banking sector having the closest correlation with the economy, the effects are much more visible when it comes to slowing down,” said HR expert and president, Dhananjay Bansod, Leighton.

He said that the current year was similar to last year in terms of business performance - both weren't good. He also said that bonuses were at almost the same level this year when compared to last year.

In the case of Bank of Baroda, the share of salary in revenue dropped from 8.92% in the September quarter last year to 8.61% in the same quarter this year.

For Kotak Mahindra Bank, the share of salary in revenue fell from 14.69% to 12.62% while in the case of Punjab National Bank, the same fell from 13.86% to 13.69%.