Private banks dole out ‘healthy’ hikes, 40,000 new jobs on way

While the bank’s annual appraisal process is over, its peers including HDFC Bank and Axis Bank are set to complete the exercise by the end of this month. Executives of both banks said they were looking to offer handsome raises to employees, which would be in double-digits in most cases.

As competition hots up in the Indian banking sector with the prospect of a host of new payments banks set to come up, employees of different private lenders are laughing all the way to the bank to deposit their fatter pay-cheques.

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Moreover, according to industry estimates, the entry of these new banks are also likely to throw up 40,000 new jobs in the next three years. India’s largest private sector lender, ICICI Bank, has given “healthy” annual hikes to its employees, mostly in the double-digits.

While the bank’s annual appraisal process is over, its peers including HDFC Bank and Axis Bank are set to complete the exercise by the end of this month. Executives of both banks said they were looking to offer handsome raises to employees, which would be in double-digits in most cases.

Besides, various other perks including employee stock ownership plans (ESOPs), promotions and flexible working environment are also on the cards. “The appraisal process is over and most employees have been rewarded adequately and given good hikes,” a senior ICICI Bank executive who did not wish to be identified told HT.

The bank has 65,000 staff. An Axis Bank executive, too, said final “letters” were expected later during the month. “The increments would be good especially as the performance of the bank has been very good as well,” he added. Analysts said there could be widespread poaching from existing lenders — both public and private — as new banks come up.

While the Reserve Bank of India has not indicated the actual number of licences it was looking to give, at least 25 new banks were expected to come up.