Kotak Mahindra Bank to Cut 10% Salary of its staff

In a very sorry news for already underpaid Banking staff of our country , new generation private sector bank Kotak Mahindra Bank has announced that it will cut the salaries of its employee by 10% for employees earning more than 25 Lakhs a year.

This news came up after an internal circular of the bank state the same.But this is somewhat relief to those people who are earning less than 25 Lakhs per annum their salary would not be affected by this pay cut undertaken by the bank.

But this move seems to be very strange as none of any other private  or public sector bank has not announced any such kind of pay cuts of its staff. The important point here to note is that banks are running their business as usual and the impact of EMI deferment will have long term benefit to banks only as they will earn more interest on the deferred amount.

Impact of Kotak Bank Salary Cut on Public Sector Banks !!

The most important question which may bankers have asked me is that what will be its impact on the Public sector bank employees As government of India has already freezed the Dearness Allowance of its employees and Pensioners for more than one year period and several states have also followed the suit.

The public sector bankers are already very much underpaid and their wage revision scheduled every five years is already stuck for for more than two and half years since November 2017.

The PSB bank staff are already under tremendous pressure during this Covid 19 time as they are been ordered to give maximum loan under the Covid 19 product to their customers. Many PSB bankers are afraid that in case these loans turn bad in future they will be put under the investigation leading to charge-sheet and reduction of their increments.

Previously it has been seen that banks top management to be in the good books of Government of India and Finance Ministry may take and such kind of drastic step such as freezing of dearness allowance or stoppage of one increment or reduction of some percentage from the salary of its employees.

Moreover , PSB employees have already contributed their one day salary to PM Care fund and such cut or deduction incident will only lead to resentment and will not be seen positively by Nationalised bank employees.

As PSB bank staff are already suffering any such decision of banks management will be very much detrimental to the growth of PSB which are already reeling under losses. Hence we also urge to government as well as PSB top management that they should not take any such decision of reduction of salary of their employees rather than they should give them rewards for to them that in this pandemic situation they are with their bank and giving customer service at its best.