Private banks have started walking on the path of reducing the salaries of the employees to cover the loss of corona. Many have already started the process of retrenchment. During the coronation period, the bank employees provided services at the risk of their lives. They are the ones who are now suffering from the fear of losing their jobs and losing their salaries. There has been intense dissatisfaction and anger among the bankers.
It is learned that AB, The City and Exim Bank, which are privately owned by the private sector, have already reduced the salaries of their employees by 15 percent. It is learned that other banks will also take a decision in this regard in a few days. At present there are 42 private banks in the country.
Meanwhile, even though the salaries and allowances of the bankers have been reduced, the fees and other facilities for attending the meeting of the bank directors have come down. A letter from the Bangladesh Association of Banks (BAB), an organization of bank managers, has created panic among all private bankers when one or two banks have decided to reduce their salaries themselves.
The letter from BAB called for the closure of various facilities for bankers as well as a 15 per cent reduction in salaries for those earning more than Tk 40,000. BAB has suggested that all banks implement these decisions for the period from July 1 to December 2021.
Besides, the BAB letter also recommended promotion of employees, increase in salaries, closure of incentive bonuses, closure of new branches, agent banking and opening of sub-branches. The 13-point letter of recommendation also includes a ban on all purchases of fixed assets and IT products, a ban on local and foreign training for staff, a ban on all foreign travel, a ban on all social responsibility spending and grants, and a ban on advertising in newspapers and television.
On condition of anonymity, several bankers said that no other expenses including housing have been reduced. As a result, bankers will be in danger if their salaries are suddenly reduced by 15 per cent. Housing, children’s education and living expenses cannot be reduced if you want. The owners have made profits year after year. Even in Corona, the workers have worked with risk, in return for which the decision to reduce salaries and allowances is now unacceptable.
Nazrul Islam Majumder, chairman of Exim Bank, told Business Mirror “The banks will decide on this themselves. Our Exim Bank has decided to reduce the salary by 15 percent. Those who get a salary of less than Tk 40,000, their salary will not be reduced.”
Banks have been hit hard by the 9 per cent interest rate on all loans since last April. Corona has been added to this. Many banks have closed down their retail loan business due to low interest rates and corona. For this reason, many banks are trying to reduce costs by reducing the manpower of the retail credit department.