Four banks finally have implemented salary cut initiatives to adjust operation losses driven from coronavirus pandemic that halted business for about three months.
At latest One Bank, announced pay cuts for their officers. Earlier, Exim Bank, Citi Bank and AB Bank implemented salary cuts initiatives, sources said.
One Bank management distributed a letter sent to their officials on Thursday said the basic salary would be reduced by 5 to 10 per cent and the total salary by 5 to 10 per cent. However, no salary cut would be happened who draw below Tk 50,000.
Salary cut will be effective from July 1. The basic salary of the superiors from the assistant vice president of the bank will be reduced by 10 percent. And the basic salary of the officers of lower grade from the principal officer will be reduced by 5 percent.
Earlier in June, City Bankers reduced the salaries and allowances of its officers and employees by 18 percent. It has been effective from June 1. Exim Bank has reduced the salary by 15 percent which effective June 1.
The decision to reduce the salaries of these two banks will remain in force till December 31, 2021. AB Bank has reduced salaries for May and June by 5 percent. They have been making decisions for months without making a decision together. Last month, Al Arafah Islami Bank decided to reduce its salary, but it was later postponed.
The Association of Banks (BAB), an association of private bank owners, advised bankers to reduce their salaries last June in the wake of the Corona epidemic.
However, several banks have announced not to reduce salaries. These include UCB, SBAC, Prime Bank, Dutch-Bangla Bank, BRAC Bank, Bank Asia, NCC and Mutual Trust Bank. But it is not yet clear what the rest of the private banks will do. There are 70 private banks in Bangladesh.
Officials at the banks where the salaries have been reduced are angry. Other banks are also worried about the pay cuts. “We are providing services in Corona,” said an official of the bank whose salary has been reduced. About 10 percent of our banking sector employees have been affected by the corona. 35 people died. Even then, we are frustrated with the pay cut. ”
Apart from this, the bank has fixed interest rates since April, which has led to fears of a decline in bank deposits. From April, the interest rate on deposits has been fixed at 6 per cent and the loan at a maximum of 9 per cent.
There are a total of 60 private banks in Bangladesh. Their number of employees is more than one lakh 9 thousand. Yet very few banks have decided to reduce salaries. Therefore, the former deputy governor of Bangladesh Bank Khandaker Ibrahim Khaled does not see any negative impact on the banking sector as a result. “The officials of the banks that have reduced their salaries will naturally be disappointed. But they are small banks. They may be reducing their salaries to survive,” he said