New Delhi: State Bank of India is likely to offer 3% of annual profit to their employees as a part of talent retention and motivation initiative.

To compete with new private sector banks and other financial services providers, the country’s largest lender State Bank of India is planning to offer up to 3% of annual profit to their employees as a part of a talent retention and motivation initiative.

SBI is decided to give performance based incentives to their senior employees for this the bank has approached the government for approval. For an approval bank required financial ministry permission, the bank already sent request to financial ministry and looking for approval to share up to 3 % of profits with senior and middle management employees.

Chairperson of State Bank of India Arundhati Bhattacharya said that “If you consider the fact that incentivisation is a good way of ensuring people meet up to whatever are the challenges…they respond to them. So to that extent government allows us to share 1 per cent. We are saying that it is necessary for us to hike that amount to 3 per cent”.

Other private sector and financial service providers including Bank of Baroda, Bank of India and IDBI Bank are likely to follow the same pattern. SBI has more than 2 lakh employees, if the proposal approved by the Center, it has to share about Rs.390 crore of its profits and set the stage for other state-run lenders. Details regarding how the schemes would work are yet to be finalised and the profit number is number is based on 2014-15 earnings.