'Road pe rehna padega, itni kam milti hai': SBI chief's pay-cut query reply an eyeopener

Chairman of India's biggest bank - state-owned State Bank of India (SBI) -  Rajnish Kumar on Friday joked that he would have to start living on streets if his salary is cut. During a conference call with analysts, State Bank of India chief was asked if SBI would also follow its private contemporaries in anuncing pay cuts. 

Replying jokingly, Rajnish Kumar said, "Ro pe aake rehna pega, pehle hi itni kam milti hai (I'll have to live on ro, I alrey get so little)" in what is neless being highlighted as an indicator of pay disparity between public and private sector banks.

According to SBI's annual financial report, Rajnish Kumar received Rs 29,53,750 (Rs 29.5 lakh) for FY19, while in comparison CEO of India's top private lender was paid Rs 55 crore as annual compensation for year, even though it mans around one-third of assets as compared to India's largest bank. 

Private lenders like IDFC First Bank, Kotak Mahindra, Yes Bank among few ors have anunced salary cuts at leership conserve capital and cut costs for business sustainability levels amid COVID-19.

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SBI Q4 net profit jumps four-fold

Meanwhile, Government-owned bank on Friday reported a four-fold jump in its net profit at Rs 3,581 crore during quarter ended March. This was supported by a one-time gain of Rs 2,731 crore from stake sale in SBI Cards and Payment Services done during Q4 FY20. country's largest lender by assets h posted a net profit of Rs 838 crore in corresponding period of previous fiscal (Q4 FY19).

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SBI said its income from operations totalled Rs 76,028 crore in Q4 FY20 as against Rs 75,671 crore a year ago. interest earned stood at Rs 62,681 crore while interest expended was Rs 39,914, leaving a net interest income at Rs 22,767 crore during January to March quarter.

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SBI's asset quality improved as gross n-performing assets (NPAs) as a percent of total loans came in at 6.15% in Q4 FY20 as against 6.94% in quarter ended December 31 and 7.53% in quarter ended March 31 last year. Net NPAs were at 2.23% in Q4 FY 20 as compared to 2.65% in Q3 FY20 and 3.01% in Q4 FY19.

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(With ncy inputs)