Published 10:45 IST, June 7th 2020
'Road pe rehna padega, itni kam milti hai': SBI chief's pay-cut query reply an eyeopener
Chairman of India's top Bank, State Bank of India (SBI) Rajnish Kumar on Friday joked that he would have to start living on the streets if his salary is cut.
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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 the streets if his salary is cut. During a conference call with analysts, the State Bank of India chief was asked if the SBI would also follow its private contemporaries in announcing pay cuts.
Replying jokingly, Rajnish Kumar said, "Road pe aake rehna padega, pehle hi itni kam milti hai (I'll have to live on the road, I already get so little)" in what is nonetheless being highlighted as an indicator of pay disparity between public and private sector banks.
According to SBI's annual financial report, the Rajnish Kumar received Rs 29,53,750 (Rs 29.5 lakh) for FY19, while in comparison the CEO of India's top private lender was paid Rs 55 crore as annual compensation for the year, even though it manages around one-third of assets as compared to India's largest bank.
Private lenders like IDFC First Bank, Kotak Mahindra, Yes Bank among few others have announced salary cuts at the leadership conserve capital and cut costs for business sustainability levels amid COVID-19.
SBI Q4 net profit jumps four-fold
Meanwhile, the Government-owned bank on Friday reported a four-fold jump in its net profit at Rs 3,581 crore during the quarter ended March. This was supported by a one-time gain of Rs 2,731 crore from the stake sale in SBI Cards and Payment Services done during Q4 FY20. The country's largest lender by assets had posted a net profit of Rs 838 crore in the corresponding period of previous fiscal (Q4 FY19).
SBI said its income from operations totalled Rs 76,028 crore in Q4 FY20 as against Rs 75,671 crore a year ago. The 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 the January to March quarter.
SBI's asset quality improved as gross non-performing assets (NPAs) as a percentage of total loans came in at 6.15% in Q4 FY20 as against 6.94% in the quarter ended December 31 and 7.53% in the 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.
(With agency inputs)
10:45 IST, June 7th 2020