HDFC Bank Announces Rs 1,500 Crore Ex-Gratia Payment to Staff
The primary objective of this initiative is to address the issue of attrition within the bank. HDFC Bank emphasized the importance of motivating its extensive ground workforce, which makes up 90 percent of the total manpower, especially in light of the increased attrition rates in recent years.
In a significant move, HDFC Bank has announced an ex-gratia payment of approximately Rs 1,500 crore to its employees. This decision comes in the wake of the bank’s exceptional performance in the fourth quarter of FY24 and is seen as a token of appreciation for the employees’ steadfast commitment during the bank’s merger with HDFC.
The announcement was made by Sashidhar Jagdishan, the Managing Director & Chief Executive of HDFC. The primary objective of this initiative is to address the issue of attrition within the bank. HDFC Bank emphasized the importance of motivating its extensive ground workforce, which makes up 90 percent of the total manpower, especially in light of the increased attrition rates in recent years.
On Friday, 19 April 2024, following the release of its earnings for January-March, the bank reported a substantial 37.1 percent growth in net profit. This increase was largely driven by a one-time gain from the sale of a majority stake in HDFC Credila, an education loan company. Despite this gain, the bank also set aside floating provisions amounting to Rs 10,900 crore, effectively neutralizing the impact of the stake sale gain.
In a related development, on 9 May 2023, the bank had allotted 4,561,966 equity shares of Rs 1 each to eligible employees under the Employee Stock Option Scheme. Following this allocation, the bank’s paid-up share capital increased from Rs. 5,583,443,980 to Rs. 5,588,005,946. The stock options were granted at market price, in accordance with the SEBI (Share Based Employees Benefits and Sweat Equity) Regulations, 2021.
This series of initiatives underscores HDFC Bank’s commitment to its employees and its strategic approach to maintaining a motivated and dedicated workforce.
Stay tuned, on PropleManager.co.in for further updates to the evolving workplace paradigm.
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