Canara Bank gives out remarkable 15 days PLI to employees again!

Public sector banks (PSBs) are distributing the Performance Linked Incentive (PLI), which is introduced from the financial year 2020-21 in terms of 11^th Bipartite Settlement / 8^th Joint Note signed with the Indian Banks’ Association (IBA) dated 11.11.2020.

As per the scheme, the Performance Linked Incentive Scheme is payable based on operating profit / net profit of the Bank. The PLI shall be payable to all employees annually over and above the normal salary payable. The PLI matrix shall decide the amount payable to the employees (number of days of pay = Basic + DA) depending on the annual performance of the Bank. All the employees shall get the minimum number of days of pay as incentive depending on where in the matrix the Banks performance fits in.

The PLI Matrix

Sl No.	YoY Growth in Operating profit	No. of days for which Salary (Basic + DA) shall be paid
1.	<5%	Nil
2.	5% – 10%	5 Days
3.	>10% – 15%	10 Days*
4.	>15%	15 Days*
3rd and 4th Slabs are payable only if the Bank has net profit*. If a Bank has growth in operating profit of 5% and more but there is no net profit then minimum 2nd slab of 5 days will be payable.

If a PSB reports a 5-10 percent increase in operating profit, the staff receive incentives worth 5 days of pay. Employees are paid PLIs worth 10 days of salary if the bank posts a 10-15 percent jump in operating profit, and 15 days if the rise in operating profit is over 15 percent.

***Canara Bank paid its staff PLIs worth 15 days of salary.***

Accordingly, for the financial year 2022-23, based on the financial results, Canara Bank has declared Performance Linked Incentive for 15 days. As such, all the eligible employees viz., employees who are/were on the rolls of the Bank from 01.04.2022 to 31.03.2023 are covered for payment of 15 days salary (Basic + DA) as Performance Linked Incentive for the financial year 2022-23.

Canara Bank had reported a standalone profit of Rs 10,604 crore during FY23, helped by a drop in loan loss provisions and higher net interest income. The PLIs are applicable to employees across all ranks and designations.