DhanBank offers IBA salary option to 2k officers

KOCHI: Thrissur-based lender Dhanlaxmi Bank on Friday issued a circular to its employees in the officer grade offering them the option to shift from a CTC (cost-to-company) salary structure to the first three scales of IBA's salary structure. The option will be available to 2,350 officers of the bank.
"We have given the option to officers who are on a CTC salary structure to shift to IBA salary structure from Friday onward," said P G Jayakumar, who took over as managing director and chief executive officer of Dhanlaxmi Bank recently."The option is being given is as per the settlement the bank's management had made with its employees union two months back," he added. Till recently, Jayakumar was also on the IBA salary scale before replacing Amitabh Chaturvedi as managing director and chief executive officer.
"During our discussions with the union, we had agreed to provide an option to migrate employees from CTC to IBA in February, and hence, we issued the circular today," Jayakumar said. The pay package given to officers belonging to Category III of the IBA structure ranges from Rs 3.5 lakh to Rs 6 lakh per annum. Incidentally, the cost-to-company salary structure is in line with what leading private banks are paying and is higher than the IBA salary. However, those employees who opt for IBA structure would be eligible for pension.
Chaturvedi, Jayakumar's predecessor had attempted to turn Dhanlaxmi Bank into a new generation bank by hiring a group of young and well paid employees on a CTC salary structure, but this caused discontent among the workforce. During his over 3-year tenure as chief executive, Chaturvedi increased the number of employees from 1,400 to 4,600, of which 3,700 are in the officer grade.