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Performance Linked Incentive Unpaid in J&K Grameen Bank Despite a Profitable Turnaround
Despite a remarkable financial turnaround in FY24, Jammu and Kashmir Grameen Bank employees await their Performance Linked Incentive (PLI) payments, raising concerns over delayed rewards.
Author: Saurav Kumar
Published: May 28, 2024
Jammu and Kashmir Grameen Bank (JKGB) has delivered an impressive financial performance in FY24, marking a significant bounce back from a prolonged loss streak. Despite this achievement, employees are still awaiting their Performance Linked Incentive (PLI) payments.
PLI is a form of incentive from bank authority to its employees, which is directly related to the performance or output of the recipient.
Bank’s Scripts Profit After Loss Streak
JKGB made a remarkable comeback in fiscal year 2024, ending a four-year streak of losses. The bank reported a net profit of Rs. 3.76 crore in FY24, a substantial improvement from previous years of losses. Additionally, the bank achieved an operating profit of Rs. 34.15 crore.
In terms of Non-Performing Assets (NPA), JKGB reduced its NPA ratio from 1.77% in FY23 to 1.28% in FY24, marking a reduction of Rs. 10 crore and demonstrating enhanced risk management.
The bank’s Capital-to-Risk Weighted Assets Ratio (CRAR) also showed significant improvement, doubling from 5.50% to 11.21%. This indicates that JKGB is in a stronger position to handle unexpected losses due to the availability of adequate capital.
Moreover, the bank performed well in terms of advances, which increased from Rs. 3,152 crore in FY23 to Rs. 3,560 crore in FY24. Deposits also saw a rise, growing from Rs. 5,268 crore to Rs. 5,710 crore.
Despite an overall good performance, employees are still awaiting their PLI.
Congratulatory Message Without PLI
The bank conveyed a congratulatory message to all its members on their impressive performance, followed by sweets distribution. Ironically, there was no official communication regarding the PLI payment.
The official message read, “All operative levels are once again congratulated for the remarkable progress registered during FY 2023-24. It is only because of the conscientious and diligent efforts of staff members that the turnaround of the bank has been made possible, and the bank has achieved profitability during FY 2023-24. It is believed that with the same zeal and enthusiasm of staff members, the bank shall witness unparalleled growth during the current financial year and years to come.”
JKGB operates with approx 1100 employees across 216 branches in Union Territories of Jammu & Kashmir and Ladakh.
An officer, requesting anonymity, told Kanal, “After four years of losses, the net profit of Rs. 3.76 crore in FY24 is a boost to the morale of JKGB employees. However, for sustained growth, monetary strength is also essential. PLI is that very strength, yet no official stance has been made.”
Similarly, Assam Gramin Vikash Bank also reported a profitable turnaround in FY24, but employees have expressed concerns over unpaid PLI by the bank.