Banks in Diwali mood: PSBs distribute up to Rs 2,500 to each employees to buy sweets

For example, the State Bank of India (SBI) has given Rs 2,500 to each of its employees ahead of the festival of lights.

Bankers are all set to celebrate a sweeter Diwali, with many state-run banks announcing a special payout to defray the costs incurred in buying and gifting confectionaries as is the custom associated with the festival. Diwali 2023 falls on Sunday, November 12.

India's largest public sector lender, State Bank of India (SBI) has given Rs 2,500 to each of its employees ahead of the festival of lights. The bank has more than 2 lakh employees, according to its 2023 annual report.

"It was advised that an allocation of Rs.2,500/- per head has been done out of Welfare Funds for distribution of Sweets / Dry Fruits amongst all employees. As per the given instructions, distribution of Sweets/Dry Fruits has to be done just before Deepawali Festival, "said the SBI circular which Moneycontrol has reviewed.

The November 3 note added, "In this context, we advise that it has been decided by the Competent Authority, that a Greeting Card from Chairman has to be given to every Staff in the Circle/ CC/CC establishments along with Sweet/ Dry Fruit Hampers/Vouchers in a befitting manner."

Similarly, India's second-largest public sector lender, Punjab National Bank (PNB) has given Rs 1,000 to each employee this Diwali.

"We are delighted to share that in order to enhance the joy in the upcoming Deepawali celebration and express the unwavering dedication of our employees. It has been decided to distribute confectioneries (Sweets, dry fruits, chocolates, etc) worth Rs 1000 to each active employee of the bank, "said the PNB circular. The lender has over 1 lakh employees.

Union Bank of India have given Rs 1,500 each to employees, while the amount is Rs 2,000 for Indian Overseas Bank and Rs 2,500 for Canara Bank.

No sweets to UCO defaulters!

Interestingly, public sector lender UCO Bank on November 2 withdrew an earlier decision to distribute packets of sweets to the top 10 debtors who had not repaid their loans. In the latest circular that Moneycontrol has reviewed, the bank said: "It is hereby advised that the instructions contained in the aforesaid communication stand withdrawn."

In a note a day earlier, which too Moneycontrol has reviewed, UCO Bank said: "The top management has suggested for distribution of sweet packet to top 10 NPA (non-performing asset) borrowers of each branch, in line with peer PSBs like any other valued customers, where branch heads need to personally meet them, greet them on the occasion of Diwali and distribute them a sweet packet.

"Zonal heads are also advised to personally meet and greet the top 10 NPA borrowers of the zones on the auspicious occasion of Diwali," added the Kolkata-based bank's circular.

In the previous circular, the bank said that proper connect with such customers may bridge the gap created between them and the bank. Such activity, it was believed, may also compel some of the borrowers to settle their dues.