Kotak Mahindra Bank has announced a 10 percent cut in CTC for all employees earning above Rs 25 lakh per annum.
“We have decided on a 10 percent reduction in CTC for all colleagues with a salary of more than Rs 25 Lakh per annum, with effect from May 2020 for FY21. Employees earning less than Rs 25 lakh p.a. will not be impacted,” said the bank in an internal email to all employees.
Moneycontrol has reviewed the copy of the email.
The bank has cited the impact of COVID-19 on its business for the decision.
“COVID-19 is wreaking havoc also on our economy, which in turn will impact a financial services firm like ours. Hence, we too need to recalibrate our costs and operations, well in advance, to ensure sustainability of our businesses. We need to ensure that our colleagues are safe and do our best to protect their jobs,” the email said.
In April, the bank’s leadership team had taken a 15 percent pay cut for the financial year 2020-21 while CEO Uday Kotak has personally opted to forego his salary and will take only Re 1 as compensation.
“COVID-19 and the subsequent lockdown have been with us for some time now. What seemed like a 2-3 months phenomenon in the beginning, has turned out to be a pandemic with serious implications on both lives and livelihood,” the bank told its employees.
“More importantly, it is increasingly clear that the pandemic is not going away anytime soon. Entire mankind is praying and hoping for quick discovery of a vaccine and antidote,” it said.
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