New Delhi
ICICI Bank, which has posted a sharp plunge in its fourth quarter net profit, has decided against grant of performance bonus to its senior management team for fiscal year 2015-16.
"We have decided that the senior management would not receive performance bonus for FY2016. Performance bonus would however be paid to employees in the grades of Deputy General Manager and below," ICICI Bank managing director and CEO Chanda Kochhar said in a post-earnings analyst call.
Kochhar herself was paid a performance bonus of over Rs 1.6 crore for fiscal year 2014-15, according to the bank's annual report for the year. Among others, executive director N S Kannan was paid a performance bonus of over Rs 1.1 crore.
In its worst performance in over a decade, ICICI Bank on Friday posted an 87 per cent plunge in consolidated net profit at Rs 406.71 crore for the March quarter on a spike in provisioning for bad loans and creation of a contingency reserve to cushion any future loan defaults. While provisioning for non-performing assets (NPAs) more than doubled to Rs 3,326 crore in view of the Reserve Bank of India's asset quality review (AQR) directive, ICICI Bank has set aside a large amount of Rs 3,600 crore as reserves for any potential shocks in the future.
Kochhar emphasised that this was "over and above" the provisions made for non-performing and restructured loans as per RBI guidelines.
She further said the bank has ended the year 2015-16 with "a very strong capital position, with Tier-1 capital adequacy of 13.09 per cent and total capital adequacy of 16.04 per cent, well above regulatory requirements".
