HDFC Bank to Award Rs 1,500 Crore Ex-Gratia to Staff (Image Source: iStockphoto)
On Saturday, HDFC Bank announced its financial performance for the January-March quarter of the fiscal year 2023-24, showcasing robust numbers amidst challenging circumstances. The bank reported a commendable net profit of Rs 16,511.85 crore, marking a significant achievement in its operational trajectory. Notably, the net interest income (NII) soared to Rs 29,007 crore, surpassing the previous quarter’s figures.
Moreover, the Board of Directors has also proposed a substantial dividend of Rs. 19.50 per equity share of Re. 1/- each fully paid up, translating to 1950 per cent from the net profits for the fiscal year ending March 31, 2024.
HDFC Bank CEO Sashidhar Jagdishan expressed gratitude towards the bank’s diligent workforce, announcing a one-time ex-gratia payment of Rs 1,500 crore to acknowledge their unwavering dedication. Jagdishan emphasised the pivotal role played by the employees during the merger process, navigating through a complex and adverse liquidity landscape.
“There was a lot of hard work that happened in the run-up to the merger and subsequent to that on a much larger balance sheet and led by a complex and adverse liquidity situation in the system. I think the team has rallied to adjust to the new norms; they worked hard after being battered from all fronts at the ground level,” Jagdishan said during an analyst call.
Addressing analysts, Jagdishan reiterated the significance of motivating the workforce, especially in the face of heightened attrition over the past few years. With the majority of the bank’s manpower constituting ground-level staff, the ex-gratia payment serves as a token of appreciation for their resilience and commitment.
He added, “We’ve a one-off gain and a nice way to motivate the young workforce,”
At the time of filing, the shares of HDFC Bank were trading at Rs 1,514.55, 1.09 per cent down from the previous day’s closing. The 52 week high and low of the share is Rs 1,757.50 and Rs 1,363.55 respectively.
