Salary hike to bring intangible benefits for banks: ABB chair

The Association of Bankers, Bangladesh (ABB) thinks that the latest pay fixed by the central bank for entry-level officials will also bring intangible benefits for banks.

"We welcome the latest salary structure as this will motivate our staff members, create a feeling of ownership, and energise them to work harder," said ABB Chairman Selim RF Hussain during an interview with The Daily Star yesterday.

"It will also bring intangible benefits for banks."

"Why will we raise any question if our colleagues get better pay? This will help them lead a better life."

The ABB, an association of managing directors of banks, can't comment on the salary hike as the members of the organisation are also the employees of banks, according to Hussain.

"The board of directors of banks usually set the salary for all employees from managing director to entry-level officials."

His comments came at a time when a debate is going on in the banking sector whether the central bank can fix the salary structure for the entry-level officials of private banks.

On January 20, the Bangladesh Bank instructed the banks to provide a gross salary of Tk 39,000 to an entry-level banker after completion of the probationary period. Banks have been asked to implement it from March this year.

The new pay structure prompted the Bangladesh Association of Banks, a platform of the sponsors and directors of private banks, to sit with the central bank on January 26. It requested the BB to extend the deadline for implementing the new structure.

Against the backdrop, the BB on February 1 said that banks would be allowed to materialise the salary structure from April 1. It also revised the entry-level salaries to some extent.

Now, the gross salary of trainee cash officers will be Tk 36,000 and the officials of the general side will get Tk 39,000.

The salary for office staff has also been revised.

In addition, the BB has relaxed the deadline to implement the new structure for the fourth-generation banks, which were established in and after 2013, along with Bangladesh Commerce Bank and ICB Islamic Bank.

The second notice issued by the central bank is softer than the first one as it is less costly, said Hussain, who was elected as the chairman of the ABB in December.

"The operational cost of banks will increase from April. But we are yet to calculate how much our expenditures will widen," he said.

Skilled human resources will feel more comfort in entering the banking sector to build careers thanks to the latest pay hike.

"This will help banks achieve their goals," he said.

The banking sector is still facing various problems that may last until next year due to the business slowdown brought on by the coronavirus pandemic, said Hussain, also the managing director of Brac Bank.

"Private banks will overcome the problems riding on the latest salary hike as the energetic workforce will play a striking role."

There is little scope to run the banking operation smoothly at this moment compared to the pre-pandemic period, he said.

According to the veteran banker, along with innovation, a technology-driven operation is highly important to make the banking sector vibrant.

The ABB will organise a workshop in April to train the employees working in the human resources departments at banks.

"The workshop will help them judge business targets set by respective banks for their employees," Hussain said.