By Syed Fasiuddin & Shreya Sinha
Private Lender ICICI Bank in a communication to its employees said it had reduced the employee notice period from 90 days to 30 days. The reduced notice period, as per the communication accessed by ETBFSI, will be applicable from June 17 and will apply to employees in Managerial positions of its internal MMII grade and below.
ICICI in its communication said the decision was taken after receiving requests from employees. “We have received multiple requests from employees who have chosen to resign from services and faced difficulty in serving the 90 day notice period due to various constraints created by the current situation,” said the lender, further adding, “taking cognisance of these request, effective 17 June 2020, employees in grades MMII & Below who decide to resign will be required to serve a maximum of 30 days’ notice period.”
The revised notice period will also apply to employees in probation, ICICI bankNSE -0.79 % said. “If employees want to be relieved earlier than 30 days, they may request for the same and with the supervisor consent agree on a suitable date,” the bank added.
An ICICI Bank executive told ETBFSI that the policy was not brought about due to the COVID-19 pandemic or the resultant lockdown. The source on the condition of anonymity said this was rather due to the requests of employees serving their notice period. Upon being questioned if ICICI Bank planned to lay-off employees, the source said, “This is not ICICI Bank’s culture. We won’t be laying off anyone,” whilst also ruling out a voluntary retirement scheme for employees.
ICICI Bank on May 11 announced a 26% increase in its Q4FY20 earnings on a YoY basis, declaring a profit of Rs 1221.36 which in Q4FY19 was Rs 969.06. For the COVID-19 pandemic, ICICI bank had created a provision of Rs 2725 crore and had also said that 30% of its loan book was under moratorium. The lender said that 75.7% of its loan book was covered with a provision against existing NPAs; and that Rs 1309 crore worth of loans were overdue by more than 90 days as of March 31.
Amidst the COVID-19 pandemic, ICICI Bank has also secured approval from its board for a fund-raise of Rs 25000 crore. The private lender said the amount of Rs 25000 crore would be raised by way of private placement & issuances of bonds/notes/ offshore Certificate of Deposits in overseas markets and upto $3.00 billion in single/multiple tranches.