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ICICI Bank staff salary may go up after merger

Freny Patel & Rumi Dutta

ICICI Bank officials are likely to see a rise in their gross remuneration package on the back of the reverse merger of ICICI with ICICI Bank. Currently, ICICI employees get 20 to 30 per cent more than their counterparts in ICICI Bank.

"We have already integrated the HR activities of ICICI with ICICI Bank. Currently we are in the process of evaluating the salary structure in view of the vast difference between the pay scales of ICICI and the bank," said senior ICICI officials.

"Bank salaries will go up as those in ICICI cannot be brought down," said ICICI officials. The seniormost position at ICICI after the directors, is that of senior general managers. The three SGMs are taking home an annual gross package of Rs 3.5-4.0 million.

Against this, the seniormost at ICICI Bank - the senior executive vice president - is earning Rs 2.2-2.4 million annually.

General managers at ICICI take home Rs 2.5-3.0 million annually, which is higher than the bank's senior executive VPs.

In fact, ICICI Bank's senior executive VP take home a package that is at par with that of ICICI's joint general managers who earn on an average Rs 2-2.3 million annually. ICICI has six different cadres against four in the bank.

There are a number of factors ICICI employees gets 20 to 30 per cent more than the those at ICICI Bank. Profits of ICICI are 10 times that of ICICI Bank, and its balance sheet size is six times that of the bank's.

At the same time, with a larger profitability, ICICI has just half the number of employees on its payroll as compared to ICICI Bank.

After the merger of ICICI Bank with Bank of Madura, this ratio has further dropped to one-fourth in favour of ICICI, said officials.

Meanwhile, ICICI Bank shareholders have approved the scheme of amalgamation. An overwhelming majority of the bank's equity shareholders, at the Gujarat High Court convened meeting at Vadodara, on January 25 gave their go-ahead for the merger.

"The merger proposal was approved with 99 per cent of the votes being cast in favour of the resolution by shareholders present and voting at the meeting," ICICI Bank said in a statement.

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