New relaxation in bonus policy to boost motivation in banking sector

PNN News Desk, Dhaka

The Bangladesh Bank has introduced some flexibility in bonus distribution rules to increase motivation among banking officials and employees. Under the new directive, even if all conditions are not met in a given year, banks may provide up to one month’s basic salary as bonus if there are special achievements.

On Tuesday (April 28), the Banking Regulations and Policy Department (BRPD) issued the directive.

It states that if a bank achieves significant success in a particular year, its board of directors may approve such bonuses.

However, certain conditions must be met. The bank must have operating profit in that year, and its capital must not decrease compared to the previous year. Additionally, banks cannot apply for deferment of provisions.

The central bank believes this decision will increase employees’ motivation while maintaining financial discipline. Other existing conditions remain unchanged.

The directive has been issued under the authority of the Banking Companies Act, 1991 (amended 2023) and has been sent to all scheduled banks’ managing directors and CEOs, effective immediately.