Kotak Mahindra Bank in an internal e-mail communication has informed its employees that it will be cutting CTC (cost-to-company) of all employees earning over Rs 25 lakh per annum, a Moneycontrol report said.
"We have decided on a 10 percent reduction in CTC for all colleagues with a salary of more than Rs 25 Lakh per annum, with effect from May 2020 for FY21. Employees earning less than Rs 25 lakh p.a. will not be impacted," the report quoted the email saying.
The decision has been reportedly taken in light of the impact of COVID-19 on Kotak Mahindra Bank's business.
Previously in a statement, the private bank had said that its leadership team had taken a 15 percent pay cut for the financial year 2020-21 and CEO Uday Kotak had opted to take only Re 1 as compensation.
"COVID-19 and the subsequent lockdown have been with us for some time now. What seemed like a 2-3 months phenomenon in the beginning, has turned out to be a pandemic with serious implications on both lives and livelihood," the bank told its employees over the email, as per Moneycontrol's report.