The State Bank of India is set to purchase 60 residences in southern Mumbai to accommodate its staff members. This leading government-owned bank is inviting architects to submit their proposals for this endeavour. The chosen architects, who will also play a pivotal role as project advisors, will be determined through a design contest. Their oversight will extend to existing projects or those under construction, with a preference for an entire block dedicated to the bank.
The selected architectural firm will receive a fee of 0.5% of the entire project’s budget, which is anticipated to be around a whopping Rs 500 crore. The State Bank of India is specifically looking to acquire properties in prime areas of southern Mumbai, such as Parel, Lower Parel, Worli, and Mahalaxmi. This initiative will boost the bank’s present portfolio, consisting of 500 properties, varying from single-bedroom to three-bedroom units, scattered throughout Mumbai.
One of the ways government banks like the SBI bridge the substantial pay gap between their employees and those in private banks is through generous benefits, including housing. The issue of lesser remuneration in public sector banks has often sparked discussions.
Rajnish Kumar, the bank’s past chairman, recently shared in an interview that his yearly compensation was Rs 28 lakh, which seems modest considering the bank manages assets worth Rs 50 lakh crore.
In stark contrast, executives in the private banking sector receive substantial pay packages. For instance, Amitabh Chaudhary, the Managing Director and CEO of Axis Bank had a yearly salary of Rs 7.62 crore as recorded in their FY22 annual statement. HDFC Bank’s CEO, Sashidhar Jagdishan, earned Rs 6.51 crore, while ICICI Bank’s CEO, Sandeep Bakshi, received Rs 7.08 crore in 2022. A recent yearly statement revealed that the incumbent SBI chairman, Dinesh Kumar Khara, has a salary of Rs 37 lakh, marking a 7.5% increase from the previous year.
Speaking on a podcast hosted by Raj Shamani, Rajnish Kumar highlighted the modest remuneration of the SBI chairman as “inadequate”. Nevertheless, he shed light on the perks accompanying the position, which comprise a car valued between Rs 30-40 lakh and a plush residence in Malabar Hill, boasting a potential monthly rent between Rs 2 and 2.5 crore.
