Kotak Mahindra Bank CEO Uday Kotak has decided to forego his salary and take Re 1 token amount for FY21 in view of the livelihoods lost in the ongoing nationwide lockdown to contain the coronavirus pandemic.

The banking group’s leadership team has also opted to take a 15 percent cut in compensation for FY21, the bank said in a press release on Thursday.

“Kotak Mahindra Bank today announced that the group’s leadership team has unanimously and voluntarily opted to take a 15 percent cut in compensation for the financial year 2020-21,” the release said. “Uday Kotak has personally opted to forgo his salary, and will receive Re 1.”

The release also highlighted the contribution made by the bank in the ongoing efforts to combat the virus in the country. Kotak Mahindra Bank has contributed Rs 25 crore to the PM CARES fund, while Kotak’s personal contribution also stands at Rs 25 crore.

“To support the efforts of the government in their preventive, curative, rescue, relief and rehabilitation operations, on 30th March 2020, Kotak Mahindra Bank contributed Rs 25 crore to the PM CARES Fund and Rs 10 crore to the relief efforts in Maharashtra. Uday Kotak has also made a personal contribution of Rs 25 crore to the PM CARES fund.”

The bank management's decision is another in a long line announcements from corporate leaders to take pay cuts in this time of crisis. Oyo Rooms management recently announced a pay cut, while a number of airlines, including the biggest player in the Indian market, IndiGo, have done the same for a significant number of their staff.

Moreover, members of parliament recently took a 30 percent pay cut for a year. The Uttar Pradesh and Karnataka state governments have announced pay cuts for their legislators, while other states moot a similar move.

India is currently under a near-complete lockdown until April 14. All services deemed non-essential have been ordered shut, pushing daily wagers on the brink.

Coronavirus has infected nearly 6,000 people in India, while 166 have succumbed to the virus. Globally, the death toll is inching towards the 90,000 mark.

Also read: Pay cuts for leadership teams may become new normal as India Inc tries to battle coronavirus impact on bottomline

First Published:Apr 9, 2020 7:54 PM IST