The government has launched a new performance-linked incentive (PLI) scheme for senior executives of public sector banks (PSBs), applicable from FY 2023-24.
Announced by the Finance Ministry, the scheme ties cash incentives to achieving at least 3 out of 4 key financial metrics: positive Return on Assets (RoA), net NPAs below 1.5% or a 25 bps reduction, cost-to-income ratio below 50% or consistent improvement, and audited stability by March 31. Open to scale IV and above, the scheme excludes employees with major penalties or terminations.