Public sector lender Vijaya Bank has decided on a new method for employee motivation. The bank has decided to remunerate its employees who contribute towards its loan recovery process.
The remuneration would be in form of incentive which would be a percentage of the bad loan recovered by the employee.
The loan recovery target for this fiscal has been doubled by the bank to Rs 1000 crore.
Why pay asset reconstruction companies to dispose of bad debts when our employees are better in recovering the bad debts," Mr H.S. Upendra Kamath, Chairman and Managing Director, Vijaya Bank said.
Mr Kamath however clarified that this process should not come in way of the regular work done by the employees. This work would be an addition to their regular work.