Regulatory Alerts2025-12-09
Added
BRPD Circular No. 12: Incentive bonuses for the employees of bank-companies
The circular prohibits scheduled banks from paying incentive bonuses based on capitalized profits or when regulatory capital buffers are insufficient, restricting payouts to years with net profit derived solely from actual income and expenses. It requires banks to consider improvements in banking indicators and the recovery of classified/write-off loans when determining bonus eligibility. The directive is issued under Section 45 of the Bank Companies Act, 1991, while state-owned and specialized banks must follow the separate 2025 incentive bonus guidelines.
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