2010 seems to begin on a good note for the employees of ICICI Bank. The country?s largest private sector lender is likely to give bonuses to majority of its 36,000 staff for the period 2009-10 by April.

Bonus payments were held back by the bank in 2008-09 owing to the overall turmoil in the economy.

The bank had witnessed its first decline in full-year profits since its incorporation in 1994.

The bonus payments at ICICI Bank are generally around 10-15% of an employee?s salary, which could be higher in case of very good performers. Stock options are also provided to them. Usually, ICICI Bank announces its annual promotions and bonuses by the end of April every year.

In 2008-09, ICICI Bank?s net profit fell 10% year-on-year to Rs 3,758 crore. The bank, hence, decided to hold back the annual promotions and bonuses to employees and directors in 2008-09.

However, during the second quarter of the current financial year (2009-10), the bank?s net profit stood at Rs 1,040 crore, up 2.56%, compared with the same period previous year. With economic prospects looking up, the bank?s management expects to achieve its financial targets and in turn reward its staff.

ICICI Bank executive director K Ramkumar, who looks after human resources development, told FE, ?We have a board approved bonus policy, where we have to meet targets to get bonus. Last year, bonuses were not given because we didn?t meet our targets. However, this year, there is no reason to worry. We believe we are doing well.?

Peers HDFC Bank and Axis Bank do announce their bonuses, which are completely performance-linked, during March-April every year. Last year, both the banks failed to give out bonuses to their employees owing to poor market conditions.

ICICI Bank had indicated in recent media interactions that from the October-December period, it will again grow its business.

The bank had undertaken cost reduction measures in the last few quarters following the global financial crisis, and is continuing the process of reducing retail unsecured loans to 6-7% of its total advances by end-fiscal in a bid to enhance its asset quality.

The bank, now, expects the performance in the third quarter to be better than the previous one in terms of margins and credit growth.

Meanwhile, the bank, which has not grown its staff strength in 2009-10 and had only recruited for attrition, says will recruit about 5,000 candidates in next year from the top B-Schools. If the economic activity picks up it may hire even more, Ramkumar said.

The bank, which has over 1,500 branches, plans to open 580 branches by March 2010, but has not made any fresh hiring.

?In 2009-10, we have recruited about 4,000-4,500 people. And these are all replacements, no fresh recruits,? said Ramkumar.

ICICI Bank MD & CEO Chanda Kochhar in a recent interview told FE, ?We are hiring at junior levels currently. We would approach Indian Institute of Management (IIMs) over a period of time. We increased salaries last year and will do so this year too.?

Currently, the bank has strength of about 36,000 employees, while the group as a whole has staff strength of 80,000 employees.