Owing to the excessive expenses accounted during financial year 2009-10, the largest lender of the country, State Bank of India has planned to provide incentives to the employees so as to cut its operating expenses. The bank would also have to prioritize the issue of fresh slippages in non performing assets (NPAs).

NPAs are a reflection of the performance of banks. Rising NPAs are an indicative of an ailing banking sector.( 27th january 2010)

An annual conference of chief general managers (CGMs) has been scheduled by the bank in order to discuss these issues.

"This time, our theme for the conference will revolve round formulation of a detailed incentive scheme to help the bank reduce its operating expenses and NPAs,''a top bank official said.

The bank would not be curtailing its expansion plans by any means this fiscal.

"The plan is to tell the employees either to boost productivity with the current level of expenses or maintain current level of productivity with lower expenses... We will be adequately incentivising our staff for this," he said.

He also added that the bank is looking into its operational processes in detail and is also seeking expert professional advice and decisions in this regard.

The bank sees sufficient liquidity despite lending for 3G auctions and tax flow outflows.