Huge gap between low, high-level officials

The Bangladesh Bank (BB), in fixing minimum salary for entry-level officials and staffs of the private-sector banks, noted that there is an abnormal difference between the salaries of low-level and high-level officials.
In a report, submitted to the High Court (HC), the central bank also said there are 15 designations or grades on an average in the private banks. The average difference between the salaries of the highest- and the lowest-level employees of the banks is more than 48 times.
The BB submitted the report to the HC recently - in response to a rule issued over fixing the minimum salary for the entry-level officials and staffs of the private banks.
Following a writ petition, the HC bench of Justice Mamnoon Rahman and Justice Khandaker Diliruzzaman on February 7 issued a rule upon the government bodies concerned to explain in one week as to why the BB circular - issued on January 20, fixing the minimum salary - should not be declared without having any lawful authority.
The BB circular fixed the minimum salary (with allowance) of assistant officers, trainee assistant officers, trainee assistant cash officers and other equivalent officers at Tk 28,000, and the minimum total salary of those officers upon completion of probation period at Tk 39,000.
In the report, the central bank also said on an average, additional managing directors (AMDs) of those banks are getting around Tk 600,000 per month as gross salary.
However, an entry-level official (trainee assistant officer or equivalent) is getting on an average only around Tk 20,000 to Tk 25,000 as gross salary, and in individual cases sometimes below the amount.
According to the report, a committee of the BB found that comparatively lower-level employees of the banks are deprived of, prejudiced, and harmed. Their salary amount is 'illogical' compared to their provided services. The banks also set targets of deposit collection for those lower-level officials at the beginning of the year.
"Fulfilling the targets of deposit collection cannot be the only criterion of promotion and salary hike, as they are recruited after fulfillment of educational qualification criteria (post-graduate degree) and recruitment tests by the banks."
"Some of the private banks are fixing salaries of the entry-level assistant cash officers or equivalent positions as per their wish instead of on the basis of merit."
The report also said from April 2020 to September 2021, a total of 7,167 officials of the private banks lost their jobs. Of them, 5,875 voluntarily resigned, and 1,292 were sacked by the bank managements.
Such a situation required the BB to step in, bring discipline and accountability in the banking sector, and make the sector employee-friendly. Therefore, under the power, conferred by Section 45 of the Bank Company Act 1991, the BB issued the circular - fixing the minimum salary for the first time.
BB deputy director Md Riad Arefin sent the report, and lawyer A B M Siddiqur Rahman Khan placed it before the court.
Meanwhile, the court started the rule hearing on Wednesday, and would continue it today (Thursday).
Lawyers Fida M Kamal and A B M Siddiqur Rahman Khan appeared in the hearing on behalf of the BB; lawyers A M Masum, Md Farhad Bin Hossain and Saifur Rahman Rahi appeared for the writ petitioner; while deputy attorney general Bepul Bagmar represented the state.
Lawyer Md Farhad Bin Hossain, also a shareholder of One Bank Ltd, filed the writ petition challenging the BB circular.
For the first time in history, the BB fixed the minimum salary of entry-level officials of private banks in order to encourage talented young people to take banking as career and play role for economic advancement of the nation.
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