Tuesday, 7 March 2017

Finance Ministry Gives in-principle Approval to ESOPs by PSU banks

Finance Ministry Gives in-principle Approval to ESOPs by PSU banks

The Union Finance Ministry has given its in-principle nod(मंजूरी)  to allow Public Sector Banks (PSUs) to offer stock options to their employees from 2017-18..However, the Employee Stock Option Plans (ESOPs)
can only be given by those banks which have earned substantial (पर्याप्त) profit as well as made remarkable improvement in managing NPAs. The proposal of ESOP by the Banks Board Bureau (BBB) will help to motivate employees to work towards strengthening the financial status of their banks and hence increase its share value.  Though the Finance Ministry has given in-principle nod, the finer details are being worked.
In private sector, ESOPs are very common which the bank provides to retain their key and top-performing employees. The employees are benefitted from any appreciation in stock price along with the protection of their interest like those of shareholders.

Definitions of nod मंजूरी

an act of nodding the head.
at a nod from his father, he left the room
synonyms: signal, indication, sign, cue, gesture; inclination, bob, bow, dip
lower and raise one's head slightly and briefly, especially in greeting, assent, or understanding, or to give someone a signal.
he nodded to Monica to unlock the door
synonyms: incline, bob, bow, dip
have one's head fall forward when drowsy or asleep.
Anna nodded over her book

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