MFI Incentives Structure

March 2023 onwards

For Field Executives
Revised Incentive Plan - Summary
A Customer onboarding & Disbursement B Collection (Regular) C Collection (OD Collection)
Minimum
Parameter Rate / Incentive Minimum Minimum
Threshold Parameter Rate / Incentive Parameter Rate / Incentive
Threshold Threshold
Accounts Min Rs. 15 / Acc
20 Accounts
Disbursed Max Rs. 85 / Acc Collection Every Account
Every Account Min Rs. 15 / Acc 85% 31 to 60 Bucket Rs. 30
MTL Accounts Efficiency Collected
Min Rs. 1 / Accounts Collected
Disbursed Max Rs. 65 / Acc
Max Rs. 7 / Accounts Collected
Accounts Every Account Accounts PNPA before Every Account
Flat Rs. 10 50 Rs. 75
Renewed Renewed Collected Stamping Collected
Budget Vs Acht &
Customer Min. Booster 5% Collection Efficiency of 85% or Collection of min 50 accounts PNPA after Every Account
Throughput of Rs. 40
Onboarding Max. Booster 30% whichever is higher. Stamping Collected
40% and above

D NPA Recovery E Collection in OTS F Fuel Incentive / Cross Sell / Retention Bonus

Minimum Minimum Minimum

Parameter Rate / Incentive Parameter Rate / Incentive Parameter Rate / Incentive
Threshold Threshold Threshold

NPA Every Account NPA OTS Every Account Conducting 50

8% of EMI Collected 8% of EMI Collected QDEs Min. Rs. 1000
(up to 180 DPD) Collected (up to 180 DPD) Collected Fuel Incentive
OR Minimum CE of Max. Rs. 3000
NPA Every Account NPA OTS Every Account 85%
10% of EMI Collected 12% of EMI Collected
(180+ DPD) Collected (180+ DPD) Collected
Cross Sell Every Account
Rs. 400
Standard OTS Every Account Gold Loan Disbursed
5% of EMI Collected
(08 to 30 DPD) Collected
Cross Sell Every Account
Rs. 400
Standard OTS Every Account Two-Wheeler Loan Disbursed
8% of EMI Collected
(31 to 60 DPD) Collected
Tenure of 6 10% of Monthly
Retention Bonus
Standard OTS Every Account months Incentive + Rs 2000
10% of EMI Collected
(61 to 90 DPD) Collected
Total Incentive = A+B+C+D+E+F
Policy
❖ Duration: 1st March 2023 onwards

❖ Eligibility:
▪ Field Executives- Microfinance Team who is joined on or before 10th of Incentive month.
▪ Any FE Joined post 10th of Incentive month will not be eligible for Disbursement Incentive.
▪ FE with relieving date on or before 10th of the month will not be eligible for Incentive.
▪ The details as captured in Staffing Data being finalized in subsequent month to Incentive month would be considered.
❖ Incentive Threshold Criteria:
Disbursement : Collection : Cross Sell / Fuel / Retention Bonus
IGL / MTL / Renewal Regular / Overdue / OTS
Number of Accounts Disbursed Minimum Collection Efficiency – 85% (Reg Coll) Gold Loan

Number of Accounts Renewed OR Minimum 50 accounts whichever is higher. Two-Wheeler Loan

MTL Accounts Disbursed Flat Incentive in Collection in Accounts in OD

Fuel Incentive
Customer Onboarding (QDEs) and OTS Buckets Retention Bonus

❖ Key Highlights :
▪ Standard Incentive slabs for all FEs and RMs irrespective of vintage and category of the branch.
▪ Additional Incentive of ₹ 10/ Account Renewed.
▪ Incentive for each MTL Account sourced.
▪ Collection Incentive on Minimum Collection Efficiency of 85% or Collected 50 Accounts whichever is higher
▪ Fuel Incentive from 50 QDEs onwards OR Minimum CE of 85%
▪ No Capping on Incentive Earning.
▪ Introduction of Retention Bonus
▪ The incentive amount will be calculated monthly but paid after 60 days from the Incentive month.
Retention Bonus (New)
Tenure
Incentive Hold Back Bonus Month Retention Bonus Gate Criteria
(Incentive Months)
1st Nov 22 to 10% of Monthly Actual Incentive FE should earn Incentive in
May’23
30th Apr 23 Incentive Hold Back 33% of Months Completed
1st May 23 to 10% of Monthly Actual Incentive FE should earn Incentive in
Nov’23
31st Oct 23 Incentive Hold Back 33% of Months Completed.

❑ Flat Rs. 2000 over and above retention bonus will be given to FEs completing 6 months in the system.
This will be calculated in May’23.
❑ Flat Rs. 3000 over and above retention bonus will be given to FEs completing 12 months in the system.
This will be calculated in Nov’23.

Conditions :
• FEs in PIP would not be eligible for Retention Bonus.
• FEs serving notice period will not be eligible for Retention Bonus.
• FE Promoted in the roll of RM will be eligible for Retention Bonus only for the months he/ she was in roll as FE.
• Applicable from November Incentive Cycle.
Clients Acquisition Incentive
Clients Acquisition (Loans Disbursed)*

Slab No Of Accounts Disbursed Incentive Slab

0 - 19​ ₹ 0​
Slab 1​ 20 - 24​ ₹ 15
Slab 2​ 25 - 34​ ₹ 30
Slab 3​ 35 - 44​ ₹ 50
Slab 4​ 45 - 54​ ₹ 65
Slab 5​ 55 - 64 ₹ 75
Slab 6 65 -74​ ₹ 80
Slab 7 75 - 80 ₹ 85
₹. 80 per Account for all accounts >80 Accounts
# Accounts opened in MTL Scheme Code will not be considered.

Renewals will be paid Rs. 10 additional/client.​

Acquisition Bonus:
•₹ 2 per client additionally if Average of No of Customers Per Group is 7​
•₹ 4 per client additionally if Average of No of Customers Per Group is 8
Closed / Pre-closed Accounts:​
• In case loan is closed within six months of disbursal, Incentive payout will be
reversed in the month of closure. (Death Cases to be excluded)
Clients Onboarding Incentive (New)

Client Onboarding Client Onboarding

Booster Incentive Booster Incentive

Slab QDE Budget Vs Acht % of Base Disbursement Slab Throughput % of Base Disbursement
Incentive Incentive
0 - 99% No Booster 0 - 39​% No Booster
Slab 1​ 100 – 109%​ 10% Slab 1​ 40 - 49%​ 5%
Slab 2​ 110% and above 15% Slab 2​ 50 - 59%​ 10%
Slab 3​ 60 – 74% 20%
Slab 4​ 75% and above 30%
Throughput : Accounts Disbursed / Total QDEs

Only unique QDEs will be considered

Incentive on MTL

MTL Accounts Disbursed*

Slab No Of Clients Disbursed Incentive Slab

Slab 1 1-7 ₹ 15
Slab 2 8 - 11 ₹ 25
Slab 3 12 - 15 ₹ 35
Slab 4 16 - 19 ₹ 45
Slab 5 20 - 24 ₹ 55
Slab 6 25 & above ₹ 65

• There is No minimum Gate Criteria for FEs to be eligible for

MTL Incentive.
Collections Incentives – Regular Accounts
Collection Efficiency Bucket
Criteria A/c Slabs (Payout - Rs/Ac)

0- 85-90.99% 91- 96-98.99% 99-100%

84.99% 95.99%
50-149 ₹ 0​ ₹ 0​ ₹0 ₹1 ₹2
150-200​ ₹ 0​ ₹1 ₹2 ₹2 ₹3
201-300​ ₹ 0​ ₹1 ₹2 ₹2 ₹3
Regular
Accounts 301-400​ ₹ 0​ ₹ 1​ ₹ 2​ ₹3 ₹4
401-500​ ₹ 0​ ₹ 1​ ₹2 ₹3 ₹5
501-600​ ₹ 0​ ₹ 2​ ₹3 ₹4 ₹6
>600​ ₹ 0​ ₹ 2​ ₹3 ₹5 ₹7

✓ FE is eligible for collection incentive only if he has collected 85% of

mapped accounts or minimum 50 accounts whichever is higher.​
✓ FE with vintage of 2 months and above will be eligible for collection
Incentive post minimum disbursement of 15 Accounts in Incentive Month​
✓ FEs with vintage up to 2 months, FEs at Collection Branches , Collection FEs and FEs in Branches with
Restricted / No Disbursement will be eligible as per Revised grid without​ any Disbursement Trigger
Collections Incentives – OD Collections (Revised)
FEs with vintage up to 2 months, FEs at Collection Branch
Regular Branches es , Collection FEs and FEs in Branches with Restricted /
No Disbursement
Booster Incentive Booster Incentive
Deduction for Deduction for
Bucket Criteria Payout (>=2 EMIs from Bucket Criteria Payout
PTP Cases (>=2 EMIs from
same Customer) PTP Cases
same Customer)
31 to Collection in 31 to 60
Rs. 30 / Ac Rs. 50 / Ac Rs. 10 / Ac Collection in 31
60 Bucket 31 to 60 Rs. 45 / Ac Rs. 50 / Ac Rs. 10 / Ac
to 60 Bucket
Collection before
Rs. 75 / Ac Rs. 50 / Ac Rs. 20 / Ac Collection before
Stamping Rs. 90 / Ac Rs. 50 / Ac Rs. 20 / Ac
PNPA Stamping
Collection after PNPA
Rs. 40 / Ac Rs. 50 / Ac Rs. 20 / Ac Collection after
Stamping Rs. 55 / Ac Rs. 50 / Ac Rs. 20 / Ac
Stamping
Recovery Bucket Up to 8 % of EMI
NA 50%* Recovery Bucket 10 % of EMI
180 collected NA 50%*
NPA Up to 180 collected
10 % of NPA
Recovery Bucket 180+ EMI NA 50%* Recovery Bucket 12 % of EMI
NA 50%*
collected 180+ collected

• Incentive calculation is subject to Minimum 1 EMI or balance outstanding calculation. Any amount less than both the
criteria excluded from Incentive calculation
• Claw back of Rs 20 per account will be applicable for every account moving to PAR30 bucket, which will be recovered from
total OD Collection Incentive
• 50% of the Incentive Earned in NPA Collection would be deducted if the collection is done on or after PTP date generated
by Call Centre.
• FE ID Mapping at the beginning of the month will be considered.
Axis Bank Document Classification | Confidential​
Collections Incentives – OTS Collections
In order to maximize recoveries under the OTS scheme and bring in large value recoveries we are introducing
following Incentive Structure:​
A. NPA OTS Collection:

NPA OTS Bucket Payout %

Up to 180 8%

180+ 12%

B. STANDARD RESTRUCTURED ACCOUNT OTS:

STD RSTR OTS Bucket Payout %
08 to 30 5%
31 to 60 8%
61 to 90 10%

The OTS Collected & process completed by end of subsequent month will be considered for OTS Incentive.
Axis Bank Document Classification | Confidential​
Fuel Incentive
FEs Excl Collection FEs and FEs Mapped to Collection Branches
50 QDEs to 74 QDEs - Rs.1000
75 QDEs to 99 QDEs - Rs. 2000
100 and more QDEs - Rs. 3000
(Only unique QDEs will be considered)

Collection FEs and FEs Mapped to Collection Branches

CE of 85% to 94.99% - Rs. 1000

CE of 95% to 99.99% - Rs. 2000
CE of 100% - Rs. 3000
(Subject to Minimum 150 accounts mapped)

Axis Bank Document Classification | Confidential​

Cross Sell Incentives
The incentive structure is as below;​

Gold Loan

Flat Rs. 400 / Account Disbursed

Key Conditions for FEs to be eligible for Cross Sell Incentives

• All the cases captured in Castile as per defined process will be given credit as per current
practice
• Cases which are not getting captured in Caslite will be given credit considering,
• CRM Lead Generation is done before Gold Loan Disbursement
• The Customer Mobile number entered in CRM is captured in Caslite at the time of
disbursement
• Gold Loan Disbursement is done within TAT of T+2 (Working Days)
• Only New Applications will be considered for Incentive Calculations.

Axis Bank Document Classification | Confidential​

For Relationship Managers (Quess)
Revised Incentive Plan
A B
Customer onboarding & Disbursement Collection (Regular) C Collection (OD Collection)

Minimum Minimum
Parameter Rate / Incentive Parameter Rate / Incentive Incentive
Threshold Threshold

FE Productivity Min Rs. 1000 Collection

35 Accounts 85%
(NoA) Max Rs. 5500 Efficiency 1.5 times of Average OD Collection Incentive
Min Rs. 500
Every Account Min Rs. 15 / Acc earned by existing FEs in the branch.
MTL Accounts Max Rs. 5000
Disbursed Max Rs. 65 / Acc Accounts
300
Collected
Budget Vs Acht &
Customer Min. Booster 5% Collection Efficiency of 85% or Collection of min 300 accounts
Throughput of
Onboarding Max. Booster 30%
40% and above whichever is higher.

D Collection in OTS E Cross Sell / Retention Bonus

Minimum
Parameter Rate / Incentive Parameter Rate / Incentive
Threshold

Cross Sell 50% of FE 20% Incentive​

Between 1000 to 2000 OTS 3% of Amount Collected
Gold Loan Activation Earned by FEs
Cross Sell 50% of FE 20% Incentive​
More than 2000 OTS 5% of Amount Collected
Two-Wheeler Loan Activation Earned by FEs
Tenure of 6 10% of Monthly
Retention Bonus
months Incentive + Rs 2000

Total Incentive = A+B+C+D+E

Policy and Key Highlights
❖ Duration: 1st March 2023 onwards
❖ Applicable to: RMs (Quess) - Microfinance Team​
❖ Eligibility:
▪ To be eligible for this incentive an RM (Quess) should carry a vintage of minimum 1 month with the bank.
▪ The details as captured in Staffing Data being finalized in subsequent month to Incentive month would be considered.

❖ Incentive Payout Criteria:

• FE Productivity​ - Number of Accounts Disbursed
• Collection Efficiency​
• OD Recovery of 31-90 DPD​
• OTS Collection​
• FE Retention Bonus
• Cross Sell (Power Gold Loan / Two-Wheeler Loan)

❖ Key Highlights of the Incentive Plan

• The incentives will be based on disbursements, collection efficiency of branch, OD recovery and Cross Sell
• No Capping on Incentive Earning
• Introduction of Retention Bonus
• The incentive amount will be calculated monthly but paid quarterly.

Axis Bank Document Classification | Confidential​

Retention Bonus (New)
Tenure
Incentive Hold Back Bonus Month Retention Bonus Gate Criteria
(Incentive Months)
1st Nov 22 to 10% of Monthly Actual Incentive RM should earn Incentive in
May’23
30th Apr 23 Incentive Hold Back 33% of Months Completed
1st May 23 to 10% of Monthly Actual Incentive RM should earn Incentive in
Nov’23
31st Oct 23 Incentive Hold Back 33% of Months Completed.
❑ RM Will get ₹ 1000 in month of Zero FE Attrition. (Applicable for Branches with >=3 / 3+ FEs)
❑ Flat ₹ 2000 over and above retention bonus will be given to RMs completing 6 months in the system. This will be calculated in May’23.
❑ Flat ₹ 3000 over and above retention bonus will be given to RMs completing 12 months in the system. This will be calculated in Nov’23.
❑ 30% reduction in Retention Bonus in case FE Attrition is more than 50% in respective period of 6 months.
❑ Flat ₹ 3000 will be given to Non-Sales Quess Staff completing 6 months in the system. This will be calculated in batch of every 6 months starting
from May’23.

Conditions :
• RMs in PIP would not be eligible for Retention Bonus.
• RMs serving notice period will not be eligible for Retention Bonus.
• RM Promoted in the roll of Onroll RM / ASM will be eligible for Retention Bonus only for the months he/ she was in roll as RM.
• Applicable from November Incentive Cycle.
Incentive Slabs for Disbursement
Clients Acquisition (Loans Disbursed)*
Average A/c per FE Pay out
35 – 44​ ₹ 1000​
45 – 54​ ₹ 2500​
55 – 69​ ₹ 3500​
70 – 80​ ₹ 4500​
81 and above​ ₹ 5500​

Productivity : Average Accounts disbursed by all Live FEs in Branch eligible for Disbursement Incentive in respective month.
Business Incentive will be based on welcome call contactability.
✓ More than 90% contactability will give 100% payout.​
✓ Less than 90% contactability will carry a 30% penalty(deductible) on business incentives.​

Acquisition Bonus:
•RM will get Rs. 500 additionally if Average of No of Customers Per Group is 7
•RM will get Rs. 1000 additionally if Average of No of Customers Per Group is 8

RM with a sanction of 2 or more FEs and currently having 1 live FE In the branch will not be eligible for Disbursement Incentive
Axis Bank Document Classification | Confidential​
Clients Onboarding Incentive (New)

Client Onboarding Client Onboarding

Booster Incentive Booster Incentive

Slab QDE Budget Vs Acht % of Disbursement Slab Throughput % of Disbursement
Incentive Incentive
0 - 99% No Booster 0 - 39​% No Booster
Slab 1​ 100 – 109%​ 10% Slab 1​ 40 - 49%​ 5%
Slab 2​ 110% and above 15% Slab 2​ 50 - 59%​ 10%
Slab 3​ 60 – 74% 20%
Slab 4​ 75% and above 30%
Throughput : Accounts Disbursed / Total QDEs

Only unique QDEs will be considered

Incentive on MTL
MTL Accounts Disbursed*

Slab FE Productivity Incentive Slab

Slab 1 1-7 ₹ 15
Slab 2 8 - 11 ₹ 25
Slab 3 12 - 15 ₹ 35
Slab 4 16 - 19 ₹ 45
Slab 5 20 - 24 ₹ 55
Slab 6 25 & above ₹ 65

• There is No minimum Gate Criteria for FEs to be eligible for MTL

Incentive.

Axis Bank Document Classification | Confidential​

Incentive on Collection
Regular Collection
Collection Efficiency (based on Average Customer Per RM of the Branch)
Average Average Average
Criteria Collection B Customer Customer Customer
uckets >= 1500 >= 1000 & <1500 >=300 & <1000
Payout (in Rs.) Payout (in Rs.) Payout (in Rs.)
0-84%​ 0​ 0​ 0​
85-90%​ 1000​ 700​ 500​
Collection efficiency
91-95%​ 2000​ 1500​ 1000​
(Regular accounts)
96-98%​ 3000​ 2000​ 1500​
99-100%​ 5000​ 3000​ 2000​

# RM will be eligible for Collection Efficiency Incentive only if the branch customer base is
300 Accounts and more.
# The minimum collection efficiency for RM to be eligible for Incentive will be 85%

OD Collection

➢ 1.5 times of Average OD Collection Incentive earned by existing FEs in the branch.
For example - Total OD collection incentive earned by FE's - 12000/-, considering 5 FE's average comes out to 2400/-
. 2400*1.5=Rs.3600/- shall be RM's incentive towards collection efficiency.​

Axis Bank Document Classification | Confidential​

Incentive for Collection in OTS
RM Incentive for OTS
Category Between 1000 to 2000 OTS More than 2000 OTS
OTS Collection​ 3%​ 5%​

# In case of there are multiple RMs in the branch, the total OTS Incentive will be divided equally in all RMs​

The OTS Collected & process completed by end of subsequent month will be considered for OTS Incentive.

Axis Bank Document Classification | Confidential​

Cross Sell Incentives – Gold Loan
The incentive structure is as below;

FE Activation Incentive
50.00 % - 59.99 % 20% Incentive​ Earned by FEs in the Branch

60.00 % - 74.99 % 30% Incentive​ Earned by FEs in the Branch

75.00 % and above 50% Incentive​ Earned by FEs in the Branch

# FE Activation - Eligible FE with 1+ Gold Loan Disbursed in a month

Incentive Earned by RMs will be divided in the Ratio applicable for Core Incentive if the multiple RMs are mapped to same Branch.
Key Conditions for FEs to be eligible for Cross Sell Incentives
• All the cases captured in Caslite as per defined process will be given credit as per current practice
• Cases which are not getting captured in Caslite will be given credit considering,
• CRM Lead Generation is done before Gold Loan Disbursement
• The Customer Mobile number entered in CRM is captured in Caslite at the time of disbursement
• Gold Loan Disbursement is done within TAT of T+2 (Working Days)
• Only New Applications will be considered for Incentive Calculation.

Axis Bank Document Classification | Confidential​

Thank you…

Axis Bank Document Classification | Confidential​