Despite receiving a cut in the fourth quarter profits, Societe Generale has decided to spend 250m Euros on the bonus to its traders.

The profit for the bank comes out to be 678m Euros, in the fourth quarter of 2009.

Defending the amount of the bonus, CEO, OUdea said, "When we give one euro to one of our traders in 2010 there will be a parallel payment of about 2.8 that will go to finance our schools, our health systems and our social payments".

He also clarified that 55% of the bonus amount would be spent over 3 years and if the traders fail in meeting targets within expected time, the amount would get cancelled.

Although its shares fell by 11% during the quarter, the bank has reported a remarkable rise in its revenue from finance and investment sector.

Societe Generale is now recovering well from the trading scandal in 2008 when it suffered huge outflow of money.

Witnessing a 4.8b Euros increase its capital, in October 2008, the bank reached the position to pay back 3.4b Euros of the bailout amount to the Government.

Now that the Government is providing bailouts easily, most of the bankers have adopted back the payment of bonuses.