Bank staff eye 15 pct pay hike in meet with IBA

Mar 03 2014, 05:02 IST
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SummaryNine unions, representing around 9 lakh public sector bank (PSB) employees...

Rs 54,964 crore in 2010-11 to Rs 56,000 crore in 2011-12 and to Rs 64,000 crore in 2012-13, employee unions said this was mainly due to recruitment of around 1 lakh employees and higher outgo of superannuation benefits as a large number of them had retired from service.

They pointed out that profits of banks rose from Rs 1 lakh crore in 2010-11 to Rs 1.16 lakh crore in 2011-12 and to Rs 1.22 lakh crore in 2012-13, while the provision for bad loans went up from Rs 29,830 crore to Rs 38,177 crore and to Rs 43, 102 crore during this period. The actual write-offs also went up from Rs 17,794 crore in 2010-11 to Rs 27,013 crore in 2012-13.

We understand the ability to pay higher wages is limited due to bad loans, but then how could they afford to write off so much? The management must consider the wage hike as an investment in their employees. Otherwise, with more private banks to be set up after the new bank licences are rolled out, they would easily poach from PSBs with higher pay packages. This will result in PSBs losing out after having spent considerable time, energy and money in fresh recruitment and training, Venkatachalam said.

In the last round of wage revision settlement signed in 2010 for 2007-12, the management had agreed to a 17.5% increase in the total salary. This time, the employees are asking for an increase in the cash component of their salary.

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