Govt Urges IBA To Finalise Wage Revision Of Public Sector Bankers
The Ministry of Finance has asked the Indian Bank’s Association (IBA) to finalise the wage revision of public sector bank employees by 1 December 2023.
In a letter to the IBA, the Ministry of Finance assured that the government is committed to working towards the interests of the bank workers, and the IBA along with the unions will be able to reach an early settlement.
The previous wage agreement for PSU Bank expired on 1 November 2022. Officials believe that an early wage hike will enhance the working conditions of employees and provide incentives for employees in the banking sector.
The finance ministry has asked IBA to decide regarding the wage hikes before the start of 2024, to apply the wage revision from the due date.
The wage revision process for PSU bank employees is complex, as it is affected by factors such as the financial health of the banks, the cost of living, and salaries in other sectors. The IBA has committed to reaching a fair agreement that benefits both the banks and employees, while the unions are hopeful for a satisfactory wage increase.
In FY’23, Public Sector Banks’ net earnings nearly tripled to Rs 1.04 lakh crore, compared to Rs 36,270 crore in FY’14. This is due to several factors, including improved asset quality, higher interest income, and lower provisioning costs.
