On Thursday, the Indian Banks’ Association suggested a 15 per cent raise, but reports suggest that the unions are pushing for a more substantial increase along with other alterations. Separately, some of the banks, such as PNB, have started making higher provisions for the wage increase. Instead of budgeting for a 10 per cent increase, in the September quarter, the Delhi-headquartered lender has set aside funds for a 15 per cent rise.
Employees and unions are arguing that banks have seen a good increase in profits in recent years and given the efforts that employees have put in getting the lenders back on track, apart from working during Covid and pushing government‘s schemes, they are entitled to better compensation. The finance ministry is closely observing the ongoing negotiations.
Anticipating the upcoming general elections next year, it is expected that the wage agreement will be reached before then, given that bank employees constitute a significant voting bloc. In 2020, the previous wage settlement was reached after a three-year negotiation process.
(With TOI inputs)
