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Last Updated : May 07, 2018 08:52 PM IST | Source:

Bank employees to protest after Banks’ Association proposes just 2% pay hike due to NPAs

Bank employees have threatened to go on a two-day strike from May 9

Moneycontrol News @moneycontrolcom

Following wage revision talks between Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU), bank employees have decided to protest by holding a demonstration and going on a two-day strike, according to a report by The Economic Times.

The banks’ association had proposed an average pay increase of two percent to employees due to mounting non-performing assets and eroding profitability. The proposed increase covers basic salary and house rent allowance, among other components.

S Nagrajan, head of the All-India Bank Officers’ Association, told the newspaper, “IBA has offered two percent in the payslip component,” adding that, “There will be a demonstration on May 9 throughout the country, demanding a higher pay increase.”

Salaries of public sector bank (PSB) employees are revised every five years and they are pending since November 1, 2017. The previous such increase was agreed at an average of 15 percent in May 2015 and was made retrospectively effective from November 2012.

“We are not being given a wage rise because of higher NPAs,” Nagrajan said adding that “Banks are not coming up with reasonable offers. It is absolutely not acceptable.”

Following the merger of six lenders with the State Bank of India (SBI), there are 21 PSBs in India which employ around eight lakh people in total.
First Published on May 7, 2018 11:46 am
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