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SBI allocated Rs 11,000 crore more this year to pay salary to employees, Bankers salary increased by 17%


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The State Bank of India (SBI) is expected to allocate an additional Rs 11,000 crore in H2FY24 to fulfill the requisites of the 17% wage hike as per the agreement signed between bank unions and the Indian Banks’ Association (IBA) on December 17, disclosed two senior bank officials to FE.

According to one official, the estimated total provision needed for a 17% wage increase for employees and pensioners is Rs 20,000 crore. By Q2FY24, SBI had already made Rs 9,000 crore in provisions and plans to allocate an additional Rs 11,000 crore in H2FY24 to meet the wage hike commitments.

Analysts at Nuvama Institutional Equities noted that public sector banks have allocated 14%-15% towards the wage settlement and will need to bridge the remaining gap. Except for Bank of Baroda and Punjab National Bank, most banks have not made provisions for pensions, which will also need to be provided.

SBI, with a substantial employee base of 235,858 staff as of March 2023, will consider the rise in employee and pensioners’ wages, including higher dearness allowance, in the incremental provisions. The wage revision is effective from November 1, 2022, for a five-year period, with an annual increase of 17% in salary and allowances based on the annual pay slip expenses for FY22.

Bank of Baroda, having provisioned Rs 1,320 crore for an 18% wage hike until Q2FY24, won’t require additional provisions in Q3FY24. Union Bank of India, which has made Rs 1,210 crore in wage-related provisions till September considering a 15% wage hike, plans to add over Rs 200 crore in provisions in Q3FY24.

One Comment

  1. What about bank Pensioners? Why they are learnt to be offered some peanuts instead of appropriately updating their Pension as a matter of natural justice to them?

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