Why Govt Banks have not yet paid PLI to employees?

This year the public sector banks have reported a good balance sheet and a lot of banks are expected to provide PLI (Performance based incentive) to their employees. But the PLI amount has not been credit yet by the banks. This is so because there is discussion going on between Bank unions and IBA related to PLI. The 12th BPS was signed in March 2024 but the discussion on PLI was not finalized.

In the 11th Bipartite Settlement, a new Scheme – Performance Linked Incentive Scheme was introduced. The PLI was to be paid as per the operating profit of the Banks.

However, it was observed in the last two years, that even though the Banks had performed better in other parameters, the PLI was paid as per the Settlement based on increase in Operating Profits alone. Because of this, the Banks which had otherwise performed far better could not pay the higher quantum of Incentive.

So, the union has requested IBA to look into the issue and modify Parameters of PLI. During the recent 12th BP negotiations, this demand could not be discussed completely. In the Minutes on Residual Issues signed with IBA on 8-3-2024, this issue was included and mentioned and agreed to discuss the same further.

In the discussions with the lBA in the meeting held on 18-4-2024, Unions had taken up this issue and IBA informed us that the issue needs further discussion.

In the meantime, the Balance Sheets of all the Public Sector Banks for the financial year 2023-24 have been finalised and published. It is observed that all the Banks have performance exceedingly well compared to last year in various parameters but if we take only the percentage increase in Operating profit, the maximum quantum of PLI cannot be extended by the Banks.