Wage row: Bank unions seek govt intervention, set May 12 deadline

According to the AIBEA, in 2016-17, while the gross operating profit of banks was about Rs 1,590 billion, the provision for NPAs was around Rs 1,703 billion

Bank unions have sought the finance ministry’s intervention and set May 12 as the deadline to respond to their suggestions on wages and employee welfare after they rejected the Indian Banks’ Association’s (IBA’s) proposal for a 2 per cent wage hike.

The 11th bipartite agreement on wage revision could mean a big expenditure for banks, which are struggling with high non-performing assets (NPAs).

The 2 per cent wage hike will cost banks approximately Rs 5 billion, while the proposal given by the unions will cost them around Rs 120 billion, according to D T Franco, general secretary, All India Bank