IBA likely to ask banks to provide for expected wage hike
Public sector banks are likely to start
building up provisions for next wage revision starting December 2012. The
Indian Banks Association has sent this proposal to the Reserve Bank of India
(RBI) seeking the regulator's approval.
The RBI had asked banks to make advance provisions because bank P&Ls show
too much volatility at times of wage revisions. CNBC-TV18's Gopika Gopakumar
reports.
Wage revisions in the past have led to a significant impact on public sector
banks profitability. It is to avoid this that RBI in its Financial Stability
Report said that banks should phase out the provisions due to the
liabilities arising out of wage revision.
This will ensure that the burden is not concentrated in the year when the
settlement is signed. Click here to read more....
Source - Paycommission updates
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Sir, I am not working in a bank but i have seen the position of bank employes due to less staff they are doing work on various seats at a time. This is not fair becuase this job relates to money matters and risk because if they did any mistake they have to bear it on their own. New generation is not joining banks because more responsibility with less wages. They do not want to shoulder high responsibility in meger amount. And also public dealing ........i think so bad because l have seen many times general public like me is not waiting for such a long time and sometime bank employes are facing / listening their bad comments. I think govt. should think about their good pay hikes so that new generation will come an join.
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