Recent meeting between IBA and Banker's Unions, concluded without any headways. Aftermath of the meeting confirms that "IBA is not at all taking decision of their own and working on Government Behest".
There are various factors to prove this:
1. IBA knows it very well that the NPA menace is not for the long term rather a short term problem, this is to remmber that most of the banks are under profit if Gross Profit is considered. IBA is not considering the reversal of provisioning while proposing the Performance Based salary structures.
2. Though IBA is proposing the 8% hike but reluctance to provide whether it's hike on Payslip or total cost.
3. Government is dictating the terms to IBA and on their behest they are proposing the offers.
4. Government wants to reduce their stakes in almost all the Public sector Banks up to minimum level of 51%. This is for sure as Government doesn't getting dividends rather forced to infuse the capital in these banks.
5. Government doesn't want to take the obligation of merging down the Public Sector Banks rather they want these banks to propose the merger among themselves.
6. Your attention is also invited to the fact that IBA is harping on the paying capacity of the Banks as a precondition to salary negotiations. This is nothing but singing a tune composed by the ‘private sector’.
7. Government wants to average out the higher NPA level to single digit after approving the mergers proposal of higher NPA banks with such banks having lower NPA levels.
These are the hindrance in implementing the 11th Bipartite Wage revision for Bankers.
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Bank Union Talk