Bank Union Demands for Hike in Staff Welfare Fund in Top Four Banks

AINBOF has demanded the hike in Staff welfare funds in amalgamated banks from existing 3%. At present, the maximum ceiling for Staff Welfare Funds was fixed at 3% of net profit subject to a cap of maximum ceiling.

Bankers Union has demanded to revise the maximum cap to Rs.100 crores to all amalgamated banks with business mix exceeding Rs.10 lakh crores and proportionate increase for other Nationalized banks too, in line with the benefits extended to State Bank of India. 

The present ceiling in various PSBs are :

Staff Welfare Fund

On account of the amalgamations that took place in the banking sector the staff strength has increased considerably while the business mix has also gone up whereas there has been no upward revision in the maximum ceiling or the percentage cap. This has reduced the benefit available to the employees significantly.

For example, before amalgamation Bank of Baroda, Dena Bank and Vijaya Bank were getting allocated Staff Welfare Fund to the tune of Rs.25 Crores, Rs.15 Crores and Rs.15 Crores respectively, as per the above criteria i.e. Rs.55 Crores altogether. 

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But subsequent to the amalgamation while the staff strength has remained the same, the maximum cap has been fixed at Rs.25 Crores and thus denting the Staff Welfare fund of the amalgamated entity by Rs.30 crores. 

Similar is the case with Canara Bank and
Syndicate Bank as they were enjoying Rs.25 Crores each before amalgamation but the same got reduced to Rs.25 Crores after amalgamation.

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