India's largest bank, State bank of India has been doing provisioning assuming the 14% hike in wage revision each quarter. A recent statement by SBI's MD Sri Dinesh Khara to mint:
This fall in profit was on account of one-offs like increased provisioning for wage revision, which is expected to be 14% compared to its earlier projection of 10%, lower mark-to-market writeback and higher provision on pension liability.
IBA had initially offered the hike in the wage under 12th BPS to 15%. It is presumed that the hike would be in the range of 15 to 16%.
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