The Indian Banks Association (IBA) signed a wage agreement with employee unions and officers' associations whereby around ten lakh employees of 43 banks, including public sector banks, will get a 15 percent hike in salaries.
The revision, applicable retrospectively, with effect from November 1, 2012, will benefit employees and officers in 43 banks, including public sector banks, old private sector banks and a few foreign banks.
According to reports, IBA Chairman T.M. Bhasin has said the 15 percent wage revision would cost banks 4,725 crore rupees as incremental salary and allowances in a year. He said, if superannuation cost is included, then the total burden would be around 8,370 crore rupees.