Wage Settlement - AIBOC press release

(taken from 'all banking solution')

REF: AIBOC/2014/01 DATE: 05/02/2014

PRESS RELEASE – SALARY REVISION

The revision of salary of around 10 lac bank officers and employees is due from 1st November 2012 for which a comprehensive Charter of Demands was submitted by the Officers’ Organisations to Indian Banks’ Association (IBA) on 30th October 2012. In the last 15 months, 8 rounds of discussions have taken place between IBA and Officers’ Organisations and date of effect from 01.11.2012 and DA Merger points at 440 points were the only two issues settled.

Apart from this, IBA has made an initial offer of 5% salary increase on “pay slip component” which was enhanced to 9.5% after the Unions gave a strike notice and Central Labour Commissioner intervened to avert the strike. In the next round of discussion held on 27th of January 2014, IBA improved the offer by 0.50% i.e. from 9.5% to 10% which was considered as insultingly inadequate and less than what was offered in the last Bipartite Settlement and hence rejected by the Employees’ and Officers’ Organisations.

Bank Strike Stands

The Bank Employees will observe strike on 10th and 11th February 2014 as the concilation meeting held by CLC (Chief Labour Commissioner) and IBA (Indian Bank's Association) , UFBU (United Forum of Bank Unions) held today failed as the IBA did not increase the offer.

Bulk deposit rates shoot up as banks scramble for cash

The liquidity situation may be comfortable, but banks have started building up their balance sheets ahead of the financial year-end to meet yearly targets. This has resulted in a spike in bulk deposit rates as banks are offering as much as 9.4-9.6% as compared to the card rate of 9% for one-year deposits. Bulk deposits are typically Rs 10 Cr and above. Canara Bank, for example, has sealed a Rs 500-Cr bulk deposit deal of one-year maturity with an Andhra Pradesh-based PSU for 9.61%. Similarly, Bank of Baroda offered 9.41% for a Rs 200-Cr deal. The card rate for deposits of similar maturity is 9%. Spectrum outflow and advance tax have left banks worried about liquidity ahead of the financial year-end. Banks are offering 9.4-9.6% as compared to the card rate of 9% for one-year deposits.