Bank Wage Revision: Govt Asks PSBs to Finish Talks in 12 Months

The government has asked public sector banks to begin the next bank wage revision process early and complete negotiations within 12 months. This is linked to the 13th bipartite settlement, which is due from November 1, 2027, for employees and officers of public sector banks. 

What is the Bank Wage Revision Process?

Bank employees’ wages are generally revised once every 5 years through a bipartite settlement. In this process, the Indian Banks’ Association (IBA) holds discussions with employee unions and associations to arrive at a mutually agreed wage settlement. 

Why Has the Government Moved Early?

The government wants future wage settlements to be finalised before the next revision period begins so that implementation does not get delayed. According to the report, it also noted that in earlier cases, related amendments to permanent regulations were made much later after the settlement, which slowed the overall process.

If talks remain on schedule, the next wage revision for bank employees could be implemented more smoothly from the effective date in November 2027. At this stage, however, the government has not announced any salary hike figure.

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Stronger PSB Profits in FY 2025

The move comes at a time when public sector banks have reported stronger financial performance. Combined PSB profits rose from ₹1.05 lakh crore in FY23 to ₹1.41 lakh crore in FY24 and further to ₹1.78 lakh crore in FY25.

PSBs have also shown improvement in balance sheet quality, supported by lower bad loans, stronger provisioning, and healthy capital buffers. 

Conclusion

The next step is expected to be a formal engagement between the Indian Banks’ Association and employee unions on the upcoming settlement. Wage settlement talks usually benefit employees of public sector banks, and often also extend to old-generation private banks and some foreign banks covered under such arrangements. 

Source: https://www.moneycontrol.com/

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