There may be a big change in the system of salary revision of Bank Employees in the near future as the government has hinted that they are going to allow the banks to decide salaries of their staff as per the choice of individual banks.
The finance ministry is all set to change the decades-old practice of uniform wage increases for nearly 10 lakh staff and has permitted 26 lenders to provide salary raises based on performance. However trade unions of the banks will now decide on this move of the government.
Rajiv Takru, secretary (financial services), told bank chiefs at a meeting that they are free to provide increases provided they have been performing well. But weak banks have been ordered to limit increments to about 10% as the pile of bad loans may not justify a steeper increase. This information has been revealed by the chairmen of a bank who has attended the meet but did not want to be identified.