A note on Salary Package of Bank Officers

(Submitted to the Finance Secretary, Government of India for consideration)

Mr. G D Nadaf, General Secretary, All India State Bank Officers’ Federation and Mr. T N Goel, President,
All India State Bank Officers’ Federation met MoS, Labour, Mr. Harish Rawat at Delhi and submitted
memorandum for enhancement in Gratuity ceiling to Rs.10 lac from 1.1.2006.

You will please observe that in all parameters; be it business, profitability or productivity the Banks have
performed exceeding well.

(In Crore)

2002 2007 % increase 2009 % increase

Deposits 9,68,749 19,94,199 105.80 31,12,748 221.31

Advances 4,80,680 14,40,146 199.60 22.60,155 370.19

Total Business 14,49,429 34,34,345 136.94 53,12.903 270.69

Net Profit 8,302 20,398 145.69 34,319 313.38

Business/Employees 1.92 7 .55 290.22 11.37 492.18

q Prior to 1979, Bank Officers salary was batter than that of the Group 'A' officers of Govt. of India.
Class I officers Basic Pay was at Rs. 450.00 per month where as Bank Officers Basic Pay was at Rs.
500.00 per month with a difference of Rs. 50.00 per month-

q On account of Pillai Committee Recommendations during 1979, Bank officers, Basic Pay was fixed
at Rs. 700.00 per month at par with class I officers of Govt. of India.

q Fourth Pay Commission fixed Rs. 2,200.00 per month Basic Pay for class I officers where as for
Bank Officers it was at Rs. 2,100.00 per month.

q Fifth Pay Commission Scales; further widened the gap between Govt. Officers and Bank officers
scales by Rs. 900.00 per month. Govt Officers scale was at Rs. 8,000.00 per month whereas Bank
officers scale was fixed at Rs. 7,100.00 per month.

q In 2004, 50% of D.A. was merged with Basic Pay for Govt. Officers and Basic Pay was raised to Rs.
12,500.00 per month. Whereas for Bank Offices wef 1-11-2002, Basic Pay was at Rs. 10,000.00 per
month with a difference of Rs. 2,500.00 per month. In addition, for Govt. Officers HRA was at 30% of
Basic Pay in Metros as compared to 9% paid to Bank Employees.

q As on 1-1-2006 as per 6th Pay Commission Recommendations, Govt. officers. Basic Pay is fixed at
Rs. 15,600.00 with Grade Pay of Rs. 5,400.00 totalling Rs. 21,000.00. The HRA for Govt. Officer was
retained at 30% of Basic Pay whereas for Bank officers, it is at maximum 8.5% of Basic Pay.
q With present offer of 17.5% wage increase for Bank Staff, wef 1-11-2007, Bank officers scales
would at best be at Rs. 14,000.00 per month as against pay scale of Class I officers at Rs. 21,000.00
(includes grade pay) thus further widening of the gap by Rs. 7,000.00 per month in Basic Pay between
Govt. and Bank officers.

q Out of 17.5% wage increase offered by the IBA, Rs. 1,800.00 crores will go towards 2nd option of
Pension and incremental cost on Pension and remaining amount is not sufficient to construct scales of
Bank officers above Rs. 14,000.00 per month.

q Even in next wage revision for Banks, due from 1-11-2012 the gap between Govt. and Bank officers
may not be wiped out.

q A minimum salary increase of 30% to 40% is ensured to Public Sector undertakings, UGC Staff etc.
in tune with 6th Pay Commission Recommendations.

q In SBI, Superannuation Scheme will not ensure 50% of last drawn Basic Pay as pension.
Commutation formula is also inferior. Those retired before 31-10-2002, are drawing Pension, based on'
1992 scales.

q The Gratuity ceiling of Rs. 3.5 lacs is not enhanced for Bank employees wef 1-1-2006.

q Bank officers have unlimited working hours with accountability sword hanging on the head even
after retirement. As against 5 day working in Govt.; Bank staff virtually works all 7 days with no
compensation, undergo greater transferability and accountability.

q Bank officers are expected to match performance with professional in private sector and they do;
but are paid below municipal employees.

That bank employees are in a high wage island is the

GREATEST MYTH

Ø Today a General Manager of Bank draws emoluments less than a Section Officer of the
Government of India;

Ø A Probationary Officer of Bank draws less than a Clerk in Government and

Ø A Bank Clerk draws less than a Peon in Government.

Hence, we pray for Pay Scales at par with Group 'A' officers in Government in India and HRA@ 30%.