CHAPTER—II

EVOLUTION OF COMPENSATION
IN
INDIAN BANKING INDUSTRY
 CHAPTER—II
Evolution of Compensation in Indian Banking Industry
2. Introduction — Nature and Scope:

One of the objectives of an Organization is to derive profit. In the absence of profit,

the employer may not be in a position to pay adequate compensation to the employees else
exit from the system. Notwithstanding the socio-economic obligations in a welfare State, the
financial strength of Banks in India, a prime concern of all the stakeholders has attained focus
due to the recurring losses, led to the mergers or closures. In the context, it is essential to
examine the historical evolution of banking in India, transformation of Compensation in
Indian Scheduled Commercial Banks (SCBs) and ever-changing role of Banks and Unions as
presented in the first chapter. The Banking Sector Reforms, existing all Bank industry-wise
Bipartite Settlements (BPS), salary and allowances, fringe benefits, perquisites, per employee
business, losses due to Non-Performing Assets, Banks Economic Health are reviewed.

2.01 Wage & Salary Administration: Wage and Salary Administration is one of the
vital areas of Personnel Management. For a sound wage, salary policies and programs are
necessary to procure, maintain, develop, promote and transfer employees, to secure effective
results from them. Wages are the most important single element in the conditions of
employment. Organizational morale cannot be maintained high without a fair, equitable and
sound remuneration program. Modern wage and salary administration is very complex and
sophisticated, requires expertise and specialist know-how. International Labor Organization
(ILO) defined the term wage as the remuneration paid by the employer to employees for the
services of hourly, daily, weekly and fortnightly. Salary is defined as the remuneration paid
to the clerical and managerial personnel employed on monthly or annual basis.

Historical Background: A retrospective view of Wage and Salary Administration

indicates successive stages of development and the change may broadly be identified and
classified into four discernible steps.

The first step was in the earliest primitive era, when man's needs and wants were
relatively few. The workers were paid in kind, mainly in the form of food grains. The
employer decided what wage he was going to pay to the worker.

The second stage brought forth the traditional labor market supply where the
autonomous forces of Demand and Supply of Labor in the market place determined the wage

36
the employer would pay to the worker. The conditions and the competitive forces of labor
market determined the level of wages. Only through individual bargaining, wages were paid,
where the individual employee was at a disadvantage.

In the third, the institutional labor market supply arose. The labor organized itself in
the form of trade Unions to protect and promote the economic interest of the workers. The
bipartite system of wage fixation developed. The Management and the Union negotiated to
determine the wage scales.

In the fourth stage, the tripartite system of Wage Determination came into existence.
The State was also interested in wage determination and established certain policy framework
within which the Labor and the Management would negotiate and fix wages and salaries.

In India, the influence of the tripartite machinery i.e. employer, employee and public,
Indian Labor Conference, Standing Labor Committee made GoI to appoint Wage Boards, to
form certain policy guidelines and determine wages in different industries like cotton textiles,
sugar, cement, jute, iron & steel, tea and rubber plantations, coffee, coal mining etc.

Wage-Introduction: The wage issue involves large number of factors both economic
and non-economic. Wages are among the major factors in the economic and social life of
any community. It is further complicated by the fact that can be approached from different
viewpoints. To the worker, wages are important not only because they constitute a major
portion of his income and thus determine largely his standard of living, the status and position
in the society. In an economic sense, wages represent payment of Compensation in return for
the work done. In a sociological sense, wages characterize satisfaction of occupational
groups. In a psychological sense, wages satisfy the needs directly and indirectly in response
to the changing employee aspirations.

Wages constitute one of the several elements of Job Satisfaction to the worker. It is
equally important to the employer as the component of the principal items of the cost of
production. Further, the Govt. and the people at large are interested in wage levels because
large number of strikes and lockouts revolve round the question of wages, bonus and
allowances. The Govt. is also concerned about the wage standards as it affects the social
climate of the country, employment, prices, inflation, productivity and the ability to export
and pay off its imports. The Govt. employees and large number of workers have, therefore, a
direct stake in wage structure. In fact, the Govt. is the largest employer in many countries.

37
 Jules Backman, (1959), explains, 'what happens to wages is of critical concern to
everyone'. To the worker, wages represent income. To the businessman, it represents costs.
To the Govt., it represents potential taxes. Wages are the largest source of purchasing power.
Hence, changes in labor income have an important bearing on the level of economic activity.
At the same time, payments for labor are the most important element of cost to the economy,
thus influence the level of prices and of profits.

Wage as Income Approach: Trade Unions emphasize the wage as income towards
the labor problems. They believe wages are not to be regarded as price of commodity called
labor. Wage is, however, the income to the society through the medium of business channels.
It also leads towards all those who fulfilled their social duty by supplying labor of appropriate
quality and quantity for a predefined way of life.

On the other hand, wages represent the cost of production. It is also the income of a
section of the population thereby affecting the aggregate demand and the whole economy.
As an item of cost, the employer tries to minimize the wage cost. In a free market system, the
employer may pay the lowest possible wage profitable to him, but leads to all kinds of social
evils ultimately reflect on the societal cost. Hence, the policy implication is that wages are
not determined by the local market forces but to be decided at the National level.

Multidimensional Approach: Wages have ethical, social, economic, political and

psychological ramifications in a worker's organizational life. With the changing institutional
set up processes and the united efforts of trade Unions, the multi-disciplinary focus of wage
determination gained momentum. Wage determination underlines organizational philosophy
as well what other organizations are doing.

The active involvement of trade Unions in wage fixation focused attention on wage
level and wage structure. Within the wage structure, inter and intra organizations are
compared at the industry level. In evolution of a rational wage structure and in determining
wage differentials, the development of job-evaluation constitutes a landmark.

Atkinson, (1958), argued, money has been and continues to be the primary means of
regard. It influences the human performance in organizations. There is increasing realization
what employee performance can be improved, if people are told that their earnings are
contingent on effective performance.

38
 Ruth Johnston, (1975), felt, though pay is not the only factor inducing the workers to
take up a particular work, still it is a very important element for most laborers. On the other
hand, employee motivation is closely related to the types of regards and their method of
disbursement. Employee earnings are found to be very important affecting Job Satisfaction.
With rising aspirations and increasing prosperity of the community, it is likely that there will
always be a thrust to increase the level of the employee earnings to achieve the earning
satisfaction.

Wage Concepts: Money paid to workers is called as wages. The terms 'wages' and
salaries are often used inter-changeably. If a worker is paid by the hour/day performing blue-
collar work, he is receiving a wage. On the other hand, if paid by the month/ year that too
performing a white-collar job, he is paid the salary. With the changing technology over a
period of years, the distinction between the two is disappearing.

The word 'Wages' cannot be one of several concepts like wage rates, straight-time
hourly, gross hourly, weekly earnings and weekly take home pay. Fringe benefits further
comprise pension, social security, welfare fund and vacation in addition to the wages.

In India, wages include basic wage and other allowances. Basic refers to the wages
paid as per contract. The allowances paid are only to maintain its value over a period of time
besides basic wage. The Indian wage legislations cover different items under the term wages
though all Acts consist basic wage and DA. Hence, wages refer to any one of the three:

i) Settled Wage rate per time period,

ii) Gross earnings (overtime + incentives + allowances) and
iii) Take-home pay (gross earnings – social security payments – taxes).

Gross earnings differ as per time period worked. Absenteeism creates a gap between
monthly wage rate and actual earnings. Earnings depend upon the wage rates, the time
worked or paid and the premium payments.

Wage Administration: Wage Administration deals with techniques and procedures to

design and maintain salary structures, reward and exercise wage control. The basic aim is to
develop and maintain a competitive and equitable wage structure to attract, motivate and
retain the employees Wide range of pay problems essentially administrative in nature may
arise with regard to the wage structure, policies and procedures.

39
 Wage Problems: There are innumerable pay problems that confront a given business
operation and the individual Managers operating the business. One of the most basic pay
problems is the question of pay relationships within the company. Employees are vitally
concerned how they are paid as compared to their co-workers pay. If found inequalities, they
feel underpaid, suspect favoritism and may lose confidence in the Management.

Next comes the employee pay comparison with those who perform similar work earn
in other companies of equal footing. Differences, if any, may result in serious industrial
unrest. To avoid pay dissatisfaction, Organizations have to convince the employees for both
internal and external equity. Bank wages are founded against this backdrop. The steady
progression of Compensation in Indian Banking is now examined.

2.02 Historical Evolution of Banking in India:

The history of banking began with the first prototype banks. The merchants of the
world made grain loans to farmers and traders who carried goods between cities around 2000
BC in Assyria, India and Sumer. More stable economic relations were brought with a change
in socio-economic conditions from a reliance on hunting and gathering of food to agricultural
practice, from the periods beginning sometime after 12000 BC, around 10000 years ago in
the Fertile Crescent. Technically banking system started in Paleolithic age.

Daman, Sunil, (2017), stated, Indians in Mahabharat and Puranic age made amazing
pace in trade, commerce and banking known from Dharmashastras, Arthashastra, Buddhist
literature of Indian authors and works of foreign travellers like Megasthenes, (302-298BC),
Fa-Hien (405-411AD), Huin-Tsang (629-645), Marco-Polo (1292-1294), Ibn Batuta (1333-
1347), Ludovico Di Varthema (c.1470-1517), Tavernier (1605-1689), Bernier, (1620-88) etc.

 Vedic Age (c2000-c1400 BCE): The ancient banking dates back to centuries right from
pre-Vedic age more than 2000 BC in India and Greece to 600 BC in Babylon. Epic Age
(1400-800 BC) evidenced banking business in regular force in Mahabharatha, Ramayana
periods and Smrithi period (1250-1000 BCE). Earliest Indian texts mention the concept of
usury named kusidin. The Sutras (700-100 BCE) and the Jatakas (600-400 BCE) also
refer to usury. During this period, Texts began to condemn usury. Vasishtha forbade the
Brahmin and Kshatriya varnas participating in usury. Manusmriti considered usury an
acceptable means of acquiring wealth or leading a livelihood over a period of time. By

40
 100 CE, usury was more acceptable. Those days knew merchants did money lending and
safe custody of valuables. Kautilya regulated wages of labor.

 Buddhist Period (600-200 BCE): Dharmasutra showed, Buddha and Mahavir denounced
the practice of money lending as a sin created huge agonies to mankind. It evidenced
money lending and banking business were well spread. Kautilya also wrote about banking
business in his famous book 'Arthasastra' and fixed rates for each service.

 Medieval Period (476-1492): After the birth of Christ, rudimentary banking system
continued. The concept of banking started in Italy. During ancient times, Italians used to
sit on a bench and conduct commercial transactions under barter system. The word bench
was referred as 'Banco' in Italian language. Gradually, with the intervention of large
number of clients and customers involved in barter system, the word 'Banco' was changed
to 'Bank'. In the middle ages, in Italy, the first bank known as 'Bank of Venice' was
established in 1157, particularly to serve the Royal families.

 Muslim Period (1194-1707): During the Muslim reign, the money lending business in
India declined due to strict Qoranic injunctions restraining 'interest' while the remaining
functions of banking business were allowed to continue.

 British Period (1600-1946): In 16th century, goldsmiths in England began to function as

bankers, with safe custody of valuables, issue receipts, money-lending, demand notes etc.
They created the customs in banking business, gradually formulated into Law, now
implemented in the entire world. On 1694, July 27, Bank of England, the first modern
Bank was established in England controlled the banking business in that country.

 East India Company (1707-1946): The seeds of modern banking business in India were
sown. Now India emerged as the strong economic system in global banking industry.

 Indian Modern Banking: In 1770, the first modern bank, Hindustan Bank was formed at
Calcutta by Alexander and Co was liquidated in 1832. In 1785, Bengal Bank and in 1786
General Bank of India Ltd were instituted, but both were liquidated in 1791. In 1806, the
first Presidency Bank was established later changed to Bank of Bengal. In 1840, the
Presidency Bank of Bombay and in 1843 the Presidency Bank of Madras were started.
Both were merged later as a new bank, known as Imperial Bank in 1920. It was
nationalized in 1950, emerged as State Bank of India, now the largest bank, next to RBI.

41
 During 19th century, several banks like Allahabad bank in 1865, Punjab National Bank
(PNB) in 1894, Bank of India, Central Bank of India, Bank of Baroda (BOB) from 1906 to
1913 were established, later nationalized which still exist showing tremendous growth. By
the end of 19th century, there were only 9 banks with capital and reserves of over ₹ 5 lakh,
paid-up-capital and reserves around 1.25 cr and deposits ₹ 8 cr. During the period 1913-
24, there was sluggishness in banking business in India due to World War I.

 On 01-01-1935, RBI was established under the RBI Act, 1934 as India's Central Bank.
Post World War II, several banks were established, who expanded its branches.

After independence, the Indian banking industry took very rapid growth in diversified
fields to serve different purposes. Before independence, earning profits was the only motto
of the banks and financial institutions. The constitution of India was adopted with social
welfare objectives. Now the Banks and financial institutions are also functioning with the
objective of social welfare aspects plus profit. Most of the Banks in India were nationalized
to make banking a powerful instrument of accelerated socio-economic growth. The prime
objective was overall development in agriculture, poverty alleviation, job generation and
rural economy. RBI plays a pivotal role as country's Central Bank as also Bankers' Bank.

Banking Theory, (1995), explained the history of Indian Banking marked a turn
around with the bold decision of the then Prime Minister, Indira Gandhi on 19-07-1969. 14
major commercial banks of high standing with deposits of over 50 cr were nationalized
followed by 6 more in 1980, April. Now there are 21 Public Sector Banks (PSBs), SBI with
its 8 subsidiaries merged, 19 Nationalized Banks and IDBI, which controlled 90% of the total
banking in India until 1991. Thereafter, privatization in trade, commerce and banking was
adopted. Private Banks compete with the nationalized banks in mobilizing deposits, grant
loans, render services etc. Hanil Bank and Sumitomo Bank (1895) came into operation
during 1997-98, and the Bank Muscat International SAOG in 1998-99.

TABLE 2.01 Important Banks and Financial Institutions in India

Reserve Bank of India 1 Foreign Banks in India 44 State Financial Corporation (Crpn)
State Bank of India 1 Regional Rural Banks 56 National Ind Dev. Re-finance Corp
Nationalized Banks 19 Cooperatives-Urban 1589 Unit Trust of India, NABARD
IDBI 1 Cooperatives - Rural 93550 Ind. Reconstruction Corpn of India
Scheduled Comml. Banks 21 Land Dev/Mortgage Banks Agriculturl Refinance Corporation
Private Sector Banks 21 Industrial Finance Corpns Industrial Credit & Invest Corpn

42
Scheduled Banks Classification:

Fig 2.01 Scheduled Banks Classification as per Second Schedule, RBI Act, 1934
(Scheduled Commercial Banks as per Annexure I to para 2(b) of RBI Notification, 2018, Oct 8)

2.03 Banking Sector Reforms— Highlights of Narasimham Committee I & II:

Indian Banking sector reforms constituted the major component of the economic
reforms undertaken since 1991. Under the Chairmanship of Narasimham, M, former RBI
Governor, a Committee was formed to consider all relevant aspects of the financial sector on
functions, procedures, structure and organization including the banking industry.

Narasimham, M, (1991), in his report-I dated 16-11-1991, recommended a host of

measures like considerable deregulation, transparency in banking operations, introduction of
prudential norms and injection of greater competitiveness to revitalize the banking industry.
After the initial setbacks, the banks as reflected in their performance in general, responded
favorably to the measures, referred as the first phase of reforms.

As the dynamics of market mechanism gained further momentum, review of banking

reforms carried out so far became imperative to address the impending issues and consolidate
its gains. For the purpose, under the same Chairmanship, another Committee was set-up,
which submitted the report II in 1998, April. It addressed several issues to streamline the
procedures, up-grade technology, manpower and prescribed certain measures to overhaul the
banking structure termed in general as 'second generation reforms.'

Narasimham Committee-I (1991), Recommendations: During the first stage of

reforms process, the Govt. accepted most of the recommendations of report I. Many were
implemented and some in different manner as outlined hereinafter.

43
  Statutory Liquidity Ratio (SLR): To bring down SLR in a phased manner to 25%
over a period of 5 years. This is implemented and gradually reduced to 25% from 22-10-
1997. SLR is now further slashed to 19.5%, at present to 19.25% from 01-01-2019.

 Cash Reserve Ratio (CRR): Reduced to 4%. IIB Vision (2006, February 5),
reported, as suggested by the said Committee, the average CRR was brought down in stages
from 15% in 1989 to 8% effective from 10-03-2001. RBI Monetary Policy kept the current
CRR remain unchanged at 4%. The bank rate is 6.50%, from 01-02-2019.

 Interest on CRR Balance: Earlier, the RBI paid interest on CRR deposits above
the basic minimum related to banks average cost of deposits. The amendment to RBI Act
1934, omitted sub-section (1B) of Sec 42 thereby the RBI need not pay any interest on the
CRR balances maintained by SCBs from the fortnight beginning 31-03-2007.

 Interest Rate Structure: The interest rates are gradationally deregulated in line
with macro-economic conditions. All lending rates are deregulated, except lending to small
borrowers and a part of export finance. The directed credit programs are phased out.

 Capital Adequacy: The Basel Committee on Banking Supervision (BCBS),

initially named as The Committee on Banking Regulations and Supervisory Practices, is
headquartered at the Bank for International Settlements (BIS) in Basel. It is established to
enhance the financial stability to improve the quality of banking supervision worldwide and
strengthen the soundness and stability of the Banking system by adopting internationally
accepted capital standards. Narasimham Committee I made various recommendations to
reform financial sector of Indian economy to reach the BIS standards.

The Committee adopted Risk Weighted Assets approach, which assigns weights to
both 'on' and 'off' – Bank's Balance Sheet Exposures. All the Assets of the bank are assigned
with risk weights keeping in view the perceived risk in respect of each item of Asset. Capital
Adequacy is determined as a ratio of capital funds to the total risk weighted assets. BIS
norms on capital adequacy are to be achieved over a period of 3 years by March 1996, the
period being accelerated for banks with an international presence. Profitable banks may
straightaway approach the capital market for enhancement of their capital. In respect of other
banks, Govt. will meet the shortfall either by direct subscription to equity or by providing a
loan to be treated as subordinated debt. These are implemented by RBI.

44
 Economic Times, (2017, December 20), reported, the capital norms recommend
Capital Adequacy Ratio (CAR) to be increased to 8% internationally, while in India it is 9%.
CAR is a ratio of a bank's capital to its risk. This capital is further classified into two– Tier 1
(the main portion of the banks' capital, usually in the form of equity shares) and Tier 2. Out
of the 9% of CAR, 7% has to be met by Tier 1 capital while the remaining 2% by Tier 2
capital. If the bank has risky assets worth ₹ 100, it needs to have Tier 1 capital worth ₹ 7,
which can be easily used to raise funds in times of trouble. In addition, banks also have to
hold an additional buffer of 2.5% of risky assets. The Govt. announced to infuse additional
capital of ₹ 40000 cr in PSBs by FY19, besides ₹ 1.35 lakh cr in 2018, Oct.

 Basel III norms: RBI first placed 11 PSBs under Prompt Corrective Action (PCA)
Plan, for not maintaining a desirable level of capital that restricts their business activity. PCA
initiation is directly linked to the banks adherence to RBI capital requirement rules under
Basel-III norms. It is also triggered if bad loans are higher than a minimum threshold and
ROA is lower than the threshold. 3 PSBs are now taken out of PCA continuing 9.

CNBC TV18, (2018, August 13), quoted the report of Fitch, a global ratings agency,
on the outlook of Indian banks remain negative on weak capital strengths and high NPAs. It
requires at least $40 to $55 billion additional capital to meet the Basel III norms by March
2019, as per RBI, of which the state-run banks require the bulk. The capital position of state
owned banks is most at risk, with the core capital ratios of 11 of India's 21 state banks below
the 8% Common Equity Tier 1 (CET-1) regulatory minimum that comes in place by FY19.
The financials of large private sector banks are weakened further in FY18, but better than
those of their state-owned peers, 11 of which are under the central bank's PCA. In July 2018,
the Govt. infused ₹ 11336 cr in 5 PSBs including scam-hit PNB and to all 11 PSBs.

 Transparency in Financial Statements: Introduced Income Recognition, Asset

Classification & Provisioning Norms. Transparency and Disclosure standards as per the
International Accounting Standards are implemented in a phased manner. RBI modified the
format of bank balance sheets to introduce greater transparency and disclosures in 1992.
From 1998, banks are directed to disclose 7 critical ratios on productivity and profitability.

 Asset Reconstruction Fund (ARF): RBI, PSBs and financial institutions created
ARF and funded to take over bad and doubtful assets, off the balance sheets. It facilitates the
banks to recycle the funds realized through this process into new productive assets.

45
  Structure of the Banking System: A broad structural pattern, consists of 3 or 4
large banks with international character, 8 to 10 national banks with all India branch network
engaged in universal banking is needed. The RRBs would be confined to rural areas and the
local banks to specific region. Entry of Private and Foreign Banks may be allowed.

Livemint, (2017), reiterated the recommendations of the said committee on mergers

to form a 3-tier structure. 3 large banks with International presence at the Top, 8 to 10
national banks at tier two and a large number of Regional and Local banks at the bottom.

Bankersclub, (2017, August 30), explained, though the Govt. gave its approval in
principle to merge PSBs, the process is not an easy task. Merging such huge banks with vast
infrastructure and manpower raises many issues. Unlike other large PSBs, SBI Associates
merger was under control of SBI well known in time to harmonize the systems.

 Regulation and Supervision: Dual control over the banking system by RBI and the
Banking Division, Ministry of Finance has to end. Single integrated system is required to
regulate and supervise the banks, FIs and Non-Banking Financial Companies (NBFCs).
Board for Financial Supervision (BFS) has to be delinked from RBI and made autonomous.
The RBI will be the primary agency for regulation.

Narasimham Committee-II, (1998, April 23): The South East Asian financial crisis
made the Govt. to act prompt on some focused areas to strengthen Indian financial system

Bimal Jalan, (2018, Dec 26), former RBI Governor is appointed to report in 90 days
on transfer of RBI reserve funds to recapitalize PSBs. Bankersclub, (2017, December 03),
stated the recapitalization as part of Govt.'s ₹ 2.11 lakh cr plan in Union Budget 2018-19, 8
PSBs will raise capital from the market. On 2018, Sept 27, PNB was allowed to raise ₹ 5341
cr from Govt. through preferential shares, despite recent huge fraud detected.

 Capital Adequacy: To increase from 8% to 10%, i.e. 9% by 2000 and 10% 2002.
To raise funds through private placements, banks mainly prefer Qualified Institutional
Placement (QIP) route for raising capital. Some banks already got approval from Govt.
followed by others. PNB, BOB, BOI, UBI, Allahabad and Andhra Banks are to raise the
capital from the market by March 2018 extended until 2018, August 21. As per Govt.'s plan
to recapitalize the NPA hit PSBs, ₹ 1.35 lakh cr will be raised through bonds and ₹ 58000 cr
from market by diluting Govt. stake to bring down to 52%.

46
 First Post, (2018, July 16), published PTI report that the Finance Ministry may
approach market regulator SEBI to seek relaxation on the minimum 25% public shareholding
norm for PSBs where the Govt. holding is more than 75% in 13 PSBs including IDBI. These
banks together plan to raise capital over ₹ 50000 cr during FY19 the current fiscal year.

 NPA and Directed Credit: Net NPAs for all Banks have to be below 5% by 2000
and 3% by 2002. For those with international presence, the minimum objectives are to
reduce gross NPAs to 5% by 2000 and net NPAs 3% to 0% during the same period. In the
area of directed credit norms, the Branch Managers will have greater freedom to identify
beneficiaries. Fishery, dairy and poultry are treated as priority sectors.

The relatively high level of NPA in PSBs is a cause for concern. While the gross
NPA % followed downward trend from 24.3 in 1993-1994 to 12.8 in 1999-2000, the level of
NPAs stood at 60841 cr as on 31-03-2000. The net NPAs as % of net advances came down
to 6.7% as on 31-03-2001 as against 7.4% in the previous year. Net NPAs, averaging 9% in
1996-97, have to be brought down to below 5% by the year 2000-2001. To reduce NPAs,
Debt Recovery Tribunals (DRT), National Company Law Tribunal (NCLT) and Appellate
Tribunal (NCLAT) are set up covering all States. Corporate Debt Restructuring (CDR) is an
alternative to BIFR to assist sick units. The burgeoning NPA of PSBs is significantly higher
than the private and foreign banks indicating the asset quality of PSBs is comparatively poor.

Source: Pacific Business Review International, (2015) Vol 8, Issue 5, November

Fig 2.02 Non-Performing Assets

IIB Vision, (2006), reported to encourage these banks on an experimental basis, to

establish pilot Asset Reconstruction Companies (ARC), by June 2002 to take over NPAs of

47
the bank at their realizable value and swap them with special bonds held by the bank. The
ARCs will concentrate on recovery of dues to realize the maximum value for the assets
transferred to them, as implemented in several countries like USA and Asia.

Moneycontrol, (2018, August 13), quoted the Fitch rating agency, the Indian banks
Q1 FY19 performance improved slightly on declining credit costs and steady loan growth.
Moreover, $151 billion (₹ 10.50 lakh cr) stock of bad loans remains a risk for the sector's
weak income base, which is vulnerable to ageing provisions and slower NPA resolution. The
gross bad loans for the country stood at ₹ 10.25 lakh cr for FY18. In the Q4 FY18 alone, the
pile grew by ₹ 1.39 lakh cr from the previous stated ₹ 8.86 lakh cr in Q3 FY17. For the last
fiscal, the total bad loans of these banks rose by a whopping ₹ 3.13 lakh cr.

Data Source: Capitaline

Fig 2.03 Gross NPAs in Public & Pvt Banks ₹ cr

Data source: Capitaline

Fig 2.04 Gross NPAs in Public Sector Banks ₹ cr

48
 Merger of Strong Banks and Closure of Chronic Weak Banks: Strong banks will be
merged with strong ones only. It was emphasized, not to merge weak banks with strong
banks. Chronic weak Banks may be closed. As per IBA, at least 49 mergers took place since
1985. To quote, New Bank with PNB (1993); BOB and Benares State Bank Ltd (2002);
OBC and Global Trust Bank (2004); State Bank of Saurashtra with SBI (2008); ING Vysya
with Kotak Mahindra (2015); Bharatiya Mahila Bank and SBI Associates with SBI (2017);
Vijaya and Dena Banks with BOB (2019). Industry wise BPS apply weak banks also. Since
VII BPS, IBA insists to delink from all Bank uniform BPS, wages left to each banks
operating profits. Once 4 nationalized banks even declared to delink from IBA to have their
own wage pattern. NITI Aayog strategic plan will revolutionize the Indian banking.

Wef 27-02-2017, the Royal Bank of Scotland NV was merged with The Royal Bank
of Scotland plc, renamed as NatWest Markets Plc. from 30-04-2018. On 01-01-2006, MUFG
Bank, Ltd. was formed by merger of Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd.
First Gulf Bank and National Bank of Abu Dhabi emerged as First Abu Dhabi Bank (FAB).
Commonwealth Bank of Australia was shut down in India. Cooperative Centrale Raiffeisen-
Boerenleenbank BA was rechristened as 'Cooperative Rabobank UA' from 07-10-2016.

BloombergQuint, (2018, Oct 08), reported, enthused by the success of SBI merger,
the Govt. merged Vijaya and Dena Banks with BOB and mulling over more SCBs like OBC,
Allahabad, Corporation, Indian with PNB; BOM, Andhra with BOI; Syndicate, IOB, UCO
with Canara; Central with UBI; IDBI with LIC/UBI. Axis Bank will be merged in Kotak
Mahindra despite other strengths pending HC decision. UFBI protested against Govt.
mergers to create 6-7 large banks, held nationwide strike on 21/26-12-2018 and again on 8/9-
01-2019 with Central Trade Unions (CTU). Govt. is also pruning 56 RRBs to 36.

Business Today, (2018, May 01), quoted the time is perfect for Kotak Bank to bid for
Axis, when the RBI and the Govt. are planning to turn around the PSBs. KPMG Best Bank
Study report revealed the position of Axis stood second in terms of 3-year CAGR growth in
loans and advances and third in deposits, with NPAs at 2.31%. Axis performed better in
banking service, digitization and meritocracy except in Governance. One reason for the neck
deep trouble is the de-motivated workforce and the absence of visionary leaders. 8 banks are
already in surveillance of RBI's Prompt Correct Action (PCA), after freeing BOI, BOM and
OBC in 2019. Banks have to take urgent corrective steps under the guidance of RBI and the
Govt. to re-orient HR system to transform the obsolete practices changed to digital world.

49
 Business Line, (2018, Sept 25), remarked the merger of Vijaya and Dena with BOB,
having diverse operations may be counter-productive, only a digression to turn away from the
core issue of NPA recovery. Union cabinet approved BOB merger on 02-01-2019. The
recent SBI financials after associates merger is deteriorated over the FY18.

Business Line, (2017), reported the raw deal given to Officers and Clerks of erstwhile
associate banks with several instances of arbitrary transfers, lost seniority, post transfer. New
Bank of India (NBI) with PNB (1993-94) left bitter ordeal for both Banks and Unions.

Business Today, (2017), analyzed, buoyed by the initial success of the move, the
Govt. is gearing up to create 4 to 5 large PSBs of global size. Nayak, PJ, Committee,
(2014), on Governance of Bank Boards also suggested the state owned banks might either be
merged or privatized and to fundamentally alter the face of PSBs, while making incremental
changes in the governance of private Banks, reported Business Today, (2014, May 20).

 Universal Banking: During the last few years, both Commercial banks and
Development Financial Institutions (DFIS) entered into different area of financial sectors like
consumer finance, hire purchase, leasing and housing finance etc. The Committee advised to
examine as to how different wings of financial system would be integrated and regulated.

 Technology up gradation: For higher profitability, a need has arisen for network
of Regional Data Warehouses, Credit Information Bureau, intra-bank branch Networking,
develop information and control system in areas like Tracking spreads, costs and NPAs.

Business Today, (2018, April 13), reported, the Govt. has also reconstituted Bank
Board Bureau (BBB), to review the governance of Bank Boards, a phase-wise process, to
keep the Govt. away from PSBs. BloombergQuint, (2018), quoted Vice-Chairman, NITI
Aayog highlighted the need to re-look at Nayak Committee advice. Both PSBs and Private
Banks will check their Governance, compliance and regulatory frameworks.

2.04 Organizational Structure of a Large Nationalized Bank Fig 2.04 & 2.05:

TABLE 2.02 Criteria for Br Category & Officer Scale Reg 6 -Average Business ₹ cr
Catgry last 2 yrs Av Dep+Adv Branch Category last 2 yrs Av Dep+Adv
Small < 5 crore (cr) I Very Large 70 cr & above but<200 cr IV
Medium 5 cr & above but<20 cr II Exceptionally Large EL 200 cr & above but>2000 cr V
Large 20 cr & above but<70 cr III Exceptionally Very Large 2000 cr and above VI

50
 TABLE 2.03 Categorization of Posts -Reg. 7 of Officers' Service Regulations, 1979
Chairman & Managing Director/ Executive Director Appointed by the Govt.
General Manager Scale VII Joint/ Deputy General Manager Scale VI Top Executive Grade
Assistant General Manager V Chief Manager/ Regional Manager IV Senior Management
Senior Manager III Manager/Branch Manager II Middle Management
Assistant Manager/ Officer I Junior Management Award Staff Clerk & Subordinate staff

Fig 2.05 Administrative Setup—Central and Zonal Offices

51
Fig 2.06 Administrative Setup—Regional and Branch Offices

52
TABLE 2.04 Deposits & Credit of Scheduled Commercial Banks-March 2018 ₹ Million
Bank Group No. Offices No. of Accounts Deposit Amount No. of Accounts Credit Amount
PSBs 92,362 65.0 1,433,758,420 75.0 76,460,372.1 66.9 88,963,657 45.2 55,432,609.0 63.2
Foreign Bks 284 0.2 4,354,049 0.2 4,765,325.5 4.2 5,632,825 2.9 3,678,303.4 4.2
RRBs 21,805 15.4 238,114,494 12.5 3,911,215.6 3.4 24,985,370 12.7 2,552,521.3 2.9
Private Bks 26,198 18.5 233,799,658 12.2 29,037,102.6 25.4 69,664,129 35.4 25,670,374.0 29.3
Small Financ 1,260 0.9 1,476,994 0.1 170,493.5 0.1 7,731,119 3.9 335,918.2 0.4
All SCBs 141,909 100 1,911,503,615 100 114,344,509.4 100 196,977,100 100 87,669,725.8 100
Source: RBI Database on Indian Economy, https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications#!9

TABLE 2.05 Bank Deposits — Compound Annual Growth Rate (CAGR)

Group-Wise 2005-06 2006-07 2007-08 2000-09 2009-10 2010-11 2011-12 2012-13 CAGR%
Nationalized 1080072 1360724 1679993 21057056 25839338 31265862 35969893 41272523 57.68
SBI & Asso 542409 633476 773875 10070415 11080856 12458624 14050241 16184449 52.88
Public Sector 1622481 1994200 2453868 31127471 36920194 43724487 50020134 57456972 56.19
Old Private 130456 138249 165589 1992735 2298969 2641571 3158914 3738964 52.11
New Private 298000 413738 509444 5371041 5929038 7386018 8586960 10219391 55.56
Private 428456 551987 675033 7363776 8228007 10027588 11745874 13958355 54.57
Foreign 113745 150750 191161 2140764 2320995 2406668 2769477 2879997 49.77
SCBs 2164682 2696937 3320062 40632011 47469196 56158743 64535485 74295324 55.58

TABLE 2.06 No. of Branches — Compound Annual Growth Rate (CAGR)

Group-Wise 2005-06 2006-07 2007-08 2000-09 2009-10 2010-11 2011-12 2012-13 CAGR%
Nationalized 35858 37431 39234 41041 43690 46462 50713 54478 5.37
SBI & Asso 14130 14673 15846 16938 18390 19338 20256 21301 5.26
Public Sector 50168 52104 55080 57979 62080 65800 70969 75779 5.29
Old Private 4819 4826 4690 4952 5273 5090 5673 6283 3.37
New Private 2016 2598 3632 4336 5243 7007 8297 9718 21.73
Private 6835 7424 8322 9288 10516 12097 13970 16001 11.22
Foreign 259 272 279 295 310 318 323 334 3.23
SCBs 57262 59800 63681 67562 72906 78215 85262 92114 6.12
Source: Journal of Business & Financial Affairs, (2018), Volume 7, Issue 1

As may be observed from the Table 2.06, the SCBs in India showed CAGR of 6.12%,
over a period of 8 years during 2006-13. The major contribution is from the growth in new
private sector banks. There is a continuous increase in number of Branches in SCBs due to
multiplicity of branches of all banks combined public, private sector and foreign banks.

In private sector banks, per employee business lags to other bank groups in the study
indicates the former to re-look at this aspect. Foreign banks have the highest per employee
business as well as profit, when compared to other groups in public and private sectors who
could not compete in the global scenario.

53
2.04.01 Business per Employee in Indian Banks:
TABLE 2.07 Per Employee Bank Business—Period 1996 to 2000 (₹lakh)%
Banks 96-97 97-98 98-99 99-00 Banks 96-97 97-98 98-99 99-00
I PUBLIC SECTOR BANKS 27 (PSBs) NEW PRIVATE SECTOR BANKS NPSB(8)
01State Bank SBI 68.00 75.44 93.64 111.20 25 ICICI Bank 374.00 420.17 513.91 597.99
II ASSOCIATES SBI 26 HDFC Bank 230.00 460.00 522.00 942.00
02 Hyderabad 74.00 90.00 109.00 126.00 27 Indusind Bank 2033.00 1747.5 1506.1 2004.7
03 Travancore 74.20 89.81 99.97 121.65 28 Global Trust 7700.00 8090.0 690.00 855.00
04 Patiala 75.00 91.23 106.67 122.62 29 UTI Bank 547.00 993.00 1000.0 1249.0
05 Bikaner&Jaipur 52.00 63.24 74.17 86.47 30 Centurion Bk 554.01 755.01 553.62 688.73
06 Mysore 59.40 62.35 70.75 81.61 31 IDBI Bank 174.38 812.26 913.06 923.01
07 Saurasthra 67.00 79.28 82.10 98.28 32 Bk of Punjab 183.00 290.57 379.57 712.05
08 Indore 60.36 75.02 80.52 96.23 AvgNPSB [II] 611.55 785.94 759.79 9969.6
Avg7 associates[II] 65.99 78.70 89.03 104.84 Avg32 Pvt [I+II] 218.64 287.14 298.60 383.32
AvgSB Grup[I+II] 66.25 78.30 89.60 105.63 FOREIGN BANKS IN INDIA
III NATIONALIZED BANKS 19 (NB) 01 Citibank 770.00 803.75 831.89 1160.6
09 BOB 106.00 117.24 134.75 142.82 02 Hongkong&S 271.00 328.46 357.74 467.44
10 Canara 79.90 102.33 116.88 135.20 03 ANZ Grindlay 289.00 333.08 370.60 386.38
11 BOI 86.00 99.14 131.00 132.65 04 Std Chartered 218.00 276.63 311.12 571.53
12 PNB 61.95 75.65 89.58 106.48 05 ABN Amro 453.00 649.11 731.53 857.06
13 CBI 61.00 66.38 79.55 93.30 06 Bk of America 705.00 99.27 997.74 1312.0
14UBI 86.36 96.98 112.94 135.44 07 Deutsche 680.00 7674.3 743.77 757.13
15 IOB 83.00 90.79 103.78 116.87 08 American Exp 372.00 342.44 314.40 290.21
16 Syndicate 49.00 53.26 88.83 111.36 09 Banque Ntnl 421.00 394.98 465.66 555.25
17 OBC 100.30 134.80 169.70 218.20 10 Credit Lynnl 1146.00 1029.3 878.89 1228.1
18 Indian 84.00 87.73 97.87 110.00 11 Nova Scotia 9141.00 843.18 1045.2 833.77
19 UCO 51.00 56.00 0.73 89.00 12 Bk Tokyo 651.00 584.87 569.00 381.66
20 Allahabad 68.00 77.00 90.00 105.00 13AbuDhabiCml 774.00 775.17 880.30 1033.8
21 UBI 58.00 72.01 85.95 100.28 14 Oman Intl 647.00 606.51 741.85 818.23
22 Andhra 59.13 67.69 81.14 111.71 15 Societe Gener 1126.00 104.46 677.20 662.40
23 Corporation 90.69 141.50 185.02 207.68 16 BK Bhrn&Kwt 474.00 — 611.90 689.90
24 BOM 57.00 78.91 90.62 114.84 17 Mashreq 694.85 429.06 558.83 591.24
25 Dena 69.91 101.00 126.00 145.00 18 KBC — — — 443.56
26 Vijaya 60.00 71.68 89.86 105.49 19 Credit Agr Ind 1198.00 784.45 679.02 565.93
27 P&Sind 74.00 92.76 111.49 124.96 20 Barclays 363.00 319.00 581.32 412.10
Avg19 NB[III] 72.91 88.54 104.51 126.80 21 Commerz 312.00 710.18 752.20 464.83
Avg27PSBI+II+III 70.93 88.51 100.09 120.53 22 Sakura 916.00 691.28 640.60 615.02
Private Sector Banks 23 SB Mauritius 17.17 754.65 899.80 1304.4
01 J&K Bank Ltd 81.86 116.00 137.00 175.00 24 Dresdner 447.00 673.32 593.31 593.48
02 Vysya Bank Ltd 112.40 111.76 123.89 186.14 25 Bk Muskt Intl — — 75.29 278.57
03Federal Bank Ltd 99.00 142.00 153.00 161.00 26 Sanwa 955.32 917.85 805.38 781.79
04 Karnataka Bank 89.00 127.46 156.29 177.68 27 Fuji 79.00 501.85 570.67 693.02
05 United Western 81.00 113.00 139.00 179.00 28 Sumitomo — 732.99 1086.9 760.18
06 South Indian Bk 69.00 85.00 109.00 129.00 29 Cho Hung 240.00 51.26 728.45 710.48
07 Bk of Madurai 102.0 148.00 171.00 202.00 30 Chinatrst Coml 176.00 127.35 447.63 661.78
08 Bk of Rajasthan 92.00 93.94 99.00 111.37 31 Ing Bank 288.37 294.69 702.66 252.43
09 Karur Vysya Bk 85.00 126.00 137.00 169.00 32 Slam Cmml 525.00 1048.6 932.57 976.72
10 Dev Credit Bk 54.00 173.00 227.82 343.00 33 Dvpt Bk Sngp 314.00 432.32 478.20 733.28
11 TN Mercantile 97.00 117.97 141.48 180.28 34 Bk of Ceylon 241.00 458.00 460.00 560.00
12 Catholic Syrian 70.47 84.00 94.00 107.00 35 Sonali 85.00 NA 66.99 120.81
13 Laxmi Vilas Bk 87.00 100.23 124.58 158.00 36 MorganGTrust — — NIL 124.11
14 Nedungadi Bank 63.00 87.39 107.92 133.34 37 Arab Bangla 79.00 133.26 133.05 151.18
15 Bharat Overseas 106.0 158.00 188.00 205.00 38 Bk Intl Indone 744.00 385.19 195.60 490.33
16 Dhanalaxmi Bk 103.0 120.57 131.17 153.66 39 OverChinese 3.00 297.29 334.94 307.40
17 Sangli Bank Ltd 51.83 54.93 59.38 66.82 40 Krung Thai 24.00 52.35 54.79 119.92
18 City Union Bk 81.00 116031 138.89 155.94 41 Chse Mnhtn 52.00 14.32 6.29 65.49
19 Banares State Bk 60.00 66.95 71.79 86.03 42 Trto Domn — 112.48 353.64 384.69
20 Lord Krishna 116.0 154.00 149.00 200.00 AvgFor.Bks Indi 477.48 529.40 553.02 599.25
21 SBI Comml Intl 304.0 391.00 577.38 724.99 AvgSCBs 276.58 328.00 349.32 402.86
22 Nainital Bank 53.00 59.76 70.13 79.05
23 Ratnakar Bank 65.45 82.29 90.47 1141.7
Source: IBA Bulletin Vol XXIII No.3 p.p 244-245
24Ganesh BkKrdwl 61.00 70.98 81.76 94.77
Avg 24 PVT BnksI 87.67 120.88 144.87 178.91

54
TABLE 2.08 Total Staff Strength (1997-2000) of Indian SCBs covered by Settlements
Total staff (Nos) Total staff (Nos)
Banks Banks
96-97 97-98 98-99 99-00 96-97 97-98 98-99 99-00
I PUBLIC SECTOR BANKS 27 (PSBs) NEW PRIVATE SECTOR BANKS NPSB (8)
01State Bank SBI 236204 239649 237504 233433 25 ICICI Bank 445 603 889 1344
II ASSOCIATES SBI 26 HDFC Bank 514 661 984 1992
02 Hyderabad 14117 14269 14614 14740 27 IndusInd Bank 251 351 508 424
03 Travancore 12990 13049 13234 12953 28 Global Trust 429 532 748 748
04 Patiala 14004 13106 13108 13165 29 UTI Bank 271 412 521 739
05 Bikaner&Jaipur 15077 15046 14970 14778 30 Centurion Bk 160 248 635 710
06 Mysore 11089 11217 11438 11419 31 IDBI Bank 181 331 419 547
07 Saurasthra 8015 7993 8152 8132 32 Bk of Punjab 113 113 528 549
08 Indore 6811 6831 6857 6926 Ttl NPSB [II] 2364 3251 5232 7053
Ttl 7 associates[II] 82103 81513 82373 82113 Ttl 32 Pvt [I+II] 59437 60753 64706 66377
Ttl SB Grup[I+II] 318307 321162 319877 315456 FOREIGN BANKS IN INDIA
III NATIONALISED BANKS 19 (NB) 01 Citibank 14749 1537 1537 1308
09 BOB 45759 45935 46187 47054 02 Hongkong&S 2357 2512 2723 2790
10 Canara 54316 54703 55097 55363 03 ANZ Grindlay 3358 3337 3303 3122
11 BOI 53295 52518 53047 52428 04 Std Chartered 2499 2680 2666 1636
12 PNB 67616 66599 65705 64733 05 ABN Amro 400 461 499 854
13 CBI 50372 49702 48933 48260 06 Bk of America 656 707 719 295
14UBI 30919 30901 30834 30376 07 Deutsche 507 544 501 518
15 IOB 28644 28347 28335 28213 08 American Exp 895 895 950 874
16 Syndicate 36905 36266 35749 34581 09 Banque Ntnl 254 307 329 344
17 OBC 13580 14238 14447 14398 10 Credit Lynnl 94 94 110 111
18 Indian 27267 26994 26727 26402 11 Nova Scotia 85 96 96 130
19 UCO 33574 32903 32086 31223 12 Bk Tokyo 316 319 325 313
20 Allahabad 22831 22606 22345 22125 13AbuDhabiCml 81 79 69 71
21 UBI 22301 22041 21575 21316 14 Oman Intl 65 77 76 79
22 Andhra 15066 14936 14771 14603 15 Societe Gener 101 110 95 89
23 Corporation 9379 9615 10182 10587 16 BK Bhrn&Kwt 96 82 81 90
24 BOM 16852 16596 16356 16098 17 Mashreq 82 91 59 52
25 Dena 15610 15109 14881 14412 18 KBC 23 34
26 Vijaya 14268 14138 14140 14324 19 Credit Agr Ind 105 105 105 105
27 P&Sind 12312 12167 12192 12128 20 Barclays 74 65 47 44
Ttl 19 NB[III] 570866 566314 563771 558624 21 Commerz 42 51 56 60
Ttl27PSBsI+II+III 889173 887476 883648 874170 22 Sakura 91 100 104 93
Private Sector Banks 23 SB Mauritius 17 23 35 30
01 J&K Bank Ltd 5573 5689 6254 6278 24 Dresdner 39 47 43 43
02 Vysya Bank Ltd 5567 6219 6151 6060 25 Bk Muskt Intl - - 22 22
03Federal Bank Ltd 6094 5748 66443 6421 26 Sanwa 40 40 40 34
04 Karnataka Bank 3638 3925 3929 4075 27 Fuji - 27 27 29
05 United Western 3357 3393 3436 3386 28 Sumitomo - 25 41 40
06 South Indian Bk 3841 3770 3785 3742 29 Cho Hung 15 15 15 15
07 Bk of Madurai 2533 2563 2581 2581 30 Chinatrst Coml 21 22 29 22
08 Bk of Rajasthan 4472 4388 4378 4344 31 Ing Bank 55 55 55 55
09 Karur Vysya Bk 2446 2397 2667 2738 32 Slam Cmml 14 15 16 15
10 Dev credit Bk 1276 1269 1285 1279 33 Dvpt Bk Sngp 30 31 31 32
11 TN Mercantile 2062 2049 2131 2145 34 Bk of Ceylon 15 14 21 21
12 Catholic Syrian 3187 3199 3190 3143 35 Sonali 42 42 42 42
13 Laxmi Vilas Bk 2002 1786 1957 1930 36 MorganGTrust - - 43 27
14 Nedungadi Bank 1645 1651 1665 1739 37 Arab Bangla 18 18 20 23
15 Bharat Overseas 1057 937 989 993 38 Bk Intl Indone 38 39 37 21
16 Dhanalaxmi Bk 1225 1252 1370 1368 39 OverChinese 10 13 14 15
17 Sangli Bank Ltd 2314 2271 2220 2157 40 Krung Thai 10 10 9 9
18 City Union Bk 1330 1376 1365 1352 41 Chse Mnhtn 35 31 57 52
19 Banares State Bk 1316 1390 1408 1351 42 Trto Domn 3 9 8 8
20 Lord Krishna 693 729 745 726 Ttl For.Bks Indi 14039 14725 15078 13567
21 SBI Comml Intl 144 131 129 118 Ttl SCBs 962649 962954 963432 954114
22 Nainital Bank 606 611 618 624
23 Ratnakar Bank 521 555 554 545
Source: IBA Bulletin Vol XXIII No.3 p. 241
24Ganesh BkKrdwl 174 204 224 229
Ttl 24 PVT. BnksI 57073 57502 59474 59324

55
 TABLE 2.10 % of Women Employees Total in Banking Industry
Name of the bank Total Women % Name of the bank Total Women %
Allahabad Bank 22125 1787 8 Punjab National Bank 64733 7445 12
Andhra Bank 14603 3045 21 State Bank of India 233433 21384 9
Bank of Baroda 47054 5830 12 Syndicate Bank 34581 8098 24
Bank of India 52428 7341 14 Uco Bank 31223 2794 9
Bk of Maharashtra 16098 3033 19 Union Bank 30376 4672 15
Canara Bank 55363 10250 19 United Bank of India 21316 1271 18
Central Bk of India 48260 6414 13 Vijaya Bank 14324 2602 18
Corporation Bank 10587 2128 20 State Bk of Bik & Jaipur 14778 932 6
Dena bank 14412 2026 14 -do- Hyderabad 14740 1684 12
Indian Bank 26402 3376 13 -do- Indore 13165 454 4
IOB 28213 4242 15 -do- Mysore 11419 1962 17
OBC 14398 1488 10 -do- Patiala 13165 1443 11
Punjab & Sind Bank 12128 804 7 -do- Saurashstra 8132 716 9
-do- Travancore 12953 3357 26
Source: Indian Journal of Science Research, IJSR, (2016), Vol5 Issue2, February 2016

 Issues on HR: Narasimham Committee-II (1998), highlighted the Banks to adopt

lateral induction of experienced and skilled personnel and to recruit from Indian Business
Schools. Banks, at their level, will recruit direct Officers and Clerks. To begin, 3 or 4 large
banks may be allowed to go ahead in this direction with accurate and timely information for
strategic decision to identify and provide profitable products to customers. Banks find it
difficult to attract and retain the young talent, resulted to human failure, identified as one of

56
the reasons for Bank frauds. The best examples of bank scams attributed to human error are
PNB, SBI, HDFC, ICICI and Axis Banks. In spite of its other strengths, Axis will merge
with Kotak Mahindra, pending before HC. In the absence of any additional rewards like
performance-linked variable pay and incentives, the Job Satisfaction is diminished, reflecting
on Employee Performance and Organizational Development.

Economic Times, (2018, July 28), reported, in a first-of-its-kind move, SBI, PNB,
and BOB are planning to introduce soon the variable PLP from General Managers and above
consists of Fixed plus Variable pay. For Central Govt employees, the VII Central Pay
Commission (CPC) also suggested that the incentive would be in the form of a 'non-additive
cash component' of their current pay paid at the end of the fiscal year, not linked to savings.
PLP was already proposed by previous pay panels as well as the Administrative Reforms
Commission, in vogue in Coal India Ltd, since 2015.

 Amendment to Major Banking Laws: While dealing with the laws governing the
banking industry, the Committee recommended reviewing the Banking laws such as the RBI
Act, The Banking Regulation Act, Nationalization Act, SBI Act along with Sick Industrial
Companies (special provision) Act and Bankers Evidence Act.

TABLE 2.11 Per Employee Business of SCBs in India—Period 1992 to2007

Domestic Public Sector Banks Domestic Private Banks All All
Foreign
Year National All Public Old New All Domestic Comml
SBI group Banks
ized sector Private Private Private Banks Banks
1 2 3 4 5 6 7 8 9 10
1991-92 42.99 46.37 45 15 33.45 - 33.48 44.42 199.47 48.68
1992-93 47.28 46.24 47.91 43 49 - 43.49 47.85 233.66 30.32
1993-94 49.65 41.69 44 10 55 26 - 55 26 44 88 287.39 47 57
1994-95 56 55 60.10 58.87 73 68 - 73 62 59 72 326 96 63 40
1995-96 65 65 67 52 66 66 83 39 734.57 99 74 65 89 393 63 73 42
1996-97 72-51 76.86 75 33 102.24 794.15 129.76 78.72 448 24 84 03
1997-98 84.43 91.91 89.20 124.12 905.73 165.91 94 14 480 99 100 34
1996-99 102-45 107.67 105.75 136 75 793.76 193.95 111.57 504 61 117.72
1999-00 122.11 126.18 124 71 169 53 976.01 255.23 153.93 627.03 140.02
2000-01 155.65 160.18 150.69 196 62 765 99 296.39 170.58 720 19 179 43
*2001-02 181.54 197.59 191.57 218.10 651.21 333.88 204.10 773 40 213 97
2002-03 205.09 221.05 215 09 266 19 834 65 445.68 236 45 909 65 247 02
2003-04 232.90 255.74 247 22 316 65 596 06 527.85 275 17 952 50 286 50
2004-05 284.04 318.92 305 96 362 05 870.97 576.65 355.98 966.11 346 27
2005-06 337.79 383.07 366.69 419.53 904.30 670.67 405.91 955.41 419.77
2006-07 455.52 490.21 470.99 486 02 818.02 694.07 506.77 995 09 521.91
* First published balance sheet data of new private sector banks were available from the year ended March, 1998
Source: Computed from Statistical tables relating to Banks in India (RBI) Figures are adjusted for bank merger

57
 Fig 2.07 Business per Employee

TABLE 2.12 Employee Productivity in Indian SCBs—Period 2009 to 2013 (₹ Million)

Bank Group 2008-09 2009-10 2010-11 2011-12 2012-13
Nationalized 78.32 93.59 115.25 127.85 142.23
SBI Group 65.02 73.74 79.05 91.38 101.97
Public Sector 73.44 86.43 101.67 114.68 127.47
Old Private Sector 63.84 69.75 81.04 87.23 97.24
New Private Sector 69.18 80.38 83.13 85.89 93.03
Private Sector 67.76 77.27 82.60 86.23 94.06
Foreign Banks 128.27 141.14 155.55 195.62 217.33
All SCBs 73.98 86.23 99.03 109.95 121.33

Source: Reserve Bank of India 2008, Sept 04

Fig 2.08 Employee Productivity

58
 Source: Reserve Bank of India, Employee Productivity Cost

Fig 2.09 Per Employee Profit

Narasimham Committee-I, (1991), on Financial System approached the task of

financial sector reform by placing emphasis on a diversified, efficient and competitive
financial sector. Likewise, the Committee-II, (1998), gave more emphasis on improvement
in the organizational effectiveness of the banks and other financial entities. Globalization of
financial market creates opportunities. In the absence of sound macro-economic environment
and a strong financial system, it may also cause dangers. With improved strength, structural
changes, greater functional autonomy and operational flexibility, there is every reason to
expect the Indian banking system will rise to the challenges of the next Gen Z and millennials
Gen Y. The need for redesigning the structure, function, and systems of the banks has now
been well recognized in the second-generation reforms. In the context, the objective is to
evolve in India, a level of efficient, effective, and customer-oriented banking services to
emulate the best practices in the industry the world over.

2.05 Evolution of Compensation System in Banking Industry in India:

Industrial relations are meant the relations between the employer and their employees.
Largely these relations are governed by the compensation system of the employees in the
organizations they serve. Better service conditions result in lesser conflicts; cordial work
atmosphere, increased efficiency and a sense of belongingness to the institution culminate in
greater productivity and improved Job Satisfaction. In India, the service conditions of bank
employees are termed as Bipartite Settlements (BPS) provide certain amenities and facilities
in life, motivates them to remain in the organization and contribute to its overall progress.

59
 The Managements and the UFBU, an umbrella body of nine major Unions on behalf
of around 10 lakh bank employees negotiate and arrive at settlements called Awards/ BPS,
and the Department of Financial Services (DFS), GoI as intermediary. The BPS uniformly
cover all Clerks, Sub Staff named workmen, and Officers separate. UFBU signed the last X
BPS for a total 43 Banks consisting of 25 PSBs, 11 Private and 7 Foreign Banks. As the last
X BPS expired, XI BPS due for revision from 01-11-2017 is under negotiations. Some other
banks though not parties to the settlement also adopt similar conditions for their employees.
The staff strength and business per employee under various categories of SCBs covered by
different BPS are shown in Table 2.08 to 2.12, the base data to finalize pay revision.

UFBU first demanded 25% pay hike in XI BPS, quoting 15% in the last X BPS. IBA
offered 12% now, raised from meagre 2% start, citing huge losses. Though the talks initiated
are yet to negotiate on financial commitment, there are too many moving parts as the capital
is a major constraint. Now that the re-capitalization is announced, each bank will first plan
for growth and thereafter the expenses based on funds allocation. Lenders will then give
proposal to IBA, to negotiate with the Unions. Banks are exempted from all the provisions of
the Shops & Establishments Act by most of the States in India.

Bank Employee is a Workman:

In Banks, Clerk and Subordinate Staff are Workmen. ID Act, 1947, Sec 2(s) defines
Workman as any person, including an apprentice employed in any manual, unskilled, skilled,
technical, operational, clerical or supervisory work for hire or reward, whether the terms of
employment under this act is in relation to an industrial dispute. It includes any such person
who has been dismissed, discharged or retrenched in connection with or as a consequence of
that dispute or whose dismissal, discharge or retrenchment has led to that dispute. A person
is not a workman, if he is employed a) mainly in a managerial or administrative capacity or b)
in supervisory capacity drawing wages exceeding ₹ 1600/- pm or c) discharges functions
mainly of managerial nature or exercises either by nature of duties attached to the office or
because of the powers vested in him.

Workman Defined—Legal Decisions:

 The object of the ID Act 1947 is to make provisions for the investigation and settlement of
industrial disputes and for any other purpose between the employer and the worker. It is,
therefore, necessary to give an elaborate definition of a workman under Sec 2(s).

60
 The meaning of 'workman' is very exhaustive. In any industry, a person engaged or an
apprentice works on hire or reward, skilled or unskilled, operational or technical, manual
or physical and clerical or supervisory is paid in cash or kind is a workman.
 Certain categories of persons discharging duties in managerial or administrative capacity
are excluded from the 'workman' definition. There is a difference between 'Supervisory,'
'Managerial' or 'Administrative' capacity.

Andhra Scientific Co Ltd. vs. Seshagiri Rao, (1959): The petitioner, Seshagiri Rao
worked as a Stores Manager in the defendant company. In a dispute, the employer raised an
objection that the provisions of the ID Act would not apply to the petitioner, who was a
Stores Manager. The designation 'stores manager' pertains to 'managerial' duties. The
Supreme Court (SC) held, the duties of stores manager being maintenance of general stores,
respond to stock orders, pack, dispatch, stock accounts and effectively check them do not
involve mainly of managerial nature. Also held, if the duties are essentially supervisory in
character, the provisions of this Act would not apply to him. Sec 2(s) sub-sec (iv) provides
the important characteristic feature of supervisory and managerial capacity. It excludes such
persons from the definition of 'workman' under two conditions:

 the person, who earns more than ₹ 1600/- pm as his wages, being employed in a
supervisory capacity, such person shall not be a 'workman' for the purpose.
 the nature of the duties attached to the office or because of the powers vested in him, the
functions are mainly of a managerial nature.

The Govt. may lay down the list of highly paid jobs. It may clarify who are deemed
workmen or fix a wage ceiling limit substantially high enough. In the present context, ₹
25000/- pm beyond which the employees are not treated as ordinary 'workmen'. Supervisors
are not considered as 'workman' and clubbed with managerial and administrative employees.

Person on Contract whether a Workman: A servant is engaged on contract of

service. An independent contractor undertakes contract for services. Driver on personal car
is a servant under employment. Taxi driver carrying a person from house to railway station is
an independent person, renders service on contract, not as an employee.

Several employers try to avoid the obligations of ID Act, 1947, Payment of Wages
Act, 1936, Minimum Wages (MW) Act, 1948 etc. in the veil of independent contractorship,

61
to exploit the labor. Sec 2(j), therefore, clearly defines industry, bringing such workers as
workmen, who whether employed by the employer directly or by or through any agency
including a contractor, for the production, supply or distribution of goods or services.

Dharangadhara Chemical Works vs. State of Saurastra, (1957): The employer was
a manufacturer of salt. He used to divide the field in plots and allot to Agarias (villagers,
who come from nearby villages). The Agarias with their family members and children
worked in the plots so allocated, manufacture salt, pack, and stock them. The company
exported the manufactured goods and paid them the remuneration as per unit system. It was
a seasonal work. During unseason, Agarias used to go back to their villages. There arose an
industrial dispute between Agarias and the Salt Company.

The Company raised an objection that Agarias were not 'workmen' within the purview
of Sec 2(s), as they were independent contractors. Supreme Court (SC) held that the workers
would fall within the definitions of Sec 2(s) read with Sec 2(j) and contractors. Therefore,
Agarias were treated as 'workmen.' It is thus clear, in any industry, a person engaged or an
apprentice works on hire or reward, skilled or unskilled, operational or technical, manual or
physical and clerical or supervisory is paid in cash or kind is a workman.

2.06 Bank Wage Awards & Settlements — Retrospect:

It is said, 'the present is embedded in the past and the future evolves from the present.'
Therefore, it is pertinent to narrate in brief the leading events resulted in the present service
conditions of the Bank employees, to throw further light on the subject.

Price Rise during and after World War II: The Prices of commodities rose
considerably during and after World War II (1939-45) though the rise was insignificant as
compared to the hike after the year 1965. The middle class was groaning under the yoke of
high prices. Banks did not pay adequate nor otherwise compensate as Dearness Allowance.

All India Bank Employees Association (AIBEA): To agitate for improvement of the
Service Conditions of the workmen, AIBEA, the Federation of the Union for workmen of
various Banks was formed in 1946, the then sole recognized majority Union in II BPS.

Development of Compensation Structure in Banks: In Bombay, Bengal and United

Provinces, the bank employee unrest was widespread. The State Governments referred the

62
disputes for adjudication with intent to extend some relief to the employees from time to
time. The verdicts are called Awards and Bipartite Settlements binding on all concerned.

TABLE 2.13 List of Important Awards/ Settlements with Dates

Award/ BPS Date Award/ BPS Date Award/ BPS Date
Devatia, HU, Award 09.04.1947 Desai Award 13.06.1962 V BPS 10.04.1989
Singh, BB, Award 11.03.1947 I BPS 19.10.1966 III Comp settlement 10.04.1989
Gupta, R, Award 04.08.1947 II BPS 12.10.1970 Settlmnt B Cl Bks 03.02.1990
Sen, SK Award 22.12.1947 Settlement 23.07.1971 Suplmntry Settlmnt 29.06.1990
Chakravarty SC 22.12.1948 Other issues 08.11.1973 Settlmnt B ClasBks 13.10.1990
SenKC Tribnl appointd 13.06.1949 III BPS 01.08.1979 Other issues 17.06.1991
Sen KC Award 12.08.1950 Other issues 31.10.1979 V Comp Settlmnt 29.10.1993
Sen Award void 00.04.1951 Settlmnt B/C Cls Bks 22.11.1979 Pension Settlement 29.10.1993
DivitTribApointd/resignd 00.07.1951 Minutes with IBA 15/16.6.980 HRA Mts-SurtJapur 22.06.1994
Sastry Trib appointed 05.01.1952 Computer Settlment 21.04.1980 VI BPS 14.02.1995
Sastry Award 20.04.1953 Computer Settlment 08.09.1983 Relativity Settlemnt 14.12.1996
Labor AppelTribunal 28.04.1954 Other issues 08.09.1983 Other issues 28.11.1997
Govt Modified 24.08.1954 IV BPS 17.09.1984 VII BPS 27.03.2000
Bank Awrd Commisn 25.07.1955 Settlmnt B Cl Bks 28.02.1985 Disciplinary Action 10.04.2002
Sastry Award modfd 00.00.1957 Other issues 05.01.1987 VIII BPS 01.11.2005
DA amend Notification 13.02.1960 CompSetlmntIIALPM 29.03.1987 IX BPS 01.11.2007
Desai Trib appointed 21.03.1960 Settlement 23.02.1989 X BPS 01.11.2012

Devatia Award, (1947): Justice Devatia, HU, was appointed as an adjudicator in 1946
to resolve the dispute between Bank of India Ltd. and its employees. He was also appointed
in the dispute between 30 banking company operations in Bombay. His award was published
in the Bombay Govt. Gazette on 09-04-1947, popularly known as Devatia Award.

Singh Award, (1947): In the United Province (the present Uttar Pradesh), there were
disputes between 40 banking companies and their workmen, which were referred to Singh,
BB, for adjudication. He gave the award on 11-03-1947, known as Singh Award.

Gupta Award, (1947): Gupta, R, was appointed as adjudicator by the State Govt. of
Bengal to settle the dispute between the Imperial Bank of India and its workmen. The award
was published in Calcutta Gazette on 04-08-1947, known as Gupta Award. Apart from
Imperial Bank, several other banks of Bengal also voluntarily adopted Gupta Award.

SK Sen Award, (22-12-1947): Bengal Govt. appointed Sen, SK to adjudicate the

dispute between Central Bank of India Ltd. and its employees in Calcutta.

Chakravarty Award, (22-12-1948): In a dispute between the Imperial Bank of India,

Bengal Circle and its employees on certain issues not covered by Gupta Award, Chakravarty,
SC, was appointed as the adjudicator.

63
 Industrial Disputes & Banking Insurance Act, 1949: Before 1949, Banking was a
State subject. Banks having branches at different places in India are subject to the provisions
of different awards at different places. It led to an anomalous position. The same Bank had
different service conditions for its employees in comparatively the same areas, e.g. Bombay
and Calcutta. By the said Act 14 of 1949, Banking along with Insurance was transferred to
the Government of India (GoI). The disputes pending before the various States Tribunals
were withdrawn. Sen Tribunal was appointed by the GoI to adjudicate upon these disputes.

KC Sen Award, (1949): On 13-06-1949, the Ministry of Labor, GoI constituted an

Industrial Tribunal consisting of three retired judges of High Court (HC) to adjudicate upon
the dispute between several banking companies and their workmen. The Tribunal was
presided over by Sen, KC, President of the Industrial Court, Bombay and a retired judge of
the Bombay HC. For the first time an All India Industrial Tribunal was constituted and
various disputes related to the banking industry were referred to it. The award was published
in the Gazette of India on 12-08-1950, referred to as Sen Award. Some of the leading banks
were so dissatisfied with the award and appealed to the Supreme Court.

On 09-04-1951, the SC, by a majority judgment, declared the Sen Award as void ab
initio for the reason that the constitution of the Tribunal offended the provisions of the ID
Act, 1947. The Court also did not go into the merits of the Award. Held that the award was
void ab initio for want of jurisdiction. In consequence of this, the disputes in the banking
industry remained unresolved. Pending hearing of the appeal against the Sen Award, some
banks implemented its provisions on scale of pay etc. When this award was quashed, they
wanted to revert to the pre-Sen Award scales of pay.

Sastry Award, (1953): On 06-01-1952, the Sastry Tribunal was constituted. The
GoI referred to it for adjudication of the disputes between various banks and their workmen,
popularly known as Sastry Award. Sastry, S Panchapagesa, was the Chairman. Tannan, ML,
and D'souza, VL, were the members. It was the most comprehensive award dealt with almost
all the service conditions of bank employees. The Sastry Tribunal gave its award in March
1953. The Unions, however, were not satisfied with its recommendations and went on an
appeal before Labor Appellate Tribunal. The Tribunal gave its decision on 28-03-1954 to the
satisfaction of the bank employees. Nevertheless, this time the bank Managements were not
happy with the decisions and appealed to the GoI, who, after obtaining the views of the RBI,

64
modified some decisions of the Labor Appellate Tribunal. The interference of the Govt.
attracted wide criticism, resulted in the resignation of the then Labor Minister VV Giri.

Bank Award Commission, (1955): The GoI appointed a bank award commission in
Sept 1954 with Raja Dhyaksha as Chairman, expired soon after his appointment. He was
replaced by Gajendragatkar, PS, Judge of the Bombay HC, later became the Chief Justice of
India. He submitted his report on 27-05-1954, based on which the GoI enacted Industrial
Disputes (Banking Companies) Decisions Act, 1955. The Sastry Award was modified by the
decision of the Labor Appellate Tribunal. It was further modified by the recommendation of
the bank award commission, which remained in force until 31-03-1959.

Desai, KT, Award, (1962): Immediately after the cessation of the Sastry Award, All
India Bank Employees Association and All India Bank Employees Federation served notice
and submitted the charter of demands. The GoI constituted a National Tribunal under the
Chairmanship of Justice Desai, Kanthilal T, Chief Justice of the HC of Gujarat on 21-03-
1960. This award was published on 30-6-1962 and was in operation till 1964. The GoI
extended the period of Desai Award until 30-06-1965 though the Unions opposed.

This well-written and balanced award was not disputed by either the Banks or the
employees. On its expiry in June 1963, the Govt. extended its life by another year. Further,
when it was to extend again in June 1964, the workmen protested against second extension
but the Desai award continued to hold the field till 30-06-1965.

2.07 Bipartite Settlements (BPS):

I Bipartite Settlement, (19-10-1966): The collective bargaining in the industries took

deep roots in the country. This resulted in bilateral relationship between the Management
and the Union as an alternative to compulsory adjudication by the Tribunals. The GoI
encouraged Bankers represented by IBA. Employees were represented by AIBEA and All
India Bank Employees Federation (AIBEF) for a negotiated settlement.

The Chief Labor Commissioner (Central), New Delhi called the representatives of the
IBA and the Union before him. The first settlement was signed on 19-10-1966 hailed as
historical landmark for the development of bilateral relationship in banking industry. It was
in force for a period of 3 years till 31-12-1968, later accepted by the National Organization of
Bank Workers (NOBW) also.

65
 II Bipartite Settlement, (12-10-1970): Signed between AIBEA representing majority
bank employees and the IBA for employers, was in operation for 3 years till 31-12-1973. It
brought certain revolutionary changes in the service conditions of Workmen and abolished
Areas determining the salaries. Thence forward for the same class of Banks, there would be
one uniform scale of pay throughout the country either in cities, towns or villages. It reduced
the span in the pay scales from 25 to 20 years and introduced CCA for the first time in Banks.

III Bipartite Settlement, (01-05-1979): Though the II BPS ended on 31.12.1973, as

National Emergency was proclaimed in India during 1974, no negotiations were held. A few
attempts though made from June 1974 to June 1975 were futile. No earnest effort was made
to reach an agreement from July 1975 to January 1977. After the emergency was lifted, III
BPS talks were resumed.

SBI also joined the IBA this time. Its majority workmen belonged to another Union
called National Confederation of Bank Employees (NCBE) participated in the discussions.
The IBA had talks with two more Unions namely National Organization of Bank Workers
(NOBW) and Indian National Bank Employees Congress (INBEC). From 1977, December
onwards, more serious efforts were made, but negotiations reached deadlock on DA issue
resolved later. The basic salaries of both the clerical and sub-staff were raised substantially.
The initial pay of clerks was raised from ₹ 170 to ₹ 325 pm with max from ₹ 550 to ₹ 1040
pm and that of sub-staff increased from ₹ 116 to ₹ 245 at max from ₹ 200 to 455.

Computer Settlement, (08-09-1983): PNB Workers Union, (UP), stated, the III BPS
signed on 01-07-1979 was in force till 31-08-1982, except issues on computerization. It was
decided to refer specific issues to the Board of Arbitrators. The authority was questioned and
was dissolved on 11-05-1981. IBA insisted to refer unresolved issues for adjudication along
with the charter of demands of IV BPS. Unions were against, as it would lead to unnecessary
avoidable unending legal complications. Finally, a settlement was reached on 08-09-1983
mainly on use of computers in the banking sector.

IV Bipartite Settlement, (17-09-1984): For the first time in the history of industrial
relations in banks, IV BPS was important embodying fundamental provisions signed with
AIBEA/ NCBE excluding BEFI. The obligations of workmen were spelt in certain routine
duties of a clerk, fixed responsibility and accountability on special assistants and permitted
other tests and interview to appoint them. With 10% hike, DA merger was 90% without

66
ceiling, allowed I class travel to clerks during daytime, extended hospitalization facility for
all diseases and revised the categorization of banks.

Principle of Fixing Scale of Pay: Industrial tribunals fixed the pay scales on industry
cum region basis. The scales of employees of an Organization were fixed after taking into
account the wages paid by similar others in the neighborhood. This principle was dealt at
length by the Supreme Court (SC) in Express Newspapers (P) Ltd, SC Report 12 (1961).

Capacity-Cum-Area Basis: As the banks branch network was spread throughout the
country, it became difficult for banks to apply strictly this principle. The Industrial Tribunals
adopted the capacity-cum-area basis to determine the scales of pay. The Banks capacity was
based on resources or working funds constitute paid-up capital, deposits and reserves. The
criteria for the area was the cost of living in different places having regard to the population
of number of people inhabited in such areas.

Classification of Banks (01-01-1986): In partial modification of paragraphs 4.128

and 4.129 of the Desai Award and clause 2.2 of I BPS and clause 2 of II BPS, parties agree
that on and from 01-01-1986, banks will be re-classified as A Class Banks having working
funds of ₹ 85 cr and above and all foreign banks. All others are B Class.

TABLE 2.14 Class-wise Coverage of Banks by BPS (₹ in cr pa)

Settlement Class of Banks covered Disbursed Break-up VI BPS outgo
Sastry Award 193 Banks of A, B, C, D class
Desai Award 68 Banks of A, B, C class
I BPS 26 A, 9 B and 10 C class Wages 389.24 950
II BPS 31 A, 10 B and 9 C class Relativity 85.00 2200
III BPS 51 A, 4 B and 3 C class 33.50 Residual 7.71 4150
IV BPS 55A and 4 B class 120.26 Computer 93.00
V BPS 54 A and 5 B class 271.15 Pension 174.00 7392
VI BPS 56 A class 481.95  481.95 12546
VII BPS 55 A class 818

V Bipartite Settlement, (10-04-1989): IV BPS expired on 30-06-1987. Pay scales

were revised at 600 index points after 90% DA merger to ₹ 900-2835. Three-tier DA
formula was introduced up to pay of ₹ 1650. Graduate increments were replaced by a fixed
allowance without DA. Allowances were raised by 15% to remain static till next BPS, while

67
in IV BPS they were fixed on 100% merger at index 332 points plus DA thereon at 536
points. BEFI agitated for better conditions against the demands of AIBEA/ NCBE. IBA,
however, succeeded to add further on computerization, customer service, discipline, improve
efficiency and productivity besides harmonious industrial relations. Banks were given to
increase in banking hours. Watch & Ward staff were debarred to join strikes.

Scales of Pay: Naturally, the workmen were interested more in scales of pay, a stable
income. The DA always fluctuated. It may rise or fall from its present high quantum do not
remain so. They were most concerned with real wages in terms of purchasing power of the
rupee but not merely monetary quantum they get every month. Consequently, based on
continuous price rise, the workmen were not satisfied with the progressive increase in the
scales of pay awarded right from the time of Sastry Award up to V BPS of 10-04-1989. Like
in any other industry, banks being no exception, the question of scales of pay was a constant
source of industrial dispute between the Management and its employees.

Doongaji, Hoshang, (1996) in his book analyzed, realizing the need for efficient and
prompt service, the Unions signed another settlement dated 29-10-1993 on mechanization,
modernization and computerization in banks.

VI Bipartite Settlement, (14-02-1995): The Supplementary V BPS expired on 31-10-

1992. VI BPS was signed between IBA and AIBEA/ NCBE/ INBEF/ BEFI, a landmark in
the history of service conditions of workmen, wef 01-11-1992. Around 8 lakh workmen from
56 banks were substantially benefited. 10.5% of the total wage bill of ₹ 3685 cr was raised
considerably due to the DA merger at 1148 points All India Average CPI for Working Class,
base 1960=100. Reversing the terms of III to V BPS, Special allowances to Clerks attracted
DA at enhanced rates. For the first time, Conveyance Allowance of ₹ 100 pm was granted to
workmen. Halting Allowance for road travel and quantum of Medical and Hospitalization
were raised substantially.

Banks were also benefited to some extent. Emphasis was laid on polite behavior
towards customers. New provisions were added under gross and minor misconduct to ensure
better discipline. Indulgence in restrictive practices were liable for disciplinary action.
Overall, VI BPS emphasized the need for industrial peace and workmen co-operation in
banks. The Unions appear to have realized to improve the standard of service substantially in
nationalized banks, to compete with Foreign Banks.

68
TABLE 2.15 Clerical Comparative Salary- Desai Award to VI BPS
Clerks Scale Minimum Maximum
Desai 140-6-182-11-281-13-307-15-322-EB- Basic 140.00 Basic 405.00
194.60 562.95
(1962) 15-337-369-18-405 DA 54.00 DA 157.95
I BPS 154-6-166-7-201-12-309-15-324-EB-15- Basic 154.00 Basic 460.00
236.72 733.24
(1966) 354-20-414-23-460 DA 82.72 DA 273.24
II BPS 170-10-200-13-226-14-240-15-285-20- Basic 170.00 Basic 550.00
277.10 876.50
(1970) 345-25-420-30-480-35-550 DA 107.10 DA 326.50
III BPS 325-20-405-25-455-30-545-35-580-40- Basic 325.00 Basic 1040.00
526.50 1648
(1979) 660-45-750-50-800-60-1040 DA 201.50 DA 608.00
IV BPS 520-30-540-35-645-65-820-55-930-60- Basic 520.00 Basic 1660.00
856.40 2655.40
(1984) 990-65-1055-70-1195-85-1250-95-1660 DA 336.40 DA 995.40
V BPS 900-50-1000-75-1300-100-1700-110- Basic 900.00 Basic 2835.00
1099 3414.89
(1989) 2140-120-2500-215-2715-120-2835 DA 198.99 DA 579.89
VI BPS 1750-100-1950-145-2530-195-3310-215- Basic 1750.00 Basic 5500.00
3955-230-4875-395-5270-230-5500(20yrs)
2184.85 6866.75
(1992) DA 434.85 DA 1366.75

TABLE 2.16 S/Staff Comparative Salary at Minimum Scale at Maximum Scale

Scale from Desai Award to VI BPS BP DA Total BP DA Total
Desai 86-1-105-EB-1-108-2-112 86.00 44.72 130.72 112.00 58.24 170.24
I 92-1-126-EB-2-130-3-145 92.00 80.96 172.96 145.00 127.60 272.60
II 116-3-131-4-151-5-181-6-193-7-200 116.00 97.44 213.44 200.00 168.00 368.00
III 245-7-280-10-330-12-390-15-435-20-455 245.00 191.10 436.10 455.00 354.90 809.90
IV 430-10-450-14-492-16-540-20-680-25-730-30-790 430.00 301.00 731.00 790.00 553.00 1343.00
V 815-20-835-25-860-30-980 815.00 180.19 995.19 1510.00 333.86 1843.90
VI 1600-40-1640-50-1690-60-1930-70-
1600.00 397.60 1997.60 3020.00 750.47 3770.50
BPS 2210-80-2450-90-2720-100-3020

TABLE 2.17 Time Gap in days Between Settlements & Arrears in Months Qtm ₹ Cr
BPS From To Gap Signed Wef arrear Load% Qtm Staff
I 01.01.1966 31.12.1968 291 19-10-1966 01-01-1966 10 8 — lakhs
II 01.01.1970 31.12.1973 284 12-10-1970 01-01-1970 10 8 — NA
III 01.09.1978 31.08.1982 334 01-08-1979 01-09-1978 12 — 30 3.50
IV 01.07.1983 30.06.1987 78 17-09-1984 01-07-1984 16 14.50 120 5.45
V 01.11.1987 31.10.1992 526 10-04-1989 01-11-1987 18 14.50 252 6.50
VI 01.11.1992 31.10.1997 835 14-02-1995 01-11-1992 28 10.50 388 6.83
VII 01.11.1997 31.10.2002 791 01-01-2000 01-11-1997 29 12.25 818 6.52
VIII 01.11.2002 31.10.2007 943 01-06-2005 01-11-2002 32 13.25 2200 7.57
IX 01.11.2007 31.10.2012 903 27.04.2010 01-11-2007 30 17.50 5200 7.52
X 01.11.2012 31.10.2017 900 25.05.2012 01-11-2012 30 15.00 4725 8.50

VII Bipartite Settlement, (27-03-2000): resulted in 12.25% upward revision of pay,

allowances and other conditions of service binding till 31-10-2002. It hardly contained any

69
new meaningful or effective provisions on IBA demands. As per Narasimham Committee II
norms, Banks wanted reclassification of banks based on financial strength.

Industry level BPS was confined to Basic and DA only. Large-scale mechanization
was left to the individual Banks. Weak banks UCO, United and Indian Banks paid arrears in
phases. Widespread computerization was agreed. No second option for pension. Banks had
to rest content with reiterating their managerial rights on business hours and staff deployment
and a 'comfort statement' for three weak banks.

TABLE 2.18 Load Distribution —Comparison Workmen & Officers VII BPS
Workmen VII BPS % Officers Workmen VII BPS % Officers
6.510 BP+DA 7.875 0.145 Hospitalization —
7.462 0.657 HRA 0.349 8.349 0.198 Special Allowances —
0.295 CCA 0.125 0.050 Additional Stagnation —
1.813 PF 1.854 0.080 Frequency Stagnation —
1.445 0.516
3.343 1.253 Pension 1.196 3.385 0.032 Part Time staff —
0.277 Gratuity 0.335 0.097 Washing allow —
0.130 Others:Medical aid 0.261 0.176 Transport allow —
0.025 Hill & Fuel allow 0.005
0.512 FPP 0.250 12.250 12.250

TABLE 2.19 Relativity between Clerk & Sub-staff VII BPS

Award/ At Minimum At Maximum
Settlement Clerk ₹ Sub-staff Ratio Clerk ₹ Sub-staff Ratio
Sastry 85 40 100:47 280 72 100:26
Desai 140 86 100:62 405 112 100:28
I BPS 154 92 100:60 460 145 100:32
II BPS 170 116 100:68 550 200 100:36
III BPS 325 245 100:75 1040 455 100:44
IV BPS 520 430 100:83 1660 790 100:48
V BPS 900 815 100:91 2860 1520 100:52
VI BPS 1750 4600 100:91 5500 3020 100:55
VII BPS 3020 2750 100:91 8980 5000 100:56

TABLE 2.20 VII BPS Pay Scales (Merger at 1684 points) 20 years span
Clerk 3020–135/3–3425–225/3–4100–320/4–5380–340/3–6400–380/4–7920–680/1–8600–380/1–8980
S/Staff 2860–75/2–3010–90/2–3190–110/3–3520–130/4–4040–150/3–4490–170/3–5000

TABLE 2.21 Stagnation Increments TABLE 2.22 DA Pay

each Once in DA per slab 0.24%+ Pay Up to ₹ 7100
Clerks 5 @ ₹ 380 /- 3 years 0.20%+ Up to ₹ 11300
Sub staff 5 @ ₹ 170 /- 2 years 0.12% For balance

70
TABLE 2.23 CCA Clerks S/staff TABLE 2.24 House Rent Allowance
Center Min Max Max No Min/Max >12 lakh 2-12 lakh <2 lakh
Higher 4% 125 250 175 Clerks 8.5% 7.5% 6.5%
Lower 3% 100 200 125 Sub-staff 8.5% 7.5% 6.5%

TABLE 2.25 Other Items

Road Mileage ₹ 1.20 per Km (from 27.03.2000)
Halting allow Clerks— 190,145,125;Sub Staff 150,100,80
Hill & Fuel Allowance— 10%Max 750, 6% Max 260, 4% Max 220
Effective Dates Description of Pay & Allowances
1.11.1997 Basic Pay & DA, PTS on fixed wages 450 & 740pm
1.04.1998 PF @10% of 85% of pay, Pension, Special allowances
HRA,CCA, PF @10% of Pay, Transport allow 65pm, Washing allow 50pm
1.11.1999
Medical aid 1000 & 1200 pa Hospitalization & all others Hill & Fuel allow
27.03.2000 Halting allowance
01.04.2000 Split duty 75 pm & 60 pm Cycle allow 45 pm & 35 pm
Pro-rata hospitalization reimbursement for part time employees on scale wages.

TABLE 2.26 Posts & Special Pay—Sub-staff

Telephone operator 108 Asst.HC 4 clerks & above 232 Sub-staff
Relieving Telephone Optr 56 Cashier in charge 351 Cyclostyle Machine Optr 145
Audit clerk—Category A 182 HC-A Units 5 clerks & abov 460 Liftman 178
Audit clerk—Category B 343 Units of 4 clerks & above 351 Relieving liftman 107
Computist 213 HC-B Units 5 clerks & abov 522 Cash peon 178
Telex Operator 269 Units of 4 clerks & above 415 Watchman/W-cum-peon 178
Teller category A 351 HC Category C 585 Armed Guards 300
Teller category B 587 Category D 648 Bill collectors 300
Punch card operator 298 Category E 906 Daftary 352
Accounting Machine Optr 460 Special Assistant 971 Head Peon 406
IBM/ICT Machine Optr 522 Agricultural Assistant 258 A/c Plant helper 816
Stenographer 522 Computer operators 633 Electrician 816
Head clerk 522 Encoder operators 440 Driver 923
Asst.HC 5 clerks & above 331 ALPM/AEAM operators 540 Head Messenger IOB 690

VIII Bipartite Settlement, (01-11-2005): IBA for the first time put forth 18 issues on
productivity and profitability due to Basel norms, Capital Adequacy and fierce competition
from other hi-tech Bankers. It inter-alia included unlimited digitization, individual bank-wise
agreements and doing away restricted practices, which the Unions rejected.

On 23-11-2004, a total wage hike 13.25% of ₹ 2200 cr was signed, of which ₹ 1288 cr
pa for Workmen and ₹ 912 cr pa for Officers, 1% more than the last revision wef 01-11-2002.
The average salary increase for staff worked out to ₹ 2225 while that of the officers ₹ 3650.
The highlights were one more stagnation increment, full DA neutralization at all the scales of
pay and restoration of pension payment to the agreed norms. Understandings were reached

71
on the workmen mobility. Employee Unions agreed for rotational transfer of clerical staff
within 100 km, to repatriate back after three years, for which, they were compensated ₹ 400
per month extra. The existing HRA and CCA were protected.

Banknet India, reported, the revision improved the pay structure of about 7,57,000
for workmen and officers in 27 PSBs from 01-11-2002 to 30-10-2007, with total annual
outlay of ₹ 19000 cr against earlier 12.25 % hike in VII BPS and 10.5% in VI BPS.

Financial Express, (2005), stated, the IBA included pension costs in the revised
wages of the employees. The move was to benefit about 9000 employees retired during 2002
to 2005. As per estimates, there was an additional outflow of ₹ 2200 cr per annum due to
13.5% wage hike announced in 2004, December.

IX Bipartite Settlement, (27-04-2010): After long negotiations for over 2½ years, the
highest increase was settled at 17.5% over the wage bill as on 31-03-2007 with extra outflow
of ₹ 2577 cr pa. DA was 15% per additional slab after merger at 2836 point of price index.
VII stagnation increment, regularization of part-time employees on scale wages, HRA at rural
areas, higher transport allowance, improved LFC, ratio between the first and the last stage of
sub-staff pay, Special Pay for enlarged duties were some add-ons for Unions.

X Bipartite Settlement, (01-11-2012): IBA reiterated to introduce Cost To Company

(CTC) concept, Performance linked Variable Pay, keep Officer wage revision for Scale IV
and above outside BPS, replacement of hospitalization with new Health Insurance scheme,
conduct of departmental and judicial proceedings at a time etc. UFBU rejected the IBA
proposals rather demanded DA merger, Compassion appointments, 5-day banking, more %
load on pay components excluding other costs of LFC, Mediclaim, Pension and retirement
benefits from the load.

Finally, 15% increase over pay slip cost as on 31-03-2012 was settled for total ₹ 4725
cr split into workmen ₹ 2270 and officers 2455 cr benefiting 6 lakh employees. Highlights of
X BPS include shift to pay slip basis, New Scales linked to Index Point 4440, DA merger up
to 4440 points i.e. 401 slabs the highest, 2nd and 4th Saturdays holidays and improvements on
various other components with many exclusions. The details are presented in Chapter V on
data analysis. The X BPS due for renewal is in force till finalization of next XI BPS agreed
to be effective from 01-11-2017, under negotiations.

72
 CHAPTER II — References

 Adam Smith, Principles, (Second Edition), Chapter 5 pp 103

 Adam Smith (1723 – 1790), Wealth of Nations, p.27
 Adhikari, Anand, (2018), Merger of Axis Bank is not the way forward for banking
industry, Business Today, Retrieved 2018, April 12, from https://www.businesstoday.in/
sectors/banks/axis-bank-merger-nomura-kotak-mahindra-shikha-sharma-rbi-
npas/story/274728.html
 Adhikari, Anand, (2017), PSU banks merger: Despite bold SBI merger, creating new
large banks won’t be easy, Business Today, Retrieved 2017, September, 10, from
https://www.businesstoday.in/magazine/features/bold-merger-sbifive-associate-banks-
government-four-five-large-psbsbank-consolidation/story/258704.html
 All Banking Update, (2017, Nov 19), Staff Strength in Public Sector Banks, Retrieved
from http://www.allbankingupdate.com/staff-strength-in-public-sector-banks-as-on-31-03-2017/
 Ambedkar, BR, Who were The Shudras? Publishers Thacker & Co Ltd, Bombay, (1946),
Digital Library of India Item 2015.527572, Retrieved from https://archive.org/
details/in.ernet.dli.2015.527572
 Apastamba Dharmasutra, Yrogana II, Patala II, Khand 28- 2.3
 Bank Disputes Award (1950), Economic Weekly, 1950, August 26, pp. 831-833,
Retrieved fromhttp://www.epw.in/system/files/pdf/1950_2/33/bank__disputes__award.pdf
 Banking in India, Retrieved from https://en.wikipedia.org/wiki/Banking_in_India
 Banking Theory (1995), Sujatha Law Publications, pp 1-3
 Banknet India, Retrieved from http://www.banknetindia.com/index.htm
 Bipartite Settlements I to X
 BloombergQuint (2018, Oct 08), Bank Unions protest against PSU bank mergers, PTI,
Retrieved from https://www.bloombergquint.com/markets/bank-unions-to-protest-against-
psu-banks-merger-decision-tues
 Brihaspati Smriti- Ch. XVI-9, Ch. XVI-14, 15, 16
 Business Line, (2018, Sept 25), A bank merger that will not pay off, Prasenjit Bose,
Retrieved from https://www.thehindubusinessline.com/opinion/a-bank-merger-that-will-
not-pay-off/article25040612.ece
 CNBC TV18, (2018, August 13), Indian Banks require at least $ 55 billion to meet Basel
III norms, Retrieved from https://www.cnbctv18.com/finance/indian-banks-require-at-
least-55-billion-to-meet-basel-iii-norms-says-fitch-ratings-506401.htm
 Columella, L. Iunius Moderatus, (ca. 4–70 CE), Columella and His Latin Treatise on
Agriculture- Greece and Rome, Forster, ES, 1950, 19:123–128, DOI: 10.1017/
S0017383500011013, First published:2012, October 26, Katharine T. von Stackelberg,
https://doi.org/10.1002/9781444338386.wbeah06080, Last modified on 2016, February
25, by Silke Diederich, DOI: 10.1093/obo/9780195389661-0203
 Committee on Fair Wages, 1948
 Daman, Sunil (2017), Indigenous Banking in ancient India, Hindu 2.0, Retrieved 2017,
Sept 9, from http://www.patheos.com/blogs/hindu2/2017/09/indigenous-banking-in-ancient-india/

73
 Desai, KT (1962) Award
 David Ricardo (1772-1823), Theory of Wages
 Doongaji, Hoshang (1996), Handbook of Service Condition for Workmen in Banks,
(1996) Jaico, Bombay, 8th edition, pp 6-16.
 Economic Times, (2018, Dec 26), Bimal Jalan panel on RBI reserve, Ray, Atmadip,
Retrieved from https://economictimes.indiatimes.com/industry/banking/finance/banking/
former-rbi-governor-bimal-jalan-to-head-economic-capital-framework-
committee/articleshow/67259692.cms
 Economic Times, (2018, July 28), Perform and get paid: Public Sector Banks plan to
link pay with performance, Retrieved from //economictimes.indiatimes.com/articleshow/
65173510.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
 Economic Times, (2017, December 20), Capital adequacy under Basel III, Retrieved
from https://economictimes.indiatimes.com/markets/stocks/news/paathshala-capital-
adequacy-under-basel-iii/printarticle/62150112.cms
 Economic Weekly, (1950), Bank Disputes Award, 1950, August 26, pp. 831-833,
Retrieved from http://www.epw.in/system/files/pdf/1950_2/33/bank__disputes__award.pdf
 Federation of Bank of India Staff Unions, Mumbai, © 2015, Foboisu, Retrieved from
http://www.federationboisu.org/bip_set.php
 Fick, Richard, The Social Organization in North East India in Buddhist time, translated
by Maitra, S, Publishers University of Calcutta 1920, Retrieved from https://archive.org/
stream/socialorganisati00fickuoft/socialorganisati00fickuoft_djvu.txt
 Financial Express 2005, April 22.
 FirstPost, (2018, June 05), NPA explained in charts, Kiran Kadam, Retrieved from
https://www.firstpost.com/business/banks-bad-loans-pile-crosses-rs-10-lakh-crore-up-rs-1-
39-lakh-crore-in-march-quarter-the-npa-mess-explained-in-7-charts-4496431.html
 First Post, (2018, July 16), FinMin may seek extension of deadline from Sebi for SBs, PTI
report, Retrieved from https://www.firstpost.com/business/finmin-may-seek-extension-of-
deadline-from-sebi-for-psbs-on-minimum-public-float-norm-4748861.html
 Gairola, Kautilya's Arthashastra, pp 387-391
 Gautam Dharamasutra, Ch, 11, 23-24
 Government of India, (2018, November 26), Public Sector Banks, Pub. Banking
Division, Department of Financial Services, Ministry of Finance, Retrieved from
https://financialservices.gov.in/banking-divisions/public-sector-banks
 Gupta, RD (1990), Keyne's Post Keynesian Economics, Kalyani Pub., IV Ed., pp 316-317
 Hajela, TN (1991) – History of Economic Thought, Shivalal Agarwala & Co, 1991, Irish
Booksellers, Portland, ME, USA, pp 9,
 Hajela, TN (1991), op.cit, pp 11, 13, 22, 25, 29, 40, 97, 134, 556
 History of Bank Employee Movement—Bipartite Settlements, BEFI, Chapter XIII, pp.307-
338, Retrieved from http://www.befi.in/lib.php, http://www.befi.in/books/-ch-13.pdf
 History of Banking, Retrieved from https://en.wikipedia.org/wiki/History_of_banking
 History and Development of Indian Banking System, Chapter 3, p 61, Retrieved from
http://shodhganga.inflibnet.ac.in/bitstream/10603/94853/11/11_chapter%203.pdf

74
 IBA Bulletin Vol XXIII No.3 p. 241, 244-245
 IIBVision (2006), Publishers Indian Institute of Bankers, issue 2006, February 05
 Imandar, Tamanna, (2018), Fear of Banking Sector Logjam has abated, Bloomberg
Quint, Retrieved 2018, April 16, from https://www.bloombergquint.com/business/2018/
04/16/fear-of-banking-sector-logjam-has-abated-says-niti-aayogs-rajiv-kumar
 Indian Labor Conference, IV Session
 Industrial Disputes & Banking Insurance Act 1949
 Jai, (2017), Why merger of Public Sector Banks not easy, Bankersclub, Retrieved 2017,
August 30, from http://bankersclub.in/why-merger-of-public-sector-banks-is-not-easy/
 Jai, (2017), Public Sector Banks to raise capital from market by March 31, Bankersclub,
Retrieved 2017, December 03, from http://bankersclub.in/public-sector-banks-raise-
capital-market-march-18/
 Joshi, Malvika, Bank consolidation: 5 mergers from the past, Livemint, Retrieved 2017,
August 24, from https://www.livemint.com/Industry/Hyd4eUUAGiudpodUZgyzgM/Bank-
consolidation-5-mergers-from-the-past.html
 Jules Backman, (1959), Wage determination-an analysis of wage criteria, New York
University, D.Van Nostrand Co, Inc. Princeton, New Jersey, 1959, p.3, Retrieved from
https://www.questia.com/read/8561235/wage-determination-an-analysis-of-wage-criteria
 Keynes, John Maynard, The General Theory of Employment, Interest, and Money (New
York: Harcourt, Inc., 1964); John Maynard Keynes, A Tract on Monetary Reform
(London: MacMillan, 1923); Consumer Price Index, All Urban Consumers (CPI-U),
Economagic; Michael Bruno and William Easterly, Inflation Crises and Long-Run
Growth, Policy Research Working Paper, The World Bank, September 1995.
 Keynes, John Maynard Economics, Wage Flexibility, Chapter 19 of the General Theory,
Retrieved from http://socialdemocracy21stcentury.blogspot.in/2014/01/the-general-theory-
chapter-19-changes.html
 Kumar, S, and Sreemulu, M, Employees' Productivity and Cost, Reserve Bank of India,
Retrieved from https://www.rbi.org.in/scripts/BS_VIEWContent.aspx?ID=1917
 Majumdar, RC, Ancient Indian Education Religion and Philosophy of the Veda and the
Upanishads, Vedic Age Edition.
 Malyadri, P, Sirisha, S, (2015), Trends in Indian Banking Industry, Journal of Business
and Financial Affairs, Retrieved 2015, May 30, from https://www.omicsonline.org/open-
access/an-analytical-study-on-trends-and-progress-of-indian-banking-industry-2167-0234-
1000136.php?aid=52875
 Manusmriti, Ch VIII, 15, Ch. XII, 3-4
 Mercantilists, (first published 1968), The Theory of Wages in Later English
Mercantilism, by Richard C. Wiles, The Economic History Review, New Series, Vol. 21,
No. 1. 1968, April, pp. 113-126, Published by: Wiley on behalf of the Economic History
Society, DOI: 10.2307/2592207, Stable URL: http://www.jstor.org/stable/2592207
 Minimum Wages Act, 1948
 Moneycontrol, (2018, August 13), Oulook on Indian Banks weak capital strengths,
Retrieved from https://www.moneycontrol.com/news/business/economy/outlook-on-
indian-banks-to-remain-negative-on-weak-capital-strengths-high-npas-fitch-ratings-
2836991.html

75
 Naradsmriti, Ch. VI, 2, 3
 Narasimham, M (1991, November 16), Committee Report on the Financial System,
1991, Standard Book Company, – Finance, 1992.
 Narasimham, M (1998, April 23), Report of the Committee on Banking Sector Reform,
Mumbai, Reserve bank of India.
 Nayak, PJ (2014), Committee report on Bank Boards, Business Today, Retrieved 2018,
April 13, from https://www.businesstoday.in/sectors/banks/bank-board-bureau-chairman-
bhanu-p-sharma-public-sector-banks-npa/story/274803.html
 Ojha, Ashwen,(2017), Post merger with SBI, Discontent brewing among associate bank
staff, Business Line, Retrieved 2017, Sept 08, from https://www.thehindubusinessline.com/
money-and-banking/post-the-merger-with-sbi-discontent-brewing-among-associate-bank-
staff/article9852086.ece
 Payment of Wages Act, 1936
 Physiocrats (1759), Quesnay's Tableau Économique, Retrieved from www.biu.ac.il/
soc/ec/students/teach/814/data/t1.doc and Zera, Economic Theories, The Physiocrats
Wealth and Income, Retrieved from http://www.economictheories.org/2008/11/
physiocrats-wealth-and-income.html
 PNB Workers Union (UP), Service conditions of Bank Employees-Historical Achievements
 Ramya, KR and Raghurama A (2016), Women participation in Indian Banking sector,
Issues and Challenges, IJSR Vol5 Issue2, Retrieved 2016, February, from
https://www.ijsr.net/archive/v5i2/NOV161540.pdf
 Reserve Bank of India Act, 1934
 Reserve Bank of India, (2008), Efficiency, Productivity And Soundness of The Banking
Sector, RBI, Retrieved 2008, September 04, from https://rbi.org.in/scripts/publications
view.aspx?id=10496
 Sastry, SP, Award (1953)
 Shah, KT, (1954), Ancient Foundations of Economics in India, publishers Vora & Co,
Bombay, (1954), Retrieved from https://archive.org/stream/AncientFoundationsOf
EconomicsInIndia/AncientEconomicsIndia_djvu.txt
 Shukraniti, Ch. II lines, 799 805-806, 807, 808, 830, 831, 836 to 839 Ch. V, 112-113
 Shukranitisara, Ch. IV Part, V lines 517-520
 St.Thomas Aquinas (1225-1274 Ad) on Scholasticism, Medieval Economics
 Sriram, MS, Governance reforms in banks: The Nayak Committee Report, Business
Today, Retrieved 2014, May 20, from https://www.businesstoday.in/opinion/columns/m.-
.s-sriram-on-governance-reforms-in-banks/story/206375.html
 Welingkar (2011), Wage and Salary Administration, Retrieved 2011, July 21, from
https://www.slideshare.net/WelingkarDLP/hrm2-chap6wages-salary
 Yadav, Shashi and Garima, (2015), Employee Productivity in Indian Banks: A
Comparative Analysis, Pacific Business Review International, (2015) Vol 8, Issue 5, Nov,
Retrieved from http://www.pbr.co.in/November2015/2.pdf; https://www.omicsonline.org/
ArchiveBSFA/currentissue-business-and-financial-affairs-open-access.php
 Yajurveda, Ch. III, 47

76