CSB Bank Staff Face Decade-Long Wage Stagnation Amid Industry-wide Revisions

Employees of CSB Bank have endured a decade without a pay revision, a stark contrast to their counterparts in other banks who have benefited from two wage settlements in the same period. The last wage revision implemented at CSB Bank was based on the 10th Bipartite Settlement, which expired in 2017. Since then, management has refused to update the pay structure, leaving the bank’s workforce increasingly frustrated.

Lack of Pay Revision Since 2017

As of August 2024, CSB Bank's employees are still being compensated according to the terms of the 10th Bipartite Settlement, signed on 25 May 2015, which expired on 30 October 2017. Meanwhile, the banking industry has moved forward with the 11th and 12th Bipartite Settlements, signed on 11 November 2020, and 8 March 2024, respectively. However, despite remaining a member of the Indian Banks' Association (IBA), CSB Bank's management has not implemented these subsequent settlements.

Impact of Management Decisions

The stagnation in wage revision has been exacerbated by the changes in the bank's ownership and management approach. In 2018, FIH Mauritius Investment Ltd, backed by Fairfax Financial Holdings, acquired a 51% stake in the then-Catholic Syrian Bank, leading to significant changes. The bank was rebranded as CSB Bank in 2019, and the employment culture began to shift.

Of the current 7,863 employees at CSB Bank, only about 1,000 remain on regular employment terms under IBA guidelines, including roughly 350 workmen. The majority of new hires are on Cost-to-Company (CTC) contracts, designated as officers, thereby excluding them from collective bargaining rights. Sources indicate that some contract workers earn as little as ₹17,500 per month.

Employee Frustrations and Struggles

The CSB Staff Federation has been vocal about the challenges faced by employees due to the lack of wage revision. A leader from the Federation, speaking anonymously, highlighted the mass exodus of employees following the Fairfax acquisition, with many opting for voluntary retirement or other career opportunities. "It is difficult to sustain without timely pay revision, in these times of high inflation and price rise," the leader remarked.

The Federation has long demanded that the bank implement the latest Bipartite Settlements. However, the management maintains that it did not authorise IBA to represent CSB Bank in the talks, and instead, is pushing for an internal settlement—a move seen by many as an attempt to weaken workers' collective bargaining power.

(A snippet from CSB bank’s annual report for the year 2023-24. )

Growth Amid Employee Discontent

Despite these internal struggles, CSB Bank's financial reports paint a picture of growth. According to the bank’s 2023-24 annual report, CSB Bank opened 76 new branches, bringing the total to 779 nationwide. The report also notes a 33% increase in total income, an 11% rise in net interest income, and a 4% increase in profit after tax for the financial year. Furthermore, the bank’s Capital Adequacy Ratio stands at a healthy 24.47%, with a Net NPA Ratio of 0.51%.

However, the contrast between the bank's financial success and the lack of wage revision for its employees is stark. While the salaries of top-level officials, including the recent revision of the Managing Director & CEO Mr. Pralay Mondal’s pay from ₹2.3 crore to ₹2.42 crore per annum with effect from 01 April 2023, continues to increase, the majority of the workforce remains under-compensated.

(An excerpt from an internal circular indicating the salary revisal of MD & CEO, CSB bank) 

The ongoing disparity in pay between CSB Bank's senior management and its regular employees has led to growing unrest among the staff. As the banking industry moves forward with new wage settlements, the lack of a similar update at CSB Bank is a source of significant concern for its employees, who are struggling to keep pace with the rising cost of living.