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Historic Profits for PSBs: Are the Branch Level Bankers Left Behind?
Despite record profits achieved by Public Sector Banks(PSBs), employees face mounting stress, stagnant wages, unmet demands, and work-life imbalance. While the workforce drives this success, they see little benefit, grappling with unfair pay practices, growing violence, and the looming threat of privatisation.
Author: Abhivad
Published: December 4, 2024
Indian banks have recorded unprecedented profitability, with public sector banks (PSBs) achieving their highest profits in decades. However, behind the stellar financial performance lies a workforce grappling with severe challenges, including intense work pressure, stagnant wages, and unmet demands.
Profits Soar, But Workforce Struggles Persist
Finance Minister Nirmala Sitharaman on 03 December 2024 informed the Lok Sabha of record-breaking profits: ₹1.41 lakh crore in 2023-24 and ₹85,520 crore in the first half of 2024-25. These numbers underscore a sector-wide resurgence. Yet, many bank employees question the disparity between these profits and their own working conditions.
Read More: Banking Laws (Amendment) Bill 2024 Passed in Lok Sabha: What Are The Changes Brought In?
"The pressure to meet business and social security scheme targets is immense. Despite these profits, we are burdened with long hours and no meaningful incentives", a senior bank clerk from a leading PSB shared their opinion with Kanal.
Work-life Imbalance and Stress
Bankers report worsening work-life balance, with many citing extreme stress and long hours. Despite demands for a five-day workweek, the promise remains unfulfilled. Employees complain of mounting target pressures, both for business growth and implementing government-mandated social security schemes.
"Instead of enjoying the benefits of record profitability, we face an unmanageable workload. The absence of a five-day week only adds to our stress," another banker from Bank of Baroda told Kanal.
Wage Issues and Pay Disparity
The 12th Bipartite Settlement (BPS) brought only a 17% wage increment for bankers, a figure deemed insufficient by bankers. A significant portion of this increment was allocated to the special pay component keeping the load factor only at 3%, offering little tangible improvement in salaries.
(An anonymous banker expresses resentment on platform X.)
Pay disparities further fuel resentment. Desk staff endure the bulk of workload and target pressures, while Performance-Linked Incentives (PLI) primarily benefit senior executives.
Unions, including the All India Bank Employees Association (AIBEA) and the All India Bank Officers’ Confederation(AIBOC), have criticised the PLI system as a scheme that benefits less than 5% of the workforce, excluding field-level staff who drive business, warning it could cause division and hinder workforce harmony.
AIBOC’s letter to the DFS noted, “This selective approach... is inequitable. It risks fragmentation of the workforce and impairs collective growth and harmony.”
(Another post on platform X criticising the PLI scheme.)
Threat of Violence
Another pressing issue is the increasing violence faced by bankers. With growing customer frustrations, incidents of verbal and physical abuse are on the rise. Unions have called for legislation to protect bank employees performing their duties.
On 16 November 2024, bank unions organised statewide strikes in Maharashtra, highlighting the urgent need for such protective measures. "Bankers are being assaulted for delays in services, often caused by systemic inefficiencies beyond their control," said Devidas Tuljapurkar, the all India Joint Secretary of the AIBEA responding to Kanal.
The Shadow of Privatisation
Despite record profits, the looming threat of privatisation adds to the workforce’s anxiety. The government’s decision to privatise IDBI Bank and potentially Nainital Bank has stirred apprehension among employees, who fear for job security and working conditions. In addition to these concerns, critics also argue that the profit figure could have been significantly higher if banks had prioritised recovery over write-offs.
While Indian banks celebrate historic profits, the struggles of their workforce remain a stark contrast. Bankers face stress, stagnant wages, and unmet demands, even as they are lauded for their contributions to the sector's turnaround. Unions and employees continue to push for reforms, including a five-day workweek, better wages, and protections against violence.
The government and the PSB managements must address these concerns to ensure that the industry's success translates into tangible benefits for its backbone—the ordinary bankers.