Public sector banks, which have stood tall even as the global slowdown hit the financial sector, are set to provide a 20-25 per cent hike in pay packages to its 7.5 lakh employees.
Finance ministry sources said that an announcement to this effect would be made soon.
“Talks have reached the final stages and a final announcement would be made at the earliest,” an official said.
All state-owned banks have managed to significantly boost their businesses. Bankers said that most banks have already made provision for the increased outflow on account of increase in pay. Depending on the size of the banks, the additional outflow could be between Rs 200 crore and Rs 600 crore.
The trade unions have also demanded that pension benefits be given to all employees.
The move could mean an additional cost of Rs 6,000 crore for state-owned banks. The managements and trade unions are yet to sort out how the additional burden would be sourced and shared.
Banks are also set to embark on an aggressive recruitment drive. “With the implementation of the new wage scheme, the new recruits may also get pension benefits,” the source added.