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The IDBI Bank management is learnt to have invited the employees association for wage revision talks on Monday and Tuesday next. This follows the broad understanding it managed to reach with officers in the matter earlier this month.
Trade union sources said they are hopeful of positive results on pending pay revision for the settlement period 2012-17 so that a joint note can be signed at the earliest.
‘Bridging of gaps’
In a communication to officers, the management said that it has been holding a series of meetings and discussions with representatives of the officers and employee associations.
One such meeting was held on March 8 and 9 with representatives of the All India IDBI Officers Association and the IDBI Officers Organisation in Mumbai.
All matters concerning the pending pay revision were discussed in detail, and the bank and the associations have been able to ‘bridge many gaps on certain aspects of the pay revision’ during the two-day meeting. “There are still some matters revolving around the treatment of certain components of the pay revision concerning all employees, which the bank would continue to discuss with the associations/unions,” the communication said.
‘Threat of privatisation’
The bank went on to acknowledge the ‘constructive approach of the representatives of the union/association’ in the ongoing discussions/negotiations on wage revision.
Meanwhile, the sources are concerned over a statement in the Lok Sabha by Shiv Pratap Shukla, Minister of State for Finance, in response to a question whether the government had any proposal to merge public sector banks into four or five big banks.
In his reply, the minister said that the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980 provide that the Centre, in consultation with the Reserve Bank, may make a scheme for, among other things, the amalgamation of any nationalised bank with any other nationalised bank or any other banking institution.
Alternative mechanism
With a view to facilitating consolidation among nationalised banks to create strong and competitive banks, the Centre has put in place an alternative mechanism as approval framework for proposals to amalgamate public sector banks.
The minister clarified that there was currently no proposal before the alternative mechanism for its consideration. Recapitalisation of public sector banks to the tune of ₹2.11 lakh crore over the current and next financial years has commenced.
The 2016-17 Budget had announced that the process of transformation of IDBI Bank had started and that the Centre would consider the option of bringing down its stake below 50 per cent.
The Banks Board Bureau has already sought specific mandate on consolidation of public sector banks, asset quality resolution, and reworking of the Articles of Association of IDBI Bank.
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