Why should IBA hurry BPS ? The X BPS is due from 01.11.2012. If promptly implemented on 01.11.2012 first revised salary should have been paid on 01.12.2012. However we are sure that BPS will be settled and arrears will be paid only by April -May 2015. i.e almost 30 months delay. Let us see how much banks will save by delaying BPS. Even at 11% each employee will get average increase of Rs.3000/- at beginning. This will increase gradually taking into consideration of DA increase and also may be more.. However for calculation let us keep Rs.3000/- constant for 30 months. If wage increase was started from 01.12.2012 and employee had invested that amount in RD for 30 months he would have got maturity value of Rs.102500 i.e interest of Rs12500. If bank saves interest of Rs.12500/- per employee for 8 lakh bank employees this amounts to 800000 X 12500= One thousand crores. Actually this will be more because many employees will get monthly increase more than Rs.3000/-. Out of the total wage cost of Rs.3500/- projected at 11% increase banks will get back 50% of it by saving interest. So we can say that IBA is only offering 5 -7% increase. If my above calculations are wrong please explain. Banks will collect interest for every rupee it lends and also needs to pay interest on deposits. As IBA has agreed to pay wage increase from 01.11.2012 banks are keeping employees money in custody from 01.11.2012. and may pay later. It needs to pay interest until it credits such amount to employees account.
Posted on: Fri, 24 Oct 2014 06:00:10 +0000