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PNB likely to quit IBA wage packages to retain talent

punjab-national-bankPlanning to move out of the conventional Indian Banks Association (IBA)-led wage settlement, the state-run Punjab National Bank (PNB) is contemplating to adopt its own remuneration system to retain talent.

“The bank has set up an internal committee consisting of general managers which is studying the feasibility of a new wage structure for the bank,” said PNB’s Managing Director and Chief Executive Usha Ananthasubramanian.

She further added, “The times are changing and we have to change with the time. We can’t be saying that we will follow the same old things. We are moving into an era where we need to recognise performance and give remuneration to manage talent.”

The official, however, said it is an initial thought and nothing has been finalised so far.

“We will have to deliberate at the board level. We’ve formed an internal committee of general managers to examine what would be pros and cons and they are working on it,” she added.

Currently, IBA, on behalf of its member banks, negotiates wage settlement with employee unions and officers’ associations.

The wage settlements are applicable for five years.

Bank employees were given 15 per cent increase in salary and allowances in the last wage settlement fixed last November.

The wage revision was effective from November 1, 2012 and will be valid till 2017.

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