PLI Scheme for Senior Officers in PSU Banks Put on Hold

 There is a lot of talk about the new PLI scheme that banks have created for senior personnel. A few days ago, UFBU wrote to IBA requesting that banks delay the introduction of the new PLI scheme. The IBA has now been directed by the Chief Labour Commissioner to request that banks halt the new PLI Scheme. The new PLI scheme, according to bank employees, is discriminatory. Scale IV and higher officers will receive nearly double their wage, while Scale 1, Scale 2, and Scale 3 officers will receive the standard PLI.

Grade	PLI Ceiling as % of Annual Basic Pay
EDs and MDs of Nationalised Banks, DMDs, MDs, and Chairman of SBI	100%
Scale VII and Scale VIII	90%
Scale V and Scale VI	80%
Scale IV	70%

Please refer to the letter No. Nil dated 26.03.2025 of UFBU addressed to you, endorsing a copy thereof to this office along with others in connection with conciliation proceedings dated 18th and 21st March 2025 in File No. 21(17)/2025-IR of CLC(C). The contents of the letter of UFBU are self-explanatory.

Read More

RBI imposes Penalty on this PSU Bank for irregularity in Savings Accounts

 

For not adhering to certain RBI regulations, Punjab & Sind Bank has been fined ₹68.20 lakh by the Reserve Bank of India (RBI). The penalty was imposed in accordance with Sections 47A(1)(c), 46(4)(i), and 51(1) of the Banking Regulation Act of 1949.

Based on the bank's financial status as of March 31, 2023, RBI carried out a Statutory Inspection for Supervisory Evaluation (ISE 2023) in 2023. 

 

The following areas showed non-compliance with RBI's instructions during the inspection: 

 Failure to disclose significant Exposures: In order to track significant common exposures across banks, the bank failed to disclose borrowers with non-fund-based exposure of ₹5 crore and above to the Central Repository of Information on Large Credits (CRILC). 

 Inconsistencies in Savings Bank Accounts: In violation of RBI regulations on financial inclusion, the bank permitted some holders of Basic Savings Bank Deposit Accounts (BSBDAs) to open additional BSBDAs.

After detecting these violations, RBI issued a show-cause notice to Punjab & Sind Bank, asking for an explanation. The bank submitted its reply, additional clarifications, and oral representations during a personal hearing. However, after reviewing the bank’s responses, RBI determined that the charges were valid, leading to the imposition of the penalty.

Read More

Government Approves New Senior Level Posts in Public Sector Banks

The Government of India has authorized the establishment of new senior-level roles in Public Sector Banks (PSBs), a major move intended to bolster the banking industry.  It is anticipated that this action will improve asset management, increase the effectiveness of nationalized banks, and give bank workers better career options. 

 Shri Pankaj Chaudhary, the Minister of State for Finance, gave information on the newly created roles and the updated process for determining the number of senior positions in nationalized banks during the Rajya Sabha discussion of the decision. In five nationalized banks where the position was previously unattainable, the government has authorized the creation of the Chief General Manager (CGM) position. These financial institutions are:

1. Bank of Maharashtra 2. Central Bank of India 3. Indian Overseas Bank 4. Punjab & Sind Bank 5. UCO Bank

Until now, these banks did not have a Chief General Manager (CGM) post, which serves as an important leadership position just below the Executive Director (ED) level. 

The CGM post has already been available in other Public Sector Banks (PSBs), and its introduction in these five banks will ensure a more uniform administrative structure across the banking sector. The new CGM positions in these banks will be introduced from October 2024 onwards.

Apart from introducing CGM posts, the government has also revised the methodology for calculating the number of senior-level positions in PSBs. This revision affects the following positions:

Chief General Manager (CGM), General Manager (GM), Deputy General Manager (DGM), Assistant General Manager (AGM)

The number of these posts has been determined based on the business size of each bank as of March 31, 2023. The revision aims to ensure that banks have the right leadership structure to manage their operations efficiently.

Let’s have a look at the number of posts – how many CGM, GM, DGM, AGM posts are available in different banks. The maximum number of posts are available in Punjab National Bank and Bank of Baroda. The number of posts vary according to the size of business of Bank.

Bank Name	CGM	GM	DGM	AGM
Punjab & Sind Bank	4	16	48	144
Bank of Maharashtra	8	32	96	288
UCO Bank	8	32	96	288
Indian Overseas Bank	8	32	96	288
Central Bank of India	8	32	96	288
Bank of India	12	48	144	432
Indian Bank	11	44	132	396
Union Bank of India	20	80	240	720
Canara Bank	21	84	252	756
Punjab National Bank	22	88	264	792
Bank of Baroda	22	88	264	792

This new structure will ensure that banks have sufficient leadership at different levels to handle their growing operations effectively.

The Indian banking sector has been growing rapidly, with increasing loan disbursements, rising customer demand, and digital banking advancements. To keep up with this growth, banks need strong leadership and better management structures.

Earlier, the number of senior positions was not aligned with the expanding business size of banks. This led to workload imbalances, slower decision-making, and operational inefficiencies.

By introducing new CGM positions and revising the number of GMs, DGMs, and AGMs, the government is ensuring that banks have the right number of senior officials to handle operations efficiently.

This move is also in line with the government’s efforts to:

1. Strengthen public sector banks and make them more competitive.

2. Improve the financial health of banks by ensuring better monitoring of assets and loans.

3. Support economic growth by making banking services more efficient.

The government’s decision to introduce new senior-level positions in public sector banks is a major step toward strengthening India’s banking system. By ensuring better management, improved supervision, and stronger leadership, this move will help banks become more efficient, financially stable, and customer-friendly.

With the new Chief General Manager (CGM) positions and revised senior-level post structure, nationalized banks are expected to see better operational efficiency, improved risk management, and stronger career growth opportunities for employees.

This change will not only benefit bank employees but also enhance banking services for customers across India, ensuring that the public sector banking system remains strong, efficient, and well-managed in the years to come.

Read More

Top 10 largest banks in the world in 2025

With several financial organizations owning trillions of dollars in assets, the banking sector has a significant and global footprint. The top 10 banks in the world in 2025 will be examined in this article, along with a thorough examination of their business practices, financial results, and overall effects on the world economy. We may have a better understanding of the contemporary financial landscape and how it influences our world by looking at the specifics of these leading institutions.

Here’s a deep dive into the largest banks in the world.

1. JPMorgan Chase

• Total Assets: $4.210 Trillion

In terms of total assets, JPMorgan Chase is the biggest bank in the United States and the sixth largest bank globally. It is a major force in financial services and investment banking. JP Morgan is one of the well-known financial organizations that has already embraced the FedNow system, the Federal Reserve's new fast payment service.

2. Bank of America

• Total Assets: $3.324 Trillion

More than 68 million customers and more than 3 million small business clients are served by Bank of America, which has a significant presence in trading, wealth management, and investment banking.  The second-largest bank in the world and the sixth-largest bank globally in terms of assets is Bank of America.  Ranking 33rd on the list, Bank of America has a market capitalization of $288.96 billion, making it one of the most valuable firms.

3. Industrial and Commercial Bank of China (ICBC)

• Total Assets: $6.898 Trillion

Based on total assets, the Industrial and Commercial Bank of China Limited is the biggest bank in the world and the People's Republic of China. ICBC and other major lenders like Bank of America continue to hold a strong position at the top of the global lending rankings.

Also Read: Top 10 Banks in India 2024

4. Wells Fargo

• Total Assets: $1.922 Trillion

In over 35 countries, American Wells Fargo & Company provides financial services like insurance, equipment leasing, mortgage banking, and more.  As part of JPMorgan's FedNow system integration, Wells Fargo joined 33 other banks and credit unions.  Among the top five banks in the US, Wells Fargo provides services to over 70 million customers.

5. The Agricultural Bank of China

• Total Assets: $6.212 Trillion

In terms of total assets, the Agricultural Bank of China is the second-biggest bank globally.  In 1979, it was established.  The latest financial statistics reveal that the company’s current earnings are $43.41 billion.  throughout addition to operating throughout Asia Pacific, the Middle East, Europe, and the Americas, the bank is extremely important to China's agriculture industry.

6. Morgan Stanley

• Total Assets: $1.258 Trillion

Morgan Stanley is an American investment bank and provider of financial services. Notably, Morgan Stanley and Mitsubishi UFJ Financial recently revealed plans to expand their 15-year partnership by investing in Japanese research and equities as well as foreign exchange trading for a worldwide clientele.

7. China Construction Bank (CCB)

• Total Assets: $5.837 Trillion

In terms of total assets, CCB is the third-largest bank in the world.  It is one of the top commercial banks in China and has a big impact on infrastructure and building projects there.  Chinese Construction Bank is the second-largest bank after ICBC, with 3.48 million corporate clients.  Leisure, software, energy, retail, and many other industries are covered by CCB's numerous subsidiaries.

8. Bank of China

• Total Assets: $4.859 Trillion

In terms of total assets, the Bank of China ranks fourth among all banks worldwide.  It has a large global footprint and is among the oldest banks in China.  The financial market activity is currently run by the Bank of China through five major trading centers: Beijing, Shanghai, Hong Kong, New York, and London. The Bank of China started its operations in Hong Kong.  Maintaining the value of the currency and encouraging national economic expansion are two of the Bank of China's objectives.

9. Goldman Sachs

• Total Assets: $1.728 Trillion

With its headquarters located in New York City, Goldman Sachs is a prominent international investment banking, securities, and investment management company that was founded in 1869.  It engages in trading, securities, asset management, and investment banking.  The firm has a reputation for its high-profile consulting roles in mergers and acquisitions, underwriting of securities, and asset management.  In 2023, Goldman Sachs employed 45,33,000 people worldwide.  Despite its success, Goldman Sachs has encountered legal issues and conflicts, which are frequently linked to its substantial influence in international financial markets.

10. HSBC

• Total Assets: $3.098 Trillion

This British banking firm, which was founded in Hong Kong and Shanghai and currently has its headquarters in the United Kingdom, is the eighth-largest bank globally. serving millions of clients globally as a leading provider of banking and financial services. With a network spanning 62 countries, HSBC provides services to around 42 million clients worldwide. In addition to offering its goods and services, HSBC has branches in India and is growing its clientele in the personal banking sector.

Read More

AIBEA issued Clarification on 5 Day Banking, What happened in meeting?

UFBU just postponed the planned Bank Strike for March 24 and 25, 2025. The strike was called because a number of demands, including adequate bank recruitment and five-day banking, had not been met. The strike was postponed following a conciliation meeting with officials from the IBA, DFS, and Bank on March 21, 2025, at the Chief Labour Commissioner's (CLC) office. Since DFS provided no concrete indication regarding 5-Days Banking, bank employees across began to criticize UFBU's decision as soon as the strike was postponed. AIBEA has now clarified its position on 5-day banking.

The implementation of weekly 5-day banking was the subject of extensive discussion. We emphasized that the matter is still pending with the Government, to whom the IBA has advised, despite the fact that our Bipartite Settlement/Joint Note was signed in March 2024, a year ago. 

We clarified that disrespecting the sanctity of the bilateral settlement reached between the IBA and UFBU would be equivalent to keeping the matter open for so long. We also noted that the need for two days of weekly vacation has become essential in the current environment, when bank officers and managers labor beyond regular business hours and under a lot of stress.

IBA responded that they have recommended the subject to the Government and are seeking their approval in accordance with the Settlement/Joint Note. They promised to pursue the case with the government to obtain their proper consent when CLC pointed out that IBA should follow up with the government. 

 A DFS spokesman said that although the matter is being considered, no timeframe can be committed. As a result, this subject was in a virtual standstill. In order to learn the government's position and break the impasse, the Chief Labour Commissioner requested that a few high-ranking DFS officials attend the conciliation meeting.

A senior DFS Joint Secretary participated in the meeting via video conference and explained that the issue is receiving the government's serious attention, including from the Finance Minister, despite the fact that all of the DFS's top officials were preoccupied with the ongoing Parliament Session proceedings. 

We expressed our dissatisfaction with the excessive hold-up in the case and requested that the government move quickly. He asked the UFBU to reevaluate our call, stating that the government is already giving the issue significant consideration, even at the level of the finance minister.

Given the growing workload, stress, and long work hours that bank employees must endure, the call for a 5-day banking workweek is both sensible and essential. The bipartite settlement between unions and the IBA is undermined by the implementation delay, as the AIBEA correctly noted. Although AIBEA has properly called for prompt action, the government's evasive answers suggest that more pressure, increased public awareness, or more agitation may be needed to hasten approval. A five-day workweek is long overdue, and workers deserve acceptable working conditions. Instead of dragging out the process, the Government and IBA now have the responsibility to fulfill their promises.

Read More

BOBOA requests that order to open bank branches on holidays be withdrawn

The regulation mandating that bank branches in the Raebareli Region remain open on specified holidays has been vehemently rejected by the Bank of Baroda Officers’ Association (BOBOA), Lucknow Zone, in a recent appeal. Citing worries about work-life balance and staff well-being, the organization has petitioned the Regional Head of Bank of Baroda, Raebareli Region, to revoke the directive requiring branch operations on March 23, 2025 (Sunday), and March 30, 2025 (Sunday). 

Worries About Working Nonstop Without Breaks Letter ref. no. UPR/2024-25/HRM/1034, dated March 19, 2025, issued the directive, which also mandated that branches operate on March 22, 2025, the fourth Saturday. Employees have also stated that bank offices in the Raebareli area were open on March 8, 2025, the second Saturday, and March 9, 2025, the Sunday further exacerbating concerns over excessive workload.

BOBOA, which is affiliated with FBOBOA & AIBOC and represents over 3.5 lakh officers, acknowledges the importance of achieving business targets and ensuring a smooth financial year-end closure. However, it strongly emphasizes that continuous work without sufficient rest can have detrimental effects on employees’ mental and physical well-being.

The Need for Work-Life Balance

The association highlights that holidays serve a crucial role in allowing employees to:

Rest and recharge to maintain productivity.

Attend to personal responsibilities and family commitments.

Address medical and other urgent needs without professional obligations.

BOBOA warns that denying employees these essential breaks may lead to stress, burnout, and reduced efficiency, which could ultimately impact the organization’s performance in the long run.

In light of these concerns, BOBOA has formally requested the Regional Head of Bank of Baroda, Raebareli Region, to reconsider and withdraw the order to open bank branches on holidays. The association firmly believes that maintaining a healthy work-life balance is crucial for sustaining morale and efficiency among banking officers.Credit card services

The letter, signed by Akhilesh Kumar Rai (General Secretary, BOBOA Lucknow Zone), has also been forwarded to:

The General Manager, Bank of Baroda, Lucknow Zone.

The General Secretary, FBOBOA (Affiliated to AIBOC).

The Secretary, AIBOC (UP State).

BOBOA hopes that the management will take prompt action and reconsider the decision, ensuring that officers are granted their rightful holidays while maintaining the bank’s operational efficiency.

Read More

Latest Update on Bank strike -Why Strike Deferred?

Today, a meeting of UFBU and Bank Unions was held with the government representatives. Earlier, meeting was held on 18.03.2025 but any decision would not be arrived at. So next meeting was scheduled for 21.03.2025. Today, the meeting was attended by Bank Unions, IBA and Bank Management. As per the details available, the strike has been deferred. Consensus has been reached for most of the demands.

The adjourned conciliation meeting took place today from morning. There was serious discussion on our demands. Iba and DFS were present. 

Joint secretary of DFS spoke on video call and informed about the positive discussion FM and DFS secretary had on the issue of 5 Day banking. Iba proposed to further discuss issues like recruitment and PLI and other issues. 

CLC informed that he will directly monitor the issues includi ng implementation of ,5 days banking. The meeting has been adjourned to be held again in the third week of April. 

In view of this positive development it was felt necessary to postpone our strike for a month or two. Units are thus informed that our strike on 24th and 25th is postponed. Detailed circular being issued. UFBU.

Read More

Bank Unions Oppose Government’s modified PLI Scheme for Senior Officers in Bank

 

The recent modifications to the Performance-Linked Incentive (PLI) program for top bank executives made by the Department of Financial Services (DFS), which is part of the Finance Ministry, have been vehemently challenged by the All India Bank Employees' Association (AIBEA). According to the union, the new formula is unjust, goes against earlier agreements, and causes conflict among workers.

Bank workers can receive additional financial rewards through the PLI scheme, which is dependent on their performance. In 2018, the Indian Banks' Association (IBA) first proposed a plan in which rewards would be granted according to each employee's performance. 

 PLI should be based on the overall success of a bank, not on the performance of individual employees, according to the United Forum of Bank Unions (UFBU), which represents bank unions. Services related to credit cards Following talks, PLI would be determined by each bank's total performance, as affirmed by the 11th Bipartite Settlement (BPS) and 8th Joint Note, which were signed in November 2020.

 June 2024 saw additional revisions to this agreement, but the fundamental framework stayed the same: rewards were to be given according to on collective performance.

What has changed now?

In November 2024, the Government of India (DFS, Finance Ministry) changed the system without consulting bank unions. The new rule states that PLI for Scale IV officers and above (senior management) will now be based on individual performance instead of the collective performance of the bank.

This change only affects officers in Scale IV and above, while junior officers and clerical staff will continue to receive incentives based on the bank’s overall performance.

Why are bank unions opposing this change?

The AIBEA and other bank unions have raised strong objections to the government’s move. They argue that:

It is a unilateral decision: The PLI scheme was originally decided bilaterally between IBA and UFBU. The government did not consult bank unions before making this change.

It creates division: Under the new rule, some senior officers will receive huge incentives, while lower-level employees will get much less.

It is discriminatory: While a few officers will get a very high PLI, many deserving employees will not receive anything.

It is unfair to banks as a whole: If a bank performs poorly due to external reasons (such as fraud or government policies), the entire workforce suffers, even if some employees worked hard.

It violates previous agreements: The UFBU had already agreed on a collective PLI system in previous wage agreements, and this sudden change goes against that.

In opposition to this decision, the AIBEA and other bank unions have chosen to demonstrate. They insist that the government go back to the original collective performance model and remove the current individual-based PLI system. Bank officers and staff are currently awaiting additional talks between the government, the Indian Banks' Association, and bank unions. In the upcoming months, there might be bank staff strikes and widespread rallies if the government doesn't change its mind. 

The government's new PLI system has been met with fierce criticism from bank unions. Bank unions are concerned that this may result in discrimination, inequality, and needless competition among employees, despite the government's claim that individual incentives will improve performance.

The coming weeks will be crucial in deciding whether this issue will escalate into a major confrontation between bank employees and the government.

Read More