| Bank | Dividend (Rs. Crore) |
|---|---|
| State Bank of India (SBI) | 8,813 |
| Punjab National Bank (PNB) | 2,416 |
| Bank of Baroda(BOB) | 2,811 |
| Canara Bank | 2,397 |
| Union Bank of India | |
| Bank of India(BOI) | 1,553 |
| Central Bank of India | |
| Indian Bank | 1,815.05 |
| Indian Overseas Bank | |
| UCO Bank | 501 |
| Bank of Maharashtra | |
| Punjab & Sind Bank |
Shri Kalyan Kumar, Managing Director and CEO of Central Bank of India, along with Executive Directors Shri M. V. Murali Krishna, Shri Mahendra Dohare and Shri E. Ratan Kumar, today presented the fourth interim dividend cheque of ₹484.82 crore payable to the Government of India to Union Finance Minister Nirmala Sitharaman at the Ministry of Finance in New Delhi. The cheque presentation ceremony was also attended by Smt. Shalini Pandit, Joint Secretary, Department of Financial Services, Ministry of Finance, Government of India, and Shri Shishram Tundwal, General Manager, Central Bank of India.
Banks pay dividends to distribute a part of their profits to shareholders. When a bank earns a profit, it does not keep the entire amount for itself. A portion of the profit may be paid to shareholders as a dividend, while the remaining amount is retained for business growth, capital requirements, and future operations. In the case of public sector banks, the Government of India is usually the largest shareholder. Therefore, when a bank declares a dividend, a significant portion of the dividend is paid to the government. Dividend payments also reflect the bank’s strong financial performance and provide income to shareholders for their investment in the bank.
The Government shareholding in Banks is as follows:
| Bank Name | Govt Stake (Dec 25) | Govt Stake (June 24) |
|---|---|---|
| State Bank of India | 55.50% | 57.54% |
| Canara Bank | 62.93% | 62.93% |
| Bank of Baroda | 63.97% | 63.97% |
| Punjab National Bank | 70.08% | 70.08% |
| Bank of India | 73.38% | 73.38 |
| Indian Bank | 73.84% | 73.84% |
| Union Bank of India | 74.76% | 74.76% |
| Bank of Maharashtra | 73.60% | 86.46% |
| UCO Bank | 90.95% | 95.39% |
| Central Bank of India | 89.27% | 93.08% |
| Indian Overseas Bank | 92.44% | 96.38% |
| Punjab & Sind Bank | 93.85% | 98.25 |
The wage revision settlements were previously signed every two to three years. However, the 12th Bi-partite Settlement (also known as the 9th Joint Note) was completed in just 14 months. The government hopes to finish the settlement on schedule this year.
This year, public sector banks have been advised to finish the negotiations within a maximum of 12 months.
According to the government, it has been noted that in the past, significant changes to the relevant regulations have been made after a significant amount of time had passed since the settlements.
It is emphasized that the consequential changes to the pertinent regulations should also be finished before the next wage settlement's due date, since talks for the settlement are now being started in a timely manner.
It usually takes three to four months to implement consequential changes to the regulations. As a result, it is recommended that the banks start the process of amending the pertinent regulations as soon as the negotiations are concluded. This will ensure that the amendment procedures are finished well in advance of the next wage settlement's scheduled start date, which is November 1, 2027.
The action follows many grievances from officers' groups and bank unions. Numerous workers claimed they are required to put up long hours, deal with increasing insurance and sales goals, and even be given non-banking tasks like election work. Numerous PSU Bank personnel have taken their own lives. The toxic work culture affects not just younger employees but even senior personnel. A senior manager of Bank of Baroda, Shri Iswar Chand Jha, recently took his own life. An AEO at Canara Bank allegedly committed suicide as a result of work-related stress. The passing of a Bank of Baroda chief manager was one piece of news that rocked the nation. The chief manager of Bank of Baroda in Baramati, Pune, committed suicide as a result of work-related stress.A few months ago, Central Bank Manager had committed Suicide. His Wife alleged that Bank Seniors were Mentally Harassing Him.
These are only a handful of incidents that demonstrate the poisonous workplace culture that exists in banks. Many more bank employees have taken their own lives. You can read about banker suicides here if you'd like. These days, if we discuss work pressure and a poisonous workplace, we hear about it every day. A Bank of Baroda branch manager refused to allow employees to take time off to care for his ailing mother. A 29-year-old girl just quit her job at Punjab National Bank because of the toxic work environment. On social media, her video had gained a lot of popularity. She claimed that she eventually quit her job because she was unhappy with it.A lot of banks deny leaves to staff and taking leave during month end or quarter end is considered a sin.
This shows that the working environment in public sector banks is now pathetic. The Government needs to immediately intervene and improve the work culture in banks otherwise banks will surely lose the talented staff.
The EASE (Enhanced Access and Service Excellence) programme is an ongoing reform initiative by the Department of Financial Services (DFS) to improve performance and efficiency in public sector banks. Under the EASE 8.0 and EASERise initiatives, the government is focusing on employee welfare, leadership development, and inclusive growth in PSBs.
At the recent PSB Manthan conclave, a special session was held on “Building an inclusive and future-ready workforce.” The session focused on diversity, equity, and skill development across various roles and genders in the banking system.
To address stress and improve morale, several PSBs have started new initiatives such as Mentorship programmes for professional growth, Digital counselling platforms for mental well-being, Employee Health Index (EHI) surveys conducted every quarter. Out of 12 public sector banks, seven banks are now conducting EHI surveys regularly, and three banks are sharing the results with their boards to take quick action when needed, a senior bank executive said.
The government issued the notification on May 23, 2025, following an order by the Punjab and Haryana High Court. This comes after a prolonged legal battle fought by affected employees seeking justice. Many of these employees have already completed over 20 years of service and belong to various government departments like:
As per the updated Punjab Civil Services Rules, Volume II, the OPS will now apply to:
Eligible employees will be allowed to choose between:
However, they must make a decision within 3 months from the date of the notification. If they don’t opt within this period, they will automatically remain under the NPS.
Jasvir Talwara, convenor of the Purani Pension Bahali Sangharsh Committee, called the move a “victory for justice.” He pointed out that these employees should never have been placed under the NPS, and the notification has corrected a long-standing error.
Talwara also urged the government to act quickly and open General Provident Fund (GPF) accounts for all 2,500 employees by May 28, 2025, as ordered by the High Court, so the implementation of OPS can begin without delays.
However, employee unions also raised concerns that around 2 lakh other employees who joined after January 1, 2004, are still not covered under OPS. Despite the AAP government’s promise in 2022 to restore OPS for all employees, a full rollback has not been implemented.
Talwara criticized recent efforts by AAP ministers to promote the Unified Pension Scheme introduced by the Centre, which unions strongly oppose.
Chief Minister Bhagwant Mann recently reiterated support for employees with pre-2004 appointments but has not addressed the demands of the larger group hired post-2004.
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.
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.
