Salaries of government bank employees will increase immediatelyImage Credit source: ai generated
A big relief news has come from Delhi for the bank employees who have been providing continuous services to the customers by sitting in the branches of public sector banks for a long time. Usually, in the name of salary increase or wage revision, employees had to wait for months and sometimes years, but this time the central government has adopted a strict stance.
There is a direct instruction from the government that now no delay will be tolerated in the process of salary increase in Public Sector Banks (PSBs). For this, an ultimatum has been given to start the negotiations for the 13th Bi-Partite Settlement as soon as possible and complete it within just one year. This means that the new pay scale to be implemented from November 1, 2027 should reach the employees’ accounts on time without any hindrance.
12 month ultimatum, ‘date on date’ will no longer work
Sensing the situation, the Department of Financial Services (DFS), working under the Finance Ministry, has sent an important instruction to the heads of all public sector banks on April 20. It is clearly said that preparations for the talks between the bank management, Indian Banks Association (IBA) and employee unions should start from now. The intention of the government is clear, this entire negotiation process should be completed in a maximum of 12 months.
In fact, during previous salary agreements, it was seen that the main settlement is done, but it takes a lot of time to make changes in the rules related to it. The bank staff has to directly bear the brunt of this. This time the Ministry has already made it clear that all the necessary changes in the rules should be completed before the beginning of the next period, so that the employees can get the benefit of increased salary on November 1, 2027.
Banks will get direct reward for record profits
This time the path of wage revision seems easy because the financial health of public sector banks is currently at its best. If we look at the figures, the total profit of these banks in the financial year 2023 (FY23) was Rs 1.05 lakh crore. With spectacular growth, this figure jumped to a historic level of Rs 1.41 lakh crore in FY24 and Rs 1.78 lakh crore in FY25.
Not only profits, the balance sheets of banks have also become quite strong. By September 2025, gross NPA has come down to a record low of 2.30%, while net NPA is at around 3%. Along with this, the capital adequacy ratio remains at 15.96%. This strong financial condition of the banks is a clear indication that the management has both sufficient capital and capacity to pay better wages to its employees.
Which employees will have heavy pockets?
This wage revision, which takes place every five years, will not only directly benefit lakhs of employees and officers of public sector banks, but it will also have a positive impact on a large part of the entire banking sector. Employees of many old private banks and some foreign banks also come under the scope of this salary agreement.
Also read- NPS Rules 2026: How much pension will you get on retirement? This is the complete calculation
