State Bank of India (SBI) will likely make additional provisions of Rs 11,000 crore in H2FY24 to meet requirements for the 17% wage hike following the pact signed between the bank unions and the Indian Banks’ Association (IBA) on December 17, two senior bank officials told FE.
“As per our estimation, a total of Rs 20,000 crore of provision is needed to meet a 17% wage hike for employees and pensioners. We have made about Rs 9,000 crore of provisions till Q2FY24 and will make another Rs 11,000 crore in H2FY24,” a senior official said.
Analysts at Nuvama Institutional Equities recently wrote the public sector banks have provided 14%-15% towards the wage settlement and would now…
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