Mumbai, May 26 (KNN) Employees of 43 banks, including public sector lenders, will get a 15 per cent hike in salaries, after the Indian Banks Association signed a wage agreement with employee unions and officer associations. Also, the bank employees will now soon get holidays on second and fourth Saturdays.

Around 10 lakh employees of 43 banks, including public sector lenders, will get a 15 per cent hike in salaries.

The revision, applicable retrospectively with effect from November 1, 2012, will benefit employees and officers in 43 banks including PSU banks, old private sector banks and a few foreign banks.

"The 15 per cent wage revision would cost banks Rs 4,725 crore as incremental salary and allowances in a year. If superannuation cost is included, then the total burden would be around Rs 8,370 crore," IBA chairman T M Bhasin told reporters here today.

Further, the bank employees will now also get holidays on second and fourth Saturdays.

"RBI has given in-principle approval for it (holidays) and we have written to the government. We hope to get permission soon. We expect it should take 3-4 weeks' time to implement it," Bhasin added.

Bankers said with a robust system of alternate banking channels like ATMs, points of sale and internet banking, customer services would not suffer.

The wage settlement has also introduced a medical insurance scheme for employees of member banks and their family members.

"Earlier, all banks were having reimbursement of hospitalisation and medical expenses on individual bank basis. Now, we have taken consolidated policy from four public sector non-life companies which gives a floater cover of Rs 3 lakh and Rs 4 lakh for family."

"There will be cashless facility available as we are giving them 100 per cent reimbursement for self and dependents," Bhasin added.

In the wage revision exercise, 11 employee unions and officers associations participated. (KNN Bureau)