You are aware that  UFBU  signed the minutes with IBA for increase of Rs.4816 crores wef 01/11/2007 (Rs. 2239 crores for officers and Rs.2576 crores for workmen employees)".  Moreover, for offering 2nd option for pension, it is said that bankers have to bear the cost of Rs.1800 crores.

Now, let us see how IBA is playing and squeezing the unions and the bankers.  We are of the view that the bank employees should not be asked to pay any amount towards the cost of offering 2nd option for option, rather they may be paid some additional amount.

This is based on the simple calculations.  Our union leaders are either totally zero in calculations or are in hand in glove with the IBA.

Now let us suppose the salaries had been increased w.e.f. 01/11/2007 i.e. from the due date itself, then banks would have to shell out Rs.4816 crores per year from that date itself.   We are sure that banks have utilized these funds for lending to borrowers in the market, and normally these are lent not below the BPLR rate which ranges from 11% to 15% in different banks.  Even if we take that these have been lent at only 12% p.a., then banks have already earned more than Rs.1800 crores (See the calculations below):-

The above clearly shows that banks have already earned sufficient funds and are in a position to bear the additional cost of 2nd option to banker as they have delayed the settlement intentionally.

All Bankers need to protest and tell their leaders that no additional burden should be put on them for 2nd option.  This is the legitimate demand and IBA should be convinced that banks need to pay this amount.  

If necessary, UFBU should consider going to court or for arbitration, where it is felt that this genuine demand will be upheld.