Bank employees could go on an indefinite nationwide strike from October 26 if the government does not act on their demands for a five-day banking week and changes to the Performance Linked Incentive (PLI) scheme. United Forum of Bank Unions (UFBU) Goa Convenor Santosh Haldankar announced the proposed action on Friday. The announcement comes ahead of a three-day nationwide bank strike planned from September 28 to 30 over the same issues. Haldankar said bank unions have been demanding a five-day working week for more than 10 years. He said an agreement between the unions and the Indian Banks’ Association (IBA) was reached on March 8, 2024, to make all Saturdays holidays. However, the proposal is still pending before the Department of Financial Services (DFS). Under the agreement, bank employees would work an additional 40 minutes from Monday to Friday to make up for the working hours lost on Saturdays. “More than 10 years have passed since we were assured that, in due course, all Saturdays would be holidays. We are not asking for a five-day week to sit at home. We need to recharge physically and mentally so that we can provide better customer service on Mondays,” Haldankar said. He claimed that the proposal has been awaiting government approval for more than 30 months, despite repeated assurances that the matter was being considered.

Unions Raise Objections to Revised PLI Structure

Haldankar also criticised changes made to the PLI structure. He said bank unions were not opposed to performance-linked incentives but wanted the benefits to be distributed through a uniform system based on the collective performance of employees. A PLI scheme was introduced under a 2020 bipartite settlement covering employees from sub-staff positions to Scale 7 General Managers. Under the original arrangement, employees were eligible for five days of basic pay plus DA when profit growth was between 5% and 10%. The incentive increased to 10 days for profit growth between 10% and 15%. For growth above 15%, the maximum incentive was 15 days. According to Haldankar, the structure was changed in November 2024. Following the changes, officers in Scale 4 and above could receive incentives of up to 365 days of basic pay, while employees up to Scale 3 continued to have a maximum limit of 15 days. “The branch functions through teamwork. The cashier does their work, the manager does their work, and together they generate business and profitability. Everyone contributed to the additional Rs 2 lakh crore profit,” Haldankar said.

Union Points to Wide Gap in Incentive Payments

Haldankar claimed that senior executives could receive incentives ranging from around Rs 21 lakh to Rs 23 lakh, while staff members could receive only around Rs 50,000 to Rs 70,000. “An incentive is meant to motivate employees, but when it becomes a tool to divide, discriminate and demotivate, it creates unrest,” he said. He said officers from Scale 4 to Scale 7 make up roughly 5% of the total workforce. The remaining 95% of employees, he added, continue to be subject to the 15-day incentive limit.

Bank Workload Rises as Staff Numbers Fall

Haldankar also highlighted the rising workload faced by public sector bank employees over the past decade. He said the increase has occurred even as the overall strength of bank staff has declined. According to the figures cited by him, the number of customer accounts increased from 92.44 crore in 2015 to 160.16 crore in 2026. During the same period, the number of branches grew from 86,349 to around 1.07 lakh. However, the number of employees fell from 8,59,692 in 2015 to 6,28,203 in 2026. This represents a decline of more than 2.3 lakh employees. Haldankar also pointed to the rise in net profits during the period. He said net profit increased from Rs 36,280 crore in 2015 to Rs 1.98 lakh crore in 2026. “Despite the reduction in staff and the increase in workload, bank employees have generated record profits,” Haldankar said. He further claimed that employees are increasingly being asked to sell third-party products, including life insurance, mutual funds and general insurance, alongside their regular banking responsibilities.

Digital Banking and UPI Services to Continue

Haldankar said customers would still be able to access several digital banking services if the strike takes place. He said internet banking and UPI services would continue during the strike. ATMs would also be stocked with cash in advance, while outsourced agencies would be responsible for replenishing cash supplies to reduce the impact on customers. “We are not saying that banking services will stop on weekends. Digital banking, internet banking and UPI will continue,” Haldankar said.

Unions Oppose Sunday Branch Opening

Haldankar also criticised directions to keep bank branches open on Sunday, September 27. He argued that opening branches on the additional day does not resolve the unions’ core concerns. The unions are continuing to press for approval of the five-day banking week and changes to the existing PLI structure. The three-day nationwide strike is scheduled for September 28 to 30. If the demands remain unresolved, bank employees have threatened to begin an indefinite strike from October 26.