BNW News
Banks have now more options to choose the parameter to be used for the calculation of performance linked incentives for the financial year 2023-2024.
A meeting between the Indian banks association (IBA) and United Forum of Bank Unions (UFBU) have agreed to permit banks decide which parameters they would choose to decide the performance linked incentives (PLI).
Earlier, banks used to consider only operating profit as the yardstick. However, for the financial year 2023-24, each Bank can decide any of the following parameters for granting the PLI .
These include current, savings account deposits (CASA), Net non-performing assets (NPA), Special mention accounts (SMA), Non-interest Income, total business, profitability ROA/ROE and government schemes. The news norms are expected to benefit both banks and employees in PLI calculation, according to Venkatachalam.
Further, banks can decide the matrix from amongst the above parameters looking to their business potential, priorities, business plan, etc, according to the minutes signed by the UFBU and IBA.
“Instead of the present PLI of 5 days, 10 days and 15 days, PLI can be granted from 1 day wage to 15 days wage, i.e. 1,2,3,4 ………. 11,12,13,14 or 15 days,” the minutes showed.
Group medical insurance
Also, both UFBU and IBA agreed on revised norms for renewal of group medical insurance policy for in-service employees, officers and for retirees.
Presently there are two separate policies, one for the in-service employees and their dependents and the other for the retirees. The premium is being fixed up based on the number of insured persons and incurred claim ratio.
Since the number of insured persons from the retirees have been less and the ICR has been more, the premium amount has been increasing.
“Hence we have been demanding a combined Policy for the in-service employees and retirees. We are happy to inform that this has been agreed now and the policy to be renewed for the year 2024-25 would be a combined Policy,” said the UFBU convenor C H Venkatachalam in a statement.
This is expected to rationalize, cross-subsidise and reduce the premium for the retirees, Venkatachalam said.
Other details
Further, there would be common coverage of sum insured i.e. Rs. 3 lacs for in-service award staff and retirees and Rs. 4 lacs for in-service officers/retirees.
The benefits under this Policy including bed charges, etc. would be the same for in-service staff and for the retirees except the following which would be applicable only for the in-service staff, the minutes showed.
According to Venkatachalam, retirees who are not members of this policy at present would be give an opportunity to join this policy.
Also, in-service employees/officers will be permitted to add dependents anytime during the year on account of marriage and birth of a child.
Other changes/updation/substitution in the dependents would be permitted at the time of annual renewal of the Policy.
Also, the meeting decided to set up a committee by the IBA to monitor the performance of the TPAs and to recommend change of TPAs, de-listing of hospitals, etc.
“Efforts would be taken to synchronise and have a common commencement date for the Medical Insurance Policy for in-service staff and retirees,” said Venkatachalam, adding facility of offer of top-up benefit would be available. Based on the above, IBA would invite quotations from the Insurance companies and finalise the bid.