India’s Public Sector Banks Put PLI Scheme on Hold as Bank Employees Celebrate Collective Victory

Public Sector Bank Employees Welcome Decision to Put PLI Scheme on Hold

The Department of Financial Services, Ministry of Finance, has decided to keep in abeyance the payment of Performance Linked Incentive (PLI) to Scale IV to VIII executives of Public Sector Banks (PSBs) for the financial year 2025-26. Following widespread representations from bank employees, this decision marks a significant victory for collective unity among PSB staff.

The PLI scheme was introduced as part of the government’s efforts to promote public sector banks and encourage them to invest in growth-oriented areas such as renewable energy and digital payments. However, the payment of incentives has been a subject of controversy among bank employees, with many feeling that it disproportionately benefited top executives while others struggled to make ends meet.

Background on the PLI Scheme

The Performance Linked Incentive (PLI) scheme was launched in 2018-19 as a way to reward public sector bank employees for their performance. The scheme provided incentives to executives who met specific targets, with the payment of incentives being linked to the bank’s overall performance.

• The PLI scheme was initially set to run from Scale III to VI, but it was later extended to include Scale VII and VIII.
• The scheme was aimed at promoting growth and stability in public sector banks, with a focus on improving their asset quality and reducing non-performing loans.

However, the payment of incentives under the PLI scheme has been a subject of controversy among bank employees. Some have argued that the payment of incentives disproportionately benefits top executives while others struggle to make ends meet. The decision to put the PLI scheme on hold marks a significant victory for collective unity among PSB staff.

Reaction from Bank Employees

AIBOC, the All India Bank Employees Association, has welcomed the decision to put the PLI scheme on hold. The association has been vocal in its opposition to the payment of incentives under the scheme, arguing that it is unfair and does not address the underlying issues affecting public sector banks.

“This decision marks a significant victory for collective unity among PSB staff,” said AIBOC General Secretary, C.H. Venkatesan. “We are pleased to see the government listening to our concerns and taking steps to address them.”