Review Note on disbursement of revised salary and arrears arising out of 11th Bipartite settlement/ 8th Joint Note for permanent officers on the rolls of the Bank and officers of DOP on deputation to IPPB.
RESOLUTION NO.45.19,
The Members of the board discussed the matter at length, It was again deliberated that the Board in its meeting dated 01st September 2016, resolved and approved the Grade and Compensation structure for the officers of IPPB in line with the 10th Bipartite grade structure adopted by the Public Sector Banks and Board in its meeting dated 12.10.2018 (vide resolution no. 23.10) accorded approval for adopting 11th Bipartite Settlement/ Joint note as is, for wage settlement of PPB officers. The Board, in its meeting held on 1st January 2021, was informed about the implementation of 11th Bipartite settlement/ Joint note and advance given thereof out of the arrears in Oct 2019, The Board after taking into consideration the financial constraints anticipating challenges resulting from Covid-19 situation across the country gave
in-principle approval on the 11th Bipartite settlement and directed that implementation of the same may be kept on hold for 6 months after which the matter may be placed before the board afresh, Also the Board in its meeting dated 30 June 2021 deferred the implementation of 11th Bipartite settlement/ Joint note by another 3 months of till the time Revised Cost Estimate proposal (Funding Proposal) is approved by the Ministry.
Deliberating on the financial performance of the Bank, it was informed to the Board that the total Income of the Bank improved from Rs. 54.76 crores for the year ended 31st March 2020 to Rs. 213.13 crores for the year ended 31st March 2021 reflecting strong growth of 289% despite the challenges posed by the pandemic. Also, during the current financial year, it has surpassed fast year’s total income within a period of 8.5 months.
In terms of Banks top line, the Total Deposits of the Bank stood at Rs. 2300 crores as of 31st March 2021 as against Rs. 855 crores as of 31st March 2020 reflecting a strong growth of 169%. Total Deposits were further increased by 23% to Rs.3112 crores as on 30th November 2021. During the last 8 months, total revenue earned by the Bank was sufficient to cover salary expenses which is expected to continue in future.
In terms of overall impact to Bank's P&L on account of implementation of 11th BPS, pursuant to Accrual Mercantile system of accounting the Bank has already started creating provision every month w.e.f Nov 2017. The total provision amount for 11th Bipartite Settlement held in books til 5th November 2021 Is Rs- 112.62 crores for IPPB officers, The Bank now proposes to implement 11th BPS to all regular employees including those who are on deputation from DoP and other Banks, the arrears amounting to approx. Rs. 25 Crores need to be paid to all such officers over and above the present level of Rs.112.62 crore mentioned above:
Members further mentioned that the Bank has recovered from the constraints instilled by Covid-19 and its financial position has improved substantially and the Bank is already earring revenue to cover Its employees cost. Total revenue for the period ended 30th November 2021 is Rs.234.46 crores whereas the salary expenses for the same Period is Rs.174.25 crores (Including provision for th BPS),
It was also highlighted that Public Investment Board (PIB) in its meeting dated 23rd November 2021 under the chairmanship of the Finance Secretary recommended the proposal for Revised Cost Estimate (Equity Infusion) of India Post Payments Bank.
Mr, Pawan Kumar Singh- Nominee Director of the Bank further mentioned that the Bank is not able to attract right talent in the current recruitment drive, due to no implementation of 11th Bipartite Settlement. He further directed Bank to revise and table amended policy on DOP Deputation to strengthen the field level co-ordination After lot of deliberation, the Board Members passed the following resolution unanimously:
RESOLVED THAT the Board be and is hereby approves the implementation of 11th Bipartite Settlement/ Joint note to both 1PPB employees and employees on deputation from DOP and other Banks with immediate effect.
RESOLVED FURTHER THAT the Board be and is hereby approves the payment of arrears for both IPPB employees and employees on deputation from DoP and other banks to IPPS as follows:
a. Arrears for the period from 1st November, 2017 to 31st March, 2021 will be paid during the current financial year (2021-22).
b. Arrears for the remaining period shall be paid during the next financial year (2022-23),
