Collateral advantage!

There is some good news for automobile, white goods and such “consumerism” industries. They can most certainly expect a surge  demand and they will have to thank the Govt, bank unions and the PSU employees for that!

A few days from now, PSU bank employees and even some old generation private sector banks and some foreign banks will see a fat sum getting deposited into their salary account. Thanks to the unions - United Forum of Bank Unions, and bank managements, represented by the Indian Banks’ Association, they will get a 15% pay hike, arrears for the past 30 months and other benefits. These unions worked out a detailed Bipartite Settlement/ Joint Note and the same will be formalised on May 25.

This means some 7.50 lakh bank employees across India will stand benefit. Apart from this generous pay hike and arrears, they are to get a “special pay” a new new hospitalisation scheme backed up by insurance and holiday on every second and fourth Saturday in a month. Well, the flip side to the story here – the Income Tax guys will also be very happy as their collection too will go up as arrears will be taxable.

Thus with this unexpected couple of lakhs getting deposited into the bank, it is usually seen that money is used for buying a car or a two-wheeler or big flat screen TVs or double-door fridges, ACs, washing machines and even holidays. This is sure to give an impetus to a much needed demand in these sectors.