People Power

People’s Bank said last year’s profits beat targets set in its restructuring plan despite increasing pressure on margins and higher provision for staff retirement. People’s Bank said last year’s profits beat targets set in its restructuring plan despite increasing pressure on margins and higher provision for staff retirement. However the State bank employees protested against the scrapping of bank funded pension for new recruits earlier in the week.

People’s Bank provided Rs. 1.2 billion for retirement benefits for existing staff up 40 percent from its 2003 provision.

Employees of People’s Bank, Bank of Ceylon and National Savings Bank however say 3000 of their colleagues, who joined the banks after 199, don’t have pension benefits.

“The banks provide for the pension funds from the profits. Not giving the benefits to them is a violation of their rights,” says Aruna Kumara, a State bank employee.

Unfunded staff pensions are draining profits from many commercial banks including ones in the private sector as provisions for retirement benefits have been increased to meet future pension liabilities.

Provisions by People’s Bank have also doubled over the l