The Indian Finance Ministry has mandated that public sector banks (PSBs) initiate and complete negotiations for the 13th Bi-partite wage settlement within the next 12 months. This wage revision is due from November 1, 2027, and is essential for maintaining industrial harmony within the banking sector. The Indian Banks' Association (IBA) is expected to engage in discussions with employees' unions to reach a mutually agreeable wage settlement. The Finance Ministry emphasized the importance of concluding these negotiations on time, as delays in past settlements have caused issues with implementing wage revisions. The banking sector, which is vital to the Indian economy, has recently reported record profits, with combined PSB profits rising from ₹1.05 lakh crore in FY23 to an expected ₹1.78 lakh crore in FY25, driven by improved asset quality and sustained credit growth. The gross non-performing assets (NPAs) have also reached a record low of 2.30%, indicating a healthy banking environment, which is crucial for employee morale and compensation discussions.