Chidambaram to bank staff: All profit can't be used to pay higher wages

Now Chidambaram Defends Lower Wages to Bankers. The report broadly says :

(a) “A significant part of retained earnings must be used to infuse additional capital, otherwise banks will not find the amount of capital that is required over the next 5, 10, 20 years” He also told that the capital is to take care of a number of things. Firstly, banks are obliged to declare a dividend, both to the majority owner of the bank and the other shareholders," "It cannot be that all profits are used to declare dividend and to provide enhanced wages and allowances to bank employees."

(b) “Claims of officers, staff and employees must be duly acknowledged, and a fair and just (wage) settlement is arrived” but there are other claimants to banks' profit.

The above report is significant as this has been issued by FM on a day when most of the bankers are on 1st day of the strike (out of the 2 day strike).