Public sector banks are likely to get permission to spread their pension liablity worth more than Rs 10,000 crore over a number of years. This would come as a boon to banks in protecting them from facing a major one time hit in profits.

Banks would be relieved if the permission is granted as they are currently facing lot pressure after the gratuity limit was raised by the government to 17.5% in the wage revision.

However, the relaxation is applicable only for gratuity limit enhancement and there is no change made in the accounting treatment for wage revision.

"The case of gratuity was a government decision, so a policy intervention is being considered," said a government official.

"The matter is for RBI to decide, as it concerns policy making. If RBI permits any change in accounting treatment, our auditors will act accordingly," said Amarjit Chopra, president of ICAI, the accounting rule-making body.