According to the Australian Prudential Regulation Authority, inspite of the rise in interest rates by the Reserve bank of Australia, ANZ's has increased its profits by 0.867 per cent to $179.02 million while Westpac expanded its book by 0.726 per cent to $101.84 million.

WESTPAC has also decided to hike the salaries of its staff by 4 per cent. Parental leave entitlements will be increased from 12 to 13 weeks, with any subsequent statutory scheme to be on top.

Staff will also be given enough autonomy to resolve disputes, including on sales targets.

According to the newspaper, the bank has struck a deal with the Finance Sector Union over the changes. The deal contains flexible working arrangements for the benefit of workers and management.

"This new agreement for Westpac employees has been a long time coming, and it's a credit to union members in Westpac," Mr. Carter said.

Westpac group executive Peter Hanlon said the agreement "achieves the right balance between employees, the business and shareholder interests".

The shares of ANZ slipped from 0.58 per cent to $22.18 at 1241, against a 0.72 per cent dip in the benchmark index.