Dear Friends,
Please find the excerpts of the letter of our beloved General Secretary Shri GV Manimaran.
By referring to the letter, I would like to bring the following inferences. There is a lot of data that is making rounds on the social media about wage settlement. Our Leader has come out with a crystal clear information about various questions that are daunting
Lets begin
1) The basic salary of an officer should be fixed at least Rs.27000/- plus in order to get a reasonable increase of Rs.5000/- over the present salary. A minimum of 15% hike on pay slip component should be there to achieve Rs.27000/- as initial basic. An addition of another 15% should be allocated to cater to other benefits like superannuation and others. Friends, to achieve this total of 19.5% should be clinched. If an officer with initial basic of 27000/- gets an increase of Rs 5000/- what will be the increase for a clerk??
Is it not doing injustice to the talented lot of our youth who join banking with lots of aspirations??
2. It is observed that some of the Employees Organisations against the initial stand of UFBU are talking and even going to an extent of issuing circulars that they are against 5days banking. They say that their employees need to sit an extra hour. Is it not disgusting friends to come out with this information from employee organisations?? Will the young brigade of these organisations tolerate this injustice? Are we not in CBS environment?? Is it possible to leave the office without closure of the batch??
3. Our vibrant leader has also highlighted the ill effects of the Insurance policy that is proposed to be introduced. Are we so ineffective that we cannot deal directly?? Come what may lets not allow M/S Dastur and co..
Friends, based on the information given by our Beloved General Secretary I would like to ask you
1) Is it not the right time to fight for the Officer"s Community separately??
2) Some of the Employees Organisations are very vocal against 5 days banking, giving very very damaging and lame excuses?
3) Is it not true that the banking industry is turning towards Officers oriented industry??
4) Is it not the time to Consolidate the strength of Officers Community and support AIBOC LEADERSHIP to fight individually for OFFICERS?
5) Come on friends, some of the organisations are talking about other benefits like paternity leave, LFC and others, to dilute wage settlement.. Why cant we discuss those issues bank level beyond wage settlement.
Friends, we have reached a DO OR DIE position. Time is very short.. They may take a final call on February 3rd, 2015. Friends, lets assure AIBOC LEADERSHIP that we are with them and trust them beyond doubt.
Just a call is enough from AIBOC to show our strength. Let our beloved AIBOC walk away from the clutches of those organisations that are against the welfare of Officers.
Lets do the last fight.. Friends lets show our support to AIBOC and ask them to fight for us separately..
Please be vocal and I kindly draw your feedback. TIME IS SHORT.. WE ARE LEFT WITH ONLY A DAY.. SO PLEASE TAKE OUR TO EVERY FORUM.
CBOA ZINDABAD. AIBOC ZINDABAD
https://www.facebook.com/groups/BANKSWAGEREVISION/permalink/643831022388710/
NPA is wrong excuse for Wage Reduction :(collected from facebook)
BY Lakshman Mahto
Kind Attn UFBU convenor & AIBOC Gen Secretary, Gen Secy of NOBO & NOBW.
...
BY Lakshman Mahto
Kind Attn UFBU convenor & AIBOC Gen Secretary, Gen Secy of NOBO & NOBW.
...
We are hearing from more than 2 years that Banks are not having paying capacity due TO LOW PROFITABILITY & NPA.
And most of us were convinced with the reasoning till I clarified them in October about NPA & paying capacity.
Still our Leaders are not able to convince so I bring some additional point for your convincing them and its reasoning.
Friends Staff Cost come under Fixed Cost in the Balance Sheet or GAAP(Generally Accepted Accounting Principal).
It has to be provided for before operating profit declared by Banks or any other institutions. So where is the question of Profit or NPA arises.
If Banks has to run its business It has to provide market related pay and perks. We are mature enough so not demanding Pay and Perks as compared to Private Banks though Mof comparing our business and profitability with Private Banks.
But We need; at least; to run our family to serve our parents, to educate our children's, so our simple demand is Equal salary though our risk and responsibility is far far above them.
Leaders please understand the genuine and reasonable demands of members so that Bankers could manage themselves.
If you are not able to secure these simple demand due to any reasons whatsoever may be personal compulsion, low negotiating skill, or due to any other reason, you have no rights to continue in your chair. Please show respect to chair you are holding, respect trade unionism, and vacate the chair respect fully before you thrown out by member's due to your fear of hand holding by Govt or any other reason.
Let the past glory and decorum of trade unionism be maintained by you and all concerned. You have not done single day strike and fearing govt. When govt is not coming forward with respectable compensation it is the right of the Trade Unionism to go for strike after giving due notice.
Govt has enough time to do whatever within given notice period. As membership at large has started fearing that our Leaders must have done something wrong so they are afraid of the punishment or something fizzy with IBA or Govt machinery.
We are in the last Leg of settlement and request you to show your belongingness towards your membership, towards your union association which you belong to, towards trade unions which flag you are bearing, else tell us brother I did my best, We are not able to do much, any one think that you can do better please come and take the position. This is called maturity and earn respect from members.
Ten Lacs Banker's and thirty Lacs family members are looking towards you. This is last chance for you if we have to maintain unity of Banker's else I declare behalf of not only youth but all Banking fraternity that Bankers has no faith in you and mass resignation of members across the country. God give you power to be strong.
Jan Dhan Yojana didn’t add to PSU banks’ profits: Union
Pune: A bank officers' union has pooh-poohed public sector banks' claim that they are not in a position to concede to employees' demand for a 23% hike in salaries.
"Public sector banks in the country have returned profit of Rs 37,000 crore last year and the employee organizations - working as United Forum of Bank Unions (UFBU) - are asking for a raise which will require only Rs 10,000 crore," said Harwinder Singh, general secretary of the All India Bank Officers' Confederation (AIBOC), which represents 85% of officers in public sector banks in the country.
Taking a dig at Centre's pet schemes, Singh said, "The banks' profitability would have been better if they were not made to implement schemes such as the Jan Dhan Yojana or were compelled to open more branches in rural areas. Such schemes bring considerable strain on human resources without generating any profit. Besides, bad loans of corporates add to banks' burden."
Singh said that profits suffer also due to the government's insistence on extracting as much dividend as possible to shore up its own finances.
Bank employees have been demanding wage revision and other facilities since the earlier wage settlement expired in November 2012. The UFBU has demanded a hike of 23%, but the Indian Banks Association has offered to pay 11% on the basis of 'salary slip earnings' which is a shift from the normal practice of revising wages on the basis of 'establishment cost'.
The next round of talks between the union and the Indian Banks Association is due on February 3
Sri Arvind Kumar writes on Facebook
And most of us were convinced with the reasoning till I clarified them in October about NPA & paying capacity.
Still our Leaders are not able to convince so I bring some additional point for your convincing them and its reasoning.
Friends Staff Cost come under Fixed Cost in the Balance Sheet or GAAP(Generally Accepted Accounting Principal).
It has to be provided for before operating profit declared by Banks or any other institutions. So where is the question of Profit or NPA arises.
If Banks has to run its business It has to provide market related pay and perks. We are mature enough so not demanding Pay and Perks as compared to Private Banks though Mof comparing our business and profitability with Private Banks.
But We need; at least; to run our family to serve our parents, to educate our children's, so our simple demand is Equal salary though our risk and responsibility is far far above them.
Leaders please understand the genuine and reasonable demands of members so that Bankers could manage themselves.
If you are not able to secure these simple demand due to any reasons whatsoever may be personal compulsion, low negotiating skill, or due to any other reason, you have no rights to continue in your chair. Please show respect to chair you are holding, respect trade unionism, and vacate the chair respect fully before you thrown out by member's due to your fear of hand holding by Govt or any other reason.
Let the past glory and decorum of trade unionism be maintained by you and all concerned. You have not done single day strike and fearing govt. When govt is not coming forward with respectable compensation it is the right of the Trade Unionism to go for strike after giving due notice.
Govt has enough time to do whatever within given notice period. As membership at large has started fearing that our Leaders must have done something wrong so they are afraid of the punishment or something fizzy with IBA or Govt machinery.
We are in the last Leg of settlement and request you to show your belongingness towards your membership, towards your union association which you belong to, towards trade unions which flag you are bearing, else tell us brother I did my best, We are not able to do much, any one think that you can do better please come and take the position. This is called maturity and earn respect from members.
Ten Lacs Banker's and thirty Lacs family members are looking towards you. This is last chance for you if we have to maintain unity of Banker's else I declare behalf of not only youth but all Banking fraternity that Bankers has no faith in you and mass resignation of members across the country. God give you power to be strong.
Jan Dhan Yojana didn’t add to PSU banks’ profits: Union
Pune: A bank officers' union has pooh-poohed public sector banks' claim that they are not in a position to concede to employees' demand for a 23% hike in salaries.
"Public sector banks in the country have returned profit of Rs 37,000 crore last year and the employee organizations - working as United Forum of Bank Unions (UFBU) - are asking for a raise which will require only Rs 10,000 crore," said Harwinder Singh, general secretary of the All India Bank Officers' Confederation (AIBOC), which represents 85% of officers in public sector banks in the country.
Taking a dig at Centre's pet schemes, Singh said, "The banks' profitability would have been better if they were not made to implement schemes such as the Jan Dhan Yojana or were compelled to open more branches in rural areas. Such schemes bring considerable strain on human resources without generating any profit. Besides, bad loans of corporates add to banks' burden."
Singh said that profits suffer also due to the government's insistence on extracting as much dividend as possible to shore up its own finances.
Bank employees have been demanding wage revision and other facilities since the earlier wage settlement expired in November 2012. The UFBU has demanded a hike of 23%, but the Indian Banks Association has offered to pay 11% on the basis of 'salary slip earnings' which is a shift from the normal practice of revising wages on the basis of 'establishment cost'.
The next round of talks between the union and the Indian Banks Association is due on February 3
Sri Arvind Kumar writes on Facebook
सरकार द्वारा बैंक कर्मचारियों के विषय मे वेतन व्रद्धि के लिए बैंक के NPA को जिम्मेदार ठहराया हैं परंतु ये बैंक के NPA जो बढ़े हैं इसके लिए सीधे जिम्मेदार सरकार की ऋण माफी योजना हैं जिसमे सरकार ने वोट बैंक के लिए तरह -2 की योजनाओं सवरूप सभी ऋण माफ करने की योजना बनाई हैं जिसने Financial Discipline ही समाप्त कर दिया जिसके कारण आज लोगो की प्रवत्ति सरकार के ऋण माफी योजनाओ के प्रलोभन के कारण एवं सरकारी ऋ...ण वसूली के नियम ही लोगो मे कर्जे को जमा न करने का साहस प्रदान करते है जबकि बड़े -2 कॉर्पोरेट घराने भी सरकारी तंत्र का ही हिस्सा हैं ये भी बैंक के NPA को बढ़ाने का मूल कारण है जिसमे रु 9190 करोड़ 2011-12 के NPA आज रु 216739 करोड़ 2013-14 मे हो गया हैं जबकि ये आम पब्लिक की ही जमा की गई रकम हैं जिसका उपयोग राजनीति मे बढ़ चढ़ कर हो रहा हैं और बैंक कर्मचारी को इसका दंड झेलना पड़ रहा हैंI
My Opinion given from time to time are reproduced below
I draw the attention of members of Indian Banks Association and specially Chairman of IBA who are denying respectable wage hike to bank staff even after lapse of two years and frequent strike undertaken by bank staff . They plead that paying capacity of bank is not enough to meet the load of wage hike. They say that load of Non Performing assets have increased in banks and hence profit of banks have sharply come down.
I ask them simple questions to prove that the reason for denying wage hike is irrational, whimsical, unjustified, improper and illogical.
Are Bank staff responsible for rise in bad loans ?
Why not IBA members who are CMDs of various banks (including past members of IBA who retired ) do not own their responsibility and openly accept that it is their failure and in managing banks properly and honestly and it is their fraudulent or corrupt act which has now resulted in sickness of these banks?
There is no doubt to any bank staff and any unbiased regulating agency that it is they ( member of IBA, present or past ) who caused rise in NPA and fall in profits. Bank staff cannot sanction loan to the tune of crores of rupees to any borrower.
None of officers even upto scale III can sanction loan of Rs. one crore and above. And the bitter truth is that 90 percent of total of NPA of Public sector bank is constituted by big borrowers who have availed loan of Rs.one crore and above. Majority of bank loan which are now in the category of NPA or stressed assets and not recoverable have been sanctioned by either ED or CMD or Managing Committee or Credit approval Committee or Board of Directors of these banks.
As such there is no justification for IBA to deny wage hike to bank staff on ground of high NPA or Low profit.
If at all it is there , it is first they who should be punished and their pay scale to be curtailed. Not only this incentive which they (present and retired CMD and ED ) received due to inflated profit should be recovered. It is they who wilfully and strategically concealed bad assets to show higher profit and to gain incentive bonus from GOI.
I further make an appeal to CBI, RBI or CAG to make forensic audit of top ten banks who have contributed maximum of NPA and investigate the volume of wealth of all EDs and CMDs of all such banks who ruled these banks during last years. They should investigate officials of RBI and Ministry of finance of last ten years who were part of Credit approval committee and who aware part of boards of these banks. It is those top officials . They should look into wealth profile of all those ministers and politicians who were directly or indirectly instrumental in sanction of loans to those borrowers who are not NPA in books of account of top banks.
It is desirable to carry out forensic audit of all bad accounts involving Rs. one crore and above and fix responsibility on all top officials who are fund negligent and whose intention behind sanctioning of loan is proved bad. It is top officials who merely by phone build pressure on juniors for sanction of even smaller loans as per their whims and fancies and it is thy promote who indulge in bribery and flattery.
Further Government of India and Reserve Bank of India should disclose audit reports of all such PS banks which have shown maximum volume of NPA including that of Central Bank , Indian Bank, SBI, PNB, Indian Overseas Bank, Allahabad Bank, United Bank, Uco Bank etc. I further request them to at least publish reports of Forensic audit recently carried out in three or four banks and name of those EDs and CMDs who were heading these banks during last ten years.
If this is honestly scrutinised, I am fully confident all present or retired members of IBA will be exposed . Because it they who caused and who have been predominantly instrumental in rise in NPA in these banks and it is they who safely retired after indulging in bribe based lending . It is they who are now shedding crocodile tears on NPA and who is denying wage hike and it is they who are presenting false picture to GOI and MOF to win the heart of ministers and government officials and to get further rise in their career and to ensure further speedy growth in wealth.
Second point is that banks cannot afford wage hike as demanded by bank staff unions. I am submitting here the reports on key loss making units of the country and want to ask members of IBA and that of GOI and RBI how employees of these loss making units are being paid salary at par with profit making units or you may say uniformly in tune with Central Pay Commission report. Not to speak of teaches any various state government departments, there are several central government departments who have become useless and not functional in the era of reformation or due to inefficiency of government which ruled last six decades .
The fate of some Public Sector Undertakings (PSUs) in India hangs in balance as government .
officials discuss proposals to shut down some loss-making state-owned companies.
With the total net loss recorded at ₹245 billion ($4 billion) in 2012, which has only worsened, cabinet secretary Ajit Seth on Tuesday called a meeting of top officials to discuss the fate of 10 firms which have been making biggest losses.
Some of these PSUs, including Air India, BSNL, ONGC, SAIL, Hindustan Photofilms, Hindustan Fertilisers Corporation and HMT have been consistently bleeding cash and have survived only on budgetary allocations.
The Central government runs around 260 PSUs besides thousands of state-government owned firms which manufacture various types of consumer goods.
HMT: Last week, the government ordered to shut down HMT Watches and HMT Chinar Watches due to their continued losses since 2000. The company posted a loss of ₹242 crore in 2012-13. At the end of March 2012, the company was deep in debt worth ₹694.52 crore.
ONGC: In May, ONGC accused Reliance of 'stealing gases' and claimed a loss of ₹30,000 crore within less than a year of signing a memorandum with Reliance Industries. Following the loss ONGC took Mukesh Ambani's Reliance to court over gas theft, reported TOI. ONGC worried that Reliance drew gas secretly from its Krishna Godavari-D6 block.
BSNL: State-run telecom company incurred a loss of ₹14,979 crore in landline services during 2013-14, where as its overall loss was recorded at ₹7,085 crore.
Air India: This airline has been incurring losses and is trying to refuel its pockets via heavy discounts on fare prices. The state-run carrier halved its operating loss in the financial year. It suffered a loss of ₹2,120 crore in 2013-14, down from ₹3,800 crore in 2012.
Hindustan Photofilms: Incorporated in 1960, the company was well-known for making film rolls with Kodak as one of its brands. It was recommended for shut down in 2003 as it could not compete with other private players. The company approached the courts which gave a stay order on its closure. Its overall losses are around ₹82.33 billion rupees which is about 40 times its paid-up capital.
"There is no future for this company in the current environment. It is a fit case for winding down," an official from the Department of Public Enterprises told Reuters on conditions of anonymity.
Jaitley wants to sell bleeding PSU ulcers: He should start with Air India, BSNL and MTNL-News of 7h November 2014-F Business
Finance Minister Arun Jaitley seemed to indicate a willingness to consider privatisation of some public sector units (PSUs) at the World Economic Forum meeting in Delhi yesterday (5 November).
Some pink newspapers have interpreted this as an indication of serious reform intent, but his precise statement does not indicate any such radical rethink on the government's part.
According to Business Standard, this is what he said: "Certainly, I am open to looking at some PSUs that could do better in private hands. They are being sustained merely on government support. That is not a long-term solution. Taxpayers cannot continue to pay for loss-making businesses."
The Economic Times added this bit. "There are still a large number of them (PSUs) which are almost on the verge of closure, where people are going to lose employment. So, given a choice between their continuing in the present shape or getting privatised, then the second option would be a preferable option."
This is nothing but part of Narendra Modi's known policy of keeping public sector units in government hands, and selling only the loss-makers. Privatising loss-makers is hardly a sign of aggressive reform intent.
However, even here, selling the big losers will at least signal the government's intent to prevent more taxpayer money going down the drain. If the NDA can dump three of its biggest no-hopers, it would be a positive.
For example, Air India. The UPA committed a Rs 30,000 crore bailout for Air India in 2012. This is not a burden that should be thrust on taxpayers, for there is no need for government to run a loss-making airline when there are so many other, and often better, options for flyers.
Or take two other perennial bleeding giants. They are Bharat Sanchar Nigam Ltd (BSNL), and Mahanagar Telephone Nigam Ltd (MTNL). The latter's losses are larger than its revenues, and the former's losses are a third as much as revenues.
This is what Business Standard reported about the state of their finances. "In FY14 (2013-14), MTNL reported a loss of Rs 3,575 crore (adjusted for exceptional gains) on net sales of Rs 3,391 crore. BSNL reported a loss of Rs 7,933 crore on net sales of Rs 25,655 crore during FY13 (2012-13), the latest year for which its numbers are available. The biggest problem for these companies is high employee cost and the legacy of their local fixed line businesses. BSNL has 25 times more employees than Bharti Airtel, the top telecom operator, with half the revenue. MTNL has three-and-a-half times more employees, with barely a tenth of Bharti's revenue."
Are companies whose losses exceed revenues, or those with 25 times the employees they need national assets or liabilities?
There are sure to be many more bleeding ulcers in the public sector system.
So, if Jaitley was serious when he said "taxpayers cannot continue to pay for loss-making businesses", these are the obvious places to begin.
Mint reports that "India has 79 loss-making public sector undertakings of which 49 are sick enterprises." Quoting a reply in the Rajya Sabha, the newspaper said the investment made by the government in these PSUs is Rs 1,57,000 crore.
The NDA government may not be keen on the 'P' word (privatisation) for banks or profitable public sector companies, but surely it can at least get rid of its white elephants that serve no public purpose any longer?
There is one news item in the corridors of Government that they are going to linked pa of CMD of banks to market to attract talent and to save bank from disaster. Government is of the view that if their pay is increased and made equal to that of private banks , these Chiefs will take the bank to greater height , they will safeguard assets of the banks , will stop assets going from good to bad and finally increase profitability of the banks. It appears fully ridiculous to me and Aam Bankers.
This news however will make it clear to Aam bank employees that CMD of Public sector banks who are in IBA negotiating team for finalisation of wage revision for bank staff are more focussed on hike of their own pay. They are not at all bothered whether bank staff are low paid and whether their demand for hike is genuine or not. They talk of hike in their pay and it is pity that bank staff have not yet understood this bitter truth even after lapse of more than two years in fighting for getting demanded hike in Bipartite Settlement.
When government talk of rise in bad debts or erosion in profit the blame bank staff or global recession and talk of poor salary of bank Chiefs due to which talented officers do not like to accept the charge of public sector banks. Though there is no such case in the history of PS banks when any officials have refused the post of CMD or ED on the ground of lower pay. It is only junior or middle management ranked officers who were talented and hard performers who resigned from PS banks and joined private banks and they are now at top post in private banks.
There is not a single example when ED ranked officer of PS bank resigned from PS bank to become directly Chairman and MD of private bank. Private banks create culture and suitable environment where talented employees get elevated and others rejected. On the contrary PS banks are cheating their employees in each promotion process in the name of merit . They promote mostly flatterers and bribe earners who share bribe with them directly in cash or in kind in the form of golden gifts. Without getting top officials in PS banks, one cannot dram of promotion in any scale and one cannot get dram of sanction of big loan.
Therefore if junior officers and middle management officers are not given due weightage and not given adequate salary despite their talent and devotion to banks , they may shift to private bank in greed of higher pay package. They know very well that management of PS bank do not recognise talent and hard workers in internal promotions and they only promote flatterers and bribe earners. Need of the hour is to stop exodus of junior officers and retention of talent in PS banks and it is the demand of time that their pay is given a greater hike and only talented and experienced officers are promoted .
It is unfortunate that in mad rush for branch expansion without proportionate increase in manpower and in an effort to please their political masters that management of PS banks are giving fastest and risk-prone promotion to officers who do not have adequate knowledge and expertise. Due to such irrational quick promotions to officers neglecting and ignoring seniors , work culture in all banks have suffered a lot . This has resulted in hike in bad assets and will continue to rise without any stop .
I have no hesitation in saying blatantly that due to worst Human Resource Management undertaken during last ten years, assets of banks have gone bad or fraud volume have gone up causing huge loss to bank and huge erosion in profit.
It is pity that even Senior officers of RBI and GOI have not yet understood the real cause of bank's sickness. This is why they are prescribing wrong medicine to cure the sickness. It is well known to all bankers that private banks of modern era did not bring man power from Mars planet but they attracted talented workers and officers from public sector banks only. It is employees of PS banks only who opted for private banks sacrificing secure service of government banks. And it is they who used their talent in private banks and could reach top level. It is these employees of PS banks who after joining in private banks have catapulted and taken private banks to such a height . It is they who earned profit for private banks and it is they who stopped rise in bad assets.
Chief of bank do not work and do not process an credit proposal. They rather pollute the work culture and the must by punished for bad works they did in last ten years. The promote culture of flattery and bribery in lending, recruitment and promotions. Their pay hike is not going to solve any problem . Rather they will further spoil the future of bank.
On the contrary if Aam bank staff are made happy , if their pay package is increased adequately to retain them and if they are given justice in promotions, they will work sincerely for the betterment of bank and for growth of bank. They have huge potential to take their bank to greater height if they are given due respect and compensated with good pay package in line with prevalent pay package in other sectors.
If CBI investigation is carried out of top 100 officers of PS banks, it will be proved that they have accumulated wealth fare more than their counterpart in private banks. On the contrary on can find a few hundred clerks or subordinate staff or even officers in Junior or middle or senior management who have accumulated wealth by unfair means.CMD and ED are already leading lavish and luxurious life at the cost of life of poor Aam bankers. So many CMD, ED top ranked officers of PS banks have been caught in corruption, but there are very few instances of junior officers or Aam bankers caught in corruption.
I therefore feel that the decision of government to increase the pay of Bank chiefs and make it market linked, it will be another blunder to ruin the future of PS banks. Chiefs of banks can do nothing if mass Aam bankers are demotivated and unhappy due to exploitation by top officials Aam bankers are leaving banks only because they get better pay package elsewhere.
It is further astonishing and dangerous too that Government is contemplating to attract officers from private banks to accept the post of ED and CMD of PS banks by paying higher pay package. Officer of private who are not well versed with culture and work style of PS banks cannot get desired success. Further there is no such instance in any private bank that they have attracted officer from PS bank and given the post of CMD for private bank directly. Management of private banks give weightage to officers who have been loyal for decades to their banks and who have been well tested and attested. Officers of private banks need not pa Rs.25 to Rs.50 lac to get the post of CMD as happens in PS banks.
http://www.firstpost.com/
My Opinion given from time to time are reproduced below
I draw the attention of members of Indian Banks Association and specially Chairman of IBA who are denying respectable wage hike to bank staff even after lapse of two years and frequent strike undertaken by bank staff . They plead that paying capacity of bank is not enough to meet the load of wage hike. They say that load of Non Performing assets have increased in banks and hence profit of banks have sharply come down.
I ask them simple questions to prove that the reason for denying wage hike is irrational, whimsical, unjustified, improper and illogical.
Are Bank staff responsible for rise in bad loans ?
Why not IBA members who are CMDs of various banks (including past members of IBA who retired ) do not own their responsibility and openly accept that it is their failure and in managing banks properly and honestly and it is their fraudulent or corrupt act which has now resulted in sickness of these banks?
There is no doubt to any bank staff and any unbiased regulating agency that it is they ( member of IBA, present or past ) who caused rise in NPA and fall in profits. Bank staff cannot sanction loan to the tune of crores of rupees to any borrower.
None of officers even upto scale III can sanction loan of Rs. one crore and above. And the bitter truth is that 90 percent of total of NPA of Public sector bank is constituted by big borrowers who have availed loan of Rs.one crore and above. Majority of bank loan which are now in the category of NPA or stressed assets and not recoverable have been sanctioned by either ED or CMD or Managing Committee or Credit approval Committee or Board of Directors of these banks.
As such there is no justification for IBA to deny wage hike to bank staff on ground of high NPA or Low profit.
If at all it is there , it is first they who should be punished and their pay scale to be curtailed. Not only this incentive which they (present and retired CMD and ED ) received due to inflated profit should be recovered. It is they who wilfully and strategically concealed bad assets to show higher profit and to gain incentive bonus from GOI.
I further make an appeal to CBI, RBI or CAG to make forensic audit of top ten banks who have contributed maximum of NPA and investigate the volume of wealth of all EDs and CMDs of all such banks who ruled these banks during last years. They should investigate officials of RBI and Ministry of finance of last ten years who were part of Credit approval committee and who aware part of boards of these banks. It is those top officials . They should look into wealth profile of all those ministers and politicians who were directly or indirectly instrumental in sanction of loans to those borrowers who are not NPA in books of account of top banks.
It is desirable to carry out forensic audit of all bad accounts involving Rs. one crore and above and fix responsibility on all top officials who are fund negligent and whose intention behind sanctioning of loan is proved bad. It is top officials who merely by phone build pressure on juniors for sanction of even smaller loans as per their whims and fancies and it is thy promote who indulge in bribery and flattery.
Further Government of India and Reserve Bank of India should disclose audit reports of all such PS banks which have shown maximum volume of NPA including that of Central Bank , Indian Bank, SBI, PNB, Indian Overseas Bank, Allahabad Bank, United Bank, Uco Bank etc. I further request them to at least publish reports of Forensic audit recently carried out in three or four banks and name of those EDs and CMDs who were heading these banks during last ten years.
If this is honestly scrutinised, I am fully confident all present or retired members of IBA will be exposed . Because it they who caused and who have been predominantly instrumental in rise in NPA in these banks and it is they who safely retired after indulging in bribe based lending . It is they who are now shedding crocodile tears on NPA and who is denying wage hike and it is they who are presenting false picture to GOI and MOF to win the heart of ministers and government officials and to get further rise in their career and to ensure further speedy growth in wealth.
Second point is that banks cannot afford wage hike as demanded by bank staff unions. I am submitting here the reports on key loss making units of the country and want to ask members of IBA and that of GOI and RBI how employees of these loss making units are being paid salary at par with profit making units or you may say uniformly in tune with Central Pay Commission report. Not to speak of teaches any various state government departments, there are several central government departments who have become useless and not functional in the era of reformation or due to inefficiency of government which ruled last six decades .
The fate of some Public Sector Undertakings (PSUs) in India hangs in balance as government .
officials discuss proposals to shut down some loss-making state-owned companies.
With the total net loss recorded at ₹245 billion ($4 billion) in 2012, which has only worsened, cabinet secretary Ajit Seth on Tuesday called a meeting of top officials to discuss the fate of 10 firms which have been making biggest losses.
Some of these PSUs, including Air India, BSNL, ONGC, SAIL, Hindustan Photofilms, Hindustan Fertilisers Corporation and HMT have been consistently bleeding cash and have survived only on budgetary allocations.
The Central government runs around 260 PSUs besides thousands of state-government owned firms which manufacture various types of consumer goods.
HMT: Last week, the government ordered to shut down HMT Watches and HMT Chinar Watches due to their continued losses since 2000. The company posted a loss of ₹242 crore in 2012-13. At the end of March 2012, the company was deep in debt worth ₹694.52 crore.
ONGC: In May, ONGC accused Reliance of 'stealing gases' and claimed a loss of ₹30,000 crore within less than a year of signing a memorandum with Reliance Industries. Following the loss ONGC took Mukesh Ambani's Reliance to court over gas theft, reported TOI. ONGC worried that Reliance drew gas secretly from its Krishna Godavari-D6 block.
BSNL: State-run telecom company incurred a loss of ₹14,979 crore in landline services during 2013-14, where as its overall loss was recorded at ₹7,085 crore.
Air India: This airline has been incurring losses and is trying to refuel its pockets via heavy discounts on fare prices. The state-run carrier halved its operating loss in the financial year. It suffered a loss of ₹2,120 crore in 2013-14, down from ₹3,800 crore in 2012.
Hindustan Photofilms: Incorporated in 1960, the company was well-known for making film rolls with Kodak as one of its brands. It was recommended for shut down in 2003 as it could not compete with other private players. The company approached the courts which gave a stay order on its closure. Its overall losses are around ₹82.33 billion rupees which is about 40 times its paid-up capital.
"There is no future for this company in the current environment. It is a fit case for winding down," an official from the Department of Public Enterprises told Reuters on conditions of anonymity.
Jaitley wants to sell bleeding PSU ulcers: He should start with Air India, BSNL and MTNL-News of 7h November 2014-F Business
Finance Minister Arun Jaitley seemed to indicate a willingness to consider privatisation of some public sector units (PSUs) at the World Economic Forum meeting in Delhi yesterday (5 November).
Some pink newspapers have interpreted this as an indication of serious reform intent, but his precise statement does not indicate any such radical rethink on the government's part.
According to Business Standard, this is what he said: "Certainly, I am open to looking at some PSUs that could do better in private hands. They are being sustained merely on government support. That is not a long-term solution. Taxpayers cannot continue to pay for loss-making businesses."
The Economic Times added this bit. "There are still a large number of them (PSUs) which are almost on the verge of closure, where people are going to lose employment. So, given a choice between their continuing in the present shape or getting privatised, then the second option would be a preferable option."
This is nothing but part of Narendra Modi's known policy of keeping public sector units in government hands, and selling only the loss-makers. Privatising loss-makers is hardly a sign of aggressive reform intent.
However, even here, selling the big losers will at least signal the government's intent to prevent more taxpayer money going down the drain. If the NDA can dump three of its biggest no-hopers, it would be a positive.
For example, Air India. The UPA committed a Rs 30,000 crore bailout for Air India in 2012. This is not a burden that should be thrust on taxpayers, for there is no need for government to run a loss-making airline when there are so many other, and often better, options for flyers.
Or take two other perennial bleeding giants. They are Bharat Sanchar Nigam Ltd (BSNL), and Mahanagar Telephone Nigam Ltd (MTNL). The latter's losses are larger than its revenues, and the former's losses are a third as much as revenues.
This is what Business Standard reported about the state of their finances. "In FY14 (2013-14), MTNL reported a loss of Rs 3,575 crore (adjusted for exceptional gains) on net sales of Rs 3,391 crore. BSNL reported a loss of Rs 7,933 crore on net sales of Rs 25,655 crore during FY13 (2012-13), the latest year for which its numbers are available. The biggest problem for these companies is high employee cost and the legacy of their local fixed line businesses. BSNL has 25 times more employees than Bharti Airtel, the top telecom operator, with half the revenue. MTNL has three-and-a-half times more employees, with barely a tenth of Bharti's revenue."
Are companies whose losses exceed revenues, or those with 25 times the employees they need national assets or liabilities?
There are sure to be many more bleeding ulcers in the public sector system.
So, if Jaitley was serious when he said "taxpayers cannot continue to pay for loss-making businesses", these are the obvious places to begin.
Mint reports that "India has 79 loss-making public sector undertakings of which 49 are sick enterprises." Quoting a reply in the Rajya Sabha, the newspaper said the investment made by the government in these PSUs is Rs 1,57,000 crore.
The NDA government may not be keen on the 'P' word (privatisation) for banks or profitable public sector companies, but surely it can at least get rid of its white elephants that serve no public purpose any longer?
There is one news item in the corridors of Government that they are going to linked pa of CMD of banks to market to attract talent and to save bank from disaster. Government is of the view that if their pay is increased and made equal to that of private banks , these Chiefs will take the bank to greater height , they will safeguard assets of the banks , will stop assets going from good to bad and finally increase profitability of the banks. It appears fully ridiculous to me and Aam Bankers.
This news however will make it clear to Aam bank employees that CMD of Public sector banks who are in IBA negotiating team for finalisation of wage revision for bank staff are more focussed on hike of their own pay. They are not at all bothered whether bank staff are low paid and whether their demand for hike is genuine or not. They talk of hike in their pay and it is pity that bank staff have not yet understood this bitter truth even after lapse of more than two years in fighting for getting demanded hike in Bipartite Settlement.
When government talk of rise in bad debts or erosion in profit the blame bank staff or global recession and talk of poor salary of bank Chiefs due to which talented officers do not like to accept the charge of public sector banks. Though there is no such case in the history of PS banks when any officials have refused the post of CMD or ED on the ground of lower pay. It is only junior or middle management ranked officers who were talented and hard performers who resigned from PS banks and joined private banks and they are now at top post in private banks.
There is not a single example when ED ranked officer of PS bank resigned from PS bank to become directly Chairman and MD of private bank. Private banks create culture and suitable environment where talented employees get elevated and others rejected. On the contrary PS banks are cheating their employees in each promotion process in the name of merit . They promote mostly flatterers and bribe earners who share bribe with them directly in cash or in kind in the form of golden gifts. Without getting top officials in PS banks, one cannot dram of promotion in any scale and one cannot get dram of sanction of big loan.
Therefore if junior officers and middle management officers are not given due weightage and not given adequate salary despite their talent and devotion to banks , they may shift to private bank in greed of higher pay package. They know very well that management of PS bank do not recognise talent and hard workers in internal promotions and they only promote flatterers and bribe earners. Need of the hour is to stop exodus of junior officers and retention of talent in PS banks and it is the demand of time that their pay is given a greater hike and only talented and experienced officers are promoted .
It is unfortunate that in mad rush for branch expansion without proportionate increase in manpower and in an effort to please their political masters that management of PS banks are giving fastest and risk-prone promotion to officers who do not have adequate knowledge and expertise. Due to such irrational quick promotions to officers neglecting and ignoring seniors , work culture in all banks have suffered a lot . This has resulted in hike in bad assets and will continue to rise without any stop .
I have no hesitation in saying blatantly that due to worst Human Resource Management undertaken during last ten years, assets of banks have gone bad or fraud volume have gone up causing huge loss to bank and huge erosion in profit.
It is pity that even Senior officers of RBI and GOI have not yet understood the real cause of bank's sickness. This is why they are prescribing wrong medicine to cure the sickness. It is well known to all bankers that private banks of modern era did not bring man power from Mars planet but they attracted talented workers and officers from public sector banks only. It is employees of PS banks only who opted for private banks sacrificing secure service of government banks. And it is they who used their talent in private banks and could reach top level. It is these employees of PS banks who after joining in private banks have catapulted and taken private banks to such a height . It is they who earned profit for private banks and it is they who stopped rise in bad assets.
Chief of bank do not work and do not process an credit proposal. They rather pollute the work culture and the must by punished for bad works they did in last ten years. The promote culture of flattery and bribery in lending, recruitment and promotions. Their pay hike is not going to solve any problem . Rather they will further spoil the future of bank.
On the contrary if Aam bank staff are made happy , if their pay package is increased adequately to retain them and if they are given justice in promotions, they will work sincerely for the betterment of bank and for growth of bank. They have huge potential to take their bank to greater height if they are given due respect and compensated with good pay package in line with prevalent pay package in other sectors.
If CBI investigation is carried out of top 100 officers of PS banks, it will be proved that they have accumulated wealth fare more than their counterpart in private banks. On the contrary on can find a few hundred clerks or subordinate staff or even officers in Junior or middle or senior management who have accumulated wealth by unfair means.CMD and ED are already leading lavish and luxurious life at the cost of life of poor Aam bankers. So many CMD, ED top ranked officers of PS banks have been caught in corruption, but there are very few instances of junior officers or Aam bankers caught in corruption.
I therefore feel that the decision of government to increase the pay of Bank chiefs and make it market linked, it will be another blunder to ruin the future of PS banks. Chiefs of banks can do nothing if mass Aam bankers are demotivated and unhappy due to exploitation by top officials Aam bankers are leaving banks only because they get better pay package elsewhere.
It is further astonishing and dangerous too that Government is contemplating to attract officers from private banks to accept the post of ED and CMD of PS banks by paying higher pay package. Officer of private who are not well versed with culture and work style of PS banks cannot get desired success. Further there is no such instance in any private bank that they have attracted officer from PS bank and given the post of CMD for private bank directly. Management of private banks give weightage to officers who have been loyal for decades to their banks and who have been well tested and attested. Officers of private banks need not pa Rs.25 to Rs.50 lac to get the post of CMD as happens in PS banks.
http://www.firstpost.com/
TOP TEN LOSS INCURRING ENTERPRISES
| Rs. in Crores | ||
| Sl.No. | Name of the Enterprises |
Net Loss
|
|---|---|---|
| 1. | Fertilizer Corpn. of India Ltd | 1294.00 |
| 2. | Hindustan Fertilizer Corpn. Ltd. | 964.61 |
| 3.. | Hindustan Photo Films Manufacturing Co.Ltd. | 560.90 |
| 4. | Burn StandardCompany Ltd | 442.74 |
| 5. | I T I Ltd | 423.16 |
| 6. | Hindustan Cables Ltd | 295.32 |
| 7. | Konkan Railway Corporation Ltd. | 235.61 |
| 8. | MadrasFertilizer Ltd. | 131.74 |
| 9. | N T C (A.Pradesh, Karnataka, Kerala & Mahe)Ltd. | 103.99 |
| 10. | Brahmaputra Valley Fertilizer Corpn. Ltd. | 99.78 |
| Total | 4551.85 |
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