Pannavalan Pann Says on Facebook
The total Business size of Lakshmi Vilas Bank is not even 4.78% (Rs.38,475 Crores) of what Canara Bank has (Rs.8.04 lakh crores). Similarly, the aggregate Business of Bharatiya Mahila Bank as on 31-03-2015 was only Rs.1,800 Crores, whereas that of Punjab National Bank was Rs.8.82 Lakh Crores on 31-03-2015 (constituting only 0.002% of PNB's aggregate Business).
What is the rationale followed in such selection process?
Does it indicate the shape of things to come in future?
So, will a scale I officer heading a rural branch be made a GM of a bank in future?
My Comments: I praise Mr. Pann for his bold comments.
Management of banks have several times recruited officer from campus directly in scale II or III or IV in the name of specialist and then treated them at par with generalists. In the name of merit , it has become the culture of bank management to ignore and humiliate experienced officers who have been serving them for decades .
There should not be any surprise if an officer related to some minister or VIP s elevated directly to the post of GM or made a Director in a bank or a PSU.
Management of banks have several times recruited officer from campus directly in scale II or III or IV in the name of specialist and then treated them at par with generalists. In the name of merit , it has become the culture of bank management to ignore and humiliate experienced officers who have been serving them for decades .
There should not be any surprise if an officer related to some minister or VIP s elevated directly to the post of GM or made a Director in a bank or a PSU.
Almost All promotions taking place in bank for last three decades and more are on the recommendations of some seniors or some VIPs and Interview gives ample opportunity for pick up a junior and reject a senior.
Interview has the capacity to neutralise high marks given in Annual Performance Reports of an officer.
Bank Management is still pushing demand for campus recruitment . It is Supreme Court which restrained them. They requested FM Mr. Jaitley to make suitable laws for enabling them to recruit officers directly from campus but unfortunately FM has expressed his constraints.
But it is funny and painful that Government is once again trying to give flexibility to banks to recruit officers directly in middle management . This refers news published in Economic Times. It is more or less tantamount to changing the spirit of Supreme court Judgement on Campus hiring . Bankers should remain alert . Government is trying once again to stab senior and experience officers and the outcome of this suicidal step will further destroy fundamentals of banks and aggravate rising trend in bad debts.
Public sector banks will face the same fate as Government run schools and hospitals are facing in most of towns and villages. It is important to say here that recruitment of teachers in such schools use to take place as per whims and fancies of political leaders or on recommendation of administrative officers fully ignoring the merit required for a teacher.
Interview has the capacity to neutralise high marks given in Annual Performance Reports of an officer.
Bank Management is still pushing demand for campus recruitment . It is Supreme Court which restrained them. They requested FM Mr. Jaitley to make suitable laws for enabling them to recruit officers directly from campus but unfortunately FM has expressed his constraints.
But it is funny and painful that Government is once again trying to give flexibility to banks to recruit officers directly in middle management . This refers news published in Economic Times. It is more or less tantamount to changing the spirit of Supreme court Judgement on Campus hiring . Bankers should remain alert . Government is trying once again to stab senior and experience officers and the outcome of this suicidal step will further destroy fundamentals of banks and aggravate rising trend in bad debts.
Public sector banks will face the same fate as Government run schools and hospitals are facing in most of towns and villages. It is important to say here that recruitment of teachers in such schools use to take place as per whims and fancies of political leaders or on recommendation of administrative officers fully ignoring the merit required for a teacher.
Copy of a letter written by Retirees Association to P M Mr. Narendra Modi is submitted below.
Dear Friends,
The text of the letter written by Mr S C Jain,General Secretary of All India bank Retirees Federation(AIBRF) to Hon Prime Minister of India, vide ref No 2015/222 dated 15th Augus 2015 is reproduced here under for information of all:
(AIBRF has also informed that PMO has acknowledged receipt of above letter by the PM, and advised that our representation has been registered under reference no PMGO/E/2015/ oo63455 for taking appropriate action on it )
To
Shri Narendra Modi
Honourable Prime minister
Government of India
New Delhi
Respected Sir
Re: Your Speech on Red Fort on 15.08.2015 on the eve of Independence Day
Sir,
We wish to congratulate and compliment you for your highly energetic and effective speech from Red Fort on 15th August, 2015 on the occasion of 69th Independence Day.
2. We are highly overwhelmed that you have spent good amount of time in your speech praising the bank employees for their contribution to open record number of 15 crores of new bank accounts with deposit of Rs.22000 crores under PMJDY as well as implementing many financial inclusion schemes for common man during last one year. You have correctly recognised the power of banking system and its team in transforming economic picture of the country for its 125 crores citizens.
3. We are also happy to find that you have again reiterated commitment of your government in the speech to implement One Rank One Pension for the retired defence personnel.
4. We wish to invite your kind attention that to realise dream of your government for extending benefits of economic progress to the common men under financial inclusion through banking system, bank employees responsible for implementation of government policies are encouraged and monetarily incentivised during their service period as well as after the retirement. One Rank One Pension is also an effort to incentivise the defence personnel by ensuring the honourable financial security after the retirement. Bank officials are also fighting economic war under your leadership which also equally challenging. Therefore we request you to consider implementing the same principles for the bank retirees.
5. On this occasion, Sir, we wish to draw your kind attention and immediate indulgence for solution of the following long pending demands of bank retirees
(a)About 50 to 60 thousand pensioners out of total 4.5 bank pensioners who retired before November 2002 are not being paid 100 percent Dearness Relief for last 10 years which is available to lakhs of pensioners belonging to RBI and the government sector as well as those retired after November 2002 and retiring now in banking sector and also in government sector and RBI. We have come to know that the file on this issue is pending with the DFS for financial approval for long time. In the settlement signed between bank Unions and Indian Bank Association by way of Record Note dated 25.05.2015, IBA in principle has agreed to grant 100 percent Dearness Relief to those retired prior to November 2002 on humanitarian ground. Despite all the above the matter remains unresolved where the cost involved is very low.
(b) Family pension in banking industry is as low as 15 percent compared to 30 percent for RBI and government pensioners being granted for last 10 years. IBA has agreed to consider improvement in family pension.
(c) Updation of pension has not been done in banking industry for last 20 years as being done in the government sector at the time of revision of service conditions of existing employees and you have again committed to introduce One Rank One Pension principle for defence personnel.
(4) About 5 to 6 thousand past retirees are being denied pension option for last several years for one reason or another despite the fact that lakhs of employees were given one more pension option in 2010. IBA policy to deny pension option to this small group and despite courts asking banks to offer pension option to this group is understandable and without logic.
6. We may mention for your kind information that our organisation represent more than 1.25 lakhs bank retirees from 32 public sector and private and foreign banks.
7.We are approaching you Sir with folded hands to give direction to DFS and IBA to resolve the above issues immediately to create new energy in the team of banking personnel.
With Respectful Regards,
Yours Sincerely,
(S.C.JAIN)
GENERAL SECRETARY
No more hiring from private sector for PSB top jobs: Banking Secretary-Times of India 16th August 2015
NEW DELHI: Having appointed private sector professionals to head two large public sector banks (PSBs), the Finance Ministry on Sunday said further such hiring of CEO and Managing directors in banks would be from existing public sector talent pool and not from outside.
"For five large banks we had different procedure. For remaining banks we are going to hire from the pool of executive directors of the public sector banks itself," Financial Services Secretary Hasmukh Adhia told PTI.
"The eligibility criteria for the remaining bank vacancies have been approved and that is only for competition within the system. For remaining banks there would be normal procedure of selection from among the pool of executive directors," he said.
"For five large banks we had different procedure. For remaining banks we are going to hire from the pool of executive directors of the public sector banks itself," Financial Services Secretary Hasmukh Adhia told PTI.
"The eligibility criteria for the remaining bank vacancies have been approved and that is only for competition within the system. For remaining banks there would be normal procedure of selection from among the pool of executive directors," he said.
Click here To read full article in The newspaper Times of India
Click Here To Read My Past Blogs on Campus Hiring
Click Here To Read My Past Blogs on Campus Hiring
80,000 officers, staff of PSU banks to retire in 2 years -Economic Times 16th August 2015
NEW DELHI: Around 80,000 vacancies are expected to open at top public sector banks in the country, including State Bank of India, as a large number of officers and staff will superannuate over the next two years.
As many as 78,800 employees will retire during the current fiscal and next fiscal, official sources said.
During the current financial year, 39,756 employees are retiring. This includes 19,065 officers and 14,669 clerks, sources said.
Besides, 6,022 substaff would also get superannuated this fiscal year.
About 39,000 employees would be retiring next fiscal. Of this, 18,506 officers and 14,458 clerks would retire from their service from various public sector banks.
There are 22 state-owned banks in India including SBI, IDBI Bank and Bharatiya Mahila Bank. Besides, there are five associate banks of SBI.
Considering vast vacancy in the middle-level position, the government is planning to provide some flexibility in the recruitment.
The Finance Ministry is going to provide flexibility with regard to recruitment at the middle level. Currently, they can hire on contractual basis.
As many as 78,800 employees will retire during the current fiscal and next fiscal, official sources said.
During the current financial year, 39,756 employees are retiring. This includes 19,065 officers and 14,669 clerks, sources said.
Besides, 6,022 substaff would also get superannuated this fiscal year.
About 39,000 employees would be retiring next fiscal. Of this, 18,506 officers and 14,458 clerks would retire from their service from various public sector banks.
There are 22 state-owned banks in India including SBI, IDBI Bank and Bharatiya Mahila Bank. Besides, there are five associate banks of SBI.
Considering vast vacancy in the middle-level position, the government is planning to provide some flexibility in the recruitment.
The Finance Ministry is going to provide flexibility with regard to recruitment at the middle level. Currently, they can hire on contractual basis.
Public sector banks undertake recruitment of staff to fill vacancies on ongoing basis as per their requirements depending upon business volume, business growth employee strength and retirement among others.
Read more at:
http://economictimes.indiatimes.com/articleshow/48499820.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
http://economictimes.indiatimes.com/articleshow/48499820.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Rajesh Goyal Writes on his website allbankingsolutions.com
Indradhanush : A New Framework for Indian PS Banks
It was on the eve of India’s Independence Day 2015 that Government announced Indradhanush for Indian PS Banks. Modi loves to give new slogans which can have some impact on the memory of the listeners / readers. By using the word Indradhanush, the bureaucrats in Finance Minister have tried to please Modi as this indicates 7 colours (steps) and A2G for PS Banks. With this single word, they have tried to paint a beautiful picture which we see in the sky after dark clouds and rains. Before we analyse these in next article, let me try to explain briefly and simple words what is there in the document called Indradhanush.
The said documents contains seven broad heads which we can also call as A2G of Indradhanush. These are
1) Appointments ;
2) Bank Board Bureau ;
3) Capitalization ;
4) De-stressing PSBs;
5) Empowerment ;
6) Framework of Accountability ;
7) Governance Reforms
A) Appointments :
Government had already announced that the post of Chairman and Managing Director in Public Sector Banks to be split into (a) MD and CEO; and (b) Non-Executive Chairman. As per Govt claims this approach is based on global best practices and as per the guidelines in the Companies Act so as to ensure appropriate checks and balances in day to day functioning of these banks. The selection process for both these positions has been made more transparent and meritocratic.
Under the new process of selection for MD & CEO, even Private sector candidates were also allowed to apply for the position of MD & CEO of the five top banks i.e. Punjab National Bank, Bank of Baroda, Bank of India, IDBI Bank and Canara Bank. Three stage screening was done for the MD’s position culminating into final interview by three different panels.
Five MD & CEOs were appointed earlier. Appointments of MD & CEOs of five more banks - Bank of Baroda, Bank of India, Canara Bank, IDBI Bank and Punjab National Bank and Non-executive Chairman of 5 banks were announced now on 14th August 2015. Each of these appointments is likely to be for three years subject to certain other conditions.
The details of this aspect have already been covered by us under an article (Click to open the link)
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B)Bank Board Bureau :
We are aware that announcement for Bank Board Bureau (BBB) was made in Budget speech for the year 2015-16. Now further details have been issued.
BBB will be a body of eminent professionals and officials, which will replace the Appointments Board for appointment of Whole-time Directors as well as non-Executive Chairman of PSBs. The BBB would broadly follow the selection methodology as approved in relevant ACC guidelines.
They will also constantly engage with the Board of Directors of all the PSBs to formulate appropriate strategies for their growth and development.
BBB will comprise of a Chairman and six more members of which three will be officials and three experts (of which two would necessarily be from the banking sector). The Search Committee for members of the BBB would comprise of the Governor, RBI and Secretary (FS) and Secretary (DoPT) as members. The members will be selected in the next six months and the BBB will start functioning from the 01st April, 2016.
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C) Capitalization:
Although PSBs have been under stress, but they are still adequately capitalized and meeting all the Basel III and RBI norms.
Now, the Government of India has shown its intent to adequately capitalize all the PS banks to have a safe buffer over and above the minimum norms of Basel III during the next few years.
Therefore, GoI has made an exercise to estimate the capital requirements based on credit growth rate of 12% for the current year and 12 to 15% for the next three years depending on the size of the bank and their growth ability. It has been presumed that the emphasis on PSBs financing will reduce over the years by development of vibrant corporate debt market and by greater participation of Private Sector Banks. Based on this exercise, it is estimated that as to how much capital will be required this year and in the next three years till FY 2019.
After excluding the internal profit generation which is going to be available to PSBs (based on the estimate of average profit of the last three years), the capital requirement of extra capital for the next four years up to FY 2019 is likely to be about huge amount of Rs.1,80,000 crore.
Out of the total requirement, the Government of India proposes to make available Rs.70,000 crores out of budgetary allocations for four years as per the figures given below:
We estimate that PSB’s market valuations will improve significantly due to (i) far-reaching governance reforms; (ii) tight NPA management and risk controls; (iii) significant operating improvements; and (iv) capital allocation from the government. Improved valuations coupled with value unlocking from non-core assets as well as improvements in capital productivity, will enable PSBs to raise the remaining Rs. 1,10,000 crore from the market. Moreover, the government is committed to making extra budgetary provisions in FY 18 and FY 19, to ensure that PSBs remain adequately capitalized to support economic growth.
The details of how these amounts will be provided to different banks during the current Financial Year (2014-15) have also been provided in the document. [We have excluded these as the details can be referred to in the original document by those who want to work on such figures]
The Banks can also raise capital from the capital markets.
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