Sri Kamlesh Chaturvedi Presents a very nice picture of banks in his following write up:-
I am grateful to one of the young and talented officer who has made interesting comments on my post and made me think what a section of Employees think about ourselves. Had such comments came from outsiders, it would have no value. But these comments have come from one of our younger brothers who works with us. We must be thankful to him for expressing his feelings and observations. This is our failure as Seniors. If our own brothers and colleagues are having such feelings-how we can we convince public ?
This prompted me to share truth and facts so that our young brothers become aware of our ill fate. I remember well that when writ relating to employees of ENBI which got merged with PNB in 1993, was heard in Hon'ble Supreme Court, it was pleaded that productivity per employee in ENBI was 26 lakh per employee whereas productivity per employee in PNB is 42 lakhs and this has made employees surplus and therefore employees have been transferred from surplus zones to deficit zones.
So when productivity per employee was just 42 lakhs, employees were having better time. Now productivity per employee has increased many fold and situation of employees are worsening every year. I am sharing with you all factual position.
When we were dealing with 9th Bipartite Settlement, the total business of public sector banks as on 31-3-2007 was at Rs. 33 lacs crores, whereas on 31-3-2012, the business volume rose to Rs. 85 lacs cores as would been seen from the following Table I
Concurrent to this increase in the volume of business in the Banks, as the figures herein under in Table II would reveal, the number of workmen employees has not kept pace with business growth.
It is pertinent to point out that with the concentration and focus on Casa Deposits, the increase in volume of work is more than proportionate to the increase in business volume. But unfortunately, the number of employees has not gone up along with the growth in business volume. On the other hand, the total number of workmen employees has come down from 4,70,000 as on 31-3-2007 to 4,50,000 as on 31-3-2012. This has obviously resulted in higher workload on the staff. Many a times, employees are required and found to be working beyond their stipulated working hours even to complete the day’s routine transactions
The Tables III and IV below will also explain the increasing business per employee and increasing profit per employee.
Contrary to the general impression that labour cost and wage expenses are going up, it would be observed that over the years, the ratio of wages to total expenses has slided down. Tables V and VI are self-explanatory.
Similarly, it would also be observed that in addition to increase in volume of business operations, there has also been a swell in the number of Branches as can be seen below in Table VII.
Variation in No. of branches and Staff from 2007 to 2012:
This has also resulted in undue pressure of work on the employees. This increased workload has to be properly ingrained and factored in the wages of the employees. Hence the Charter of Demand for a higher wage revision.
No. of new branches added
18,000
No. of workmen reduced
18,000
Inflation and impact on real wages:
Wage is not only the price of labour but must also correspond to the price line. With the alarming level of unabated inflation and with every dose of price rise, the real wages are dipping and getting eroded. The following Table VIII would manifest the enormity of the menace of price rise.
While there is a scheme for compensation against periodical price rise through payment of D A, the unprecedented price spiral in the recent years in the light of the uncontrollable inflation is seriously eroding the real wage and wages are far lagging behind the actual price rise. Hence to catch up adequately with the fast-track inflation, there has to be a matching compensation and hence our Charter of Demands for fair increase in wages and improvement in DA formula.
Increasing Profits and a share in the prosperity:
Everyone will acknowledge that one of the most important contributory factors for improving the profitability is the hard work put in by the workforce in the Banks. The following Table IX will show the impressive profits of the Banks during this period.
While the Operating Profits have increased by Rs. 70,790 crores i.e. 2.7 times, the Net profits have also gone up by Rs. 27,800 crores i.e. 2.4 times over 2007.
Considering the adverse economic ambiance prevalent in our country, these are quite impressive achievements. Notwithstanding various and multiple challenges and constraints, our Banks have earned very good profits and the employees who have worked hard and enabled this success story cannot, and should not be, de-linked for being recognised and suitably rewarded. Naturally, the employees look up with genuine aspirations, for a legitimate share in the increasing profits of the Banks.
Now decide yourself what you feel and observe is true ? In spite of manifold increases in business per employee, profit per employee, increase in number of branches, reduction in number of employees, reduction in establishment expenses-we are not able to attain equality and parity and without understanding and analysing factual position-you are terming a whole generation of bank employees as "Nikamma" and you want more increase in not only volume of work and responsibilities too?
In other words you want to hit those who are already wounded. You are unable to see and realise that rising NPA and entrustment of various expensive schemes on bank employees-the position of public sector banks is worsening. Just go through the loans made to 310 top most defaulters-were these loans made by workmen and small level officers or were made by top bosses and board of directors?
This prompted me to share truth and facts so that our young brothers become aware of our ill fate. I remember well that when writ relating to employees of ENBI which got merged with PNB in 1993, was heard in Hon'ble Supreme Court, it was pleaded that productivity per employee in ENBI was 26 lakh per employee whereas productivity per employee in PNB is 42 lakhs and this has made employees surplus and therefore employees have been transferred from surplus zones to deficit zones.
So when productivity per employee was just 42 lakhs, employees were having better time. Now productivity per employee has increased many fold and situation of employees are worsening every year. I am sharing with you all factual position.
When we were dealing with 9th Bipartite Settlement, the total business of public sector banks as on 31-3-2007 was at Rs. 33 lacs crores, whereas on 31-3-2012, the business volume rose to Rs. 85 lacs cores as would been seen from the following Table I
Concurrent to this increase in the volume of business in the Banks, as the figures herein under in Table II would reveal, the number of workmen employees has not kept pace with business growth.
It is pertinent to point out that with the concentration and focus on Casa Deposits, the increase in volume of work is more than proportionate to the increase in business volume. But unfortunately, the number of employees has not gone up along with the growth in business volume. On the other hand, the total number of workmen employees has come down from 4,70,000 as on 31-3-2007 to 4,50,000 as on 31-3-2012. This has obviously resulted in higher workload on the staff. Many a times, employees are required and found to be working beyond their stipulated working hours even to complete the day’s routine transactions
The Tables III and IV below will also explain the increasing business per employee and increasing profit per employee.
Contrary to the general impression that labour cost and wage expenses are going up, it would be observed that over the years, the ratio of wages to total expenses has slided down. Tables V and VI are self-explanatory.
Similarly, it would also be observed that in addition to increase in volume of business operations, there has also been a swell in the number of Branches as can be seen below in Table VII.
Variation in No. of branches and Staff from 2007 to 2012:
This has also resulted in undue pressure of work on the employees. This increased workload has to be properly ingrained and factored in the wages of the employees. Hence the Charter of Demand for a higher wage revision.
No. of new branches added
18,000
No. of workmen reduced
18,000
Inflation and impact on real wages:
Wage is not only the price of labour but must also correspond to the price line. With the alarming level of unabated inflation and with every dose of price rise, the real wages are dipping and getting eroded. The following Table VIII would manifest the enormity of the menace of price rise.
While there is a scheme for compensation against periodical price rise through payment of D A, the unprecedented price spiral in the recent years in the light of the uncontrollable inflation is seriously eroding the real wage and wages are far lagging behind the actual price rise. Hence to catch up adequately with the fast-track inflation, there has to be a matching compensation and hence our Charter of Demands for fair increase in wages and improvement in DA formula.
Increasing Profits and a share in the prosperity:
Everyone will acknowledge that one of the most important contributory factors for improving the profitability is the hard work put in by the workforce in the Banks. The following Table IX will show the impressive profits of the Banks during this period.
While the Operating Profits have increased by Rs. 70,790 crores i.e. 2.7 times, the Net profits have also gone up by Rs. 27,800 crores i.e. 2.4 times over 2007.
Considering the adverse economic ambiance prevalent in our country, these are quite impressive achievements. Notwithstanding various and multiple challenges and constraints, our Banks have earned very good profits and the employees who have worked hard and enabled this success story cannot, and should not be, de-linked for being recognised and suitably rewarded. Naturally, the employees look up with genuine aspirations, for a legitimate share in the increasing profits of the Banks.
Now decide yourself what you feel and observe is true ? In spite of manifold increases in business per employee, profit per employee, increase in number of branches, reduction in number of employees, reduction in establishment expenses-we are not able to attain equality and parity and without understanding and analysing factual position-you are terming a whole generation of bank employees as "Nikamma" and you want more increase in not only volume of work and responsibilities too?
In other words you want to hit those who are already wounded. You are unable to see and realise that rising NPA and entrustment of various expensive schemes on bank employees-the position of public sector banks is worsening. Just go through the loans made to 310 top most defaulters-were these loans made by workmen and small level officers or were made by top bosses and board of directors?
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