Agitation Programme By Bank Unions

CIRCULAR : 2018/5 10.7.2018
Dear Comrades,

• Do not kill Dena Bank
• Remove embargo on lending
• Ensure recovery of bad loans
• Stop indiscriminate closure of branches
• Release recruitments including compassionate ground appointments

All our units and members are aware that bulging bad loans in the Banks have led to increased provisions resulting in Banks ending in losses and erosion in their capital. Since these are matters of serious concern in relation to the health of the Banks, RBI has clamped PCA (Prompt Corrective Action) norms on 11 Banks so far. There are reports that few more Banks may follow suit shortly.

While most of the Banks are facing problems of huge bad loans, higher provisions and net losses, and Banks are working out turnaround strategies, recently the RBI has issued directions to Dena Bank that the Bank cannot make any fresh lending or sanction any loans and has also put a bank on recruitments and appointments in the Bank. Needless to explain that these measures will adversely affect the Bank and would virtually cripple the Bank.

What is needed is effective measures to recover the bad loans, reduce wasteful expenses, increase interest income and other revenue, conserve capital to bring the Bank back to its normal health. Crippling the Bank is not a solution, rather it would be suicidal. When all Banks are facing similar problems, it is not fair to isolate Dena Bank with such directives and harsh  measures.

One can understand shedding high cost deposits and discourage low cost advances. One can understand some caution in sanction big loans. But can a Bank avoid lending at all ?
Can a public sector Bank stop loans to priority
sector and stop social lending or run away from its social responsibilities ?

In the name of RBI directive, there are attempts of indiscriminate branch closures. Even profit making branches are sought to be closed down. We can understand merger of unremunerative branches or relocation of branches to better places. But we cannot agree for large scale closure of branches because branches are the business points and profit centres for any Bank.

Similarly, adequate manpower is a pre-requisite for business development. Already employees and officers are doing their best to uplift the Bank’s health and are willing to extend further co-operation in all measures to restore the Bank to better health. But the workforce is being demoralised through ban on recruitments and even appointments on compassionate
grounds are being prohibited. Without adequate staff, who will implement the revival strategies?

In view of these high-handed and unwarranted directives of RBI, the issue was discussed by AIBEA and AIBOA along with the leadership of AIDBECC and AIDBOU in a meeting held in Delhi today. After discussions, it has been
decided to undertake the following programmes:

 To meet the Finance Minister to submit our memorandum on the need to
withdraw the RBI directive.

 To meet the Governor, RBI to take up the matter to rescind the embargo.

 To meet the top management of Dena Bank to prevail upon them for joint
endeavours to take the Bank out of the present mess.

 To hold Dharnas in 20 important centres to protest against the RBI directive.
(Mumbai, Delhi, Kolkata, Chennai, Ahmedabad, Gandhi Nagar, Baroda, Surat,
Rajkot, Bhavnagar, Mehsana, Hyderabad, Bangalore, Lucknow, Bhopal, Jaipur
Patna, Ranchi, Pune and Nasik.)

 Observance of All India Day in Dena Bank with mass meetings,
demonstrations and badge wearing, etc.
 Submission of Mass Memorandum by all employees of Dena Bank to
Governor, RBI to reconsider the embargo.
Comrades, when Banks are passing through challenging period, when
Banks are suffering from losses mainly due to huge bad loans, the priority
should be to overcome these challenges with the co-operation of the workforce and taking practical and positive measures to turnaround.

We cannot allow such retrograde and adverse directives of RBI which will
further deteriorate the health of the Bank. Hence we all need to stand together in fraternity with the employees and officers of Dena Bank when
their Bank is sought to be singled out by RBI.
With greetings,

Yours comradely,

 C.H. VENKATACHALAM S. NAGARAJAN
 GENERAL SECRETARY GENERAL SECRETARY
 AIBEA AIBOA

UNITED BANK OF INDIA RETIREES' WELFARE ASSOCIATION
Central Committee
Affiliated to AIBRF
Mail:D. Bhattacharyya
"Dipanwita",W1/6, 78 Chetla Road
Kolkata-700027, Mob. 09433017535
Mail Id.:ubirwa@rediffmail.com
Ref No. ubirwa/cc/circular /40 /2018

dated 23 June, 2018

All Area /State Committees and CC Members

In 8th Bipartite Settlement /Joint Note signed by Bank Trade Unions/Associations & IBA in June 2005D.A Payment formula was improved by doing away tapering system and introducing single rate to ensure 100 per cent compensation against price rise to all employees. But for pensioners who retired from service before Ist November, 2002 continued to get Dearness at tapering rate, denying the benefit of 100 percent compensation against price rise as offered to pensioners retired after ISE November, 2002. Thus pensioners were divided into  two classes- one retired prior to 15t November, 2002 and the other retired after 1St November, 2002.UBIRWA filed writ petition in Calcutta High Court in its endeavour to correct this discrimination. Judgments of both the  single and the Division Bench of Calcutta High Court went in our favour. United Bank of India filed Special Leave Petition. (SLP) in Supreme Court against the judgement of Calcutta High Court. Meanwhile, some pensioners in Madras High Court filed a writ on extension of 100 per cent compensation against price rise to pre-Novemver2002 pensioners. They won in single bench, appealed in Division bench but its judgement went against the petitioners. They filed Special Leave Petition which was dismissed by Supreme Court. So when SLP  of United Bank of India came up for hearing Supreme Court disposed the same in line with judgement upholding the Madras Division Bench judgement.

Another problem was that our lawyer was not adequately briefed by AIBRF team who was looking after the case in Supreme Court. In Calcutta High Court the undersigned handled the case. I was not asked to brief the  lawyer. As a result our lawyer failed to defend the Calcutta High Court judgement and this gave the Bank's lawyer to carry the-matter in their favour.

Now we are preparing Review Petition of the judgement to be submitted in Supreme Court within next 2nd July. Our endeavour is to persue our endevour to fight till last. If Review Petition is dismissed we shall go for Curative Petition which will be heard by five (5) judge bench.
Now over 120000 pre- November2002 pensioners are eagerly waiting for the outcome of the legal battl  ' Last stroke of hammer breaks the stone ,
It does not mean earlier strokes were useless"

Petition ( Debesh BhäftäTar )
We have filled the Review in Supreme Court on vide Diary No.23564-2018.
02.07.2018 General Secretary