An Alert Message For Bankers who Aspire Respectable Wage Hike

Rahul Gandhi says that he will not allow PM Narendra Modi till all loans of farmers are waived. He does not know what is volume of such loan.. He does not suggest wherefrom money will come . But when due to such waiver banks will finally collapse, he will definitely abuse Modi .

Rahul Ganfhi does not know wherefrom  Chief Ministers of MP, Rajasthan and Chattisgarh will bring money to waive loans of farmers upto Rs2.00 lakh. But he is adamant on loan waiver because this is the only tool which has always helped his party in winning an election.

It is congress party led government which  damaged basics of public sector banks and now RG is trying to completely destruct PSU banks to serve only and only his political agrnda.

During UPA rule they waived loans to the tune of lakhs of crores of rupees.  And then they suggested for additional sanction of loan to same persons whose loans were  waived by banks. Bankers who worked during that period are well aware of this vicious culture of lending and writing off.

Finally when banks started growing inherent weakness, the then learned Finance Minister  Mr. P Chidambaram started suggesting banks to conceal NPA and restructure loan or evergreen them meaning thereby giving additional loans to all who defaulted in repayment. During his period rating of all banks including that of SBI was downgraded. International rating agencies downgraded rating of our country  and India was one of five fragile nations.

I remember how Xth Bipartite Settlement was inordinately delayed by IBA. First they told that banks are not in a  capacity to accept wage hike. Then they first offered 5% wage hike and after 2.5 year they finally agreed for wage hike but in form of grade pay which resulted in loss of pension and gratuity to retired persons too .They took money even for giving second option of pension to those staff who were not in pension domain.

Now suppose if Rahul Gandhi or UPA comes back in power, loans will be waived and bankers will be denied respectable wage hike. Again Chidambaram like FM will repeat his old game to exploit banks to gain political mileage. Recovery culture initiated by Modi government will be replaced by restructure and evergreening game.

I think wise and prudent bank employees will honestly analyse past and present ,weigh both governments without any prejudice in mind and then decide whom to vote. Campaign by left minded unions may try to kill our conscience and our wisdom but bankers who are working bankers may say how recovery process has been geared up by Modi led NDA government. And without recovery and recycling of fund banks cannot survive long based on capital erosion only.

This is an alert for those bankers who want safe banking and respectable wage hike. After all it is taxpayers money which is distributed in waiver of loans. It is wage hike which gets adversely affected when banks do not incur profit. It is the consequences of evil works of past government only that majority of PSU banks  are now running in huge losses.

As of now 11 banks are under   PCA or facing forensic audit and staff of these banks are feeling emotionally hurt and taunted in market. None of leftist leaders come to their rescue when staff of these banks are not adequately respected, rather they are humiliated.

I think self respect is more important than a small wage hike. These banks are not lending money and staff of these banks have been running from pillar to post for recovery of loans  which their colleagues sanctioned under pressure of higher bosses or in greed of earning bribe. A few bankers damaged fate of all bankers.

Politicians who advocate loan mela and then waiver of loan may never be our well wishers. Bankers have to ponder over it . Whether they want loan waiver and loan mela culture to weaken health of banks or they want a government which help in recovery of bad loans. If banks incur loss , clever politicians as well as top bosses start cursing junior bank staff .

If bankers  want to lead a life with respect and dignity as they used to be and used to lead in seventies and eighties they have to lend money carefully and refrain from waiver of loan as far as possible. They have to apply their brain on misleading messages posted everyday on Facebook and they have to understand the real intention of media men , politicians and left minded trade union leaders who are adding fuel to fire by sending only negative messages about banks. They cry against mergers but keep mum when bank staff are taken to task for which they are not at fault. 

It has to keep in mind that loan waiver culture irrigated, propagated and promoted by Congress party adversely affects repayment culture of every borrower. If loan of hundred farmers is waived in a village , 1000 farmers will stop repayment of loan they took. Not only this even non_farmers stop repaying their loans. And as a result, NPA goes on increasing and profit gets eroded.

Even high profile corporate borrowers start diverting loan money  to other fields so that their Loan account become Non performing asset and then they make efforts for compromise settlement and try for maximum waiver of loan using bribe tool at some level or the other. 

When loan account become NPA , none of political leaders and none of top executives are taken to task. It is always the  junior level staff who are to face punishment in form of suspension or loss of increment or dismissal or humiliating retirement. 

I therefore make an appeal to each bank staff to remain alert and use their wisdom . They have to think why private banks of  25 years existence earn thousands of crores of rupees every year whereas PSU banks incur losses in thousands of crores of rupees though they are in existence for more a hundred years.

24.12.2018 following points are added 

Amount of Loan waiver may come from state govt or central govt or by bank , for farmers or non farmers, it invariably affects repayment culture and give award to defaulters.

In every business there are some bad debts and all business men including farmers have to write off certain debts when recovery become imposible. There is no harm in it and bank can survive even if some loans are written off when some of loan accounts turn bad due to some natural calamities or due to some unavoidable circumstances. There is no problem in it.

Problem arises when loans are distributed as charity under pressure and when loans are written off by open declaration by political parties.

At first during 1980 and onwards the then dy FM Mr Janardan Pujari gave instructions to all states to distribute loans by conducting Loan Melas. This resulted in compromise with quality.

When these account turned bad, Mr Devi Lal announced loan waiver for the first time and then Mr VPSingh used the same tool to win national election.

After that it has become a culture. And unfortunately neither bank staff nor their so called trade union leaders could visualise the consequences of this wrong culture. They could not dream that bank staff will have to beg for 10% wage hike that too once in five years. People used to curse private sector till eighties and opt for govt job even if if it class four or three. Nor they curse govt banks because private sector companies give a minimum of 10% hike every year to good staff that too without asking for it. They should ask their son and daughters to verify this bitter truth..

And all the time when talk on Bipartite Settlement starts, ruling party hesitate in giving wage hike. This is the reason that wage structure of bank staff has faced continuous erosion in each settlement after culture of loan mela and loan waiver became a political tool for vote bank. Otherwise we bankers used to be High Wage Islanders till 1980.

There is no harm if all types of loans given and then written off provided government give wage hike to bank staff as they give to other central govt employees and provide there is no abnormal tax hike. After lapse of four  decades of misrule, bankers have started demanding CPC who used to claim separate BS for bankers.

Time has changed because bankers are misled by some group or other or by some politically ambitious persons. 

My appeal is , all bank staff should try to assess the situation in its entirety without prejudice to caste and community or any political party.

Won’t let Modi sleep till farm loans are waived: Rahul,,___Business Li ne

The Congress asked Prime Minister Narendra Modi to follow the model set by the newly-elected governments in Madhya Pradesh and Chhattisgarh and waive-off farm loans. Party President Rahul Gandhi urged Modi to “stop working” for a few industrialists and address the problems of farmers.

Talking to reporters in Parliament, the Amethi MP said if the BJP government does not waive farm loans, the Congress will do that, if voted to power in 2019. “Modi is making two India’s — one of 15-20 industrialists, whose loans he alleges have been waived off by the PM, and the second India of poor people, workers, farmers and small traders,” Gandhi said.

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Rahul Gandhi will disturb Modi sleep