WHERE DO WE STAND VIS-À-VIS CENTRAL GOVERNMENT STAFF?
Unfortunately, our own comrades cite the mounting NPAs and the consequential lower profits as the valid reason for the inability of the banks to pay more to their staff. I give hereunder certain statistics to refute the above argument and to buttress my case.
Fiscal Deficit:
http://www.moneycontrol.com/news/features/indias-deficit-test-doable-after-all_1269703.html
http://www.financialexpress.com/article/economy/fiscal-deficit-in-apr-nov-touches-99-pc-of-budget-estimate/24959/
http://www.financialexpress.com/article/economy/fiscal-deficit-in-april-november-hits-99-of-budget-estimate/24978/
As per this, the fiscal deficit of the country at the end of November, 2014 was Rs.5,25,134 crores (for 8 months period). At the end of March, 2015, it is expected to cross Rs.6,79,272 crores or 5.24% of GDP (if GDP falls short of the target, then in percentage terms, the fiscal deficit may touch 5.36%). It may be recalled that the Budget Estimate of Fiscal Deficit for 2014-15 was Rs.531,177 crores.
Revenue Deficit:
http://www.financialexpress.com/article/economy/fiscal-deficit-in-april-november-hits-99-of-budget-estimate/24978/
The data showed that the revenue deficit during the period of first 8 months of 2014-15 was Rs.411,075 crores or 108.6% of the BE. At the end of March, 2015, the revenue deficit may touch Rs.6,16,612 crores, as against the budget estimate of Rs.373,848 crores.
Taxes unrecovered:
http://www.business-standard.com/article/economy-policy/rs-2-lakh-crore-tax-dues-cannot-be-recovered-113042900444_1.html
It is officially reported that Rs.5,86,002 crores of taxes are yet to be recovered and a substantial portion of them is locked up in disputes. Nearly, 5% of them are irrecoverable too, because the assessees are not traceable.
In the above backdrop, central government employees earn 40% higher salaries than bankers and enjoy much better service conditions and living conditions. Thus it is clear that there is no correlation between the financial health of an organization and its paying capacity.
Now, you tell me. Don’t bank staff who shoulder greater risks and responsibilities deserve a hike of not less than 50% in their salaries?
Or at least parity with central government staff in salaries and all other service conditions?
Date: 16-01-2015 pannvalan
Showing posts with label wage settlement. Show all posts
Showing posts with label wage settlement. Show all posts
Friday, January 16, 2015
RBI Wants Auditors To Be More Responsible
RBI asks bank auditors to have a stringent monitoring process-Business StandardMumbai
January 16, 2015
Pointing to the gaps in the auditors' work, the Reserve Bank of India (RBI) has asked banks to adopt a more stringent auditing process to ensure that review of financial results and identification of fraud is done more promptly.RBI Deputy Governor S S Mundra said there is a greater need to take a closer look into the asset quality, instances of restructuring of advances, provisioning held, etc. to ensure that there was no divergence with regard to asset classifications and provisions held.
"The point I am trying to make is that if RBI inspectors are able to identify these divergences in the limited time-frame that they are on-site, why the banks' auditors are not able to do so…Is it a question of efficiency of the auditors or is there a much deeper issue - something to do with the transparency of the process itself?," he asked while addressing members of the Audit Committee of the Boards (ACB) of ICICI Bank subsidiaries & other bank employees.
With regards to provisions, he told banks that adequate provisions should be made for post-retirement benefits like pension, gratuity and leave encashment, etc. and the auditors should ask more pertinent questions to the banks with regards to provisioning requirements
"It is important that the ACB asks the right questions to the management about various underlying assumptions that go into computation of the required provisions such as life expectancy, discount rate, expected return on investments, etc. I urge the ACBs to ask uncomfortable questions," he said in his speech.
In light of instances of know-your-customer (KYC) norms violation Mundra has urged auditors to be stricter with the process of background check. Last month, RBI had imposed penalties on ICICI Bank and Bank of Baroda for flouting KYC and anti money laundering norms.
"I believe that the absence of an appropriate punitive mechanism in the banks for lapses has also contributed to their recurrence. Therefore, our expectations from the ACBs would be to closely focus on reasons for such regulatory penalties/sanctions and seek a root-cause analysis for preventing recurrence," he added.
My Comments on auditors' role is very old and is reproduced below.
Officials of RBI and GOI normally sleep and remain dormant controller of banks and think it wise ,safe and prudent to be silent spectator of all irregularities and malfunctioning of these banks as also functioning of financial institutes in general until they are awakened by some outside forces or depositors affected by failure of corrupt bank. However to safeguard their skin, clever officials of so called regulators bodies always use to get certificate of good health of banks from panel auditors . They never bother to verify and ascertain the genuineness of these certificates .
Majority of top ranked officials are made happy by promoters and managers of these banks through costly gifts and cash bribe. Even statutory and regular Auditors appointed to check health of banks are bought by clever officials of banks after extending red carpet welcome to them and after offering attractive bribe and costly gifts for ensuring issuance of certificate of health and for final submission of these certificates to their regulating bodies including Ministry of Finance and RBI
And in this way ,cancer of corruption is allowed to perpetuate grow until it explodes and collapses to end.
Finally a committee is set up to investigate the reasons of failure or to find out the modus oparandi of loot of the bank but action is never taken against any erring officials and to stop happening of such incident in future at other banks because most of them are under patronage of powerful political leaders who were bought during good days of the bank.
This is why story of collapse of banks never ends despite the fact that Indian political leaders and Government of India use to claim every now and then that Indian financial Institutes including banks and chit funds are more safe and sound and there is no risk of failure and no need for depositors to worry.
RBI has also been cautioning consumers against the rising case of credit card and other frauds. Mundra called upon greater sensitivity and increased focus from auditors with regards to having appropriate measures in place to prevent instances of fraud.
"In our recently concluded scrutiny into fixed deposit related frauds in some banks, it emerged that even the caution advices issued by RBI in respect of certain individuals had not percolated down to the branch officials quickly enough to enable appropriate preventive measures… I would say that ACBs should take upon themselves to monitor the trend of frauds, assimilate key learnings and ensure that mitigation measures are put in place by the management," he added.
What I Wrote three years ago is as follows
The Institute of Chartered Accountants of India (Icai), the apex body of accounting professionals, wants the Reserve Bank of India (RBI) to appoint statutory auditors in state-run banks. The accountants’ body has sought the government intervention on this. Till 2005, RBI was directly involved in the appointment of auditors, but now the boards of public sector banks (PSBs) appoints auditors in consultation with the central bank. Until 2005, the appointment of auditors in state-run banks was overseen by an appointments committee with representation from RBI, Icai and the Comptroller and Auditor General of India.
“If appointments are left to bank managements, there may be a tendency to take short-cuts in these regards with possible ultimate deleterious effects on the financial health of the PSBs,”
“This process compromises the independence of auditors and gives an incentive for promotion of vested interest in the appointment of auditors.”
Bankers, experts and consultants criticized Icai’s move, saying this is unlikely to make any major difference in the quality of auditing. Also, any changes in these aspects should equally apply to private and foreign banks as well, as they also deal with public money
“In many cases, auditors do not see eye-to-eye with bank managements (on issues such as) like NPA (non-performing assets) provisioning, implementation of prudential norms, etc., and this is the reason auditors are at all appointed. There must always be somebody who will not look at the business from the point of view of the management, and who will look and act at it from the point of view of good governance,”
“The real issue is not independence, but the quality of auditing, which has seen deterioration in many cases in the recent past,”
I submit my views on above mentioned opinion of ICAI
I fully agree that RBI should appoint auditors for conducting statutory audit of various banks and CA should be held responsible, accountable and punishable if they fail to point out the fraudulent and illegal behavior of bank management. Auditors least bother of faults or fraud committed by banks because it is ultimately banks who will appoint them and pay them charges and extend comforts as per their desire.
Similarly in case of audit of private businessmen and service class people, auditors prepare good balance sheet ignoring all bad points so that they may be paid attractive fees. The more fees they charge, the more auditors will guide ways of tax evasion, concealment of facts related of violation of laws, avoidance of statutory provisions etc.
In brief I can say that auditors are best blackmailers and they can go to any extent against the interest of the government if they are adequately compensated for their advices. It is seen that auditors prepare balance sheet as per need of the businessmen who are inclined to avail higher amount of loans from banks. CA almost works as agent of businessmen and it is they who motivate bank officials for inflated lending in return of attractive bribe money.
As of now none is held responsible for the act of omission and commission. Banks blame auditors and auditor s blame banks for ongoing and perpetual fraudulent activities undertaken by bank management. Auditors are paid huge amount for auditing but they seldom check into records of banks and try to complete statutory audit even at big branches in a day or two even though they claim the bill for three or four days..
It is only when Branch Manager of a branch fails to give best quality of hospitability to auditors or fail to give precious gifts to some corrupt and greedy auditors that auditors try to teach lesson to bank officials and mention even non-mentionable irregularities in their audit report. Similarly at regional or zonal or corporate level various officers of the bank are entrusted the duties of entertaining, hotelling, visiting picnic spots and gifting the team of auditors to get best rating and best reports ignoring all vital information. I have seen many auditors even calling branch officials in hotel with money and gifts and signing financial reports blindly.
Unfortunately RBI officials also do not want to have headache of process of appointment and then controlling of auditors. Banks are violating important rules and laws in concurrence with RBI officials. Assets are not classified as per RBI norms of assets classification and income is booked against income recognition norms set by RBI and for this purpose auditors, bankers and regulating agencies dance as puppet of businessmen who spend money for getting illegal benefits from bank, from government and from RBI.As such even if duty of appointment of auditors is restored to RBI, corruption is not going to end. As long as actions are not taken against evil doers, there will not be any fear in the mind of neither bankers nor auditors.
Million dollar question is who will bell the cat? All are birds of the same feather. Money and only money play the role. The more the bribe is offered, the shorter becomes the eyes and ears of auditors, and also that of all regulating and investigating agencies.
Auditors do not perform auditing to safeguard rule of law and ensure following of accounting principles or for tax compliance in true spirit but play the role of mediating between borrowers and bankers, between tax officials and tax evaders and between law makers and law breakers.
It is auditors who prepares financial statement suitable for sanction of certain amount of loan and who motivates bankers for sanction of the same. It is auditors who teaches businessmen how to avoid payment of taxes and who motivate tax assessing authority to put their signature on assessment orders.
Bankers similarly do not care for safety of their bank but work for self interest. Tax officials do not work for collecting maximum revenue in line with prevalent laws but to help tax evaders so that he or she can get his share through backdoor.
It will not be an exaggeration to say that it is auditors who help in creation of black money in the country in nexus with tax officials and it is again auditors who in nexus with bankers and businessmen help in creation and accumulation of more and more bad assets in bank’s loan portfolio.
Wednesday, January 14, 2015
Fear Of Merger And Consolidation
The official press note release by finance minister today by 7.30 for information.
The finance ministry has asked large public sector banks(PSBs) to hand-hold smaller counterparts to improve the latter’s functioning. It has divided banks in seven pools and a large bank has been appointed as coordinator for each group, to improve internal policies and procedures.
A letter sent by the ministry on this subject has fuelled fears of consolidation among unions of some small banks. The ministry has tried to allay the apprehensions, saying any move towards merger of banks would have to come from banks’ themselves, and the government would not force them into consolidation.
“Some banks had come to us seeking clarification. This is not a step towards consolidation. We just want them to share experiences with each other. Currently, they are working as isolated islands. Why should PSBs, with about 80 per cent market share, lag on so many issues?” said a ministry official.
The banks have been asked to continuously interact and work collectively on issues such as human resources, e-governance, internal audit, fraud detection and protection, recovery, asset-liability mismatch and business process re-engineering.
“They (the finance ministry) want some kind of standardisation in the processes of banks. We can use our collective wisdom and understand best practices from each other,’ said the head of a state-run lender.
In each group, there is one large bank and two or three small banks, except for the State Bank of India-led group, where the five associates of India’s largest bank will be under it. The large banks will interact with the small banks in their group on a monthly basis, to jointly form communication and strategy. The coordinating banks will interact with the ministry every quarter through video-conferencing. Once in six months, there will be a meeting of all the members of all the groups with one another.
“The coordinating bank will take the views of other banks and discuss that with the finance ministry on a regular and urgent basis,” the official added.
THE SEVEN GROUPS
The coordinators and the member banks
State Bank of India
State Bank of Hyderabad
State Bank of Mysore
State Bank of Bikaner & Jaipur
State Bank of Patiala
State Bank of Travancore
2. Punjab National Bank
Dena Bank
Vijaya Bank
3. Central Bank of India
Indian Bank
Allahabad Bank
Bank of Maharashtra
4. Bank of Baroda
IDBI Bank
Uco Bank
5. Bank of India
Oriental Bank of Commerce
Andhra Bank
6. Union Bank of India
United Bank of India
Punjab & Sind Bank
7. Canara Bank
Indian Overseas Bank
Syndicate Bank
Corporation Bank
SBI, Punjab National Bank (PNB), Bank of Baroda (BoB), Bank of India (BoI), Union Bank of India,Central Bank of India and Canara Bank are the seven coordinating banks. While SBI is the coordinator for its five associates, Dena Bank and Vijaya Bank are under PNB.
Other groups are IDBI Bank and Uco Bank with BoB; Oriental Bank of Commerce and Andhra Bank with BoI; United Bank of India and Punjab & Sind Bank with Union Bank; Indian Bank, Allahabad Bank and Bank of Maharashtra with Central Bank; Indian Overseas Bank, Syndicate Bank and Corporation Bank with Canara Bank. These have been formed keeping the CBS (core banking solution) platform in view, officials said.
The finance ministry has asked large public sector banks(PSBs) to hand-hold smaller counterparts to improve the latter’s functioning. It has divided banks in seven pools and a large bank has been appointed as coordinator for each group, to improve internal policies and procedures.
A letter sent by the ministry on this subject has fuelled fears of consolidation among unions of some small banks. The ministry has tried to allay the apprehensions, saying any move towards merger of banks would have to come from banks’ themselves, and the government would not force them into consolidation.
“Some banks had come to us seeking clarification. This is not a step towards consolidation. We just want them to share experiences with each other. Currently, they are working as isolated islands. Why should PSBs, with about 80 per cent market share, lag on so many issues?” said a ministry official.
The banks have been asked to continuously interact and work collectively on issues such as human resources, e-governance, internal audit, fraud detection and protection, recovery, asset-liability mismatch and business process re-engineering.
“They (the finance ministry) want some kind of standardisation in the processes of banks. We can use our collective wisdom and understand best practices from each other,’ said the head of a state-run lender.
In each group, there is one large bank and two or three small banks, except for the State Bank of India-led group, where the five associates of India’s largest bank will be under it. The large banks will interact with the small banks in their group on a monthly basis, to jointly form communication and strategy. The coordinating banks will interact with the ministry every quarter through video-conferencing. Once in six months, there will be a meeting of all the members of all the groups with one another.
“The coordinating bank will take the views of other banks and discuss that with the finance ministry on a regular and urgent basis,” the official added.
THE SEVEN GROUPS
The coordinators and the member banks
State Bank of India
State Bank of Hyderabad
State Bank of Mysore
State Bank of Bikaner & Jaipur
State Bank of Patiala
State Bank of Travancore
2. Punjab National Bank
Dena Bank
Vijaya Bank
3. Central Bank of India
Indian Bank
Allahabad Bank
Bank of Maharashtra
4. Bank of Baroda
IDBI Bank
Uco Bank
5. Bank of India
Oriental Bank of Commerce
Andhra Bank
6. Union Bank of India
United Bank of India
Punjab & Sind Bank
7. Canara Bank
Indian Overseas Bank
Syndicate Bank
Corporation Bank
SBI, Punjab National Bank (PNB), Bank of Baroda (BoB), Bank of India (BoI), Union Bank of India,Central Bank of India and Canara Bank are the seven coordinating banks. While SBI is the coordinator for its five associates, Dena Bank and Vijaya Bank are under PNB.
Other groups are IDBI Bank and Uco Bank with BoB; Oriental Bank of Commerce and Andhra Bank with BoI; United Bank of India and Punjab & Sind Bank with Union Bank; Indian Bank, Allahabad Bank and Bank of Maharashtra with Central Bank; Indian Overseas Bank, Syndicate Bank and Corporation Bank with Canara Bank. These have been formed keeping the CBS (core banking solution) platform in view, officials said.
Corruption Caused PNB To Fall From Rank Number 1
Sri Kamlesh Chaturvedi Writes on Facebook
All India Punjab National Bank Workers Federation has taken note of Malpractices and Corruption highlighted by "Money Life" as also espoused through PIL by Noted RTI Activist Dr. Nutan Thakur before Hon'ble Allahabad High Court.
We think that all officers associations and workmen unions of Punjab National Bank should join together on this issue in as much as that these malpractices have been responsible for downfall of our esteemed Bank from No. 1 position. ( MY comments Below)
PIL against ex PNB CMD K R Kamath for alleged corruption
A PIL has been filed in Lucknow bench of Allahabad High Court against ex Punjab National Bank Chairman K R Kamath and others for improperly assisting PNB Metlife India Insurance Company Limited.
As per Dr Nutan Thakur, counsel for the petitioner M L Sharma, an ex PNB employee, as PNB Chairman Mr Kamath is said to have initiated the joint venture PNB Metlife whose almost entire day-to-day activity is conducted by PNB but PNB Metlife officially provides a minimal commission of 7-8% to PNB.
On the contrary, PNB Metlife provides large amount of unaccounted illegal gifts like valuables, foreign trips to PNB officers for their services to PNB Metlife.
As per Dr Thakur, this is open corruption because no public bank officer can take such personal gratification from private companies. In RTI, PNB has been vehemently denying any such private gifts to its staff.
The PIL says that such an agreement was initiated by Mr Kamath solely for vested interests and hence it prays for immediately stopping this illegal gift-making to PNB officers and to take appropriate action against Mr Kamath, for initiating this illegal arrangement.
MY comment :--
Majority of top officials of all public sector banks establish their business empire during their service period and post retirement they milk the cow and live lavishly. These top officials more often than not use their relations with ministers, top politicians and top officials of other departments to get attractive job even after post retirement. The yestablish business in the name of their relatives. They earn huge money through bribe in cash or in kinds and slowly invest in real estate or in family businesses. That is why I use to say that only honest and sincere investigation by CBI can reveal the truth of corruption perpetuated by top officials of PS banks during their service period.
Million dollar question is who will bell the cat?
There are many retired CMD and EDs or GMs who even after retirement help high value corporate houses in getting sanction of loans and enhancement of credit facilities from PS banks. Working senior officers are afraid of such clever retired officers either due to respect or apprehension that these retired officer may jeopardise their promotion future by telling VIPs who in turn may give lower marks in Interview. Every bank officer knows very well that their promotion to higher scale depends not on their performance but merely on their relations with top officials, ministers and politicians.
It is not surprising that retired officers get the job in IBPS and assigned the duty of conducting interview for various posts. These officers use this opportunity to earn further from aspirant candidates. They apply their linkages to recommend top bankers for promotion of any officer of their choice to ensure their promotion to higher cadre or higher scale or in posting at desired places.
Stories of corruption by top officials during service period or during post retirement are numerous. There is none to raise voice against them and even when someone dare speak the truth , there is none to listen to them or take appropriate punitive and corrective action. Many exposures have taken place in past related to corruption of top officials but none have ben punished suitably till date. The most dirty part of these stories of corruption is that CBI officials and CVC and CVOS help protecting corrupt officers and it is they who exonerate them by taking money . Who will cure the disease?
All India Punjab National Bank Workers Federation has taken note of Malpractices and Corruption highlighted by "Money Life" as also espoused through PIL by Noted RTI Activist Dr. Nutan Thakur before Hon'ble Allahabad High Court.
We think that all officers associations and workmen unions of Punjab National Bank should join together on this issue in as much as that these malpractices have been responsible for downfall of our esteemed Bank from No. 1 position. ( MY comments Below)
PIL against ex PNB CMD K R Kamath for alleged corruption
A PIL has been filed in Lucknow bench of Allahabad High Court against ex Punjab National Bank Chairman K R Kamath and others for improperly assisting PNB Metlife India Insurance Company Limited.
As per Dr Nutan Thakur, counsel for the petitioner M L Sharma, an ex PNB employee, as PNB Chairman Mr Kamath is said to have initiated the joint venture PNB Metlife whose almost entire day-to-day activity is conducted by PNB but PNB Metlife officially provides a minimal commission of 7-8% to PNB.
On the contrary, PNB Metlife provides large amount of unaccounted illegal gifts like valuables, foreign trips to PNB officers for their services to PNB Metlife.
As per Dr Thakur, this is open corruption because no public bank officer can take such personal gratification from private companies. In RTI, PNB has been vehemently denying any such private gifts to its staff.
The PIL says that such an agreement was initiated by Mr Kamath solely for vested interests and hence it prays for immediately stopping this illegal gift-making to PNB officers and to take appropriate action against Mr Kamath, for initiating this illegal arrangement.
MY comment :--
Majority of top officials of all public sector banks establish their business empire during their service period and post retirement they milk the cow and live lavishly. These top officials more often than not use their relations with ministers, top politicians and top officials of other departments to get attractive job even after post retirement. The yestablish business in the name of their relatives. They earn huge money through bribe in cash or in kinds and slowly invest in real estate or in family businesses. That is why I use to say that only honest and sincere investigation by CBI can reveal the truth of corruption perpetuated by top officials of PS banks during their service period.
Million dollar question is who will bell the cat?
There are many retired CMD and EDs or GMs who even after retirement help high value corporate houses in getting sanction of loans and enhancement of credit facilities from PS banks. Working senior officers are afraid of such clever retired officers either due to respect or apprehension that these retired officer may jeopardise their promotion future by telling VIPs who in turn may give lower marks in Interview. Every bank officer knows very well that their promotion to higher scale depends not on their performance but merely on their relations with top officials, ministers and politicians.
It is not surprising that retired officers get the job in IBPS and assigned the duty of conducting interview for various posts. These officers use this opportunity to earn further from aspirant candidates. They apply their linkages to recommend top bankers for promotion of any officer of their choice to ensure their promotion to higher cadre or higher scale or in posting at desired places.
Stories of corruption by top officials during service period or during post retirement are numerous. There is none to raise voice against them and even when someone dare speak the truth , there is none to listen to them or take appropriate punitive and corrective action. Many exposures have taken place in past related to corruption of top officials but none have ben punished suitably till date. The most dirty part of these stories of corruption is that CBI officials and CVC and CVOS help protecting corrupt officers and it is they who exonerate them by taking money . Who will cure the disease?
Tuesday, October 14, 2014
Future Of Public Sector Banks
What Are Factors That Are Affecting the Health of PS Banks ?
(See news on wage revision given below)
Nexus of Top Management & Big Corporates and Bulk Loans Bleeding Banking in India :
Similarly Chief Vigilence Officers and CVOs are palying their role . Afte they picked up from gang of courrpt officers sitting at top posts in various banks. CVOs in general are more corrupt and it is they who earn money to close the chapter of corruption for ever. They too do not have enough staff and neither they are dry honest . As such all cases of bad lending or fraud are closed without any drastic action against real culprit
Pathetic Situation of Aam Banker and Political Games Played by Bank Unions :
MANGALORE: Piqued at delay on part of Indian Banks Association in meeting demand of salary revision of officers, All India Bank Officers' Confederation (AIBOC) has from Monday decided to stop all extra cooperation.
Under this agitation method, officers will strictly observe office hours, and not attend office on Sunday, holidays and work beyond extended officers, DN Prakash, vice president, AIBOC stated here.
In addition, the officers will hold country wide protest demonstrations jointly with United Forum of Bank Unions (UFBU) constituents on October 17 and a one-day dharna, dates of which will be decided by the state units of UFBU, at all state capitals from October 18 to 31. AIBOC will issue media statements, and advertisements on October 30 to mark the second anniversary of submission of charter of demands with rallies in all state capitals.
Prakash, also president of city-based Corporation Bank Officers' Organisation said these decisions were taken an emergency meeting of the executive committee of AIBOC in Delhi recently. The meeting discussed major issues of wage revision for officers, their working conditions and many other issues including seeking stringent action against bank loan defaulters. The meeting was critical of the stand taken by IBA on wage revision.
The committee also authorised the AIBOC leadership to decide on minimum two-day strike along with other constituents of UFBU in the first week of November and indefinite strike, if above measures do not evoke any positive response from either the IBA or the union government. Prakash said as things stand, wages of bank officers are the lowest compared to those in central governments and other PSUs and this is a hurdle to attract talent.
My Comment:
United Front of Bank Unions has asked its members to work to rule and not sit late or not attend office on Sundays and Holidays.
What does it mean?
Leaders of all prominent unions and that of UFBU are well aware that bank offices are usually sitting late in offices to complete the work and they are forced to work even on Sundays and Holidays.
God knows what these leaders were doing when their members were facing torture and exploitation in the hands of bosses. It proves that hitherto these leaders were working on behalf of top officials of ban management and they are equally responsible for exploitation of bank officers.
These leaders know very well that reckless expansion of banks without increasing manpower and manifold increase in business of all banks have forced bank staff to sit late and work on Sundays and Holidays.
These leaders also know very well how top leaders earn by corrupt means by lending to bad borrowers and how main culprits who caused rise in bad debts are promoted instead of punished.
These leaders know how flatterers are promoted and bribe earners are elevated to top post. Now when bank staff talk of wage hike thy talk of work to rule.
Anyway, even work to rule dictate of UFBU has gone unattended and leaders of UFBU are silent spectator. They are totally indifferent whether the agitation programme is followed by their members in true spirit or not .
There is no doubt in it that the agitation or strike will face great flop and again management will keep their head high. God knows when this drama of UFBU will end.
Bank employees are on work to rule on paper since 10th of October 2014. Will anyone confirm here that the advice of UFBU is really put into action or UFBU is firing paper bullets.
http://importantbankingnews2.blogspot.in/2014/10/one-more-news-on-bank-strike.html
(See news on wage revision given below)
Nexus of Top Management & Big Corporates and Bulk Loans Bleeding Banking in India :
Big corporatess are looting banks in nexus with top bosses, mid-segment borrowers have looted bank's branches in towns and cities and small borrowers have decided not to repay the bank loan in villages and towns. Slow poison of small bad loans or deep poison of bulk loans , both have harmed banks to a great extent . Bank staff are mostly silent spectator of large scale loot and to save their corrupt colleague they allow Chirharn of good bankers.
Politiicians are buy in using banks for political gain and they do not want to punish officials of administrative and legal machineries who are wilfully not acting against defaulters of banks.
Who will save the banks? Who is botherd of bank staff and their families.
Poor Auditing Systems in Banks :
Audit and inspection department of each bank is also manned by dirty officers or are suffering from heavy work load due to less number of staff. They just do the formalaities of auditing and inspecting the branches.They are not allowed to give true report of bad lending and fraudulent transactions even if some of honest auditors like to report on it. They have to give good rating to all branches and submit certificate of good health to their bosses even if they detect cases of fraud or bad loaning by bank officials or any irregulalities.
RBI nominated Statutory auditors or concurrent auditors or RBI inspectors are also functioning in the same way as others are . They are victim of gifts and bribes. They all want red carpet wrlcome by bank officials. Huge money spent on auditors, internal or external after all comes from banks expenditure accounts or bad borrowers who managed all illegal expenses to reamin in good book of banks bosses.
RBI Fails In Its Duty As Regulator :
RBI believes in getting certificates of good health from bank CEOs. Whenever any exposure of top bosses comes to light , they will write a letter to the concerned bank and bank in turn will give a certificate that everything is OK. RBI has neither will to verif the truth nor do they have enough staff to verify the veracity of such certificates. Several scams and numerous frauds similar to Satyam Scam has surfaced but none of top officials , ministers, politicians, borrowers and government officials have been taken to task. Always a few junior officers are subjected to little punishment to close the cases of frauds and scams involving hundreds and thousands of crores of rupees.
If RBI honestly investigates the reason of each bad accounts of one crore and above I think majority of current or retired CMD, ED, GM, DGM ,AGM and CMs will go to jail. It will not be an exaggeration to say that only and only corrupt officers have reached top levels and only corrupt officers have moved fast in their career. And it is they who have damaged banks and who will further add fuel to fire because till now no concrete step has ben taken to reverse the trend and no action has been taken against real culprit to send clear message down the line that cases of corruption will not be tolerated.
Pathetic Situation of Aam Banker and Political Games Played by Bank Unions :
Bank staff has lost their self respect and doing slavery to earn their livelihood. Situation is more pathetic than it was before nationalisation.
Bank staff are subjected to sufferings only to serve the political interest of a few dirty leaders. Dirty game of few selfish leaders has not only ruined the future of bank staff , but also contributed largely in deteriorating health of bank assets and sharp rise in NPA and erosion in profit.
Leaders are mostly followers of left parties which have lost their place in political domain. CPI or CPM minded leaders of UFBU do no want early wage settlement to tarnish the image of BJP and Modi. Some of bank staff blame Mr. Narendra Modi , PM for delay. But in fact neither IBA nor UFBU have ever approached PM Modi for expeditious settlement.
Pending issue of Wage Revision and Internal Rifts among Banker
A reading of the messages and comments at Face Book clearly indicates that youngsters in Public Sector Banks are mostly crying on Facebook but they do not think it necessary to strictly follow union line of action.
On the other hand Union leaders do not think it necessary to talk to youngsters before taking a final call on any issue. Leaders act as if they are forced to act. They do not have inner feeling to fight against injustice.
Young bankers do not make effort and do not have enough courage to safeguard banks from bad bosses and bad union leaders.
Old leaders are in general speakers of top bosses. Staff in general are afraid of union leaders and not their bosses. There may not be bigger tragedy than this
Wage structure of bankers have suffered erosion in each settlement during last two decades as compared to that of central government employees. . Delay in settlement has become unavoidable . Is it imaginable for any PSU where wage talks are not finalised even after two years?
Even other PSUs are paying huge sums in Ex-gratia to all staff of all cadres which is as good as bonus. Bankers are deprived of bonus for last two decades. Only a few Subordinate staff are paid bonus.
Whether Things Are Llikely to Improve in Near Future ?
I am unable to dream that government of India will be able to control the vicious circle of bad officials sitting in all offices .All top officials preach good sermons and all speak good words when they are addressing public or bank staff but in practice they do just the opposite . But when someone talk of corruption of high level, they will pass the matter to some others.
See the latest example of Supreme Court order cancelling allocation of coal mines . More than 25 percent of banks advances are related to infrastructure sector and power sector and most of them have been in bad health for years together and for even decades . But clever politicians and clever bankers have put entire blame on Supreme Court order of cancellation of coal licenses. In 2008 they blamed Subprime crisis of USA and later they accused RBI for not lowering interest rate . None of regulators like to pinpoint accusing fingers towards the real guilty , it is their culture. Who will bell the cat?
If the same situation persists, bank staff should leave the idea of improvement of banks and should not hope for respectful service and neither hope for respectful wage hike.
Politicians who have caused much damage to banks to serve their political interest now talk of paying capacity of banks and suggest denial of wage hike as demanded by bank unions on the ground of less profitability and more NPA. Neither Finance Secretary nor FM is bothered of delay in wage settlement and neither they are worried of bank's health. They do not understand that billions of rupees are to protected by bankers and if these bankers are dissatisfied and frustrated, the quality of health will further deteriorate .
They are allowing reckless branch expansion without taking care of quality and quantity of bank staff . Billions of rupees are lost in frauds and scams and bad debts, but the are least bothered. They are positive minded.
AIBOC decides to stop extra cooperation over delay in wage revision-Times of India
15th October 2014MANGALORE: Piqued at delay on part of Indian Banks Association in meeting demand of salary revision of officers, All India Bank Officers' Confederation (AIBOC) has from Monday decided to stop all extra cooperation.
Under this agitation method, officers will strictly observe office hours, and not attend office on Sunday, holidays and work beyond extended officers, DN Prakash, vice president, AIBOC stated here.
In addition, the officers will hold country wide protest demonstrations jointly with United Forum of Bank Unions (UFBU) constituents on October 17 and a one-day dharna, dates of which will be decided by the state units of UFBU, at all state capitals from October 18 to 31. AIBOC will issue media statements, and advertisements on October 30 to mark the second anniversary of submission of charter of demands with rallies in all state capitals.
Prakash, also president of city-based Corporation Bank Officers' Organisation said these decisions were taken an emergency meeting of the executive committee of AIBOC in Delhi recently. The meeting discussed major issues of wage revision for officers, their working conditions and many other issues including seeking stringent action against bank loan defaulters. The meeting was critical of the stand taken by IBA on wage revision.
The committee also authorised the AIBOC leadership to decide on minimum two-day strike along with other constituents of UFBU in the first week of November and indefinite strike, if above measures do not evoke any positive response from either the IBA or the union government. Prakash said as things stand, wages of bank officers are the lowest compared to those in central governments and other PSUs and this is a hurdle to attract talent.
My Comment:
United Front of Bank Unions has asked its members to work to rule and not sit late or not attend office on Sundays and Holidays.
What does it mean?
Leaders of all prominent unions and that of UFBU are well aware that bank offices are usually sitting late in offices to complete the work and they are forced to work even on Sundays and Holidays.
God knows what these leaders were doing when their members were facing torture and exploitation in the hands of bosses. It proves that hitherto these leaders were working on behalf of top officials of ban management and they are equally responsible for exploitation of bank officers.
These leaders know very well that reckless expansion of banks without increasing manpower and manifold increase in business of all banks have forced bank staff to sit late and work on Sundays and Holidays.
These leaders also know very well how top leaders earn by corrupt means by lending to bad borrowers and how main culprits who caused rise in bad debts are promoted instead of punished.
These leaders know how flatterers are promoted and bribe earners are elevated to top post. Now when bank staff talk of wage hike thy talk of work to rule.
Anyway, even work to rule dictate of UFBU has gone unattended and leaders of UFBU are silent spectator. They are totally indifferent whether the agitation programme is followed by their members in true spirit or not .
There is no doubt in it that the agitation or strike will face great flop and again management will keep their head high. God knows when this drama of UFBU will end.
Bank employees are on work to rule on paper since 10th of October 2014. Will anyone confirm here that the advice of UFBU is really put into action or UFBU is firing paper bullets.
http://importantbankingnews2.blogspot.in/2014/10/one-more-news-on-bank-strike.html
Saturday, July 26, 2014
UFBU Responsible For Delay In Wage Settlment
Xth Bipartite Settlement for Wage Revision of bank Employees is due Since Novermber 2012 and for which Charter of Demand was submitted to IBA in August 2012. Obviously Wage settlement is delayed by almost two years . None is serious on it.
Bank staff are looking towards Trade Union Leaders (UFBU), Union leaders are looking towards Indian bank's Association (IBA) , IBA is looking at Ministry of Finance and MOF is watching how economy will change taking help of bank staff , how Government will merge banks to change the agenda, how bank staff will be made busy in completion of task of financial inclusion and so on..............................
It is painful, shameful and disheartening for all concerned that a simple settlement could not be arrived at even after lapse of 24 months. How country will move ahead when working class is not happy is a big question which every one should ponder over seriously.
Already public sector banks are sick due to mishandling by politicians and any negligence further may add fuel to fire.
UFBU is such a trade union which enjoys support of ten lac bank employees of more than thirty banks and Advocates of IBA are product of these banks only. Even than, matter is moving slowly and not moving in right direction.
It is crystal clear that none is serious on their part . Strike by bank staff or revolt by bank staff is not far away.
We will have to realise the correct picture.
1. As per provision UFBU was to submit its Chartered of Demand six month earlier than expiry of 9th Bi Partite Settlement i.e prior to 01.05.2012, so that it could have been finalised within 6 months. Now question arises as to why it was delayed by about 1 year.
2. UFBU had never BEEN WILLING FOR early settlement ( quantum of levy may be the prime reason. As if arrears are less, levy is less. Do you know when these top leaders retire Union pay them 15-20 lac as gift from these levy etc which is bank employees hard earned money). When UFBU represents 100% employees who are more stronger than any other Union and observe every call with full solidarity, conviction, unity and dedication, Why UFBU representing such strongest organisation could not succeed in settlement and had to approach Shri Arun Jaitely.
3. Whether Arun Jaitly will help for a good settlement, when UFBU could not get with a weak Govt. how can you expect from NDA Govt. Kindly see, NDA Govt was previously from 1998 to May 2004 and UFBU could get 8th Bipartite only after NDA Govt and thereafter 9th.
UFBU has lost willpower, conscience and is only responsible for such inordinate delay in settlement.
BEING BENEFICIARY AND MEMBER OF UNION WE CAN RAISE QUESTION ON BREACH OF TRUST.
Bank staff are looking towards Trade Union Leaders (UFBU), Union leaders are looking towards Indian bank's Association (IBA) , IBA is looking at Ministry of Finance and MOF is watching how economy will change taking help of bank staff , how Government will merge banks to change the agenda, how bank staff will be made busy in completion of task of financial inclusion and so on..............................
It is painful, shameful and disheartening for all concerned that a simple settlement could not be arrived at even after lapse of 24 months. How country will move ahead when working class is not happy is a big question which every one should ponder over seriously.
Already public sector banks are sick due to mishandling by politicians and any negligence further may add fuel to fire.
UFBU is such a trade union which enjoys support of ten lac bank employees of more than thirty banks and Advocates of IBA are product of these banks only. Even than, matter is moving slowly and not moving in right direction.
It is crystal clear that none is serious on their part . Strike by bank staff or revolt by bank staff is not far away.
Sarvendra Kumar Singh writes on facebook Today 26th Jul 2014
July 23 at 5:54pm
Almost all bank employees as well as officers are deeply concerned with 10th Bipartite settlement. some one is cursing the pathetic attitude of IBA, most of the bankers after going through several circulars issue by UFBU and its constituents abusing Manmohan Singh, P Chidambaram. Now all of you seem to be confident that Present FM & NDA will certainly become instrumental in settlement.
1. As per provision UFBU was to submit its Chartered of Demand six month earlier than expiry of 9th Bi Partite Settlement i.e prior to 01.05.2012, so that it could have been finalised within 6 months. Now question arises as to why it was delayed by about 1 year.
2. UFBU had never BEEN WILLING FOR early settlement ( quantum of levy may be the prime reason. As if arrears are less, levy is less. Do you know when these top leaders retire Union pay them 15-20 lac as gift from these levy etc which is bank employees hard earned money). When UFBU represents 100% employees who are more stronger than any other Union and observe every call with full solidarity, conviction, unity and dedication, Why UFBU representing such strongest organisation could not succeed in settlement and had to approach Shri Arun Jaitely.
3. Whether Arun Jaitly will help for a good settlement, when UFBU could not get with a weak Govt. how can you expect from NDA Govt. Kindly see, NDA Govt was previously from 1998 to May 2004 and UFBU could get 8th Bipartite only after NDA Govt and thereafter 9th.
UFBU has lost willpower, conscience and is only responsible for such inordinate delay in settlement.
BEING BENEFICIARY AND MEMBER OF UNION WE CAN RAISE QUESTION ON BREACH OF TRUST.
"10th BPS Update" : "Representation of Bank and Insurance Employees"
The Government has received representation/memorandum from employees of nationalized banks and Government Insurance Companies regarding their salaries, pension and other emoluments due to the employees/officers.
The wage revision exercise in respect of employees of PSBs is undertaken through a bipartite negotiation process between Indian Banks’ Association (IBA), representing management of banks who have man...dated it to negotiate on their behalf and the Unions/Associations of bank employees. The last meeting between IBA and Unions/Associations took place on 13.6.2014
In respect of the current wage revision of insurance companies, Central Government has already requested Life Insurance Corporation (LIC) and General Insurers’ (Public Sector) Association of India (GIPSA), coordination body of four public sector general insurance companies and General Insurance Corporation (GIC) to start wage revision consultation with their employee’s unions/associations.
This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today
The Government has received representation/memorandum from employees of nationalized banks and Government Insurance Companies regarding their salaries, pension and other emoluments due to the employees/officers.
The wage revision exercise in respect of employees of PSBs is undertaken through a bipartite negotiation process between Indian Banks’ Association (IBA), representing management of banks who have man...dated it to negotiate on their behalf and the Unions/Associations of bank employees. The last meeting between IBA and Unions/Associations took place on 13.6.2014
In respect of the current wage revision of insurance companies, Central Government has already requested Life Insurance Corporation (LIC) and General Insurers’ (Public Sector) Association of India (GIPSA), coordination body of four public sector general insurance companies and General Insurance Corporation (GIC) to start wage revision consultation with their employee’s unions/associations.
This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today
T K Vidhhya Sagar writes on facebook
WHY BANKING JOB BAECAME DIFFCULT FOR OFFICERS
BECAUSE EVERY ONE TRIES TO GO HIGHER TO USE LOATH OF OTHER AS LADDER , (IN DOING SO HE DOES NOT KNOW THAT ONE DAY HIS LOATH WILL ALSO BE USED BECAUSE GOD IS THERE), OFFICERS TRY TO MAKE HIGHER AUTHORITIES ALWAYS HAPPY (THEY DONOT KNOW THAT EVEN GOD CAN NOT MAKE HAPPY OTHERS ) HERE EVERY ONE TRIES TO SAVE HIS SKIN , SCALE IV ASKS SCALE III TO DO SANCTIONS IN THEIR POWER AND RISK, SCALE IV ALWASY TRIES TO CUT LOAN AMOUNT SO THAT HIS LOANS COMES IN THE POWERS OF SCALE III , SO THAT HE SHOULD BE FREE FROM RISK AND SIMILARLY SCALE III DO TO SCALE II AND OTHER FOLLOW THE SUIT ,
THERE IS NOT HUMANITY REMAINED IN BANKING SYSTEM , CRUELTY PERSISTS EVERYWHERE, EVEN THE TOP AUTHORITIES DONOT TAKE STAFF AS FAMILY , THEY TREAT LOWER ONES AS SLAVE ,
THEN THEY EXPECT OTHERS TO SERVE WITH SMILE
THERE IS NOT HUMANITY REMAINED IN BANKING SYSTEM , CRUELTY PERSISTS EVERYWHERE, EVEN THE TOP AUTHORITIES DONOT TAKE STAFF AS FAMILY , THEY TREAT LOWER ONES AS SLAVE ,
THEN THEY EXPECT OTHERS TO SERVE WITH SMILE
HOW HOW HOW
A DISTRESSED PERSON CAN SERVE WITH SMILE ?
CAN THEY HAVE WATCH ON EVERYONE'S TEETH
A DISTRESSED PERSON CAN SERVE WITH SMILE ?
CAN THEY HAVE WATCH ON EVERYONE'S TEETH
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