Who will punish corrupt bankers

Housing scam which surfaced yesterday and which resulted in arrest of eight high rank bank officials are only tip of the iceberg. Corrupt officers are sitting on top post of each bank and hence they ensure promotion to only those who are expert in the art of earning money and who is number one corrupt. Interview panel in each promotion process gives the scope to pick and choose yesman for branches where some money can be earned.
I would like to request RBI , Government of India, Ministry of Finance and particularly to all responsible officials to prepare a list of NPA borrowers in various segment of amount involved and try to know the person who sanctioned and who failed to monitor and also who supported indirectly from administrative offices .Officials who are corrupt and who sits in controlling offices manage bad advances through Branches and contribute in generation of more and more bad assets known as Non Performing Assets (NPA).

RBI can direct each bank to furnish such information and then RBI officials can make a study of such report to identify corrupt executives . Now a days such information can be generated through CBS without any loss of time and without any discomfort. Even controlling officer can generate such list if he or she so likes. Excel sheet can be prepared very easily on following columns.

1. NPA Account with value involved upto Rs.5.00 lacs (small borrowers)
2. NPA accounts with dues more than 5 lacs to o 50 lacs (medium size borrowers)
3. NPA accounts with dues more than Rs.50 lacs to Rs.5.00 crores (large borrowers)
4. NPA accounts with dues above Rs5.00 crores. (Very large borrowers)

Each segment should contain following columns so that it can precipitate and clear;ly reflect the name of bad bankers.

1. Name of borrowers
2. Date of sanction
3. Name of Branch head or credit sanctioning officer
4. Name of immediate controlling head called as regional head or circle head or zonal head

Then anyone can select through excel and filter data as per person on all India basis. It means bank should prepare a list of all bad borrowers which have been sanctioned by a top executive say ED, then General Manager, Deputy General Manager and so on up Regional Head and Branch Head. Such list should be prepared for each and every executive in the bank starting from top scale VII to scale I. The person who has created NPA in all branches and Regional Head who selected more and more corrupt branch Manager should be treated as bad bankers.

First make a list of big amount NPA borrowers created by regional head or circle head in India during last five years irrespective of his posting (sanctioned directly by him or through branch manager working under him)’

This will indicate the name of executives who created maximum NPA and prove that such officials are getting fastest promotion and all such people are sitting on top post and hence there is none to punish bad officers.

Such executives have very good relation with top bosses and also powerful persons sitting in RBI and banking division. This is why no action is taken against top officials and in all cases of misdeed junior officers are made scapegoat. Such officers if trapped accidently can manage tactfully even CBI or vigilance officials and ensure closure of files or at least ensure awarding of minimum punishment.

This is why there is dissatisfaction in the branches and administrative offices among junior officers in all banks under public sector. Bank officers are least bothered at field level whether NPA is increasing or profit is shrinking. Clever bankers are always expert in making lame excuses of global recession or bad monsoons or debt relief and so on.

Corrupt officers are quickly promoted and posted at good places in big towns whereas good officers who are serious workers are placed at bad places and in critical branches.

It is therefore dire need of the hour to find out and identify corrupt officers at top level and ensure that they are punished and without which one cannot imagine of NPA coming down in any bank. When top officers will be booked to task , clear cut message will reach upto the bottom level officers and only then juniors officers will desist from corrupt practices and top officers will not post and promote juniors on the basis of flattery or on the basis of golden and diamond gifts they get from juniors.

When bank management can publish the name of bad borrowers in Newspapers, Government of India or RBI or Banking Division in Ministry of Finance can also publish the list of bad bankers. At least thye can prepare a list of such bad executives whose advances invariably become bad and RBI can ensure their demotion forthwith.

Rather name of sanctioning officer and controlling regional head must be published along with the name of each bad borrower published in newspaper. When action can be initiated against borrowers to take possession of assets by banks, why not illegal assets of bad bankers also should be confiscated and sold off before public.

Only a healthy culture in bank can help in reducing NPA percentage and help in becoming top ranked performer bank.. Hitherto CEOs and EDs in banks are showing lesser percentage of NPA by increasing volume of fresh and short period advances or by selling NPAs to Arcs. Days are not far when this manipulative tactics will also fail to salvage banks. It is therefore necessary that actions are initiated before it is too late.

Exposure of one of the best CMD of Bank

Do you know a Bank of flatterers, sycophants, yes-men and money makers?

Do you know a Bank where most of top executives are accused of corruption, where officers are promoted, posted and transferred as per whims of big bosses and where seniority is meaningless, merit is useless, only godfather is counted?

Where old officers are shunted away and humiliated whereas young but incapable are being given better scale and better posting?

Do you know a bank where goof officers do not to be promoted, do not take part in promotion process, do not want to take initiative, and do not put his knowledge, innovative ideas into action?

Do you know a bank where art of making career and leading a comfortable life is to praise bosses, union leaders, give golden gifts to bosses and union leaders, earn money through illegal means and share the same with bosses and leaders?

Do not bother if accounts becomes NPA, you should know how to rephase them, restructure them, hide them from system driven NPA or ultimately write off them or compromise with borrowers - that too if you get some incentive from bank as well as customers. You need not worry for action even if commit fraud or indulge in corrupt practices, provided you have some God father in higher management or in Union domain. On the contrary you are not safe even if you are dry honest, late sitter, loyal to bank and hard worker if you do not know how to keep your boss happy.

In brief, do you know a bank where manipulation is the backbone for survival and flattery is career maker?
Do you know Bank Where Good officers are afraid of sanctioning credit and bad officers are going up and up by making bad advances? A bank where experienced, knowledgeable, talented officers are kept away from mainstream and deprived of promotion because they do not support lending to bad businessmen and they only make sincere efforts for recovery from NPA borrowers even if their action hurts some or the other executives.

In a bank where Executives are those who know how to keep higher bosses happy , who are expert in keeping RBI people happy and who are well versed in concocting attractive report to please bosses in Banking Division , Ministry of Finance.
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Do you know a bank where loan are disbursed and waived only if one has good liasoning with big bosses and big union leaders?

CA s are purchased and gifted to put their signature blindly as CAs normally desire. There are many types of NPA, declared, hidden, system driven, EAS, SMA, restructured standard etc. Latest strategy is to sell NPA to ARC. Notwithstanding this or that, hidden NPA is likely to explode sooner or later.

Who will after all cure the system where all are birds of the same feather in bank or in RBI or in Ministry?

Who will verify and assess he assets of big bosses?

Bosses know the art of making clerks and innocent officers as scapegoat for all of their misdeeds; they use phones and verbal instructions for ill motivated works. When clerks or junior officers commit mistakes, when fraud or robbery takes place in a branch, Manager is held accountable and punished. But when most of the BM indulges in malpractices, Regional heads are not booked to severe task. So bosses need not worry.
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After all Time will expose the reality of such bank and its executives, ED and CMD. Let us wait for result of Half year ended and half year to come. Last quarter result exposed Indian Bank. Future will expose some other bank. I do not know when RBI will open the eyes.

The problem is that everyone in the government is accustomed to accepting shoddy work, corruption and reign of injustice perpetuated by gang of flatterers. As a matter of fact evil doers are in all government offices; the huge malady lies in not only one or two banks, but in all departments where government is having direct or indirect control.

I am astonished that efforts are being made to give a hike in the salary of those officers who are executives of banks and who are solely responsible for the mess they have created in bank. These corrupt executive already got preferred treatment in last Bipartite Settlement. Only quality of these executives is that they speak good English to influence their bosses.

Rule for Corrupt, Rule By Corrupt And Rule of Corrupt

A few persons have been removed form corrupt wealth games team after week long serious exposure made by TV media. Actual guilty who promotes and irrigates corrupt activities by verbal or telephonic instruction is more often than not acquitted or awarded. This is why Suresh Kalmadi does not accept the moral responsibility in CWG scam.Mrs. Shiela Dikchhit is beyond blame as because she is CM of Delhi.

It is not Suresh Kalmadi alone who is standing and telling boldly that he will not resign despite clear cut exposure made by Times Now, IBN and other TV channels. In fact Congress Party as a whole is behind him.They are birds of same feather. All are sitting in glass chamber. Almost all top persons in the party or in administration are corrupt. Because only those who are yesmen, who are having expertise in flattery, who know the art of earning bribe and art of sharing the same with bosses, ministers, police person, CBI, vigilance and other linked persons can get promotion, best posting, responsibility of managing big jobs, contractors, advertisers and other bribe fetching activities and it is they who get all favurs from all bosses and heavy weights. Who will then bell the ca t is a million dollar question.

Another bitter truth is that in our country big shots in all offices are always left untouched from punishment in all cases of big scams, scandals, frauds or any irregular activities. In all such cases, clerks, peons, small level officers or persons who do not have any Godfather to back them are made scapegoat. And top level officers and ministers on the other hand get better assignment and quickest promotion.Lalu Yadav became Railway Minister inspite of his clear cut involvement in 1000 crore worth Chhara Ghotala. Even in current case of Commonwealth Game Scam, if proper investigation is made it will undoubtedly reveal that most of team members have black background and corrupt history.

Media will cry and become silent gradually. Some task force committee or some inquiry committee will be formed to look into the mater and submit report and then as usually happens, entire episode will be sent for hibernation for ever. Because such team is also made of same flatterers and commission earner.

In fact this is the true story of Indian politics, Indian judiciary and Indian administration where all cream posts are filled by flatterers, yes-men and such persons who are having PhD in taking care of bosses in money matters, welcome issues and secrecy principles bypassing all moral values. One can become even President of India by this art.

In India honesty and merit is never attached any value in the matter of promotion, posting and allotment of duty. And this is the root cause of rampant corruption. And inaction from judiciary adds fuel to fire. Honesty is seldom, not always the best policy in India. Indian as to learn to respect honesty and sincerity and then only corrupt person can be discarded and weed out from the system and this is a Himalyan Task which can be accomplished by a dare devil person, if at all some such person becomes PM of the country.

Banking industry is full of such officers sitting at the top posts and none at junior level has courage to protest ill-motivated actions of executives.
Mera Desh Mahan, Yahan sub kuch bikta hai, Insaniyat bikti hai,Iman bikta hai, pyar bikta hai, admi bikta hai. Aurat bikti hai aur phir kya bachta hai

Union Bank Leaders

Leaders on whom lies the fate of an organisation or trade union or a state government or a country have become lover of flattery, have become lover of money and lover of high post without merit. Root cause of all mishappenings, irregularities, fraud or cheating lies in nothing but flattery which shuts the eyes, ears and mind & heart of leaders. Leaders become self cantered and sacrifice the interest of the masses for whom they are meant. They forget God and minimum moral and religious values. New record of corruption will precipitate if a total investigation is made into what Shiela Dikchit has done in Delhi. When a person becomes popular he becomes more prone to bad habits and there are more chances of committing fraud with the system.

Corruption cannot end in India until government takes harsh steps to stop flattery. Yes man and bribe give equally responsible for rampant corruption and for damaging the right course of action. Looting of money from a person through bribe is less harmful than looting of pride, self respect of service men or businessmen or professionals. All is well sir or No Problem sir culture is killing the enthusiasm of real workers, real Indians and real businessmen because flatterers by dint of their actions hypnotize the top officials and ministers and get success in getting undue benefit or up gradation in service or better posting and quick promotion in service at the cost of many genuine workers.

CVC as such cannot stop corruption said to be rampant in work done for Common wealth Games in Delhi because they also become victim of this disease. CVC has to survive in the same system where perpetuators or corruption are sitting at the helm of affairs. Officers at vulnerable and responsible post at CVC or CBI or audit offices are chosen from a team of best flatterers. CVC has to be bold enough and has to stop corruption in transfers, posting and promotion as also in recruitment processes of government employees and bring about maximum transparency, eliminate the channel of Interview which gives rise to whimsical and biased decision. 

When honest and sincere officers are shunted in remote areas or posted in insignificant corners it is but natural that such officers will prefer indulging in flattery than wasting energy in good work.

CVC or for that matter Government of India has to make judicial process quick, affordable effective and honest so that victim of the system may approach court without any fear of repercussion. Fear of punishment may only keep flatterers and corrupt person away from the system. Similarly media has to take pro active and innovative initiativesto expose corrupt practices, conduct sting operation and do all acts deemed fit to expose the mischievous elements occupying top posts in government offices, ministry , banks, insurance companies, CBI, vigilance department, judiciary, tax departments etc who sell transfer, posting and promotions in service sector or who willfully torture and blackmail a good businessmen who do not flatter or bribe an officer.
Dkjain
30.07.2010

9th Bipartite Settlement in Banks

I call upon CMDs of various banks to listen the voice of silent protestors, read the contents of writs filed in various high courts, opinion published in website such allbankingsolutions.com, open your eyes and ears and act fastly to correct the mistake done on 27.04.2010.

Please do not kill the voice coming from your own heart and mind. None of the respectable, wise, experienced, intelligent , talented, law abiding , and knowledgeable person in the banking industry of lawyers club of India will concur with injustice done to Non pension optees through the 9th Bipartite settlement

Since courts are slow, you cannot perpetuate reign of injustice in wage agreement for long as you are doing injustice in promotion processes and transfer decisions and employees of India cannot allow you to use discriminatory and divisive wage scale defying fundamental Laws of equality enshrined in Indian Constitution.

Various letters have been written to important dignitaries of the country in this regard by so many persons working in different banks. But unfortunately politicians of our country also do not understand the problem of victims for years and years, decades ad decades as long as there is mass movement, violent agitation arsoning, strike, lock out, destruction of public property, closure of banks and ATM, disturbing customer service etc .

It is ridiculous that those politicians in India suggest dialogue with naxalites and terrorists but never try to solve the problem from the root before it takes violent form. The said agreement was also signed after agitation and strike done by bank employees many times during preceding 30 months. It is sad that a few greedy leaders, I say hardly 10 persons spoilt the career and fate of 10 lac employees.

When king is Tuglak, everything is possible. When Koda is Chief Minister of a state, everything is possible. When IAS officers are like Mr Rathod, murder of innocent girl like Ruchika is not surprising. When person like Raju is CMD of Satyam computers, when CAs are dishonest certification of fake balance sheet is not impossible in India and similarly when CAs are corrupt, rating agencies rate on the basis and quantum of bribe and fees they get, happening of fraud or manipulation with balance sheet is not impossible for banks and I it is not astonishing to anyone in India at least.

I submit a copy of letter written by one retired officer.

The Editor,

Business Line



Dear Sir,

Stalemate over banking consensus

Queer banking equations implanted in the Pension Agreement signed along with ninth bipartite settlement attracted nationwide resentment among bank men, delaying its implementation indefinitely. A group of dissatisfied employees secured stay order from Madras High Court putting IBA and bank unions in the defense box. When they merely objected the recovery of a portion of their pay as contribution to Pension Fund for giving them entry to Pension Scheme, the long cherished desire of the retired to get pension is delayed further, adding to their more than a decade old sufferings. The irrational terms providing for recovery of 2.8 time revised pay from new entrants in respected of the employees on rolls as on the date of agreement (27 April, 2010), recovery of 156 percent CPF and interest paid at the time of retirement in respect of the retired, &nbs p; forfeiture of pension from the date of retirement to the arbitrary date of 27 November, 2009 to the retired, payment of commutation reckoning the age as on date of fresh option instead of the age of retirement, non inclusion of resigned employees who have qualifying service for Pension etc . are tools devised to take away huge sums from the prospective beneficiaries of Pension Scheme. ; It becomes wild justice, quite illegal and irrational, in the context of the Pension Regulations being one and the same as on the date of agreement and existing Pension Opted employees have derived the benefit without any levy or penalty. &nbs p; While addressing the anomaly of denying the social security benefit to a large segment by extending them a fresh chance for option, five fresh glaring anomalies have been infused into the scheme, making it a black agreement altogether.

In earlier Bipartite settlements, after setting apart a portion of the total load factor towards Pension Fund, the remainder alone was distributed among CPF opted and Pension opted, putting the former to erosion of emoluments in each agreement, benefitting the latter. ; The proposal initially mooted for a uniform recovery of 1.6 times revised pay for Nov.2007 from all existing employees for sharing pension costs got changed overnight at last hour, settling down for sharing 2.6 times pay from CPF opted alone to their detriment. &n bsp; The 17.5 percent pay hike in the industry for the six days working bank employees in contrast with the 40 percent settled for five days working government staff has inculcated in them a feeling that it is the result of the additional cost of Pension rather than of the low profile bargaining of Unions. They seem to be ignoring the core fact that Pension is the consideration for services rendered and not for a mere option letter exercised on a bit of paper. While Pension opted are getting some amount as arrears of salary, almost the entire amount is snatched away from the other category. Unions that announced the twin achievement of Wage Revision and Pension Option as a grand gala victory took a somersault saying that they had no option other than agreeing to the rude terms of IBA for securing fresh Pension Option.

Recovery of 156 percent of CPF paid in the case of the retired (up to March 2010) would entail to them huge pecuniary loss as many will have to shell out as much as Rs.15.00 lakhs when their counterpart retiring in April,2010 or afterwards will have to pay a meager sum of Rs.0.30 lakhs to Rs.1.20 lakhs only. The impact of the insignificant cut-off date, which does not appeal to any reasoning is a severe blow to several beneficiaries.

The agreement provides for payment of Pension to the retired from 27th November, 2009 alone irrespective of the date of retirement. Though in all fairness, they are eligible to get monthly pension and interest on each payment date from one decade back, they are victimized through recovery of 156 percent of the CPF paid at the time of retirement uniformly. &n bsp; This apparently is a dual penalty to them. The modality is totally enigmatic and carries with it unfairness of an extreme nature.

Pension Regulations for computing commutation recognizes the age next birthday at the time of retirement whereas the agreement stipulates age on the date of fresh option to the detriment of all the retired. &nbs p; This leads to application of entirely different yardstick under the same Regulations to different beneficiaries without any logic. The delay in implementation of the agreement is worsening the situation for the retired.

Non-inclusion of the resigned employees in the scheme is a further anomaly as the resigned possessing enough qualifying service are denied the social security benefit altogether. & nbsp; When VRS retirees who are paid an incentive for going out are also considered for pension, the resigned are to be invariably extended the benefit in all cases where they are paid all other terminal benefits. Qualifying service and not the mode of exist shall be the vesting criterion for Pension unless the termination if a compulsory one through disciplinary procedures.

In financial sector, Public Sector Banks appear to be competing with others to secure the worst employer award by denying proper compensation to the work force who run the shows for the progress of the nation. Even as profits are soaring for each bank, the key men are attempting to add to their cosmetics by transferring higher profits to the exchequer, which goes to part finance the pension and wages of employees in other sectors and government. They should say what banks would have done if all had opted for pension when initially offered. &nbs p; The deprived could not opt earlier when terms of offer contained a penal clause enabling forfeiture of entire past service for participation in strike and were not given fresh chance when the adverse chapter was scrapped in 1999. While denying pension to the retired, banks that function on sole premises of laws of the country and depend on them for each transaction are blatantly flouting substantive law. Retires and working, Pension Opted and CPF opted all are, without exception, growling over the agreement percolating with gross anomalies. The retired who did their best for banks are on crossroads for want of income for subsistence and their decade old sufferings get prolonged as the stalemate on the catastrophic agreement continues. IBA, Unions and Government should evince keen interest and initiate corrigendum steps to rectify all anomalies without further waste of time and bring solace to all.



Yours faithfully,



C N Venugopalan

C N Venugopalan

Ex-Manager, Union Bank of India

Camp: 101 Pinnacle Court,

Apt. # 82, Frankfort,

Kentucky 40601 USA

Cell:0013135491401
Nandanam,

Bank Management Hai Hai

How many Banks have obeyed the stay order of Madras High Court and not recovered 2.8 times of November 2007 salary from PF optees?

How many banks have not yet started paying arrears as per 9th BPS.?

How many banks have issued pension offer till date and if not why have they recovered from PF optees? Already three months are likely to complete after the date of settlement. Why bank is so slow on the issue of pension offer and so fast on the matter of recovery and similarly why union leaders are so anxious on recovery of levy of Rs.3000/ from their members and not worried for delay in offer of pension? Union leaders are getting farewell gift of five lacs or ten lacs on their retirement from Union Fund. Is this the way to use hard earned contribution made to Unions and Associations by poorly paid bank employees?

Days are not far when union leaders will distribute accumulated union levy amounting to hundreds of crores of rupees among themselves and ask for separate fee if they fight for any aggrieved employee. Are union leaders not more dangerous than our management bosses? I say this because union leaders have threatened to expel officer from their association if they do not pay union levy of Rs.3000/ on account of so called successful historic agreement. Management never dared to issue dismissal threatening to officer employee if they fail to obey any instruction of boss.

Why are employees keeping mum on illegitimate recovery and bent upon getting arrear at the earliest even if it is discriminatory? Why are they afraid of even lodging their protest before accepting arrear payment?

Bank management has signed a historic victory agreement when they have vertically divided the employees in two segments and created an unbridgeable split in banking unity and created dilution in their intensity to fight against the reign of injustice perpetuated by management.

And Bank union leaders on the contrary has committed a historic blunder by signing a discriminatory and divisive agreement on 27.04.2010 for some or the other vested interest and clearly betrayed the cause of unity for which they used to struggle under the banner of communist parties.

At least pension optees are now in support of the agreement. It hardly matters to most of them how loudly PF optees cries and weeps though in the past they all always used to be on the same platform and UFBU was also formed for the same purpose. Banking unity was an example in the community of labour class or working class.

Banks are not in the grip of flatterers. Those who are yes-men are getting timely promotion and getting best posting and in this way a team of flatterers are generated by bank management who blindly support of all action of the management right or wrong. Even union leaders do not fight against such lollipop like promotions and transfers because they say that ultimately their members are getting promotions and cream posting or choice posting though the same may be at the cost of others genuine right. At least veteran union leaders are enjoying posting in Metros and capital towns, they need not perform bank’s job, they may do their side business, they may take share from dirty dealings in credit decision or contract offers corruption and they may get sweet request from corrupt officers for reduction of punishment and so on. Lastly they may get huge gifts from top branch managers, big bribe earners, big customers and last but not the least huge money from union fund on their retirement and on attending an inquiry from Union Fund. Similarly union leaders now plead that the said agreement is good in the light of social security though they know and understand from the core of their heart that recovery from PF optees is not justified from any angle of consideration.

This is called divide and rule policy. Intelligent, talented, experienced, valued and visionary leaders of bank management who occupy the important seats of core committee of IBM as also that of United Forum of Bank Unions are very well aware and they all realize from the core of their heart that injustice has occurred with PF optees, retirees and those who have resigned. They all know very well that courts cannot deliver justice in decades and decades and this is why they are least bothered of courts also. They have gained sufficient experience by giving undue promotions to even charge sheeted officers and by rejecting even good officers. In every circular enlisting name of officers getting promotion they used to mention “subject to court decisions on various writs going on in various courts”

In the same way IBA is bent upon making recovery from PF optees subject to court decisions. But at the same time God knows whether they will issue pension offer or not. Reason for not issuing pension offer, bank will say they are waiting decision from courts. It is not surprising at least for me that even so called union leaders are also keeping mum on this matter for which they feel proud and say that the agreement is historic.

Bank Unity Zindabad?

Trade Unionism in Bank

IBA in its affidavit has stressed on the point that the trade union representing 95% of bank employees signed the agreement and hence Canara Bank petition filed by a union representing only 244 members should be ignored is not acceptable to any one who believes in justice.

Suppose if majority union decides that female employees will be given three increments less than male employees though they male and female perform same duty in the bank. , Can such unconstitutional agreement be treated as valid only because the same has been signed by a union representing majority of members?

Are we living in a jungle of sheep?

Another point is that the disputed agreement was signed by leaders of majority union. If leaders become victim of management, if leaders become hostile to members due to self interest, if leader’s intention become malicious there is all possibility of betrayal such as anti-member decision, divisive wage agreement, discriminatory treatment to divide them, sacrificing the interest of members to serve self interest etc. There is country wide protest and several writs have been filed in various courts of the country against the disputed clause which shows that the said agreement signed by leaders of majority union is not liked by majority of members. When leaders found that member can now resign or revolt against the union, they thought it better to release the arrear in hurry and recover the contribution from PF optees so that intensity of revolt is diluted. Further pension optees who are getting better treatment and who are getting full arrear will not support PF optees. This is called “Divide and Rule” policy. Leaders further took support of management in making recovery of Levy directly from arrear or pay slip to avoid the risk of member not paying levy in anger. All these fact reveal that union leaders realize from the core of their heart that they members are not happy with them.

When late Indira Gandhi, exPrime Minister of India lost her temper, she lost her conscience, she put all her opponents in jail, imposed emergency and without any fear of legal consequences or political reaction she misused the majority of her party in the Parliament to change the basic structure of the constitution. Similarly IBA has divided the bank employees in two segments, one pension optee and another PF optee and there is no doubt that bank management will use this division for imposing illegal recovery on PF optees. To add fuel to fire, IBA has created division even among various union leaders. This is why powerful protest against illegal recovery is not visible and management is taking advantage of this division and submitting illogical plea in the court to defend the discriminatory clause of the Bipartite Settlement. Those employees who are raising voices against misrule of IBA and union leaders are facing threatening of transfer or rejection in promotion process or posting at critical place or transfer from east to west or from north to south. Obviously reign on injustice will continue unabated until courts impose some punitive action against erring officials and leaders.

One more point raised by IBA in their affidavit filed in Madras High Court is that the second option of pension is not mandatory and employee at his will to opt or not to opt for pension. Days are not far when bank will curtail salary of all employees by 50% and give option to employee to continue in service or leave the job. In the initial offer for pension bank did not put any condition and hence there is no logic to put condition of recovery in the present offer of pension.

Union leaders have got no right to damage career of any individual or cause financial loss to any single person, not to speak of 3 lacs employees PF optees. When PF optees have also contributed in pension fund along with pension optees in the past during 7th and 8th Bipartite Settlement, there is no question of making recovery this time only from PF optees only to bridge the gap of 1800 crores. It is worthwhile to mention here that bank management has saved interest to the tune of 1800 crores by merely delaying the settlement for 30 months. Further bank will earn interest on money recovered from PF optees (total of 1800 crores from PF optees) till the court finally stops such illegitimate deduction.

Further when these union leaders called for strike or agitation programme, the same was put in action by all the employees including PF optees and not by PF or pension optees alone. Never in the past, had these union leaders ever told that second option for PF optees will be purchased by paying three months salary to pension fund. Had it been so there was no need to wait for 15 to 17 years, it could have been easily offered by PBA in 1995 itself.

When union leaders and IBA both had unanimous view of 1.6 times recovery and they have expressed the same in their separate affidavits, what happened during last two three days that both parties changed their view and agreed for recovery from only PF optees. Such discriminatory agreement pass the test of existing laws and the provision of constitutionally granted fundamental right called as Equality before law.

Already bank management has been violating spirit of transfer policy and promotion policy just to please union leaders and to conceal the misdeeds of corrupt executives. Management even does not hesitate to compromise lending policy or ethics behind waiver or comprise settlement with willful defaulters.

80% of officers belonging to the state of Jharkhand, Bihar, Orrisa and a few other states are posted outside their parent state and transferred whimsically frequently whereas those of the state of Maharashtra, Tamilnadu and West Bengal are seldom transferred outside their state for three decades and more. In the name of exigencies of work officers are transferred from one corner to other in clear cut violation of transfer policy. Similarly in the name of interview in promotion processes, higher management in nexus with union leaders promote or reject officers as per their sweet will and thus perpetuating arbitrary rule and reign of injustice.
Now they have jointly committed fraud with PF optees, they have cheated PF optees, they have extended biased benefits to scale four officers at the cost of junior level officers, they have caused loss to senior officers by stagnating them and depriving them of annual increments and what not.......

Reason behind continuance of such atrocities is that banks in general give choice posting to union leaders, militant officers, out of turn promotion to inefficient and corrupt employees, avoid punitive action against even fraudulent and charge sheeted employees to create a team of truely loyal and flatterers .This time IBA has created a team of pension optees who will blindly support misrule of Bank Management. If hundred or thousand employees are promoted even if they are not fit for the same, these promotees will become truely loyal to bank bosses. On the other hand if honest and performers are promoted, such promotees will never flatter their bosses or support blindly IBA.This is also a proof of “Divide and Rule” policy adopted by bank management. Similarly Union leaders are never transferred from their home town, they are given preferred treatment, hotel expenses and what not to make them blind supporter of what management do and like to do.

But how long such cruelty will be tolerated is a million dollar question?

How long top executives and CEOs forming IBA will kill their own conscience and commit unethical acts and work against all moral values.

I ask IBA team leaders and veteran trade union leaders to peep into their own mind and heart, try to affirm and reaffirm whether core of their heart permits such divisive and discriminatory agreement. If their heart and soul, their conscience do not allow discrimination, they should at least now rectify their error . It is never too late.

Sonia Gandhi

"Asli Chehra" - TRUE FACE OF BANK UNIONS
Immediately after the settlement, most of the unions patted their back for the so called "historic settlement". Slowly as they started facing volley of questions from the members, they came out with various theories to justify their action, which included the so called legal opinion and IBA's stiff attitude which forced them to agree to recovery from only PF optees to the tune of 2.8 times of the November 2007 pay. An impression was being created by them as if they were not in favour the same till 26th April, 2010, but somehow they were cornered so much that they had to agree to the terms set by IBA. If that would have been the case, then they would not now oppose the petition pending in Madras High Court. That shows the double standards.
But soon the bankers will be able to see the "Asli Chehra" (i.e. True Face) of these union leaders. These union leaders will now not be able to beat around the bush and befool the members by shedding crocodile tears. They have to take a stand in the Madras High Court, as to whether they are in favour of payment by all employees / officers @ 1.6 times or they favour 2.8 times only from PF optees. Some of these unions have already been exposed. Let us see what does the market reports say as at the end of June, 2010.
It is reported that during the course of hearing of the case at Madras High Court, while opposing the interim stay granted by Madras High Court, advocates of IBA, and AIBEA and NCBE, requested for vacation of the stay. AIBEA and NCBE were represented by one of the top most firm namely M/s Aiyar & Dolia and wanted vacation of the interim stay on recovery of 2.8 times only from PF optees to be vacated. So the stands of these two unions are very clear now. They will be using the members’ funds (including PF optees) for payment to the law firms and fighting case against them. However, the Hon’ble Judge advised them to file their counter affidavits and Ordered continuation of the Stay Order. Next hearing has been fixed for 6th July 2010.
Vide circular No. 98 dated 29th June, 2010. AIBOC has declared "We are in constant touch with the IBA and the Convenor of UFBU, to initiate appropriate steps to vacate the stay, at the earliest, to enable IBA to issue necessary instructions to member Banks on the Pension offer". Thus, AIBOC is also likely to oppose the move and appears to be in favour of payment by only PF optees".
(Remember, the stay is not against the Pension offer or issuing circular by IBA, it is only against immediate recovery of 2.8 times of pay of November, 2007 from PF optees. )
The stand of other unions will also be clear within a week, as court in its orders says ""Notice to respondents returnable by 06.07.2010. There shall be an interim order of stay". (all major unions are respondents in this case). The reports indicate that NOBW may support the petition filed by Canara Bank Workers Unions. Similarly, BEFI may not oppose the petition of Canara Bank Workers union. The protest by INBEF has already been incorporated in the affidavit filed in the Court.
If the above reports are true, then 29th June 2010 would be regarded as a sad day in the history of trade union movement of Banking Industry. Souls of great leaders like Parawana Ji would be feeling really sad and dejected.
Till now they have been propagating that they have been forced by the circumstances and situation to accept contributory pension scheme in banking industry. They are giving so many logics and have been pleading as to why they could not make IBA agree to the Pension Scheme in its original form of 1993. We are unable to find any logical reason from Unions wherein it joined hands with the union of the Management i.e. IBA to defeat the efforts of bank employees.
Duniya ke Mazdooron ek ho - Duniya ke mehanatkashon ek ho ka naara laagene waale aaj majdooron ke khilaf hi Court main jaa pahunche.
TESTING TIME IS NOT FAR WAY NOW. NOW THESE UNION LEADERS WILL NOT BE ABLE TO SAY THAT IBA DID NOT LET THEM SUFFICIENT TIME AND CORNERED THEM SO SUCH THAT THEY SIGNED THE SETTLEMENT ON 27TH APRIL, 2010. THEY HAVE SUFFICIENT TIME OF OVER A WEEK TO DECIDE WHETHER THEY WANT TO PROTECT THE INTERESTS OF PF OPTEES OR WANT TO DO WHAT IBA IS SAYING.
It has also been reported that some Banks have issued strict instructions for payment of arrears to all the employees / officers by 30th June, 2010 or so, after keeping 2.8 times of the pay of November, 2007 in suspense account. This clearly gives an indication that banks are in a hurry to pay arrears so that they can deduct 2.8 times from the arrears of PF optees before orders of Madras High Court are delivered to them through IBA. In court they will take the plea that notice of stay was not received by them and arrears have already been paid. As Canara Bank has also rushed to pay the arrears today after keeping the 2.8 recovery in suspense, Canara Bank Workers Union is likely to give a strong protest letter on 1st July, 2010 at their Head Office. Canara Bank Workers Union has informed that they are proceeding to Bangalore to personally handover the letter along with a copy of the court order and get the acknowledgement.
Now all the bankers have to take a final call as to whether these union leaders are with the workers or are working against them. We know it is a difficult task as they have to eat their own words. They have issued number of circulars justifying as to why and how they were cornered to agree this changed stand on the night of 26th and 27th April, 2010. However, this is the time when they can correct the mistakes as PF optees have shared the burden of pension even in the last two Bipartite settlements (7th and 8th). This information is now shared by almost everybody (which was not known earlier to 99% of the PF optees).
The unions opposing the petition will be spending lacs of rupees in the legal battle. All this money can be saved if they simple say that we do not oppose the petition and are in favour of the same.
LET PF OPTEES DECLARE THAT THEY WILL QUITE THEIR UNION (WHICHEVER IT MAY BE) IF THEIR UNION OPPOSES THE PETITION FILED BY CANARA BANK WORKERS UNION AT MADRAS HIGH COURT. LET COURT DECIDE THE CASE ON MERITS.
(Inputs also by kamlesh.chaturvedi@yahoo.com; canara bank workers unions etc )







UPDATE ON THE ORDERS ISSUED BY VARIOUS HIGH COURTS AGAINST RECOVERY OF 2.8 TIMES OF NOVEMBER 2007 PAY
In order to ventilate the grievances of the employees, Writ Petitions have been filed in various Hon’ble High Courts.
(A)The First Writ Petition was filed before the Hon’ble Andhra High Court bearing number Writ Petition No. 8237 of 2010 where in Hon’ble Court has passed following orders:
“ORDER: Interim order dated 13-04-2010, to continue, subject to final orders to be passed in this WPMP. Any settlement also, shall be subject to final orders in this WPMP.
Post after Summer Vacation, 2010.”
(B) Writ Petition No. (C) No.3729/2010 has been filed before Hon’ble Delhi High Court, where Hon’ble Court has passed following Orders on 28.05.2010:
“Issue notice to the respondents to show cause as to why rule nisi
be not issued, returnable on 30.07.2010. Necessary steps be taken within seven
days.”
(C) Subsequently, Division Bench of Hon’ble Allahabad High Court while disposing Special Appeal No. 947 of 2010 passed following orders Orders:
“Issue notice.
Respondents are allowed three weeks time to file counter
Affidavit.
List thereafter”

(D) And now recently a Writ Petition bearing no. WP 12269/2010 has been filed before Hon’ble High Court of Judicature at Madras, in the matter of Clause No. 32 of the industry level Wage Revision Settlement dated 27.04.2010 and also clause (1) of the Pension Settlement of even date, seeking a direction from the Hon’ble Court to quash the above clauses only in so far as the said clauses require the provident fund optees now in service to contribute 2.8 times of the Nov 2007 revised pay, if they want to opt for the pension scheme.
Hon’ble Justice K Venkataraman, who heard the matter has ordered an interim stay and the next date of hearing, has been fixed on 06 July 2010. A copy of this order is enclosed.
From what is stated here in above, it is evidently clear that Clause 32 of Settlement dated 27.04.2010 and Clause (1) of Pension Settlement dated 27.04.2010 has become subject matter of judicial scrutiny by the Hon’ble Courts and Hon’ble Madras High Court has passed orders to stay the operation of these clauses.

Bank employees get relief by court

It is a matter of great pleasure that Madras High court has granted interim stay on the clause authorizing banks to deduct 2.8 times of November revised salary from the arrear of PF optees who are likely to opt for second option of Pension, an opportunity granted under 9th Bipartite Settlement signed between IBA and leaders of unions of various banks. I congratulate officers of Canara Bank unit who initiated the legal battle against discriminatory settlement signed by union leaders in banks and I take this opportunity to condemn IBA team under the leadership of Mr. M V Nair who left no stone unturned to divide the officer’s fraternity by introducing various discriminatory and unconstitutional clauses in the said settlement.

It is open secret that bank management is made of flatterers and yes-men who are least bothered of ethics or constitutional values or even the quality of assets of banks. They are least bothered of genuine grievance of loyal and devoted workers who think, act and even dream for the benefit of banks they are associated with. It is banks where even posting and promotions are effected not based on merit but on the strength of an officer in yesmanism and his ability to flatter his bosses and capability in earning illegal money and sharing with the same with the bosses.

In such position officers annoyed with discriminatory elements of the said settlement have got a great relief after the stay granted by Madras High Court .I hope even now our Finance Minister and Prime Minister will understand the facts related to agreement mentioned above and perpetual reign of injustice prevailing in banking industry particularly PSU banks. I hope Government of India will act against dirty elements in Banking industry and especially in IBA and get rid of them before it is too late.

I would like to add here that if justice is not delayed in courts and good advocates become available at reasonable cost in all towns and cities I think thousands of cases will be filed against reign of injustice perpetuated by bank management.

I am ready to extend my whole hearted support to all those who have initiated legal battle against the bank and who have contributed directly or indirectly in the fight to get justice. I pray judges to quicken the process at their best so that bank management may not take advantage of judicial delay in carrying out their whimsical decisions based on vested self interest.

If finally high court scraps the clause of discriminatory recovery from PF optees the signatories of the said settlement should own responsibility and resign on moral ground. When a mistake is committed by a staff in a branch of a bank, the branch head of that branch is held responsible and punished suitably by higher management of the bank. Then why not top officials who signed the said 9th Bipartite Settlement which is found to be illegal, unconstitutional (violation of fundamental right of equality before law enshrined in the Constitution) should be punished suitably by Ministry and Government of India. The higher officials must have vision and future repercussion of illegal and discriminatory clause of the agreement they sign.

I congratulate organizers of website Allbankingsolution.com who have been extending their best cooperation in serving the cause of bank employees in general and PF optees in particular who have been given discriminatory treatment by signatories of the said 9th Bipartite settlement for bank employees in April 2010.

Capital Adequacy Ratio

Government is constrained to infuse capital in PSU banks year after year to salvage sinking banks or to boost up their capital adequacy ratio. Even World Bank is contemplating to infuse capital in selected banks in India to strengthen these banks. This reveals that PSU banks are actually growing weakness year after year and their balance sheets are nothing but result of window dressing in the style similar to which Satyam Computers applied to boost up image of the company.

PSU Banks are facing continuous erosion in their capital due to dirty policies of the government, politically motivated steps taken by the government and constraint in implementation of good policies. Inter bank interest rate competition, waiver of loan culture, financing based on political compulsions, constraints in recovery of loan from willful defaulters, undue delay in legal proceedings in want of proper judicial reforms, unhealthy HRD policies resulting in promotion of corrupt officers and demotivation of good officers etc are a few reasons which are causing great loss to banks and which has made the bank’s health poor and ultimately which forces government to infuse capital in banks.

It is to be noted here that when politicians take advantage of public money held in banks by resorting to loan melas or waiver of loan culture, bankers take it easy while lending to public. Bankers too do not hesitate in lending to improper companies and individuals with doubtful integrity just for their personal gain. There is no doubt bankers have inculcated wrong practices of flattery in banks. Executives, Branch heads, Regional Heads, Zonal Heads, EDs, CMDs focus on their personal status , personal earning by way of underhand dealings and indulge in flattery to their bosses, ministers, officers in banking divisions. They do not hesitate in taking malafide decisions just to please their bosses. Financing to wrong persons and taking gifts or money in return has become a common feature in banks at all levels.

If bankers do not earn illegal money they cannot please their bosses, government offices and even their juniors. Such honest officers cannot dream of promotion and good posting. As such earning money in credit delivery and sharing the same with bosses has become inevitable for survival in banks with dignity. Those officers who are not versed in this tact or modern art of survival or those who protest wrong financing are either posted at remote places or punished. Such genuinely loyal officers can never imagine of promotion or good posting. This is the main reason that bank officers holding key posts indulge in corrupt practice without caring for health of bank’s assets and this is the reason that intrinsic health of banks in general is not sound and banks always need financial support from government to survive.

But the million dollar question is who will bell the cat when Charter Accountant, officers working in rating agencies, officers in vigilance departments, officers working in bank’s own audit offices, advocates, key regulators all are birds of same feather.
23rd June 2010

banking Division

Bank officers Association are getting monthly subscription of Rs.100 to Rs.200 from each member every month. In addition they will get levy of Rs.3000/ from each member in lieu of bipartite settlement signed on 27th April 2010. Members are happy or not, that is immaterial.

I think total accumulated fund of Officers Association in various banks will grow to hundreds of crores of rupees. This fund is not only enough to meet the usual traveling and staying expenses incurred by union leaders for various issues but also more than enough to meet even entire salaries of all union leaders.

As a matter of fact union leaders are more often than not, busy in union matters and hence they hardly do any work for the branch or office they are posted. It is pity that even officer community in general is not happy with their performance as union leaders. On the contrary their actual energy is lost in saving bad officers and seldom used for any gain for honest workers or for any relief to those honest officers who have been arbitrarily posted in critical areas or rejected in promotion processes due to ill motive of executives. They have failed in giving relief to officers who have been made scapegoat for fraud and irregular credit committed by corrupt officers.

In such position I am of the opinion that these union leaders should be removed from muster roll of the bank and bank should stop paying salary to these leaders. Instead such leaders should be professionally trained to serve the interest of officers who are associated with the union and they should be paid by their parent Union itself. In this way bank will save crores of rupees which are paid as salaries and perquisites to these non performing officers. Bank can use this saved money in creation of new jobs for hundreds and thousands of young unemployed persons. Besides, removing from bank’s duty, union leaders will have full time to think about their members. Since these leaders do only union activities, it will be right from all angle of consideration that their salary should be paid by union fund only.

In case officers do not agree to this proposal or they apprehend that their interest by outsiders will be jeopardized ,they should solemnly declare and take oath that they would not nominate any retired officer as their union leader in future and make best efforts to replace retired officers serving as union leaders with officers who are in service. Because leaders who are no more in service cannot fight seriously and devotedly for better interest of serving employees, rather they look into avenues to cheat serving employees and give maximum benefit to those who have either retired or resigned or removed from the bank. Latest settlement is the ideal example for such sorry state of affairs prevailing in Bank and pitiable position of officers compared to other employees working in Central Government offices or PSUs.

In addition to this they should be made accountable and punishable for any lapse on union activities and their performance should be judged by a group of hundred officers who are actively working in the bank. Expenses incurred by union leaders should be fully scrutinized by a team of at least ten Chartered Accountants and the certified balance sheet of union fund should be circulated among all members. Officer should also appoint some legal experts in each district or at least in state capitals to stop injustice perpetuated by bank management only because they know judicial proceedings in India is too costly and too much cumbersome and time consuming that one is constrained to bear with injustice.

Leaders will then learn a lesson, understand the importance of their role and at least not repeat the history of committing blunder of signing a agreement of wage revision which has instead of solving problems of their poorly paid members has created so many anomalies and tried its best to divide officers community by accepting various discriminatory rules like recovery from PF optees (leaving pension optees), causing loss to VRS optees, resignees, family pension takers, fitment of officers at the state of Rs23520 in scale III and that in scale IV at the same stage and so on. Not only this, many clerks will get better arrear due to this latest settlement compared to officers in junior or middle management. There is no Stagnation in any increment of Central Government employees in ay cadre as per latest Pay Commission Report, but it continues to deprive senior office of annual increment for none of their fault.

If we talk of other issues, it is worthwhile to mention here that management in collusion with violating even their transfer policies, misusing policy meant for rural posting framed by Government of India, misusing policy for posting in North East region, giving promotion to corrupt and flatter officers taking advantage of Interview marks (which an interviewer can give whimsically to make or mar the career of an officer of his choice) Union leaders is silent spectator of torturous treatment given to good officers who are real performers but who do not have time to flatter executives and provide costly gifts to their bosses.

There are thousands of officers who have been continuously working in villages, officers in Non Metros are transferred frequently form one region to other, one state to other and even one zone to other whereas officers posted in Metros are seldom transferred out of their parent state. There is a policy that upto scale III officers will not be transferred out of region but this policy is violated frequently and union leaders remain silent spectators.

There is a policy that an officer cannot work in a region for ten years continuously, management allows many to continue or adjust them back in the same place after giving a formal break of one month outside the state. Is this not enough to prove that there is reign of injustice under the umbrella of union leaders?

Banks are performing better and better despite man power constraints but the real fruits of this growth are hardly shared with junior officers who work hard day and night for the growth.

Danendra Jain
Agartala
05.06.2010

Bank Officers Association

Government framed policy for posting of bank employees in Villages as also for posting in North Eastern States to promote rural banking and to help development work in rural areas and North Eastern states. But management of banks have always misused this excellent policy to discard non-flatterers and to torture those employees who do not indulge in corrupt practices and who do not implements bad orders of the executives.
RBI or any investigating agency on honest inquiry will find that some officers have been working in villages for two or three decades whereas flatterers of the top officials of the management have been allowed to work in Metros for decades together. When an officer do not provide gifts to General Manager, he is posted in North Eastern States on the plea of Non Performance whereas those who commit fraud or indulge in irregular credits but always provide golden gifts to GMs, DGMs, AGMs in the name of some function either of inauguration or customer’s meeting are allowed to remain in big towns.
Some officers are simply creating bad advances and some others are constrained to recover the bad advances merely to save the corrupt officers from punishment. This is why loans or advances become Sub Standard in one or two years of its disbursement. It is also a bitter fact that such bad advances are concealed by gifting Auditors and inspectors and treated as good advances till the sanctioning officer wither is promoted or get safe exit from the bank. Honest workers are made scapegoat for the misdeeds of big executives.. It is undeniably truth that excellent results exhibited through annual balance sheets are due to devoted work of good performers and it is they who are salvaging banks from the misdeeds of bad officers. As such shining balance sheet of a bank should not give conclusion that the results shown are hard work of top officials sitting in AC rooms but that of field workers who are head of a branch and who is doing hard worker even under acute manpower shortage. In banks manpower is adequately provided only to flatterers even if he has caused banks crores of rupees. Until RBI or CBI catch hold of corrupt executives and punish the evil performers and at the same time award those officers who have been whimsically kept away from promotions and unless good officers are given respectable posting and promotions one cannot imagine of any rise in intrinsic value of any bank
On the contrary PSU banks are facing erosion in intrinsic value due to dirty implementation of apparently good HRD policies. In the name of Interview any employee can be deprived of and denied of promotion. Power makes executive corrupt if the decisions made by them are not transparent and subject to review. Root cause of persistence and promotion of such corrupt officers is due to the bitter fact that even courts fail to provide justice in decades together and this is why management bosses indulge in whimsical promotions, arbitrary transfers and postings.
I request bank officers to send their personal experience and story of corrupt officers to me at dkjain49709@rediffmail.com so that such illustration may be incorporated in PIL to be filed in the court. These information will be helpful in seeking information from bank under Right to Information Act to expose the true colour of officers who have been holding top posts in the bank and who have been getting continuous shelter from Banking division, RBI and Ministry of Finance. The aggrieved officer may also send the real story about them, how they have been cheated by their bosses, how they have been denied promotion and how they have been given always critical posting. After all how long you will bear with injustice in fear of repercussion from higher authorities. One has to come out of imaginary fear and expose the true picture of bad officers. How long meritorious and talented officer will face humiliation and posting against their dignity.
I will come with name of AGM,DGM ,GM,CM and BM and tell the officer community and Government of India how reign of injustice prevails in the banking industry. I need your cooperation in making a strong case against some of CMDs who are recognized as star performers but under the shelter of such CMDs ,their left and right hand officers who themselves are facing CBI charge sheets are exploiting power for self interest.

Non Performing Officer in Banks

Now I would like to ask top management as also CBI to look into each actions of executives (scale IV to scale VII) who have been elevated to scale IV and above during last three years during the tenure of present CMD Mr. M V Nair. I hope management will be honest enough to come forward with white paper on these executives depicting their good or bad works of last ten years and prove that the action of Interview panel in giving him or her promotion was justified. Otherwise normal perception of junior officers that promotions are bought by gifting top officers will be substantiated and exposure of top management will take place. At least top 20 branches of Jharkhand or Bihar or UP or Orrisa or West Bengal will be enough to expose the unhealthy culture perpetuated by top officers in promotions, postings and transfers. Bank must ascertain profit earned or loss incurred by the actions of officers promoted to scale IV and above during last three years.

1.credit decision taken by promoted executives and the present status of these advance accounts .If the credit sanctioned or disbursed by them directly or indirectly (building pressure from administrative office on BM) above Rs 10.00 lacs has become bad ( though bad , concealed and categorized as standard in collusion with top management), reason behind it should be looked into.
2. Number of accounts and amount involved in those NPA accounts where sanction or disbursement made by such executives during last ten years.
3. Waiver of loan or sacrifice of bank's dues under compromise settlement sanctioned by them directly or through the Branch.
4. How many good accounts they have added during their posting at any branch. Good account means average balance more than one lacs. How many such good customer left the bank due to the misbehavior of BM. Overall analysis will tell about level of customer service extended by them. This will also tell the management whether they are really good officers or they were promoted after taking some gifts in cash or in kind by Interview panel officers.
5. How many bad accounts have been shown as standard in the branch but they are actually substandard.
6. It should be looked into whether there was any abrupt rise in deposits due to buying of government fund. If yes wherefrom the illegal money was managed.
7. Real cash recovery in bad accounts due to the efforts of promoted officers
8. Whether there is real positive change in the image of the bank in the area where they worked.
9. Whether the so called performance said to have been of the promoted officers was actually the performance of other honest and devoted workers
10 Whether malady created by / fraud committed by / bad advance generated by flatter officers war getting support from higher bosses due to some other hidden reason which cannot be revealed.

Reality of bad loans

It has been the demand of many bankers before RBI to relax norms for classification of assets as Non performing Assets. It is because most of banks are showing profits by hiding bad assets and cutting down the amount of provision and booking inflated profit on unearned income. Banks know very well that concealed NPA are likelty to explode if norms are norms are relaxed by RBI.

RBI has infused capital in so many banks so many times in the past because they also know very well how bankers are cooking their balance sheets by concealing bad assets and window dressing in credit delivery and deposit mobilization. Government of India waived loans of 70000 crores last year before the evil activities of banks are revealed by Auditors. Waiver of loan and compromise settlement is an on going process where banks are constrained to sacrifice good money in bad hands.

CMD who flatter Ministry and key figure in the government is believed blindly as long as big exposure takes place as happened with Satyam Computers. Once upon a time Chairman of Indian bank was most beloved figure in banking circle, but when reality came on the floor, he was thrown out of system. I have been regularly writing on various forums on this subject in my language and as peer my competence to open the eyes of person sitting at the top of affairs. In banks , an officer who try to say the truth is thrown ina remotest place to shut his mouth.

As a matter of fact none wants to say and accept the truth and think it wise to remain in fool’s paradise.

There are several Harshad Mehtas, several Raju, many Ketan Parikh, many Natwarlals ,Many Kodas,many fake Sai Babas, Many Icchadharis, a lot of Mayawatis,several Lalus , hundreds of Mulayams, plenty of Rabri Devi in our country who earn unparallel popularity and after a few years face severest erosion in it and have to bear with just reversal in popularity with greater momentum. When they go up in their ladder even if by fake means, media and so called great leaders start worshiping them, following them blindly.

In share market when share prices of a script goes up, all experts on TV and all investors start recommending and buying it. Suddenly real value of that script comes on the floor and all experts starting giving negative news for the same script. Similarly some people are worshipped and condemned without knowing the facts.
Is there anyone who will investigate and discover the real and intrinsic value of PSU BANKS?

Danendra Jain
Ganaraj Chumuhani
Agartala
03.04.2010

CMD should Introspect

It is the time that our honourable CMD MVNair conducts introspection and justifies the actions of various DGMs and GMs who transferred whimsically a lot of officers to other states on the excuse of non-performance. I especially mention the case of DGM Jharkhand and the then GM of Kolkata who practically transferred all Non Orriyas to other states, some officers to Bangladesh Border i.e. to Tripura state, some to Gangtok, some others to West Bengal or UP or MP or Maharashtra. The DGM and the then GM satisfied their ego by disturbing the family life of officers who did not flatter him and who did not belong to a particular caste lobby. It is worthwhile to mention here that officers of West Bengal, Tripura, Tamilnadu ,Maharashtra are seldom transferred to remote states as those of states like Jharkhand, Bihar, Orissa and UP

Our beloved and renowned CMD should now see whether there is any improvement or further deterioration in the value of assets during last three years in those branches wherefrom some special type of officers were transferred by biased DGM (surrounded by some different type officer’s lobby) two years ago?

I do not want to enlighten the complicated matters, which may violate bank’s secrecy policy. Management has every tools in its almirah to look into each account of big and old branches and ascertain whether so called non performers had improved the health of Bank’s asset or their successor or their predecessor had/have done better for the bank which resulted in their promotion and rejection of so called non performers in the same promotion process and their posting at the most remotest and the most critical branch.

If CMD hesitates to touch his corruption ridden General Managers AGM, DGM till their retirement, other competent authorities may be ordered to peep into the matter and try to precipitate the reality and truth of banking administration.

CMD should justify his action of picking management executives from MBA college campuses at packages higher than those of employees of the same bank who have served for more than two or three decades.

I hope bank will justify the action of promoting young officers at the cost of senior, experienced and devoted officers.

CMD should tell the people of India whether there was actual cash recovery in bad accounts or manipulation in the system to hide bad accounts which portrayed better picture of some officers who got preferred promotion and posting.

Whether government deposit mobilized by an executive may turn bad assets into good asset and thus help bank in enhancing the intrinsic value of the bank?

It has to be ascertained whether so called good officers have added bad assets in the name of achievement of credit delivery target

And so on…………………..

Lastly I agree with the idea of CMD of punishing non-performers. But it has to be ascertained by the system whether the non- performance is due to lack of motivation by his boss or by virtue of his posting at a critical branch or it is lack of will of the officer to perform or lack of knowledge.

In case of lack of knowledge management impart the best training to him to convert him performer.

In case the boss is lacking motivating skill the boss may be given a lesson to improve.

In case the non-performance is due to adversities attached with the branch or due to environmental impediments in the path of performance, the officer shouldering the load of such branch should rather be awarded.

In case of non willed officer, transfer to some other place may appear justified, but not without giving him an opportunity to improve.

It is always to be kept in mind that a person is not always bad. It rather depends on the perception of his assessor who may be caste biased, region biased or there may be some hidden greed of money or gift or flattery in the mind of assessor which forces him to be biased against any officer even if he is devoted performer.

Best tool available in the almirah of Human Resource Development Department should be applied on case-to-case basis. Otherwise there is every possibility that an executive sitting at the top of affairs uses his whims even at the cost of intrinsic value of the bank.

Real success of the management lies in not only transferring an officer to remote place but in making efforts for value addition in an officer and thus in bank. It is always told for branch head to be tactful in handling junior staff in the branch. Similarly it is expected from Regional head to apply prudence and wisdom in dealing with Branch head shedding personal ego. Everyone in the bank knows how officers under work pressure and in want of enough manpower are constrained to bypass rule to achieve the target under various parameter, it may be credit delivery, opening of accounts, deposit mobilization, monitoring of advances or recovery under NPA accounts.

Despite all if management is really interested to give value to merit and merit only, same team of officers sitting at head office should judge the performance of all officers and there should be no room left for regional heads to apply their mind in whimsical manner and there should be no room for Interview in promotion processes. It is bitter truth that delegated power vested in different persons cannot be utilized by different person in similar manner ant in desired and expected manner. Under CBS system management can assess the performance of all officers sitting in office at Mumbai and in this path there will be minimum use of whims. Management can save lot of expenses incurred in conducting promotion processes and ensure better reign of justice.

Better to give donation than to lend and then waive

Government has been using banks as convenient method for mobilization of rural votes since long. They are for this purpose announcing waiver of loan frequently. This time they have extended repayment period further for six months because they know very well that farmers have developed a habit not to repay the dues of the bank till government comes forward with new scheme of either waiver of loan or compromise scheme for delayed repayment. Gradually small traders have also developed this tendency not to repay the loan availed by them from banks.

As a result banks have either to waive the loan given to farmers and small traders or treat the bad account as standard account till government announces new relief scheme. There is no repayment culture and I am unable to understand how long this vicious circle of reckless and blind lending and then waiver of credit may help banks survive. How long concocted and window dressed balance sheet may help banks in portraying attractive picture in balance sheet.

To add fuel to fire government has allowed private banks to be established in all districts to act as local banks. Already numerous Regional Rural Banks and Cooperative banks are actively participating in rural credit and suffering from huge loss due to non-repayment culture created by vote bank politics of ruling party. Health of these cooperative banks is so bad that government has to keep interest free fund in these banks in many states and also prove capital to them to ensure survival of these banks on ventilator. Many cooperative banks have declared bankruptcy during last two three decades. Now addition of rural banks will add fuel to fire. Either these local banks will exploit the rural people by charging high interest rate or by keeping their properties or gold in mortgage as they used to do before nationalization of banks. Both ways it is farmers who will suffer and ultimately they will either leave farming or migrate to towns in search of labour oriented unskilled job or commit suicide or make the banks sick by not repaying the bank's loan.

I fail to understand why politicians of this country do not understand the ground reality and try to please farmers and banks by jeopardizing their health and killing them through slow poison. At present they talk of Indian growth story and speak with pride that Indian government is decoupled with sub prime crisis of America. They should know that due to high standard of living and low earning capacity most of the American used to take loans from banks for consumption and there were many bankers (Indian government is also increasing number of banks in rural areas through addition of newly conceptualized private local banks) who were ready to lend them though at higher rate of interest. But consequence of this unhealthy practice ultimately precipitated Sub prime crisis when banks started falling like playing cards and poor American started committing suicide or selling their blood for survival

Danendra Jain
Ganaraj Choumuhani Agartala 799001
1st march 2010

Manmohan Singh

Arbitrary promotion and whimsical transfer is the root cause of rampant corruption and culture of flattery to superiors. Culture of flattery to bosses and tendency to become Yesman of Ministers, MPs and MLAs is the root cause of all maladies prevailing in the society. Every employee in our country knows the bitter truth that only those who are yesmen of bosses can get elevation in their career or get cream and comfortable posting.

Most of MLS, MP and Ministers have accumulated properties worth many crores of rupees. Department of vigilance or CBI or Anti corruption cell or Economic offenders cell are silent spectators.

So many IAS and IPS officers have been found indulged in corrupt practices only because they have got the blessings of their mentor Ministers.

So many bank officers and executives have properties worth crores of rupees, which is far more than their total earning in their entire tenure. It is possible only because there is practically none to look into corrupt practices prevailing in the bank at higher level.

When Head of any department or office is corrupt, or when any minister in the government is corrupt it will be foolish to imagine of healthy culture down the line.
It is very difficult to survive with dignity when the boss is corrupt and when boss likes flattery.
Only when boss loves real performance, employees feel delighted in working sincerely.

When real performers are awarded, there will be positive motivation. On the contrary if corrupt is promoted and given good posting, it is but natural that people will be tempted to toe the line of boss even if it is wrong and unethical and against the interest of the organization

As long as we are unable to provide a reasoning based transfer and merit based promotion and as long as the wrong doers are not punished by either head of the department or by the courts we cannot imagine of stopping corrupt practices prevailing in the system and spreading like cancer in the society.

Old proverb survival for the fittest no more holds good. Now a days survival is possible only for the person who is well versed in flattery to bosses, who can earn money through ill methods and share the same with his bosses.

The bitter truth is that there is no foolproof method of providing perfectly merit-based promotion or seniority based promotion in any office. None of the promotion processes can ensure justice to all, justice to the organization and discomfort to none as long as the person responsible for carrying out the promotion process is dishonest and corrupt. When protectors become destructors, damage to society cannot be stopped,

One easy way to stop whimsical transfer and arbitrary promotion is to maintain transparency and abolish the requirement of passing through Interview for existing employees for getting promotion. Interview is such a test where Interviewers can easily spoil the candidates career.

During interview, key role is played by elements like bribe, gift, sources, godfathers, and flattery possessed by employee whose performance is assessed during interview. When Interviewer desires to promote an employee he raises easy questions or do not raise any question and give higher marks and on the contrary he may raises toughest and irrelevant questions before the candidate to reject him in the promotion process.

The interviewer as per his whims and fancies gives marks for interview and unfortunately there is no method to penalize such malicious interviewers or the interview team made of birds of the same feather. There is hardly any place for merit in the mind of Interview panel and this why whimsical promotions take place and a reign of injustice and that of corruption spreads like epidemic and is followed by inefficiency, frustration, depression and what not.

Last but not the least; our courts cannot deliver justice in decades. This eliminates the fear from the minds of interviewer and the aggrieved employee is constrained to bear with the rejection in promotion process. Justice delayed is justice denied. And when there is no hope of justice even from court, aggrieved person in promotion process is left with no alternative other than digesting the poison of injustice.

It is an open secret in our society that victim is afraid of lodging complain in police department against any type of criminal. Not to speak of promotions, management can torture an employee by using his power of transfer and posting an employee in the name of exigencies as per his sweet will.

I therefore request you to take immediate steps to ensure merit based transparent promotion and reasoning based transfers and posting in all offices. Only one remedy to cure disease of corruption is to award honest performers and sideline corrupt performers. Only the bearer knows where the shoe pinches is a right proverb in this regard.

IN BANKING INDUSTRY THERE ARE HUNDREDS OF OFFICERS WHO ARE FACING TRANSFER EVEN TWICE OR THRICE A YEAR WHEREAS OFFICERS SITTING IN METROS ARE SITTING IN ONE TOWN SINCE JOINING SAY FOR TWO OR THREE DECADES.
EVEN POLICY OF RURAL POSTING IS MISUSED BY THE MANAGEMENT TO ISOLATE NON FLATTERERS .
EVEN POLICY OF POSTING OUTSIDE STATE AFTER PROMOTION IS MISUSED TO FAVOUR THE PEOPLE OF WEST BENGAL OR THAT OF MAHARASHTRA.
POLICY OF NORTH EAST POSTING IS USED TO ISOLATE NON FLATTERERS. POLICY OF TRANSFER FOR NON PERFORMERS IS ALSO USED BY THE EXECUTIVE TO KEEP NON FLATTERES AWAY.
NOWHERE AND NONE OF POLICIES ARE USED TO PROMOTE THE CULTURE OF PERFORMANCE.
AS SUCH IT IS COMPARATIVELY BENEFICIAL TO ELIMINATE THE ELEMENTS OF DISCRETION OR DISCRIMINATION IN THE INTERNAL PROMOTION PROCESS AND TRANSFER POLICY.THE MORE TRANSPARENT WILL BE THE POLICIES , THE LESS WILL BE QUANTUM OF FLATTERY IN THE MIND OF WORKING OFFICERS.
EXECUTIVES WHO ARE INDULGED IN CORRUPT PRACTICES WHILE RELEASING ORDER OF TRANSFER OF PUTTING THEIR SIGNATURE ON PROMOTION ORDERS MUST BE SUITABLY PUNISHED SO THAT RECURRENCE OF SUCH MALPRACTICE DO NOT TAKE PLACE.
JUSTICE DELAYED IS JUSTICE DENIED. YOU CANNOT IGNORE THE RESENTMENT, FRUSTRATION AND DEPRESSION PREVAILING IN THE FIELD LEVEL FOR LONG WITHOUT INVITING STRIKE AND LARGE SCALE REVOLT AND RAMPAGE

Danendra Jain
Agartala

Restructure of loan is not permanent cure for ill banks

Since long I have been pointing out that banks cannot remain in good health by concealing its bad assets. Restructuring of bad loans was allowed by RBI in the year 2008 to give so called relief to developers of real estate after collapse of Lehman Brothers in USA. In fact at that time also there was no any linkage of weakness of Indian developers with that of crisis erupted by dint of Lehman Brother. Rather Real estate developers were in the best health they could ever imagine, earning highest profit by selling their flats and commercial places at exorbitant high prices and by starting new projects beyond their financial capacity.

In fact real estate developer had enlarged their area of work beyond their financial capacity by availing disproportionate huge loans from banks. As soon as crisis of liquidity in USA erupted, Indians government and Indian banks apprehended delay in receipt of export proceeds and consequently fear of liquidity crisis started haunting their mind. When banks were tightened by RBI, the developers started feeling pain in their abdomen and it is they who could not pay their dues to banks as per scheduled time, rather expressed more hunger for more loans to complete their incomplete projects .Such demand triggered so called liquidity crisis.

It was consumers who had to pay the price. Prices of all landed properties went on increasing and government of Manmohan Singh remained silent spectator because there was a clear nexus between profit-maker developers and the government. It is not astonishing that prices of all essential commodities have been going up and up despite all hue and cries by consumers and opposition parties.

So far as banks are concerned RBI knows very well that banks are falsely being portrayed as healthy by management of PSU banks in collusion with RBI and Finance Minister. In fact each PSU banks have thousands of accounts as bad but shown as standard. Real Non Performing Assets (NPA) in each PSU banks is in alarming position and it existed in the month of September 2008 also.

Collapse of Lehman Brother or Sub Prime Crisis in USA gave an excuse to RBI and Government of India to hide bad assets in the name of restructuring of loan .Government of India got an opportunity to hide adverse affects of its bad policies formulated at the instance of dirty politicians of the country. Waiver of agricultural or small loans to the tune of Rs.75000/ crores had already damaged the health of the banks.

But hiding of cancerous disease cannot keep the body healthy for long and eventual death of the system in unavoidable and again the looser will be retail customer for none of their fault. Banks have been demanding therefore one more occasion to conceal bad loans in the name of restructuring. A few months ago banks had raised demand of relaxing in prudential norms which RBI accepted to some extent by allowing lesser provision for housing loan and lesser capital requirements.

Bankers know the bitter truth of the system and each CMD somehow or the other aspires to pass his tenure by hiding the malady .None of CMDs and hence none of his subordinate in the banks have the courage to accept the reality and declare all bad assets as bad assets. But how long this vicious circle of concealment will continue and how long banks will be able to cook balance sheets, only God knows. Banks are however clever enough to show bad loans as lesser or negligible percentage of bad loans compared to overall loans of the banks. This is made possible by extending bulk loans to corporate or selling bad loans to AMC. In this way they are simply trying to pass on time and trying their best to appear as if they are genuinely growing, as if there is no inherent weakness.

I therefore praise RBI that they have taken a bold step to deny the demand of banks to allow them one more occasion to restructure the loan. If RBI does not bow down under pressure built by CMDs of banks or under pressure of government of India to maintain concocted but positive image, I hope reality of some CMD will precipitate on the floor and government will be able to distinguish flatterers from performers. People of India will be able to distinguish between really strong banks and factual weak bank.

Not only this, prices of all landed properties will start coming down and ultimately become affordable for common men. Prices of flats will also come down and come within the rich of common men again. There will be not fall in demand but abnormal rise in demand for landed property and constructed flats. As such the current step of RBI may appear to be curse for developers and bankers but ultimately it will prove to be boon for consumers, bankers and developers also.
Danendra jain Ganaraj Choumuhani Agartala 79001
9th Feb 2010

Union Bank CMD

• Why officers and employees are not transferred out from the Mumbai, Kolkata, Delhi, Bangalore, Chennai etc. and on the contrary employees of states like Orrisa, Bihar, and Jharkhand are frequently transferred out of their states even violating transfer policies?

• Why some officers are always given rural posting whereas some other officers are even promoted without rural posting violating government guidelines in this regard?

• Why some officers are allowed to work in their Metro towns for decades whereas officers of other small towns and villages are to change their place of working every year or alternate year without any incentive or compensation?

• Is there no punishment for those executives who indulge in corrupt practices and resort to whimsical transfers to keep away all employees who may prove hurdle in their money making process?

• Why RBI remains silent spectator of ill-motivated CEOs of banks and allows the malady in banks to accumulate?

• It is worthwhile to mention here that unhappy lot of employees cannot think for and make efforts to keep bank healthy?

• Is human resource not capital in real sense in Banking Industry and for some VIP CEOs of Bank?

Rsing NPA causes bank's disinterest for small loan

This refers to news item that banks is reluctant to dump RBI’s move to dump BPLR based loans published in Economic Times on 31st of December 2009

It is unfortunate that banks demand freedom to decide rate of Interest for loans upto Rs.2.00 lacs so that they may charge interest rate higher than BPLR on small loans sanctioned to farmers, traders and other service providers .I Say unfortunate because Banks are not ready to accept Base rate only because they prefer lending huge money to Corporate and big trade houses at rate much lower than proposed base rate (8.55% tentatively calculated).It is unfortunate because banks are not agreeable to 5% cap on Non Priority sector lending. All these prove that banks in general have forgotten the basic agenda of banks and national priorities.

RBI and Government of India must ponder over this issue and try to find out the reason behind this change in attitude of bankers .After all what may be the reason behind such irrational attitude of banks. I say irrational because they try to forget common men on whom lies the even existence of big corporate and big traders.

Why are Banks in general afraid of lending money to small traders (loan upto Rs.2.00 lacs) and why they prefer investing in MF or depositing the surplus liquidity with RBI even at repo rate.

Is it not the fact that banks are afraid of increasing Non Performing Assets (NPA) in Priority sector lending which dilutes the profitability prospects of banks?

Is it not true that all legal tools in the hands of banks have proved ineffective so far as recovery from willful defaulters is concerned?

Is it not true that political leaders of our country has polluted the banking culture by announcing one after other waiver of loan scheme or putting pressure on bankers for offering Compromise scheme to from willful or recalcitrant defaulters for recovery of money?

Danendra Jain Ganaraj Choumuhani Agartala 799001 Tripura

31st December 2009