409 vol 35 - 1 july, 2016 · 2016-08-18 · officers’ voice, july 2016 1 editor ekanath baliga...

Officers’ Voice, July 2016 1

EditorEkanath Baliga

Asso. EditorSatish Shetty

MembersH.S. Vishwanath

K.B. PrasadY. Sudhindra

Printed by:M. Rajesh Dange

Codeword Process & PrintersFalnir, Mangalore - 575 001

Licensed to Post Under License MNG/128/2015-17 & SK/MNG/WPP/7

Edited and Published byEkanath Baliga

on behalf of the Owners : Corporation Bank Officers’

Organisation (Regd.)106, Lobo Prabhu Court

Light House Hill Road, Mangalore - 575 001 e-mail: [email protected] Visit us @ our website:www.cboo.org

Ever since the NDA Government took office in May, 2014, the issue of the consolidation of Public Sector Banks has been making much of a news afresh. The Finance Minister himself had been harping on this issue in and out of the Parliament and more than once. Every Government at the Centre, becomes hysteric on this issue whenever they are in power.

Why this urge to merge? When on the one side, the Government had been experimenting Small Banks, Payment Banks and also additional commercial banks in the private sector, what does the Government intend to achieve through this process of consolidation? The pet words of synergy, size, acquisition of capital with ease, preparedness for global competition and economies of operation – have lost their sheen after continuous and repetitive listening. More so, these words are being marketed since early nineties and PSBs have not stopped growing since then. Every proponent of the Consolidation theory knows pretty well, these jargons are only for public consumption.

In a recent meeting with the Governor of Reserve Bank of India by the representatives of AIBOC, Sri Raghuram Rajan was very cryptic in his expression that Consolidation needed to wait. Saddled and overburdened with NPAs, with strains on profitability and want of capital immediately, priority must be to strengthen the PSBs. He was

very clear that Government must capitalise the PSBs soon and more than what they had declared. The Central Government needs to take a leaf out of this.

In the past, just as now, bank unions have been opposing the concepts of merger and consolidation. Strikes, demonstrations and approaching the power centres to place their views - had all taken place in the past too. However, this time around, the approach of unions on the vexed issue needs to be geared up further. The UFBU has become a silent spectator. The umbrella of bank unions does not appear to be sheltering its purpose from the governmental rain. With its Convenor having already retired from the services of Bank and he having relinquished the post of General Secretary of his affiliate, the anti – merger movement appears to be lacking in thrust. The constituents of UFBU need to relook into their strategy and purpose very urgently.

The merger of the Associate Banks with State Bank of India and the total absence of any form of resistance in these banks from AIBOC members and leaders has further weakened the anti-merger fight of trade unions. It has also been very surprising, the members of Associate Bank unions are in favour of merger. The AIBOC affiliate in State Bank too has not manifested any stand contrary to this. Here again, the arguments of synergy,

Founder Editor : Sri T.R. Bhat

409 Vol 35 - 1 July, 2016

Registered with RNI, Delhi Regn. No. KARENG/2005/14831


Page No.

CBOO News ................................................... 3Obituary .......................................................... 7Banking Round Up .......................................... 8Women's Wing ............................................... 13A farewell to Kamalakar Nayak .................... 18Retirements .................................................... 22Circular Round Up ........................................ 27Article: Loan write offs is the “biggest scandal of the century” ................................ 29Miscellany ..................................................... 31In Lighter Vein ............................................... 32

C O N T E N T S

OV


Your “VOICE” is 34 Years’ Old

This is the 409th issue of Officers’ Voice – the monthly journal of Corporation Bank Officers’ Organisation. At this moment, we express our heartfelt thanks to those who kindled the thought, nurtured it and supported OV from all corners. The founder editor and the brain behind the publication, Sri T R Bhat, the second editor, Sri D N Prakash, the members of the earlier Editorial Teams, the ‘Last Page’ veteran, Sri H S Vishwanath, our earlier and the present printers, M/s. Praveen Printers and M/s. Codeword Process and Printers, our members and readers from nook and corner of the country and our well-wishers, patrons and one and all deserve kudos. Thanks to them all.

– Team OV

Study the past if you would define the future. - Confucius

majority holdings by parent bank (SBI) and the like are professed. If these are true with SBI and the affiliates, the same is true with Government of India too in respect of Public Sector Banks.

“It’s right for me; but not for you” - attitude does not appear to augur well in any consolidated and united effort. One policy at home and another outside does not work in the trade union movement and will only expose the weakness within.

Furthermore, the biggest challenge that will be posed by the concepts of merger will be for the employees of smaller public sector banks. They have every fear of being treated as the second grade citizens in the merged/consolidated entity where the big brothers will rule the roost. While past examples of New Bank of India and the like are well known, the employees of the erstwhile State Bank of Saurastra and Indore do not enjoy working conditions equal to the employees of State Bank of India even today! Will the fate of the employees of smaller Public Sector Banks be anything different than this?

The steadfastness of officers’ unions in bigger PSBs against the merger has so far been only

upto the union meetings and discussions. Resolute actions and forceful opposition have yet to usher in. A complacency of, “It will not affect me anyhow” appears to have set in.

There is a need for AIBOC to revamp its roadmap in resisting the unscientific and unwanted process of mergers and consolidation. As widely known, the intent of mergers is a prelude for future privatisation of PSBs which is a greater threat for banking structure of our economy. If the first step of Government would be thwarted with all might with AIBOC, the second step would not move.

There is no substitute to unflinching unity in thought, expression and action. Goals will always be achievable if determination is profound and unwavering.

We will incorporate the photographs of retirees along with retirement news. Members may mail their photographs to "[email protected]" in the month prior to the month of retirement. VRS optees may mail the photo immediately after relieving.

- Editor


BranCh VIsITs

JaIpur

Sriram Meena, Zonal Chairman, Rakesh Kumar Meena, Zonal Secretary and Sumant Talk, Area Secretary visited pali, Jalore, Badmer, Jaisalmer, phokran, Jodhpur – Main and Basti Branches on 19th and 20th May. The members shared following problems faced by them at the work places:

a. AC not functioning for the last two years at Pali Branch (Temperature at Pali – 45 – 50 Degree C.).

b. Need for one clerk at Pokhran Branch.

- Rakesh Kumar Meena, Zonal Secretary

KOlKaTa

G P Nath, Circle Secretary, Awadhesh Thakur, Zonal Chairman, Nibir Kanthi Sen, Zonal Secretary, Shantipada Acharya, Deputy Zonal Secretary, Sayanthi Mukharjee, Zonal Lady Secretary and Rashan Kujur, Area Secretary visited salt lake – Main, sector – 5, Baguihati, Barasat, Mohanpur, Jugberia, howrah - Main, south, Maniktala Branch and Circle Audit Office. They had interactions with the members:

a. Branch expansion/renovation work at Jugberia not completed for more than 6 months, causing customer inconvenience. V-sat installation pending for last several months.

b. Need to continue armed guard due to security threat at the Jugberia Branch (Rural).

c. Shortage of one clerk at Howrah – South Branch.

d. Need for renovation or shifting Howrah Main Branch.

- Nibir Kanti Sen, Zonal Secretary

DElhI – sOuTh

Team consisting of Awadhesh Chaudhary, Circle Secretary, Amith Kumar, Zonal Chairman, Sandeep Kumar, Deputy Zonal Secretary and Ranjan Kumar, Area Secretary visited Issapur, Badli, Jhajjar,

CBOO NewsJafarpurkalan, Dariyapur, najafgarh, nawada, Khaira, Chhawla, Dwarka – Main, sector 17 on 10th May. They visited Mahipalpur, Chhattarpur, aya nagar, Vasant Vihar, Vasant Kunj, nebsarai, satbari, Ghittorni, Kapashera and rajolari Branches on 11th May. Members brought the following issues to the knowledge of the office-bearers:

a. Pending rent revision forcing the officers to pay a hefty amount out of their pockets.

b. Urgent need for one officer at Jamalpur to handle credit and recovery.

c. Denial of genuine and basic requirements of branches quoting cost-cutting.

- Manjith Singh, Zonal Secretary

DElhI - nOrTh

Anil Pahwa, Vice – President, Satish Kumar, Zonal Chairman, Aravind Arora, Zonal Secretary, Mukesh Gupta, Deputy Zonal Secretary, Santhosh Kumar and Alankar Kumar, Area Secretaries visited Janakpuri Main, Circle Audit Office, Micro Finance, lICC Centre, Tilak nagar, paschim Vihar, Mundka, Bakkarwala, Tikri Kalan and Gheora Branches on 11th May; ashok Vihar, Vijay nagar, Model Town, azadpur, Bhaktawar, hiranki, alipur and narela Branches on 12th May; Vasundhara Enclave, Mayur Vihar, Vivek Vihar, Dilshad Garden, GTB Enclave, Kabir Nagar, Vishwas Nagar, Preet Vihar and Laxmi Nagar Branches on 16th May.

The following issues were raised by the members:

a. Need for renovation and additional space at Ashok Vihar Branch.

b. Scope for E-Lobby at Model Town and Vijay Nagar Branches.

c. Need for the second officer at Hiranki.

- Arvind Arora, Zonal Secretary

ThanE

Sanjay Hile, Circle Secretary, Manoranjan Singh, Zonal Secretary and Kailash Kalekar, Area Secretary visited pune - shivaji nagar, CBB, southern Command, Camp, Caps, Kondhwa, Deccan

The future belongs to those who prepare for it today. - Malcolm X


Gymkhana, service Branch, lIC-huB Branches and Zonal Office on 07.06.2016. The Members raised the following problems:

1. Absence of own toilet at Pune - Shivaji Nagar Br.

2. Connectivity Problem at Kondhwa Br.

3. Manpower shortage at Pune Camp and Service Br.

- Manoranjan Singh, Zonal Secretary

MEETInGs

huBlI

A meeting of the members of Hubli Zonal unit was held on 5th June at The Hans Hotel, Hubli. More than 130 members from the branches in the Zone attended. President, Ekanath Baliga, General Secretary, Satish Shetty attended from the Central Office. Smt. Delia Dias, Zonal Head and Deputy General Manager too was present. Sri S A Hiremath, former Zonal Secretary was a Special Invitee.

The programme began with invocation by smt. Kalpana Kavlekar. Zonal Secretary, ramachandra Waichal welcomed the gathering.

smt. Delia Dias, Zonal Head gave a bird’s eye view of the achievement of the Zone in the last 18 months. While complimenting the contribution of all officers in the Zone’s turnaround from a negative growth and a neglected Zone to a performing Zone with 4 parameters achieved and rated as 3rd best Zone (3 - star rating), she emphasized on the need for further hard work to sustain the growth, remain performing and get suitably rewarded. She attributed her own promotion and all the performance of the Zone to the staff members who had worked with her as a team.

satish shetty, General Secretary, explained the challenges before the Bank. The NPAs have eaten up our profits in the form of provisioning. But situation is not so alarming. We have to assess the situation, analyse where and how we went wrong and take suitable corrective actions. We must take on the NPAs as a challenge and work as a team.

He also dwelt at length the process of transfers, the reasons leading to delay, a few wrongful transfers effected which have created a lot of problems in

rectification and also the possibility of completion of the process within a couple of days. On the issue of promotions, he shared the view of a few members in the audience that a few performing and deserving aspirants could not get through the process. Though this has created a little disappointment, we must take it in our stride and move forward.

Sharing the details of CBOO’s efforts in securing a reasonable and respectable increase in the Scheme of Rent Reimbursement on the Residential Quarters of the Officers, he explained that we could not accept a very minimal increase of around 15 - 20% offered earlier.

The General Secretary recalled the contributions made by Sri S A Hiremath in Udupi and Hubli Zones. While lauding the free and outspoken approach of Sri Hiremath, he reminded the audience the lead given by him in organizing several seminars and lectures.

President, Ekanath Baliga complimented the audience for a very large gathering on a holiday. He thanked the members for having come from distant places. He explained to the members the evil designs of the Government in pressurizing the banks in the Nationalised sector to opt for the mergers. Presently, when the banks – among themselves have grown weak due to the NPAs and other problems, how could a merged entity be stronger or healthier? In case of the merger of the banks, the employees from smaller banks will be treated as second grade citizens. They will not be treated on par with the employees of the bigger banks as has happened in State Bank after the merger of State Bank of Saurashtra and State Bank of Indore. There will also be cultural clashes, expressions of superiority and inferiority among the workforce all of which would dampen the growth of the PSBs.

Referring to the Manpower Assessment and posting of staff, he expressed the need to revisit the basis and approach on Assessment. The real workload in terms of all and allied work of branches must be reckoned apart from the constitution of business profile of the Branches. The Sankalp concept of Manpower Assessment is flawed; presently, proper replacements on promotion, retirement are not taking place. The reduced staff strength thereafter

Pleasure in the job puts perfection in the work. - Aristotle


itself becomes the manpower of the Branch and the Branch Managers’ pleas are either discarded or several of them do not represent at all. He called upon all staff members to encourage the customers to orient to internet banking, transacting in kiosks and ATMs. These will benefit the officers primarily due to reduction of the counter pressure and secondly and most importantly, several transaction risks will move out of the periphery of authorizers of transactions.

Sri S A Hiremath, former Zonal Secretary was felicitated for his valuable contributions in CBOO’s journey. His wife, Smt. Uma Hiremath and son Chi Vineeth Hiremath were also present during the felicitations.

Replying to the felicitations, sri hiremath, in his true and sincere form expressed that he was very much proud of CBOO. “Honesty and integrity of the leaders of CBOO is beyond doubt. In respect of the values, they will never compromise. There is no desire among them to share the dais with CMDs etc. ‘Save Corporation Bank Campaign’ was an indicator of this.

He recalled the latest incidence of Kochi where the leaders had the courage to stand in front of the CMD in their demand for justice and fair play. He also quoted a few instances when he had to deal with the Zonal Heads for resolution of the just and rightful requirements of the membership. He thanked the Zonal unit for felicitating him.

Zonal Chairman, Y. shashidhar, in his remarks thanked the members for attending in large numbers and more particularly the good number of women members. He called upon everyone to work and contribute more for the Bank.

Zonal Lady Secretary, Geetha proposed Vote of Thanks. In the post lunch session, members raised several issues regarding transfer, promotion, rent revision, band-width problems, non- availability of AFOs and problems after withdrawal of guards at ATMs etc. General Secretary, replying, promised to take up the issues at appropriate level. The programme concluded with National Anthem.

ZOnal COnsulTaTIVE COMMITTEE MEETInGs

ChEnnaI

ZCC meeting was held on 24th May. B Sridhar, Joint General Secretary, P Rangrajan Circle Secretary and Usha Kumar, Deputy Zonal Secretary represented the Organisation. Mr. Shivraj Mishra, Deputy General Manager and Zonal Head, Mr. G. Parameshwarappa, AGM and Deputy Zonal Head and Ms. B. Punitha, Asst. Mgr (Personnel) represented the Management.

Mrs. B punitha, Asst Mgr Personnel, welcomed the members.

sri shiv raj Mishra, Zonal Head was happy to share that with best efforts, the Zone was able to achieve 26% growth in CA, 15% in SB. Average SB grew by 13% and Retail Lending grew by 7%. Other than the Big ticket NPAs, the small NPAs were around Rs.20.00 crores. No. of POS machines installed were 450; 2000 new Current Accounts have been opened. In terms of Elite and Delite accounts, Chennai was among the top 5 Zones in the country. Average ATM hits is the highest in Chennai Zone.

The following issues were raised by the representatives of the Organisation:

1. On-Site ATMs at Dusi and Kalakattur branches need to be air-conditioned.

2. Requirement of additional ATM at Tambaram.

3. Enhancement in cash retention limit of new branches, especially the ones with E lobby as heavy inflow of cash is occurring on almost a daily basis.

4. Proper hierarchy in placement of officers is not maintained in many branches, particularly those headed by executives and to be taken up on priority.

5. Shortage of Staff in a few branches.

6. Problems likely to be encountered in withdrawing security guards from the ATMs.

The meeting ended with Zonal Head assuring of addressing the issues raised by the representatives.

- Usha Kumar, Deputy Zonal Secretary

Strong reasons make strong actions. - William Shakespeare


uDupI

Zonal Consultative Committee Meeting was held on 7th June. The meeting was attended by Raghuraman, Vice President, B.S. Krishnamurthy, Zonal Chairman, M. Jayaprakasha Rao, Zonal Secretary and Ashok Kotian, Deputy Zonal Secretary on behalf of CBOO.

Dr. V Rajendra Prasad, Asst. Gen Manager, Mr. Shivaramakrishnan, C.M., Zonal Office, Udupi, Mr. Rajendra S Kudva, C.M., Personal Department, Mr. Sadananda P, Senior Manager, Personnel Department, ZO, Udupi, represented the Zonal Management.

Zonal Head, Dr. rajendra prasad welcomed the members present in the meeting. In his address, he appreciated the involvement of rank and file in the all-round development of the Zone. He proudly applauded the work of all staff members of Udupi Zone who contributed their 100% as a result of which Udupi Zone could achieve 5 parameters (in March 2016 quarter).

Zonal Head also briefed the members the present position of the Zone in comparison with allotted targets. Zone is lagging behind in all parameters set for the June quarter. He expressed his concern over increasing NPA level; he requested the rank and file to put maximum efforts to bring down NPA level of the Zone since the Bank is passing through tough time and first quarter is very crucial for the Bank. He requested Committee members to pass on the message to the rank and file and sought cooperation and support of officers in improving the Zone’s position during June Quarter.

Responding, Jayaprakasha rao thanked the Zonal Head for his initiatives and inviting the members of CBOO for ZCC meeting. The CBOO representatives invited the attention of the Zonal Head towards the following:

1. Problems relating to ATM (consequent upon Management’s decision to discontinue services of guards at ATM centres and also ATM cash management).

2. Denial of leave especially of the Branch Heads and Zonal Office staff.

Representatives of CBOO briefed the Zonal Head regarding leave issues (especially of Branch Heads and Zonal Office staff). Even Casual Leave for one or two days has been denied or sanctioned partly after telephonic talks with the PAD, ZO. Zonal Office needs to consider the Leave issues of Branch Heads and Zonal Office staff positively so as to avoid being de – motivated, as Branch Managers are the main workforce whose dedicated work brings results to the Zone. They also need rest or dedicate some time to their families and take care of their health. Humans with rejuvenated mind will always give their 100 % to the institution which takes care of their needs.

In reply to the above issue, Zonal Head briefed the Committee the need of Branch Heads to inform the Zonal Office/Zonal Head before availing any leave only to ensure smooth running of branch work in his absence. he assured that he would never deny Casual leave or any other leave. he only insisted to inform the Zonal head over sMs - 1. Type of leave 2. periodicity of leave 3. reason for leave. 4. name of Branch in charge in his absence - before going on leave.

3. Need to review posting of Scale I officers as Branch head without their consent.

In response to CBOO’s submission about Scale I officers being forced to take responsibility as Branch Heads, Zonal Head assured that no one would be forced to take the responsibility as Branch Head. Officers will be taken into confidence and motivated before shouldering the responsibility of a branch.

4. Providing one additional officer to the branches where:

a. Presently there is no second officer and

b. Business figures have crossed 80 cores.

While accepting the views of the CBOO representatives, the Zonal Head assured to solve the problems highlighted. He concluded the meeting with a message to work with coordination among the officers /members of the Branch and assured

The only test of good things is that they make us strong. - Swamy Vivekananda

every support required by the officers in smooth running of the branches. The office bearers thanked DGM for calling the ZCC meeting in time, sharing his views on business growth of the Zone and for accepting the views of CBOO positively. CBOO representatives assured all help and support from the members of CBOO.

- M. Jayaprakasha Rao, Zonal Secretary

BhuBanEsWar

Zonal Consultative Committee Meeting was held on 10/06/2016 (for June, 2016 quarter) at Zonal Office, Bhubaneswar. The Organization was represented by Pankaj Patra, Zonal Chairman, P K Satpathy, Zonal Secretary and B N Pradhan, Deputy Zonal Secretary. The Management was represented by Mr. Venkataramaiah Surapaneni, DGM & Zonal Head and Mr. B Sarangi, Chief Manager.

The meeting began, with welcome address by sri B. sarangi, Chief Manager. Mr. Venkataramaiah s, the Zonal Head informed the participants, that there are gaps for the June’16 quarter in most parameters like CASA, Credit, Agriculture, MSME, OPS, Retail, NPA Cash Recovery and Non-Interest Income. He expressed confidence that the targets under NBD, SME, Agriculture, NPA level could be achieved with a little more effort. He requested the office bearers to spread the message of augmenting business developmental activities by the members. He further informed of the plans to open 4 – 6 branches in the Zone for the current fiscal.

Zonal Secretary, p K satpathi expressed full support of officers for all developmental activities. CBOO raised the following issues affecting the officers and the business of the Zone for immediate redressal:

- Deployment of Armed Guard at Bhadrak branch

- Toilet facility at Odisso and other UBRCs

- Shortage of Staff, both award and supervisory in Sambalpur branch

- Providing Air Conditioners in branches reeling under unbearable heat

The meeting concluded with Sri B Sarangi proposing vote of thanks to all the participants.

- P K Satpathy, Zonal Secretary

1. sri GMG rambhaskar, Chief Manager, Zonal Office, Tiruchirapalli expired on 23/05/2016. He was 57. He was unwell for some time. He hails from Periakulan in Madurai in Tamilnadu.

Sri Rambhaskar joined the Bank as a Clerk in February, 1984. He was promoted as Officer in MMG Scale I in November, 1997. He became Manager in MMG Scale II in December, 2004 and Senior Manager, Scale III in March, 2010. He was promoted as Chief Manager in SMG Scale IV in June, 2014.

During 32 years of service, he worked at Mullukurichi, Siluvattur, Dindigul, Karur, Chandigarh – Zonal Office, Coimbatore – Zonal Office, Ahmedabad – Zonal Office, CCPC, Kudamalai, Sivakasi, Tiruchirapalli and Head Office – Priority Sector Division.

2. sri r r Bharadwaj, Manager, haveri expired on 23/05/2016. He was aged 59. He was unwell for some time. He hails from Bellary in Karnataka.

Sri Bharadwaj joined the Bank as a Clerk in April, 1984. He was

promoted as Officer in JMG Scale I in October, 2005 and as Manager in MMG in Scale II in August, 2012.

During 32 years of service, he worked at Moka, Gadag, Hirewadatti, Bangalore – Domlur Airport, Bagalkot, Jamkhandi and Hubli – RLC.

3. smt. Dhanalaxmi, assistant Manager, Dharmapatti breathed her last on 20/06/2016. She was 58. She belongs to Madurai in Tamilnadu.

Smt. Dhanalaxmi joined the Bank as a Clerk in July, 1981. She became a Special Assistant in

July, 2000 and was promoted as Officer in Scale I in May, 2010.During 35 years of service, she worked at Coimbatore, Madurai – Vengalakadai Street, West Masi Street, Dindigul and Katchaikatti.

CBOO condoles the death of these members and prays Almighty to rest their souls in eternal peace.

OBituary



Bank chiefs will not be questioned over npa resolution decisions: rai

Banks Board Bureau (BBB) Chairman, Vinod Rai has said that in the next fortnight the Board will put in place a new “intermediate mechanism” that will provide cover to bank chiefs on their bad-loan resolution decisions. The bankers who are currently wary of accepting one-time settlements from promoters due to the Indian system’s vulnerable 3Cs (CBI, CVC, and CAG, who can question their decisions even a few years later), will be protected by this ‘intermediate mechanism’. The main purpose of this mechanism is to ensure that three years down the line, the bank chiefs will not questioned over their resolution decisions by any external agency, Rai said at the Confederation of Indian Industry organised 5th Banking and Finance Summit, on Friday.

Later, Rai told newspersons that the intermediate mechanism will be outside the BBB and form part of each bank. The modalities on who would be forming part of it are “still being thought through,” he added. He also said that the mechanism would only focus on the “processes” undertaken in resolving NPAs (non-performing assets) and not the pricing decisions involved. The pricing part of the resolution would still be a commercial decision vested with the bank, Rai said. He also brushed aside comments in certain quarters that bankers suffer from a “fear psychosis” in making lending decisions. This is a bogey and there is no “fear psychosis” among bankers, he asserted.

As regards joint lending and the regulatory aspects around it, Rai said that the Reserve Bank of India was working on more guidelines. He expressed hope that the BBB’s measures would help clean up the bad loans in banks’ Balance Sheets. “The roadmap for our actions will be ready by June 15,” he said. Currently, the priority of the BBB is to fill vacancies and look at providing comfort to bank chiefs on their NPA-resolution decisions. Going forward, the Board is also likely to look at issues such as consolidation of banks.

- The Hindu Business Line, 21/05/2016

pnB moves passport authorities to stop defaulters from going abroad

Punjab National Bank (PNB) has turned smarter after l’affaire Vijay Mallya. The public sector lender has started moving the passport authorities to ensure that ‘willfull defaulters’ do not leave the country without the bank’s approval. PNB has, through the Debt Recovery Tribunal (DRT), ensured that the names of 250 ‘willfull defaulters’ are recorded by the immigration authorities in their systems, Usha Ananthasubramanian, Managing Director and CEO of the bank, said. Whenever a willfull defaulter goes to immigration for going abroad, the system will automatically throw up a message: “permission required to move abroad”. Requests have also been made by PNB to the DRT for a similar process in the case of another 500 willfull defaulters, sources said.

Meanwhile, sources said PNB was unlikely to accept any offer from liquor baron Mallya that does not involve full payment of the dues. “PNB view is he (Mallya) has to pay the money in full,” a top bank official said. Mallya has reportedly made a new settlement offer to consortium leader State Bank of India expressing his willingness to settle for less than what is due to the banks. He has been showing willingness to pay up after running out of all options to avoid repayments.


‘Fair practices code adopted by banks is observed more in breach than in practice’ over a year after it was issued

Well over a year after the Reserve Bank of India (RBI) notified the Charter of consumer services, very little has changed. The code remains toothless, yet the RBI only talks about its issuance, nearly a year and half after it was formally announced. “Very often, RBI has found that the fair practices code adopted by banks / financial institutions is observed more in breach than in practice. In view of the growing complexities of the financial transactions and financial markets, RBI, therefore, felt a need to clearly define the role and responsibility of financial service providers, especially in relation to consumer protection and the framing of the Charter

BaNkiNg rOuNd up

Yesterday I was clever; so I wanted to change the world.Today, I am wiser; so I am changing myself - A download


of Customer Rights was a logical step in that direction”, said SS Mundra, RBI Deputy Governor, while addressing a gathering at the Banking Codes and Standards Board of India (BCSBI) this week.

He addressed another overdue issue, when he said, “RBI is already examining whether to issue regulatory direction with regard to limiting the liability of customers on fraudulent transactions arising out of frauds and electronic banking transactions”. He admitted that with the increase in online transactions, there has been a rise in complaints related to electronic banking transactions, unauthorised fund transfers, fraudulent withdrawals from ATMs using duplicate cards and phishing e-mails, among others. “It is imperative to have a robust mechanism to prevent incidents of frauds in mobile net banking and the electronic fund transfer so as to retain customers’ confidence in these delivery channels,” he said. At the same time, raising customer awareness for safe usage of these channels should be an important item on the agenda of the banks, he said. “... if customers don’t get confidence in the channels and decide to abstain from them, then it can have only two outcomes - either customer would migrate or customer would come back to the traditional channel which would mean higher operating cost for the banking system,” he argued.

Mundra criticised the banks for totally ignoring or rather knowingly violating the ‘Right to Suitability’ enshrined in the RBI’s Charter of Customer Rights in an attempt to mis-sell products to customers. Under the Right to Suitability Charter, the products offered by the banks should be appropriate to the needs of the customer and based on an assessment of their financial circumstances and understanding. “RBI is seized of this issue and may take a strict action, including heavy penalties, if the banking industry continues to follow such unethical and unaccepted practices of mis-selling of third-party products,” Mundra warned. He advised banks to put in place a system of periodic inspections of the sale of third-party products by either own staffs or by direct selling agents (DSAs). The RBI is also planning to augment the number of its banking ombudsmen offices in the near future, Mundra said.

In conclusion, Mundra said that as the competition intensifies with the licensing of more new banks, only those entities which provide better customer service and experience would survive. Various research studies have shown that customers are willing to pay for quality service and would transact with the institutions which provide better services. Some of us might have heard that customers choose to move to another bank in case he/she was dissatisfied with the services received at the present. With the implementation of a unified KYC (Know Your Customer), account number portability, would come into the realms of possibility. With the introduction of unified payments interface, a customer can be identified with his unique “virtual address” mapped to his mobile phone linked to the bank account number. With this information available centrally at the NPCI, the portability of the account would merely need a change in linkage to an account in another bank at the backend. Banks must, therefore, build structure and processes that aim at providing quality and efficient services or else face the prospects of a customer silently walking away without causing any inconvenience to him/ her and loss of business to the bank. This is the warning to all banks and bank staff, as customers have begun to value service from banks.

- Moneylife, 26/05/2016

Court orders issue of notice to Center, sBI on recruitment

A Madras High Court bench today ordered issue of notice to the Centre and the Chairman of State Bank of India (Central Recruitment and Promotion) on a PIL seeking to quash notification for recruitment of 18,000 Junior Associates and Junior Agricultural Associates. Justices R Mahadevan and S S Sundar also sought the Centre’s explanation within two weeks on the PIL filed by S Gurukrishna Gokul, an aspirant. Gokul submitted that as per the notification, the candidates with record of default in repayment of loans or in whose name an adverse report in Credit Information Bureau (CIBIL) are available are not eligible to apply for the posts. This condition would prevent a large number of economically and socially backward candidates from applying for the posts.


Every ideal that strengthens you must be taken upEvery thought that weakens you must be rejected. - Swamy Vivekananda


Gulf banks report more loan defaults as oil slump plays out

More than two-thirds of Gulf banks reported an increase in unpaid loans in the first three months of the year and more defaults are likely as oil-dependent governments slash spending to adjust to lower crude prices. After several years in which banks’ profits jumped thanks to the region’s petrodollar boom, the oil markets’ two-year malaise is taking its toll. New global accounting standards from 2018 will make lending even harder. “The days of double-digit profits and expansion plans are gone,” said one United Arab Emirates-based banker. “Now, it’s all about single-digit growth and controlling costs as bad loans are going to keep getting higher. It’s the new normal.”

Two of the region’s largest banks show how tough things have become.

National Commercial Bank (NCB), Saudi Arabia’s largest bank by assets, put aside 58.8 percent more money to cover bad loans during the quarter, analysts estimate, partly due to delays in government payments to its customers. The bank has close links to the government and construction giant Saudi Binladin Group, which like many building companies, has been hit by a slump in the building sector as the state slows spending.

National Bank of Abu Dhabi (NBAD), Abu Dhabi’s largest bank by assets, reported 73.3 percent more defaulted loans over the same period; small and medium-sized businesses are struggling as well as larger companies such as Al Jaber Group, with interests spanning construction and retail to aviation.

Many indebted small business owners have fled abroad. Banks lost around $1.4 billion in the year to November this way, a senior banking official has said, although the head of the UAE Banking Federation said this week more were now renegotiating. Out of 26 regional banks, 69 percent reported a rise in the percentage of non-performing loans and analysts and bankers expect that to climb further due to lower government and consumer spending.


swiss bank BsI to be shut over Malaysia embezzlement scandal

A Swiss private bank will face criminal proceedings and be liquidated after allegedly committing serious breaches of anti-money laundering regulations in connection with the suspected embezzlement of a Malaysian state investment fund. Switzerland’s market supervision indicated on Tuesday that BSI SA helped transfer of money to the Alpine country connected to the Malaysian fund called 1MDB.Investigations so far into 1MDB have indicated that $4 billion earmarked for development projects in Malaysia may have been misappropriated from State-owned companies.

The Swiss market supervisor, FINMA, said that in the 1MDB case, BSI “executed numerous large transactions with unclear purpose over a period of several years and, despite clearly suspicious indications, did not clarify the background to these transactions.”


Firms with willful defaulter on board cannot raise funds

Capital market regulator SEBI has made it harder for companies with a willful defaulter on their boards to raise funds from the securities market, either as debt or equity. Effectively, companies will now be forced to show such directors the door if they wish to access the securities markets.

SEBI has defined a willful defaulter as any person who is “categorised as a willful defaulter by any bank or financial institution or consortium thereof, in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India and includes any person whose director, promoter or principal officer is categorised as such.” SEBI has said that no issuer can make a public issue of equity shares or convertible debt instruments if any of the promoters or directors of the issuing company is a willful defaulter or has defaulted in repaying interest or principal of any debt instrument that the company had issued more than six months earlier.


Thou shalt be both the plaintiff and the judge of thine own cause. - William Shakespeare


MuDra disburses rs.1.43 lakh cr to small, micro entrepreneurs

The entrepreneurship streak appears to be stronger in the small and retail business space, going by the pattern of loans disbursed by the Micro Units Development and Refinance (MUDRA) Bank. Small retailers, shopkeepers and those running micro units have utilised almost half of the loans disbursed under the MUDRA scheme launched by the Centre in April 2015. As of May 20, the total loan disbursement was about Rs.1.43 lakh crore and new entrepreneurs accounted for much of it.

The objective of the scheme is to encourage new small businesses and ensure that at least 60 per cent of the credit flows to Shishu category units and the balance to the Kishore and Tarun categories. This has been realised as loans sanctioned/disbursed under the first category have so far been higher than those under the other two categories. In terms of States’ performance, Karnataka topped last year with Rs.16,469 crore disbursements, followed by Tamil Nadu (Rs.15,496 crore) and Maharashtra (Rs.13,372 crore). In disbursals, State Bank of India and its associate banks accounted for the biggest share of Rs.16,999 crore. The disbursals by the 39 NBFC-Microfinance Institutions were also significant at Rs.44,026 crore.

MUDRA loans are cheaper than those offered by other agencies, such as banks and MFIs. The cost of MUDRA funds, on an average, is 150-200 basis points lower than the benchmark repo rate.


pus banks install 14k aTMs

State owned banks installed close to 14000 automated teller machines (ATMs) in different parts of the country in 2015-16, but missed the cumulative target of 15249 for financial year. A Total of 13935 cash dispensing machines were installed by banks in the year ending March 31, 2016 against the target of 15249 ATMs according to the data on progress of installation of ATMs by 27 public sector banks.

The total number of ATMs of PSBs increased to 142557 at March end. The country’s largest bank SBI installed 4222 ATMs against target of 4200;

SBI had 49724 ATMs at end of March.

- The Times of India, 30/05/2016

India post’s payments Bank proposal cleared

The Central Government on Wednesday cleared a proposal to set up India Post Payments Bank with a corpus of Rs 800 crore and has plans to have 650 branches operational by September 2017, Telecom Minister Ravi Shankar Prasad said. “We have 1.54 lakh post offices of which 1.39 lakh are rural post offices. 650 branches of postal payments bank will be established in the country which will be linked to rural post offices,” Prasad said.

The Minister said the payments bank which will be run by CEO, will be professionally managed and there will be a representation from various other Government departments, including the Department of Posts, Department of Expenditure, Department of Economic Services etc. “Total architecture of postal payments bank is of Rs.800 crore which will have Rs. 400 crore equity and Rs. 400 crore grant. By September 2017, all 650 branches of postal payments bank will become operational. This we had planned for three years; now we will be doing it in a year.”


rBI pushes for cyber security policy

With the number, frequency and impact of cyber incidents/attacks increasing manifold in the recent past, the Reserve Bank of India has asked banks to immediately put in place a cyber security policy. The policy should elucidate the strategy containing an appropriate approach to combat cyber threats, given the level of complexity of business and acceptable levels of risk, duly approved by their Boards. It has also called upon the banks to immediately evolve a Cyber Crisis Management Plan which will address detection, response, recovery and containment of such incidents.


RBI proposes two funds to revive firms under sDr

With banks not making any headway in effecting ownership change in borrower companies under

A person must be big enough to admit his mistakes; smart enough to profit from them; strong enough to correct them – A download

the Strategic Debt Restructuring (SDR) mechanism, the Reserve Bank of India has mooted that they jointly float two funds — one to temporarily take over ownership of the companies by infusing equity capital in them and the second to provide working capital for the day-to-day operations of these companies.

In June 2015, the central bank allowed banks to undertake SDR by converting loan dues into equity shares in borrower companies if they fail to achieve certain viability milestones (such as improvement in certain financial ratios after a period of time, say, six months, one year and so on). While banks have converted loan dues into equity shares in some companies, they have been unable to effect change in ownership. Banks have invoked SDR in the case of companies such as IVRCL, Gammon India, Electrosteel Steels and Alok Industries.

A top public sector bank official, well-versed with developments on the SDR front, said: “Banks don’t have the bandwidth to manage defaulting borrower companies, once they take majority stake in them. So, the RBI has proposed that they float a fund which will not only infuse capital in these companies but also undertake the task of operating and maintaining them till a new owner is found.” Since provisioning implications hold back banks from providing fresh working capital to defaulting companies even if they are undergoing SDR, the RBI has proposed to the Indian Banks’ Association that banks float a separate fund to meet the working capital requirements of such companies.


ICICI Bank to go paperless in green drive

ICICI Bank plans to go paperless by putting a host of banking services on a digital platform to reduce its carbon footprint as part of its environmental sustainability drive. “As a responsible bank, ICICI Bank always focused on all the societal stakeholders, including the environment. We have been endeavoring to go paperless by introducing an array of digital banking services which will help us to reduce the usage of paper,” ICICI Bank’s Senior General Manager, Saurabh Singh said on the occasion of World Environment Day.


sasikumar takes over as MD of state Bank of Travancore

C R Sasikumar has taken over as Managing

Director of State Bank of Travancore (SBT), one of the associate banks of State Bank of India (SBI). Sasikumar started his career as a probationary officer with SBI in 1978 and has since held several key assignments. Prior to the present posting in SBT, he was Deputy Managing Director, Inspection & Management Audit at SBI Corporate Centre in Hyderabad.


state-owned banks widen reach quicker than private lenders

Public sector banks have increased their presence across the country—in terms of ATMs and points of sale devices—far faster than private sector banks have, recent data released by the Reserve Bank of India shows. The data—comparing private sector and public sector banks on various parameters such as the number of ATMs, points of sale (POS) devices, credit and debit cards outstanding, and the value of the transactions done via these cards—shows that public sector banks have steadily increased their share in most of these parameters over the last four years. There are 27 public sector banks and 19 private sector banks in operation currently.

aTMs & pOs

The data shows that there were 142,500 public sector banks (PSB) ATMs as of March 2016 which amounts to 72 per cent of the total number of ATMs in the country. This is a vast improvement over the 58,000 PSB ATMs at the end of March 2012. Private banks, on the other hand, only increased their number of ATMs from 30,300 in March 2012 to 55,600 at the end of March 2016, effectively seeing their share in the total fall 10 percentage points over the period.

One common view is that this increase in the number of ATMs by PSBs is due to the government-mandated rural financial inclusion programme. The data supports this, with PSB ATMs making up 86 per cent of all rural ATMs at the end of March 2016, up from 77 per cent in March 2012. But, as the data also shows, PSBs have a higher share of ATMs than private banks in metro, urban, and semi-urban areas as well. Urban non-metro ATMs for PSBs grew from 62 per cent share in March 2012 to 72 per cent by end of 2015, while the share of private ATMs fell from 37 per cent to 27 per cent. Semi-urban India saw almost the same trend.


cont'd... on page 21

“Stress has nothing to do with our profession or vocation. It is our inability to face the situation at a particular point of time. If we adapt to face any challenge or do a work, there will be no stress; nobody is responsible for our stress except ourselves.” Said Smt. Uma M G, Principal District and Sessions Judge, Mangalore. She was addressing the ladies, attending a first ever meeting of the lady functionaries of CBOO – Zonal Lady Secretary, Deputy Zonal Secretaries and Zonal Lady Secretaries from all over the country after inaugurating it by lighting the lamp.

Congratulating the officers present there for having floated an exclusive Women’s Wing to cater to and address the needs of the women working in the Bank, she asked why there is need for a separate Women’s Wing when on the other side we demand for equality with men with 50% strength of women. “We worship Goddess Laxmi for Prosperity and Wealth; Saraswathi for Knowledge and Durga for Courage and Valour. We also believed, ‘Yathra Naaryastu Poojyanthe, Ramanthe Tatra Devathaa’. But today, things have changed, as we see all sides.”

“It is a gift of the nature to the women-folk, they are capable of multi-tasking. It has also been proven scientifically. Ladies have achieved top most positions in almost all fields. They are working even in armed forces. It is true, we are working outside; we have to manage the family too. We cannot ignore our family or family responsibilities; because, we have got to do justice to our relationships too.

There can be no discrimination on the basis of gender - mandates the law of the land. But there are also special provisions to protect the women and children. We have to discharge our duties at workplace in no way less than our male counterparts. We must seek no privileges as a lady as far as work is concerned. Problems of our house shall not enter our work place and vice versa. If the moods emanating from house are passed on to others at office, entire office atmosphere gets spoilt.”

Referring to the protection of women at workplaces, she recalled the 1997 Vishakha case of Supreme Court. In the light of absence of any statute to protect

women's wing

WOMEN’S WING CONVENTION AT MANGALORE

Welcoming Guests & Participants - K P Vanajakshi

Invoking Blessing of God - S Prakash Rao

Inauguration by Lighting the Lamp

Smt. Uma M G - Delivering Inaugural Address


the women at workplaces, the Supreme Court mandated the Government to enact appropriate law in this direction.

“Challenges are stepping stones to come up; we have to set our goals and achieve it. In the process please extend helping hand to our sisters and juniors. Where there is righteousness, there is beauty.” she said.

Sobha L., Secretary, Women’s Wing gave the details about the purpose of the meeting, the proposed sessions which will be dwelt at the Convention and the need for activating Women’s Wing in the Bank.

President, Ekanath Baliga, emphasized that the womenfolk face a lot of challenges – at work places, at discharge of the family responsibilities and even outside. The convention is held for the first time with a view to provide an opportunity to the leaders of Women’s Wing to discuss the problems faced by ladies at work places – specifically the officers - and ascertain plausible solutions and corrective actions. He requested the participants to put their ideas together and suggest the requirements which could be taken up at appropriate levels.

Prakash Rao, Secretary, Benevolent Fund rendered the invocation in the beginning; K P Vanajakshi, Zonal Lady Secretary, Mangalore welcomed and Sreemathi Bhat, Zonal Lady Secretary, Udupi proposed vote of thanks. The programme was compered by Smt. Rita D’ Souza.

The first session was on “Stress Management” Smt. Asha Ravi, a Yoga Teacher from ‘Art of Living’ gave tips to the participants on easy and simple techniques to relieve themselves of stress at workplace as also at home.

Sri T R Bhat, former Chairman of CBOO gave an account of the conceptualization, launching, activities and the historical details of Women’s Wing in the Banks – more specifically in Corporation Bank (Development of Ladies Wing in Banks). AICOBOO took a noble decision to float a Women’s Wing in each of its affiliates. A separate such Wing enables exclusive meetings of women officers, provides an opportunity to freely interact and also emboldens them to take up the issues affecting women. CBOO took the initiative to comply with this decision by floating the Wing in February, 1985 with the election of Smt. Bharati A Nayak as its (first) Convenor. He also explained the various activities, the Women’s Wing in CBOO had organized. He advised everyone

Smt. Rita D'Souza - Compereing

Sreemathi Bhat - Proposting Vote of Thanks

President's Remarks - Ekanath Baliga

About the Programme - Shobha L


present to pursue their careers, devote for CBOO, take care of members, develop attitude and skill and work with social concern.

Smt. Prema Raghavan, Assistant General Manager, CAO, Ahmedabad, explained the challenges the women folk have to face when they step out to compete with men at the workplaces (Managing Family and Work Place). A little Planning, Delegation, Monitoring and Sharing are the essence in the lives of everyone. To balance the home affairs as also the places of work, there is a need for discrete planning – short term, i.e., daily or weekly, medium term, i.e., month to months and long term, i.e., future few years. Once we set goals, plan to achieve, what’ll be left will only be a march to accomplish it. There is no substitute for knowledge gained through hard work. We must not compromise on our hard work as also knowledge for fear of transfer or a favour of promotion, she said.

Sobha L., Secretary, Women’s Wing placed before the gathering the activities that the Zonal Lady Secretaries have to undertake to keep the fibre of unity stronger (Role of ZLS and Organisational Functions). She also suggested the functionaries to actively involve in agitational activities like demonstrations, Jathas and the like so that the voice of the women shall not be less heard in the trade union movement. Similarly, the opportunities to address and represent shall not be missed as they are opportunities to learn too.

The functionaries present were huddled thereafter into a group discussion to list out the needs of the women officers. These group leaders presented the views of their respective groups.

The day’s proceedings came to an end with a valedictory function. A few participants expressed their views on the sessions and the unique programme arranged with a wish to hold such meetings from time to time. Smt. Prashanth Chandrashekhar, Deputy General Manager, Zonal Office, Hyderabad gave a scintillating speech with her real life examples in her journey upto the level of DGM to an audience who heard her in rapt attention. Ladies have equal acumen to shoulder all responsibilities; they do not shirk responsibilities, she said.

“Life hits us without any blow or bruise; but it inflicts wounds in the heart. But don’t get disturbed. When life hits you, you hit it back harder. We need

De-stressing Audience - Smt. Asha Ravi

A Session by Sri T R Bhat, former Chairman

By Smt. Prema Raghavan, Former Sec. Women's wing

Group Disscusions


to break the myths of inborn limitations. The male dominant world will not easily be ready to accept female participation and success in any area. But new generation ladies have succeeded in all spheres.

We have to focus on our goal. Dream is essential; successful persons dream first; get up to convert the dream into thought and transform the thoughts into action. We, women, at times feel like giving up while managing family and profession. But, just look back. Having traversed that distant facing odds, think for a while whether it is worth to give up. “DON’T GIVE UP” Failure is a part of our life; but it’s not a deterrent; it’s an opportunity. We err at times and hence we fail. But, if we correct and proceed, we will march towards success. If we repeat the mistakes, we will err always.” She wished all present success in their endeavours.

General Secretary, Satish Shetty expressed his happiness over the good attendance from across the country and the active participation by all. He advised all to keep organized. He also explained the latest developments. While responding to the questions by the participants on the long pending issue of revision of rentals on the officers’ quarters, he explained the logic of the demand of the Organisation, the reality of the abnormal increase in the rentals across the country and the need for a reasonable (though not covering the entire expenditure) increase in rentals. The present proposal from the Management was far from the market realities and far below the expectations of the officers. He hoped that the Management would find reason and logic behind the demand of the officers and would concede a respectable increase in rental reimbursement.

G Raghuraman, Vice – President suggested all the participants to update themselves on the service conditions which would come handy to deal with the problems of the members. In the backdrop of the increasing number of women officers, more and more of them must volunteer to serve the Organisation and strengthen CBOO.

Bhavani, Zonal Lady Secretary, Hyderabad thanked each and everyone who contributed in the successful Convention of the women functionaries of CBOO and wished such events would be conducted frequently.

Group Discussions

Smt. Prashanth C - Delivering Veledictory Address

Satish Shetty, Gen. Secretary, Addressing

Remarks by Vice President - G Raghuraman


A programme to bid–good–bye to K Kamalakar Nayak, former Treasurer, was held at CBOO CENTRE, Mangalore on 16th June. Functionaries from Head Office, Mangalore, Udupi Zonal units along with a few other functionaries and former office bearers attended the meeting.

Welcoming the members of the audience and Nayak, Vice President, G Raghuraman paid rich tributes to the silent work, the dedicated accomplishment and the jovial puns of Nayak.

President, Ekanath Baliga explained the systematic work and execution of the responsibilities given to Nayak at all times. Kamalakar’s absence will be difficult to envisage as the Central Office work he was monitoring, was enormous. Kamalakar was devoted to the cause of CBOO - even despite personal difficulties endured by him and the punitive and repressive acts of the Management post June-2009 events suffered by him. Apart from transfer, on frivolous and flimsy grounds, Management imposed increment cuts on Kamalakar (and three other functionaries of CBOO). They bore the brunt with courage and conviction – all for the sake of the common cause. He (other too) refused the offer of CBOO for any replenishment of financial loss suffered due to Management’s vindictive actions. CBOO is proud of Kamalakars, Chikkannas, Shashidhars and Balakrishna Prabhus. We want more Kamalakars to carry on the CBOO’s journey, he said. He wished Kamalakar a happy and peaceful retired life.

Sri T R Bhat, former Chairman of CBOO was all in praise for the meticulous and systematic work of Nayak. The first identification of a remote backward and difficult-to-reach village for SWASTI activity (Haiyangar village in Udupi District) is a testimony to the empathy for the needy and devotion to the cause of CBOO in Kamalakar. Kamalakar as a leader was easily accessible to members with absolutely no gap between them and him. When he suffered pains, he did not complain; he believed – when you fight a war, injury is unavoidable. Even after the injury, Nayak continued to work for the Organisation with the same zeal, enthusiasm and commitment.

Sri D N Prakash, former President compared

A FAREWELL TO KAMALAKAR NAYAK

Invocation by Smt. Usha K

Welcome Address by Vice President, G Raghuraman

Felicitations

Eknath Baliga, President

Sri T R Bhat, Former Chairman


the punishment letter of the Management to Kamalakar for carrying out the CBOO work as the “Taamrapatra” which any trade union functionary will adore like “Param Veer Chakra” given to the valiant soldiers in Indian armed forces. During Kamalakar’s tenure, highest number of SWASTI programmes had taken place. Apart from his work, he was frank, straightforward and clear in his views and conviction. Younger generation of members must learn from Kamalakar to utilize the platform given by the union and develop into good leaders.

Nitin Kumar, Bharath Kumar and Jayaprakash Rao, Zonal Secretaries of Head Office, Mangalore and Udupi Zones paid tributes to Nayak in their felicitation addresses. Sri O C Vittal Rao, former Assistant General Secretary, Sri S A Hiremath, Sri Keshav Rao and Sri Ambarish Kumar Singh, former Zonal Secretaries also felicitated Kamalakar.

“People who work behind the screen do practically run the Organisation. Kamalakar was never after posts. He used to voluntarily and readily relinquish posts to make way for newer entrants. CBOO was everything to Kamalakar. It is very difficult to find a replacement for a tireless man like Kamalakar,” said Satish Shetty, General Secretary, in his felicitation address. While we cannot extend his service, Nayak will surely extend his service to CBOO even after retirement, he hoped.

Thereafter Kamalakar was felicitated by the President, Vice President and the General Secretary.

“Today is a great day for me in my life and I will cherish these moments. I am greatly honoured by the way you have felicitated me in the presence of great leaders like TR Bhat & others,” said Kamalakar Nayak in reply to the felicitations. “I joined this Bank in Mangalore and I am retiring from Mangalore. I joined CBOO immediately on joining Bhat Bazar branch as officer. But my organisational activities started from Udupi. I was actively involving in all CBOO activities and Mr. Keshav Rao identified me for the Regional Secretary post.

I feel satisfied that I had identified SWASTI activity in Haiyangar - a remote village - during my tenure as a Regional Secretary of Udupi Zone. I along with other office bearers visited many branches during my tenure and that has helped me to keep in touch with many people. I came to Mangalore for looking

Shri D N Prakash, Former President

Nitin Kumar Bharath Kumar Jayaprakash RaoZonal Secretaries

OCV Rao S A Hiremath Keshav Rao A K Singh

Satish Shetty, General Secretary


after Consumer Co-op Society work and later was given the responsibility of Regional Secretary of H.O. unit. I have worked continuously for more than 11 years in CBOO Central Office in various capacities and I must thank present as well as past office bearers of the Organisation for giving me an opportunity to work as a humble soldier of CBOO. It was Mr. Mahesh who was always helping me in the Central Office for doing my work and we used to go together from the Central Office almost every day. Mr Jagadish was also very co-operative in providing the information required by me from time to time. I am grateful to both of them.

Once again, I wish the Organisation and all of you ALL THE VERY BEST,” he concluded.

B Sridhar, Joint General Secretary proposed vote of thanks. Kum. Divya well compered the programme. Programme ended with the National Anthem.

The Felicitations

Reply to Felicitations - Kamalakar Nayak Vote of Thanks - B Sridhar, Jt. Gen. Secretary

A View of the Audience

Kum. Divya - Compering



Private banks were the first-movers in POS devices (that allow card transactions), having issued 85 per cent of these as of March 2012. This proportion saw a significant change over four years. PSBs added nearly four lakh POS devices to the market in that time, compared to an addition of about three lakh by the private banks. This saw the share of public sector POS machines grow from 8 per cent in March 2012 to 34 per cent in March 2016. Private banks’ share fell to 62 per cent.

Credit Cards

The issuance of credit cards and the share in credit card transactions are two areas where the private sector outshines the public sector. There were 195 lakh credit cards in the country as of March 2012, 55 per cent of which were from private banks. The total number of card increased to 245 lakh by March 2016 and the private sector’s share increased to 60 per cent. The PSBs increased the number of credit cards they issued in this time, but the growth in their market share was only three percentage points, to 20.6 per cent. Similarly, the private sector accounted for 45 per cent of credit card transactions as of March 2012, which grew to 55 per cent by March 2016.

Debit Cards

The data on debit cards tells the story of public sector dominance. Debit cards issued by PSBs made up 77 per cent of all outstanding debit cards as of March 2012. The state-run banks added 30.3 crore debit cards over the next four years, taking the total number of PSB debit cards to 54 crore.

-The Hindu, 13/06/2016

sBI, ICICI Bank and axis Bank have more stressed assets than they have disclosed

State Bank of India (SBI), ICICI Bank and Axis Bank have stressed asset figures far in excess of those disclosed, based on the assumption of missing component. It will be worth closely watching the source of slippages emerging in second and third quarter of FY 2017 for further evidence of the authenticity or lack thereof of the bank watch lists, says a research report from Religare Capital Markets Ltd. “The asset watch lists declared by banks last quarter are highly subjective and differ widely in

terms of stressed asset inclusion. This makes comparisons problematic and more importantly, runs the risk of severe understatement of bad loans. We wanted to streamline the watch lists to enable a peer comparison and to garner a clearer idea of how well each bank really fares on the asset front,” the report says.

Religare says, for Axis Bank, it added non-funded exposure to stressed sectors, 5:25 refinancing and the balance outstanding restructured or strategic debt restructuring (SDR) loans. Since ICICI Bank’s watch list was restricted to the top five sectors, the report says, it added exposure to other sectors (using Axis Bank’s disclosures as a base) and also included restructured assets. For SBI, we incorporated the restructured assets, SDR or 5:25 exposure and potential bad power loans that had not been recognised in the bank’s watch list, it added. “(There are) massive gaps between disclosed and derived watch lists,” the report says, adding, “On running the adjustments mentioned above, we found that our derived watch lists were 35%–144% higher than those disclosed by the three banks. For ICICI Bank, our stressed list was 35% higher at Rs. 59,300 crore (5.5% of total exposure), followed by Axis Bank with a 39% variance at Rs. 31,500 crore (5.4%). SBI’s derived list was a shocker, coming in 2.4 times higher than management guidance at Rs. 76,500 crore (3.2%).”

- Moneylife, 13/06/ 2016

cont'd... from page 12

reader’s Comments:

Good Morning Mr. Baliga. Thank you for sending me ‘Officers’ Voice’. I like the thought- provoking articles. Could gauge the vibrant nature of Conference through its colourful pages. Editorial and Branch News are wake up calls. I wish you every success in taking the movement to greater heights.

Regards, Dr. ravishankar rao, Professor of English, Mangalore University.

(Dr. Rao was the Chief Guest of our function held at CBOO Centre on 1st October, 2015 to commemorate 400th issue of OV)

Being honest may not get you many friends; but will always get you the right ones.

a. supErannuaTIOn rETIrEMEnTs

The following members will be retiring from the services of the Bank on attaining the age of superannuation on 31st July, 2016:

1. Mr. M V Jagadeesh Kumar, Manager, Bangalore-Chamrajpet (Bangalore - south)

Sri Jagadeesh joined the Bank as a clerk in October, 1976. He was promoted to Officer cadre in January, 1983 and he was promoted to MMG Scale II in October, 1998.

During 40 years of service, he worked at Belgaum-(Samadevigalli), Bellary, Cheekanahalli, Bangalore-Yelahanka, Nrupathunga Road, New Delhi - Regional Office, Mysore – Siddhartha Layout, Regional Office - Karnataka II, Doddabelavangala, Bangalore - Basavanagudi, Head Office - Recovery Division, Bangalore-Jayanagar, Ramanagar Lead Bank, Zonal Office, Bangalore South, Bangalore – Jayanagar, New Delhi –Zonal Office and Bangalore - Chamarajpet.

2. Mr. K anandarama aithal, assistant General Manager, Mangalore - retail loan Centre, (Mangalore Zone)

Sri Aithal joined the Bank as a Clerk in May, 1978. He was promoted to Officer cadre in JMG Scale I in December, 1983. He became Manager in MMG Scale II in July, 1996 and Senior Manager Scale III in October, 2001. He became Chief Manager in SMG Scale IV in February 2007 and Assistant General Manager in Scale V in June, 2014.

During 38 years of service, he worked at Mangalore-Staff Training College, Mulky, Pandeshwar-Sasthan, Banavase, Shimoga, Chikmagalur, Indore, Bettageri, Bagalkot, Bangalore-Malleswaram 18th Cross, Basaveshwarnagar, Hassan, Nerul, Hubli-Coen Road and Priority Sector Division H.O.

3. Mr. B Ganesh Baliga, assistant General Manager, Inspection & audit Division head Office

Sri Baliga joined the Bank as a Clerk in May, 1978. He was promoted as Officer in JMG Scale I in September, 1983. He became Manager in MMG Scale II in April, 1997 and Senior Manager Scale III in November, 2005. He became Chief Manager in

Scale IV in November, 2010 and Assistant General Manager, in Scale V in November, 2015.

During 38 years of service, he worked at Head Office, Dandeli, Sagar, Tadambail, Head Office – CCD, Banavase, Mumbai-Bandra, Bangalore-Chamrajpet, Head Office – Credit Division, Sanctions, Mangalore – Pandeshwar, Mumbai - Overseas, CCPC, Vadodara – Zonal Office, Surat and Kolkata – CCPC.

4. Mr. Chunduru sita-ramanjaneyulu, senior Manager, Circle Audit Office - Kolkatta

Sri Sitaramanjaneyulu joined the Bank as a Clerk in July, 1978. He was promoted to Officer cadre in JMG

Scale I in September, 1983. He became Manager in MMG Scale II in November, 1997. He was elevated as Senior Manager in Scale III in October, 2006.

During 38 years of service, he worked at Head Office, Nizamabad, Sholapur, Hyderabad-Siddiamber Bazar, IAD Cell, Jalagaon, Bathalapalli, Kanpur, Bhopal, Regional Office-North II, Lucknow – Zonal Office, Hyderabad – Zonal Office, Medchal, Secunderabad - Gunrock Enclave, Hyderabad - Siddiamber Bazar and Kolkata-Salt Lake City.

sri anjaneyulu served CBOO as its EC member for several years. he was assistant secretary in the 10th EC from 1989 -91, Organising secretary in the 17th and 18th EC from 2007 – 2013 (2 terms) and EC Member (representing CMs and aGMs) in the 19th EC from 2013 – 16.

5. Mr. Mauritio pineiro, assistant General Manager, new Delhi-CBB (Delhi - north)

Sri Pineiro joined the Bank as a Clerk in December, 1978. He was promoted to Officer cadre in JMG Scale I in August, 1983. He became Manager in

MMG Scale II in March, 1994 and Senior Manager in Scale III in February, 2000. He was elevated as Chief Manager in SMG Scale IV in November, 2004 and as Assistant General Manager, Scale V in October, 2009.

During 38 years of service, he worked at Chennai-Mylapore, Rajkot (CBB), Ahmedabad-Regional Office, Navarangapur, St. Jose De Areal, Regional Office Gujarat, Bhayandar, Mumbai-IIBD, CBB and Treasury.


retiremeNts


6. Mr. V sridharan, Branch Manager, Medavakkam (Chennai Zone)

Sri Sridharan joined the Bank as a Clerk in November, 1979. He was promoted to Officer cadre in JMG Scale I in July, 1984 and he became Manager in MMG Scale II in March, 2003.

During 37 years of service, he worked at Mumbai-Kalbadevi (CBB), Zonal Office, Kalyan-Murbad Road, Chennai-CBB, Service, Mint Street, Nallur, Nallan Pillai Petral, Chennai - Mylpore, LIC Hub and Kodambakkam.

7. Ms. r hemalatha, senior Manager, Bangalore –retail loan Centre, (Bangalore - south)

Ms. Hemalatha joined the Bank as Officer in JMG Scale I in April, 1980. She became Manager in MMG Scale II in December, 1991 and Senior Manager Scale III in October, 2001.

During 36 years of service, she worked at Chennai-Regional Office,

CBB, Kelly’s Corner, Indiranagar, Vembadithalam, Salem-Shevapet, Mumbai – Fort, Chennai - George Town, Ashoknagar, Ussoor, Tambaram Sanatorium, Mint Street and Personal Banking.

8. Mr. h rajbhooshan, Deputy General Manager, Financial Management Division, Head Office

Sri Rajbhooshan joined the Bank as Officer in Scale I in April, 1980. He was promoted as Manager in MMG Scale II in December, 1987 and as Senior Manager in Scale III in August, 1994. He became Chief Manager in SMG Scale IV in June, 2000 and Assistant General Manager in Scale V in May, 2004. He was elevated as Deputy General Manager in TEG Scale VI in July, 2012.

During 36 years of service, he worked at Palakkad, Head Office - Business Planning & Dev. Department, Kushala Nagar, Regional Office-Northern Region, Ghaziabad, Vallabh Vidya Nagar, Head Office - Board Secretariat, Mumbai-IIBD, Pune-Retail Loan Centre and Zonal Office Kolkata.

9. Mr. G parameshwarappa, assistant General Manager, Zonal Office Chennai

Sri Parameshwarappa joined the Bank as AFO in Scale I in November, 1980. He was promoted as Manager in MMG Scale II in December, 1991 and Senior Manager in Scale III in July, 1998. He

became Chief Manager in SMG Scale IV in June, 2005 and Assistant General Manager, Scale V in June, 2011.

During 36 years of service, he worked at Yagati, Shivani, Hassan-Regional Office, Hubli- New Cotton Market, Belawadi, Haliyal, Bagalkot, Sikanderpur, New Delhi-CAPS, Belgaum-Tilakawadi, Dharwad, Bangalore-Rajajinagar and Circle Audit Office-Chennai.

10. Mr. Narayan Dutta, Manager, Zonal Office-Kolkata

Sri Dutta joined the Bank as a Clerk in August, 1980. He was promoted to JMG Scale I in November, 1998 and he became Manager in MMG Scale II in October, 2006.

During 36 years of service, he worked at Kolkata-Canning Street,

Regional Office, CAPS, Jamshedpur-Godown Area, Kolkata-Service, Salt Lake City, Dhar and Kolkata-Burtolla.

Mr. Dutta was a member of the 19th Executive Committee representing Kolkata Zone as its Zonal secretary from 2013 – 2016.

11. Mr. M Venkatesh pai, Manager, Bangalore-City (Bangalore - south)

Sri Pai, joined the Bank as a Clerk in October, 1980. He became a Special Assistant in July, 1999; he was promoted to JMG Scale I in March, 2002 and he became Manager in MMG Scale II in May, 2016.

During 36 years of service, he worked at Tumkur, Baikampady, Mangalore-Bunder, Rama Bhavan Complex, Kadri, Hubli Coen Road, Kothur (Nalkeri), Chikmagalur, Bangalore-White Field and Cantonment.

12. Mr. u Deepak, assistant Manager, Dodda-belavangala (Bangalore - north)

Sri Deepak joined the Bank as a Clerk in October, 1980. He became a Special Assistant in June, 1999. He was promoted as an Officer in JMG Scale I in September, 2012.

During 36 years of service, he worked at Mapuca, Ponda, Bangalore- Nrupathunga Road, M. G. Road, Malleswaram, Yelahanka, Peenya and Vidyaranyapura.

Barriers are those things we see when we take our eyes off the goal. Stay focused.


13. Mr. M s ramu, assistant Manager, Bangalore-Koramangala (Bangalore - south)

Sri Ramu joined the Bank in June, 1981 as a typist cum clerk. He became a Special Assistant in September, 2000. He became Assistant Manager in JMG Scale I in September, 2012.

During 35 years of service, he worked at Hassan, Bangalore-Basavanagudi, Service, Srinagar, Sakleshpur and Bangalore-Shivajinagar.

14. Mr. h Muniswamy, senior Manager, rama-nagar, (Bangalore north)

Sri Muniswamy joined the Bank as a Clerk in November, 1981. He was promoted to JMG Scale I in February, 1994. He became Manager in MMG Scale II in July, 2004. He was elevated as Senior Manager in Scale III in August, 2012.

During 35 years of service, he worked at Bettageri, Mandya, Kakkabbe, Yagati, Chickmagalur-L. B. C, New Delhi-Rohini, Madikeri, Valnoor, Mangala and Kotturu.

15. Mr. Gurudevaiah u, Chief Manager, printing & Stationery Division, Head Office

Sri Gurudevaiah joined the Bank as a Clerk in November, 1981. He was promoted to Officer cadre in JMG Scale I in February, 1996. He became Manager in MMG Scale II in November, 2005. He was elevated as Senior Manager in Scale III in September,

2010 and as Chief Manager in SMG Scale IV in September, 2014.

During 35 years of service, he worked at Hadadi, Davangere-P. B. Road, Thyavanige, Hubli - Regional Office, New Delhi - Friends Colony, Harihar, Mumbai-Wadala, Bangalore-S. C. Road, Head Office - B.E & S S Division and Credit Monitoring Division.

16. Mr. ramesh sachdev, Manager, Chandigarh (Chandigarh Zone)

Sri Sachdev joined the Bank as a Clerk in January, 1982. He became a Special Assistant in February, 1995. He was promoted to Officer cadre in JMG Scale I in May, 2008 and he became Manager in MMG Scale II in July, 2014.

During 34 years of service, he worked at Chandigarh, Mini CAPS, Taraori, Panchkula, Sector-9, Chandigarh-Manimajra and Ambala.

17. Mr. B surendra ram pai, assistant Manager, Kundapura (udupi Zone)

Sri Pai Joined the Bank as a clerk in September,1982. He was promoted to JMG Scale I in May, 1991.

During 34 years of service, he worked at Haliyal, Sagar, Mumbai-L J Road, Shivaji Park, Hubli - Aravindanagar, Pilerne, Socorro, Bhatkal, Vaderahobali and Hosangady.

18. Mr. Karanam Murali Mohan Babu, assistant Manager, secunderabad - alwal (hyderabad Zone)

Sri Babu joined the Bank in November, 1983 as a Typist cum Clerk. He was promoted to Officer cadre, JMG Scale I in November 1997.

During 33 years of service, he worked at Ookal Haveli, Hyderabad - Hyderguda, Regional Office, Zonal Office, Retail Loan Centre, Mehdipatnam, Service and Halia.

19. Mr. Bhure Maruti shankar, assistant Manager, aurangabad (pune Zone)

Sri Shankar joined the Bank as a Clerk in February, 1985. He was promoted to Officer cadre in JMG Scale I in April, 2010.

During 31 years of service, he worked at Aurangabad, Jalagon and Kolhar.

20. Mr. Kalachar prakash, Manager (ssI Engineering), Bangalore-peenya, (Bangalore south)

Sri Prakash joined the Bank as SSI Officer in JMG Scale I in August, 1985. He was promoted to MMG Scale II October, 1998.

During 31 years of service, he worked at Head Office - Advances Department, Commercial Credit Department, Hassan-Regional Office, Bangalore - Regional Office, Chandigarh - Zonal Office, Belgaum - Zonal Office, Bangalore - South Zonal Office, Bangalore-CCPC, Goa-CCPC, Bangalore - SME Loan Centre and White Field.

“Perform all works carefully, guided by compassion.” - The Bhagavad Gita


21. Mr. shashidhar Chandrasekhar Tatti, assistant General Manager, Mumbai-arMB (Greater Mumbai Zone)

Sri Tatti joined the Bank as Law Officer in JMG Scale I in July, 1986. He was promoted as Manager in MMG Scale II in December, 1994 and as Senior Manager in Scale III in December, 2004. He became Chief Manager in SMG Scale IV in November, 2010 and Assistant General Manager, Scale V in June, 2014.

During 30 years of service, he worked at Head Office - Legal Department, Hubli-Regional Office, Belgaum – Zonal Office, Bangalore – South Zonal Office, Hyderabad – Zonal Office, Mysore – Zonal Office, Head Office - PAD (IRW) and Head Office - Legal Services Division.

22. Mr. Manjaiah K, assistant Manager, Kandali, (Mysore Zone)

Sri Manjaiah joined the Bank as a Peon in February, 1983. He was promoted as Clerk in July,1988. He became Officer in JMG Scale I in April, 2010.

During 33 years of service, he worked at Hassan, Banavase, Madabalu, Hassan - Regional Office, Mysore - Zonal Office, Hasan – Main, Currency Chest and Bukkambhudi.

23. Mr. M sambaiah, assistant Manager, Vijayawada - Currency Chest (Zonal Office Vijayawada)

Sri Sambaiah joined the Bank as a Peon in January, 1986. He was promoted as Clerk in April, 1995. He became Officer in JMG Scale I in September,2012.

During 30 years of service, he worked at Hyderabad - Service, Siddiamber Bazar, Ookal Haveli, Warangal, Hanamkonda and Vijayawada-Currency Chest.

24. Mr. rajpal singh, assistant Manager, rewari (Chandigarh Zone)

Sri Singh joined the Bank as a Clerk in October, 1997 and he became Officer in JMG Scale I in April, 2011.

During 19 years of service, he worked at Ambala, Panipat, Rewari and Kosli.

B. VOlunTarY rETIrEMEnTs

The following members retired from the Bank voluntarily under Regulation 29 of Pension Regulations during May, 2016:

1. Ms. samita suresh salvi, assistant Manager, nerul (Thane Zone)

Smt. Samita joined the Bank as a Typist cum Clerk in April, 1986. She was promoted as Officer in JMG Scale I in April, 2011.

During 30 years of service, she worked at Mumbai – Fort, Thurbe Vashi, Nerul, and Thane.

2. Mr. nadir shah K u, Chief Manager, new Delhi – punjabi Bag ( Delhi – north)

Sri Shah joined the Bank as a Clerk in February, 1981. He was promoted as Officer in JMG Scale I in December, 1996. He became Manager in MMG Scale II in December, 2004 and Senior Manager in Scale III in August, 2012. He was promoted as Chief Manager in SMG Scale IV in June, 2015.

During 35 years of service, he worked at Quilon, Ernakulam – Ravipuram, Kochi – Regional Office, Mumbai – Regional Office, Bandra (W), Vile Parle, Mukkilapeedika, Chellanam, Pune – CBB, Tirur, Malappuram, Angamaly and Trissur.

3. Mr. K s sathyesha, senior Manager (agri), hassan (Mysore Zone)

Sri Sathyesha joined the Bank as AFO (Scale I) in May, 1983. He was promoted as Manager in MMG Scale II in December, 1994 and as Senior Manager in Scale III in June, 2004.

During 33 years of service, he worked at K Hoskote, Head Office – ARDS, Haranahalli, Kandali, Hebbalu, Sakleshpur, Madikeri – LBC, Cheekanahalli, Gurgaon – Maruti Kunj, Somwarpet, Mysore – Zonal Office, Retail Loan Centre, Hassan, Mysore – CCPC and Chikmagalur COBSETI.

CBOO thanks all these members for their support and cooperation and wishes them a healthy, happy and contended retired life.

“The wise unify their consciousness and abandon attachment to the fruits of action.” - The Bhagavad Gita

To The Editor Officers’ VoiceCBOO, 106 Lobo Prabhu CourtLHH Road, Mangalore.

Dear Sir,

I am thankful to you for your special column in the Officers’ Voice of June 2016 edition on the eve of my retirement from the services of the Bank. I am greatly honoured by this.

Sri T.R.Bhat and Sri D.N.Prakash had recognized and identified me for the Organisation work and later guided me along with the other Central Office bearers of the Organisation in discharging my duties in the organisational work. Because of the guidance of all of them, I could discharge my duties and I am thankful to the Central Office bearers and also the office staff of the Organisation at Mangalore, especially Sri. Mahesh. I will cherish all these moments in my entire life.

Sri Keshav Rao (now retired) who was working in Regional Office, Udupi, the then Regional Secretary of Udupi Zone first brought me to this movement and handed over the baton to me. The hard work done by Sri P.P. Suvarna and Sri Satish Shetty as Defence Representatives for the disciplinary case against me and Sri B. Chikkanna will not be forgotten. I am always thankful to both of them.

CBOO has a great future in the officers’ movement and I appeal to the younger generation to involve more actively in the Organisation activities and bring glory to CBOO.

Mangalore -K. Kamalakar nayak10.06.2016



1. Common pay- in slip for Cash, Transfer and Clearing

(O & M Division, HO Circular No. 301/2016 dated 18/05/2016)

A new common Pay – in- Slip for depositing cash, cheques, fund transfer, NEFT, RTGS, IMPS has been introduced for the use of customers to carry out the transactions.

2. rupay Cards – Extension of personal accident Cover of rs. 100000-00 upto 31/03/2017

(E Business & Delivery Channels Division, H O Circular No.309/2016 dated 21/05/2016)

Insurance cover of Rs.1.00 lakh for Accident Insurance, Death and Permanent Disablement under RuPay Cards has been extended till 31/03/2017. Other details are furnished in the Circular.

3. Filing/ satisfaction of security Interest in respect of Movables and Intangibles

(Credit Division, HO Circular No. 317/2016 dated 24/05/2016)

Detailed guidelines are furnished in respect of charge creation with the Central Registry (CERSAI), Additional types of security interests to be registered, Effective Date, Fee Structure, Schedule of Charges and Satisfaction of Charges are furnished in the Circular.

4. Opening of Current accounts in the name of the Entities Enjoying Credit Facilities with the Banking system

(Credit Division, H O Circular No. 318/2016 dated 24/05/2016)

Branches shall desist from opening Current Accounts of entities enjoying credit facilities (Fund/Non-fund) from the Banking system. Other details are also furnished in the Circular.

5. Insurance Cover to Credit Cards – Claim procedure

(Credit Card Division, HO Circular No. 319/2016 dated 25/05/2016)

Details on Personal Accident Insurance Coverage,

Purchase Protection (Credit Shield) to Corp Bank International Credit Cards (Signature and Platinum) and claim procedures are furnished in the Circular.

6. Introduction of “Corp surya rashmi” [ CsurM] (RLD, HO Circular No. 324/2016 dated 26/05/2016)

A new Scheme for financing Solar Energy System / Plants introduced. Salient features and other details are furnished in the Circular.

7. Income Tax (TDs) (FMD, HO Circular No. 328/2016 dated 27/05/2016)

Comprehensive aspects of TDS Management with latest amendments, TDS on interest on deposits and other relevant payments attracting TDS and compliance with TRACES portal of ITD are furnished.

8. popularisation of hand-held pOs Machines(E-Business & Delivery Channels Division, HO Circular No.334/2016 dated 31/05/2016)

Details on rationalization of service charges for POS Terminals with effect from 01/01/2016 are furnished in the Circular.

9. new staff housing loan scheme (nshl) - Clarification

(HRM & PAD, HO Circular No.339/2016 dated 01/06/2016)

Clarification furnished vide the Circular regarding the Branch from which an employee can take the loan.

10. EDpMs – additional Modules for Caution listing

(Treasury & Investment Department, HO Circular No. 342/2016 dated 02/06/2016)

Additional modules for caution listing of exporters, reporting of advance remittances and migration of old XOS data etc. effective from 15/06/2016 are furnished in the circular.

11. Opening accounts with Mobile number(CASA Division, HO Circular No. 347/2016 dated 06/06/2016)

Branches shall capture mobile numbers invariably in party master while opening account. Similarly, the mobile numbers shall be updated.

CirCular rOuNd up

What we think or what we know or what we believe is, in the end, of little consequence. The only consequence is what we do. —John Ruskin


12. Framework for revitalising Distressed assets in the Economy

(Credit Division, HO Circular No. 348/2016 dated 06/06/2016)

Contact details of the members of the Independent Evaluation Committee along with some important guidelines are reiterated.

13. preservation of CCTV recordings at Currency Chests

( Operations & Services Division, HO Circular No. 349/2016 dated 06/06/2016)

As per the directions of Reserve Bank of India, Currency Chests shall preserve the backup of CCTV recordings covering the entire activity of inward remittance till the next inspection of the Chests conducted by RBI.

14. Janatha Deposit Collectors (JDCs) – Implementation of award

(HRM & PAD Circular No. 352/2016 dated 08/06/2016)

The Bank’s Board has approved the implementation of the Award dated 07/10/2013 passed by the Central Government Industrial Tribunal, Delhi. Details are furnished in the Circular.

15. Voluntary Exit in atal pension Yojana (apY) before 60 years of age

(GBD, HO Circular No. 355/2016 dated 10/06/2016)

If a subscriber chooses to voluntarily exit Atal Pension Yojana (APY) before attaining the age of 60 years, he/she shall be refunded the contributions made by him/her to APY along with the net accrued income earned on his/her contribution after deducting Government co-contribution, account maintenance and investment managementcharges. Relevant guidelines are furnished in the Circular.

16. Circular on service Tax(FMD Circular No. 356/2016 dated 10/06/2016)

Comprehensive Circular on Service Tax matters, Payment of Service Tax, Collection, CENVAT Credit Claims, Reverse Charge Mechanism and Provisions in CBS are furnished. This Circular supersedes earlier Circular issued in 2015.

17. need for Timely Obtention of acknowledgement of Debt (aOD)

(CRMD, HO Circular No. 358/2016 dated 13/06/2016)

Branches shall ensure that AODs are obtained for all borrowal accounts where AODs are due. Relevant entries are to be made in system immediately on obtention of AOD. Staff Lapses Report has to be submitted to the respective Zonal Office immediately on the expiry of due date of AOD.

18. Priority Sector Lending Certificates(Priority Sector Lending Division, HO Circular No. 364/2016 dated 15/06/2016)

Guidelines issued by Reserve Bank of India on Priority Sector Lending Certificates (PSLCs) furnished in the Circular.

19. Chief Liaison Officer for OBC Employees of the Bank

(HRM & PAD Circular No. 369/2016 dated 15/06/2016)

Sri C K Gopal, General Manager, HO has been designated as the Chief Liaison Officer for OBC employees of the Bank.

When a person can no longer laugh at himself, it is time for others to laugh at him.—Thomas Szasz

MEMBERS REACTDear Sir,

I am associated with CBOO for last many years. I will retire on 31.07.2016 attaining superannuation. At this juncture, I will convey my sincere thanks to CBOO & all its members, for the guidance and support given to me in performing duties meticulously to our esteemed Organisation - the Corporation Bank. The members’ meetings at periodical intervals, the monthly journal OV, Manuals etc. arranged/published by CBOO are really a good source of knowledge for me. Thanks for the same. I wish the Organisation, CBOO a grand success. I will continue my association with CBOO as a retired employee.

- B. Ganesh Baliga, Asst. General Manager, Inspection & Audit Division, HO, Mangalore.


A Supreme Court bench headed by Chief Justice T S Thakur has directed the Finance Ministry to form a panel to look into the issue of bad loans saying, ‘something is not working’ in the present system and has to be fixed. This is a great opportunity to ensure that corporates do not take advantage of loopholes

and repeated restructuring of debt at the cost of the

exchequer. But a fool-proof set of recommendations

will require a committee comprising people with

knowledge, experience and the courage to speak

out, no matter whose interests are hurt.

The problem of bad loans is gigantic. The total

gross non-performing assets (NPAs) of the banking

system were reportedly Rs.4 lakh crore at the end

of December 2015. Further, the Indian Express

has reported that public sector banks (PSBs) have

written off a massive Rs.1.14 lakh crore in the

past three years alone. Also, as Prashant Bhushan

pointed out, there seem to be serious discrepancies

even in the reporting of NPA data. More importantly,

bankers’ attempts to blame the mammoth bad

loans on the absence of a bankruptcy law is also

disingenuous, given the flaws in the draft Bill; in

fact, unless corrected, that legislation too will go the

way of the SARFAESI Act which had been touted as

the solution to bad loans. While the case has been

adjourned to 19th July, the key issue today is to

have a committee that will put facts and solutions

on the table.

Separately, Mr. Bhushan has questioned the

Reserve Bank of India’s (RBI’s) continued denial

of information related to defaulters, even after

the SC judgement of 16 December 2015 (Transfer

Cases (C) No. 91-101 of 2015). He has argued for

disclosure of information and for framing a set of

issues that probably need to be decided to end the

ever-growing bad loans of large corporate houses.

While there is a hue and cry in the media each

time the Government writes off loans to farmers,

most people are unaware that, over the decades,

the Finance Ministry has been providing a few

- Sucheta Dalal

thousand crores to banks every few years to help

them maintain capital adequacy. According to one

estimate, PSBs need equity capital injection of

Rs. 2.4 lakh crore by 2018 to meet the Basel-III

norms; this is not going to be raised through a

sale of equity to the public, unless their financial

performance improves dramatically.

Although some argue that this does not amount

to a backdoor bailout of banks, it is hard to see

it any other way when the infusion happens every

few years and banks are lobbying and jostling to

get these funds, even as their profits and share

prices decline and bad loans keep rising. Probably

with this in mind, Prashant Bhushan has framed

several important issues to be considered by the

Supreme Court (Writ Petition Civil No. 573 of 2003)

on the bad loan issue. These include:

• Need for safeguards to ensure that loans are

not restructured without good reasons or

restructured on fair terms;

• Mechanism to ensure that banks obtain

adequate security for loans to corporates;

• Mechanism to ensure prompt action by banks

to recover loans;

• Audit instrument to prevent siphoning of

assets of debtor companies through under/over

invoicing or through sister entities;

• Need to ensure that mortgaged assets are not

sold off to Asset Reconstruction Companies

(ARCs) at arbitrary prices and the further sale of

those assets by ARCs;

• Clear definition of ‘willful defaulters’ and making

them ineligible for further loans from PSBs, etc.

However, one crucial issue is missing from this list.

It is the massive ‘technical write-offs’ by PSBs which

were dubbed the “biggest scandal of the century” by

Dr KC Chakrabarty (ex-deputy governor of RBI

Wisdom is a fountain of life to him who has it. – Bible


and ex-chairman of Bank of Baroda and Punjab

National Bank), in response to a query by Indian

Express on the bad loan issue. This is especially

important since some bankers have denied that

these write-offs are a scam and insist that the

“write-offs are done as a prudent measure and in

accordance with the regulatory guidelines laid down

and therefore, cannot qualify as a scam.” But it is a

fact that bankers like ‘technical write–offs’ because

they remove bad loans from their books and also

give them a tax advantage. In the past two decades,

banks have written off several lakh crores of rupees

as technical write-offs. The Indian Express reported

that Rs.1,14,000 crore has been written off in the

past three years alone.

We had an opportunity to catch up with

Dr. Chakrabarty recently and asked him to explain

the genesis of what he calls a big scam. His

response is startling. He says that there is no policy

for ‘technical write-offs’; no justification proposal

is required to be put up; there is no formula to

decide extent of write-off and nobody knows what

happens after the write-off, even though the loans

are backed by assets.

Dr Chakrabarty says, “If a company has borrowed

Rs.20,000 crore and has assets of only Rs.8,000

crore, then a bank should be allowed to write off

only Rs12,000 crore that is not backed by assets.

But, instead, the entire amount outstanding

on the books and due is written off.” Banks do

such overstatement of provisions to get false

tax deduction. The practice has not developed

overnight or in the past decade. Dr. Chakrabarty

tells us that ‘technical write-offs’ are a legacy of

economic liberalisation and started in 1993 when

banks were asked to implement prudential norms

on income recognition, asset classification and

provisioning. PSBs as a group reported a loss after

making provisions for accumulated loans over the

years in accordance with the new norms.

RBI has issued a detailed circular on the issue. It

says, “Technical or prudential write-off is the amount

of non-performing loans which are outstanding in

the books of the branches, but have been written off

(fully or partially) at the Head Office level. Amount of

technical write-off should be certified by statutory

auditors.” It has several precautions and guidelines

for write-offs, but everything finally hinges on one

sentence: “Banks should either make full provision

as per the guidelines or write off such advances and

claim such tax benefits as are applicable, by evolving

appropriate methodology in consultation with their

auditors/tax consultants. Recoveries made in such

accounts should be offered for tax purposes as per

rules.” Mysteriously, RBI advised the banks that, “in

consultation with your chartered accountant you

can create an appropriate procedure for technically

writing off the advances.”

Dr Chakrabarty, a senior banker, should know

the major implication of that sentence. He says,

“Anybody who knows the financial system in

this country can explain why and how this has

happened,” and has been going on for 23 years.

Didn’t a series of RBI governors since 1993 notice

what was happening and question it? He says, most

governors did not get involved in the nitty-gritty of

implementation of broad policy decisions.

According to Dr Chakrabarty, “A whopping

Rs. 3.5 lakh crore has been written off for industry

in the past 15 years through technical write-offs,

but nobody talks about it. And remember, this

is not a presumptive loss; it is a real loss. The

presumptive loss would be four times this amount

if you include the interest that would have accrued

on the loans and would be added to the liability.”

It is important to note that Dr Chakrabarty had

spoken about the danger of ‘technical write-offs’

at an annual bankers’ conference in 2013, when

he was RBI deputy governor. He also warned that

“restructuring of loans with retrospective effect

has killed credit quality in banks.” But nobody

listened. Any committee set up by the Supreme

Court will need to fix the policy on technical write-

off first. There is no point in tightening the rules,

unless this gaping loophole is fixed.

- Money Life, 09/05/2016

When the rare chance comes, seize it to do the rare deed. - Thiruvalluvar

Officers’ Voice, July 2016 31Officers’ Voice, July 2016 31

BE CarEFul WITh YOur WOrDsThere was a young boy with a very bad temper. The boy’s father wanted to teach him a lesson, so he gave him a bag of nails and told him that every time he lost his temper he must hammer a nail into their wooden fence.

On the first day of this lesson, the little boy had driven 37 nails into the fence. He was really mad. Over, the course of the next few weeks, the little boy began to control his temper, so the number of nails that were hammered into the fence dramatically decreased. It wasn’t long before the little boy discovered it was easier to hold his temper than to drive those nails into the fence.

Then, the day finally came when the little boy didn’t lose his temper even once, and he became so proud of himself, he couldn’t wait to tell his father. Pleased, his father suggested that he now pull out one nail for each day that he could hold his temper. Several weeks went by and the day finally came when the young boy was able to tell his father that all the nails were gone.

Very gently, the father took his son by the hand and led him to the fence. You have done very well my son,” he smiled, “but look at the holes in the fence. The fence will never be the same.” The boy listened carefully as his father continued to speak. “When you say things in anger, they leave permanent scars just like these. And no matter how many times you say you’re sorry, the wounds will still be there.

Be Careful with YOur WOrDs.

- An internet download

Daycare at Cos: a step in the right Direction, say Experts

The Women and Child Development Ministry’s recommendation that every company hiring women should also provide a daycare facility has drawn mixed reactions from India Inc. On Monday, ET reported that the WCD ministry which is headed by Maneka Gandhi, has written to the Corporate Affairs Ministry to advise and build consensus with all companies and corporate entities to offer creche facilities in view of the rising number of women joining the workforce across sectors.

Some HR experts have given this recommendation a nod of approval, saying a legal mandate to have onsite daycare is a compelling measure. “Providing daycare facilities for working mothers at their workplace is a step in the right direction, as often women professionals are compelled to take a break in their career due to motherhood and post-maternity childcare,” said Manjusha Nair, Head-Diversity and Inclusion, SAP.

Since the launch of the childcare facility SAPlings in its Bengaluru office, the company has reduced attrition on account of maternity to 4% in 2015 from 40% in 2010, Nair said. Saba Adil, Chief People Officer at Aegon Life Insurance, said it’s “an encouraging move that allows for organisations to proliferate equal opportunity at the workplace”. “In most families, both the husband and wife work, and it has become imperative for companies to have a safe and comfortable place where employees can leave their children to be cared for,” Adil said.

Sameer Khanna, Head of HR at Ericsson, said companies need to step up. “In a situation where the industry is looking at strengthening the female representation at the workplace, and looking to create an enabling environment for women at the workplace, having onsite daycare facilities will be a positive step forward,” he said. For the last five years, the company has been extending financial support to young mothers using creche facilities.

However, not everyone is thrilled. Some said a one-size-fits-all approach may not work. “Making it mandatory for companies to have onsite facilities is neither logical nor effective. Some firms may not have a very large number of women employees, and some may have space constraints,” said Sasha Sanyal, Senior VP, Strategy and Transformation, Diversity and Inclusion leader, Genpact.

“We follow a hybrid model — a combination of onsite and external creche facilities, depending on the office location. We have about 16,000 women employees, of which a small section has children aged between six months and four years, the usual

age range for an onsite facility. But not all women employees need daycare,” Sanyal said.

“Making onsite daycare a legal or compliance issue is easy to recommend, but much harder to practically put in place. Offices need to have the required space and space comes at a premium,” said SV Nathan, Chief Talent Officer, Deloitte India. Given the proliferation of women at the workplace, it will be difficult for organisations to provide onsite daycare, he said.

- The Economic Times, 24/05/2016

s K roy resigns as lIC Chairman

Mr. S K Roy has unexpectedly resigned as Chairman of Life Insurance Corporation of India, two years before his term ends, according to the people with the knowledge of the matter. A senior Finance Ministry official said Roy had made similar requests in the past. “He wanted to go because of the personal reasons,” he said. Roy had wanted to quit before this year’s Budget as well, the person said. His resignation will be sent to the Appointments Committee of the Cabinet.

- The Economic Times, 23/06/2016

misCellaNy


He is an ex football player and a coach...He has been recruited as a consultant to take care the transfers...!!!

Transferred to the palce of your choice...?Then the list must be a fake one...!!!

Other than a transfer... you can ask me anything...!!!

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409 vol 35 - 1 july, 2016 · 2016-08-18 · officers’ voice, july 2016 1 editor ekanath baliga...

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