officers’ voice, september 2017 1 - cboo...officers’ voice, september 2017 1 editor ekanath...

Officers’ Voice, September 2017 1

EditorEkanath Baliga

Asso. EditorG. Raghuraman

Satish Shetty

MembersH.S. Vishwanath

Advisor T.R. Bhat

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

EditorEkanath Baliga

Asso. EditorSatish Shetty

MembersH.S. Vishwanath

K.B. PrasadY. Sudhindra

Printed by:M. Rajesh Dange

Codeword Process & PrintersFalnir, Mangalore - 575 001

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

Founder Editor : Sri T.R. Bhat

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

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

e-mail: [email protected] Visit us @ our website:www.cboo.org Phone: CBOO Central Office : 2422712, 2422501 CBOO CENTRE : 2493 698 * * *

A senior Branch Head with more than three decades’ service intends to hang his boots after reporting to another Branch. The reasons are touching; 400 AODs in a year, a lot of irregularities in existing documents, intolerable work pressure at the Branch; demanding customers pressurising disbursement of fresh agricultural loans. Out of two officers (other than BM), one has been transferred due to “SURPLUS” as identified through the latest manpower assessment! “Why to suffer another (remaining) 40 months?”

What made him think so?

For last few years, the Bank has been facing umpteen problems – stagnated business, decreasing credit, increasing NPAs, Net Loss for a year and in between all these, statutory strangulation in the form of AQR and NPA resolution. While the last is an external factor, the first three are purely internal. What is the cause of this downslide in the Bank? Whether Bank is affected by a ‘Withdrawal Syndrome’ among its manpower resources – “Let others do; I won’t”? Right from a few (only) top grade executives to the lowest level employees, this attitude finds manifestation. An uneasy indifference and resigned inactiveness have been haunting around.

• One young Branch Head in Scale I, almost defeatist in expression pleads, “I do not know how to run a Branch. They have forced me as a

Branch Head. What can I do?”

• One young Senior Manager claims, “I only concentrate on deposits. I don’t want to touch advances. I don’t know it too - properly.”

• One Retail Hub takes an average of 20 days for disposing (not to be mistaken as sanctioning) a retail loan.

• One Zonal Head claimed among his trusted lieutenants, “I am left with another 18 months. Let me retire peacefully (implied – without any charge sheets at the fag end of career)."

• One customer banking with us for more than 2 decades switched over to other bank because, Head Office did not entertain his request for enhancement despite satisfactory track record and requisite eligibility. Another similar, left Corp Bank due to inflexible stance of Sanctioning Authority on rate of interest.

• To cap it all is the migration process commenced 12 months’ back which has dented the image of Bank, attracted negative publicity to the Bank, driven several and valued customers out silently and demotivated the workforce, as never before.

These are only samples - a few out of instances, galore. The best decision, a few have taken is not to take a decision! Or expecting another functionary (up or down the line) to take decisions. Our Bank was

423 Vol 36 - 3 September, 2017

Officers’ Voice, September 2017 2Officers’ Voice, September 2017 2

OV

Page No.CBOO News ................................................... 3CBROA News .................................................. 4AIBOC News ................................................... 6Banking Round Up ........................................ 13Letters to the Editor ...................................... 19Retirements .................................................... 21Article: Why do they trade in Bitcoins .......... 25Class Room ................................................... 26Miscellany ..................................................... 27Circular Round Up ........................................ 31Health Watch ................................................. 35In Lighter Vein ............................................... 36

C O N T E N T S

known for faster decisions and quick disposals attracting a lot of good and valued clientele. Why that phenomenon is absent today?

There is an urgent need for the top management to address the issue on a war footing.

• Leadership needs to motivate the foot soldiers and front captains more than what’s prevalent presently. The top leader needs to interact, communicate, encourage, mingle and guide the sub-ordinates more. A pat on their back can create wonders – as the old timers still remember one of the illustrious leaders of the Bank even today – “as the man who breathed Corp Bank, talked Corp Bank, worked Corp Bank, walked Corp Bank, dreamt Corp Bank.” There shall be increased communication and interaction with customers and other stake holders to get the pulse of customer satisfaction (for improvement) or otherwise (for corrective action).

All aspects of the Bank need to be given equal importance than concentrating only on one or two. The immediate subordinates must be taken into confidence to initiate a new push. There is no dearth of talent – but harnessing.

Leadership expectations at Zonal level too cannot be undermined. Personal egos, self-righteous attitudes, scant respect to subordinates and lack of earnestness in approach have been harming several Zones. The Branch Heads are resigned to receive brickbats and adapted to profess silence (in action). A review followed by revamp, if felt necessary, must be initiated.

• Recently, the disciplinary decisions have been very punitive. There are a few among the employees going much beyond the need – the system has to take care of it, undoubtedly. But a few decisions in disc cases have unnerved the officials and forced them to withdraw, fearing reprisal of the disciplinary sword, in case of an error. Charge Sheets just prior to retirement have sent shivers in the spines of not only the charged officers, but even the rest. Further perturbing has been the vigilance machinery – treating cases under vigilance ambit, the shoddy roles of a few investigating officers (introducing themselves as from Investigating Department – as if they are from some law enforcing agencies, frightening the customers and staff, forcefully obtaining letters from the prospective witnesses).

While discipline in routine is a must, while it must act as a deterrent from wrong-doing, the blend must be such, it should not be a factor forcing withdrawal from performance. Compliances must not complicate business process. Genuine business decisions need to be stood by and inadvertent mistakes taken into the stead.

• Successive administrations (baring an exception) have kept the Bank staff-starved. This had been forcing the officers and Branch Heads to work unduly long during week days and come to workplaces on Sundays and holidays (of course, a few want their subordinates to come on Sundays and holidays invariably - just to exhibit that they work more – such exceptions apart). Today, either an officer – any Scale – does not want to be a Branch Head or if thrust, will never risk business expansion as they are unable to serve even the existing clientele properly.

We cannot manage refusing to accept the reality. Additional manpower for the Bank is an undeniable and urgent necessity, lest, existing business and the workforce would collapse.

These measures, we feel can inject a fresh life into Corp Bank. CBOO has always been committed to Bank’s progress and growth. ‘Withdrawal Syndrome’ needs to be addressed and arrested sooner than late. We pledge our support in this course.


CBOO News

BRANCH VISITS

BELGAUM

1. K B Prasada, Joint Geneeral Secretary, N S Krishnaraj, Circle Secretary, Chandrakant Kamble, Chandrashekhar Pol, Area Secretaries and Mahant Patil, Activist visited Sankeshwar, Nipani, Adi, Kadakalat, Navalihal, Athani, Gokak, Yadwad, Mugalihal, Kadabi, Murgod, Markumbi and Bailahongal.

2. S Ramachandrappa, Deputy General Secretary, Nagaraj Deshnur and Raghavendra Nayak, Deputy Zonal Secretaries, T Rajshekhar and Rajeshkumar, Actvists visited Basavakalyan, Mahagaon Cross, Bidar, Manik Nagar, Kerebosga, Gulbarga – Main, Ram Mandir, Shah Bazar, Vidyanagar, Bhagyanagar and Jewargi.

3. Mahadev Mangsulkar, Zonal Chairman, Vinod Bidari and Sanjeev Kulkarni, Area Secretaries, Ashish Salunke and Manoj Chinchewadi, Activists visited Mudhol, Jamkhandi, Bijapur – Main, Court Road, Sindagi, Nidagundi, Muddebihal and Ilkal.

4. Vinod Gaikwad, Zonal Secretary, Shahid Hungund, Area Secretary, Jagadish Ajjanavar and Suvendu Panda, Activists visited Lokapur, Bilagi, Girisagar, Bagalkot – Main, SNMC, Navnagar, Lingasugur, Manavi, Sindhanoor, Raichur – Main and Gunj Branches.

Following issues were observed during the Branch visits:

a. Acute shortage of manpower

b. Undue pressure on officers on account of Govt. Schemes especially PMFBY

c. Absence of AFOs’ support to Branches with potential for agricultural advances

d. Pendency in sanction of TA bills at ZO for more than 3-5 months

e. Absence of toilet facility at Nandgaon

f. Link problems at Darur, Adi, Lokapur

g. Shortage of Clerks at Gokak, Mugalihal, Adi, Nippani, Sankeshwar, Mahagaon, Bidar and Lokapur

h. Shortage of Officers at Athani, Kadaklat, Sankeshwar, Raichur, Bagalkot – Main, Girisagar, Bilgi

i. Second Officer required at Alagawadi (54 cr.)

j. Absence of Sub-staff and PTS in several Branches.

- Vinod Gaikwad, Zonal Secretary

ZONAL COMMITTEE MEETING

AHMEDABAD

The Zonal Committee meeting of Ahmedabad unit was held on 4th August in Ahmedabad. Circle Secretary, Anand Kumar Sahu was present. The meeting started with one minute silence prayer for the departed soul of former Circle Secretary Sri Rohit D Raval. Circle Secretary, Anand Kumar Sahu explained the developments at the recently held Executive Committee meeting at Mangalore.

Thereafter co option for vacant posts in the Zonal Committee – Zonal Chairman, Zonal Secretary and Deputy Zonal Secretary - was done. The office bearers of Ahmedabad Zonal unit after co-option are as follows:

Zonal Chairman : Gajanan Shukla LIC Hub

Zonal Secretary : Krishna Prasad CBB Ahmedabad

Deputy Zonal Secretaries : Gourav Kumar ZO, Ahmedabad Shashank Shekhar Nehru Nagar

Zonal Lady Secretary : Virali Natwani, ZO

Area Secretaries : Amit Sondarva, ZO Deepak Kumar, Kalol Pratik Joshi, CG Road Ashish Joshi, Marketing, ZO Manoj Kumar, Naroda Jignesh Sengal, Kuvara Ankita Arora, CAPS, Ahmedabad

Feel that you are great and you will become great. We all have the same glorious soul, let us believe in it. - Swamy Vivekananda

Leedhar Dhaker, Unjha Bhupendra Malav, Bechraji Ashok, Gandhinagar CPBB.

The Zonal Committee placed on record, the good work done by former Circle Secretary, Late Sri Rohit D Raval as also the outgoing Zonal Chairman, Sachin Dev.

Pratik Joshi, Area Secretary proposed vote of thanks.

- Krishna Prasad, Zonal Secretary

MEETINGS

VADODARA

A meeting of the members working in and around Vadodara was held on 17th August. S Ramachandrappa, Deputy General Secretary and Anand Kumar Sahu, Circle Secretary were present. More than 40 members attended the meeting called on a very short notice. Former Zonal Secretary, Sri Mahesh Parekh was also present in the meeting. Zonal Chairman, Amar Santosh presided over the meeting.

Prabod Sharma, Deputy Zonal Secretary welcomed the gathering. Addressing the members, S. Ramachandrappa, Deputy General Secretary briefed the members about the latest developments in the Bank and the industry. He gave a gist of discussions in the recently held 98th Joint Meeting with Management. He explained the background of the scheduled Strike on 22nd August, the issues raised by UFBU and requested all the members to whole-heartedly participate in the Strike. Members, in the open session, raised several queries:

a. Pending transfers in the Zone of officers who have completed 4-6 years and not transferred to places of their choice.

b. Posting Scale I officers with less than 3 years’ experience as Branch Managers.

c. Inordinate delay in sanction/processing of claims under Medical Insurance Scheme.

d. Problems faced by Finacle Branches – due to connectivity problems, clearing hassles and NPA identification etc.

Leaders on the dais replied these questions. Zonal Chairman, Amar Santosh proposed a vote of thanks.

- Sanjeev Kumar, Zonal Secretary

FOUNDATION DAY

22nd Foundation Day of Corporation Bank Retired Officers’ Association (CBROA) was held on Thursday, the 27th July at CBOO Centre, Mangalore. Members gathered in large numbers at the CBOO Center to celebrate. The programme


CBrOa News

commenced with invocation by Sri Manjunath M Kini.

U.N. Chandramohan, General Secretary extended a brief and warm welcome to the dignitaries on the dais, the Super Senior members- to be felicitated on the day, office bearers of the Association, members and their spouses, well wishers and media persons.

This was followed by address by the Chief Guest, Sri Gopal Murali Bhagat, Executive Director. He

thanked CBROA for the opportunity provided to its members in meeting and greeting their old friends of the Bank through this forum. He appreciated the vision of retired officers in forming such an organisation 22 years' back and thereby helping retired officers and their families. He said, although the entire banking industry is facing severe challenges since past 4 to 5 years, Corporation Bank is one among the few PSB banks, which have earned profits for the last fiscal. He said the Bank is indebted to retired officers for their invaluable contributions in the past. Mr. Bhagat appealed to CBROA members to remain healthy, stay attuned with family and friends and always be in touch with each other to be happy. He also requested members to stay connected with the Bank. He assured that the Bank would positively look at any issue of retired officers and would take care of their needs wherever possible.

Ekanath Baliga, President, CBOO then addressed the gathering and took them through the major challenges like merger and privatisation of banks proposed by the present Government, wage revision, pension revision sought and other issues. He said the proposed merger of a few banks is a prelude to privatization of banks and the Government has not clearly spelt out the advantages of such moves. He asserted there will be no advantage if banks are merged. Instead of creating four or five big banks, the Government should think of one National Bank, by merging all nationalized banks, so that all banks would be on the same footing and there will not be any discrimination or step motherly attitude towards employees of target banks. He appealed to the CBROA members to actively participate in the demonstrations during strike/s proposed by bank unions, so as to gain better results in forthcoming wage revision exercise. He requested them to

further strengthen the bonding between CBROA and CBOO. He also suggested that the Bank would gain immensely, by utilizing services of retired officers in Audit work and Training etc., besides marketing of its asset and liability products.


General Secretary of CBOO, Satish Shetty greeted all the members present and spoke about distinct culture of our Bank and camaraderie. He also reminded how mischievous were recent WhatsApp messages, spreading falsehood, showing the Bank in poor light. Public as well as a few retired officers of the Bank expressed fear of losing their monies deposited due to the false WhatsApp messages. He requested members to speak good words about the Bank and remove such misgivings quickly.

The dignitaries on the dais, then felicitated 4 Senior members viz., Sri K. Achuth Shenoy, Founder President of CBROA, Mr. T G Varadachary, Mr. U Gopalakrishna Nayak and Mr. Devu Shenoy, who have attained 80 years of age and were present at the function. Mr. K Achuth Shenoy and Mr. Devu Shenoy, then responded to the falicitations and shared their feelings. They thanked CBROA for this kind gesture.


aiBOC News

This was followed by the address by U Suresh Shenoy, President who thanked the members for gathering in large numbers. He dealt with key issues like membership development, implied recognition to CBROA by the Bank, issuance of circulars, Retiree’s Corner in Bank’s website, pending issues with the Bank and performance under Chaitanya Scheme etc. He exhorted members to stay united, enroll non-members into CBROA and work together to achieve wonderful results for retired officers. He also informed the members the decision to hold Triennial Conference of CBROA on Sunday, the 28th January, 2018 at Mangalore.

Kishore G Shanbhag, Deputy General Secretary, proposed vote of thanks. He also briefly informed the members to contribute generously towards meeting

UFBU SUBMISSIONS TO CHIEF LABOUR COMMISSIONER

To:

Chief Labour Commissioner(C),

Ministry of Labour, Govt. of India,

New Delhi

Sir,

Reg: Strike Notice dated 3-8-2017 by UFBU on IBARef: Your Office communication dt. 10-8-2017

In accordance with the provisions contained in sub-section (1) of Section 22 of the I.D. Act – 1947, we had given notice that members of the constituent unions of United Forum of Bank Unions (AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, INBOC, NOBW, NOBO) propose to go on strike on the 22nd August, 2017 on the following issues and demands:

1. Do not privatise Public Sector Banks

2. Stop plans of mergers and consolidation of Banks

3. Do not write off corporate Non-Performing Assets (NPAs)

4. Declare willful Default of Bank loans as criminal offence

5. Implement recommendations of Parliamentary Committee on recovery of NPAs

6. Ensure accountability of Top Management/Executives for bad loans and put in place stringent measures to recover bad loans

7. Withdraw proposed FRDI Bill

8. Abolish Banks Board Bureau

9. Do not pass on the burden of corporate NPAs on bank customers by hiking charges

10. Do not increase Service Charges in the name of GST

Every charitable act is a stepping stone towards heaven. - Henry W Beecher

expenses of forthcoming Triennial Conference and to Chaitanya Scheme liberally as also to identify eligible proposals for consideration by the EC.

The programme concluded with National Anthem. S. Devadas Pai, was the Master of Ceremony (MC).

U S.Shenoy,

President

K.G Shanbhag, DGS

- Vote of thanks

S. D. Pai - MC


11. Reimbursement of cost of demonetization and other Government Schemes to Banks by the Government

12. Settle issues of Employees and Officers connected with demonetisation scheme

13. Immediately fill up posts of Employee/Officer Director(s) in Bank(s)

14. Implement Compassionate Appointment Schemes in Banks as per Government guidelines

15. Removal of Gratuity Ceiling under Payment of Gratuity Act, 1972 & Total Exemption of Income Tax on Gratuity and Leave Encashment on retirement

16. Pension related issues, improvements in Pension Scheme similar to RBI/Central Government including for past retirees - Extension of erstwhile Pension Scheme in banks in lieu of NPS - Follow-up of Record Note dated 25.05.2015

17. Adequate Recruitment in all cadres.

While thanking you for your intervention and arranging this conciliation meeting, we wish to submit to you the following reasons and justifications of the issues and demands raised by us.

1. Do not privatise Public Sector Banks

As of now there are 20 Public Sector Banks in our country and together with the 52 Regional Rural Banks which are also in public sector, these Banks constitute nearly 80% of the banking business in our country. Thus Public Sector Banks are the main engines of economic growth and development.

In a developing country like India, we need resources for development. Know as we do about the constraints in finding resources for development, Banks have been playing a vital role in mobilizing the savings of the people and making them available for the developmental projects. Private Banks have their limited and profit making role and hence Public Sector Banks and public sector banking are inevitable for our country’s future growth and progress. When economic progress is the avowed objective of the Government, Public Sector Banks

have to be further strengthened to enable them to play this patriotic role. Hence Banks are not be privatized.

All of us know that nearly 80% of the deposits of the Banks are domestic savings of the poor and common masses and this precious social capital has to be preserved for utilisation for developmental role. Moreover, this savings needs to be protected against abuse and misuse and people’s money needs to be guaranteed. Given the bitter experience of so many private banks abusing and misusing depositors’ money leading to closure of banks, we need to be doubly careful and guarantee the safety of people’s money which is most possible in a public sector institution. Hence our Banks are not to be privatized.

Even under the path of development, the needs of sectors like agriculture, employment generation, poverty alleviation, women empowerment, rural development, health, education and infrastructure etc, are of priority importance and credit is to be available in big measure for these sectors. Important sectors like agriculture, poverty reduction programmes need to be given credit at cheaper rates necessitating cross-subsidisation. This is possible only in public sector institutions with social orientation unlike private banks which are solely profit oriented. Hence banks are not to be privatized.

But it is observed that there are various measures afoot towards diluting the ownership control of the Public Sector Banks leading to privatization of these banks.

On the one side Government is denying adequate capital to the Public Sector Banks to pressurize more private capital to be augmented. On the other hand, banking is so much liberalized to allow all types of private enterprises to do banking business and corner creamy banking business. In the absence of enough capital provision by the Government, PSBs will be either crippled or forced to be privatized for survival.

Hence Government should give up the present measures which would dilute Public Sector Banks and result in privatization of banks. Country needs

Character is formed in the stormy billows of the world. - Toquato Tasso


economic development for that we need vibrant and effective public sector banking institutions.

2. Stop plans of mergers and consolidation of Banks

Public Sector Banks have expanded in our country and hence banking is now by and large available to common people at more and more places and villages. But there is still a great scope and need to further expand to reach all people and places. Banking needs to be more inclusive and make banking services accessible to everyone. This is one of reasons for schemes like Jan Dhan Yojana. Even now large number of people are not able to access banking. Even by global comparison, banking density in India is one of the lowest indicating that banking needs to be expanded in India. But Government is now talking of mergers and consolidation of banks. According to all reports, mergers would result in closure of branches and reduction in banking accessibility. Mergers would reduce employment potential when our country needs more employment generation. Further, if Banks are made bigger by merger, there is no guarantee that big banks will be strong banks. In many countries big banks have tended to take big risks and have landed in bigger troubles. In India, our banks function with people’s money and we cannot afford to take such risks with people’s money. We need expansion and not consolidation. There is no evidence that big banks are more efficient, rather they are risky. Hence, Government should give up the present plans of merger of our Banks.

3. Do not write off corporate Non-Performing Assets(NPAs)

The only major problem faced by the Banks today is the alarming increase in bad loans. It is around Rs. 15 lac crores including the loans restructured by the banks. It is well-known that bulk of these NPAs are bad loans due from big borrowers and corporate houses. Earlier they were called bad and doubtful debts, then called as bad loans, till recently as Non Performing Assets and stressed assets but recently nomenclature as dues from non-coopertive borrowers. While some loans becoming bad can be expected and accepted in

banking business, today taking loans from banks and making it as NPA has become an exquisite art. Many huge NPAs are deliberately defaulted and hence are willful defaulters under the RBI norms. No serious efforts are being taken to recover loans given. What is being done is NPA reduction, NPA restructuring, NPA management, NPA resolution, NPA provisioning, NPA write off but no concrete measures are taken for NPA recovery. It is well-known that no interest is received on these bad loans.

Thus, on an average, Banks are deprived of an annual interest income/ revenue of about Rs. 1,50,000 crores. To that extent Banks’ profits are dampened and depressed. Adding oil to fire, from the income earned from other performing loans, huge amount is set off and provided for bad loans.

Rs. In crores

2013-14 2014-15 2015-16

Gross Operating Profit 127653 138721 137306

Provisions for bad 90633 100901 155713 loans, etc

Net profit/Loss 37019 37540 - 18417

From such provisions made from the earned profits, loans are finally written off.

Year Bad loans written off

2012-13 27,231 cr

2013-14 34,409 cr

2014-15 49,018 cr

2015-16 57,586 cr

2016-17 81,683 cr

In 5 years 249,927 cr

If the account-wise details of these write offs are brought out, it will be revealed that it is in favour of big corporate borrowers. All of them have capacity to repay and hence it is big drain on banks and national economy. Hence we demand that corporate NPAs should be recovered and not written off.

3. Declare willful Default of Bank loans as criminal offence

RBI has defined borrowers as willful defaulters if the loans taken by them are misused, diverted,

What you see and what you feel matter; who you are and what you will become is up to you. - S Chander


siphoned off, etc. There are number of loans which come under this definition. They are deliberate defaulters and hence we are demanding that the names of these willful defaulters be published publicly and such willful default be termed as criminal offence and suitable criminal action should be taken against them. RBI Act should be amended to provide for publication of the names of these defaulters.

5. Implement recommendations of Parliamentary Committee on recovery of NPAs

The Standing Committee of the Parliament on Finance has discussed the issue of increasing bad loans in the Banks on many occasion and 1st year they submitted a report to the Government suggesting ways and means to take action on the erring borrowers and to recover the bad loans. So far no action has been taken on this Report’s recommendations. Hence it is our demand that the recommendations of the Parliamentary Committee be accepted and implemented to ensure better recovery of bad loans.

5. Ensure accountability of Top Management/Executives for bad loans and put in place stringent measures to recover bad loans

Banking is handling people’s money. Hence there has to be proper accountability norms when we deal with people’s money. While there are rules and regulations on accountability for employees and officers at the lower level, when it comes to top management, there seems to be laxity to provide for strict rules of accountability. Especially, when huge powers are given to the top executives for sanctioning big loans and also to write off the loans, such provisions are very crucial.

6. Withdraw proposed FRDI Bill

Already there are many rules and legislations in place under the existing laws and Acts. The objective of this Bill is obviously to heavily empower the new authority with sweeping powers to dismantle and erase public sector financial institutions like banks and insurance companies and hence it is apparently draconian. Hence we demand the withdrawal of this Bill.

7. Abolish Banks Board Bureau

Banks Board Bureau has been administratively created as a super boss to deal with the affairs of banks that are created under the statute of Parliament. Accountability of the decisions of this body are not transparent and it is observed that this body is seeking to override and bypass defined authorities even on policy matters of the Government. We feel that this body is superfluous and hence needs to be abolished.

8. Do not pass on the burden of corporate NPAs on bank customers by hiking charges

We have already stated that huge amount of earnings and income of the banks is set off against bad loans of big borrowers. Consequently, the profits and profitability of the banks are adversely impacted. Some of the Banks are compelled to show losses though earning very good operating profits. Instead of recovering the bad loans and preventing these losses, banks are increasing the charges to the common customers for all types of normal banking services. Even penal charges are made applicable. Now, interest rate on savings deposits of small customers are reduced while write off of crores of rupees of bad loans for corporate borrowers goes unabated. We demand that this passing on the burden of bad loans on the ordinary bank customers is unfair and hence to be stopped.

9. Do not increase Service Charges in the name of GST

With the introduction of GST, the additional tax is being levied on the customers. Either it should be borne by the Banks or the GST for banking services should be reduced.

10. Reimbursement of cost of demonetisation and other Government Schemes to Banks by the Government

Demonetisation scheme was announced by the Government in Nov.2016 to deal with black money, fake notes, etc. Banks were asked to handle the scheme for its implementation. The whole country witnessed the magnificent manner in which banks and banking staff handled such a tough situation. In the process, banks have incurred substantial

Men shall be taught to be practical, physically strong. A dozen such lions will conquer the world; not millions of sheep. – Swamy Vivekananda


amount as expenses and this has further impacted their profits. When banks are already facing challenges of reduction in profits, it is expected that Government should reimburse the banks the cost of implementing the demonetisation scheme.

11. Settle issues of Employees and Officers connected with demonetisation scheme

While employees and officers of banks were extracted with unprecedentedly heavy work in implementing the scheme by sitting very late hours on daily basis, including on holidays, it is most unfortunate that the compensation for such additional work legally entitled to them has not been paid so far. We demand the same to be paid immediately.

12. Immediately fill up posts of Employee/Officer Director(s) in Bank(s)

The Bank Nationalisation Act provides for appointment of Board of Directors of the Banks and the scheme therein provides for appointment of a Workman Employee Director and an Officer Employee Director. The scheme is in vogue since 1972 and for 43 years, it was being implemented. Ever since the present Government came to power, the appointment of the Employee and Officer Directors have been stopped. It is unilaterally, arbitrary, illegal, undemocratic and denial of workers’ participation as envisaged in the Scheme. We demand that these posts should be filled up immediately. When the Government believes and talks of good governance, this is expected of them to adhere to the scheme.

13. Implement Compassionate Appointment Schemes in Banks as per Government guidelines.

For more than 30 years, banks were extending jobs to the eligible family member of an employee or officer upon death while in service as a compassionate scheme. This scheme was unilaterally withdrawn by the banks. After prolonged agitation, struggles and strikes, the Government interfered and issued guidelines to implement the Government scheme in the Banks. Government scheme provides for employment to the eligible family member of the family of the deceased employee/officer. But some banks have unilaterally changed the scheme from jobs to money compensation. We demand that the

Government scheme as agreed by the Governmetn and IBA should be implemented in all the banks.

14. Removal of Gratuity Ceiling under Payment of Gratuity Act, 1972 & Total Exemption of Income Tax on Gratuity and Leave Encashment on retirement

At present there is a ceiling of Rs. 10 lakh for payment of Gratuity under the Gratuity Act. Since Gratuity amount ceiling has been increased for Government employees, RBI, etc, there is a need to revise and increase the ceiling under the Gratuity Act also. While there are reports that the Labour Ministry has agreed to this proposal, the amendment to the Act has not been done so far. Our demand is to expedite the amendment and implement it from 1-1-2016 as in the case of Government employees.

Also, there is ceiling for exemption of retirement benefits from payment of income tax. We demand that this ceiling needs to be removed to enable employees and officers to get the full benefit of the retirement benefits paid to them on the lines of other employees.

15. Pension related issues - Improvements in Pension Scheme similar to RBI/Central Government including for past retirees - Extension of erstwhile Pension Scheme in banks in lieu of NPS - Follow-up of Record Note dated 25.05.2015

Pension scheme was introduced in banks on the lines of Government/RBI scheme. While improvements have been made in their scheme, the same are being denied in the banks. Other demands have been raised by us for updation of pension, family pension, uniform DA for past retirees, etc. All these were discussed and a record note was signed on 25-05-2015. But two years are over and there is delay in discussing the issues further. We have also been demanding extension of DA linked pension scheme for employees recruited after 1-4-2010. All these issues are being ignored by the managements/IBA and we demand resolution of these demands expeditiously.

16. Adequate Recruitment in all cadres:

While Government, managements and everyone is talking about efficiency and better customer service

Self - conquest is the greatest of the victories - Plato


in the banks, adequate staff are not being provided. On the other hand, more and more Government schemes are being foisted and forced on the Banks. All these schemes require more manpower. Hence our demand for adequate recruitment in the banks.

We seek your intervention to conciliate these demands with a view to find amicable resolution of the issues and to restore industrial harmony in this vital, so that the strike can be averted.

Thanking you,

Yours faithfully, Sd/- (SANJEEV K BANDLISH) CONVENOR

Copy to: The Chairman, Indian Banks’ Association, Mumbai.

(AIBOC Letter No.2017/47 dated 21.08.2017)

The ChairmanIndian Banks` AssociationCaffe Parade, Mumbai

Dear Sir,

Participation in Strike by Officers in Scale IV & Above

It has been brought to our notice that Bank Managements have been asked by the Indian Banks' Association to issue Circular that Officers in Scale IV and above are not members of the Association and they should not participate in the strike.

The Constitution provides for association of people and nobody can be prevented from joining an association. Freedom of expression is also provided by the Constitution and strike is a form of expression of grievances.

This kind of instructions with an ulterior motive of divide and rule will lead to deterioration in the industrial relations and we request you to inform member banks to stop sending these type of circulars which are illegal.

The issues leading to the strike are long pending issues and we have been expressing to IBA and the Government including on 16th & 18th Negotiations.

The issues are in the interest of the Banking Industry and the Nation. Hence once again we appeal to you to see reason and take steps to resolve the issues, and advise Banks to stop giving illegal orders.

Yours faithfully Sd/- (D. T. Franco) GENERAL SECRETARY

Copy to: The Chief Executive, IBA

RANDOM REFLECTIONS Bad Loans and Bad Bank

The economic survey presented by Dr. Aravind Subramaniam, Chief Economic Advisor talked about creation of a Public Sector Asset Rehabilitation Agency (PARA). The new Deputy Governor of RBI who is a known votary of privatisation, who has taken leave from New York University for 3 years and joined RBI has stated in an interview that there should be two bad banks one in the Private Sector and one in the Public Sector. The latest report on NPA Published in Business Standard states that India’s bad Loan Problem is getting worse. The gross non-performing assets (NPAs) have reached Rs.6.2 Lakh Crores at the end of Q3 FY17, an increase of 56% over the previous years. The Asset Reconstruction Companies have not made any significant headway. The name Bad Bank itself is bad. It is nothing but a new avatar of ARCs.

Where are the Bad Loans? In a written reply to the Parliament, the Minister of State for Finance has stated that there were 661 NPA accounts about 100 crores amounting to Rs.3.7 lakh crores from Public sector Banks as on March 31, 2016. He also stated that NPA is high in infra structure, road, textiles, steel etc. In April 2016, RBI has stated that the top 10 Corporate NPAs amount to RS 56,000 Crores. Supreme Court has obtained list of defaulters owing more than 500 crores from RBI. But RBI has requested not to publish the list saying that it would dent the fiduciary relationship between RBI and the Banks and between the Banks and customers. A report of RBI as on March 2015 shows that 42.4% of the total advances of scheduled commercial banks are given to Private Corporates. The same report shows that there are 11000 accounts with a

The brain and muscles must develop simultaneously. Iron nerves with an intelligent brain – and the whole world is at your feet. – Swamy Vivekananda


credit limit above Rs.100 crores which constitutes 36.9% of the total credit limit. Credit limit above 25 crores to 31965 borrowers constitute 15.9%. Credit limit above 10 crores and below 25 crores to 41826 borrowers constitute 6.7% of the credit limit. That means 59.5% of the credits are above Rs.10 crores to just 84791 borrowers. On the contrary, only 0.5% is given to 20.7 million borrowers with credit limit less than Rs.20,000 and only 7.7% is less than Rs.2 lakhs limit given to8,12,67,021 borrowers. The NPA in this segment is meager. So let us understand for whom this bad bank is and for whom the right offs are helping. In a country with 127 crores population to catch less than 1 lakh borrowers we don’t have any power, because the Govt. not only has the will but also supports these defaulters. Bad Banks and ARCs elsewhere have helped the defaulters to sell of their loans at a cheaper rate and also buy back the assets at cheaper rate using another name. If the Govt. and RBI are really serious let them implement the recommendations of the Parliamentary standing committee submitted on February 24, 2016. The summary of the recommendations are:

1. Accountability of nominee Directors of RBI / Ministry on the Bank Boards as well as the CMDs/MDs of banks should also be annexed in the matter.

2. The decisions taken to sanction loans in violation of norms/guidelines should also be enquired into, responsibility fixed, adequate penal action taken.

3. Till such time a project is commissioned as per approved schedule, banks should not hasten to categorize such a project as NPA.

4. The extent and the quality of the equity that the promoters are capable of infusing into a project, therefore, also needs to be factored in by a lender bank.

5. The Government should make the necessary structural changes including revival of Development Financial Institutions (DFI) for long-term finance, especially for Infrastructure projects, which will go a long way in nipping the problem of NPAs in the bud.

6. Urge the Government for allowing Infrastructure Finance Companies (IFCs) to

purchase infrastructure projects turning into NPAs and keep them as Standard Assets, as this step would not only provide the much needed relief from stressed portfolio but also create an enabling environment for funding the infrastructure sector facing resource crunch. Besides, the IFCs should also be allowed to participate in equity. The Banks should have equity component built in the loan agreement itself. The Committee desire that the RBI should explore the possibility of developing a mechanism wherein there would be separate norms for NPA classification for infrastructure and non-infrastructure loans.

7. Each bank must focus on their respective top 30 stressed Accounts involving those categorized as “willful defaulters” and make their names public. Such a step will act as a deterrent for other promoters against willful defaults.

8. It will also enable banks to withstand pressure and interference from various quarters in dealing with the promoters for recoveries or sanctioning further loans. On the other hand, promoters will also be cautious before applying for loans. The Committee are of the view that when companies which have undergone restructuring process for their stressed loans, should be made public, there cannot be any justification for maintaining secrecy on this count.

9. RBI to monitor and follow it up with the banks and financial institutions on a regular basis till concrete outcomes materialise. Such a pro-active action by RBI will also enable it to review the guidelines, whenever required and plug loopholes, if any. As the Committee would not like the RBI to be a passive regulator, when major lapses occur in banks, it would be in the fitness of things if RBI exercises its regulatory powers vis- a-vis banks to take punitive action in cases of default and to enforce their guidelines. The Committee also believe that RBI as a regulator should have its regulatory role well delineated and thus not have its Director in the Board(s) of the Banks as part of their management, as conflict of interest may lead to avoidable laxity.

10. Forensic audit of such loans (restructured loans becoming bad debts) as well as willful defaults be immediately undertaken.

Don’t undermine your worth by comparing yourself with others. It is because, we are different; each of us is special. - S Chander


11. Appropriate system should be evolved and guidelines be prepared to take charge of assets and management of such failed CDR companies, while initiating action against such management. Further, disposal of the assets should be given priority. 12. Considering the non-efficacy of the CDR mechanism, the Committee believes that the RBI’s scheme for Strategic Debt Restructuring (SDR), which empowers banks to take control of defaulting entity and its assets by converting loan into equity, may armor the banks with an additional tool to cope with their NPAs. A change in management must be made mandatory in such cases involving willful default or sheer inability on the part of the promoters, where they have diverted funds and no redemption is possible. The Committee would however like to put a caveat here that the SDR mechanism should be used sparingly so that it does not become a smoke screen for large scale write-offs. It is necessary that even after SDR, the penal consequences for a willful defaulter should continue to operate.

12. Bulk of bad loans may be linked to firms that are struck with over-capacity and weak demand and are, therefore, simply unable to service their debt. The prolonged slowdown in the economy has eroded the market for distressed assets so much so that even Asset Reconstruction Companies (ARCs) have found it hard to off load them. The Committee would, however, still suggest that the RBI should consider such a dispensation that allows banks to absorb their write-off losses in a staggered manner, can help them restore their balance sheets to their normal health, while ridding the banking sector of its toxicity.

13. Time-bound disposal of cases thus becomes the need of the hour. A distinction now needs to be drawn between “willful defaulters” and other defaulters in the procedures prescribed under the relevant Acts and accordingly, “willfully defaulting” promoters must be dealt with sternly and promptly. Banks must be fully empowered to recover their dues promptly after necessary orders are passed by the Tribunal. The Committee would strongly recommend a thorough overhaul of the legal regime governing debt recovery, which may include stringent provisions to safeguard public money.

Furthermore, there is a need for authentic and large Credit data base including posting the Credit Status of “wilful defaulters” in public domain.

(For full report refer www.prsindia.org. or savepublicsector.com.)

Out of these recommendations, not even one has been implemented so far. Is the Govt. not even accountable to the Parliament? Whom are we trying to cheat talking about bad banks in a bad taste? Who will provide capital for bad banks and it is going to help whom? It is high time we wake up the Govt. and talk about good governance and not bad banks.

D T [email protected]

Never let your past interfere with the flow of present day life. Forget the past; believe in today. – S Chander

Banks’ Telecom Exposure at Rs. 97681 cr.: FM

Banks have a combined exposure of Rs. 97681 crore to the telecom sector, Finance Minister, Arun Jaitley said in the Rajya Sabha on Tuesday, citing SBI Chairman’s views that the financial stress in the sector had reached “highly unsustainable levels”. Jaitley said State Bank of India Chairman, Arundathi Bhattacharya had pointed to reasons of erosion of top-line and earnings of the service providers for the financial stress in the sector presently seeking relief from the Government and had recommended some solutions. Aligning deferred payment liabilities for spectrum for its life, rationalization of regulatory charges, quick resolution of litigation on definition of adjusted gross revenues, and easing regulation of merger and acquisition were among the solutions recommended by the Chairman of the country’s largest lender. “The Government has already constituted an inter-ministerial group (IMG) for the sector,” Jaitley said. The IMG is expected to give its final report in a month’s time, an official familiar with the matter said. At present, a portion of spectrum auction amount is taken as upfront payment by the Telecom Department and the rest after a two-year moratorium is paid out in 10 annual instalments. The Indian telecom industry is locked in an intense tariff war following the entry of Reliance Jio which has led to falling revenues and eroding profits. On Tuesday, Bharti Airtel, the country’s largest carrier, reported 75% year-on-year fall in its net profit for

BaNkiNg rOuNd up


Banks have no liability for loss of valuables in lockers: RBI

Do not expect any compensation for theft or burglary of valuables in safe deposit boxes of public sector banks as the locker hiring agreement absolves them of all liability. This bitter truth was disclosed in an RTI response by the Reserve Bank of India (RBI) and 19 PSU banks. Stung by the revelation, the lawyer who had sought information under the transparency law has how moved the Competition Commission of India (CCI) alleging “cartelization” and “anticompetitive practices” by the banks in respect of the locker service. He has informed the CCI that the RTI response from the RBI has said it has not issued any specific direction in this regard or prescribed any parameters to assess the loss suffered by a customer. Even under the RTI response, all public sectors banks have washed their hands of any responsibility.

- The Times of India, 26/07/2017

Aadhaar-bank account seeding soars but benefit transfer rate lags

Even as the Government is speeding up issue of Aadhaar number to all residents of India to achieve universal coverage and linking their bank accounts to this unique identification document, transfers of benefits using Aadhaar-linked payment gateway continues to lag. Less than 50 percent of cash benefits are usually transferred using Aadhaar Payment Bridge System (APBS) by Government departments administering various welfare and assistance schemes including scholarships, reports prepared for the Prime Minister’s Office available in public domain show.

- The Hindu Business Line,28/07/2017

Educational loans may get scarce this year on higher NPAs

It is admission season for college students, but there appears little or no support from banks. Rising bad loans, coupled with ambiguous recovery

mechanism, has elbowed some banks away from this segment. The results are showing with loan portfolio shrinking. Consequently, the educational loan market shrank with total loans down to Rs. 60432 crore in 2017 from Rs 61853 crore last year. Rising NPAs on educational loans and lack of a recovery mechanism has pushed banks to either stop disbursing educational loans or have made the loan disbursal selective. Lakshmi Vilas Bank said its NPA levels for educational loans were roughly 17% while its overall gross NPA was well-managed at 3.7%, “We still lend, but on a very selective basis,” said the CEO of the bank Parthasarathi Mukherjee. City Union Bank also has NPA level of 15-20% for education loans, despite its gross NPA maintained at 2.70%.

- The Times of India,28/07/2017

Banks may cut UPI charges for merchants

In a boost for the Unified Payments Interface (UPI), the Government will push for a drop in this account-to-account platform’s charges for merchants in the low value segment. The Government has also extended benefits under the referral scheme for the Bhim app to proprietary UPI apps of banks. Besides, banks have been allowed to use the Bhim brand for their own UPI apps to increase usage. “The Government has liberalised the Bhim referral programme to include all UPI referrals. We have also recommended that incentives to individuals for referrals be hiked from Rs. 10 to Rs. 25,” said A P Hota, MD & CEO, NPCI. The referral programme, announced in the Union Budget for 2017-18, provides incentives to anyone who can get another individual to activate a UPIID. Peer-to-peer (P2P) transfers under UPI are currently free but businesses are charged for receiving payments via this mobile-based system. SBI and HDFC Bank had proposed to introduce charges on peer-to-peer UPI transactions as well, with effect from June. HDFC Bank had announced a charge of Rs 3 and Rs 5 on transactions of up to Rs 25,000 and higher value remittances, respectively. However, the NPCI asked banks to refrain from imposing charges until an industry-level decision is taken.


Wisdom is a weapon which wards off all woes; it is a fort defying foes. – Thirukkural

the fiscal first quarter ended June at Rs. 367 crore while revenue fell 14% to Rs.21958 crore.

- The Economic Times,26/07/2017


Govt. can use ‘recapitalisation bonds’ to support PSBs

The Government can consider issuing recapitalization bonds if the requirement for fund infusion into State-owned banks rises more than the Rs. 10,000 crore budgeted for 2017-18 (April-March), a senior Finance Ministry official said on Friday. “Recapitalisation bonds are very much on the table; it was one of the options earlier mooted by the Government,” the official told Cogencis. Former Governor of the Reserve Bank of India YV Reddy recently batted for the bonds to recapitalise State-owned banks at a time when Basel-III requirements are on their way in and rise in bad loans have eroded capital ratios and profits. Such bonds were last issued in the 1990s to manage the banks’ capital requirements. With banks continuing to be flush with deposits post-demonetisation, these bonds can be subscribed to using this excess liquidity and their callable and long-term nature will enable them to be treated as capital under Basel norms. The advantage of employing financial engineering and issuing recapitalisation bonds to provide capital for State-owned banks is that it does not immediately burden the exchequer, and enables banks to meet capital requirements without diluting equity at the current low share prices.

The Government official said the other option for State-owned banks was to consider the qualified institutional placement route like State Bank of India recently did. With these options on the table, the Government sees no urgency in revising the budgeted allocation for 2017-18. But the official said that if needed, “additional capital for public sector banks is not off the table”.


Mukesh Kumar Jain is Oriental Bank’s new MD & CEO

The Centre has appointed Mukesh Kumar Jain as Managing Director and Chief Executive Officer of Oriental Bank of Commerce, a public sector bank. His appointment is for a period of three years. Prior to this appointment, Jain was an Executive Director at Punjab & Sind Bank, At OBC, Jain comes in the place of Animesh Chauhan, who has superannuated.


Banks may face Kodak-style obsolescence

Banks could face a Kodak moment where they approach obsolescence in five to 15 years at the hands of new financial-technology companies, according to former Barclays Plc Chief Executive Officer, Antony Jenkins. Traditional banks are already seeing the start of an Uber moment, where by the industry is being transformed by technology such as smart phones and contactless cards, Jenkins said in an interview with Bloomberg Television on Wednesday. “The Kodak moment is completely different-that’s where customers realize there’s a totally and different way of doing what they want to do and the incumbent becomes obsolete,” Jenkins said. “The Kodak moments are the ones that I think will come in that five to 15 year period,” he added. Eastman Kodak Co, the photography pioneer that sold the first consumer camera in the 19th century, struggled to adapt to an era where digitization usurped film and filed for bankruptcy in 2012. It emerged a year later focused on commercial printing as a much smaller company than it was in its heyday.

Britain’s biggest lenders are closing branches and increasing their investment in technology as customers increasingly do their banking online or on their phones while a wave of fintech startups have made their first inroads into the consumer market. “Banks may struggle to transfer themselves despite their spending, as they don’t have the right culture or mindset,” Jenkins said. Jenkins a long-time credit-card executive who was ousted from Barclays in 2015 as the firm moved to a strategy more focused on its investment bank, is the founder of 10x Future Technologies which aims to sell cloud-based computing systems to banks.


Now, personal loans from ICICI Bank via ATMs

ICICI Bank has launched a facility whereby its existing salaried customers can avail personal loans at ATMs. These customers can get pre-qualified personal loans in their savings account instantly. In a statement, India’s largest private sector bank by consolidated assets, said the facility offers a bouquet of features - swift application in simple steps, multiple eligible loan amount options up to

Delay is the best remedy for anger. - Seneca


Rs.15 lakh based on pre-checked CIBIL scores and instant transfer of the money to the customer’s account. The facility also incorporates an additional level of authentication to make the security of the offering robust. Through this offering, a customer can get personal loans of upto Rs. 15 lakh for a fixed tenure of 60 months. On completion of a transaction for balance enquiry or cash withdrawal, customers will be shown the option of availing the loan (at ICICI Bank ATM). Customers can avail this loan at any ICICI Bank ATM in four steps -- select the required pre-approved loan offer; multiple amounts may be shown depending on the customer’s eligibility; accept the auto populated interest rate, processing fee and Equated Monthly Installment amount; confirm on the terms and conditions displayed. Lastly, enter debit card PIN. The statement said money will get transferred to the customer’s account instantly on completion of this procedure. Customers can also avail personal loans through the bank’s website, its mobile banking app iMobile, as well as its branches.


CBI arrests 5 for defrauding PNB

The CBI has arrested three directors of a Ludhiana-based company and two bank officials for allegedly defrauding Punjab National Bank to the tune of Rs 74 crore. The case was registered against directors of R S Fasteners-Rajesh Kumar Maheshwari, Ajay Kumar Maheshwari, Sanjeev Kumar Maheshwari-the then Chief Manager DK Sethi and an another officer SK Sinha under the charges of criminal conspiracy, cheating, and forgery.


Swedish banks take to robots to woo customers

Aida is the perfect employee: always courteous, always learning and as she says, always at work, 24/7, 365 days a year. Aida of course, is not a person; but a virtual customer services representative that SEB AB, one of Sweden’s biggest banks, is rolling out. The goal is to give the actual humans more time to engage in more complex tasks. After blazing a trail in online and digital banking, Sweden’s financial industry is now emerging as a pioneer in the use of artificial intelligence. Besides Aida at

SEB, there’s Nova, which is a chatbot Nordea Bank AB is introducing at its life and pensions unit in Norway. Swedbank AB is adding to the skills of its virtual assistant, Nina. All three are designed to sound like women, based on research suggesting customer feel more comfortable with female voices. “There are some frequent, simple tasks that we need to deal with manually today, and in that effort, were looking into Artificial Intelligence (AI) to see how we can deploy it and Aida is one,” said Johan Torgeby, CEO of SEB. Chatbots have access to vast amounts of individual client data, meaning they can quickly handle straight forward customer requests. That in turn frees up human employees to deal with more complex services, like coming up with the best mortgage plan to suit a specific customer. “Basically all banks are closing branches,” said Mattias Fras, head of Robotics, Strategy and Innovation at Nordea. “This is a way to return to full services again.”

Nordea’s chatbot will eventually help customers who want investment advice, want to cancel lost credit cards or to open savings accounts. Swedish banks have already seen their customer satisfaction scores drop to a 20 year low after shutting branches and pushing people onto on line services. But AI might be part of the cure. According to a recent study by market researcher GfK, there are wide gaps between what consumers hope to receive from bank in terms of service and financial advice and what they actually get. AI applications such as chatbots hold the promise of filling in these service gaps, given the right data and programming, GfK said. Petra Stenqvist, a partner at Pond which looks into innovative business ideas, says it’s unlikely AI will ever be able to think like humans. “It will never be able to replace subjective assessments,” she said. “But it will be able to contribute to better decision making.”


NCLT green-lights insolvency proceedings against Essar Steel

The Ahmedabad bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition against Essar Steel India Ltd (ESIL) on Wednesday, paving the way for insolvency proceedings to commence against a big-ticket defaulter under

The fruit that fraud and greed obtain, Shall end in endless grief and pain. - Thirukkural


the newly enacted Insolvency and Bankruptcy Code (IBC), 2016. The decision comes as a major setback for ESIL, led by the Ruias, which has had a total debt of Rs 45,000 crore on its books for a couple of years now. For lenders, non-performing (NPAs) under ESIL assets crossed Rs 32,000 crore in 2016-17 and were at over Rs 31,000 crore in 2015-16. The NCLT bench, chaired by Justice Bikki Raveendra Babu, was hearing a petition by lenders, who were represented by State Bank of India and global lender Standard Chartered Bank. The two banks had independently filed applications to initiate insolvency proceedings against ESIL at the NCLT’s Ahmedabad bench, to recover the NPAs.


Fin Min asks PSBs to work together to hive off consortium loans gone bad

If public sector banks have collectively given a company a project loan, which then turns sour, they should not break ranks and sell the loan piecemeal to asset reconstruction companies (ARCs), according to the Finance Ministry. Instead, they should sell the ‘consortium loan’ lock stock and barrel to an ARC or a consortium of ARCs.

The Ministry believes that collectively, public sector banks (PSBs) can realize better pricing on the sale of project loan given in consortium rather than by going so singly. A project loan is given by lenders to finance new projects as well as for expansion, diversification and modernization of existing ones in infrastructure and non infrastructure sectors. At a meeting of banks, Ministry mandarins suggested that when it comes to consortium loans that have turned bad, PSB officials, under the aegis of the joint lenders’ forum (JLF), should act together to take a call on sale of such loans to ARCs. Further, even if one bank in a consortium wants to sell its portion of the loan, the JLF needs to be convened.

- The Hindu business Line,27/07/2017

Banks lost Rs. 180 cr to burglaries

Nearly Rs. 180 crore was lost in 2632 cases of robbery, theft, dacoity and burglaries at India’s 51 banks in the last three financial years, 2014-2015 to 2016-2017, Parliament was informed on Tuesday. In a written reply to the Rajya Sabha, Minister

of State for Finance Santosh Kumar Gangwar said State Bank of India lost Rs. 30 crore in 344 such cases in the last three financial years. Bank of Baroda lost Rs. 13 crore in 188 cases. Private sector players ICICI Bank, Axis Bank and HDFC Bank lost Rs. 17.25 crore, Rs. 37.34 crore and Rs. 10.21 crore, respectively, in such incidents.


Make account number portable, RBI tells banks

Reserve Bank of India Deputy Governor S S Mundra has urged banks to work towards making account numbers portable. The move, Mundra said, will increase competition and improve customer services. “A scenario was thus emerging wherein customers would be able to silently walk out from one institution to another, in case of any dissatisfaction with the services,” Mundra said at the annual conference of banking Ombudsmen in Mumbai, according to a statement released by the central bank on Monday.

- The Hindu Business Line, 01/08/2017

PNB introduces biometric attendance register

Punjab National Bank (PNB) has introduced biometric attendance in the place of the existing system of signing attendance in the attendance register. The biometric attendance system has already been integrated with the in-house human resources management system, a circular from the bank’s HR department said.

Immediate effect

The new system of marking attendance will be implemented in branches/offices with immediate effect, the circular issued on August 3 (Thursday last) said. The biometric attendance device will capture the attendance along with the time of marking the attendance. Rules with regard to marking of attendance after the prescribed time and leaving the office before the prescribed time have already been made available in separate circulars. Guidelines regarding marking of attendance in the context of introduction of the biometric system are as follows:

• Every employee shall, immediately on arrival as also while leaving the branch/office, mark his/her attendance device.

Earnestness is enthusiasm tempered by reason. - Blaise Pascal

• Manual attendance system will run parallel to August 31, to streamline the process. It is required of every employee to be punctual and mark attendance in time.

• In exceptional cases, but in no case more than three occasions in a month, an employee may be permitted a grace margin of up to 15 minutes, that is, within 15 minutes of the prescribe time. After the grace margin in a month is exhausted, the employee will be considered late and marked absent.

Reporting/exit timings will be uploaded in the HR system automatically, the circular added.


More Indians going online for banking: survey

More Indians are now using a mobile banking app or going online rather than just talking to a banking adviser on phone to address complex issues, a new survey said. The survey, Customer Experience in Banking’, by global tech company Avaya, which covered India, Britain, Australia and the UAE with 5000 respondents, showed that customers in India were more likely to use a mobile banking app than customers in the other three countries.

According to the findings 26 percent of India customers prefer to access services via bank websites. The same number prefer mobile apps to talking to a human agent compared to 19 percent in Australia, 21 percent in Britain and 24 percent in the UAE. The report added that 58 percent of India customers wanted to be alerted about a problematic or fraudulent transaction and 49 percent want to be alerted when their credit card is up for renewal. This is the highest in all four countries.


Thousands transferred at SBI, many branches closed, yet no protest

India’s largest lender, State Bank of India (SBI), has rationalised 716 offices (594 branches and 122 administrative offices) and several thousands of employees have been transferred beginning this fiscal, but, strangely, there have been no major protests, top officials said. Several hundreds of offices would be closed and thousands of staff would be moved in the coming months, officials added. Strangely one does not hear any major complaints of vindictiveness or arbitrariness from the normally vociferous banking sector employees. This is at a time when leading software companies

are arbitrarily firing people at day’s notice. Even the unions that strongly opposed the merger of six banks with SBI and were apprehensive about treatment of incoming staff by the SBI management agree that there is not much of vindictive or arbitrary movement of people till now, making one wonder as to how and why this happened. Around 70,000 employees (around 40,000 Class III and IV and around 30,000 officers) were added to SBI’s rolls following the merger of SBBJ (State Bank of Bikaner and Jaipur), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala) and SBH (State Bank of Hyderabad) and Bharatiya Mahila Bank.”By and large, the staff redeployment in SBI has been smooth. However, there seems to be complaints of vindictive transfers in Kerala which the management must address satisfactorily,” C H Venkatachalam, General Secretary, All India Bank Employees’ Association (AIBEA), told IANS.

But how is it that SBI is managing the show without the flag of protest being raised by the usually vociferous unions? “The management did not deviate from the transfer policies that were signed between the management and the unions,” Sanjeev Kumar Bandlish, General Secretary, All India State Bank of India Staff Federation (AISBISF), told IANS.”There are set transfer policies for officers and the award staff. We have told the management not to transfer employees on a large scale,” D. Thomas Franco Rajendra Dev, President, All India State Bank Officers Federation (AIBOF), told IANS. Union leaders said the employees were consulted and posting preferences were sought prior to their transfer.”The employees were moved to other branches located in the close vicinity of their earlier offices. This reduced tension in the minds of incoming employees to a large extent,” Neeraj Vyas, Deputy Managing Director and Chief Operating Officer, told IANS. He said those who opted to take higher responsibility under the Career Progression Plan (CPP) were transferred to another location as per the existing policy.”The reservation about the merger was only in the incoming employees’ minds. Once the merger happened and the employees saw the systematic way the policies were followed, the mental block against the merger has melted,” Vyas said.”When the merger was proposed, integrating the officers of associate banks was not considered to be a problem. However, in the case of clerical cadres there was a crucial difference between SBI


and the associate banks,” Vyas added.

Vyas said that under the SBI’s CPP for clerical staff, those who accept higher responsibility are given additional powers and allowances.”But such schemes were not there in the associate banks and the major union there - the AIBEA - had opposed the scheme,” Vyas said. He said many employees of the erstwhile associate banks have now opted for the CPP. According to Vyas, there were no mass scale transfers in the associate banks prior to the introduction of Voluntary Retirement Scheme (VRS) before the merger. A total of 3,569 employees opted for VRS. “The VRS numbers were as per our initial expectations,” Vyas said. In the case of officers, they will be transferred on promotion or after completing three years at a location. On the staff redeployment process, Vyas said the bank planned a mix of employees - those who are originally from SBI and from associate banks - so that they get culturally integrated with SBI. According to SBI, the projected number of staff to be redeployed due to rationalisation of administrative offices and branches is around 10,616.The bank has said that nearly 30 per cent of the 8,616 staff to be redeployed due to branch rationalisation will be posted in sales functions.

Questioned about the complaints on transfer in Kerala, Vyas replied: “Only 25 employees of erstwhile State Bank of Travancore (SBT) have complained out of 4,300 employees to whom the Career Progression Plan was offered.”He said the unions in SBT had vociferously opposed the career progression scheme prior to the merger. According to Vyas, the acceptance of the career progression scheme amongst the erstwhile associate bank employees is around 80 per cent now, the same as in SBI. Queried about the criteria for closure of banks, Vyas said it is based on factors like profitability, viability, period of lease, footfalls and others.”We are not closing the branches of erstwhile associate banks. Even SBI branches will be closed if they do not fulfill the criteria. We move from rental premises to owned premises wherever possible,” Vyas added. According to Vyas, the total number of branches that would be rationalised will be around 1,400, of which 594 have been completed.”The remaining will happen over a period of time. Further we will open new branches wherever needed,” he added.

- Business Standard, 15/08/2017

MANPOWER

This is to place before you a suggestion to review the human resources at branches scientifically and plan for a branch level consolidation if necessary. To quote you an example, there is a new branch at ‘A’ which is located just less than 1 k m from ‘B’ - an old branch.

‘A’ branch has a sanctioned staff of a Branch Head, an Assistant Manager and 2 Clerks. On the other hand ‘B’ branch has a sanctioned staff of a Senior Manager, 2 Assistant Managers and 3 Clerks. Out of the 3 clerks sanctioned to ‘B’ branch 1 clerk is suffering from chronic heart ailment and he is on leave for quite a long time. ‘B’ branch has a business of Rs. 110 crore. ‘A’ branch with a business below Rs. 20 crore has almost the same staff strength as ’A’ branch except for the Senior Manager. Of course, the minimum staff strength required for any branch is a Branch Head, an Assistant Manager and 2 Clerks to enable smooth functioning of the branch.

Firstly, as ‘A’ branch is located just less than 1 km from ‘B’ branch where from can the new business come to ‘A’ branch if not from the existing ‘B’ branch? Also, there is another branch located at ‘C’ – a few KMs away which has a Branch Head, an Assistant Manager and 3 Clerks with a business of just over Rs.15 crore. The situation is quite gloomy not only for ‘B’ branch but also in many other branches with similar business as that of ‘B’ branch. The employees working at branches like ‘B’ are pushed beyond their limit and they are unable to go on leave even when they are genuinely ill and that is further deteriorating their health.

There may be many more branches all over India like those I have mentioned above, whose performance, staff strength and location need to be reviewed immediately. Present concept of ‘managing somehow’ and the indifferent attitude of the Management towards the sufferings of those cursed employees will definitely have a negative impact on the Bank in the long run, if not addressed to immediately on a war footing.

Hope you will do the needful immediately.

Yours faithfully, A Member


letters tO the editOr


STRIKE

Dear Sir,

As loyal members of CBOO/AIBOC, it is our duty to participate in all the agitation/trade union actions called by our leaders. Accordingly, I have participated in the Strike on 22/08/2017. But what perturbs me is the date of Strike decided by the AIBOC/UFBU. What was the significance of 22nd August? Was it a birth day of any renowned trade union leader or was it any date of trade union achievement anywhere in the country or world at large like ‘May Day’? Many of my colleagues and friends in other places too shared my views on this.

The Strike date fixed by UFBU will have no impact on the administrative or the Government machinery. On the contrary, they will be more happy for having saved one day’s wage payment and not made to feel the heat of the Strike in actual terms.

Was it not possible for UFBU/AIBOC to fix the Strike date as 14/08/2017 or 24/08/2017 or 28/08/2017? Was it really a token Strike so that neither the customers shall suffer, nor the Government/Management should feel bad about the Strike/bank unions? If our intention is not displease or discomfort anyone, we can also do it by not striking at all.

I request you to convey to the AIBOC leadership to choose the Strike dates which will, in practical terms, have recognizable impact. The date should invariably be clubbed with holidays so that the Management/IBA/Government will feel the heat of the Strike and impact of Strike will truly be felt.

- A member

THE DAILY TALE

Sir, Finacle story from a Branch Manager.

Our bank has taken up the ambitious project of migrating to new software - Finacle. But, irony is nobody at the top level is knowing about what’s happening at ground level. You know all of a sudden your branch will be identified for migration to new software. On transition your bad luck starts counting.

First, there will not be connectivity from the day one. Then you have to fumble with lot of menus

which never open at a single go. Then the customer receiving the statement daily in legacy will start complaining regarding non-receipt of statement. Then you try to convince him with a sorry face and try to print the statement which never happens. Then you raise a ticket which will not be attended.

Then a customer will come stating that his monthly interest on FD is not credited to SB a/c or short credited or credited as per the will and wish of the Bank. Then raise a ticket for which you will receive a blunt reply from Help Desk that some batches would fail in day end which had to be taken care by the branch. How the branch will come to know whether there is batch fail! God only knows.

Third, a customer will call bombarding you as his online balance and account balance does not tally and you have to confirm the right balance. You will be taken to task for no fault of yours.

Then another customer will call you asking what about his FDs in Corp Classic Account which suddenly vanished. Then it is your responsibility to convince him. Then you will get call from another customer that his EMI for loan account is not credited. i.e., SI is not being executed.

Then you will receive a list from ZO of the accounts which will slip to NPA due to non-updation of security details while migrating and the Branch Head would be responsible if the accounts slips to NPA due to technical reasons. Branch has to update the security details without connectivity (which is a routine affair). For security substitution there are 8 menus / processes to be done involving entry and authorization which will rarely take place smoothly.

In this competitive world with higher ROI on our loan products, if you are successful in sanctioning a loan, for disbursement, you have to plan at least 3 days in advance as you are not sure about connectivity. By that time the customer will avail loan from other bank.

Nobody knows the fact that many institutions have stopped/ been denying Corporation Bank cheques issued by our customers due frequent cheque return for technical reasons. It is a reputation risk faced in the market and other banks are encashing the same.

Laugh away troubles; there is no other way to conquer woes. - Thirukkural


But our management is sitting happily with collection of data on no. of halla bols, APY, health insurance, launching campaigns - SB Premiere League / Monsoon Mela etc. without knowing/supporting field level staff. Then come frequent review meeting and Branch Managers’ day out for canvassing new business - at a time when we are not able extend service to the existing customers.

In Finacle environment one person can do one

work at a time so that many branches are forced to stop business development, due to high profile manpower planning by the management.

Earlier, we were facing the problem once in a while and now it has become a routine and customers have started asking when our link will be up. Is this a step forward for planned merger? Pl wake up and support the field force before we collapse.

reitremeNts

A. The following members will be retiring from the service of the Bank on attaining the age of superannuation on 30th September, 2017.

1. Mr. Raghavendra Rao Chillarige, Deputy General Manager, Circle Office-Mumbai

Sri Rao joined the Bank as a Clerk in January, 1977. He was promoted to Officer Cadre in JMG Scale I in September, 1981. He was promoted as Manager in MMG Scale II in April, 1987 and as Senior Manager in 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, 2010. He was elevated as Deputy General Manager in TEG Scale VI in March, 2016.

During 40 years of service, he worked at Guntur, Vijayawada-Main, Mangalore-Bunder, Patibandla, Nagaram, Bheemavaram, Hindupur, Proddatur, Regional Office-Andhra I, Secunderabad-Sainikpuri, Kolkata-CAPS, Mumbai-CAPS, Hyderabad-Personal Banking Branch, Mumbai-Govt. Business, CAPS, Greater Mumbai-ZO Marketing & Ret. Sales, Secunderabad- Tarnaka and Jaipur - Zonal Office.

2. Mr. G Sreekara Pai, Assistant Manager, Zonal Office Kochi

Sri Pai joined the Bank as a Clerk in April, 1979. He was promoted to Officer Cadre in JMG Scale I in July, 1984.

During 38 years of service, he worked at Erode, Chellanam, Head Office - Human Resources Department, Ernakulam, Varapuzha, Ahmedabad-

Regional Office, Kochi - Regional Office, Kottayam, Vayalar, Ernakulam-Vyttila, Thiruvanantapuram - Zonal Office and Ezhupuna.

3. Mr. Uday Hattangadi, Senior Manager, Circle Audit Office-Bangalore

Sri Hattangadi joined the Bank as a Clerk in February, 1979. He was promoted to Officer Cadre in JMG Scale I in August, 1984. He became Manager in MMG Scale II in October, 1998 and Senior Manager in Scale III in December, 2007.

During 38 years of service, he worked at Rajkot (CBB), Bangalore-Regional Office, City, Tumkur, Shanthalli, Ahmedabad-Shahibaug Cross Road, Regional Office-Gujarat, Bangalore - Regional Office, Web Centre, Hubli - Zonal Office, Hassan - Zonal Office, Bangalore Core Centre and Inspection & Audit Division, HO.

4. Mr. Y Police Rao, Assistant General Manager, Coimbatore -Velandipalayam (Coimbatore Zone)

Sri Rao joined the Bank as a Clerk in March, 1980. He was promoted to Officer Cadre in JMG Scale I in October, 1985. He was promoted as Manager in MMG Scale II in July, 1996 and as Senior Manager in Scale III in October, 2001. He became Chief Manager in SMG Scale IV in August, 2008 and Assistant General Manager in Scale V in December, 2011.

During 37 years of service, he worked at Head Office, Bangalore-Yelahanka, Shivani, Nellore, Vizianagaram, New Delhi-Connaught Circus, Secunderbad - S. P. Road, Hyderabad - Regional Office, Neerkulla, Hyderabad-Corp Bank Homes Ltd., Rayadrug, Bellary, Hyderabad - ZO Marketing Hub, Vallabh Vidya Nagar, Kolkata-Canning Street, Bhubaneshwar and Delhi-Kamala Nagar.

Actions speak louder than words. - Proverb


5. Mr. H Shrinath Kamath, Deputy General Manager, Retail Lending Division, Head Office

Sri Kamath joined the Bank as Officer in JMG Scale I in April, 1980. He was promoted as Manager in MMG Scale II in December, 1991 and as Senior Manager in Scale III in August, 1994. He became Chief Manager in SMG Scale IV in June, 2005. He was promoted as Assistant General Manager in Scale V in June, 2010 and Deputy General Manager in TEG Scale VI in May, 2014.

During 37 years of service, he worked at Mumbai- CFED, Jaipur, Hunsaghatta, Ahmedabad-Navarangapur, Jamnagar, Gandhidham, Kolkata-Dharamtolla, Mumbai-Mandvi, International Banking Division, New Delhi - Zonal Office (North), Vasundhara Enclave, Ghaziabad-Ram Prastha, Mumbai-A. R. Street, Lucknow-Zonal Audit Office, Bhopal - Zonal Office, Mangalore-Zonal Marketing & Retail Sales Unit and Head Office - Inspection & Audit Division.

6. Mr. Suresh Kumar M, Senior Manager, Credit Division, Head Office

Sri Suresh joined the Bank as an Officer in Scale I in April, 1980. He was promoted as Manager in MMG Scale II in December, 1991 and as Senior Manager in Scale III in October, 2001.

During 37 years of service, he worked at Kochi, Head Office - Human Resources Department, Uliyargoli, Head Office - G M Secretariat, Credit Risk Management Division, Mumbai-Bandra, Udupi, Kurkal and Pune.

7. Mr. P Vasudeva Bhat, Assistant Manager, Mangalore - Shaktinagar (Mangalore Zone)

Sri Bhat joined the Bank in June, 1980 as a Typist Cum Clerk. He was promoted as Officer in JMG Scale I in May, 1986.

During 37 years of service, he worked at Mumbai- CFED, Nariman Point, Mangalore-Pandeshwar, Sankeshwar, Mumbai-Malad Orlem, Mangalore-Punja Arcade, Car Street, Gopady, Baikampady, Head Office - Customer Service Cell and Karkala.

8. Mr. N Nageshwara Rao, Senior Manager, Zonal Office, Hyderabad

Sri Rao joined the Bank as a Clerk in August, 1980. He was a promoted to Officer Cadre in JMG Scale I in October, 1985. He became Manager in MMG Scale II in May, 2001 and Senior Manager in Scale III in September, 2010.

During 37 years of service, he worked at New Delhi-Connaught Circus, Service, Hyderabad-Siddiamber Bazar, Head Office - Branches Inspection Department, Hyderabad-IAD Cell, New Delhi - Regional Office, Toopran, Hyderabad-Currency Chest, Krishna, Nizamabad and Chennai-Zonal Audit Office.

9. Mr. J U Ramesh, Manager, Nagpur-Godhani (Pune Zone)

Sri Ramesh joined the Bank as a Clerk in July, 1981. He was promoted as Officer in JMG Scale I in February, 2001. He became Manager in MMG Scale II in July, 2014.

During 36 years of service, he worked at Adoni, Hyderabad-Regional Office, Secunderabad-S. P. Road, Hyderabad-Badi Chowdi, Vizianagaram, Nagpur-Main, Sadar, Wardhmannagar and Chandrapur.

10. Mr. Venkateshiah I R, Assistant Manager, Hassan (Mysore Zone)

Sri Venkateshiah joined the Bank as a Clerk in March 1982. He became Special Assistant in March, 2002. He was promoted to Officer Cadre in JMG Scale I in September, 2013.

During 35 years of service, he worked at Cheekanahalli, Hassan-Regional Office, Kandali, Hassan, Haranahalli, Kittane and Hassan-K R Puram.

The test of courage is not to die; but to live. - C V Alfieri

11. Ms. Gayathri R, Assistant Manager, Mysore-Retail Loan Centre (Mysore Zone)

Ms. Gayathri joined the Bank as a Clerk in January, 1983. She was promoted as Officer in JMG Scale I in September, 2012.

During 34 years of service, she worked at Mangalore-Pandeshwar, Mysore-Vontikoppal, Main, Periapatna, Hunsur and Mysore-Saraswathipuram.

12. Mr. Pattedar Basappa Manjunath, Assistant General Manager, Information Technology Division, Head Office

Sri Manjunath joined the Bank as Officer in JMG Scale I in October, 1983. He was promoted as Manager in MMG Scale II in October, 1998. He became Senior Manager in Scale III in June, 2004 and Chief Manager in SMG Scale IV in August, 2008. He was elevated as Assistant General Manager in Scale V in March, 2013.

During 34 years of service, he worked at Hubli-Coen Road, Chickmagalur-RRB, Athani, Rajkot (CBB), Ahmedabad-Navarangapur, Zonal Office, Hubli - Zonal Office and Bangalore-Core Centre.

13. Mr. K Vijayaraghavan, Assistant General Manager, Circle Audit Office-Ahmedabad

Sri Vijayaraghavan joined the Bank as Officer in JMG Scale I in November, 1983. He was promoted as Manager in MMG Scale II in April, 1997 and as Senior Manager in Scale III in February, 2003. He became Chief Manager in SMG Scale IV in March, 2007 and Assistant General Manager in Scale V in November, 2012.

During 34 years of service, he worked at New Delhi-Regional Office, Chandni Chowk, Palayamkottai, Uliyargoli, Chennai-Whites Road (Mount Road), Regional Office, Head Office –Internal Loan Review Dept., Coimbatore, Kolkata-Canning Street, Chennai - Zonal Office, Teyanampet, Ahmedabad - Zonal Office, M. J. Library, CAPS, Retail Hub, Chennai-Mint Street, Bangalore-Basavangudi, J. C. Road, Chennai-SME Loan Centre and Circle Audit Office.

14. Mr. Babu Rao Dhamanekar, Assistant Mnanager, Yellur (Belgaum Zone)

Sri Dhamanekar joined the Bank as a Typist cum


Clerk in December, 1983. He was promoted to Officer Cadre in JMG Scale I in September, 2012.

During 34 years of service, he worked at Athani, Yellur, Belgaum-(Samadevigalli) KRS Road, Tilakawadi, Sankeshwar and Peeranwadi.

15. Mr. K Hariharan, Assistant Manager, Palakkad (Kochi Zone)

Sri Hariharan joined the Bank in February, 1984 as a Typist Cum Clerk. He was promoted to Officer Cadre in JMG Scale I in September, 2012.

During 28 years of service, he worked at Kottayam, Kozhikode, Palakkad, Kannambra, Palakkad- Kalpathy and Kodumbu.

16. Ms. R Priyalatha, Assistant Manager, Bangalore Mahadevapura (Bangalore North)

Ms. Priyalatha joined the Bank as a Clerk in September, 1985. She was promoted Officer Cadre JMG Scale I in September, 2014.

During 34 years of service, she worked at Head Office - Printing & Stationery Division, Bangalore-Rajajinagar, Shivajinagar, Cantonment, Zonal Office, Pai Layout, White Field and Frazer Town.

17. Mr. Menon Jose Falcao, Assistant Manager, Margoa (Goa Zone)

Sri Jose joined the Bank as a Clerk in September, 1998. He was a promoted to JMG Scale I in April, 2015.

During 19 years of service, he worked at Margao (Vasco-Da-Gama), St. Jose De Areal, Maina Curtorim and Murida Cuncolim.

B. VOLUNTARY RETIREMENT

The following members retired from the Bank voluntarily, under Regulation 29 of Pension Regulations during July, 2017:

1. Mr. Prakash K Subramanian, Manager, Mettupalayam (Coimbatore Zone)

Sri Prakash joined the Bank in August, 1981 as a Typist Cum Clerk. He was promoted as Officer in

JMG Scale I in August, 2003. He became Manager in MMG Scale II in August, 2012.

During 36 years of service, he worked at Mumbai-CFED, Coimbatore, Mumbai-Worli, Tirupur, Coimbatore - Zonal Office, Channapetta, Narsipuram, Coimbatore-Currency Chest, Service and Karatholuvu.

2. Ms. B Umadevi, Assistant Manager, Bangalore-Srinagar (Bangalore - South)

Ms. Umadevi joined the Bank as a Clerk in December, 1981. She was promoted as Officer in JMG Scale I in September, 2013.

During 36 years of service, she worked at Chikmagalur, Bangalore-City, S. C. Road, Kolkata-Brabourne Road, Rash Bihari Avenue, Mangalore - Ram Bhavan Complex, Pandeshwar, Bangalore-Kengeri Satellite Town, Chamarajpet and J. C. Road.

3. Ms. Shaila V Chopde, Assistant Manager, Ulhasnagar (Thane Zone)

Ms. Chopde joined the Bank as a Clerk in March, 1982 and became Special Assistant in April, 2003. She was promoted to Officer Cadre in JMG Scale I in September, 2007.

During 35 years of service, she worked at Thane, Mumbai-Mulund, Mandvi, Kalyan - Murbad Road, Mumbai - Fort, Dombivili (West) and Kalbadevi (CBB)

4. Mr. Kandukuri Mahender Reddy, Manager, Mahabubnagar (Hyderabad Zone)

Sri Reddy joined the Bank as Agricultural Field Officer in JMG Scale I in June, 1984. He was promoted as Manager in MMG Scale II in October, 1998.

During 33 years of service, he worked at Toopran, Warangal, Sankeshwar, Amidyala-Uravakonda, Chittoor, Penumur, Lucknow, Hyderabad-Siddiamber Bazar, Currency Chest, Neerkulla, Hyderabad - Zonal Office and Ashok Nagar.

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


MAJORITY UNION IN SBI GAINS MEMBERSHIP AFTER ASSOCIATE

BANKS’ MERGERThe merger of State Bank of India’s Associate Banks with SBI has resulted in sizeable membership gain for the majority union - All India State Bank of India Staff Federation (AISBISF), said a top union leader. The AISBISF may have gained but to what extent is something that cannot be exactly quantified, countered the top leader of All India Bank Employees’ Association (AIBEA). “Around 28,000 members of AIBEA in the erstwhile associate banks have joined our union post-merger. Prior to the merger, membership strength in SBI was around 170,000 and now we expect the membership number to touch 200,000,” Sanjeev Kumar Bandlish, General Secretary of AISBISF, told IANS over phone from Chandigarh. Bandlish is also the General Secretary of National Confederation of Bank Employees (NCBE).

The five Associate Banks that merged with SBI are: SBBJ (State Bank of Bikaner and Jaipur), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala) and SBH (State Bank of Hyderabad). According to Bandlish, nearly 40,000 award staff (class III and IV) came to SBI from the associate banks. The AIBEA had a lion’s share of membership in the Associate Banks. It also had its nominees on the bank’s board. However, AISBISF was the majority union in SBI. “Of the 40,000 staff who came to SBI post-merger, around 28,000 have joined our union. It is nothing new for the union to add members in large numbers nor does it pose any challenge. SBI recruits in large numbers and the new recruits join our union. As to the members of AIBEA who joined our union, they are educated and took their own decision. There will not be any clash of any ideology,” he said.

On the other hand, AIBEA’s General Secretary C.H. Venkatachalam termed Bandlish’s claims as exaggerated. “It is true that some AIBEA members in erstwhile Associate Banks have joined AISBISF after the merger with SBI. But the numbers are not alarming. Unless the check off system is implemented in SBI, we may not know how many of our members have joined the rival union or vice versa. Initially there was fear amongst AIBEA members that they might be subjected to vindictive transfers. But now the fear factor is not there. Many of our members who switched loyalties are coming back. AIBEA was the major union in the banking industry. Though it opposed mergers amongst Government banks, it should not be forgotten that the union would gain membership if mergers happen,” Venkatachalam said.

cont'd... on page 34


WHY DO THEY TRADE IN BITCOINS?

- Meera Siva & Nalinakanti V

Will you trust a currency not issued by any government or not backed by a central bank? Certainly not –that would be the most likely answer, you might think. But the fact is that there is growing interest in crypto currencies such as bitcoins that have no legal sanction. Without any regulatory approval, registration or authorization, virtual currencies have been gaining popularly in many countries, including India. This is in spite of the RBI warning that any user, holder, investor and trader dealing with virtual currencies would be doing so at their own risk.

Currency basics

Started in 2009, bitcoins are digital currencies created by a decentralized process called ‘mining.’ Transactions happen in the bitcoin network through a shared public ledger called blockchain. This ledger contains every transaction processed, so that the validity can be verified. Transactions can be done in smaller sub-units of a bitcoin, called satoshi–a million bits make a bitcoin.

Karthik lyer, a technologist, founder of advisory firm BlockchainMonk and India ambassador of P2P Foundation, says that bitcoins account for less than half of the $100-billion market for virtual currencies that includes over 150 crypto currencies. Currently, about 10 percent of the total bitcoin trades come from India. “The supply of bitcoins is limited -21 million only. It is a finite resource and as demand increases, its value tends to go up,” he explains. He says that people find bitcoins to be faster and cheaper to transact cross-border as there are no commission and clearing delays. He is one of the early investors, having bought bitcoins at $7 in 2011 out of research interest in Scandinavia. Prices are over $ 2800 currently.

User interest

The technology aspect was also what attracted Madhur Todi, an MBA, Finance, from the US and a Certified Financial Planner who manages over Rs 150 crore of assets in his firm Mera Money Advisors. “I started buying bitcoins in 2015, when it was at

Rs15000. I am very confident about the blockchain technology and the future of digital currency,” he says. Fundamentals aside, bitcoins and digital currencies have seen a spike in interest since May 2017. This may have been triggered by a change in Japanese law on April 1, 2017, which put in place standards for security and audits around virtual currencies. Prices shot up from around $1200 to $3000 in less than 4 months.

This rally has attracted investors such as Shivani, a Marketing Manager with a branding firm. “One of my friends told me about the foray of bitcoins in India and their rising price. I then read about it and it appeared to be one of the most unconventional investment methods,” she says. The verification process, including uploading of documents such as PAN card was fast and she started buying bitcoins. “I buy for Rs 500-which is about 0.003 of a bitcoin,” she adds. Shivani sees it as an investment akin to shares. “The current buy and sell prices are clearly written in the bitcoin exchange platform and there is no hassle, just what the millennials prefer,” she explains.

Himanshu Goswami, a sales and marketing professional in New Delhi, is also a new entrant. “We had a conversation about how the younger generation has multiple options to invest in, apart from property, gold etc,” he says. “I bought bitcoins when the price was nearly Rs 1.75 lakh per bitcoin. The price has come down but I am in it for the long haul,” he says. Many of them are also going beyond bitcoin and buying other currencies such as ethereum and ripple.

Many risks

Investors and regulators point to risks galore. The RBI, for instance, has expressed concern on potential financial, legal customer protection and security-related risks on virtual currencies.

One, its value is a matter of speculation. The currency has no underlying to which its value can be pegged. So increase in demand can lead to sharp rallies followed by equally steep declines.

He who conquers his wrath overcomes his greatest enemy. - Pubililius Syrus


For instance, between October 2013 and January 2014, bitcoin value increased from $130 to $985. The price then crashed to $121 by January 2015.

Two, there is no legal status as bitcoins are not authorized by the RBI. There have also been reports on the usage of these currencies for illicit and illegal activities-such as paying ransom.

Three, virtual currencies are in digital form, stored in digital/electronic media. They are, hence, prone to losses from hacking, loss of password, compromise of access credentials and malware attack. Karthik notes that the currencies are hashes and the risk of their being stolen is real. “Your local disk may be broken into; digital wallets may be stolen and even exchanges can be hacked,” he cautions.

Four, payments are on a peer-to-peer basis with no established framework for recourse to disputes or issues. “I think we might see people buying a sandwich or movie ticket with bitcoins; but it is not easy for the B2B industry to accept transactions in crypto currencies,” says Himanshu.

“If vendors do not start accepting bitcoins as a medium of exchange, investors/buyers will have no option but to trade or sell it back on an exchange,” says Madhur. He adds that there is no clarity on the taxation aspects. “What is the long-term/short-term holding for bitcoins? How much is the tax implication on trading or investing?” he wonders. All users advise that one take small bets in the initial stages. “Any person wanting to get into this should be willing to take the risk of losing it all if something drastic happens and bitcoins disappear, or get branded as illegal by the Government,” cautions Madhur.


Anti profiteering in GST

Even as business, big and small, burn the midnight oil getting ready for the GST, consumers also need to get used to the bevy of terms that form part of this tax regime. One term thrown around frequently these days is anti-profiteering.

What is it?

As the name suggest, these rules prevent entities from making excessive profits due to the GST. Since the GST alone with the input tax credit, is eventually expected to bring down prices, a National Anti profiteering Authority (NAA) is to be set up to ensure that the benefits that accrue to entities due to reduction in costs is passed on to the consumers. Entities that hike rate inordinately, citing GST as the reason, will be checked by this body. The Anti Profiteering Rules, 2017 lay down details about the section of the members of the NAA and the other committees that will assist the NAA in investigating the complaints, the procedure to be followed in investigations and the powers given to the authority.

Once the registered entity which has profiteered illegally, is identified, it can be asked to-one, reduce prices if it has hiked prices too much and two, if price reduction due to GST has not been passed on to customers, to return to the customer the sum equivalent to the price reduction along with 18 percent interest from the date the higher sum was collected. The authority can impose penalty on the profiteer or cancel its registration. The rules however do not lay down the formula based on which the extent of profiteering can be determined. This task has been left to the NAA. The Authority will be relevant only in the transition phase.

Why is it important?

Many countries that have adopted GST such as Singapore and Australia witnessed a spurt inflation after implementation. Retail inflation in Australia, for instance, spurted from 1.9 percent in the year before GST to 5.8 percent in the year when the tax was rolled out. Malaysia was able to avoid a similar

Class rOOm

That action is the best which procures the greatest happiness for the greatest numbers. – Francis Hutcheson

AIBOC EC WILL MEET IN NEW DELHIConsequent upon the Union Cabinet decision on 23rd August to evolve alternative mechanism to oversee PSU Banks' mergers, AIBOC has called an emergency meeting of the Executive Committee on 30th August at New Delhi to discuss and decide on the future course of action. UFBU will also be meeting at New Delhi on 31st. Further developments will be informed in due course.

- GS


surge in inflation by effectively implementing anti profiteering rules. A formula was laid down wherein the net profit margin in the period preceding GST was compared to the post-GST margins to see if inordinate gains had gone to the bottom-line. Gains were determined after taking in to account the supplier’s cost, costs incurred for furthering business, market conditions and other relevant issues.

The Centre is also thinking along similar lines. But it is way behind schedule in forming the rules. The Authority is yet to be formed, the committees have to be selected, they have to formulate the rules to determine profiteering and then listen to complaints. It appears that quite some time will pass before these rules are effectively used in the country.

Why should I Care?

If a super-market you frequent is selling you grocery at a higher price stating that it is due to GST, you can file a complaint to the anti-profiteering authority. Similarly if you are aware that the cost of your toothpaste has moved lower, but your grocery-wallah tries to pull a fast one on you by selling it to you at the old price, you know whom to complain to. This is a tool that the Centre needs to wield effectively to keep prices under check and ensure that business do not pocket all the gains.

The bottomline

Profit is fine; don’t let someone profiteer at your expense.


misCellaNy

Wholesale inflation dips to 0.9%- lowest in 8 months

Wholesale inflation fell to 0.9% in June – the lowest in at least eight months-as price of food articles, including vegetables, declined. Inflation based on the wholesale price index (WPI) was 2.2% in May 2017 and (-)0.1% in June 2016. The slowdown in wholesale inflation comes against the backdrop of retail inflation easing to a record low of 1.5% in June. The WPI figure is at the lowest level in at least eight months-since the availability of data for the new 2011-12 base year series. The Government data released on Friday showed that prices of food articles contracted by 3.5% in June on a yearly basis.

- Times of India,15/07/2017

Ahead of privatization, AI eyes bumper staff buyout

Air India is drawing up a proposal to offer voluntary buyouts to just over a third of its 40000 employees, a senior company official said, one of the largest such offers in India’s state sector, as the carrier slashes costs ahead of a 2018 sale. The official, who could not be named as the plans are not public, said the state-owned airline had also put fleet expansion on hold, scrapping a proposal to lease eight Boeing 787 wide-body aircraft. Air India’s board approved the proposal in April; but nothing further had been done. India’s flagship carrier is on the block after Prime Minister Narendra Mod’is cabinet last month approved plans to privatise the loss-making airline-selling part or all of the company and ending decades of state support.

Founded in the 1930s and known to generations of Indians for its Maharajah mascot, Air India has a complex fleet, too many staff relative to its peers and $8.5 billion in debt. Since 2012, New Delhi has injected $3.6 billion to keep it afloat. An official in Modi’s office said the leader, under pressure to cut spending and boost basic infrastructure like ports and roads, is in “no mood to provide fresh monetary assistance to any loss-making public sector company.

Imagination is more important than knowledge. - Albert Einstein

IBA GROUP MEDICAL INSURANCE POLICY

Attention of officers who have retired/retiring during 01/10/2016 to 30/09/2017 – on superannuation or VRS is invited towards HRM & PAD, HO Circular No. 454/2017 dated 17/08/2017 in respect of continuation of their Group Medical Insurance Policy for the month of October, 2017 i.e., the gap between coverage of the policy while in service (up to 30/09/2017) and their joining the fresh policy covering retirees (from 01/11/2017), if they desire, by payment of premium for a month.

The official said that top bureaucrats in the civil aviation ministry and at Air India had been asked to present a report on how a Voluntary Retirement Scheme (VRS) could be offered to about 15000 of Air India’s 40000 staffers, including contractors. “Nothing has been finalised but our aim is to make the strategic sale as simple as we can,” said a second top official in Delhi, involved in the airline’s daily operations, adding that any fresh investments would be put on hold. Previous attempts to offload the airline have failed mainly because of the scale and complexity of problems at Air India, as well as its influential unions. If Modi can pull the privatisation off, it will buttress his credentials as a reformer brave enough to wade in to some of the country’s most intractable problems.

In its heyday, Air India boasted of a talent pool that newly-founded airline dipped into. The Government will, however, need to convince seven trade unions to accept the plan to make the company attractive to potential buyers, including buyouts and other efforts to slash costs. Their initial response was not positive. “The Government will propose a VRS scheme and we will throw their proposal in the dustbin,” said JB Kadian, leader of a union that represents 8000 non-technical staff of Air India employees will launch “an agitation” in August if the Government pursues its plans to privatise the carrier.


EPFO may bring 500 small private trusts into its fold

Retirement fund body EPFO may bring 500 private PF trusts within its fold whose EPF accumulations are around Rs.1 crore each, or have up to 20 members, for offering better services to those subscribers. Besides, this will improve monitoring of over 1000 such trusts which have large subscriber base and manage huge EPF accumulations. The Labour Ministry is in the process of amending Employees’ Provident Fund Scheme 1952, so that large private PF trust having accumulations can carry on the management of their employees’ EPF money add accounts. “After the amendment in the EPF Scheme, the existing private PF trust having up to 20 members or EPF accumulations of around Rs one crore excluding pension and insurance contributions, would lose their exemption from filling EPF returns. Their

trust’s funds and account would be taken over by the Employees’ Provident Fund Organisation (EPFO),” a Labour Ministry source said. The source added that after amendment to the scheme, these small trusts would be exempted from filing EPF returns for a period of 180 days after which they would lose the exemption.


Govt. plans new agency to keep check on Chartered Accountants

The Government is reviewing plans to put in place the National Financial Reporting Authority (NFRA) as it seeks to rein in the Institute of Chartered Accountants for India (ICAI) for its perceived failure in enforcing discipline. While Companies Act, 2013 had provided for NFRA as a regulatory agency for audit, accounts and financial reporting, Section 132 of the law has remained on paper as the rules are yet to be notified. “It is one of the few sections of the law that has not been notified yet,” said a source. Many believe that several Chartered Accountants had successfully lobbied with the Government to block the notification as it would have taken away several powers that are currently vested with ICAI. Under the 1956 law, the Centre was to prescribe accounting standards prepared by ICAI in consultation with the National Advisory Committee on Accounting Standards (NACAS) -powers that are to be transferred to NFRA now. The new agency -which can have up to 15 members, including the Chairman - is mandated to advise on issues related to audit and accounting standards and be the regulator for the profession.


Government mulls monitoring digital currencies to track crime

The Government is considering tracking digital currencies like bitcoin through the central bank and capital markets regulator along with intelligence agencies to monitor money laundering and terrorist financing, people with the knowledge of the matter said. A Central Government panel is examining options such as banning, regulating or limited intervention for virtual currencies in India, an area that is currently neither regulated nor recognized by the Government, said the people who asked not to be identified as the discussions are not public. Crypto currencies like bitcoin have


attracted the attention of the authorities due to the exponential rise in their prices and market size. They have sparked concerns of money laundering, terrorist financing and drug trafficking. According to Government estimates, the economic value of one bitcoin is worth as much as 60 grams of gold, which closed at Rs.27837 per 10 grams on July 13. With a weekly turnover of Rs. 6-10 crore, bitcoin, the largest of the digital currencies, has gained a firm foothold in India. Digital currencies are worth around $90 billion, down from a market capitalization of $115 billion on June 14, according to data from Coinmarketcap.com


Decks cleared for the creation of an ‘oil giant’

Paving the way for the creation of an integrated ‘oil giant’ that will match international companies in size and clout, the Cabinet Committee on Economic Affairs on Wednesday gave in – principle approval to the sale of the Government’s 51.11 percent stake in Hindustan Petroleum Corporation Ltd (HPCL) to ONGC. As with the Air India disinvestment, it has decided to constitute an Alternative Mechanism for a smooth transaction of the stake from one promoter to another.


Why do most ‘selfie deaths’ happen in India?

That India has the largest number of selfie-related fatalities in the world, as was revealed in research last year, is no surprise, if you consider the statistics from a recent 12-city survey by Samsung. A 2016 report by Carnegie Mellon University, Indraprastha Institute of Information Technology, Delhi and National Institute of Technology, Tiruchi, found that India accounts for 50 percent of such deaths worldwide. Samsung’s recent survey reports that nearly 60 percent of Indian two-wheeler users ‘instinctively’ answer their mobile phones while riding. Seventy percent of pedestrian respondents said they regularly answer the phone while crossing a road. Should it be the boss calling, 18 percent will respond immediately, while 51 percent will answer by the third call, even if they are in the middle of the road. Fourteen percent of Indian pedestrians admit to taking selfies while crossing the road at least once a week.

Safety technology

While a large number are concerned about children

using a phone while crossing the road and truck and bus drivers using their phone while driving, 55 percent think mobile phone companies should incorporate technology that prevents misuse of mobile phones on the road. Samsung has launched a Safe India campaign to sensitise people on the dangers of using mobile phones and taking selfies on the move. According to a report on Carnegie Mellon University’s website, the most common manner of selfie deaths in the world was people falling from buildings, cliffs and other high places. Water-related selfies accounted for the largest number of group deaths. In India, a number of deaths occurred when friends or lovers posed on railway tracks. Gun-related selfie deaths occurred only in US and Russia.


Appointing Chief Vigilance Officers: Govt. changes Rules

After changing rules for appointing bureaucrats based on their ‘integrity’ the Government has now revised the rules for appointing Chief Vigilance Officers in central public sector enterprises and organizations under central ministries and departments, limiting individual ministers’ say in the matter and fast-tracking their appointments. Chief Vigilance Officers (CVOs) in such entities will now be selected “following the Civil Services Board (CSB) procedure”, the Department of Personal and Training (DoPT) has said in a note. For deputy secretary and director level posts, orders for appointment will be issued by the establishment officer with the approval of the Minister of State for Personnel, Public Grievances & Pensions, said the note issued by DoPT. For joint secretary level posts, the same procedure will be followed as is being followed for appointments of joint secretaries under the Central Staffing Scheme, it said. For long, the power of appointing vigilance officers-who play an important role in checking corruption in ministries, departments and central public sector enterprises (CPSEs)-was with ministers. The new procedure is expected to reduce lobbying for such positions and limit the role of ministers and their close associates in these appointments. “Earlier, the Vigilance Officers could be appointed easily with ministerial intervention; but not anymore,” a senior official in the Government told ET.

- The Economic Times,26/07/2017



THE MAHARAJA AND ITS DISENCHANTED PEOPLE

“Bricks and stones do not talk, employees do,” is a refrain you hear from the belligerent Air India unions, which staged a protest at the AI complex, Delhi, this Tuesday. The employees are opposing the privatisation of the debt-ridden national carrier. Ever since June, when Prime Minister Narendra Modi and his Cabinet colleagues gave an in-principle nod to divest the Government stake in Air India and five of its subsidiaries, its 21,000-plus employees have been in shock. Now, after a month-long series of meetings, they are gearing up to do battle. “Shouldn’t they at least have discussed it with the employees before making such an announcement?” asks Vivek Rao, Regional Secretary, Air Corporations Employees’ Union (ACEU), saying they got the news from the media. The airline’s seven unions have banded together for further action. A major grouse is about the timing. Why now? “Does the Government want to sell the company for a song?” queries a member of the union. Air India has a debt of Rs 52,000 crore, of which about Rs 20,000 crore is aircraft-related and Rs 32,000 crore is working-capital based. The buzz was that the Government is likely to take over half the working-capital debt as part of its divestment plan. The airline has a fleet of 105 aircraft. As of March 2017, its assets were worth about Rs 40,000 crore.

The Air India Unions Joint Forum Against Privatisation insists: “We are not responsible for these debts.” The unions had in 2007 opposed the merger of Air India and Indian Airlines as well but the Government went ahead. In fact, in February 2007, the ACEU had held meetings with the then Civil Aviation Minister, and were assured there was no proposal to privatise the airline.

The Union also points out that in 2011-2012 Air India embarked on a turnaround plan (TAP) and financial restructuring plan (FRP) to improve its performance.“The company has almost achieved the targeted results with the complete co-operation and support of the employees. The move to privatise Air India comes despite it showing profitability and over 33 percent increase in the number of passengers due to its membership in the Star Alliance,” the Unions argue.

Alternative mechanism

Civil Aviation Ministry officials soothe these concerns. “Discussions with employees will happen once the ball gets rolling,” a senior official in the Civil Aviation Ministry counters. “Broadly speaking, we are committed to protecting the rights of the employees … specifics, if any, will have to be worked out,” the official said. “The Alternative Mechanism put in place will address all issues,” he says. The Mechanism is a group of ministers headed by the Finance Minister that will examine issues such as treatment of Air India’s unsustainable debt, hiving off certain assets to a shell company, de-merger and strategic disinvestment of three profit-making subsidiaries. “Once their recommendations come the Cabinet will have to approve them,” the official says.

Staff strife

With any disinvestment, the fear of layoffs is always very high. The number of Air India staff is huge (21,137 employees including those in subsidiaries). Besides, the unions fear for their dues, and pensions. They cite the example of Centaur hotels. “Employees were convinced that it was for their benefit. But, was it really to their advantage?” questions a union member. Air India’s airline to employee ratio has often been criticised. Before the TAP it was 1:139. Reports say it achieved an improvement of 1:120 (excluding subsidiaries) post 2012. The Civil Aviation Ministry official gets worked up at this. “You must remember Air India is one of the domestic airlines which has all the services – engineering, ground handling – within it. Airlines typically do not have them, others handle it for them,” he defends.

“Comparing Air India to an IndiGo and others which do not have these services within them is not an apple to apple comparison,” he says. “These services of Air India are handled by different subsidiaries. So if you

Don’t blame people for disappointing you; blame yourself for expecting too much from them.


look only at it holistically, the ratio is comparable to other airlines and it is less then Jet probably. Second, there has been no recruitment for 20 years, except probably in the reserved category or pilots,” he says.

The unions contend that while performance and productivity have been rising, service conditions including the cost of labour have been declining year after year, from over 10 percent of the operating cost to 4.1 percent in 2014-15. They say this is is perhaps the lowest percentage of operating cost not only in Indian aviation but also the world over.

Air India’s contribution towards PF and gratuity has also been declining, they say, adding that NITI Ayog proposed the privatisation ignoring employees’ contributions to sustain Air India as a public sector undertaking.

“The Government needs to have the employees on board for even the disinvestment to succeed. It is not about HR issues right now, but about why divest at all,” says ACEU’s Rao. Several attempts to privatise Air India have been made earlier. JB Kadian, General Secretary, ACEU, says, “The Vajpayee Government had tried it earlier as well but there were no takers.” In fact, it was keen to act on the recommendations of the Naresh Chandra Committee on privatization; but was opposed by the unions and employees. Can they succeed in derailing it now too?


CirCular rOuNd up

1. Legal Decisions Affecting Bankers - The provisions of Limitation Act are attracted to a proceeding under SARFAESI Act.

(Legal Services Division, HO Circular No. 399/2017 dated

18.07.2017)

Pendency of Proceedings before the DRT, under the Recovery of Debts due to Banks & Financial Institutions Act of 1993 will not save the period of limitation of a proceeding under SARFAESI Act, 2002 if the proceeding under the SARFAESI Act, 2002 is by itself barred by the Law of Limitation – as per the latest decision pronounced by High Court of Calcutta.

2. Work allocation & rotation of duties in Branches/Offices.(Organisation & Methods Division, HO Circular No.

400/2017 dated 19.07.2017)

Work allocation & rotation of duties in Branches/Offices increases the efficiency and productivity of the Branches/Offices and provides equal opportunities to all employees to acquire wider knowledge and skill. Detailed guidelines are furnished in the Circular.

3. Facility for Exchange of Notes & Coins. (Premises Division, HO Circular No. 402/2017 dated

19.07.2017)

Reserve Bank of India (RBI) has communicated the revised guidelines on the facility of exchange of Soiled/Mutilated/Imperfect Notes under Note Refund Rules, 2009.

4. Amendments in Guidelines – Pradhan Mantri Awas Yojana - Credit Linked Subsidy Scheme for EWS/LIG Beneficiaries. (Retail Lending Division, HO Circular No. 403/2017 dated

20.07.2017)

Ministry of Housing and Urban Poverty Alleviation (MoHUPA), has made amendments in the Scheme Guidelines of PMAY-CLSS for EWS/LIG, applicable w.e.f. 27.06.2017.

5. Format for restructuring of loan accounts. (Organisation & Methods Division, HO Circular No.

406/2017 dated 21.07.2017)

The simplified format for restructuring of loan accounts have been devised for all loans except Agriculture, MSME and Corporate loans. Formats have been uploaded in O & M portal under Forms.

You can’t clap hands with one palm - Chinese Proverb

6. Conducting of Entire Official Work in Hindi on One Day of Every Month. (Official Language Division, HO Circular No. 407/2017

dated 21.07.2017)

The Department of Financial Services, Ministry of Finance, Government of India has advised after conducting Official Language Review that “All institutions should resolve to do their complete work in Hindi on one day of every month and gradually increase the Hindi working days, so that we can progressively do our entire daily work in Hindi. Accordingly, it has been decided in our Bank that on 14th of every month all our Executives, Officers and Employees should conduct their entire work in Hindi.

7. Bank Guarantee/Letter of Credit Issued for Supply of Goods on Credit.(CPPS, Credit Division, HO Circular No. 408/2017 dated

24.07.2017)

Branches shall desist from issuing BG for the purchase of Raw Materials and instead use Letter of Credit for the purpose. In such cases, the existing inventory limit is to be earmarked/ reduced invariably to the extent of the additional facility granted.

8. Legal Decisions Affecting Bankers – Landlord Incompetent to Create Tenancy for a Period exceeding 3 years of the Property Already Mortgaged. (Legal Services Division, HO Circular No. 409/2017 dated

24.07.2017)

The Tenancy created subsequent to the creation of Mortgage of the property for a period of more than 3 years is contrary to section 65 A of the Transfer of Property Act. The Branches may bring to the knowledge of the Sanctioning Authority for appropriate action in case they come across any instances of borrowers leasing the mortgaged property.

9. Processing of Loan Proposals by Junior Staff on Probation and their misuse by Senior Employees of the Bank – Reiteration of the Instructions. (HRM & PA D, HO Circular No. 410/2017 dated 24.07.2017)

Branches have been advised to strictly adhere to the guidelines of the Ministry that newly recruited Officers who are under Probation or having a service of less than 2 years are not asked to recommend and process loans, unless it forms part of their learning process.

10. IBA Medical Insurance Scheme – Corporate Buffer.(HRM & PA D, HO Circular No. 412/2017 dated 26.07.2017)

Corporate Buffer is valid for the Current Policy period ending 30th September, 2017. Eligible Staff members should submit claims under Corporate Buffer along with original discharge summary, detailed bill, cash paid receipts, Laboratory/X-ray reports etc.

11. Recording of Details of Transactions in Pass Book/Statement of Account. (Customer Service Division, HO Circular No. 413/2017

dated 27.07.2017)

Branches have been advised to go through the Annexure to the circular and ensure that full details of transactions are entered in the system without fail, with immediate effect.

12. Menu Options and Action Points on the Income Related Matters in the Saral GST Software. (Financial Management Division, HO Circular No.

415/2017 dated 27.07.2017)

The GST collected from the Customer will be remitted to the respective States based on the details available in the CIF/Party Master/Account Master of the Customer in the Saral GST Software. Hence necessary to update the correct address and the State Code in the CIF/Party Master/Account Master of the Customer in the CBS and Saral GST Software.

13. CERSAI - Need for Timely Registration of Security Interest.

(CPPS, Credit Division, HO Circular No. 416/2017 dated

27.07.2017)

All Branches shall register Security Interest in Movables/Immovable within 30 days from the date of creation of Charge.

14. Clarification on Premature closure of PPF accounts.(Government Business Division, HO Circular No. 417/2017

dated 28.07.2017)

For premature closure of PPF account, subscriber need not pay the minimum deposit amount of Rs. 500.00 and discontinuation fee of Rs. 50.00 per year for defaulted years.



15. Goods and Services Tax, 2017. (CPPS, Credit Division, HO Circular No. 419/2017 dated

28.07.2017)

All our borrower constituents are required to obtain State/Union Territory wise number (GSTIN), as the case may be, depending upon their geographical presence. It is also required that their service providers shall equally obtain GSTIN to enable our constituents to avail Input Tax Credit (ITC).

16. Legal Decisions Affecting Bankers – Service of notice – Section 138 of Negotiable Instruments Act.(Legal Services Division, HO Circular No. 420/2017 dated

29.07.2017)

As per the recent decision of Supreme Court of India, once notice under Section 138 of the NI Act is sent by registered post by correctly addressing to the drawer of the Cheque, the service of notice is deemed to have been effected. There is no bar under Negotiable Instruments Act to send a reminder notice to the drawer of Cheque.

17. GST matters on Rental Payments and Sale of Goods. (Financial Management Division, HO Circular No.

425/2017 dated 31.07.2017)

Certain operational guidelines in respect of hotel charges, restaurant bills and sale of goods owned by the Bank etc. are furnished in the circular.

18. Corp Home Loans to Staff Members – Clarification. (Retail Lending Division, HO Circular No. 428/2017 dated

01.08.2017)

Where the Staff member is availing loan under Corp Home Scheme in addition to NSHL (New Staff Housing Loan) [to meet the balance of project cost], in such cases, Scheme-wise margin on project cost shall be maintained.

19. Monitoring of Self Service KIOSK machines. (E-Business and Delivery Channels Division, HO Circular

No. 430/2017 dated 01.08.2017)

Details on the Monitoring of KIOSKS, role and responsibility of Branches, Zonal Offices and that of the Head Office are furnished in the circular.

20. Menu Options and Action Points in the Saral GST Software.(Financial Management Division, HO Circular No.

432/2017 dated 03.08.2017)

Menu Options regarding Income & Expenditure items in Saral GST Software and other operational guidelines are covered in the circular.

21. Digitisation of Self Help groups under SHG – Bank linkage programme. (Priority Sector Division, HO Circular No. 433/2017 dated

03.08.2017)

NABARD has launched “EShakti”, a pilot project for Digitisation of SHGs. The project covered 25 districts across the country and is being extended to 75 more districts during the current year. The URL https://eshakti.nabard.org is made available in our Intranet under Useful Links (Internet Web Site address Sl. No. 50).

22. Detection and Impounding of Counterfeit Notes. (Premises Division, HO Circular No. 435/2017 dated

04.08.2017)

Reserve Bank of India (RBI) has communicated the revised guidelines on detection & impounding of counterfeit notes.

23. Concession & Relaxation in respect of Life Insurance Claim Settlements under PMJJBY Scheme for Insured Members Affected by Floods. (Bancassurance Division, HO Circular No. 436/2017

dated 04.08.2017)

If Death Certificate is not available, proof of Death like certificate issued by Government machinery, certified extract of entry in the Register of Deaths, Panchanama, Police Inquest Report or Post Mortem Report can be considered as proof of death. Other related details are furnished in the circular.

24. Legal Decisions Affecting Bankers – Applicability of Section 138 of Negotiable Instruments Act. (Legal Services Division, HO Circular No. 437/2017 dated

05.08.2017)

Once the loan is disbursed and the instalments have fallen due on the date of the cheques as per the loan

He hears but half who hears one party only. - Aeschylus


agreement, dishonour of such cheques (post dated cheques obtained) would fall under Section 138 of Negotiable Instruments Act.

25. Generation of Credit Information Report (CIR) from the database of Credit Information Companies (CICs) – Introduction of minimum Credit Score. (Retail Lending Division, HO Circular No. 438/2017 dated 05.08.2017)

Bank has decided to introduce a minimum Credit Score of 650 for the borrowers with sufficient credit history. The Zonal Heads are empowered to permit deviations in deserving cases where the Credit score is less than the cut off limit of 650. This cut off shall not be applicable to cases with insufficient credit history. This guideline is applicable to Retail Loans under Corp Schemes w.e.f. 1st September, 2017.

26. Obtention of Aadhaar and PAN/F.60, Mandatory for Opening of New Bank Accounts/Existing Bank Accounts and for Transactions of Rs. 50000.00 & above. (KYC & AML Cell, HO Circular No. 439/2017 dated

05.08.2017)

Branches are advised to obtain Aadhaar and PAN/F.60 for opening of new Bank accounts as well as for any financial transaction of Rs. 50000.00 & above. Existing Bank accounts are also to be seeded with Aadhaar number by 31st December, 2017.

27. Modification in the Common Loan Application Form for MSME Proposals – ID 11004 (other than MUDRA). (MSME Division, HO Circular No. 440/2017 dated

07.08.2017)

Common Loan Application form (ID 11004) for MSME proposals has been modified in line with IBA recommendations.

28. Legal Decisions Affecting Bankers – Creditor Bank is not Liable to get the Insurance Policy Renewed on Behalf of the Owner of the Vehicle. (Legal Services Division, HO Circular No. 441/2017 dated

07.08.2017)

The Liability of the Bank to get the vehicle insured is only till the vehicle comes out on the road. The Creditor Bank is not liable to get the insurance

policy renewed on behalf of the owner of the vehicle from time to time.

29. Amendment in Guidelines of PMAY-CLSS for EWS/LIG. (Retail Lending Division, HO Circular No. 442/2017 dated

08.08.2017)

Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has made amendment in the guidelines of PMAY-CLSS with regard to obtention of NOC.

30. Handling of Double Lock Keys at the Branches. (Organisation & Methods Division, HO Circular No.

444/2017 dated 09.08.2017)

Detailed guidelines on handling of Double Lock Keys by the Officers/ Employees in Branches have been reiterated.

31. Consent form for Aadhaar to Bank Account Linking/Authentication/ Updating of personal details. (Organisation & Methods Division, HO Circular No.

446/2017 dated 10.08.2017)

The Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017 require that every Bank account in the country is to be verified with Aadhaar authentication by 31.12.2017, failing which it will cease to be operational till the time the account is seeded with Aadhaar number and the same is authenticated.

Temper is a quality that, at a critical moment brings out the best in steel and the worst in people.

cont'd.... from page 24

"If mergers happen amongst Government owned banks, then we will gain membership as AIBEA is the majority union in all the Government owned banks barring Indian Overseas Bank and Bank of Baroda," Venkatachalam said. He said, "In Bank of Baroda, AIBEA has 45 per cent membership while the remaining is with NCBE. When a clutch of banks where our union has the majority gets merged with Bank of Baroda, then the majority union there will become minority and there will be influx of members for us. Similarly, when IOB gets merged with a stronger bank, then the staff union there will become minority and AIBEA will gain new membership as a majority union," Venkatachalam added.

- Business Standard

Officers’ Voice, September 2017 35Officers’ Voice, September 2017 35

health watCh

Deciding the best time to bring a child into the world is one of the most significant decisions in a woman’s life. And, of late, many are choosing to do it a tab late. Late marriages, financial constraints and career aspirations are pushing the age for child- bearing over the 30s. However, potential parents must know what the pros and cons for them are and what could happen to the health of their child if they choose to delay this milestone.

“Pregnancy after the age of 35 is usually not considered to be ideal as the quality of eggs deteriorates after this age. The egg reserve also declines with age, so the number of eggs available is lesser too,” said Dr Sahil Gupta, founder of, Aveya Fertility & IVF Center, Bengaluru. That was the case with Suman Patil, a travel blogger who at 37 decided to take a break from work and have a child. However, she found it difficult to conceive. “My husband and I went to the doctor and found out that not only the quality of my eggs was low, but I was also suffering from prediabetes, which could cause complications after conception.”

As per research, in India, by 2020, an increase in the proportion of women in the reproductive age (20-44 years), coupled with a skew towards those aged between 30-44 years, is likely to result in an increase in infertility prevalence. However, most experts believe that with the right care and precautions, pregnancy after 35 can be achieved without many complications, “It has become quite common for women to choose motherhood later in the lives. If you’re aware of the risk and are prepared accordingly, the chances that your and your baby’s health is fine, increases,” said Dr Kamal Restogi, a gynaecologist practising in Jaipur.

WHAT TO EXPECTAccording to Dr. Gupta, the chances of having genetic mutation with eggs are higher at that age, resulting in missed abortions. The process can take longer and can be a little frustrating. “Pregnancy after 35 has its own complications, including premature birth, stillbirth, low birth weight and birth defects. In many cases there is a probability to have a C-section delivery (also called caesarean birth). Miscarriage rates and chances of ectopic pregnancy (when a fertilized egg implants outside the uterus) are higher. It is important that women get all the relevant prenatal screening tests regularly and adopt a healthy lifestyle,” said Dr Praveena Shenoi, Deputy Medical Director of Cloudnine Group of Hospitals,

Bengaluru. Doctors usually advise the ‘to-be-mother’ to prepare before conceiving. This includes bringing your weight to an ideal level, exercising regularly and adopting healthy eating habits. “With career and ambitions in the forefront, many potential mothers don’t consider their health. However, in order to have a child later in life, one must be conscious about it and prepare for the child to come,” said Dr. Rastogi. Getting control back on stress levels, adding more vitamins in the food and keeping an eye on pre-existing conditions will also help the mother in conceiving. “If the mother is stressed, anxious or depressed while pregnant, her child is at increased risk of having Down’s Syndrome and other chromosomal abnormalities,” said Dr. Shenoi.

ALTERNATIVE ROUTES With age, there may be a possibility that natural conception becomes difficult. However, in India, there are other routes that potential parents can take. “Today, there are many therapies and procedures that help women conceive after 30, such as IUI, IVF. Some women opt to freeze their eggs when they are young so that they can fertilise them later,” said Shenoi. “IVF can be considered a viable option in case there are problems conceiving after the age of 35. If there is a problem with eggs, eggs from donors may also be used. If there is any problem regarding the uterus, a surrogate is the answer,” said Dr. Gupta. However, there are certain advantages and disadvantages that potential parents should look out for, said the doctor. “The good part is, of course, the mother would be able to conceive (which she couldn’t in a natural manner). Also, latest tests like Next-Generation Sequencing (NGS) can help rule out abnormalities which means even before conceiving, it is possible to rule out the presence of abnormalities in the foetus. The disadvantage is, having to undergo the medical process which requires injections and the procedure of egg retrieval which requires anaesthesia.”

POST-NATAL CAREFor woman in the late 30s, it may take more time to recovery post pregnancy. “One advantage that mothers of an older age have is the maturity and capability to take care of a new born. They understand the gravity of taking care of a child and are mostly better financially prepared for it as well,” said Dr. Rastogi.

- The Economic Times

1. PRENATAL PRECAUTIONS:

A. Get advice from a doctor and understand your options.

B. Keep your weight at an acceptable number.C. Keep a check on your stress levels.D. Keep your pre-existing conditions under control.E. Eat natural healthy food and exercise regularly.F. Stop smoking, limit drinking.G. Most importantly, be patient and remain positive.

2. POTENTIAL RISKS FOR ‘MOMS – TO – BE’

A. Irregular Ovulation

B. Blocked Fallopian tube or Endometriosis

C. Risk of Child born with Down’s Syndrome

D. Risk of Miscarriage and Stillbirth; increased Risk during Delivery

E. Increased Complications for both Mother and Child.

- The Economic Times


See it properly Sir... the graph on staff position is kept upside down...

Sorry.... I am the only staff in the branch today.... better if you come when the position improves....

No Sir.... we do not have excess staff.... in fact those whom I introduced to you in the last branch visit were our customers....

Officers’ Voice (RNI, Delhi Regn. No.KARENG/ 2005/14831) Postal Regn. No.MNG/128/2015-17Licensed to Post Without Prepayment under Licence No. SK/WPP/MNG/115/2015-17Office of Posting: Post Office, Kankanady – MangaloreDate of Posting : 1st of every month Annual Subscription for members: Rs.60/-

officers’ voice, september 2017 1 - cboo...officers’ voice, september 2017 1 editor ekanath...

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