Friday, December 24, 2010

Banking Scam

Enough time had been given to Mr. Kalamadi and his associates to clean their houses before CBI raids. Enough time had been given to Mr. Raja and his associates as well to do work as per his whims and fancies violating all existing norms for allocation of spectrum before he tendered resignation and before CBI raided his house. CBI raids are nothing but willfully managed dramatic act to demonstrate the people of India that the government is taking action against the corrupt officers. Absolutely non -sensical and dramatic acts are being played by cleaver politicians of ruling party to salvage public image. eventually none will be punished.

In fact none is trustworthy in India. Even judiciary is facing serious charges of corruption. CBI is already blamed to be a puppet in the hands or ruling government.

However it is only Supreme Court and state level High Courts on which people of India are constrained to rely upon to some extent.

Both of Mr. Kalamadi and Mr. Raja have already caused huge loss to the government. Kalamadi has paid hundred times more than what the government proposed in the year 2001 and Raja has realized at rate what was prevailing in the year 2001 in contrast to many times higher rate which the government could have received through open tender. It is very difficult to establish the charges. It is very difficult to assess and establish the quantum of loss which has been caused to India because none of the investigating agencies can tell or imagine what rate government could have got through tender in the year 2010 or in 2009.Similarly it is not easy for CBI to prove that Kalamadi paid extra ordinarily higher rate than the prevailing rate for a particular type and particular quality of goods and services he bought for Common Wealth Games and in return he earned wealth for himself or for his associates.

It is an universal truth that in all contractual work or in government supply work of value of Rs.100 in government offices and government departments ,actual work done or actual value of supplied goods and services is hardly Rs. 20 to Rs.50. Everyone knows that 20% of the allocated fund is actually consumed and used for work and 80% of the fund is consumed in distributing bribes and commissions to various individuals, political workers, top leaders, ministers, local MLAs and MPs, brokers, middlemen, local musclemen called as extortionists, Naxals and mediating or executing agencies.

If one looks into lending made by Public Sector banks and assess the quality of assets of the bank honestly he will find that there are at least ten lac crores worth assets as Non Performing Assets though declared NPA of PSU banks as on March 2010 was only one lac twenty thousand crores rupees. Bankers are not punished because all top executives, RBI officials, Ministers are guilty for making bad lending. In fact only those officers become executive, DGM,GM, ED and CMD in a bank only if he is expert in bad lending , expert in keeping higher authorities happy and maintain a strong lobby of God fathers not only to rise in career but also to get protection in time of crisis or when he is exposed or trapped in CBI net. As such scam of 2G spectrum under investigation by CBI is very small compared to continuing scam in banks. If a CMD or ED of a bank makes a phone call to GM to ensure lending of hundred crores to relative of the Finance Minister, entire processing of sanction of desired lending will take place a shortest period possible. This is called lobby banking or corporate lobby policy. When Ministers or RBI shuts their eyes and ears, none is capable to stop corrupt practices.

Everyone in our country knows that development funds sent by state or central government to district or block level offices are not fully distributed among real beneficiaries.

All are birds of the same feather. Then who will punish whom is a million dollar question.

Root cause of all corrupt practices is whimsical transfer, arbitrary promotions of junior staff by top rank officials to ensure a team of yes-men and flatterers around him so that none can raise the voice against his misdeeds and none can be whistle blower because everyone gets their due share.

Scam of value of hundreds and thousands of crore rupees cannot take place without the support of hundreds and thousands of persons in the system. This is why more and more people will try their best to shut the mouth of CBI officials and court judges. Many more middlemen and brokers will play their role and earn their share in ill earned money. Corruption cannot therefore be reduced at least in the frame work of democracy or by applying soft laws or by delayed action or by inefficient courts.

Thursday, December 16, 2010

Financail Inclusion and Branch Expansion

In seventies and eighties there was huge pressure from government of India and Reserve Bank of India on Public sector banks for opening of branches in rural areas so as to cover all villages. As per policy of Service Area Approach introduced by RBI each branch of a bank had to serve 15 villages and cover 10000 of population. There used to be Block Level Banker’s Committee (BLBC) constituted by Lead Bank Manager, Branch Managers of all banks in the block and block level officials to prepare an annual credit outlay plan for the year for the service area and monitor its implementation. Thereafter District Level consultative Committee (DLCC) and State Level Banker’s Committee (SLBC) were constituted to monitor the quality and quantity of progress.

But unfortunately this entire exercise in the real field proved formal and futile during last thirty years of its existence. Village level, District level and State level plans formulated by BLBC, DLCC and SLBC proved a futile exercise so far as the real welfare of villages, elimination of poverty and idea of social welfare is concerned. This is a bitter truth that all these plans failed miserably and position of villagers did not improve despite several poverty alleviation programes undertaken by PSU banks in one name or the other during last for decades. Officials of banks and state government offices still complete these formalities of conducting meetings, formulating annual plans and there submitting the report to Banking Division and RBI but there is none at field level branches of banks or block offices to take care of plan and its execution.

In the year 1991 government of India adopted the path of economic reformation in line with global policy of liberalization, privatization and globalization (LPG). Banking reformation also was also planned and put into action under the leadership of the then Finance Minister Mr. Manmohan Singh. Banks were given huge freedom, rates were deregulated, licensing policy was reframed, private banks were opened and gradually banks changed their working style from traditional social banking and mass banking to Class banking, from social service entity to profit making unit. In nineties, several branches of banks were closed or turned into satellite branch only because there were unable to earn profit. Villagers who lived in the service area of closed branches were forced to contact other branch of that bank at farther place or to contact some other nearby bank for financial assistance or for any banking operation. During this period not only poor villagers were discarded and left at the mercy of traditional money lenders for exploitation, but even banks were also constrained to write off huge amount of loans and advances disbursed in the villages.

Government of India had to infuse capital several times to make PSU banks strong enough to compete with global banks. Merger of banks were point of debate at all level so that their lending capacity may increase and they may be able to finance to bigger and bigger project .In brief the choice of bankers became top industrialists and top traders and not poor villagers. Banks now consider wholesale and bulk lending instead of retail lending. Ambiance of most of the branches have been changed and decorated to suit rich society and to make it comparable with private and foreign banks which were by birth made to serve rich class people.

Banks were nationalized in 1969 by Late Indira Gandhi to make banks accessible for poor villagers. Unfortunately, poor villagers have again been thrown out of bank’s branches during last twenty years of reformation in banking. In the new set up poor villagers are directed towards Micro Finance Institutes (MFI) or advised to come through newly formed broker called as NGO or form their own Self Help Group (SHG). Banks gradually turned to non banking business like insurance, and demat services to earn more and more profit by less and less staff because they realized that profit earning by PSU banks competing with private banks was not easy .In the changed situation banks are trying to show false and cooked profit by hiding their bad assets or selling their bad assets to ARCs or by imposing service charges for every banking operation they do in the bank.

Banks are trying to earn Non Interest Income because their Interest Income has sharply come down due to unwarranted rate war declared by government under the frame work of reformation policy. Profits of PSU banks are facing continuous erosion due to increase in Non Performing Assets and hence bankers are least interested in rural lending which involves comparatively more manpower and enlarged network of branches.

Now after twenty years of reformation RBI has once again realized that need of the hour is to serve the villagers. New word called as Financial Inclusion has become the slogan of bankers. But as a matter of fact their all field activities indicate that banks are bent upon Financial Exclusion of poor villagers by directing them to MFI or to NGO or to form SHG. Poor people in villages and towns have now to depend on ATM and biometric cards for cash deposits and cash payment and on MFI. NGOs and local money lenders for availing loan facilities. Banks as also government of India think it wise to make finance to MFI and NGOs in hundreds of crores of rupees at base rate or at low rates and the ask MFI to make finance to poor people at many times higher rates.

Financial Inclusion is used merely for opening of No Frill accounts and to serve the purpose of UID (Uniform Identity Number).The word ‘Financial Inclusion’ is frequently used by political leaders and government officials along with bankers. But in fact no real improvement of poor people has taken place during last twenty years of reformation policy initiated by the government in the year 1991. It will not be an exaggeration to say that poor people were better served during the period 1971 to 1990 (after nationalization of banks in 1969). To add fuel to fire RBI is again putting thrust on bank management to open more and more new branches to reach the level of each Panchayat.

Bankers have burnt their fingers in large scale expansion program under Service Area Approach plan of seventies and again they are committing the same blunder by opting unwarranted expansion of branch network to spread it upto Panchayat level without increasing manpower to suit the need of branch expansion. The new word ‘Financial inclusion’ is nothing but is old wine in new bottle and this continue to make mockery of poor people.

Under the umbrella of reformation banks have stopped recruiting fresh staffs to save staff cost and to earn more and more profit in line with other capitalists who are exploiting Indians by way of labour exploitation and by indulging in large scale profit making. Business of banks have multiplied ten times during last five years but number of staff working in banks have come down compared to what it was five years ago inspite of addition of new branches and new businesses in banks. As such employment opportunities available to educated youth are also shrinking in the era of reformation.

Obviously we need to debate whether banks are serving poor people, whether policy of capitalism adopted by Government of India in the name of economic reformation suits to Indians environment and whether growth of five percent of population of Indian is the real motto of the government and the real purpose of GDP growth. We Indian have to ponder over the prevailing policy of capitalism and discuss whether it is more important or we have to revert back to the policy of socialism or to adopt a middle path in unison with the policy of Mixed economy. Poor and middle class of Indians who constitutes 95% of population cannot even afford quality education, quality health care services, quick justice in court and quality food in our country because rich and affluent class have been given complete freedom to exploit consumer and earn profit without any fear of administrative action under the policy framework of reformation called as LPG.As such this large segment of society have to depend on bank’s loan for all their essential needs food, health care, education and so on.

Last but not the least PSU banks in general are running in acute manpower shortage but still management of the bank is least inclined to recruit fresh manpower to keep cost of establishment at the lowest. Besides there is complete lack of devoted, talented and honest workers due to increasing number of corrupt officers sitting at top post who discourage good workers and hence the assets of the bank are undoubtedly at stake and the health of the banks has to face is in way sound. As such large scale expansion undertaken by branches may prove to be suicidal activity and the word Financial Inclusion has become a laughing stock for common men. Neither bankers nor poor people are happy and safe. Even banks are not safe but more confused because they are unable to decide which path they are actually to go when government changes policy so frequently and in a impractical way.

Tuesday, November 16, 2010

Rising NPA in PSU Banks

It is not easy to stop corrupt practices prevalent in Public Sector Banks .Work done through contractors or goods bought through suppliers either through tender or without tender are more often than not of inferior quality, everyone knows it. Until management, government, judiciary, regulatory agencies, vigilance officials, monitoring officials, auditing officials and the concerned executing officials are honest one cannot imagine of punishment to guilty officials or to contractors who use inferior materials in construction works or to suppliers who supply lesser goods and inferior goods and charge high value. Banks therefore cannot stop corrupt practices in contractual work related to furnishing of premises or renovation of bank’s branches, ATM centers or administrative offices, but it can definitely stop corruption involved in its lending business. Though it is not easy to make the system fool proof of corrupt practices but a little effort in this direction may help in reducing the level of malicious lending and in turn help in keeping the NPA level as low as sustainable.


But the task of purification and punishment must start from top officials who support, propagate, irrigate and promote corrupt practices in lending. We have to punish top officials who indirectly or directly prefer commission in bulk lending, who aspire for costly gifts from junior officials on financing made by branches and who desire red carpet welcome is extended to them wherever they visit. We have to change rules and practices which discourage honesty and loyalty. It is worthwhile to keep in mind that top official who are basically corrupt and possess acute greed for money do not leave any witness or evidence which can be helpful in trapping them or which helps in substantiating charge of corruption against them. Top officials manage bribe through a few hard core flatterers in the organization. Such flatterers have strong liaisoning with all high profile personalities in all departments and they can easily manage closure of any file which may go against them and they can shut the mouth of all protestors.


RBI or any other monitoring agencies can at least identify the executive of the banks whose past and present is bad and who are condemned by all. For this purpose they should prepare a list of bad borrowers (NPA) involving rupee one crore and more (to begin with) and try to find out the name of the executives who are responsible for bad lending .There may be cases of account turning bad due to various reasons which are beyond the control of bankers may be ignored, But advances which turned bad due to faulty and malicious processing must be analyzed thoroughly and honestly by a devoted team of bank officials chosen from other banks. Executives who are instrumental in bad lending and still posted at high places send a wrong message down the line. If corrupt officers are promoted and made organizational head or Branch head or circle head in a bank there is no doubt that junior officials will also indulge in bad lending in greed of money and instances of bad advances will increase. In such system good officials are normally shunted in remote and critical areas and ignored in promotion processes.

It is therefore required to know the name of all loans and advances made by all top executives in past ten years and ascertain whether they are still good or turned bad in a few years or even written off by clever gang of General Managers and cleaver board of directors. Serious analysis of bad borrowers will reveal that creators of all NPA accounts are holding top posts in the same bank of have become ED or CMD of other bank. If bad executives are replaced by devoted officers of the same bank violating existing promotion policy or transfer policies I think the level of NPA will come down in coming years. Otherwise the deterioration cannot be stopped and banks have to face serious financial trouble in near future. As a matter of fact dishonesty has become the best policy in all offices owned by the government partially or fully.

It is disheartening that even officials who are made for stopping malpractices and for punishing corrupt officials are themselves corrupt. Then who will take action and against whom, only God knows. And this is why it is said that corruption has become the accepted system in India. Problem arises only when there are differences over the rate of sharing ill earned money among the team of officials who promote bad culture or when top officials receive bribe money but fail to extend desired help to bribe giver.

Lastly if there is a will there is a way. If one wants to lower corruption level in any office or government department there are several ways to accomplish the same. If the head is clean, he can at least endeavor in this direction to some extent, but if the head is dishonest one cannot dream of healthy practices down the line. Unfortunately honest officers are very rare and even there are a few they cannot survive and prosper in their career.

17.11.2010

Thursday, November 11, 2010

Identify Bad Bankers


We have seen downfall in net profit of Union bank, Vijaya Bank, Uco bank, Syndicate Bank,Federal bank, Indian Bank and now in SBI. These banks have added 7 to 8 thousand crores worth NPA in their balance sheet and they still talk of being star performer. Executive called as ED, Deputy General Manager, General Manager, Assistant General Manager in banks who has contributed crores of rupees in NPA are treated as star performers.


What is reason behind abrupt rise in NPA?

Is it not due to the fact that quality of asset in banks has suffered continuous erosion though it has been year after year concealed by talented executives?

Bankers have been hiding bad assets for last so many years just to please Ministry and befool innocent public by showing false rise in profits so that their share prices goes up and up like Satyam Computers? But how long? It has to face puncture like Satyam Computers.


Flattery culture prevalent in banks and in government departments including Ministry of Finance has resulted in growth of bad assets and bad man power. Lobby of corrupt bosses is so strong at controlling offices that only corrupt officers are chosen as Branch Heads, Regional Heads, Zonal Heads, EDs and who in turn freely indulge in bad lending .improper waiver of loan, dishonest compromise with so called bad borrowers to earn bribe , buy deposits from government offices and manage their survival. Big bosses are indulged in earning commission not only from their team of corrupt manager but also from contractors, suppliers and what not.



It is true that corruption prevalent in banks cannot be proved because of so many legal hurdles and shortcomings in the system.

But RBI or CMD of the bank who treat them as honest and star performer should at least prepare a list of executives who is instrumental directly or indirectly in sanction of maximum bad advances. Borrower wise thorough investigation will reveal the name of corrupt officers and will at least reflect the name of real culprits behind sudden spurt in NPA and considerable fall in profits in banks. It is not that banks who are showing rise in profit or fall in NPA are really healthy but in fact they are master in concealment of bad assets and they are master in manipulation. As such, sooner or the later Indian government like US government has to understand the ground reality. Regulators of banks have to understand why private banks are showing rise in profit, fall in NPA and rise in share prices too.

Now Mr. Clean Prime Minister Mr. Manmohan Singh and Finance Minster Mr. Pranab Mukherjee should therefore ask CMDs of all banks to prepare and provide the reason of increase in rise in NPA along with the name of sanctioning officials and controlling circle head of that bank. List so prepared will at least expose the corrupt top officials who are inculcating wrong culture in the banks and who are really responsible for rise in NPA. Name of Branch Head or circle head whose advances are invariably bad will come to light so that government can take corrective steps even now before it is too late.


Deso anyone in India you feel that all bad advances are caused due to due to global recession or due to bad monsoon?


Don’t they believe from the core of heart that bad advances are also due to corrupt practices, wrong management, wrong promotion culture, inadequate safety measures, deficient monitoring, and inefficient legal system and so on. Don’t they feel that posting of good officers at wrong places and bad offices at sensisitive places has caused a great loss to banks? Top executives are incapable as also unwilling to work honestly and devotedly because they have unlimited greed for money and power and this is why they select bad officers who can earn bribe and share with big bosses as happens normally in all government offices.


I therefore reiterate that RBI should now collect a list of bad borrowers where amount of NPA involved is more than one crore or five crores and ask the name of officers who sanctioned such loans. RBI may also collect the names of sanctioning authority in all big amounts NPA account which has come on the floor during last year or during last five years. It is the duties of RB to identify all those officers who are holding executive post in banks and who are behind bad advances. An officer who is capable to lend to bad borrowers is promoted quickly by big bosses because such officers are corrupt and think it wise to take care of personal interest of big bosses and number one in flattery of big bosses for quickest promotion and best posting.


Until strong punitive action is taken against top officers, culture in juniors cannot improve. Corrupt culture is the rot cause of deteriorating bank's health. Cancer of corruption has been killing PSU banks. It is unfortunate that auditors,CBI officials, even officers in RBI and Banking Division has shut their eyes and ears because they are given warm welcome whenever such big officers visit such banks. Even selection of ED and CMD is not based on merit but based on relation .Every successful officers at top posts has a God father to back and support him even if he or she is caught on wrong footing.


If hidden bad debts are declared by all banks there is no doubt that visible profitability of all PSU banks will vanish and all tall claim of shining banking industry in India decoupled from the global recession prove to be farce.


Banks in USA has seen closure or erosion in their capital and share value in the year 2008 and 2009 not because of a sudden hear stroke but due to sickness in the banking system continuing since last one or two decades. Similarly in India PSU banks has started adding NPA worth thousands of crores every quarter. It is astonishing that SBI management proudly say after declaration of their September 2010 half yearly results that thousand of crores of NPA can be managed and tolerated every quarter and RBI accept their logic blindly.


If the existing trend continues NPA in banks will grow upto many lacs of crores of rupees and to add fuel to fire there is no in built fool proof legal and administrative system to ensure recovery from bad borrowers. Continuous rise in NPA will no doubt block circulation of good money of good investors and in future adversely affect liquidity of banks. Ultimately the small investor and small depositors who has reposed faith in government banks will have to suffer. Small borrowers are already victim of wrong policies of the government because they have to borrow money at higher rate from newly introduced Micro Finance Companies. These MFIs use to charge interest rate at more than 24% and upto 2400% from small borrowers whereas bulk financing made by PSU banks is around base rate of 8%.Financial inclusion policy propagated by PSU banks has become useless for rural people because it allows only zero balance account opening facility and nothing else. Rural people, poor farmers and small traders still depend on local money lenders and they are still in clutches of local exploiters as they used to be before nationalization of banks. Reformation started in banks in India in 1991 by cleaver Manmohan Singh has made the life of poor more miserable.


Until flattery culture in promotions and posting is stopped there is no power on earth which can stop erosion of bank's health. Every year government has to infuse capital in banks for their survival. But how long such ventilators will be provided to dieing banks. Government has to punish bad lenders sooner or later to salvage banks, otherwise they will face the same fate as banks in USA faced in the name of Subprime Crisis and as Satyam Computers faced two years ago.Obama in USA has tightened the bankers in USA despite huge protest from bankers after facing severe Subprime crisis. It is true that our government kept Indian banks unaffected by global crisis but all these could happen only after sacrificing lacs of crores of rupees by RBI in favour of sinking PSU banks. After all the core value of banks has not shown any real improvement and neither there is any improvement of position of common men in India.


I hope government will investigate and find out the real reason of rising NPA and take immediate steps to reverse the trend before it is too late.

11.11.2010
Danendra Jain



1.List of bad accounts(npa)
2.where oustanding is more than one crore rupees
3.name of borrower 4.name of sanctioning officer 5.name of regional head


list of branches where total bad loan is more than five crores or where total npa added during last one year is more than one crore or new branches (less than 3 years) where npa is fifty lacs and more
1. name of branch 2. name of branch manager 3.name of regional head

Sunday, October 31, 2010

Survival of PSU banks is stake

In the quarter ended June 2010 Indian Bank posted unexpected spurt in NPA, in the quarter September 2010 banks like U Co bank, Vijaya bank and Union bank has exhibited unparallel growth in NPA and in coming quarter many more banks will follow the same way to register addition of maximum hidden bad assets in NPA portfolio to include their bank in the list of worst (hitherto called as best ) performing banks. Government in USA realized the guilt after much damage and Obama openly admitted that banking culture in USA was not as good as it was portrayed by financial experts. Similarly Indian government will also realize after losing lacs of crores in NPA and when most of the banks will face survival crisis. Already government of India has infused lacs of crores as capital in PSU banks to keep them healthy during last one decade.

Now CMD of the bank which has shown abnormal fall in profit and abnormal increase in Non Performing Assets (NPA) should introspect and assess policy of allowing recruitment of direct officers in scale II,III and scale IV and even scale V or VI superseding and humiliating several working officers who have been devotedly working in the bank for last two three decades but who are not having any God father to ensure promotion and good posting .Such high profile CMD and ED should get the work of existing executives assessed from unbiased honest team of officers of other banks and also ascertain how much NPA has been added by existing team of executives only due to their malicious intention. The outcome of such inquiry will make it clear that selection of executives was wrong and judgment of such executives is naturally always ill motivated and against the interest of the bank. Top executives are mostly indulged in corrupt practices and hence there is no doubt that stinking and polluted water is flowing from the top. They allow lending , purchase of goods and services or allow and contractual work only when they get their due share .

It is top officials who have inculcated bad practices in the bank and are mainly responsible and punishable for wide spread frustration and depression in officer community. Employees in general are not interested to give their all to the bank. They think it better to keep patience till the corrupt lobby is exposed or kicked out. “Na Nau Man Ghee Hota Hai Aur Na Radha Nachti Hai” this is why entire talk of growth of Bank appears Bakwas to the banker who works at ground level.

In conclusion one can say comfortably that Nav Nirman is the mask of such Bank but the real story is entirely different. Without stopping flattery culture and without punishing corrupt officer and without stopping corrupt tradition of promoting flatterers using Interview powers, one can change the hoardings, banners, posters but cannot imagine of real reformation. Bank can exhibit lesser percentage of NPA by making bulk advances to corporate but ultimately slow poison of rising NPA will puncture entire strategy of manipulation and expose the real health in near future. Of course it will be too late then and real culprits and gang of General Managers and Deputy General Managers of that bank will get peaceful retirement from the bank leaving behind bank fighting for survival like Satyam Computers. Employees working in Satyam Computers and clients associated with the company are slowly leaving the company and new connections are very limited and that too for short period. Once image is lost, it is hard to regain it and very much difficult to rejuvenate dormant employees.


However, even now, If bank’s big bosses are still not ready to accept their guilt, bank should prepare a list of Regional Heads and rank their performance on the basis of total amount of NPA they have added during last three year or five years. Regional Head who contributed maximum NPA should be ranked as number one star performer as per tradition of the Bank. Gold medal should be given to the Regional Head who has contributed maximum NPA in last one decade. Even those officers who indulged in reckless lending and now retired from the bank but whose advances became NPA should be given some extra incentive like double of pension or gifted some golden jewel. It is difficult to make a list of corrupt officers because there is no proof written or verbal to establish the charges of corruption. Birds of same feather flock together. It is therefore better to award those officers whose contribution in rise in bad assets is considerably good.


Hitherto officers mobilizing maximum deposits were treated as Star Performers even though they indulged in bad quality of lending. Now the time has come to identify officers who contributed maximum NPA. Time has come to identify Top ten Regional Heads whose selection of BM and whose ‘Kabile Tarif’ management helped in addition of maximum NPA in the bank .Gold medal should be given to those Branch Manager who have contributed maximum NPA in shortest span of time and also to those BMs who have a track record of generating NPA in branches. Special prize should be given to BM (and regional head) who has produced crores of NPA in one year to three years of opening of Branch. Human Resource Department should now find out the name of such officers advances made by whom have mostly become bad. Bank should peep into each NPA account to find out maker of such advance and prepare a list of such executives existing or retired which can precipitate the name of executives and Branch Managers who have contributed maximum bad assets to bank.

Similarly list of Branch Heads (scale wise and regional wise) should be prepared to know the top one hundred Branch Head who contributed maximum amount of NPA during the period under review. These top performers should then be promoted to higher scale as per whims of CMD or ED of the bank because they are the real adventurer and they can do whatever instruction is given by GM or by orders on phone. Such star performers can only arrange costly gifts for bosses and government top officials to tap handsome deposits.

Regional Heads, zonal Heads or General Managers or ED or CMD who had selected above hundred Branch Heads (who contributed maximum NPA) should now be awarded with golden gifts and cash prize and promoted to higher scale and made ED. Because such officers contributed their best in making it possible for the bank to become number one in banking industry at least on the parameter called as “growth of NPA”

Similarly RBI should make a list of star performer CMDs and EDs who helped in excellent rise in NPA in their bank. Another angle of consideration may be number of unhappy employees, unhappy customers and growth in number of cases and complaints against the bank. The more employees are unhappy, the more customers are unhappy and the more complaints are lodged against the bank the best will be CMD or ED of that bank compared to other banks. At least they can manage certificate of excellence on all parameters which RBI desire to have on record to save their skin.
31st October 2010

Wednesday, October 13, 2010

Flattery makes one powerful and rich

Within a few days and a few months banks will publish their financial results for the half year, for the quarter ending December 2010 and finally for the year 2010-11.One or two banks in Public sector will adopt online technology to declare their actual bad assets which were hitherto willfully concealed by corrupt executives of the bank and which was indirectly supported by ED and CMD of all banks. But result of a few banks will be enough to indicate the extent of sickness growing in Public sector banks.RBI and government of India will no more be able to make excuse of global recession or bad monsoon for level of Non Performing Assets (NPA) reaching to alarming position. They cannot save their face when NPA level in banks is doubled or tripled in coming half years. Times has come when media men, rating agencies and financial analyst as also Chartered Accountants will be exposed because it is they who are depicting banks as shining and growing .
Now it is the duty of Banking Division, RBI, CBI, Vigilance Department and all other controlling offices to identify the corrupt executives in such banks who promoted culture of gift ( cash and king ) based lending, gift based promotion and gift based banking. Only the officers who flattered big bosses, earned money through bribe and shared with bosses and indulged in reckless lending could get better posting and timely promotion. Branch Head who could earn money through bribe in lending could bribe government officers to mobilize bulk deposit could be elevated to higher and higher level superseding all talented and devoted honest officers.
Now the time has come when government should prepare a list of executives (at least Regional Heads or Circle boss or Zonal heads) of banks who has contributed maximum NPA and whose ill-motivated management, negligence and deficient monitoring caused loss to bank. To begin with, banks should submit a list of CM, AGM, DGM and GMs who contributed bad assets amounting to more than ten crores in a region. Similarly a list of those branch heads who added more than five crores as NPA in a branch during last three years should be prepared to identify the most corrupt officers of bank. This list will prove that only those officers who made bad advances or only those were indulged in corruption are sitting in top position of that bank and hence no improvement could take place anywhere in that bank.
Now –a-days bank officers need not be bothered of monitoring of their core assets as much as they need to be bothered of polishing of their bosses. Culture of flattery which was prevalent in all other government offices before banking reformation (since 1991) has taken strong roots in banking too. Now the position of banks has become so much critical that even its survival is at stake.
God knows how long government of India will keep banks alive on ventilation o f infusion of capital in PSU banks. But it is very much sure that PSU banks are suffering from incurable cancer.
Who is to blame for such chaotic deterioration of health of PSU banks in general and a few bank in particular where CEO of bank is considered as Star Performer is a million dollar question.
God only knows the reason for such devastating erosion in moral values of bankers.
But flattery culture is one of the biggest reason for mess in all government offices , banks and insurance companies.
When government itself is formed by corrupt means, one cannot dream of good culture in the administration at any level and one cannot imagine of shining India at ground level.

Sunday, August 8, 2010

Pranab Mukherjee,ManmohanSingh,Sonia Gandhi

I desire to place following questions before Banking Division, Ministry of Finance, Prime Minister of India, President of India and all trade Union Leaders in banks. I hope you will give due place for this appeal which will serve the purpose of lacs of bank employees.

QUESTION EVERYTHING!....SAID SOCRATES! WE THE PF OPTEES QUESTION THE PENSION SETTLEMENT!
1. In the Pension Regulations 1993/1995 there is no provision for collecting money from employees to make up the short-fall in pension fund. If at all any short fall is faced it should be made good by the banks themselves. Then on what basis banks are now asking employees to contribute for short fall?
2. In 7th, 8th, 9th bi-partite settlements 8.25%, 9.25%, 13% of additional cost of pension was carved out of wage load and given to banks to make-up the shortfall in pension fund. This amount belongs to both Pension Optees and PF optees, but used for paying pension to Pension Optees only. Therefore is there any logic in asking funds now from PF optees only?
3. In the Pension Regulation 1993/1995 there was a clause stating that pension will not be paid to those employees who participates in any strike. In 1999, this clause has been removed, but no fresh option is given to PF optees to join pension scheme then. Why?
4. In Railways and RBI fresh options were given to employees to join Pension Scheme several times without asking single paisa. Then why in Banks, Employees are asked to contribute towards Pension Fund?
5. If all the employees would have opted for Pension in 1996/1995 itself, how banks would have managed Pension Fund?
6. In State Bank of India three retirement benefits are being given to employees. viz. PF+Pension+Gratuity. In Public Sector Banks only two benefits are available. Even for that second benefit Employees have to pay in every wage revision settlement. Does it mean Bank Employees are not given two retirement benefit, but they are given only 1.5 benefits i.e., half of what SBI employees are getting?
7. When SBI associate banks are merged with SBI, Govt. is ready to extend Pension Benefit to those Employees of associate banks without asking anything from employees. Where from money comes to meet this additional expenditure?
8. Banks are ready to incur expenditure to the extent of 14% (10% of B.P. +D.A) towards PF for new recruits from 01.04.2010, but not ready to pay more than 10% for PF optees. Why?
9. Pension Regulation 1993/1995 provides for paying pension only on superannuation, i.e. after 60years of age only, but at the time of VRS2000 it is modified /amended to give pension to even employee of 40years. Because of this act of Banks only, Pension fund dried up. Is it not true?
10. Hence, we PF optees feel principle of natural Justice is denied to us and it is clear cu violation of fundamental Law of Equality before justice granted by Constitution of India to each citizen of India. We appeal to both IBA AND UNIONS to re-open the settlement and take corrective measures.
We hope BANKS AND UNIONS WILL ANSWER THESE QUESTIONS!

Saturday, July 31, 2010

Banking Division Minisry of Finance

Leaders on whom lies the fate of an organisation or trade union or a state government or a country have become lover of flattery, have become lover of money and lover of high post without merit. Root cause of all mishappenings, irregularities, fraud or cheating lies in nothing but flattery which shuts the eyes, ears and mind & heart of leaders. Leaders become self cantered and sacrifice the interest of the masses for whom they are meant. They forget God and minimum moral and religious values. New record of corruption will precipitate if a total investigation is made into what Shiela Dikchit has done in Delhi. When a person becomes popular he becomes more prone to bad habits and there are more chances of committing fraud with the system.
Corruption cannot end in India until government takes harsh steps to stop flattery. Yes man and bribe give equally responsible for rampant corruption and for damaging the right course of action. Looting of money from a person through bribe is less harmful than looting of pride, self respect of service men or businessmen or professionals. All is well sir or No Problem sir culture is killing the enthusiasm of real workers, real Indians and real businessmen because flatterers by dint of their actions hypnotize the top officials and ministers and get success in getting undue benefit or up gradation in service or better posting and quick promotion in service at the cost of many genuine workers.
CVC as such cannot stop corruption said to be rampant in work done for Common wealth Games in Delhi because they also become victim of this disease. CVC has to survive in the same system where perpetuators or corruption are sitting at the helm of affairs. Officers at vulnerable and responsible post at CVC or CBI or audit offices are chosen from a team of best flatterers. CVC has to be bold enough and has to stop corruption in transfers, posting and promotion as also in recruitment processes of government employees and bring about maximum transparency, eliminate the channel of Interview which gives rise to whimsical and biased decision. When honest and sincere officers are shunted in remote areas or posted in insignificant corners it is but natural that such officers will prefer indulging in flattery than wasting energy in good work.
CVC or for that matter Government of India has to make judicial process quick, affordable effective and honest so that victim of the system may approach court without any fear of repercussion. Fear of punishment may only keep flatterers and corrupt person away from the system. Similarly media has to take pro active and innovative initiativesto expose corrupt practices, conduct sting operation and do all acts deemed fit to expose the mischievous elements occupying top posts in government offices, ministry , banks, insurance companies, CBI, vigilance department, judiciary, tax departments etc who sell transfer, posting and promotions in service sector or who willfully torture and blackmail a good businessmen who do not flatter or bribe an officer.
Dkjain49709@rediffmail.com
30.07.2010

Saturday, July 24, 2010

Pension pension pension

It is a great pleasure that Canara bank has at least and at last realized that they have committed contempt of court by recovering 2.8 times of November 2007 salary inspite of stay granted by Madras High court. It is astonishing that other banks are still silent spectator of what is happening in various courts and without any shame or hesitation filing one after other submission in courts justifying the unjustified, discriminatory, divisive and condemnable clauses of 9th Bipartite settlement which completely goes against the interest of PF optees, retired or serving or resigned ..

I take this opportunity to sincerely condemn union leaders who were shamelessly busy in recovery of levy from their members despite the fact that their major portion of arrear was looted by the makers of the said agreement. I once again condemn those union leaders who filed counter affidavit in Madras High court even after mass protest against the said agreement and focused entire energy in making money from their own members and who feel no shame in extending a Farewell gift of five lac rupees to one of union leaders who retired from one of PSU banks in the last month from the fund of union. I condemn union leaders who are growing richer and richer at the cost of hard working members.

That is why I like to say that the most painful and disgraceful story is that of union leaders. It is very much disheartening that union leaders who are meant to fight for the welfare and benefits of employees in general are working against bank employees in nexus with top officials of bank management . A few union leaders sold their moral values in the hands of management and hijacked the unity integrity and militancy of bank employees. These so called protectors have become rather damagers, Munsi Prem Chand ji told " Jab Rakchak hi Bhakchak ban jaye to vinash nishchit hai".

Union leaders have damaged us to a great extent and it is their mischievous role that management succeeded in cheating a section of employees. There are many such leaders in banking industry who are earning money even in posting, transfers and in promotion by working in collusion with members of Interview panel. Bank employees have to exert their all efforts to weed out such mischievous leaders and select a really good team of devoted workers. Court cases are practically not possible by any individual when there is unjustified rejection in promotion process or undignified posting or transfer violating even existing transfer policy. But in te present case of whimsical decision in Bipartite Settlement tere aare almost three lac victims of discriminatory attitude of the management. Hence the battle may be long drawn and bitterness may also slowly grow widening the gap between the Pension optees and PF optees.

No doubt pension is a social security measure and bank employees fought a long battle for getting another option of pension and ultimately we got it. But none of employees ever thought or ever imagined that they will have to pay 1800 crores of rupees to purchase this option.

Anyway I once again salute canara bank employees who initiated the legal battle boldly in Madras, other forums formed to fight against the illegal clause of the said agreement and all employees who directly or indirectly supported the battle against injustice and organizers of various website who made the employees aware and polarized opinion of various stalwarts to make the matter more crystal clear. I hope wisdom and good sense will prevail upon other bank management also and they will also take initiative immediately to refund the recovered money.

When a branch head in a bank commits mistake he is punished. An officer in general my be punished even by giving him promotion or by upgrading him if he or she is not flatterer of his or her boss. I am unable to say what will be the suitable punishment for such CEOs, CMDs and GMs who willfully commits such horrendous mistake and who signed on the said agreement which tarnished the image of bankers. Let the punishment be decided by respected courts..

Tuesday, July 20, 2010

Question for CMD and Union Leaders

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

Answer is none.

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

Answer is none.

How many banks have issued pension offer till date and if not why have they recovered from PF optees?

Answer: None have offered pension letter, but all have recovered 2.8 times towards pension fund from PF optees.

Already three months are likely to complete after the date of settlement. Why bank is so slow on the issue of pension offer and so fast on the matter of recovery.

Similarly why union leaders are so anxious on recovery of levy of Rs.3000/ from their members and not worried for delay in offer of pension?

Union leaders are getting farewell gift of five lacs or ten lacs on their retirement from Union Fund. Is this the way to use hard earned contribution made to Unions and Associations by poorly paid bank employees?

Each Bank has been waiving hundreds of crores of rupees or sacrificing huge amount in compromise with borrowers who are not repaying loans willfully or who have settings with top officers of the bank. Banks are spending crores of rupees on advocates in contesting cases in courts.

But why are they not agreeable on bearing the imaginary load of pension? Please keep in mind that Banks are earning hundreds of crores of rupees as profit by curtailing expenses on manpower only

Days are not far when union leaders will distribute accumulated union levy amounting to hundreds of crores of rupees among themselves and ask for separate fee for each case they fight for any aggrieved employee. Union leaders are bigger blackmailers than officials of bank. Is it not true?

Are union leaders not more dangerous than our management bosses?

I say this because union leaders have threatened to expel officer from their association if they do not pay union levy of Rs.3000/ on account of so called successful historic agreement. Management never dared to issue dismissal threatening to officer employee if they fail to obey any instruction of boss.

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

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

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

Banks are now undoubtedly in the grip of flatterers. Those who are yes-men are getting timely promotion and getting best posting and in this way a team of flatterers are generated by bank management who blindly support of all action of the management right or wrong.

Even union leaders do not fight against such lollipop like promotions and transfers because they say that ultimately their members are getting promotions and cream posting or choice posting though the same may be at the cost of others genuine right.

At least veteran union leaders are enjoying posting in Metros and capital towns, they need not perform bank’s job, they may do their side business, they may take share from dirty dealings in credit decision or contract offers corruption and they may get sweet request from corrupt officers for reduction of punishment and so on. Lastly they may get huge gifts from top branch managers, big bribe earners, big customers and last but not the least huge money from union fund on their retirement and on attending an inquiry from Union Fund. Similarly union leaders now plead that the said agreement is good in the light of social security though they know and understand from the core of their heart that recovery from PF optees is not justified from any angle of consideration.

This is called divide and rule policy.

Intelligent, talented, experienced, valued and visionary leaders of bank management who occupy the important seats of core committee of IBA as also that of United Forum of Bank Unions are very well aware and they all realize from the core of their heart that injustice has occurred with PF optees, retirees and those who have resigned.

Banks in general know very well that courts cannot deliver justice in decades and decades and this is why they are least bothered of courts also. They have gained sufficient experience in Indian courts by giving undue promotions to even charge sheeted officers and by rejecting even good officers. They have invented one line to mention in all promotion letter o safeguard their skin i.e. in every circular enlisting name of officers getting promotion they used to mention “subject to court decisions on various writs going on in various courts”

In the same way IBA is bent upon making recovery from PF optees subject to court decisions. But God knows whether they will issue pension offer or not.

Reason for not issuing pension offer, bank will say they are waiting decision from courts. It is not surprising at least for me that even so called union leaders are also keeping mum on this matter for which they feel proud and say that the agreement is historic.

Last but not the least , banks are making recovery from PF optees for credit in pension fund without even offering pension offer as if employees will late refuse or fly away from bank. Anyway if they credit the said amount in pension fund pr provident fund, what is justification in deducting TDS on such amount because everyone knows very well that credit made in PF or pension fund is eligible for rebate under section 80C under Income tax act?

In short, “bank ke dono hath me laddu hai”
And
PF optees ke muhan me chuchunder hai , na to negalte banta hai aur na ugalte banta hai.

I am however unable to understand why are employees keeping mum on illegitimate recovery and bent upon getting arrear at the earliest even if it is discriminatory and even when banks are willfully delaying offer of pension option against the spirit of the said agreement?

Why are they afraid of even lodging their protest before accepting arrear payment?



Bank Employee’s Unity Zindabad?
Or
IBA zindabad ?

People have killed their inner conscience, ignored moral values and they are fearlessly committing one after other fraud, mistakes and violation of laws only because our judiciary is weak and ineffective.

Friday, July 16, 2010

Opposition parties are silent, media is keeping mum Why

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

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

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

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

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

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

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

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

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

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

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

Bank Unity Zindabad?

Saturday, July 3, 2010

Trade Union Leaders in Public Sector Banks

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

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

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

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

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

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

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

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

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

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

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

Reign of injustice prevailing in banking industry at all levels is due to the fact that union leaders are working in nexus with senior officers managing the affairs of the bank. Union leaders are more or less second side of the same coin which is known as that of management. Union leaders and higher executives in bank management are jointly looting the banking industry (there may be some exceptions)and hence they support each other's misdeeds. They jointly harass and humiliate an officer who opposes irregularities and ill works of bosses.

Munsi Prem Chand told, “Jab rakchak hi bhakchak ban jaye to nash nishchit hai” i.e. when protectors become damagers, destruction is unavoidable. And the perpetuation of reign of injustice is possible only because our legal system is not that much effective and quick as it should be. There is no fear in the mind of evil doers who are sitting at the helm of affairs. They do not fear police, they do not fear court cases because they know very well that they, by dint of money power can manage judges, and they can manage advocates and politicians. They know very well that that court will not be able to deliver justice even in two or three decades. This is why whimsical posting, transfers and promotion are taking place in banking industry without any sign of protest from so called union leaders. This is why IBA got success in committing day light robbery of bank employees Entire team of union leaders were silent spectators when Draupdi (bank employees) was facing chirharan in the hands of Kaurav team lead by Duryodhan( IBA I,e, Management)

As such, we have to first ascertain who are our well wisher and who are stabbing us in the back, who are our friends and who are black sheep. We have to distinguish between flatterer and real worker, we have to give respect to those who are working sincerely for us and we should have courage to condemn those who are beating us from the back. Who will save our life, our career, our pay scale, our status and dignity in the community of workers when our union leaders also talk of management's language, when they threaten of harsh action, when they are also trying to vacate the stay granted by Madras High court on recovery from PF optees?

It is always advisable that office bearers of an organization are changed periodically in a democratic system. At least there should be change of person every two or three years for the post of Secretary and the President in the same way as Branch head or Regional head or Zonal head or CEO of a bank is changed every two – three years.

In a democratic country like India every political parties have been changing their Presidents periodically. Prominent Communist parties change their party president every two years. Banking Industry has inherited communist culture, but it is disheartening to mention here that staff unions and associations in these banks are dependent on a few leaders who have been occupying top posts for decades. Political parties, trust or an organization or Bank union or association of officers who consider any person indispensable on top posts are really too weak to survive for long and undoubtedly prone to corrupt practices. These organizations in fact have not developed second line of management.

It will not be an exaggeration to say that union leaders in banks are now working in nexus with management. In eighties and nineties some unions of bank employees raised voices against the misdeeds of bank management, they raised voices against growing Non Performing Assets (NPA), window dressing in business, exorbitant expenses and offer of gifts to government officials for getting fund and mal practices in contractual work and so on.

As a result management started taking vindictive action against union leaders which ultimately disturbed Industrial relation and also exposed true face of so many executives.

In such critical position union leaders and management bosses shacked hands and more or less became two sides of same coin.

Now the fact is that union leaders take their share from corrupt executives ,seek support of higher officials in shielding corrupt officials, ensure transfers of employees as per sweet will (of regional heads and state leaders), ensure posting of protesting officers in remote places, manipulates auditors to provide safety to corrupt and guilty employees and so on. On the other hand top officials in the management promote unhealthy credit delivery mechanism, sanction of contractual work based on amount of underhand dealings, selling of promotions and transfers, waiver of bad loans and what not.

They select a few branch managers of few branches who are well versed in modern technique of earning bribe and sharing with the bosses. In short management officers and union leaders working in collusion with each other at the cost of health of banks and good workers in particular.

A financial Institute cannot prosper with quality and remain in good health if the persons posted at responsible and sensitive posts are not altered periodically. Wherever the same person hold sensitive posts in a bank for a longer period it is found that the bank's intrinsic value and overall quality of its assets suffers continuous erosion and the disease of corruption spread like cancer in the system. It is pity that such financial organization has become victim of corrupt union leaders and corrupt executives sitting at the helm of affairs. It is banks where whimsical promotions and whimsical posting have become a routine affair and none in banking division or Ministry of fiancé or CBI or Vigilance or any regulating agency is bothered of ground reality, of rampant corruption, persistent manipulation and framing of concocted financial statements.

It is these organizations where good persons are shunted away and bad persons are promoted and placed at cream posts so that the corrupt lobby is not questioned by anyone. It is under such bad administration that person like Rathore goes on getting promotion and respectable posting whereas on the other persons like Ruchika are forced to bear with injustice meted out to them. By the time realities of corrupt person get exposed by grace of God, it is too late. Justice delayed is justice denied. There are many Rathore like executives in banking Industry too who have been getting uninterrupted promotions and getting one after other elevation in their career (at the cost of good performers) despite the fact that they were found to be indulged in corrupt practices and they caused huge loss to banks.

Keeping in view above-mentioned bitter truth of the organization I demand those office bearers of officers association as also employees unions in all banks must be changed every two - three years. If Bank employees fail to ensure this healthy culture, perpetuation of injustice cannot be stopped and frustration among good workers will continue to rise ultimately jeopardizing the health of the bank.

I hope sensible, experienced, educated and prudent class of officers will apply their wisdom and take all possible steps to stop monopoly and dictatorial attitude of certain office bearers who have in course of time become indispensable and who are eating away fruits of hard labour done by real workers. Second line of leadership must be developed in all organization for achieving sustainable quality growth of not only assets but also that of human capital.

Monday, June 28, 2010

Reality of Bipartite Settlement in Bank

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

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

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

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

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

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

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

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

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

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

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

Reign of injustice prevailing in banking industry at all levels is due to the fact that union leaders are working in nexus with senior officers managing the affairs of the bank. Union leaders are more or less second side of the same coin which is known as that of management. Union leaders and higher executives in bank management are jointly looting the banking industry (there may be some exceptions)and hence they support each other's misdeeds. They jointly harass and humiliate an officer who opposes irregularities and ill works of bosses.

Munsi Prem Chand told, “Jab rakchak hi bhakchak ban jaye to nash nishchit hai” i.e. when protectors become damagers, destruction is unavoidable. And the perpetuation of reign of injustice is possible only because our legal system is not that much effective and quick as it should be. There is no fear in the mind of evil doers who are sitting at the helm of affairs. They do not fear police, they do not fear court cases because they know very well that they, by dint of money power can manage judges, and they can manage advocates and politicians. They know very well that that court will not be able to deliver justice even in two or three decades. This is why whimsical posting, transfers and promotion are taking place in banking industry without any sign of protest from so called union leaders. This is why IBA got success in committing day light robbery of bank employees Entire team of union leaders were silent spectators when Draupdi (bank employees) was facing chirharan in the hands of Kaurav team lead by Duryodhan( IBA I,e, Management)

As such, we have to first ascertain who are our well wisher and who are stabbing us in the back, who are our friends and who are black sheep. We have to distinguish between flatterer and real worker, we have to give respect to those who are working sincerely for us and we should have courage to condemn those who are beating us from the back. Who will save our life, our career, our pay scale, our status and dignity in the community of workers when our union leaders also talk of management's language, when they threaten of harsh action, when they are also trying to vacate the stay granted by Madras High court on recovery from PF optees?

Danendra Jain

Saturday, March 13, 2010

Who can salvage Bank

Can CMD like MVNair ensure long lasting good health of the bank with the help of bad General Managers? Can Mr. Nair portray attractive balance sheet for long without window dressing when his most of General Managers are corrupt, charge sheeted or facing CBI inquiry.

When General Managers are not of sound mind and spotless integrity, can they expect their juniors to be clean and loyal to bank? When executive holding top posts are not honest and loyal to the bank, honest and efficient junior officers in the field cannot dream of getting promotion and good posting.

This is a bank where promotions take place completely on the whims of Interviewer. Officers who do not toe the line of bosses are posted at critical places. Charge sheeted officers, General Managers, DGMs and AGMs in Mumbai or in any Metro are not transferred out of their home town. But officers belonging to other states who are not having any God father at Administrative offices are posted at such branches which were spoilt by flatter and corrupt officers and who left no stone unturned to keep boss happy through gifting of costly and precious items.

After all who can stop this unhealthy culture prevailing in a bank when person sitting at the helm of affairs are corrupt and shielded by God father in Banking Division in Delhi or RBI or Ministry of Finance. There are many Satyam like Raju in all banks. It is a matter of time when real exposure of these mischievous persons takes place. Yes it is true that by the time their exposure takes place career of many good persons will be spoilt, ruined and raped.

I have however no doubt that future generation will curse MVNair and blame his policy for the fate of bank, though MVNair as a man is very much effective, assertive and knowledgeable.

Sunday, February 28, 2010

Waiver of loan culture

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

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

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

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

Danendra Jain
Ganaraj Choumuhani Agartala 799001
1st march 2010

Saturday, January 2, 2010

Beware of CMD of a Bank

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

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

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

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

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

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

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