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Wednesday, September 17, 2014

Latest News For Bank Employees

Wage Revision Talk 17.09.2014 Over with Positive Indications, Final Round talk after week -------BY Amit, Place: New Delhi,  17 Sep 2014 
Bank Employees wage revision meeting with government concluded today with a positive signal to meet in next week for final round talk. The meeting was participated by UFBU from bank employees and IBA from govt.

Now the ball is in court of IBA, reason UFBU has shown flexibility on its demand of 25% increase in salary provided IBA revise its offer substantially with settlement of other issues of bank employees.

 It is learnt that the meeting was called on intervention of PM Sri Narendra Modi and he is fully engaged three days due to visit of Chinese President in India. Before final announcement of bankers wage revision PM consent is required as sources indicated.  Keeping in view of bank employees heartily implementation of PM Jan Dhan Yojana. It is learnt that   Sri Narendra Modi is in favour bank employees.

 As information received, earlier government was agree for increase to 11% and now government officials are agreed at 15%, but keeping in view of last settlement of  17.5% government inclined bank employees unions are in favour of settlement at higher than last settlement that is minimum 18.5%. Now new government also wants to win heartily support of bank employees then it seems to be wage revision will be finalised at or above 18.5%.

 Both UFBU and government are playing their game behind the screen, but outcome is not announced. The government may get consent of merger of banks and bank employees may get other facilities than salary and may gain 5 Day week.

 As banking industry sources said the impact of new generation bankers on wage revision may reflect and their views may be considered. The protest at Jantar Mantar on 13.09.2014 widely spread in banking industry and in media.

 UFBU and IBA neither issued any press-note or circular on the issue today.  As information received, the major things are finalised and only some issues are to be discussed.

 A senior bank employee told that the all things are not discussed during meetings, it is finalised during unofficial meetings, so these will discussed and outcome may be in favour of employees. But what ever outcome will be announced some body always protest and will say it is below expectations.

Transfer of female employees in Public Sector Banks- Minimizing their hardship
Government of India
Ministry of Finance
Department of Financial Services
Jeevan Deep, IIIrd Floor,
Parliament Street, New Delhi
Dated the August 8, 2014
Chairman, SBI/CMDs of all Public Sector Banks including IDBI and SBI Associates

Subject: Transfer of female employees in Public Sector Banks – Minimizing their hardship

 It has been brought to the notice of this Department that female employees of Public Sector Banks (PSBs), married or unmarried, when placed/transferred away from their husbands or parents, as the case may be, to distant locations face a genuine hardship and develop a feeling of insecurity. Keeping this in view, it has been decided:

i) To accommodate as far as possible placement/transfer of married female employee, on her request, at a place where her husband is stationed or as near as possible to that place or vice versa; and
ii) To accommodate as far as possible placement/transfer of unmarried female employee, on her request, at a place where her parents, are stationed or as near as possible to that place. PSBs are, therefore, advised to frame a policy on the subject with the approval of their Board suitably incorporating the above and take immediate action for implementation and compliance. Pending requests may also be considered under these guidelines. A line of confirmation may be sent to this Department immediately after adoption of the policy by the Board of the Bank.
This issues with the approval of Secretary (Financial Services).
Yours faithfully,
(Manish Kumar)
Under Secretary to the Government of India
Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2013-14 – Finance Ministry Orders
Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2013-14 – Finance Ministry Orders
No.7/24/2007/E III (A)
Government of India
Ministry of Finance
Department of Expenditure
E III (A) Branch
New Delhi, the 16th September, 2014
Subject :- Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2013-14.
The undersigned is directed to convey the sanction of the President to the grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) equivalent to 30 days emoluments for the accounting year 2013-14 to the Central Government employees in Groups ‘C’ and ‘D’ and all non-gazetted employees in Group ‘B’, who are not covered by any Productivity Linked Bonus Scheme. The calculation ceiling for payment of ad-hoc Bonus under these orders shall continue to be monthly emoluments of Rs. 3500/-, as hitherto. The payment of ad-hoc Bonus under these orders will also be admissible to the eligible employees of Central Para Military Forces and Armed Forces. The orders will be deemed to be extended to the employees of Union Territory Administration which follow the Central Government pattern of emoluments and are not covered by any other bonus or ex-gratia scheme.
2. The benefit will be admissible subject to the following terms and conditions:
(i) Only those employees who were in service as on 31.3.2014 and have rendered at least six months of continuous service during the year 2013-14 wIll be eligible for payment under these orders. Prorata payment will be admissible to the eligible employees for period of continuous service during the year from six months to a full year, the eligibility period being taken in terms of number of months of service (rounded off to the nearest number of months)
(ii) The quantum of Non-PLB (ad-hoc bonus) will be worked out on the basis of average emoluments/calculation ceiling whichever is lower. To calculate Non-PLB (Ad-hoc bonus) for one day, the average emoluments In a year will be divided by 30.4 (average number of days in a month). This will there after be multiplied by the number of days of bonus granted To illustrate, taking the calculation ceiling of monthly emoluments of Rs. 3500 (where actual average emoluments exceed Rs. 3500), Non.PLB (Ad-hoc Bonus) for thirty days would work out to Rs. 3500×30/304=Rs.3453.95 (rounded off to Rs.3454/-).
(iii) The casual labour who have worked in offices following a 6 days week for at least 240 days for each year for 3 years or more (206 days in each year for 3 years or more in the case of offices observing 5 days week), will be eligible for this Non-PLB (Ad-hoc Bonus) Payment. The amount of Non-PLB (ad-hoc bonus) payable will be (Rs.1200×30/30.4 i.e.Rs.1184.21 (rounded off to Rs.1184/-). In cases where the actual emoluments fall below Rs.1200/- p.m., the amount will be calculated on actual monthly emoluments.
(iv) All payments under these orders will be rounded off to the nearest rupee.
(v) The clarificatory orders issued vide this Ministry’s OM No.F.14 (10)—E. Coord/88 dated 4.10.1988, as amended from time to time, would hold good.
3. The expenditure on this account will be debitable to the respective Heads to which the pay and allowances of these employees are debited.
4. The expenditure incurred on account of Non-PLB (Ad-hoc Bonus) is to be met from within the sanctioned budget provision of concerned Ministries/Departments for the current year.
5. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the ComroIler and Auditor General of India.
(Amar Nath Singh)
Deputy Secretary to the Govt. of India
Source: www.finmin.nic.in
Expected DA from January 2015
Now, the next episode begins…’Expected DA from January 2015′
It is highly unlikely that there will be a two-digit DA hike in the next two instalments (January 2015 and July 2015). Kindly keep in mind the fact that despite a 6 point increase of the AICPIN from 246 to 252 for the month of July 2014, there was hardly an impact. Even if it increases by 3 points over the next five months, the DA would increase to 9% only. It is impossible for AICPIN to constantly increase in future.
We believe that, under current circumstances, the next installment of additional Dearness allowance from Jan 2015 hike would only be about 6% or 7%.

Charisma Of Modi On Banks?

As troubled assets swell, sarkari bankers pin hopes on Modi magic to do wonders-------- by Dinesh Unnikrishnan-FirstPost
The good old bankers in India’s sarkari banks are praying hard for the Modi magic to do work wonders in the real economy, bring back investments, spur economic activity and thus help improve the fortunes of their debtors.

The reason: The fate of large quantum of loans, which have gone into bad and restructured loan categories, now heavily depend on how soon the economy recovers from the ills of a prolonged slowdown.

Bankers are under tremendous pressure from the government to cut their bad debts and capital burden arising out of high provisions. "It all depends on how fast the economy recovers," said a senior banker at a government bank. He didn’t want to be named as he is not authorised to talk to the press.

To be sure, the banking system has already embarked on a battle to tackle the sticky assets and hunt down wily promoters, but that wouldn’t help to get their money back from companies, which are in genuine financial difficulties on account of economic slowdown.

Early this year, the Reserve Bank of India (RBI) released a paper that sought to change the way banks dealing with bad loans in the economy by identifying stressed cases much before they turn NPA (non-performing assets).

The central bank has also tightened the grip on wilful defaulters by making guarantors answerable if a firm is classified as wilful defaulter. Along with this, the government too has begun pushing banks to go for a witch hunt on wilful defaulters.

But, none of these really address the issue of existing stock of bad assets in the banking system, some of it is hidden in the form of restructured loans.

Here are the numbers: total gross NPAs of banks, as of end June, stood at Rs 2.5 lakh crore, while the amount of loans, which have been recast under various channels stands anywhere between Rs 5 lakh crore to Rs 6 lakh crore.

Bad and restructured loans impact the profitability of banks and their overall financial health, since these banks need to set aside more money to cover such loans, in terms of provisions.

For a loan, which has gone fully bad, the provision can be as high as 100 percent, while for a fresh restructured loan, the provision is 5 percent. The banking system is the proxy to any economy and hence, banks mirror the state of the economy.

Analysts estimate that at least 25-30 percent of the restructured loans to turn bad in the absence of economic revival. India’s economy, which grew at sub-5 percent levels for two consecutive years, is yet to substantially recover from the slowdown.

For the quarter ended June this year, India's economy grew at a nine-quarter high of 5.7 percent, compared with 4.6 percent in the previous quarter.

Growing unease

Fears of prolonged delay in revival got intensified with economic indicators painting a bleak picture of the real economy. On Friday, the data released by the government said India’s factory output grew by only a marginal 0.5 percent in July on a year-on-year basis, primarily due to contraction in manufacturing activities.

According to a note issued by rating agency Care, the contraction in growth of capital goods "denies any kind of revival in investments cycle. This could be attributed to prevailing higher interest rates, existence of excess capacity and limited demand."

Besides the slowdown on the manufacturing front, there has been no pick-up in growth of consumer goods in July 2014. More than economic factors, the biggest worrying part is that the hopes of ‘achhe din’ happening in economy with the arrival of Narendra Modi, has taken a beating, at least for now.

Banks restructure the loans of a troubled borrower through the CDR channel and through bilateral recasts. Under CDR, a troubled borrower is permitted a reduction in interest rates, a repayment holiday and an elongated repayment period. In some cases, banks also take a haircut on such loans.

CDR happens between a consortium of banks. The deal works out only when 60 percent of the banks by number and 75 percent in terms of value agrees to the proposal. Loans currently being recast through this channel stands over Rs 2.5 lakh crore, while on a cumulative basis, banks have restructured over Rs 3 lakh crore loans.

Besides CDR, banks also conduct bilateral restructuring cases, such as the restructuring banks offered for the now-defunct, Kingfisher airlines in 2010.

Here, the specifics of loan recasts are worked out outside the CDR mechanism. The size of bilateral recasts is estimated around the same as CDR numbers. Together, the figure works out to around Rs5 to Rs6 lakh crore. This, combined with the bad loans, stands Rs 8.5 lakh crore or 14 percent of the total loans given by the banking system.

Loan recast is only a temporary assistance to a troubled borrower, but the final fate of the account depends on whether the company manages to improve its financial health backed by the recast and return to normalcy.

Going ahead, how soon the momentum picks up and result in more action on the ground is highly critical for the banking system.

In the absence of a significant revival in the economy, the chunk of restructured loans can join the current pile of bad loans on the books of banks.

Already, a substantial chunk of such loans are, in fact, no better than bad assets and stay standard supported by the loan recasts.

Many such loans have been pushed to the loan recast channels under the corporate debt restructuring (CDR) channel and bilateral route, will turn bad if the Modi magic fails to lift a slowing economy.

According to data availed from the CDR cell, number of firms which have exited from the mechanism due to failure to improve their financial health despite the assistance from banks.

On a cumulative basis, number of companies exited due to failure from CDR cell stood at 130 with total loans amounting to Rs 38,686 crore, while number of firms exited successfully stood at 75 with their total loans amounting to Rs 58,000 crore.

Besides the economic slowdown, reasons for failure by companies despite having assistance from banks, can be attributed to rising number of instances of firms seeking the CDR facility for reasons that aren’t genuine. Clearly, such companies have been misusing the loan recast facility.

A lot will depend on whether Modi, who came to power with unprecedented fanfare, manages to turn promises to action.

Link First Post

Bank credit growth falls below 10% after 5 years-Business Standard

Bank credit had last grown at a sub-10% rate in October 2009 (9.01%) 
For the fortnight ended September 5, annual credit growth in the banking system fell to 9.68 per cent, data released by the Reserve Bank of India (RBI) showed. This was the first time since October 2009 (9.01 per cent) that growth in bank credit fell below 10 per cent.

R K Dubey, chairman & managing director of Canara Bank, said corporate credit demand was yet to pick up, despite an improvement in the economy. "Though the retail and small & medium segments have been growing, corporate demand has been slow. We are yet to see signs of a pick-up," he said.

Indian Bank's Association Chief Executive M Tanksale said the data reflected a slack season. He added none of the stalled projects had been revived so far.

For a revival, banks have been betting on the coming festive season, with several lenders rolling out products from August. But, as the data show, the initial demand for such promotional offers has been tepid.

Bankers said though there were some signs of a recovery, as growth in gross domestic product had risen to 5.7 per cent for the quarter ended June, these were yet to translate into a rise in demand for loans, especially from firms. In the quarter ending this month, however, they expect "genuine credit demand" from the infra segment. While there were no new projects, bankers said they expected corporate demand for additional working capital and refinancing.

The country's largest lender, State Bank of India, has cut deposit rates, as it has abundant liquidity and has seen a slower-than-expected credit pick-up. A senior bank executive said deposits had been growing at a healthy 13-14 per cent, while credit growth, at just seven per cent, was tepid.

In an interview with Business Standard, SBI Chairman Arundhati Bhattacharya had indicated the bank's credit growth in 2014-15 might be under 15 per cent.

On the deposit front, it seems the banking system is flooded with liquidity - in the fortnight ended September 5, deposits rose 13.78 per cent over a year ago.

At a pre-policy review meet, lenders had urged RBI to cut the repo rate to fuel loan growth. But RBI Governor Raghuram Rajan earlier this week said no action could be expected on that front, as inflation was still above the central bank's comfort zone.

Bankers taking too long to recognise frauds, says RBI governor Raghuram Rajan-DNA
Reserve Bank of India (RBI) governor Raghuram Rajan on Monday said bad economy, poor structuring and slowdown in the government is leading to creation of bad loans.
Speaking at the Federation of Indian Chambers of Commerce and Industry-Indian Banks Association banking seminar on Monday, he said allegations of malfeasance like Syndicate Bank cases are impacting the accretion of bad loans in the system.
"I fear that banks are taking too long to recognise frauds in the banking system. There are lots of good people in public sector banks, but need to root out the bad apples, bad practices and weak capabilities. There is a significant rise in NPAs in large projects. Let's not hide the problem, we have given a lot of forbearance to large projects," Rajan said.
Some of the big NPAs in the recent past were Zoom Developers, Winsome Diamonds, Deccan Chronicle and Mahua TV, all of which were discovered after the loot was complete.

"Many sectors in the economy get too little credit. Solution is to develop the financial framework across the board. Should a student loan to study abroad come the under priority sector?," Rajan asked, touching upon the issue of distortion in loan pricing.
Certain sectors of economy like agriculture need credit. Select special sectors need ease of credit; the biggest need for agriculture is long-term money while farmers do not get long-term loans because short -term loans are subsidised, he said.

Interest subventions and loan waivers schemes, Rajan said, would distort prices and lead to unhealthy borrowing practices.

Arundhati Bhattacharya, chairman, State Bank of India, said, "Immediately after a loan waiver scheme the agriculture credit from the banks go down as bankers expect farmers to default expecting another loan waiver. It kills the discipline that the borrowers need to have while borrowing from the banks."

Banks have to direct 40% of the total credit to the priority sector, which includes agriculture, education, rural housing, micro and small sector enterprises.
Rajan cautioned banks on duplication of accounts under the Pradhan Mantri Dhan Yojna, which he said is an internal priority as it would help in direct benefit transfers that will reduce leakage.

He said it was time that the government deregulated diesel prices in the wake of falling global crude oil prices. The fall in inflation has been consistent with RBI's forecast.

It is not just food prices that is keeping inflation high. A whole host of services like medical services, education, travel, hotel and other products are expensive, according to RBI governor.

"The industry therefore should to cut prices to bring down inflation. But will they do it?" he asked.

"I don't want to keep interest rates high. We will bring down interest rates when it is feasible. Right now, inflation is high and the priority is to bring it down, so that growth can revive. We don't have to wait till inflation is down to bring down prices, but we need to be certain that inflation is coming down before interest rates soften," Rajan said.


Tuesday, September 16, 2014

Gift Wins Business , Money And Power

My Views on Gifting to officials is as follows

I sincerely praise Prime Minister Mr. Narendra Modi for his advice given to CMDs of all banks to refrain from distributing gifts on festivals to officials of Ministry of Finance. As a matter of fact gifts worth hundreds and hundreds of crores of rupees are distributed very year on each occasion by all senior officials of each government departments, by every Head of each Public sector undertakings, by promoters of high profile corporate houses and also from political stalwarts of various parties aspiring for several types of favours from Ministries. This gift culture is root of all types of corruption in all offices directly or indirectly under control of central or state governments.

Advice has been given to chiefs of banks to stop gifting government officials. As a matter of fact Branch Manager of each branch, Regional Head or Zonal Head of controlling offices of every bank, Public sector or private sector are in habit of distributing costly gifts on many occasions to government officials of various local departments like District Rural Development Department, District Forest Office, Pollution control Department, Land Acquisition office and so on and they use to get deposits or other business gains in return of gifts.

I have no doubt in saying that lacs and crores of rupees are spent on gifting only by each office each year , not from personal pocket but from government fund or public fund to serve self interest or to gain in business. Not only bankers but all are getting huge returns in business or in tax concession or in tax evasion or in getting valuable contract orders or in getting license for various jobs or for getting high value supply order or to push inferior products in various offices by process of gifting to government officials and VIPs and thus it is they who are causing huge losses to public money and it is this culture which is the beginning of large scale corruption.

Gifting of costly jewels to big bosses for getting promotions is not new in banking . If an officer is able to give costly gold ornaments and diamond ornaments to members of Interview panel or to bosses on birth day or inaugural occasions , he is sure to get promotion to higher scale. Similarly if a businessmen offers huge gifts to bank staff and specially to Branch head and Regional Head, his proposal for credit facility get immediate sanction and with minimum hurdles. This culture of gifting is root cause of rise in bad debts in each public sector bank. If one has to take his worked done without nay hassle , he or she has to oblige key persons of the office by gifts , either in cash or in kind.

I hope Mr. Modi will slowly and gradually try to stop this gifting culture and I have no doubt this will help in controlling corruption to some extent. Real war on corruption will take place only when the government starts carrying out surprise raids ( either by CBI or CID ) at houses of top government officials and at houses of CMDs or Top officials of each bank and start punishing who are found to have accumulated huge wealth by illegal means . Gifts worth cores of rupees are given for winning the post of ED or CMD of a bank or Public sector undertaking. Gifts worth thousands and lacs of rupees are given to higher officials and ministers for getting the post of CM or AGM or DGM or GM in a bank. And when post are bought by spending money , it is but natural that these officials will get much more valuable gifts from their juniors and from their clients.

Clever officials use birth day or wedding anniversary day or festivals to oblige their seniors by gifts. They organise some function in branches and call seniors and government officials to inaugurate or to cut the ribbon. They organise meetings from time to time on flimsy grounds and call seniors to become Chief Guest and then award such guests with various gifts sometimes directly and sometimes through customers. Customers take advantage of such gifts by asking for loan and government officials parks their fund in such bank to oblige bankers offering huge gifts to them or honouring them with the tag of Chief Guest.

GOI will have to stop this dirty culture of gifting which leads to flattery and bribery . Mr. Narendra Modi will have to take a lead in this respect if he really wants to reduce the level of corruption and to save the nation from corrupt officials.He will have to stop political leaders of his own party first gifting seniors and media men. The culture of obliging political leaders by gifting costly items when they come to inaugurate any big project or any meeting or any gathering have to be stopped to send a message to other departments and to give a lesson to other officials.

Charity begin from home and Mr. Modi will take a call on this soon , I hope so. It is proper to mention here that dirty gifting culture starts from offering a piece of flower or a bouquet to higher officials and VIPS  and then ends in gifting articles of crores and hundreds of crores of rupees as happened in 2G or Coal Scam or Harshad Mehta scam or CWG scam .Obviously Gift is the mother of all types of corruption .

My Views on following news is given above

Finance Ministry instructs banks not to send festival gifts to bureaucrats-Economic Times

MUMBAI: The finance ministry has issued stern instructions to the heads
of state-owned banks  not to send gifts to   bureaucrats  during the festival season, a traditional practice at Diwali, as it looks to  clamp down on influence peddling and stem the damage caused by a recent  corruption scandal.

Some insiders say the gifts are aimed at keeping  officials happy, so that the bankers can get to know about personnel changes.  The current system of top management appointments of state-owned banks is quite opaque.

Senior executives are often  dependent on finance ministry officials for information on people movements,  including their own promotions. "This is a key reasons that bankers often shower  expensive gifts on government employees," said a retired bank chief who did not  want to be named.

The letter from the finance ministry to bankers also  reflects the Modi government's determination to clean up the system that's been  rocked by corruption allegations in recent weeks. Some bankers said the arrest of Syndicate Bank  chairman and managing director SK Jain by the Central Bureau of Investigation  for allegedly taking bribes in return for enhancing credit limits may have led  the government to send the message.

There are as many as 50-60 key  government employees in the finance ministry alone and almost every chairman and  managing director is in the habit of giving gifts during festivals. Most CMDs  say this is merely a goodwill gesture.

"In fact, even large corporate houses give gifts to  government employees. Instead of asking banks not to send gifts, they should ask  government employees not to accept gifts," said a bank chief. 

Read more at:


BJP welcomes Modi's decision not to celebrate birthday
New Delhi: BJP welcomed Prime Minister Narendra Modi’s decision of not celebrating his birthday, and joined him in appealing to the countrymen to help the flood affected people of Jammu and Kashmir.

The party also hailed the initiatives taken by the central government in leading the flood relief operations in the state where lakhs of affected people have been evacuated and taken to safety after the floods.

Modi appealed to his friends and well-wishers not to celebrate his birthday and instead dedicate time and resources towards relief work in this hour of need for flood-ravaged Jammu and Kashmir.

BJP secretary Shrikant Sharma said the BJP-led NDA government has taken a number of initiatives for flood relief in the valley and added that the party will follow the directions of its president Amit Shah in helping the affected.

He said the party president has asked all MPs, MLAs and public representatives in the state to collect relief material and contribute in the rescue and relief operations.

Sharma said that the country should unite in helping in the rescue and relief operations.

Narendra Modi pulls up minister for gifts to journalists-Times of India

NEW DELHI: He is supposed to be among those who enjoy the trust of Prime Minister Narendra Modi because of his familiarity with complex policy matters and the ways of big business. That the PM likes this young minister is borne out by the importance of the portfolio he handles.

However, that could not buffer him against Modi's displeasure for having deviated from the policy discouraging distribution of freebies. The minister has handed over gifts to journalists covering his ministry. Although the gifts were rather inexpensive and would have been politically kosher in earlier times, they failed to pass muster with the PM who recently acknowledged being a "hard task master".

Sources said the PM confronted the minister at the meeting of the Cabinet, rejected the explanation and made his displeasure known. "This is unacceptable," Modi is learnt to have said as he frowned upon the infringement of the "zero tolerance" policy he has laid down.

PM Narendra Modi calls off birthday celebrations, will meet Chinese President in Ahemdabad

New Delhi: Prime Minister Narendra Modi today appealed to friends and well-wishers not to celebrate his birthday and instead dedicate time and resources towards relief work in this hour of need for flood-ravaged Jammu and Kashmir


Modi's appeal came amid plans to celebrate his birthday on September 17 across the country, including in Gujarat where he will be present that day. "I am hearing from different places that friends & well-wishers are planning various programmes and events for my birthday. My humble request - do not celebrate my birthday.


Instead, dedicate yourselves towards relief work in Jammu and Kashmir through your time and resources. The need of the hour is to stand shoulder to shoulder with our sisters and brothers of Jammu and Kashmir," Modi said ahead of his 64th birthday.


BJP workers had planned a celebration for his birthday, they wanted to thank him for leading the party to a historic victory but after Modi’s tweet the workers have dedicated themselves to the accumulation of aid for the Jammu and Kashmir flood victims.


Modi is set to arrive in Ahmedabad on September 16, PM will reach the Ahemdabad airport on Tuesday afternoon, this will be Narendra Modi’s first visit to Ahmedabad after taking over PM’s post. Gujarat’s BJP government has planned a grand welcome to the former CM of the state but after Modi’s tweet the celebrations will be toned down.


Events planned for Modi’s birthday


Morning: Modi, who will be in Gujarat on September 17, will start his day by taking blessings of his 95-year-old mother Hiraba following which celebrations by state administration and BJP have been planned to mark his birthday.  PM will attend a welcome ceremony at Mahatma Temple. The state government will then present the progress report of last 100 days. PM Narendra Modi will announce new schemes and policies for the state.

Afternoon: On Wednesday, September 17, Chinese president Xi Jinping will visit Gujarat, before he lands in New Delhi. Prime Minister Narendra Modi will go to receive him. Modi will then conduct a meeting with the Chinese President and the delegation from China. PM will then visit Mahatma Mandir along with Xi Jinping.


Evening: PM Modi will visit Sabmarmati Riverfront with Chinese President. Modi will  also host a dinner for Xi Jinping at the riverfront after which both the leaders will depart for Delhi.

Autonomy to public sector banks key to better credit appraisal

The finance ministry's missive to bankers to hone their skills of judging a  borrower before writing a cheque is unexceptionable. After all, a banker is paid  for making the judgement call.

It's relevant always, and particularly  now, given the huge burden of bad loans on public sector banks (PSBs). Bankers should be  extra alert in their credit appraisals, both in terms of granting new loans and  monitoring loans sanctioned earlier.

Changes in credit appraisal norms are are due, indeed. However, the reality is that government ownership of banks does  come in the way of viability of loan applications being assessed in a purely
professional manner.

Letting PSBs function as independent entities is  the key to better credit appraisal. And that calls for systemic reform. RBI  governor Raghuram Rajan rightly wants the government to stop meddling in banking  decisions. It should give them full operational autonomy.

State  ownership is fine, at 

Doubt On Wage Revision

Can any one predict or guess correctly what is going to happen in today's talks with IBA? ( Copied From Facebook , Sangharsh Karo  Groups)

I am stunned and surprised that many of us still hope and dream of getting fair wage increase. There have been rumours about signing of settlement with 18.5% increase, some have gone up to 19.5% increase. While making such speculation, hoping and dreaming, people are not paying attention on following facts:...

 (1) IBA started with 5% offer and did not jump to present 11% outrightly but offer has reached to 11% in three gradual steps. How one can expect that offer would jump by 7 to 8 percent immediately? I have a talk with my trade union friends on top of unions. Even they are not aware of move of IBA but our friends spreading the news are. If these friends can be believed, there may be improvement of 3 to 4 percent at the maximum. That means 15% increase in pay slip cost at the maximum

 (2) While making speculation, our friends are forgetting the hidden agenda of UFBU relating to Pension.

 (3) IBA during initial stages while providing figures from consolidated balance sheet has provided figure of Actual Pension Cost and has made it clear that against 6000 Crore estimated by actuary, actual pension cost is around Rs.59000 Crore, thereby necessitating sharing of 30% cost by bankers as agreed and settled during 9th BPS. ��

(4) The tactical move by IBA of placing before leaders the cost of pension has compelled and forced these leaders to devise some clever formula as they had devised during last BPS by delaying the settlement to such period of time as is required to cover sharing of 30% pension cost from arrears.

 (5) Our leaders are from a specific group of Bank Employees i.e. Who are either already retired or going to retire during 10th BPS. Thus, their concentration is on updating pension and for which exercise is going on behind the doors.

These are my personal observations based on informations received from close friends on top of two unions. Let us wait for official information coming in the Form of SMS from our leaders which would prove how much I am correct in making assessment.


we have to think what is the purpose of collecting levy by unions out of the arrears payable to employees and is it ethical.

In this background we have to think We have been observing that hundreds of comments appeared against CMD of Syndicate Bank taking percentage for giving favours or granting loans. CBI calls it bribe. If a govt servant asks ...
a cut in bills sanctioned or sanctioning house plan, khata or any other work he is bound to do in normal course we condemn it as it is unethical and corrupt. 

 A unions is authorised to collect monthly subscription of each member and the same is regularly deducted out of salary. Is this not sufficient to manage the affairs of Unions? If thiis is not sufficient unions have to make out a case before members presenting facts and figures and find out the shortfall if any and arrive at how much each member can contribute towards running union affairs and make it public. Contribution should be voluntary.

Negotiations are part of the normal duties and obligations of Unions and unions cannot claim any share of arrears payable consequent to such negotiations. They can ask members to contribute towards union fund if it is required. But taking a percentage is same as CMD taking act out of loan granted/restructured and govt servant taking a percentage for sanctioning bills.

Compulsorily collecting without the consent of employee is unethical and unwarranted. Even if they add words like membership and other charges in membership form that is not excuse.
However few years back employees objected when management wanted to deduct one day salary for some good cause.

 This unethical percentage business must stop and unions can collect donations from members.

Unions should be transparent then only they can question management.

JSOMA SHEKARAjsomasekara2007@gmail.com

New Tools of Moral Pressurizing can change Old Strike Tools---- by Kamlesh Chaturvedi

Strike is recognised as most effective tool of the workers for creating pressure and forcing the management to accede demands of the workers. Experts of the trade union movement have advised that strike as a tool must be sparingly used as last resort when other avenues and options have been exhausted. I see ...bank employees particularly young bank employees demanding that UFBU must give call for indefinite strike whereas UFBU has been giving call for Strike for one or two days. Its high time to think how effective weapon of Strike is in achieving the demands of workers particularly for service industry like banking industry?

Over a period of time, bank managements have learned to deal with our weapon of strike. Due to advancement and use of modern technology, strike has not remained as effective as it used to be years back. Use of ATM, internet banking, mobile banking etc have reduced its effectiveness. It affects on common people more severally than affluent business class of society. Salary of striking employees gets deducted under No Work No Pay rule. This reduces establishment cost of banks. When Strike ends and workers resume working, workload of strike days pile up on them and they have to complete the same. So a question must peep into our minds that what is the use of weapon of Strike which causes us monetary loss while doing and completing the work of striking days? Should not we think of new, unique and more effective tool to pressurise and achieve our demands.

In the meeting held on 13th September 2014 at Jantar Mantar, Kamlesh ji has given a braod idea about what he has got in mind. Here he has elaborated the idea and given his views as to why we need to think out of box as other party is already well equipped to blunt the weapon of strike. There is a need to adopt tactics where general public is put to minimum inconvenience but ripples are felt in the city and media. In each metro, UFBU may choose One to Three branches of each bank in each metro / state capital for continuous work and staff members of other branches after closing their branches by 6.00  PM reach the nearest protesting branch. Even family members of workers who are on hunger strike join in evenings. Let this kind of protest be peaceful protest. Explain the reasons for protest to customers and request them to join the same after the working hours. Large customers who have good relations with staff may agree to join themselves or send their staff as a good will gesture in support of the demands.
एक थी भानमती जिसने कुनबा था जोड़ा
कहीं की ईंट थी तो कहीं का था रोड़ा
यूएफबीयू की नौ यूनियन की परस्पर विरोधी विचारधारा
अपने दायित्वों से बचने को लेतीं ये यूएफबीयू का सहारा
ऊपर संग संग मिलते एक दूसरे को गले लगाते हैं
नीचे करते घात प्रतिघात एक दूसरे को निबटाते हैं
अच्छे का तो श्रेय लूटते बुरे के लिए दूसरे पर ऊँगली उठाते हैं
इस तरह यूएफबीयू के नाम पर ये एक दूसरे को बचाते है
वास्तविक एकता कायम करने की ...
जगह यूएफबीयू बन गयी बड़े नेताओं की ढाल
यूनियन की मीटिंग में अपने को सही दूसरे को गलत ठहरा चलते कूटनीतिक चाल
अगर यूएफबीयू है एकता कायम करने वाला संघठन तो अपनी यूनियन इसमें मर्ज़ करवाओ
इसको बैंक और निचले स्तर तक बनवाओ और नेताओं की जवाबदेही और जिम्मेदारी तय करवाओ
बहुत हो चुका खुद अपनी वाह वाही और दूसरे को जिम्मेदार ठहराने का खेल
बंद करो ये दोहरी मानसिकता का बैंक कर्मियों को उल्लू बनाने का परस्पर विरोधी विचारधारा का मेल

Monday, September 15, 2014

RBI Suggests Total Change In Bank's Recruitment And Promotion System

I Danendra Jain reiterate  They ,officials of RBI or MOF preach sermons but do not follow. Appointment process of officers of all ranks , not only that of ED or CMD need drastic change. Not only this promotion process is fully misused by corrupt top bankers and the same should also be changed without no loss of time. Not only this , Politicians use even banks for parking their rejected political friends in  boards of various PSUs including banks as Director or government representatives. This dirty culture must be stopped .Top officials of various government departments, RBI and various  Ministries play prominent role of promotions of officers from one scale to higher scale .

Top officials like CM,AGM, DGM, GM, ED, CMD ,Auditors are normally men of VIPs. Even IBPS give values to recommendations of various VIPS when they select persons for the post of even clerks and officers in banks. Corruption, nepotism, caste based promotions, flattery and bribery is deep rooted. Entire system has to be cleaned and this need strong will and support of all. Similarly loan sanction process is full of malpractices from bottom to top level. Let us see how RBI Governor alone can reform the dirty culture of banks.

Raghuram Rajan's 9 point suggestion for Public Sector banks -DNA
Reserve Bank of India ( RBI) Governor Raghuram Rajan has given a 9 point mantra to rejuvenate the future of public sector banks. According to Rajan, public sector banks have tremendous resources which must be used in the right way.

Rajan was speaking at a banking conference organised by the Federation of Indian Chambers of Commerce and Industry (FICCI)in Mumbai on Monday. He said the RBI had commissioned the Nayak report, and the bank is in dialogue with the government for implementation.

Here are nine suggestions that Rajan said would need to be implemented for PSU banks:

1. Public Sector banks must first be independent to make commercial decisions. Social mandates or obligations have to be backed by financial gains, but for any project   one must take into account the bank's societal profit or loss

2. The position of CEO and chairman has to be separated to put a process of check and balance,
3. The length of CEO tenures must go up as that would help them take better strategic decisions,
4. The appointment of the CEO or chairman has to be more transparent, and based only on merit,
5. Boards of banks have to be more empowered to hold the bank management accountable,
6. Regulatory hassles of everyday banking must be reduced. The board must have enough time to do important work and not exist just to tick boxes,
7. Compensation of bank boards must be improved and revised to ensure that the very best people can be brought on the board,
8. Human resource development is a central challenge. There is a gap in middle-level management which has to be addressed through lateral hiring, better training etc. This is essential for public sector banks,
9. Use of technology must be increased to make banking easier and improve efficiency of the banks.
Link DNA

Need to change appointment process in state banks: Raghuram Rajan-The Hindu 16.09.14

Reserve Bank of India (RBI) Governor Raghuram Rajan said on Monday there was a need to change the management appointment process in public sector banks to make it more transparent.
The central bank is in talks with the government to improve governance in public sector banks, Dr. Rajan told a banking conference. He said problems that have emerged in recent bank scandals were due to outsourced project evaluation.


Dr. Rajan said “It’s time govt de-regulate the diesel prices in the wake of falling global crude oil prices.”
The RBI Governor further stated that the falling inflation is consistent with RBI forecast.
Dr. Rajan said “‘Jan Dhan’ is a good scheme and its target should be universal reach and not speed and numbers.”
He further reiterated that the recent scandals call for better internal evaluation of lending process. Dr. Rajan said “banking must become more engaged and informed.”

Latest news:
T M Bhasin, chairman and managing director of Indian Bank, was on 20 August 2014 elected as the chairman of Indian Banks Association for 2014-15.
Bhasin will be succeeding K R Kamath, who is also the chairman and managing director of Punjab National Bank.
UCO Bank chairman and managing director Arun Kaul, Oriental Bank of Commerce head S L Bansal and ICICI Bank managing director Chanda Kochhar have been elected deputy chairpersons of the association.
State Bank of India chairperson Arundhati Bhattacharya is the honorary secretary of IBA for the year.

(I Danendra Jain feel  They ,officials of RBI or MOF preach sermons but do not follow. Appointment process of officers of all ranks , not only that of ED or CMD need drastic change. Not only this promotion process is fully misused by corrupt top bankers and the same should also be changed without no loss of time.

Politicians use banks for parking their rejected friends in  boards of various PSUs including banks as Director or government representatives.

Top officials of various government departments, RBI and various  Ministries play prominent role of promotions of officers from one scale to higher scale .Top officials like CM,AGM, DGM, GM, ED, CMD ,Auditors are normally men of VIPs.  Read news and my views given after news items)

My comment on above news is submitted below.

Some Old News related to Mr. Bhasin are submitted below:

Locked out of car, Indian Bank CMD Mr. T M Bhasin slams door on regional head Being locked out with car keys inside may be a common mistake, but a senior executive of a public sector unit (PSU) bank could pay with his job for it for the person left stranded was his boss.

The Mumbai Zonal Manager of Indian Bank, Banabihari Panda, has been suspended for failing to provide "minimum basic courtesies" to the bank's Chairman and Managing Director (CMD) T M Bhasin on his arrival at Mumbai airport from Chennai last Thursday night. The charge faced by Panda, who holds the rank of General Manager, is that he kept the CMD waiting at the airport for over an hour as the keys got locked in when luggage was being loaded into the car.

Cobrapost fallout: Indian Bank suspends employeeChennai, May 9:

State-owned Indian Bank today said it has suspended an official who is accused of wrong doings by an online portal in an expose.

The bank has also initiated the exercise to bring all operative accounts with it under KYC norms.

Indian Bank Chairman and Managing Director, T M Bhasin said here that the bank has placed under suspension R Manohar, Assistant General Manager at the South Delhi branch, for giving "hollow" advices to public.

"I got the information about 11.30 am on that day and immediately I went through the entire Webcast. He has given ’hollow’ advices...by hollow advices he has given wrong information. And since he has given such wrong advices, we took a call on suspending him," Bhasin said.

On Page 18, the Times of India’s Chennai edition dated August 31 2013 has a news item says:

The Central Vigilance Commission (CVC) has sought action against Indian Bank CMD TM Bhasin and former ED V Ramgopal for "high-handedness, arbitrariness and manipulation" of appraisal reports of Malay Mukherjee, a general manager in the bank, with a view to deny him a promotion.

While the finance ministry has not initiated action against the two executives, the CVC has also sought action against Shreya Guha, a director in the ministry, for lapses in conducting enquiry against Bhasin and Ramgopal. For the finance ministry, this the second embarrassment in less than a month as the watchdog was critical of the role performed by the Appointments Board in recommending M O Rego for the post of IDBI Bank deputy MD, the report further says.

Seeking regular departmental action (RDA) against the two top-raking Indian Bank executives, CVC had told the finance ministry that Mukherjee's performance for 2009 had been reviewed by the then ED A S Bhattacharya and M S Sundarrajan, who was then the CMD of the Chennai-headquartered bank. Bhasin and Ramgopal were not required to appraise Mukherjee for 2009-10 as he had not worked with the two executives, the report adds.

The Central Vigilance Commission (CVC) has sought action against Indian Bank CMD T M Bhasin and former ED V Ramgopal for "high-handedness, arbitrariness and manipulation" of appraisal reports of Malay Mukherjee, a general manager in the bank, with a view to deny him a promotion.http://dkjain4970901092007.blogspot.in/2013/08/cmd-indian-bank-and-ex-ed-caught-by-cvc.html

My Views on Appointment of ED and CMD in Banks is as follows

:    Likewise you may trace out several news related to other five key members picked up for IBA and reflected in first paragraph of this letter.

Recent FD scam of Dena bank and OBC is adequate to enlighten on the nature and character of top level officials.

Investigation into wealth of top ranked officials named above by CBI and old files of CVC will tell enough about these fellows who have been given the charge of IBA and one of them is proposed for the post of CVC too.

We have in the recent past seen the scam of bad debts in United Bank also . Bad debts in United Bank has set a unbreakable record in NPA and there may be much more bad debts hidden . This bank has been headed by above officials in the past and misdeeds of them have surfaced now . When a Chief of a bank sanctions loan to a bad company after taking bribe in cash or in kind , such accounts remain standard as long as the sanctioning officer remains as chief of that bank. But as soon as new incumbent joins as CMD of such bank, real volume of NPA surfaces.

If CBI is entrusted the task of investigation into past of bad debts of U Co bank, United Bank, Indian Bank etc where above mentioned officials ( picked up for key post of IBA) have served in various capacities such as ED, CMD, GM or DGM, real root cause of volume of bad debts in these banks will come out and there is no doubt that onus of loss caused to these banks will come on them.

You should try to discover who are top officers who damaged the fundamental of United Bank, U Co bank, Indian Bank, Allahabad Bank, Central bank, PNB, SBI and stop blaming current chiefs of these banks or accusing global recession or economic slowdown or lack of risk management training to seniors.

Volume of NPA in SBI or in PNB is more than 5% and the same came to public domain when real guilty officers got retired from the bank. This happens almost in all banks, Heads of United Bank who worked during last ten years caused all loss and got promoted to higher level . If all banks declare NPA strictly as per RBI norms , I hope volume of bad debts will go up from 4 % to 24%

You will have to stop  culture of promoting and awarding person who are responsible for bad health of many banks if you really and sincerely like to improve the health of public sector banks. You may not be right in saying that banks may improve if Top officials of all banks are advised  to undergo training of Risk Management before they are picked up for the post of ED or CMD of a bank.

The bitter truth is that officers from scale I to scale VII all are well trained in risk management and they are supposed to be trained for safety of any bank. Because all loan proposals good or bad emanate from branches only where these junior or mid-level officers work as Branch Head or Credit processing officer. Top Officials have to be master in tools of risk mitigation. But it is not that corrupt officials of banks which came to light in public domain during last five years were unaware of risk mitigating mechanism. It is only due too their greed for money , power and status they the resorted to bad lending and caused loss to bank by adding more and more NPA .

The moment corrupt officers from top office gives instruction to subordinate offices for sanction of loans to persons and companies of choice of top officials , junior and mid level officers ignore all risk mitigating steps and recommend for sanction of credit without any murmur. Even a person expert in credit skill and risk management think it better to remain silent spectators of bad lending and ignore negative points of the credit proposals.

As such there is no linkage between training on risk management and bad lending. Rise in bad debts in PS banks to a great extent is due to the fact that almost all top officials have been able to occupy top post only by evil ways and means. Flattery and bribery only make a person successful in his career. UPA government led by Congress Party promoted culture of flattery and bribery only. This is root cause of worsening health of PS banks.

I am fully confident that new government led by Mr. Narndra Modi and Ministry of Finance led by a person like you will change the culture .

The first step in this direction will be to introduce culture of  promotion strictly based on seniority. Bank needs maturity earned by experience and not mere passing of interview or possessing some degrees.

Second step will be to peep into past record of at least 100 current top officials and 100 retired officials followed by CBI inquiry into at least 20% of such officials to assess their wealth and punish them if found guilty of having disproportionate wealth compared to their earnings. This will send a good message down the line and help in inculcating good culture in branches and controlling offices working under Central Office .

Third step should be to carry out through scrutiny of files of top 50 borrowers of each bank to understand whether the reasons of loan account categorised as bad debts are genuine or it is only bribery, ill-motivated decision and negligence of sanctioning and monitoring officers.

Fourth , it is necessary to ascertain the role played by team of Chartered Accountants who prepared Financials of bad companies and bad banks and if found guilty of committing wilful mistakes , such CA must be brought to task immediately.

Lastly it is the need of the hour to strengthen , rectify and purify the legal and administrative machinery which are supposed to play major role in recovery of bad debts from bad borrowers and wilful defaulters. You will have to stop misuse of banks b politicians too.
I hope you will at least wait till CBI places before you investigation report on episode of scam related to Syndicate Bank, OBC and Dena Bank , reports submitted by RBI of forensic audit of United Bank and Allahabad Bank and reports precipitated b inquiry made by CBI and MOF on forgery in appointments of chiefs of various banks . You should know how marks of Yes-men and corrupt officials are fraudulent inflated in Annual confidential reports and Interviews . Such manipulation though takes place in all promotions taking place in banks from Scale I to Scale II , scale II to III, III to IV and IV to V , V to VI and finally scale VI to Scale VII. But I would like to focus on least fraudulent and ill-motivated transactions taking place in appointment of ED and CMD of banks.

Last but not the least , bank employees who were waiting for Achhe Din are disappointed to see recent exposures and latest developments in banks, your comments on bank scams, fraud in appointment and interview and bribery episode . Please look into genuine cases of good officers so that growth in credit is not adversely affected in the larger interest of the country but do not spare bad officers who are tarnishing the image of government banks and causing huge loss to stakeholders in PS banks.

Bank employees can imagine the fate of wage revision in the hands of newly appointed IBA Chairman Mr. T M Bhasin who had suspended his General Manager only because he could not open the gate of car of CMD when he reached Airport ( read full story below). It is he who suspended several employees when his bank was exposed by Cobrapost. God knows how cases related to T M Bhasin lodged with CVC has been closed.

I lastly may say that Mr. Bhasin has been awarded for his boldness in suspending his GM ranked officer for failing to open gate of his car on his arrival at Airport and suspending several employees when his bank was exposed in Cobrapost Disclosure.

Young Bankers On Warpath

Our Struggles
-------------------By Sankaran Srinivasan
There is no alternative to continuous and arduous struggles
Banking exposes us to all aspects of human life. But what is it does not teach us, is the fact that outside the  Bank, we are no body. We deal with people from a position of Banker, but not when we are like any body else – “the common man,”. It is in crisis, such as strike, struggle that we learn to tackle people from the position of common man.
Agreed that strike is painful labour without wages but it will deliver fruitful result not only in the form of pay wages, but also in the form of self-development and recognizing our hidden strength. It also enables us to introspect and remodel – we get an opportunity to show our subtle potentials. Those of us who remain dormant, either because of overwork or otherwise, get a chance to show our talents in various fields. The responsibilities relegated to us help us to develop our personalities. The strikes have given us an excellent opportunity to reaffirm our status. The status, which will grow forever.
During this phase we have seen and experienced the incredible. We dared to do the things, which we would not have dared in a lifetime.
The struggle and strikes have given us strength, power, and lion heart to combat every battle of our lives. Times will change. The future generation of Bank Employees may not even remember us, but for us, this experience is a bouquet of ever-fresh memories of things, which we gained and lost in this struggle. This phase will pass away. But the struggle will never end.
I am proud  of the  relentless campaigns& symbolic  protests  conducted by young Turks   irrespective of union affiliations , without prejudice  to the cause of unity,  in pursuit of our just demand of justifiable wage hike at par with central government employees in the  10 bipartite , 5 day banking to balance  work life balance  which will spruce up  efficiency  of the bankers , conserve  energy and saving in exchequer  for the government   , are something historic in the annals of organized trade union movement of the bank  employees .
Friends, once again we remind you that the future at hand may soon loom red before us and we must brace ourselves to cope with trials and problems of what would be stern and terrible times of mergers and acquisitions, Re- privatization moves of government. We should do with assurance of ever growing strength and unity. We should do so as future unionist and bankers of good will. We should do with bold heart and good conscience.
Success will be ours
Dare to struggle dare to win 

Agitation by Young Bankers - A Small Beginning and Long Way To Go-By Rajesh Goyal

A large number of our readers, specially the young bankers must have been waiting for 13th September, 2014, as for last few weeks our social media relating to banking sector was abuzz with the new movement.   So, finally the D-Day arrived and the days of preparations by young brigade resulted in demonstration at Jantar Mantar at Delhi.  
Although I did not have specific invitation to join the agitation, but being the karta-dharta of  AllBankingSolutions.com, I felt this to be my moral duty to go there and assess for myself the happenings at the venue and if possible encourage the new movement.     Therefore, I reached the spot around 3.10 PM.   Let me give my readers some interesting facts to which I am only privy and not the younger generation.    This was the place where I have visited hundreds of  times  (if not thousands) as in mid and late 1980s I was posted at a Branch which was hardly 300 yards away and at it was during that period that Jantar Mantar bus stop was created here (Now that has been shifted and this place is used only for demonstrations) and I used to board my bus from here for my home every evening.  The re-laying of the whole area and opening of the small shops selling south Indian foods were inaugurated  in front of us and we were among the first few customers to have tasted that street food.   This is now almost 30 years old story and there will be only few to vouch this.    Thus, I felt totally comfortable in the environment and there was nothing new for me in the surroundings.
When I reached the venue, the demonstration was on the verge of starting as dias was being cleared of the crowd so that the formal speeches for demonstration could be started.   The sun was shinning with full flow and thus I took a chair on the side footpath under tree and decided to watch the proceedings to have my own assessment of this movement.  Being non-affiliated to any of organisation, this was the best strategy.
A glance at the crowd, clearly indicated that it was a certainly a Young Banker demonstration as I could see only five / ten  senior bankers in the crowd.   The crowd had just started swelling.  This being a crowd of young bankers, I was hopeful that nobody will be able to recognise me as there were non of my colleagues.   I was sure that I will be able to cover the proceedings without being noticed.  
Soon speeches by young bankers associated with the movements started and these bankers were from across the country.  Most of these speakers shouted slogans and created the necessary environment for such a start.  After that some senior leaders (all those I have seen  for first time) were called on the stage.
At this stage, suddenly a young man approached me and asked me whether I am Rajesh Goyal.   Immediately I realised that my hopes of covering the event as an Aam Banker are over.   These are the perils of putting your photo on the internet.   Thus, I too was called on the stage.    I hesitantly decided to go to stage as I felt refusal my be taken as running away from the responsibility.    Surprisingly, I was given a warm welcome as a majority of these young bankers could recognise me immediately.   Different speakers (some of them from known unions) were called one by one for giving the speeches.  I am some of these speeches will be available on youtube and our readers will be able to listen to most of them.  Therefore, I am not going to discuss individual speeches.   Below I give my own overall impressions about this new movement, which some people may not like it.   However, I have tried to be impartial as I do not have leaning for any particular group or association or union.   Let me share my, free and frank impressions,  of the whole event which I witnessed from the stage :-
  • It is the first movement at all India level in the banking industry after a long time, which has the potential to snowball into a bigger movement PROVIDED it remains focused;
  • This was fairly good gathering of beyond 500 bankers and can be called successful  as it was  called by a people who are first timers for such events;

  • It was all around young movement and seniors were missing from the movement;

  • There was lot of energy and enthusiasm among the bankers at the rally, which is rarely seen at such demonstrations.  The way slogans were shouted and hands raised is a rare phenomena at bank union rallies, specially in recent times.

  • A Memorandum was got signed from the bankers who have come to rally and around 5.00 PM was sent to be submitted to FM, and later on  it was informed that receipt for the same will be available only on Monday i.e. 15th September, 2014

  • A press Release was issued to people who have come from press to cover the event.   Usually Press people ignore such agitations, but the group seems to have managed press well and was able to ensure that actual news is published / shown on some of the TV channels and national dailies (e.g Times of India ). Press Release asked for immediate settlement of wage revision and equalizaion of pay and allowances with central government.  It also demanded minimum wages for canteen boys.

  • The stage was managed well and there were no hick ups.  

  • There were also young women bankers, many of  who continued to remain there till the end of the demonstration.

  • However, there was no clear cut thinking or what is the next step that will be taken by this young brigade.  They were not sure to term the protest against UFBU or their leaders or against IBA.  It was in doubt whether a new union / association has been formed or what will be the status of this new group.  These were the major gaps.

  • The speakers who addressed the gathering had no clear cut instructions as to the boundaries within which they have to speak or the agenda they have to stick.   Thus, most of the speakers drifted to their own agenda and spoke in different voices.  All the speakers should have been asked to keep their affiliation talks separately and talk only on wage revision for 10th BPS.  It is possible that the organisers were forced to call some of these leaders to get the political support.

  • In the absence of any specific agenda, I spoke only the purpose for which we are running our website i.e. for creating awareness among the bankers on issues of their interest which includes wage revision and knowledge updation for young bankers.

  • At the last Kamalesh Chautrvedi was given a chance to speak, but the crowds had thinned by then.   It was inspiring speech and was independent of his affiliations with other groups.   He advised the young bankers for the need to be focused and create their own path.  He give them an out of box idea i.e. to protest in the branches on continuous basis by keeping them open on 24x7 hours where family members come to branch in evenings and join them in demonstration.   The idea is difficult to implement but if done with proper planning, it will shack the bank administration and MoF / GoI, and if forced to issue order that branches to be closed after office hours, it will give a relief to officers from late sitting !!
Thus, in nut shell, I would say it is a great attempt by young brigade but lot of hard work and planning needs to be done for  future events.   In the press release they themselves admitted that it was a symbolic portest.   To be successful and counter the existing unions, it will not be advisable to exclude the senior bankers altogether.    You can fight and make rules that there should not be any retired leader and people beyond the age of 50+ should not be more than 25% in the Committees, but to fight for only young brigade will be more difficult to sustain as it can lead to frictions and clash of interest.   Therefore, there is a need to sit down and draw up new strategies based on the experience gain in their maiden attempt.
Let us see what are the ripples of the movement and what effect it has on the forthcoming negotiations - may be they have hastened the same, and half cooked settlement may be in the offing ?????  Mr Kamlesh rightly told that we do not what is being cooked by UFBU leaders to counter this new movement.  Anyway, things will unfold in a week's time
Views of Kamlesh Chaturvedi
My views on first challenge before you-Form or not to form an union ? What    to do?

I have already expressed my views on the above point while speaking at Demonstration at Jantar Mantar but for the sake of clarity, I outline my considered opinion for the sake of clarity and with a view to help and assist young bankers to consider them and take a decision after weighing these options to them:

(1) You can't achieve any thing unless you are well organised and working as team. You have decided to challenge existing forces which are well organised as units. This calls for considering various options you have to achieve the objecting of organising yourself and working as team for concentrating efforts to secure objective.

(a)  Formation of the union is no solution to bring about the change and yield the goal of equality with central government employees you have set for your agitation as at the most you will just add one more number of unions in the existing 11 unions negotiating for and on behalf of the employees. When these unions which were formed to oppose existing unions could not bring any change, how can you? So in my opinion you must vanish the formation of any new union to organise itself because it will land you no where in present circumstances.

(B) Remain in your present unions and form a group inside the union to pressurise and challenge them from inside the union. There are pros and cons of this option. Main benefit is that you would be having the weapon of challenging your top leaders of negotiating against your sanction at appropriate form. Secondly, you would protect yourself from dirty game which unions play in getting those harassed and victimised who leave the union. Main drawback of this option is that you will be counted as supporting the union on paper.

(C) Quit your present unions for the time being clearly mentioning in your resignation that you are resigning in protest against the present leadership who is not pressing your demand of equality and indulging into percentage game. This option has all the pros and little draw back. Pros are: you will no more be counted for supporting the union which is negotiating against your wish. This will reduce their strength and consequently the money which they are getting from you regularly. This money you can divert for running your agitation because you will require money to organise yourself and espouse your cause. You will no longer be paying any levy. Only small cons is that your union would try to get you harassed and victimised. I think this not such a drawback which must worry you. First they have not remained as powerful to dictate management to act on their direction. Secondly, you have your young colleagues and people like me to help and assist you to come out of the muddle created by union.

(D) Make offer to existing unions placing conditions such as they must come out of the UFBU to espouse your cause and would not sign any settlement which does not incorporates achievement of your demand plus they must give equal representation to young bank employees on top of the union. This is the best solution provided any union agrees to your demand.

You need to hold small meetings at places you are working to convey and propagate your demands. You must not confine to young members. You must be wide enough to ask any working employee to come with you if he agrees with you. You need to develop local leaders to take care of you guys and to co-ordinate and implement action programmes you decide at apex level.

Think and give your options. Its too easy. Just righting of a, b, c or d in your comments 
 Effectiveness of Strike as tool to create pressure By Kamlesh Chaturvedi

Strike is recognised as most effective tool of the workers for creating pressure and forcing the management to accede demands of the workers. Experts of the trade union movement have advised that this tool must be sparingly used as lost resort when other avenues and options have been exhausted. I see bank employees particularly young bank employees demanding that UFBU must give call for indefinite strike whereas UFBU has been given call for Strike for one or two days. Its high time to think how effective weapon of Strike is in achieving the demands of workers particularly for service industry like banking industry?

Over a period of time, bank managements have learned to deal with our weapon of strike. Due to advancement and use of modern technology, strike has not remained as effective as it used to be years back. Use of ATM, internet banking, mobile banking etc have reduced its effectiveness. It affects common people more severally than affluent business class of society. Salary of striking employees gets deducted under No Work No Pay rule. This reduces establishment cost of banks. When Strike ends and workers resume working, workload of strike days pile up on them and they have to complete the same. So a question must peep into our minds that what is the use of weapon of Strike which causes us monetary loss while doing and completing the work of striking days? Should not we think of new, unique and more effective tool to pressurise and achieve our demands.

I wish to share my experience of using a new and unique tool which we have been using for the last 10 years at local level inspired by preachings of Mahatma Gandhi ji of giving pain to yourself to force wrong doers. This tool works like this:

Serve Notice on IBA that from a particular day bank employees would work continuously and uninterruptedly without any break and without any food to pressurise for realisation of their demands.

Thus, agitation starts from the day mentioned in the notice. In the evening after one hour of the end of working hours, family members of employees also assemble at branches stating that only bread earner of the family is forced to face conditions of starvation and they are here to take care of him. With Cash open and no day end, pressure starts building up. First management asks you to vacate the premises as it is trespass to occupy branch premises after working hours. Then police is called and employees exchange their views with police officials politely. Because it is an united and concerted action guaranteed under Constitution of India, police officials just request you to remain peaceful. You immediately attract the attention of people and media because it is something new and unique. As the time passes by, desired pressure is build up forcing management to enter into dialogues.

We may use this weapon. In the beginning this may be resorted at only one branch of several branches of the bank where employees of other branches would also assemble along with family member to form a big mob to attract maximum attention.

Think of this tool and most effective weapon which would not cause you any monetary loss and which pressurises the management quickly in comparison to strike.
Also Read News On Agitation at Jantar Mantar

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Human Resource Policy In Banks

Why BankStaff Are Unhappy and Angry Over IBA And UFBU