Wage Revision AND NPA

What is the link between ‘Wage 

Revision’ and ‘NPA Reduction’? 

By Sri Pannvalan 

There is a growing clamour that so long as there is a high volume of NPAs in banks, bank staff cannot aspire to get a decent wage revision.  Even many bank staff themselves have started believing this shallow and unfounded logic. I wish to say one thing to all of them.

If it is insisted that the NPA position must be brought down to 'Zero' or near zero level, bankers must demand that the central government employees shall not be paid any salaries at all (leave alone hikes), until and unless -

1. The central government brings down the current account deficit to 'Zero' (CAD was at Rs.216,000 crores for 2013-14 as per the news item in NDTV Profit on 21-05-2014.

See this link –

http://profit.ndtv.com/news/economy/article-indias-current-account-deficit-may-come-down-to-2-3-per-cent-of-gdp-in-fy15-citi-389022

2. The central government brings down the fiscal deficit to 'Zero'. (Fiscal deficit was at Rs.519,529 Crores for 2013-14 as per the news item published in various newspapers).

See this link –

http://zeenews.india.com/business/news/finance/indias-cad-expected-to-come-down-to-32-billion-chidambaram_98435.html.

3. The central government recovers the huge tax arrears due from big industrial houses, large corporate groups, MNCs and high net worth individuals (HNIs), in Income Tax, Service Tax, Customs Duty, Excise Duty, Property Tax etc. in full (Income Tax arrears alone stood at Rs.580,000 crores as at the end of March, 2014).

http://www.livemint.com/Politics/r4AlO3OGuDhBUj5SEQgBtJ/Direct-tax-arrears-of-58-trillion-bigger-than-fiscal-defic.html

4. So far, the central government has passed on various concessions and exemptions from duties and taxes to all major industrial groups in the country and loss/sacrifice arising out of such concessions and exemptions is estimated to be Rs.45 lakh crores during the last 10 years of UPA rule (2004-2014). This is in addition to similar exemptions and concessions extended by various state governments for which no dependable statistical data is available.
5. Finally, the central government recovers all the losses incurred in Coalgate, 2G Spectrum, Commonwealth Games Scam, Adarsh Housing Scam, Westland Helicopter deal and all other scandals involving trillions of Indian Rupee. 

See these:

http://en.wikipedia.org/wiki/List_of_scandals_in_India#2014).

http://www.thehindu.com/opinion/editorial/behind-the-sband-spectrum-scandal/article1200374.ece

Let us not unnecessarily make ourselves responsible and accountable for big ticket NPAs, because such NPAs were not our creation.  Let us not commit ourselves for recovery of a major portion of outstanding NPAs, as a pre-condition for a decent wage revision. I wish to reiterate here that any such action from our side will only be suicidal and it will be a great disservice to the entire banking community. I request everyone to shed this thought forthwith.  Let us not fall into the trap laid by our adversaries at this moment.

I very strongly condemn the mischievous elements amongst us, with firm conviction and full force at my command.

Date: 21-05-2014                                                                                                                  pannvalan