Flip Cart Search

Tuesday, June 30, 2015

Bank Trade Union Leaders Opt For NO Levy

The Massage of Comrade GV Manimaran Gen Secy Of Canara Bank Officers' Association to all the Comrades on LEVY.......

Mother of all Surprises

When we are basking in the glory of unprecedented rental increase, here comes the "Mother of all Surprises"


Our GS Sri. Manimaran's decision not to charge levy from the members on the 10th Bipartite arrears is not only unprecedented but Historic in every sense of the term.

Never In the history of any trade union such a decision is taken. It shows not only complete transparency in the organisation but also faith in the membership.

Friends, a few days back some of our members thought of giving letter to the Bank not to take levy from their arrears, getting confused by a trade union who decided to charge 4% levy from its members! Then our GS has left the decision to the members who overwhelmingly come forward to contribute!

But our GS has something in his mind and he has been indicating of some surprise!

Here comes the Biggest surprise !

Imagine friends when some other trade unions have become greedy and collecting huge levy, here is a leader who tells his members that he is comfortable with his funds and forego the levy that too when the organisation is in the midst of conducting hundreds of activities regularly and especially through CANPAL.

The decision of not collecting Levy is something extraordinary and simply great and Sri. G V Manimaran deserves all the kudos for this bold and historic decision.

Jagadeesh JS
Central Liaison
Ranvir Malik Writes on Sick Bank
UPA in 10 years of it's misrule gave us "SICK COMPANIES but no defaulting promoter was labelled "SICK PROMOTER". Default to repay on the part of major business houses is many times more than the Income Tax deparyment contributes towards GDP. The article below is an eye opener

"The total write-offs of loans made by the commercial banks in the last five years is Rs. 1,61,018 crore, which is 1.27 pe...
r cent of the GDP," said Mr Raghuraman Rajan. "1.27 per cent of GDP would have allowed 1.5 million people to send their children to get a full university degree from the top private universities in the country, with all expenses paid. That's the size of the write-offs that we are talking about."

India's banks confirmed worrying trend: of total loans of Rs. 63 lakh crore, non-performing assets (NPA) or defaulted loans stood at 4 per cent. Restructured loans make another 5 per cent and along with stressed loans (repayments due for more than 30 days), the amount of bad debt in the economy was Rs. 14 lakh crore, about 20 per cent of all advances.

Lanco, which announced 11 power projects in that period, has an outstanding debt estimated at around Rs. 36,000 crore. Such a scorching pace of expansion resulted in huge amounts of debt on the books of every major infrastructure player: Adani (Rs. 81,000 crore), Ambani (Rs. 1.13 lakh crore), Jaypee (Rs. 63,000 crore), Essar (Rs.98,000 crore) and so on. The debt estimates are from a 2013 report by the Swiss asset management company, Credit Suisse.

Between 2007-2013, as the debt of Essar Group's power subsidiary shot up from Rs. 15,000 crore to Rs. 52,000 crore, so did the debt in the rest of the company's verticals - rising from Rs. 10,000 crore to Rs. 46,000 crore - according to Credit Suisse estimates.

RBI Governor Raghuram Rajan has warned against this vicious cycle. In a speech in November last year at the Institute of Rural Management Anand (IRMA) in Gujarat, he said, "Too many large borrowers insist on their divine right to stay in control despite their unwillingness to put in new money. The firm and its many workers, as well as past bank loans, are the hostages in this game of chicken - the promoter threatens to run the enterprise into the ground unless the government, banks, and regulators make the concessions that are necessary to keep it alive. And if the enterprise regains health, the promoter retains all the upside, forgetting the help he got from the government or the banks - after all, banks should be happy they got some of their money back! No wonder government ministers worry about a country where we have many sick companies but no 'sick' promoters."
CVC recommends prosecution of two EXIM bank officials-DNA
The Central Vigilance Commission has recommended prosecution of two senior executives of Export Import Bank of India (EXIM bank), the country's premier export finance institution, for their alleged involvement in a corruption case being probed by the CBI.

The Commission advised issuance of sanction for prosecution in respect of two officials last month, it said in its monthly performance report.

The CBI had sought sanction to prosecute the officials, who are now working at the level of Chief General Manager and Assistant General Manager, for their alleged involvement in a corruption case. The CVC has approved the agency's request and asked the bank to give approval to prosecute the two, a senior CVC official said.

The probity watchdog has also advised major penalty against 107 officials, including 16 working with Bank of India, 11 in Oriental bank of Commerce and ten in Punjab National Bank, the CVC said.

Besides, CVC has also advised slapping major penalties on seven officials each of Canara Bank and Central Board of Excise and Customs, six each of Bank of Baroda, State Bank of Bikaner and Jaipur, Railway Ministry, Delhi Development Authority and HMT Ltd, and five officials each in Central Bank of India and Corporation Bank.

The Commission had processed 2,009 complaints (including 50 whistle blower complaints) last month and sought investigation report in six complaints from the concerned ministries, the report said. It effected recovery of Rs 1.71 crore during May after conducting technical examination of procurement and other works done by ten government departments, the Commission said.

It is reported in newspaper Today that United Bank of India has been placed at Top in the list of banks having more stressed assets compared to their total advances and in comparison to private banks

If a person read news about banks regularly , he is aware that banks like State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Union Bank, Oriental bank are considered as stronger banks whereas banks like United Bank of India, Central Bank of India , Uco bank, Indian Bank, Dena Bank, Vijya Bank are considered as weaker bank. Even two to three decades ago, banks like United Bank of India, UCo Bank, Indian banks were considered as weak bank and were on the verge of merger with so called stronger banks.

Government of India has been making promising year after year and quarter after quarter that health of public sector banks is good and regulating agencies like RBI and Ministry of Finance is closely watching the performance of these banks. As a matter of fact , actual health of these banks never improved by virtue of any change in policy or change in controlling offices. It is the art of manipulation which helps some banks to show good performance in some quarters and bad performance in some other quarters. Some of Chiefs are purely looters and some are less looters. Some banks have been exploited by politicians to greater extent and some are to lesser extent due to some reason or the other. Some of Chief are blind flatterer of Ministers and some are less Yesman. In fact there is no improvement in work culture and no change in attitude of politicians in using bank for vote purpose.

Unfortunately , Government of India has never taken any step to improve the health of PSU banks. On the contrary , ruling party has always tried to exploit these banks for political advantage. Sometimes they prescribe Loan Mela for growth of bank and sometimes they build pressure for write off of bad loans. Sometimes they build pressure on banks for priority sector lending and sometimes for lending for growth in infrastructure in the country. Sometimes the prescribe brainless expansion of branch network or ATM network and sometimes they ask for opening of accounts or doing insurance business.

It is they who have damaged the banking culture from grass root level and injected corruption and malpractices in PSU banks. It is they who use banks to garner votes and then it is they only who accuse banks for lesser profit compared to banks. When Financials of PSU banks reflect signs of weakness compared to peer private banks, they prescribe certain change in policy or change in Chief of banks, but dirty culture of exploitation of bank never stops.

Due to continuous exploitation of PSU banks by politicians , health of these banks have consistently moved from good to bad and bad to worse. GOI has to provide capital support from time to time. Even then the health of banks do not appear to be improving, rather it is deteriorating quarter after quarter. Volume of stressed assets in weakest bank United Bank is reported to be 21.5% and that in strongest bank SBI is more than 15%. This is the statistics which is published by these banks and which is accepted by RBI too.

If correct assessment of quality of assets of all PSU banks is done by an unbiased agency without any fear of repercussion or punitive action, I am very much sure that volume of stressed assets will be around 50 percent of total advances or approaching it.

And the matter of concern is that no concrete step has been taken by any agency to stop this uptrend in stressed assets. Quality of lending has not improved. Quality of workforce promoted to higher level is not based on ability to perform or based on seniority and experience but purely based on flattery and bribery. Similarly quality of recruitment in PSU banks has faced erosion year after year during the regime of reformation launched since 1991. So called merit oriented promotion policy or recruitment set up has failed to ensure merit at any level, rather it has promoted demerit.

Obviously , on the one hand banks are appearing to recover bad loan , on the other they are adding many more times of it as new bad loan. They are unable to control loss caused by frauds and stressed assets. It is all because neither management of banks are honestly doing corrective and reformative work, nor are government officials or ministers taking any concrete step to stop further deterioration in quality of assets and quality of work force.

Unless and until there is change in culture and mindset of people who work in bank and who monitor and regulate them ,there is no hope for improvement in health of ailing PSU banks. GOI will have to decide whether banks are to be used as tool to fulfil social objective or to be left free to earn profit and profit only. Similarly , bank officials have to decide whether they are meant to serve their organisation or they are to served their bosses and bosses only.

United Bank of India tops list with highest bad loans among PSUs -Hindu Business Line--29th June 2015

United Bank of India has topped the list of public sector lenders with maximum bad loans including restructured assets as a percentage of total advances.

According to the data provided by the RBI to the Finance Ministry, United Bank of India’s 21.5 per cent assets are either bad or have been restructured to save them from turning non-performing assets (NPAs).
The other banks that have significant amount of gross NPAs and restructured loans include, Central Bank of India (21.30 per cent), Indian Overseas Bank (19.40 per cent), Punjab & Sind Bank (18.74 per cent) and Punjab National Bank with 17.94 per cent as on March 2015.
State Bank of Patiala, Allahabad Bank, Oriental Bank of Commerce, UCO Bank and Dena Bank all have bad and restructured loans in excess of 15 per cent.
The rising bad loans have been a major concern for the Reserve Bank as well as the government and steps are being taken to deal with it.
Most of the restructured loans are from the corporate sector. The top-30 defaulters are sitting on bad loans of Rs 93,769 crore, which is more than one-third of the gross non-performing assets of PSU banks at Rs 2,55,180 crore as on March 2015.
There are four kinds of restructuring. The first and foremost is restructuring of advances extended to industrial units, restructuring under Corporate Debt Restructuring and restructuring of loans extended to MSME as per RBI guidelines.
However, banks have their own operational rule for restructuring of small loans.
The RBI has not prescribed any board or bank level position at which these loans need to be approved


  1. Any news about kolcutta high coUrt decision outcome as united bank board was to decide on 100%DA neutrilisation in consiltatioI am ready to fight the case in supreme court .kindly gUide how to proceedand how to get funds.better it would be to unite and request Supreme court to please decide case in short time as all retires are too old to live long and Goi And IBA andBanks have huge funds of public to spend to hire very senior advocates to fight case and if decided in favour of Retirees then have the power not to honour the decision of court knowing very well that retirees are too old and poor to get the orders implemented soon. Mercy pelition be filed in supteme court immedately

  2. Any news about kolcutta high coUrt decision outcome as united bank board was to decide on 100%DA neutrilisation in consiltatioI am ready to fight the case in supreme court .kindly gUide how to proceedand how to get funds.better it would be to unite and request Supreme court to please decide case in short time as all retires are too old to live long and Goi And IBA andBanks have huge funds of public to spend to hire very senior advocates to fight case and if decided in favour of Retirees then have the power not to honour the decision of court knowing very well that retirees are too old and poor to get the orders implemented soon. Mercy pelition be filed in supteme court immedately

  3. eToro is the #1 forex trading platform for beginning and advanced traders.