The way government is moving, the way Sri Vinod Rai thinks, the way Finance Minister Sri Jaitley ji and Dy FM Sri Sinha ji are visualising stressed assets and declared No Performing Assets NPA of banks, the ways they suggest to clean bank's balance sheet, the way they are protecting looters and shielding erring officers, they way they turn their blind eyes on political exploitation of PSU banks I may say without hesitation that volume of NPA in banks will continue to go up and up and real guilty will never be punished , rather they will continue to get promotion after promotion as usual.
I may say that government may alter the colour of bad assets, they may put carpet on malady, they may change the bottle of wine,but they cannot reduce NPA, they cannot reduce malady and they cannot change wine of the bottle. Government may sell bad assets to ARC or convert them into bonds or different forms . They may force RBI to change definition of NPA or force banks to restructure bad assets or may indirectly advice banks to indulge in evergreening of stressed assets.
Banks may write off bad debts to hide their evil works . Banks may compromise with bad borrowers and sacrifice huge interest of banks in the name of cleaning balance sheets. But they cannot put brake on ever increasing slippages and cannot contain ever rising trend in bad assets.
Banks can give quickest promotion to their Yesmen but cannot nsure quality in lending.They can post good officers to critical places and reject them in promotion processes, they can recruit officers at higher packages from campus and they can employ thier kith and kin in the name of specialists but cannot improve quality of working and honesty in working in banks.
Because the evil culture of promotion to flatterers , promotion to bribe earners and evil culture in lending are deep rooted . Officers as well as politicians from top to bottom are birds of same feather. They all are busy in making their own career bright and prosperous instead of protecting their bank. Irony of the entire episode is that looters are standing in disguise as savers.
Officers in Bank care more for their bosses and politiicans care more for their vote bank as also for their families , friends and relatives. Honest officers in general are few in numbers in all banks and they are never united in raising voice against injustice. On the contrary bad officers are united strongly to protect each other when they are trapped and when their evil works are exposed. Good officers are either sidelined or they keep them aloof from bad officials to save their skin and to protect their families from unbearable agony .
Thieves cannot suggest ways to catch thieves.Looters cannot disclose modus operandi of their loot . They canot dig their own grave by telling truth behind ris in stressed assets in banks. It is always easy and safe for them to put blame squarely on economic recession and global slowdown . This is why no reduction in stressed assets is visible though officials, ministers and RBI dignitories use to conduct meeting every quarter to discuss ways to contain bad debts and they appear to make efforts for improving health of banks for decades and decades
As long as Government and RBI consider causes of sickness as medicine to cure sickness, there is no doubt to me that sickness of public sector banks will continue to detriorate and remain critical till it finally collapse. Government can infuse capital year after year because it is easy to punish innocent taxpayers and depositors than to punish bad bankers, bad borrowers and bad politicians.
God too cannot help them who do not want to be helped. Bankers are not as interested in improving health of their bank as they are interested to improve and brighten their own career and own fortune. They keep their accusing fingers towards political environment or economic policies or sectoral weaknesses. Corrupt officers and politicians are in general good aurators and they use their speaking power to motivate their mentors.
Private banks are as unhealthy as public sector banks. Private banks are little better only because they do not blindly follow the dictates of evil minded politicians and do not blindly put into effect their ill-motivated plans.However irregularites in use of precious resources of their bank are more dangerous and they too are sitting on bomb of bad assets as their counterpart in public sector banks are.
RBI has neither will to control Bad HR practices and bad lending practices prevalent in these banks nor do they have adequate manpower to discharge their duty as they used to do before launch of reformation era.
In general RBI officials are also victim of same culture of flattery and bribery as officials of PSU banks are.
Employees in banks can spend crores of rupees in extending red carpet welcome to their bosses and distributing gifts to their masters. They can waste hundreds of manhours in making preparations for giving king like worshipping to their bosses during their visits in their area , but do not have time to ensure quality in lending and perfectness in making efforts for recovery of dues from defaulting borrowers.
Let us wait till good senses prevail in regulators .
Public sector banks have added bad loans or Non-Performing Assets (NPA )worth Rs 2.41 lakh crore for the last six months i.e. from September 2015 to March 2016. This is a 69% rise in bad loans over the last two quarters. In September 2015, the figure stood at Rs 349,113 crore, but at the end of March 2016, it was Rs 590,772 crore. The Reserve Bank of India had ordered an asset quality review at the end of the last financial year to assess the situation. Following chart reflects NPA figures of only 10 banks.
SBI 72.73% (Rs.98172 crore In March 2016 from Rs.56834 crore in September 15)
PNB 122.81% ( Rs.55581 crore in March 16 from Rs. 24945 crore in September 2015)
Bank of Baroda 70.91% (Rs. 40521 crore in March 16 to Rs. 23710 crore in September 15)
Canara bank 125.65%
Indian Overseas Bank 54.70%
IDBI Bank 68.55%
Banks in general are in bad health. Some banks declared bad debts in finacial year ended March 2016 and some other banks declared part of bad debts before March 2016 . Still good volume of bad debts are concealed by clever bankers by using various tools like restructuring or evergreening or rephasing . They will come out in coming quarters .
Volume of NPA is more than 10 percent of their total loan book in six banks , namely PNB, BOI, BOI, IOB, IDBI, CBI ad Uco bank. Other banks are approaching near 10 percent. This pathetic position of so called strong banks has come to light in public domain only when RBI conducted Asset Quality Review of 150 accounts during March 2015 to Sept 2015 and built pressure on involved banks to treat all those accounts as sub standard (NPA) which has been found under stress by RBI officials.
Otherwise , all those accounts though bad were always certified as good accounts in preceeding years by team of auditors who use to carry out internal audit, concurrent audit, statutory audit and RBI audit from time to time of banks . Even now , I may add here that if all banks strictly and honstly follow RBI norms of classification of assets, NPA ratio may rise even above 50% in some banks.
One may dream of a position when RBI conducts audit of all loan accounts which run in lacs and crores in number. Management of PSU banks as also that of private banks has been treating even bad loans as good loans for years and decades.
When some of their bad accounts exposed in the eyes of RBI officials, management of these banks tried their best to convince RBI Governor Mr. Raghuram Rajan to give them time or to change RBI norms of identification of NPA accounts. But RBI Governor did not bow down and continued to maintain his position that either banks should recover the overdues and remove irrgularities immediately or treat them as NPA.
Lastly RBI allowed banks to classify those bad loan accounts which has been pinpointed by RBI as NPA in phased manner, partly in December 2015 quarter and partly in March 2016 quarter. This is why , part of 150 accoouns coming under perview of AQR of RBI were treated NPA in December 2015 and part of it in March 2016.
RBI has further advised all banks to declared all hidden bad debts as NPA by the end of March 2017 and start action for recovery of dues from defaulting borrowers.
Here it is important to point out that all banks are audited by team of vetern Chartered Accountants every quarter and none of CA team thought it wise to say bad loans as bad . They did not consider it necessary to insist that bad loans be classified as NPA.
Why?
Because CAs earn lacs and crores of rupees in lieu of giving certificate of good health for bad accounts. It is team of these corrupt CAs who use to give certificate of good health to every banks every quarter after receipt of costly gifts and red carpet welcome by clever and shrewed officias of these banks.
It is Chartered Accountant who gave certificate of good health and best corporate governance to Satyam Computers till its promotor Mr. Raju declared ongoing fraud in the system. Global Trust Bank was given the award of best bank in a year and next year the same bank booked unprcedented loss of Rs.1200 crore , lost its networth and finally merged with a PSU bank. More than two decades have passed after these two exposures, but government did not take any action to stop malpractices .
During last three decades , many banks failed , many Regiona Rural banks failed and many cooperative banks failed, but the then government did not think it wise to change the evil culture of blindly trusting corrupt auditors. Similarly government took no lesson from Harshad Mehta stock scam or Ketan Parekh scam .
Majority of Charterd Accountants in our country sell their signature .It is open secret. They are least bothered of correctness of accounts. They know how to manipulate sale figure, how to hide profits, how to distribute income by forming fake companies and so on. They know how to prpare a foged balance sheet to cheat bankers.
It is CAs who teach tips of tax evasion to business men and it is they who teach how to create black money by avoiding tax payment. It is they who prepare financial statements as per whims and fancies of business houses and collude with Income tax officials to help business houses in saving income tax payment .
It is Chartered Accountants who prepare Balance Sheet and Statement of Profit and Loss account as per will of business men , as per value of loan needed and to suit the loan proposals submitted to a bank for getting finance .
It is CA who are undoubtedly and totally rsponsible for increasing stress in bank assets , for increasing black money in Indian economy and for remitance of money in illegal ways to foreign banks by way of inflated export or import.
And to add fuel to fire, bank officials also work in nexus with CAs to sanction loans to unscrupulous business houses so that they may earn bribes and get promotions quickly .
Our government has established a culture of trusting blindly on certificates of Chartered Accountants for all accounts, on rating of companies by rating agencies and certification of rectification submitted by various banks and PSUs. Even government departments manage certificates of good health from CAs and take a sound sleep even though they drain out crores and crore of rupees to serve their greed and cause loss to government by hundreds and thousands of crores of rupees.
Hundreds of scams have been brought to light during last ten years , but none to Ministers ever took proper steps to effectively deal with evil culture and to stop corrupt practices . Because persons sitting at top posts are mostly birds of the same feather. They are nourished in same evil environment of flattery and bribery.
All Public Sector undertakings or private companies use CAs to hide their evil work, their fraud, their corrupt practices. Government preaches sermons to all to maintain transparency in action and in accounts but in practice there is none to cross check correctness and genuinity of certificates submitted by auditors.
As a matter of fact , majority of officials working in banks or in PSUs in general are clever and corrupt and hence they protect each other from punitive actions and isolate good officials from mainstream so that their reign of injustice do not face any hurde. It is an established culture for decades and decades. They have so many lame excuses to get rid of punitive action against for their evil work and they use pressure from top officials and ministers to close their files related to irregularitis and that of corruption.
In addition to present volume of stressed assets, declared or hidden , A whopping Rs 1.14 lakh crore of bad loans have been written off by 27 public sector banks (PSBs) during FY 2012-15
For the fiscal ended March 2015, public sector banks have written off loans amounting to Rs 52,542 crore, an increase of 52.6 per cent over the previous fiscal, as per the RBI data.
These 27 banks had written off Rs 34,409 crore in 2013-14 while Rs 27,231 crore in 2012-13. So in aggregate, a staggering Rs 1.14 lakh crore were written off in the last three fiscals.
If we take into accounts, sacrifices made by banks in interest , it will become clear that about ten lac crores of interest amount has been sacrificed in arriving at compromise settlement with defaulting borrowers during last five to ten years .
I am submitting below news published four years ago which expressed concern on rising NPA in banks. In fact , Government did not take any action to stop rise in NPA in Banks, other than making false promises year after year.
NPA levels in 2011-12 highest in 5 yrs: RBI-Business Standard-02.102012
Net NPA ratio for private banks declining for last 3 years
The banking system’s non-performing assets (NPAs) in 2011-12 were the highest in the last five years, according to Reserve Bank of India (RBI) data. Net NPA ratio in 2011-12 stood at 1.28 per cent, with the net NPA ratio of nationalised banks (excluding State Bank of India, or SBI, and its associates) crossing the one per cent mark for the first time in the last five years, at 1.43 per cent. At 0.68 per cent, the ratio was the lowest in 2008-09.
As a matter of fact culture of hiding bad loans started from the year 1991 when our country adopted the policy of reformation, privatisation and liberlisation. Culture of sanctioning loans by organising loan mela to serve political interest of political parties is older than that .Politicians started exploiting banks for personal gain after natiolisation of banks. Unfortunately same culture still persists in some form or the other. Politicians first used banks for poor and downtrodden. Then they started using banks for development of infrastructure and other high value projects in which government is suppposed to invest.
Since government use their resources in distributing freebees, charities, aids and subsidies to please various sectors of the society to enhance area of their vote bank, they are left with only one alternative , that is to use bank's short term fund for long term projects . It is they who created asset liability mismatch in banks. It is they who created liquidity problems for banks by gradual reduction in SLR and CRR.
Government cannot increase taxes on rich classes because they are source of political fund. They canot reduce subsidy of poor because of loss in vote bank. They usually face scarcity of resources to cater to public demand of freebees. It is only banks which has been used by politicians to increase their fortunes and hence banks have to suffer losses and there is no hope for any improvement until there is change in attitude of politicians.
From time to time , paticularly on the eve of general election , ruling parties announce waiver of loans to attract voters in their fold. Then opposing parties make promises that if they are voted to power , they will write off small loans of farmers and traders . This has adversely affected repayment culture.
This is why , I use to say that politicians are more responsible for pathetic health of public sector banks in particular and all PSUs in general.
Even judiciary do not give value to court cases filed by banks to recover money from defaulters. They add fuel to fire. Large scale corruption in courts and use of political power in recruitment of judges and transfer of judges have created an impression in the minds of clever defaulters that neither banks nor courts can recover money from them until they have got political patronage ,they know that all are manageable.
Time has come to fix responsibility on all who have directly or indirectly contributed in creation of bad assets and in creation of black money in the economy. Government has to understand differenc between man made problems and natural problems. If we continue to make lame lame excuses to justify fraud and corruption , we maynot cure the sickness of banks , nor of any PSU or any government department.
It is necessary to award honest performers and it is equally necessary to punish erring officials and specially to those whose intention is bad. It is necessary to stop politicians exploiting banks for vote bank . It is necessary to stop and punish politicians who build pressure on banks to achieve imposed target in short time just to please Ministers.It is necessary to stop top bank officials to advise branch officials on phone for sanction of loan as per their sweet will.
We have to stop totally target based lending . We have to stop organising loan melas to please Ministers and politicians. We have to stop culture of loan waiver schemes. And we have to activate judiciary so that money is recovered from wilful defaulters in fixed time frame.
WE Have to learn to give value to honesty and sincereity and stop giving value to flatterers in transfers and promotions.
News Published in Indian Express on 4th June 2016 --RBI review unearths Rs 2,41,000 cr bad loans in last 6 months of FY16
Gross NPAs have gone up from Rs 349,113 crore in September 2015 when the RBI ordered the asset review to Rs 590,772 crore by March 2016.
Rise in NPA from the level of September 2015 to March 2016 , i.e. in six months period is
SBI 72.73% (Rs.98172 crore In March 2016 from Rs.56834 crore in September 15)
PNB 122.81% ( Rs.55581 crore in March 16 from Rs. 24945 crore in September 2015)
Bank of Baroda 70.91% (Rs. 40521 crore in March 16 to Rs. 23710 crore in September 15)
Canara bank 125.65%
Indian Overseas Bank 54.70%
IDBI Bank 68.55%
Banks in general are in bad health. Some banks declared bad debts in finacial year ended March 2016 and some other banks declared part of bad debts before March 2016 . Still good volume of bad debts are concealed by clever bankers by using various tools like restructuring or evergreening or rephasing . They will come out in coming quarters .
Volume of NPA is more than 10 percent of their total loan book in six banks , namely PNB, BOI, BOI, IOB, IDBI, CBI ad Uco bank. Other banks are approaching near 10 percent. This pathetic position of so called strong banks has come to light in public domain only when RBI conducted Asset Quality Review of 150 accounts during March 2015 to Sept 2015 and built pressure on involved banks to treat all those accounts as sub standard (NPA) which has been found under stress by RBI officials.
Otherwise , all those accounts though bad were always certified as good accounts in preceeding years by team of auditors who use to carry out internal audit, concurrent audit, statutory audit and RBI audit from time to time of banks . Even now , I may add here that if all banks strictly and honstly follow RBI norms of classification of assets, NPA ratio may rise even above 50% in some banks.
One may dream of a position when RBI conducts audit of all loan accounts which run in lacs and crores in number. Management of PSU banks as also that of private banks has been treating even bad loans as good loans for years and decades.
When some of their bad accounts exposed in the eyes of RBI officials, management of these banks tried their best to convince RBI Governor Mr. Raghuram Rajan to give them time or to change RBI norms of identification of NPA accounts. But RBI Governor did not bow down and continued to maintain his position that either banks should recover the overdues and remove irrgularities immediately or treat them as NPA.
Lastly RBI allowed banks to classify those bad loan accounts which has been pinpointed by RBI as NPA in phased manner, partly in December 2015 quarter and partly in March 2016 quarter. This is why , part of 150 accoouns coming under perview of AQR of RBI were treated NPA in December 2015 and part of it in March 2016.
RBI has further advised all banks to declared all hidden bad debts as NPA by the end of March 2017 and start action for recovery of dues from defaulting borrowers.
Here it is important to point out that all banks are audited by team of vetern Chartered Accountants every quarter and none of CA team thought it wise to say bad loans as bad . They did not consider it necessary to insist that bad loans be classified as NPA.
Why?
Because CAs earn lacs and crores of rupees in lieu of giving certificate of good health for bad accounts. It is team of these corrupt CAs who use to give certificate of good health to every banks every quarter after receipt of costly gifts and red carpet welcome by clever and shrewed officias of these banks.
It is Chartered Accountant who gave certificate of good health and best corporate governance to Satyam Computers till its promotor Mr. Raju declared ongoing fraud in the system. Global Trust Bank was given the award of best bank in a year and next year the same bank booked unprcedented loss of Rs.1200 crore , lost its networth and finally merged with a PSU bank. More than two decades have passed after these two exposures, but government did not take any action to stop malpractices .
During last three decades , many banks failed , many Regiona Rural banks failed and many cooperative banks failed, but the then government did not think it wise to change the evil culture of blindly trusting corrupt auditors. Similarly government took no lesson from Harshad Mehta stock scam or Ketan Parekh scam .
Majority of Charterd Accountants in our country sell their signature .It is open secret. They are least bothered of correctness of accounts. They know how to manipulate sale figure, how to hide profits, how to distribute income by forming fake companies and so on. They know how to prpare a foged balance sheet to cheat bankers.
It is CAs who teach tips of tax evasion to business men and it is they who teach how to create black money by avoiding tax payment. It is they who prepare financial statements as per whims and fancies of business houses and collude with Income tax officials to help business houses in saving income tax payment .
It is Chartered Accountants who prepare Balance Sheet and Statement of Profit and Loss account as per will of business men , as per value of loan needed and to suit the loan proposals submitted to a bank for getting finance .
It is CA who are undoubtedly and totally rsponsible for increasing stress in bank assets , for increasing black money in Indian economy and for remitance of money in illegal ways to foreign banks by way of inflated export or import.
And to add fuel to fire, bank officials also work in nexus with CAs to sanction loans to unscrupulous business houses so that they may earn bribes and get promotions quickly .
Our government has established a culture of trusting blindly on certificates of Chartered Accountants for all accounts, on rating of companies by rating agencies and certification of rectification submitted by various banks and PSUs. Even government departments manage certificates of good health from CAs and take a sound sleep even though they drain out crores and crore of rupees to serve their greed and cause loss to government by hundreds and thousands of crores of rupees.
Hundreds of scams have been brought to light during last ten years , but none to Ministers ever took proper steps to effectively deal with evil culture and to stop corrupt practices . Because persons sitting at top posts are mostly birds of the same feather. They are nourished in same evil environment of flattery and bribery.
All Public Sector undertakings or private companies use CAs to hide their evil work, their fraud, their corrupt practices. Government preaches sermons to all to maintain transparency in action and in accounts but in practice there is none to cross check correctness and genuinity of certificates submitted by auditors.
As a matter of fact , majority of officials working in banks or in PSUs in general are clever and corrupt and hence they protect each other from punitive actions and isolate good officials from mainstream so that their reign of injustice do not face any hurde. It is an established culture for decades and decades. They have so many lame excuses to get rid of punitive action against for their evil work and they use pressure from top officials and ministers to close their files related to irregularitis and that of corruption.
In addition to present volume of stressed assets, declared or hidden , A whopping Rs 1.14 lakh crore of bad loans have been written off by 27 public sector banks (PSBs) during FY 2012-15
For the fiscal ended March 2015, public sector banks have written off loans amounting to Rs 52,542 crore, an increase of 52.6 per cent over the previous fiscal, as per the RBI data.
These 27 banks had written off Rs 34,409 crore in 2013-14 while Rs 27,231 crore in 2012-13. So in aggregate, a staggering Rs 1.14 lakh crore were written off in the last three fiscals.
If we take into accounts, sacrifices made by banks in interest , it will become clear that about ten lac crores of interest amount has been sacrificed in arriving at compromise settlement with defaulting borrowers during last five to ten years .
I am submitting below news published four years ago which expressed concern on rising NPA in banks. In fact , Government did not take any action to stop rise in NPA in Banks, other than making false promises year after year.
NPA levels in 2011-12 highest in 5 yrs: RBI-Business Standard-02.102012
Net NPA ratio for private banks declining for last 3 years
The banking system’s non-performing assets (NPAs) in 2011-12 were the highest in the last five years, according to Reserve Bank of India (RBI) data. Net NPA ratio in 2011-12 stood at 1.28 per cent, with the net NPA ratio of nationalised banks (excluding State Bank of India, or SBI, and its associates) crossing the one per cent mark for the first time in the last five years, at 1.43 per cent. At 0.68 per cent, the ratio was the lowest in 2008-09.
As a matter of fact culture of hiding bad loans started from the year 1991 when our country adopted the policy of reformation, privatisation and liberlisation. Culture of sanctioning loans by organising loan mela to serve political interest of political parties is older than that .Politicians started exploiting banks for personal gain after natiolisation of banks. Unfortunately same culture still persists in some form or the other. Politicians first used banks for poor and downtrodden. Then they started using banks for development of infrastructure and other high value projects in which government is suppposed to invest.
Since government use their resources in distributing freebees, charities, aids and subsidies to please various sectors of the society to enhance area of their vote bank, they are left with only one alternative , that is to use bank's short term fund for long term projects . It is they who created asset liability mismatch in banks. It is they who created liquidity problems for banks by gradual reduction in SLR and CRR.
Government cannot increase taxes on rich classes because they are source of political fund. They canot reduce subsidy of poor because of loss in vote bank. They usually face scarcity of resources to cater to public demand of freebees. It is only banks which has been used by politicians to increase their fortunes and hence banks have to suffer losses and there is no hope for any improvement until there is change in attitude of politicians.
From time to time , paticularly on the eve of general election , ruling parties announce waiver of loans to attract voters in their fold. Then opposing parties make promises that if they are voted to power , they will write off small loans of farmers and traders . This has adversely affected repayment culture.
This is why , I use to say that politicians are more responsible for pathetic health of public sector banks in particular and all PSUs in general.
Even judiciary do not give value to court cases filed by banks to recover money from defaulters. They add fuel to fire. Large scale corruption in courts and use of political power in recruitment of judges and transfer of judges have created an impression in the minds of clever defaulters that neither banks nor courts can recover money from them until they have got political patronage ,they know that all are manageable.
Time has come to fix responsibility on all who have directly or indirectly contributed in creation of bad assets and in creation of black money in the economy. Government has to understand differenc between man made problems and natural problems. If we continue to make lame lame excuses to justify fraud and corruption , we maynot cure the sickness of banks , nor of any PSU or any government department.
It is necessary to award honest performers and it is equally necessary to punish erring officials and specially to those whose intention is bad. It is necessary to stop politicians exploiting banks for vote bank . It is necessary to stop and punish politicians who build pressure on banks to achieve imposed target in short time just to please Ministers.It is necessary to stop top bank officials to advise branch officials on phone for sanction of loan as per their sweet will.
We have to stop totally target based lending . We have to stop organising loan melas to please Ministers and politicians. We have to stop culture of loan waiver schemes. And we have to activate judiciary so that money is recovered from wilful defaulters in fixed time frame.
WE Have to learn to give value to honesty and sincereity and stop giving value to flatterers in transfers and promotions.
ALL INDIA BANK OFFICERS’ ASSOCIATION (Central Office : Chennai)
Circular No.11/VI/2016
May 25, 2016
To:
ALL UNITS / STATE COMMITTEES
Comrades,
FAST FORWARD MOVEMENTS ARE TO BE STONEWALLED
CIRCUMSTANCES ARE CRITICAL HENCE THE ACTIONS TOO.
As rightly assessed from the time of the present Government assumed office, one of the prioritised agenda consistently pursued was reforms in the Financial Sector. Before assuming the office, the tailor made report of P.J.Nayak Committee was published thereby the directions were set to be taken forward. It got accelerated further by holding GYAN SNAGAM I in January 2015 followed by INDRA DHANUSH in August 2015 and GYAN SANGAM II in March 2016 highlighting the ills and to remedy the situation consolidation of Banks is the only solution. Ballooning of bad loans and its reflections on the Balance Sheets of various Banks, hope, need not be explained at present
The loan default from the Corporates is main the cause for the proposed move of Privatisation IDBI through dilution of equity. The assurances given repeatedly in the floor of Parliament have been thrown to winds. The interview in the electronic media by the responsible representatives of the Government cause serious concern to the entire workforce.
The nine constituents met at Hyderabad on 11th May 2015 and unanimously decided to observe series of programmes culminating in a days strike on 29th July 2016 by the entire workforce in the Banking Industry. But, the sudden move made through SBI administration to step up the pressures for swallowing the five Associates by SBI to enable them to upgrade the market share from the present level, was a bolt from the blue. The workmen in 5 Associate Banks [SSBEA] repulsed back the move by observing the Strike on 20.05.2016.
The fast forward movements are to be stonewalled in a quick way as the jobs and job security of the human assets are at stake. Our organisation along with AIBEA has addressed a communication to UFBU to prepone the date of strike. The said communication is annexed overleaf.
REPULSE BACK WITH UNITED STRENGTH
TO PUSH BACK THE MERGERS OF BANKS AND PRIVATISATION OF IDBI
SAVE THE NATIONAL ECONOMY AND SAVE THE JOBS.
Yours comradely,
/S.NAGARAJAN/
GENERAL SECRETARY
ALL INDIA BANK EMPLOYEES' ASSOCIATION
[Centra Office: CHENNAI]
ALL INDIA BANK OFFICERS' ASSOCIATION
[Central Office: CHENNAI]
25th may, 2016
To
Convenor,
UFBU, Hyderabad
Dear Comrade,
After the rightful decision of the UFBU at its meeting held on 11.05.2016 at Hyderabad to give the call for strike on 29.07.2016, we find that Government is fast going ahead with their plans for consolidation and merger. You are aware recently on 17.05.2016, in a hurriedly held board meeting, through a table agenda, decision has been taken to proceed towards closure of 5 Associate banks and to be merged with SBI.
It has also been decided to merge Bhartia Mahila Bank with SBI thus pulling the shutters down of this public sector bank.
Even on the announced decision to privatize IDBI Bank, few days ago, the Finance Minister has stated that this exercise will be expedited and completed in a few months’ time.
You are also aware that today it has widely appeared in the media that Mr. Vinod Rai has stated that 27 PSBs will be consolidated as 6 Banks and banks like Bank of India and IOB would be merged with some other bank.
Thus, we can find that the Government is moving very fast on their reforms agenda. In this context, we strongly feel that there is a case and need for UFBU to consider suitably preponing our strike to convey our immediate protest.
We request you to consider this suggestion in consultation with other constituents so that we can take a formal decision in this regard.
With greetings,
Yours comradely,
S.NAGARAJAN
GENERAL SECRETARY-AIBOA
|
C.H.VENKATACHALAM
GENERAL SECRETARY-AIBEA
|
Copy to: All constituents of UFBU
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