Concept of COST to COMPANY For Bank Staff Is To Cheat Bankers

Clever Finance Minister  and his sycophants Chairman and Managing Directors of banks (CMDs of public sector banks who are part of IBA )) are suggesting cost to Company concept for bank staff in line with what private companies in IT sector are using to tap talented person from Educational campus or to attract employees of other companies . 

It may be noted that promoters of private companies think for the betterment of their company and while picking up freshers  from educational Institutes they keep in mind only the utility and gain to company from a particular person. They target to earn fifty lac from a person by offering a package of ten lac.

Most of IT companies hire an engineer or an MBA to outsource him or her for a foreign company and in such cases if the foreign company pays ten lacs of rupees to Indian IT company like Infosys or TCS, the employer offers a package of hardly two or three lac to the employment seekers.

On the contrary top officials of public sector companies think only for personal gain sacrificing all interests of the bank or company they represent. While picking up freshers from educational institutes top officers of a bank  consider the personal benefits, monetary gain for their family, relation with person who recommend for selecting a particular youth for employment etc and they totally neglect the future of the bank they represent.

Even an inefficient officer from other bank in scale I is selected for scale III post by PS ban employer if his name is recommended by some imp person or some offer of bribe comes from some corner. Top officials of bank for gaining a lac or two in recruitment and promotional process can violate all ethics and moral recruit ineligibles and promote ineligibles.

Same position is in the case of promotion in public sector banks. Top officials seldom keep in view the utility of officer they select for promotion. Rather one who is number one flatterer of big bosses, who is of same caste and community , who is recommended by  some VIP officer, who is corrupt and who has earned huge illegal money in credit sanction and shared with the bosses   is picked up for promotion neglecting serious, efficient , honest and devoted officers.In the same fashion ED and CMD s are selected by MOF and the same culture flows from top to bottom in all promotion processes and in all cases of recruitment.

This is why private banks are progressing by leaps and bounds , their profit is increasing month by month , their NPA is lowest in banking sector, their CASA is highest, they employ greater number of youth , they create more employment , their customer service is better , their deposit and credit growth is higher , their NIM is more and everything is better compared to their counterpart in public sector under same domestic condition and same global situation.  RBI gives all help and infuse capital from time to time , still PS banks are showing sickness and their health is moving from bad to worse whereas private banks are growing without any help from GOI .

CMD of every bank, RBI officials and MOF use to say all the time that banks are healthy and growing and from next quarter position is likely to improve. Politicians use to set committee after committee, suggest several ways for improvement, change rules from time to time and so on but never cares to ensure honest execution of rules and policies. 

Top to bottom corrupt officers are in power and they leave no stone unturned to loot the bank from both hands for their personal gain and to help those who are ready to offer costly and costly gifts. Flattery and bribery is given full weight in all cases right from employment  to promotion , credit sanction, write off bad loan , supply of goods and service and what not.

As such the concept of cost to company suggested by IBA and MOF is nothing but a tool to postpone wage settlement for indefinite period. It is pity that union leaders are also unable to understand the malicious intention of IBA members and the hidden agenda of MOF and UPA government.

If ‘cost to company’ concept is so much effective and productive, why the government does not apply to other public sector companies like ONGC, NTPC, SAIL , BSNL. Airlines, Government schools and Government colleges, Ministries, Central Services, state government services etc which are directly under control of the government  and which are also supposed to produce more and more and which are also supposed to earn profits in addition to serving common men and serve social agenda of the country.

It is well known to all that all central services are governed by a set of scales and there is no stagnation and in most of the cases there is time bound promotion and at least there is value to seniority of staff. Scale of pay has got stagnation of increment as it happens in banks. An officer for the post of Secretary comes from senior IAS officers and not from educational campuses.

It is only in bank that an officer is directly recruited in higher scale .If cost of company concept is made a success in bank , there will be total chaos in banking and no power can stop further deterioration in health of banks.Bank staff who used to serve the bank for decades will have to leave the bank in a year or two if the concept of COST to COMPANY is accepted by Bank unions in Xth Bipartite Settlement. 

Bank staff will be kicked out in few months if they do not flatter to their bosses and do not become ready to do even personal and family work of the top officials .It may be noted that in IT sector or in private companies , average length of service of an employee is not more than ten years . Bank staff will similarly change bank  from bank and loose the stability as also lose their health in ten years of service as happens with those who are employed in private companies of modern era.

I therefore of strong view that brainless and greedy politicians are determined to spoil banks in the same way as they did BSNL and Airlines and other PS undertakings.I hope union leaders will take seriously the dirty game plan of IBA officials and MOF