HR crisis building up in banking sector, says officers union-Business Line 27.12.2013
THIRUVANANTHAPURAM, DEC. 27:
A grave human resources crisis is building up in the banking sector, according to the State unit of the All-India Bank Officers’ Confederation.
Prolonged lag in recruitment through 1987 to 2007 and proliferation of bank branches have combined to bring about the situation.
OPERATIONAL RISK
This has created a huge ‘operational risk’ to banks, according to Abraham Shaji John, State Secretary of the Confederation.
This has created a huge ‘operational risk’ to banks, according to Abraham Shaji John, State Secretary of the Confederation.
Apart from this, growing non-performing assets and restricted assets are threatening growth affecting the salary and service conditions of staff and officers.
This is the context against which the State unit of the Confederation will hold the ninth triennial State conference at Kollam on January 11 and 12, 2014, John said.
At least a thousand delegates and members are expected to attend the event, which will be held at the District Cooperative Bank Auditorium in Chinnakkada. Major highlights are a rally and the inaugural session on January 11 and a delegate session the next day.
INDUSTRY ACTION
The conference is also being held in the background of industry action called by United Forum for Bank Unions, umbrella organisation trade unions, demanding wage revision and denouncing unnecessary reforms.
The conference is also being held in the background of industry action called by United Forum for Bank Unions, umbrella organisation trade unions, demanding wage revision and denouncing unnecessary reforms.
John recalled that wage revision is due from November 1, 2012. Despite a few rounds of discussions, Indian Banks’ Association (IBA) has offered a meagre five per cent rise.
IBA has cited ‘lack of paying capacity’ as the reason for not offering anything better but it sounds hollow when viewed from the perspective of reality, John said.
WAGES DOWN
In a service industry such as banking, remuneration cannot be linked to profit. Incidentally, the banking sector has been making huge gross profit.
In a service industry such as banking, remuneration cannot be linked to profit. Incidentally, the banking sector has been making huge gross profit.
Rising non-performing assets, particularly in big-ticket advances, are due to the economic downturn or loop holes in legal framework or lack of political will, John pointed out.
Over last 20 years, wages of officers have come down by around 40 per cent when compared with peers in Centre; public sector undertakings; universities; and colleges.
John said that the performance of existing new-generation banks and foreign banks does not inspire confidence.
NOT SUSTAINABLE
New banking licenses to corporate houses and red carpet welcome for foreign banks in the guise of financial inclusion and inclusive growth are not sustainable, he said.
New banking licenses to corporate houses and red carpet welcome for foreign banks in the guise of financial inclusion and inclusive growth are not sustainable, he said.
Their contribution to priority-sector lending; direct benefit transfer of subsidies; Mahatma Gandhi National Rural Employment Guarantee Programme; financing of self-help group financing; and Government-sponsored poverty alleviation schemes is insignificant.
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