CBOA-AP CIRCULAR NO. 002 DATED 16.01.2012

CBOA-AP issued its circular No. 002 dated 16.01.2012 reproducing the circular issued by AICBOF on the guidelines for promotion in Public Sector Banks issued by the Ministry of Finance, Govt. of India. We are placing the same here for our readers.

CIRCULAR NO.: GS: 2012: 002                                                      Date: 16.01.2012

TO ALL OFFICERS                                                                          PLEASE CIRCULATE

Dear Friends,

We reproduce hereunder the Circular No. CIRCULAR/GS/2012/02 dated 14.01.2012 received from our Federation for your information.

With best regards                                                                      

Yours sincerely

Sd/-

(C.A. MALLIKARJUNA RAO)

GENERAL SECRETARY

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“GUIDELINES FOR PROMOTION IN PUBLIC SECTOR BANKS ISSUED BY THE MINISTRY OF FINANCE, GOVT. OF INDIA

The Ministry of Finance, Govt. of India have issued draft guidelines on promotions in Public Sector Banks. The guidelines are on promotions, requirement of minimum experience, mandatory requirement of rural, semi-urban service etc. Our Confederation have addressed a letter to the Union Finance Minister conveying our views and suggestions on the draft guidelines which is reproduced hereunder:

“ GUIDELINES FOR PROMOTION IN PUBLIC SECTOR BANKS

We wish to bring to your kind notice the fact that, the Public Sector Banks had introduced various channels of promotion, keeping in view the changing dynamics and paradigm shift, in the Banking Operations. The Promotion Policy introduced by the Banks has been taking care of the aspirations of the Officers’ community and the succession planning is taken care. As the Banking operations became more and more complex with the Banks becoming financial supermarkets, the Specialists to handle these new challenges, were recruited. The In-house talent handled the technology initiatives embarked upon by the banks with efficiency and effectively, and the entire Officers’ Community responded to these initiatives very positively. These challenges were overcome and our Public Sector Banks emerged as the tech-savvy banks with an edge to meet the global competition. The new guidelines issued by the ministry need to be studied keeping in view the foregoing developments. Our observations on the guidelines are as follows:

The guidelines on the channel of promotion and minimum experience are already being followed by majority of the banks and the emphasis is on seniority-cum-merit. Many top executives in the Banking Industry are the product of such promotion policy adopted by the banks. It should not be forgotten that, there is no substitute for experience and therefore, seniority-cum-merit should be the sole criteria for promoting the officers to different scales.

Hence, we strongly feel that the individual banks should be allowed to follow their own policies for promotion process, keeping in view their requirements, as there cannot be a single-policy-fits-all situations. We also would like to suggest the following:

PROMOTION FROM SCALE-I TO II & FROM MMG SC-II TO III

The new provision suggested by GOI in case of Officers who have put in more than 2 years of rural and/or semi-urban service will get 50% weightage in minimum experience for each additional completed year of service; while deciding their eligibility is acceptable to us. With regard to the proposal for promotion from Scale-III to Scale-IV and Scale-IV to V, it is mandatory to pass an examination for computer literacy and knowledge is superfluous; in as much as most of the officers in these cadres are already computer savvy, possessing adequate computer knowledge. Hence, passing a test for computer literacy and knowledge mandatorily is not warranted and should be dropped.

Again, the stipulation for promotion of an officer to Scale VII, the Officer should have worked as Regional/Circle Head or must have worked at a Regional/Circle Office for two years, is impracticable. As many of the SMG Scale V and Scale VI Officers will be working in the operation as Heads of the large branches, the stipulation will put such officers to disadvantage. Hence, the above stipulation is unwarranted.

Identification of vacancies be left to the wisdom of the Banks without linking to the ratio of GMs/DGMs as it is mainly determined on the basis of classification of branches/regions.

Zone of consideration for promotion may be maintained at 1:3 ratio; otherwise, non-promotion leads to frustration. The existing scheme provides for superseded candidates plus three times of number of vacancies. We request you to take note of the above suggestions and modify your instructions to the CEOs of the Public Sector Banks accordingly.

We have a strong feeling that, as ours is the only organisation representing more than 90% of Membership of the Officers in the Banking Industry; we should be invited to offer our views on the proposals. On many counts, we have the first hand practical experience and can offer better practical and workable suggestions, which invariably take care of the hopes and aspirations of the Officers. A promotion policy, which takes care of the dynamics of the individual Bank and the expectations of the Officers in the fast changing environment, is the need of the hour”.

All our members are requested to await further developments in the matter.

WITH WARM GREETINGS

Yours sincerely,

Sd/-

(A.R. SAIFULLAH)

GENERAL SECRETARY