CBOA-AP CIRCULAR NO. 011 DATED 09.03.2012

CBOA-AP issued its circular NO. 011 dated 09.03.2012 reproducing the circular received from AICBOF on Staff Welfare Funds in Public Sector Banks. We are placing the same here for our readers.

CIRCULAR NO.: GS: 2012: 011                                                      Date: 09.03.2012

TO ALL OFFICERS                                                                          PLEASE CIRCULATE

Dear Friends,

We reproduce hereunder the Circular No. CIRCULAR/GS/2012/10 dated 07.03.2012 received from our Federation for your information.

With best regards                                                                      

Yours sincerely

SD/-

(C.A. MALLIKARJUNA RAO)

GENERAL SECRETARY

………………………...........................................................................

“STAFF WELFARE FUNDS IN PUBLIC SECTOR BANKS

We quote below the text of circular No. 27 & 28 issued by AIBOC for your information:-                                                                                 

   QUOTE

The Government of India had fixed a ceiling on expenses towards Staff Welfare of Public Sector Banks at 3% of net profit with a cap of Rs.15/- crores. As the amount was not sufficient to meet the welfare expenses at large and medium size Banks, we took up the matter with the Govt./IBA for removal of the cap on welfare fund and to link it to the size and number of employees in Banks.

We are glad that, Government of India has advised IBA on revised norms for the Staff Welfare Fund in Public Sector Banks as follows:

Category	3% of Net Profit with Maximum ceiling per year
State Bank of India	Rs. 100 Crores
PSBs with business mix of over Rs.3,00,000 crores and employee strength above 30,000	Rs. 25 Crores
PSBs with business mix of over 1,50,000 crores to 3,00,000 crores and employee strength of 20,000 to 30,000	Rs. 20 Crores
Other PSBs	Rs. 15 Crores

(For the purpose of calculation the average of business figures for the previous two years may be reckoned)

It is further stipulated that:

Ø  No cash payments shall be made to employees except for medical and educational purposes.

Ø  Banks may consider the option of Group Insurance Policies for both serving and retired employees instead of direct payment of benefit from the Fund.

Ø  Each Year the Banks may devise a Scheme for apportionment of funds with the prior approval of their Board of Directors, as per specific needs of the Bank.

All our affiliates/members to take note of the improvement in Welfare Fund Ceiling. The official communication from IBA follows.

SABBATICAL LEAVE TO WOMEN EMPLOYEES IN PUBLIC SECTOR BANKS

One of the issues taken up with the IBA was grant of Sabbatical Leave of 2 years to the Women Employees of Public Sector Banks to meet their special problem during their career. We are glad that Government of India has advised the Chief Executive Officers of all Public Sector Banks to introduce Sabbatical leave in all PSBs on the following broad terms:

Ø  Sabbatical Leave of upto 2 years shall be admissible to women employees of Public Sector Banks during their entire career.

Ø  Sabbatical Leave shall be without Pay, Salary, Allowances and any consequential monetary and non-monetary benefits;

Ø  The employees applying for leave should have put in a minimum of 5 years of service. Sabbatical Leave before completion of 5 years of service shall be sanctioned only in exceptional circumstances by the authority next above the leave sanctioning authority.

Ø  The leave shall be taken for a period of at least 3 months at a time and the leave shall not be taken more than once in a year.

Ø  No increments will be earned during the Sabbatical Leave and the employee will rejoin at the same stage of pay as was existing at the time of her availing the Sabbatical Leave.

Ø  Employees on Sabbatical Leave shall not be eligible to participate in any promotion exercises during the Sabbatical Leave period, even if otherwise eligible.

Ø  Eligible and willing employees can request for Sabbatical Leave for any purpose like medical grounds, care of family members or children, higher studies, visit spouse etc.

Ø  The employees shall not take up any employment/vocation/business/profession elsewhere during the Sabbatical Leave.

All our member/affiliates may take note of the facility.

                                                                                                            UNQUOTE                                                                                

KIND REGARDS,

Yours sincerely,

Sd/-

(A.R. SAIFULLAH)

GENERAL SECRETARY