CBOA-AP CIRCULAR NO. 023 DATED 08.11.2011

CBOA-AP issued its circular No. 023 dated 08.11.2011 reproducing the circular received from AICBOF on Khandelwal Committee Recommendations. We are placing the same here for our readers.

CIRCULAR NO.: GS: 2011: 023                                          Date: 08.11.2011

TO ALL OFFICERS                                                              PLEASE CIRCULATE

Dear Friends,

We reproduce hereunder the Circular No. CIRCULAR/GS/2011/20 dated 04-11-2011 received from our Federation for your information.

With best regards                                                                      

Yours sincerely

Sd/-

(C.A. MALLIKARJUNA RAO)

GENERAL SECRETARY

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

“We reproduce hereunder the communications received from AIBOC for your information:

PRESS REPORTS ABOUT KHANDELWAL COMMITTEE RECOMMENDATIONS OUR COMMUNICATION TO INDIAN BANKS’ ASSOCIATION

Our attention has been drawn to some of the press reports appearing in financial papers in particular about the initiative of the Government and seeking the views of IBA in regard to introduction of variable pay concept in Banking Industry and change in recruitment policy etc. We have to-day sent a communication to IBA conveying our strong views in the matter.  The same is reproduced hereunder. The issue will be discussed at UFBU level and appropriate action programme will be chalked out.

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

NEW INITIATIVES IN RESPECT OF KHANDELWAL COMMITTEE REPORT - PRESS REPORTS FROM TIME TO TIME

We are surprised to notice that, in the recent past, calculative moves are made in the press in different parts of the country, to give vent to the various recommendations made by Mr.Khandelwal in his report. It has been opposed vociferously by the unions in the Banking Industry, both under the banner of United Forum of Bank Unions as well as the Confederation. We have demanded thorough discussions with IBA on some of the provocative recommendations, which aim at unsettling several Bipartite understandings, that have been signed between the IBA and the Confederation, including the 9th Bipartite Settlement.

Our attention has been drawn to the recent press reports appearing in the prominent financial papers, wherein a reference has been made to the initiative of the Government indicating that, a communication has been sent by them to the IBA seeking their views on the introduction of the concept of Variable Pay in the Banking Industry. The IBA appears to have formed a Small Committee consisting of three CMDs of member Banks, in order to formulate the views of the IBA. We are surprised about these developments. The IBA is conscious about our stand on the issue. The issue also figured in the last UFBU strike, wherein the entire workforce across the country expressed their dissenting voice against the report of the Khandelwal Committee in an unequivocal term demanding scrapping of the report.  These developments should have prompted the Government to bury the report which is not in the interest of the Banking Industry.

It is in this background, we wish to reiterate our position that the Confederation is against any attempts on the part of IBA towards new initiative to give life to the questionable recommendations of Khandelwal Committee Report. Its objective to bring the concept of variable pay in the banks is contrary to the existing time tested system of negotiations on a regular basis for revision of salary at periodical intervals. The new initiative will only result in total chaotic condition in the banking system leading to industrial unrest across the country in banking industry. We are also against change in the recruitment policy and unilateralism on bilateral   issues at Bank level. We therefore request you to kindly examine the issue in the right perspective and send an appropriate communication to the Government to avoid unnecessary confrontation with the Unions / Associations in the banking industry.

Please treat the matter as urgent.”

 “ALLOCATION OF GOVERNMENT BUSINESS TO NEW GENERATION PRIVATE SECTOR BANKS DIRECTIVES OF THE CENTRAL GOVERNMENT

We have to-day sent a communication to the Ministry of Finance, Government of India on the above subject. The issue was being tackled by the Confederation since a long time. The current development is alarming and hence we have sought reversal of the directives of the Government keeping in view the social responsibility that is being discharged by the Public Sector Banks as well as the Old Generation Private Sector Banks.  The communication is reproduced hereunder.

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

ALLOCATION OF GOVERNMENT BUSINESS  TO NEW GENERATION PRIVATE SECTOR BANKS-DIRECTIVES OF DEPARTMENT OF EXPENDITURE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA

We have been strongly advocating against the move on part of the Government of India to allocate Business of the Central Government as well as the State Governments to the New Generation Private Sector Banks; keeping in view the fact that they are not discharging their social responsibilities as is being done by the Public Sector Banks as well as the Old Generation Private Sector Banks. They will utilise this opportunity, only towards garnering huge funds and deposits from the Government Departments, while dealing with the business allocated to them by the various departments both the State as well as the Central Government.

The Public Sector Banks as well as the Old Generation Private Sector Banks have been undertaking the responsibility of ensuring implementation of the various Government sponsored schemes, financial inclusion and social banking religiously. Apart from the age-old commitment, they have been lending to priority sector, maintenance of healthy credit deposit ratio in various States, to ensure a balanced growth of all the States with a special emphasis in respect of the rural interior parts as well as backward areas of the country. The Government business is in a way an incentive to these Banks who are committed to the socio-economic policies of the Government.

The foreign investors control these Banks. The money they garner from the Government business will be used to earn more profits without discharging their social responsibilities.

We were informed by our Kerala State Unit that, the Government of Kerala has issued an abstract under G.O. (Rt) No. 7013/2011/Fin. dated 15.09.2011, certain instructions to the Health Department, ostensibly quoting the communication issued by your Department and has directed three Private Sectors Banks namely ICICI Bank, HDFC Bank and Axis Bank for meeting their Banking requirements.

We strongly feel that these directives issued by the Govt. of Kerala on the basis of the communication issued by your Department will affect the interest of the PSU Banks as well as the Old Generation Private Sector Banks.

We therefore, request you to kindly re-examine the matter afresh and rescind the communication issued. Please treat the matter as very urgent.”

Yours sincerely,

Sd/-

(A.R. SAIFULLAH)

GENERAL SECRETARY