The Finance Ministry has once again come into open advocating for the Mergers and Acquisitions in Public Sector Banks. This time also they talked about the size of the balance sheet conveniently forgetting the naked truth that these small Indian Banks are not bankrupted in the recent worldwide economic crisis.What happened to the so called bigger banks in other part of the world is known to everybody.
Anyway, without going into the debate, we are providing a link here where Mr. Ashok Chawla, Finance Secretary has reiterated the need for Public Sector Banks to look for mergers and acquisitions in the next 5 - 10 years.
Link:
http://economictimes.indiatimes.com/news/news-by-industry/banking/-finance-/banking/FM-wants-PSBs-to-take-the-MA-route/articleshow/5070026.cms
http://economictimes.indiatimes.com/News/News-By-Industry/Banking/-Finance-/Banking/PSU-banks-should-look-at-merger-and-consolidation-Fin-Secy/articleshow/5069148.cms
FINANCE MINISTRY WANTS PUBLIC SECTOR BANKS TO TAKE THE MERGERS & ACQUISITIONS ROUTE
BANKS CAN'T CHANGE SCHEMES UNILATERALLY, SAYS CONSUMER PANEL
As per the report of Economic Times, National Consumer Commission has ruled that banks cannot unilaterally change its schemes as it might amount to "deficiency of service". As the ruling of the Commission would have an affect on bankers, a link to the news item is published below.
http://economictimes.indiatimes.com/news/news-by-industry/banking/-finance-/banking/Banks-cant-change-schemes-unilaterally-says-consumer-panel-/articleshow/5064752.cms
CONCESSIONS FOR SELECT RETAIL LOAN PRODUCTS OF CENTRAL BANK OF INDIA
To capitalise the market under Retail Loan Segment during the festive season, Central Bank of India has decided to offer concessions on loans sanctioned under select Retail Lending Schemes during Festive Season 2009. The concessions will be operative with immediate effect and will be continuing upto 31.01.2010.
As per the decision, Processing Charges have been waived on the following Retail Lending Schemes,
1. Direct Housing Finance Scheme
2. Cent Vehicle
3. Personal Loan to Corporate Employees
4. Personal Loan to other than Corporate Employees
5. Cent Safar
6. Cent Jewel
7. Teachers Loan
8. Cent Vyapari
9. Cent Swabhiman
Source: http://www.centralbankofindia.co.in/english/interest.asp
HYUNDAI TIES UP WITH CENTRAL BANK OF INDIA FOR CAR LOANS
According to the press release issued by Hyundai Motor India, the country's second largest car maker, it has signed a memorandum of understanding with Central Bank of India for providing car loans to customers.
Under the MOU, Hyundai customers can avail car loans from Central Bank of India at two percent below the BPLR of the Bank with repayment upto 36 months and at one percent below BPLR in case of repayments between 36 to 84 months.
Source: http://www.blonnet.com/blnus/17251967.htm
BANKS TOLD TO COME CLEAN ON RETAIL LOAN CHARGES, PRICING
Many of us are not aware of a Board called Banking Codes and Standards Board of India (BCSBI), a joint initiative of Reserve Bank of India and Indian Banks' Association. BCSBI has been registered as a Society under the Societies Registration Act, 1860 as an independent and autonomous body. It is an independent banking industry watch dog to ensure that the consumer of banking services get what they are promised by the banks.
On 22.09.09 BCSBI has undertaken revision in banking codes on retail loan charges, pricing etc. which are to be implemented by its member banks.
A link to the press release issued by BCSBI on the revision is posted here, to create awareness among the staff members.
AIBOC CIRCULAR NO. 74 DATED 25TH SEPTEMBER 2009
AIBOC has issued circular on wage revision talks held with IBA on 24.09.2009. We are publishing the same here to enable our readers to know about the latest developments on wage revision.
CIRCULAR NO: 74 25TH September, 2009
TO ALL AFFILIATES/MEMBERS:
TALKS HELD WITH IBA ON 24-09-09
Bipartite talks were held yesterday with the IBA in Mumbai. IBA was represented by Mr. M. V. Nair, Chairman and other members of the Negotiating Committee. From UFBU side representatives of all our unions participated in the talks.
2. All issues like quantum of wage increase, option to join pension scheme by employees in PF, extending the option to retirees, Compassionate Appointment/Financial Compensation Scheme, etc were discussed in the meeting. IBA took up their issues like outsourcing, streamlining the special pay posts for workmen, etc. Issues like accounting the cost of pension, introducing new pension scheme for future recruitees etc., were also taken up by them. Discussions were held to take the issues forward with amicable solutions. While some progress has been made on few issues still there are certain hurdles and difficulties in reaching the finality.
3. Therefore it was decided to discuss on these issues further in next round of meeting and endeavor to resolve the issues at the earliest to reach broad understanding to expedite the final settlement.
4. Comrades; the discussions have now entered a crucial stage and hence we need to be extremely careful while taking all efforts to finalise the settlement. We shall keep informed of the developments in due course.
With Dushera greetings,
sd/-
(G.D.NADAF)
GENERAL SECRETARY
SALARY STRUCTURE OF BANK EMPLOYEES VS GOVT. EMPLOYEES
There is a myth in the minds of the Public that bank employees are highly paid. Whenever we participate in strike, there used to be a huge hue and cry from them.
Recently Sri K. Anandkumar, Vice-President, AIBOC has written an excellent article on the salary structure of Bank Employees vis-a-vis Government Employees. We reproduce the same here for the benefit of our readers.
SALARY STRUCTURE OF BANK EMPLOYEES VS GOVERNMENT EMPLOYEES
A myth has slowly gained ground that bank employees are paid inordinately high wages. While arriving at this opinion, there has been no attempt to compare the wages of bank employees with other comparable professions, chiefly those employed in government. A closer scrutiny would suggest that bank employees are, in fact, poorly paid, and not part of a high-wage island.In a perfect market, every factor of production gets its due share. But in reality, markets are unfair and imperfect. The stakes are loaded heavily against the working class; that explains the growing disparity between the capital-owning/top managerial class and the labour class, despite breathtaking GDP growth rates.
The disparity exists not just vis-À-vis labour and the managerial class, but also across categories of the labour class. The latter exists because “relativity” has not been maintained.
There are two forms of relativity that need to be considered — internal relativity, which looks into whether the salary levels within the organisation correspond to the organisational hierarchy; and external relativity, which deals with the relationship between the wages paid and the market wages.
GOVT EMPLOYEES FAVOURED
Prior to 1979, Group ‘A’ Officers of Central Government were earning less than bank officers. In 1979, the Pillai Committee was constituted to study the salary structures of bank officers and Group ‘A’ Officers of the Central Government and bring equity among various banks.
The Committee observed that the functions and responsibilities of bank officers in the new set-up were comparable to those of Group ‘A’ Officers in the Central Government and suggested pay parity between them.
The Pillai Committee recommendations were implemented in banks with effect from July 1, 1979, and the pay scale of the lowest rung of officers in banks were equated with pay scales of the lowest rung of Group ‘A’ Officers of Central Government at Rs 700.
The parity which was established by implementing the Pillai Committee Recommendations was distorted by subsequent Pay Commission revisions. In the Sixth Pay Commission, the wages of Group ‘A’ Officers zoomed past the bank officers’ wages. External relativity was given a quiet burial.
It is quite appropriate to compare the salary of bank officers with Group ‘A’ Officers of the Central Government to ascertain whether bank officers constitute a high-wage island.
The basic pay according to the Fifth Pay Commission for Group ‘A’ Officers was Rs 8,000 and the corresponding pay for bank officers was Rs 7,100. But in the Sixth Pay Commission the basic pay for Group ‘A’ Officers of the Central Government went up to Rs 21,000 (basic pay Rs 15,600 + grade pay Rs 5,400) whereas the pre-revised basic pay of bank officers was only Rs 10,000.
Between the Fifth and the Sixth Pay Commissions, the basic pay of Group ‘A’ Government officers went up by 162.5 per cent.
The gross salary of government officers was Rs 31,312, whereas the bank officer’s salary was only Rs 16,110. It can be seen that a bank officer draws a gross salary which is just 51.45 per cent of the gross salary of Group ‘A’ officers at the lowest rung.
Even house rent allowance was paid at 30 per cent of basic pay for government officers, whereas bank officers were getting a maximum of 8.5 per cent in metros. The pre-revised salary of the bank clerk was Rs 6,600 as compared with the Central Government clerk’s salary of Rs 11,000.
Many State Governments have adopted the Sixth Pay Commission Recommendations. A number of public sector undertakings have implemented the Pay Commission recommendations as a benchmark for their salary revision.
The government, public sector and private sector undertakings are paying high salaries to their entire workforce, with the exception of the banking sector. Given these facts, can bank officers and employees be described as belonging to an island of high wages?
MORE WORK, LESS PAY
The business hours for the customers used to be four hours a day and working hours for the staff was seven hours with a 30-minute lunch break. To provide best customer service, the business hours have been increased to six hours, within the stipulated working hours of seven hours a day. After business hours, the bank staff need three to four hours to complete back-office work at the branch level, because of which the working hours for officers are practically extended to about 11 hours a day without any monetary compensation or increase in salary structure, whereas new generation private sector banks duly compensate the extended working hours in their salary packages.
We have completed 40 years of bank nationalisation, and we owe our gratitude to the then Prime Minister Indira Gandhi for taking the bold step. The country’s transformation since then is in no small measure due to the role played by nationalised banks.
We feel proud to work in nationalised banks and be part of the nation-building exercise.
We started with social banking but now have almost attained the standards of global banking. Yet, we are paid less than municipal wages.
The need of the hour is to restore the pay parity with government employees and uphold external relativity as done by the Pillai Committee 30 years ago.
Source: http://www.allbankingsolutions.com/Salary-bank-employees-vs-government-employees.htm
DETAILS OF TALKS WITH IBA ON 24.09.2009
We publish hereunder the details of talks held with IBA, which are made available at AIBEA website.
Bipartite talks were held today with the IBA in Mumbai. IBA was represented by Mr. M. V. Nair, Chairman and other members of the Negotiating Committee. From our side representatives of all our unions participated in the talks.
All issues like quantum of wage increase, option to join pension scheme by employees in PF, extending the option to retirees, Compassionate Appointment / Financial Compensation Scheme, etc were discussed in the meeting. IBA took up their issues like outsourcing, streamlining the special pay posts, etc. Issues like accounting the cost of pension, introducing new pension scheme etc was also taken up by them. Discussions were held to take the issues forward with amicable solutions. While some progress has been made to sort out the various issues during today’s talks, there are also some hurdles and difficulties which are needed to be overcome.
It was decided to discuss these issues further in next round of meeting and endeavor to resolve the issues at the earliest to reach broad understanding on the issues and to expedite the final settlement.
The discussions have now entered a crucial stage and hence we need to be extremely careful while taking all efforts to finalise the settlement.
Bank Unions to meet IBA on wage revision on 24.09.2009
It is reported in Economic Times that Mr. C H. Venkatachalam, Convener, UFBU has told that a crucial meeting between the representatives of the United Forum of Bank Unions (UFBU) and Indian Banks Association (I.B.A.) is slated on 24.09.2009 to discuss wage revision and other demands of about 10.5 lakh bank employees and officers in the country.
Talking to PTI over phone today, UFBU Convener C H Venkatachalam said the offer to discuss the long-pending issues was made by the IBA, the apex body of bank managements, following the nationwide strike by employees on August 6-7.
After the "success" of the two-day strike, the IBA informed them that they have finalised a package that envisages 17.5 per cent increase in wages and New Pension Scheme (NPS) for new entrants from April 2010, among other things, he said.
Compassionate appointment issue would be discussed separately, Mr. Venkatachalam said.
The UFBU, at a meeting on September 7, discussed the IBA package and decided to pursue it with the association in tomorrow's meeting in Mumbai, he added.
A link to the news in the Economic Times is posted below.
http://economictimes.indiatimes.com/Banking/Bank-unions-to-meet-IBA-over-wage-revision/articleshow/5047703.cms
The same news item is also appearing in The Hindu Business Line and Business Standard.
AIBOC CIRCULAR NO. 73 DATED 23RD SEPTEMBER 2009
AIBOC has released another circular on the 21st General Council Meeting of All India Punjab National Bank Officers' Association. We publish here the same for the benefit of the readers.
CIRCULAR NO: 73 23rd September, 2009
TO ALL AFFILIATES/MEMBERS:21ST GENERAL COUNCIL MEETING OF ALL INDIA
PUNJAB NATIONAL BANK OFFICERS’ ASSOCIATION
Inaugural session of the 21st General Council meeting of All India Punjab National Bank Officers’ Association held on 20th September, 2009 at Hotel The Mughal, at 10:45 a.m was a grand success. The delegates and observers received the guests and invitees with raising of full throated slogans in the Conference Hall. There was a festive mood in the Hall, members greeting the newly elected office bearers of the Association. The dais was well decorated, displaying the demands pending before the IBA/Management.PUNJAB NATIONAL BANK OFFICERS’ ASSOCIATION
2. Com.G.D.Nadaf, General Secretary, AIBOC, inaugurated the conference by lighting the lamp amidst thunderous applause. In his inaugural speech, he extensively covered on the developments as regards industry level issues under negotiation with the IBA. He expressed his happiness that, AIBOC has almost clinched the long pending aspirations of the CPF optees to switch over to the Pension Scheme. The related issues on 2nd Option will be discussed further with the IBA during the next meeting scheduled on 24th September, 2009. As regards salary revision, constituents of UFBU are not satisfied with the offer of IBA for 17.5% increase. All Banks are performing well. The better pay compensation system for Govt. and other Public Sector undertakings has raised the hopes in the Banking Industry. In lieu of 2nd option on pension, employees have to share the burden of cost to the extent of Rs. 1800/- Crores. Therefore, the present offer on salary revision is far below the expectations of the grass root level membership. They have already expressed their anguish by making the 6th and 7th August 2009 strike a thunderous success. The risk, responsibility, transferability and accountability of officers, coupled with unlimited working hours have made the life of the officers miserable. Hence, we are persuading the Govt/IBA for better pay package and early settlement of the issues, so that the unions could concentrate on ill-advised moves on financial and labour reforms waiting in the wing. He was very critical of the attitude of the Government on Compassionate Appointment Scheme pending before them for approval, as the family conditions of the deceased employees are pathetic in the absence of Compassionate Appointments in the Banking Industry, said Com. Nadaf.
3. Shri. M.V.Tanksale and Shri. Nagesh Pydah, Executive Directors of the Punjab National Bank were the Chief Guests. In their speech, they covered the Bank level issues and appreciated the Association for the positive role played in achieving the business targets. Com.K.D.Kheda, General Secretary, AIPNBOA in his speech thanked the Management representatives for their co-operation and assured that, the Association will continue to play stellar role for the development of the Bank. Com.P.R.Mehta, General Secretary of AIPEF in his felicitation speech expressed his concern about the merger and acquisition policy of the Govt. of India. The joint forum of AIPNBOA and AIPEF will take up the bank level issues together. Com.P.K.Sarkar, President of AINBOF in his address appreciated Com.Kheda for his continuation as General Secretary of AIPNBOF for the last 27 years. He expressed that apart from pursuing monetary issues, there is a need to fight for the dignity and self-respect of officers. The punitive disciplinary rules, harsh policy in transfers etc. are discouraging the officers to exercise their powers freely.
4. Earlier after invocation, Shri. R.P.Sharma, Chairman Reception Committee welcomed the gathering. S/Shri. Ved Vyas, Deputy General Manager, D.S.Solanki, AGS, B.P.Sharma, G.M (HR), Rohtas Kumar, General Manager, also spoke on the occasion. A souvenir published on the occasion was released by the Executive Directors. Under the Social Welfare Programme gifts were handed over to the visually challenged persons. Com. Ashish Sen, President of the Association delivered the Presidential speech. The inaugural session concluded with a Vote of Thanks by Com. Pradeep Kumar.
5. Comrades, it was a well planned and largely attended open session, proceedings of which were extensively covered in the print and electronic media. We compliment the leadership of the AIPNBOA, Com. Ashish Sen, Com.K.D.Kheda and volunteers’ force for another memorable programme. We congratulate the newly elected Office bearers and wish them all success in their endeavours.
With Warm Greetings,
Sd/-
(G.D.NADAF)
GENERAL SECRETARY
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