PUBLIC SECTOR BANKS IN CRISIS

READ MY VIEWS ON FOLLOWING ARTICLE JUST AFTER THE END OF THIS ARTICLE.WHICH IS WRITTEN BY LEARNED HIMADRI SHEKHAR BHATTACHARYA

PSU BANK EMPLOYEES IN INDIA—“LEAVING UNDER DEMOCLES SWORD”

Banking in any country irrespective of its status, form is considered as backbone of economy. Core activities of banks are to accept deposits from public, institution etc. to channelize the fund for growth of individual, society and our country.

With advent of globalization banking industry has spread its wings far and wide not only in its core business but also in plethora of other businesses, incidental to it like dealing in insurance ,mutual fund ,forex , share market, to name a few.

 

In India, nationalized banks have been doing exceedingly well despite all odds, be it global meltdown, sub-prime crisis, obstacle in new business, downsizing etc. Indian banks are witnessing a reverse trend for last few years as compared to its peers across the globe. When its peers are receiving million of bailout from their respective governments for survival, Indian banks are generating large pool of money as profit and consequently paying a hefty amount to its shareholders,Government of India. Public and others, when banks in other country collapsed our banks marched ahead to greater heights and performed splendidly.

 

But ironically,it has become almost reverse, on the pay and amenities front,when bankers world over,despite their luck luster performances,continue to receive handsome bonus and incentives, on top of good basic salary.On the contrary, in India,committed and competent bankers and their families,are living a dejected and demoralized life in absence of any such reward incentive and recognition at their workplaces.

And unfortunately story does not end here. Let us have a reality check as follows":

OFFICER/ PROFESSI-ONALS	UGC PROFESSIONALS/ TEACERS IN DEGREE COLLEGE AT ENTRY LEVEL	ENTRY LEVEL OFFICER IN CENTRAL GOVT	ENTRYLEVEL OFFICER IN PSUs OTHER THAN BANK	ENTRY LEVEL OFFICER IN PSU BANK
RESPONSIBILITY	High	Very high	Very High	Very High
Financial ACCOUNTABILITY	NIL	NIL	NIL	VERY HIGH
WORKING HOURS	6 HOURS	Unlimited	REGULATED	Unlimited
General Accountability	Very Low	Very High	High	Very High
Risk	LOW	LOW	LOW	VERY HIGH
TOTAL SALARY PER MONTH(Approx.)	41000/-	35000/-to 40000/-	38000/- to 45000/-	21000/-

In further move to add insult to the injury, authorities continue to play with the justified demand for bankers for introduction of ‘5 days in a week’ working schedules in banks while regulators and government departments are enjoying  it since long.

Unlike other industry, bankers do not have any regulated working hour.An Officer of bank has to come early in the morning and has to leave only after completion of all work, late at night. Above comparison between working ambience of bankers, vis a vis, public servants and others who used to be at par with bank officers few years back, reveal abysmal discrimination towards bankers.

 

It is crystal clear from the above chart that despite being highly accountable, and made to work amidst high risks, bank employees are being paid approximately half of what are being  paid to government officers  and people working in other PSUs & professionals in colleges and universities, who (except UGC professionals) used to be at par with bank employees in terms of emolument after recommendation of PILLAI COMMITTEE.

 

But unfortunately with passage of time salary of bank officers dwindled alarmingly in comparison with Central Government Officers without any substantial reason.

IXth Bipartite settlements,further damned already doomed bankers,now they are  given a ‘lollypop’ for another five years:
After waiting patiently for long time and after scores of pay cuts and those rumors doing the rounds, now we have new pay scales in our hand. But the million dollar question is whether it is fair or even satisfactory? Post implementation of sixth pay commission’s recommendations, there were great expectations from new wage revision and people were vying to get something reasonable, something which could match with the sixth pay commission. 

After scrutinizing the new pay scale bankers are of opinion that their cherished dreams have been killed by their UNIONS whom they trusted blindly. Now dissatisfied bankers are living in resentment,their minds simmering with a lot of discontent, anger and frustration. There are plenty of queries to be answered, not only by union member, management but also by IBA.

Super success of our banking system is attributed to the  biggest assets at it’s disposal, the vast pool of skilled & dedicated manpower. But unfortunately the biggest asset is not getting the best and not even a fair attention.

They continue to grind in their respective branches/offices to maintain the momentum achieved by relentless toiling of none other than themselves, in spite of huge workload, mammoth target, lackluster working environment and ambience in their workplace.

 

This discrimination towards bank employees and silence of unions, IBA, raised following questions in today’s banker’s minds:

 

1. Have bankers caused any problems or injury to IBA, & UNIONS,as they have grown totally apathetic to their justified demands and aspirations?
2. Have-not they contributed towards the Indian banking and financial sector insulated,from global contagions like ‘Asian Financial Crisis’ ‘The Sub Prime Crisis of USA,etc.?
3. Have-not they helped in  fulfilled social aspect of banking like financial inclusion, NAREGA, MANREGA and other government schemes?

But, it is akin to shouting before a vast wall with nobody in sight to give a patient ear and though, Xth bipartite is less than six months away, no union except NCBE could show any activity towards gearing for that.

 

           PREPARATION FOR XTH BIPARTITES, NOWHERE IN SIGHT.

What future holds is no less depressing:

With the ever deteriorating working condition, deplorable HR conditions etc. no fresh talent is getting attracted to these banks.It has become quite difficult to retain even existing employees.It is high time, regulators and think tanks at ‘FINMIN’ give due attention to this growing disenchantment among bankers, making the PSU banks, worst affected by the growing malaise called ‘ATTRITION’ and ‘INCREASED LABOUR TURNOVER’.

 

Relevant posts:

• Requiems from the daughter of a bank employee

• Pestered bank manager find ultimate solace in the frigid embrace of ‘DEATH’

• STOP CRUCIFIXION OF HONEST OFFICERS IN PUBLIC SECTOR BANKS-- THE ‘DEATH KNELL RING ON AND ON

• Comments requested from General Secretaries of AIPNBOA And AIPNBOF,why bank employees are subjected to such ignominy and humiliation?

• ‘Retaining By Rewarding’ The ‘HR’ Dictum so perfected in Private Sector Banks

http://mitalismusings.blogspot.in/2012/05/psu-bank-employees-in-indialeaving.html

MY COMMENTS ON ABOVE ARTICLE

This article has been very nicely presented and portrays the real economic future of bank employees and when employees are disheartened, depressed, frustrated, dejected,rejected and unhappy one can visualize the health of the organization they serve.

Writer of the article, You deserve sincere appreciation from all bankers. But union leaders and officials constituting top management who are working in nexus with each other to loot the public money in the name of credit growth and waiver of loan will seldom find it relevant and eye-opener. Unfortunately these corrupt top officials have failed even to sustain projected and targeted credit growth rate and comparable growth in profit despite all freedom given to them and despite their talking of merit in promotion processes.

 Bankers should not insist for five day week but focus on respectful living, respectful wage revision, and refund of unlawful money extracted from PF optees, seniority based promotion, timely promotion and respect to seniors. Real bankers must demand stopping of recruitment of officers in scale II or III or IV or higher in the name of merit. Officers directly recruited in scale III or IV can never be a better banker compared to an officer who has served the bank for two or three decades from clerical to officers in lower scale.  Bankers should try to save their bank from the clutches of corrupt bankers who are busy in earning illegal money through bad lending and ill-motivated compromise or waive of bad loans.

Whimsical transfers and arbitrary promotion of flatterers by giving him highest marks in interview or in group discussion and rejecting good officers by giving him lowest marks in Interview must be stopped immediately to improve the health of bank in public sector. Three decades ago when banks use to value senior officers , health of banks was much better than what is today when top bankers claim to have selected and posted so called meritorious officers at key posts.

Fraud and role of money and flattery in recruitment, transfer and promotion have strike at the root of health of bank and this is why sickness in banks have been continuously growing despite several appreciation by ministers and RBI officials. In the name of reformation, liberalization and globalization Known as LPG, our great PM and FM have spoilt the future of hundred crores people of India and history will never forgive such brainless people.

Government is totally confused and at a loss. They are unable to visualize any remedy to fiscal problems India is facing because their mindset is prejudiced with probable benefits of policies of so called reformation launched in the year 1991 in the name of name of liberalization, privatization and globalization (LPG). This LPG cylinder mishandled by corrupt politicians has ignited fire and will burn all assets earned in the past before reformation era if remedial steps are not taken by government .

In the name of stimulus package government gave unprecedented favour to business giants’ after 2008 subprime crisis which erupted in USA and some European countries, number of billionaires has doubled or even trebled and even more. But on the contrary, during the same period of reformation , position of poor and middle class people have deteriorated sharply and they are unable to even run their life respectfully and peacefully.

Similarly bank officials are apt in making policy but who are unable to execute policies honestly have run the bank as arbitrary ruler or as dictator. They have misused their powers to torture good bank employees and award flatterers as usually happened=s in the corridor of normal government departments. Now I am not astonished when banks are reported to be sick or rating agencies downgrading the rating of the bank or of India as a whole. It is not unexpected that youth who join the bank for earning livelihood under compulsion discard the bank job and prefer some private job inspite of probable exploitation in the hands of private employer.

 I am unable to understand when top management have been promoting officers for last two decades, (earlier it was seniority based) through fast track or through merit channel or when they are picking talented boys from campus and when they use transfer powers to sideline officers who do not perform as per their personal expectations, why they failed to improve the health and profitability of bank and how do they convince Ministry of Finance and RBI. They are fortunate that crisis in some foreign countries erupts and Indian counterparts in banks or in government get an excuse of global crisis to conceal their misdeeds and ill motivated performance.

Government will therefore understand sooner or later that until HRD policies are made good, transparent and honest, neither bank nor the country can dream of prosperity which will be long lasting in real sense not portrayed by concocted balance sheet as Raju did for Satyam. Introspection is inevitable and time is not away when real culprits will be punished by common men when mismanagement goes beyond control.