Campus Hiring In Public Sector Banks

I would like to ask a few questions to those CMDs of banks who still prefer campus hiring and who feel that existing officers in their bank who have experience of decades are inferior.I like to ask these questions to those executives of banks who still advocate campus hiring as a tool to recruit talented youth . I like to ask these question to those bankers who wish to appeal Supreme Court against High Court verdict against campus hiring. 

High Court Mumbai in the first week of May 2013 in a case filed against Central Bank of India has made it abundantly crystal clear that appointing youth from campus by public sector banks is illegal and unconstitutional. Learned judge of High Court has cited various clauses of the existing laws and that of the Constitutional provisions to substantiate their order against campus hiring. 

Still CMDs of a few banks plead that campus hiring is necessary for survival and for good health of bank and this is why they are bent upon continuance of illegal and unconstitutional method of recruitment through campus hiring. In order to serve their ego, their ill-motivated task and to perpetuate corrupt culture in bank, they have been making all efforts to convince Ministry of Finance and to make an appeal to Supreme Court. I submit following few questions before them to answer.

Why probationary officers recruited in banks through All India test and after passing through ordeal of vigorous interview and group discussion are inferior to those who are recruited from campus?

They say that specialists are selected from campus. How do they come to conclusion that youth selected from campus for the post of specialists like credit officers are better than those officers who have been working as credit officer in their own bank for decades?

Why do they like to recruit officers in higher scale II or scale III or scale IV and not in scale I? Why do they like to officer higher wages to youth picked up from campus and deny the same to officers working and performing excellently for years in their banks without any murmuring?

How do they dream and predict that officer selected for recruitment from a particular colleges only are more competent and talented than youth of any other college of the country?

How do they judge within three to five minutes of interview that an individual appearing before interview board in a particular campus will be able to perform specialized job in a way better way (than their working officers) which bank intend to be performed by such recruited officer?

Will they submit an affidavit by oath that all such specialized officers recruited through campus during last five to ten years are doing only specialized work for which they were recruited? And will they certify that the same nature of work cannot be performed better by low paid officer of that bank?

 How do they come to conclude that freshers picked up from a college campus will be able to understand the intricacies of bank’s job? How will they judge honesty and integrity of such youth?

How dare they assign the post of Branch Head to such directly recruited officers without testing their love for bank customers, their honesty and integrity and their capacity to judge the creditworthiness of a loan seeker?

Will they honestly admit that merely educational qualification or high marks given by colleges are not sufficient for service oriented industry like Bank?

Will they say on oath that majority of officers recruited from campus are doing better than already working officers performing same nature of work since long?

Will top bankers make it clear why more talented youth cannot be selected for specialized posts through All India test in the same way as normal officers are selected?

Is there any college in the country which imparts training on skills needed for banking job and especially for work supposed to be performed by so called specialized officers?

Offices who have been working in a bank for years together and who have been performing satisfactorily on all types of works are also subjected to written test, group discussion and interview in addition to various weightage given to such officers on parameters like educational qualification, experience, rural posting, honesty and integrity etc for their promotion from scale I to scale II and so on.

When top bankers are not able to assess the ability and capability of these officers who have served their bank in various capacities and on various desks, how do they imagine testing the merit and demerit of a youth in campus within five minutes of interview?

Why corrupt bankers sitting at top post keep the provision of interview in all promotion processes inspite of the fact that all officers who appear in a promotion process has served 5 to 35 years in the same bank?

When tested and attest services of an officers for 5 to 35 years is not sufficient to judge the ability of an officer for promoting him to higher scale , how do the top bankers judge the merit and demerit of the same officer in 2 to 3 minutes of interview?

Obviously bank executives who are empowered to recruit and to promote an existing officer are least bothered of the quality of officer but more concerned about the quality of flattery and bribery available in an officer. They pick up mostly those officers for promotion who can earn bribe for them and who can flatter blindly and who are perfect yes-man.

It is worthwhile to mention here that bank management always claim that they have resorted to campus hiring to pick up talented youth and they have so called merit oriented promotion policy in their bank to pick up talented officers for promotion to higher scale. Still the volume of bad assets is growing year after year, volume of fraud has been increasing quarter after quarter and cases of bribe based lending have been increasing month after month.

Why credit officers treated as specialists and selected through campus in higher scale and at higher emoluments failed to stop financing for bad projects and why did they failed to monitor the borrowers as they were expected to ?

Why banks failed to nip in the bud, why banks failed to initiate action against bad borrowers as soon as the signs of irregularities and misappropriation of ban fund crept in to borrowers industry or trade?

Why specialist credit officers recruited from campus failed to stop and contain bad debts? Will top banks on oath say that all bad debts are only due to global recession or natural calamities or due to interest rate hike?

 Every public sector bank spend crores of rupees every year on training and every years hundreds of officers are trained on various skills needed for bank's job. There are examples of bank which give year long training to an officer to make him or her perfect credit officer. still these trained officers are not treated better than those who are picked up from campus ? 

Why?  

 Is training system in these banks totally useless and worthless? 

Will banks stop spending on these colleges and faculty members?

And if even year long or month long training imparted to an officer on any subject is not enough to make him able and capable, how do the top bank executives who advocate campus hiring find it easy  comfortable and beneficial for bank to pick a totally new youth from a campus?

Will top bank executive introspect and admit that expenditure of training made by that bank is also a fraud with the system?

Will banks admit that recruitment of probationary officers in bank through All India test or through IBPS is also a cheating game played by IBPS ( manned by top retired and corrupt bankers only ) in nexus with bank officials?

It is also to be kept in mind that even top companies under IT sector also do not find all youth from B School or Technical colleges fit for their job. Moreover all youths selected for a particular job is first trained to develop skills as per requirement of the company and then a work is allottedto him.

Private companies can pick up youth for job in their company even from his neighboring house or from the house of relatives and friends to oblige them. Can government allow such nepotism in public sector units too?

IN fact poor and middle class students cannot afford expenses required for higher education , it may be MBA or BE or medical. As such poor person even if more talented than a B school youth may not get chance for job any time any where if private as well as govt companies fill up their vacancies from a few high profile campus only. In my opinion even private companies should follow the principles of equal opportunity for all when they employ person more than 100 person 

Minister Appoints His Man As Director of Bank

Personal auditor of family companies of Minister Mr. Bansal elevated to the post of director. This is not astonishing in Indian context. Most of directors, Executive directors and Chairman and Managing directors are appointed on the basis of their closeness with Ministry of Finance or RBI top brass or Ministry of other departments who holds good relation with MOF and RBI. It is not easy to expose the underhand dealing (bribe in cash or in kind) in all such appointments.

Bansal has  appointed his relatives, friends and close associates or promoted them or directly or indirectly motivated competent authority for appointment or promotion of existing officials based on recommendations of  his or  his relatives and it is  not a new phenomenon. 

Practically all ministers are involved in improper recruitment, appointment, promotion, posting and transfers. It is beyond doubt that appointment of ED or CMD in banks usually takes place only after some illegal deal behind the scene. Similar course of action happens for promotion of officers Below ED or CMD level i.e.from a scale to another. 

Most of the directors which are ruling party nominees are those persons who have failed in political career or who are in old age. 

In brief, post of  ED and CMD are either used for obliging a closely related person or sold at some price. Very few get success purely on the basis of their merit and performance and they are promoted to show the common bankers that merit is also respected by promotion committee..

But if CBI honestly investigates into all appointments made during last five to ten years it will be clear that so many Bansals directly or indirectly related to Minister’s family  have got key post not only in banks and insurance companies but also in other Public sector undertakings.

If promotion process of all Public sector banks PSBs is honestly investigated by CBI , it will be found that many Bansals have got quick and out of turn promotion and are now holding key posts in banks. History of promotion process and transfers is full of corrupt dealings. Many efficient officials are rejected and incompetent officials are promoted and this is well established culture.

Even judiciary cannot provide justice to any aggrieved officer because e of the fact that it takes decades in delivery of justice and by the time it delivers justice, the person improperly promoted gets retired and those who are improperly rejected get frustrated and decides not to apply for promotion.

Top executives of the bank spend crores of rupees to ensure that either the court case is indefinitely delayed or the aggrieved officer who filed the court case is motivated,bought or intimidated in such a way that he or she prefers  joining  line of action dictated by such corrupt but powerful bankers..

Once, with the help of a Godfather,an Orriya officer was elevated to top post in a bank in late nineties,   it was seen in later years that all junior Orissa based officers started getting success in all promotion processes despite weak knowledge, inefficiency, incapability and charges of corruption leveled against him and most of honest and capable officers of other regions got rejected .

In eighties, when south based officers had strong lobby in upper echelon of the bank, 75 percent of officers used to get promotion from South India. In a bank top leader of officer’s association was from West Bengal, it was observed that Kolkata based officers got home posting whereas officers of other state used to be thrown from east to west and north to south and vice versa.

Since most of officers in the rank of General Manager and Deputy General Managers who are part of Interview panel  constituted for promotion processes every year are normally from Metros, officers of Metros are promoted when without they do not have rural experience as per government guidelines. Every year clever and cunning top officials of the bank change policy meant for of promotion processes as per their whims and fancies and they due to their good relation with MOF get clearance form MOF.

When a GM or DGM wants to promote an officer despite all negative points he first change the rule of the game for that year and then promotes officers of his or her choice. Sometimes they promote officer on taking an undertaking that he or she will serve rural areas after getting promotion and sometimes he gets relaxation of rural condition from Ministry of Finance. 

Similarly length of service is relaxed every year to promote officers who are preferred boys of top executives. I may say without any hesitation that most of the time officials of Ministry of Finance who give permission to change the rule of the game year after year either do not know the intricacies of the change in rule or they do not have time to look into pros and cons of the matter and to testify the rel intention of the bankers. This is why banks are going from bad to worse and MOF is silent spectator of all evil works.

In brief one can say with ease that polices are changed and twisted every year to suit the whims and fancies of top executives without taking care of safety and security of assets of bank.

Saiyan Bhai Kotwal To Dar Kahe Ka' is very famous proverb. It means when the police is in the hands of thieves, there is no fear of getting caught in the minds of thieves. Similarly when a person has close relation with a minister, he can use this closeness for any benefit in Indian environment. As soon as a bank official comes to know that a person X is close to a powerful minister, he becomes ready to do anything for him, to please Mr. X. Sanction of loan to the tune of hundreds of crores of rupees or waiver of existing loans are not new things for bank executives.

Flattery starts immediately at all level when Mr. X (close to minister or friends and relative of a minister or any powerful officer) reaches any office. Not only this, even persons close to Mr. X , or directly or indirectly y related to Mr. X also become powerful and they also start using, abusing and misusing the relation of Mr. X with the minister or powerful officials. Violation of rules and deviation from existing laws then become the way of life, way of working and also a mater of praise in all corners.  And the bitter truth is that even the minister feels elevated when he or she comes to know that his position is so important that people from all corners of the country are pouring in and offering him frequently flower bouquet and costly gifts at every occasion, not only to his minister but his friends and relatives too.

 Majority of ministers, politicians, powerful officers in government departments, banks and insurance companies are victim of this disease. Officers in bank who are mostly number one flatterer can go to any extent to earn the good will and blessings of a minister so that he gets not only quick promotion and good postings but also  his evil works are protected at all place and no one dare take punitive action against him for his ill-motivated works.

Corruption grows like cancer and honest officers who have got no God father are sidelined by this corrupt system. As such it is first necessary to end this culture of flattery and bribery to cure the cancer of corruption and for this purpose India need honest and devoted person to head each and every department and at the same time all agencies alike CBI, CVC, CVO, Anti –corruption Bureau, judiciary, Police, administrative officers    etc start working honestly, effectively and sincerely. If this does not happen , good officers like Mr. Khemka will always be thrown in deep sea and Vadra like person will grow faster and faster

Pawan Bansal's kin was recommended for Canara JV

NEW DELHI: Canara Bank nominated a nephew of embattled Railway Minister Pawan Bansal to be an independent director on the board of a large insurance JV it set up with Oriental Bank of Commerce (OBC) and HSBC Insurance Holdings. The nephew, Chandigarh-based entrepreneur Vikram Bansal, was recommended for the post by Sunil Gupta, a director of Canara Bank.

As ET reported on Wednesday, Gupta is a chartered accountant for a number of companies owned by the minister's family and became a director in state-owned Canara Bank when Bansal was the junior minister for finance responsible for expenditure, banking and insurance.

Bansal, the nephew, became an independent director on the board of Canara HSBC Oriental Bank of Commerce Life Insurance Co. in August 2010. He is also an authorized signatory of the company that posted premium income of Rs 1,912 crore during the 2012-13 fiscal.

The other independent director nominated by Canara Bank is Sid Khanna, who was formerly a global managing partner at Accenture and currently serves as the chairman of the buyout fund India Equity Partners. Canara Bank owns a 51% stake in the insurance JV, with OBC holding 23% and HSBC Insurance Holdings Ltd owning 26%.

Forty one-year-old Bansal runs an advertising company-BR Advertising Service-in Chandigarh and is also a shareholder and director in Bansi Raunaq Energy Group Ltd, a company in which Pawan Bansal's son Amit and the Canara Bank director Gupta both serve as directors. Gupta is also the auditor of Bansi Raunaq Energy Group. This paper reported on Wednesday that Canara Bank has given loans amounting to at least Rs 35 crore to companies owned by Pawan Bansal's sons and a nephew.

"If you ask me, they must have approached me for my experience in marketing," Vikram Bansal told ET, adding that he held a BCom (Hons) degree (government college, sector 11, Chandigarh) and an LLB degree from Punjab University. "I have experience in this field for more than 15 years so they must have felt I could help with marketing policies and related work," he said.

Bansal said he received no remuneration from the insurance company, apart from a sitting fee for board meetings- Rs 20,000 per meeting. The board typically meets four times a year. Bansal sits on four board committees, including the remuneration committee, policyholder protection committee and the board risk committee. Canara HSBC confirmed Bansal was an independent director on its board, but did not respond to questions about the circumstances of his appointment.

The company's list of authorized signatories on the website of the registrar of companies lists Vikram Bansal's residence as the same address that Pawan Bansal has listed as his permanent residence on the Lok Sabha website-House no. 64, Sector 28A, Chandigarh. Bansal said he was legally entitled to use the address as his mother held 50% ownership rights to the house. Vikram Bansal's father is Pawan Bansal's brother.

Bansal told ET he was recommended by Canara Bank director Sunil Gupta to be made a director on the board of the insurance JV. But neither he nor his companies had any business relations with Canara Bank or the insurance JV, he said.

http://articles.economictimes.indiatimes.com/2013-05-09/news/39143957_1_canara-bank-insurance-jv-independent-director

Auditor of Bansal clan firms 'handpicked' for bank director's post

HT Correspondent , Hindustan Times
Chandigarh, May 09, 2013

Vikram Bansal, nephew of railway minister Pawan Kumar Bansal, had recommended the name of an auditor of the companies run by the Bansal clan for the post of director of a nationalised bank, it has emerged from the investigations.

http://www.hindustantimes.com/Punjab/Chandigarh/Auditor-of-Bansal-clan-firms-handpicked-for-bank-director-s-post/SP-Article1-1057719.aspx

Selection Of ED And CMD of Public Sector Bank

Vigilance officials say their task is daunting, as complaints of irregularities start pouring in once a candidate has been selected. "There are all kinds of complaints. Some as frivolous as that the candidate has distributed gold coins in the ministry," a finance ministry official said, adding that in some cases the complainants and addresses were fictional or the objections were filed on forged letterheads. 



http://dkjain4970901092007.blogspot.in/2012/10/selection-of-ed-and-cmd-of-public.html

CBI links Railway Protection Force to cash-for-jobs scam: Sources

Arunoday Mukharji CNN-IBN | 11-May 13:52 PM

New Delhi: The Central Bureau of Investigation (CBI) has secured key leads linking Railway Protection Force (RPF) to Recruitment Scam to Railway cash-for jobs scam, said sources. CBI sources added that RPF officials played key role in dubious recruitment deals.

Leads suggest that RPF association was used to carry out deals and a hawala route was used for cash dealings. The Home Ministry had recommended banning of RPF Association but the Railway Ministry turned it down, revealed sources.

Railway Minister Pawan Kumar Bansal on Friday resigned over the bribery scandal involving his nephew, who received payments from a Railway Board officer in return for a promotion. Vijay Singla, Bansal's nephew, was caught in Chandigarh with the bribe money of Rs 90 lakh and arrested by the CBI.

Canara Bank had then given loans worth crores to the company owned by the Bansal family. The same bank had also granted loans worth Rs 25 crore to a company run by Vijay Singla, who is now in CBI custody.

Reports also said that the company run by Bansals' sons gave an unsecured loan to the minister and this contradicts his claim that he had no links with his family businesses.

http://m.ibnlive.com/news/cbi-links-railway-protection-force-to-cashforjobs-scam-sources/390988-37-64.html

Bansal clan formed companies to route bribe money: Jain
“The whole family of former railway minister Pawan Kumar Bansal is into corruption and they formed companies to channelise bribe money,” alleged Satya Pal Jain, former Chandigarh MP and BJP leader. Releasing documents about three companies where Bansal's family and relatives are directors 
http://www.hindustantimes.com/Punjab/Chandigarh/Bansal-clan-formed-companies-to-route-bribe-money-Jain/SP-Article1-1058327.asp

Are Complaints Against EDs Approved for CMD Posts Frivolous or Genuine ?

Collected from Website namely                                             www.allbankingsolutions.com

by

Rajesh Goyal  

Today (05/10/2012) an article has appeared in ET under the heading  "Frivolous complaints bog down selection of public sector banks chairmen".   The whole stress in the article has been that the delay in selection of CMDs for PS Banks is merely on account of frivolous complaints against poor CMD aspirants.   The article concludes  "the government, however, blames the Central Vigilance Commission (CVC) for the delay in clearances".     Can I know, when was the final decision for  taken?   After this decision, for how long the files are pending with CVC?  Is the delay due to CVC clearance or the hectic lobbying of manipulators in MoF for plum posts ?  There is a need to ponder on these questions to reach the bottom of the issue.   National media needs to be more responsible in side tracking the main issue of corruption. 

http://dkjain4970901092007.blogspot.in/2012/10/selection-of-ed-and-cmd-of-public.html

                                                                                  

Corruption IS Incurable Cancer

Government ruling the country from Delhi decides the direction of the country and slowly unwritten message reaches in the minds of all officers and ministers. Similarly Ministers are role models for MLAs, MPs, Powerful junior level politicians and supporting political workers. In the same way CMD and ED of a bank decides work culture of that bank.

Ministers need not accept bribe money personally in hand and leave a proof of corruption. The lip movement, eye movement and facial expression of ministers in dialogue, in office and in public meetings are enough to indicate the aspirations of a minister. If the minister is characterless, greedy and corrupt , there are hundreds and thousands of service man and business man who are ready to offer bundle of notes , wine and woman as per whims and fancies of the minister in lieu of various license, rebates, tax evasion and clearance from charges of corruption.. 

This is why none of ministers are punished even if he or she has accumulated wealth of hundreds of crores of rupees in a span of two or three years..CVC, CBI, Audit and all have to work under the power of ministers and to protect his family from critical transfers and rejection in promotions. He or she has to flatter ministers and follow the way minister like and discard the work style which ministers dislike. If unfortunately a dispute arises in sharing of bribe money among various politicians and officers and media men, then and then only the exposure takes place and immediately the game to close the files starts .

 .

Similarly when an officer joins as Executive Director or as Chairman and Managing Director of a bank , the message percolates down the field level branches in a month or two about the liking and disliking of CMD,  character, honesty , sincerity towards work and his conditions for sanction of loan or supply work is conveyed to all nook and corner of the country without any written circular. 

In the same way as soon as an officer joins as Regional Head or Branch Head , junior level officers understand how to perform and how to pass the time under his leadership, whether to bring illegal deposits, whether to earn bribe in sanction of loans, whether to get commission in allotment of supply order or in purchase of goods and services.

When a hard and honest officer joins as Regional Head, corruption at branch level subside and on the contrary if the head is bribe earner, field functionaries start scoring fours and sixers . After all audit head, vigilance head, HR head or IR head or UNION head all have to work in tune with Regional Head and Zonal Head and finally in uniformity with Bank Head. ..As soon as an honest and hard SP joins a district , all criminals fly away from the district and vice versa.

This is why I always use to say that it is always the Head of an organization which creates or vitiates the work culture , who make or mar the future of the organization , who promotes flattery and bribery in workforce under him or who inculcate honest and performing work culture. . Juniors have very little role to play and for survival peacefully in the system, he or she has to follow the dictates of the boss under whom he or she has to work. TN Shesan , ex Election Commissioner paved the way to move for all election commissioners and made his brand image .Sri Vinod Roy like persons are very few in audit departments. Khemka like persons are thrown away from the system. And so on.

When the question of ROTI, Employment, and Family peace comes to the mind of a honest worker, he is tempted to discard his honesty and follow the way and path a bad boss dictates verbally or on phone. .

This is why top bosses are never taken to task and this is also undeniable true that as long as top bosses are not taken to task , culture cannot change at field level 

In our country police officer is master of Thieves, when CVC is protectors of corrupt executives and politicians , when CBI is puppet in the hands of Ruling Party leaders , one cannot imagine of any action against the real culprit.

RBI and Ministry of Finance are those who appoint corrupt bankers as CMD or ED or director of any bank, Auditors are manageable by companies and so on. There is none as such who can be relied upon for honest inquiry and honest action. 

Indian judiciary is also Bhagwan Bharose, delivers justice after two or three or four decades and sometimes that also fail like in the case of Sikh Riot or Lalit Narayan Mishra case.

Corrupt bankers have been advised by finance Minister to investigate into charges leveled by Cobrapost .It will be foolish to expect a corrupt officer will accept and admit the corruption of his subordinate. None of bankers have courage and neither have willingness to say spade a spade. They will make all efforts to prove that Cobrapost exposure is false and meaningless. 

 Dy governor RBI has already exonerated CMD of private banks and there is no doubt that he will give clean chit to CMDs of all public sector banks. Because they give the logic that Cobrapost has exposed the fraudulent business model of banks which promotes black money and money laundering but has not proved that actual fraud has taken place. He says attempt to dacoity ,attempt to loot attempt to kill, attempt to rape are not crime as long as he is caught in camera that he has looted the money and flied away, he has raped and flied  etc 

RBI and MOF are therefore still not ready to understand that there is much blacker picture hidden in books of accounts of all banks and all companies. Black money is parked in all banks and every layman knows it very well.

Our Finance Minister has already expressed apprehension that if ED accepts all cases and starts investigation, people will not work, and business will not grow and so on. As such he use to restrain ED or CBI or Anti corruption bureau or RBI or Mr. D K. Mittal when they try to impose discipline and rule of law.

Government accept it or not , the bitter truth is that all politicians and all companies including banks and insurance companies are indulged in unlawful and illegal activities to achieve various targets set by Government of India. Bank executives get promotion by achieving target through ill ways and means, and it is nothing but open secret. 

It is a undeniable truth that 75 out of 100 successful Branch Heads , Regional heads, Zonal Heads, Circle heads and Bank Heads (CMD) are ready to accept black money to increase their deposit base and to achieve the target. They are ready to even spend some money (pay bribe out of bribe earned on sanction of loans or by debiting expenses or by personal salary) to mobilise deposit from government department. 

When majority of successful bankers use illegal means to acquire deposit and get promotion , how it can be expected these senior officers will honestly punish the real culprit. At best they will take action against a few officers whose face and name has figured in Video camera and in sting operation carried out by Cobrapost. 

When majority of officers are birds of same feather, real action cannot be taken against real culprit who has propagated wrong business model and who have vitiated work culture.In fact a bank officer cannot get success in his life and cannot get promotion even in decades if he or she sticks to set rules and laws . 

The bad culture is so deep rooted in the blood of so called successful bank executives that an officer is tempted to resort to accept even bad money to achieve the target and to grow in his or her career path. In fact all those officers who are sitting at key posts have resorted to bad means for mobilisation of deposits. It is undeniable bitter truth of banking at all level.  

There are about one lac branches of banks all over the country, and in at least 10000 branches, officers apply all right or wrong methods to achieve the target fixed for deposits. Bad culture of deposit mobilization is not new in banks, this bad culture has been continuing for decades and will be found in almost all branches of all banks.

Can government and RBI has capacity to inquire into conduct of all these ill-motivated officers who are selling all ethics to get quick promotion and to get large sum as incentives? 

Even Chief Vigilance Officers or Chief Vigilance commissioners or CBI or team of auditors knows  the art of closing the files of corruption if they are assigned the task of investigation by bank management.

Auditors have been certifying the correctness of balance sheet of all companies but ninety percent of Balance sheets are manipulated and have got no relevance with real truth of accounts.

Majority of Ministers are facing corruption charges, they do not have time to look into or even peep into Cobrapost exposure. They will very soon announce that banks are safe and there is no violation of KYC norms as they say there is no violation of norms set by RBI for income recognition and asset classification of banks. All senior officers and all ministers will exert their best efforts and leave no stone upturned to give clean chit to senior bankers by making some of junior level officers as scapegoat.

After all, this in a well established Indian culture. People now say  “Sab Chalta Hai”

Give all protection to dishonest and punish or sideline all honest persons so that corrupt line of action may be continued for good and forever and which helps in growth of personal wealth of all powerful officers and powerful politicians.

Latest News 6th May 2013  Government Asks CMDS of Public Sector Banks and LIC to Initiate Immediate Action Against those Exposed by Cobrapost, Red Spider 2 Expose

In connection with Cobrapost, Red Spider 2 Expose that was released today morning, the Secretary, Department of Financial Services Shri Rajiv Takru has asked the Chairman cum Managing Directors (CMDs) of various Public Sector Banks (PSBs) Including Allahabad Bank. Andhra Bank, Bank of Baroda, Bank of India ,Bank of Maharashtra, Central Bank of India, Dena Bank, Indian Overseas Bank, Punjab and Sind Bank, Punjab National Bank, UCO Bank, United Bank of India, Vijaya Bank, State Bank of India, State Bank of Bikaner & Jaipur, State Bank of Patiala, State Bank of Hyderabad, State Bank of Travancore, Indian Bank, Corporation Bank, Union Bank of India, Canara Bank, IDBI Bank, Syndicate Bank, Oriental Bank of Commerce, State Bank of Mysore as well as Life Insurance Corporation(LIC) of India for an immediate action as follows: (i) Any officer/employee of your bank/institution who clearly appears to be advising potential customers along lines that would be an infringement of the legal process/could facilitate money laundering/could defeat the KYC norms or the norms of due diligence prescribed by RBI and the law from time to time, may be placed under suspension with immediate effect pending inquiry. The bank may initiate a detailed scrutiny of such officer’s work and institute a special audit, if necessary, for this purpose. The inquiry must be initiated and completed expeditiously. (ii) In case where the behaviour and conduct of the officer / agent is not such as would attract point (i) above but fails to meet the standards of conduct and behaviour expected of an officer / employee / agent of a public sector institution and/or brings the institution or is likely to bring the institution into disrepute, such person may immediately be divested of their work / portfolio and advised to voluntarily proceed on leave while a detailed examination on the same lines as above is conducted. Beside compliance on above points, the Secretary, Financial Services has also asked for a detailed report on utmost priority with the name of the employee/designation and action taken.

Why Campus Hiring is Unconstitutional , Illegal and Improper?

I submit here under a question put forward by a facebook member before I submit my opinion on few points related to campus hiring. Following message will clear the minds of a lot of youths who are pleading for campus hiring on some ground or the other.

Mukesh Kumar"----- I can't understand why people are so jealous about campus recruitment..Recruitment from a good college which has taken admission on the basis of cat score is absolutely right. Mark my word that students who have scored well in cat can easily qualify any Bank Po exam, but very few who qualify Bank PO exams are capable of cracking CAT.

Agree that Hiring from a lower grade college which has not proper admissions criteria is wrong. So you cannot blame ALL Bcoz of few. Even in PO recruitment many unfair means are used. SO should it be stopped also???

The Campus recruitment policy should be tightened, but not be stopped.

My Opinion"---------

It is absolutely right that a person who can crack CAT can pass PO test but a person who is PO may not necessarily be able to crack CAT. But the question is that in campus hiring, it is not necessary that the employer will pick up only talented boys from CAT scorer only. When power comes in the hands of executives, he may go to any reputed or not- reputed campus where his relatives are admitted and employ his own boys and girls in the name of talent. It is also true that few of POs recruited through ALL India test are also weak, corrupt and inefficient. But this does not mean that employer should be given absolute power to pick their staff from any campus as per their whims and fancies.

Moreover the number of good CAT scorer is not more than 5 percent of total MBA available in India. If campus hiring is done only from IIM or IIT colleges, what will be the fate of those MBAs who are though talented but who are unfortunately admitted in other colleges?

As such it is not a question whether campus hiring is good or bad, it is the question of honesty of employer. In public sector the general managers who are empowered to recruit from campus do not look into quality of guys but the bribe or gift he or she offers to middlemen. In private sector employer pick up only those candidate who can enhance business growth.

There are hundreds of such unemployed youth who are not admitted into IIM or IIT due to various reasons, but their knowledge level is remarkable high. There are many youth who are resident of small towns and villages who are talented but will never get an opportunity to crack bank PO exam If all banks are permitted to fill the vacancies from campus.

Will anyone still consider Campus hiring as proper, legal and constitutional?

It is perhaps known to all that most of MNCs and big companies in IT sector go to reputed technical colleges in Bangalore and Chennai and reputed colleges of MBA. Student s of other less reputed colleges may be more talented but he or she will not get an opportunity to get job offer in campus. Our Constitution does not allow discrimination in employment opportunities especially to employer coming under government control.

It is therefore advised in the Constitution that public sector employer should conduct exams and interview to give employment in a more clear and transparent  manner so that manipulation and misuse of power may not spoil the future of not only unemployed youth but also the future of PSUs.

Some of the banks use to say that they pick officer from campuses for specialist job. In my opinion IIM colleges teach marketing tactics but not teach banking or credit  processing or forex dealing etc There are many officers recruited from campus as credit officer in banks  but in fact that they not know ABC of credit processing . They learn credit processing only by working in credit department for a year or two which any other officer can also learn who has been recruited through All India test . 

 In such position , the act of bank management of recruiting credit officer directly in scale III and not giving the same opportunity to scale I officer who are well versed in credit and who are waiting for promotion since long is totally improper, and illegal and unjustified.

I therefore have no hesitation in saying that bank management who are advocating campus hiring are not interested  for the gain of bank but for serving their vested interest only.  Power usually corrupts person and absolute power promotes total corruption .Everyone must keep this in mind.


What I mean to say that students enrolled in IIM colleges or IIT colleges are 

not only talented, students of other MBA and Technical colleges are also 

talented and they must be given equal opportunity in employment by all 

government departments.

Campus Hiring Illegal AND Unconsitutional

Officers selected and appointed in banks through All India Competitive examination in scale I are considered inferior by corrupt team of top bankers who prefer campus hiring. These corrupt bankers go to a campus where a few of their known children are admitted and give them job in higher scale II or scale III. Corrupt officers do not hesitate even in paying double the salary because they have been given free hand by RBI and Ministry of  Finance in the name of reformation.( If Officers selected through All India test are really inferior , then entire team who took part in recruitment  process for recruitment of Probationary Officers in the bank may be treated as inefficient , corrupt and incapable and hence it is they who deserve immediate punishment and removal from bank's service)

When these officers (recruited through campus ) join bank, they perform the same work which Probationary Officers recruited in Scale I through ALL India test use to perform. POs are doing the job at total average salary of say Rs.25000 which scale III officer drawing an average salary of Rs.50000 will do.

Further Scale I officers who have served the bank for a decade or two or even three are considered inferior in promotion process for promotion of scale III officer to scale IV officer whereas a campus recruited scale III officer is promoted to scale IV even after having banking exposure of two or three years. For promoting an officer from scale I to scale II banks required experience, rural posting, educational qualification,good marks in APAR , group discussion , computer skill test, written test and finally good score in Interview and they want to select only one out of four candidate applied for promotion. But in case of campus hiring in scale I or in scale III they do not require any such pre-conditions.

But Corrupt top bankers who prefer campus hiring can judge the quality of freshers in IIM colleges in two minutes of their interview whereas same top bankers cannot judge the quality of existing and already serving officers in junior scales for  two or three decades 

Campus hiring is a tool in the hands of top ranked officers to earn money by bribe or to recruit their kith and kin in the name of talent. In my opinion, campus hiring by public sector banks is nothing but unconstitutional and illegal and gives scope for nepotism ,bribery and flattery only. I therefore salute Judges of Mumbai High court who have treated such campus hiring as illegal and unconstitutional and I hope the lines of judgement will open the eyes of all regulators like RBI and Ministry of Finance if honesty is left to little extent.

 Not only this ,such type of campus hiring is enough to produce  discouragement and frustration  among the existing workforce who have to work under a much junior officer and thus badly affects the work culture . This is direct loss to bank not only in money terms but also this damages the quality of assets.

Top ranked bankers who are still advocating campus hiring and who are advocating appeal in Supreme Court against high court order are real enemy of bank and they must be taken to task by government of India and RBI. It is these ill motivated greedy officers who have caused rise in bad assets through their complete negligence and lack of monitoring because they are always busy in earning bribe and costly gifts.

I would rather like to request Ministry of Finance to act fact and ensure all evil motivated recruitment made by these corrupt bankers in the past are cancelled and those who recruited officers through illegal means and wrong ways must be punished so that in future none of top bankers dare acting in whimsical manner.

They should keep in mind that three decades ago probationary officers recruited in banks used to treated at par with IAS and IPS officer and the quality of PO used to be the best and the performance of branches headed by these POs used to be the best .

Unfortunately the rampant corruption at top level has damaged the work culture completely. For this evil culture, GOI and MOF are also responsible who use to appoint Executive Director and Managing Director after taking lacs and crores of rupees as bribe through their juniors and various middlemen ( including corporate houses) working under them .

At least people will now believe after hearing the news of nephew of Railway Minister Sri Pawn Bansal who has been arrested by CBI on similar charges of bribing. This is not astonishing for me because in my opinion this has remained a regular phenomenon. And this is why none is interested to stop such unhealthy practices.

CBI should be asked to investigate how much money is paid by business schools , MBA collages, Technical course Colleges and top ranked graduation course colleges to top ranked bankers for calling them in their campuses for recruitment. Private IT sectors or other private companies are obliged in various manners for inviting them in their campuses for recruiting freshers in job in their companies by various colleges and institutes.

Will government allow such unethical practices to continue in government department and in public sector undertakings?

If yes, will  ministers recruit their Chief Secretaries directly from campus at the cost of future of IAS officers serving at low level for decades?

Will government allow PSUs to recruit engineers and UPSC to recruit IAS officers from IIM and IITs in the same way banks are bent upon recruiting youth from IIMs and IITs despite adverse court order from Mumbai High Court and against the spirit of Constitution which advocates equal opportunities for all?

PSU banks stop hiring from B-Schools after court order--Business Standard

Central Bank of India to appeal to SC against order

Public sector banks are now planning to appeal in the Supreme Court against the restriction imposed on hiring from business schools. A recent ruling by the Bombay High Court had said restrained campus recruitment for appointment of officers by Central Bank of India.

M V Tanksale, chairman and managing director, Central Bank of India said his bank will appeal in Supreme Court against the Bombay High Court ruling that restrained the bank from recruiting MBAs through selection at campus. He added that the bank is picking up management graduates from campuses for specialised jobs under autonomy granted by the government, which is their owner.

Another top executive with a large public sector bank said while the high court verdict may have been in case of specific bank, it is going to have implications for other public sector banks also. The official added that the issue will be taken up with the Indian Banks Association.

Management institutes are the most preferred destination to recruit talent for the special posts in banks. With good talent available aplenty, the banks do not need to scout for talent elsewhere. Hence, banks prefer to go for campus hiring and pick students, especially from finance and marketing/strategy backgrounds.

"Being listed entities there is expectation to work with private sector efficiency. Public sector entities tend to get the residual talent from management campuses, so for us  it is quite a challenge to do a balancing act," a public sector bank official added.

While the court decision has been bank-specific, other banks have also followed the judgement. Shubhalakshmi Panse, Chairperson & Managing Director, Allahabad Bank said, "We were going to campuses till last year. But there has been some court case because of which we are now not allowed to hire from campuses. That is why we are recruiting through IBPS (Institute of Banking Personnel Selection)."

She added that till the final judgement comes, they will be recruiting through IBPS. IBPS is an organisation which helps client organisation recruit personnel for the various roles.

The Institute not only helps to identify talent to be sourced from the market through the recruitment process but also helps to identify employees within organizations with the necessary competencies to cope with roles and responsibilities.

Though management institutes have mostly completed final placement process, they are worried that this decision will affect their students in the coming period.

"Given the slump in the job market, public sector banks were offering good positions with decent packages for students. Now, it is going to be further challenging for students to find a secure job," said the placement head of a Mumbai-based business school.

Human resource consultants also explained that management students hopeful of getting placed with public sector banks would have to find other options. The senior official of a New Delhi based HR consultancy, who is involved in public sector recruitments said that government banks are preferred by students as they offer job security.

"While pay packages may not be very high, these candidates are comforted by the fact that these firms do not have a hire-and-fire policy. Especially when the job market is slow, these banks could have offered excellent career opportunities," the consultant said.

http://www.business-standard.com/article/finance/psu-banks-stop-hiring-from-b-schools-after-court-order-113050400416_1.html

Vigilance officials say their task is daunting, as complaints of irregularities start pouring in once a candidate has been selected. "There are all kinds of complaints. Some as frivolous as that the candidate has distributed gold coins in the ministry," a finance ministry official said, adding that in some cases the complainants and addresses were fictional or the objections were filed on forged letterheads. 

Click on following link to read more or rampant corruption in banks and specially in promotion and postings

http://dkjain4970901092007.blogspot.in/2012/10/selection-of-ed-and-cmd-of-public.html