Friday, November 11, 2011

NPA Management in Bank

State Bank of India is the biggest and the leader bank in our country. SBI is treated as largest bank because of its highest business profile and highest number of branches and it is called as leader bank among public sector banks because other banks follow what normally SBI do. It may be interest rate policy or loan policy or branch expansion policy, SBI normally shows the route to other bank. In the last week RBI deregulated saving interest rate and a few private banks raised interest rate on saving s deposit. But since SBI did not increase savings interest rate other banks are also silent on this issue.

Further SBI claims to be one of top ranked global banks and our government feels proud for it. I however feel that SBI may in near future become one of the most critically sick and sinking bank like Lehman Brother. Moreover when assets of bank like SBI starts ringing alarm signal, one can very well imagine the worst scenario prevailing in other Public sector banks. Credit growth and deposit growth, both have come down in SBI whereas NPA has gone up from 3.38%last year to 4.19% this September. Position of other banks is also bad but their exposure will take place only when fully adopt CBS system and applies honestly prudential norms of income recognition and asset classification as per system only.

It is true that net interest margin has gone up slightly because Public sector banks in general have stopped giving preferential higher rate of interest to bulk depositors. But this is one time phenomenon. Cost of deposit will slowly go up because banks have during last year increased deposit interest rate many times for retail depositors and because of probable increase in savings rate. But banks in general will not like to raise interest on their advances to compete in the market and to abide by government directive or under pressure of Ministry of Finance or to extend preferred rate to preferred borrowers who extend golden gifts to officials of bank. As a result yield on advances will gradually come down and hence NIM will also see considerable erosion in forthcoming quarters. Provisioning will go up and up as bad assets grow in banks and there is no doubt that profit will come down and government will have to infuse capital time and again to fulfill Basel norms of Capital adequacy Ratio.

Obviously when credit growth is coming down, NIM is under pressure, ratio of NPA is going up quarter after quarter, provisioning need is increasing and other income is shrinking, future of not only SBI but that of all public sector banks appears to be bleak. Other banks have also published their balance sheet for the September quarter registering similar growth in bad assets, increase in provisioning and fall in profit.

Still RBI officials and MOF say that health of Indian bank is good. It is worthwhile to mention here that total of bad assets in PS banks as on 30th September 2011 has crossed one trillion rupees. Even Moody had downgraded rating of SBI and in last few days Moody lowered its outlook on banking system, showing slowing credit growth and concerned about asset quality..

It is disheartening that even legal tools are not strong and effective enough to recover amount from willful defaulters. Lacs of cases are pending in various district level courts, DRT and high courts for several years and even if decree is granted by court of law , district administration and police officials are not interested to act swiftly and effectively against bank defaulters because they also get gifts from such recalcitrant and willful defaulters.

To add fuel to fire, politicians use to announce from time to time various loan waiver schemes to enrich their vote bank. Moreover manpower position of all banks is very much poor qualitatively and quantitatively. Human resource management is the worst in public sector banks. Flattery and bribery has become the common culture and mantra for survival. Most of top ranked officials in public sector banks are those who were involved in bribe led lending and who added more and more bad assets in bank’s portfolio to get faster promotion and cream posting.

It is worthwhile of mention here that global financial crisis is also likely to adversely affect the health of already sick bank suffering from cancer of corruption. Most of the banks have sanctioned hundreds and thousands of crores of rupees to big borrowers to increase their loan portfolio and to achieve the target given by MOF. It will not be an exaggeration if I say top 1000 borrowers of all banks have been beneficiary of 50% of total loan portfolio of the bank. As such if due to recessionary pressure any one account out of top 1000 borrowers goes bad , the health of that bank will go beyond control and not only tarnish the image of banking industry but expose the empty or mischievous mind of Ministers and top regulators. It is well known that lending made in power sector, oil and aviation sector, real estate sector, diamond industry, Micro Finance Institutes etc are already on the verge of slipping into sub standard category and undoubtedly these high value bad assets will further add fuel to fire.

I am unable to understand when Government of India will wake up from its deep slumber and ministers will come out of hibernation to suitably diagnose the sick banks, punish top ranked bank officials and for this purpose make effective use of its administrative, police and legal powers.

I however make an appeal to RBI officials and our learned Finance Minister to open their eyes and ears and take corrective steps immediately to take care of banks before it is too late.
I can appeal but I cannot expect good result from any corner because FM or PM or CM or CMD or ED or any bank official, who all are surrounded by corrupt and flatters.
After all who will bell the cat?
Let us however expect some good result from movement launched by Team Anna or Ramdeo like persons and various organisations.

Thursday, August 11, 2011

Huge Debt Burden without Repaying Capacity

20 nations with the highest debt
Are the world's superpowers really rich? Well, not really. . .
The trillions of dollars borrowed to build the country's infrastructure and industry have turned into mounting debts. This in turn has tarnished their reputation as the world's economic powerhouses.
The world's biggest economy, the United States and many European nations are struggling with rising debt.
Once the envy of the world, these nations are now posing a threat to the world economy, being on the verge of enormous defaults.
Find out more about the economies that have the highest debt in the world...
1. United States
Debt: $14.590 trillion (9 August 2011)
Per capita debt: $46,929
Debt as in percentage of GDP: 94%
The United States has the world's highest external debt at a whopping $14.590 trillion.
The US public debt burden has become unsustainable and its debt and deficit ratio will remain high for a long period unless the government cuts down spending effectively.
The economic crisis in US began with the subprime mortgage crisis. Following this, the US economy fell into a recession in 2008. Flawed policies allowed lenders to offer loans to subprime borrowers without considering the risk of future default.
External debt (or foreign debt) is that part of the total debt in a country that is owed to creditors outside the country. The debtors can be the government, corporations or private households.
2. United Kingdom

Debt: $8.981 trillion
Per capita debt: $144,338
Debt as in percentage of GDP: 400
Britain's economy has also plunged into deep crisis. The budget deficit has risen to more than 156 billion pounds.
The manufacturing output fell by 0.4 per cent in June from the previous month as there is a drastic fall in domestic demand. The country GDP is expected to fall further.

3. Germany
Debt: $4.713 trillion
Per capita debt: $57,755
Debt as in percentage of GDP: 142
Germany which bounced back from the 2008 recession has largely remained immune to the crisis.
However, the US downgrade and mounting debt on other Euro zone nations could hit its coffers as well.
Germany already bears the burden of the 120 billion euros of the euro bailout fund's 440 billion euros. Germany's budget deficit is 2.3 per cent of gross domestic product.
4. France
Debt: $4.698 trillion
Per capita debt: $74,619
Debt as in percentage of GDP: 182
A crisis is imminent in France as its budget deficit is 6 per cent of gross domestic product.

5. The Netherlands
Debt: $3.733
Per capita debt: 225,814
Debt as in percentage of GDP: 471
The global financial crisis has hit The Netherlands badly. The Dutch economy entered recession in the fourth quarter of 2008.
In 2009, however, the GDP growth slipped by 3.9 per cent. The economy recovered slowly in 2010. In the third quarter the economy grew by 1.8 per cent.
The nationalisation of banks has dented the state's finances.

6. Japan

Debt: $2.441 trillion
Per capita debt: $19,148
Debt as in percentage of GDP: 45
The devastating earthquake and tsunami has pushed the Japanese economy into a grave crisis.
Japan's high rate of growth has also been hit with massive bank loan defaults.

7. Ireland
Debt: $2.253 trillion
Per capita debt: $503,914
Debt as in percentage of GDP: 103
Ireland faced a recession in September 2008, followed by a rise unemployment. Ireland was the first state in the Eurozone to enter recession.
8. Norway

Debt: $2.232 trillion
Per capita debt: $454,768
Debt as in percentage of GDP: 538
Norway escaped largely unhurt from the economic crisis. Unlike other debt-ridden nations, Norway is not a member of the Eurozone. It has its own currency, the Norwegian krone.
9. Italy
Debt: $2.223 trillion
Per capita debt: $36,841
Debt as in percentage of GDP: 108
Italy's economy has seen one of the lowest growth rates in the world. A very high public debt highlights the fact the country cannot repay back its debt. The country lacks the resources to accelerate growth.

10. Spain
Debt: $2.166 trillion
Per capita debt: $47,069
Debt as in percentage of GDP: 154
In Spain, long term loans, realty sector crash and bankruptcy of major companies, rise in unemployment at 13.9 per cent in February 2009 escalated the crisis.
11. Luxembourg
Debt: $1.892 trillion
Per capita debt: $3,759,174
Debt as in percentage of GDP: 3,443
Luxembourg has experienced a severe recession after the global financial crisis.
Luxembourg, being a financial nerve centre was badly affected b the recession. The pace of growth slowed down and unemployment increased.


12. Belgium
Debt: 1.241 trillion
Per capita debt: $113,603
Debt as in percentage of GDP: 266
Belgium is in deep crisis after market traders pushed the cost of insuring the country's debt to record highs.

13. Switzerland
Debt: $1.200 trillion
Per capita debt: $154,063
Debt as in percentage of GDP: 229
Many of the European nations living beyond their means by borrowing huge funds are struggling to streamline the economy. Swiss banks that suffered from the financial crisis were bailed out.

14. Australia

Debt: $1.169 trillion
Per capita debt: $52,596
Debt as in percentage of GDP: 95
The Australian economy's slow performance resulted in a sharp fall in the Australian dollar.
Australia's real GDP growth will be 2 per cent this calendar year and 3.5 per cent next year.

15. Canada

Debt: $1.009 trillion
Per capita debt: $29,625
Debt as in percentage of GDP: 64
Though battered by the 2008 global financial crisis, the Canadian economy has emerged as one of the strongest advanced economies in the world.

16. Sweden
Debt: $853.30 billion
Per capita debt: $91,487
Debt as in percentage of GDP: 187
Sweden went through a bad spell between 1990 and 1993. Its GDP went down by 5 per cent and unemployment rose to record highs. The real estate boom also crashed adding to its economic woes.

17. Austria
Debt: $755 billion
Per capita debt: $90,128
Debt as in percentage of GDP: 200
Austria's economic growth received a jolt with the global financial crisis in 2007-2008.
Falling domestic employment, fall in spending by households and enterprises pushes the economy into crisis.
18. Denmark
Debt: $559.50 billion
Per capita debt: $101,084
Debt as in percentage of GDP: 180
Denmark's economic woes started in 2007 with the crash of the housing sector. Housing prices dropped in 2008-09.
The global financial crisis further hit its prospects. In 2010, Denmark saw a slight recovery.

19. Greece
Debt: $532.90
Per capita debt: $47,636
Debt as in percentage of GDP: 174
Greece is going through its worst years. Uncontrolled spending and cheap lending has seen its debt levels zoom to scary heights.
Also, the failure to implement financial reforms has resulted in losses of $413.6 billion, much larger than the country's economy.
Greece and Ireland have the highest poverty rate in the 15-member EU, while Sweden has the lowest at 9 per cent.

20. Portugal
Debt: $497.80
Per capita debt: $46,795
Debt as in percentage of GDP: 217
Portugal's economy has posted an average annual growth of less than 1 percent over the past 10 years.
The country faces a huge foreign debt owning to reckless spending without generating any returns. Portugal is set to introduce austerity measures including tax hikes and pay cuts.


Tuesday, November 23, 2010

Identify Bad Bankers

I would like to request RBI or Government of India or Ministry of Finance and particularly to all responsible officials to prepare a list of NPA borrowers in various segment of amount involved and try to know the person who created , supported indirectly through Branches in generation of more and more bad assets known as Non Performing Assets (NPA).

RBI can call for such information from each bank and each branch. Now a day such information can be generated through CBS without any loss of time and without any discomfort. Even controlling officer can generate such list if he or she so likes.Excel sheet can be prepared very easily on following columns.

1. NPA Account with value involved upto Rs.10.00 lacs ( small borrowers)
2. More than 10 lacs to o 50 lacs (medium size borrowers)
3. More than 50 lacs to 5 crores (large borrowers)
5. above five crores. (very large borrowers)

Each segment should contain following columns so that it can precipitate the name of bad bankers.
1. Name of borrowers
2. Date of sanction
3. Name of Branch head
4. Name of immediate controlling head

Then select through excel and filter data as per person on all India basis. It means bank should prepare a list of all bad borrowers which have been sanctioned by a top executive say ED, then General Manager , Deputy General Manager and so on up Regional Head . Such list should be prepared for each and every executive in the bank starting from top scale VII to scale III.

First make a list of big amount NPA borrowers created by regional head or circle head in India during last five years irrespective of his posting (sanctioned directly by him or through branch manager working under him)’

This will indicate the name of executives who created maximum NPA and prove that such officials are getting fastest promotion and all such people are sitting on top post and hence there is none to punish bad officers.

Such executives have very good relation with top bosses and also powerful persons sitting in RBI and banking division. This is why no action is taken against top officials and in all cases of misdeed junior officers are made scapegoat. Such officers if trapped accidently can manage tactfully even CBI or vigilance officials and ensure closure of files or at least ensure awarding of minimum punishment.


This is why there is dissatisfaction in the branches and administrative offices among junior officers in all banks under public sector. Bank officers are least bothered at field level whether NPA is increasing or profit is shrinking. Clever bankers are always expert in making lame excuses of global recession or bad monsoons or debt relief and so on.

Corrupt officers are quickly promoted and posted at good places in big towns whereas good officers who are serious workers are placed at bad places and in critical branches.

It is therefore dire need of the hour to find out l corrupt officers at top level and ensure that they are punished and without which one cannot imagine of NPA coming down in any bank. When top officers will be booked to task , clear cut message will spread upto the bottom level officers and only then officers will desist from corrupt practices and top officers will not post and promote juniors on the basis of flattery of on the basis of golden and diamond gifts they get from juniors.

Only a healthy culture in bank can help in reducing NPA percentage and help in becoming top ranked performer bank.. Hitherto CEOs and EDs in banks are showing lesser percentage of NPA by increasing volume of fresh and short period advances or by selling NPAs to ARCs.

Tuesday, November 16, 2010

Non Performing Assets in Banks

It is not easy to stop corrupt practices prevalent in Public Sector Banks .Work done through contractors or goods bought through suppliers either through tender or without tender are more often than not of inferior quality, everyone knows it. Until management, government, judiciary, regulatory agencies, vigilance officials, monitoring officials, auditing officials and the concerned executing officials are honest one cannot imagine of punishment to guilty officials or to contractors who use inferior materials in construction works or to suppliers who supply lesser goods and inferior goods and charge high value. Banks therefore cannot stop corrupt practices in contractual work related to furnishing of premises or renovation of bank’s branches, ATM centers or administrative offices, but it can definitely stop corruption involved in its lending business. Though it is not easy to make the system fool proof of corrupt practices but a little effort in this direction may help in reducing the level of malicious lending and in turn help in keeping the NPA level as low as sustainable.

But the task of purification and punishment must start from top officials who support, propagate, irrigate and promote corrupt practices in lending. We have to punish top officials who indirectly or directly prefer commission in bulk lending, who aspire for costly gifts from junior officials on financing made by branches and who desire red carpet welcome is extended to them wherever they visit. We have to change rules and practices which discourage honesty and loyalty.

It is worthwhile to keep in mind that top official who are basically corrupt and possess acute greed for money do not leave any witness or evidence which can be helpful in trapping them or which helps in substantiating charge of corruption against them. Top officials manage bribe through a few hard core flatterers in the organization. Such flatterers have strong liaisoning with all high profile personalities in all departments and they can easily manage closure of any file which may go against them and they can shut the mouth of all protestors.

RBI or any other monitoring agencies can at least identify the executive of the banks whose past and present is bad and who are condemned by all. For this purpose they should prepare a list of bad borrowers (NPA) involving rupee one crore and more (to begin with) and try to find out the name of the executives who are responsible for bad lending .There may be cases of account turning bad due to various reasons which are beyond the control of bankers may be ignored, But advances which turned bad due to faulty and malicious processing must be analyzed thoroughly and honestly by a devoted team of bank officials chosen from other banks.

Executives who are instrumental in bad lending and still posted at high places send a wrong message down the line. If corrupt officers are promoted and made organizational head or Branch head or circle head in a bank there is no doubt that junior officials will also indulge in bad lending in greed of money and instances of bad advances will increase. In such system good officials are normally shunted in remote and critical areas and ignored in promotion processes.


It is therefore required to know the name of all loans and advances made by all top executives in past ten years and ascertain whether they are still good or turned bad in a few years or even written off by clever gang of General Managers and cleaver board of directors. Serious analysis of bad borrowers will reveal that creators of all NPA accounts are holding top posts in the same bank of have become ED or CMD of other bank.

If bad executives are replaced by devoted officers of the same bank violating existing promotion policy or transfer policies I think the level of NPA will come down in coming years. Otherwise the deterioration cannot be stopped and banks have to face serious financial trouble in near future.

As a matter of fact dishonesty has become the best policy in all offices owned by the government partially or fully. It is disheartening that even officials who are made for stopping malpractices and for punishing corrupt officials are themselves corrupt. Then who will take action and against whom, only God knows. And this is why it is said that corruption has become the accepted system in India.

Problem arises only when there are differences over the rate of sharing ill earned money among the team of officials who promote bad culture or when top officials receive bribe money but fail to extend desired help to bribe giver.

Lastly if there is a will there is a way. If one wants to lower corruption level in any office or government department there are several ways to accomplish the same. If the head is clean, he can at least endeavor in this direction to some extent, but if the head is dishonest one cannot dream of healthy practices down the line. Unfortunately honest officers are very rare and even there are a few they cannot survive and prosper in their career.

17.11.2010

Wednesday, August 11, 2010

PM talk of peace when there is violence,otherwise keep mum and ignores peaceful demands

( An Open appeal to Prime Minster of India and Finance Minister of India)

Subject: Illegal recovery from PF optees in PSU Banks
And
Misuse of usual delay in judicial process

I would like to draw your kind intervention in the matter of second offer of pension being given to bank employees who did not accept pension offer in 1993/95 when pension scheme was first introduced in banks in lieu of contributory provident fund.
After prolonged movement by bank employees for almost 15 years and after 30 months agitational programme, Indian banks Association (IBA) signed an agreement with United Forum of Bank Employees (UFBU) on 27th of April. Till 25th of April 2010 there was never a talk among leaders during last 15 years that there will be recovery from PF optees from their arrear if they are given second option for pension. But in the eleventh hour, union leaders who are mostly retired employees were ill motivated by IBA and it is they played a mischievous role to introduce a discriminatory clause in the agreement which enables banks to recover 2.8 times of revised salary of November 2007 from such employees who opts for pension.

Obviously those who opted for pension in 1993/95 got free option for pension whereas those who will opt for the same benefit after 15 years prolonged movement will have to purchase the same by paying Rs.50000 to more than one lac rupees. This discrimination is clearly in violation of spirit of Equality of Law granted under Indian Constitution.

Since the agreement was signed by a few say 20 union leaders on behalf of eight lac bank employees IBA got an upper hand in executing even legally invalid clause. In such position bank employees all over the country started condemning the said bipartite settlement, formed fresh unions and finally filed writs in various high courts.

On 24th June 2010 Madras High Court granted interim stay on recovery from PF optees.

But IBA and bank management in nexus with mischievous union leaders filed another writ in the same court for vacation on stay on the false but emotional plea that retired employees are on the verge of death and banks are unable to start pension payment to them because they have no fund and they not got refund from retired employees.

Court due to its busy schedule heard the petition on 10th of August 2010, considered the pain of retired employees and vacated the stay.

IBA and union leaders in particular and people of India understand it very well that once the court case is filed in any Indian court, it will take a decade or two decade in getting final judgment on any issue. In such situation banks can execute the disputed agreement.

It is open secret now that banks will not only spend lavishly on advocate to prolong the hearing , torture the fighting employees and but also try its best to weaken the fighting intensity of employees who have moved courts in the large interest of three lac retired and three lac serving employees.

Obviously bank employees for none of their fault will have to pay Rs.50000/ to more than one lac to purchase pension offer which is absolutely illegal and not reasonable from any angle of consideration. Such discriminatory recovery never occurred in any department in our country. This historic blunder is going to be committed by bank management and bank employees will become victim of faulty judicial process as everyone knows that it takes High courts and Supreme Court two to three decades in deciding any case.

I therefore make an earnest appeal to you to advise finance ministry, banking division, law ministry and IBA to bring about necessary change in the agreement or else government of India should promulgate an ordinance and make bank employees at par with Central government employees and nullify the said discriminatory agreement. In the recent past when dispute arose between IRDA and SEBI government of India with the help of ordinance nullified the effect of court case filed by IRDA against SEBI.

Alternately you can ensure expeditious judicial process by appointing special bench in Supreme Court combining writs filed at various High courts to decide the issues of writ in fixed time frame of 30 days. .

It is the most disheartening and sad story of Indian judicial system that courts are used in general and in practice not to get justice but to perpetuate reign of injustice. Courts seldom award punishment to guilty person in time but spend so much time in the process of judgment that the victim is either extinguished or the very purpose of filing a case is defeated or loses physical, mental and financial energy to such a pitiable extent that the case filed for justice is ultimately left unattended and become useless and endless. Even the veteran criminals get relief once the police files case in any court. It is very easy to prolong the judicial process as per whims and fancies of the criminal and at least till all witnesses or all plaintiffs are finished or become ineffective.

For your ready reference and to enlighten you more on the subject I submit hereunder some important points related to pension rules and subsequent agreement prevalent in banks.

1. In the Pension Regulations 1993/1995 there is no provision for collecting money from employees to make up the short-fall in pension fund. If at all any short fall is faced it should be made good by the banks themselves. Then on what basis banks are now asking employees to contribute for short fall?

2. In 7th, 8th, 9th bi-partite settlements 8.25%, 9.25%, 13% of additional cost of pension was carved out of wage load and given to banks to make-up the shortfall in pension fund. This amount belongs to both Pension Optees and PF optees, but used for paying pension to Pension Optees only. Therefore is there any logic in asking funds now from PF optees only?

3. In the Pension Regulation 1993/1995 there was a clause stating that pension will not be paid to those employees who participates in any strike. In 1999, this clause has been removed, but no fresh option is given to PF optees to join pension scheme then. Why?

4. In Railways and RBI fresh options were given to employees to join Pension Scheme several times without asking single paisa. Then why in Banks, Employees are asked to contribute towards Pension Fund?

5. If all the employees would have opted for Pension in 1996/1995 itself, how banks would have managed Pension Fund?

6. In State Bank of India three retirement benefits are being given to employees. viz. PF+Pension+Gratuity. In Public Sector Banks only two benefits are available. Even for that second benefit Employees have to pay in every wage revision settlement. Does it mean Bank Employees are not given two retirement benefit, but they are given only 1.5 benefits i.e., half of what SBI employees are getting?

7. When SBI associate banks are merged with SBI, Govt. is ready to extend Pension Benefit to those Employees of associate banks without asking anything from employees. Where from money comes to meet this additional expenditure?

8. Banks are ready to incur expenditure to the extent of 14% (10% of B.P. +D.A) towards PF for new recruits from 01.04.2010, but not ready to pay more than 10% for PF optees. Why?

9. Pension Regulation 1993/1995 provides for paying pension only on superannuation, i.e. after 60years of age only, but at the time of VRS2000 it is modified /amended to give pension to even employee of 40years. Because of this act of Banks only, Pension fund dried up. Is it not true?

10. Hence, we PF optees feel principle of natural Justice is denied to us and it is clear cut violation of fundamental Law of Equality before justice granted by Constitution of India to each citizen of India.

I am fully confident you will take all possible steps to give justice to six lac bank employees who have been badly affected by said agreement. It is worthwhile to mention here that bank management has already recovered Rs.1800 crores from serving employees who will be given second offer for pension as per said Agreement. Not only this , even trade unions participating in the said agreement has realized more than two hundred crores from bank employees as Levy or their remuneration or fee for negotiating with IBA and for signing on the said agreement.





12.08.2010

Sunday, August 08, 2010

CMD Vijaya bank, sysndicate bank,Dena Bank

I desire to place following questions before Banking Division, Ministry of Finance, Prime Minister of India, President of India and all trade Union Leaders in banks. I hope you will give due place for this appeal which will serve the purpose of lacs of bank employees.

QUESTION EVERYTHING!....SAID SOCRATES! WE THE PF OPTEES QUESTION THE PENSION SETTLEMENT!
1. In the Pension Regulations 1993/1995 there is no provision for collecting money from employees to make up the short-fall in pension fund. If at all any short fall is faced it should be made good by the banks themselves. Then on what basis banks are now asking employees to contribute for short fall?
2. In 7th, 8th, 9th bi-partite settlements 8.25%, 9.25%, 13% of additional cost of pension was carved out of wage load and given to banks to make-up the shortfall in pension fund. This amount belongs to both Pension Optees and PF optees, but used for paying pension to Pension Optees only. Therefore is there any logic in asking funds now from PF optees only?
3. In the Pension Regulation 1993/1995 there was a clause stating that pension will not be paid to those employees who participates in any strike. In 1999, this clause has been removed, but no fresh option is given to PF optees to join pension scheme then. Why?
4. In Railways and RBI fresh options were given to employees to join Pension Scheme several times without asking single paisa. Then why in Banks, Employees are asked to contribute towards Pension Fund?
5. If all the employees would have opted for Pension in 1996/1995 itself, how banks would have managed Pension Fund?
6. In State Bank of India three retirement benefits are being given to employees. viz. PF+Pension+Gratuity. In Public Sector Banks only two benefits are available. Even for that second benefit Employees have to pay in every wage revision settlement. Does it mean Bank Employees are not given two retirement benefit, but they are given only 1.5 benefits i.e., half of what SBI employees are getting?
7. When SBI associate banks are merged with SBI, Govt. is ready to extend Pension Benefit to those Employees of associate banks without asking anything from employees. Where from money comes to meet this additional expenditure?
8. Banks are ready to incur expenditure to the extent of 14% (10% of B.P. +D.A) towards PF for new recruits from 01.04.2010, but not ready to pay more than 10% for PF optees. Why?
9. Pension Regulation 1993/1995 provides for paying pension only on superannuation, i.e. after 60years of age only, but at the time of VRS2000 it is modified /amended to give pension to even employee of 40years. Because of this act of Banks only, Pension fund dried up. Is it not true?
10. Hence, we PF optees feel principle of natural Justice is denied to us and it is clear cu violation of fundamental Law of Equality before justice granted by Constitution of India to each citizen of India. We appeal to both IBA AND UNIONS to re-open the settlement and take corrective measures.
We hope BANKS AND UNIONS WILL ANSWER THESE QUESTIONS!

Saturday, July 31, 2010

Government of India

Leaders on whom lies the fate of an organisation or trade union or a state government or a country have become lover of flattery, have become lover of money and lover of high post without merit. Root cause of all mishappenings, irregularities, fraud or cheating lies in nothing but flattery which shuts the eyes, ears and mind & heart of leaders. Leaders become self cantered and sacrifice the interest of the masses for whom they are meant. They forget God and minimum moral and religious values. New record of corruption will precipitate if a total investigation is made into what Shiela Dikchit has done in Delhi. When a person becomes popular he becomes more prone to bad habits and there are more chances of committing fraud with the system.
Corruption cannot end in India until government takes harsh steps to stop flattery. Yes man and bribe give equally responsible for rampant corruption and for damaging the right course of action. Looting of money from a person through bribe is less harmful than looting of pride, self respect of service men or businessmen or professionals. All is well sir or No Problem sir culture is killing the enthusiasm of real workers, real Indians and real businessmen because flatterers by dint of their actions hypnotize the top officials and ministers and get success in getting undue benefit or up gradation in service or better posting and quick promotion in service at the cost of many genuine workers.
CVC as such cannot stop corruption said to be rampant in work done for Common wealth Games in Delhi because they also become victim of this disease. CVC has to survive in the same system where perpetuators or corruption are sitting at the helm of affairs. Officers at vulnerable and responsible post at CVC or CBI or audit offices are chosen from a team of best flatterers. CVC has to be bold enough and has to stop corruption in transfers, posting and promotion as also in recruitment processes of government employees and bring about maximum transparency, eliminate the channel of Interview which gives rise to whimsical and biased decision. When honest and sincere officers are shunted in remote areas or posted in insignificant corners it is but natural that such officers will prefer indulging in flattery than wasting energy in good work.
CVC or for that matter Government of India has to make judicial process quick, affordable effective and honest so that victim of the system may approach court without any fear of repercussion. Fear of punishment may only keep flatterers and corrupt person away from the system. Similarly media has to take pro active and innovative initiativesto expose corrupt practices, conduct sting operation and do all acts deemed fit to expose the mischievous elements occupying top posts in government offices, ministry , banks, insurance companies, CBI, vigilance department, judiciary, tax departments etc who sell transfer, posting and promotions in service sector or who willfully torture and blackmail a good businessmen who do not flatter or bribe an officer.
Dkjain49709@rediffmail.com
30.07.2010