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ALL INDIA BANK OFFICERS' ASSOCIATION

 

 

MIN:RBI:42:2014

April 3. 2014

 

 

 

Hon’ble President of India

Government of India

NEW DELHI

 

 

Respected Sir,

 

 

REG:   ALARMING INCREASE OF BAD LOANS IN THE BANKING SYSTEM-

            REMEDIAL ACTION TO BE INITIATED.

 

On behalf of the citizen of our Nation and also as a conscious Trade Union of Officers, believing and practicing the avowed principles of “Nation First” “Institution second” and “individual Third” approaching you, as your are the First Citizen of our sovereign Nation and also majority stake holder in the Public Sector Banks, deem fit to place the facts before you for serious consideration.  The details are as under:

 

1.    1. Salient Features related to Banking system – Deposits + Advances

 

[a] Aggregate Deposits                       Rs. 75,49,04,000 crores

[b] Aggregate Advances                      Rs.57,89,92,000 crores

[c] Investments                                       Rs.22,32,24,000 crores

 

2.    2. Increasing bad loans –Gross NPA

*                                                                                                                                                            Rs.  in crores

S No.

Bank

March 2012

March 2013

1

Allahabd Bank

2058

5137

2

Andhra Bank

1798

3714

3

Bank of India

5894

8765

4

Bank of Baroda

4465

7982

5

Bank of Maharashtra

1297

1138

6

Canara Bank

4032

6260

7

Central Bank of India

7273

8456

8

Corporation Bank

1274

2048

9

Dena Bank

956

1452

10

Indian Bank

1850

3565

11

Indian Overseas Bank

3920

6607

12

Oriental Bank of Commerce

3580

4183

13

Punjab National Bank

8719

13465

14

Punjab & Sind Bank

763

1536

15

Syndicate Bank

3183

2978

16

UCO Bank

4086

7130

17

Union Bank of India

5450

6314

18

United Bank of India

2176

2964

19

Vijaya Bank

1718

1532

 

Nationalised Bank

64496

95233

 

20

State Bank of India

39676

51189

21

SBBJ

1651

2120

22

SBH

2007

3186

23

SBM

1503

2081

24

SBP

1888

2453

25

SBT

1489

1750

26

IDBI Bank

4551

6450

 

 

1,17,262

1,64,461

 

 

3.    3. First Four Bad Loan Borrowers in Public Sector Banks

                                                                                                              Quantumwise Rs.in crores

 

2009-10

2010-11

2011-12

2012-13

Gross NPA

59927

74664

117262

164461

In top 4 bad loans a/cs

8418

16957

17029

22666

 

 

4.    Top NPA Accounts of Banks.

 

                                                                                                                                          Rs.   in crores

Banks

Gross NPA

Amt.

Top 30 A/cs _% Gross

Nationalised Banks

1,11,209

 

 

 

 

48406

43.50

SBI Group

71,620

15266

21.30

Public Sector Banks

1,82,829

63,672

34.83

 

 

5.    5. Gross NPAs of above Rs.1 crore Number Accounts/Amount:

                                                                                                                                                        Rs.  in crores

Bank

March 2010

March 2011

March 2012

 

A/cs

Amt.

A/c

Amt.

A/c

Amt

SBI

1262

8533

1527

11406

2419

23320

PNB

188

826

133

1803

709

5295

IDBI Bank

234

1598

371

2125

579

3682

Bank of India

350

2809

236

2522

507

4268

All other 23 PSBs

2065

12843

2322

16777

3081

31697

 

4099

26629

4589

34633

7295

68262

 

 

6.    6. Profit earned and appropriated

*                                                                                                                                                  Rs.In crores

Year

Operating Profit

Net Profit

31.03.2007

42406

20310

31.03.2008

49819

26591

31.03.2009

66604

34372

31.03.2010

76905

39257

31.03.2011

100065

44900

31.03.2012

112289

47483

 

 

 

 

7.    7 Bad loans written off by the Banking system

*                                                                                                                                                          Rs. in crores

Year

PSBs

Old PVT Banks

New Pvt.Banks

Foreign Banks

Total

2007

9189

610

1232

690

11621

2008

8019

724

1577

1334

11654

2009

6966

616

5063

3350

15995

2010

11185

884

6712

6238

25019

2011

17794

682

2336

3083

23895

2012

15551

671

3024

1646

20892

2013

27013

863

3487

855

32218

 

95717

5050

23431

17096

141294

 

 

From the above it goes to establish that the hard earned savings of the peoples of our Nation is utilised to write off the bad loans in the Banks.

 

The following actions, considering the requirements of the various agencies, may please urgently be initiated to save the Public Sector Banking and also restore its health.

 

[a]        An external authority / committee with members of proven integrity and high moral standing should be entrusted with the responsibility of auditing the accounts of Public Sector Banks as at the close of 31.03.2014 within a fixed time schedule and the reports are to be submitted to you.

 

[b]        Right from 1993, the Chairmen who are responsible to conduct the affairs should be made accountable for their dereliction of duties due to which the present situation has arisen.

 

            As per the practice in vogue, large loan proposals are considered by the committee consisting of General Manager’s of the Bank.  Hence, even the proposals processed by the GM’s committee often turned as a bad loans.  It is relevant to quote, the RBI’s observations on committee method of sanctioning loans should be done away with, as this did not hold any single individual accountable.  The committee members should also be held accountable.

 

[c]        Together with Chairman, the Government representative and the RBI representative, who are expected to take care of the affairs of the Public Sector Banks should also be made accountable for their failure to check the deviations during their tenure as the member of the Board.

 

[d]        Urgent steps are to be initiated to declare the defaulters who have sufficient resources to clear the dues of the Bank and still not cleared the loan as wilful defaulters under criminal procedure code.  Criminal procedure code/Indian Penal code should be suitably amended to define the “wilful defaulters” of the Bank loan including the diversion of Banks funds utilised for the purpose “other than the one” for which it was availed.  It should be treated as “criminal act” with consequent punishment.

 

            In case of the Limited companies / corporates, full time or part time directors are also to be prohibited to contest the elections in the event of the said Limited company have failed to clear the loan availed from the Public Sector Banks.

 

            CEO/promotee Director of the defaulting company should not be a Director in any other company.  To give effect the company law should be suitably amended.

 

[e]        The bank defaulters should be prohibited to contest the elections at all levels and appropriate amendments in the “People’s representation Act 1951” should also be made prohibiting them to participate in the election process.

 

[f]         Any individual holding the position in the Government and he has not paid the bank dues, they should be directed to relinquish the office immediately and simultaneously clear the loans too.

 

            Officers, who are holding the office of profit should declare their availment of loan in their yearly statement, failing which, the same should be treated as  a  misconduct under the specified rules of the Government.

 

            Banks shall have the first charge on the immovable property viz. land and building over the other agencies. Then Professionals who are involved in the loan processing [ie] C.A., Lawyers and Certified Valuers are also appropriately to be dealt with.

 

            Indian Banks’ Association should meticulously publish the caution list bi-monthly for the benefit of member Banks.

 

[g]        If an individual in any capacity is a loan defaulter, then he should be disentitled to draw any concession / subsidy of any nature, which is also applicable to senior citizens.

 

[i]         The entire Banking system should have the “Banking Audit Commission” on the lines of “CAG” to make the people responsible to conduct the affairs of the Banks and the report should be placed before the Parliament.

 

Our Banking system has weathered  away “2008 global meltdown” and Public Sector Banks are nation building instruments hence it is to be promoted, preserved and protected from the use, abuse and misuse by the people at the helm of affairs.

 

The list of bad loan borrowers of the Banking system is also sent herewith for your ready reference and doing the needful.

 

Please acknowledge receipt.

 

Yours faithfully,

  

/S.NAGARAJAN/

/GENERAL SECRETARY/

 


 

IBA:BKS:40:2014

March 29, 2014

 

/FAX CONFIRMATION/

 

The Chairman

Indian Banks Association

World Trade Centre

Cuffe Parade, 6th Floor

MUMBAI-400 005

 

 

Sir,

 

REG Special Tax collection drive by Government of India through Banks

            Rationalisation of the compensation

 

We have on our hand the RBI circular RBI/2013-14/535 dated 26.03.2014 addressed to all Chairman and Managing Director of all agency Banks to keep select branches open as a regular working day for transacting Government business at key locations based on the volume of transactions upto 08.00 pm on 29th to 31st March 2014, where 31st March 2014 has not been declared as a Public holiday.

 

2.         However, RBI, vide its circular DPSS[CHE]/1446/01.02.003/2013-14 dated 28th March 2014 addressed to Officer In-charge, Clearing operation of Banker’s clearing House at Chennai [BCHC] to conduct the special clearing at all clearing houses across the country on 29th to 31st March, 2014 which are as follows.

 

 

Presentation clearing

Return clearing

 

29.03.2014

20.00 to 21.00 hrs

22.30 to 23.00 hrs

 

 

Combined clearing of Normal and special clearing

21.00 to 22.00 hrs

 

30.03.2014

17.00 to 18.30 hrs

20.30 to 21.00 hrs

 

 

Combined clearing of normal and special clearing

19.30 hrs to 20.00 hrs

 

31.03.2014

20.00 to 21.00 hrs

22.30 and 23.00 hrs

 

 

Combined clearing of normal and special clearing

21.30 to 22.00 hrs

 

In effect, even in the select branches, officers are to remain till the fate of the return clearing is known [ie;] minimum upto midnight on 29.03.2014 and 31.03.2014 and on 30.03.3014 upto 22.00 hrs.

 

3.         We have demanded that officers working in the select branches are to be granted compensatory off coupled with monetary compensation which should not be less than the overtime wages payable to workmen employees.

 

4.         Bank of India, State Bank of India, Central Bank of India, Canara Bank and Vijaya Bank are considering compensatory off + compensation in various stages with a maximum of Rs.2500/- per day.

 

5.         As the officers are to work beyond 6-1/2 hrs on 29th, 30th and 31st March, 2014, they should be compensated for two days for each day of work in addition and Rs.2500/- as a compensation per day may please be considered.  The rationalisation of the facilities need to be addressed immediately and on priority basis.  Pending finalisation of rationalisation, we request you to communicate to all Banks to effect the package of compensatory off + Rs.2500/- per day compensation to officers.

 

Yours faithfully,

 

 /S.NAGARAJAN/

GENERAL SECRETARY


 

 

ALL INDIA BANK OFFICERS' CONFEDERATION (AIBOC)

ALL  INDIA  BANK  OFFICERS'  ASSOCIATION (AIBOA)

INDIAN NATIONAL BANK OFFICERS' CONGRESS (INBOC)

NATIONAL ORGANISATION OF BANK OFFICERS (NOBO)

 

                                                                                                                                                                                                                                        28th March,2014.

The Chairman,

Indian Banks Association,

MUMBAI.

 

Sir,

 

       REG: SPECIAL TAX COLLECTION DRIVE BY GOVERNMENT OF INDIATHROUGH BANKS.

       REF:      1.Our Letters dated 24th and 26th March, 2014.

                     2.Your circular PS & BT/GOVT.9096 dated 26/03/2014

                     3.RBI Letter RBI/2013-14/535 DGBA GAD No. H-5430/42.01.029/2013-14 dated 26.03.2014

 

We request reference to our captioned letters on keeping the Bank branches open on weekly offs and Holidays declared under N.I. Act. We reiterate our resentment particularly with reference to the corporate/taxpayers, who failed to draw an action plan to make timely payment, cost effectiveness of such an yearly exercise, third time in a row, making the officers to work for continuously for eight days.

 

     Though IBA, RBI and Government have addressed our concerns to limited extent and we with the National Interest in mind have refrained from taking any organisational action, but our strong protest continues.  Our inclination, to extend cooperation for tax collection on these three days, in a measure to mop up the Tax revenue to the National Exchequer may please be considered as an exception to the regular expectation from the Government and also from the IBA.

 

         While we are confident that the individual Bank Managements will initiate steps to adhere to the directions of RBI to call minimum staff and to keep only the select branches open to undertake Government transactions upto 8 p.m. only, taking sufficient care to handle the electronic transactions avoiding the future problems, arising out of the directions to the Banks to keep that section to function upto midnight of March 31, 2014.

 

         Since the officers in these identified branches will have to work for extended working hours and on holidays, they should be paid monetary compensation not lesser than the overtime payable to eligible workmen staff, in addition to the compensatory off.

 

Yours Faithfully,

 

   (HARVINDER SINGH)                           (S.NAGARAJAN)                          (K.K.NAIR)                                  Dr.S.U.DESHPANDE

  GENERAL SECRETARY                 GENERAL SECRETARY         GENERAL SECRETARY                  GENERAL SECRETARY

            (AIBOC)                                              (AIBOA)                                  (INBOC)                                              (NOBO) 

 


 

ALL INDIA BANK OFFICERS' CONFEDERATION (AIBOC)

ALL  INDIA  BANK  OFFICERS'  ASSOCIATION (AIBOA)

INDIAN NATIONAL BANK OFFICERS' CONGRESS (INBOC)

NATIONAL ORGANISATION OF BANK OFFICERS (NOBO)

                                                                                                                                                                                                                                     26th March,2014.

The Chairman,

Indian Banks Association,

MUMBAI.

 

Sir,

 

       REG: SPECIAL TAX COLLECTION DRIVE BY GOVERNMENT OF INDIATHROUGH BANKS.

 

Kindly refer to our earlier communication dated 24th March, 2014 with regard to opening of Bank branches on Saturday the 29th, March, Sunday the 30th of March and again on Monday the 31st of March, 2014, a declared holiday under NI Act. on account of Ugadi/New Year day celebrations in many states.

 

While adopting the “No Work No Pay” principle on the strike days, including the recent TWO  days strike on 10th and 11th February, 2014, demanding a meaningful wage revision for the Bank Officers and wage parity with similarly placed Officers elsewhere, profitability was shown as a major reason for not meeting our demands as per our charter, submitted.

 

We have informed you in detail, the enormous expenses/losses, the Banks are making in keeping the branches and Offices open for relatively a small number of tax payers by extending the deadlines every year. It has also become a practice to ‘reward’/facilitate procrastinators vis-à-vis the disciplined law abiding tax payers, at an enormous outflow from the exchequer, adopting an unfair labour practice of compelling the Bank employees to  over work, when they are already overburdened with the year end work, leading to exploitation of labour in the commercial Banks.

 

Under the circumstances and in absence of any favourable response from your end, all Officers’ Organisations will be compelled to resort to any trade union steps including boycott in protest, which please note.

 

Yours Faithfully,

 

 

  (HARVINDER SINGH)                           (S.NAGARAJAN)                          (K.K.NAIR)                                  Dr.S.U.DESHPANDE

  GENERAL SECRETARY                 GENERAL SECRETARY         GENERAL SECRETARY                  GENERAL SECRETARY

            (AIBOC)                                              (AIBOA)                                  (INBOC)                                              (NOBO) 

                                                                                        

Copy to: Sh. M.V. Tanksale,   Chief Executive Officer, IBA


 

ALL INDIA BANK OFFICERS' CONFEDERATION  (AIBOC)

ALL  INDIA  BANK  OFFICERS'  ASSOCIATION   (AIBOA)

INDIAN NATIONAL BANK OFFICERS' CONGRESS (INBOC)

NATIONAL ORGANISATION OF BANK OFFICERS (NOBO)

 

                                                                                                                                                                                    24th March,2014.

The Chairman,

Indian Banks Association,

MUMBAI.

 

 /FAX CONFIRMATION/

Sir,

 

REG:              SPECIAL TAX COLLECTION DRIVE BY GOVERNMENT OF INDIA THROUGH BANKS.

 

We have the confirmed information that the Government of India has initiated the expeditious steps to collect the tax revenues from the tax payers by providing special opportunity to pay the tax dues through Banks on 29th, 30th and 31st March 2014,being the holidays declared by the State Governments in consultation with the respective Regional Offices of Reserve Bank of India under NI Act.

 

1.         The taxpayers are aware of the payment of taxes on 15th September,2013 as well as at the end of March 2014.    They are expected to plan the calendar and schedule of payment well in advance. Having failed in their duties,    the Government of India is extending undue accommodation by inflicting tremendous pressure on Bank Employees by making them to work on three declared holidays.

 

2.         The commission paid by the government per tax transaction is meagre and it is certainly not sufficient to meet out  the  establishment cost of running the branches for few tax payers.  The Government of India is linking the profitability of the banking system, while deciding wage revision for the entire workforce handling this assignment by the public sector bank is directly reflecting in the  earnings of the banks. The individual bank management may please be advised to provide the number of challans collected by them and also the revenue     earned  on account of this collection to prove our point.

 

3        In the States of Maharashtra, Karnataka, Tamilnadu and Andhra Pradesh, the New Year falls on 31.03.2014.  Making the workforce to work on the holidays of religious importance shall adversely affect the morale of the officer coupled with embarrassment in the family circle.

 

4.         Further there are alternative channels available to the Tax payers, which they should exercise to effect the payment of taxes.

 

5.         The workforce, if made to work on three holidays, it would amount to nine continuous working days against the settled principle of five and half days per week with forty-two and half hours of working hours. This is against the principle settled long ago .

 

6.         In view of the above cogent reasons, we are confident that IBA will take appropriate steps to communicate to the concerned authorities in the Government of India, lest, officers’ organisations shall suitably advise the officers in this connection.

 

 

Yours Faithfully,

  

                                                                                       

   (HARVINDER SINGH)                           (S.NAGARAJAN)                          (K.K.NAIR)                                  Dr.S.U.DESHPANDE

  GENERAL SECRETARY                 GENERAL SECRETARY         GENERAL SECRETARY                  GENERAL SECRETARY

            (AIBOC)                                              (AIBOA)                                  (INBOC)                                              (NOBO)