"Wilful default of bank loans should be made a criminal offense,”

The top 30 bad loan accounts in the case of 24 banks add up to ₹70,300 crore.

Mumbai, July 18:

Banks should spring into action by recovering cash from their top 30 bad loan accounts instead of just monitoring them, according to the All-India Bank Employees Association (AIBEA).

The Association has assessed that the top 30 bad loan accounts in the case of 24 banks add up to ₹70,300 crore.

Speaking on the eve of the 45th anniversary of bank nationalistion, Vishwas Utagi, Vice-President, AIBEA, said, “If banks mount recovery efforts in the case of top 30 accounts and resolve cases which have piled up in the corporate debt restructuring cell, then the Government need not recapitalise State-owned banks.

“Moreover, these banks will not be hard-pressed to go to the public by issuing shares.”

As at March-end 2014, the CDR cell was trying to resolve 280 corporate accounts aggregating ₹2,42,259 crore.

The Association wants huge bad loans due from large companies recovered by taking strong action against the defaulters.

“The list of such bank loan defaulters should be published by the RBI. Wilful default of bank loans should be made a criminal offense,” said the Association in a statement.

Though the Budget announced the setting up of 6 more Debt Recovery Tribunals, Utagi said this is inadequate. Thousands of cases of bank loan defaults are already pending and unless an enlarged and effective mechanism is built up, banks would not be able to recover their dues.

Hence, more D R Ts and Fast Track D R Ts have to be set-up to deal with high volume loan defaults so that banks will be able to recover the loans.

Government rejects P J Nayak panel view of cutting stake below 50%

NEW DELHI: The government today said it has rejected P J Nayak committee recommendations of lowering government holding in banks below 50 per cent even as it is considering other suggestion on providing greater autonomy.

"That particular part of the P J Nayak Committee has not been favourably considered because we want to keep the shareholding of the government at minimum 51 per cent," Department of Financial Services Secretary G S Sandhu said.

"It has been clearly announced in budget also that the government wants to maintain public sector character of the banks," he said on the sidelines of an event organised by PHD Chamber of Commerce and Industry here.

However, the government is considering issues related to greater autonomy to bank including raising tenure of Chairman and Managing Directors (CMDs) of banks.

"We are looking at providing longer tenure to CMDs. We are proposing five-year tenure. Then separation of chairman and managing directors. These are proposals yet to be decided," he said.

Besides, he said, better quality of independent directors with domain knowledge is also one of the proposals for strengthening of board.

RBI set-up a committee under chairmanship of former Axis Bank chairman P J Nayak to Review Governance of Boards of Banks in India. It gave various recommendations including diluting government stake below 50 per cent.

On the capital raising issue, Sandhu said the Finance Ministry would come out with detailed blue print for disinvestment of the public sector banks in a month or two.

Public sector banks requires Rs 2,40,000 crore of equity capital over next 5 years to comply with Basel-III norms.

The government would disinvest in two or three PSU banks in the current fiscal itself, he said.
He also said that there is a proposal to create a asset reconstruction company (ARC) where some of these banks and the power companies can join hands and can set up a company that will revive incomplete projects and hand it over back to the promoter after revival.

"Similarly for the road sector there is a proposal from the National Highways Authority of India which we have welcomed. They also want to form an asset reconstruction company for the road sector. Because a large number of road projects they are incomplete...and they have not been put to commercial use," he said.

"So with the help of ARCs these projects can be completed they can be put to commercial use and then money can start flowing back. That is another thing that we are looking at," he added.

http://economictimes.indiatimes.com/news/economy/policy/government-rejects-p-j-nayak-panel-view-of-cutting-stake-below-50/articleshow/38382047.cms

“Make top executives of the public sector banks accountable in respect of sanctions of credit etc ”: AIBEA

To reign in the ballooning non-performing assets (NPA) in public sector banks, chairman and managing directors (CMDs) and executive directors (EDs) should be made accountable, a leading bank union has demanded.
"A system has to be evolved to ensure accountability and responsibility on the part of the CMDs and EDs of the public sector banks in respect of sanctions of credit etc. which ultimately become distressed assets," All India Bank Employees' Association (AIBEA) said in its pre-budget memorandum submitted to the government.
"We are making the demand formally for the first time though we have been asking for the same for a long time," C.H. Venkatachalam, AIBEA general secretary told IANS Saturday.
He said the CMDs and EDs of government-owned banks are not subject to service/conduct/disciplinary rules on the pretext that they are hired on contract.
"But they do grant loans and there is nothing to hold CMDs and EDs responsible if their decisions hurt the banks and the loans turn bad," he said.
Recently AIBEA released a list of 406 bank loans amounting to Rs.70,300 crore that went bad and had demanded declaration of wilful default a criminal offence and investigation of the nexus between the borrowers and bank officials.
"A review should be made to identify the beneficiaries whose debts/loans availed in the banks with interest was written off," said the union in its pre-budget memorandum.
The AIBEA has also demanded that the bank loan defaulters should not be permitted to contest assembly or parliamentary elections.
According to AIBEA, floating of asset reconstruction companies (ARC) as a tool to reduce non-performing assets (NPA) should be discouraged and the NPAs should be actually recovered.
"Auction of NPAs should also be stopped as the same involves huge write offs ultimately resulting in heavy losses to the banks," the union has said. 

http://www.business-standard.com/article/news-ians/make-top-executives-of-government-banks-accountable-union-114062100511_1.html#.U6XAbfnQdSQ.facebook

 

OUR STAND POINTS ON APAR AND BATCH CONCEPT UPHELD BY HON’BLE MADRAS HIGH COURT

AIUBOSA CIR GS: 185 / 2013-14 dated 06.06.2014

ALL INDIA UNION BANK OFFICER STAFF ASSOCIATION

(Affiliated to AIBOA) Phone: 9381036405 / 9791027140

Email: dsganeshanaiboa@gmail.com : dsganesanubi@gmail.com

Address: Don Flats, I Floor, No.19, SRP Colony 7th Street, Peravallur,

Chennai 600082

Cir.No.GS:185 / 2013 - 14

06.06.2014

To

All Officers

Dear comrades ,

OUR STAND POINTS ON APAR AND BATCH CONCEPT UPHELD BY HON’BLE MADRAS HIGH COURT

The issues confronting the officers in our Bank are:

1. APAR Marks: It is our organisation in our Bank, through judicial intervention in 2012, brought substantial relief to officers in the matter of APAR marks which is considered an importantingredient in the promotion process. Not only that, we have brought in, in the process, anappeal provision against the APAR marks awarded by the higher authorities, as an element ofbias prevails in awarding marks to officers. In the last process of promotion (2013-14),management had implemented sincerely the procedure established by our organisation inthe bank.

But this time (2014-15), the bank has altered the “applicability of APAR marks” only for thepromotion process from Scale 1 to 2 and Scale 2 to 3, i.e., instead of average of 75% marks

for the preceding three years, prescribed in the Government Guidelines, every year theabove mentioned officers are to secure 75% marks. Our organisational contention is that in

the same promotion process (2014-15), there cannot be two different yardsticks for selectionpertaining to APAR marks. Our sincere appeals have not evoked the reasonable response

from the management to correct the unscientific application of rules.

2. UNIFORM APPLICATION OF BATCH CONCEPT FOR PROMOTION:
   Bank while recruiting the Scale 1 officers in the year 2011 permitted the new recruits to join on or before 04.07.2011. There were officers who had reported for duty in July 2011.
   As the number of eligible officers is falling short, the bank has considered a relaxationof 3 months and 1 day. The government guidelines provide inclusion of batch for the
   purpose of promotion. We have requested the Bank to include the entire batchof officers so as to enable them to participate in the process of selection.
   Bank has failed to see the reasoning behind our arguments.

3. CONVERSION OF RDOS – A REPEAT EXERCISE DEMANDED:
   The promotion policy for officers provides conversion of specialized category to main stream on completion of five years. Accordingly, we have taken up the issue of conversion of Specialized Category of Officers to

Main Stream. The paradox of conversion exercise is that a RDO having 5 years of service to his credit to head the branch as Branch Manager is declared ineligible to join main stream based on 3 to 5 minutes personal interview. In our Bank, a directly recruited officer on mere completion of 2 years is eligible to move to Scale 2, whereas even after completion of 5 years of service and handling the branch as a Branch Head is denied of conversion in the same scale.

The so called officers’ federation has already enjoying the comfort of hibernation. As advised by the AIBOA leadership, our organisation having committed to the welfare of officers’

community in our Bank has sought relief through Judicial Intervention.

 “We are happy to report that the Hon’ble High Court of Madras has passed an order directing the Bank to allow the members of our organisation who were affected by APAR as well as Batch Concept to participate in the examination”.

Please await for further communication.

With Greetings,

Yours Comradely,

(D. S. GANESAN)

General Secretary

PLEASE CIRCULATE AMONG ALL OFFICERS

PROMOTION PROCESS – REDUCTION OF APAR MARKS.

	Canara Bank Officers’ Union[Regd.] [AFFILIATED TO ALL INDIA BANK OFFICERS’ ASSOCIATION] A.K.Nayak Bhavan, 2nd Floor 14, Second Line Beach, CHENNAI-600 001

Mobile: President 9444967883 / General Secretary 09488905783 / Phone: 044-25265511 FAX: 044-25249081

Email: cbou.hq@gmail.com / web: www.cbou.org

REF : CBOU: 15: 2014

DATE : 13 05 2014

SRI R K DUBEY

CHAIRMAN & MANAGING DIRECTOR

CANARA BANK

112 J C ROAD

BANGALORE 560 002

Dear Sir

Sub : PROMOTION PROCESS – REDUCTION OF APAR MARKS.

We would like to bring to your kind notice that Government of India vide their letter dated 14 3 2012 issued uniform guidelines on Promotion in Public Sector banks covering various provisions , including the eligibility years of service for participation in scale promotion process in PSBs.

According to the guideline issued by the Department of Finance and their subsequent relaxations, the GOI issued guidelines under APAR (Annual Performance Appraisal Report) a candidate should have secured 60% whenever the written test is conducted by IBPS and minimum of 75% marks where no test is stipulated, with enabling provision for reduction /relaxation by the board with the prior permission of the Finance Ministry.

However, taking into consideration the following ground realities, witnessed during the Special Promotion process 2013, we feel that there is strong case for further reduction/relaxation of APAR Marks in our Bank so as to enable maximum number of eligible officers/Managers to be the beneficiaries of the promotion process.

• The Number of eligible candidates gets drastically reduced.
• In respect of Scale I to II Promotion number of candidates qualified in the written test was far below the number of declared vacancies.

In this connection, we wish to bring to your kind notice and consideration, that Corporation Bank also a Public Sector Bank, has very recently declared reduction/relaxation in APAR Marks, with the permission of the Bank’s Board, for both Merit and Seniority Channels to 40% ( for SC/ST 35%) from 75%/60% respectively.

It is also not out of place to mention that our national organisation AIBOA, has taken up the matter with Department of Finance in this regard for uniform guidelines in this regard and copy of their communication is enclosed for your perusal.

Kindly do the needful for reduction/relaxation in the APAR Marks so that maximum number of officers would be beneficiaries of the promotion process.

Kindly acknowledge the receipt.

Thanking you

Yours faithfully

M A SRINIVASAN

GENERAL SECRETARY

- AIBOA OPPOSES BACKDATED BACK DOOR PRIVATISATION OF BANKING BY STATE BANK OF INDIA

Phone: 25265511 / M 9840645081 / FAX: 044-25249081 / e mail: aiboa.hq@gmail.com www.aiboa.org

PRESS STATEMENT ISSUED BY

S.NAGARAJAN, GENERAL SECRETARY,

ALL INDIA BANK OFFICERS ASSOCIATION

BACKDATED BACK DOOR PRIVATISATION OF BANKING

BY STATE BANK OF INDIA - AIBOA OPPOSES

Our attention has been drawn to a report pertaining to the State Bank of India management entering into an agreement with Reliance Money Infrastructure Ltd., on 25^th February 2014 giving retrospective effect for the said understanding with effect from 5^th October 2013 to handle the all the front office Banking assignments to a Private company viz., “Reliance Money Infrastructure Ltd.,” as a business facilitator/correspondent.

The basic function of a Banking company is to take the money as deposit and lend the same to the needy individuals as advances. Banking Institutions have already forgotten this basic important function and slowly succumbing to sell third party products like mutual funds, Insurance and Units etc., resulting in the Institutions now are “also do Banking”.

It should not escape the attention of the Public at large, that Reliance capital is one of the “aspirant” for the “Banking License” another extended arm of Anil Ambani Group Company, which could not get the same in this recent release of sanction given by Reserve Bank of India.

AIBOA strongly opposes the action of SBI, of non-recruiting the required number of staff members to handle the business of the Bank, resorting to this exercise amounts to “back door privatisation of the Bank with back dated effect” to a company, which was not considered for new Banking license by the controller of Banking system.

This move of SBI Management is nothing but “outsourcing of essential services” coupled with affecting the privacy of the individual account holder, as they are already handling very many similar services of Banking activities.

AIBOA, urges upon the authorities in Central Bank of the Country and also the Government of India to step in the process of reversal as the past experience of the private entities are not worth mentioning.

/S.NAGARAJAN/

GENERAL SECRETARY 05.05.0214

REDUCTION IN “APAR” MARKS UNIFORM APPLICATION TO ALL BANKS REQUESTED

ALL INDIA BANK OFFICERS’ ASSOCIATION CENTRAL OFFICE] A.K.Nayak Bhavan, 2nd Floor 14, Second Line Beach, CHENNAI-600 001

Phone: 25265511 / M 9840645081 / FAX: 044-25249081 / e mail: aiboa.hq@gmail.com /web: www.aiboa.org

MIN:RBI:57:2014

May 7, 2014

The Secretary

Department of Financial Services

Government of India

NEW DELHI

Sir,

REG: GUIDELINES ON PROMOTIONS IN PUBLIC SECTOR BANKS

REDUCTION IN “APAR” MARKS

UNIFORM APPLICATION TO ALL BANKS

REF: 1. Your communication dated 14.03.2012

2. Your communication dated 04.04.2013

The guidelines for promotions in Public Sector Banks was issued on 14.03.2012, wherein various provisions were dealt with, notable amongst them are

[a] Channel of promotion and minimum experience requirement at various levels

[b] Minimum 75% marks to be secured in Performance appraisal for fast track/merit channel

2. Subsequently, vide the second communication referred herein above, the minimum requirement of “APAR marks” relaxation, with approval of the Bank Boards, to an average of 75% marks of APAR with a minimum of 60% in each preceding five years.

3. The above guidelines are applicable to all Public Sector Banks without any exception or deviation. We have been given to understand that Corporation Bank having its headquarters in Mangalore, has taken up with your department the subject matter of APAR marks and the Ministry has reported to have relaxed the eligible marks under APAR to 40% / 35% to general category /SC/ST category respectively.

4. Accordingly the Board of the Bank has reduced the Annual Performance Appraisal Report marks to 40% marks for the General category and 35% marks to for SC/ST category and issued the circular for initiating the promotion from Scale III to IV, Scale IV to V, Scale V to VI and Scale VI to VII, by relaxing the eligibility years of service.

5. There are certain contradictions in implementing the above guidelines. They are:

[a] When the eligibility years for participation in the promotion process is reduced to 2 years or less than 5 years, obtaining 5 years APAR marks is incorrect and non-implementable one.

[b] Relaxation in APAR marks from 75% to 40% / 35% should be made applicable to all banks and to all channels.

5. As the Banks are getting into the “promotion mode” subsequent to the finalisation of yearly accounts, we request you to issue appropriate instructions to all Banks immediately.

Please expedite the instructions so as to enable the eligible officers with the revised/reduced marks of “APAR” from the present stipulation of 75% or 60% / 40% / 35%.

Yours faithfully,

/S.NAGARAJAN/

GENERAL SECRETARY

cc to:

The Chairman, Indian Banks’ Association, Mumbai

All Chairman and Managing Director, Public Sector Banks