News

ON MOVE TO TRANSFER BURDEN
OF LOSS ON BANK EMPLOYEES
 

2017-03-19

kolkata, march 19 : press statement issued by shri Pradip Biswas, General Secretary,  bank employees federation of india on Government’s contemplation to transfer burden of loss on bank employees.
Finance Ministry of Government of India, in a recent communication to 10 Public Sector Banks, have asked to curtail benefits available to employees and officers in terms of industry level settlements signed between the Unions and the apex body of bankers, India Banks Association.
 
To strengthen the capital base of public sector banks periodical infusion of capital is needed form the government as a matter of routine and provisions are made in the central budget for this purpose depending upon the need of the situation.
 
Public sector banks are landed in a difficult situation because of accumulation of huge bad loan called as Non Performing Assets (NPA), mainly from the corporate defaulters who are not repaying the bank loans wilfully. Instead of taking stringent measures to recover these loans from such defaulter, government’s future roadmap for public sector banks as documented in “INDRADHANUSH’ recommended for further lending to such borrowers in the name of restructuring.
 
While from joint platform of trade unions in the industry under the banner of United Forum of Bank Unions (UFBU), we call these corporate defaulters like Vijay Mailya and others who are not repaying the bank loans deliberately as ‘wilful defaulter’, the Indradhanush document released by ministry of Finance on 14th August, 2015 calls them as ‘non cooperative borrower’. The attitude of the government towards these borrowers is well manifested in this document. From UFBU we have demanded to treat these borrowers as criminal offenders while the attitude of the government towards them is soft by terming them as Non-cooperative borrower.
 
Gross NPA of all public sector banks stood at Rs 539,956 Cr as at 31st March 2016  as against  Rs. 278,877 Cr of 31st March, 2015 recording a growth of 92.63% over last one year. Public Sector Banks earned an operating profit of Rs. 1,36,926  Cr as at 31st March 2016 but as on the same date the banks incurred a net loss of Rs 17992/- Cr due to provisioning of Rs 1,54,199 Cr, mainly against NPA.
 
The PSBs that have received the aforesaid communication from the government are United Bank of India, UCO Bank, Allahabad Bank, Indian Overseas Bank, Vijaya Bank, Bank of India, Central Bank of India, Andhra Bank, Bank of Maharashtra and Dena Bank.
 
The government is hell bent to privatise the PSBs and is now contemplating to transfer the burden of loss on the shoulders of the workforce who rendered yeomen’s service to the countrymen while opening Jandhan accounts and particularly for exchanging demonetised bank notes and they are now being attempted to be penalised by the antipeople government at the centre.
 
Bank employees movement have the experience of fighting back this type of offensives in the past when during late nineties three banks viz  India Bank, UCO Bank and United Bank of India were termed as terminally ill and attempts were made for large scale closure of branches, lowering of manpower, withdrawing of existing rights and benefits. Employees and officers of the banks could withstand all the challenges by united struggle and by their collective efforts only all these banks could turn around.
 
We are confident that is time also the united movement of the bank employees and officers will be able to combat the offensives. We also call upon all our members to immediately unleash extensive campaign against the pernicious policy of the government and to be in readiness of join any call that may come even in short notice. 

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