411 Vol 35 - 3 September, 2016 - CBOO...Officers’ Voice, September 2016 1 Editor Ekanath Baliga...

Officers’ Voice, September 2016 1

EditorEkanath Baliga

Asso. EditorG. Raghuraman

Satish Shetty

MembersH.S. Vishwanath

Advisor T.R. Bhat

Printed by:M. Rajesh Dange

Codeword Process & PrintersFalnir, Mangalore - 575 001

Licensed to Post Under License MNG/128/2015-17

& SK/MNG/WPP/7

Edited and Published byEkanath Baliga

on behalf of the Owners : Corporation Bank Officers’

Organisation (Regd.)106, Lobo Prabhu Court

Light House Hill Road, Mangalore - 575 001

EditorEkanath Baliga

Asso. EditorSatish Shetty

MembersH.S. Vishwanath

K.B. PrasadY. Sudhindra

Printed by:M. Rajesh Dange

Codeword Process & PrintersFalnir, Mangalore - 575 001

Edited and Published byEkanath Baliga

on behalf of the Owners : Corporation Bank Officers’

Organisation (Regd.)106, Lobo Prabhu Court

Light House Hill Road, Mangalore - 575 001 e-mail: [email protected] Visit us @ our website:www.cboo.org

Founder Editor : Sri T.R. Bhat

Registered with RNI, Delhi Regn. No. KARENG/2005/14831

Licensed to Post Under License MNG/128/2015-17 & SK/MNG/WPP/7

Bank’s financial results for the first quarter have been published. The most desired soother is, the Bank earned a marginal net profit in Q-1. The faces of the Corp Bankers widened with glee to listen to the news of profit. The quantum may be small – just Rs.35.92 crore; but the sentiments around are gigantic. After a first-of-its-kind Net Loss for the last fiscal in March, 2016, the spirits of Corp Bankers were dampened; faces turned pale to witness the ignominious record in 111 years. The turnaround within three months is a welcome development. The Bank has got to take off now and gain its glorious days back.

The most serious concern among the figures published is the stagnation in business. Though there is a marginal increase of 0.91% in total business on YoY basis, the same is negative by 2.91% over the March, 2016 figures. Both deposits and advances are negative over March (by 3.25% & 2.41% resp.) in absolute terms. On the contrary, the unwanted element in the business – namely the NPA - has been growing despite all out efforts. Gross NPA reached a level of 11.01% totalling Rs. 15726.12 crore (March, 2016 – 9.98%) with Net NPA at 7.22% amounting to Rs.9160.14 crore (March, 2016 – 6.53%). These two factors have increased the worries for the Bank.

Why the business has not been growing?

• While small and medium branches have been continuing to contribute to the Corporate figures, it has mainly been the bigger branches which instead of growing have been contributing negative growth. Most of these branches are

headed by senior Corp bankers. Whether the age has weakened the urge for business?

• Negative growth of credit has had a contributory factor in the upward movement of percentage of NPAs. After witnessing the legacy of NPAs in large borrowal accounts, the Bank had been trying to drive its force for retail credit and advances, smaller in size. But growth has not taken place as expected. A discussion with ground force indicates a few undesirable facts:

- Credit decisions – to sanction or not – do not come forth in time, especially from a few controlling offices. Queries are raised – that too not in a single lot – after inordinate delay – that too after follow-up by branches seeking sanction/status. Larger the size of the proposal – more the indecision.

- A series of post sanction compliance terms incapacitate branches to disburse with ease.

- In a few branches where there is scope for credit, additional supervisory staff complement is not provided.

- Vital guidance and positive follow up from Zonal Headquarters is missing at many centres.

The unpalatable surge in NPAs could not be addressed by the Bank, still. There had been an addition of Rs.2385.84 crore in a single quarter! Small borrowal NPAs (less than Rs. 1.00 crore) stood at Rs. 1961.91 crore (Rs. 1626.21 crore in March, 21016) which can definitely be attacked by the Bank’s ground force. Fairly good efforts have taken place in recovery, upgradation; along with write offs, this amounted to

411 Vol 35 - 3 September, 2016


Page No.

CBOO News ................................................... 3Banking Round Up .......................................... 9Article: NPAs in PSBs ................................................ 16Balasubramanian Memorial Lecture ............ 19Disciplinary Workshop .................................. 22CBROA .......................................................... 24Letter to Editor .............................................. 27Retirements .................................................... 30Class Room ................................................... 34Miscellany ..................................................... 35Swasti ............................................................ 37Circular Round Up ........................................ 38Health Watch ................................................. 41In Lighter Vein ............................................... 44

C O N T E N T S

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Rs.1203.97 crores. But this was eclipsed by the growth in NPA. Hence, a lot more is needed.

Why NPAs are not coming down?

The follow-up of recovery must go beyond telephonic directions and figure collection from controlling offices. We want more ‘War Bound Foot Soldiers’ than Generals. We had suggested to groom Recovery Officers as a Specialist category with intensive training on follow up of repayments, recovery measures, enforcement of security, compromise settlements, follow-up of loans in court accounts and OTSs. To make a beginning, they might be assigned a cluster of critical branches. But these could be implemented only if a Deloitte, a Mckinsey, a KPMG or an Ernst & Young gives the same (idea) in a pictorial presentation with a tag as ‘Consultant’ with a hefty fee.

With much persuasion a concept of, ‘Recovery Team’ for each Zonal Office was evolved a year back; but unfortunately, the zeal weaned out before the ink on the note of approval dried up. The reason – ZOs were asked to form the ‘Team’ from out of the existing complement! Ultimately, it became a ‘still-born.’

We need to allocate more of our energies for recovery and upgrading the health of our assets:

- Faster and timely decision taking needs to be attuned in the functioning at all higher levels – of course – without compromising on relevant norms.

- More Generals can be sent to war field instead of stationing at control rooms beyond need. Formation of Recovery Team at Zonal level may be relooked. Recovery Officers as a Specialist category shall be groomed with a long term perspective.

- Healthy branches (NIL NPA and NIL Delinquency) must be recognised distinctly – in terms of mementos, team felicitation, additional need-based staffing and other incentives. Branch staff need to be educated on recovering the monthly instalments and regular follow-up with borrowers. This is lacking in majority of the branches staffed with younger generation of officers. Training sessions on Recovery shall be prioritised with equal impetus like credit or retail lending.

There is no need for us to remain gloomy over the results. The performance for June quarter has several positives too which we can cheer upon, as well.

• Bulk deposits slid remarkably. The share of bulk deposits in total deposits constituted only 44.52% as against 49.97% last June.

• Total expenditure has come down by 1.82% over June last year.

• CASA has improved from18.92% (June, 2015) to 20.87%. However, it is below the March, 2016 figure (22.14%).

• Bank’s net worth (Capital and Reserves) improved from Rs. 10688.74 crore in June, 2015 to Rs. 11555.85 crore (March, 2016 – 11365.89 cr) thanks to capital infusion by the owner.

Turning the corner from Red to Pink in June, 2016 is a positive signal for the Bank. While the ups and downs are a part of business and performance, we need to strengthen the positives and shed the negatives. While the workforce is positive to the business moves of the Bank, the top leadership of the Bank has the capabilities of driving this force. In this process, the need of additional supervisory force cannot be undermined. The oft-proclaimed “SURPLUS” is a mirage and a misnomer vis-a -vis the ground realities. Be it for expanding retail credit, acquiring retail deposits or for strengthening the recovery measures, human component doesn’t have substitute. We need to urgently reassess the manpower and provide additional staff to needy branches and centres with business potential. If we continue with the claims of non-existent “SURPLUS”, only NPAs may remain as SURPLUS!Assuming the worst is over, the Bank shall move forward. Let us. Hope the administration will take necessary steps to accelerate the momentum gained in Q-1 to restore the past glory.


CBOO News

BRANCH VISITS

BHUBANESHWAR

Pankaj Patra, Zonal Chairman, Pravir Kumar Satpathy, Zonal Secretary and Radha Govind, Area Secretary visited Talcher, Dhenkal and Angul branches on 20th July. The members shared following problems faced by them:

a. Need for an armed guard at Dhenkal branch especially from the point of view of frequent cash remittance.

b. NeedforanadditionalofficeratAngulbranchinview of good business and scope for credit.

- P K Satpathy, Zonal Secretary

JAIPUR

1. Ekanath Baliga, President, Krishnaraj N S, Circle Secretary, Bangalore and Sumanth Tak and Sunil Gaud, Area Secretaries visited Jodhpur – Main, Basni, Pokran and Jaisalmer branches on 16th August and Barmer and Jhalore branches on 17th August. Following issues were observed:

a. Acute space constraint at Jodhpur branch; congested banking hall for customers – warranting shifting to a spacious premises.

b. Scope for credit, E-lobby and additional ATMs in Jodhpur city.

c. No water supply at Pokran branch since opening affecting Branch staff as well as customers.

d. Problems faced by the staff as also customers due to wide ramp inside the Pokran branch premises.

e. Leakage inside the premises of Jhalore branch resulting in spoiling the look and spoilage of furniture.

2. P V Premanandan, Joint General Secretary, Sanjay B Hile, Circle Secretary, Mumbai and Surendra Kumar Saini, Area Secretary visited Pratapgarh, Nimbahera, Chittaurgarh, Banswada, Bhilwara and Chogawadi branches on 16th and 17th August. Members interactedwith the office-bearers. Following problems were reported:

a. Shortage of 2 clerks since last one year at Chittaurgarh branch.

b. Very congested premises of Chogawadi branch; outside the normal reach of the customers (located in the corner of a University Building) affecting the business growth.

3. B Sridhar, Joint General Secretary, G P Nath, Circle Secretary, Kolkata, Rajesh Gautham, Area Secretary and Jatin Kundara, Activist visited Kishangarh, Ajmer, Nagaur, Beawar, Jamola, Kekri and Bhasu branches on 16th and 17th August.

Members gave the following feedback:

a. Frequent link failures at Jamola and Bhasu branches.

b. Need of furniture and note counting machine at Jamola branch.

c. Need for an AFO at Kekri with vast agricultural credit potential.

4. Anil Pahwa, Vice President, Alok Paul, Deputy General Secretary, Awadhesh Kumar Choudhary, Circle Secretary, Delhi, Sriram Meena, Zonal Chairman and Mr. Vinod Gothwal, Area Secretary visited Dausa, Peechupada, Ramgarh and Alwar branches on 16th August and Behror, Ikrotia and Bhiwadi branches on 17th August. Team had good interaction with members and got valuable feedback.

a. Need of one clerk urgently at Dausa and Alwar branches.

b. Need for one officer at Ikrotia branch (Singleofficerbranch).

c. Poor service by service provider for Pass Book printer, Dot Matrix printer and other hardware at Dausa.

d. Connectivity problems at Dausa, Peechupada and Behror branches.

e. Unsuitable and unsafe branch premises at Peechupada.

f. Need for shifting Bhiwadi branch to market area as the present premises does not have proper entrance nor visibility from main road.

Who till and eat, beg not; naught hide But give to these who are in need. – Thirukkural


5. K B Prasad, Joint General Secretary, C V Sheshachala, E C Member and Shashikant Meena, Area Secretary visited Sawai Madhopur, Aligunj, Karauli, Hindaun and Bharatpur branches on 16th August. They visited Nogawan and Muriya branches on 17th August. Members shared following problems faced by them:

a. Absence of dedicated BSNL line at Aligunj and Nogawan branches. Connectivity problems with V Sat.

b. Drinking water problem at Aligunj since long.c. Frequent ATM failure at Aligunj due to

connectivity problems bringing disrepute to Bank.

d. Water leakage problems coupled with rain water gushing into premises at Karauli.

e. Shortage of a clerk at Bharatpur and Muriya.f. Space constraint especially at customer lounge

at Bharatpur; Premises problems at Muriya.

6. S Ramachandrappa, Deputy General Secretary, Uday K Khade, Assistant General Secretary and K C Meena, Activist visited Sujangarh, Churu, Sardar Sahab, Bikaner branches on 16th August and Jhunjhunu, Sikar, Todi and Pilani branches on 17th August. Members shared the following with the visitors:

a. Shortage of one clerk at Churu, Sardar Sahab and Todi

b. Need for a cash counting machine at Sardar Sahab

7. Satish Shetty, General Secretary, Sobha L Secretary, Women’s Wing, Sabu G C, Assistant General Secretary, Rakesh Kumar Meena, Zonal Secretary, Mumal Sharma, Zonal Lady Secretary and Arun Kumar, Area Secretary visited Jaipur – Vidyadhar Nagar, T P Nagar, Sitapur, Jagatpur, CBB, Mini CAPS, Mansarovar, B S Road, Main, Currency Chest, Shyamnagar, Vaishali Nagar, Sanganer, Retail Loan Centre and Zonal Office on 16th and 17th August. Following issues were observed requiring the attention of administration:

a. Shortage of one clerk at Jaipur- Shyamnagar, one officer and one clerk at Currency Chest,oneofficerandtwoclerksatJaipur–Main,oneofficeratJaipur–CBB,TPNagarandJagatpur

b. Need for renovation of Jaipur – Main

c. Need for shifting Jaipur - Jagatpura branch immediately due to serious premises issues affecting the business growth.

d. Connectivity problems at Jaipur – Jagatpura

e. Problemof frequentdeputationofofficer fromJaipur – Sitapur.

The team, along with G Raghuraman, Vice President called on the Deputy Zonal Head. Based on the observations and feedback received during the branch visits, the DZH was briefed about the problemsfacedbythebranches.Itwasalsoinformedthat a brief note on various issues pertaining to the branches would be submitted for taking suitable steps.Itwassuggestedtoextendahelpinghandtothe young and energetic workforce in the Zone to exploit vast business potential.

- Rakesh Kumar Meena, Zonal Secretary

DELHI – SOUTH

Anil Pahwa, Vice President, Alok Paul, Deputy General Secretary, Awadhesh Kumar Choudhary, Circle Secretary, Delhi, Sriram Meena, Zonal Chairman, Jaipur Unit and Mr. Vinod Gothwal, Area Secretary, Jaipur visited Dharuhera branch on 17th August.

AHMEDABAD

Rohit D Rawal, Circle Secretary, Sachin Dev, Zonal Chairman and Anand Kumar Sahu, Zonal Secretary visited Chiloda, Gandhinagar – CPBB, Vijapur, Dehgam, Himmatnagar and Idar Branches on 5th August. Members shared the following issues:

a. NeedforsecondofficeratDehgam(Business–Rs. 7.82 crores) and Chiloda (Business – Rs. 11.30 crores).

b. Staff problems due to frequent outward deputation at Gandhinagar CPBB.

c. Need for an armed guard at Vijapur.

- Anand Kumar Sahu, Zonal Secretary

CHENNAI

Circle Secretary P Rangarajan, Zonal Chairman K R Bhaskar, Zonal Secretary, P Nagarajan, Deputy Zonal Secretary, G K Murugan along with Rajasekaran, former Zonal Chairman, Trichy Zone

A good deed is never lost; he who sows courtesy, reaps friendship; he who plants kindness, gathers love - St. Baril


visited Thiruvannamalai, Vengikkal, Chetpet, Arni, Kunnathur and Kalambur Branches on 10th

August.

The team discussed various issues pertaining to

the respective branches and interacted with the

members and non members as well.

- P Nagarajan, Zonal Secretary

ZONAL COMMITTEE MEETINGS

THIRUVANANTHAPURAM

The second Zonal Committee Meeting of Trivandrum

Zonal unit was held at Mavelikkara on 07.08.2016.

The meeting was chaired by T C Joseph, Zonal

Chairman. Except two Zonal Committee members,

all others attended the meeting along with three

SpecialInvitees.

Zonal Secretary, K D Baburajan welcomed the

members and also read out the minutes of previous

meeting and it was approved by the Committee. He

also reported the activities undertaken by the unit

after the previous ZC meeting.

In his address, Zonal Chairman, T C Joseph touched upon various points including importance

of the Organisation, impact of merger of associate

banks with SBI with special reference to SBT,

withdrawal of strike call byAIBEA in thepretext

of court order, transfers during this year and staff

shortage (clerical and sub-staff). He was critical

of the explanation letters issued to the branch

managers for “allowing accounts to slip into NPA” as

if managers are asking borrowers to stop payment

to their loan accounts. ‘Such acts will discourage

branch managers from taking credit decisions’, he

explained.

Zonal Committee members raised the following

issues:

1. Diversion of focus of Branch Heads as there

are multiple campaigns going on at a time.

2. Inadequate increase in rentals on officers’

quarters (15%). Even after the recent hike

wef01.04.2015,officersarenotabletofinda

suitable house within the eligible limit.

3. Non-payment of eligible HRA applicable at

some centres after upgradation of these centres

as per 2011 census.

4. Staff shortage (officers) in Neyyattinkara and

Alumkadavu branches. Shortage of sub staff

and sweepers at several branches. No posting

in the place of retired peons and sweepers.

5. Importance and need of periodical staff

meetings at branches/offices for discussing

the latest developments. This will definitely

improve the knowledge level of all employees.

6. Difficulties faced by branches in filing of

quarterly TDS returns as well as Form 15H,

form 15G. In almost all other banks, these

returnsarefiledcentrally throughcontrolling

offices.

7. Need for providing CTS scanners to all clearing

centresasadvisedbyRBI.

8. Problems faced in sanction of hospitalisation

expense by Medi Assist and their indifferent

attitude for sanctioning domiciliary treatment

expenses.

9. ProblemsfacedinenforcementunderSARFEASI

Act.

10. Detailed plans for Branch visits.

The meeting concluded with vote of thanks by

Sathyadas K R, Area Secretary.

- K D Baburajan, Zonal Secretary

MEETINGS

JAIPUR

A meeting of the members of the Jaipur Zone was

held on 14th August atHotel Vesta International,

Jaipur. More than 75 members attended the

meeting. The meeting was held to coincide with the

141st EC Meeting at Jaipur and was attended by

the President, Vice- Presidents, General Secretary

andotheroffice-bearers.

The mud thrower never has clean hands – Anonymous


Welcoming all, Rakesh Kumar Meena, Zonal Secretary was appreciative of the members for

attending the meeting in large numbers despite continuous holidays.

Licensing of new private banks, the newly launched on-tap licensing and such other measures are intended to reduce the share of the PSBs in the banking industry in the country.

Merger of banks will result in the reduction of employment; job security will be at threat and promotion opportunities will dwindle. Mergers will impact the services of everyone from the lowest rung – PTS to the General Managers. In such asituation of mergers, large scale merger or closure of branches might take place irrationally. Thereafter, the highly potential areas will be pocketed by private sectorbanks.Thecommonmanwillbefleecedforbanking services by the private entities. There is a need for all of us to explain the ills of private sector to the public.

We are at the threshold of next wage revision. We have to collectively strive to better the Bank’s performance. The profit posted by the Bank inthe first quarter is a positive sign. We have toconquer the NPAs; somewhere we have missed our responsibilities in recovery due to which more and more small borrowal accounts have become NPA. Posting inexperienced officers as BranchManagershasputtheBankinfurtherdifficulties.The top management, experiencing initial setbacks, pronouncednottopostanyofficerasBMwithoutwillingness and before 3-4 years’ experience as officer.Butthisendeduponlyinpronouncement;not in action. He called upon everybody to strengthen CBOO and to contribute to the cause ofofficers.

Vice President, G Raghuraman congratulated the local unit for precision arrangement for the EC meeting and the excellent team work by Zonal unit. He also explained the performance of the Bank and NPAs problems. We must improve the business of

A critic is one who points out how imperfectly others do what the critic does not do at all- Anonymous

Addressing the members, Satish Shetty, General Secretary explained the circumstances under which the long pending issue of rent revision on officers’residentialquarterswasclinched.Hesaid,the revision was fairly and reasonably good in the backdropofthefinancialpositionoftheBankandalso the fact that the revision was with effect from 01/04/2015.

He expressed concern over the stagnated business oftheBank."Thereisaneedforalltheofficerstocontribute more in this hour of need in terms of business and recovery etc. The continuation of the posting policy of the earlier administration in the name of so called 'Comfort Zone' has resulted in the 'Discomfort Zone' for the Bank. The administration needs to relook into this and post right persons at right posts."

“Government initially declared that there would be no imposition of merger policy on PSBs; but has presently introduced arm-twisting tactics. AQR policyhasforcedPSBstopostlosses.Ithasbecomean alibi to stipulate conditions for capitalization.


the Bank in our own interests – should we intend to securenewbenefitsorimprovementoftheexisting.Hence, “Recover more and Lend More.” Juniors must acquire knowledge from seniors and seniors must handhold the juniors. Youngsters must take up responsibilities in CBOO also. Unless we lead a strongofficers’union,ourfuturemightnotbeverysafe, he concluded.

Vice President, Anil Pahwa spoke eloquently on the entire workforce of the Zone – a combination of experienced seniors and resourceful juniors. He was critical that time and again, members would raise foul cry at the indifferent attitude in handling personnelandadministrativeissuesatZonalOffice.This has led to marginal demotivation among the workforce – more importantly, the Branch Heads. He was also at loss to appreciate that a small sectionofofficersdidnotparticipateintherecentStrike (on 29th July). Non- participation in the Strike is an indicator of our weakness which may lead to failure in accomplishing our issues, he said.

curbing labour rights, union rights and subsequent privatization of the nation’s wealth. Merger will be detrimental to the interests of one and all in the Bank and so will be privatisation moves.

The Bank posting a marginal profit in the Junequarter is a positive signal and this must be a new beginningfortheBanktocomeoutofthedifficulttimes. Explaining certain factors for the Bank’s business not picking up, he referred to the negative attitude at a few Zonal centres – not extending proper business support to the enthusiastic Branch Heads. Not disposing the credit and recovery proposals in time has discouraged somany fieldfunctionaries, he said. Referring to the personalized approach in two to three transfers in the Jaipur Zone,hespecifiedoneoftheBranchManagerswastransferred vindictively – only to satisfy the power centres,astheconcernedofficerquestionedcertainwrongful acts/decisions. Such acts do not augur well for smoother business environment. There must be a professional approach in responding to the needs of the Branch Managers and there shall not be any ill-treatment. Performers must be encouraged and recognized, he said.

He requested all the members to comply with all rules and regulations of business. 'Growth with Quality' shall be our watch-word. Good business growth can be achieved by following all the rules of the game. He invited the members to contribute articles, cartoons and write ups for the Officers’ Voice.

People do not lack strength; but they lack will - V Hugo

President, Ekanath Baliga explained to the members the background of the Strike on 2nd September. Protesting the anti-labour policies of the Central Government is very essential as the ill-designs of the Government are aimed at

The meeting concluded with a Vote of Thanks proposed by Sriram Meena, Zonal Chairman. The programme was well compeered by Sri Sunil Gaud, Area Secretary.

- Rakesh Kumar Meena, Zonal Secretary

EC MEETING

The 141stmeetingoftheExecutiveCommitteewasheldatHotelVestaInternationalatJaipuron14th and 15thAugust.ThiswasthefirstmeetingoftheECatJaipur.ThefollowingissueswerediscussedattheEC:

a. IssuesrelatedwithproposedmergerofPSBsandthedeclaredmergerofAssociateBankswithSBI.b. UFBU Strike on 29th July and proposed strike on 2nd Septemberc. Q1 results of the Bank d. Problems faced in New Hospitalisation Reimbursement Schemee. Approval of Financial Statements of CBOO, Benevolent Fund and SWASTIf. Need to revisit Manpower Assessment more realistically.

The Jaipur Zonal unit had made elaborate arrangements for the event. The team of volunteers and Zonal Committee members, led by the Zonal Chairman, Sriram Meena and Zonal Secretary, Rakesh Kumar Meena deserves kudos for proper conduct of the EC meeting, a members’ meeting on 14th at the same venue and branch visits that followed on 16th and 17th August covering the entire Zone. (Detailed circular follows).


e

Jaipur

JP

Strong union activist changed his mind recently in favour of merger when he heard rumours of our bank merging with their bank.


New row: handing over bad student loans to Reliance

TheStateBankofIndia’sdecisiontohandoverits“non-performing” education loans to Reliance’s Asset Reconstruction Company was criticised in the Rajya Sabha on Friday. Taking up the matter duringzerohour,CPI(M)MPKKRageshsaidSBIgave bad loans worth Rs 847 crore to Reliance and its ARC has to return just 45 percent of the total loan amount over a period of 15 years. “Why is the SBItakingsuchkindofadecision?Ifstudentsaregiven the same concession as has been offered to Reliance, voluntarily, students themselves may pay the loan amount back,” Ragesh said. His demand was supported by members belonging to all political parties.

He said if 15 years is given to students, they may voluntarily pay back the loan. “Why is such a concessionbeingofferedtotheReliancecompany?It isnotforthefirsttimethattheSBIisshowingits apathy towards the student community,” he asked. Ragesh added that recently there was also a decision that students who had defaulted on loan repayments will not be allowed to apply for jobs intheSBI.“Whatisthis?Whoisdependinguponeducation loans? It is the students from sociallyand educationally backward sections. And why are theynotinapositiontopaybacktheloans?Thatis because of the poor quality of education and because of the unemployment situation that exists in our country,” he added.

He said it is the responsibility of the State to ensure education and employment to students. “The Government is abdicating its responsibility. Indebtedstudentsarethevictimsoftheeducationpolicy. Educational institutions are being made mere teaching shops. That is why such a situation has arisen,” he said and urged the Centre to intervene in the matter.

- The Hindu Business Line, 30/07/2016

30% of ATMs of PS banks not working

AnRBIsurveyhasfoundthat30%ATMsofPublicSector Banks and 10% belonging to private banks

were non-functional due to technical snags and nocash,amongother reasons. Inawritten replyto the Lok Sabha, Minister of State for Finance Mr.SantoshKumarGangwarsaidRBIhasinformedthat it recently conducted a “representative sample survey” of about 4,000 ATMs situated in metro, semi-urban, urban and rural areas across the country.

“Primaryfindingsofthesurveyhaverevealedthataround 30 per cent of the ATMs (600) of Public Sector Banks and 10% (100) ATMs of private sector banks surveyed were non functioning,” he said. The major reasons for non-functioning/mal-functioning of ATMs noticed in the survey were -- technical snag, non - availability of network, power failure and non-availability of cash. “The report does not explicitly capture bank-wise data on non-functioning/mal-functioning of ATMs surveyed,” the Minister said.

- The Times of India, 30/07/2016

IOB to Get only Half of its Allocated Capital

Walking the talk on performance-based capital infusion in Public Sector Banks, the Government has decided to disburse only half of Rs 3,101 crore it allocatedtoIndianOverseasBank(IOB),thesecondbiggest beneficiary of the recent capital infusionprogramme. Earlier this month when the Finance Ministry had announced ` 22,915 crore capital to 13 state-run banks, it had noted that 25% of this amount will be disbursed based on performance parameters includinggreaterefficiency,growthofboth credit and deposits and reduction in the cost of operations.

AseniorFinanceMinistryofficialsaidanexceptionhasbeenmadeinthecaseofIndianOverseasBank(IOB) and that assessment is on for other banksas well which may not get capital in full unless theyprove theirfinancialperformance.Themoveis expected to push weak banks towards merger if they are not able to raise capital through market offers. “Banks have been told that going forward, capital infusion programme will be increasingly linked to financial performance. Those unableto meet the set criteria will have to look at other options,”theofficialtoldET.

BaNkiNg rOuNd up

We never know the worth of water till the well is dry - T Fuller

IOBisoneoftheweakestlendersamongallPublicSector Banks (PSBs) and had posted a net loss of `2,898crorefor2015-16.Itsnetnon-performingassets (NPA) were 11.9% amounting to the total of `19,213 crore at end-March. The bank is currently headless and the search is on for Managing Director andCEO.Inareport,ratingagencyMoody’shadnoted that capital infusion is positive for weaker banks such as IOB and Central Bank of Indiawhich received a higher share of capital allocation as a proportion of their share capital.

- The Economic Times, 29/07/2016

Now, you can deposit cash using card swipe machines

Credit card swipe machines, which are used for making payments, will also be enabled soon to accept deposits. Mastercard has tied up with banks that install point of sales (PoS) terminals to accept cash deposits for loading onto prepaid cards. The payments company has already got this proposal clearedwiththeRBIandwouldbelaunchingthisservice ‘rePower’ shortly. Mastercard’s South Asia DivisionPresident,PorushSinghtoldTOI,aroundeight lakh PoS terminals out of the existing 12 lakh would accept cash. Enabling PoS terminals to accept cash deposits will also offset cash going out through cash-at-PoS service, which allows merchants to swipe debit cards for cash. According to Singh, a reason cash at PoS has not picked up is because customershave free access to fivetransactions in ATMs, although ATMs are a more expensive option than PoS machines. “We are also working together with the Confederation of All IndiaTraders,whichrepresentsover5croresmallshops, to promote card payments in kirana stores,” saidSingh.AccordingtoCAITNationalSecretary,Praveen Khandelwal, the two have been holding sessions to adopt digital technology to compete with e-commerce.


Finmin rejects Workers’ Bank Proposal by EPFO

The Ministry of Finance has rejected a proposal for setting up a Workers’ Bank by Employees’ Provident Fund Organisation (EPFO), according to a senior official of the LabourMinistry. Earlier, theEPFOhad sent proposals to the Finance Ministry seeking permission to start a bank to serve its members. The EPFO which has about 3.7 crore subscribers,

wanted to set up a bank and the proposal was discussed in the Central Board of Trustees’ (CBT) meeting on December 19, 2014. CBT is the apex decision making body of EPFO. “…They (Finance Ministry) are of the opinion that we do not have necessary competence for running a bank. Some internal discussions are going on in the Ministry. We are trying to come up with answers to satisfy Finance Ministry’s queries,” the official said oncondition of anonymity. The core idea of setting up thebankisnottomakehugeprofits,buttoserveourownmembersprimarily,theofficialsaid.


RBS informs customers about closure of India operations

The Royal Bank of Scotland (RBS) has informed its customers about the closure of all its 10 branches in India and withdrawal of its retail and wealthmanagement services. The British bank told its customers through its website to close their RBS accounts and make alternate arrangements for their banking, wealth management and demat accounts on or before August 31. According to RBS, its six India branches— Bengaluru, Hyderabad,Pune,Gurgaon,NoidaandVadodara—wouldbeshut from October 1 onwards. The remaining four branches—Chennai, Kolkata,Mumbai andNewDelhi—willbeclosedinduecourse,thebanksaid.The bank has also listed different dates for closure of its various services.


MUDRA Bank to step up monitoring of loans

The Micro Units Development and Refinance(MUDRA) Bank will step up monitoring of loans extended to micro, small and medium enterprises (MSMEs), according to itsChiefExecutiveOfficer,Jiji Mammen. A new module to capture district-wise loan disbursement and other aspects will be added to the MUDRA portal shortly, Mammen told newspersons on the sidelines of a seminar onmicrofinance here onMonday. Last year, totaldisbursement was around Rs 1.33-lakh crore, surpassing the target of Rs 1.22-lakh crore. This year’s target has been pegged at Rs 1.80-lakh crore, of which around Rs 25,000 crore has already been disbursed in the first quarter, he said. MUDRAoffers three categories of loans: Shishu (covering loans up to Rs 50,000); Kishore (loans above



Rs 50,000 and up to ` 5 lakh); Tarun (above ` 5 lakh and up to ` 10 lakh). Since its launch in April 2015, total loan disbursement under the scheme, which was originally launched as Pradhan Mantri Mudra Yojana (PMMY), has been over ` 1.45 lakh crore.


Host of lenders cut education loan rates to levels seen in ‘08

StateBankofIndia,BankofMaharashtraandAxisBank have dropped interest rates on educational loans by about 25 basis points (100bps =1 percentage point) over the past weeks. The move comes just in time for the new academic season and brings the rates down to 2008 levels. But rising non-performing assets (NPAs) in the educational loan portfolio are forcing banks to take a step back. ForSBI,theNPAsaretouchingnearly28%,whileprivate lender Lakshmi Vilas Bank has brought down its NPAs to 22%. The credit guarantee fund created by the Union Finance Ministry to protect banks from the bad loan deluge is yet to gain traction. “We have lowered rates to 10.3% now from 11% last year,” said M Palaniappan, CFO of private lender Lakshmi Vilas Bank (LVB).

TopprivatelenderslikeICICIBankandHDFCBankhave reduced their interest rate on educational loans by nearly 200 bps since June 1, to between 13% and 17%, with loans being half a percentage point less for girl students. The rates vary by 1-1.2 percentage points depending on whether the loans are secured by collateral or unsecured. Axis Bank, which gives student loans at 16.5% for less than ` 4 lakh and 17.5% for ` 4-7 lakh, has no plans to actively expand its educational loan portfolio. Other private lenders are also shying away from student loans, fearing high delinquency ratio. While there is no mandate to provide collateral for loans of less than ` 4 lakh, banks agree to lower rates when collaterals are furnished to support the loan, sources said. The biggest defaults are in the sub ` 4-lakh and above ` 7-lakh category for banks, while the sweet spot is in the ` 4-7 lakh category.


Govt. begins search for Bankruptcy Board chief

Government has started the search for Chairperson and three whole-time members of the Insolvencyand Bankruptcy Board as it moves towards the implementation of a new law to make debt recovery process more effective. The Board is being set up under the Insolvency and Bankruptcy Code,2016-approvedbyParliamentaswellasnotifiedby the Government in May. The Act consolidates and amends laws relating to reorganisation and insolvency resolution of corporate persons, partnershipfirmsandindividualsinatimeboundmanner.

The Corporate Affairs Ministry has sought applications for the posts of chairperson and three whole-time members. They would have a tenure of five years or till they attain the age of65 years, whichever is earlier. Those applying for the posts should be “persons of ability, integrity and standing, who have shown capacity in dealing with problems relating to insolvency or bankruptcy and have special knowledge and experience in the field of law, finance, economics, accountancy oradministration,” a public notice said. Appointments to these positions would be made on the basis of recommendation from the selection committee chaired by the Cabinet Secretary. Apart from a secretary level officer, three experts from thefieldof finance, law, management, insolvency andrelated subjects would be part of the panel. They would be nominated by the Government. The board would have a total of ten members, including the Chairperson.

Therewouldbethreeex-officiomembers,onepersonnominatedbytheReserveBankofIndia(RBI)andfivepeople-includingthreewholetimemembers-to be nominated by the Central Government. Three ex-officiomemberswouldrepresent theMinistriesof Finance, Corporate Affairs and Law. Only those officers at the level of Joint Secretary and abovewould be on the Board. A person joining as the Chairperson can either opt for pay as admissible to a Secretary in the Government or get a consolidated monthly salary of `4,50,000.Inthecaseofwholetime members, they would have the choice to get pay as admissible to an Additional Secretary or

And you shall speak to men good words - Koran


take home a consolidated salary of Rs 3,75,000 per month.


RBI eases liquidity coverage norms for banks

To help banks meet the Liquidity Coverage Ratio (LCR)norm,theReserveBankofIndiaonThursdaysaid, Government securities up to 9 percent of their deposits under the Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) will be reckoned as High Quality Liquid Assets (HQLA) as against 8 percent hitherto. The objective of the LCR is to promote short-term resilience of the liquidity risk profileofbanks.Itdoesthisbyensuringthatbankshave adequate stock of unencumbered HQLA that can be converted easily and immediately into cash in private markets to meet their liquidity needs for a 30 calendar day liquidity stress scenario.

The LCR is aimed at improving the banking sector’s ability to absorb shocks arising from financialand economic stress, whatever the source, thus reducing the risk of spillover from the financialsector to the real economy. Besides the FALLCR, the assets allowed as Level 1 HQLAs for the purpose of computing the LCR of banks, inter alia, include Government securities in excess of the minimum Statutory Liquidity Ratio (SLR) requirement and G-SecstotheextentallowedbytheRBIundertheMarginal Standing Facility (currently, 2 percent of the bank’s deposits).


Brookfield Asset commits ` 7000 cr for SBI Balance Sheet clean-up

InanefforttocleanupitsBalanceSheet,StateBankofIndia(SBI),India’slargestlender,hassignedanagreementwithBrookfieldAssetManagement Incto form a joint venture, which will invest in stressed assets.Undertheproposedjointventure,BrookfieldwillcommitaboutRs7,000croreandSBIupto5percent of total investments into stressed assets. Brookfieldisaglobalalternativeassetmanagerwith$240billion in assetsundermanagement. It hasan over 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity. It is listed

on the New York, Toronto and Euronext stock exchanges. The joint venture will be in the nature of an alternative investment fund. Such funds are regulatedbythecapitalmarketregulatorSEBI.

Rising NPAs

The move to form a joint venture comes in the backdrop of SBI’s gross non-performing assetsjumping from Rs 56,834 crore as at September-end 2015 to Rs 98,173 crore as at March-end 2016 after the RBI initiated a banking industry-wideAsset Quality Review. Also, Asset Reconstruction Companies (ARCs) are strapped for funds to buy stressed assets. SBI, in a statement said, “Theproposed JV will independently evaluate and invest in various stressed assets and will rely uponBrookfield’soperationalexpertisetomanagerecapitalised businesses. The proposed JV may, at a later stage, seek participation from other lenders intheidentifiedassets.”

SBI Chairman Arundhati Bhattacharya said thisapproach of collaborating with global players will enablebanks ingeneralandSBI inparticular, tofindalternativesolutionsforresolutionofstressedassets. She opined that such an approach will be more acceptable to both lenders and borrowers in cases where the promoters are not able to infuse funds and lenders are reluctant to take additional exposure. India Ratings and Research (Ind-Ra),in a recent note, observed that ARCs will need to re-orient themselves if they are to facilitate the resolution process of the Rs 6-lakh-crore bad debt pile-upinIndianbanks.


Alert: Pvt. Banks’ Unsecured Retail Lending Portfolio Rising

Retail loans may have been a safe heaven for banks, battered by mounting corporate bad loans, but the latest earnings posted by some of the largest private sector banks reveal that the unsecured portion of such loans are growing at a blistering pace, raising thepossibilityofdefaults.HDFCBank,India’smostvaluable lender, grew its personal loan book by 41% at ` 41,000 crore, and the bank’s credit card business grew 26% to ` 21,000 crore. Personal

A man of good acts and good and agreeable speech has no equal - Mahabharata


and credit card business comprised 5% of the bank’s total retail book which stood at over ` 3.2 lakh crore, but its delinquencies have risen in both these segments. “These products have an expected loss which is higher because you are pricing in a certain level of loss,” Paresh Sukthankar, DMD, HDFC Bank, said. “As long as actual losses are within what you expect for those products, it’s the cost of doing that business.”

India’sthirdlargestprivatesectorlenderAxisBanktoo grew its unsecured lending portfolio in double digits which propped up its retail book. The bank had in the past stated that it wanted to grow its unsecured lending portfolio to 15% of its retail lending portfolio. Axis Bank’s personal loan and credit card business added Rs 15,000 crore to its total retail loan portfolio. The bank, which recorded retail NPAs upwards of Rs.300 crore, is not worried aboutgrowthinretaildelinquencies.“Ifyoulookatthe scale at which we have grown, the retail book and scale at which delinquencies have grown is not a cause of concern,” V Srinivasan, DMD, Axis Bank, told ET.


Govt. Must Protect Independence of Central Bank: Rajan

OutgoingReserveBankofIndiaGovernorRaghuramRajan has said governments should ignore the high decibel noise against prudent monetary policies by vested interests in the interest of sustained economic growth.“It is importantthatgovernmentsaroundthe world look beyond sometimes uninformed and motivated public criticism and protect the independence of their central bank to act. That is essential for stable sustainable growth,” he said at aneventatRBITuesday.

Rajan said the criticism of high interest rates stalling investments in India are not backed byevidence and the markets and bankers have also come on board to clean up the system after initial hesitation. “The RBI, of course, stands by itspolicies,” he said at the conference of statisticians and economists from across the world celebrating the Statistics Day. “The slowdown in credit growth has been largely because of stress in the Public Sector Banks, stemming from past mistakes in

lending.Thiswillnotbefixedjustbyacutinpolicyrates,” he argued.

Rajanalsopointedtothehighinflationwhichguidedhispolicystance.“WithCPIinflationcurrentlyclosetotheupperboundofourinflationtarget,fewcouldsensibly argue that we have not been adequately accommodative. Of course, our last policy statement indicated we expect it to come down to around 5% by March 2017,” he said. Rajan has taken a jibe atpeoplewhoarguedthatRBIkilleddemandandgrowth throughhigh rateswhile India earned thefastest growing large economy tag recently.

“They argue that our policy has had little effect on curbinginflation,thatdisinflationhasbeenresultof the fall in oil other commodity prices,” Rajan said. “For instance,evenas thepriceof the Indiacrude basket fell 72% between August 2014 and January 2016, the pump price of petrol fell only 17%.Therefore,whileIdowanttoacknowledgethebenign international price environment in bringing down inflation, it isnot theentirestory.”Hesaidcentral banks do not determine policy on short-term basis, but it sometimes is the focal point for the media debate here. The Stock market, after reacting negatively initially early this year, started reacting positively to the Public Sector Banks’ clean up act.


SBI to offer overdrafts, loans to 7 lakh Jan Dhan account-holders

State Bank of India, the country’s largest lender,will offer overdraft and loan facilities to nearly seven lakh account holders who have enrolled with it through the Pradhan Mantri Jan Dhan Yojana (PMJDY). Under the PMJDY scheme, the Public Sector Bank has opened 10 crore accounts, its Chairman, Arundhati Bhattacharya, said here on Wednesday.Underitsfinancialinclusionplan,thebank continues to open around 60,000 accounts day.


NITI Aayog bats for closure of 8 PSUs

Tasked by Prime Minister’s Office to look intoviability of sick state-run companies, Government

You can’t judge a horse by the harness – Proverb


think-tank,NitiAayoghasidentifiedeightPSUsforclosureafterfindingthemunfitforrevival.“Theseeight units are out of 74 loss-making Public Sector UndertakingsidentifiedbytheNitiAayogforclosureor sell off,” said a source privy to the development.

Once the Prime Minister’s Office gives the in-principle approval to the proposal, the Ministry responsible for administration of these PSUs will prepare detailed plan for closure of these firms,thesourcesaid.Theplanwillincludeidentificationof assets to be liquidated and the compensation for employees of these firms. The source furthersaid these closure plans will be placed before Union Cabinet for approval to start the process of liquidatingthefirms.Earlier,NitiAayogwasaskedby the PMO to identify one sick PSU, along with a detailed plan for its sell-off or eventual liquidation, before moving on to other such cases.


IDFC Bank, IDFC Merger on the Cards?

AstorysimilartothatofICICImergingwithICICIBank to create a behemoth may play out again after a gap of 15 years. This time around it may well beIDFCandIDFCBankmergingaftertheReserveBank of India’s ‘on-tap’ licensing rules pave theway for dumping the holding company structure. The plans are sketchy at this point with less than 24hoursafterRBI said that entities like IDFC ifin future wanted to be a bank need not follow the complex holding company structure. But the top executives of the company are at the drawing board to make the best for shareholders. “It may notexactly be a reverse merger there are variants to that...thedetailsofwhichIcannotreallydiscuss,”Rajiv Lall, Chief Executive, IDFC Bank, told ET.“But the message is that there is enough in the newregulationsoftheRBIthatallowsustoengagein a productive discussion with the regulator to find a solution to our holding company discountproblem.”

IDFCwhichstartedasaninfrastructurelendergota license in 2014 to become a bank. But the process was so complicated that it was almost crippling for shareholders and even for the management to exploititsstrengths.IDFCformedawholly-ownedsubsidiary,IDFCFinancialHoldingCompanywhich

owns 52% of IDFCBank. There is another listedentity IDFC which runs other financial servicesbusiness. “We have to seek clarity from the RBIand we may have to reorganise ourselves in such a way that we become eligible for this new scheme.” said Lall. “We have had informal talks with RBI;but we haven’t written a formal letter saying this iswhatwewant.”IDFCBankisamongtheworstperforming to notch private lenders with its stock falling 29% in the past year.


RBS slips into loss in Q2

Royal Bank of Scotland swung to loss in the second quarter of 2016 as it set aside more cash to cover litigation and conduct issues as it cleans up the problems that led to a taxpayer-funded bailout at the heightoftheglobalfinancialcrisis.Thenowgovernmentcontrolled bank on Friday reported a pre-tax operating loss of £695 million ($913 million) compared with a profitof£224millioninthesamequarterayearearlier.Itpostedanet lossof£1.08billioncomparedwithayear-earlierprofitof£280million.

RBS took charges of £1.28 billion to cover costs related to the miss-selling of payment protection insurance, investor litigation surrounding a 2008 share sale and an inquiry into mortgages whose interest rates track other indicators such as the inflationrate.“Ourfocusisondrawingalineundermany of the legacy issues that have plagued this bank and transforming the core business so that wecandeliverconsistent,sustainableprofitsandresults for our shareholders,” CEO Ross McEwan said in a statement.


RBI launches portal to curb illegal money pooling, deposit taking by firms

To address the menace of illegal deposit taking/money pooling, the Reserve Bank of India alongwithotherfinancialsector regulatorsonThursdaylaunched a website, which will enable members of the public to obtain information regarding entities that are allowed to accept deposits, lodge complaints and also share information regarding illegal acceptance of deposits by unscrupulous entities

A little evil is often necessary for obtaining a great good. – Voltaire


TheRBIalongwithotherregulators—SecuritiesandExchangeBoardofIndia,InsuranceRegulatoryandDevelopmentAuthorityofIndia,PensionFundRegulatory and Development Authority, National Housing Bank and Registrar of Companies —and entities such as State Governments and the Economic Offences Wing have launched www.sachet.rbi.org.in, a website where such cases may be reported to the regulator concerned. The website provides for tracking the status of one’s complaint.


RBI sets up panel on household finance

TheReserveBankofIndia(RBI)hassetupacommitteeto look at the various facets of household finance inIndiasoastobenchmarkIndia’spositionvis-à-visbothpeer countries and advanced countries and identify areas of priority for growth and change.The Committee will be chaired by Tarun Ramadorai, Professor of Financial Economics, University of Oxford and will have representationfromfinancialsectorregulators,namely,Securities and Exchange Board of India, InsuranceRegulatoryandDevelopmentAuthorityofIndia,PensionFund Regulatory and Development Authority apart from RBI.

The terms of reference of the Committee include characterising and evaluating Indianhouseholds’demands in formal financial markets (for assetssuch as pension as well as liabilities such as home loans) over the coming decade; considering whether, how and why the financial allocationsof Indian households deviate from desirablefinancialallocationandbehavior(suchasthelargehousehold allocation to gold).

The Committee will also seek to evaluate the design of new systems and the redesign of existing systems of incentives and regulations to encourage and enable betterparticipationbyIndiahouseholdsinformalfinancialmarkets. Further, itwill assess the roleofnewfinancial technologiesandproducts (suchas robo-advising and automatically refinancingmortgages) in the cost-effective provision of high-quality and suitable financial products to Indiahouseholds while containing risks. The Committee is expected to submit its report in July 2017.


SARFAESI extended to NBFCs: More power to systematically important companies

The non-banking financial company (NBFC)sector in the country crossed a new milestone, as the Finance Ministry redeemed a promise made long time back in Budget 2015. A total of 196 systematically important NBFCs, with assets of ` 500 crore or more as per their last Balance Sheets havebeennotifiedas ‘secured lenders’under theSecuritisation and Reconstruction of Financial Assets andEnforcement of Security Interest Act,2002(SARFAESIAct).Assuch,theseNBFCsmaynow enforce security interests on assets charged to them, without having to resort to either judicial or arbitral authorities.

TheSARFAESIActisdueforamajorstrengthening,as Parliament recently passed an amending Bill 2016, which gives further strength to its provisions. The Bill has been passed by both the Houses and awaits the assent of the President, after which it maybegiveneffectbyanotificationoftheMinistry.

The extension of SARFAESIAct toNBFCsbringsamuch-neededlevel-playingfieldbetweenNBFCsand banks. NBFCs did better than many banks in terms of debt recoveries, despite not having statutory powers; now, armed with powers of repossession, there will hopefully be more debt discipline and better recoveries than ever. Eventually, one may expect the cost of credit to come down.

- Moneylife, 11/08/2016

Urjit Patel will Take Over as RBI Boss

The Government has promoted Urjit Patel, a Deputy GovernorinchargeofmonetarypolicyattheRBI,to serve as its next Governor for a three year term (from September, 4). He will replace Raghuram Rajan.


May my life, each breath of life, the eyes, the ears, the speech, the mind, the soul and all other acts and deeds be put to the service of mankind. – Yajur Veda

THE FOUR FABULOUS LOOKS:1. LOOK BACK - IT GIVES EXPERIENCE

2. LOOK FORWARD - IT GIVES HOPE

3. LOOK AROUND - IT GIVES REALITY

4. LOOK WITHIN - IT GIVES CONFIDENCE


NPAs IN PSBs

provisioning for the advances portfolio of the banks so as to move towards greater consistency and transparency in the published accounts. These norms were based on the international standards (known asBasel Standards). As directed by RBI,banksinIndiastartedimplementingtheconceptofclassifying assets into Performing Assets (Standard Assets) and Non-Performing Assets (Sub-standard Assets, Doubtful Assets and Loss Assets) during the 1990s. Even though the implementation was in stages for a smooth adoption of the norms, the Public Sector Banks had to face the heat as the new norms prohibited booking / charging interest onaccrualbasisandtherebytheprofitabilitywasaffected.

At the time when these norms were introduced, the privatization lobby in the country had written the obituary of PSBs. But it is to the credit of PSBs that they came out of the problem with a thumpingsuccessascanbeseenfromthefiguresbelow:

If you wishest to tide over difficulties, humility is the way for thee. If thou wouldst drown thyself, go in for pride - Kabir

The Non-Performing Assets (NPAs) in the Banking industry, especially those in Public Sector Banks have been grabbing the attention of the media and public, thanks to the non-payment of loans by the Kingfisher Airlines owned by liquor- baron andRajya Sabha MP (till recently), Mr. Vijay Mallya. The borrowerhasbeen classified as ‘WilfulDefaulter”by the consortium of Banks which had lent without batting an eye lid, more than ` 9000 crore to the ailingairline.NPAsassumesignificanceas ithaspotential to damage the health of the Banks and consequently the economic growth of the country.

Background

Inlinewiththeinternationalbestpracticesandasper the recommendations made by the Committee on the Financial System under the Chairmanship of Sri M. Narasimham (known as Narasimham Committee),theReserveBankofIndiaintroduced,in a phased manner in 1990, prudential norms for income recognition, asset classification and

GROSS NPAs NET NPAs

YEAR PUBLIC NEW PRIVATE PUBLIC NEW PRIVATE ENDED SECTOR SECTOR SECTOR SECTOR BANKS BANKS BANKS BANKS

Amount % to Amount % to Amount % to Amount % to (in cr.) Gr. (in cr.) Gr. (in cr.) Gr. (in cr.) Gr. Advances Advances Advances Advances

2001 54672 12.4 1617 8.9 27977 6.7 929 3.1

2002 56473 11.1 6822 8.9 27958 5.8 3663 4.9

2003 54090 9.4 7232 7.6 24867 4.5 4142 4.6

2004 51538 7.8 5963 5.0 18860 3.0 2717 2.4

2005 47325 5.7 4582 3.6 16904 2.0 2353 1.9

2006 41358 3.6 4052 1.7 14566 1.3 1796 0.8

2007 38968 2.7 6287 1.9 15145 1.1 3137 1.0

2008 40595 2.2 10426 2.5 17836 1.0 4907 1.2

2009 44039 2.0 13815 2.8 21033 0.7 6253 1.3

2010 59926 2.2 14017 2.9 29375 1.1 5234 1.1

2011 74614 2.2 14541 2.3 36071 1.1 3448 0.6

2012 117800 3.3 14500 2.0 59300 1.5 3000 0.4

2013 165000 4.1 15800 2.2 90000 2.0 3900 0.4

[ Source: RBI: Trends and Progress of Banking in India]

- D N PRAKASH


ItcouldbeseenthatGrossNon-PerformingAssets(GNPAs) in Public Sector Banks (PSBs) were as high as 12.4% and Net Non-Performing Assets (NNPAs) were 6.7% of gross advances in 2001. The corresponding figures for new private sectorBanks were 8.9% and 3.1% respectively. From that position, PSBs could bring down the GNPAs to 2.2% and NNPAs to 1.1% by 2011. In fact PSBs had done better than new private sector banks in NPA Management during the period 2008 to 2011.

NPAs – A continuing problem:

During the last three years the problem of NPAs has assumed gigantic proportions (see table below) as theIndianeconomyalsostartedfeelingtheeffectofeconomic slowdown:

[ `InCr.]

PARTICULARS MAR. 2014 MAR.2015 MAR.2016

GROSS NPAs:

Nationalised Banks 144,447 204,960 419,847

State Bank Group 79,817 73,508 118,333

Public Sector Banks 227,264 278,468 538,180

NET NPAS:

Nationalised Banks 88,820 122,931 252,741

State Bank Group 41,815 37,278 66,637

Public Sector Banks 130,635 160,208 319,378

Note: Data for 2014 and 2015 taken from RBI: Trends and Progress of Banking in India while Data for 2016 taken from

published Balance Sheets of the Banks.

It could be seen that during the last three yearsthere is huge jump in the NPAs of PSBs and as on March 2016, PSBs are saddled with Non-Performing Assets to the tune of more than `5,38,000 crore. Most of the Public Sector Banks (PSBs) have declared losses during the year 2016. There are several reasons for the deterioration of asset quality of PSBs since 2013.

a) Effect of 2008 World Financial Crisis:

Our economy being part of world economy, has been affected by the slow down caused by the sub-prime crisis in the West. Ever since the demolition ofspecialisedinstitutionslikeIDBIandICICIinthename of creating financial super markets, PSBs

have been forced by the Government in power to finance industrial and infrastructureprojects likemining, roads, power utilities, power generation etc. which have high gestation period while the private sector banks have shrewdly withdrawn from this area foreseeing the problems. A large number of these projects were stuck due to policy paralysis and delay in environment clearances. The net result is bulging NPAs of PSBs for which they have been blamed now.

b) Lack of Appraisal Skills:

The PSBs which were engaged in short and medium term lending were forced to enter into long term projects which have high gestation period without having necessary appraisal skills which the term lending institutions like IDBIand ICICIhad.Thisloophole was taken advantage by the vested interest.

c) Corporate – Political Nexus:

Every Bank is required to frame its credit policy under which the powers are delegated to different levels of authority including Board of Directors for dispensation of credit. A Bank may decide that large advances, say Rs.100 crore and above could be sanctioned only by the Board. All sanctions ofloansaresubjecttoRBIdirectives.Duringthe1990s,RBIcameoutwithadirectionthatthepowerof sanction of loans by the Board could be delegated to a Committee of the Board (called Management Committee) consisting of RBI and MinistryDirectors besides CMD, ED (permanent members) and other non-executive Directors nominated to the Committee on a rotation basis, every six months. Only the minutes of the Committee are placed before the Board and only the members of the Management Committee would be privy to the vital information on the credit sanctioned by the Committee. Whatever NPAs we are talking about in the industry today, most of them are sanctioned at thehighestlevels.Itisanironythatinspitetheregulator,RBIandtheowner,GovernmentofIndia(MoF) having their representatives on the Board and Management Committees, dubious loans (which have become NPA today) were got sanctioned without any questions raised by these watchdogs. This gives credence to the allegation of corporate-political nexus. The suspicion gets strengthened

Through zeal, knowledge is gained; through lack of zeal, knowledge is lost. - Dhammapada

with the clout certain corporate groups enjoy with the establishment. It is well known fact in theindustry that the selection to the posts of CMD and ED are made in an opaque way and it is believed that the candidates who have close connections with these groups get selected (even by relaxing the eligibility criteria). For example, a few years back the Mangalore Head quartered PSB, Corporation Bank was posted with a CMD who was appointed by relaxing the criteria and he had only 13 months of service left! Once the candidates are posted, these groups put pressure on these top executives to return the favours which also has contributed to the NPA mess.

d) Relaxation in RBI Norms:

Over the years, RBI had also dispensed withmandatory obtention of personal guarantee of Promoter Directors which has further helped the unscrupulous corporates to get loans without any fearandaccountability.Duringthe2000s,RBIinorder to cope up with excess liquidity, permitted Banks to sanction short term loans (less than 1 year) to corporates beyond the consortium. This has helped the corporates to avail crores of short term loans at concessional rates from Banks, without any security, many of which today have turned NPAs.

e) Faulty Inspection Mechanism:

The RBI conducts Annual Financial Inspection(AFI) in every Bank and is required to gothrough the accounts that have turned NPAs (fresh delinquencies and early mortality cases). Many banks resorted to unethical practices for postponing the loan accounts being declared NPAs. HowtheseNPAloansskippedRBIinvestigationisa big surprise !

f) Corporate Debt Restructuring:

In thewakeofeconomicslowdown, thecorporatelobby succeeded in getting relief from their accounts being declared NPA in the form of Scheme forCorporateDebtRestructuring(CDR).RBIcamewith guidelines for restructuring corporate loans whichhelpedthebankstopostponetheproblem.Italso helped the corporates to get huge concessions in interest and other charges which if investigated would bring out another scam. Additional fund and non-fund facilities too were extended as a part of restructure. Member banks of a consortium had to lend additional as per the decision of the

Empowered Group monitoring restructure.

g) Asset Quality Review (AQR):

Finding that the NPA problem, instead of containing, isgettingworsened,RBIdirectedtheBankstocleanup their Balance Sheets through AQR mechanism which required the Banks to identify potential NPAs and make provisions before March 2016. The effect of AQR is reflected in the Balance Sheets of theBanks inMarch2016. InPSBs, theNPAsaddedduring the year 2016 were to the tune of more than ` 378,000 crore. But for the AQR, these NPAs would have been rolled over as standard assets by adopting unethical means!

The AQR along with the declarations in the second Gyan Sangam held during 2016 regarding implementation of P J Nayak Committee recommendations and the move towards consolidation of PSBs raises doubts about the genuineness of AQR policy. The timing of the policy adds to the apprehension of the Trade Unions in the industry that these measures are aimed at eventual privatisation of PSBs.

CDR: Potential NPA Time Bomb:

Even after declaring potential NPAs and providing for the same, there are still a large chunk of borrowal accounts which are still under CDR. As at March 2016, there are more than 3,97,000 borrowal accounts involving more than `3,53,000 crores under CDR and other restructure mechanism. How many of these borrowal accounts would turn intoperformingassets isabigquestionmark. Itis nothing but a financial time bomb which willfurther add to the NPA mess.

Corporates’ contribution to NPAs:

The vested interests against PSBs and the privatisation lobby often accuse the Government policy of priority sector lending as a major reason for NPAs in PSBs. But the facts are otherwise. Out of the total NPAs of more than ` 5,38,000 crores as on March 2016, the NPAs under Non-Priority Sector are to the tune of more than ` 372,000 crore constituting nearly 70% of total NPAs. Most of the NPAs belong to corporates who are engaged in infrastructure like road, telecom, power generation and utilities, base metal and alloys etc.

- cont'd in page 27


Officers’ Voice, September 2016Officers’ Voice, September 2016 19

“ I am very happy that you are arranging

this lecture programme in the memory of a

person - Late Sri N Balasubramanian - who

had taken pains to organize, lead and deliver.

It signifies the greatness of that man and

gratefulness you have towards him,” said

Sri N Gopalaswami, former Chief Election Commissioner of India. He was delivering the

15th Balasubramanian Memorial Lecture at

CBOO Centre on 20th August on “Subsidies, Freebies and Cash for Votes – Democracy in Peril?” Appealingly eloquent, he placed before

the audience of more than 300 members of

CBOO, retired Corp Bankers, guests and

invitees, the trajectory of the primary Indian

democratic path – the elections, the practices

followed by the aspirants and their parties

and the threats posed by certain acts in the

process.

We have been living in a democratic set up for

the last nearly 70 years (except a small gap

during 1975-77 when the nation was placed

under Emergency by the then Government).

There is a misnomer that Parliament is

sovereign in a democracy. No. It is the people

who are sovereign who elect the Parliament.

Though literacy was only 3% during Indian

independence, our country introduced full

adult franchise. We never restricted the voting

rights to caste, creed, gender or education.

England gave voting rights for women only

during the 1980s and Switzerland in 1991.

In Australia, Scheduled Tribes had no voting

power till 1967.

From a ballot box for each candidate, to a

single box and now towards Electronic Voting

Machines, Indian democracy has well set its

roots. The Indian Election Commission has

done reasonably and comparatively well in the

process. No doubt, there are problems:

15th BALASUBRAMANIAN MEMORIAL LECTUREBALASUBRAMANIAN FOUNDATION

Invocation by Kum Samanvitha & Nihira

Welcome - Satish Shetty, Gen. Secretary

Welcome with Flowers - B Sridhar, JGS

Floral Welcome to Smt. Rajamma -

Smt. Vanajakshi, ZLS Mangaluru

Officers’ Voice, September 2016

• We have a fragmented polity. Due to this,

even a candidate securing 30% votes gets

elected – though voted by only a minority.

A winning party gets 40.8% of vote share

and a losing party – 39.7% (referring to

recent elections in Tamil Nadu).

• Urban areas vote very less. We criticize

Government/s. But, we don’t go to polling

booths. Only 22% voters turned upto

booths in an area in Mumbai where the

citizens conducted a “Candle Light Protest”

just a few days earlier.

• Politics has been criminalized. Number of

elected representatives in the legislatives

is increasing from election to election.

Booth capturing has not fully stopped

though brought down remarkably. Gun

can be silenced with a gun. But nothing

can be done when it’s money power in

action. People with money only can contest

elections today. Government funding the

elections can prove to solve this issue. A well

thought out process may be implemented

with suitable conditions.

• Election candidates get news coverage on

payment (undeclared). Political parties

themselves own news channels. Gifts to get

the news coverage have become the order

of the day. Marriages, religious functions

are utilized for gifting and maneuvering the

voters. Newer ideas too are explored like

using ambulances for carriage of money,

gift coupons in newspapers, freebies like

TVs, mixies, grinders, lap tops and what

not. The money collected from tax payers is

transferred thus to private hands through

these freebies. It is not fair and healthy

practice in electoral politics. People cannot

expect courts to legislate on this.

To Sri A B Ibrahim, DC - Devaraja BP, JGS

Introducing CBOO - Ekanath Baliga, President

B M Lecture - Sri N Gopalaswami, Former CEC

Vote of Thanks - K B Prasad, JGS

20


• Any serious change in electoral mechanism has got to be approved by the political clan. Nobody will do it. Many amendments are long pending with the legislative. There is lack of transparency in the system. There is zero democracy within most of the political parties. They do not conduct internal elections. They also refuse to get their accounts audited by outsiders.

• Muscle power is another threat to democracy. Political parties are dependent on criminals to carry out their activities. Supreme Court delivered a landmark judgement in which the people’s representatives would lose their seat forthwith in cases of murder and rape charges on them. But the legislative has undone the same through an ordinance within 15 days!

NOTA is a powerful weapon in the hands of the voters. It must be used by the electorate instead of not going to polling booths. Supreme Court allowed this concept in electoral process. At a future date, the Court may decide something beyond, on the basis of NOTA votes. “Eternal Vigilance is the Price of Liberty,” he said.

At the beginning of the programme, Kum.Samanvitha and Kum. Nihira Rao invoked the blessings of the Almighty through prayer. The presence of Smt. Rajamma, wife of Sri Gopalaswami was an added colour to the programme. The Deputy Commissioner of Dakshina Kannada District, Sri A B Ibrahim along with his deputy had also joined the audience to listen to the member of the IAS fraternity – the Chief Guest of the day.

Satish Shetty, General Secretary welcomed the gathering and the guests. He also introduced the main speaker to the audience.

President, Ekanath Baliga gave a brief on the CBOO, the activities of the Balsubramanian Foundation and the annual lecture series.

K B Prasad, Joint General Secretary proposed a Vote of Thanks. Nikith N Shriyan had well compered the programme

A Memento to Remember - A V R Prasad,Sec. Balasubramanian Foundation

The View of the Audience

Nikith Shriyan, Compering

h h

21


DISCIPLINARY WORKSHOP AT MANGALURU

A workshop was held on 23rd and 24th July at CBOO Centre, Mangaluru; 50 functionaries and activists from Southern States participated in the two - day training programme on handling disciplinary matters.

Inaugurating the programme, President, Ekanath Baliga explained the purpose of the programme and called upon the participants to make good use of the sessions. He requested them to help the colleagues in distress by drafting suitable replies to letters of explanation etc. and also defend the Charge Sheeted Officers. The success rate of the earlier training programmes had not been very encouraging as very few trainees translate their training inputs into action. He wished this would be reversed by the present batch.

General Secretary, Satish Shetty explained to the participants that extending defence assistance to the needy would increase and improve the knowledge level of the Assisting Officers. The AOs have to play the role of a well-wisher and utilize their knowledge, writing skills for helping the members in need. There is a knowledge gap in general at our side as also the management side. CBOO’s effort is to equip our functionaries/activists on skills to extend effective defence assistance.

Addressing the participants, Sri T R Bhat, former Chairman of CBOO suggested them to learn the basics of the disciplinary proceedings. Ignorance of law is not an excuse. The knowledge disseminated in the workshop would help the functionaries/participants to face certain difficult situations with ease. At times, the Assisting Officers may not be able to save the colleague; it must be taken in good stead.There is a common perception in the personnel administration in our Bank that once the Charge Sheet is issued, the officer is guilty and punishment would definitely befall. We need to dispel this mindset he said.

Former President, Sri D N Prakash explained

Welcoming the Participents - K B Prasad, JGS

Introductory - AVR Prasad Sec. BFET

Inaugural Address - Ekanath Baliga, President

Address by Gen Secretary - Satish Shetty

22


the need to conduct such training programmes

as a part of the on-going efforts of CBOO in

keeping a team of functionaries ready at all

times in extending assistance to the needy

officers. He also reiterated to conduct such

programmes in other parts of the country to

develop local talents. He wished the programme

a success.

K B Prasada, Joint General Secretary

welcomed the participants and the guests

in the beginning. A V Ramanaprasad, Secretary, Balasubramanian Foundation for

Education and Training gave an introductory

to the programme held under the aegis of the

Foundation.

Various sessions were held relating to the

disciplinary gamut. The faculty support was

extended by G Raghuraman, Vice President

(Conduct Regulations), Sri D N Prakash, Former

President (Discipline & Appeal Regulations,

Punishments and its Implications), Ekanath

Baliga, President (Important Aspects of Drafting

and Suspension), P V B N Murthy, CVO,

Corporation Bank (CVC Guidelines), Satish

Shetty, General Secretary (Practical Drafting,

Important Aspects of Enquiry and Examination/

Cross – Examination) and Sri T R Bhat, Former

Chairman (Principles of Natural Justice). A

Mock Enquiry too was staged to give an idea of

the Enquiry Proceedings.

An interactive session was held at the end,

enabling the participants to give a feedback

on the two days’ proceedings. The participants

also raised several issues related with discipline

which were replied by the office-bearers.

B Sridhar and P V Premanandan, Joint General Secretaries coordinated the sessions.

the programme a success.Other Central

Office-bearers too were present extending the

supportive roles.

The programme concluded with National

Anthem.

By Sri T R Bhat, Former Chairman

By Sri D N Prakesh, Former President

By G Raghuraman, Vice President

The Participents

23


CBROA 21st FOundAtiOn dAy CeleBRAtiOns

The 21st Foundation Day functionof CBROA

was held at CBOO Centre, Mangalore on 27th

July. Due to the non availability of Bank’s MD,

ED and GM, PAD, on account of the Board

meeting in New Delhi, Sri S K Mehta, Deputy

General Manager, Personnel Administration

Division attended on their behalf. Sri Ekanath

Baliga, President, Corporation Bank Officers’

Organisation (CBOO) was the Chief Guest.

The meeting started with soulful prayer

rendered by Sri B. Pundalika Kamath.

Sri U N Chandramohan, General Secretary,

CBROA, welcomed the guests, Central

Committee Members, general members and

their spouses present at the meeting.

Sri S K Mehta, DGM, PAD, HO and Guest

of Honour delivered his address. He felt

lucky to be at this august gathering, in the

absence of top leadership of the Bank due to

unavoidable circumstances. He dealt with the

excellent relationship, CBROA had with the

Bank Management and wished that CBROA

should move from strength to strength, like

the Corporate journey. He informed that

Pension Payment Order (PPO) card was ready

and should reach all the retirees eligible for

pension in about 3 weeks’ time. He said that the

Management of the Bank was holding regular

meetings with representatives of CBROA and

most of the unresolved issues are ironed out

at such meetings. He assured that he and

his team at PAD could always be contacted

for any help required by retired officers.

He appreciated intervention by CBROA in

updating life certificate and other issues. Mr.

Mehta confirmed that the demand by CBROA

to make available holiday homes

Welcome Address - U N Chandramohan,Gen Sec. CBROA

Address by Guest of Honour - Sri S K Mehta, DGM

Address by Chief Guest -Ekanath Baliga,

President CBOO

Presidential Address - U Suresh Shenoy

24


to retirees without any restrictions including

during peak period was being examined and

would be resolved soon.

Sri Ekanath Baliga, President, CBOO

addressing the gathering, dealt at length, the

present problems faced by the Bank – viz., Lower

Business growth, Large increase in NPAs, Lack

of experience, skill and knowledge at various

levels in the Bank etc. He also explained the

developments at IBA level on issues relating

to pensioners etc. He further gave a call for

increased and coordinated efforts by both

CBOO and CBROA. He highlighted various

steps taken by CBOO, in helping CBROA –

both in terms of increasing membership and

resolving pending issues. He also offered to give

adequate space in Officers’ Voice to highlight

issues of Retirees, if CBROA could contribute

articles to it on monthly basis.

This was followed by Presidential address

by Sri U Suresh Shenoy. The President

highlighted various steps taken to improve

membership over the years. He also thanked

the Bank Management for regularly holding

meetings with CBROA and sorting out various

pending issues. He highlighted outcome of

various meetings held in different centers and

hoped to continue this trend in the current

year as well. He informed the audience about

donating almirahs to three schools in Andhra

Pradesh and a water purifier & wall clock to a

school at Haladi in Udupi Dist, totally costing

Rs.35590/-. He appealed to all members to

contribute liberally to Chaitanya Scheme and

CBROA General Fund to strengthen its financial

position and to take up newer initiatives. He

also thanked all members for their continued

support in membership development and other

activities of CBROA.

Sri Ramanath Kini, a member from Mangalore

announced that in association with Thyrocare,

Mangalore, he would sponsor 50 members for

medical check - up, covering about 59 tests at

a nominal cost of Rs.250/= (as against normal

rate of Rs.650/=, the difference being borne by

Mr. Kini) on 10th August 2016 at Mangalore.

Sri Kishore Shanbhogue, Deputy General Secretary, proposed vote of thanks. Sri S Devadas Pai, was the Master of the Ceremony

for the function.

The Veterans of Corp Bank

25


FROM KADRI – MANJUNATH TO BHOLE AMARNATH – CORPBANKER’S ODYSSEY ON 2-WHEELER

Ramkishore, a valiant from Delhi, commenced his journey from Mangalore to Amarnath on a two-wheeler on 23rd June at 10.30 A.M. The Managing Director and CEO of Corporation Bank, Sri Jai Kumar Garg and Executive Director Sri Sunil Mehta flagged off the 6900 K.M. journey. Scores of employees of the Bank working at Head Office had gathered in front of the Millennium Building of the Bank in a bid to see off the brave Corpbanker from Delhi. Earlier in the day, Sri Ramkishore visited the ancient Kadri Manjunath Temple along with his new vehicle.

Ramkishore is a man with a mission. He rode a Mahindra Gusto Scooter from Manjunath’s Holy Land of Mangalore to Bholenath’s Holy Shrine of Amarnath. He travelled from Mangalore to Bangalore and moved towards Hubli, Poona, Mumbai, Surat, Vadodara, Ahmedabad, Udaipur, Ajmer, Jaipur, Delhi (a short break in journey), Chandigarh, Ludhiana, Pathankot, Jammu, Srinagar and Baltal. The journey from Baltal to Amarnath (16 K.M.) was by walk. A good number of Corp Bankers and CBOO functionaries had joined and welcomed Sri Ramkishore at the above centres as a mark of support and goodwill.The onward journey concluded at Amarnath on 8th of July and return journey at Delhi on 14th.

Every year since 2003 he has been going to Amarnath by scooter. He has been aiming at popularizing Amarnath Yatra and moving places enroute to signify the unity and cohesiveness of the countrymen. Spreading the name of Corporation Bank alongside the journey is another mission of this valiant. A father of 6 ( 5 girls and 1 boy), he also wants to spread the messages of the Prime Minister – a. BetiBachaavo; Beti padaavo and b. Swachch

Bharat. A wide coverage was given by the local

print media on 23rd June.

Sri Ramkishore was born to the proud parents

- Late Sri Ramanand and Smt. Sharada (72) on

15th August, 1965. His wife, Smt. Anuradha is

a home-maker. Sri Ramkishore, 51, hails from

Delhi. He works in Corporation Bank, Service

Branch, New Delhi. He had joined Corporation

Bank as a temporary sub-staff in December,

1982. His service as a full time employee of the

Bank started in February, 1985 and he was

promoted as a clerk in April, 1995.

CBOO is proud of this Corp Banker who has

been spreading the name and fame of the

Bank silently across the country, in his own

way. While wishing him good health and a

satisfying living ahead, we pray Almighty to

bestow all good things on his family.

Flaging off - MD and ED

Sri Ramkishore on his journey

26


Recovery of NPAs - Kingfisher Effect:

The actions taken to recover the money from Kingfisher have created ripples in the corporatesector and will have a lasting effect if the judiciary of the country, the only hope for the people, has its way. Thanks to the media which is active, the masses in the country have come to know about the private loot of public resources through its nexus with the powers. The judiciary has proved that none is above law through its demonstrative actions against Mr. Subroto Roy (Sahara Group Chairman) for defaulting repayment of deposits to the depositors andnowtheKingfisherCMD,Mr. Vijay Mallya.Itishoped that these demonstrative actions will help the PSBs in their efforts to recover NPAs.

What the Government shall do?

There is no doubt that the NPAs are a major stumbling block in the growth of PSBs and the need of the hour is recovery of these loans through all means. While there is a need to strengthen the appraisal skills and recovery mechanism at the level of PSBs, there are several measures which the Government could do. The Government shall take the following steps to help the recovery of public money and help the banking industry:

1. Strengthen recovery mechanism like DRT and SARFESI by giving teeth to the laws and make recovery process faster and less time consuming.

2. Conduct forensic audit of all NPAs which are say, more than Rs.500 crore and punish

those responsible for throwing public money into the hands of Money Launderers and cheats

3. Amend IPC to make wilful default a cognizable offence with stern punishment

4. Amend Banking Secrecy Law enabling publishing the name of wilful defaulters

5. Bar the promoters and full time Directors of companies (which are wilful defaulters) from holding public offices.

6. Adopt a policy to recover the concessions extended to corporates under CDR and other restructuring, once the company starts making profits.

It isheartening tonote that theGovernmenthastaken a few steps to strengthen recovery mechanism by amending laws regarding DRT and insolvency. Governments’ efforts along with continued media attention and judicial scrutiny will help the Banks to recover the public money from these corporates who have manipulated the entire system to loot the public resources for feathering their private interests.

Hope the Government would continue its resolve through its actions in the days ahead and help the PSBs to continue its journey in support of the growth of the nation.

[Author is former Vice President of All India Bank Officers’ Confederation (AIBOC) and former President of Corporation Bank Officers’ Organisation (CBOO). He can be contacted at '[email protected]']

Take up an idea; make that idea your life; think of it; dream of it; live on it. - Swami Vivekananda

letter tO editOr

NEEd Of ThE hOur - TO ThiNk ‘OuT Of ThE BOx’

With the news of mergers/consolidation constantly in the news like the dust in the air in a polluted place and the speculation in the media ripe with formulae as to who would take over whom, there is anxiety, despair and a sense of despondency everywhere. Our Bank is no exception.

The other prominent news item is the health of various Banks - both among PSBs and banks in the Private Sector. With the stressed assets increasing

leapsandbounds,banksfinditdifficulttoimprovethe bottom line. The pundits in the business and the agencies attribute the scenario in the Banking Industrytotheeconomicslowdown.

With the Government sending signals of accelerating the so called reforms with opening up the Banking Sector, refusing to be magnanimous in infusing the capital which is being stipulated to comply with the BASELIIInorms,theRBI’sefforttocleanupthe

-cont'd from page 18


Balance Sheets with a self-professed AQR policy, the Banks are finding it tough to breathe. Theambiguous and greedy thrust given to the lending for the infrastructure sector by the PSB’s in an effort to increase the size of the Balance Sheet in the past, probably to outwit the much touted take over by giants amongst the PSB’s and being constantly pushed by the Government, can be equated to a caseofeatingmorethanonecanchew.InourBankwhile the aforesaid reasons could be primary, the legacies of the immediate past are making it further difficultastheBankhadtodeclarelossforthefirsttime in an otherwise cherished history spanning 110 years.

Well; a critical analysis would throw many reasons for the aforesaid performance and one wonders as towhethertheBankhasaspecificandwellplannedapproach to overcome the present difficultiesand various factors attributing to it. It may benecessary to critically dissect and analyse as to the causes/reasons for the debacle. There is also a need to draw a road map to take the Bank out of the woods with a concrete plan of action wherein all the stake holders are made to involve themselves whole-heartedly and emotionally as well. But all thesethingshavetohappenwithinadefinitetimeframe; else it could be a case of free fall and that too quickly. Considerable damage has already been done.Itisbetterlatethannever.

It would be easy for everyone to appreciate thatthese situations do not have a readymade/tailor made solutions. One may have to probably think out of the box and motivate the employees into execution of such ideas. There is a need for a visible and vocal leadership. Having moved away from a regime of abuses which indulged in trespassing the basic humanitarian considerations and decency and a beginning of a resultant downfall, there is relief everywhere in the Bank now as an atmosphere of tranquility prevails.

But the important point is, complacency and lull would make the workforce drift away in the absence of concrete directions which would make everyone to understand the need of the hour and thestrategytobeadopted.Inotherwords,aplan,

People will always throw stones in the path of your success. It depends on you – what you make from them – a wall or a bridge.

communication, direction and follow up of the execution of the direction only would produce the desired results, if we really want to “ACHIEVE” or “REACH”. More so in the case of a PSB like ours where we have been used to a system of receiving a direction from the Top Management and acting onthesame.Itisunderstandablethatpastmicromanagement has taken away the ability at various levels of the Bank to take decisions. But a judicious mix of macro/micro-management presently would ensure theexecutionof theplansof theBank. Itmust be appreciated that the target fixation wasdone through a bottom - up approach this year in comparison to the yester years where it was being driven down from the top.

Thus the immediate requirement for achieving the business needs of the Bank namely:

a.IncreasingtheCASA

b. Recovery and containing of NPAs

c. Ensuring an all-round quality growth in Advances

- could possibly be done by adopting the following steps which are illustrative in nature.

1. Restorethemonthlycommunicationtothefieldwith a clear direction as to what Bank needs, plansandwantsthefieldtodo/execute.Thatshould spell out the strategy as well. The Top Management has to work in tandem with the various departments understanding their roles independently and complementary to each other.

2. Deviate from the formed opinion of moving the work force at all levels criss-cross and instead, use the available talents at their or nearest places (not necessarily, the home town)assigninganddemandingaspecificrole.Major centres of a Zone which contribute to the growth of the Zone need to necessarily be manned by a workforce that would not have the linguistic constraints/blocked mindsets. The specialists could be used appropriately.

These measures are required now as extraordinary situation requires decisions which are not necessarily complying the self- imposed guidelines


or practice of ‘status-quo-ists’.

3. Inthe recent times, the Recovery Division at HO hasbeenmadeheavywithhigherlevelofficersinducted into the team. Management needs to ensure such teams are formed at Zonal/Circle level with a direction to support critical and large stressed- asset -branches.

4. As the NPA ratios would get altered, if the denominator namely the advances go up, the credit specialists need to be used appropriately and at the centres where there is a demand/potential.

5. Improvetheconfidencelevelsoftheworkforcein the promotion and transfer process of the Bank. Make the disciplinary mechanisms more transparent, objective and fair devoid of ‘personal’ element. The empowerment of the Zonal Offices/Circle Offices should leadto the issues being viewed professionally, objectively and not egoistically, subjectively

Failure is not a loss; it’s a gain. You learn, you change and you grow.

and self-righteously. The award and reward mechanisms should be restored.

6. A realistic, scientific and progressiveassessment of manpower, not intended at identifying surplus; but assessing needs based on business potential and support to growth needs to be evolved.

All these would be possible only when the Management believes in more and realistic collaborative approach and involve all the stake holders in the process of recovery and restoration of pride of the Bank.

Whether the Management has the insatiable appetite to ensure that the BANK retains its identity?

Whether the Management has the daunting willpower to motivate the workforce?

Then we can rewrite the history of the Bank.

- A MEMBER

Bank-wise Capital Infusion (` Cr)

Banks Name 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

StateBankofIndia 7,900 3,004 2,000 2,970 5,393 7,575Bank of Baroda - 850 550 1260 1786 -Punjab National Bank 655 1,248 500 870 1,732 2,816Canara Bank - - 500 570 947 997Syndicate Bank - - 200 460 - 1,034Allahabad Bank - - 400 320 283 44IndianBank - - - 280 - -Dena Bank - - 700 140 407 594Andhra Bank - - 200 120 378 -BankofIndia - 809 1,000 - 2,455 1,784Bank of Maharastra 470 406 800 - 394 -CentralBankofIndia 676 2,406 1,800 - - 1729Corporation Bank - 204 450 - 857 677IndianOverseasBank 1,441 1,000 1,200 - 2,009 3,101Oriental Bank of Commerce - - 150 - - - Punjab and Sind Bank - 140 100 - - -UCO Bank 48 681 200 - - 1,033UnionBankofIndia - 1,114 500 - 1,080 721UnitedBankofIndia - 100 700 - - 810Vijaya Bank - - 250 - - -Bharatiya Mahila Bank - - 1,000 - - -IDBIBank 810 555 1,800 - 2,229 -

Total 12,000 12,517 15,000 6,990 19,950 22,915

Source data.gov.in ; Based on a query raised in Lok Sabha in Feb. 2016


A. SUPERANNUATION RETIREMENTS

The following members will be retiring from the services of the Bank on attaining the age of superannuation on 30th September, 2016:

1. Mr. Rajiv Kumar, Assistant General Manager, Circle Audit Office-New Delhi

Sri Rajiv joined the Bank as a Clerk in December, 1977. He was promoted to Officer cadreJMG Scale I in August, 1983.He became Manager in MMG Scale II in March, 1993 andSeniorMangerScaleIII inJuly,1998.HebecameChiefManagerinSMGScaleIVinJune,2005andAssistant General Manager in Scale V in March, 2010.

During 39 years of service, he worked at Delhi-Chandni Chowk, Allahabad, New Delhi-Zonal Office,I.A.DCell,Jinar,Phagwara,Panchkula,NewDelhi-Tilaknagar, Vasant Kunj, Tilaknagar Housing Finance, Jaipur, New Delhi-Lodhi Complex, Mumbai-Retail Hub and New Delhi-Connaught Circus.

2. Mr. Naveen Kumar S, Chief Manager, Elamakkara (Kochi Zone)

Sri Naveen joined the Bank as a Clerk in November, 1977. He was promoted toOfficer cadre in JMGScaleIinAugust,1983.HebecameManagerinMMGScaleIIinMarch,1993. He was elevated as Senior Manager in Scale III in October, 2001 and Chief Manager in SMGScaleIVinMarch,2010.

During 39 years of service, he worked at Mumbai-Service, Fort, Nariman Point, Zonal- Office,Bandra, C.F.E.D, International Banking Division,Doopadakatte, Kollad, Pune Caps, New Delhi-Caps, ZonalOffice-Kerala,Kochi,Alappuzha,Coimbatore-ZO Mktg Ret. Sales and Navasari.

3. Mr. Madhava Rao M, Assistant Manager, Compliance Division, Head Office

Sri Rao joined the Bank as a Clerk in May, 1978. He was promoted to Officer cadre JMG Scale I inNovember, 1983.

During 38 years of service, he worked at Mangalore-Staff Training College, Punja Arcade, HO-InvestmentDepartment,Gulbarga,Kasaragod,Kanhangad, Thiruvanathapuram, Ahmedabad-Navarangapur, Shahibaug Cross Road, Mangalore-Padavu, H.O. Publicity & Public Relations, C.A.P.S. Division and Banavase.

4. Mr. Alok Kumar Gupta, Deputy General Manager, KYC/AML, Head Office

Sri Gupta joined the Bank as Officer in JMG Scale I inOctober, 1978. He was promoted as Manager in MMG Scale II inDecember, 1983 and as Senior Manager in Scale IIIinFebruary,1993.HebecameChiefManagerinSMGScaleIVinJune,1998andAssistantGeneralManager in Scale V in December, 2003. He was elevated as Deputy General Manager in TEG Scale VIinMay,2010.

During 38 years of service he worked at Delhi-Chandni Chowk, Chandigarh, Gwalior, Gorakhpur, Ghaziabad, Cambay, Lucknow, New Delhi-Regional Office,HO-CustomerServiceDivision,Organisation&MethodsDepartment,ZonalOffice-DelhiNorth,Palam, Zonal Office-Greater Mumbai, GreaterMumbai - ZO MKTG Ret. Sales, Delhi-Zonal Audit OfficeandZonalOffice,Lucknow.

5. Mr. Jayarama Nayak, Manager, Mangalore-Service, Zonal Office Mangalore

Sri Nayak joined the Bank as a Clerk in February, 1979. He waspromotedtoOfficercadreinJMGScaleIinJuly,1984andhebecame Manager in MMG Scale IIinNovember,1997.

Your pain may give laugh to somebody; but your laugh shall not give pain to anybody.

retiremeNts

During 37 years of service he worked at New Delhi-Connaught Circus, Jaipur, Udupi, H.O. - Printing & Stationery Division, Business Planning & Dev. Department, Recovery Division, Personal Banking Division, Kushal Nagara, Mysore-Main, H.O. - Inspection & Audit Division, Mumbai-Borivili,H.O. - PAD (Award Staff Wing), Anti-Fraud Section, Vigilance Division and K Y C & A M L Cell.

6. Mr. Venkateswaran A, Assistant General Manager, Zonal Office-Lucknow

Sri Venkateswaran joined the Bank as a Clerk in May, 1979. Hewas promoted toOfficer cadrein JMGScale I in July, 1984.Hebecame Manager in MMG Scale II in February, 2001 and SeniorManager Scale III in October, 2006. He becameChiefManagerinSMGScaleIVinFebruary,2012and Assistant General Manager in Scale V in June, 2014.

During 37 years of service, he worked at Mapuca, Camorlim, Poothotta, HO-PPM & Branch Expansion Department, Nagpur, Kochi, Pandanad, Kottayam, Arattu Puzha, Chengannur, Navasari-Luncikui, CherukoleandZonalOffice-Vijayawada.

7. Mr. G Panduranga Nayak Assistant Manager, Udupi Curency Chest (Udupi Zone)

Sri Nayak joined the Bank in January, 1980 as a Typist cum Clerk.HewaspromotedtoOfficercadre, JMG Scale I in August,1984.

During 36 years of service, he worked at Branch Accounts Department H.O, New Delhi-Zonal Office, Bhikaji Cama Place,Bangalore-Regional Office, Jayanagar, Alevoor,Heradi, Recovery Division, H.O and Santhekatte-Kallianpur.

8. Mr. (Dr) Kurian P Abraham, General Manager, Head Office

Sri Abraham joined the Bank as Veterinary Officer in ScaleI in September, 1980. He waspromoted as Manager in MMG Scale II in April, 1984 and asSenior Manager in Scale III in

August, 1994. He became Chief Manager in SMG ScaleIVinJuly,1999.HewaselevatedasAssistantGeneral Manager, Scale V in May, 2004 and Deputy GeneralManagerinTEGScaleVIinMay,2009.Hebecame General Manager in Scale VII in October,2015.

During 36 years of service, he worked at Mangalore-Staff Training College, Kochi-Regional Office, Pandanad, Painguinim, Elamakkara,Thiruvananthapuram, Mumbai-Colaba, Borivili, Kalbadevi (CBB), New Delhi-Overseas, Delhi-Kamala Nagar, Connaught Circus, HO-Govt. Busi. & Bancassurance, Bangalore-Nrupathunga Road andZonalOffice-Kerala.

9. Mr. S Kumaraswamy, Assistant Manager, Mysore-Siddhartha Layout (Mysore Zone)

Sri Kumaraswamy joined the Bank as a Clerk in August, 1981. He was promoted toOfficer cadre in JMGScaleIinNovember,1997.

During 35 years of service, he worked at Mangalore-Car Street, Mysore-Main, Mandya, Mysore Siddhartha Layout, Bangalore-S.C. Road, Pune, LIC Hub, Periapatna, Mangalaand Chikmagalur.

10. Mr. Kartikeswar Rout, Chief Manager, New Delhi-Connaught (Delhi - North)

Sri Rout joined the Bank as a Clerk in August, 1981. He was promoted to Officer cadre in JMG ScaleI in October, 1988. He becameManagerinMMGScaleIIinOctober,1998.HewaselevatedasSeniorMangerinScaleIIIinNovember,2005 and as Chief Manager in SMG Scale IV inFebruary, 2012.

During 35 years of service, he worked at Cuttack, New Delhi-Connaught Circus, Jamshedpur-Godown Area, Ranchi, Chapora, Rourkela, Cambay, NangloiJatandCircleOffice-NewDelhi.

11. Mr. Anil Kumar Sharma, Assistant Manager, Gurgaon-Currency Chest, (Delhi-South)

Sri Sharma joined the Bank as a Clerk in April, 1982. He became a Special Assistant in June, 1999.HewaspromotedasOfficerinJMGScaleIinSeptember, 2007.



During34 years of service, heworked at Indore,Gwalior, Bhopal-Main, M.P. Nagar, Gwalior-Bima Marg,ZonalOffice-DelhiNorth,NewDelhi-Service,Delhi-Co-Branded LIC Credit Card and Gurgon-Currency Chest.

12. Mr. Davinder Kumar Gandhi, Manager, New Delhi Friends Colony (Delhi - South)

Sri Gandhi joined the Bank as a Clerk in August, 1982. He became a Special Assistant in June, 1999. He was promoted as Officer inJMGScaleIinApril,2008andasMangerinMMGScaleIIinMay,2015.

During 34 years of service, he worked at New Delhi-Greater Kailash, Connaught Circus, Sikanderpur, Noida-Sector 62 and New Delhi-Bhikaji Cama Place.

13. Mr. Gopal Naik A, Assistant Manager, Pandeswar-Sasthan (Udupi Zone)

Sri Naik joined the Bank as a Clerk in January, 1985. He was promoted as Probtionary OfficerinJMGScaleIinFebruary,2001.

During 31 years of service, he worked at Vaderahobali, Manipal, Karkala, Kotturu, Kozhikode and Udupi.

14. Mr. Vishlavath Venkat Ram, Senior Manager, Hyderabad-Personal Banking (Hyderabad Zone)

SriRamjoinedtheBankasOfficerinJMGScaleIinJanuary,1985.He was promoted as Manager in MMGScale II inJuly,2004andasSeniorManagerinScaleIIIinAugust,2012.

During 31 years of service, he worked at Thyavanige, Hyderabad-Hyderguda, Kolkata-Brabourne Road, Secunderabad-S.P. Road & M.G. Road, Kolkata-Dharamtolla, Hyderabad-Service, New Delhi-Karol Bagh, New Delhi-Currency Chest and Hyderabad-Currency Chest.

15. Mr. Mahesh Chandra, Assistant Manager, New Delhi Service (Zonal Office Delhi)

Sri Chandra joined the Bank as a Clerk in January, 1985 and he was promotedasOfficerinJMGScaleIin April, 2008.

During 31 years of service, he worked at New Delhi-

Zonal Office, Greater Kailash, Chandni Chowk,

Service, Connaught Circus, Aligarh, Bulandshehar

and Saharanpur-Currency Chest.

16. Ms. Dakkili Vijayakumari, Assistant Manager, Hyderabad Micro Finance (Hyderabad Zone)

Ms Vijayakumari joined the Bank

as a Clerk in September, 1985. She

was promoted as Assistant Manager

inJMGScaleIinSeptember,2012.

During 31 years of service, she worked at

Chittoor,Shankerpalli,Hyderabad-RegionalOffice,

Siddiamber Bazar, Badi Chowdi, Dilsukh Nagar

and Personal Banking branch.

17. Kashi Prasad Kashyap, Deputy General Manager, HRD and Training Division, Head Office

Sri Kashyap joined the Bank as

AFO in Scale I in June, 1986.

He was promoted as Manager in

MMGScale II in July, 1996and

asSeniorManagerinScaleIIIinOctober,2001.He

becameChiefManagerinSMGScaleIVinFebruary,

2007 and Assistant General Manager in Scale V in

June, 2010. He was elevated as Deputy General

ManagerinTEGScaleVIinJanuary,2016.

During 30 years of service, he worked at Alleppey,

Ongole, Adoni, Regional Office-Northern Region

I, Zonal Office-Lucknow, Zonal Office-Greater

Mumbai, Information Technology Division

H.O., Mumbai-Service, Bangalore-Core Centre,

Chairman’s Secretariat H.O., Mumbai-Bandra and

E-Business Division H.O.

Be a possibililitarian. No matter how dark things seem to be or actually are, raise your sights and see the possibilities. – S Chander


Sri Kashyap served the 13th EC as its member being the Regional Secretary of Delhi Region from June, 1996 (part of the term) and later the 14th EC as Organising Secretary (1998-2001).

B. VOLUNTARY RETIREMENTS

The following members retired from the Bank

voluntarily under Regulation 29 of Pension

Regulations during July, 2016:

1. Smt. S Saraswathi, Assistant Manager, S C Road, Bangalore

Smt. Saraswathi joined the Bank

as a Clerk in July, 1983. She was

promotedasOfficerinJMGScaleI

in April, 2016.

During 33 years of service

she worked in Kushala Nagar, Bangalore – S C

Road, Chamarajpet, Srinagar, Uttarahalli and

Banashankari.

2. Smt. B. Mohambal, Assistant Manager, Chennai – Mogappair

Smt. B. Mohambal joined the Bank

in June, 1993 as a Stenographer.

ShewaspromotedasanOfficerin

JMGScaleIinMarch,2002.

During 23 years of service,

she worked at Mumbai – Regional Office, IFB,

Shivajipark, Overseas, Ghatkoper (W) and Mulund.

3. Smt. Neeta Venkatesh Iyengar, Assistant Manager, Thurbe - Vashi

Smt. B. Neeta joined the Bank in

February, 1986 as a Typist cum Clerk.

She was promoted as an Officer in

JMGScaleIinApril,2011.

During 23 years of service, she worked at Mumbai

–ZonalOffice,Thurbe-Vashi,Mumbai–Wadala,

Chembur, Nerul, Mumbai – A R Street and Panvel.

CBOO thanks all these members for their support and cooperation and wishes them a healthy, happy and contended retired life.

kYC, AAdhAAr ANd ‘rBi rulES’- Sucheta Dalal

Itistimetocomeoutandsayitopenly.Dr.RaghuramRajan’s tenure has been a big disappointment when it comes to consumer services of banks. Indeed,theReserveBankofIndia(RBI)framedawonderfulconsumer charter during his tenure; but that was in August 2014. The charter that mandated banks to treat consumers fairly remains toothless, since RBIgavethemuntilJuly2016toframetheirownrules and self-punishment (if any) for lapses and failures.Itismid-July,asIwritethispieceandwehave yet to see any bank announce a comprehensive consumerpolicyforitscustomers.Instead,herearetwo separate episodes of 13th July that illustrate howRBI,whichoverseeshowbanksbehave,hasnotruck with the everyday frustrations of customers.

Senior journalist Siddharth Bhatia, who does not normally write on banking or business, was moved to writing a column in The Economic Times about how a simple change in address by a couple, turned traumatic because of thoughtless know your customer (KYC) rules specified by RBI. The rule-makers have failed to apply simple logic to their requirements; that regular KYC documents such as an Aadhaar card, passport, driving licence, etc. are redundant as address proof when you move into a new rented flat. The couple submitted a bulky,duly registered and self-attested rent agreement. After much humming and hawing, the husband’s account became operational. The wife’s account was in a limbo. On enquiry, the couple discovered that archaic‘RBIrules’apparentlyrequiredhermarriagecertificatetobesubmitted,althoughshe,aworkingwoman, was a signatory to the rent agreement and had a job and the bank account for 13 years.

The bank was adamant that the change of address would not be affected without the marriage certificate. IfonlyRBIhadsuch iron-cladrulestoprevent loans leeching into the personal coffers of our industrialists! Also, is this how the Government plans to make it easier to rent property, or is it that one arm of Government has no clue about the red tape created by another? A third point that Mr.Bhatia makes in his article is how the bank,

To handle yourself, use your head; to handle others, use your heart. – The English Digest

which was adamant about KYC documents, didn’t miss an opportunity to hustle the couple for an insurancepolicy.Isn’titsafetobetthatmis-sellingof insurance to earn commission income remains rampantlongafterRBIdraftedaconsumercharter?

On the same day, Shailesh Gandhi, former Central InformationCommissioner,toldusthathevisitedHDFC Bank in response to a letter to update his KYC,althoughhehadnochangetoreport—itwasmandatedby‘RBIrules’.HehadcarriedhisAadhaarcard as an identity proof, which the bank tried to validate on its machine, but it simply would not recognise his thumbprint, despite repeated efforts. SinceMr.Gandhihadmultipleidentificationproofs,it did not matter. What was significant, though,is that theHDFCBank official told him that thefailure to validate thumbprints was fairly routine! He proudly informed Mr. Gandhi, that the machine fortunatelyrecognisedhisownfingerprints.

When you consider that Aadhaar is virtually the only identity proof for Jan Dhan accounts, we wonder when we will start to hear more stories about validation problems. What about all other GovernmentbenefitsandserviceswhereAadhaarhas been mandated? Does anyone bother tovalidate theAadhaarnumber?Howwell isonlineauthenticationwiththeUniqueIdentityAuthorityofIndia(UIDAI)working?Nobodyreallyknows.

A third case is that of Captain Ashok Malkani, trustee of Citizens Action Network. A ‘Diamond’ customer ofBankofIndiawithanaccountfor40years,heis being given the run-around since February on account of its ATM that not only failed to dispense money, but debited his account twice (Rs15,000x2) since he made two attempts at withdrawal. The Bank claims that the money has actually gone out of its accounts, but won’t produce the videotapes

that would show that it was dispensed to Captain MalkanibytheATM.‘RBIrules’requireabanktoreimburse a customer within 12 days when his accountiswronglydebited,orpayafineofRs.100per day. But what happens when the bank falsely claims that the money has been debited from its booksandwon’tproduceanyevidence?Arethereno consequences for Bank of India for treating acustomersoshabbily?

Captain Malkani’s case is especially shocking because he is connected with two well-known consumer activists. Even the Mumbai Grahak Panchayat has similar complaints about Public Sector Banks refusing claims of faulty ATMs that fail to dispense cash after debiting customer accounts. Forget about fair treatment or compensation to consumers, the bank is not even under pressure to provide proof. Readers may recall a recent columnwhereSSMundra,RBI’sDeputyGovernor,had talked about issuing regulatory directions to limit customer liability for electronic banking transactions and credit card fraud. Mr. Mundra pointed out that its survey of 4,000 bank ATMs across the country revealed that 1/3rd of them were not working at that point of time. How many of these ATMs that work are harassing customers byfailingtodispensecash?WhatdoesRBIplantodoaboutthem?

WhileRBIrefusestoactevenundertheleadershipof a ‘rockstar’ Governor, banks are complacent and continue to hike charges for consumer services withoutworry.Meanwhile,RBI’sfoot-draggingoverlicensing new banks ensures that customers have no real option even if they want to vote with their feet and switch to another bank.

- Moneylife, 18/06/2016


All YOu wANT TO kNOw ABOuT P-NOTES

Class rOOm

InvestmentsintodomesticcapitalmarketsthroughP-Notes slumped to the lowest level in nearly two years to Rs 2.10 lakh crore at the end of June, after SEBItighteneddisclosurenormsandotherrelatedregulations.

1. What are P-Notes?

P-Notes or Participatory Notes are Overseas DerivativeInstrumentsthathaveIndianstocksas

their underlying assets. They allow foreign investors tobuystocks listedon Indianexchangeswithoutbeing registered. The instrument gained popularity asFIIs, toavoid the formalitiesof registeringandto remain anonymous, started betting on stocks through this route.

2. What are Govt. & regulator’s concerns?

The primary reason why P-notes are worrying is


because of the anonymous nature of the instrument as these investors could be beyond the reach of Indian regulators. Further there is a view that itis being used in money laundering with wealthy Indians,likethepromotersofcompanies,usingittobring back unaccounted funds and to manipulate their stock prices.

3. What has SEBI done to regulate P-Notes?

SEBIhastakenanumberofstepstotightenruleson P-notes. In 2007, P-Notes were banned for awhile due to a surge in capital flows and excessliquidity. After this, markets crashed immediately; but recovered after the regulator said FIIs couldnot take any fresh exposure and their existing investments would have to be wound up in 18 months. But a year later, all restrictions on P-notes were removed during the financial crisis, only tobetightenedagainlater.FromJanuary2011,FIIshave had to follow KYC norms and submit details of transactions. In 2014, new rules on ForeignPortfolio Investors (FPIs) made it mandatory forthose issuing P-Notes to submit a monthly report disclosing in the number of entities issuing P-Notes. Morerecently,SEBImandatedthatinadditiontoKYC, the anti money laundering rules (AML) will also be applicable to P-Note holders. Earlier, a P-Note holder had to adhere to KYC or AML norms of just their home jurisdiction. SEBI also issuednorms on transferability of P-Note between two foreign investors and increased the frequency of reporting by P-Note issuers.

4. Do Regulators wish to ban P-Notes?

SEBI is not in favour of banning the instrumentasitisusedgloballyinmanymarkets.Inarecentinterview to ET, SEBI chairman UK Sinha said:“Participatory Notes, in SEBI and Government’sviews are legitimate instruments that are required fornormalfinancialtransactionsandareprevalentinall the largermarkets.” It isnothinguniquetoIndia and there are business reasons for havingthese transactions through P Notes. According to Sinha,outofthe9000FPIsregisteredwithSEBI,37 are issuing P Notes.


Govt open to deliberating on merger of oil firms: Pradhan

The Government is open to deliberating on the issueofmegamergerof state-ownedoilfirms forcreating a behemoth, Union Minister for Petroleum and Natural Gas, Dharmendra Pradhan has said. “The Government plans to deliberate on the issue of merging the E&P companies and oil marketing firms in thepublic sector,” theMinister toldPTI.The state-owned oil companies are IOC, BPCL,HPCL,ONGCandOIL.

He said with crude oil prices falling, the profitsand margins of state-owned E&P (exploration andproduction)firms-ONGCandOilIndiaweregettingeroded.“BothONGCandOILaretakingahitonprofits.Theissuehadbeenrecentlyflaggedby a director of one of the PSUs that it was in the interestoftheE&Pfirmstogetmergedwiththeoilmarketing companies. There is nothing wrong in discussing the issue within the Ministry,” he said.


Debt crisis in dragon land

MorethantenfinancialinstitutionsinChinahavepressed the provincial government in Hebei to act swiftly to resolve a multi-billion dollar debt crisis that blew up early last year after a state-owned credit guarantee company became technically insolvent. Once China’s second-biggest credit guarantor,HebeiFinancingInvestmentGuaranteeGroup backed lending to more than 1,000 corporate borrowers in the province, which has been hit hard by the economy’s slowdown.

Set up to improve funding for the province’s small and medium-sized businesses, Hebei Financing became technically insolvent early last year, and is unable to help pay out at least 32 billion yuan ($4.8 billion) of total loans extended with its backing. Lenders, which consist of scores of banks, trust companies, asset management firms and fundmanagers, face huge losses as Hebei Financing failed to make good its guarantees and they have appealed to the provincial government to bail

Two wrongs do not make a right – English Proverb

misCellaNy


out Hebei Financing. In an “urgent letter” to theprovince’stopbossesdatedJuly12,thefinancialinstitutions warned that the crisis continues to worsen.

Creditors urged the provincial government to ask the custodian company, state-owned Hebei Construction& Investment Group Co, to providecredit guarantee to allow the restructuring of Hebei Financing-related debt.


Air France strike enters 5th day

Thousands of people faced flight cancellations inFranceonSunday,thefifthdayofastrikebyAirFranceflightcrewattheheightoftheholidaytravelperiod, the airline said. So far the strike has affected around150000people.Some900flightshavebeencancelled since the action began on Wednesday, the airline said estimating the cost to the company at “tensofmillionsofEuros”.Someflightshavegoneahead with a reduced passenger load as there were notenoughflightattendants.

-The Hindu Business Line, 01/08/2016

FinMin asks profitable PSUs to mull stock split

TheFinanceMinistryhasdirectedallprofitmakingPSUs to use their surplus cash to buy back shares and pay handsome dividend, besides considering issuing bonus shares or going for stock split. The Department of Investment and Public AssetManagement(DIPAM)inarecent lettertoCentralPublic Sector Enterprises (CPSEs) has asked them topaydividendattherateof30%ofnetprofitor5% of the net worth, whichever is higher.

“CPSEs with surplus cash have been asked to buyback shares or issue bonus shares to increase the value of Government holding,” said a senior official. They have also been asked to considershare split if the book value of their shares exceeds 50 times their face value. The idea behind stock split is to encourage participation of small investors in capital markets. High price of shares sometimes acts as a deterrent for investors to invest in the company and CPSEs need to decide, from time to time, the stated option of splitting the shares.

It is best to own the error; it’s sure to add to our strength. – M K Gandhi

State-owned companies have cash and free reserves estimated at ` 2.6 lakh crore and the newly created DIPAMhasbeenentrustedwiththetaskofensuringits optimal utilisation. “We have been asked to shell outhigherof30percentofnetprofitor5percentofnetworthasdividend,”hesaid.AnofficialintheFinance Ministry said on condition of anonymity that the idea behind the exercise is to ensure that cash does not remain idle and is utilised optimally by PSUs who have high net worth and negligible or zero leverage ratio and whose expansion of business does not justify holding so much cash. To assess the cash utilisation of PSUs, the Government has started looking at ratios like - return on net worth, dividendtonetworth,profitaftertaxtonetworth.InordertoevaluatetheperformanceofPSUs,theGovernment has evolved 10 parameters which include capacity utilisation, leveraging net worth, return on investment, technology upgradation and marketingefficiency.


Sun Pharma adopted Unfair Labour Practices, Rules Court

TheMumbai IndustrialCourthasruled thatSunPharmaceutical Industries adopted unfair labourpractices by holding back salaries of 86 sales promotion employees since May, after they protested the planned changes in their service conditions. InaninterimorderonJuly29,thecourtdirectedIndia’s largest drug maker to pay the staff anddirected the company not to terminate employees without following the due procedure of law. The court rejected other forms of relief sought in the petitionfiledbyaunionrepresentingthestaffers,who wanted full payment with 18% interest on dues. Sun Pharma said it had no comments to offer because the matter is sub-judice.

According to the petition filed by the Federationof Medical & Sales Representative Associations of India, Sun Pharma had “Vicitimised” the 86employees and stopped paying them salaries and reimbursements. The employees are from the Stancare Division, which sells the popular Storvas brand as part of a range of cardiovascular drugs. The Division has about 140 staffers. The union allegedly protested against changes in certain


service conditions proposed by the company. While the details could not be ascertained, a section of the staff took issue to changes proposed by Sun Pharma in the daily reporting system for medical representatives. The respondent (Sun Pharma) is directed to desist from continuing unfair labour practices in respect of non-payment of salary and earned wages, according to the order signed by M K Mahajan, member of the industrial court.


RBI to transfer ` 65876 cr surplus to Centre

TheReserveBankofIndiaonThursdaysaiditwilltransfer to the Government ` 65876 crore of its surplus, generated through investment activities,

To lose patience is to lose the battle. – M K Gandhi

whichislowerthanthatinthepreviousfiscal.

“The Board approved the transfer of surplus of the Reserve Bank for the year 2015-16 amounting to ` 65876 crore to the Government.” the central bank said in a statement.

ThesurplusisgeneratedthroughRBI’sinvestmentactivities, primarily in other sovereign bonds like that of the US T-bills, which is its single largest investment source.

Last year, the surplus payout was 25 percent more than thepreviousfinancialyear,prior towhich itwas much lower.


swasti

CHENNAI

AprogrammewasarrangedbySWASTIatShanmugaIndustries Government Higher Primary School,Tiruvannamalai on 10thAugust.SWASTIextendedits helping hand to dig a new bore well for the school at a cost of ` 39000/- with a view to provide potable drinking water to the children studying at the school. More than 1600 students study in this Government School which has a teaching faculty of 63.

Circle Secretary, P. Rangarajan, Zonal Chairman, K R Bhaskar, Zonal Secretary, P. Nagarajan, Deputy Zonal Secretary, G K Murugan, Area Secretary, Selva Muthu Kumar and activist Rajashekharan attended the symbolic handing over function.

Circle Secretary, P Rangarajan explained about theactivitiesofCBOOandSWASTIinmeetingthesocial obligations of the officers’ union. He urgedupon the children to study well and gain more knowledge. Zonal Secretary, P. Nagarajan explained the relevance of good education quoting the verses from Thirukkural and referring the quotes from Late Sri Abdul Kalam, former President of India.Area Secretary, Selva Muthu Kumar also spoke on the occasion.

The Headmaster of the School, Sri S. Arunagiri, thanked CBOO for the timely assistance extended to the School.

- P Nagarajan, Zonal Secretary


1. Changes in Regulation to open an NRO Joint Account and Additions to RFC Account Operation Guidelines(P & D, HO Circular No.443/2016 dated 16/07/2016)

Following changes in FEM Regulations, RBI hadadvised certain changes in respect of guidelines governingNROAccounts,RFCAccount, Issuanceof International Credit Cards and submission ofForm A2 etc.

2. Pradhan Mantri Suraksha Bima Yojana (PMSBY) – Revised Enrolment Form(Bancassurance Division, HO Circular No.444/2016 dated 18/07/2016)

AsperthechangesmadebyDFS,MOF,GOI,revisedPMSBY Application furnished in the Annexure only must be used for fresh enrolment. The old stock is to be destroyed.

3. Revision in Format of Form No.60(FMD, HO, Circular No. 448/2016 dated 20/07/2016)

InsupersessionoftheguidelinesissuedunderHOCircular No.220/2016 dated 02/04/2016, detailed guidelines on obtention of Form No. 60, dispensing Form No. 61 and FAQ are furnished in the circular.

4. Examination of Staff Lapses in NPA a/cs (I & AD, HO Circular No.450/2016 dated 21/07/2016)

The process of examination of staff lapses should be completed within 3 months from the date of account becoming NPA and report should be submitted to PAD, HO, containing full and complete information, wherever staff lapses are observed.

5. Introducing Corp RuPay EMV Platinum card (E Business & Delivery Channels Division, HO Circular No.451/2016 dated 21/07/2016)

RuPay EMV Platinum cards can be issued to all variants of Super and Elite accounts with an access twice in a calendar quarter free of cost at any Airport loungesacrossIndia.PersonalAccidentInsurancecover (accidental death or permanent disablement) ofRs.2lakhsisavailable.Thedetailsofbenefitsofvariant features are as per Annexure – 1 to 3 of the circular.

6. Need to take effective measures to turn around the High Risk Rated Branches(I & AD, HO Circular No.454/2016 dated 22/07/2016)

Branches are advised to initiate necessary steps for rectificationofirregularitiestoimproveriskrating,during subsequent inspection. ZO should also ensure close monitoring of the functioning of High Risk rated branches with greater focus and initiate appropriate measures to ensure low risk rating of such branches in next inspection.

7. Current Account drive; 01.08.2016 – 30.09.2016 (CASA, HO Circular No.458/2016 dated 25/07/2016)

Current Account drive has commenced from 01.08.2016 – 30.09.2016 to arrest slow growth of current portfolio. All branches & staff members are eligible to participate in the drive. The other details of current account drive are furnished in the circular.

8. Currency Distribution & Exchange Scheme for Bank Branches including Currency Chests based on Performance in rendering Customer services to the members of the public (O&S, HO Circular No.457/2016 dated 25/07/2016)

RBI has communicated revised guidelines onCurrency Distribution & Exchange Scheme after segregation of incentives from penalties. The revised incentive scheme guidelines are given in Annexure.

9. Annual Review of Bank's Internal Policies; Guidelines on the Scheme of delegation of Non-lending Powers (Other than IT) Policy Document 2016 (PPMD, HO Circular No.455/2016 dated 22/07/2016)

Modificationsproposedinthepolicydocument2016approved by the Board are furnished in Annexure 1 ofthecircularonmatterspertainingtobankofficelease, repair & maintenance, etc. among others.

10. Bank Guarantees issued in favour of Hon’ble President of India on account of various Govt. Departments/Undertakings (CPPS, HO Circular No.464/2016 dated 02.08.2016)

Any correspondence in respect of Bank Guarantees issued in favour of Central Govt. / Govt. Departments/Undertakings should be addressed

CirCular rOuNd up

Never be weak. You must be strong; you have infinite strength in you - Swami Vivekananda


onlytotheconcernedbeneficiaryDepartmentthathas accepted the guarantee and not to the Hon’ble PresidentofIndiaorthePresident’sSecretariat.

11. PPF Scheme 1968(GBD, HO Circular No.465/2016 dated 02/08/20160)

As per amendment to PPF Scheme, 1968 to sub-section (4) of section 3, a subscriber shall be allowed premature closure of his PPF account or the account of a minor of whom he is the guardian, onawrittenapplicationtotheaccountsoffice.

12. Suggestion for improving CASA (CASA Division, HO Circular No.467/2016 dated 02/08/2016)

Top 3 Suggestions from Staff members for improving CASA will be rewarded with Rs.10000/- each - one for staff less than 30 years' age & second for staff above 30 years' age.

13. Mobile Number Updation Drive (CASA Division, HO Circular No.468/2016 dated 02/08/2016)

The mobile number updation drive initiated for a period three months for capturing mobile numbers covering all operative savings & current accounts opened between 01.04.2016 to 30.06.2016.

14. Credit Guarantee Fund for Micro Units (CGFMU) for Pradhan Mantri Mudra Yojana [PMMY] Loans (MSME Division, HO Circular No.469/2016 dated 03/08/2016)

The Scheme is effective from 08.04.2015 covering all PMMY loans to be invariably covered under CGFMU whereas CGTSME coverage is dispensed with. The scheme details are covered in the circular.

15. Credit Guarantee Scheme for Stand Up India – CGSSI (MSME Division, HO Circular No.471/2016 dated 03/08/2016)

Central Government has come out with scheme known as “CREDIT GUARANTEE SCHEME FORSTANDUPINDIA”[CGSSI]providingguaranteetoloans sanctioned under Stand Up India Schemeeffective from 05.04.2016. The scheme details are covered in the circular.

16. Scheme for Sustainable Structuring of Stressed Assets (S4A) (Credit Division, HO Circular No.473/2016 dated 03/08/2016)

The circular contains detailed guidelines on the scheme for sustainable structuring of stressed assets to deal with stressed assets in line with the guidelinesissuedbyRBI.

17. Withdrawal of Delegated Powers of Branch Managers for Purchase of Local Cheques (CRMD, HO Circular No.474/2016 dated 03/08/2016)

Delegated lending powers of Branch Managers for purchase of local cheques (LDBC) have been withdrawn with certain exceptions as provided in the circular.

18. Roll out of Employees’ Attendance/Tour & Expenses Module in HRMS(HRD-PAD, HO Circular No.506 & 507/2016 both dated 11.08.2016)

The Division has rolled out employees’ Attendance and Tours & Expenses modules in HRMS with effect from 16.08.2016.Till the attendance module stabilizes fully, physical copy of attendance register shall be maintained. Tours & Expenses module shall be effective from 16.08.2016; no manual sanction will be permitted after 16.08.2016.

19. Placing Reservation Roster Details in Website (HRM-PAD, HO Circular No.486/2016 dated 08/08/2016)

To enable interested persons/associations and public at large to have easy access to Reservations and Rosters, Bank has made available these Rosters updated up to 31.12.2015 on Bank’s website (Link: www.corpbank.com/Post-based-Reservation-Rostersandpath:www.corpbank.com->Homepage->RegulatoryDisclosures->Knowmore->PostbasedReservationRosters).

20. Action for failure/dishonor of electronic clearing service(ECS) transactions (LSD, HO Circular No.481/2016 dated 05/08/2016)

Section 25 of the Payment and Settlement Systems Act, 2007, accords the same rights and remedies to

Never talk about the faults of others, no matter how bad they may be. You never help one by talking about his faults; you do him an injury and injure yourself as well - Swami Vivekananda


thepayee(beneficiary)againstdishonorofelectronicfunds transfer instructions for insufficiency offunds in the account of the payer (remitter), as are available to the payee under section 138 of theNegotiable InstrumentsAct,1881.Detailsareprovided in the circular.

21. Central Sector Scheme (CSIS) for Interest Subvention on Education Loans – Submission of Claims for FY 2015-16 (PSD, HO Circular No.508/2016 dated 12.08.2016)

Plum Menu enabled for branches from 12.08.2016 to 12.09.2016 for claiming interest subvention on educational loans for FY 2015-16underCSISwhich has to be carried out by the branches as one timeexercise. “AADHARnumber”field isoptionalintroduced in PLUM Menu. The details of the scheme are furnished in the circular with illustrations.

22. Interest Subvention Scheme on Short Term Crop Loan for 2016-17 (PSD, HO Circular No.494/2016 dated 09/08/2016)

The interest subvention scheme on short term crop loans is continued for FY 2016-17. All components of Kisan Credit Card are eligible for interest subvention for short term crop loans up to Rs.3 lakh per farmer. Additional interest subvention at 3% will be available to the prompt payers. The other details of the scheme are available in the above circular.

23. Credit Facilities to SCs/STs (PSD, HO Circular No.493/2016 dated 09/08/2016)

The circular advises the branches to encourage flowofcredittoSCs/STsthroughStandUpIndiaScheme, follow certain prescribed guidelines while rejecting such loan applications and also reservation for SCs/STs under Major Centrally Sponsored Schemes.

24. Credit Flow to Minority Communities (PSD, HO Circular No.492/2016 dated 09/08/2016)

Focus on credit flow improvement to MinorityCommunities in compliance with PM’s 15 Point Programme as also other action points particularly in minority concentrated districts are furnished in the circular.

25. Swachh Bharat Mission – Gramin (PSD, HO Circular No.485/2016 dated 08/08/2016)

Need to finance for drinking water facilities andsanitationfacilities,tomakeIndiaOpenDefecationFree by 02.10.2019 as envisaged under Swachh Bharat Mission – Gramin.

26. Acknowledgement of Debt (AOD); Obtention and Updation in the system in a timely manner (CRMD, HO Circular No.504/2016 dated 11/08/2016)

Branches are advised to obtain AODs well in advance after completion of 24 months but before completion of 36 months from the date of documentation/date of last AOD and update in the system immediately on obtention. Respective ZCCs shall follow up with the branches for generating such list.

27. TOD/Excesses allowed at Branches (CRMD, HO Circular No.497/2016 dated 09/08/2016)

The circular reiterates the need to comply with all extant guidelines of the Bank in allowing Temporary Over Drawals (TODs) and excesses by judiciously exercising the powers.

28. Credit Audit of Large Advances(CRMD, HO Circular No.483/2016 dated 06/08/2016)

Deficiencies observed during the credit auditshall be rectified immediately and credit auditsin all eligible cases must be completed as quickly as possible from the date of release strictly and meticulously adhering to extant guidelines on credit management.

29. Introduction of special concession in interest rate on CHOME and CVEHI (Personal Segment) to Central Govt. Employees and Defence Personnel (RLD, HO Circular No.503/2016 dated 11/08/2016)

Under ongoing Monsoon Offer – 2016 valid up to 30th September 2016, Bank has decided to introduce special concession in interest rates on Corp Home and Corp Vehicle (Personal Segment) loans to be extended to Central Govt. Employees & Defence Personnel who have Corp Elite/Delite/Payroll/SB accounts with check-off facility (undertaking from the employer to deduct and remit the proposed EMI directly to theBank). The details are furnished in the circular.

As learning is revered all over the earth, should we not learn until the hour of death? - Tirukkural


health watCh

A few decades ago, diabetes was diagnosed when sugar content was traced in urine. The examination was done when the patient had obvious complications of diabetes like a long-lasting infection, weight loss, excess urination and even symptoms of kidney failure. By this time, the patient would have already been in touch with the disease for 5 to 10 years. Similarly, high blood pressure does not show up any symptoms unless it is way too high. But the bottom line is that the damage has been done by then.

Early detection of diseases like diabetes and high blood pressure helps stall complications, if treated early. “Cholesterol problems” like high LDL (bad cholesterol), low HDL (good cholesterol) and high triglycerides can be detected only by blood tests. These are individual risk factors for heart diseasewhichisontherise inIndia.Thecurrentrecommendation is to get oneself screened every year beginning from the age of 30 years.

A few years ago, there was no method to screen for early cancer. But these days, technology is so advanced that we can screen a certain cancer condition even before it has spread its arms in an individual’s body. Cervical cancer and pre-cancer stages are detected by pap smear; endometrial biopsy is done to detect endometrial cancer if the endometrium is thicker than normal on an ultrasound; prostate cancer can be screened by blood PSA (though not routinely recommended); breast cancer can be screened for by mammogram after the age of 40 years. Colon cancer screening (after 50 years of age) is done initially with stool exam for occult blood and if positive, a colonoscopy isplanned. Ifnormal,oneneeds to repeat itonlyafter 10 years.

Further, thyroid problems are common and the incidence of it is on the rise. Many people have no obvious symptoms of hypothyroidism but show

marked abnormalities in their blood test. Thyroid problems cause abnormal metabolism, body swelling, hair loss, recurrent abortions, memory problems, heart rhythm problems and osteoporosis. A TSH test must be included in a routine health check-up.

BloodcalciumdisordersarecommoninIndiawithmanypeoplehavingvitaminDdeficiency.ThosewithfloridvitaminDdeficiencyhavelowcalciumwhilethosewithmildtomoderatedeficiencykeeptheirblood calcium normal due to extraction of calcium from bones. People taking calcium supplements for a long time need to keep an eye on their blood calcium as it can exceed the upper limit of normal and can be dangerous for the heart and may even cause kidney stones. People taking medications like ramipril, olmesartan and telmisartan for high blood pressure need to watch their blood potassium once in six months as this can go dangerously high while on these drugs. Those taking medicines like hydrochlorothiazide and furosemide also need to monitor their blood potassium and sodium as these would tend to drop.

A blood creatinine is the test to detect kidney failures. One does not have symptoms of kidney failure until the last stages when nothing much can be done to prevent further damage to the kidneys and the patient can only be dialysed or have a kidney transplant. Certain diseases like kidney failure due to lupus and certain drugs, if detected early, can be treated fully. The progression of kidney failure can be slowed drastically if treated early.

Liver enzymes can be elevated in fatty liver due to alcohol intake, high sugar intake, high blood tri glycerides and uncontrolled diabetes. It can alsobe temporarily elevated in viral infections and use of certain medications. If persistently elevated, adetailed work-up must be planned to evaluate for chronic hepatitis. Blood alkaline phosphatase,

The smell of flowers goes only with the wind; but the fame of the good men goes even against the wind. - The Buddha

- Dr. Anila Chandy

HEALTH CHECK-UPS MUST AS MOST DISEASES DEVELOP ON THE QUIET


another liver enzyme, can detect cancer of the bile tract and pancreas, sometimes earlier than symptomsappear.Itcanalsoindicateosteomalaciaand rickets. Blood total protein and albumin ratio can give a subtle indication of cancers like myeloma if abnormal. ECG, echocardiogram and tread mill test (TMT) are done routinely for those at risk for heart disease. While ECG and echo may be normal, a TMT can detect heart disease and further measures to protect the heart can be planned.

A chest X-ray, though routinely done in health check-ups is not recommended in screening for lung cancer and must be done only if symptoms warrant it, to avoid unnecessary exposure to radiation. Lung cancers, unfortunately, cannot be

detected early and by the time they appear on an X-Ray, it already is too late.

Insummary,thetestsinyourhealthcheck-upshouldinclude blood counts, creatinine, liver enzymes, proteins, blood calcium, sodium, potassium, blood lipids, TSH, ECG, echocardiogram, TMT, pap smear, breast exam, mammography (if indicated), stool for occult blood, pelvic ultrasound and serum PSA (if indicated).

(The writer is a General Physician at Motherhood Hospital,

Chennai)


INDIA’S YOUNG ARE IN THE GRIP OF SICKLY ‘AFFLUENZA’

IsapuffofacigaretteoraswigofadrinktakingIndia’sdemographicadvantageaway?Earlyadoptionof alcohol and tobacco products, owing to rising incomes, is wreaking havoc on the country’s health, accordingtoanewstudy.Indians,whoaregeneticallypronetoheartdiseasesanddiabetesaswellaschronic respiratory diseases and cancer, are becoming more exposed to such ailments with changing lifestyle habits, the report by the Population Reference Bureau noted.

Thestatisticsnarrateagrimstory.InIndia,non-communicablediseases(NCDs)accountforabout40percentofallhospitalstays,35percentofoutpatientvisitsand60percentofalldeaths.Indianshavea26 percent chance of dying prematurely between the ages of 30 and 70 due to the four major NCDs, notes the report, ‘Addressing Non Communicable Disease Risk Factors Among Young People: Asia’s Window of Opportunity to Curb a Growing Epidemic’.

With 253million adolescents, the report says that India, alongwith the rest of Asia, is at a crucialjuncture health-wise, which could be changed by making lifestyle changes, such as changing eating habitsandincreasingexercise.Theproblemisabouttoworsen.“In2050whentoday’syoungpeoplehaveallreachedages45andolder—thetimewhenNCDstypicallyhithardest—theover-45populationisprojected to be 2.3 times the size it is today in South Asia, two times larger in South - East Asia, and 1.4 times larger in East Asia,” the report notes.

Amonglowandmiddle-incomecountries,suchasIndiaandmanyotherAsiancountries(whichformedthe scope of the study), such diseases also claim lives at younger, more productive ages, compounding the economic loss for the nation. Besides recommending strict control over tobacco (which claims six million lives worldwide every year) and alcohol consumption, the study recommends regulation of the processed foods industry to rein in the risks associated with diet.

UnhealthyIndiaDetails:

-1in3youngpeopleliveeitherinIndiaorChina- 7 out of 10 children in 13-15 year age group get less than 60 minutes exercise per day.- 1 out of 5 (13-15 year old) is overweight or obese.-575millionpeopleusetobaccoinIndiaandChina- 19% of boys and 8% girls (13-15 years) have used tobacco.

-The Hindu Business Line, 22/07/2016

You can change your circumstances by changing your attitude.

Officers’ Voice, September 2016 43Officers’ Voice, September 2016 43

On June 30, headlines across newspapers were on the Union Government having approved the Seventh Pay Commission recommendations. The Economic Times headline read, “Central staff hit pay dirt: An early Diwali”. The newspaper said the Government had accepted the recommendations doling out ‘hefty’ pay hikes. The salaries were expected to increase in the range of 14 per cent to 23 per cent. The bold fonts also announced that the lowest salary was to increase from ` 7,000 per month to ` 18,000. The highest salary, received by the Cabinet Secretary, was to go up to ` 2,50,000 from `90,000.Soundshuge,does itnot?Butweneed to analyse this. What is the bonanza and what are the hefty pay hikes which are speculated to be “fuellinginflationarypressures”?

Actually, the salary of ` 7,000 and ` 18,000 are not comparable. The equivalent of the ` 7,000 basic salary,whichwasfixed10yearsagoandcurrentlyapplicable with the dearness allowance added on, is ` 15,750 (` 7,000 basic plus 125 per cent DA). Inthesalaryof` 18,000 now announced, the DA is subsumed. Thus, a more accurate comparison would be the present salary of ̀ 15,750 and the new salary of ` 18,000. Similarly, the cabinet secretary at present receives ̀ 2,02,500. The newspapers also announced that the total outgo as a consequence of the hike was expected to be ` 1 lakh crore.

The comments on social media are more expressive! They question whether Government employees actually deserve higher salaries: “Being paid more for what?”, “More pay for less and less work”,and “Babus don’t deserve a hike.” In fact, it isspeculated that these increaseswill fuel inflation.Another school of thought believes that it will kick start spending, thus generate demand and hence increased economic activity.

The Pay Commission is announced once in ten years. Thus any increase in basic salary comes about once in ten years. Even if we were to assume that this Pay Commission has brought about a hike of 20 per cent, it would tantamount to a simple rate of 2 per cent per annum. Which employee in the private sector would be content with a 2 per centperannumhike?Acoupleofyearsago,Iwas

pleasantly surprised to hear of the bonus received byoneoftheyoungstersinthefamily.Ifoundthathis annual bonus alone was more than the sum of the total salary earned by me over my entire career! He could afford at least two vacations abroad for himself and his kids every year, travelling business class.MywifeandIhaveneverbeenonanyvacationas yet. At most, every year we visited our parents using up my earned leave or she would accompany meifItravelledonwork.Forhimtheweekendisatotalbreakfromwork-hegetsnoofficialcallsovertheweekend.Minewasa24x7jobwhenIcouldnotrefuse anyone who called me. Once when my wife reminded the caller that he had called on a holiday, he had the gumption to remind her that officialphones were given to Government functionaries so that they could be contacted all the time!

There is then the fear that the pay increase will cause financial difficulties to State Governments.True, it will. However, prudent financialmanagement requires constant mobilisation of resources. Considering the fact that we have just about an election every year, to local bodies or State legislatures or the general election, very few Governments can take appropriate measures to increasetaxesortapmethodstoraiseresources.Ifyou cannot take harsh decisions to raise resources, why blame Government employees who get a paltry increaseof2percentperannum?

I acknowledge that Government employees arenot the most popular guys. To a large extent, we are to blame for this. This perception needs to be addressed and only we can do that with our own endeavours and actions. However, if the general public still continues to grudge the paltry increase, they must realise that if you pay peanuts you get only ..........!

- Vinod Rai

(The above article was published in ‘The Week’ – 24/07/2016. Sri Vinod Rai is a Former Comptroller and Auditor General and presently Chairman of Banks Board Bureau)

'Well done' is much better than what's 'well said'.


This is a great opportunity... with regular cash do not forget to hand over the cut and soiled notes also...!!!

Coming from other banks will always be good; nobody here will know their failures there.

i will repay the loan shortly, Sir... i am availing a loan from the other bank for this purpose...!!!

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