ALL INDIA BANK OFFICERS’ CONFEDERATION
Phone:011-23730096 Tel/Fax 23719431
Circular No. 2014/19 Dated: 13/02/2014
“ALL PROFITS CAN’T BE USED TO PAY HIGHER WAGES” :AGREED
BUT ARE THESE MEANT TO PROFIT THE PRIVATES ?
While we share the anger and anguish of our membership over the statement of Hon’ble Finance
Minister, Sh. P. Chidambram on the occasion of 78th
foundation day of Indian Overseas Bank on
10thFebruary,2014, we also thank him for once again (he is already on record in Parliament that
profitability of the banking industry is increasing) accepting the fact that BANKS ARE EARNING
We also agree with him that Banks’ profits are not for enhancing the wages, but, we
also wish to remind the following:
1. The Prime objectives of the Nationalisation were to bring parity in the society which was
branded as a major bold and historical decision of the century by late Smt. Indira Gandhi,
the celebrity Prime Minister of the country.
2. Nation had acknowledged that it was historical as it believed that prime focus after
Nationalisation would be poverty alleviation by upbringing the rural poor through various
welfare schemes introduced and implemented through nationalised banks.
3. The workforce of the Nationalised banks also responded fittingly by spreading its presence
from 8000 to more than 80000 branches since Nationalisation, in every nook and corner of
the country, dedicated and devoted their lives in executing government’s initiatives and
policies, unmindful of personal comforts, participated whole heartedly in the nation building
by way of uplifting the downtrodden above poverty line.
4. Through this unparallel dedication by the employees of PSBs the presence of branches
today has crossed 100000+ from mere 8262 branches as on the date of Nationalisation
5. Against their own policy, the government has attempted to encourage private sector to
enter in to banking business. The resultant is that many private banks which commenced
their business with fanfare became failure, a few transformed in to foreign banks and one
was taken over by nationalised bank at the cost of nationalised bank’s business and profit.
But still the nationalised banks were commanding 70% market share and
making huge profits.
6. Years back, world witnessed the failure of banking institutions all over and west was worst
hit which brought the top banks to dust. Economic recession was the word substituted for
the mismanagement. But Indian banking sector was shining as usual and Indian banks
were making huge profits even in that adverse scenario.
Is it not the testimony for the managerial ability of workforce of Indian banking
system? 7. Keeping the eyes on the vote bank, debt relief schemes were introduced which has marred
the recovery mechanism in the banking industry and it became a major contributor in NPA
building in the rural branches.
Still banking sector made profits.
8. Government forced the banks to restructure the advances due to natural calamities, banks
did so to revitalise the rural economy.
Still banks generated profits.
9. When the Govt. wanted the inclusive growth by introducing financial inclusion and ordered
to ensure the presence even in remote, The Banks responded instantly to bring unbanked
corners under banking services at huge expenses.
Still banks earned profits.
10. When the govt. wanted to introduce DBT, we have readily agreed and accepted to carry
out the un-remunerative business unminding the profit in the interest of countrymen.
Still banks have shown profit in the business.
11. So many self employment training institutes are run by the banks for skill development in
Indian youth at huge cost from out of the income earned.
Still banks are making profits.
12. Recently Election education to the public is also entrusted to the banks in 543 districts.
Banks will be undertaking this responsibility also with their resources and manpower.
Still banks are running their business with profits.
13. In order to help the private corporate, CDR was forced on PSU Banks which is a drain on
hard earned income of Banks. The income is further drained out in the form of Income tax
and forced dividends from profits.
Still sufficient Profits are available.
The causative factors for pulling down the profits (beyond the reach of employees)
a. Policies of the government.
b. Impact of economic slowdown which is also resultant of government policies.
c. Write off of bad debts.
d. Concessions to be extended in permitting CDR to corporate.
In the midst of all the above adverse situations forced by the controllers’ compulsions
where the workers are not having any role, the Indian banks are making profits.
A view on the following will depict a perfect picture on the power of public sector
banks’ work force.
PSU BANKS PROFITABILITY (IN CRORES)
2011 2012 2013
GROSS PROFIT 99,981 116,335 121,943
PROVISIONS 55,080 66,821 71,360
NET PROFIT 44,901 49,514 50,583
Notwithstanding the fact that PSU BANKS are consistently earning huge and
increasing profits, we, the most responsible trade unions, are not linking our wage
demand to the profit and we are DEMANDING WAGES AS OUR RIGHT. It was well defined and designed policy decided between bank employees and IBA to revise the
wages every five years to provide a decent living for the bank employees who are playing a
pivotal role in nation building. More so, for the officers the wage increase shall be linked to risk
and responsibilities they shoulder.
It is only the IBA which is linking the profitability with wage revision. Though we are primarily
differing from the IBA’s views of linking the profitability with wage revision, the following
arguments naturally arise even if it is taken for a debate
1. If the profitability is the basis for the wage increase how the govt. employees are given
manifold increase from out of the deficit budget?
2. Why the value of the current shareholding is not reckoned by the govt. which nationalised
the banks at par value, which was built up to the current level by the hard work rendered
by the bank employees?
3. When the govt. talks about capital infusion to increase their hold, why the dividend
received over a period of four decades is not taken into account?
4. If the govt. wants to take big chip in the name of Income tax also besides the huge
dividend, how people would believe the crocodile tears of building up capital from the
5. If the govt. really wishes to build the capital out of internal resources how the govt. will
justify their action of siphoning huge money from the banks in the name of interim
dividend in September 2013 itself without even allowing the banks to retain such money
and employ it to maximise the profit till march 2014?
6. The PSB Banks would witness huge exodus due to superannuation within a period of five
years from today to the tune of about 80% which needs about 10 lac employees to be
recruited over a period of five years to replace the retirees and to face the future growth.
-Is it not the responsibility of the Government, the majority stake holder, to initiate steps to
recruit quality youth and introduce policies to retain youth in the Industry, so as to ensure
the existence of PSBs from the potential threat of becoming extinct?
-Should the threat of poaching the existing staff of PSB banks by New generation Private
Sector Banks and foreign banks, not be a concern of Managements/IBA and Govt.
DO WE NOT DESERVE A SMALL SHARE OF PROFITS TO MEET OUR LEGITIMATE
DEMAND OF REASONABLE COMPENSATION
PSU Banks in India posted a profit of whooping 121917 crores during the year 2012-13 and if
15% of the profits is provided, a reasonable wage hike can be given to the bank staff for next five
years. After setting apart this negligible percentage from out of the profit earned to the hard
working bank employees, the balance can be diverted towards providing bad debts and other
purposes prescribed by the Hon’ble Finance Minister.
It is indeed unfortunate and provocative that the finance minister suggests providing towards bad
debts at the cost of employees legitimate salary revision, instead of initiating recovery measures
by introducing stringent recovery measures.
When the responsible reply does not come forth, should we not conclude that the Government
policy is profiting the private by allowing the banks to decay through demoralising the staff?
WE REQUEST OUR MEMBERS TO WIDELY CIRCULATE THIS COMMUNICATION TO OUR CUSTOMERS AND MEMBERS OF THE SOCIETY TO CREATE AWARENESS AND PUT THE FACTS STRAIGHT.
With Revolutionary greetings, Yours comradely,
I am unable to understand why ufbu is scheduling its meeting on 19th.
why not on 17th or 18th?
you are delaying the settlement by your own.
just announce a infinite strike, smash the economy on its knees and govt will understand us.
and this corrupt FM is not honorable
Sir, Please demand to dissolve IBA they are working in favour of Government and not us. Once these seniors move to IBA they forget all the pain and stress bank people have. Their is huge disparity between central government and government banks can't they see that. It's better further we approch through labour commison instead of this IBA pathetic brokers of Chidu.
Govt employees are first rate citizens,RBI officials are second rate,SBI third rate,their Assiciate Banks fourth rate and other bankers are fifth rate citizens in the eyes of the Govt.
Thanks to Union-walas.Pillai wanted bank officers to be equal to the first rate citizens but Unions fought hard to reduce the bank officers to the level of fifth rate citizens.
Had our UFBU Leaders meet Rahul Gandhi, our wage settlement would have been over. No need of going on strike etc. But these leaders have least concern for the aam bankers.
Govt ko kyon kos rahe ho. aapki demands kya hai, kitne me satisfy hoge, kisi ko pata hai kya. charter of demands neither discussed with IBA, nor with Govt. forget about discussions in media/public forum. 10-12 karva kar 12-13% par settlement ho jayegi. sab kuchh fix hai.
Mere 10% increase in bankers salary contribute just 3000 crore to government and our demand for reasonable settlement of 20% to 25% will only amount to 6000 crore to 7500 crore to government which is legimate. Bank earned 120000 crore of gross profit and this is petty amount which is legimate to demand. Union should take tough stand to project our demand and should go for resolve our demand or go for indefinite strike
Agale kuch din me aachar sanhita lag jayegi fir hame milega babaji ka thulla. Ye ufbu govt ke ishare par kam kar rahi hai nahi to ye iba ke 13.02.14 ki meeting cancel karte hi indefinite strike par chali gayi hoti. Ufbu hye hye
Condition of banker getting pathetic day by day. Waiving off bad debts and providing subsidy to useless scheme
Which is going to npa right on day it is sanctioned and measuring our profitability by government wrong policy. Inspite of it we are earning very good even after making provision to bad debts. I am very surprised to see FM interim budget dont have even place for bankers. We will have to demand our legimate due from government forcefully and union leader take matter seriously in meeting on 19.02.2014. Take firm and prompt action in favour of banking fraternity.
as we know that apart from the banks insurance companies and the other public sector companies wage revesion is due, instead of going alone why can't we join together in a forum and compel the govt to bend to our demands. really ridiculous, such a pathetic condition we are facing..........
ufbu leaders are behaving like children s they will accept what the govt says they wont least concerned about new generation mind set if this continues non of new generation people will join banks ans pensioner will suffer including top management
people.Understand the importance of the wage revision and act immediately.
IT IS TIME TO GO IN FOR DEFINITE STRIKE AND SHOW THE STRENGTH, INSTEAD OF SUCCUMBING TO THIS DELAYED TACTICS OF IBA. WE ARE NOT BEGGARS. DO NOT ACCEPT ANY MEAGRE HIKE. LET US BE PAR WITH THE CENTRAL GOVT EMPLOYEES AT LEAST, WHO DOES NOT HAVE ANY FINANCIAL RISK.UNIONS SHOULD NOT BECOME PUPPETS.
Wait for the elections to get over. Then go for a renewed demand of not less than the 7th pay commission else indefinite strike. We are cheating anyone nor are we beggars. We are demanding what is just and right.
Banks are centralized but why not the central pay? Why should bank have different pay scale? Bank employee is also be treated as a Central govt employee?
That should be our demand. Then only we can achieve something.
After election no one will ask anything,when at the time of getting vote they are not in favor of us,then dnt think after that they will do anything,lets go for indefinite strike in this way we can get smthing.
Are we not aware of old,retired ,dishonest and leggard UFBU leaders,any body can bet they may not even clinch 15% increase,mass resignation,demand for bank pay commission would be solution.UFBU will further make the cadre to lead a miserable life...
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