`Wage revision demands of bank employees should be settled expeditiously’

Ludhiana, October 9, 2018: On the call given by United Forum of Bank Unions (UFBU), bank Workmen and Officers are holding massive demonstrations opposing unwarranted Merger of 3 Banks. As per decision, United Forum of Bank Unions (Unit : Ludhiana) today held a massive demonstration in front of State Bank of India, Fountain Chowk, Ludhiana. Com.Naresh Gaur, Convener, United Forum of Bank Unions, Com.Pawan Thakur President Punjab Bank Employees Federation (Ludhiana), Com.J.P.Kalra, President State Bank of India Officers Association, Com.Iqbal Singh Malhi, Dy.General Secretary, SBI Staff Association Com. Harvinder Singh, Sr.Vice President, Com. Rajesh Verma, Vice President, Punjab Bank Employees” Federation, Com. Ashok Arora, AIBOC, Com. J S Mangat, Dy. General Secretary, State Bank of India Officers’ Association, Com. K K Khullar, Regional Secretary SBI Staff Association, Com. Gurmeet Singh and Com. Chiranjeev Joshi from AIBOA addressed the bank employees. While addressing the bank employees, leaders of UFBU said that the Government is advocating their theory that India needs large-sized Banks and hence this proposed merger. It is a tragedy that when the 10th death anniversary of Lehman Brothers is being observed this month, and the myth of “too big to fail” has been exposed, our Government is talking of large-sized Banks. Big Banks would imply big risks and Indian Banks which represents the people’s money cannot afford to take such risks. We need strong banks and not big banks. Adding, they said, “we all understand that under the Government’s agenda of banking reforms, merger is only a prelude to privatisation of Banks. Hence the Government’s move needs to the opposed and resisted. Government announced its decision to merge three Banks viz. Bank of Baroda, Dena Bank and Vijaya Bank into one single Bank. This is not a surprise altogether as this is part of this Government’s agenda to consolidate the Banks. But in India what we need is expansion of Banks and not consolidation and merger of Banks.” They said the only major problem in the Banks today is the huge and mounting bad loans and merger/amalgamation of banks is no solution to recover these bad loans. Tough action including criminal action is required against the corporate defaulters and delinquents. Many big names are hitting the headlines about their involvement. What is needed is tough measures to recover the bad loans Already, the Government’s policy of Insolvency and Bankruptcy Code is resulting in huge haircuts for the Banks and the corporates are the beneficiaries. Scams like Kingfisher Mallya, Nirav Modi, Winsome Diamonds, Videocon are on the surface rocking the Banks. Out of 21 PSBs, 19 Banks are in loss on account of bad loans and provisions for bad loans. 21 PSBs put together, as on 31-3-2018, the total Operating Profit was Rs. 155,565 crores but due to provisions for bad loans to around Rs. 270,000 crores, there is a net loss of Rs. 85,000 crores. Thus, when recovery of bad loans and taking criminal action on all those involved in the scams is the top priority, the Government, as a camouflage, is going for the merger of the 3 Banks to divert the attention from alarming bad loans. The total bad loans in the 3 Banks, BOB, Dena Bank and Vijaya Bank is around Rs. 80,000 crores. Merger of these Banks will not help to recover the bad loans. On the other hand, the focus will be shifted to merger issue and that is the game plan of the Government.The Banks which have existed for nearly a century and have greatly contributed for the country’s economy, particularly after nationalisation of banks, are being treated in a whimsical manner as though these Banks are the handmaids of the Government. Firstly, there is no evidence that merger of Banks would strengthen the Banks or make it more efficient. Banking industry today is facing only one major problem, which is the alarming increase in bad loans. “We strongly oppose the decision of the Government and demand it to be reviewed and re-examined”, said the leaders. They urged that the wage revision demands of bank employees should be settled expeditiously so that the entire workforce in the Banks can concentrate their time and energy in addressing the multiple challenges facing our Banks and to restore the confidence of the people on our Banks.