RegisteredOfficers’ with RNI, Voice, Delhi Regn. JuneNo. KARENG/2005/14831 2016 1

408 Vol 34 - 12 June, 2016

With the declaration of the financial results of the last year; both have more than doubled). These Bank for the year ended March, 2016 on 18th May, figures are independent of other stressed assets we became a part of writing a new chapter – an categorised as Restructured Assets. Collectively, ignominious record - of registering a net loss for the the total stressed assets pose great threat to the first time in the 110 years’ history of Corporation Bank’s asset portfolio. Bank. Even during the worst financial crisis faced Apart from the NPAs, Bank is facing another major by the Bank during the early 90’s, it never went challenge. The growth in business continued to be red. We can take shelter under the argument that near to NIL, this fiscal too registering an increase of several banks in public sector have posted losses only 0.31% and deposits only by 2.92%. and a few, very huge in quantum. But it will not The Branches have not yet been able to adapt to salvage the dent at Corporation Bank as we had securing retail business on a larger scale. Bank, stood apart from the rest, always in the past. having grown with the bulk for years together It is not that the Bank has incurred losses on its in the past, the recent efforts to divulge the bulk operations. There had been a 2.23% increase and re-orient towards retail have not yielded in Operating Profits over last fiscal. That with a expected volumes. Though bulk deposits have mere 0.31% increase in total business and more remarkably come down from 51.10% in March, importantly, with a 3.27% reduction in Advances 2015 to 45.50% in March, 2016, the extent of (Average Advances however increased by 5.79%), the reduction has only been compensated by the the Bank has increased its Operating Profit is truly retail business with the total business remaining commendable. nearly static. The Bank suffered a major hit due to extra-ordinary The positive achievements during the year shall provisioning and thus landed into Net Loss of not be lost sight of. More importantly: Rs.506.48 crores (down 186.69%). The provisions a. CASA grew commendably from 19.72% in for bad and doubtful debts alone increased by 2015 to 22.14% in March, 2016. Though the 186.99% at Rs.3431.42 crores as against an Bank might have planned to achieve higher, Operating Profit of Rs.3095.02 crores. Gross NPAs the present improvement needs to be viewed reached a record level of 9.98% as against 4.81% positively and from the angle of nominal growth last March. Net NPA reached a level of 6.53% (3.08% of deposits over last year.

Editor Asso. Editor Members Advisor Edited and Published by Ekanath Baliga G. Raghuraman H.S. Vishwanath T.R. Bhat Ekanath Baliga Satish Shetty on behalf of the Owners : Printed by: Corporation Bank Officers’ M. Rajesh Dange Licensed to Post Under Organisation (Regd.) Codeword Process & Printers License MNG/128/2015-17 106, Lobo Prabhu Court Falnir, Mangalore - 575 001 & SK/MNG/WPP/7 Light House Hill Road, Mangalore - 575 001 e-mail: [email protected] Visit us @ our website:www.cboo.org Officers’ Voice, June 2016 2 b. Cost of deposits further improved from • The much awaited platform change has been 7.97% last year to 7.51% this year. eluding early implementation. The planned c. Reduction of bulk deposits (as stated above) gains of business after the transformation is another praiseworthy achievement. too thus have been delayed. Bank needs to d. The non-interest income of the Bank too surge ahead with more concrete and time- improved remarkably by 17.05% over last bound action to accomplish this ‘industry - year (from 1482.47 to 1735.16 crores). first’ project. The contributions from POS business, ATM • As known, business through technology Transactions and ATM Card renewal etc. only will be the future banking. The Bank are noteworthy – heralding a lucrative has already embarked upon this, launching source for future too. new products and improving upon the What next is the question troubling several existing ones. We need to give further thrust minds: to this which in turn will attract business • The NPA menace will be the major challenge and bolster our bottom-lines. to the Bank. The Bank needs to put all its For all these, the unstinted support from the energies in containing further increase of rank and file will undoubtedly be required. these NPAs on the one side and step up The Management needs to take all along- recoveries on a war-footing on the other. It with, with their hearts and souls put together. is relevant to mention here that CBOO had In the process of winning over everyone’s submitted a note to the then CMD in 2014 participation, the Bank management may also with a few suggestions from us to strengthen have to look into their immediate requirements the recovery mechanism of the Bank. and needs dispassionately. Any irritants at In the immediate past, the Management’s their satisfaction level, need to be removed with endeavours in recovery were more which the forward march will be eased. It will superficial than in gaining tangible results. be a ‘win-win for all.’ Collection of recovery data and tele-calling Lets work towards an early turnaround and from multiple points ruled the roost instead Together we can. of the much needed guidance and human support to Branches in recovery. This needs OV to be set right on a priority. • The role of Branches in mobilising retail C O N T E N T S business (both deposits and advances) Page No. needs to be overhauled in this direction CBOO News ...... 4 with specific reference to smaller branches. Swasti...... 7 The Bank opened branches extensively in Obituary...... 8 2014 and early 2015 with the fond hope Banking Round Up...... 8 of increasing the business in general and Article: CASA in particular. But the results were not on expected lines mainly because Why priority lending certificates won’t sell?.13 these branches were manned by either Grievance Redressal...... 14 inexperienced or unwilling officers as Miscellany...... 16 Branch Heads. On the other side of it, a few Retirements...... 18 Branches were provided with only one officer Discipline...... 22 (the Branch Manager) which too crippled the Article: Branch functioning. We need to extensively Consolidation of Public Sector Banks...... 23 broad-base the business spread, support Class Room...... 27 these branches in manpower, training, Circular Round Up...... 28 guidance and the like. Top Management Health Watch...... 31 needs to have a relook on branch expansion with single officer. In Lighter Vein...... 32 Officers’ Voice, June 2016 3

SRI P V B N MURTHY IS OUR NEW CVO

Sri PVBN Murthy, General Manager, State Bank in Mumbai and Chennai. He further became the of India has assumed charge as Chief Vigilance head of Taxation Department in SBI’s Corporate Officer of our Bank with effect from 11.04.2016 Office at Mumbai. For five years, he worked as on deputation, pursuant to the orders of the the head of Foreign Office of SBI in United States. Government of India, Ministry of Finance. He will He also worked as General Manager at SBI be in charge of the Vigilance Division. headquarters in Mumbai in charge of Shares and Bonds Department. A graduate in Science, Sri Murthy joined State Bank of India as a Probationary Officer in 1981. Born in October, 1958, Sri Murthy hails from He worked in several metro branches as Branch Andhra Pradesh. With a vast experience of 35 years Manager. He later moved as a Research Officer in in banking, our Bank will surely gain from his SBI’s Apex Training System at Mumbai. He headed expertise in the days to come. Large Corporate Credit Division and Forex Division CBOO wishes Sri Murthy a satisfying career in two of the largest branches of State Bank of India stint in Corporation Bank as its CVO.

An ‘unfair’ practice by banks A deduction of Rs12 from an individual’s bank account may seem inconsequential to most people, but “such a debit towards insurance premium without the account-holder’s consent amounts to deficiency in service,” ruled the Consumer Court, Tirunelveli. In its order, the court had directed a nationalised bank to pay Rs.10,000 as compensation for deficiency in service and mental agony and Rs. 4,000 towards cost of the case. Condemning the adoption of “such unfair trade practices” by a few banks, the Secretary of Coimbatore Consumer Cause, K Kathirmathiyon, said: “On a few occasions when customers questioned the deduction, the amount was refunded. Debiting thousands of accounts and later reversing the entry when a few voice their protest is unjustifiable. Many account-holders may not even be aware of such an irregular practice by banks,” the CCC Secretary said. Alleging that such suo moto debit is no mistake but a deliberate action, he said: “Debiting the account without the account-holder’s consent is a serious offence and crediting it back after representation does not absolve the bank of its illegality. The RBI, IRDAI and Central Vigilance Commission have already criticised banks for indulging in such an unethical practice.” While appealing to the account-holders to take up the issue seriously and lodge complaints with the RBI and the IRDA, Kathirmathiyon said that the CCC plans to take up the matter with the Government and, if necessary, go to court as well. -The Hindu Business Line, 03/05/2016

There is no true happiness in what you get without effort. – Panchatanthra Officers’ Voice, June 2016 4

and Molihabad, Hardoi, Athroli and Shahabad CBOO News Branches on 12th April.

BRANCH VISITS The functionaries interacted with members and staff who raised the following issues: Varanasi a. Need for air-conditioning Bhagwanpur and 1. Y Sudhindra, Treasurer, K S Karthick, Deputy Badokhar Branches (Rural). General Secretary and Shailesh Kumar, Area Secretary visited Akbarpur, Mahaur Goal, b. Need for dedicated ISDN line for Bhagwanpur Sultanpur and Sarai Kewat Branches on 11th Branch. April and Kheta Sarai, Maunath Banjan (Mau) c. Premises problems at Gayatrinagar Branch Mohammadabad – Gona and Azamgarh Branches warranting shifting of Branch. on 12th April. d. Need for an additional clerk at Shahabad and The members raised the following issues: Gayatrinagar Branches. a. ATM not working at Akbarpur Branch for long; - Sharad Dubey, Zonal Chairman AC too not in working condition in the Branch. 2. Devaraja B.P., Joint General Secretary, Uday b. Khet Sarai Branch located outside business Khade, Assistant General Secretary and Ashuthosh area affecting business promotion. Shukla, Activist visited Palia Kalan, Lucknow – c. Need to consider Sarai Kewat as a Hardship Sitapur Road, Fatehganj, Junabganj, Nawabganj, Centre due to lack of basic facilities. Gomtinagar and Sohraman Branches and interacted with members on 11th & 12th April. 2. Satish Shetty, General Secretary, Rohit D Rawal, Circle Secretary, Ahmedabad and Sundar Lal, Members expressed following problems encountered Zonal Secretary visited Sarai Swami, Natania Dai, by them: Nati Emali, Maldahia,Padoa, Mugahal Sarai, a. Water seepage in Palia Kalan. Ramnagar, Varanasi – Main and Sigra Branches on 11th and 12th April. b. Huge potential at Sitapur Branch and need for an additional officer. They interacted with the members who put forth the following problems: - R K Sharan, Zonal Secretary a. Link problems at Nati Emali Branch. Mangalore b. Lack of Marketing Team support for Ramnagar S Prakash Rao, Secretary, Benevolent Fund, K S Branch. Karthick, Deputy General Secretary, Panduranga Rao, Zonal Chairman and Vikram Nayak, Deputy c. Need for painting/renovation of Ramnagar Zonal Secretary visited Sullia, Vittal, Puttur – Main, Branch. Darbe and BC Road Branches on 01/04/2016. d. Urgent need for another officer at Varanasi- They interacted with the members on branch and Main. business related issues. - Sundarlal, Zonal Secretary - Bharat Kumar, Zonal Secretary Lucknow KOLKATA 1. K B Prasada, Joint General Secretary, N S 1. Ganesh Prasad Nath, Circle Secretary, Nibir Krishnaraj, Circle Secretary, Bangalore and Sharad Kanti Sen, Zonal Secretary and S N Jha, Deputy Dubey, Zonal Chairman visited Bhagwanpur, Rae Zonal Secretary and Narayan Dutta, former Zonal Bareily, Bhadokhar, Gouriganj, Gayathrinagar, Secretary, accompanied by Sri Kaushik Ghosh, Amethi and Bhetua Branches on 11th April

The height of candles may differ; but they yield the same light. It is not the position that matters; It is the ability that actually makes you shine. Officers’ Voice, June 2016 5 former General Secretary visited Tamluk, Deulia Rs.8.90 lakhs respectively; single officer branches). Bazar, Bagnan and Kamranga Branches on 1st d. Need for renovation of Bareilly Branch. April. - Amit Yadav, Zonal Secretary 2. Nibir Kanti Sen, Zonal Secretary, Rashan ZONAL COMMITTEE MEETINGS Kujur, Area Secretary and Narayan Datta, former UDUPI Zonal Secretary visited Currency Chest, CBB, Dharamtolla, Brabourne Road, Canning Street, Zonal Committee meeting of Udupi Zonal unit was Samali, Amtolla, New Alipur, Rashbehari held on 08/05/2016 at Udupi. The proceedings Avenue, Jadhavpur, Ballygunje, CAPS and ARMB were chaired by B.S. Krishnamurthy, Zonal Branches on 15th and 18th April. Chairman. Zonal Secretary, M. Jayaprakasha Rao, welcomed the members of the Committee. The They interacted with the members who raised the following issues were discussed: following issues: a. Transfers of Officers: ZC discussed on the a. Bandwidth problem at Samali resulting in transfers with specific reference to transfers uninstalling the PB Writer Kiosk. within the Zone received recently wherein b. Water logging in Jadhavpur branch during officers have been transferred to places other rainy season. than those requested for in HRMS; repatriation after completion of term is not considered while c. Need for a sub-staff and sweeper at Deulia transferring/ recommending these cases. Bazar Branch. b. Leave Matters: Officers and Branch Managers - Nibir Kanti Sen, Zonal Secretary are finding it difficult to avail leave. Even Meerut sanction of a day's Casual Leave is becoming very difficult. Leave is not sanctioned for 1. Sobha L, Secretary, Women’s Wing, Sanjay Hile, LFC and urgent personal requirements etc. Circle Secretary, Mumbai and Vipin Yadav, Activist Availability of relievers (in one officer branches) visited Agra – Main, Sanjay Palace, Kamianagar, is another impediment in availing sanctioned Shamshabad Road, Awas Vikas, Mathura, leave too. Vrindavan, Aligarh, Bulandshahar, Sadabad and c. Treatment to Officers: Several members Hatrash Branches on 11th and 12th April. Members expressed the concerns of a few Branch raised the following issues: Managers at the treatment received by them a. Need for a PTS at Sadabad Branch from controlling office during telephonic calls b. Need for better Branch premises at Agra – Main and personal meetings. (Present - very old premises) The ZC decided to take up these issues seriously c. Severe staff shortage at Agra – Main. with the Zonal Head and administration in ZO PAD. - Amit Yadav, Zonal Secretary d. Pending Branch Visits: Tentative schedules for 2. N.Vijayan, Assistant General Secretary, A K completing remaining branch visits for delivery Narayanamurthy, EC Member and F L Khan, of Conference bags and Service Condition Deputy Zonal Secretary visited Tillyapur, Manual were drawn. Rudrapur, Khatima,Kitchha, Khali Mahuwat, - M. Jayaprakasha Rao, Zonal Secretary Pilibhit, Bareilly - Main, Civil Lines on 11th April Belgaum and Haldwani, Gaujajali Bichli, Ramnagar and Kashipur on 12th April. The members raised the The first Meeting of the Zonal Committee of following problems faced by these Branches: Belgaum Unit for the triennial 2016-19 was held on a. Water seepage problem in Khatima Branch 26.03.2016 at Belgaum. The meeting was attended b. Urgent need for one more officer at Kichhaa and by 12 Zonal Committee Members and 04 other Kashipur Branches with good advances portfolio. activists. The meeting was chaired by Sri Mahadev Mangasulkar, Zonal Chairman. c. Need for another officer at Khali Mahuwat and Gaujajali Bichli (total business Rs.10.00 crores and Vinod Gaikwad, Zonal Secretary welcomed the Officers’ Voice, June 2016 6

Zonal Committee members. The main agenda was Administration, ZO. mobilisation of membership of clerical promotees The members of both teams were welcomed by and to discuss about the issues to be taken up in the Mrs. Hema. upcoming Zonal Consultative Committee Meeting DGM, Sri Raveendranath Hebbar, in his address scheduled on 28.03.2016. Zonal Secretary informed expressed his concern about the rising NPAs that depending upon availability of President & of the Zone and informed that it has touched a General Secretary, a meeting of members will be level of Rs.60.00 Crores from Rs.43 Crores as at arranged at Belgaum. December, 2015. He commended Bilgi branch for On the issue of membership development, he recording splendid recoveries. Acknowledging the informed that there are 19 non-members in good contribution of officers in the Zone, he said Belgaum Zone. He stressed for achievement of that the good performance in business growth and 100% membership through constant follow-up. He NPA reduction has been possible only because of requested Area Secretaries to develop close rapport wholehearted support of officers. He informed with officers in their respective areas and try to that efforts put in by many Branch Managers & bring in the non-members into our fold. He also ZO officers over last 3-4 months are yielding good requested the Area Secretaries and Deputy Zonal results in growth of SB deposits and NPA reduction. Secretaries to identify some needy institutions/ Reiterating the call of MD to popularize our IT organizations for help through SWASTI. products, he said that the IT products should be In his address, Zonal Chairman, Mahadev encouraged & used at staff level first and then Mangasulkar stressed upon the need for market the products to customers. He further membership development and discussed in detail said that Corp Bank has unique & committed work some of the methodologies to be used for convincing culture and everyone coming to Corp Bank should non-members. He requested all to be more active in emulate the work culture. organisational activities and suggested for keeping AGM, Sri. Devakar K said that Bank is in distress close rapport with members in the respective and all of us have to rededicate ourselves for branches of Area Secretaries. coming out of the difficult situation. He said in The ZC members placed before the Committee the the zone there are 700 stressed & probable NPA problems faced by a few branches in their area which accounts where close & constant monitoring is need to be taken up with the Zonal administration. needed. Expressing his unhappiness over the The Zonal Secretary informed the house that knowledge gap among few Branch Managers, he the relevant issues would be taken up with local said that quite a number of managers/officers are management in the ensuing ZCC Meeting and other not aware of their respective branch targets which issues where intervention of CO is required will be is not good. He hoped for the continuation of the informed to Central Office for taking up at HO level. good co-operation from CBOO and support from The meeting concluded with vote of thanks by its members. Sri Chandrakant Kamble, Area Secretary. CM, Sri R S Deshpande, appealed to all to develop - Vinod Gaikwad, Zonal Secretary better understanding of our IT products and popularize the products among customers. He ZONAL CONSULTATIVE COMMITTEE MEETINGS said cross-selling of other products is a must. He BELGAUM reiterated that the Zone is recording good growth ZCC meeting for Belgaum Zone was held on 28- but may fall short of targets in a few parameters 03-2016 at Zonal Office, Belgaum. The CBOO for the reasons well known. team consisted of Mahadev Mangasulkar, Zonal Representing Organisation, Zonal Secretary, Chairman, Vinod Gaikwad, Zonal Secretary and Vinod Gaikwad thanked the Zonal Management for Nagaraj Deshnur, Deputy Zonal Secretary. Local convening the ZCC meetings regularly. He assured management was represented by Deputy General full co-operation of officers in all the business Manager and Zonal Head Sri Raveendranath Hebbar, development initiatives of the Zone. Sharing the Sri Devakara K., Assistant General Manager, concerns of local management for not achieving Sri Ravindra S. Deshpande, Chief Manager and some of the business targets, he stated that the Mrs. Hema D., Officer – in - Charge, Personnel Zone is poised to report growth of over Officers’ Voice, June 2016 7

20% in overall business increase and Zone will achieve decent growth of around 26% in Agriculture Swasti portfolio and total advances. He informed that the Chennai Zonal unit undertook SWASTI activity Zone would have achieved minimum 7 parameters, on 28.04.2016 at Panchayat Middle School, had HO cleared 2-3 proposals pending for last Chemmencherry village on the outskirts of 2 months. He said the growth achieved can be Chennai. termed as impressive in the wake of tepid economic scenario prevailing in the country particularly in It is a Government school started in 2006 and North Karnataka which is facing drought - like having around 1000 children studying up to 8th situation. standard with a teaching staff compliment of 27. He referred to a few instances of indiscipline among The school had been severely affected in the recent a section of staff and rude behavior with superiors floods in Chennai (in 2015). SWASTI donated three in some of the pockets like Raichur, Gulbarga and cabinets, one office table and ten fans valued at Bailahongal etc. and lack of immediate action in Rs.31500/- such cases. This is sprouting negative impact on work atmosphere in Branches, affecting the routine work as also business. CBOO also highlighted the following issues: (1) ATM shutdown problem particularly at Sindagi branch for more than 15 days. (2) Problems faced by small branches such as Turkar Shigehalli, Belwadi, Khodanpur & several rural branches in providing cash for ATMs attached to these branches. (3) Problems faced in cash remittance at some branches with no permanent sub-staff (as B. Sridhar, Joint General Secretary, addressing confirmed sub-staff is required for undertaking A function was organized at the school premises for Cash Remittance). handing over these items. B. Sridhar, Joint General (4) Some of the branches are made to pay ATM rent Secretary, P.Rangarajan, Circle Secretary and K R even without ATM being commissioned/started Bhaskar, Zonal Chairman were present. functioning – Sindagi & Lingasugur branches. (5) Problems in getting repair/replacement of UPS batteries during AMC/Warranty period. Even when 1 or 2 batteries are out of order (which report of engineer corroborates), the service provider is replacing entire set of batteries which entails huge and unnecessary costs. (6) Need for repair of Glow Sign Boards (when there are problems like one/two LED lights not working or some minor faults) instead of replacing entire sign board. (7) Problems faced in case of seizure of vehicles Our functionaries with items donated in the districts of Gulbarga, Yadgir, Raichur & Bidar due to absence of empanelled seizure The School Headmistress welcomed the CBOO agents from these districts (every time the work representatives, explained the damage caused is allotted to seizure agents from Belgaum who in recent floods and lauded the noble activity of are charging heftily). CBOO in providing the cabinets and other items which would immensely help the school. In the end vote of thanks was proposed by Mrs. Hema D., Assistant Manager, Personnel Administration, ZO. CBOO representatives also spoke on the occasion. - Vinod Gaikwad, Zonal Secretary - K R Bhaskar, Zonal Chairman Officers’ Voice, June 2016 8

obituary banking Round up

1. Smt. Pushpa Vasant Bad loans of private banks balloon 62.5% in Q4 Patkar, Assistant Manager, With the RBI tightening provisioning norms, the Panjim, Goa expired on bad debt problem is knocking at the doors of 23/04/2016. She was aged private sector banks too. Cumulative gross non- 44. She was unwell for quite performing assets (NPAs) of leading private sector some time. She hails from banks, including ICICI Bank, Axis Bank, HDFC Mhapan, Maharashtra. Bank, IndusInd Bank and YES Bank, have surged 62.5 per cent to Rs. 38,227.14 crore in the fourth Smt. Pushpa joined the Bank quarter of 2016 compared to Rs.23,519.89 crore in as a Clerk in March, 1997. She same quarter last year. was promoted as an Officer in JMG Scale I in May, 2009. During 19 years of The NPAs have grown 18 per cent sequentially from service, she worked at Oxel, Marmagoa, Goa – Zonal Rs.32,368.14 crore in the third quarter, ended Office and Britona. December 2015. The rise has been due to the Asset Quality Review (AQR) process ordered by the She is survived by her husband and two sons. Reserve Bank of India. As part of the AQR exercise, 2. Sri Ashish Chandan, the RBI had asked banks to review certain loan Assistant Manager, Publicity accounts and their classification over the third and and Public Relations, Head fourth quarter of FY16. Office breathed his last Standing on the edge? on 13/05/2016 (in a road ICICI Bank and Axis Bank accounted for 85 per accident). He was aged 30. cent share of the total gross NPAs of private banks Sri Ashish joined the Bank in as at the end of March 2016. ICICI Bank on its own May, 2013 at HO. accounted for 68.6 per cent of the total NPAs. The largest private sector bank’s gross NPAs in terms He belongs to Patna, Bihar. He of percentage to gross advances have jumped 202 is survived by his parents, a basis points year-on-year and 108 basis points brother and a sister sequentially, to 5.8 per cent. CBOO condoles the untimely death of both the A mixed bag members and prays Almighty to rest their souls Gross NPAs as a percentage of advances for other in eternal peace. banks vary. HDFC Bank has remained stable over the last four quarters; others have seen a rise of 8-30 Members are welcome to contribute articles basis points in the fourth quarter of FY16 compared for publication in Officers’ Voice. The writings/ with the first. Analysts expect the worst is over for compilations must be of their independent private banks on the NPA front — except for ICICI authorship - on banking, finance and economy. Bank and Axis Bank as the two have sizeable share of corporate loans (27.5- 46 per cent) in the total Articles received before 20th of a month will be portfolio compared to others. “ICICI Bank and Axis published in the next issue. The decision of the Bank will continue to witness the NPA pain. While Editorial Team will be final as far as publication Axis Bank has guided that it will take two years for is concerned. Members must send a photograph the mess to be cleared, we expect the same to take alongwith the article sent / mailed. at least six quarters for ICICI Bank. These negatives are not yet factored in fully into the stocks,” said -Editor Abhineesh Vijayraj, analyst at Spark Capital. - The Hindu Business Line – 30/04/2016

If the path is beautiful, ask where it leads to; but if the destination is beautiful, never mind about the path; keep walking. Officers’ Voice, June 2016 9

5-in-1: SBI Associates may be unified into a of Mysore, State Bank of Patiala and State Bank of single bank Travancore — on Tuesday approving resolutions to pave the way for their acquisition by SBI. Consolidation of banks is in the air yet again, with the boards of the five associate banks of State Bank In a filing with stock exchanges, State Bank of of India (SBI) set to meet in Mumbai on Tuesday. India said: “SBI is seeking ‘in principle sanction’ of Although no specific proposal relating to merger the Central Government to enter into negotiation or consolidation is listed on the agenda, the buzz with the subsidiary banks and Bharatiya Mahila is that the respective boards will discuss this Bank Limited to acquire their businesses including issue along with other hot topics such as the non- assets and liabilities. While the decision is purely performing loans situation and the Reserve Bank of exploratory at this stage and there is no certainty India-mandated asset quality review. in relation to our completing the acquisitions…” It added that no decision had been taken approving Rather than looking to merge them with SBI, the five any of the acquisitions and that the same would associate banks may discuss their unification into a be taken by the Bank’s Board after evaluation. single entity to consolidate their business potential The move, has, however, not gone down well with and ensure independent growth and progress, it is employees of the SBI arms and they have decided learnt. Should that happen, the combined entity to go on strike on May 20. will have total deposits of Rs. 5,00,845 crore and total loans of Rs.3,97,796 crore. - The Hindu Business Line – 18/05/2016

Board agenda Panel Set Up to Find Out Banks for Mergers

The board agenda for Tuesday’s meeting includes A 10-member committee is being set up by the “any other issues with the permission of the government to identify suitable candidates as Chair”, giving some credence to expectations of a it seeks to push consolidation among state-run discussion around consolidation. Finance Minister banks, which are 27, including five subsidiaries of Arun Jaitley is in favour of the five SBI associate State Bank of India. The proposed committee will banks banded into one bank so that together they have senior executives along with representation become stronger and viable, sources said. On their from the Reserve Bank of India, a Finance Ministry part, the 70,000 employees and officers working in official said. “The idea is to identify candidates for these five banks have also demanded unification. both mergers and acquisitions. There are some banks which had in the past evinced interest to take on smaller entities, so, that will also be discussed,” the official said. Earlier this month, Finance Minister, Arun Jaitley had told ET that there is political will in the country for professionalising the management of public sector banks, going in for consolidation, having board-governed banks, more competition - The Hindu Business Line, 17/05/2016 from private sector and running state-run banks SBI Seeks Centre’s Nod to Absorb Associate as private sector entities. The proposed committee Banks will also look at mergers from the perspective of creating one or two large banks by merging smaller The country’s largest lender, State Bank of India, banks. “Any consolidation among public sector said it is seeking the Centre’s nod to merge its five banks has to be done keeping in view factors such associate banks and the newly created Bharatiya as geography and technology platform, besides Mahila Bank with itself. This follows the Boards human resource issues. The committee will look of the Associate Banks — State Bank of Bikaner into these matters,” the official said. and Jaipur, State Bank of Hyderabad, State Bank - The Economic Times 29/04/2016

I hear and I forget. I see and I remember. I do and I understand. - Confucius Officers’ Voice, June 2016 10

Govt. looks at Rs.10000-crore stressed bank Sources said in the initial stage, NIIF will also look assets fund at taking over some attractive highway projects that NHAI is looking to sell, although the focus remains The Government is close to giving shape to the on green field infrastructure projects. Industry National Infrastructure Investment Fund (NIIF), players, however, said the government’s strategy with at least two dedicated components dealing may dilute the focus on other sectors given that with stressed assets of banks and clean energy, as infrastructure alone requires massive doses of part of the plan to set up what is being seen as investment. India’s sovereign wealth fund with an initial corpus of at least Rs 40,000 crore. - The Times of India, 28/04/2016

Sources told TOI that the fund-raising exercise will First small finance bank begins operations kick off as soon as NIIF gets its chief executive in the Reserve Bank of India on Wednesday notified that next few weeks. “We have shortlisted the candidates Jalandhar-based Capital Small Finance Bank and a final decision will be taken soon. With a CEO commenced its operations as a small finance bank in place, we hope to raise capital quickly,” said a with effect from April 24. The RBI issued a licence top-ranking official. As reported first by TOI on to the bank under Section 22(1) of the Banking November 16, the government is looking at a fund Regulation Act, 1949, to carry on the business of to deal with stressed bank assets, where viable small finance bank (SFB) in India. It is the first projects will be acquired at a discount, nursed back SFB to start banking operations. The Capital Small to health and sold to investors. The work on the Finance Bank has been set up by converting the fund has moved beyond the drawing board with erstwhile Capital Local Area Bank. Capital Local sources indicating that the initial size would be at Area Bank was one of the 10 applicants to be least Rs 10,000 crore. “That will be the minimum, given in-principle approval for setting up SFBs in it could be more. We will grow the size as we go September 2015. along,” said a source. According to RBI’s prudential norms for SFBs, Similarly, the government is looking at a $1 billion Capital Small Finance Bank will be required to (Rs 7,000 crore green fund), where state-run entities extend 75 per cent of its adjusted net bank credit such as Power Finance Corporation and REC may to the sectors eligible for classification as priority chip in with around 49% of the corpus, while the sector lending. Further, at least 50 percent of its remaining amount will be raised from overseas loan portfolio should constitute loans and advances investors. of up to Rs.25 lakh. The NIIF has been in the work for the past - The Hindu Business Line, 27/04/2016 year or so and the Government is in talks with Banks Board Bureau to begin selection of top several international investors, including Abu executives PSBs soon, Says Rai Dhabi Investment Authority and Rusnano, with which MoUs have been signed. Earlier, Singapore The Newly-constituted Banks Board Bureau will and Qatar-based funds had also shown interest right away start working on selection of Managing in the funds, where the Government will initially Directors and Executive Directors in public sector provide Rs 20,000 crore, with an equal amount banks (PSBs), its Chairman, Vinod Rai said. expected to come from global players looking to Selection of senior management personnel to fill invest in the lucrative infrastructure space. The in existing and upcoming vacancies in PSBs will fund is expected to reduce the pressure on banks, be an immediate priority for the Bureau, Rai told which have emerged as the main source of lending newspersons after a four hour meeting in the to the sector that typically needs resources for 20- Capital on Friday. 30 years, causing an asset-liability mismatch for Selection process the lenders which typically raise deposits for two- three years. In the coming weeks, the Bureau would have

You may find the worst enemy or best friend in yourself. - English Proverb Officers’ Voice, June 2016 11 to conduct selection process for at least three was on the bank’s board from 2013 till last week. Managing Directors (falling vacant this year) and Interestingly, he was re-elected as Director for about 13 Executive Directors in various PSBs, it is five-year term at the bank’s 88th annual general reliably learnt. Currently, there are public sector meeting (AGM) on September 29 last year. banks where the posts of second or the third Jayakumar has protested against the bank’s Executive Director (for certain big banks) are yet dismissal of PV Mohanan, erstwhile General to be filled. Secretary of the bank’s staff union. In his resignation Asked if the Bureau took any decisions at today’s letter to the Board Chairman, Jayakumar pointed meeting, Rai replied in the negative. He also did out that he holds no brief for Mohanan and has not want to commit to any timeline as to when the often been critical of his “unhelpful and irrational terms of reference of the Bureau will be finalized. attitude”. At the same time, he feels that the Although the government had appointed Banks management’s action of dismissal was unfair and Board Bureau, its terms of reference are yet to unjust and disproportionate to the offences he is be finalised and made public. “We are at a very said to have committed. preliminary stage. We will tell you about our terms According to Jayakumar, this act would only of reference, priority areas in the coming days. It’s alienate employees and bring down morale in the also too early to have made any decisions. We have organisation, particularly when they are faced with only had discussions today,” Rai said. difficult times. Arguing that it is not too late to be graceful, he asked the Chairman to reconsider the Participants dismissal (Mohanan was due to retire on March The Bureau meeting was attended by members 31), and suggested that the period of absence Anil K Khandelwal, a former chairman of Bank following the strike be treated as leave and modify of Baroda, HN Sinor, a former Joint Managing his termination order and release his dues as Director of ICICI Bank and Roopa Kudva, the former though he had retired on that date. Managing Director of CRISIL. Financial Services Jayakumar was, however, skeptical that his advice Secretary Anjuly Chib Duggal and senior officials will be received positively. Citing earlier instances of the Department of Financial Services were also where his advice was disregarded, he came down present at the meeting. heavily on the management — especially two - The Hindu Business Line 23/04/2016 officers at the senior level — terming them as having an outdated and “feudal mindset”. He At Dhanalaxmi Bank, boardroom battle gets said that they expected Directors to be “yes” men. more intense He added that when Directors chose to exercise Thrissur headquartered Dhanalaxmi Bank appears their right to dissent, they were soon subject to a to be witnessing a major boardroom quarrel. Two variety of indignities and withdrawal of elementary independent Directors — NRI businessman B courtesies, he said. What follows then is that Ravindran Pillai and former Chief Secretary of the ‘independent’ director is soon removed from Kerala K Jayakumar — have submitted their important committees and subtle and not-so- resignations from the Board during the course of subtle hints are given about how the RBI does not the last few months. think much of him. While Ravindran Pillai did not give any specific Jayakumar says the happenings in the bank have reason when he resigned in January this year, except made him sad and helpless and he did not want inconvenience due to busy schedule, Jayakumar, to be associated with the bank any more. When who put in his papers late last week (April 28), contacted, the bank management told Business did so in protest against the bank management’s Line that they are awaiting the Board’s approval for handling of labour relations. Jayakumar, who giving a clarification with regard to the resignation is holding the post of Vice-Chancellor of the of Directors. Thunchath Ezhuthachan Malayalam University, - The Hindu Business Line, 04/05/2016

A champion is one who gets up, even when he can’t. Officers’ Voice, June 2016 12

Banks to Earn Their Capital with Action capital allocation, the official said. The gross non- performing assets of public sector banks increased State-run banks seeking a share of the Rs.25,000- to 7.3% in December 2015 from 5.43% in March crore capital infusion by the Government will have 2015. to show some movement on bad assets before According to the Ministry’s estimate, state-run they can petition for funds. The Finance Ministry banks will require Rs 1.8 lakh crore of additional has told banks to step up recovery and is holding capital till FY 2019, of which Rs 1.10 lakh crore will meetings with individual banks on their capital have to be raised from the market and through sale raising plans and how they will be selling their of non-core assets. The government has budgeted Rs non-core assets. 25,000 crore for bank capitalisation in the current “We are holding consultations with banks on their fiscal as part of its Rs 70,000-crore capital infusion growth projections, credit disbursement targets plans till 2019.In his budget speech, Finance and other efficiency parameters such as low-cost Minister Arun Jaitley had said that the government deposits. Any capital allocation will be based on will provide additional capital if required by banks their overall performance,” said a Finance Ministry and will find the resources for doing so. “We stand official, aware of the deliberations. Recovery of non- solidly behind these banks,” he had said. performing assets (NPAs) will also hold substantial - The Economic times 28/04/2016 weightage while working out the matrix for

Employee suggestions saved Maruti Suzuki Rs. 281 crore in 2015-16 Corporates, by and large, either issue diktats or give tips to the staff for saving a penny a day. There are only a few that engage the entire staff in the exercise and encourage them to come up with ideas. Maruti Suzuki India (MSIL) is one such company, which saved around Rs.281 crore in 2015-16, thanks to an innovative “suggestion scheme” floated across its plants – from the top management to shop-floor workers – and implementing the good ones. During the entire year, the country’s leading passenger car manufacturer received 6,98,640 suggestions, which means that on an average, an employee gave around 38 suggestions. MSIL has a total employee base of around 15,000 at present. Though the cost-saving amount was its lowest in last five years, the company said this is good enough at a time when several companies are reeling under slowdown and the cost of running plants was getting higher. “At Maruti Suzuki, the ‘suggestion scheme’ is like second nature. It encourages continuous improvement through innovation and creativity at workplace for people across hierarchal levels,” Rajiv Gandhi, Executive Director (Plants), MSIL, told Business Line. Employees’ knowledge He said the guiding principle is that each employee, irrespective of their level, has the best knowledge on the area of their work. He knows best the high points as well as the pitfalls and is encouraged to look around and suggest improvements to enhance safety, quality and productivity, bring simplicity, save energy and save costs. For example, the trolleys carrying instrument panels were earlier covered with polythene sheets for protection from dust. After an employee suggested a permanent cover, it helped in elimination of scrap and enhanced trolley capacity. By doing so, the company saved Rs. 26,59,462 and also reduced the tractor trips (for transporting scrap) which in turn, saved another Rs.1,06,400, he said. “The employee who provides suggestions also helps in implementing them, which gives him a sense of ownership and pride. At another level, the “suggestion scheme” is a strong engagement tool to connect the workforce with the company’s progress,” Gandhi added. To connect with employees in regional offices and the head office, MSIL has in place an online portal ‘Sujhav Sangrehika’, where ideas from different departments are captured. Real time updates It gives a real- time update on an employee’s suggestions and is also an employee-engagement tool, as it seamlessly integrates employees at all levels on a common platform. As more and more young employees join the company, it is this culture of suggestions that will give them a sense of ownership in projects and help them align themselves with the company goals and objectives, Gandhi added. - The Hindu Business Line, 27/04/2016 Officers’ Voice, June 2016 13

- Ashutosh Kumar Tripathi

If the Reserve Bank is to be believed, the new achieve the 18 per cent agriculture target in 2014, guidelines on buying and selling priority sector while 13 of the 20 private sector banks failed to lending certificates (PSLCs) would enhance lending achieve sub-targets for agriculture. Also, the over- to the categories under the priority sector by further performance by some banks in terms of meeting incentivising banks. agriculture target was not enough to meet the According to the new guidelines, banks unable to shortfall of others. meet their priority sector lending (PSL) targets and Flawed argument sub-targets can buy PSLCs issued by the banks that have over-achieved their targets. Accordingly, Given this scenario, the argument put forward by banks can issue four kinds of PSLCs — agriculture, the central bank with respect to the purchase and small and marginal farmers, micro-enterprises and sale of PSLCs to achieve sub-targets by respective those issued for overall lending targets. Thus, a banks becomes irrelevant. Unless all the banks bank not meeting any sub-targets will have to buy taken together are able to achieve the target of 18 the specific PSLC to meet its goal. As the bank’s per cent or more, a re-distribution by the purchase PSL achievement would be computed as the sum and sale of PSLCs will not help all the banks in of outstanding priority sector loans and the net meeting targets. Further, allowing banks to meet nominal value of the PSLCs issued and purchased, their priority sector targets and sub-targets by there will be no transfer of loan or risks. The buyer buying PSLCs would deprive thousands of farmers would pay a fee to the seller, which will be market from the opportunity to avail bank credit. Many determined. banks find it difficult to meet their PSL requirement as they find lending to priority sector a losing The central bank is reported to have advanced proposition, owing to the higher transaction cost the argument that PSLCs will drive priority sector of financing a large number of small-sized loans lending by leveraging the comparative strength of involving higher credit risks. different banks. For example, a bank with expertise in lending to small farmers can over-perform Under the new system, since the buyer has to only and earn benefits by selling its over-performance pay a fee to the selling bank, its margin will not be through PSLCs; another bank (better at lending impacted on account of buying out lower-yielding to small industry) can buy these certificates while priority sector loans (as is the practice currently), selling PSLCs for, say, micro-enterprise loans. and the fee paid will be treated as expense in the books of the buying bank; therefore, it may turn What the numbers reveal out to be a good business proposition for banks Currently, all banks with 20 branches or more scrambling to meet their targets. Hence, it won’t be must lend at least 40 per cent of their total loans a surprise if the shortfall continued unabated. With — adjusted net bank credit, or ANBC — to priority the shortage in meeting PSL targets going up, the sectors. They also have to meet sub-targets such as demand for PSL certificates would also rise. 18 per cent for agriculture, 7.5 per cent for micro- enterprises and 10 per cent for weaker sections. Finally, as in the past, the RBI move is in continuation However, the analysis of performance of public of its strategy to facilitate the banks to achieve the sector banks reveals that the shortfall from the same quantitative targets without compromising targeted level of 18 per cent for all PSBs ranged the profitability of the business. Consequently, over between 2.5 to 3.5 percentage points between 2001 the years, the priority sector credit has become just and 2007. a set of numbers regularly modified by the RBI; it lacks focus and rationality. In India, where out of Though the target level of 18 per cent was virtually the 140 million farm families only 50 per cent have achieved between 2008 and 2010, the period access to institutional credit, the PSLCs scheme afterwards — 2011-14 — witnessed a decline would cause more damage to distributional justice. in the share of agriculture in total advances. The performance of private sector bank in terms (This article was published in The Hindu Business of meeting agriculture targets was even worse. Line - on 23/04/2016. The writer teaches at National Further, more than half the PSBs (16 of 26) couldn’t Institute of Bank Management in Pune) Officers’ Voice, June 2016 14

representatives contended that the distance grievance redressAL between two places is less than 70 K.M.s and approved transport operators would not be An officer employee, on his transfer from the place available to shift the belongings; hence the service of work to the transferee place (which is within 70 of local transport operator was used. Further, K.M.s), shifted all his belongings, submitted TA Bill they contended that although the cash receipt was claiming travelling expenses and freight charges not enclosed, the Lorry Bill clearly contained the and submitted the relevant lorry transport bill. The words, “Freight Charges Paid.” (Out of the words Zonal Office sanctioned the Travelling Expenses printed on the bill – Freight Charges “To Pay” and and disallowed the freight charges claimed by the “Paid”, “To Pay” was cut/ cancelled). Hence the Bill employee quoting, “Lorry Receipt does not contain shall be sanctioned. the authenticity seal of the Transport Agency” and also that the officer did not enclose the Cash Management representatives did not agree to the Receipt issued by the Transport Agency. Aggrieved views expressed by the Union Representatives. by the decision, the officer referred the case to the However, it was finally decided to give direction to Grievance Reddressal Committee. Zonal Office to sanction the freight charges, if the employee would produce the duly authenticated In the Grievance Committee, the Union cash receipt from the transport operator.

SRI KAMALAKAR NAYAK RETIRING

A voice at Central Office which could for the Organisation – the common have always been heard over phone cause. He served at Mangalore – Poonja (in replies) even after 8.30 or 9.00 P.M. Arcade, Manipal, Mumbai – Worli (then will cease to be, after 30th June, 2016. Bhat Bazar), Pernal, Malpe, Mangalore Sri K Kamalakar Nayak, former office- – M G Road, Ajekar, Udupi – Main, bearer of CBOO will retire on that day Regional Office, Nipani, CRMD – HO after serving for 39 years in Corporation and Thirthahalli. Bank. Kamalakar is truly a “Kaam Kar” Mr. Kamalakar entered the EC as the Nayak for CBOO. Posts never mattered Regional Secretary of Udupi Region for the tireless and devoted worker in (undivided then) in August, 1998. He Kamalakar. Execution of the assigned later moved out of EC before his transfer task and completion of the allotted to Nipani. He again entered EC as the work in as perfect a state as possible, Head Office unit’s Regional Secretary in June, were of utmost importance to him. He would often 2005. He headed the HO unit during the most say – “I do not want any post; you tell me the turbulent period from 2006 to 2009. He was co- work you want me to do.” He proved it verbatim opted as Assistant General Secretary in August, by continuing his work at Central Office even after 2010 and later as Treasurer in December, 2011. January, 2016 when he opted out of EC in the face In January, 2013, he was nominated as Assistant of the impending retirement. General Secretary and later co-opted as Secretary, When it came to CBOO work, everything else is SWASTI in March, 2014 (which he continued to secondary to Sri Nayak. His leadership courage was hold till January, 2016). in full exhibition when he led the HO unit during Sri Kamalakar joined the Bank as a clerk in 2006-09. He led the Reception Committee of 17th November, 1977. He became an Officer in JMG Triennial at Mangalore held on 12th & 13th August, Scale I in March, 1983. He, instead of opting for 2007 as its Secretary. The Committee planned and promotions – the individual cause, preferred to work executed the work very meticulously

Strong people make time to help others, even if they are struggling with their own problems. Officers’ Voice, June 2016 15 to the appreciation of everybody. Kamalakar was that he had left the seat without prior permission mainly instrumental in planning, organizing and from his superior. Unfortunately, terrified by the manning all the related works. The unplanned terror unleashed by administration, the superiors and suddenly decided demonstration held at Head in CRMD (where Kamalakar was then working) Office on 13th August was historic and awesome. substantiated Management allegations and 2009 was another testing time for CBOO as also the witnessed against him. All the four were punished Head Office unit. In the aftermath of the vindictive with severe increment cuts (!) actions of the Management during 2009 transfers, However, the succeeding administration was two Deputy General Secretaries of CBOO were reasonable enough to reduce (though they too were transferred from Head Office – with the sole motto helpless to fully reverse previous happenings for of keeping them away from active CBOO work. A fear of rebuke) the punishment. But the valiant memorandum was submitted by all the Regional commanders of CBOO braved their chest to the units to the Regional Heads to reverse the vindictive atrocious and punitive bullets of the then self- transfers in general and the office-bearers’ in righteous and repressive Management. They never particular. At Head Office, led by B Chikkanna, complained – rather accepted it as a prized trophy Regional Chairman and Kamalakar Nayak, Regional for a selfless act. Secretary, the members of the HO unit gathered in front of the CMD cabin passage on 9th June, 2009. The Executive Committee decided to compensate The RC & RS sought an appointment from the CMD the monetary loss to both these functionaries to meet and hand over the Memorandum. The then consequent upon the transfer and disciplinary CMD, Mr. J.M. Garg refused to meet or accept the axing. But, true to their indomitable character, Memorandum and directed it to be handed over to they refused to accept any assistance and braved the Secretariat. the punishments smilingly. Kamalakars and the Chikkannas (and equally Shashidhars and But more vindictive acts followed thereafter. The Prabhus) have made CBOO strong and all of us Head Office was turned into a fortress with additional proud. security guards and also a small contingent of police force – to avoid any violence/subversive activities Kamalakar was born on 1st July, 1956 at by CBOO members – an unbelievable guess work of Baggarabettu near Kalyanpur, Udupi to proud the then satraps in administration (Reinforcements parents – Late Sri K Laxman Nayak and Smt. were also posted at the residence of the CMD – as Anasuya Nayak. He completed his primary and if CBOO would carry out guerilla attacks). People higher school studies at Hindu Higher Primary were barred from movements within the building. School, Kemmannu and Government Fisheries P U Practically a reign of terror and fear loomed. College, Kemmannu. With PU studies, he was later graduated in B. Com at MGM College, Udupi. B Chikkanna was transferred all the way to Vizianagaram – the North Eastern tip of Andhra With his retirement, CBOO will be deprived of an Pradesh, bordering Orissa. Kamalakar was ardent member, an outspoken functionary and a transferred and relieved to Thirthahalli. Another devoted worker. He would always express his views two hapless and innocent officers (Sri N Shashidhar with frankness – without fear or hesitation. He was & Sri P. Balakrishna Prabhu) too were transferred an excellent desk operator – accomplishing any only to instill fear in the psyches of the members. work, he was expected to. As Secretary, SWASTI, It was a history of sorts in Corporation Bank when it goes to his credit having been instrumental in the transfer order of Sri Shashidhar contained undertaking a record number of projects at various his (unceremonious) relieving also. Both these corners of the country. leaders were proceeded against by PAD imposing CBOO WISHES KAMALAKAR A HAPPY, HEALTHY, on them Major Penalty Proceedings and remaining PEACEFUL AND CONTENDED RETIRED LIFE. two – under Minor Penalty. Both the charges were MAY HIS TRIBE FLOURISH. very flimsy. Against Kamalakar, it was alleged

There are three kinds of people in the world, the wills, the won’ts and the can’ts. The first accomplish everything; the second oppose everything; the third fail in everything. - Eclectic Magazine Officers’ Voice, June 2016 16

institutions and companies, which amounted to miscellany about Rs.1 lakh crore as of March 2015.

Telecom panel proposes VRS for MTNL employees Legal route above 50 years of age Like banks, the insurer also appears to be The inter-ministerial panel Telecom Commission taking legal recourse to recover its mounting bad (TC) on Saturday decided to offer a voluntary loans. According to data published by the Credit retirement scheme (VRS) to Mahanagar Telephone Information Bureau of India (CIBIL), LIC has Nigam Ltd (MTNL) employees who are 50 years of filed 70-odd cases against defaulters who owed age and above, to save costs. “Government can it about Rs. 8,200 crore as of December 2015 (in save around Rs.500 crore-Rs.600 crores in a year the case of loans above Rs. 1 crore). Among its top by giving VRS to some employees of MTNL. It can defaulters are Deccan Chronicle, Hamco Mining save up to Rs. 300 crores every year from its assets and Smelting, Punjab Wireless, Tulip Telecom and such as buildings and towers by renting them Padmini Technologies. The insurer has filed these out, more deployment of CCTV cameras with local cases only in the last 12 months, as a last resort authorities,” a senior Government official privy to to recover loans. As per the CIBIL data, LIC did not the meeting said. file any cases until March 2015, when its defaulters The official said the government would spend owed it about Rs.1,700 crore. around Rs. 2,000 crores for this purpose (VRS). - The Hindu Business Line, May 2, 2016 MTNL has around 46,000 employees, 26,000 of whom will be retiring in the next 10 years. Therefore, Central staff may be allowed to invest 50% in the government thought of saving costs by giving equity under NPS the VRS option to 20 per cent of its employees who Pension regulator proposes to allow over 16 lakh are above 50 years of age. The proposal will go to Central Government employees who are members the Cabinet for approval in the next few days, the of National Pension System (NPS) to have the official said. flexibility to choose their investment options and - The Hindu Business Line – 30/04/2016 allocate at least 50 per cent, if not more, of their portfolio to equities. The move is part of Pension LIC itself has bad loans of well over Rs. 12,000 Fund Regulatory and Development Authority’s crores: (PFRDA) plan to harmonise investment options for While a lot has been said about the rising bad NPS for Central Government and private sector loans of banks, India’s leading life insurer, Life members. Insurance Corporation (LIC), has non-performing Under the current norms, Central Government assets (NPAs) of its own to worry about. According employees can allocate just 5-15 per cent of their to LIC’s 2014-15 annual report, it had gross NPAs portfolio to equities while the remainder is put amounting to 3.3 per cent (Rs.12,230 crore) of its in fixed-income securities such as Government total “debt” (the term it uses). This had risen to 4.23 bonds and corporate paper. In contrast, private per cent as of December 2015. These figures are sector members could, until now, invest half their close to those reported by a few banks during the portfolio in equities; and the regulator proposes December quarter — SBI (5.1 per cent of loans), to hike it further to 75 per cent. “With the shift of ICICI Bank (4.7 per cent), Syndicate Bank (4.6 per burden of funding the retirement income resting on cent) and Vijaya Bank (4.32 per cent). the employee, it is important to create a facilitating LIC’s bad loans have been steadily rising over the environment to enable him to plan his retirement last five years. In 2010-11, its GNPAs were at just judiciously through prudent investments based 0.95 per cent. LIC’s total “debt” of about Rs.3,70,625 on his risk appetite,” said the PFRDA in a concept crore as of March 2015, is actually higher than paper, adding that it would “have a cascading HDFC Bank’s loan book of about Rs.3,65,495 crore impact on the development of the capital market in the FY15 fiscal. Aside from its investments in and the development of the economy as a whole”. debentures and bonds, LIC has extended loans to the The NPS for Central Government employees, which Centre and State governments, banks and financial is mandatory for all entrants from January 1, Officers’ Voice, June 2016 17

2004, has 16.57 lakh members and assets under for handling the Government’s investments in Axis management of over Rs.48,000 crore. Bank, Larsen & Toubro and ITC through Specified Undertaking of Unit Trust of India (SUUTI). So far, “The proposal has been on the table for long and we notifications and guidelines for CPSEs have been have been discussing it with the Finance Ministry. issued by various central government departments Now, public comments have been sought, based on including the Department of Public Enterprises and which a concrete plan will be finalised in the next the expenditure and economic affairs departments couple of months,” said a Government official. of the finance ministry. - The Hindu Business Line, 01/05/2016 “There is a need to rationalise the various guidelines PF rate back at 8.8% which are issued from all across the government. Work now begins to rationalise all these guidelines Bowing to protests from trade unions, the Centre on and get them under a common platform,” said a Friday announced an interest rate of 8.8 per cent senior Government official. “DIPAM, with all other on Provident Fund deposits for 2015-16 against the stakeholder Departments, will now review all the Finance Ministry’s earlier recommendation of 8.7 guidelines related to bonuses, dividends, share per cent. This is the third time in two months that buybacks and restructuring with regards to public the Centre has withdrawn proposals relating to PF sector undertakings (PSUs) and fresh guidelines — ranging from tax and curbs on withdrawals, to a may be issued soon,” said another official. higher rate fixed by the Labour Ministry. - Business Standard, 26/04/2016 Announcing the decision here, Labour Minister, Huge data breach found at major email services Bandaru Dattatreya said the Finance Minister had agreed for 8.8 per cent interest to be given Hundreds of millions of hacked user names and for EPF workers for 2015-16. He said the Central passwords for email accounts and other websites Board of Trustees of the EPFO in February had are being traded in Russia’s criminal underworld, recommended 8.8 percent as ‘interim’ rate, which a security expert told Reuters. The discovery of would leave a surplus of Rs. 673.85 crore. Finance 272.3 million stolen accounts included a majority Ministry sources said the Labour Ministry clarified of users of Mail.ru, Russia’s most popular email service and smaller fractions of Google, Yahoo! and that earnings of the EPFO in 2014-15 exceeded Microsoft email users, said Alex Holden, founder estimates and this was the basis of the 8.8 per cent and Chief Information Security Officer of Hold rate recommended. Security. -The Hindu Business Line, 30/04/2016 The latest discovery came after Hold Security DIPAM may issue fresh Norms for PSU buybacks researchers found a young Russian hacker bragging in an online forum that he had collected The newly-named Department of Investment and was ready to give away a far larger number and Public Asset Management (DIPAM) is likely of stolen credentials that ended up totalling 1.17 to issue fresh guidelines this year for dividends, billion records. After eliminating duplicates, Holden buybacks, bonuses and restructuring of state- said, the cache contained nearly 57 million Mail.ru owned companies after a notification issued by the accounts - a big chunk of the 64 million monthly Government gave it wide-ranging responsibilities. active email users, Mail.ru said it had at the end of After a change in the rules of business posted by the last year. Mysteriously, the hacker asked just 50 Cabinet Secretariat last week, DIPAM (the erstwhile roubles-less than $1- for the entire trove, but gave Disinvestment Department) will now be responsible up the data set after Hold researchers agreed about for issuing guidelines to Central Public Sector him in hacker forums, Holden said. Enterprises (CPSEs) and providing them direction Yahoo Mail credentials are numbered 40 million, regarding dividends, buybacks, restructuring and or 15 percent of the 272 million unique IDs even mergers and acquisitions. discovered. Meanwhile, 33 million, or 12 percent, This is apart from the sale of minority stakes of these were Microsoft Hotmail accounts and 9 percent, or CPSEs and playing a major part in the Narendra Modi nearly 24 million, were Gmail, according to Holden. Government’s ambitious strategic disinvestment - The Hindu Business Line, 05/05/2016 plans. The Department will now also be responsible Officers’ Voice, June 2016 18

Scale II in April, 1984 and as Senior Manager retirements in Scale III in January, 2001. He became Chief Manager in SMG Scale IV in August, 2012 and A. SUPERANNUATION RETIREMENTS Assistant General Manager, Scale V in July, 2015.

The following members will be retiring from During 38 years of service, he worked at Ongole, the services of the Bank on attaining the age of Rajahmundry, Dulla, Head Office - ARDD, Advances superannuation on 30th June, 2016: Department, Chennai-Regional Office, Sadapuram (Aarekal), Adoni, Jabalpur, Head Office – PSLD, 1. Mr. C V Krishnaraj, Assistant Manager, Bangalore – Financial Inclusion Division, Circle Mangalore Kavoor (Mangalore Zone) Office and Zonal Office, Bangalore - North. Sri Krishnaraj joined the Bank as a clerk in March, 1977. He was promoted as Officer in JMG Scale I 5. Mr. K P Achaiah, Deputy General Manager in July, 1983. Zonal Office, Tiruchirapalli During 39 years of service, he worked at Sri Achaiah joined the Bank as a Clerk in October, Kushala Nagar, Hassan, Chickmagalur-RRB, 1978. He was promoted to Officer cadre in JMG Shanivarsanthe, Head Office – PPMD, SSD, Scale I in October, 1985, as Manager in MMG Scale Mumbai - Ghatkopar (West), Manipal, Mangalore- II in December, 1994 and as Senior Manager in Pandeshwar, Rama Bhavan Complex, M. G. Road, Scale III in October, 2001. He became Chief Manager Belgaum – KLS and Mangalore - Zonal Office. in SMG Scale IV in February, 2007 and Assistant General Manager in Scale V in June, 2010. He was 2. Ms. Silvia Pinto C Dias, Assistant Manager, elevated as Deputy General Manager to TEG Scale Benaulim (Zonal Office, Goa) VI in September, 2014.

Ms. Silvia joined the Bank as Typist cum Clerk in During 38 years of service, he worked at Somwarpet, March, 1977. She was promoted as Officer in JMG Virajpet, Mumbai-Shivajipark, Zonal Office, Scale I in October, 1985. Kushala Nagar, Head Office – PBD, Santacruz During 39 years of service, she worked at Mapuca, (East), Madikeri, Bangalore-Indiranagar, Srinagar, Goa - Regional Office, Nagoa, St. Jose De Areal, City, New Delhi - Paschim Vihar, Shimoga and Margao, Vidyanagar, Dandevado, Murida Cuncolim, Mangalore-M. G. Road. Assolna and Benaulim. 6. Mr. K Basavaraju, Deputy General Manager 3. Mr. Umesh N Bhat, Senior Manager, IAD, Head Zonal Office, Pune Office, Mangalore Sri Basavaraju joined the Bank as a Clerk in Sri Bhat joined the Bank as a clerk in February, November, 1978. He was promoted to Officer cadre 1978. He was promoted to Officer cadre in JMG in JMG Scale I in July, 1984. He became Manager in Scale I in August, 1984. He became Manager in MMG Scale II in March, 1994 and Senior Manager MMG Scale II in October, 1998 and Senior Manager, in Scale III in February, 2000. He was elevated as Scale III in July, 2014. Chief Manager in SMG Scale IV in November, 2004 and Scale V in June, 2008. He became Deputy During 38 years of service, he worked at Shimoga, General Manager in TEG Scale VI in June, 2013. Sirsi, Regional Office-Goa, Mumbai - Zonal Office, Kumta, Sirsi, Hosangady, Head Office – Recovery During 38 years of service, he worked at Head Office, Division, Mumbai - Santacruz (East), Mulund and Bhadravathi-B. H. Road, Mandya, Chikmagalur Hadinbal. – Main, RRB, Kushala Nagar, Mumbai-Versoa, Industrial Finance Branch, Mysore - Main, 4. Mr. Prarapa Venkatarama Kishore, Assistant Siddhartha Layout, Jallandhar, Bangalore - J. C. General Manager, Zonal Office, Kochi Road, Malleswaram, New Delhi - Connaught Circus Sri Kishore joined the Bank as AFO in Scale I in and Head Office - GBD. June, 1978. He was promoted as Manager in MMG

A wise man learns by the mistakes of others; a fool by his own. - Latin Proverb Officers’ Voice, June 2016 19

7. Mr. B Madhava Pai, Senior Manager, Hassan- Scale II in November, 1997 and Senior Manager in Salagame Road (Mysore Zone) Scale III in December, 2004.

Sri Pai joined the Bank as a clerk in December, During 37 years of service, he worked at New 1978. He became a Special Assistant in January, Delhi-Connaught Circus, Bantwal, Panemangalore, 1997. He was promoted to JMG Scale I as Officer Marmugao (Vasco-Da- Gama), New Delhi - Greater in November, 1998. He became Manager in MMG Kailash, Paschim Vihar, Uliyargoli, Mangalore Scale II in November, 2005 and Senior Manager, - ARMB, Rama Bhavan Complex, Thirthahalli, Scale III in September, 2010. Mumbai-Virar and Mysore-Kuvempu Nagar.

During 38 years of service, he worked at Head 11. Mr. Harischandra, Deputy General Manager, Office, Mangalore - Car Street, Heradi, Nandikuru, SSD, Head Office Udupi-Ambalpady, Madikeri, Shirthadi, Assolna, Sri Harischandra joined the Bank as a Clerk in June, Painguinim, Mangalore- Kankanady, Udupi – Zonal 1979. He was promoted to Officer cadre in JMG Office, Kuthpadi and Sravanabelagola. Scale I in July, 1984. He became Manager in MMG 8. Mr. S V Gopalakrishnan, Assistant Manager, Scale II in May, 1997 and Senior Manager Scale Hyderabad-Service (Hyderabad Zone) III in February, 2003. He became Chief Manager in SMG Scale IV in December, 2007 and Assistant Sri Gopalakrishna joined the Bank as a clerk in General Manager, in Scale V in June, 2010. He was February, 1979. He was promoted to Officer cadre promoted as Deputy General Manager in TEG Scale in JMG Scale I in July, 1984. VI in May, 2014. During 37 years of service he worked at Salem-Town, During 37 years of service, he worked at Mumbai- Chennai-Indiranagar, Cuddapah, Pallipalayam, Fort, Jamnagar, Sholapur, Gulbarga, Head Office - Surat, Chennai-CAPS, Hyderabad-CAPS, Bangalore HRD, Manuru, Madikeri, Valnoor, Raichur, Kolkata- - FTS Centre and Retail Hub. Salt Lake City, Bangalore-R.T. Nagar, Sarakki Layout, New Delhi-Vasanth Vihar, Dilshad Garden, 9. Mr. Mohan Bhat Bantwal, Chief Manager, Chennai - Zonal Office and Retail Loan Centre. Panjim Retail Loan Centre, (Goa Zone) 12. Mr. Srinivas Dangya, Senior Manager, IRMD Sri Bhat joined the Bank as a Clerk in February, (Fraud Monitoring Cell), Head Office 1979. He was promoted as Officer in JMG Scale I in July, 1984. He became Manager in MMG Scale II in Sri Srinivas joined the Bank in January, 1980 as March, 1997. He was elevated as Senior Manager in a typist cum clerk. He was promoted as Officer in Scale III in December, 2007 and as Chief Manager JMG Scale I in February, 2004. He became Manager in SMG Scale IV in March, 2013. in MMG Scale II in June, 2010 and Senior Manager, Scale III in May, 2016. During 37 years of service he worked at Mumbai – Mandvi, Mangalore-Padavu, Bunder, Bettageri, During 36 years of service, he worked at Mumbai - Head Office – Recovery Division, Mangalore – C. F. E. D., Nariman Point, Head Office, Shirthadi, ARMB, NRI Branch, Mumbai – Kalbadevi, Bandra Alangar, Karkala, Sullia, Marmugao (Vasco-Da- (W), Central, ZO - Maharastra, Udupi - Main, Gama), Doopadakatte, Mala, Head Office – Vigilance Zonal Office, Head Office – PS & RLD, Credit Card Division and IRMD. Division, Pune – Zonal Office, Kharadi and Head 13. Mr. Sanka Rama Rao, Senior Manager, Office – Compliance Division. Vijayawada-CCPC (Vijayawada Zone) 10. Mr. P Ashok Shenoy, Senior Manager, Sri Rao joined the Bank in April, 1980 as a typist Bangalore-Malleswaram, (Bangalore - North) cum clerk. He was promoted to Officer cadre in Sri Shenoy joined the Bank as a Clerk in April, 1979. JMG Scale I in May, 1986. He became Manager in He was promoted to officer cadre in JMG Scale I MMG Scale II in April, 1997 and Senior Manager in in November, 1988. He became Manager in MMG Scale III in June, 2004.

Don’t judge each day by the harvest you reap; but by the seeds you plant. – Robert Louis Stevenson Officers’ Voice, June 2016 20

During 36 years of service, he worked at 17. Mr. A Venkata Ramana Murthy, Chief Jamnagar, Hyderabad-Siddiamber Bazar, Guntur- Manager, Zonal Office-Thane Regional Office, Mumbai-Overseas, Ahmedabad- Sri Murthy joined the Bank as a clerk in June, Navarangapura, Zonal Office Hyderabad, 1983. He was promoted to JMG Scale I in February, Gandidham and Ahmedabad - Industrial Finance. 1996. He became Manager in MMG Scale II in July, 14. Mr. Faruki Faridoddin Kabiroddin, Senior 2004. He was elevated as Senior Manager in Scale Manager, Hyderabad-Mehdipatnam (Hyderabad III in September, 2008 and as Chief Manager in Zone) SMG Scale IV in November, 2015.

Sri Faruki joined the Bank as a clerk in November, During 33 years of service, he worked at Kakinada, 1981. He was promoted to Officer cadre, in JMG Guntur-Currency Chest, Guntur – Main, Scale I in November, 1999. He became Manager in Britona, Bastora, Kolkata-Rash Behari Avenue, MMG Scale II in October, 2006 and Senior Manager, Visakapatnam, Warangal-Hanumkonda, Nadiad, Scale III in August, 2012. Anand, Pune – Viman Nagar and Main.

During 35 years of service, he worked at Mumbai- 18. Mr. Borse Kashinath Chindha, Assistant Regional Office, Nasik, Jalagaon, Aurangabad, Manager, Jalagaon, (Pune Zone) Nizamabad, Bardoli, Kolhar, Aurangabad – Town Sri Kashinath joined the Bank as a Clerk in Centre, Zonal Office, Ahmedabad and Hyderabad- October, 1983 and he became Officer in JMG Scale Service. I in September, 2014. 15. Mr. M Seshachalapathy, Chief Manager, During 33 years of service, he worked at Mumbai- ARMB (Bangalore – South) Mulund, Jalagon and Dhule. Sri Seshachalapathy joined the Bank as a clerk in 19. Mr. Bherumal, Assistant Manager, Pataudi December, 1981. He was promoted to JMG Scale (Delhi - South) I in October, 1994. He became Manager in MMG Scale II in March, 2003. He was elevated as Senior Sri Bherumal joined the Bank as a clerk August, Manager in Scale III in September, 2008 and as 1982. He was promoted to officer cadre, JMG Scale Chief Manager in SMG Scale IV in August, 2012. I in February, 1999 and he became Manager in MMG Scale II in March 2015. During 35 years of service, he worked at Nipani, Kotturu, Rayadrug, Penumur, Bhavanagar, During 34 years of service, he worked at Delhi - Secunderbad - M.G. Road, Krishna, Hyderabad- Kamala Nagar, Greater Kailash, Bhikaji Cama Hyderguda, Kukatpally, Guntur, Noida, Bangalore Place, Gurgaon, Bahadurgarh, Rewari, Gurgaon- – Koramangala and Bangalore – South Zonal Office. Maruthi Kunj and Garhi Harsaru.

16. Mr. Goutham Rao Balguri, Senior Manager, 20. Mr. Sasihitlu Balakrishna, Senior Manager, Hyderabad-Currency Chest (Hyderabad Zone) Mangalore Currency Chest (Mangalore Zone)

Sri Balguri joined the Bank as Veterinary Officer Sri Balakrishna joined the Bank as a clerk in Scale I in January, 1982. He was promoted as September, 1982. He was a promoted to officer Manager in MMG Scale II in May, 1992 and as cadre, JMG Scale I in September, 1990. He became Senior Manager in Scale III in May, 2015. Manager in MMG Scale II in October, 1998 and Senior Manager in Scale III in October, 2006. During 34 years of service, he worked at Head Office, Udupi-Regional Office, Hyderabad-Regional Office, During 34 years of service, he worked at Head Guntur, Adivinekkalam, Ongole, Rajahmundry, Office – O & M, Kakinada, Gandepalli, Mumbai-D. Rayadrug, Zonal Office-Hyderabad, Dilsukh Nagar, N. Road, Head Office – RMD, Mangalore-Punja Currency Chest, New Delhi-Greater Kailash and Arcade, Gandhidham and Head Office – Marketing Karimnagar. and R & D.

In daily life, we must see – it is not happiness that makes us grateful; but, it is gratefulness that makes you happy - Unknown Officers’ Voice, June 2016 21

21. Mr. Gadde Koteswara Rao, Deputy General 1. Smt. Uma Jagadish, Manager, Hassan (Mysore Manager, Circle Office – Bangalore Zone) Sri Rao Joined the Bank as AFO in Scale I in June, Smt. Uma joined the Bank as a clerk in December, 1984. He was promoted as Manager to MMG Scale 1983. She was promoted to JMG Scale I as Officer II in November, 1997 and Senior Manager in Scale in February, 2001 and as Manager in MMG Scale II III in February, 2003. He became Chief Manager in September, 2008. in SMG Scale IV in December, 2007 and Assistant During 32 years of service, she worked at Kandali, General Manager, Scale V in June, 2010. He was Hassan - Regional Office, Hassan - Main, Banavase, promoted as Deputy General Manager in TEG Scale Chennarayapatna, Hassan – Salagame Road and VI in June, 2014. Hebbalu. During 34 years of service, he worked at Rayadurg, Beluguppa, Bathalapalli, Patibandla, 2. Sri Madhav Upadhya, Chief Manager, Mumbai Adivinekkalam, Aratlakatta, Bheemavaram, – Vile Parle (Greater Mumbai Zone) Visakhpatnam-Dwarakanagar, Mumbai-Bandra Sri Upadhya joined the Bank as a clerk in February, (W), Hyderabad-Banjara Hills, Vijayawada - Benz 1979. He was promoted as Officer in JMG Scale I in Circle, Bhubaneswar, Secunderabad - M. G. Road August, 1984 and as Manager in MMG Scale II in and Zonal Office-Nellore. October, 1998. He was elevated as Senior Manager 22. Mr. Balbir Chand, Manager, Moga (Ludhiana in December, 2014 and as Chief Manager in SMG Zone) Scale IV in November, 2010. Sri Chand joined the Bank as a clerk in January, During 37 years of service, he worked at Mumbai 1986. He was promoted to JMG Scale I in December, – Versoa, Ajekar, Chikmagalur – RRB, BID – HO, 2006. He became Manager in JMG Scale II in Udupi – Regional Office, Ahmedabad – S C Road, August, 2012. St. Jose De Ariel, Heradi, Thirthahalli, Kolkata – Gariahat Road, Mumbai – Meera Road, Udupi – During 30 years of service, he worked at Amritsar, Ambalpady and Shivamogga. Ludhiana, Jallandhar, New Delhi-Asaf Ali Road and Ponta Sahib. 3. Mr. Adi Subramanya R K, Assistant Manager, Mangala (Mysore Zone) 23. Mr. C S Venkataramu, Assistant General Manager, Zonal Office-Coimbatore Mr. Adi Subramanya joined the Bank in July 1982 as a clerk. He was promoted as an officer in JMG Sri Venkataramu joined the Bank as SSI Officer in Scale I in December, 1996. JMG Scale I in September, 1987. He was promoted as Manager to MMG Scale II in October, 1998 and During 34 years of service, he worked at Ponnampet, as Senior Manager in Scale III in October, 2006. He Mysore – Main, Mumbai – IIBD, Mandya, Bettageri, became Chief Manager in SMG Scale IV in February, Periapatna, Mysore – Siddhartha Layout and 2012 and Assistant General Manager, Scale V in Hullahalli. June, 2014. 4. Niral Topno, Assistant Manager, Ratu (Patna During 29 years of service, he worked at Jaipur, Zone) New Delhi-Connaught Circus, Bangalore - Regional Sri Niral joined the Bank as a clerk in June, 1983. Office, Regional Office-Andhra I, Hyderabad - Zonal He became a Special Assistant in March, 1995 and Office, Bangalore-M. G. Road, Zonal Office, Pune Officer in JMG Scale I in February, 1999. – IFB, Bangalore - Peenya and Coimbatore – SME Loan Centre. During 33 years of service, Sri Niral worked at Varanasi, Jamshedpur – Godown Area, Ranchi, B. VOLUNTARY RETIREMENTS Patna, Bhopal – Zonal Office, Damoh and Dhanbad. The following members retired from the Bank CBOO thanks them all for their support and voluntarily under Regulation 29 of Pension cooperation and wishes them a healthy, happy Regulations during April, 2016: and contended retired life.

“Don’t do an unworthy deed even in the face of death; Don’t give up a worthy deed even if it means suicide.” – Panchatanthra Officers’ Voice, June 2016 22

and obtention of requisite details of the VLAs/ discipline farmers/beneficiaries furnished by the borrower, was released. It was a busy VLB in a metropolitan city headed by The account became NPA very soon (May, 2010 - an executive in Scale V known for his devoted and early mortality). Upon the account becoming NPA spotless service in the Bank. That branch had no investigations took place. exposure to the agriculture credit till then. a. It was revealed that the borrower had remitted A borrower party met the Top (most – reportedly) loan proceeds through RTGS/ NEFT/Cheque Management representative of the Bank and a into the accounts of the beneficiaries/agents proposal was routed through that Branch. The /farmers and subsequently taken cash from proposal seeking Bank finance of Rs. 50.00 crores them and siphoned off the funds which could was for the contract farming proposed to be not have been traced in the normal course of undertaken at a place very far from the branch. transactions by the branch. Under the mechanism, the borrower will take loan from the Bank. A special account will be opened b. It further came to light that the borrower had wherein the loan proceeds will be credited as per taken similar loan from another around 23 the instruction of the borrower. The proceeds of Banks. the loan so availed will be credited to Village Level c. It was also revealed that the KYC particulars Aggregators (VLA) as per the list provided by the / land holding records etc. furnished by the borrower. The VLA will make onward lending to the borrower were fabricated. farmers out of this money and will procure castor After investigation, the Branch Head was charged seeds from them later. The so collected castor with various irregularities and Major Penalty seeds will be supplied to the borrower company. Proceedings were initiated against him – just 1 The company will repay the loan out of the export month prior to his retirement. The charge sheet of castor oil extracted from the procured seeds. appeared as if he was solely responsible for booking The loan will be closed in 9 months. The advances of the loan proposal and due to lack of monitoring at will be covered under the personal guarantee of his end, the money was siphoned by the borrower. promoter directors of the company. The entire The officer denied the charges and inquiry took advance will come under Priority Sector. place. On conclusion of the inquiry the DA awarded The proposal was forwarded as advised by the top a punishment of reduction of Pay (by that time, the most executive and was sanctioned too by Head officer had retired). Office. The sanction terms, as communicated in Lessons to Learn: the CSI never stipulated for conducting the KYC of its agents/farmers who were indirectly benefitted a. The appraising and recommending officials need by the said loan proposal. But on the same day (of to be extra cautious and ensure the credibility loan sanction), through a separate letter from one of the borrower, genuineness of the purpose of the representatives of the Top Management, the and after reasonably good market enquiry. branch was directed to undertake post - disbursal While lending is the bread for our livelihood KYC of certain portion of the VLAs/farmers/ and the growth of the Bank, anyhow lending beneficiaries. is a bane to officers and a dent on the Bank. Accordingly, the branch wrote letters to the b. Disburse the loans only after satisfying of addresses provided in the proposal papers and completion of all formalities which would also tried to comply with other directions of the ensure good health of the asset. Where certain superiors. But the party evaded the same on terms are beyond compliance, the same must one or the other count. This resulted in delay in be referred to the Sanctioning Authority – either disbursement. Soon, there was immense pressure for deletion, deviation or modification. from the headquarters of the Bank (and the top most executives) on the Branch to release the loan c. Do not come under pressure in respect of any amount (in May, 2009). Branch had no other option loan while booking the proposal or sanction or than to relent; the loan, after due documentation disbursement. Officers’ Voice, June 2016 23

- D. N. PRAKASH

If one has to choose a subject which is most frequently 1. It is believed that mergers would result in discussed in the financial sector for the past two greater efficiency due to economies of scale. decades, it will certainly be the Consolidation of 2. It will result in large banks which are “too big Public Sector Banks (PSBs). Ever since the release to fail” and could meet the future needs of the of the report of the Committee on Financial Sector economy. Reforms headed by Sri M. Narasimham, former Governor of Reserve Bank of India (RBI) who later 3. It will result in rationalisation of branch represented India in the IMF, the issue is being network and operations and thereby savings debated more often. The Committee was appointed in cost. by the Government of India in the wake of opening 4. It will be easy for the large banks to raise up of the economy in 1991. The Committee after capital in view of the huge capital requirements considering various aspects, had suggested merger of PSBs under Basel-III norms. of PSBs to derive the benefit of economies of scale and also to create large Banks with international There is no empirical evidence to show that mergers presence. It had recommended creation of three had always resulted in greater efficiencies. In India large banks with international presence, eight to ten it was always forced mergers to bail out a failed bank national banks and a large number of regional and in order to protect depositors’ interest. Ever since local banks. The trade unions in the industry and the opening up of the financial sector, except a few a section of the Bank Managements were opposing co-operative banks, no bank was allowed to fail. the idea. The owner of the Banks i.e., Government Whenever there were troubles in banks, RBI ‘found of India is unwilling to take any concrete steps a suitor’ in order to protect depositors’ interest and (except floating the news in the media) for fear avoid any systemic risk. In 1993, New Bank of India of political backlash. It had taken a stand that was merged with Punjab National Bank—the last mergers shall happen willingly between two Banks instance of a state-owned nationalised bank being and there cannot be any forced mergers. It is an merged with another. Later, Global Trust Bank, the open secret that none of the CMDs would like to poster boy of new generation banks which came lose their positions by getting merged with another as a result of the liberalisation in financial sector entity. Hence, the idea remained only as a subject and ultimately lost the trust of all stakeholders of discussion. Now the new NDA government under due to cow-boy banking adopted by its promoter, the leadership of Prime Minister, Mr. Narendra Mr. Ramesh Gelli, was merged with Oriental Bank Modi has given an impression through its actions of Commerce. Similarly, the failed small private that it is seriously considering the matter. The sector bank from Maharashtra, United Western Government had discussed the issue in the second Bank was merged with IDBI. In all the cases, the Gyaan Sangam held at Noida a few months back and acquiring bank had paid a heavy price and affected as a part of follow-up action, has now established their performance and efficiency for a number of Banks Board Bureau and appointed Mr. Vinod Rai, years subsequent to the mergers. It is only ICICI former CAG who is known as a task master to head Bank which took over Bank of Madura Ltd. and the Bureau. The Bureau would be responsible for HDFC Bank which took over Lord Krishna Bank filling up the vacancies for top posts in PSBs and and Centurion Bank which somehow managed to now has been given the mandate to suggest its scrape through. views on consolidation. The second argument that large banks are too big Pros and Cons to fail might appear theoretically good. But the failure of large banks in the West during the recent There are several Pros and Cons connected with crisis like UBS, Merril Lynch, Lehman Bros, etc. merger and consolidation. Let us examine the Pros:

A moment of patience in a moment of anger saves a hundred moments of regret. Officers’ Voice, June 2016 24 is an eye opener for the rest of the world to the to say, it is a PSB with private sector work systemic risks that large banks can create and play culture. Even with total automation, advanced havoc with their economies. technology and a generational shift, some of these aspects may become redundant; but the Another argument in favour of consolidation is fact that the Indian customer prefers human branch rationalisation and resultant reduction in interaction is an established fact. If two Banks costs of operation. While this may be true, it will with different work culture get merged, the work against the efforts of financial inclusion drive result will be counter- productive. of the Government. The fact that it is only the PSBs through their vast branch network spread across, 2. Employees and their trade unions are including the remotest corners of the country, that vehemently opposed to the idea of consolidation mobilised Jan Dhan Accounts within the shortest as they have genuine concerns regarding period and made the PMJDY Campaign a huge their job security and career progression success while its counterparts in private sector etc. Mergers may also result in reduction in were reluctant operators as these accounts will add employment opportunities in the industry. to their operational costs and affect profitability. These concerns, if not addressed properly, may result in employee demoralisation which will Yet another argument advanced is that large banks be a drag on the banks. would be able to raise the capital easily. Here, the issue is somewhat complex. The Government being 3. Overlap of Branch Network is another problem the owner is required to provide the necessary which may ultimately result in reduction capital. While the PSBs have contributed to the in number of branch outlets. While for the successful implementation of all Government Bank it may help to reduce the cost, the schemes and policies without looking into the customer may lose the choice and also affect aspect of profitability and cost thereto, Government the Governments’ efforts to achieve cent per cannot disown its responsibility of providing capital cent financial inclusion. While in the past, to PSBs. Except for the last one year, PSBs have overlapping of branches has resulted in been paying dividends to the Government and cut throat competition and better customer if at all there is any loss, it is due to the bulging service, it has added to the costs. What could NPAs the reasons for which are another matter be the ideal number of outlets in a given area for discussion. If the Bank can ask its borrower is a matter requiring in-depth study. Same is entrepreneur to bring in additional equity for the case with ATMs. funding its new projects, the Government being the 4. While creating big banks through mergers, it owner is duty bound to pump in additional capital should be remembered that through this process for the growth of the economy, as we have adopted we are creating monopolistic structures which a model of bank-led economic growth. Even if the would essentially work against competition Government wants to raise capital from outside, it and better customer service and put hurdles can do so by bringing all the PSBs under a holding in Government’s drive for Financial Inclusion company which can better manure capital raising and meeting the banking needs of the vast efforts. Consolidation is not the answer. rural poor of this country. It also contradicts Having seen the pros, let us examine the cons: the argument of the RBI and Government for issuing new bank licences (including Small 1. Firstly, each of PSBs has a unique character Banks and Payment Banks) also the proposed and work culture. While the banks have been policy of bank licences on tap. nationalised, each of them retained its regional flavour and customer base, leading to vide 5. Another major issue which will come up is the variation in customer service between banks. criteria for mergers. Is it merger of weak with For e.g., Corporation Bank has a unique work the strong banks? Is it going to be based on culture which made the regulator and owner work cultures? It is going to be difficult task.

Life is the most difficult exam. Many people fail because they try to copy others – not ealisingr that everyone has a different question paper. Officers’ Voice, June 2016 25

If a weak bank is merged with a strong bank, the the greatest asset of any bank. Given the experience strong bank may also eventually suffer as it of mergers, it may give opposite results than happened in the case of merger of Global Trust what was intended. Here we are reminded of the Bank with OBC. OBC which was rated most hilarious anecdote connected with George Bernard efficient till the merger suffered for many years Shaw. Once, the celebrated dancer, Isadore Duncan after the forced merger. wrote to George Bernard Shaw declaring that given the principle of eugenics, they should have a child 6. One more new problem that will crop up is together. “Think of it”, she enthused; “With my body compatibility of technology and operational and your brain, what a wonder it would be.” “Yes”, systems. Different PSBs have their CBS on Shaw replied, “But what if it had my body and your different technological platforms. Each PSB brain?” (except SBI group) has their own accounting systems and operational procedures. Making In the light of the above, the Government needs to these incompatible things to work under a tread a cautious path in this regard. Before going standardised system and procedure is going to ahead with its plans, it should create a conducive be a Herculean task as it involves customers environment by taking all stake holders especially and the human resources of the banks. the officers, employees and the customers of the banks so that any effort taken in this direction While the arguments in favour of consolidation have would result in a positive outcome. Can we expect its own perceived weight, the issues that are going such an approach from a Government which has to crop up on mergers outweigh them. The issues seldom displayed such inclusive approach in policy connected with incompatible cultures, technology matters including labour reforms? platforms and operational procedures need careful handling as it involves human resources which is (The writer is a former President of CBOO)

Dhanalaxmi Bank: Director K Jayakumar exposes top brass while resigning

K Jayakumar, a retired Indian Administrative atmosphere of self-deception coupled with utter Services (IAS) officer and former Chief Secretary lack of sensitivity and grace and poor appreciation of Kerala Government has resigned from troubled of the values of human resources management Dhanalaxmi Bank. The IAS officer’s hard and industrial relations, my self-esteem does not hitting letter not only exposes the lack of proper permit me to associate any longer with Dhanalaxmi management at the Bank, but also questions the Bank as a Director. Alarmingly enough, the Bank’s role of banking regulator, Reserve Bank of India business is shrinking, its revival plans are wobbling, (RBI). its employees are alienated and frustrated and The background to this is the anger and its HR policies and practices are amorphous and unhappiness of employees following the abrupt antiquated. Where an all-out effort to galvanize the termination of P V Mohanan, General Secretary of Bank by enlisting the total cooperation of the staff Dhanalaxmi Bank Officers’ Organisation (DBOO) to achieve a turnaround would have been a natural in June 2015, without specific reasons. Sources at instinct, Dhanalaxmi Bank, sadly enough follows a the bank insist that the real reason for his removal bullish HR policy characterized by insensitivity and was the expose of a fixed deposit scam to the tune intimidation. Will arbitrary transfers, termination, of Rs. 240 crore that is being investigated by the selective rewarding of loyalty and such myopic Economic Offences Wing (EOW) of the police. The strategies, which belie all modern human resource Bank employees struck work for 33 days at that time (HR) practices, bring glory to a Bank which has not causing the Government to intervene in the matter. been able to post a profit in the past several years? But clearly, the mood at the bank as well as its As a Director, I feel helpless and sad. For the above method of managing things are far from conducive, reasons, circumstances and facts, I resign from the as is evident from Mr. Jayakumar’s resignation and Board of Directors of Dhanalaxmi Bank”. the contents of his hard hitting exit letter. The former Chief Secretary also highlighted Mr. Jayakumar says, “In this depressing harassment meted out to a dissenting Director by Officers’ Voice, June 2016 26 the Bank’s Chief General Manager Sri Manikandan, administration will be missing. This is a systemic in particular and G Sreeram, Managing Director issue, which has to be addressed and set right.” and Chief Executive, to a lesser extent. When Mr. “Though the Bank could increase the capital Jayakumar raised objections on unceremonious substantially, the disadvantage is that the top two removal of P V Mohanan, who was working as executives of the Bank, the present MD and CGM Senior Manager in the Bank’s Recovery Department could develop a liaison with the investors, as it was at Thrissur, citing ‘loss of confidence’, he says, they, who were negotiating with the big investors for he “began to realize the outdated, if not feudal investment in the Bank through private investments mindset of the Top Management, particularly Mr. in public equity (PIPE) or qualified institutional Manikandan, the CGM and to a lesser extent Mr. placement (QIP). Using this clout, the present MD Sreeram, CEO and MD”. and CGM determine who shall be the Director of the “They seem to presume that the Directors have to Bank,” the Officers’ union had alleged. Although be necessarily ‘yes men’. Any note different from the Officers’ Confederation sent the letter to the RBI ‘his master’s voice’ is unacceptable. ‘Dissent with in November 2014, nothing much seems to have dignity’ seems to be unknown in their lexicon. Once changed in Dhanalaxmi Bank. a Director (who is paradoxically called Independent In his resignation letter, Mr. Jayakumar further Director!) is suspected to have different views, then said, “...I have lost faith in the capacity of this he has to be sidelined if not humiliated. Then the management and its ethos that have missed the transport department and other functionaries are wood for the trees. I wonder why the initiatives instructed not to show elementary courtesies even approved by the Board and the several suggestions about firming up travel plans for attending the Board and admonitions of the RBI have repeatedly failed meeting. Then that Director has to be removed from to yield the desired results. I am shocked by the important Committees. Then it becomes a tested abysmal lack of grace in dealing with difficult ploy to convey, in not so subtle ways, how poorly situations that ought to have been handled with RBI thinks of him. This style was in evidence when sagacity and foresight. I am pained at the short- a former Director, Mr. K Vijayaraghavan, who used sightedness that fails to regard the commitment to dissent and often criticize, was shunted out of and contentment of the employees as paramount the Board last year as his re-nomination failed to for the survival and success of the Bank in its receive support from the majority of shareholders,” darkest hour”. Mr. Jayakumar stated in his resignation letter. Commenting specifically on the dismissal of PV Earlier in November 2014, while raising the issue of Mohanan, the IAS officer mentioned that he always removal of Mr. Vijayaraghavan with the RBI, the All had been a strong critic of the union leader, but never India Bank Officers’ Confederation (AIBOC) too had doubted personal integrity of Mr. Mohanan. “I am no alleged misuse of power from the Top Management. trade union leader holding a brief for Sri Mohanan. AIBOC, in the letter had stated, “The case of removal But as an officer in the civil service for three and a of K Vijayaraghavan (former Director) is a classic half decades and having had several opportunities example. At any time, the Board can oust the to deal with powerful trade unions and service Chairman also by similar lobbying and may suggest organizations, I am of the view that the action of the name of their own person as Chairman. Instead the management has been unfair and unjustifiable. of the Chairman and the Directors determining The punishment of termination is unequal to who should be the MD and CGM, it is happening the offences committed. What is the offence that vice versa- MD and CGM are selecting the Directors has made nothing but dismissal from service the and the Chairman of the Bank. By selecting the only befitting punishment? What is the public/ Directors by this mode, there is big erosion in the organizational purpose this act has achieved? The ‘Independent Director’ concept in Dhanalaxmi only message it conveys to the employees is ominous Bank. This is a dangerous trend because the and depressing. When the Bank is going much needed ‘checks and balances’ in the Bank’s

Happiness is when what you think, what you say and what you do are in harmony. – M K Gandhi Officers’ Voice, June 2016 27 through critically difficult times, any decision that has been nothing but a thoughtless act that only fails to elicit the willing support and goodwill of the vindicates the obstinacy of the management and has employees is unwise and short sighted. A decision resulted in hardship and personal injustice for an that does not have a direct or indirect beneficial individual. The decision epitomizes utter disregard to impact on the institution cannot be morally justified. the morale of the employees,” Mr. Jayakumar had The insistence that Mr. Mohanan should be forced said. out ignominiously has not served any productive - Moneylife, 03/05/2016 purpose other than alienating the employees. This

class room

to check the profile of the credit seeker and offer P2P is the New Way to Lend Funds loans; the minimum interest offer gets selected. The RBI recently released consultation paper 4. What does the RBI consultation paper say? on Peer-to-Peer lending (P2P lending), an online platform that connects borrowers to the lenders. The RBI has proposed that these companies should have minimum capital of Rs 2.00 crore and they 1. What is P2P lending? should be classified as Non-Banking Finance P2P lending is when an individual raises funds Companies (NBFCs). It also says that they should directly from another individual or a group of not enter into any form of lending actives themselves individuals, at interest rate which is decided through and should act only as online platforms to get the mutual negotiation. The new form of P2P lending is borrowers and the lenders together. usually mediated through an online platform which 5. How are the firms reacting? acts as a meeting point for the investors and the borrowers. Some P2P lenders feel that initial capital requirement of Rs.2 crores is steep. But they are happy about 2. Why go for P2P lending platforms? the progressive attitude of the regulator. Also, with Individuals depend on banks or finance companies formal recognition of this sector, the companies for their regular credit needs. However, sudden are looking at increased valuations and more fund credit needs like medical emergencies and other infusion. personal requirements usually remain outside the - The Economic Times, 03/05/2016 purview of official credit channels and are mostly met by unofficial money lenders. Since money lenders charge exorbitant interest rates, online Despatch of new Manual on Officers’ Service peer-to-peer lending channels have gained traction. Conditions has been completed. Similarly, the Conference bags to be distributed among the 3. How does it work? members who have not been able to attend There are a host of online P2P lending platforms the Conference have been despatched to where an individual can get registered. He fills Zonal Secretaries for onward transmission to up an application form with personal details like members. Members who have not received income, family background, education which help may contact Zonal Secretary or K S Karthick, the platform decide on the credit worthiness of the Deputy General Secretary, Mangalore person. The platform also checks the social network (9686142470). sites to get a better insight of the person’s character. Once the loan is approved, investors are allowed - GS

The roots of education are bitter; but the fruit is sweet – Aristotle Officers’ Voice, June 2016 28

Succession Act gives equal rights of inheritance to circular round up Hindu males and females and recognizes the rights of female Hindus as coparceners. The eldest female 1. Drive for Accounts under “Unified Fee coparcener of an HUF can be its Karta. Collection Service” (CASA Division HO Circular No. 260/2016 dated 7. Instant Facility of PIN Generation for our 22/04/2016) Credit Cards A Special Drive to establish institution relationship (Credit Card Division, HO Circular No. 283/2016 dated through canvassing accounts under the “Unified 10/05/2016) Fee Collection Service” (introduced through HO Green PIN facility is introduced in an endeavor to Circular No.361/2015 dated 01/06/2015) has provide more convenience to Credit Card Holders. been launched for the period from 25/04/2016 to The Card Holders can now generate their own 31/07/2016. Award details and action points etc. Credit Card PIN instantly at any time. are furnished in the circular. 8. Special Package for Housing Loan Scheme 2. Financial Literacy Centres – Revised (RLD, HO Circular No. 284/2016 dated 10/05/2016) Guidelines (PSD, HO Circular No.273/2016 dated 02/05/2016) Branches to verify each of the CHOMP Loan account and ensure that all the insurance related annexures Revised guidelines on Financial Literacy Centres are obtained and held with loan documents to communicated vide the circular. Tailored approach avoid complications at later date while settling the to Financial Literacy, conduct of camps and insurance claims, if any. reporting mechanism furnished. 9. Import Data Processing and Monitoring Scheme 3. Web Archival Policy (Treasury & Investment Department, HO Circular No. (O & M Division, HO Circular No.276/2016 dated 285/2016 dated 10/05/2016) 04/05/2016) Import Data Processing & Monitoring System Web Archival Policy has been introduced to (IDPMS) is being introduced for effective monitoring assist the Bank in preserving the Bank’s Website of import transactions. The features of IDPMS, information. Validity Specifications, Entry Norms, Nodal Office, Extension of Time and other details Exit Norms and other details are furnished in the are furnished in the circular. circular. 10. Agrarian Distress in Various Parts of the 4. Changes to Some Key Definitions Pertaining County – Extending Relief Measures to Persons of Indian Origin (PIO) (Priority Sector Division, HO Circular No. 287/2016 (P & D, HO Circular No.277/2016 dated 04/05/2016) dated 11/05/2016) Changes to some key definitions pertaining to PIO In the backdrop of prevalence of wide spread – namely on PIO, Remittance of Asset, Expatriate Staff as per RBI Circular are furnished. Salient agrarian distress in various parts of the country, features of the Remittance of Asets Regulations are earlier guidelines issued for extending relief also given. measures in areas affected by natural calamities along with roles/delegated powers of Zonal Heads/ 5. Stand up India Scheme Circle Heads are reiterated. (MSME Division, HO Circular No. 279/2016 dated 07/05/2016) 11. Caution to be exercised While Undertaking Import Transactions Stand up India Scheme launched to facilitate Bank (Treasury & Investment Department, HO Circular No. loans between Rs.10.00 lakhs to Rs.1.00 crore 286/2016 dated 10/05/2016) to one SC, ST and one women entrepreneur per branch setting up a Greenfield Enterprise. Details In addition to the contents of HO Circular No. of the Scheme are furnished in the circular. 778/2015 listing out precautions to be taken while undertaking import transactions, additional 6. Legal Decisions Affecting the Bankers precautions communicated. Branches are advised (LSD, HO Circular No. 282/2016 dated 10/05/2016) to match the Rupee value of the Bill of Entry vis-à- The 2005 Amendment to Section 6 of Hindu vis the Foreign Currency amount. Officers’ Voice, June 2016 29

12. Beneficiaries of Pension Payments in Cash Under furnished in the Annexure to the circular for ready National Social Assistance Programme (NSAP) reference of the Branches. (GBD, HO Circular No.289/2016 dated 11/05/2016) 17. Designation of Wednesday as Tax Payers’ Day In order to ensure transparency and offer options (GBD, HO Circular No. 300/2016 dated 17/05/2016) to the beneficiaries of NSAP, it has been decided to facilitate the capture of Aadhar and mobile It has been decided to designate Wednesday (9.00 numbers while opening of bank accounts. A.M. to 1.00 P.M.) as Taxpayers’ Day wherein all heads of all offices in the field will meet the 13. MNRE Lighting Scheme for Installation of taxpayers/other stakeholders who will visit our Solar Photovoltaic Lighting System offices without any appointment in order to address (Priority Sector Division, HO Circular No. 291/2016 their grievances relating to Central Excise/Service dated 12/05/2016) Tax/Customs expeditiously. Details on the eligibility conditions, release of subsidy and consequences of misutilisation of 18. Lending to Priority Sector – Reiterating subsidy are furnished in respect of Ministry of Guidelines New & Renewable Energy Lighting Scheme, 2016 (Priority Sector Division, HO Circular No. 303/2016 – Capital Subsidy Scheme for installation of Solar dated 19/05/2016) Photovoltaic Lighting Systems for Bank Loans as Detailed guidelines on Lending to Priority Sector, per NABARD communication. incorporating all the instructions/clarifications 14. Observance of Third Saturday as Digital issued by Reserve Bank of India are reiterated in Banking Day the Annexure to the circular. (E-Business & Delivery Channels, HO Memorandum 19. Accounts Turning NPA due to “Non – No.73/2016 dated 10/05/2016) Renewal” and Other Technical Reasons – AVOID Considering the need to aggressively increase the (Credit Monitoring Division, HO Circular No. 304/2016 E-Transaction numbers, Bank will observe every dated 19/05/2016) 3rd Saturday of the month as Digital Banking Day for a period of 6 months from May, 2016. During All Branches are advised to ensure timely review/ the day, one identified staff shall interact with the renewal of credit limits and rectification of other customers visiting the Branch and popularise the technical irregularities to avoid delinquency due digital products. to these reasons. Branches shall use PLUM Menu, “Standard Asset Monitoring – Probable NPA” tool 15. Corp Home Loan Scheme – Resetting of Rate available in the Bank’s intranet to get the details of of Interest under Fixed Rate Option probable NPA accounts. (RLD, HO Circular No. 292/2016 dated 13/05/2016) All Corp Home Loans, initially disbursed 20. Revitalising Distressed Assets in the under Fixed Interest Rate option between Economy – Guidelines on Joint Lenders’ Forum 17/05/2011 to 30/06/2011 are subject to reset (Credit Monitoring Division, HO Circular No. 306/2016 on 17/05/2016 at the Fixed Rate of Interest, dated 19/05/2016) prevailing as on 17/05/2016 Branches to ensure Branches to report accounts classified as SMA – 2 suitable modifications in the rate of interest for with aggregate FB + NFB exposure of Rs. 5.00 crores these loans and also send a suitable communication and above to Central Repository of Information to customers as per the Annexure to the on Large Credit (CRILC) on weekly basis. Further circular. it is mandatory to form JLF by banks as soon as 16. Corp Kisan Credit Card Scheme (CCCK) – an account with aggregate exposure of Rs. 100.00 Comprehensive Scheme Guidelines crores and above (both FB + NFB) is reported as (Priority Sector Division, HO Circular No. 297/2016 SMA – 2 to CRILC. Failure to report SMA status dated 17/05/2016) to CRILC/concealing the actual status will attract accelerated provisioning. Comprehensive CCCK guidelines have been

You can do anything; but not everything. – David Allen Officers’ Voice, June 2016 30

Child or Disciple - Matha Amritanandamayi

Discipleship means discernment as well as obedience and surrender to the guru. The child’s attitude is marked by innocence and total dependence on the mother. Spiritual progress is possible only if one has both attitudes. A disciple is a conduit that conveys the guru’s wisdom to the world, just like a small pipe that carries all the water from a large tank to people. Only when we have the feeling that “I am nothing” can the guru do anything through us. At present, our minds are filled with the ‘I’ sense. Anything poured into a full vessel overflows. So, one should renounce the ‘I’ sense and become hollow within. Then, divine grace will flow on its own accord and fill the heart. Our ‘I’ sense is confined to the level of body, mind and intellect. Performing actions from this level is equivalent to pouring milk into an upturned vessel: no matter how much milk is poured, all of it will be wasted because not a single drop will enter the vessel. We should strive to cultivate and maintain the attitude that we are instruments in God’s hands. Only then can we gain His grace. When we realise that we are merely instruments in His hands, our every thought and word will be in accordance with what the guru desires. For this, we need to have an attitude of surrender. When we say that one should have a childlike mind, it does not mean childishness. What we need is a childlike, discerning heart. In this heart, there is the understanding that one can depend only on the mother. No matter how old one becomes, there is a child in everyone. - The Economic Times, 28/04/2016 Officers’ Voice, June 2016 31

health watch

One in five adults could be obese by 2025, said a Under weight major survey on Friday that warned of a looming The ratio of underweight people in the world epidemic of “severe obesity” with significant health declined at a slower rate than obesity grew, said and economic costs. The ratio of obese adults has the authors-from about 13.8 percent in 1975 to 8.8 more than doubled in the 40 years since 1975, and percent for men, and 14.6 percent to 9.7 percent for will climb further in the coming nine (years), the women. Over the past 40 years, we have changed research showed. The figure was set to exceed 1.1 from a world in which underweight prevalence was billion by 2025. more than double that of obesity, to one in which “There will be health consequences of magnitudes more people are obese than underweight”, said that we do not know” author Majid Ezzati of Ezzati. Imperial College London, told AFP on the research At current rates, more women will be severely published by The Lancet Medical Journal. “Obesity obese (A BMI of 35 or more) than underweight by and especially severe and morbid obesity affect 2025. In 2014, world’s fattest people lived in the many organs and physiological processes. “We can island nations of Polynesia and Micronesia, where deal with some of these, like higher cholesterol or 38 percent of men and more than half of women blood pressure, through medicines. But for many were obese, said the study. Nearly a fifth of word’s others, including diabetes, we don’t have effective obese adults (118 million) lived in six high-income treatment.” People are divided into healthy or countries- the US, Britain, Ireland, Australia, unhealthy weight categories based on a universally- Canada and New Zealand. The US was home to one adopted measure dubbed as Body Mass Index (BMI) in four severely obese men and almost one in five - a ratio of weight-to-height squared. A healthy BMI severely obese women in the word. At the other ranges from 18.5 to 24.9. extreme, the paper said, Timor-Leste, Ethiopia and One is considered under-weight below18.5, Eritrea had the lowest BMI number in the world, overweight from 25 up, and obese from 30 when with averages a low as 20.1 More than a fifth of men the risk of diabetes, stroke, heart disease and some in India, Bangladesh, Timor-Leste, Afghanistan cancer escalates massively, with a BMI of 35 one Eritrea and Ethiopia and a quarter of women in is categorised as severely obese and 40 upward as Bangladesh and India, were underweight. The morbidly so. Survey claimed to be the most comprehensive of its kind conducted to date. It used data from 1,698 Weighty flip-flop studies involving 19.2 million adults from 186 Among men globally, obesity tripled from 3.2 countries which are home to 99 percent of word’s percent of the population in 1975 to 10.8 percent population. Children were excluded. in 2014 (some 266 million) and among women it - The Hindu Business Line, 02nd April, 2016. rose from 6.4 percent to 14.9 percent (375 million), said the survey-12.9 percent combined. This was equivalent to the average adult, 18 and older, being Keep a watch on your health. 1.5 kg heavier every decade. “If the rate of obesity Members are requested to undergo periodical continues at this pace, by 2025 roughly a fifth of medical check-up – self and spouse – as a men (18 percent) and women (21 percent) will be precautionary measure. Please utilize the obese,” according to a statement by The Lancet. facility available in the Staff Welfare Scheme. More than six percent of women will be severely obese.

Anyone who has never made a mistake has never tried anything new. – Albert Einstein Officers’ Voice, June 2016 Officers’ Voice (RNI, Delhi Regn. No.KARENG/ 2005/14831) Postal Regn. No.MNG/128/2015-17 32 Licensed to Post Without Prepayment under Licence No. SK/WPP/MNG/115/2015-17 Office of Posting: Post Office, Kankanady – Mangalore DOP: 1st of every month Annual Subscription for members: Rs.60/-

You don't have to worry Sir... I will repay the overdues along with Vijaya Mallya...!!!

Sir... he says that your communication skills are bad... he says his loan has become NPA since you did not tell him about the need to repay the loan when it was sanctioned to him...!!!

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