At a Glance CBROA NEWS

CBROA NEWS

Monthly E bulletin of Canara Bank Retired Officers’ Association (Regd)

CBROA/News Bulletin/Aug 2019 Date : 01.08.2019 At a Glance Click the link to read the article Click Back to Top link on the bottom to come to this page

Editorial • Golden Jubilee Celebration of Bank Nationalisation

Our Bank • Canara Bank announced Quarterly Results for June 2019 quarter

CBOA News • Canara Bank Officers’ Association and Canpal targeting recover overdue amounting to Rs.3,200 crores in 6 months

AIBOC / AINBOF / UFBU News • UFBU Delegation Calls On The Union Finance Minister And Submitted A Memorandum On The Expeditious Wage Revision And Resolution Of Pensioners’ Issues. • Golden Jubilee Celebration Of Bank Nationalisation Day : Cboa And AINBOF Celebrate The Day As Promise To Our Patrons (Pop). • AINBOF Circular No. GS / Jul / 2019 /013 Dated 05.07.2019 - Cabinet Approves Code On Wage Bill : Role Of Trade Unions Now.

AIBPARC / CBPRO News • IBA’s Medical Insurance Scheme Retirees • Golden Jubilee Year of Bank Nationalisation • Improvement in Family Pension and Updation of Pension in Banks – A fervent appeal to Hon Minister for Finance, Smt. Nirmala Sitaraman

Dearness Relief to Bank Pensioners w.e.f. August 2019

CBROA Activities / meetings • Dr. S T Ramachandra, former General Manager of our Bank and our member, nominated as a member, Syndicate of the University of Mysore. • Smt Salekoppa L Kanyakumari (Smt S L Kanyakumari) will participate in World Masters Badminton Championship in Poland. • Rally on 22.07.2019 at Tiruvanthapuram to commemorate the Bank Nationalisation Day • Dharna on 20th July, 2019 at Coimbatore • Central Committee Meeting at Hyderabad on 13th & 14th July, 2019 • Meeting of members at o Shivamogga on 23.07.2019 o Indore on 24.07.2019 o Bhopal on 25.07.2019 o Aligharh on 26.07.2019 o Ghaziabad on 28.07.2019 o Delhi on 29.07.2019 • Mangalore unit arranges Picnic and Vanamahotsava on 28.07.2019 • Social activities conducted at Vijayawada

Banking News / Developments

• RBI Governor meets Public Sector Bank heads, reiterates call for transmission • MSME bad loans ratio remains high at 10.8% in the March 2019 quarter • NPA Crisis : Loan write offs by Banks cross Rs.2 lakh crores • Banks’ bad loans down at Rs.9.34 lakh crores at FY 2019 end • ATM Transaction charges for other bank ATMs likely to change : RBI sets up review panel • State Bank of India has been caught lying about its profits for three years • RBI imposes Rs.7 crore fine on State Bank of India for violation of various regulatory guidelines. • Allahabad Bank repots Rs.688.27 crores fraud • Punjab National Bank hit by another fraud of Rs.3,800 crores. • IL&FS hosted top executive of Credit Agency, Brickwork Agency, got high ratings • Government rules out reintroduction of old pension scheme • Central Vigilance Commission (CVC) tells ministries to take action against corrupt bureaucrats before they retire. 25 officials from State Bank of India, Canara Bank, Punjab National Bank, other Banks under scanner.

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Dear Friends,

GOLDEN JUBILEE CELEBRATION OF BANK NATIONALISATION.

India celebrated the 50 Years of Bank Commercial Banks belonged to private business Nationalisation on 19th July of this year. There houses those times. Since these commercial were panel discussions on the electronic media banks were run by business houses, they failed over the successes and failures of the epoch in helping the Government in many ways. making financial exercise that began on the Nationalisation of the Banks, preceded by midnight of July 19, 1969. It started under the taking over of Imperial Bank of India and then Prime Minister of India with nationalization renamed as State Bank of India in 1955, and of 14 major commercial banks that accounted nationalization of 6 state associated Banks, for 85 per cent of bank deposits in the country through the State Bank of India (Subsidiaries) at that time. Six more banks were nationalized Act 1959 followed by a second phase of in 1980. The core objective of nationalization nationalization in 1980, brought the public was to energise priority sectors at a time when confidence in the Banking system of India. With the large businesses were dominating the credit this 80% of the Banking Sector came under the portfolios. Thanks to the relentless struggle public/government ownership. After waged by millions of Bank employees over the nationalization of the Banks, the branches of years, for nationalization of the Banking Sector the public sector banks were opened in the which lead to Government’s decision to hitherto unbanked regions, reaching even the nationalize the major commercial Banks. This remotest parts of the country, deposits rose to struggle was supported by the law makers, the approximately 800 per cent, and advances took academia, economists who championed the a huge jump by 11,000 per cent. Government cause of the poor, the agriculturists, the down ownership gave the public implicit faith and trodden, the small business enterprises, the immense confidence in the sustainability of hitherto neglected sectors of the economy. The Public Sector Banks. By 2013 the Indian Banking struggle was motivated by the need to seize Industry employed, 11,75,149 employees and control of the nation’s savings for allocation to had a total of 1,09,811 inn2013 which increased priority sectors of the economy from the big to 1,41,756 in 2019 branches in India and 171 business houses of the country who, had taken branches abroad, aggregate deposits stood at control of the Banking sector in the post- Rs.67,504.54 billion and Bank credit of independence period. The country was in a Rs.52,604.59 billion. The net profit of the Banks desperate situation to align its resources operating in India was Rs.1,027.51 billion towards a systematic and planned economic against a turn-over ofRs.9,148.59 billion for development of the country. The purpose of the financial year 2012-13.Population per nationalization was to ensure equitable flow of Branch declined to 14,000, Deposit as credit to every sector of the economy to avoid percentage to GNP improved to 79%, per capita lopsided growth. deposit stood at Rs.56,380/-, per capita credit

stood at Rs.44,078/-, Credit-Deposit Ratio In the wake of the Banking Sector reforms improved from 63% to 79%. The rise in the share introduced in the year 1991, Public Sector Banks of rural and semi-urban branches was reflected adopted international prudential and capital in the steady increase of the contribution of adequacy standards in line with Basel rural and semi-urban areas in aggregate framework, set out from time to time, deposits and credit. The share of rural and semi- integrated risk management systems, business urban branches varied from 58.4% to 77.2% in process re-engineering, reorganization of 1990 and to 62.89% in 2019. The total network administrative structures, better systemic of rural and semi-urban branches stood at controls, higher compliance standards and 89,144 in March 2019 compared to 4,781 in 1969 better HR Management strategies. and 46,128 in 1990. More significantly, the credit deposit ratio of rural branches touched In the earlier stages of nationalization, share of 65% as against the ideal parameter of 60% set unorganized credit fell sharply and the economy for the Banking Industry as a whole. It was not seemed to come out of the low level of only rural credit, there was an upsurge in small equilibrium trap. In the process the flip side of borrower accounts. In addition, 1.26 lakh Bank social commitment led to inefficiency and poor Mitras (Business Correspondents) provide customer service in some PSBs, taking away the branchless banking service in villages. The competitive edge. The administered interest commitment to spread banking began with the rates and the burden of directed lending introduction of the Lead Bank Scheme in 1969 constrained their autonomy to operate on (LBS) and State Level Bankers’ Committee commercial lines. The mandatory expansion of (SBCs), District Credit Plans, Priority sector branches in unbanked centres with low business Lending Norms in 1974, branch expansion policy potentiality impacted the working of Public and the formation of Regional Rural Banks in Sector Banks. With little latitude to decide 1975. These tools speeded up the outreach of business mix, profitability took a back seat. Banks to transform the village economy by PSBs struggling to work under the doctrine of adopting them for integrated development. dual regulation suffered from poor governance, Board of Directors of PSBs are appointed by the Beyond providing banking services, Public Government with no freedom to review their Sector Banks played a crucial role of performance and competency. The expertise coordinating with state, district, tehsil and with such independent directors rarely passed block-level units of the Government and District on to Bank Management. As a result of poor Industrial Centres and facilitated in board oversight and the ability of large implementing Welfare Schemes. Public Sector borrowers to influence certain decisions, Public Banks served as a conduit to disburse subsidies, Sector Banks accumulated huge Non-Performing implemented Government Sponsored Schemes Assets (NPAs). They had to bear the brunt of for integrated rural development, routed holding close to 90% of stock of bad loans, interest subventions, facilitated debt-waiver further impinging upon their profitability. schemes and fulfilled mandatory lending norms. The combined impact improved the economic In the aftermath of Banking Sector reforms, conditions of rural enterprises. there was a virtual expansion of credit. So in the initial stages of liberalization, the initial 4

benchmark of a reduction in NPA ratio and labour force, which is not supported by any increase in capital adequacy ratio was replaced empirical evidence. by a mad race for credit expansion giving a go bye to the accepted principles of credit Despite triumphs and tribulations, the move to Management. Such reckless expansion in both nationalize banks aided by banking sector corporate and personal sector including housing reforms, has greatly contributed in the robust finance, did partially insulate the Indian growth of banking outreach, more importantly economy but the story of decline of the system in the hinterland, benefitting the people at the was invisibly written in such reckless, bottom of the pyramid. Focus on financial adventurous credit expansion which finally inclusion guiding banks to adopt a specific three exploded in so many big ticket defaults in the year outreach policy since 2010 took aggressive post 2014 period. Such large scale default by big form in 2014 after the implementation of the corporate borrowers because of policy induced Pradhan Mantri Jan Dhan Yojana. The combined credit expansion and failure to have an efficient synergy lead to massive connect of the banking recovery mechanism despite of enactment of system with the people. Effectively, 80% of Indian Bankruptcy Code and setting up of a adults aged 15-plus have a bank account- a powerful National Company Law Tribunal, great achievement by any standard. Of the 36 (NCLT), leads to the clamour for providing crore new Savings Bank Deposit Accounts additional equity for Public Sector Banks. The opened under PMJDY till May 2019, PSBs Government has been providing capital accounted for 96.6%, reflecting their role in infusion, it is too meager and the Government social transformation. The challenges of Bank is bogged down by its own fiscal responsibility reforms, did not dither the spirit of bank and budgetary management and this is blocking nationalization and PSBs continue to serve the provision of adequate capital from budgetary masses even, at times, at the cost of losing resources. In this background the Government competitive edge. has found an easy solution to privatise Public Sector Banks because of the paucity of fiscal As India celebrates the Golden Jubilee of Bank resources and the alternative mechanism is Nationalisation, the purpose still holds relevant, bank consolidation through merger and more so when growth aspirations are high, India amalgamation of Public Sector Banks. Firstly the aims to be a US $ 5 trillion economy, and the Associate Banks of SBI were merged with SBI Banking Sector increasingly needs to stay followed by merger of Vijaya Bank and Dena committed to serve the masses. Bank with Bank of Baroda, for the failure of the We wish all our members and the members of government to provide adequate equity support their family, the best of health, happiness, joy to tide over a crisis created by the policy and peace of mind for all the time to come. makers. This is done with an assumption that “Too Big to Fail.” The reason for mergers/ Yours Sincerely, amalgamation is on the assumption that size would increase efficiency through more A N Krishna Murthy efficient scale, better organization, increased General Secretary scope, improved product mix and downsizing of

OUR BANK

CANARA BANK ANNOUNCES QUARTERLY RESULT FOR JUNE QUARTER 2019

Deposits Rs.6,10,674 crores in the year-ago quarter. In the Jan-March Advances Rs.4,49,290 crores Quarter the Bank had set aside Rs.5,523.50 Total Business Rs.10,59,964 crores crore. Operating Profit Rs.2,440 crores Net Profit Rs.329.07 crores Net Interest Income decreased by 16.54% to Rs.3,240.61 from Rs.3,882.90 crore in the Net profit rose by 17% year-on-year on the back corresponding period of last year and stood at of lower provision and improved asset quality. 2.29% Gross Non-performing Assets (NPAs), as a Post-provision, the Net NPA reduced from percentage of Total Advances, were reduced to 6.91% in March Quarter 2019 to 5.35% in June 8.77% in June Quarter compared with 11.05% in Quarter 2019. the March Quarter and 13% in the year-ago period. Gross NPA stood at Rs.39,399 crore. Total Number of Employees 57,449

Provisions during the quarter fell by 26.46% to Branch Network 6,323, ATM Strength 8,837 Rs.1,899.13 crore as against Rs.2,582.30 crore

CBOA NEWS

CANARA BANK OFFICERS’ ASSOCIATION AND CANPAL TARGETTING TO RECOVER OVERDUE LOANS AMOUNTING TO Rs.3,200 CRORE IN 6 MONTHS.

months and enhance the Bank’s bottom line. CBOA and CANPAL (A Voluntary Association of The CANPALS have started meeting up with Officers of Canara Bank) have embarked on a loan defaulters in order to persuade them to loan recovery drive as 2019 marks the Golden repay their dues after explaining the process. Jubilee year of Banks’ Nationalisation as well They are, besides as the Triennial Conference of the Association. Sri. G V Manimaran, General Secretary, CBOA meeting the Defaulters, sensitizing the family has informed that the objective is to recover a members as well about the dues to the Bank. minimum of Rs.3,200 crore (10 per cent) of the This exercise is being carried out by CBOA total outstanding of Rs.32,000 crore in six members and CANPALS after office hours and

on holidays as a payback gesture to the Bank. recovery drive recorded sale of property A Large number of Retired Officers have also through e-auction for the first time in Jammu joined hands with CBOA in this Campaign. The & Kashmir. The Bank managed to recover Association has within two days of launching Rs.72.90 lakh from the sale of the said the campaign has recovered Rs.6 crore. The property.

AIBOC / AINBOF / UFBU NEWS

UFBU DELEGATION CALLS ON THE Promise to our Patrons, where the members of UNION FINANCE MINISTER AND AINBOF took a pledge that, they would extend SUBMITTED A MEMORANDUM ON friendly and courteous customer service, THE EXPEDITIOUS WAGE REVISION keeping customer interest paramount, they AND RESOLUTION OF PENSIONERS’ would try to maximize customers’ delight, they ISSUES. would endeavour to solve the problems to the The Convener of UFBU Sri Sanjeev Kumar optimum satisfaction of our customers, they Bandlish and the Leaders of the Constituents of would be proud of their work and conduct UFBU, including Sri. C H Venkatachalam, called themselves professionally, they would deal on the Union Finance Minister and submitted a with the customers in a transparent and memorandum urging upon her the need to unambiguous manner, they would continue to conclude the XI Bipartite Wage negotiations for provide banking services to the masses and the Bank employees and Officers at an early they would give priority to social objective and date. The team reiterated the demand for strive to retain the Public Sector Status of our negotiation covering all the Scales in respect of Institution. Officers and the IBA should be advised to hold The gathering was addressed by Sri. T N the negotiations on a continuous basis. Manoharan, Chairman, Canara Bank, who lauded the initiative of CBOA in organizing the GOLDEN JUBILEE CELEBRATION OF BANK NATIONALISATION DAY : Celebration in a meaningful manner. Sri. Abdul CBOA AND AINBOF CELEBRATE THE Azeez, General Manager, Canara Bank, Circle DAY AS PROMISE TO OUR PATRONS Office, Chennai also addressed the gathering. (POP). Sri G V Manimaran, General Secretary, AINBOF Canara Bank Officers’ Association jointly with and CBOA welcomed and administered the AINBOF had organized a meeting of Members pledge which promises the customers the best at Chennai to celebrate Golden Jubilee of Bank service, to all the Officers of nationalized Nationalisation on 19th July,2019. A large banks. Sri. P Rajendran, Vice Chairman, number of our customers attended the AINBOF proposed vote of thanks. celebration. The day was celebrated as

Similar programmes were held at Bangalore, these resolutions have been adopted by more Mangalore, Mumbai, Pune, Hyderbad, Kolkatta, than 80% of the member countries. Patna, Trivendrum, Coimbatore, Ahmedabad, Delhi, Bhopal, Patna, Lucknow, Chandigarh, The main objective of this is that, “Every Bhubaneshwar, Vijayawada etc. employee must be given basic wages for him and his family to lead a decent life, matching AINBOF CIRCULARNO. GS / JUL / to the status being enjoyed in the respective 2019 /013 DATED 05.07.2019 - institution, without linking to the profit and CABINET APPROVES CODE ON WAGE paying capacity.” BILL : ROLE OF TRADE UNIONS NOW. Incidentally it was also observed that the above norms were adopted by the Seventh Pay Recently Code on Wage Bill has been approved Commission while revising the Salary Structure by the Cabinet Committee and expected to be of Central Government Employees. The passed by both the houses of Parliament Commission’s recommendations were shortly. The Bill advocates a national minimum accepted by Central Government in 2016 itself. wage below which even the State Governments cannot fix their wages. Thus AINBOF had suggested to AIBOC at the time of preparation of Charter of Demands to Since introduction of the bill in Lok Sabha in follow the above Minimum Wages principle 2017, AINBOF has been strongly advocating for while seeking the wage revision as this method the minimum wages principle adopted in the was perceived as a solution to bridge the huge Bill as it envisages fixing salary based on that gap in Salary and ensure the pay parity with formula only. that of the Grade A Officers of Central Government. Considering the previous Bipartite Settlements, taking into account the past Accordingly, on this the Charter of Demands experience during the negotiations and also was prepared by AIBOC and other Officers’ the losses posted by the Banking system. It was Organisations incorporating the Minimum decided by the four Officers’ organizations that Wages Policy and the same was submitted to wage revision for Bank Officers should not be IBA also. based on the profit or paying capacity of the institution as this has led to limited to increase But till date the negotiations have not in the Salary Structure of the Bank Officers. happened on these lines and IBA commenced its offer with a measly 2 percentage increase, While searching for a viable alternative In the last two or so years, the initial offer of formula for wage revision, we came across the 2% has increased to 10% and rumours are Minimum Wages Resolution by International around that they are prepared settle at around Labour Organisation in 1970, the crux of which 12%. is ensuring Minimum Wages for Workers and 8

AINBOF was insisting for wage revision based on 2. Unconditional Mandate upto Scale VII. Minimum Wages Principle and not on percentage basis in order to bridge the huge 3.Running scale of Pay. gap in salary and to ensure the pay parity with that of the Grade A Officers in Central 4.Updation of Pay. Government. The above should be our objective to fight Now the passage of this Code on Wages Bill in for better wages and working conditions. If both the houses will pave the way for we believe that these genuine demands implementation of Salary based on minimum would be achieved by somebody, then you Wages principles. are doomed.

Next step now is that the demands of the trade Believe in you that you must work for these unions shall be as below and the detailed and THEN ONLY YOU ARE DESERVING SUCH justifications for these demands are given in BETTER CONDITIONS. the annexure. Strengthen 1.Settlement of wage revision based on

Minimum Wages principles as incorporated in Charter of Demands. CBROA Legal Fund

AIBPARC / CBPRO NEWS

AIBPARC CIRCULAR NO.49/2019 Scheme for serving and retired employees of DATED 19.07.2019 : IBA’S MEDICAL the Banks. IBA in turn put up this proposal as INSURANCE SCHEME FOR RETIREES management issue before UBFU at the time of wage negotiations which concluded in The Convener, UFBU April/May 2015. As a result a new medical The General Secretaries, Constituents of UFBU insurance scheme got introduced both for serving employees and also for the retired IBA’S MEDICAL INSURANCE SCHEME FOR employees with effect from October 2015 for RETIREES serving employees and November 2015 for retired employees. After introduction of IBA’s As you are aware, the Department of Financial Medical Insurance Scheme during the year 2015 Services, Ministry of Finance, Govt of India there has been multi fold increase in the advised IBA vide its communication dated 24th premium thereby compelling many of the February 2012 to evolve a Medical Insurance 9

retirees to opt out of this scheme for the annual medical insurance premium. Since all reasons of un-affordability, more particularly the retirees are senior and super senior those who are family pensioners drawing as low citizens, their medical insurance being a social as Rs.4000 per month pension. The entire security measure, the payment of the amount of annual pension in such cases would insurance premium and so also the not be sufficient to meet out the medical hospitalization bills be brought under 0% slab insurance premium. The sky rocketing of GST Medical insurance premium in case of premium has robed many pensioners of the single person be lower than the premium benefit under IBA policy which has been charged for the other retired employees having otherwise largely helpful to the retirees. Such a surviving spouse. situation calls for the improvements/ modifications in the scheme for retired It is also proposed that the retired bank employees. It is with this view in mind the employees of Banks which are following suggestions are made for kind instrumentalities of the Government and hence consideration: falling within the meaning of State under Article 12 of the Constitution of India should be Since Government communication dated covered under CGHS after charging a fixed 24.02.2012 did not envisage payment of lump sum amount at the time of retirement or medical insurance by the retirees, it should be at the time of extending the cover to those who borne by the Bank as in the case of serving have already retired. employees. It is pertinent to mention that the Executive Directors/Managing Directors/ Alternatively, the medical facility should be Chairman and Managing Directors are extended extended by the Banks to the retirees through the benefit of medical expenses empanelled hospitals against charging a fixed reimbursement even after retirement without one-time amount towards medical fee for their any charge to them as they were entitled life time. The fixed sum should be so decided during their service. It is therefore for different slabs of medical cover with an discriminatory on the part of the Banks to option to the retired employee to choose the create a class within the class with regard to medical slab according to his requirement and extension of medical benefit facility to retired wish. bank employees vis-à-vis the top retired functionaries of the Bank on one side and the It is requested that the Retirees should not be serving employees on the other side. There is discriminated and such medical insurance an urgent need to improve this unfair practice premium should be paid by the Banks. of treating retired bank employees with It is requested to include specially challenged discrimination. dependent children in the definition of family There should be a common medical insurance to provide Medical Insurance benefit. policy for serving and retired employees so as to bring down the claim ratio and the resultant 10

Those members who had opted out of the man. The size of infrastructure of scheme due to exorbitant amount of premium nationalised banks could be should be allowed to rejoin the scheme. compared only with those of Indian Railways and Indian Postal Services. We earnestly request you to take up the issues We had been on the hills, by the with IBA and make the scheme meaningfully rivers and the sea, in jungle and affordable to all the retirees including Family terrains and we remained in close Pensioners. contact with the people.

Thanking you, • Can anyone deny the large recruitment that took place in the Yours Comradely, decades of 70s and 80s through a fair (K.V. Acharya) (S.C.Jain) Joint Convener, CBPRO General Secretary, and uniform recruitment policy. Such AIBRF massive manpower posted in urban, semi urban, rural and hardship branches extended their hands of AIBPARC CIRCULAR NO.50/2019 helpful cooperation to the needy DATED 19.07.2019 - Golden Jubilee sector of society. Year of Bank Nationalisation Dear Comrade, • The concept of Priority Sector came into existence specifying certain Sub : Golden Jubilee Year of Bank areas which needed immediate Nationalisation attention of the banking industry. The DRI scheme brought smile in the This is a great day for all bankmen, past or lips of many who never could dream present, the nation and the society and it is to that bank finances would be made be remembered with much fondness and available to them. The focus of the reverence. 50 years back from today, a number economy shifted drastically. It was of banks were nationalized. The control of such no more class banking but a mass financial institutions passed on from private banking. hands to government. It was a historical, legendary and epoch-making decision which • The banks which were controlled by had a great salutary impact on future the state started functioning as an generation. extended arm of the government of India. Different schemes, envisaged • We cannot forget the opening of a by the government at different large number of branches in points of time were implemented by different parts of the country to the banks in a trustworthy manner. cater to the needs of the common The banks turned to be the real

instrument of bringing a social AIBPARC CIRCULAR NO.51/2019 change. In the process of doing so, DATED 22.07.2019. - Improvement banks sometimes had to make in Family Pension and Updation of compromise with profitability but Pension in Banks- A fervent appeal still it went ahead with a firm commitment to the society. Dated: 19.07.2019

• In last 50 years, the nationalised Ms Nirmala Sitharaman banks have been symbol of trust and Hon’ble Finance Minister, Ministry of Finance, confidence. Till today, the people of Govt of India, the country believe that money kept North Block, in the accounts of such banks is safe. New Delhi. We must be worthy of keeping this trust intact in days to come. We shall Respected Madam, act as a dedicated force to maintain and to further consolidate the ambit Improvement in Family Pension and Updation of retaining the “state” –character of of Pension in Banks - A fervent appeal banks. We are the sole coordinating body of Bank In different parts of the country, the Pensioners and Retirees representing almost organisations of serving employees and officers 100% of Bank Pensioners. We have been have been celebrating the golden jubilee year espousing the cause of Bank Pensioners and of bank nationalization through different Retirees seeking the redressal of their programmes. We, the retirees, have been grievances. It gives us a sense of pride to see participating in all such programmes with equal a full time woman Finance Minister in the amount of zeal and enthusiasm. We shall never history of our Great Nation. It is further forget the sensational event of bank heartening to note that your good self has nationalization of 1969 and we shall proudly presented a highly progressive and futuristic celebrate the golden jubilee year in 2019 with budget in the parliament on the 5th July, 2019. firm commitments and conviction for future. We whole heartedly congratulate you on this momentous occasion. It is a significant With best wishes and comradely greetings, coincidence that Indian Banking Industry has also reached a stage where more than 50% of ( SUPRITA SARKAR ) its workforce is represented by the women who GENERAL SECRETARY are rendering yeomen service to all sections of the society and carrying out various

Organise Retiree Officers of Canara developmental schemes of the government in Bank, nook and corner of the country.

Unite under the banner of CBROA 12

We therefore with immense hope present our demanding introduction of Pension Scheme for legitimate case for improvement in Family them. So In the year 1993 industry level Pension at par with Government and RBI and settlement / joint note providing for also our request for Updation of Pension in introduction of Pension Scheme in other Banks Banks before your good self for an early and was signed between the Unions/Associations favourable resolution. and IBA. As per the scheme the Employees and Officers were asked to surrender Banks Improvement in Family Pension: contribution to Provident Fund to help create a Pension Fund. The Pension therefore was Family Pension in Banks is payable @ 30%, 20% extended to us in lieu of Contributory and 15% of last drawn pay where lower Provident Fund (CPF). percentage is being assigned to higher Basic Pay with a specified ceiling on the amount of Pursuant to the signed settlement/joint note, Basic Family Pension which effectively results the BANK EMPLOYEES’ PENSION REGULATION in the Family pension working out to 7 to 10 % 1995 were framed in exercise of powers of the last drawn pay thereby restricting Basic conferred by Clause(f) of Sub-section (2) of Family Pension to a meagre sum of Rs 4000/- Section 19 of the Banking Companies to Rs14000/-. This is as against 30% uniform (Acquisition and Transfer of Undertaking) Act rate of Pension without any ceiling in case of 1970(5 of 1970). The said pension regulations Government and RBI family pensioners. This were adopted by the board of respective banks discriminatory treatment to the family after consultation with Reserve Bank of India pensioners of Public Sector Banks largely being and with the previous sanction of the Central the widows of the deceased Bank Employees Govt. These regulations were also notified in has caused severe financial hardships to them the Gazette of India and so are the subsequent and many of them have been forced to opt out amendments. This makes these regulations a of IBA’s medical insurance scheme for Retirees Subordinate Legislation having statutory force. due to their inability to bear the Insurance The Public Sector Banks are the State within Premium out of their meagre Pension. the meaning of Article 12 of the Constitution of India and are liable to implement the We request you to remove this discriminatory provisions contained in the said Pension anomaly and provide much needed relief to the Regulations 1995 as amended up to date. Bank Family Pensioners. Pension Regulation 35(1) Pension Updation: This Regulation originally provided for Background: updation of Basic Pension; Additional Pension as under. State Bank of India has been having a Pension Scheme since very long time. The other Bank Quote. Employees and Officers have also been

In respect of employees who retired between retirement. However, for inexplicable reasons, the 1st day of January 1986 but before the 31st the said amendment has remained day of October 1987, basic and additional unimplemented and not even a single retiree pension will be updated as per the formula has been extended the benefit in spite of the given in appendix 1. lapse of more than 15 years.

Unquote. It is again reiterated that the pension regulations being subordinate legislation, are The formula for Updation of Basic and statutory in nature and the Banks being a state Additional pension given in Appendix 1 was an within the meaning of the Article 12 of the adaptation of the Updation formula used for Constitution are under a statutory obligation to updating the pension of Government implement the same. employees obtaining at that stage. Updation of Pension in RBI: The retired employees who retired between 1.1.1986 & 31.10.1987 were given the Pension was introduced in RBI w.e.f. benefit of Updation of their basic and 01.01.1986 as in the case of other Public Sector additional pension at the time of Banks. The need for updation of pension arises implementation of pension scheme in 1995-96. as a sequel to wage revision which takes place in RBI and other Public Sector Banks every five With a view to extend the benefit of Updation years commencing 1st November. It is of basic and additional pension to all those who reiterated that Public Sector Banks Regulations retired are were to retire subsequent to have an express provision for updation of 31.10.1987, the Govt of India amended pension vide Regulation 35 (1) as mentioned Regulation 35(1) as under. hereinbefore whereas the Pension Regulations in RBI needed an amendment to provide for Quote: updation of pension. It is therefore clear that the pensioners of Public Sector Banks stood on Basic pension and additional pension, wherever a better footing vis-a-vis the pensioners of RBI applicable, shall be updated as per the with regard to extension of the benefit of formulae given in Appendix 1(Govt Gazette updation of pension. Notification No. 9 dt 01.03.2003) It is pertinent to note that DFS, Ministry of Unquote: Finance vide its letter dated 26.02.2018 addressed to Governor RBI has declined to The reasons, objects and rationale behind this approve the proposal of the Central Board of amendment to Regulation 35(1) were to RBI for extension of the benefit of updation of honestly extend the benefit of Updation of pension for the reason that it will have basic pension and additional pension to all contagion effect and any change in the manner retirees irrespective of the date of their of calculating pension/updation of pension was 14

likely to result in similar demands in Public provision of pension regulations does not Sector Banks and Financial Institutions most of qualify to be an improvement in the scheme which are currently experiencing financial and hence the notion about additional cost difficulties. However, the Honourable High consideration is violative of the said pension Court at Mumbai has rejected such a plea of regulations. The annual provisions on account the Government and allowed updation of of pension liability are required to be made pension in RBI. Consequently, Ministry of keeping in view all the regulations after Finance vide its letter dated 5th March 2019 obtaining the Actuarial estimates for the same. approved the said proposal regarding It is believed that the Banks have made revision/updation of pension as per the adequate provision towards pension liability multiplication factor fixed for pensioners and if after implementation of updation, the according to the date of their retirement. apprehended shortfall if any shall have to be Accordingly, the pensioners of RBI have been made good as the employees have already given the benefit of updation of pension surrendered the Banks’ contribution towards notionally with effect from 1st March 2019.This their provident fund at the time of opting for has lent further credence and legitimacy to our pension. The liability being statutory in nature, demand for Updation of Pension in other Banks. implementation of the provision of Regulation 35(1) cannot be withheld for cost Nature of Pension Liability in Banks: considerations or by drawing an uncalled for parallel with the budgeting/funding of As brought out here in before, the extension of Government Pension scheme in as much as the the benefit of the Updation of Pension as Pension Regulation 35(1) in case of Bank provided in Bank Pension Regulation 35(1) is a Pensioners is unambiguous and clear. A statutory liability. As far as the Banks are reference under Regulation 56 of the pension concerned, the liability towards payment of regulations is required in case of a doubt in the Pension and Updation of Pension are in the matter of application of these regulations. It is nature of Revenue Expenditure constituting clarified that the context of our Pension the charge on Profit & Loss account which Regulation 56, need to be examined to means that the Profit if any, can be declared ascertain whether the facility of Updation of only after making honest and adequate Pension is available in case of Central provisions towards pension liability in terms of Government Pensioners. A positive Pension Regulations. There appears to be a notion that Pension Liability is required to be response to this question would set to rest any allocated from the profits of the bank. An apprehension about the implementation of the analysis of the published Balance Sheets of the provision contained in Pension Regulation banks would reveal that the provisions towards 35(1). Pension Liability do not find a place in the Profit & Loss Appropriation Account. It A plain reading of the provisions contained in remains only revenue expenditure. It is also Regulation 35(1) would reveal that basic made clear that implementing an existing pension and additional pension shall be 15

updated wherever applicable. This provision the bank’s profits. There could be many more makes the Scheme of Pension updation an Open such cases in the industry. It may be Ended one. appreciated that pension fund is held in trust for the pensioners and any unauthorised debit It would be pertinent to understand the would amount to misappropriation of Trust pension liability under Govt Pension Scheme on Funds resulting in serious violations of the account of the Government Employees for a provisions of the Trust. better and proper appreciation of the issue. The Pensionary Liability of the govt in respect The perception that budgetary allocations are of Government Employee is treated as a used for meeting the annual pension liability of revenue expenditure as in the case of Bank the Government pensioner leads us to a logical pensioners. In the Govt., the budgetary conclusion that such allocation is allocation is made on a Year-On-Year basis as statutory/mandatory irrespective of the the Banks make pensionary provisions after surplus or deficit in Union budget. An empirical obtaining Actuaries Estimates every year. The study reveals that the Union Government have only difference being that the Govt has not been presenting Fiscal deficit perpetually in constituted any fund to be used for payment of their annual budgets. The fiscal deficit is pension perpetually whereas the Banks have nothing but the gap between the revenue and constituted Pension Fund to meet the liabilities expenditure. The gap between revenue and of pension perpetually so as to make the expenditure in the banks is called Loss. When Pension scheme sustainable. It is further government meets the liability of pension pertinent that denial of the benefit of updation updation despite perpetual fiscal deficit (loss), to Bank Pensioners has resulted in a huge how can the banks refuse to meet the pension Corpus of more than Rs 300000 Crores including updation liability quoting intermittent loss by SBI as on 31st March, 2018. The annual a few Banks. It is also recalled that when the Contributions as per Actuaries Estimates and industry level settlement for introduction of Yield on the existing fund far exceed the pension were signed in the year 1993, many Pension Liability every year. This is only banks were showing loss in the wake of because the Bank pensioners are underpaid to implementation of prudential accounting the extent of the quantum of pension updation. norms since 1992. If Cost or the profitability/affordability was envisaged as a constraint for making payment of Pensionary benefits, it would not have been feasible to It is revealing that the size of pension funds introduce the benefit of pension in those banks being so strong has in the past led to Window who were making loss during 1993. This clearly dressing of Banks ‘Balance sheets by charging emphasises the point that profit, loss, cost, the pension fund for the purposes other than affordability etc are illogical and arbitrary the Pensionary benefits a la PNB case a couple reasons being cited to deny the benefit of of years ago wherein more than Rs 1600 Crores Updation of Pension to Banks’ Pensioners. It is were transferred from Pension fund to inflate an illegal denial. 16

Cost of updation: is in this manner the need for additional provision, if any, should be examined. It is learnt that the cost of Updation of Pension in RBI for 34400 pensioners worked out to Rs. It is once again reiterated that Banks as 857.52 crores which was hardly 7.146% of their instrumentalities of Government are State pension corpus of Rs. 12000 crores within the meaning of Article 12 of the (approximately). The provisioning norms for Constitution of India. Hence the pensioners of Pension Fund in RBI and in Public Sector Banks the Banks cannot be denied their statutory are similar and so is the pension payout. dues of payment of pension including its Pension scheme came into existence in the periodical revision/ updation. year 1986 as in the case of Public Sector Banks and other Private Sector Banks which are Conclusion: members of IBA. So far as SBI Retirees are concerned the Pension scheme was already in A careful reading of the foregoing merited existence. This being so If the same principle submissions would make out a strong and and analogy is extended to roughly assess the legitimate case for redressal of the long cost of pension updation for about 450000 pending grievance of Bank Pensioners and pensioners of all other member Banks of IBA, Retirees who have been immensely the cost of pension updation as a %age will contributing for Nation Building. remain the same of the pension corpus of the We request Your Good self to look into our Banks. This is without adjusting the extra cost needed in case of RBI Pensioners whose Basic legitimate grievance and ensure implementation of a pre-existing provision Pay and resultant Basic Pension are higher than that of the other Public Sector Banks. In this under Pension Regulation 35(1) for Updation of Basic Pension and Additional Pension. Bank backdrop the astronomical figure of the cost of pension updation assumed by IBA lacks logic Pensioners and Retirees shall ever remain grateful to you for your kind consideration in and accuracy and appears to be on some wrong this regard. and unrealistic premises by the actuary. The difference between the updation cost of 34400 With Respectful Regards, pensioners of RBI and about 450000 pensioners of SBI and other member Banks of IBA should Yours faithfully, not normally exceed the ratio of Updation of (A.Ramesh Babu) (K.V. Acharya) (S.C. Jain) RBI Pension scheme. Such cost calculations JOINT CONVENORS GS, AIBRF need to be studied with regard to availability of existing pension corpus available in Banks, the payment payout, annual yield, annual contribution/provision to the pension funds. It

CBROA ACTIVITIES / MEETINGS

Dr. S T RAMACHANDRA, FORMER Mrs Salekoppa L Kanyakumari (Mrs S L GENERAL MANAGER OF OUR BANK Kanyakumari) is traveling to Poland and USA AND OUR MEMBER NOMINATED AS tomorrow. She will be participating in "WORLD MEMBER, SYNDICATE OF THE MASTERS BADMINTON CHAMPIONSHIP" at Poland. UNIVERSITY OF MYSORE. Dr. S T Ramachandra, General (Retired), It is a proud moment for all of us. Mrs S L Canara Bank and our Member, has been Kanyakumari is a versatile personality and has nominated as a Member of the Syndicate of the excelled in every sports and games she has University of Mysore. He worked as lecturer in participated. She is has won many major D Banumaia’s College Mysore prior to his stint tournaments for Senior Citizens. May it be in Canara Bank as Hindi Officer. He is also the Running race, table tennis or Badminton, She recipient of Suvarna Karnataka Hoysala Award has won every event. In January this year in the and Hamsa Jyothi Puraskar for his contribution National Championship held in Goa She was the to Literature. Winner in badminton singles doubles & mixed doubles , 200mts race gold, 100 & 400 mts race Hearty Congratulations to Dr. Ramachandra silvers, TT singles gold, doubles bronze. All in who has done all of us and Canarites proud. 60+ category.

CBROA wishes Dr. Ramachandra all the very CBROA Wishes Mrs S L Kanyakumari great best in all his future endeavours. Success in the World Championship to be held in Poland. Madam Kanyakumari you are Mrs Salekoppa L Kanyakumari (Mrs S carrying The Good Wishes and Blessings of L Kanyakumari) entire CBROA Family. We are sure you will be Victorious and Make our Country Proud by your Efforts.

RALLY ON 22.07.2019 AT TIRUVANANTHAPURAM TO COMMEMORATE THE BANK NATIONALISATION DAY

AIBPARC Kerala state Unit had organized a mass rally at Thiruvananthapuram and members of CBROA participated in large number, braving heavy rains. The rally was 20

attended by huge number of members of Mediclaim Policy which is becoming just affiliates of AIBPARC. The rally culminated in a unaffordable, year by year etc. Addressing the meeting inaugurated by Dr. K N Harilal, gathering Sri E Sampathkumar, informed the Member State Planning Board and addressed by gathering about the case filed by CBROA at leaders of major retiree organizations and High Court of Karnataka, Bangalore and the UFBU constituents. progress in the case. The Dharna received the electronic and print media attention who gave DHARNA ON 20TH JULY,2019 AT a wide coverage. COIMBATORE, TAMIL NADU UNDER THE BANNER OF AIBPARC/CBPRO CENTRAL COMMITTEE MEETING OF AND LARGE NUMBER OF OUR OUR ASSOCIATION HELD AT MEMBERS PARTICIPATED IN THE HYDERABAD ON 13TH & 14TH DHARNA. JULY,2019.

CBPRO held a massive Dharna at Power House, MEETING OF MEMBERS AT HYDERBAD Shivanad Colony, Coimbatore and age number of members of CBPRO Constituents (AIBPARC, The Central Committee Meeting of our RBONC, FORBE, AIRBEA, SBIPF) and AIBRF Association was held at Saikrupa Hotel, participated in the Dharna. More than 1,500 Hyderabad. Around 100 members of the retirees, including more than 150 members Committee attended the Meeting. Sri.Rajendra from CBROA, attended the Dharna which was Reddy, General Manager, Hyderabad, held for 2 hours from 10 am to 12.30 pm. The delivered inaugural address and expressed his Dharna was addressed by Sri. Natarajan, happiness that CBROA has been taking care of Member of Parliament from Coimbatore, who the hopes and aspirations of the pensioners and assured the gathering that he will raise the retirees of our Bank. He solicited the support issue before the Finance Minister and also in of the senior colleagues, by dedicating their the Parliament, Sri. Sarvanamuthu, President, experience, in improving the business in SBI Pensioners’ Association, Sri. Sridharan, SBI Hyderbad Circle. He wished the meeting all Pensioners’ Association, Coimbatore, Sri. E success and hoped that there will be Sampathkumar, Vice President, CBROA meaningful deliberations on the various issues participated in the Dharna and addressed the of pensioners and retirees. He wished CBROA huge gathering. All the speakers highlighted all success in all its endeavours. the issues of pensioners and urged upon the Government of India and IBA to resolve all the Sri.Jagadish, Vice President of Canara Bank long pending, reasonable, genuine issues of the Officers’ Association who is the representative pensioners, such as Updation of pension, on the Central Committee of CBROA, graced improvement in family pension, 100% DA the occasion and addressed our Central Neutralisation to those who retired prior to Committee Members and shared the 01.11.2002,another option for pension to those information on the latest developments on the who have resigned from service of the Bank wage revision issue. after completing pensionable service, absorbing the premium amount on the IBA 21

Sri. K Balachandra Rao, Chairman Reception • Sri.Ravi Buddhiraja, Regional Secretary, Committee, XI Biennial Conference at Saharanpur. Mangalore deliberated on the Central Budget • Sri.Anhay Bhagat, Regional Secretary, presented in the Parliament on 05.07.2019 and Surat. its implications on the lives of the people of the country, the economy, industry, banking The Central Committee Members and finance etc. congratulated all the newly inducted Regional Secretaries and wished them all success in all The General Secretary presented an exhaustive their future endeavours in strengthening Report on the latest developments on the CBROA in their respective regions. issues of Pensioners and retirees of Banking Industry, Judgement delivered by the DLCs at There was elaborate discussion on the Hyderabad, Jabalpur, Ajmer, Ranchi, Silchar following topics: on the issue of Gratuity Calculation, CBROA activities. There was a lively debate on the 1.Membership enrolment of retiring as well various issues confronting the retirees of retired officers of our Bank. Banking Industry. The General Secretary 2. Arrears Collection. offered his clarifications, on various points 3. Streamline working of WhatsApp Group by raised by the Members. The General Secretary's avoiding unnecessary messages, information Report was adopted unanimously under not connected with the Pensioners/Retirees, thunderous applause by the members. AIBPARC, CBPRO, AIBOC, UFBU etc. The Channel should be used to communicate the There was a discussion on the proposed information on the developments on the issues Benevolent Fund to be floated by CBROA for of pensioners/retirees of Banking Industry. the benefit of members and the Central Committee felt that the issue needs to be The Central Committee Members in one voice studied in depth and hence the decision to appreciated and complemented the excellent introduce the Scheme was deferred for the arrangements made by our Hyderabad Unit in time being. It was also resolved to hold the holding the Meeting in such beautiful ambience Central Committee Meeting for only one day and at very affordable cost. instead of for two days. It was also resolved to send our printed communications to those who Sri. Laxmikanth Nayak, Deputy General have not registered their E-mail IDs with us. Secretary, proposed vote of thanks.

The following members were co-opted as MEETING OF MEMBERS AT Regional Secretaries by the Central SHIVAMOGGA, KARNATAKA Committee. • Sri. A A Varaprasad Rao. Regional A Meeting of CBROA Members was held at Secretary, Hyderabad. Shivamogga on 23.07.2019 at the Conference • Sri K Shanmughasundaram, Regional Hall of R O Shimoga. More than 20 members Secretary, Salem. were present in the Meeting. The AGM of the RO graced the occasion. Sri.Subbarao, Regional 22

Secretary, dealt with the proceedings of the and explained the relentless campaign recently held Central Committee Meeting at launched by our apex body in clinching the Hyderabad and explained the various issues. He also explained the efforts made by developments on the issues of CBROA to mitigate the hardship faced by the pensioners/retirees in the Banking Industry. He retired Officers and employees of our Bank. He explained the efforts made by our apex body clarified various queries raised by the Members AIBPARC in getting the issues resolved. He in the Meeting. He made an appeal to all the made a mention about the present position of members present in the Meeting to strengthen the Writ Petition filed in the High Court of CBROA in Indore Region by enrolling all the Karnataka seeking Updation of Pension. He retired Officers as members of our Association. appealed to the members present to enroll all Summarising the day’s proceedings Sri. V G our retired/retiring Officer colleagues into our Pande, our Senior Member, who presided over fold, contribute to the Legal Fund of our the Meeting, expressed his happiness over good Association. Sri Rohit, Marketing Executive attendance by the members who had from Bajaj Allianz Insurance Co. explained the assembled despite heavy showers. He made a details of Canara Bajaj Group Hospital Cash fervent appeal to the top leadership of CBROA Plan for our members. Sri. K R Lingappa, our and AIBPARC to pursue all our issues vigorously. Senior Member and AGM (Retd) presided over He also assured the Regional Head and others the Meeting and made a mention about the that the retired Officers will extend all possible formation of Vishrantha Noukarara Sangha co-operation in improving the business of the established at Shivamogga recently and gave a Region. Sri. V K Mehra welcomed the gathering. call to the members to participate in the social Sri.Kanungo proposed vote of thanks. activities undertaken by the Sangha. Sri. Subbarao, Regional Secretary welcomed and MEETING OF MEMBERS AT BHOPAL Sri. D Annappa proposed vote of thanks. ON 25.07.2019.

MEETING OF MEMBERS AT INDORE Our Bhopal Unit had organized a Meeting of our ON 24.07.2019. members at RSTC Bhopal. About 20 members were present along with 4 leaders of M P State A Meeting of our Members was held at R O Unit of AIBPARC i.e. Sri.Agarwal, Sri.Verma, Indore at 6 pm on 24th July,2019. About 30 Sri.Shankar and Sri Khare. Sri. R K Bharadwaj, members of our Association attended the Chairman, CBOA graced the occasion. Sri. Meeting. The Meeting was graced by Sri. R K Agarwal, State Secretary, AIBPARC, explained Sinha, R O Head and AGM, R O Indore, Sri. J C various issues of Pensioners/Retirees and the Sharma, Divisional Manager, R O Indore, efforts made by CBPRO, AIBPARC in pursuing Sri.Sanjay Goel, CBOA. Addressing the these issues. He was all praise for CBROA for its gathering Sri.Sanjay Goel expressed his effective involvement in all the happiness to be amidst the seniors and assured programmes/activities of AIBPARC/CBPRO. Sri. all support to CBROA in the State. Our General Bharadwaj lauded the efforts of CBROA in Secretary Sri. A N Krishna Murthy, dealt at pursuing issues of pensioners such as updation length the various issues confronted by the of pension, improvement in family pension, IBA pensioners and Retirees in the Banking Industry Health Insurance Scheme etc. and expressed 23

hope that all the demands of the retirees will Mr. Atul Singh informed the Wage be met very shortly. Sri A N Krishna Murthy our Talks/fractured Mandate, Stand of AIBOC, General Secretary, apprised the house about likelihood of introduction of Minimum Wages the latest developments on the various issues Policy by the Govt., Awarding of Marks to the such as updation of pension, improvement in staff basing on their performance & Campaign family pension, IBA Health Insurance, Gratuity launched by CBOA to help our Bank in recovery issues, the present position of Writ Petition of technically written off A/cs. (D4/Loss filed by CBROA in the High Court of Karnataka, Assets). While seeking retirees' help in this campaign launched by CBPRO/AIBPARC for campaign, Mr. Atul Singh assured of all support settling the issues of pensioners/retirees of to CBROA. Banking Industry. He gave a call to all the members present to strengthen CBROA by Mr. A N Krishna Murthy, GS, apprised the House bringing all our retired/retiring Officer the present position of colleagues as members of our Association. Sri.Pradeep Deshpande welcomed the • Updation of Pension, gathering. Sri.Pankaj Chaturvedi proposed vote • Family Pension, of thanks. • IBA Health Insurance, • Gratuity Issues, • Removal of ceiling of Rs. 3 lake for Sri. R K Bharadwaj, Chairman, CBOA who is payment of IT on Encashment of PL at retiring on 31.08.2019 has become a member the Time of retirement, of our Association. • Writ Petition filed by CBROA at Karnataka High Court, Bengaluru MEETING OF MEMBERS AT ALIGARH demanding Updation of Pension, ON 26.07.2019 • efforts of CBROA & our Apex Organisations - CBPRO & AIBPARC in Our Aligarh Unit had organised a General taking up our genuine demands with Meeting of our Members yesterday - 26th July various Authorities, • Welfare Activities & Communication at our Aligarh Main branch. About 40 Members system of CBROA, were present. • Creation of CBROA Legal Fund to fight various Court Cases, Mr. Atul Singh, RS, CBOA was on the Dais along • Decision of CC to grant Associate with CBROA DGS, Mr. Vidhu Mohan, CBROA Membership to the spouses of our AGS, Mr. K R Gupta from Agra, Aligarh District Deceased Members, Chairman Mr. R C Gupta. Sr. Member, Mr. S N • Possibilities of Starting a Death Agarwal presided over. Relief/Benevolent Fund Scheme, etc.

The Meeting started with lighting of Lamp & by While clarifying various issues raised during the offering floral tributes to our Founder, Late open session, the GS informed the need to Ammembal Subba Rao Pai. Our DGS, Mr. strengthen CBROA by roping in Non Members & Vidhu Mohan welcomed the gathering. appreciated / complimented the Good Work being done by Aligarh Team led by Mr. Vidhu Mohan.

The House observed a minute's silence on the • Gratuity Issues, occasion of Vijay Divas in memory of martyrs of • Removal of ceiling of Rs. 3 lake for Kargil War. payment of IT on Encashment of PL at the Time of retirement, Mr. C P Gupta compered the proceedings. • Writ Petition filed by CBROA at Karnataka High Court, Bengaluru demanding Updation of Pension, The Meeting concluded with Mr. Kanchi Lal • efforts of CBROA & our Apex proposing Vote of Thanks. Organisations - CBPRO & AIBPARC in taking up our genuine demands with MEETING OF MEMBERS AT AGRA ON various Authorities, 27.07.2019 • Welfare Activities & Communication system of CBROA, A General Meeting of our Members was held • Creation of CBROA Legal Fund to fight today Morning - 27th July at our Agra Accounts various Court Cases, Section. About 40 Members were present. Our • Decision of CC to grant Associate Membership to the spouses of our Sr. Member Mr. R P Goyal presided over the Deceased Members, meeting, with Mr. Ankit Sehgal, RS & Mr. A B • Possibilities of Starting a Death Gupta, ARS of CBOA, CBROA AGS, Mr. K R Relief/Benevolent Fund Scheme, Gupta & RS Mr. Pankaj Saxena being on the • Formation of Defence Panels at all Dais. Centres to defend our Members as Bank is initiating Disciplinary Proceedings The Meeting started with offering floral against Retirees even after retirement, tributes to our Founder, Late Ammembal Subba etc. Rao Pai. Our AGS, Mr. K R Gupta welcomed The GS clarified various issues raised by the the gathering. Members & requested all the Members to Mr. Ankit Sehgal requested the House to bring strengthen CBROA by roping in Non Members. to the knowledge of CBOA leaders in case of During the course of the Meeting, the House problems bring faced by them at any of our was informed of untimely death of one of our branches. He also informed about the Sr. Members, Mr. Somanath Srivastava. The Campaign launched by CBOA to help our Bank House observed a minute's silence to mourn the in recovery of technically written off A/cs. sudden demise of Late Srivastava. (D4/Loss Assets) & requested the retirees’ help in this Campaign. Mr. Pankaj Saxena proposed Vote of Thanks. Mr. Ankit assured of all support to CBROA. Congratulations to Mr. K R Gupta & his Team for the successful conduct of Agra Meeting. Mr. A N Krishna Murthy, GS, apprised the House the present position of

• Updation of Pension,

• Family Pension, • IBA Health Insurance, 25

MEETING OF MEMBERS AT • Removal of ceiling of Rs. 3 lake for GHAZIABAD ON 28.07.2019 payment of IT on Encashment of PL at the Time of retirement, Our Ghaziabad Unit had organised a General • Writ Petition filed by CBROA at Meeting of our Members today Morning (28th Karnataka High Court, Bengaluru July) at 11.30 am at Ghaziabad. About 35 demanding Updation of Pension, Members were present. Our Sr. Member Mr. S • efforts of CBROA & our Apex C Upadhyay presided over the meeting. Our VP Organisations - CBPRO & AIBPARC in Mr. Umesh Kumaria, our Ghaziabad RS Mr. P K taking up our genuine demands with Agarwal & CBOA OGS, Mr. Arun Sharma were various Authorities, also on the Dais. • Welfare Activities & Communication system of CBROA, Our RS, Mr. P K Agarwal, while welcoming the • Creation of CBROA Legal Fund to fight gathering, informed that after the last meeting various Court Cases, held in Sep 2018, the Region has added 21 new • Decision of CC to grant Associate Members, converted 6 Ordinary Members as Membership to the spouses of our Life Members & collected Rs.35000/- towards Deceased Members, CBROA Legal Fund. • Possibilities of Starting a Death Relief/Benevolent Fund Scheme, Mr. Umesh Kumaria requested the Members to strengthen CBROA & to contribute to CBROA • Formation of Defence Panels at all Legal Fund to enable us to fight the Court Cases Centres to defend our Members as Bank effectively. is initiating Disciplinary Proceedings against Retirees even after retirement, Mr. Arun Sharma informed the House about the etc. intention of the Union Govt. to privatise various Public Sector Units, stalemate in Wage The GS clarified various issues raised by the Negotiation Talks, the need to assist/guide the Members, Mr. Charan Jeet Arora, Mr. Ajay youngsters at the branches to improve their Kapoor, Mr. Yashpal Arora, Mr. Maheshwari & efficiency & to avoid any frauds. He assured others. He complimented Team Ghaziabad for that he can be counted upon for any support to the Good Work being done & requested all the CBROA. Members to strengthen CBROA by roping in Non Members. Mr. A N Krishna Murthy, GS, explained the present position of 2 Sr. Members Mr. M L Pahawa & Mr. B D Chawda were honoured on the occasion. • Updation of Pension, Mr. Charan Jeet Arora proposed Vote of • Family Pension, Thanks. • IBA Health Insurance, • Gratuity Issues, Mr. P K Malhotra compered the program.

Team Ghaziabad led by Mr. Agarwal deserves Mr B Z Hussain, Mr M S Kamath, Mr A Ramesh all Appreciation Shettigar conducted various games, quiz etc. Mr P H Balakrishna, Mr Sudhakar Mangalpady, VANAMAHOTSAVA/PICNIC Mrs & Mr Sudarshan Kamath, Mr George Lobo 28.07.2019 at Mangaluru and Mrs Nora Lobo, Mr S Abdul Rehman Sheikh, Sri B S Hegde, Mr M S Bhat, Mrs and Mr Devidas It was a day full of fun and entertainment. As Rao, Mrs R M Prabhu Mrs K K Kini entertained planned the bus started from Mangalore at 8 with their melodious songs. Mrs Kasturi Pai and am sharp. Twelve cars also left at the same Mrs Meenakshi enacted a wonderful skit, which time. Altogether it was a grand gathering of was liked by all. A group dance by ladies stole 100 members, family and friends. Soon after the show. Mr M S Bhat was at his best with a reaching the Kodman Heights Layout, the solo dance. Self-introduction was held. venue, everyone had their breakfast. Soon Feedback on today's programme was also after, entire team reached the top of the collected. Prizes were distributed at the end. layout, where an elaborate arrangement was in place for planting about 80 saplings. This year Mr Shekhar who takes care of all plants was it was predominantly fruit bearing trees such honoured for his selfless service to mother as Mangoes (different variety) Guava, Nature. Seethaphal, Pomegranate, Chikoo etc. The inaugural function was addressed by Sri B Mr L K Nayak and wife were also felicitated. Srinivas Hegde, former GM, Sri T G Shenoy, former AGM and Sri Kantappa Shetty, Local Programme ended sharp at 5 pm after National leader and a prominent personality. Panchayat Anthem. President Mr Natish Naiga and other local people were also present. All the saplings were REPORT ON SOCIAL ACTIVITY neatly planted and photographs were taken to CONDUCTED BY CBROA cherish the memory. VIJAYAWADA REGION

A gala of entertainment activity started As decided in our Region's meeting held on thereafter. The Felicitation function of Sri B S 26th of this month, today we have conducted Shetty was conducted in a befitting manner. Mr social activity under our banner CBROA. B S Shetty shared his experience in Indian Air Force, specially the two wars of 1965 and 1971. Dinner was provided to about 75 orphan He thanked CBROA for facilitating him on children taking shelter at Deepa Nivas, Karmel attaining 75 years. Sri T G Shenoy spoke on the Nagar, Vijayawada. occasion and said it is a great honour for us to GENERAL MEETING AT DELHI ON facilitate Mr Shetty, who has served our 29.07.2019 Country by joining Air Force at a very young age. Mrs Rekha Shetty, wife of Sri B S Shetty Our DELHI Unit had organized a General was honoured in the traditional way By Mrs G R Meeting of our Members at YMCA CENTRE HALL Nayak. on 29th July at 4.30 pm. A gathering of 100+

members from Delhi Faridabad & Gurgaon were doubts raised. He also informed the pending present. issues with Canara Bank, IBA and Central Government like Medical Insurance, Pension Mr. Umesh Kumaria, Mr.Mohan (Chennai), Mr. Updation & improvement in Family Pension on A R Rakshit (Kolkata), Mr. Charanjit, CBOA DGS the line of Central Government, Gratuity, etc. Delhi & Mr. Gambhir, DGS CBOA Gurgaon were and also Court cases filed in different courts in on the Dais. the country. He requested the House to strengthen CBROA & to donate to CBROA Legal CBROA AGS Mr. Ashwani Sharma welcomed the Fund. An amount of Rs.28100/- was collected gathering. on the spot.

After self introduction of Members, a minute's Mr Charanjit DGS CBOA and Mr Gambhir DGS silence was observed in memory of Members CBOA were also honoured. In the address Mr departed during the intervening period. Charanjit welcomed the leadership of CBROA also urged the retired members to attend 4 Sr. Members - Mr. B M Gupta & Mr. Kewal monthly meeting of CBOA and assured of full Kumar Khullar from Delhi & Mr. O P Dhawan & support to CBROA. Mr. Y P Bakshi from Faridabad were honoured on attaining 75+ years of age. All the honoured Mr Gambhir also informed the latest Members expressed satisfaction on being developments & assured of all support to remembered & wished CBROA success in all its CBROA. endeavors. Mr. N Venkataramani proposed Vote of Thanks. Many doubts were raised by members. General Thanks to Mr. Kumaria, Mr Ramani, Mr. Ashwani Secretary Mr. A N Krishna Murthy in his 90 Sharma, CC Members & RSs of Delhi, Gurgaon minutes Key note address, clarified all the & Faridabad for making the Meeting successful.

BANKING NEWS / DEVELOPMENTS

RBI GOVERNOR MEETS PUBLIC assets resolution and credit flows to the needy SECTOR BANK HEADS, REITERATES sectors. During the Meeting the following issues CALL FOR TRANSMISSION were discussed:

Reserve Bank Governor recently met the heads • Less than desired level of transmission of Public Sector Banks and reiterated his of monetary policy rates. concerns over the “less-than-desired level” of • Credit and Deposit growth on the back policy rate transmission by the lenders. of a slowing economy, flow of credit to Acknowledging the “discernible improvements needy sectors while following prudent in the Banking Sector,” the Governor pointed lending, robust risk assessment and out that there still are several challenges to be monitoring standards. addressed, particularly in regard to stressed 28

• Improving recovery efforts. by Transunion CIBIL and Small Industries • Giving impetus to resolution of stressed Development Bank of India (SIDBI) It changed assets facilitated by revised framework little from the bad loan ratio in the quarter for resolution announced by the RBI on ended December,2018. 7th June,2019. • Strengthening internal control The delinquency ratio may not be capturing the mechanism for improved fraud risk full extent of stress in the system because management. Banks have retained as Standard assets a • Recent initiatives to address issues roughly Rs.15,000 crore worth of stressed relating to NBFCs and the role banks can micro, small, medium enterprises (MSMEs) play in mitigating lingering concerns. loans under two sets of regulatory dispensation. The NPA ratio however, was • Deepening Digital payments. significantly higher in the large and medium The Governor also underlined the importance enterprises segments at 18.1% and of expanding and deepening payments 17.1%respectively. The gross NPA ratio for the ecosystem in line with the recommendations of commercial segment as a whole eased to 16% the Report of the Committee on Deepening of in March 2019 from 17.2% in March,2018. Digital Payments (Chairman : Sri. Nandan These loans would have turned NPAs a long Nilkani) and RBI’s Payment System Vision time ago had the RBI not given Banks a Document 2021. In this context, on the breather. A June 2018 notification had allowed suggestion of the Governor, it was agreed that Banks and NBFCs to temporarily classify their Banks will identify one district in each state to exposure to all MSMEs, including those not make it 100% digitally enabled within a time registered under the GST, as a Standard Asset frame of one year in close co-ordination and as long as it was smaller than Rs.25 crore and collaboration with all stake holders including standard as on August 31,2017. MSME loans .SLBCs. To the extent feasible, such districts worth Rs.7,995 crore had been retained by may be converged with the “Transformation of Banks as Standard under this RBI notification. Aspirational Districts’ Programme” of the Government of India. IBA is also expected to NPA CRISIS : LOAN WRITE OFFS BY play a catalytic role in this regard. BANKS CROSS Rs.2 LAKH CRORE.

SME BAD LOAN RATIO REMAINS Write offs made by 27 Banks in FY 2019 crossed the Rs.2 lakh crore mark, with 16 Public Sector HIGH AT 10.8% IN THE MARCH Banks along accounting for Rs.1.77 lakh crore QUARTER. worth of written off loans. In FY 2018, PSBs had Stress in the micro, small and medium written off loans worth Rs.1.28 lakh crore. Had enterprises (MSMEs) segment remained high in banks not written off loans worth close to the quarter ended March,2019, according to Rs.2.06 lakh core in FY 2019, the value of non- the July,2019 edition of the MSME Pulse Report performing assets (NPAs) in the system at the end of the year would have risen by an 29

equivalent amount. The amount of loans CHANGE : RBI SETS UP REVIEW written-off in FY 2019 by PSBs could turn out PANEL to be even higher as the numbers for Dena Bank and Vijaya Bank, which now stand merged with The charges you pay for using ATMs of other Bank of Baroda, were unavailable. State Bank Banks may change. The RBI in its Monetary of India made the largest amount of write offs- Policy has announced the setting up of a worth Rs.61,663 crore, up by 57.5% from FY Committee to review the ATM interchange fee 2018. It was followed by Canara Bank, whose structure. This fee structure determines the written off loans added upto Rs.14,267 crore charges you pay for using your ATM Card at the and BOB, which wrote off loans worth ATMs of Banks other than the issuing Bank. Rs.13,102 crore in FY 2019. Normally a certain number of such transactions are allowed free by the issuing Bank. However, BANKS’ BAD LOANS DOWN AT you are charged for using the ATMs of other Rs.9.34 LAKH CRORE AT FY 2019 Banks for transactions beyond a certain END. number which may vary from one issuing bank to another. Total Bad loans of commercial banks declined by Rs.1.02 lakh crore to Rs.9.34 lakh crore in Currently ICICI Bank offers first three the fiscal year 2018-19 on the back of steps transactions in a month (inclusive of financial taken by the Government, the Union Finanace and non-financial) free of charge in six Metro Minister informed the Parliament. The Locations. In other cities, first five transactions Government has instituted a comprehensive (inclusive of financial and non-financial) are 4Rs strategy by recognition of Non-Performing offered free of charge. Thereafter, Rs.20 per Assets (NPAs) transparently, resolution and financial transaction and Rs.8.50 per non- recovery of value from stressed assets, financial transactions, as per the Bank’s recapitalizing of Public Sector Banks and website. Similarly, State Bank of India offers reforms in PSBs so as to reduce their bad loans. same number of free transactions in both Among others change in credit culture with the metro and non-metro locations. Thereafter, it Insolvency and Bankruptcy Code (IBC) charges Rs.20 plus GST per financial fundamentally changing the creditor-borrower transaction and Rs.8 plus GST for non-financial relationship, taking away control of defaulting transaction as mentioned in its website. companies, debarring willful defaulters from taking part in resolution process as well as STATE BANK OF INDIA HAS BEEN raising funds from markets are the steps that CAUGHT LYING ABOUT ITS PROFITS have been employed. FOR THREE YEARS.

ATM TRANSACTION CHARGES FOR According to an expose by Moneylife, State OTHER BANK ATMS LIKELY TO Bank of India overstated its profits by as much as Rs.9,500 crore for three years in between 2012-13 to 2014-15. What makes it worse is 30

that all this information is available with operating current accounts, and reporting of Reserve Bank of India and the details came out Data on Central Repository of Information on after a petition was filed under the Right to Large Credits. SBI was also found to have Information (RTI) Act, by an RTI Activist, violated RBIs directions on fraud risk Sri.Girish Mittal. management and classification and reporting of frauds. Year Overstated Profit 2012-13 Rs.1,220 crores ALLAHABAD BANK REPORTS 2013-14 Rs.5,038 crores Rs.688.27 CRORE FRAUD. 2014-15 Rs.3,252 crores Allahabad Bank informed Reserve Bank of India and SEBI, on 17th July,2019 about a fraud of It is reported that the annual inspection of Rs.688.27 crore by a Ludhiana based textile Bank’s Accounts by RBI has opened a Pandora’s company. A few days back the bank had Box where many evils have come out, viz. bank reported a fraud of over Rs.1,775 crore by has suppressed employee fraud, covered bad Bhushan Power & Steel Co. Ltd. The bank has loans, flouted anti-money laundering rules, informed that for outstanding dues of resorted to window dressing. The Bank has also Rs.688.27 crore NCLT Proceedings are in flouted norms laid down by RBI with regards to progress. KYC, Lending limits set on sectors and individuals. In many cases the bank has not PUNJAB NATIONAL BANK HIT BY enforce securities provided on a loan wherein ANOTHER FRAUD OF Rs.3,800 assets of defaulters are taken over. In some CRORE. cases loans were disbursed even before a charge was created on the collateral. The Punjab National Bank has reported a Suppression of data has happened at every borrowing fraud of Rs.38.05 billion in Bhushan level since most of the credit problems were Power and Steel Ltd’s account to the Reserve never taken to the board as well. Bank of India. The fraud alleging “diversion of funds from the Banking system” was reported (Source : Money Life dated 09.07.2019). to RBI on the basis of the findings of the RBI IMPOSES Rs.7 CRORE FINE ON forensic audit and the Federal Police filing an SBI FOR VIOLATION OF VARIOUS FIR. It has been observed that the company has misappropriated bank funds, manipulated REGULATORY GUIDELINES. books of accounts to raise fund from The RBI has imposed an aggregate penalty of consortium of lender Banks. The Bank has Rs.7 crore on State Bank of India for non- already made provision of Rs.19.32 billion. compliance with directions issued by RBI. SBI Punjab National Bank was defrauded to the was found to have violated asset classification tune of Rs.1,400 crore in a scam perpetrated norms, code of conduct for opening and by diamontaire Nirav Modi and Mehul Chokshi, which came to light last year. 31

IL&FS HOSTED TOP EXECUTIVE OF of service and salary. National Pension System CREDIT AGENCY, BRICKWORK on the other hand is market linked. AGENCY, GOT HIGH RATINGS NPS was introduced in 2004 and made Investigating how the IL&FS group companies mandatory for all Central Government were able to retain high credit ratings even as Employees. It was subsequently extended to they faced a severe liquidity crunch and the State Government employees also and to ultimately defaulted in September,2018, the Private Sector. However, some officials have found evidence pointing to Government employees organizations have conflict of interest. It is confirmed that consistently opposed the NPS since it does not Brickwork Ratings, allegedly gave favourable provide a fixed pension amount. There was ratings to debt instruments of IL&FS group some expectation from some sections that the companies as its founder Director D Government may reintroduce OPS for Central Ravishankar allegedly received IL&FS Group’s Government employees based on this Hospitality in Spain along with his family. This opposition. However, the Government has included watching a football match in Madrid firmly laid any speculation in this direction to in the IL&FS Box. The investigating authorities rest. are probing this alleged nexus and will take action accordingly. The Board of Directors of The Government cited two reasons for its IL&FS has sent its MD and CEO on leave with refusal to reintroduce OPS. First, it pointed to immediate effect pending completion of the a “rising and unsustainable pension bill” and examination of anonymous complaint received said that “the Government had made a by the SEBI conscious move to shift from the defined benefit, pay-as-you-go Pension Scheme to LABOUR defined contribution pension. Second, it said that “the transition also helped in freeing the GOVERNMENT RULES OUT limited resources of the Government for more REINTRODUCTION OF OLD PENSION productive and socio economic sectoral SCHEME development.”

In a written reply to a question asked in the The NPS does not provide a guaranteed pension Parliament, the Government ruled out but allows subscribers to invest their pension reintroduction of Old Pension Scheme (OPS) for corpus in Government bonds and equities. In Government employees. This scheme which the recently announced budget, the existed before the introduction of the National Government increased its contribution to NPS Pension System (NPS) in 2004, provided for a for Central Government Employees from 10% to defined benefit pension to Government 14%. It also permitted Central Government employees. A defined benefit is fixed and employees to invest in NPS Tier II and get the determined with reference to number of years benefit for tax deduction under Section 80 C. Such an investment will have a lock-in period 32

of three years. It also increased the tax-free and Union Bank of India are currently under the portion of the NPS corpus on maturity from 40% scanner and will be charged for relevant to 60%. All these measures have made the NPS offence soon. 13 Officers from the Department more attractive to Government employees. of Coal, 7 Officers from Ministry of Urban Development, 3 from Ministry of Defence who CENTRAL VIGILANCE COMMISSION are accused of corruption, will also face the (CVC) TELLS MINISTRIES TO TAKE departmental action. Major penalty has also ACTION AGAINST CORRUPT been recommended for four Officers from BUREAUCRATS BEFORE THEY BSNL, 2 Officers each from Department of RETIRE. 25 OFFICIALS FROM STATE Expenditure and Central Board of Direct Taxes. BANK OF INDIA, CANARA BANK, In May 2019, CVC directed the Central Board of PUINJAB NATIONAL BANK, OTHER Excise and Customs to dismiss three Officers BANKS UNDER SCANNER. from service involved in corruption cases. Two Officers from Bank of Maharashtra and The anti-corruption watchdog Central Corporation Bank were sacked and major Vigilance Commission (CVC) has asked the penalty was imposed against at least 70 Government Departments to take timely action Government Officers. against tainted bureaucrats and not wait till their retirement. The CVC Communique comes The CVC has specifically pulled up Central in the backdrop of government pushing for Public Sector Undertakings (CPSUs) and Banks compulsory retirement of deadwoods and for delaying disciplinary action against the tainted Officers in the Central ministries and charged Officers. The Commission has said that departments. 25 Officers from The State Bank several files for advice are being received just of India, Canara Bank, Punjab National Bank, weeks before the Officer’s retirement. Indian Bank, Bank of Baroda, Syndicate Bank,

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