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

451 Vol 38 - 7 January, 2020

The year bygone that started with a strong hope of early in the industry had bottomed out. FY 2018-19 wage settlement in the backdrop of the stupendous ended with the Banking Industry posting lower net success of the two-day strike in December-2018 has losses at Rs. 81752 crore as against Rs. 85370 been very tumultuous for the Banking Industry. The crore, the previous year. year saw the merger of and As everything seemed to be falling in place, with [BoB] and unfolding of the saga Government of India started the “Ideation Program” of the system/employee/procedure integration at in the first week of August, 2019 to culminate BoB. in a grand review by the top echelons of all the The country, waited with bated breath to witness stakeholders with a grand intention of ensuring who will take the seat of power at the Centre. May, that banks lend more under flagship schemes of 2019, saw Sri Narendra Modi taking over for the the Government, aimed at a target group of the second term as the Executive Head of the country. society. Contrary to the expectations, on 30th New Government got down to the business with the August at about 04.30 pm, Finance Minister presentation of full-fledged budget and announcing announced the Big Bang merger of 10 Public huge capitalisation of PSBs, thus the hopes of the Sector Banks, into 4, leaving out another 6 in "Acche Din" for bankers resurrected. However, there uncertainty. The announcement by the FM on PSB was not much for the common man to cheer about. merger drew more criticism than accolades in the Parliament saw renewed activity with the passage print media. The economy which was tottering of a number of bills and disinvestment gaining under increased inflation received a severe blow momentum to fund the fiscal deficit. As it was not and slipped to its lowest in the last 5-6 years. Un- moving in the direction as was thought of, GoI badly relented and in order to put up a brave face, as an needed to fund the fiscal deficit and the reserves appeasement to the corporates, the Corporate Tax of Reserve were transferred to the was cut, effectively lowering it to around 25% from Government, just to rid the suffocation and easing around 35%; foreign investor rules were relaxed the breath of the Treasury. and the Government has undertaken the biggest privatization drive in more than a decade. Banking Industry that was passing through toughest of times in the last couple of years was slowly seeing Some of the important bills passed in the year light at the end of tunnel and it was hoped that NPAs relate to The Muslim Women (Protection of Rights

Edited and Published by Editor Members Asso. Editor Y. Sudhindra Y. Sudhindra K.B. Prasada Satish Shetty Devaraja B.P. on behalf of the Owners : Rachappaji J. Printed by: Officers’ M. Rajesh Dange Founder Editor : Sri T.R. Bhat Organisation (Regd.) Codeword Process & Printers, Licensed to Post Under License 106, Lobo Prabhu Court, Falnir, Mangalore - 575 001 MNG/128/2015-17 & SK/MNG/WPP/7 Light House Hill Road, Mangalore - 575 001 e-mail: [email protected] * Visit us @ our website:www.cboo.org * Phone: CBOO Central Office : 2422712, 2422501 * CBOO CENTRE : 2493 698 Officers’ Voice, January 2020 2 on Marriage) Bill, 2019, The Motor Vehicles going to cripple the already skewed job market, (Amendment) Bill,2019, The Right to Information whether these codes will generate employment (Amendment) Bill, 2019, The Occupational and ease doing business or not is a looming Safety, Health and Working Conditions Code, question. However, these codes are likely to 2019, The Codes on Wages, 2019, The Jammu change the employment profile that will ease and Kashmir Reorganisation Bill, 2019, The the hire and fire policy of the corporates, which Industrial Relations Code Bill, 2019, The will be draconian. While exhorting the officers Citizenship (Amendment) Bill, 2019, The Code on in the Bank to stand up against the ill-advised Social Security, 2019 apart from amendments to moves of the Government, we also need to stand Companies Act and Insolvency and Bankruptcy with those fighting for the cause of working Code etc. This apart, the Hon’ble Supreme class in protecting their rightful rights. It is most Court, in its landmark judgement, settling the unfortunate in the Indian system that the policy makers/rulers have no accountability for flawed decades old Ram Janma Bhoomi-Babri Masjid policies imposed during their regime. issue setting it to rest and leaving little scope any further, for future litigations. There are serious challenges to the banking sector unions in the year ahead. Unsettled Last couple weeks of the year 2019 saw an bipartite has withered the aspirations of million unprecedented rise in resentment by a section of strong bankers (considered as organised sector), the society against The Citizenship (Amendment) especially as the gains of December, 2018 Bill, 2019 (Now an Act) which till going to press Strike was frittered away due to stoic silence. is simmering at various parts of the country with Subsequently announced Strike was cleverly some witnessing bloody scenes and curfew being manoeuvred by the Government into deferment clamped at a few places. by the gullible unions (never to be re-strategised Important among all, relevant to the working for the entire year). Bankers feel let down from class, was the compression of 44 labour all sides. laws into four ‘codes’ — Wage Code, Social The merger which is nearing in an unimaginable Security Code, Industrial Relations Code and speed has disappointed almost all the target Occupational Safety, Health and Working bank unions, with the acquirer bank unions (and Conditions Code having large ramifications. In big brothers) hugging the dead silence. Absence the name of employment generation and ease of of unity of purpose, shackled with ‘supremacy doing business, the codes were mainly favouring ego’ among the various unions has helped the the entrepreneurs while visibly dis-favouring the Government (Owner) to bulldoze and deride the working class, at large. This is mainly an act to de- ‘million strong’ organised sector. Government’s unionise and cripple any collective fight against initiatives for Privatisation of major Public Sector the injustice meted out to the working class Undertakings has gone totally overlooked. while giving a whip in hand to the corporates to AIBOC must resurrect its fighting spirit – even exploit the working class further. However, many alone, if need be - and save the situation – now in various circles disagree that these proposed and immediately, or can never in the near future. four codes will draw investors. There are also 2020 will be a more turbulent year, if the many in the economic and financial parleys who developments in 2019 are any indication. Though vocally voiced their disenchantment. “There isn’t optimistic ray of hope is hoped for the betterment much scientific evidence to show that relaxation of the organised and unorganised sectors, the in labour laws will make much difference in working class – more importantly the baking terms of attracting foreign capital”, said K.R. sector unions - may have to struggle even just to Shyam Sundar, a Professor at the Xavier School retain their previously hard-earned trade union of Management in Jamshedpur. “It will rather rights which are under attack by the ‘Ease of lead to uncertainty.” doing Business’ devil and our own complacency. Unmindful to the fact that the PSB merger is OV Officers’ Voice, January 2020 3

GREETINGS Dawn of January, 1st will mark a new year ahead. We marched through 2019 – marking a new beginning with the passage of baton of leadership in CBOO at the triennial conference; change of guard at the Bank; infusion of capital by the Government of India; painful FY end with a loss of Rs 6333 crore; NDA coming back to power; turnaround in Q1 FY 2019-20, dooms day announcement of merger of 10 PSBs in to 4 and our Bank as one of the target banks to be merged with ; economic slowdown, landmark judgements with potential to change the face of the country; political turmoil in parts of the country due to CAA/NRC etc. 2020 marks significance for CBOO as it fights the merger menace and tries to retain the identity of our beloved Bank. It goes without saying that support from every corner in the Bank is expected in this endeavor. It is in this backdrop that we are moving into 2020 with huge expectations and hope to save the identity of our 113-year-old Bank. Let’s be determined in our fight to stall the ill-advised move of merger of Banks and save Public Sector Banks in general and our Bank in particular. It is the duty of every soldier of the Bank to fight for honour and perform well in the year ahead, bring laurels to the Bank and fame to CBOO. CBOO greets all its members for the success in their fight against merger, all Happiness and Prosperity in the New Year – 2020.

[SATISH SHETTY] [Y SUDHINDRA] GENERAL SECRETARY PRESIDENT

C O N T E N T S Page No. CBOO News...... 4 Members Meet...... 7 Swasti...... 9 AIBOC News...... 10 Banking Round up...... 13 Miscellany...... 20 Circular Round up...... 29 Retirements...... 32 Health Watch...... 35 In Lighter Vein...... 36

To look back all the time is boring. Excitement lies in tomorrow. - Makarova Officers’ Voice, January 2020 4

a. At branch, due to frequent power failure, Cboo news non-availability of alternate line coupled with non-availability of UPS with BSNL, the branch Branch Visits is facing severe connectivity issues. b. At , one officer is required. 01. Vice President, K B Prasada accompanied by c. Markumbi (single officer branch) is working on Rajkumar, Area Secretary, Chandrakanth and V-Sat and connectivity is very slow, Sub-staff is Sripad, Activists visited shared with nearby branch. Bidar, Chillargi, Basavakalyan, Maniknagar, d. Clerical staff shortage is observed at Turamuri Mahagaon Cross and Kerebosaga branches on branch. 11.12.2019 AND 04. On 11.12.2019, the team led by A.V. Ramana Afzalpur, Kalaburagi – Ramamandir, Vidyanagar, Prasad, Joint General Secretary, Vishwas Shahbazar, Bhagyanagar and Main branches on Rahegaonkar, EC member, Y.S. Anand, Zonal 12th Decemeber, 2019. Secretary, Bangalore (South), Gajanan Shenvi, CM, During the visits, 2 membership forms was obtained Raichur – Main Branch and Vinay Kumar, Area and staff members at these branches interacted Secretary visited Shahapur, Yadgiri, Chicksugur, with the visiting union functionaries and sought Raichur – Gunj and Jewargi branches. The team clarification on Bank Merger, which was clarified. interacted with all the staff members and the 02. On 11.12.2019, the team comprising of Devaraja following issues were observed: - B.P., Joint General Secretary, Venkideshwaran, a) Shahapur Branch needs to be shifted to ground Zonal Secretary - , Ashok Kumar Kotian, Zonal floor. Secretary - Udupi and Mahant Patil, activist visited Lokapur, Bilgi, Girisagar, Bagalkot – Navanagar, b) Chicksugur branch needs to be shifted since Bagalkot – S N M College & Bagalkot – Main it is situated on the first floor and the main Branches and interacted with the members. The entrance of the branch faces the drainage. following issues came up during interaction with Stench from the drainage is nauseating to our members: the staff and customers, which is unbearable during Summer. a. Bilgi branch needs an Officer to deal with NPA accounts, as the Branch is saddled with very c) Jewargi branch is a single Officer branch and high NPA. needs to be provided with an Officer as the b. Bagalkot – Navanagar Branch needs an business has grown beyond 20 Crore. additional Officer. 05. On 11.12.2019, a team led by Alok Kumar c. Bagalkot – Main branch is yet to be posted with Paul, Joint General Secretary, Rachappaji J, one Officer and one Clerk, as per the sanctioned Secretary, Benevolent Fund, Banitosh Das, Circle strength. Secretary, Kolkata, Roshan Xavier Kujoor, Zonal 03. On 11.12.2019, team comprising S Prakasa Secretary, Kolkata along with Sharana Basavaraj, Rao, Treasurer, Sobha L, Deputy General Secretary, Area Secretary visited , Athani, Nandgaon, Uday Khade, Assistant General Secretary, Rajesh Chikkodi and branches. It was observed Kumar, Zonal Secretary – Thane and Praveen Tejan, during the visit of the team that: - Activist visited Kadabi, Tadasalur, Markumbi, a) Darur branch does not have a Cash Cabin, , and Bailhongal Branches and Strong Room. The Cashier/SWO sits across interacted with all the staff members. open table and keeps the cash received in the

When you like your work, every day is a holiday. -Frank Tyger Officers’ Voice, January 2020 5

drawers of the same table which poses high risk 08. On 12.12.2019, team comprising to the Branch and the staff. Venkideshwaran, Zonal Secretary - Kochi, Ashok Kumar Kotian, Zonal Secretary - Udupi, Sharana b) Athani branch needs to be provided with Basavaraj, Area Secretary and Mahant Patil, the services of an AFO exclusively since the Activists visited , Beeranagaddi, , branch has an exposure of Rs. 135 Crore under & Branches and had interaction Agriculture alone. The branch needs to be with all the staff members. renovated. a. Gokak Branch needs to be posted with one c) Nandgaon branch does not have a toilet, does more Officer and a clerk since the business has not have ventilation, no proper furniture and grown, substantially. fixtures. d) Alagawadi branch is a single Officer branch, b. An Officer is yet to be posted to Beerangaddi with only one clerk and a very large number (Single Officer) Branch. of accounts are pending for CKYC compliance, 09. On 12.12.2019, team comprising Sobha L, which is extremely difficult. Deputy General Secretary, Shilpa Divatagi, Zonal 06. On 11.12.2019, a team led by B. Sridhar, Vice Lady Secretary and Suvendu Panda, Activist visited President along with K.S. Karthick, Asst. General Belgaum – Samadevi Galli, Nehru Nagar, Retail Secretary and Suresh, Area Secretary visited Loan Center, Benakanahalli and Turamuri Mudhol, Hulyal, Muttur, Jamkhandi, Bijapur – Branches and had interaction with all the staff New Court Road and Bijapur – Main branches. members. The team interacted with all the staff members. The a. At Belgaum – Samadevi Galli Branch, due following issues were brought to the notice of the to heavy inflow of cash from LIC, branch is team: - incurring about Rs 60,000/- towards remittance a) ATM of Muttur branch is not working since the charges, while the entire balance is transferred flooding in August, 2019. to IDBI Bank at the end of the day. Replacement of a Clerk is yet to be made. 07. On 12.12.2019, the team comprising of Devaraja b. At Benakanahalli, foot falls are heavy and to B.P., Joint General Secretary, Shikha Srivastava, ease the burden on the scarce staff, Kiosk is Secretary Women’s Wing, Sanjeev Kamble, Zonal required. Clerical staff shortage is observed. Chairman and Jayashree Rathod, Activist visited Belgaum – Shahpur, Belgaum – K L S, Yalluru, c. Clerical staff shortage is observed at Turamuri Peeranwadi and Belgaum – Tilakwadi branches branch. and interacted with members. The following issues 10. On 12.12.2019, S. Prakash Rao, Treasurer, came up for discussion: Uday Khade, Assistant General Secretary, Rajesh a. Access road to Belgaum – Shahpur branch is Kumar, Zonal Secretary, Thane along with Mayur very congested. Gaikwad, Activist visited Kadarvalli, Turukar Shigihalli, Khodanpur and Belwadi branches. b. Yalluru branch faces connectivity issues. The Office bearers interacted with all staff members c. Peeranwadi branch is situated on the first floor. and the following issues were brought to the notice The ambience of the branch is very poor, due of the visiting team: - to the bad condition of the premises. Working environment is not congenial and poses health a) Alternate connectivity (line) to be provided hazards to staff members. The Branch needs to Kadarvalli, Turukar Shigihalli & Belwadi immediate shifting. Branches.

Power comes from sincere service - M K Gandhi Officers’ Voice, January 2020 6 b) Kadarvalli Branch needs one Clerk. CKYC c) branch is a single Officer branch and needs needs to be outsourced since there are more to be provided with an Officer. Branch is not than 22000 accounts. provided with proper furniture. The Branch does not have a cash cabin. c) Turukar Shigihalli branch which is situated in a remote village to be considered as a hardship d) Soundalaga branch faces connectivity problem, Centre in view of the poor transportation facility continually. ATM is not functioning properly. to the place/branch. Boards mandatorily to be displayed are to be provided to the Branch. d) Khodanpur branch needs to be provided with an AFO. 13. On 12.12.2019, the team led by B Sridhar, Vice President with K.S. Karthick, Assistant e) The AFO provided to Belwadi branch is General Secretary and Sanjeev Kulkarni, Deputy attached to another 4 branches, due to which Zonal Secretary visited Sindhagi, Muddebihal, the services are not available properly to any of , Bevoor and Ilkal branches. The team the Branches. interacted with all the members and the following f) Officers are finding it difficult to avail leave even issues were brought to the notice of the team: - during urgencies, since either a deputation a) Scale I officer posted as Branch Manager to is not available or the Zonal Office does not Ilkal Branch which is a Medium Branch. sanction the leave. b) One Officer and one Clerk are required by 11. On 12.12.2019, the team led by A.V. Ramana Sindhagi branch. A Business correspondent Prasad, Joint General Secretary, Vishwas needs to appointed for the Branch. Deputation Rahegaonkar, EC member, Y.S. Anand, Zonal is hard to come by, whenever sought. Secretary, Bangalore (South), and Vinay Kumar, Area Secretary visited Raichur – Main, Lingsugur, c) Muddebihal branch needs to be shifted for the Manvi and Sindhanur branches. The staff members convenience of customers. and officers interacted with the visiting team. The d) Connectivity (BSNL) is poor at Nidagundi following issues were noticed by the team: - Branch. No alternate connection provided. The a) Lingsugur branch needs to be shifted since the old computer systems of the Branch are quite same is situated by the side of a drainage. slow and need to be replaced with new ones. Services of the AFO is not available exclusively/ 12. On 12.12.2019, a team led by Alok Kumar Paul, sufficiently for the Branch. Joint General Secretary, Rachappaji J, Secretary, Benevolent Fund, Banitosh Das, Circle Secretary, The common issues at all the branches related Kolkata, Roshan Xavier Kujoor, Zonal Secretary, to CKYC issues and receipt of huge number of Kolkata along with Vijay, Area Secretary visited applications under Fasal Bhima Yojana on the last , , , , Adi day. All the staff members were unanimous in and Soundalaga branches and interacted with their view that our Bank should not be merged with all the staff members. The following issues were Union Bank of India. brought to the notice of the team: - All the staff members in all the branches visited a) Navalihal branch needs to be provided with at by the team joined in discussions along with our least two new computer systems. members and interacted freely. Staff thanked b) Sankeshwar branch needs to be provided CBOO for undertaking Branch visits, which is an assistance either by additional staff or through opportunity for them to know about various issues outsourcing to complete the work related CKYC affecting the Bank and staff. compliance of more than 24000 accounts. -Manoj Chichwadi, Zonal Secretary

A good memory is one trained to forget the trivial. - Clifton Fadiman Officers’ Voice, January 2020 7

narrated on the efforts put in to stall merger of members meet our Bank in meeting the Finance Minister Mrs. Nirmala Seetaraman along with Pejawar Mutt Belagavi Swamiji. Apart from meeting various political Taking advantage of the EC meeting being held, leaders, eminent personalities have also been met a meeting of the members of Belagavi Zone was and they have also expressed similar sentiments, held on 13th December, 2019 at Hotel Sankam he said. The Massive Rally and Dharna by all bank Residency, Belagavi. unions under the aegis of UFBU at Delhi on 10th December, 2019 was a massive success and on the President, Y Sudhindra, General Secretary, Satish side lines of the rally, he said that UFCBU leaders Shetty, Devkant Pawar, Circle Secretary, Bangalore, also met Cabinet Minister, Shri. Giriraj Singh and Zonal Chairman, Sanjeev Kamble, Zonal Secretary, submitted a memorandum. Manoj Chinchewadi, EC Members along with Zonal level functionaries were present. Around On developments in Bipartite Settlement, he said 100 members from branches as far as Sangli and that there is not much forward movement, however, Kolhapur also attended the meeting. The Deputy all concerted efforts are being made to get a good Zonal Head, Smt Pushpa Kishore was present. deal, he concluded and requested all the members to stand united and fight for the common cause.

Sanjeev Kamble, Zonal Chairman, welcomed the President, Y Sudhindra, highlighted the financial gathering and expressed happiness for permitting position of Bank and said that though, Bank has the unit to hold EC meeting for the first time shown profit for the half year ended September, in Belagavi. He highlighted on the activities 2019, there is systematic decline in the business undertaken by the unit like Women’s Day, Men’s of the Bank since 2011 due to wrong decisions of Day Celebrations and also the efforts put in to Chairman from time to time. He said merger will be address of the members’ issue. a catastrophe as many branches will be closed that Speaking on the occasion, Satish Shetty, will affect customer service, future employment General Secretary said that Finance Minister’s generation etc. He also said that Government of announcement of Bank merger on 30th August, 2019 India is not ready to accept the reality especially is neither good for the country nor for the economy. on the economic and financial front that is hurting He said that revival of United Forum of Corporation the people of the country. Instead of addressing Bank Unions [UFCBU] is an important development the causes for steady decline in GDP and Industrial and all the constituents are equally concerned and Production, Government is busy in appeasing the share a common vision of fighting against merger corporates, he said. of our beloved Bank. In this direction, he said, While briefing on the ill effects of merger, he said that demonstrations were held at various places that a lot of wrong messages are being spread in immediately on 31st August, 2019 in front of HO social media and that members should be cautious and all Zonal Offices to vent our displeasure. He

All for one, one for all. DUMAS: The Three Musketeers Officers’ Voice, January 2020 8 and messages received from their Zonal Secretary Speaking on the occasion, Satish Shetty, General only should be considered. Quoting instances Secretary questioned the rationale of Bank merger relating to SBI merger and BoB merger, he said the announced by the Finance Minister announcement experience at these Banks is not at all good and on 30th August, 2019. He said that merger of PSBs the grass root level employees are the worst hit. He will hurt the economy in the long run. Elaborating concluded, seeking support of the members to fight on the struggle against merger, he said that revival merger of our Bank and said that the leadership is of United Forum of Corporation Bank Unions well aware of the feelings of the officers. [UFCBU] is an important development and all the constituents are equally concerned and share a The meeting that was well compered by Sanjeev common vision of fighting against merger of our Kulkarni, Area Secretary ended with vote of beloved Bank. The next day of announcement of thanks proposed by Shilpa Divatagi and concluded merger, i.e., on 31st August, 2019, demonstrations with National Anthem. were held at various places to vent our displeasure. -Manoj Chinchwadi, Zonal Secretary He said that the Finance Minister Mrs. Nirmala Seetaraman has not been correctly apprised on the Hubli ill effects of the merger of PSBs. On 15th December, 2019, a member’s meet was He said that with the blessings of Pejawar Mutt held at Hotel Hans, Hubli. President, Y Sudhindra, Swamiji, myself and our President met the FM and General Secretary, Satish Shetty, Zonal Head, Sri C submitted a memorandum to her. The Massive Prabhu along with leaders and functionaries from Rally and Dharna day by all bank unions under the zone were present. the banner of UFBU at Delhi on 10th December, The meeting started at about 11 am with lighting of 2019 was a massive success and on the side lines the lamp by the dignitaries on the dais. More than of the rally, he said that UFCBU leaders also met 75 members from various branches attended the Cabinet Minister, Shri. Giriraj Singh and submitted meeting. Ramachadra Waichal, Zonal Secretary, a memorandum. welcomed the gathering and presented a brief on On developments in Bipartite Settlement, he said the activities undertaken by the unit. He requested that there is not much forward movement, however, the support of the members in the on-going struggle all concerted efforts are being made to get a good against merger of our Bank and all agitational deal, he concluded and request all the members to activities. stand united and fight for the common cause.

President, Y Sudhindra, highlighted the financial position of Bank and said that though, Bank has shown profit for the half year ended September, 2019, there is systematic decline in the business of the Bank since 2011 due to wrong decisions of Chairman from time to time. He said that merger in SBI has led to closure/amalgamation of more than 6950 branches, leading to heavy job loss, current as well as future. SBI had an intake of more than 17000 personnel in 2016-17, before Sri C Prabhu, Zonal Head, while recalling his merger, however, after merger they have recruited association with CBOO said that the organization has only around 3000 personnel. This apart, the staff always helped people in need and he was also one of strength at SBI before merger was around 209000 beneficiaries. He utilized the best of the opportunity and with merger around 71000 employees of in conveying to the gathering the concerns of associate banks became members of SBI, and they the management and advised the members to be were denied working conditions on par with SBI cautious in their work area and ensure that all the and within a year, the staff strength was 261000. laid down systems and procedures of the Bank are What happened to the remaining employees, he scrupulously followed. questioned? Similar situation will arise in all the Officers’ Voice, January 2020 9

Banks after the merger process and the future concluded seeking support of the members to fight employment of our children, will be severely merger of our Bank and said that the leadership is affected is said. well aware of the feelings of the officers.

On the messages in Whatsapp, he cautioned not to The meeting that was well compered by fall prey and consider only the messages received Ramachandra Waichal, ended with vote of from their Zonal Secretary. Quoting instances thanks proposed by Rajeswari Desai, Zonal Lady relating to SBI merger and BoB merger, he said, Secretary and concluded with National Anthem. the experience at these Banks is not at all good and -Ramachandra Waichal, Zonal Secretary the grass root level employees are the worst hit. He

Our President, Y Sudhindra, General Secretary, swasti Satish Shetty, Deputy General Secrertary, R K Sharan, Circle Secretary, Manjeet Singh, Zonal Secretary, Deepak Kumar, former Vice President, Delhi - North Anil Pahwa and activists, Chandrakanti, Pankaj On 11th December, 2019 an activity under Swasti Kumar and Shweta Kumari. The Ashram is donated was organised at Sai Vridh Ashram, Nihal Vihar, with 6 ceiling fans, 6 wall fans, 3 Desert Coolers, 15 Delhi. The Ashram run by Sadhu Savitri Sai Sewa chairs and a water purifier under Swasti program Samiti for the last 13 years caters to the destitute, in a very simple function. Snacks and Juice was aged & needy sections of the society i.e. physically served to the inmates under the guidance and handicapped, disabled due to some illness, supervision of Sri Tarkeshwar Singh ji, founder of abandoned/disowned elderly people or people who the Ashram. do not have any surviving member in their family, mainly brought by the police picked up from railway station, road side etc. The Ashram also takes care of preserving the body up to 3/4 days after death waiting claimants before resting the souls in peace as per the customs of the deceased’s religion, in case of no claim. There were 65 inmates during the visit of the CBOO team. CBOO team was pained to see that some inmates are from very good family background even some are getting pension but the children have abandoned them.

-Deepak Kumar, Zonal Secretary- Delhi North.

We always have time enough, if we will but use it aright - Goethe Officers’ Voice, January 2020 10

The following political personalities and trade aiboc news unions leaders addressed our Dharna and extended their support to our demands. Text of AIBOC Circular No. 2019/78 dated M/s 12.12.2019 Pradeep Bhattacharya, MP Congress To All Affiliates (Please Circulate) Dr. K.V.P. Ramachandra Rao, MP Congress Dear Comrade, Saugata Roy, MP Trinamool DHARNA BEFORE PARLIAMENT AGAINST Congress MERGER OF BANKS – A GRAND SUCCESS Sukhendu Sekhar Ray, MP Trinamool Congress We reproduce hereunder the text of UFBU Circular No.2019/14 dated 12.12.2019 on the captioned M. Shanmugam, MP DMK and Gen subject for your information. We congratulate all our Secy, LPF affiliates who have participated in large numbers T.K.S. Elangovan, Ex MP DMK with a special mention to Officers’ D. Raja, Ex MP CPI Association, who have mobilised more than 350 members across the country. We also congratulate Binoy Viswam, MP CPI our Delhi, Punjab, Chandigarh, Haryana, and Uttar T K Rangarajan, MP CPI-M Pradesh State Committees for ensuring the success Elamaram Kareem, MP CPI-M of the dharna with their massive participation. N K Premachandran, MP RSP With greetings, R C Kuntia, Ex MP INTUC Sd/- Amarjit Kaur AITUC (Soumya Datta) General Secretary Harbajan Singh Sidhu HMS

Text of UFBU Circular No. UFBU/2019/14 Swadesh Dev Roye CITU dated 12.12.2019 Santosh Kumar Rai AICCTU

CIRCULAR No. UFBU/2019/14 Satyavan Singh AIUTUC

Date: 12.12.2019 Lata Behn SEWA R S Dagar UTUC TO ALL CONSTITUENT UNIONS/MEMBERS C Srinivas Progressive Dear Comrades, Forum, AP

OUR DHARNA BEFORE PARLIAMENT We highlighted the following issues and demands in AGAINST MERGER OF BANKS - A GRANDS our Dharna: SUCCESS • STOP MERGER OF BANKS Dharna before Parliament organized by us on 10th • Stop banking reforms December 2019 against the proposed merger of 10 • Ensure recovery of bad loans Banks and retrograde banking reforms agenda of • Take stringent action against defaulters the Government, was a grand success. Nearly 3000 • Do not harass customers with penal charges employees and officers from various States and • Do not increase service charges banks enthusiastically and massively participated • Increase interest rate on Bank Deposits in the Dharna. • Stop attacks on jobs and job security • Adequate recruitment in all Banks

All your strength is in your union, All your danger is in discord. -Longfellow: Haiwath Officers’ Voice, January 2020 11

At a time when the economy of the country is facing Text of UFBU Circular No. UFBU/2019/13 a severe slowdown and banks have a very important dated 05.12.2019 role to play to boost the economy that should be the priority of the Government. But unfortunately, CIRCULAR No. UFBU/2019/13 Government is targeting the banks for wholesale Date : 05.12.2019 mergers, large scale closure of branches, diversion TO ALL CONSTITUENT UNIONS/MEMBERS of attention from bad loans recovery, reduction in interest on deposits, levying more service charges Dear Comrades, and penal charges on ordinary banking public, etc. WAGE REVISION – TALKS HELD WITH IBA ON Mergers are totally unwarranted and cannot be the 05-12-2019 solution for the problems of our economy or the challenges facing the banks. Another round of negotiations was held today between IBA and UFBU in the IBA office in Mumbai. Recovery of bad loans by stringent measures is the IBA team was led by Shri. Rajkiran Rai. G (MD-CEO, need of the hour. But the Government is forcing Union Bank of India), Chairman of the Negotiating the banks to resolve the bad loans through heavy Committee and from UFBU, representatives of concessions and haircuts and thus banks are all the nine constituent unions were present. losing their hard earned profits towards provisions Discussion was held on following points. for these bad loans of the corporates. The Dharna participants raised powerful slogans Increase in wage hike %age: From our side, we condemning the Government’s policies in respect of demanded that their earlier offer of 12% is not at all banks, particularly the proposed merger of banks. adequate and hence IBA should improve their offer. Leaders of our constituent unions also addressed IBA informed that looking to various constraints of the Dharna. Banks’ profitability, it would be difficult to improve their offer to which we did not agree. IBA thereafter We hope that the Government would understand stated that they would discuss amongst themselves the protest and resentment of the bank employees and let us know during the next round of meeting. under the banner of UFBU and retrace their decision, failing which further agitational Mandate issue: IBA informed that the issue of programmes would be discussed and decided. mandate upto scale VII stands resolved.

With greetings, Merger of Special Allowance with Basic pay: Yours comradely, We insisted that the present special allowance be Sd/- merged with basic pay while working out the revised SANJEEV K. BANDLISH pay/scale under the ensuing settlement. IBA CONVENOR informed that our demand can be accepted if the additional cost involved towards superannuation Text of AIBOC Circular No. 2019/77 dated benefits is found to be affordable. It was agreed 05.12.2019 that the cost would be worked out in detail and a To All Affiliates (Please Circulate) final decision would be taken thereafter. Dear Comrade, Improvement in Family Pension: IBA reiterated TALK WITH IBA ON 05.12.2019 that they are seized of the matter and already in We reproduce hereunder the text of UFBU Circular touch with the different stake holders to get it No.2019/13 dated 05.12.2019 on the captioned approved at the earliest possible. subject for your information. Updation of pension: IBA stated that while they With greetings, appreciate the demand for updation of pension, Sd/- looking to the different categories of pensioners of (Soumya Datta) the past ranging from 1986, the cost is very high General Secretary to which the unions demanded the data to get it

Freedom awakens hope. - Indira Gandhi Officers’ Voice, January 2020 12 calculated from their actuaries. IBA sought the banking reforms initiated by the Govt. of India. names of the actuaries from UFBU side to whom Accordingly, threadbare discussion held at the the data was to be shared for computing the cost. meeting on related issues and a joint dharna programme has been decided to hold. Text of the PLI: From UFBU we pointed out our concerns joint circular dated 19th November 2019, signed by especially linking ROA as an ingredient for the the General Secretaries of the participant unions/ purpose of working out the performance matrix associations describing the details is appended. We and creation of more steps in the gross operating specially appeal to our State Units of Delhi, Punjab, profits so that the maximum number of banks get Haryana, Chandigarh and Uttar Pradesh to ensure the benefit of PLI. IBA appreciated our view points participation of members in large numbers to make and agreed to provide us with a revised formula for the Dharna a great success. Incidentally, AIBOC our consideration, where after the issue would be was represented by Comrade Debasis Ghosh, discussed further. President; Comrade Sanjay A Manjrekar, Sr. Vice 5 Day Banking: Regarding 5-day banking IBA President and the undersigned at the meeting. advised that they are seized of the importance of With greetings, the issue and assured the unions that they will try to take it forward. However, there were constraints Sd/- on account of other stake holders. We insisted that (Soumya Datta) this issue should be addressed and resolved on General Secretary priority. ALL INDIA BANK EMPLOYEES’ ASSOCIATION – AIBEA IBA informed that they would like to sort out all ALL INDIA BANK OFFICERS CONFEDERATION - AIBOC these issues at the earliest so that we can move ALL INDIA BANK OFFICERS’ ASSOCIATION - AIBOA towards reaching understandings to finalise the BANK EMPLOYEES’ FEDERATION OF INDIA - BEFI settlement. We informed that we would also seek INDIAN NATIONAL BANK EMPLOYEES FEDERATION - INBEF an early settlement provided our justified demands INDIAN NATIONAL BANK OFFICERS CONGRESS - INBOC are considered favourably. 19th November 2019 With greetings, Dear Comrades, Yours comradely, MASSIVE DHARNA BEFORE PARLIAMENT ON Sd/- 10.12.2019 SANJEEV K. BANDLISH OPPOSING MERGERS OF BANKS & ANTI- CONVENOR COMMON MAN BANKING REFORMS Text of AIBOC Circular No. 2019/74 dated All our members are aware that our organisations 21.11.2019 are opposed to merger of banks, which are totally To All Affiliates (Please Circulate) unwarranted. However, Government has been pursuing the policy of merger of Public Sector Dear Comrade, Banks despite the adverse implications. MASSIVE DHARNA BEFORE PARLIAMENT ON Mergers of Associate Banks with State Bank of 10.12.2019 India demonstrated to the world at large that it was OPPOSING MERGERS OF BANKS & ANTI- a financial disaster. The amalgamation of Vijaya COMMON MAN BANKING REFORMS Bank and Dena Bank with Bank of Baroda has also On 19th November 2019, 6 (six) constituents of amply established that it was another failure. Now, UFBU, viz. AIBOC, AIBEA, AIBOA, BEFI, INBEF a mega merger of ten banks has been announced. and INBOC met at AIBEA office, Kolkata to Experience of mergers in the country and across chalk out future course of action on agitation globe has clearly shown that no benefit accrues against proposed amalgamation and so-called

A handful of men can throw the world off its hinges, provided they are united in thought, word, and deed – never forget this conviction. -Swami Vivekananda Officers’ Voice, January 2020 13 to any of the stake holders. On the other hand, it is felt necessary to intensify our agitation and in the name of rationalization of branches, large protest against the proposed merger of ten banks. number of branches would be closed affecting Accordingly, it is decided to hold a massive the common man. Millions would be affected as DHARNA BEFORE PARLIAMENT AT 10-30 AM employment - both direct and indirect - would take ON 10TH DECEMBER, 2019. a hit. Merger of Public Sector Banks will definitely deprive affordable banking to the poor and the Further programmes are being finalised in needy. Equally important is that the attention of consultations with all Unions and Associations. the banks will be shifted from recovery of stressed We request all our affiliates and members to assets/NPA/bad loans and serving the common participate in large numbers and make the Dharna man, to merger related complications. Mergers a total success. create monopolistic situation and cost of banking services is bound to go up, hurting the interest of With greetings, common man. Merger is nothing but a calculated move to divert the nation’s attention from the piling Sd/- Sd/- Sd/- up corporate defaults. CH VENKATACHALAM SOUMYA DATTA S. NAGARAJAN AIBEA AIBOC AIBOA We continue to protest and oppose any reform Sd/- Sd/- Sd/- that is not in the best interest of the countrymen DEBASISH BASU C. SUBHASH S. K.K. NAIR and the banking industry. In this background, BEFI INBEF INBOC

the organisation. Organisations need to adopt the banking round up defence in-depth approach to protect themselves against such thefts. Banks must put in place additional controls to Apart from implementing security solutions such prevent thefts from ATMs, says RBI’s IT arm as anti-malware and following process such as Monitor suspicious traffic, integrate threat intelligence hardening and patch management, organizations with security mechanisms, says ReBIT report should implement additional controls such as With the use of malware in ATM thefts seeing a - segregation of network and monitoring on its considerable increase over the years, banks need to suspicious traffic; training and awareness of the implement additional controls, including segregation employees; and integration of threat intelligence of network and monitoring of suspicious traffic into security mechanisms. and periodic threat hunting within their network, ReBIT has also suggested periodic threat hunting according to the RBI’s IT subsidiary Reserve Bank within an organisation’s network; sandbox-based Information Technology Pvt Ltd (ReBIT). This deduction mechanisms; and comprehensive cyber observation comes in the backdrop of the Lazarus drills, including communication with vendors, Group, a cryptocurrency hacking group known card networks and other critical infrastructure for affiliations with the North Korean government, dependencies to mitigate the risks of ATM thefts. developing a new strain of malware to record and Adopting such an approach would not only enable steal data from cards inserted into ATM machines an organisation to prevent or reduce such thefts but in India. also help respond in a more planned and effective The banking malware – ATMDTrack – has been way, it added. As of August-end 2019, there were active in India since last summer, Kaspersky Lab 2,28,170 ATMs across the country. researchers said in a published report, said ReBIT JokerStash expose in a report. Some of the factors contributing to the proliferation of thefts, as per the report, is the lack Recently, the Cyber Security and Information of implementation of adequate security controls Technology Examination (CSITE) Cell of the RBI’s related to the ATMs and the overall network of Department of Banking Supervision had issued

A man in debt is so far a slave. -Ralph Waldo Emerson Officers’ Voice, January 2020 14 an advisory asking banks to take necessary the litigation settling the matter over eligibility of action to secure their customers’ card data after it bidders has dragged the insolvency process. came to light that a large number of credit/debit The case was originally admitted by the NCLT on card information, including ‘Track2 details’, were August 2, 2017. Both ArcelorMittal and Numetal available on the website ‘JokerStash’. About 1.3 had submitted resolution plans on February million Indian payment cards were reportedly put 12, 2018, a little over six months after the NCLT up for sale on JokerStash. admitted the case. However, on March 23, 2018, CSITE asked banks to perform a preliminary analysis the resolution professional found both ArcelorMittal of the disclosed card information to verify the data. and Numetal to be ineligible under Section-29A. It If the leaked data is found to be genuine, CSITE told was only on October 4, 2018 – over a year after the banks to disable and re-issue the credit and debit case was first admitted – that the Supreme Court cards as per the bank’s policy. Banks have been cleared the air and gave one more opportunity to advised to monitor credit/debit transaction for the both resolution applicants to pay off the NPAs of detection of frauds and misuse. Further, customers their related corporate debtors and resubmit their need to be sensitised to use credit/debit cards in resolution plans. a secure manner in all modes of transactions – But the high drama did not end there. In January this online, point of sale. CSITE has advised banks to year, the promoters of Essar Steel had challenged take necessary proactive measures to identify and the insolvency proceedings under Section-12 A of guard against such misuse of customer credentials. the code by offering to pay a full debt settlement - The Hindu BusinessLine, 12/11/2019 of 54,389 crore, far higher than ArcelorMittal’s bid of 42,000 crore. Why SC ruling in Essar Steel case is important The case made an important headway when the After a long-drawn battle that lasted for nearly 900 NCLT rejected the promoter’s proposal, stating days, the Essar Steel case has reached finality, that under Section-12 A withdrawal from IBC with the Supreme Court setting aside the National could be sought only by the applicants – financial/ Company Law Appellate Tribunal’s (NCLAT) ruling operational creditors. Hence, in March, the NCLT and upholding the Committee of Creditors’ (CoC) had upheld ArcelorMittal’s Rs 42,000 crore offer to decision on how the funds from the Rs 42,000-crore lenders. But the case did not end there. The issue offer by ArcelorMittal would be distributed among of distribution of the proceeds among financial and the creditors. operational creditors dragged the case for another The ruling has essentially upheld the rights of eight months. secured creditors, which is a huge relief, and sets NCLAT order a critical precedence for future cases. The CoC had decided on a resolution plan that gave secured In July, the NCLAT order, which put secured creditors 92 per cent of their claims. The NCLAT creditors on par with operational creditors, had had worked out a plan that gave secured creditors rattled lenders. The original plan, as approved by only 60 per cent of their claims. the CoC, had admitted financial creditors’ claims of Rs 49,473 crore (against the submitted Rs Sequence of events 55,440 crore) and operational creditors’ Rs 5,074 Essar Steel was among the first 12 big defaulters crore (against the submitted 27,101 crore). that banks sought to resolve under the RBI’s The NCLAT, however, in a bid to safeguard directive in 2017. Since then, the case has seen operational creditors’ interests, bumped up the some high-stake legal wrangling and has tested claims to be admitted for operational creditors and various points of law in the code. Section-29A was then assigned the proceeds to both operational inserted in the code in 2017 to keep out errant and and financial creditors in the same 60.7 per cent willful defaulters from buying back assets. The proportion. This meant a huge mark-down in Essar Steel case has been a classic one in which

If it were easy to arouse enthusiasm as it is suspicion, just think what could be accomplished. Officers’ Voice, January 2020 15 the distribution of proceeds to secured financial has been given to the Committee of Creditors to creditors from what was envisioned in the CoC- classify creditors and to pay secured creditors approved plan. amounts that can be based upon the value of their security”. The NCLAT order raised two key points, which were later sought to be addressed by the amendments The other key point of contention in several cases to the code in August this year. The SC judgment has been the grounds on which the commercial has further removed the ambiguity on these aspects wisdom of the CoC can be questioned by the and set a clear ground for future cases. The first adjudicating authority. Under Section-31 of the key point is the manner of distribution of proceeds. code, the adjudicating authority has, in various The NCLAT order had prescribed a sharing cases, reviewed the resolution plan to see if it does arrangement that treated identically all classes of or does not conform to the requirements of the code. creditors – secured, unsecured financial creditors The SC clarified that there is limited judicial and operational creditors. review available within the code. The adjudicating The NCLAT had held Section-53 of the code (which authorities can see whether the approved resolution lays down the hierarchy of payment in liquidation, plan meets the requirement laid down under the where unsecured and operational creditors come code. It cannot otherwise reverse the commercial after secured creditors) irrelevant under the decision of the CoC. insolvency process. But the amendment to the code While the SC ruling has lent relief to secured in August – under Section-30 sub-section 2 (b) – had creditors, the position of operational creditors is clarified the rights of dissenting financial creditors still unclear. While the SC has stressed that the and operational creditors, ensuring a minimum CoC must consider the interests of all parties while amount both under resolution or liquidation in deciding the resolution plan, it has also stated that accordance with Section-53, in turn upholding the CoC does not act in any fiduciary capacity to any principle of repayment hierarchy that gives priority group of creditors. to secured creditors. Not mandatory The Supreme Court judgment has offered more clarity on this aspect. “The equality principle One of the key amendments to the code in August cannot be stretched to treating unequal’s equally sought to tighten the deadlines for resolution under as that will destroy the very objective of the code – the IBC. A mandatory timeline of 330 days was to resolve stressed assets. “Equitable treatment is set, including any interim litigation period. The to be accorded to each creditor depending upon the SC has struck down the word ‘mandatory’ and class to which it belongs to: secured or unsecured, allowed the process to extend beyond the deadline financial or operational.” in certain cases where the delay has been due to the tardy process of the adjudicating authority or Stressing the point further, the SC has stated that the appellate tribunal. if an “equality for all” approach is to be adopted, secured financial creditors may be incentivised to - The Hindu BusinessLine, 16/11/2019 opt for liquidation rather than resolution. One of Insurance cover on bank deposits set to go Up the key issues raised by the NCLAT was whether the CoC (comprising financial creditors) is empowered Insurance cover on bank deposits will go up, Finance to distribute proceeds among various creditors. Minister Nirmala Sitharaman has indicated. She also said stricter regulations for co-operative banks The SC judgment has removed any ambiguity on are on the anvil to avoid Punjab & Maharashtra Co- this aspect by placing the manner of distribution Operative Bank (PMC) kind of incidents. “Relevant of proceeds within the ambit of the commercial acts will be amended (for hiking insurance cover on decisions of the CoC. The apex court, in its 164- deposit),” Sitharaman told reporters here on Friday. page order, stated that “full freedom and discretion

All the world’s a stage, And all the men and women merely players. -Shakespeare Officers’ Voice, January 2020 16

Currently, the Deposit insurance and Credit of these rules would likely bring about a faster Guarantee Corporation (DICGC) provides for cover resolution to insolvency cases of corporate debtors of Rs 1 lakh per depositor (since May 1993) for as well. deposits of commercial banks, regional rural banks “The insolvency of personal guarantor to a corporate (RRBs), local area banks (LABs) and co-operative debtor being dealt with at the same bench which banks. At the end of FY19, the number of registered is hearing the insolvency of the corporate debtor insured banks stood at 2,098, comprising 157 will improve potential recovery for lenders and commercial banks and 1,941 cooperative banks. On make the recovery process more holistic and easier the PMC Bank issue, the Minister said that a Bill procedurally, said Manoj Kumar, a partner at law will be introduced to make regulations stricter. firm Corporate Professionals. According to the “Banking functions undertaken by the co-operative Supreme Court’s recent ruling in the Essar Steel banks following prudential norms aims to be case, overturning an order of the National Company brought under Banking Regulation Act,” she said Law Appellate Tribunal, claims against a personal adding that effort is to table the Bill during the guarantor would not extinguish once a resolution Winter Session of Parliament beginning November plan for the corporate debtor was approved. The 18. new framework will allow creditors to continue The Minister also said the preliminary process under the recovery process with personal guarantors the new funding window for real estate has begun after the completion of the corporate insolvency for four projects located in Mumbai, Hyderabad resolution process. The move is the first phase of and Bengaluru. The scheme as approved by the operationalising personal insolvency via IBC. In Cabinet on November 6, aims to provide fund for October, corporate affairs secretary Injeti Srinivas projects which need money at the final stage. She had said the government was planning to fully said a timeline of 40 days has been fixed to fully operationalise the personal insolvency regime under opertionalise the fund which has an initial corpus the IBC in one year. of Rs 25,000 crore. A non-adjudicatory process to resolve debts of Telcos’ loss small distressed borrowers through a “fresh start” mechanism and the insolvency of sole A day after two telcos reported a whopping Rs 74,000 proprietorships and partnerships are two further crore loss in the three-month period, Sitharaman categories of debtors that will be brought into the said that she does not want any company shutting ambit of IBC under personal insolvency regime. down business in any sector. -The Economic Times, 20/11/2019 Every Indian company should be around, doing business and flourish, she said while responding to SEBI tightens norms for loan default disclosure a query on distress call by telecom companies. by listed firms -The Hindu BusinessLine, 16/11/2019 Listed companies cannot hide their loan default beyond 31 days. At its board meeting on Wednesday Personal Guarantor Insolvency Under IBC From market regulator SEBI mandated that “In case of December1 any default in repayment of principal or interest on The government on Tuesday notified rules for the loans from banks or financial institutions which initiation of insolvency proceedings against personal continues beyond 30 days from the pre-agreed guarantors to corporate debtors, to be applicable payment date, listed entities shall, promptly, but from December 1. Under these rules, if insolvency not later than 24 hours from the 30th day, disclose proceedings against a corporate debtor under the the fact of such default.” Insolvency and Bankruptcy Code are already in Higher net worth for PMS process, the same bench of the bankruptcy court would also deal with the proceedings against the The regulator also tightened the norms for the personal guarantor. Experts said the introduction portfolio management services (PMS) industry.

Welcome is the visitor who appreciates the value of another’s time. -Author unknown Officers’ Voice, January 2020 17

SEBI said that the net worth criterion for portfolio Finally, RBI discloses list of large willful managers will now be `5 crore instead of `2 crore defaulters earlier. Those with a net worth of less than `5 After repeatedly blocking requests to reveal the crore will not get SEBI registration. This, experts names of large willful defaulters in the country, said, would affect thousands of portfolio managers the has finally made the list across India. SEBI has given a three-year timeline public. In response to an application filed by an for existing portfolio managers to meet the new online news site, the RBI has disclosed the names criteria. It also raised the minimum ticket size of 30 willful defaulters who collectively account for for investors who want to use portfolio managers’ `50,000 crore of outstanding dues. The list includes services to `50 lakh from `25 lakh. SEBI said that entities such as Gitanjali Gems, Ruchi Soya, ABG portfolio managers would now have to compulsorily Shipyard, Kingfisher Airlines, Rotomac Global, appoint a custodian and a compliance officer. Zoom Developers, Deccan Chronicle Holdings, Winsome Diamonds, REI Agro, Siddhi Vinayak Dhaval Kapadia, Director, Portfolio Specialist, Logistics and Surya Pharmaceutical Ltd. Some of Morningstar Investment Advisors India, said these companies are already under the NCLT-led “Globally, regulators typically don’t follow the insolvency process. practice of defining an investment floor for PMS According to the RBI guidelines, a willful default is products. Instead, they define the type of investors deemed to have occurred if the borrower has not met who can invest in them, called accredited or repayment obligations despite having the capacity qualified investors with certain minimum net worth to do so. The has so far declined to and other criteria. “Further, within PMS products reveal the names of such defaulters even after there are different strategies with varying levels of the Supreme Court gave a direction. In 2018, the risk such as concentrated equity strategies vis-a- Central Information Commission had asked the vis multi-asset strategies that invest only in mutual government and the RBI to disclose the list of willful funds or ETFs. It is not clear if this has been defaulters. In April, the Supreme Court granted considered while defining the minimum investment the central bank an opportunity to disclose the list ticket and whether a minimum investment should saying that the RBI is in contempt of this court by be retained at ?25 lakh for multi-asset MF/ETF withholding disclosure of such information. portfolios versus higher risk strategies,” said. Late in the Day Prakarsh Gagdani, CEO, 5Paisa.com, said “By The disclosure by the RBI now, although increasing the PMS limit, SEBI has made it clear significant, could be a little late because some of that a major section of retail investors should come these companies are already under the NCLT-led via the mutual fund route. Customised portfolio insolvency process. In addition, banks themselves management is designated only for HNIs, hence have been proactively disclosing names of large clearly demarcating customer categories.” defaulting accounts. For example, in June, revealed the names of 10 large firms, Rights issue norms declaring them as ‘Willful defaulters.’ The biggest SEBI also revised the norms for issuance of defaulter on that list was Spanco Ltd, followed by shares on rights basis to existing shareholders. Calyx Chemical & Pharmaceuticals Ltd. The timeline has been reduced to 31 days from 55 According to data published by Transunion Cibil, days currently. As per SEBI, now the top 1,000 Willful default by over 11,000 borrowers had surged listed companies will have to include business by Rs 43,000 crore to Rs 1,61,213 crore during the responsibility reporting as part of their annual 12-month period ended December, 2018. Willful report. This was earlier mandated only for the top default had soared by Rs 1,21,700crore from just 500 companies. Rs 39,504 crore in March, 2014. - The Hindu BusinessLine, 22/11/2019 - The Hindu BusinessLine, 21/11/2019

You cannot escape the responsibility of tomorrow by evading it today. -A Lincoln Officers’ Voice, January 2020 18

Kerala govt. set to get its own bank as HC allows new shares and it could be a 96 billion rupee ($1.3 merger of co-op lenders billion) IPO, India’s biggest in the current financial year, according to local media reports. Business The Kerala government’s long pending dream of is booming at the country’s second-largest card setting up its own bank, by merging the district issuer. After Carlyle arrived in 2017 to replace GE co-operative banks, is set to become a reality with Capital in the two-decade-old venture, earnings the High Court dismissing a batch of petitions filed were 7.4 rupees a share in the year through March against it. Minister for Cooperation Kadakampally 2018. The most recent six-monthly profit topped Surendran said the setting up of the bank opens up that figure. Younger millennials and Generation Z a huge potential for the development of the state. — those born after 2000 — are driving this growth. “I believe this indeed is a revolutionary step and In India’s fiscal year ended in March 2016, barely will change the face of banking sector in Kerala. 2% of credit card transactions were originated by Kerala Bank - as the name suggests, it is Kerala’s people below 25 years of age. That number has own Bank,” Surendran tweeted. The court granted jumped to 10%. Add the 26-30 age group and the permission to the Kerala bank after evaluating youth share of plastic is 35%, beating people over that its intervention in the merger procedures was 40 by as much as eight percentage points. Yet only not needed. According to government sources, about 5% of Indians’ consumption per capita takes 13 district co- operative banks (DCBs) would be place through credit cards. After growing 12% merged with the Kerala State Co-operative Bank for annually over four years, average spending per card forming the proposed Kerala Bank. All the DCBs, is stalling. While a slowdown is only to be expected except the one in district controlled given a sharp decline in economic momentum, the by the opposition Congress-led UDF, had approved reason has more to do with the merchant than the the Left government’s proposal of amalgamation in spender. E-commerce, which is increasingly the most their respective general body meetings. Surendran obvious use of a credit card, will account for barely had said that the notification for setting up the bank 7% of India’s $1.2 trillion-a-year retail industry by was issued in the evening itself and administrator 2021, according to Deloitte Consulting. Another governance in the district cooperative banks would 18% will go to malls, department stores and other come to an end. Chief Minister Pinarayi Vijayan also forms of organized retail. But three-quarters of the tweeted that the state’s own bank would commence market will remain with mom-and-pop stores. An soon. Earlier, the RBI had also granted its nod average shop can hope to receive $775 in monthly for the bank which would be the largest banking business from cardholders. Card issuers would network in the state. The government had claimed garner revenue of $11 of that, but the bank that that the objective was to strengthen the cooperative acquired the merchant and fitted it up would receive sector, while the Opposition had alleged that it just $1.50 a month. It’s simply not worth anyone’s would destroy the traditional cooperative sector. while to expand the business into smaller towns - Business Standard, 01/12/2019 dominated by small shops. Increasingly ubiquitous smartphones are far more suitable for payment How India’s millennial credit card boom is authentication in a low-middle-income country than running into Ambani’s ambitions credit cards. and Walmart’s PhonePe are For every 100 people in India, there are only three leading people-to-people mobile payments in India, credit cards. A comparable penetration figure for using the so-called unified payments interface, a the US is 320. Statistics like these suggest that system linking India’s banks. The same system will India’s first initial public offering of a credit card also drive people-to-merchant payments. Credit issuer is either an opportunity with boundless will just be an added layer. Banks will compete prospects — or a victim of arrested development. for whoever can bring them a lot of customers. Which is it? The upcoming sale of shares in SBI India’s richest man, Mukesh Ambani, has 355 Cards and Payment Services Ltd. will give investors million customers for his 4G mobile network, Jio. a chance to find out. Between them, the controlling Unsurprisingly, the oil-to-telecom tycoon wants to shareholder, State Bank of India, and its 26% connect 30 million small retailers with common partner, Carlyle Group, plan to sell up to 130.5 inventory-management, billing and tax platforms million shares. Throw in a simultaneous offer of as well as low-cost payment terminals. He won’t be Officers’ Voice, January 2020 19 alone. Even in Indian e-commerce, Walmart Inc.’s distribute it among the banks shortly. Flipkart Online Services Pvt is promoting “cardless” Under the initial plan, the operational creditors were credit, where the financing comes from banks and to get `196 crore. However, the National Company nonbank lenders. During the recent local holiday Law Appellate Tribunal ordered the financial lenders sale season, three out of four Amazon.com Inc. to consider an additional payment. ArcelorMittal’s customers who availed themselves of credit to make payment has resulted in a loan recovery of 89.74 purchases came from Tier 2 and 3 cities, where per cent. The closure of the deal comes just ahead card penetration is low; every second buyer who of the Monday deadline for payment. The winning borrowed to buy something did so for the first time. bidder had to make the payment within a month The parent State Bank’s opportunity in unsecured of the deal’s approval, or shell out interest for the retail loans will be far larger than that of its IPO- delay. The Supreme Court approved ArcelorMittal’s bound cards unit. India’s largest commercial bank bid for Essar Steel on November 15. will make its low-cost deposits available to Ambani, The new owners then sought immunity from Walmart and other digital commerce hopefuls who the ongoing investigation against Essar Steel’s might be looking to sweeten their proposition to original promoters. The government amended the customers with a dollop of credit. That should still Insolvency and Bankruptcy Code to ring-fence the leave plenty of headroom for SBI Cards to grow. Its assets and the new owners from punitive actions, 18% market share means the company will remain paving the way for ArcelorMittal, the world’s largest a sought-after choice for co-branded partnerships, steel company, to enter India. such as with Indian Railways and ride-hailing As on October 24, 2018, 65 financial creditor claims app Ola. Carlyle’s partial exit would value the US totalling `55,440 crore, 1,936 operational creditor buyout firm’s 26% stake at about seven times what claims of `27,081 crore, employee/workmen it paid in 2017, according to Reuters. That’s a neat claim’s of about `20 crore and one claim from ‘other pile to make from plastic in such a short time and creditors’ of about `24 crore were received. The in a country where it hasn’t really taken off. IPO amount admitted in the case of financial creditors investors will be content with a lot less. was `49,473 crore; operational creditors, `5,074 - Business Standard, 01/12/2019 crore; and employees, `18 crore. RBI on Vijaya Bank, Dena Bank status SBI had the highest amount admitted, at `13,226 crore. The admitted amount of the other large The Reserve Bank of India on Thursday said it has creditors include: (`3,798 crore), excluded Vijaya Bank and Dena Bank from the StanChart Bank (`3,557 crore), PNB (`2,936 crore), second schedule of the RBI Act with effect from (`2,830 crore), IDBI Bank (`2,482 April 1,2019 since they have ceased to carry on crore), ICICI Bank (`2,294 crore), Union Bank banking business. (`2,123 crore), Bank of India (`1,985 crore), EARC TRUST - SC 217 ( 1,698 crore) and Corporation -Financial Express, 29/11/2019 ` Bank (`1,567 crore). The recovery is good news for Essar lenders get ` 38,896 cr from Arcelor the banks in the third quarter as they may use the The ArcelorMittal-Nippon Steel combine has proceeds to make provision for their exposure to transferred `38,896 crore to lenders for the DHFL and IL&FS, and mark-to-market provisioning towards investment depreciation. acquisition of the once-Ruias-owned Essar Steel in an insolvency-driven process. For the lenders, Default by Odisha Slurry recovery comes over two years after they initiated In separate insolvency proceedings, the lenders a corporate insolvency resolution process (CIRP) of Odisha Slurry Pipeline Infra issued a Letter of against the steel-maker. It marks the single biggest Intent to ArcelorMittal, which agreed to pay the recovery made by lenders under a CIRP. entire default of `2,350 crore. The 253-km pipeline The operational and other creditors will get the carries iron ore slurry from Dabuna, Odisha, to remaining `3,104 crore of the `42,000-crore bid Paradip, where it is converted into pellets before placed by ArcelorMittal to settle Essar Steel’s loan being shipped to the Essar plant in Hazira, Gujarat. default of `49,000 crore. According to sources, - The Hindu BusinessLine, 16/12/2019 lead lender SBI has received the money and will Officers’ Voice, January 2020 20

miscellany where it has run into resistance from controlling families, once known as managing agents and once managing agency was prohibited by law, as Tinker, Tailor SEBI’s Sailor promoters. The end of the financial year is not too far away. Less The company was originally invented to give owners than half-a-year from now, India’s businessmen will access to outside risk capital and investors the have to decide: between them and their offspring, choice of different industries and managements. In who will take a back seat in shareholders’ meetings? theory, it is possible to separate them by issuing It is common for them to hand over management of them different shares. Owners would have shares the companies they control to their son or daughter with voting rights and portfolio investors would and to elevate themselves to the chairmanship of the have shares without them. board. But from April 1, 2020, they will no longer be able to do so. The day businessmen pass on the But this device has not caught on anywhere. managing directorship to the next generation, they Hence, there will be shareholders who try to can no longer chair the board of directors. control enough equity to get control of or at least influence in management. Conversely, those who Securities and Exchange Board of India (SEBI) control companies will try to make sure that hostile slipped in this diktat in Section 3(d)i.2(iii)(1B) shareholders do not come to own a controlling (b) in a notification it issued on May 9, 2018. It share. lists piles of amendments to its rules with no explanation beyond a reference to the report of SEBI would like to see shareholders control the Kotak committee on corporate governance and companies and their promoters. But there are few commands that the chairperson of the boards of companies in which outside shareholders hold listed companies must be a non-executive director enough equity to acquire influence if they came unrelated to the managing director (MD) or chief together. Socialist governments discriminated executive officer (CEO). against shareholders and tried to replace them with government-owned shareholding finance India follows the British tradition, which in companies. That would have satisfied SEBI. But theory puts companies in the control of a board just about when SEBI was set up, socialism went of directors elected by shareholders. Starting out of fashion and State financial institutions from the same tradition, the US has developed a withered and nationalisation of banks took them huge financial market. Financiers control major entirely out of the equity market. companies through equity ownership, although some companies that led technologically, stayed The new generation of rich people is innocent of with original owners. Japan and South Korea have equity investment. It concentrates on real estate business groups that keep a strong grip on the that offers much better opportunities of tax evasion. companies they own. SEBI can do nothing about this general lack of interest in equity. So, it tinkers with company In Germany, banks often have controlling interest governance to try and make it more independent of in companies and management and boards are company management. But given the structure of kept mutually independent by law. India’s capital market, it is difficult to see how SEBI SEBI would like to introduce the German model can succeed. in India, but is hampered by the tradition of By now, India faces not just the decline of companies evolving out of family businesses. It is the corporate sector, but also the collapse of not bold enough to insist on independence of the manufacturing growth and in general, of largescale board’s composition. But it has taken the first step private enterprise. Family enterprises continue to of introducing it in big quoted companies. That is

If I cannot do great things, I can do small things in a great way. - James F Clarke Officers’ Voice, January 2020 21 grow. But they take care to ensure that they do not to be offered. A prior approval of IRDAI is a must grow so much as to invite takeover. Those that grow before fixing the pricing. borrow. That was behind the boom in non-bank “The costs towards the wellness services shall be financial companies (NBFCs) until RBI killed them factored into the pricing of the underlying health off. insurance product,’’ it says. “The price factor should Banks have lost trillions on corporate loans and also be made public in all insurance advertisements would not touch them anymore. That is the basis wherever wellness features are disclosed and of India’s economic crisis. It can’t be resolved with promoted.” little regulatory amendments of SEBI. How it helps? -The Economic Times, 08/11/2019 According to Sanjay Datta, Chief, Underwriting, Coming soon: Health cover with wellness, Claims, Actuary, Reinsurance, ICICI Lombard, preventive-care benefits providing wellness and preventing benefits “augurs well for the health of the individual as well as Now, when you buy health insurance, you may as industry.’’ “Preventive measures works very well in well look of wellness and preventive care services. any portfolio for insurers. Policy holders will surely The Insurance Regulator and Development Authority see value in them as they can avoid hospitalisation of India (IRDAI) intended to permit health insurance whenever possible,’’ he told BusinessLine. companies to come with additional services. According to the draft guidelines on wellness and “The cost of diagnostic services has been increasing preventive benefits health insurance policy holders in some key ailments. Including them in health cover issues released by IRDAI, health cover polices could may provide some cushion. But we need to see how come up with wellness and preventive features as public responds in a market like India. It may take they help in keeping oneself in good health. time to catch up,’’ said a senior official of public sector general insurance company. According to Health insurers will have to offer these benefits by IRDAI data, with a market size of over Rs 37,000 incorporating them as part of the main health plan crore, health insurance has been growing at over 20 at the time of filing product approvals. “No wellness per cent per annum for the last three years, led by feature/benefit shall be offered without it being government schemes. filed or incorporated as part of the product in terms of the product filing guidelines,’’ the draft says. The - The Hindu Business Line, 09/11/2019 benefits should be also be uniformly offered to all Industrial output growth hits 8-yr low those who buy similar policies, it adds. Industrial production in September contracted Final guidelines 4.3%, the sharpest decline since October 2011 Once the final guidelines are brought in probably spanning both the 2004-05 and 2011-12 series, in a couple of months, a policyholder can look official data showed on Monday. This reinforced for specific health services such as outpatient fears of a deepening supply-side contraction in consultations or treatments, pharmaceuticals and response to an acute demand compression in the health check-ups/diagnostics. economy, compounding worries of policymakers, as they seek ways to beat a seemingly entrenched As health insurers will not have original expertise economic slowdown. in these areas they can source them from network providers or other empanelled entities. You will All the three major sectors of the index of have to pay for these features, of course. The industrial production (IIP) — manufacturing, regulator expects individual insurer to assess the mining and electricity — shrank for the first time pricing impact of wellness and preventive features since November 2012. Five of the six use-based

In each of us there is little of all of us. - D Lichtenberg Officers’ Voice, January 2020 22 categories, barring intermediate goods, too, saw and heavy downpour of rains hit construction contraction. Importantly, the fall comes even activity. Manufacturing shrank 3.9% in September, when companies usually step up output to cater the worst performance in the current series. Mining for festive demand. Although a drop in the IIP was crashed by 8.5% in September, the sharpest fall expected following the 5.2% plunge in the output since May 2013, while electricity output contracted of eight core infrastructure industries (which make 2.6% against a fall of 0.9% in August. up for 38% of the IIP) in September, the magnitude Aditi Nayar, principal economist at ICRA, said lead of the fall surprised analysts. Of course, floods in indicators point to a continued weakness in October, key states were partly to blame, especially for poor which coupled with an unfavourable base effect, mining (Output of Coal India hit a six-year low in may “well result in a further deterioration (in the September), but IIP growth in October is expected IIP) in the just-concluded month”. “With incoming to remain muted as well, thanks partly to an data pointing to continued weakness in the real unfavourable base. sector and GDP growth likely to slip in Q2FY20 Having seen the worst contraction of 21.4% in the from the multi-year low in Q1FY20, the likelihood current IIP series (since April 2012) in August, capital of another rate cut in December has intensified, goods output shrank again by as much as 20.7% in despite elevated CPI inflation,” Nayar said. September and recorded its ninth straight month of According to DK Pant, chief economist at India fall. This suggests a collapse in investments and an Ratings, the economy is facing “a structural growth early revival is unlikely despite a massive corporate slowdown originating from declining household tax cut recently. Given the deepening slowdown savings rate and low agricultural growth”. “Low and the central bank’s tilt towards growth, analysts agricultural growth is feeding into low agricultural expect the monetary policy committee to cut the and non-agricultural wage growth in rural areas, repo rate again in December for a sixth time in which is impacting rural demand adversely,” Pant 2019, since inflation is expected to remain within said. the RBI’s target of 4%. Thanks to slowdown across key indicators, The central bank had in October sharply cut its FY20 economists see no V-shaped recovery in GDP growth GDP growth forecast for the country by a sharp 80 even after the second quarter, warning that any basis points to 6.1%. But even this reduced forecast compression in the government’s capital spending looks much too ambitious now, with some analysts will hurt economic expansion. now predicting a spill-over of the current weakness - Financial Express, 12/11/2019 in the economy to the next fiscal as well. The drop in consumer durables output just worsened to 9.9% MSMEs oppose government move to redefine in September, against 9.1% in August, indicating classification based on turnover persisting weakness in urban demand. Importantly, Several representatives from the Micro, Small even non-durables output shrank by 0.4% in and Medium Enterprises (MSMEs) have criticised September, the first contraction since November the Centre’s proposed move to redefine the 2018 and compared with a rise of 3.1% in August segment based on a company’s turnover instead this year, mirroring rural distress. of investments in plant and machinery and have The growth in intermediate goods, a key driver of cautioned that the move may kill functioning units industrial production in recent months, stood at 7% and affect several livelihoods. in September, only a tad higher than the August Janak Bhatia, President, Laghu Udyog Bharati level of 6.9% but sharply lower than the 14.7% [LUB], Uttar Pradesh, said “With the proposed witnessed in July. The contraction in infrastructure definition on turnover basis and not on investments goods widened to 6.4% in September from 4.8% in in plant and machinery, there will be no difference the previous month, as a late withdrawal of monsoon between a manufacturer and traders. The benefits for

There are only two ways to live your life. One is as though nothing is miracle. There other is as though everything is a miracle. - Albert Einstein Officers’ Voice, January 2020 23 the MSME sector will go to both manufacturing and With more than seven months of this fiscal already traders. In such a scenario, manufacturers would over, the Centre is looking at some big-ticket not want to take the pain to do business. People who strategic disinvestment of CPSEs, including Bharat want to set up their units will be discouraged. The Petroleum Corporation (BPCL), to achieve the proposed move would encourage traders to import massive FY20 disinvestment revenue target of Rs more and the consequent fall in manufacturing 1.05 lakh crore and partly make up for the expected would adversely impact the country’s GDP growth, shortfall in tax revenue collections. The Centre’s Bhatia warned. 53.3% stake in fuel retailer BPCL could fetch it Rs 60,000-70,000 crore. “The (final) decision regarding According to the new criteria being considered by strategic disinvestment of BPCL has not yet been the Centre, units with a turnover up to Rs 5 crore taken by the CCEA,” Thakur said. would be considered as micro, those with a turnover between Rs 5 crore and Rs 75 crore would be defined So far this fiscal, the government has raised Rs as small and those with turnover between Rs 75 17,364 crore, or 16.5% of the budgetted target, crores and Rs 250 crores will be called medium Thakur said in a written reply in the Lok Sabha. industry. Of the 28 CPSEs that Thakur spoke about, the At present, MSMEs are classified on the basis of government stakes in five companies —Hindustan investment in plant and machinery for manufacturing Petroleum Corporation, Rural Electrification units and investment in equipment for services Corporation, Dredging Corporation of India, enterprises. Under the goods category, the slabs are HSCC (India) and National Projects Construction up to Rs 25 lakh for micro, Rs 25 lakh to Rs 5 crore Corporation — were sold in CPSE-to-CPSE deals for small and Rs 5-10 crore for medium. In the case in FY18 and FY19. While these deals fetched the of services, the slabs are; up to Rs 10 lakh, Rs 10 Centre as much as Rs 53,329 crore, some of the lakh to Rs 2 crore and Rs 2-5 crore. sheen was taken away by the fact that none of these CPSEs was privatised. In a joint press release issued by the Swadeshi Jagran Manch and the LUB, it was proposed that In ailing Air India, the Centre might take over an the definition criteria of micro and small industry additional debt of close to Rs 20,000 crore before should be based only on investment in plant and offering the company to potential buyers later this machinery with ceiling for micro enterprises fixed fiscal. Earlier in this fiscal, the Centre had taken at Rs 50 lakh and for small enterprises fixed over a debt of Rs 29,464 crore from the ailing between Rs 50 lakh and Rs 5 crore. The carrier’s balance sheet through a special purpose Small Scale Industries’ Association (KASSIA), in vehicle. As of March 31, Air India had debt and a separate release, alleged that the Centre was liabilities of Rs 73,255 crore (including a long-term creating a hostile environment for the MSME sector. debt of Rs 58,255 crore). High level of debt was one of the reasons why no buyer showed interest for the -The Hindu Business Line, 15/11/2019 national carrier last fiscal earlier, forcing the Centre In-principle approval for strategic sale of 28 to call off the process. CPSEs, says Thakur - Financial Express, 19/11/2019 The Cabinet has given an ‘in-principle’ approval Independent Directors not keen on Board Seats for the sale of strategic stakes in as many as 28 central public sector enterprises (CPSEs), including Senior level exits - Number of independent directors Air India, minister of state for finance Anurag Singh in boards more than double in the first six months Thakur said on Monday, hinting at a renewed, of FY 20 aggressive push for disinvestment in FY20 amid The exit of independent directors from India Inc. expectations that tax revenue would fall way short boards has gained momentum, with the number of the budgetted targets. more than doubling in the first six months of this

Life, if properly viewed in any aspect, is great, but mainly great when viewed in its relation to the world to come. Officers’ Voice, January 2020 24 financial year. An estimated 291 independent down, citing conflicts of interest, personal or members of boards of companies in the Nifty health reasons or no reason, old age and joining 500 resigned in the six months ended September other boards. Six independent directors left after compared with 126 a year earlier, according to management changes. nseinfobase.com, a joint initiative of the National According to Pranav Haldea, managing director Stock Exchange of India and PRIME Database that of PRIME Database Group, there can be no truly provides corporate data. independent directors, especially in companies with Half the directors quit when their terms ended, while dominant promoters or shareholders. “In my view, the remainder left, citing other reasons, including the institution of independent directors needs to be personal health issues, conflicts of interest or re-examined,” he said. Haldea said independent other pre-occupations. Former executives, ex- directors who join a board have a certain comfort bureaucrats and others are reluctant to take up level with their promoters. In Indian family business, jobs as independent directors, reflecting a trust majority ownership is with the promoter group and deficit in corporate India, said the chairman ofa maintaining the independence of directors in such leading conglomerate. entities can be very challenging.

With independent directors increasingly being - The Economic Times, 20/11/2019 held accountable for the actions of promoters and Government clears strategic sales in PUSs, managements, former CEOs and directors told ET other reforms on condition of anonymity that they are refusing The Cabinet Committee on Economic Affairs offers to join boards, citing concerns over their (CCEA) on Wednesday approved the strategic reputation and fears about legal liability. disinvestment of five public sector undertakings Because of the fiduciary responsibilities, it’s (PUSs), including oil-refiner-marketer Bharat onerous now on independent directors, said Venu Petroleum Corporation (BPCL) and a proposal to Srinivasan, chairman of TVS Motor. They join only bring down the government’s paid-up equity capital if they are 100% sure because there is a lot of risk in central public sector enterprises (CPSEs) to below these days, he said. 51% on a case by-case basis, while retaining the In large corporate groups, there are many board option to retain management control in them. The members who are retiring – here, the boards need BPCL asset to be sold to a strategic buyer-possibly to change. What is worrisome is when independent a private firm-will include the entire government directors resign before their term ends, Srinivasan stake of 53.3% in it, but exclude the firm’s 61% said. “Independent directors are unsure of their stake in Numaligarh Refinery (FY19 net worth role and liabilities,” said RC Bhargava, chairman Rs 5,551 core) which will remain in the public of Maruti Suzuki. If something goes wrong in the sector. While Shipping Corporation (government company, then the liability and responsibility is stake 63.75%) and Concor (30.8% to be divested very huge, he said. out of (54.8%) have also been approved for strategic sale, the sale of government stakes in two other Generally, one-third of a board’s members should PSUs-NEEPCO (100%) and THDC (74.2%)-will be be independent directors. Of the independent exclusively to state-run power producer NTPC. directors who resigned in the first half of the year, 146 quit after their terms expired, while Though no time frame has been announced for 36 expressed no interest in being re-appointed or concluding these strategic sales, many, including re-elected. There were 26 independent directors the BPCL’s is expected in the current financial who resigned due to other pre-occupations. year itself, potentially increasing the Centre’s disinvestment receipts to even higher than Another 17 left because they did not meet SEBI the budgeted Rs 1.05 lakh crore. Sale of the or Companies Act norms, while 40 others stepped

Take away love and our earth is a tomb. - Robert Browning Officers’ Voice, January 2020 25 government’s stake in BPCL (excluding Numaligarh) through Bharat 22 ETF, because the government could alone fetch about Rs 60,000 crore at current stakes are in the 52-53% range in many large market prices, or 60% of the disinvestment revenue PSUs which the institutional and retail investors target for this fiscal. Sales of the other four firms might find attractive. The threshold of minimum could fetch over Rs 30,000 crore at current government holding for PUSs to be in ETF baskets prices. According to sources, the move to reduce is 52%. Bharat 22 ETF is a diversified index of 22 govt stakes in select CPSEs to 51% would enable stocks, including IOC, Nalco, CAIL and Engineers launch of a series of bigger exchange traded funds India. (ETF) over the next few months. The reduction of As for the last few issues, the ETF manager procured government stakes in these firms won’t impact stocks of firms like Indian Oil and ITC to retain their their current obligations as state-run entities, like weights in the indices. Analysts are of the view that jobs reservation, RTI related ones, etc. India’s ETF market is expected to witness robust The Cabinet also allowed National Highways growth in the coming years due to a structural Authority of India (NHAI) to securitise tool receipts shift in asset-class preference from fixed income to for raising funds and gave it unfettered authority equities as interest rates moderate. to make suitable changes wherever required in its - Financial Express, 21/11/2019 asset monetization programme through the tool- operate-transfer (TOT). The securitization of toll BSNL ‘portability’ positive so far in FY 20, SAYS receipts will help the NHAI to raise funds from stretches where the traffic is already high and State owned Bharat Sanchar Nigam Ltd (BSNL) has needs capacity augmentation in next few years. said that the number of customers moving into its Infrastructure assets such as roads are suited the network is higher than those leaving it, making its best for securitization as they ensure stable cash mobile number portability (MNP) positive during flows backed by long-tenure concession agreements 2019-20 so far, Parliament was informed on and higher recovery rates. Thursday. The number of port-ins stood at 53.64 lakh, against 28.27 lakh port outs in 2018-19 and The Cabinet has also relaxed norms to the NHAI’s thereafter the numbers cumulative up to October asset monetization programme through the TOT 2019 was 2.04 crore (port-ins) against 1.80 crore route. Earlier operational projects collecting tolls (port-outs). for at least two years were allowed to be given on 30 years of lease against upfront payment, Now, “BSNL has informed that number of customers a highway project collecting tolls for one year ported into BSNL is higher than the ported-out could be put up for auction. The cabinet has also customer of BSNL is MNP is positive during 2019-20 provided the NHAI board the flexibility to fix the (till October, 2019),” telecom minister Ravi Shankar lease tenure to anywhere between 15 years and 30 Prasad said in a written reply to question in the years. Earlier, it was fixed for 30 years. Rajya Sabha.

Through two such funds Bharat 22 and CPSE ETE- The number of mobile connections of BSNL stood at the government raised Rs 45,080 core in the last 11.64 crore as on August 31. In a separate reply, fiscal, more than half of the disinvestment proceeds the minister said that with the Cabinet approving in the year. Two ETF issues this year yielded Rs the revival plan for BSNL and Mahanagar Tele 14,369 crore to the government, Besides the two Phone Nigam Ltd (MTNL) last month, it is expected extant ETFs, the Centre might launch new sectroal that both the companies will turn around in future. ETFs, also in the current year. In her budget To another question on whether the government speech, Finance Minister Nirmala Sitharaman has has any plan of going for any disinvestment of these said. “The Centre is considering, in case where telecom companies in near future, the minister said, the PSU is still to be retained under government “At present, there is no proposal for disinvestment control, to go below 51% to an appropriate level on of BSNL and MTNL.” a case-to-case basis.” Currently, there is limited - Financial Express, 22/11/2019 headroom to mobilize disinvestment revenue Officers’ Voice, January 2020 26

Indian Boards are Meeting a Tad More Often 19. Likewise, Piramal Enterprises had eight board meeting in FY18, but that dropped to five in FY19. Indian boards seem to be meeting slightly more Housing finance business has come under pressure frequently than they were earlier. The median in the recent years. number of meetings for 91 of the BSE 100 companies was seven in fiscal 2019, compared with six in Ten of the BSE 100 companies have conducted FY18 as well as five years earlier in FY15, as per only four meetings in FY19 - the minimum data from Bloomberg. Five was the most common needed to comply with the Companies Act 2013. number for board meetings held by the companies Most companies on this list, such as Godrej in the year ended March 31, 2019. Consumer Products, Page Industries, Lupin, Hero MotoCorp, Bharat Forge and JSW Steel, have been Public sector undertakings (PSUs) have a higher underperforming in the past couple of years. frequency of board meetings. The median number for the 16 PSUs in BSE100 index was 13, compared To be sure, the median frequency of board meetings with 11 in FY15. Coal India topped the list with 21 in India Inc is akin to that in the US. As per the board meetings in the last fiscal year ended March Spencer Stuart 2018 S&P 500 Board Index, the 31. The company’s board had met seven times in median number of board meetings was seven for FY15. the year ended May 2018. A majority of S&P 500 company boards met on an average of six-nine Incidentally, the sitting fees for independent times annually. directors of PSUs is Rs 40,000 - around one third of the statutory limit of Rs 1 lakh. ICICI Bank is - The Economic Times, 22/11/2019 the only private sector company on the list of top 10 Mass casual leave to be treated as strike companies, with 18 board meetings in FY19. The bank’s board had met seven times in FY15. Govt introduces Bill in LS amalgamating three labour laws Incidentally, a dozen companies have had a sharp year-on-year surge in the frequency of their board Any mass casual leave by workers will be treated meetings in FY19. This list is dominated by banks, as a strike, if the Industrial Relations Code Bill with ICICI Bank, Bank of Baroda, Punjab National becomes law. The Bill, introduced in the Lok Sabha, Bank, Induslnd Bank and featuring proposes to modify the definition of strike. The Bill, among these dozen companies. Banks have been introduced by Labour Minister Santosh Kumar under increased scrutiny of the regulators and Gangwar, also defines ‘fixed term employment’ investors, warranting a higher engagement for and sets conditions before certain establishments their boards. Hindustan Unilever, ITC, Larsen & can lay off staff. Though Opposition parties such Toubro, HCL Technologies and REC are the other as the Congress protested against the Bill terming companies in this list. it ‘anti-labour’ and demanded that it be referred to the Department-related Standing Committee, In the case of nearly half of the 91 companies, no decision was taken. The Minister assured the a positive correlation was found between the House that nothing in the Bill is against the rights frequency of board meetings and their stock of workers. performance. The boards of companies that are performing well typically meet more frequently According to the Bill, ‘strike’ means cessation “of compared with the opposite group. For instance, work by a body of persons employed in any industry pharma companies Cipla, Lupin and acting in combination, or a concerted refusal, or have witnessed a gradual decline in the number a refusal, under a common understanding, of any of their board meetings over the past five years as number of persons who are or have been so employed industry headwinds pressed along. The board of to continue to work or to accept employment and Indiabulls Housing Finance met nine times in FY includes concerted casual leave on a given day by

Character is destiny. - Heraclitus Officers’ Voice, January 2020 27

50 per cent or more workers. It also prescribes a Below-51% Stake Policy - Firms losing notice of 14 days for a strike. government company tag not to skirt PUS obligations. This is one of the four codes aimed at simplifying existing laws. Accordingly, the IR Code intends to Control by government via board majority to ensure amalgamate, simplify and rationalise the relevant these firms remain under CAG, meet other norms. provisions of the Trade Unions Act, 1926, the Any firm in which the government will pare its Industrial Employment (Standing Orders) Act, stake to below 51% under Wednesday’s Cabinet 1946; and the Industrial Disputes Act, 1947. decision will cease to be a ‘government company This amalgamation will end the multiplicity of under the Companies Act but may still have to definitions and authorities without compromising bear all the obligations that come with the tag, on the basic concepts of welfare of and benefits to including subjecting itself to the Comptroller and workers. The Industrial Relations Code, 2019 would Auditor General (CAG) audit. This is because the bring in the use of technology for enforcement. All government has expressed an intent to retain these measures would bring transparency and management control in such firms on a case-to- accountability leading to more effective enforcement. case basis and it would be practically feasible for it The ease of compliance of labour laws is expected to to do so, without any change in laws. promote setting up of more enterprises, leading to more job creation. ‘Government companies’ are mandated to follow a slew of central policies, including reservation of Fixed term employment 49.5% jobs for SC, ST and OBC candidates, 25% The IR Code defines the expression ‘fixed term of total procurement of goods and services from employment’ as engagement of a worker on the MSMEs, rules on pay and allowances and Right basis of a written contract for a fixed period. The to Information Act provisions. They also need to fixed term employee will get all statutory benefits follow the process for disputes and complaints such as wages and social security on par with resolutions in recruitment and service conditions, the regular employee doing same/similar work. besides complying with the prescribed procedures The Code obliges mines, factories and plantations for business processes, including tenders. with hundred or more workers to take government permission before lay-off, retrenchment or closure. Under the Companies Act, control is defined not just The appropriate government will be empowered in terms of the right to appoint majority directors to modify the threshold number of workers, by but in a much broader manner to take into account notification. In case of retrenchment, the Code even instances of exercising controls through sheer provides for the setting up of a re-skilling fund influence. Among the most prominent PSUs where for such employees; employers will contribute 15 the government’s direct stake is only marginally days wages or any other number of days as may be above 51% at this stage and where it could reduce notified by the Centre to this fund. it to boost its non-debt capital receipts are Indian Oil, GAIL (India), Nalco and Engineers India. Trade Union As per the companies Act, “…. in the case of a The IR Code suggests a single negotiating union Government company or any other company in an industrial establishment for dealing with the owned or controlled directly or indirectly by the employer. In case of more than one trade union, central government, or by any state government or the one with the support of 75 per cent or more governments, or partly by the central government workers on the muster-roll would be designated the and partly by one or more state governments, the negotiator. If no union has such support, then a Comptroller and Auditor-General of India shall, negotiating council is to be set up. in respect of a financial year, appoint an auditor - The Hindu BusinessLine, 29/11/2019 duly qualified to be appointed as an auditor of

I can pardon every one’s mistake but my own. -Marcus Porcius Cato. Officers’ Voice, January 2020 28 companies..” So, not just (majority) ownership, for listing of commercial papers, a move aimed but mere government control on the affairs of firm at broadening investors’ participation in such make it liable to CAG audit. securities. Issuers can now apply for listing of commercial papers (CPs) issued on or after According to the Cabinet decision, that followed a November 27, 2019, the exchanges said in two Budget announcement to this effect in July, the separate notices. This comes after the capital government can now reduce its paid-up share markets regulator Securities and Exchange Board capital in select CPSEs to below 51%, while retaining of India (SEBI) in October asked exchanges to put its management control taking into account direct in place necessary framework for systems and holdings and holdings via institutions controlled procedures for listing of commercial papers. by it in select central public sector undertakings. The stated rationales for the move is to “widen the Under the guidelines, issuer who desires to list its bandwidth of disinvestment window” and “increase CPs needs to send an application for listing along the free float available in the market” for FPIs, with the specified disclosures to stock exchanges. domestic institutions and retail investors. Companies, NBFCs, other entities with a networth of at least Rs 100 crore and any other other security Of course, if one goes by the definition of ‘government specifically allowed by Reserve Bank of India (RBI) company’ under the Companies Act, a firm which are eligible to list commercial papers. will see government stake reduction under the latest policy could fail to qualify as one. The definition is “Commercial Papers, by their very nature are short thus “Government company’ means any company term money instruments and until now, have been in which not less than 51% of the paid-up share regulated primarily by RBI. Listing of CPs will bring capital is held by the central government or by them under SEBI’s domain as well, leading to a any state government or governments or partly by more transparent and better disclosure regime. the central government and partly by one or more “Listed CPs on one hand will assist the issuers in state governments and includes a company which meeting their short-term fund requirements and is a subsidiary company of such a government on the other hand will boost investors protection. company”. Therefore, while practically many of Better investor participation can be expected in the firms will lose the government company tag, listed CPs as against unlisted ones, since they they will continue to be management-controlled will be more governed and regulated,” said Anjali by the government and therefore might have to Aggarwal Partner at Corporate Professionals. shoulder the stated responsibilities of government According to NSE, issuer whose other securities companies. are already listed on the exchange and seeking Under the Companies Act, ‘control’ is defined as listing of CPs on the exchange for the first time, is right to appoint majority of the directors or to control required to include ‘commercial paper’ in securities the management or policy decisions individually or applied for listing under “information about the by acting in concert, directly or indirectly, including company and securities forming part of uniform by virtue of shareholder or voting agreements or listing agreement along with a covering letter.” “in any other manner”. In all, about 1,500 public Commercial Paper is an unsecured money market commercial enterprises controlled by the Union instrument issued in the form of promissory notes and state governments, i.e. government companies that enables highly rated corporate borrowers to and corporations are now subjected to the audit diversify their sources of short-term borrowings of the CAG. These companies are also under the and provides an additional instrument to investors. gaze of the Central Vigilance Commission and the Central Bureau of Investigation. CP can be issued for maturities between a minimum of 7 days and a maximum of up to one - Financial Express, 23/11/2019 year from the date of issue. CPs are usually issued Framework issued for listing of commercial at a discount from face value and reflects prevailing papers market interest rates. The BSE and NSE have come out with a framework - Financial Express, 28/11/2019 Officers’ Voice, January 2020 29

strictly adhered to. The guidelines to be adhered by circular round up the pension disbursing branches are furnished in the Circular. 01. Extension of services of Financial Inclusion Supervisors 05. Interest Subvention Scheme for Kisan Credit (Financial Inclusion Division, H O Circular No. 658/2019 Card (CCCKA) to Fisheries and Animal Husbandry dated 02.11.2019) farmers during the years 2018-19 and 2019-20 (Priority Sector Division, H O Circular No. 663/2019 dated The services of the Financial Inclusion Supervisors 06.11.2019) is extended for a further period of one year from 01.10.2019. The Zonal Offices, who have engaged FI The benefits of Interest Subvention at 2% and supervisors, may renew the services of supervisors Prompt Repayment Incentive (PRI) at 3% is available having satisfactory work record, if required to the fisheries and animal husbandry farmers to and ensure effective and efficient utilization for meet their working capital needs under the Kisan streamlining the activities at the Corp Bank Mitra Credit Card – Allied (CCCKA) scheme. The detailed (CBM) locations. guidelines are furnished in the circular.

02. Overdraft of Rs. 2000/- to eligible BSBD/ 06. Recurring Deposit (RD) Campaign PMJDY accounts automatically through Finacle (Resource Mobilization Division, H O Circular No. 664/2019 CBS. dated 06.11.2019) (Financial Inclusion Division, H O Circular No. 659/2019 A campaign for opening Recurring Deposit Accounts dated 02.11.2019) (RD) has been launched. All newly opened recurring Overdraft of Rs. 2000/- without documentation is deposits during the period from 11.11.2019 to enabled through Finacle CBS to eligible BSBD/ 10.01.2020 shall be considered for the performance PMJDY accounts where DBT/DBTL credits are in the campaign. The modalities of the campaign received during the last six months. All the eligible as well as targets for the Zones / Branches are customers have been informed by SMS about the furnished in the circular. facility. The scheme guidelines and other operational 07. To reduce Voluntary Exit Request and Zero features are furnished in the circular. Funded APY accounts 03. Medical Checkup Facility (Bancassurance Division, H O Circular No. 665/2019 (Human Resource Management- PAD, H O Circular No. dated 06.11.2019) 660/2019 dated 05.11.2019) Under Atal Pension Yojana [APY] Scheme, during Medical Checkup facility for the year 2019-20 is this FY as on 31.10.2019, our Bank has enrolled extended by the Bank. All the employees on the only 14,660 new subscribers, which works out to rolls of the Bank who are of more than 30 years of only 6 accounts per branch as against the set target age and Spouses of employees who are above 35 of 70 accounts per Branch. Branches are advised years are covered. The detailed Scheme guidelines to improve the persistency level and desist from are furnished in the Annexure of this circular. sending request for closure of APY accounts unless it is an unavoidable circumstance. 04. Deduction of Income Tax from the pension payable to the Staff Pensioners for the Financial 08. Loan System for Delivery of Bank Credit- Year 2019-20 Amendment in Guidelines (Human Resource Management- PAD, H O Circular No. (Credit Policy & Planning Section, Credit Division, H O 662/2019 dated 05.11.2019) Circular No. 668/2019 dated 07.11.2019)

Pension disbursing Branches are advised to take Upon review of the guidelines on ‘Loan System for note of the guidelines pertaining to deduction of the Delivery of Bank Credit’, credit extended to Central/ Income tax from the pension payable to the Staff State/UT owned PSEs, Food Corporation of India, pensioners and ensure that income tax rules are Bank’s Central Counterparties, Loans extended

Integrity has no need of rules. - Albert Camus Officers’ Voice, January 2020 30 by Overseas branches are now exempted. All 12. Implementation of Pradhan Mantri Fasal other extant guidelines in this regard shall remain Bima Yojana (PMFBY) /WBCIS-For Rabi 2019 & unchanged. Summer 2020 (Priority Sector Division, H O Circular No. 680/2019 dated 09. Introduction of Repo-Linked Lending Rate 18.11.2019) (RLLR) to Retail & MSE loan products w.e.f 01.10.2019 - Operative Guidelines Notification for implementation of Pradhan Mantri (MSME Division, H O Circular No. 669/2019 dated Fasal Bima Yojana (PMFBY), and Weather Based 07.11.2019) Crop Insurance Scheme (WBCIS) for Rabi 2019 and Summer 2020 has been issued by some states like In line with the extant RBI guidelines, our Bank has Karnataka, Maharashtra etc., and remaining states introduced Repo Linked lending rate (RLLR) and are in the process of issuing the notifications. In all the new floating rate personal, retail loans and this regard, the operative guidelines to be followed MSME loans are linked to RLLR w.e.f. 01.10.2019. by the branches is furnished in the circular along In this regard, the operative guidelines like obtention with the formats of compliance certificates in the of letter of authority, request letter and the consent annexures. letter from the borrower/s and guarantors, as well as issuance of letter of advice to borrowers and 13. Renewal of Export Credit Insurance Policy guarantors are furnished in the circular and the for Bank-ECIB (WT-PC) & ECIB (WT-PS) format of various letters are enclosed as annexures (Treasury & Investment department, H O Circular No. to the circular. 682/2019 dated 18.11.2019)

10. Renewal of Gun Licence and Unique Export Credit Insurance Cover ECIB (WT-PC) & Identification Number ECIB (WT-PS) has been renewed for the period (Security Division, H O Circular No. 675/2019 dated from 01.07.2019 to 30.06.2020 and Premium 11.11.2019) of Pre-shipment and Post-shipment advances is revised to 8.50 paise and 5.00 paise (per Rs.100.00 Since holding fire arms without valid license isa per month) respectively. The salient features and criminal offence for which the branch or Licence important procedural steps of the ECIB policies are holder can be held liable, branches/Currency furnished in the circular. Chests are directed to initiate the process of renewal of Gun licence at least 90 days before 15. Revised Time limit for reporting of currency the expiry and where the renewal of the license is chest transaction pending, rigorous follow-up should be made with (Premises division, H O Circular No. 683/2019 dated the respective Licensing authority, for renewal. 19.11.2019)

11. Acceptance of gifts by staff members and RBI has directed the time line for reporting of all Rotation of Officers working in sensitive posts transaction through CyM-CC portal on the same (Human Resource Management- PAD, H O Circular No. day by 7.00 pm instead of 6.00 pm. 676/2019 dated 14.11.2019) 16. Revised Standard Operating Procedure Central Vigilance Commission (CVC) has advised [SOP] for opening, operating and monitoring of rotation of officers working in sensitive posts Transient Accounts. and dispensation of gift culture. In line with the (Financial Management Division, H O Circular No. CVC guidelines, all employees are to desist from 684/2019 dated 20.11.2019) accepting gifts/ personal favours from customers Standard Operating Procedure [SOP] for opening, of the Bank. Further, branches are advised to carry operating and monitoring of Transient Accounts out ‘Job rotation’ within the department/branch so has been revised and the revised guidelines vis-à- that officials do not occupy the same position in vis existing guidelines are provided in the circular. contravention of CVC guidelines.

Arise, Awake, sleep no more; within each of you there is the power to remove all wants and all miseries. Believe this, and that power will be manifested. - Swami Vivekananda Officers’ Voice, January 2020 31

17. Amendment in guidelines of PMAY (Urban) document (ID 1260) is available in the O & M Portal (Retail Lending Division, H O Circular No. 686/2019 dated for the use of branches. 20.11.2019) 21. Re-Introduction of Withdrawal Slip (ID3014) Ministry of Housing and Urban Poverty Alleviation wef 01.12.2019 for Saving Bank Accounts (MoHUPA) has communicated the amendment with (Resource Mobilisation Division, H O Circular No. 693/2019 respect to NOC to be obtained under PMAY (U), dated 26.11.2019) which is furnished in the circular. Further, National In view of the difficulty in the process of small value Housing Bank (NHB) has uploaded in their website, cash withdrawal through loose leaf cheques in post the updated list of Statutory Towns and Planning Finacle environment, bank has reintroduced use Area Codes (17777 towns/planning area) covered of Withdrawal Slip (ID 3014), wef 01.12.2019, for under PMAY-CLSS for EWS/LIG/MIG and the withdrawal of amount up to Rs. 5000/- from Saving updated list is given in the Annexure of this circular. Bank accounts (except NRE, NRO and Capital 18. Payroll Accounts: Modification in feature Gain Saving Account). The Standard Procedural (Marketing Division, H O Circular No. 687/2019 dated Guidelines for issue of withdrawal slip are furnished 20.11.2019) in the circular.

All accounts under Payroll variants where salary 22. Irregularities observed by the Central is not credited continuously for three months will Statutory Auditors in LFAR- 2018-19: Credit be converted to CPSB. Conversion will be done related issues. centrally from H.O and the power to restore the (Credit Policy & Planning Section, Credit Division, H O account is assigned to the Branch Manager after Circular No. 694/2019 dated 26.11.2019) getting permission from HO - Marketing Division. The Central Statutory Auditors in the course of 19. Free Signature Debit card to Corp Club, Corp Long Form Audit of the Bank for the year 2018-19 Privilege & Corp Global Account holders have made observations on certain credit related (CASA Division, H O Circular No. 689/2019 dated issues. The list of discrepancies pointed out by 22.11.2019) the Central Statutory Auditors at different stages of credit dispensation and the extant guidelines/ Based on the feedback received, it is decided that free procedures to be complied by the ZOs/Branches is Signature Debit card will be issued to the account furnished in the Annexures to the circular. holders of Corp Club, Corp Privilege & Corp Global (I & II) variant accounts. Detailed instructions are 23. Upward revision in Scale of Finance for furnished in the circular. Jewel Loans (Priority Sector Division, H O Circular No. 695/2019 dated 20. Modification to documentation booklet for 27.11.2019) Jewel Loan (ID 1260) (Priority Sector Division, H O Circular No. 692/2019 dated Scale of Finance for Jewel loans, revised to Rs. 25.11.2019) 2450/- per gram of 22 carat gold irrespective of the tenure of the loan with effect from 27.11.2019. All Loans sanctioned against pledge of Jewel, can be our Branches and Offices are advised to note the classified under Agriculture, Personal / Retail and above for strict compliance. MSE sector, using the common loan documents prescribed for these loans. Hence, suitable interest 24. Foreign Contribution (Regulation Act) 2010 clause pertaining to RLLR in addition to the - Receipt of Foreign Contribution by Individual / existing MCLR clause has been added so that the NGO / Organisation from Donor Agency branches can select the respective rate of interest (Treasury & Investment Department, H O Circular No. clause as applicable to Agriculture or MSE loans 696/2019 dated 27.11.2019) / other Personal / Retail purpose. Both the MCLR Branches are required to bring to the notice of linked and Repo Rate linked Common Jewel loan Ministry of Home affairs the details any funds

Early to bed, early to rise, Makes a man healthy, wealthy and wise. -Franklin Officers’ Voice, January 2020 32 flow from eight Turkish NGOs (foreign donor) to 27. CORP SURAKSHA - Debiting of Annual any person/ NGO / Voluntary Organizations/ Premium associations in India. The names of these eight (Bancassurance Division, H O Circular No. 700/2019 agencies are furnished in the circular and the dated 30.11.2019) funds received from these NGOs will be allowed to Our Bank has launched ‘Corp Suraksha’, a Group be credited to the accounts of the recipient only Insurance Scheme for the Education Loan borrowers after clearance/prior permission of the Ministry of of the Bank with effect from 01.12.2007 and it is Home Affairs (MHA). made mandatory to cover the students Life under 24. Foreign Contribution (Regulation Act) 2010 all education loans. The annual premium under - Receipt of Foreign Contribution by Individual/ Corp Suraksha will be auto debited by New Core NGO/Organisation from Donor Agency Centre on 01.12.2019 and the renewal premium (Treasury & Investment Department, H O Circular No. rates under the scheme for various age groups are 697/2019 dated 27.11.2019) furnished in the circular.

Branches are required to bring to the notice of 28. Allocation of work to empanelled Advocates Ministry of Home affairs the details any funds (Legal Services Division, H O Circular No. 702/2019 dated flow from from “CIVICUS and Asia Foundation” 30.11.2019) to any person/ NGO / Voluntary Organizations/ Department of Financial Services (Monitoring Cell), associations in India. Further, the funds received MoF has informed that the system of empanelment from these NGOs will be allowed to be credited to the of advocate, assigning of court cases to them and accounts of the recipient only after clearance/prior the monitoring of such cases should be reviewed at permission of the Ministry of Home Affairs (MHA). frequent intervals. As per extant guidelines each 25. Auto Loans through PSB59Minutes Portal branch should have at least one to five advocates (Retail Lending Division, H O Circular No. 698/2019 dated on its panel and endeavour should be made to 28.11.2019) proper distribution of work amongst the advocates.

The Bank has made live, the processing/sanctioning of Auto loans (personal segment) in PSB59 Minute portal. The Process Flow and other guidelines as retirements applicable to processing and sanctioning of Housing Loan and Personal Loan through PSB59 Minute The following members will be retiring from portal, as communicated vide H O Cir 549/2019 the services of the Bank on attaining the age of dated 12.09.2019 will remain the same for the superannuation on 31.01.2020. Auto Loan. While sanctioning the Auto Loan in 1. Ms. Shailaja B Rajwade, PSB59Minute portal, branches shall note to follow Assistant Manager, Mumbai all the necessary scheme guidelines in respect of - Worli Sea Face (Greater Vehicle loan of our Bank. Mumbai)

26. Double Lock operations and Safekeeping of Ms. Shailaja joined the Bank Documents/ Gold Ornaments/ Other Securities as a Clerk in March, 1982. (Inspection & Audit Division, H O Circular No. 699/2019 She was promoted to Officers’ dated 29.11.2019) Cadre in JMG Scale I in In view of the serious lapses observed in handling February, 2003. double lock operations and Safekeeping of During 38 years of service, she worked at Mumbai Documents/ Gold Ornaments/ Other Securities, - Fort, Shivaji Park, Wadala, Central, Versoa, Zonal the procedural guidelines to be followed are Office, Mahanagarpalika Marg, Nariman Point, ZO- once again reiterated in the circular advising the MRSU and Mahim. branches to strictly adhere to these guidelines.

My religion of life is always to be cheerful. - George Meredith Officers’ Voice, January 2020 33

2. Mr. B S Bharadwaja, 5. Mr. Laxminarayana Bhat, Senior Manager, Koratagere Senior Manager, Udupi (Udupi) (Bangalore - North) Sri Bhat joined the Bank as a Sri Bharadwaja joined the Bank Clerk in April, 1984. He was as a Clerk in July, 1983. He was promoted to Officers’ Cadre in promoted to Officers’ Cadre in JMG Scale I in November, 1998. JMG Scale I in March, 2002. He He became Manager in MMG became Manager in MMG Scale II in August, 2012 and as Senior Scale II in November, 2005 and Manager in Scale III in May, 2017. as Senior Manger in Scale III in August, 2012. During 37 years of service, he worked at Gadag, Kanaswadi, Dodballapur, Tubagere, Bavana, During 36 years of service, he worked at Shanthalli, Bangalore - Kengeri Satelite Town, Zonal Office Virajapet - Chikpet, Parane, Regional Office - North - Bangalore [South], Bangalore - M. G. Road, Region, Zonal Office - Lucknow, Vaderahobli, Bhadravathi Jannapur, Zonal Office - Bangalore Thirthahalli, Araga, Rajkot - Panchavati, Gopady, [North] and Bangalore - Kogilu. Santhekatte Kallianpur and Varamballi.

3. Mr. Sunilkumar Mangalpet, 6. Ms. N Ranee, Manager, Zonal Chief Manager, HO - Printing & Office Mysore Stationery Division Ms. Ranee joined the Bank in Sri Sunilkumar joined the Bank as a Clerk in August, 1983. He April, 1984 as a Typist Cum was promoted to Officers’ Cadre Clerk. She was promoted to in JMG Scale I in February, Officers’ Cadre in JMG Scale I in 2003. He became Manager in September, 2007. She became MMG Scale II in September, Manager in MMG Scale II in 2010. He was elevated as Senior Manager in Scale May, 2019. III in May, 2016 and as Chief Manager in SMG Scale IV in October, 2018. During 37 years of service, she worked at Bangalore - Shantinagar, Regional Office, Malleswaram, During 36 years of service, he worked at City, Bidadi, Bangalore - Hebbal, Mahalaxmi Haranahalli, Mangalore - Car Street, Baikampadi, Layout, Malleshwaram 18th Cross and Mysore - Mangalore - Kankanady, Recovery Division - HO, Vontikoppal. Thane, Muloor, Credit Card Division - HO, Pune - Aundh, Zonal Office - Pune, Zonal Office - Thane 7. Mr. Potla Peda Venkateswara and Mangalore - Kulur. Rao, Senior Manager, 4. Mr. Sadashiva M Vijayawada Main (Vijayawada) Gagganamalle, Senior Sri Rao joined the Bank as a Manager, Zonal Office - Clerk in July, 1984. He was Belgaum promoted to Officers’ Cadre in Sri Sadashiva joined the Bank JMG Scale I in February, 1994. in September, 1983 as Typist He became Manager in MMG Scale II in July, 2004 Cum Clerk. He was promoted and as Senior Manager in Scale III in March, 2010. to Officers’ Cadre in JMG Scale I in March, 2002. He became During 36 years of service, he worked at Kurnool, Manager in MMG Scale II in March, 2010 and as Adoni, Tuni, Palayamkottai, Cuttack, Eluru, Dulla, Senior Manager in Scale III in May, 2017. Hyderabad - Banjara Hills, Ahmedabad - Tilak During 36 years of service, he worked at Sholapur, Road, Hyderabad -Mehdipatnam, Kolkata - C. R. Bagalkot, Bevoor, New Delhi - Tilaknagar, Hulyal, Avenue, ARMB, Vijayawada – Main, Benz Circle and Hubli - Aravindanagar, Mudhol and Yadwad. Currency Chest. Officers’ Voice, January 2020 34

8. Mr. Nibir Kanti Sen, B. VOLUNTARY RETIREMENTS Manager, Kolkata LIC Hub The following members retired from the Bank (Kolkata) voluntarily, under Regulation 29 of Pension Sri Sen joined the Bank in Regulations during November, 2019. September, 1984 as a Typist 1. Mr. Podury Venkateswara Cum Clerk and became Special Rao, Manager, Circle Audit Assistant in January, 2007. He Office - Kolkata (Kolakata) was promoted to Officers’ Cadre in JMG Scale I in September, Sri Rao joined the Bank as 2007. He became Manager in MMG Scale II in July, an Officer in JMG Scale I 2014. in December, 1984. He was During 36 years of service, he worked at Mangalore promoted as Manager in MMG - Car Street, Kolkata - Gariahat Road, Rash Bihari Scale II in April, 1997. Avenue, New Alipore, Jadhavpur, Ahmedabad - M. J. Library, Samali and Kolkata - Sinthee More. During 35 years of service, he worked at HO - Branches Inspection Department, New Delhi - IAD He served as Zonal Secretary, Kolkatta for the Cell, Jaipur, Vadodara - Alkapuri, Painguinim, period from 2016 to 2019 in 20th Executive Panipat, Zonal Offices - Chandigarh, Belgaum, Committee. Hubli, Ghaziabad, Noida and Hyderabad - Zonal 9. Mr. Alla Sudhakar Rao, Audit Office. Senior Manager, Circle Audit 2. Mr. Shivananda N Office - Mumbai (Thane) Puranik, Assistant Manager, Sri Rao joined the Bank as a Benakanhally (Belgaum) Clerk in May, 1985. He was Sri Puranik joined the Bank promoted to Officers’ Cadre in in June, 1982 as Peon. He was JMG Scale I in March, 2003. He promoted as Clerk in July, 1989. became Manager in MMG Scale II He became Officer in JMG Scale I in March, 2010 and Senior Manager in July, 2014. in September, 2014. During 35 years of service, he worked at Neerkulla, During 38 years of service, he worked at Hirewaddatti, Warangal, Ookal Haveli, Mumbai Nariman Point, Bagalkot, Girisagar, Bevoor and Biligi. LIC Hub, CAPS, Jaipur - Mini CAPS, Zonal Office - Thane, Thane - Wagle Estate and Vasai East. 3. Ms. Uma Gopal, Assistant Manager, Bangalore - 10. Ms. Leela Amrith, Manager, Bangalore - Basavanagudi (Bangalore - Sarakki Layout (Bangalore South) South) Ms. Uma joined the Bank in July, Ms. Leela joined the Bank in May, 1983 as Typist Cum Clerk. She 1985 as a Typist Cum Clerk. was promoted to Officers’ Cadre She was promoted to Officers’ in JMG Scale I in February, 2003. Cadre in JMG Scale I in April, 2010. She became Manager in During 36 years of service, MMG Scale II in May, 2015. she worked at Karkala, Bhadravathi - B. H. Road, Jannapur, Honnavar, Bangalore - CBB, Srinagar During 35 years of service, she worked at and . Communications Cell - HO, Mangalore - Pandeshwar, Accounts Section, Service, Credit CBOO thanks all these members for their support Division (CP&PS) - HO, Madanthyar, Bangalore - and co-operation and wishes them a Happy, Healthy Shanthinagar and Centralised Account Opening and Contented retired life. Cell. Officers’ Voice, January 2020 35

health watch Making a joint statement

It’s a known fact: Your bones become thinner and levels, which are maintained during active lose their density. And over time, as they turn menstruation period, drop significantly during brittle, you become more prone to injury. menopause. This increases the risk of osteoporosis. Amongst men, low testosterone levels could be a Bones provide a structure to our body and protect contributory factor in loss of bone mass. Excessive our organs. Joints are complex structures of bones thyroid activity can also affect bone mass. made functional by adjoining muscles. Joints allow movement and stability. Therefore, it is important Tobacco and alcohol to maintain them in good health. Smoking has a direct negative effect on bone The bones in a human body are in a state of constant mass. Smokers are at a greater risk of developing cyclical change - where a new bone replaces an osteoporosis. Similarly, regular consumption of old one as the bone mass increases. This change large amounts of alcohol can also contribute to continues at a faster pace during childhood and weaker bones. peaks around the age of 30 years. From here Size onwards, the rate of growth of bone mass slows down. The amount of bone mass accumulated Very thin people or those with a small body frame before the age of 30 and the rate of depletion could are at a greater risk in older age because they have give a fair estimation of how likely one is expected a lesser accumulation of bone mass to offset the to develop osteoporosis in later years. There are loss in advanced years. multiple factors which affect bone health. Some Family history important ones are: The risk of osteoporosis increases if one has a Physical activity family history, especially amongst close and direct One cannot emphasize the role of physical activity relations - parents, siblings etc. in maintaining bone health. It is the most important Medication factor to reduce the risk of osteoporosis in old age. Long-term steroid use, cancer treatment, epilepsy Food treatment and some other medications can also A balanced diet with sufficient amount of calcium, lead to osteoporosis. Vitamin-D and protein helps with both bone and Staying Fit joint health. Calcium assists with bone density, Vitamin-D assists with calcium deposition whereas Exercise daily - At least some form of vigorous and protein builds muscles, which support joints. sustained physical activity for 30 minutes to 1 hour on a daily basis. Gender and age Eat consciously - Include good sources of calcium Since bones become thinner and weaker with age, (milk, curd, nuts, green leafy vegetables, pulses etc), the elderly are at a greater risk of osteoporosis. Vitamin D (egg yolk, dairy products, natural juices, Women have lesser bone tissues than men and soya milk, cereals and fish) and proteins (pulses, therefore, they too are more likely to develop dairy, eggs, meat, fish, soya etc) in one’s daily diet. osteoporosis. Supplements - Recommended only if there is Hormone level evidence of deficiency. Sometimes misses out, some varieties of hormones - The Economic Times, 26/11/2019 are crucial to bone health. In women, estrogen

The good die young because they see it’s no use living if you’ve got to be good. - John Barrymore Officers’ Voice (RNI, Delhi Regn. No.KARENG/ 2005/14831) Postal Regn. No.MNG/128/2018-20 Licensed to Post Without Prepayment under Licence No. SK/WPP/MNG/115/2018-20 Office of Posting: Post Office, Kankanady – Mangalore Date of Posting : 1st of every month Annual Subscription for members: Rs.60/-

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