RegisteredOfficers’ with RNI, DelhiVoice, Regn. No.June KARENG/2005/14831 2019 1 444 Vol 37 - 12 June, 2019 Bank’s saga with loss continues and it has deepened of Rs. 6333 crore for the current year as against further for the last fiscal. Corporation Bank - once the Rs. 4054 crore for 2017-18. cynosure in the industry for its positive performance, But still, the atmosphere is not of dismay and continues to be so - but for reasons otherwise. The panic. There are still a lot of positive take-aways reasons may be any or many; yet the bitter truth of over the previous year that should motivate every posting a huge loss needs a careful analysis of the Corp Banker to do better in the current and future performance and course correction. years. Even during the worst crisis period during the early F Net Bank Credit which had registered a de- 1990s, Bank could stave off the ignominy of ending growth in FY 2017-18 has shown a modest up in red. However, as at March, 2016, for the first growth to reach a level of Rs 121251 crore time in the history of the Bank, the Balance Sheet was (1.15%). Average Advances also saw a painted RED. With renewed efforts by the management positive upward trend. and the contribution by the rank and file, it was F Average Yield stood at 9.43% as against brought back to PINK, the following year. External 8.91%. factors in the form of RBI circular dated 12.02.2018, F Gross and Net NPA levels that were threatening coupled with increased provisioning requirements of to blow out of control were reigned in at yesteryears’ AQR identified assets (due to ageing); Rs 20724 crore and Rs 6927 crore caused a severe dent on the already bruised Balance respectively. In percentage terms it was more Sheet and Bank ended up with a net loss of Rs. 4054 respectable at 15.35% and 5.71% as against crore for the year ended 31st March, 2018 - the second 17.35% and 11.74% respectively as at March, time in its 113 years of fruitful existence. During 2018. the just concluded financial year, it seemed things F Provision Coverage Ratio improved to were looking good (or at least informed as that); the 83.30% from 63.65%. feel-good factor of “Halla Bol” was touted to deliver with a magic wand, instead the performance again F There was considerable reduction on bulk dipped to a new low with Bank registering a net loss business both on the assets as well as on Editor Asso.Asso. Editor Editor Members Advisor Edited and Published by EkanathY. Sudhindra Baliga G. SatishRaghuraman Shetty H.S.K.B. Vishwanath Prasada T.R. Bhat EkanathY. Sudhindra Baliga Satish Shetty Devaraja B.P. Rachappaji J. on behalf of the Owners : Printed by: Corporation Bank Officers’ M. Rajesh Dange FounderLicensed Editor to Post : Sri Under T.R. Bhat Organisation (Regd.) Codeword Process & Printers LicensedLicense to MNG/128/2015-17 Post Under License 106, Lobo Prabhu Court Falnir, Mangalore - 575 001 L/MNG/128/2018-20& SK/MNG/WPP/7 & 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, JuneJune 20192019 2 the liabilities side. Still, the total business Office into three separate Divisions, more thrust continued to be above Rs. 3.00 lakh crores, needs to be given to MSME and Retail, while continuing to retain the status of mid- size continuing with the thrust on Agriculture lending. bank. Corporate Lending shall be to ‘A’ grade borrowers and to those having long and satisfactory F CET-1 ratio improved to 10.39% during the association with the Bank. Attention to lend current year from 5.68% as at March, 2018 with caution and care (Lend More with due to capital infusion of Rs. 9,086 crore Quality - More) shall not be lost sight of. by the Government of India. Incidentally, This reminds of the old adage “Recover More our Bank received the highest capital among to Lend More.” PSBs signalling the faith and confidence of GoI in the Bank. Another facet of the challenge is the need for the Man & Machine to work in sync. The machine New challenges have raised the hood that needs (the IT system) has become a killer pain in the to be deftly handled. neck that has not been treated in the manner F Interest Income fell to Rs. 10993 crore as it should have been. Bank should make every against Rs. 11471 crore as at March, 2018 effort to treat the machine and at the earliest time, wriggle out of the Finacle blues haunting that has led to fall in operating income and the Bank, the customers and the field staff for the the entire machinery of workforce needs to last two years. The complacency of ‘Everything pull up their socks and work to shore this up. is Working Fine’ must be buried into the deep F Total Business growth was sluggish at Arabian sea and a time bound strategy to resolve Rs. 305819 crore. all the issues must be evolved. We cannot afford F RoA continues to be a worrying factor at an entry into the status of malignancy as a -3.14% as against -1.67% as at March, consequence of the ‘Feel Good’ factor (which is 2018. factually absent at the field; but present only in F Earnings from Treasury operations (which top most level reporting). was a major contributor in the past) have not Manpower assessment needs another urgent been encouraging. revisit. Basically, there is an urgent need to Obvious question in everybody’s mind is whether change the administrative mindset from “Staff the current year’s performance again draws is a Cost” to “STAFF IS NOT A COST; BUT the ire of RBI to clamp restrictions under PCA? IS, IN FACT, AN ‘INVESTMENT’ FOR THE Hopefully, the answer may be an emphatic “No”, FUTURE”. as all other parameters viz., CRAR, CET1, Net C O N T E N T S NPA and Leverage Ratios are within the threshold Page No. limits and that relating to Return on Assets (RoA) CBOO News ....................................................... 3 alone is being breached. However, it is given to Balasubramanian Foundation .......................... 4 understand that the Bank has apprised RBI of the AIBOC News ...................................................... 4 Banking Round up ............................................. 7 structural and systemic improvements put in place Circular Round up ........................................... 12 to maintain these numbers. Class Room ...................................................... 14 Nevertheless, Recovery shall continue to be Miscellany........................................................ 15 the thrust area and the number game should Women's Wing ................................................. 17 Legal Decisions ................................................ 27 be shunned. Streamlining and strengthening MD Interview to Business Line ........................ 30 recovery teams shall be given top priority. Retirements ..................................................... 31 With splitting of the behemoth vertical of Priority, Health Watch ................................................... 39 FI, MSME and Retail Lending Division at Head In Lighter Vein ................................................. 40 Officers’ Voice, June 2019 3 Administration must come out of the frozen transferred officers for want of substitutes and paradigm of “SURPLUS” arrived at on the basis relievers. of illogical and impractical computer garbage. F Absence of replacements/substitutes in the place Absence of supervisory staff coupled with the of officers/clerks retired/deceased/promoted. subordinate category, has eroded substantial Today, the need of the hour is to collectively work business adding fuel to the customer exits to pull the Bank out from deep red and bring it caused due to perennial system blues. These back the status of “The Premier Government issues have been highlighted time and again; of India Enterprise” and to see the smiles back seldom dealt seriously by the contemporary on the cheeks of Corp Bankers who have the leaders in top echelons of administration: courage to accept the challenge and will, surely, F Substantial number of Single Officer to render their best to see the Bank back in the Branches. pink of its health. Collectively, we all must gather F Severe staff crunch at Branches with good our wits and tread steady path to steer the Bank growth/good potential for growth. back to safer zone. The red in the Balance Sheet F Multi-tasking at controlling offices hampering should not obliterate the fighting spirit of Corp control mechanisms. Bankers; instead has to unite to lead a fight back. TOGETHER WE CAN HOPE FOR CHANGE; F Inadequate manpower resources in TOGETHER WE CAN ENSURE THE CHANGE; inspection function. TOGETHER, WE CAN…. F Non-transfer of officers and non-relieving of OV c. Functioning of Zonal Unit. CBOO NEWS d. Proposed Swasti program at Nellore and to ZONAL COMMITTEE MEETING identify at least one Swasti Program a month. Nellore e. Conducting Pre-promotion training and Mock interview for the promotion aspirants First Zonal Committee Meeting after the constitution of new committee was held on 24.02.2019. A V f. Helping all our members by sharing materials/ Ramana Prasad, Joint General Secretary and knowledge for promotion. P V Chaitanya Reddy, Circle Secretary also g. Efforts for reaching the target of Souvenir participated. collection. Zonal Chairman, T Ramesh Babu, welcomed the h. Sports activities Central Office bearers and all the Zonal Committee Members. i. Problems faced by our members in getting their leave sanctioned and thereafter availing. The Zonal committee discussed the following in detail: j. Issues at Single Officer Branches. a. Finalisation of Plan with regard to Branch k. Issues faced regarding deputations. visits and distribution of Mementos to all our l. Prioritise renewal of lease of branch premises, members across zone.