Are 25%  of Profits of PS Banks Are Through Exploitation of Staff ? - Who is Responsible for Keeping 41000 Posts Vacant 

by

Danendra Jain dkjain49709@gmail.com

In many newspapers today it is reported that as many as 41,146 posts, including that of officers, were lying vacant in 19 nationalised banks at the end of March 2012.   There were vacancies for as many as 20,785 officers and 12,695 clerical level posts as on March 31, 2012, Minister of State for Finance Namo Narain Meena said in a written reply in the Rajya Sabha.


If Average pay per employee is taken as Rs.3.00 lacs per annum , the expenditure saved by banks by keeping 41000 post vacant comes to 123 000 lacs i.e. 1230 crores. It means more than 25% of total profit earned by state run banks comes from exploitation of staff.

That is why I used to say that government banks are indulged in same type of exploitation of staff which used to happen before nationlisation of banks in 1969, late sitting , holiday working and what not., exploitation of not only work force but also of small farmers and small traders.

Greatest fun , surprising and unbelievable bitter truth is that these banks used to obtain high value deposit at 11 to 15 percent and offer high value loans at 7 to 10 percent of interest upto the year 2008 and 2009 and book higher profits than now only because of the fact that these banks were master in manipulation. Now hidden truth and bitter truth of true volume of bad assets and falling ratio of profits of these is getting exposed when RBI and MOF have raised many objections to unhealthy practices prevalent in these banks and have issued many corrective guidelines to banks.

Norms of provisions, classification of assets, lending to corporate all have been subjected to verification and system generated. Profit of majority of banks have therefore have been falling down and ratio of bad assets is going up.

In such position banks had only option to save expenses on manpower and hence they stopped recruitment to a great extent despite opening of hundred of branches every year and forced existing manpower to work late and on holidays. Sanctioning of leave specially to those who are good workers has become a remote possibility now a days..

Work culture has been badly affected and damaged by flattery loving bosses and this is why fresh recruits do not want work in bank and leave banks as soon as they get other better opportunity. Attrition rate is much higher in banks than in IT sector or else where.   It is open secret that only those unemployed youth who are extremely weak and who do not foresee any scope of getting job in other sector continue job in bank for their livelihood.

Even existing employees who are on the verge of retirement are not giving their hundred percent because they get no recognition as flatterers get from bosses.  Quality of assets is continuously deteriorating and there are none to take care of it inspite of huge pressure built by Ministry and Government of India.

Quality of service and quality of assets is day by day deteriorating due to poor quality of manpower posted at high post , due to poor wage structure and due to unwarranted political interference and misuse of banks by politicians.

Comments by Rajesh Goyal :

Mr Jain has rightly pointed out the ills of the HR departments of banking industry.  The biggest question, which remains unanswered is that who is responsible for bringing this situation ?  You can NOT blame this to economic situation or default by borrowers.     This was 100% within the powers of the HR departments and top management of banks.    Nobody else can be blamed for this mess.    Are HR heads of past decade are not responsible to bring banking industry to this mess ?  or Did earlier and present CMDs and EDs blocked recruitment for their own interests?  There is need for close introspection of HR activities for last one decade i.e. since  VRS of 2000.    There is a need to fix responsibility of HR people and CMDs / EDs even if they have retired.   A white paper like document should be prepared so that at least they are exposed, although we may not be able to punish the guilty.  May be the information as to why recruitment was not undertaken as per needs on year to year basis be sought under RTI.   Branch Managers are frequently Charged Sheeted for even small lapses and even for the lapses of the borrowers who fail to provide data and documents in time to over burdened branch staff.  HR heads and staff in HR sections take great pleasure when they issue charge sheets  and suspend field staff.   They get kudos from EDs and CMDs if their is progress in number of charge sheets on year to year basis.    On the other hand I have yet to hear a single case where HR person was charge sheeted for failure to properly assess and recruit staff.   Rather they represent their cases by saying that they have saved bank money.    They do not understand that by saving small amounts, bank has not only lost the business opportunity but created dissatisfied staff, suffering from depression, blood pressure, high sugar levels.   The loss on these counts can not be assessed in monetary terms, but I can guarantee it is bigger than the amount saved by not recruitment the staff in time. 

The workman and officer directors needs to take this issue in Board meetings aggressively and ensure that all the backlog is cleared before the end of FY.  This will give at least some relief to the staff.  If need be they can call a strike on this issue.  Union leaders demand that there should be regulated hours.   But they do not hit the root cause of the problem.   If there will be sufficient staff, there will be no need for late hours.   Although the major blame for this shortage of staff lies with management, yet union leaders can not be absolved completely as workman and officers directors have failed to force Boards to pass resolutions for timely recruitment.    (Time and again I am blamed that I am against the union leaders and for strike to stop reforms etc.   If a strike is undertaken on this issue I too will support as such a move is likely to bring a direct relief to the existing staff who have to work late hours).

There is a need to frame policies wherein it is clearly spelt that even HR department staff will be accountable if they fail to plan and recruit staff as per the branch expansion plans and requirements on account of retirements etc.    If CMDs and EDs fail now, the present mess will continue and soon you will have much more dissatisfied staff in banks.