The finance ministry has set up a committee to suggest a formula for revision in compensation of employees of public sector bank after the central bank has raised concern that low salaries could lead to attrition.
The committee will be headed by Joint Secretary Financial Services Alok Nigam and will have Bhaskar Sen, CMD United Bank of India and MV Nair CMD Union bank of India as members amongst others.
“If public sector banks are required to compete with private sector banks on a level playing field, there is a good case for compensating them too on a competitive base,” the governor of D Subbarao had said earlier this month.
The new committee will also examine the recommendations made in the Khandelwal report on Human Resource Issues in Public Sector Banks, submitted to the government in June this year.
As of now, public sector banks follow an industrywide wage settlement brokered every five-year by the , the industry body of India’s banks. “This new committee will look into the specific structure issues and how they can be made applicable across all state-owned banks,” said a senior finance ministry official.
This mandate is against the suggestions in the Khandelwal report that had suggested each bank negotiate its salary separately taking into account profitability and productivity.
The employees union of regional rural banks (RRBs) had already rejected the suggestion. Pay and allowances of regional rural bank employees are at par with the employees of the sponsor banks
The Khandelwal committee had also recommended the extension of the idea of according maharatna and navratna practiced in the case of other public sector employees to state-run banks as well. Such a status would give banks more freedom in deciding compensation. “There should be some separate allowance provided for rural stint, as financial inclusion is the top priority for both the government and the banks,” said the chairman of a state-run bank. The government may also set up a time frame for this committee given that over one lakh employees would retire from public sector banks over the next five years.
The committee will be headed by Joint Secretary Financial Services Alok Nigam and will have Bhaskar Sen, CMD United Bank of India and MV Nair CMD Union bank of India as members amongst others.
“If public sector banks are required to compete with private sector banks on a level playing field, there is a good case for compensating them too on a competitive base,” the governor of D Subbarao had said earlier this month.
The new committee will also examine the recommendations made in the Khandelwal report on Human Resource Issues in Public Sector Banks, submitted to the government in June this year.
As of now, public sector banks follow an industrywide wage settlement brokered every five-year by the , the industry body of India’s banks. “This new committee will look into the specific structure issues and how they can be made applicable across all state-owned banks,” said a senior finance ministry official.
This mandate is against the suggestions in the Khandelwal report that had suggested each bank negotiate its salary separately taking into account profitability and productivity.
The employees union of regional rural banks (RRBs) had already rejected the suggestion. Pay and allowances of regional rural bank employees are at par with the employees of the sponsor banks
The Khandelwal committee had also recommended the extension of the idea of according maharatna and navratna practiced in the case of other public sector employees to state-run banks as well. Such a status would give banks more freedom in deciding compensation. “There should be some separate allowance provided for rural stint, as financial inclusion is the top priority for both the government and the banks,” said the chairman of a state-run bank. The government may also set up a time frame for this committee given that over one lakh employees would retire from public sector banks over the next five years.
Source : Economic Times.
23 comments :
WHAT TO BE DONE TO THE BANKMEN
RBI governor has earnestly taken up the matter in the right time to set the things right.
First and foremost thing is to appoint a financial pay commission comprising of retired judge just like sixth pay commission for government employees with terms of reference covering the comparable wages prevailing in the country, nature and risk of the duties performed by them, wages as ratios of profitability, improving the profitability by increasing the spread at the same time by offering good rates to the depositors also. This point also RBI governor has made. There is no need for offering lowest rate to the poor retail depositors and senior citizen and offering loan at concessional rates to the industry lobby whose number in the forbe list is improving year by year. The companies can very well absorb some two or three percentage of high interest without eroding their profitability much. Growth /gdp will not get affected just because the corporate sector is going to absorb a few percentage point more.
AN IMMEDIATE RELIEF OF 20 % INCREASE IN BASIC SALARY ACROSS ALL LEVELS WITH THE SAME LEVEL OF INDEX IN LIEU OF Grade PAY, WITH HRA RATE AS APPLICABE TO ,CENTRAL GOVERNMENT EMPLOYEES WILL ARREST THE POSSIBLE EXODUS FROM OFFICERS LEVEL AND DECENTLY QUALIFIED CLERICAL LEVEL TO OTHER AREAS NOT NECESSARILY TO BANKS AS THE WAGE THAT THEY ARE DRWAING IS PATHETICALLY LOW AFTER THIS REVISION ON A COMPARABLE BASIS.THIS WILL ALSO REDUCE THE TENDENCY TO TAKE VRS AND GOING FOR OTHER JOB.
IN CASE OF OFFICERS THE DIFFERENCE IS HUGE AS NO PERSON WITH HIGH INTELLIGENT ORDER AND WHO CAN GET A JOB EITHER IN PUBLIC SECTOR OR GOVERNMENT SHOULD FIND THE BANK JOB ATTRACTIVE AS OF NOW.THE DIFFERENCE IS MORE THAN 2 LAKHS ON CTC BASIS AT ENTRY LEVEL.
Retaining the existing employees by increasing the salary by 40% immediately as an interim pay and increase in HRA is most important as they have to deliver good stuff and train the manpower that may enter at the rate of 30 to 40 thousand on an annualized basis in the coming four to 5 years.
to be concluded
GOVERNEMENT CAN INSTUCT IBA TO ABSORB THE NOTORIOUS FIGURE OF 1800 CRORES and give a relief to pensioners also.
Before 01.11.2012, the date of next wage revision the financial pay commission should submit its final recommendation that should bind on both parties. The interim pay should be adjusted from that date. IT can be synchronized with VII th pay commission afterwards. BIPARTITE SETTLEMENTS SHOULD BE GIVEN A BURIAL IMMEDIATELY IF GOVERNEMNET IS REALLY CONCERNED WITH THE GROWTH OF FINANCIAL SECTOR. The present set of committee will not recommend any increase as they are not having positive mindset to improve the conditions of bank employees. NO RESULT WILL COME FROM THEM INSTEAD THEY SUGGEST SOME IMPRACTICABLE THINGS WHICH MAY BENEFIT ONLY FEW THOUSANDS AND NOT TO ALL. They are not inclinations to do things . If they are, then the recently concluded settlement should be totally different and there is no need for RBI governor to interfere. He did so because of his genuine interest in the growth of the interest being the head of the central bank of the country. The same type of wisdom/concern was not there either with the banking division of finance ministry /IBA . The political leadership were kept totally dark as bank unions/IBA were not in a position to convince the PM who himself played a role in shaping the financial system and also our senior most FM from whom bank men expected liberalized wage /pension package /full neutralization of DA to old pensioners and pension up dation .
ATLEAST GOD CAN SHOW SOME MERCY THROUGH RBI GOVERNOR AND LET THE BANK EMPLOYEES/PENSIONERS ALSO CAN DERIVE IMMEDIARTE BENEFIT LIKE TWO TO 3 CRORE CENTRAL/STATE /PUBLIC SECTOR AND OTHER SECTOR OF EMPLOYEES WITH GOVERNMENT ASSISTANCE.
K BALASUBRAMANIAN RETIRED SENIOR MANAGER UNDER VRS
PENSION OPTEE
ordering interm relief immediately and constitute pay commission before next 2012 settlement,changing the HR policy drastically,more flexibility are the urgent requirement now.
Good initiative from the govt to protect the PSBs of the country
Ram
Dear All,
The terms of reference of the committee should be extended to all public sector insurance companies as directly/indirectly wages of these companies are linked with bank wages
Dear BALAN yours is very informative. could you pl mention what are the terms of reference of committee ?
whether it will cover all sections of employees & officers or for top executives only ?
Better late than never. THANKS to Sh D Subbarao Ji for concern and initiative. Would there be any interim relief or would this effect only for next settlement? Any body have clues?
Dear Friends,
we have received this information from one of our friend. Yesterday he contacted Mr. K S Shetty Ex president of AIBOC and P K Bhat another leader of Syndicate bank officers association regarding the matter of second pension option to voluntary retired etc. It was informed by both of them that UFBU delegation has taken appointment with the IBA chairman regarding pension to VRS optees under OSR 1979. The delegation is meeting on 7th of oct 2010 and they are hopefull of resolving the matter. According to them there was nothing sort of discussion held on 24.09.2010 regarding pension option to VRS optees as informed by some members about IBA managing committee meeting on 24.09.2010. The leaders are very positive and said it is a matter of time. Hope by the grace of God everything will be resolved positively.
M.C.Agrawal
mca1957@rediffmail.com
Dear Members,
I am sending an RTI application format which you can copy down, print
and send by Regd Post/courrier to MOF.Please arrange to convince all
the colleagues to do this job at the earliest.....
From
_________________
________________
To
The Centrtal Public Information Officer,
Government of India,
Ministry of Finance,
Department of Economic Affairs,
Parliament Street,
New Delhi - 110 001
Dear Sir,
Sub: Requisition of Information under RTI Act, 2005
Ref: Wage Revision and Pension Option in Banks
I invite your kind attention to letter No. 2010015 dated_15th
August, 2010 and letter No.100905 dated 5th September, 2010
sent to the Hon'ble Minister for Finance by Shri. C N Venugopalan on
the above subject and request you to let me know the details of action
contemplated on them by Ministry of Finance. Kindly inform whether the
clarifications of IBA has been taken for removing the anomalies from
the scheme and also whether the action of IBA and banks in overriding
the Gazette Notification dated 13th July, 2002 amending the
Regulation 28 through their joint note dated 27th April, 2010 is
questioned by the Government. In payment of the fees towards
furnishing the information, I am enclosing Postal Order No__________
dated ___________ of ________ Post Office payable at New Delhi in your
favour
Dated at _________ this the ---th day of October, 2010
Thanking You,
Yours faithfully,
Please copy the relevant portion and purchase a Postal Order for
Rs.10/-, incorporate details in the letter and send by Registered Post.
You will get a reply within 30 days from CPIO.
can anyone tell me what packages stamchart or duestche bank or bank of america give to the employees of public sector banks at scale 2 grade
Look at the scenario,one of the well known Private sector Bank has recruited Probationary Officers who joined Public Sector Banks through BSRB in mid nineties and have been given a Cash Package of Rs.20.00 to 25 lac per annum and performance based incentives.This can be verified aby any employee in their Bank.
What it means,once your experienced work force(foregoing their pensionable service of almost 16 years) starts leaving enmass.Then it is not a good sign for the PSBs.
PSBs Management do not respect their internal talent if he is not manipulative/corrupt. The PSBs are recruiting the wards of Senior Bank ?MOF officials studying in some unknown Management colleges as Scale -II/III.The process is neither transparest nor fair.The section process is not competitive.The selection should be based on all india test.Most of these people are being given plum seats/experience so that they can leave for greener pastures.
The experience stuff is himiliated every day and campus recruits are praised without doing any thing meaningful.
In our view Banking is learned through experience and simply being MBA do not put any body on Top of every thing.The Banker has to go through grind of experience.
Any way formation of committee is good thing but the team is same which has butchered the Bank employees in 9th BPS.
Let us hope that committee thinks in logical manner and improves the condition of Public sector Bankers.We are sure with right kind of compensation we can withstand the competition
Orissa High Court gives stay to Parsuram Mohanty for recovery of 56%
http://www.allbankingsolutions.com/Orissa%20High%20Court%20case%201.htm
BANK EMPLOYEES PENSION RULES AND REGULATIONS
FLOODED RTIs ARE THE DEMAND OF THE HOUR
---Ashok goel
AS THE PENSION IN BANKS IS BASED ON IN LIEU OF EMPLOYER’S CONTRIBUTION TOWARDS PROVIDENT FUND.
THIS WAS FIXED @ 10% of PAY AND ALLOWANCES. BANKS’ SHOULD BE ASKED THAT THEY ARE CREDITING EVERY MONTH REGULARLY THE ABOVE CONTRIBUTIONS TO THE PENSION TRUSTS. EACH BANKS SHOULD FURNISH THE DETAILS SINCE THE INCORPORATION OF PENSION SCHEME IN BANKS ON THIS MANDATORY COUNT.
Ashok goel
BAK EMPLOYEES PENSION REGULATIONS
EVEN DISMISSED EMPLOYEES HAVE A RIGHT TO OPT FOR PENSION
EVEN LIFE IMPRISONMENT ENDS WITHIN 14 YEARS
A DISMISSED WORKER CANNOT BE DENIED RIGHT FOR GETTING PENSION
OR TO OPT PENSION FOR AN UNLIMITED PERIOD
.
THE CONSTITUTION DOES NOT PERMIT FOR THE PUNISHMENT FOR
UNLIMITED PERIODS.
Ashok goel
It is heard that some High Court has recently ( two days back)given judgement that when SVRS retirees are given pension option, normal VRS Retirees should also be given pension option. Can any body put the details of the judgement in this web-site !
o subah kavi to aayegi
PENSION IN BANKS
PENSION REGULATIONS
======ashok goel
To ALL CONCEREN
THE 30 days for refunding the 156% of CPF are passing very fast the last date for it is 13.11.2010. But the UNITED BANK OF INDIA till today could not inform the retired employees who opted pension now , the money to be deposited.
unions are requested to help optees.
ASHOK GOEL
28.10.2010
BANK EMPLOYEES PENSION
I am urging to the signatory unions to decide dates for option, dates for refunding money by retired new pension optees altogether. But in all the banks dates differ causing unnecessary problems.
ashok goel
BANK EMPLOYEES PENSION
CASES PENDING BEFORE SO MANY HIGH COURTS
IT MAY HAPPEN THAT VERDICTS OF THE WRIT COURTS MAY DIFFER>
IT IS REQUESTED TO ALL THE PETTITIONERS IN THESE WRIT APPEALS TO SIT TOGETHER AND DECIDE TO REQUEST THE SUPREME COURT OF THE COUNTRY TO CALL ALL SUCH CASES AND HAERING SHOULD BE ALLOWED BY THE SUPREME COURT >
WHEN THE CASES ARE SIMILAR AND AGAINST THE PENSION PACT OF HISTORICAL DAY 27.04.2010, IN SUCH CASE SUPREME CAN DIRECT SO.
LAW GRADUATES FROM THE BANKERS SHOULD COME FORWARD AND CONVINCE THE PETTITIONERS ACCORDINGLY.
HOPE FOR A BETTER FUTURE.
ASHOK KUMAR GOEL
09868404020
ashok goel ji
Sir,
As per know your pension software doc. From aibea website the pension payable to the retirees as per the joint note dt 27/04/2010 is 27/11/2009 and I retired on 31/03/2010 and accordingly entered the values and prepared the sheet and pension payable by the bank was calculated from 27/11/09
Would someone enlighten me on this issue or it is by mistake or for the purpose of pension payable to retirees irrespective of the dates they retired the pension payable to the staff be taken as 27/11/2009
Please do respond and oblige.
ashokkapoor
Dear friends
As per KNOW YOUR PENSION software doc. downloaded from aibea website the pension payable to the retirees as per the joint note dt 27/04/2010 is 27/11/2009 and I retired on 31/03/2010 and accordingly entered the values and prepared the sheet and pension payable by the bank was calculated from 27/11/09
Would someone enlighten me on this issue or it is by mistake or for the purpose of pension payable to retirees irrespective of the dates they retired the pension payable to the staff be taken as 27/11/2009
Please do respond and oblige.
ashok kapoor
Ref:Mr.Ashok 31st Oct
Pension will be paid after date of retirement.
27th Nov 2009, is applicable to those who have retired earlier and now opted for pension.
NPS IN SBI
NEW PENSION SCHEME (NPS) INTRODUCED IN SBI FOR THOSE WHO JOINED OR ARE TO JOIN ON OR AFTER DT; 01/08/2010
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