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Bank employees to go on strike on
Jan 20, 21
They are demanding early wage revision and protesting against
banking reforms
T E Narasimhan | Chennai December 23, 2013
BUSINSS S!"N#"$#
Bank employees to go on a two day strike on January 20 and 21,
followed by further strikes in February and Marh 201!"
Banking News
Estd. 20-4-1946
NEWS BULLETIN from ALL INDIA BANK EMPLOYEES ASSOCIATION
24 DECEMBER 2013
The decision was taken at a meeting UFBU took !ace in "#derabad toda#,
said C " $enkatacha!am, %enera! &ecretar#, "ll India Bank mployees
"ssociation %"IB"&
The UFBU, aart 'rom (!! )ndia Bank Em!o#ees (ssociation *()BE(+, inc!,des
(!! )ndia Bank -.cers/ Con'ederation *()B-C+, Nationa! Con'ederation o'
Bank Em!o#ees *NCBE+, (!! )ndia Bank -.cers/ (ssociation *()B-(+, Bank
Em!o#ees Federation o' )ndia *BEF)+, )ndian Nationa! Bank Em!o#ees
Federation *)NBEF+, )ndian Nationa! Bank -.cers Congress *)NB-C+, Nationa!
-rganisation o' Bank 0orkers *N-B0+ and Nationa! -rganisation o' Bank
-.cers *N-B-+1
In the meeting it 'as decided to urge upon the Indian Banks
"ssociation and (o)ernment to resume the talks 'ith a *etter and
reasona*le o+er o, 'age increase and e-pedite the settlement at
the earliest.
(ro,nd ten !akh em!o#ees went on a strike on December 12th demanding
'or ear!# wage re3ision and against banking re'orms1 The decision comes
a'ter ta!ks between Unions and Banks was 'ai!ed1
C " $enkatacha!am, %enera! &ecretar# "ll India Banks mployees
"ssociation %"IB"& said ta!ks between )ndian Banks (ssociation *)B(+ and
()BE( on &at,rda# did not #ie!d an# ositi3e res,!t so the Union decided to
ca!! 'or a strike1
The Union was demanding ear!# wage re3ision, which he c!aims its ending
'or a!most an #ear1
4The# *)B(+ said econom# is in bad sit,ation and cannot re3ise wages now,
which we don/t agree,4 said $enkatacha!am1
The Union is a!so against banking re'orms inc!,ding ri3atisation, mergers,
gi3ing !icense 'or Cororate ho,ses, rising N5(s and others, said
$enkatacha!am1
Bank unions threaten t'o/day strike
,rom January 20 ,or early 'age
settlement
B# 5T) | 23 Dec, 2013 EC-N-6)C T)6E&, NE0 DE7")8
Em!o#ee ,nions o' ,b!ic sector banks on 6onda# threatened to go on a
two9da# strike beginning :an,ar# 20 to ress 'or ear!# wage sett!ement and
other demands1
4)n toda#/s meeting at "#derabad, it has been decided to ,rge ,on )B( and
the go3ernment to res,me ta!ks with a better and reasonab!e o;er o' wage
increase and e<edite sett!ement 'ai!ing which the ,nions wo,!d go on a =29
ho,r strike 'rom :an,ar# 20,4 United For,m o' Bank Unions *UFBU+ 'ormer
con3ener C " $enkatacha!am to!d 5T)1 &ta; o' ,b!ic sector banks had gone
on a one9da# nationwide strike on December 121
0ur e+orts to tackle *ad loans 1'ill
sho' results o)er ne-t ,e' 2uarters3
BEEN( 5(>6(>, &(T?(N(>(?(N )?E>
6U6B(), DEC1 238 BU&)NE&&7)NE

RAJEEV RISHI, CMD, CENTRAL BANK OF INDIA
(ross N4"s should ,all *elo' 56 *y 7arch, says 8entral Bank o,
India 87#
(mid an economic s!owdown and o!ic# ara!#sis, it is de@nite!# a cha!!enge
to take charge as the head o' a ,b!ic sector bank, which has made a net
!oss o' >s 1,A0B crore and has a non9er'orming asset *N5(+ ratio o' C1A er
cent, among the highest in the co,ntr#1
>aDee3 >ishi, who took o3er as the Chairman and 6anaging Director o'
Centra! Bank o' )ndia in (,g,st this #ear, ta!ks abo,t his strateg# aimed at
red,cing N5(s and on wh# the bank wi!! 'oc,s more on retai! b,siness1
5,b!ic sector banks are s,;ering more than their ri3ate sector co,nterarts
beca,se o' their e<os,re to in'rastr,ct,re, he sa#s1
-cerpts ,rom an inter)ie'9
8entral Bank o, India has *een in a spot 'ith a loss and huge N4"s
in the second 2uarter. :hat are you doing to ;- this<
The N5( !e3e! is ,ndo,bted!# 3er# high1 (t C1=E er cent *or >s 11,A00 crore+
o' gross ad3ances, the gross N5(s are worrisome1 The !oss was d,e to
increased ro3isioning in a 'ew cases1 These cases are there in the ind,str#
as we!! and not D,st seci@c to m# bank1
For e<am!e, 0insome Diamonds is an acco,nt with a!! banks1 Debt
restr,ct,ring was !anned b,t it didnFt work o,t1 &o, we had to make the
entire ro3ision o' >s 1,000 crore1 The increase *in gross N5(s+ 'rom the
re3io,s G,arter was a!so >s 1,000 crore1
( reso!,tion o' N5(s is imerati3e1 0e ha3e engaged o,rse!3es in an action
!an that essentia!!# co3ers @3e acti3ities ti!! 6arch 201=1 The maDor 'oc,s is
to ens,re there is no ',rther deterioration in asset G,a!it# and reco3er
whate3er is ossib!e1
(!so, ) cannot sto doing 'resh b,siness1 B,t ) ha3e s!ight!# tweaked m#
riorities1 ) wi!! contin,e to do cororate credit, b,t wi!! a!so 'oc,s more on
retai! credit as it has !ess stress1
) ha3e a h,ge network o' =,3A0 branches1 &o, ) can de@nite!# e<ect b,siness
to haen in maDorit# o' these branches1
"ence, ) hoe that with the 'oc,s now on retai! and reco3eries, we sho,!d be
ab!e to get o,r gross N5(s de@nite!# be!ow C er cent b# 6arch1
8an you ela*orate on the reco)ery steps you ha)e put in place<
0e ha3e 'ormed two secia! sG,ads in regiona! o.ces H one to take care o'
the !ega! asect and the other is the mobi!e team, which goes to the @e!d1 )
ha3e met the to 30 borrowers o' m# bank1 &imi!ar!#, a!! m# Iona! and
regiona! heads ha3e met the to 30 borrowers in their resecti3e areas1
) hoe something wi!! come o,t o' this and we see some reso!,tions b#
6arch1 )n terms o' s!iages, in the ne<t two G,arters we e<ect things to
imro3e *'rom >s A,000 crore in "1 F?13+1
=as this >top ?0@ strategy started to sho' results<
(!! those so't N5(s *in the initia! stages+ ha3e started a#ing , immediate!#
and once others rea!ise that the bank means b,siness, the# wo,!d re'er to
a# , than 'ace !ega! action1
-n the who!e, whate3er e;orts we ,t in now wi!! show res,!ts o3er the ne<t
'ew G,arters1 &o 'ar in this @nancia! #ear, o,r reco3eries ha3e e<ceeded >s
220 crore1
%oing 'orward, ) am hoe',! that in tandem with an imro3ing economic
en3ironment, ress,re on stressed assets wo,!d red,ce1 ) sha!! be 3er#
ha# i' b# F?201=91A, m# N5( ort'o!io red,ces b# another 100 basis
oints1
:ould you attri*ute N4"s to inade2uate credit appraisal<
?o, ha3e to !ook at it in the right conte<t1 7ook at a!! the roDects that ha3e
been sta!!ed1 0e ha3e roDects that ha3e been 2092A er cent com!eted1
Banks ha3e a!read# !ent mone#, the in'rastr,ct,re is a!read# in !ace, b,t
rod,ction is de!a#ed beca,se there is s,dden!# no gas 'or gas9based ower
roDects1
The same goes 'or coa! *roDects+1 Nobod# anticiated that a coa! scam wi!!
mean coa! becomes ,na3ai!ab!e1 )' #o, !ook at the maDorit# o' N5(s, it is
beca,se o' s,ch iss,es1 )t is not that we did not correct!# assess the demand
'or !oans or ga3e !oans to incometent comanies1
(t that time, it !ooked correct and !ogica!1 There are some wi!',! de'a,!ters,
too1 The# are serio,s!# not ha3ing an eas# time1
:hen 'ill the N4" menace end<
)t is an#bod#Fs g,ess1 0e do hoe that there is a stab!e go3ernment, which
wi!! take some decisions the# o,ght to take1 This ,ncertaint# has to end1
:ill you go slo'er on *alance sheet e-pansion<
0e ha3e grown at 1=1A er cent and e<ect to grow at a simi!ar rate1 0e
were not doing retai! ear!ier, we were not doing agric,!t,re to the e<tent that
) wo,!d ha3e !iked1 0e wi!! ',nd a!! 3iab!e roosa!s coming 'rom an# sector1
)n retai!, the 'oc,s wi!! contin,e on sec,rit#9based rod,cts, s,ch as ho,sing
!oans and mortgage9based !oans1
)t wo,!d take some time1 ) hoe that a!! m# branches ,t together wi!! be
ab!e to gi3e me *additiona!+ retai! b,siness o' abo,t >s 2,000 crore b# 6arch1
)' that haens, ) do hoe we wi!! ha3e a better mi< o' b,siness, which is at
resent skewed in 'a3o,r o' cororates, at abo,t CA er cent1
Aou assumed charge a*out ,our months ago. =o' has your
e-perience *een<
First, it is a big bank comared with m# re3io,s banks *-rienta! Bank o'
Commerce and )ndian Bank+1 )n terms o' geograhica! sread, Centra! Bank
o' )ndia is e3er#where1
&econd, it is a big brand1 )t doesnFt need an# introd,ction1 ) ha3e a great
network o' o3er =,000 banks1 Tho,gh ) was disaointed with the N5( @g,res
) had to sign on it1 -3er ne<t 'ew #ears, we sho,!d be ab!e to reco3er *d,es+
'rom most o' o,r c!ients1
#o you think the pro*lem o, high N4"s is a recurring one ,or ne'
chairmen o, 4SU *anks<
) was e<ecting this G,estion1 0hen ) e<!ained the !oss, ) said it was on!#
beca,se o' a >s 1,0009crore additiona! !oss 'rom one acco,nt1 0e co,!d not
ha3e done an#thing abo,t it as it was with the CD> ce!!1
-nce we rea!ised we wo,!d not reco3er the mone# this G,arter, we made
ro3isions 'or the same1 The net addition to the N5( was a!so >s 1,000 crore1
)t is norma! 'or a bank o' this siIe1 Tanksa!e *the re3io,s Chairman+ wo,!d
ha3e a!so done the same1
4ri)ate sector *anks seem to *e getting a handle on the N4"
pro*lem. =o' di+erent is it ,or pu*lic sector *anks<
5,b!ic sector banks are more into in'rastr,ct,re !ending1 ) know it so,nds too
sim!istic an e<!anation1 B,t i' #o, !ook at ower and road roDects, most o'
the ,b!ic sector banks ha3e !ent to them1
(nd when things go wrong, on!# 5&U banks take a hit1 B,t we ha3e !a#ed
o,r ro!e according to the econom#Fs reG,irements1 (ssets ha3e to be ,t in
!ace1 )t is not that mone# has disaeared, b,t it is st,ck and it wi!! get
,sed1 )t is D,st a matter o' time1
"BB IN#I" B"NC 74B0AS'
"SS08I"!I0N
#entral $%e& '()B*)T +,-).
.ingapore 'la/a, 10!, 1inghi #hetty .treet,
#hennai/500001
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