It has been reported several time in the past , written to Prime Minister, President of India and to all important dignitaries on many occasions that for last one decade and more CEO, CMD and top ranked officers of Public sector banks in collusion with , union leaders, association stalwarts ,officials of RBI , Banking Division and Ministry of Finance have not been making adequate provision or making less provisions towards pension or gratuity payment to employees who retire from banks only to show artificial profit and to conceal the misdeeds of top bankers and politicians and to save the image of policy of banking reformation launched and promoted by Doctor economist Mr. Manmohan Singh in 1991 and then supported by UPA government .
Thousands of crores of rupees are sacrificed every year by each bank in waiver of loan or in compromise settlement with defaulting borrowers. Two years ago 75000 crores worth loans were written off by banks to obey the orders of the government who talk of reformation in banking.Crores of rupees are spent by banks in extending red carpet welcome to top ranked government officials, CMD, RBI executive, RBI governor and other VVIP dignitaries but management of bank do not have will to make adequate provision for employees whose contribution in making of bank is more significant and relevant .Bank management can spend lavishly in motivating team of Chartered Accountants to put their signature of balance sheet without making mention of bad assets. Bank can spend crores of rupees in advertisement, in organization of functions to celebrate or to bid farewell to top officials of the bank but banks do not have adequate income to pay even pension for serving employees. So many suits have been filed in various courts by aggrieved employees or by their association against injustice in Bipartite settlement against the process of promotion but there is none to take care of it. Bank management can pay crores of rupees to advocates to save the legitimate expenses towards staff welfare. This is the pitiable position of PSU banks and this is the position of corrupt mind of top officials of banks and other regulating departments.
Now RBI has given instruction to banks to provide for pension payment at least for retire employees. This amount of provision is estimated to be Rs.4000 crore by RBI. If provision towards pension payment towards serving employees is done which is supposed to be done I assume the amount will come to at least one lac crore and all banks will come in loss and face capital erosion. As such CMD of banks in general through IBA are demanding amortization of provision towards pension payment for coming five years so that burden of provision may be staggered in coming five years.
It is shocking for all those who do not know the level of corruption prevailing in the banking industry. Foul game being played by top bankers is not less dangerous than the game played by Mr. Raju of Satyam Computers.
It s shocking for those media men and economists who considered public sector banks as the best performer and those who are swayed away by sweet promises and tall claim of achievement made by CMD of various banks master mind of fraudulent activities .
It is shocking for government officials who considered Public sector banks as safe and healthy.
But it is not astonishing for bank employees who voiced their protest on fraudulent attitude of CEO, who filed writs in various High courts against injustice in 9th Bipartite settlement signed on 27th of April 2010 in between IBA and union leaders of bank employees,.
Long ago it was reported by many bankers that Union leaders and top ranked officers are not making provision towards pension payment and team of Chartered Accountants are selling their signatures and certifying false and inflated profit and concocted balance sheet.
It is worthwhile to mention here that all companies in the country have to give equal contribution towards Provident Fund as much as they deduct from their employees. Banks also used to contribute equal amount in provident fund for their employees as long as employees in general were member of provident fund. When bank employees opted for pension, banks were supposed to contribute similar amount towards pension fund so that future liability arising out of pension payment could be met without any adverse impact on profitability of banks. But unfortunately many banks stopped making provision towards pension to show inflated and false profit and to remain in good book of RBI officials, Ministry of Finance and also to falsely glorify the policy of liberalization and globalization promoted by Mr. Manmohan Singh.
It is never too late. I expect even now the government will ensure accurate provision towards pension payment.
When banks are unable to meet even legitimate expenses for their serving employees there is no justification in considering the banks as healthy and promoting bank officials as ED or CMD. Union leaders considering themselves as protector of interest of bank employees are also supporting illegal acts of the management. In such postion Managing Director of banks and Union leaders who perpetuated fraudulent and such mischievous activity in banks and RBI officials who allowed this to happen for years together are equally responsible and accountable for current mess in banks and they should be adequately punished.
It is pertinent to mention here that on this point as many as 16 writs are pending in various High courts in India .IBA is still silent spectator of Chirharan of bank employees. None of even VVIPs are least bothered of justice. Reign of injustice will continue as long as corrupt leaders are sitting on top posts.
However it is to be welcome by all bankers and especially retired employees that RBI has ultimately advised banks to make adequate provisions towards pension payment. God knows when top officials will apply their wisdom in protecting the interest of field functionaries on whom depends the real health and real future of the bank.
In brief I can say that inordinate delay in delivery of courts in India is used a s tool by corrupt officials to continue their earning through unfair means and to continue their whimsical decisions.