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June - 2017

Golden Jubilee 1965-2015 1

CHARTER OF DEMANDS SUBMITTEDNEGOTIATION TO COMMENCE SHORTLY

3. Special Allowance, with DA as on 31.10.2017, to be merged with the existing Basic Pay.

4. Revised DA formula with provision for automatic merger and improvement in Compensation against price rise.

5. An allowance equal to amount of last drawn Increment should be granted every year after reaching maximum in the scale.

6. Date of sanction of annual increments should be on 1st January and 1st July every year.

7. The present embargo in regard to the sanction of stagnation increment, automatic movement and PQP in respect of those officers who have opted out of promotion should be removed.

8. Upward revision of HRA commensurate with market rent.

9. Substantial increase of CCA for all centres.

10. Post Allowance should be introduced.

11. Closing allowance to be enhanced and paid once in 3 months, for every quarter.

A meeting was convened by the Indian Banks th

Association on the 5 June 2017, for the submission of Common Charter of Demands by the constituents of the United Forum of Bank Unions. The charter of demands for the officers were finalized by the four Officers' Federations – AIBOC, AIBOA, NOBW and INBOC. Com. D.T.FrancoRajenderDev, General Secretary, AIBOC, Com. DilipSaha, the President, Com.Y.Sudarshan, the Chairman of the AIBOC with other leaders submitted the comprehensive Charter of Demands. The Charter of demands for the Workmen also was submitted on the same day.

The Management representatives were led by S/Shri. R.K.Takkar - Chairman, Negotiating Committee, MD & CEO of UCO Bank, Smt. Usha Anantha Subramanian - MD & CEO of Allahabad Bank, Prashant Kumar - DMD & CDO, SBI, V.G.Kannan - CEO, IBA, B. Raj Kumar, Dy.CEO, RBI, K.S.Chauhan, Sr. Vice President, IBA on behalf of the Indian Banks' Association and received the Charter of Demands submitted by both the Officers and Workmen Unions.

BROAD SUMMARY OF CHARTER OF DEMANDS

1. Wage revision should take into account Risk, Responsibility, Accountability and Transfer-ability of officers. Revised Basic Pay at par with Central Government Officers on the same principles of 7th Pay Commission.

2. Revision of improvement in pay scales by merger of DA upto 31.10.2017.


12. Improvement in transportation of charges at the time of transfer and two months' salary to compensate incidental expenses on transfer.

13. Payment of lumpsum amount on transfer to meet the education expenses of children on account of transfer.

14. Review and rationalization of halting/ boarding/ travelling expenses/Hill area allowance etc.

15. Introduction of incentive for rural and other sensitive/difficult areas.

16. Improvement in special area allowance and special compensatory allowance for N.E , Jammu, Himachal and terrorist infected areas.

17. Introduction of Commercial Banking allowance as prevailing in the Reserve Bank of India.

18. Improvement in Leave Fare Concession and monetization of LFC – The entitlement of mode of travel should be made as air travel to all the officers, and executive class for senior executives and restoration of LFC abroad within domestic entitlement.

19. Special Provision for Women Employees with regards to placement and postings, provision of crèche facility/flexi timings/work from home, child care leave with salary as applicable in Central Government etc.

20. Introduction of 5 days Banking.

21. Working hours for officers should be defined and regulated, in terms of ILO Norms.

22. Definition of Family should include the parents, father-in-law and motherin-law, brothers and

sisters, divorced or deserted to be treated as members of family for the purpose of LFC, HTC and Medical facilities. The income criteria for dependents to be increased.

23. The Provident Fund should be at the rate of 12% of the total salary and allowances.

24. The Gratuity should be paid at the rate of one month salary and allowance without any ceiling.

25. Roll back to the existing pension scheme to all those who are in NPS.

26. Record note of 25 .5 .2015 should be implemented in Toto. Revision in Pension, Family Pension at 30% of last drawn pay and the Principle of One Rank One Pension

27. Encashment of entire leave at credit should be permitted on resignation.

28. Improvement in all leave facilities/introduction of the concept of leave Bank etc.

29. Roll back of Mediclaim Insurance for serving officers and retirees, removal of anomalies etc.

30. Review of loans and advances to staff. The Road Tax on vehicles should be paid by the Banks on inter-state transfers

31. Review of Disciplinary Rules Procedure. Risk allowance should be introduced to provide cover to all the lending risks to all sanctioning authorities at all grades.

32. Present ceiling of 3% of net profit for welfare to be increased to 3% of gross profit without any ceiling for staff welfare activities.

33. Categorization of Branches to be done uniformly for all Banks by IBA & RBI.

34. Massive recruitment of Officers, assistants and subordinate staff required.

SALARY AND ALLOWANCES: OBJECTIVES

The remuneration package of the Bank officers needs to be framed in such a manner that officers would feel that they are valued and fairly paid considering their work load and undertaking of


enormous risks and responsibilities. They should be treated at par with Government officials and PSU officers. As stated in the 7th Pay Commission Report the status of an officer in the society should also be taken into account while fixing the salary. Remuneration of officers is an important element of proactive functioning in Banks in this era of competitive scrimmage and their commitment, dedication and hard labour towards the progress of the economy of the country. In general, the level and structure of salary / remuneration / compensation should aim to achieve four objectives as under:

(i) Salary Structure should be sufficient to attract and retain quality officers.

(ii) Salary Structure should motivate officers to work hard.

(iii) Remuneration should induce other human resource management reforms.

(iv) Salary should be set at a level to ensure relativity with minimum salary in Banks and officers' initial pay in line with compression ratio, as shown below, of Central Government Group A officers' initial pay and their minimum pay of Group D employees.

(v) Salary should take into account the Risk, Responsibility, Accountability and also the Transferability of Officers.

(vi) The Bank Officers have a status similar to the Govt Officials and to maintain that status the salary should be adequate, by offering additional cushion.

(vii) As promotions depend only on vacancies which depends on the presence and business of the individual banks nobody should be allowed to stagnate and running scale should be introduced.

(viii) The anguish, agony and the aspirations of lady officers should be taken into account

(ix) Superannuation benefits should help one to live a respectable life after retirement

(x) The hardwork and contribution of the bankers for the development of the economy should be

acknowledged through decent salary hike and allowances. Part I Salary Revision and Allowances .

The negotiating team of IBA also presented the Management issues as under:

1. Framework of Compensation Package on Cost to Company and Fixed and Variable Pay concept for Officers/ Workmen.

2. Rationalisation of Special Pay carrying posts.

3. Review of two graduation increments to workmen employees.

4. Transfer and deployment of workmen employees - Para 536 of Sastry Award.

5. Simultaneous conduct of disciplinary and criminal/ judicial proceedings in case of workmen in PSBs.

6. Continuing departmental proceedings post-retirement in case of workmen employees.

7. Premature Retirement of a Workman in Public Interest.

8. Outsourcing any activity as per business needs within RBI guidelines.

9. Review of existing provisions of automatic movement of officers from Scale I to II and from Scale II to III in pay scales without any promotion in those grades.

10. To mark lien on NPS fund of employees to recover loss to the Bank on account of their proved misconduct.

The road ahead for negotiations will be with full of challenges.� We need to get the IBA clear decks with regard to the mandate to be obtained from the banks for negotiations to take place for all the 7 scales and 4 grades as per the tradition.

The constituents of United Forum of Bank Unions also met on the same day to decide about the future strategy in regard to pursuing our Charter of Demands submitted to the IBA. We need to keep ourselves ready for all kinds of struggles to achieve our demands.


XIth BIPARTITE AND CHALLENGES AHEAD

There have been many letters purportedly written by Officials from the Department of Financial Services asking Banks to conclude the XI thBipartite wage negotiations before it is due for revision in November 2017. The letter was addressed to the Chiefs of the Public Sector Banks, instead of IBA who negotiates with the Unions on behalf of the Banks. There were many feelers and some prodding from different Banks asking the Unions to go for bank-wise settlement. The introduction of incentives in various forms in different banks is a step taken to divide bankmen and nudge them towards bank-wise settlement. The gentle and crude attempts were handled with maturity and foresight by all the Unions and all remain united, solid as a rock. The unity displayed by the United Forum of Bank Unions has long been a matter of pride for the Bankmen, a challenge for the Banks and the Government and an example for Trade Unions across industries and the globe.

Under such circumstances, there was no movement in IBA towards initiation of negotiations for quite some time and only after UFBU approached the IBA the matter

ndwas taken up. On 2 May 2017, UFBU and IBA met to start the process of negotiations. A brief exchange of expectations from both the sides took place. It was disclosed by IBA that some of the Banks have given restricted mandate- negotiations for officers upto Scale III by some, upto IV by some and without any restrictions by some.

However, UFBU has been insisting with the Managements of all the Banks for giving unconditional mandate to IBA since the industry level negotiations always cover the salary scales in respect of all the employees and officers working in the bank, from Subordinate staff to the General Managers, covering 4 grades and 7 scales in the officers category and two scales in the Award Category.

There is a long history behind the Bipartite settlements and the negotiations. Till the late 70s, there were serious industrial relations crisis creating serious problems in the area of HR management in the Banks at frequent intervals because of different banks having different service conditions and compensation system. It was at this stage that the Government of India appointed Pillai Committee for the purpose of standardization of the scales and grades and also to bring parity amongst the Public Sector banks. After a thorough study of the service conditions that existed in those days, the Pillai Committee submitted a comprehensive report aiming at standardization and uniformity in the service conditions

of the Officers in the Banking Industry. Thereafter, the Government of India introduced the recommendations of the Pillai Committee in the Banks for ensuring standardization and parity amongst the Public Sector Banks. Thus, a well-developed pattern was established over the next rounds of bipartite system in carrying forward the attempts made by Pillai Committee for the purpose of standardization of the salary scales and compensation system in the Banking industry. The Pillai Committee had recommended 4 grades and 7 scales which has now become a regular feature in all the Public Sector banks including the State Bank of India. Since then the salary revision in the Banking industry that takes place once in 5 years through bilateral negotiations between the associations/unions and the Indian Banks Association covering over 10 lac workforce in the entire banking industry has seen many bipartite settlements

thand the 11 one is now expected to take off.

Our Bank, unfortunately has also given a mandate for negotiations upto MMGS III. AISBOF immediately sent a letter to the State Bank management for submission of a revised mandate authorizing the IBA to negotiate on the salary scales of the officers of all categories as done earlier. There was a brief follow-up meeting with the Management in this context and the issue was raised on a serious note. Our resentment over the restricted mandate was conveyed and demanded the Bank to withdraw the restricted mandate and give a fresh mandate.

The officers of Scale IV and V are also our members and have been with us in our long journey of struggles, sacrifices and achievements. Many Scale IV and V Officers also hold positions at the Circle Associations and in the Federation. Similar attempts made to divide Officers grade-wise were defeated with our unity and solidarity. The Federation, the AIBOC and the UFBU is determined to thwart any attempt to divide the officer's fraternity.

Meanwhile, the charter of demands by the Officers Associations and the Unions were finalized and

thsubmitted to the IBA on 05 June 2017. The road ahead looks very challenging with many hurdles to be overcome. The first hurdle of restricted mandate has to be crossed before starting negotiations. The meager % increases with umpteen reasons referring to the Prompt Corrective Action, alleged poor performance, high NPA etc. will also need to be overcome. We have enough reasons to remain United and strong to face the challenges before we reach a good settlement.


FEDERATION'S MEETING WITH THE MANAGEMENT

A meeting with the Management of the Bank was held nd

on the 22 May 2017 wherein the following issues pertaining to the officer's community were raised, apart from the issue of mandate.

1. Compensation for having worked on:th th

a. 25 , 26 March (holidays) and late sitting on th st30 & 31 March (extended hours under

instructions from RBI).

b. Compensation for having worked during the period of demonetization.

c. Compensation for working on Sundays and Holidays on a regular basis.

2. Anomalies in personal allowance and Fitment.

3. P e n d i n g m o n e t a r y i s s u e s l i k e l e a s e d accommodation rentals etc.

UNITED WE STAND

4. Withholding of stagnation increments etc., on refusal of promotion/opting out.

5. Issues in CDS (Career Development Scheme)

6. Issues related to Merger.

7. Shortage of Manpower, single officer branches, categorization of branches etc.

8. Further simplification of Transfer Policy.

9. Improvements in the area of Disciplinary Proceedings and a proper accountability policy.

th10. Anomalies in respect of 6 Bipartite retirees.

11. Issues pertaining to RMRO's, CRE's and Specialist Officers.

The above issues are only indicative and not exhaustive.

There has been a method in the Bank implementing many things that affect the interests of the staff despite the Federations of Officers and Award Staff taking them up. After 2006, there has not been any joint struggle. But the prevailing working conditions call for a united struggle. After taking up many of those issues and seeing that there has not been any positive developments, the Federations felt that there is a need for joining hands together. Thus a co-ordination meeting with our Staff Federation was held

ndon the 22 May, to review the industrial relations situation in the Bank. The Federations have conveyed their sentiments over these developments and wants immediate resumption of tripartite meeting on all the common issues with the Management. Some of the issues are as under:

a) Unilateralism in all the decisions.

b) Merger of Associate Banks and Bhartiya Mahila Bank–Merger related issues and financial package.

c) Compassionate Appointment Scheme as approved by Government of India and forwarded by IBA to member banks in August 2014.

d) Meaningful recruitment in all cadres i.e., Officers, Clerical Staff, Messenger Staff, Guards, Canteen boys, Record Keepers, Sports person etc.

e) Outsourcing of regular jobs.

f) Career Development System(CDS)

g) Cross Selling which has become Mis-Selling

h) Space for Union/Association in RBOs as staff matters are now handled at RBOs level also and not confined to H.O./A.O. only.

i) Review of Special Leaves, immunity and Duty Reliefs to Office-bearers in view of change in structure of Bank/Expansion/opening of new H.O./A.O./RBOs and shifting of all RBOs to the local areas.

j) Payment of overtime/compensation for late sitting and working on Holidays.

k) Enhancement of the ceiling of Welfare Fund of the Bank.

l) Superannuation Benefits

i) Pension Rules

ii) Commutation of interest on P.F.(Monthly Rests)

iii) Commutation of Pension at par with Govt.of India.

iv) Revision of Family Pension at par with Govt.of India.

v) Nomination of Federation Representative to the Board of Trustees.

thvi) Anomalies in the 6 bipartite retirees pension.

m) Appointments of Directors on Central Board.

n) Re-categorization of Branches.


CO-OPTION OF NEW OFFICE BEARERS BY THE EXECUTIVE COMMITTEE OF SBIOA(CC).

st thThe 1 meeting of the 27 Executive Committee of the Association met on 21/05/2017 at Chennai. Formation of Salem Module of the Association and co-option of thefollowing Office bearers was approved.

SALEM MODULE

NAME Designation Branch Co-opted as

Com. Balaji C Dy Manager RASMEC Salem Regional Secretary

Com.GunalanSugirtharaj K Dy. Manager RASMEC Salem Dy. Regional Secretary

COIMBATORE MODULE


Com. Mohanan B Dy. Manager AU Coimbatore Dy. Regional Secretary

Com. Murugesan M Dy. Manager Tennampalayam Dy. Regional Secretary

Com. Subramanian V Dy. Manager SSI Kurichi Zonal Secretary,

Coimbatore Zone 1

Com. Veerabahu R Dy. Manager SARB Coimbatore Zonal Secretary,

Coimbatore Zone 3 (NEW)

CHENNAI MODULE I


Com. Cheriyan V J Chief Manager Coromandal Branch Dy. Regional Secretary

Com. Suresh N Manager Chetput Zonal Secretary, Chennai Zone 2

CHENNAI MODULE II


Com. Murali J Chief Manager RBO, Tambaram Dy. Regional Secretary

TIRUCHIRAPALLI MODULE


Com M Manohari Dy Manager CCPC, Tiruchirapalli Zonal Secretary, TiruchiZone II

MADURAI MODULE


VeeraRagavan Branch Manager Valaiyankulam Zonal Secretary Theni Zone (New)


YOU SHOULD KNOW

PERSONS WITH DIFFERENT ABILITIES (PWDA) EXEMPTION FROM MANDATORY RURAL/SEMI-URBAN ASSIGNMENT

In terms of Government guide lines vide letter F.No.36035/3/2009 Estt. (Res.) dated10.06.2009, it was clarified that in the matter of benefit of Reservation, there is no distinction between persons acquiring disability before entering into service and the employees who acquires disability after entering into service. Both of them will be entitled to get the benefit of Reservation as person with disability as provided in DoPTOM no .36035/3/2004-Estt. (Res) dated 19.12.2005.

CDO/P&HRD-PM/10/2017–18, Tuesday, May 02,2017

PAYMENT OF PENSION TO CENTRAL GOVERNMENT PENSIONERS

CREDIT OF PENSION TO THE JOINT A/C OF THE PENSIONER WITH SPOUSE

Central Pension Accounting Office, New Delhi has advised vide their Circular No. CPAO/IT&Tech/Bank Performance/37 (Vol-II)/2016-17/14 dated 19.04.2017 that whenever retiring employees approaching for opening their pension accounts jointly with spouse the same may be opened with first name of pensioner only as the income tax is assessed on the income of the pensioner and not of the spouse.

NBG/GAD-PENSION/4/2017 – 18 Tuesday, May 02,2017.

SCRIBBLING ON NOTES CLEAN NOTE POLICY

Please refer to our e‐Circular no1071/2013-14NBG/AGNYBKG-RBI/12/2013-14 dated 24/ 12/ 2013, where in instructions have been issued to educate general public not to write/ scribble anything on Currency Notes as such scribbled notes are not re-issued and are treated as Soiled Bank Note. RBI has clarified that as per 6(3) (iii) of the RBI Note Refund Rules, 2009 that a claim in respect of a note which carries any extrinsic words or visible representation intended to convey or capable of conveying any message of a political or religion character or furthering the interest of any person or entity will be rejected.

NBG/BOD-AB/10/2017-18 Thursday, May 04, 2017.

SCHEME FOR EXTENDING MISCELLA-

NEOUS BENEFITS / FACILITIES TO EMPLOYEES / OFFICERS ON VOLUNTARY RETIREMENT: REVIEW

In the revised criteria, the conditions of missed promotions and sickness have been removed. In other words, any officer, who has attained 58 years of age and has also completed 30 years of service/ pensionable service (both the conditions need to be satisfied),will be eligible under the Scheme for Extending Miscellaneous Benefits and if he/she opts for voluntary retirement under the Scheme, he/she will get all benefits which are available for retirement on superannuation in the respective category.

CDO/P&HRD-PM/12/2017-18 Friday, May 05, 2017

NATIONAL AUTOMATED CLEARING HOUSE (NACH) MALPRACTICES IN MANDATE PROCESSSING

National Payments Corporation of India (NPCI) has advised vide their Circular no NPCI/2017‐18/NACH/ circular No 224 dated 02/05/2017 (copy annexed) that few corporates are using unapproved practices for registration of mandates and presentation of transactions. Some of the unapproved practices adopted by corporates are as under:

a) Virtual signature

b) Multiple transactions for a mandate issued with monthly frequency:

NPCI has further advised that the above practices are in contravention to the NACH Procedural guidelines and sponsor banks should advise their corporates, not to adopt such methods. All sponsor banks need to obtain an undertaking from the corporates confirming that they do not follow the practices listed above. NPCI has advised that any breach of guidelines will be viewed seriously.

NBG/BOD-AB/11/2017-18

Friday, May 05, 2017

Business Correspondent(BC) channel Visit to BC Outlets Link Branch Officials

The existing Periodicity of visits to BC outlets by link branch officials.

Location of CSPs Periodicity

Metro/Urban/ Semi-Urban/ Rural Minimum Monthly


However,Circles may increase the frequency of visits to particular CSPs of Individual BCs, if warranted. A provision has been made for Visiting officials to record their observations on centralized portal through link http://10.4.248.245/CSPVisits/Login.aspxusingtheirPFIndexNo.andHRMSPassword.

RABG/RB-AC-AC/8/2017-18Saturday, May 06, 2017

INDEPENDENT RISK ADVISORY(IRA)

Pursuant to RBI's Risk Mitigation Plan, RBI has desired bifurcation of Credit Process and Risk Assessment. Accordingly, it has been decided that Risk Department of the Bank would provide independent risk advisories during the Credit Sanction process. CPPC had, in its meeting dated 28.9.2015, approved revamp of Credit Approval Process including introduction of Independent Risk Advisory (IRA). Consequently, the Bank has since setup an Independent Risk Advisory (IRA) vertical under Risk Management Department at Corporate Centre.

At present, Independent Risk Advisory (IRA) Reports cover all loan proposals involving sanctions falling within the powers of CCCI/ MCCC and above. IBG proposals falling within the sanctioning of powers of IDCCI Iand above are also being covered.

The business verticals / branches to ensure meticulous compliance of the IRA process, more particularly:

(i) coverage of all eligible proposals involving sanctions/renewals of credit facilities by uploading in LLMS in appropriate format;

(ii) Prompt response to IRA observations.

CRO/RMD-CRMD/5/2017-18 Monday, May 08, 2017

NRI SERVICES:

Acquisition and Transfer of Immovable Property in India by NRIs/PIOs

Repatriation of Sale Proceeds of Immovable Property

In the event of sale of immovable property other than agricultural land/ farm house/ plantation property in India, Authorised Dealer may allow repatriation of sale proceeds outside India provided;

(i) The immovable property was acquired by the seller in accordance with the provisions of the Foreign Exchange Law in force at the time of acquisition by him or the provisions of FEMA Regulations;

(ii) The amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in Foreign Currency Non-Resident Account or (b) the foreign currency equivalent as on the date of payment, of the amount paid where such payment was made from the funds held in Non-Resident External Account for acquisition of the property.

(iii) In the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

(iv) Authorised Dealers may allow to NRIs/PIOs the facility of repatriation of funds out of balances held in their Non-resident Rupee(NRO) Accounts upto USD one million per calendar year, including sale proceeds of immovable property, subject to production of an undertaking by the remitter and a certificate by a Chartered Accountant in the formats prescribed by the Central

Board of Direct Taxes (CBDT) (enclosed to A.P. (DIR Series) Circular No.56 dated November26, 2002).

NBG/PBBU/NRI-GEN/7/2017 - 18

Tuesday, May 09, 2017

VERIFICATION OF CREDENTIALS OF CREDIT PROPOSAL WITH CENTRAL FRAUD REGISTRY(CFR)

Reserve Bank of India has implemented a new initiative of Central Fraud Registry (CFR) in the area of fraud monitoring. CFR is a centralized searchable registry containing information pertaining to frauds involving an amount of Rs. 1lakh and over reported by commercial banks and selected financial institutions, which can be viewed by banks/FIs by logging on to the CFR.

In this connection, Fraud Monitoring Cell (FMC) at Corporate Centre is arranging for registration of authorised/designated officials from Business Units /Circles to access the CFR. Business Units/Circles have to contact AGM (FMC) at Corporate Centre, Mumbai to expedite the same.

In terms of Loan Policy for the year 2017-18, while carrying out due-diligence,Central Fraud Registry of RBI is also to be examined while processing every loan proposal. It is therefore now required to mention the following certificate in this regard while putting up the proposal for sanction.


“We certify that Central Fraud Registry website has been viewed and there are no matching details related to the proposed credit proposal in any manner in the available data on the CFR website.”

The above clause has also been incorporated in Appraisal Memorandum Form DD and Loan Proposal Sanction Format (Form'S') in LLMS.

CCO/CPPD-ADV/21/2017 - 18

Wednesday 17th May 2017

TRADERS EASY LOAN (TEL), SME EASY LOAN AGAINST PROPERTY (SEL)

SBI ASSET BACKED LOAN (ABL): CLARIFICATIONS

It has now been decided by the appropriate authority that no new sanction / renewal is permitted under Traders Easy Loan (TEL) and SME Easy Loan Against Property (SEL) scheme after 30.06.2017.These schemes will cease to exist w.e.f. 01.07.2017. The existing borrowers. under TEL & SEL products will need to be shifted to ABL product or any other suitable product as per the customer's choice. The existing TEL/SEL accounts to continue only till next renewal due date. No out of turn renewal be allowed before 01.07.2017.

NBG/SMEBU-SME EASY L/11/2017 -18

Tuesday 30th May 2017

WITHDRAWAL OF SAFE CUSTODY FACILITY OF TERM DEPOSIT RECEIPTS

To simplify the process of issuance of TDR/STDRs, the Bank replaced the TDR / STDR Receipts on security forms to a system generated Advice, which can be generated multiple times, except for SBI Tax Savings Scheme 2006 and SBI Capgains plus Scheme, vide e-Circular S&P/RAR/34/183 dated 16/07/2009.

With the withdrawal of TDR/STDR Receipts on security forms, the process of issuing Receipts in case of SBI Cap gains Plus scheme has also been modified to a system generated Advice, vide e-Circular NBG/PBU/PREM-CAPGAIN/2/2016-17 dated 03/12/2016. The same process is also being developed in CBS for SBI Tax Saving Scheme 2006. As such, depositors are not required to surrender the term deposit/ special term deposit Advice, while providing it as a collateral / obtaining advance against it.

NBG/SP-MISC/2/2017 - 18 Friday 02nd June 2017

AGRI BUSINESS

MULTIPURPOSE AGRI GOLD LOAN SCHEME

Reserve Bank of India, vide their Notification No RBI/FIDD/2016-17/33 dated 7th July 2016 revised the eligible activities under farm credit to enhance the flow of credit to Agriculture. Accordingly, the eligible agri. activities have been included under “Multipurpose Agri Gold Loan Scheme” to make the product more comprehensive , competitive and to align RBI guidelines to cover all agriculture, allied activities and loans to farmers indebted to non-institutional lenders along with appraisal format for arriving the loan limit.

NBG/ABU/PDM-AGRI - G/9/2017 – 18Wednesday 07th June 2017

BRANCH MANAGER'S MONTHLY CERTIFICATE (BMMC)

REVISED FORMAT

The revised BMMC format comprising a total of 73 certificates to be submitted at Monthly/ Quarterly / Half Yearly periodicity as mentioned hereunder, will now have to be certified by the Branch Manager:

A. MONTHLY CERTIFICATES:

i. 36 certificates to be submitted by the Branch Manager on a monthly basis ii. Trade Finance Related Certificates : A separate section comprising 17Trade Finance related certificates have to be submitted by the Branch Managers of branches handling Trade Finance business along with the Monthly Certificates {item (i) above}.

B. QUARTERLY CERTIFICATES : 9 certificates are included in this group. These certificates are to be submitted as on 30th June, 30th September, 31st December, and 31st March along with the Monthly Certificates.

C. HALF YEARLY CERTIFICATES:11 certificates are included in this group. These certificates are to be submitted as on 30th September and 31st March along with Monthly and Quarterly Certificates.

4. The revised BMMC format will be used by Branch Managers of all branches in NBG/MCG/CAG/SAMG with effect from 1st July, 2017 i.e. the BMMC for the month of June 2017 will be submitted on the revised format.

NBG/SP-MISC/1/2017 –18 ,Friday 02nd June 2017


Bad Loans and the Great SBI Merger

Hemindra Hazari, ‘The Wire’, Published on May 31, 2017

The additional loss of Rs 5,792 crores in the quarter ended March 2017 surprised the capital market. Were the regulator, the parent bank and SBI's chairman aware of the state of asset quality in SBI's associate banks?

State Bank of India (SBI), India's largest bank, became even larger with the merger of its five commercial banking subsidiaries on April 1, 2017.

Leading up to the All Fool's Day merger, in mid-February 2017, finance minister ArunJaitley was confident the step would make the bank a global player; a month later, SBI chairman Arundhati Bhattacharya indicated that she expected to boost the bank's annual profit by Rs 3,000 crore in three years.

When SBI declared its results on May 19, analysts discovered, to their horror, that the path to global greatness lay through a minefield of subsidiaries' losses, estimated at Rs 5,792 crores in the quarter ended March 2017 and Rs 10,243 crores for the full year. Excluding non-banking SBI subsidiaries such as life and general insurance, which reported annual profits of nearly Rs 2,000 crores, the losses would have been higher. SBI's recommended dividend of Rs 2.5 per share for FY 2017, will entail an outflow of Rs 2,073 crores, far exceeding the consolidated net profit of Rs 241 crores and shareholders should not approve the dividend as it will be paid from the bank's reserves. Post the results, on May 22, SBI's stock price fell by 4.6% to Rs 294 and it is currently trading Rs 288, indicating investor apprehension with the huge and unexpected losses of its former banking subsidiaries.

What was particularly disturbing was the complete lack of transparency regarding disclosing these losses in the SBI result presentations, in which the bank only focused on the far better standalone results. The only clue in SBI's press release, apart from the mandatory disclosure of consolidated abridged annual results, was a single sentence, “Net Profit (after minority interest) of SBI Group

declined from Rs 12,225 crore in FY'16 to Rs 241 crore in FY'17…”

In contrast, analysts polled by Bloomberg had estimated full year consolidated profits of Rs 6,887 crores.

It was known that SBI's banking subsidiaries were having a difficult FY'17 in anticipation of the merger, and the consolidated results for the nine month period ended December 31, 2016, revealed losses of a minimum Rs 4,550 crores in the subsidiaries. However, the additional loss of Rs 5,792 crores in the quarter ended March was a shock to the capital market, as the bank's guidance had not indicated losses of this magnitude in the concluding quarter. There is no explanation in the public domain by SBI regarding what had happened to cause such a deterioration in the final quarter – had the economy experienced a tailspin or did the parent wake up to considerable 'ever-greening' of bad loans by its subsidiaries?

It is more than a little troubling that a bank with SBI's rich heritage has opted to remain publicly silent on such an issue.

The lack of transparency in publishing and discussing these losses by the SBI senior management is also compounded by potential issues of governance. After all, these banking subsidiaries had been under the direct managerial control of the parent since their takeover by SBI in 1959; they shared a common chairperson with the parent, their managing directors were on deputation from SBI, they had a common information technology platform, an integrated treasury, and most, if not all, of their major commercial and credit decisions were first vetted by SBI. The question that naturally arises: Was the banking regulator (RBI), the parent (SBI) and the chairperson (Bhattacharya) oblivious to the state of asset quality in these subsidiaries? Was the drumbeat of consolidation of creating a global bank merely a disguise to bail-out poorly-managed banks? And, finally, who is to be held accountable for these huge losses?

Golden Jubilee 1965-2015

Unfortunately, amid a government-induced euphoria over bank consolidation, neither the majority shareholder (the government), nor the banking regulator, nor the media, nor myriad banking analysts, are raising these issues of national and capital market interest.

Another curious development was the surprising overnight management shuffle in Punjab National Bank (PNB) and Bank of India, where their chief executive officers were sent to smaller banks ostensibly for poor performance. However, in the case of PNB, its Q4 results actually showed an improvement – SBI's Bhattacharya on the other hand was given a one year extension on October 1, 2016, to provide continuity for the merger of the bank's subsidiaries which resulted in huge losses.

Has the government misstepped in compelling SBI to merge all five of its banking subsidiaries in a single stroke? After all, India currently needs its largest bank to be at the vanguard of its economy, to stimulate stagnant economic growth. Instead, its attention is now largely directed inward, trying to resolve the asset quality of its former subsidiaries and addressing the far more complex issues of integrating human resources and realigning organisational structures and career paths of its mammoth staff. Before the government continues on its ill-advised strategy of more government bank mergers, it should pause and evaluate how SBI is digesting its former subsidiaries. Merging other

government banks will be far more complex than the SBI merger as the SBI group had common policies in human resources, information technology, accounting, basic banking systems, a similar culture and SBI bank subsidiaries were always subservient to the parent and its authority. The commonality within the SBI group cannot be assumed to be prevalent amongst the nationalised banks, especially when senior management's attention is engaged in fire-fighting huge non-performing assets in the industry.

To bridge the gaping hole the former subsidiaries have blown in SBI's consolidated balance sheet, the bank is finalising an equity issue of nearly Rs 10,000 crores. As many investment banks will eventually participate in the issue, it is unlikely that their research analysts will release critical reports on SBI or on the ills of bank consolidation. However, as the immediate experience of the SBI merger has shown, reality can be very different from the visions of grandeur eloquently articulated by proponents of consolidation.

HOMAGE

11

Have you displayed Association posters? Have you displayed circulars in a notice board?

Are you sharing our pamphlets and books with customers?“Compendium of Customer Information”?

Have you downloaded our Circle Association’s App.

Download our App “ SBIOACC” by going to “ playstore” for android phones and “ istore” in iphones.Log in with your PF number as ID

and use your date of birth in yyyymmdd as your password.

Com. Murugesan K, AM, Trichy Main branch passed away on 15.05.2017 at Trichy.Com. Kalai Poovizhi, AM, Vilamal branch passed away on 02.06.2017 at Ulundurpet.Com. Alli Pandian BM Tirukattupalli br passed away on 06.06.2017 at Thanjavur.

BEREAVEMENTCom. V Velmurugan, CM Devakottai branch lost his father on 02.06.2017 at Chennai.Com. S. Chellammal, DM ITSS Lho lost her father on 05.06.2017 at Chennai.Com. R. Jayanthi, Chief Manager, RACPC- Coimbatore lost her father-in-law on 15. 05. 2017 at Coimbatore. Com. M G Kanaka Sabapathy, Asst. Manager, Commercial Branch Coimbatore lost his mother on 09. 06. 2017 at Chennai.


SBIOA (CC) wishes the above comrades a very happy, healthy and peaceful retired life.

SBIOA (CC) wishes the above comrades a very happy, healthy and peaceful retired life.

Regular

1 Com. Alphonse Xavier Amaladhas Mgr LHO Chennai

2 Com. Ananthamoni K CM SMECC, CHENNAI

3 Com. Anjukam S CM RBO-II, CHENNAI

4 Com. Balachandran M Mgr RBO, CHINGLEPUT

5 Com. Balagurusamy K CM RBO-IV, Tiruchi

6 Com. Balakrishnan M AM Koothanalloor

7 Com. Balasubramanian M CM RBO-III, CHENNA

8 Com. Bhagavathy R CM ZO CHENNAI

9 Com. Chandran I CM RBO, TIRUNELVELI

10 Com. Chidambara Jeevanandam T.S Mgr CAC,MADURAI

11 Com.Dhayalan P CM LHO Chennai

12 Com.FinoSivagiri DM RBO-II, CBE

13 Com. Gnanasekaran S Mgr ATTUR BRANCH

14 Com. Gunasegaran N DM RASECPC Pondi.

15 Com. GURUNATHAN R Mgr RBO-I,MADURAI

16 Com. Jayaraman B Mgr RBO-II, CBE

17 Com. Jeevarathinam R Mgr CAC, Chennai

18 Com.JeevarathinamSelvaraj CM LeatherIB,Chennai

19 Com.Joseph P CM LHO Chennai

20 Com.KanagarajManickam Mgr RASECC,Tiruchy

21 Com.Kumaravelu P AGM ZO Coimbatore

22 Com.Lakshminarayanan K AGM Treasury Br. Chennai

23 Com.Maheswari Vasudevan CM LHO Chennai

24 Com.Manickam K DM RBO-III, CHENNAI

25 Com.Mariappane C AGM LHO Chennai

26 Com.Martin Senthilkumar M Mgr CAC,Gopalapuram

27 Com.Mohan Govindan Mgr Pudukottai

28 Com. Mohankumar V DM NRI Chennai

29 Com. Muthukumar G K DM ZO Chennai

30 Com. Nageswari G CM RS PURAM CBE

31 Com. Narasimhan R CM LHO Chennai

32 Com. Natarajan S DM CB, Chennai

33 Com. Nisar Ahmed DM CB, Chennai

34 Com. Pailo Kannanthara Mathew DM Royapettah

35 Com. Paramasivan G Mgr RS PURAM CBE

36 Com. Periasami A Mgr Gobichettipalayam

37 Com. Prabakaran R DM Idappadi

38 Com.Raj Kumar Thandavan DM West Tower Streeet

39 Com. Rajaiah S Mgr Pulankinar

40 Com.Rajan P Srinivasan DM ZO Coimbatore

41 Com. Rajaraman K Mgr LHO Chennai

42 Com. Rajasekaran S AGM LHO Chennai

43 Com. Rajasimman S DM Tindivanam

44 Com. Rajendran S AM RASECC, MADURAI

45 Com. Rajendra Prasad R AGM LHO Chennai

46 Com. Ramesh SV DM Gudalur

47 Com. Ravichandran M Mgr RACPC, Ayyapanthangal

48 Com. SampathRangasamy AM Menambakm Airport

49 Com. SivakumarIyer R CM RASME.SARC Vellore

50 Com. Sorimuthu M P CM RACPC, CHENNAI

51 Com. Sridhar Krishnasamy Mgr CAC Vellore

52 Com. Sridharan S Mgr LCPC Chennai

53 Com. Srivatsan R CM OB, Chennai

54 Com. Subramani M CM Scab Branch

55 Com. Subramanian P DM Sankari

56 Com. Sundara Baskar K DM VOC.Nagar

57 Com. Thirumurugan S DM ZO Coimbatore

58 Com. Vengatachalapathy M DM SHOLINGANALLUR

MAY - 2017

S/Shri Name BranchDesignation

MAY - 2017

S/Shri Name BranchDesignation

RETIREMENTS


CORRESPONDENCE WITH THE FEDERATION

REF: ORG/29/2017� � 30.05.2017

The General SecretaryAISBOFNo.65, St. Marks Road,Bangalore 560 001

Dear Comrade,

CUSTOMER EXCELLENCE EXPERIENCE PROGRAMME(CEEP):

QUEUE MANAGEMENT SYSTEM (QMS)

The bank has rolled down the QMS system sometime back. Many branches are now under the scan of the system. Contrary to the belief that the system is put in place to regulate or manage the Queue inside the branch premises, the system is being used to monitor the performance of the staff and create more pressure without addressing the systemic problems in the system.

The system uses an independent Software supplied by a different vendor [not TCS] and the bank pays Rs. 14,375/- monthly as rent for the machine euphemistically called installation and maintenance charge. Here, we bring to your notice the recent introduction of check drop box machines for which an amount of Rs. 10,830/- PM is paid. The recurring expenses being incurred are a drain on the profit of the bank. The machines very well would have been bought by the Bank avoiding hefty recurring expenses.

The QMS software is not linked to Bankslink and it operates on a parallel platform. Hence the actual time of transactions as per Bankslink are not reflected or taken into account by the QMS. The QMS has a time keeper which just ticks away the time as soon as a token ticket is called. Till the next call, the timer runs and the same is taken note of. The operator calls tokens continuously. The system takes the number of tickets called and the total time taken and by a simple mathematical calculation arrives at the servicing time.

The announcements are made only in English which could not be understood by most of the customers. Adding to the confusion, the QMS tickets are prefixed with English alphabets like NC, PC etc. which further makes it difficult for customers to

understand. Customers with the same number but with a different prefix come to the counter and the time taken to clear the misunderstanding gets added to the transaction time.

The bench mark for the Service time is now fixed by the bank as 3 minutes [10 minutes at the time of implementation]. In this mechanism, the issues are,

The QMS does not take into consideration the actual time taken by Bancslinc in completing the transaction.

Even if the calls made by the operators are not productive i.e. if an actual transaction does not take place, the same is counted as a productive transaction by the QMS.

In branches where bulk receipts such as TASMAC, CMP etc., are accepted across the counter, such transactions takes a longer time as it involves counting of bulk notes.

When a customer has more than 2 or 3 DD challans, even if the SWO enters 2 or 3 in the number of tickets served, the system uses this to average only the time of serving the ticket; but not for the total number of the tickets served.

There are other issues in connection with issuing of drafts that makes it not possible to complete one transaction in 3 minutes- the details provided in the screen are very difficult to be located and the draft printer starts printing only after 45 to 60 seconds.

It does not take into account the connectivity issue or delay due to any computer or mechanical failure.

Multiple transactions taking place on a single token are also not correctly accounted for. For example, a gold loan closure and disbursement of a new loan. Though these transactions take much time viz., collateral removal, closure of old gold loans, receipt of processing fee and disbursement of new loan, the system takes it as only one transaction whereas this type of transaction actually takes more than 3 transaction time.

Under these circumstances, frequent calls are received from controllers to improve the speed


further. The pressure created by controllers has given scope for branches to adopt some unethical practices. Sometimes, even controllers advise branches to issue dummy tokens – issue tokens in bulk from the QMS and go on calling without issuing to customers, which reduces the average customer waiting time. This is reminiscent of the short cuts adopted by branches in the Bachat Tara campaign – opening accounts one day and by closing them the next day open more new accounts.

These types of window dressing will in no way boost the image of our Bank nor does it satisfy or improve the customer service in any way. It creates a sense of fear among the staff for being watched by invisible

eyes. The system does not help the Bank to improve its business or image and satisfy the customers and the staff and eats into the profit of the Bank.

We therefore request you to take up appropriately to review the QMS and initiate remedial measures. We also request you to take up with the CC to review the agreement of paying monthly charges which is helping some company to mint money because the cost of the machine is very little as per our enquiry.

With Greetings,

Comradely yours,

(D. THOMAS FRANCO RAJENDRA DEV)

GENERAL SECRETARY

CORRESPONDENCE WITH THE MANAGEMENT

REF: ORG/30/2017� 30.05.2017

The Chief General ManagerState Bank of IndiaLocal Head Office, Chennai

Dear Sir,

SECURITY IN SINGLE OFFICER BRANCHES:

There are 307 Single Officer branches in the Circle. Many of them are headed by Lady officers and some of these branches are located in remote places. There is a feeling of fear and insecurity among the Officers working in these branches.

Officers working in these branches feel insecure and threatened. Under the present working conditions, most of the days the branches are forced to sit late . The Award staff leaves the branches in time and neither messengers nor any other staff remains in the office. The business environment has also become hostile as there has been huge resentment among the public about our revised service charges. There has been a lot of disinformation in the social media about it and believing it to be true customers often curse and abuse the staff in branches. We have also not taken effort to explain to the public the details.

Borrowers also have become aggressive whenever we approach them for recovery. The recent

happenings at our Muthupet branch is an example- when the Branch Manager of the Branch took some recovery efforts against some borrowers whose accounts fell under quick mortality category, he was threatened and not permitted to come out of the Branch.

Some of these branches also have onsite ATMs which are located a little away from the Branch premises- Elumalai, Valandur, Royakottah etc. Cash loading in these ATMs also is very risky.

We need to instill confidence and secure the staff working in these branches by providing adequate security . A day-guard may be posted in the remote Single Officer branches and in branches where ATMs are located outside the branch premises as a first step followed by posting a guard in all the Single Officer branches.

We also request you to bring an end to single officer braches as the maker-checker concept is compromised and the Branch Manager is not able to go out even for inspection.

With Greetings,

Yours faithfully,

(D. THOMAS FRANCO RAJENDRA DEV)

GENERAL SECRETARY


MEMBERS' MEET OF PONDICHERRY & CUDDALORE ZONESFELICITATION TO COM.N.GUNASEGARAN, DRS, CHENNAI ZONE II

The members meet of Pondicherry and Cuddalore Zones convened to felicitate the retiring Deputy Regional Secretary of Chennai Zone II Com. N.

t hGunasegaran was held on 25 May, 2017 at Pondicherry. Although the event was held on a regular working day, more than 150 members gathered at the venue for the thanks giving function.

Com.M Muralidharan, DRS of Chennai Zone II, welcomed the participants and paid glorious tributes to the retiring colleague. The meeting began with the customary prayer. The meeting was presided over by our Com. Senthi Kumar T, DGS He explained in details the efforts taken by the circle association to streamline the process of CDS, efforts to obtain compensation for working on holidays and late sitting, IMT process completion and other issues concerning the members. He requested the members to commu-nicate still effectively to improve the performance of the association. He termed Com. Gunasegaran, as a person who always stood to establish the right of the members. Members of our association presented Com. Gunasegaran with a commemorative.

Com.C.Balaji, Regional Secretary of the newly formed Salem Module exhorted the members to respond to the associations' call and wished Com. Gunasegaran, a healthy retired life. Shri.A.V.Joseph, Regional Secretary, Chennai Zone I in his speech called upon the members to respond to the call of the association so as to strengthen our movement to thwart the attempt of the government to privatize the public sector banks. He termed Com.Gunasegaran, as a warm and friendly office bearer who kept the members interest first.

Com.A.Ravichandran, Regional Secretary, Chennai

Zone II in his speech congratulated the members for the participation after a long and tiresome days' work as well as for undertaking long journey by the members hailing from long distance from Pondicherry. He hailed Com.Gunasegaran as a member centric office-bearer and praised his contribution during his tenure as well for keeping the AIBOC movement alive in the Pondicherry Union Territory.

Com.G.Selvaraj, Regional Secretary of Coimbatore Module called upon the members to stay united to thwart the attempts of the government to weaken the trade union movement. He showered encomiums on the retiring DRS Com.Gunasegaran. Com. Joseph Stalin, Regional Secretary of Madurai Module lamented the government and RBI for soft pedaling with the NPA borrowers and reeled out figures to support his case. He hailed Com.Gunasegaran, as one who aired the members opinion in all the Executive Committee meetings. Com.M.Asok, Regional Secretary of Tiruchirapalli Module praised the retiring office bearer as a calm and contended soul and wished him a happy retired life.

Com A Krishnan, president explained the attack on the Public Sector banks, the charter of demands for the XIth Bipartite and other industry and bank related issues. The salient points of the Charter of demands were explained by him. He termed Com.Gunasegarn as one who meticulously followed up the members grievances and strived hard to mitigate their sufferings. The Com. Gunasekaran and his spouse then exchanged garlands. They were also presented with shawls and a gift by the president on behalf of the circle association.

Com.Mounisamy, Zonal Secretary of Pondicherry Zone proposed vote of thanks.


The members meet of Erode Zone to felicitate the retired Deputy Regional Secretary of Coimbatore Module Com.Periasamy at the premises of Erode

rdBranch on 3 June, 2017. The day was a Saturday, end of the week, despite that more than 100 members assembled to pay their gratitude to the retired office bearer known for his calm and composed nature.

The meeting commenced with the customary song praising the language of Tamil and the country. Com.B,Mohanan, DRS welcomed the gathering and touched upon the services rendered by the retired office bearer during his tenure. The retiring official was then garlanded and he also garlanded his spouse on the stage and were also adorned with a shawl. Comrade.Murali, Assistant General Manager of Erode Branch complimented Com.Periasami for his untiring contribution to the members during his service.

Com.C.Balaji, Regional Secretary of the newly formed Salem Module recollected his association with Com.Periasamy and recollected his efforts for the welfare of members as well as to save them from the onslaught of the powers that be. Shri.A.V.Joseph, Regional Secretary, Chennai Zone I in his speech touched upon the efforts of the government to privatize the PSBs and called upon the membership to stay united to thwart their attempts. He praised Com.Periasamy as a silent warrior who carried the members concern always on his shoulders.

Com.A.Ravichandran, Regional Secretary, Chennai Zone II in his speech lauded the general secretary's effort to protect the interest of the members as well as to safeguard the public nature of the banks. He congratulated the Coimbatore module members for raising up to the call of the association and termed them as disciplined cadre. He praised the retired comrade as a well meaning person with an eye on the welfare of the members.

Com.M.Asok, Regional Secretary of Tiruchirapalli Module praised the retired office bearer as a man of wisdom and courage. He called upon the members to be vigilant against the evil designs of the government.

Com.Joseph Stalin, Regional Secretary of Madurai Module reeled out the galloping NPA figures since 2010 till the current year and put the governments' polices as responsible for the situation. He termed Com.Periasamy's contribution to the members welfare and the association as impressive to the least.

Com.G.Selvaraj, Regional Secretary of Coimbatore Module thanked the General Secretary for attending the members meet despite his pressing schedule across the country. He lauded the contribution of Com.Periasamy and praised him for his patience and perseverance while delivering his duties as an office bearer.

Our General Secretary Com.D.T.Franco, recollected his association with Com.Periasamy during his tenure as Manager at our Karur Branch. He termed him as a silent worker and welcomed him when he was inducted into the association as an office bearer as he was sure of his ability to contribute and was proved correct.

He touched upon various developments taking place in the country including the governments' effort to privatize the PSBs, the formation of 'Nithi Ayog', the frequent statements of the RBI executives, and the total inaction of the government in addressing the NPAs as matters of concern. He exhorted the members to stay alert as the issues concerned require all round support and awareness among the public. We need to carry on the battle relentlessly to thwart the attempt of the government and RBI combine.

Comrade Muralidhran, Zonal Secretary proposed vote of thanks.

MEMBERS' MEET OF ERODE ZONEFELICITATION TO COM.A.PERIASAMY, DRS, COIMBATORE


BANKING BRIEFS

u The government will dilute its stake in state-run banks to 52 per cent once the health of the lenders improve and the money will be used to inject capital in them, Finance Minister ArunJaitley said.

u SBI has expressed apprehens ions tha t demonetisation may continue to result in slowing down of the economy, and adversely affect its b u s i n e s s . T h e l o n g - t e r m i m p a c t o f demonetization on the Indian economy and the banking sector is uncertain, SBI said. The effects of India's recent demonetisation decision are uncertain, which may adversely affect the bank's business, results of operations and financial condition, the bank said in the Preliminary Placement Document to investors while flagging the 'risk factors'."The demonetisation has and may continue to result in a slowing down of the Indian economy, which may adversely affect the Bank's business," it said.

u State Bank of India said its qualified institutional placement offer for raising Rs. 15,000 crore was oversubscribed, with demand exceeding Rs. 27,000 crore and the issue getting priced at Rs. 287.25 per share.

The QIP will result in the issue of approximately 52.21 crore new shares (at the rate of Rs. 287.25 apiece), which will lead to a dilution of 6.05 per cent. Post the dilution, government's stake in the bank will be at 57.07 per cent. Post-issue, the capital to risk weighted assets of the bank will be at 13.64 per cent and CET 1 at 10.20 per cent.

u Lenders to Reliance Communications (RCom) placed the cash-strained telecom company under a strategic debt restructuring exercise (SDR). An SDR is a debt-recovery programme under which lenders convert debt to equity and sell the business to new owners.

u Even as the tension between the government and the Reserve Bank of India (RBI) has risen on the policy rates, the former governor Y V Reddy has said that a cut in rates may not necessarily mean more liquidity and growth.The (monetary policy) committee would have considered all factors but it

does not necessarily mean that their judgement may be right,” said former RBI governor Y V Reddy speaking to media at the side lines of an event in Delhi.

u SBI has attained the speed of 15,000 transactions per second as against the current utilisation of only 4,600/second, and is "future ready", the country's largest lender told its shareholders.

u This merger has catapulted SBI into one of the top 50 global banks (up from 55th position in 2016). It's balance sheet size is Rs 33 lakh crore and has 24,017 branches and 59,263 ATMs servicing over 42 crore customers.

u The recent farmers' agitations across various states may have their roots in RBI's aggressive stance to target lower retail inflation as this has led to prices, especially of food items, currently being lower than the three-year average. On the one hand while the government's agri sector reforms are showing results to smoothen out the supply side hurdles, slide in food prices have been much faster because of RBI's aggressive policies to contain retail inflation, a report by SBI noted.

u The NITI Aayog is chalking out a road map on the proposed consolidation of public sector banks (PSBs) at the behest of the finance ministry, exploring various possibilities and models to create only a few banking behemoth of global size, a senior government official said on Tuesday.

u Data released by Reserve Bank of India (RBI) showed loans to industry fell 1%, year-on-year (y-o-y) to Rs 24.94 lakh crore. In April 2016, credit disbursed was Rs 25.2 lakh crore, up 0.3%, y-o-y.The quantum of credit disbursed to industry has been falling consistently since August, last year, recovering only briefly in September to clock a 0.9% rise, as lower borrowing rates have lured corporate borrowers to the money markets.

u State Bank of India (SBI) proposes to introduce from July 1, 2017, a scheme for verifying the identity of candidates applying for all its recruitment processes through Aadhaar cards. Accordingly, while applying for appointment, it will be mandatory to furnish the 12-digit Aadhaar


number (or 28-digit Aadhaar enrolment ID in case the Aadhaar has been applied for, but not received).

u Dena Bank on Friday said the Reserve Bank of India (RBI) had initiated prompt corrective action (PCA) at the lender because of high net non-performing assets (NPA) and negative return on assets. The lender, which made the announcement in a statement to the stock exchange, is the third bank after IDBI Bank and UCO Bank where PCA

has been initiated under a revised framework.RBI has mandated a maximum net NPA ratio of 6% under the PCA framework introduced in April, and breaching it could result in the central bank asking lenders to sell assets, cut unsecured exposure and so on. Net NPA ratio at the end of the fourth quarter for the bank stood at 10.66% from 9.52% in the third quarter. Return on assets stood at -1.02% and -0.67% for financial year 2015-16 and 2016-17 respectively.

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WEDDING BELLS

Chi. BarathSastha, S/o. Sastha Selvaraj, CM Lho married Meera Prabavathy VRN on 29.05.2017 at Kovilpatti.

Chi. Prabu R, AM(S) LHO married Sow. Aarthi G on 29.05.2017 at Dindigul.

S o w. S A r t i , D / o . S m t . N a l l i n i Subramanian, DM, SARB, Chennai married J. Shivarajon 29.05.2017 at Chennai.

Sow. Nandhini C D/o. Chandru S, CM Vriddhachalam married Ganesh M on 01.06.2017 at Chennai.

Sow. Dr. T. Menaka, D/o. Com. P. Tharanitharan, Mgr, RACPC, Egmore married Chi. S. Krishna Kumar on 04.06.2017 at Chennai.

Sow. Dr.Anupriya G D/o. Gomathi-nayagam K, CM, Tenkasi married Chi.

SBIOA (CC) Wishes a very happy married life to the newly wedded couples.

Dr.Sivakumaran K on 04.06.2017 at Tirunelveli.

Chi. Arun Kumar Sundararaj, S/o. Sasikala Sundararaj, DM, SMECC Chennai married Sow. Aiswarya Parivallal on 04.06.2017 at Chennai.

Sow. Anbu M. Sukanya D/o. Anbu N. Manimaran, Mgr(S), LHO married Chi. Saravanan B on 04.06.2017 at Chennai.

Chi. Saravanan R S/o. Renganathan S, CM Hr AU Zone2 married Vasugi S on 05.06.2017 at Madurai.

Sow. S Kavya, D/o. Selvaraj N, DM AO Chennai II married Chi. Goutham B on 08.06.2017 at Chennai.

Sow. Lavanya V D/o. Vijay Anand M, BM Kovai married Balachander R on 11.06.2017 at Salem.

UNITY ENCLAVE

The appropriate authority has accorded the approval for extension of the moratorium of our SBIOACC Unity Enclave Housing Project from Jan 2017

to June 2017. Hence the repayment will start from July 2017.

Chi Selvan S, AM, RBO I, Chennai II married Sow. Sumathi R on 04.06.2017 at Nagercoil.

Chi. P. Gautham, S/o Com. P. Prabhu, AM, Vellakoil married Sow. B. Akkasayah on 14.05.2017 at Trichy.

Chi. R. Haribhaskar S/o Com. N. Rajagopal, DM, Rasmecc salem married Sow. S. Suganthi on 11. 06. 2017 at Coimbatore.

Chi. S.M. Prasanna S/o Com. S. Mathivanan, DM, Perundurai Branch married M. Harini on 04. 06. 2017 at Erode.

Sow. N. Subhashini D/o Com. R. Nachimuthu , MGR, Olagadam married Chi. P. Selvakumaran on 26.06.2017 at Erode.

My Dear Comrades,

Golden Jubilee 1965-2015

Comradely yours,

(D. Thomas Franco Rajendra Dev)General Secretary

20

The Feedback from members meeting is that most of the review meetings talk about Cross selling; unrealistic targets are fixed for hundreds of MDRTs to be achieved; Even for MUDRA Loans, SBI

Life policies are insisted; Policies renewed without the consent of the customers and deposits are converted into SBI Life Policies with promise of huge return which is not likely as per past performance and customers are cursing the staff. This is not at all good for the Bank.

The Bank should immediately put an end to this by stopping incentives in the form of achievement cards and foreign trips and credit earning from Cross Selling to the Branch Commission Account. This will put an end to mis-selling and save the image of the Bank.

The Career Development System has brought few changes like provision for erstwhile RMROs working in other segments, providing AAA to all in A+ rated branches etc. But the basic concept that only a few will perform is flawed. Cash incentive will corrupt the mind. Favouritism has to come in when you have to select a few among the best. When the whole world is moving towards people oriented approach instead of talent oriented approach and 360° feedback is being talked about we are still clinging on to the old practice of pick and choose. This leads to frustration. That's not good for the Bank. Both the Federations have given a

joint letter to change the CDS. We are preparing an alternative.

We are pained that the Bank has had a loss of 381 Crores due to merger and NPA provisions. The Bank has to revise plans and targets. As the Chairman has said we should use the potentials available in rural and semi urban areas, small and medium size loans rather than large corporate loans. Our customer base is huge and there is tremendous potential. Let us take care of the Farmers through JLGs, Women through SHGs and traders through MUDRA and other schemes and real entrepreneurs through Stand Up India instead of the Doctors.

The service charges have spoiled the image of the Bank. Proper preparation was not done to explain to people and some of the charges are pinching students and pensioners. We have been appealing to the Management.

AIBOC has planned for a People's Parliament for Development which is going to create a debate on what kind of Development is needed for the country and how we as bankers can play a role in Resource Based Development at grassroot level. Start collecting data on the District where you work. Look at District Credit Plan, Potential linked Credit Plan, District Industries Development Plan, district Statistics Hand book etc.

Plan for our General Body Meeting to be held at ndChennai on 22 July 2017. We want each one of you

to participate. Come with family. There will be exhibitions, seminars, debates showcasing of talents etc. It's our family get together.

Participate and make it a success.

“Corruption is worse than prostitution. The latter might endanger the morals of an individual, the former invariably endangers the morals of the

entire country. -Karl Kraus

Put an end to mis-selling

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