Friday, December 12, 2014

Why Bank Union Suggest Merger of Failed Private Bank With PS Bank?

My comments on news of merger of private bank with a PSU bank advocated by our own leaders and submitted herein below at the bottom

 In the past , corrupt central government led by Corrupt Congress Party  merged various failed banks with public sector banks and it is they who contributed in converting even strong PS banks into weak banks. Trade union should have protested such unhygienic merger which adversely affects the future of PS banks, which dilutes cohesiveness , which  affects working  culture of both banks (existing and merging bank) and which ultimately which affects profitability of merged entity.

Why should PS banks be forced to shoulder a dead body, a failed bank and volume of bad assets ?

And if such merger is justified from staff point of view, then why Government of India talk of profit and why should they deny respectable wage hike to bank staff on the ground of weakness of bank to sustain load of wage hike?

I think bank unions who are pleading merger of a failed bank with any of PS bank should ponder over above points , explain to its members why such merger is good for the health of existing bank staff of PS banks?

When it is a question of social welfare service and when it is a matter of Nation building and growth of the country  , it is only PS banks which comes to rescue of the government . But when it is a talk of wage hike, PS banks are compared with private banks and bank staff are denied wage hike on the ground of less profit and unsustainable bad debts.

I am unable to understand why Bank unions are advocating merger of a private failed bank with a stronger PS bank? I am unable to understand why leaders are taking such suicidal step which will affect prospect of wage hike.

Let us investigate cause of such misadventure.
Is there any deep conspiracy ?

Are leaders playing a foul game to cheat bank staff to service their self interest and to serve their own future prospects?

Are they real well-wisher of bank staff and that of failed bank or they are saving bad borrowers of failed bank or bad promoters of failed bank or corrupt politicians who looted the failed bank? 

Staff of PS banks may be used as Oxygen for weak person ,weaker class, for loaning weak sectors , for loan weak corporates and for adopting failed and weak banks. But when bank staff need oxygen, Government surrender and ask us to compare with private banks. How far it is justified ? How long bank staff will silently bear with all such injustices ?

Is there any political reason behind such suggestion given by our leaders for merger of a failed private bank with PS bank?
 and so on...

We need to know what is right and what is wrong.
---Danendra
 

 
 ALL  INDIA  BANK  OFFICERS'  ASSOCIATION
Circular Letter No.22/VI/2014
December 12, 2014
 
 
To:
ALL UNITS / STATE COMMITTEES
 
 
Dear comrades,
 
ð     ING VYSYA – PROPOSED MERGER
ð     EXTEND ALL OUT SUPPORT TO THE ENTIRE WORKFORCE OF “INGVYSYA”
 
The origin  of the erstwhile “Vysya Bank” was pretty humble.  It was in the year 1930, that a team of visionaries came together to establish the erstwhile “Vysya Bank Ltd.,” that would extend a helping hand to those who were not privileged enough to enjoy and avail Banking services.
 
During the journey upto 2002, the Bank had carved out a position of remarkable performance in all Banking activities, thus claiming the No.1 position amongst the private Sector Banks in the year 1985.
 
The erstwhile “Vysya Bank Ltd.,” a premier Private Sector Bank Ltd., and a global financial powerhouse of Dutch origin “ING came together to establish the present entity in the year 2002.
 
The present Bank has got strong presence in Southern part of our country, catering to the need of SME Banking business.  “ING” the Dutch origin, Banking conglomerate was attempting to sell the global assets, in the background of global meltdown.  Last year, the Insurance business was sold to EXIDE and Mutual Fund business to Birla SunLife Mutual Fund.
 
If the health of “Vysya” is really getting deteriorated due to various internal impediments then the controller of the Banking system should have signalled one of the Public Sector Bank having the head quarters at Western India to roll out the plan to acquire one of the oldest Private Sector Bank.
 
If 100 years +  old Private Sector Bank “Nedungadi Bank” could be taken over by “PNB” in 2003, new generation “GTB” could be merged with “OBC” in 2004 and “United Western Bank” with “IDBI” in 2006.  Why not the “ING Vysya” be merged with one of the Public Sector Bank.
 
AIBOA has always demanded that the “Financial system of our Nation” should be of Government owned Public Sector character and in this background Private Sector Banks are to be necessarily merged with Public Sector Banks.  Our organisation strongly believes that Public Sector Banks are Nation building instruments and hence it has to be preserved, protected and promoted to arrest the private sector entities not to abuse and misuse the public savings.
 
The proposed merger has to have many obstacles cleared [ie] regulatory provisions etc., from the Government, market, regulator and also of controller of Banking system in our country.  It is learnt that the AGM of the Bank will be held on 7th January 2015.
 
Our affiliate viz., “All India ING Vysya Bank Officers’ Association” had their central committee meeting at Bangalore on 7th and 8th December 2014, wherein it has been decided to unleash programmes of actions to secure the jobs of all sections of the workforce in its entirety.  They have also met the management along with “All India ING Vysya Bank Employees’ Union [R]” and submitted their view points on the proposed merger.
 
We call upon all our affiliates and State Committees to extend whole hearted support to the “programmes of actions” unleashed by “All India ING Vysya Bank Officers’ Association” along with “All India ING Vysya Bank Employees’ Union[R]” in securing their basic demands of the entire workforce [ie;] IBA pay scales, C2C employees and contracted workforce in toto.
 
AIBOA shall take up with appropriate authorities in due course of time, to impress upon the merger of ING Vysya with a Western based Public Sector Bank.
 
Yours comradely,
/S.NAGARAJAN/
GENERAL

No comments:

Post a Comment