EMPANELMENT OF RETIRED OFFICERS AS INVESTIGATING OFFICERS ON CONTRACT BASIS

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1 STATE BANK OF INDIA OFFICERS' ASSOCIATION [Chennai Circle] State Bank Buildings, Telephone : # 84, Rajaji Salai, Post Box No.1992, Fax : Chennai sbioacc@yahoo.com sbioachennaicircle@gmail.com Website: Circular to All Unit Secretaries / Members: No. 56 /50 / th October, 2015 Dear Comrade, 14 TH GENERAL BODY MEETING OF SBIOA(K) A GRAND SUCCESS MASSIVE PARTICIPATION OF MEMBERS FROM ALL PARTS OF CIRCLE EMPANELMENT OF RETIRED OFFICERS AS INVESTIGATING OFFICERS ON CONTRACT BASIS We reproduce below the text of AISBOF Circular No.99 dated 25/08/2015 and Circular No.101 dated , the contents of which are self explicit. With Greetings, Comradely yours, (D. THOMAS FRANCO RAJENDRA DEV) GENERAL SECRETARY Text of AISBOF Circular No.99 dated TH GENERAL BODY MEETING OF SBIOA(K) A GRAND SUCCESS MASSIVE PARTICIPATION OF MEMBERS FROM ALL PARTS OF CIRCLE It was celebrations galore in Hubballi on the occasion of the 14 th General Body Meeting of the State Bank of India Officers Association(K) on 22 nd August The inaugural function commenced with inspiring Nada Geethe by the children of the SBOA(K) School, Hubballi along with a folk dance, enthralling the large gathering of Officers and the leaders from various parts of the country who had assembled in large numbers to participate in the meeting. The venue was aptly named after late Com.R.N.Godbole and Com.P.M.Mandanna. 2. Com.Nanda Kishore Malkhedkar, the Regional Secretary, Hubballi Module and the General Secretary elect for the next term in his welcome address gave a historical picture of Hubbali and its glorious contribution to the State of Karnataka. He thereafter extended a warm welcome to all the dignitaries which included the CMC member s Smt.Rajani Mishra, the Chief General Manager, Sarvashri. Y.Vijayakumar, General Manager, Network-II, R.K. Agarwal, DGM (B&O) SBI, Hubballi Module, Madhukar Anand, DGM (B&O), Bangalore Module, Network-I and the leaders of the Federation consisting of Com.D.Thomas Franco Rajendra Dev, the President of the Federation, Com.Y.Sudarshan, the General Secretary of the Federation Ramkumar Sabapathy, Jt. 1

2 General Secretary, AISBOF and General Secretary of SBIOA, Mumbai Circle and Comrades S.B.Patel, General Secretary, SBIOA, Ahmedabad Circle, G.Subramanyam, General Secretary, SBIOA, Hyderabad Circle, D.P.S.Chabbra, General Secretary, SBIOA, Chandigarh, Ravinder Gupta, General Secretary, SBIOA, Delhi Circle, V.Muralidharan, General Secretary, SBIOA, Kerala Circle, J.C.Modi, President, SBIOA, Ahmedabad Circle, Com.Pannikkar.M.Jacob, President, SBIOA, Kerala Circle, Yadav.V.K, President, SBIOA, Delhi Circle, Anil Nare, President, SBIOA, Mumbai Circle, Com.S.L.Kulkarni, Treasurer of the Federation, Com.K.N.N.Prasad, General Secretary, SBSU(K). He also welcomed the President of SEWA Com. Mahadevaswamy and other members of SEWA. Com.Nanda Kishore Malkhedkar later welcomed all the leaders of yesteryears Com.Shanthraju, Com.G.D.Nadaf, Com.G.Muthuswamy, Com.B.S.Ravindra and Com.Nagaraj Shastry and Com.M.G.Venkatesh Murthy etc., and other pensioner comrades who had come in large numbers. 3. On behalf of the Circle Association, Com.D.Shyam Sundar Rao, the President of the Circle Association who presided over the meeting and Com.Shankar.N.Naik, the General Secretary along with the other comrades of SBIOA(K) welcomed all the dignitaries. 4. Smt.Rajani Mishra, the Chief General Manager after lighting the lamp along with other dignitaries on the dais, in her inaugural address complimented the Officers of the Circle for such a large participation in the meeting and complimented the Circle Association for the excellent conduct of the meeting. She thereafter detailed the performance of the Circle and its excellence in various parameters due to the active support and co-operation of the officers working in the bank. She also desired that the circle should move further and there is a need for the officers to extend their cooperation. She assured the officers that any decision taken in good faith would be protected and that at the same time the officers should ensure that all the systems and procedures are meticulously followed so that, nobody would be placed in a difficult position. She referred to the cordial relationship that has been prevailing between the Circle Management and the Circle Association as well as other organizations and wished that the same trend would continue with the new team of office-bearers as well. She extended a warm felicitation to Com.D.Shamsunder & Com.Shankar.N.Naik, who will be laying down their office and retiring from the bank and she wished the new team members, under the leadership of Com.S.K.Srinivas and Com.Nandakishore.N. Malkhedkar who will resume the office for the triennial period , all the very best in all their endeavor without compromising the Bank s interest and goal. 5. Shri.Vijaya Kumar, the General Manager Network- II extended his warm felicitation to the function. He also referred to the excellent qualities of the officers working in the bank and was confident that the circle would be able reach higher levels as desired the Chief General Manager. 2

3 6. Com.Shankar.N.Naik, the General Secretary of the Circle Association in his introductory speech, covered the historical background of the Circle and how it has succeeded in the formation of the separate circle and the growth of the circle, which has witnessed over the last several years. He also covered extensively the contribution of the leaders of the SBIOA(K) in building a strong and vibrant trade union movement referring to the contributions of Com.R.N.Godbole, Com.Shantha Raju, Com.G.D.Nadaf, former General Secretaries of the Federation from Karnataka Circle and also the senior stalwarts from the Circle Association such as Com.P.M.Mandanna, the founder General Secretary of the Association, Com.G.Muthuswamy, Com.B.S.Ravindra, the earlier General Secretaries who were also present in the meeting. He also referred to the growth of the circle ever since the formation of the Circle and the contribution it has made for the overall development of the economy of the State. 7. He also referred to the various activities that have been conducted by the Circle association and the co-operation it has been extending to the Circle Management. He also opined that there is a need to adhere to the systems and procedures in the bank. He explained the problems of the officers due to the shortage of staff and its impact on the performance in the branches and appealed to the Management for recruitment of additional staff in the bank. 8. Com.D.Thomas Franco Rajender Dev, the President of the Federation in his address said that a series of attacks are taking place on the banking sector with the sole objective of handing over the same to the private sector. He was highly critical of the efforts of the Government in choosing the executives from the private sector and posting them to the Public Sector Banks without understanding its implication. He also referred to the recent remarks of the chief economic advisor to the Government who has held that the Nationalization of the Banks was a historical blunder by the Government. The Public Sector Banks were responsible for implementing the various schemes of the Government including the recent success of the opening of the Jan Dhan Accounts etc. He also mentioned that the attempt of the Government and the RBI to sanction license to the Payment Banks as well as the small banks would be a threat to the banking sector. We have witnessed as more than 40 private banks have collapsed over the last few decades thus putting the depositors and the shareholders into jeopardy. 9. He also referred to the recommendations of the Narasimham Committee and the recent report of Dr.P.J.Nayak Committee which suggests the handing over the banks to Bureau of Banks Board and also creation of a holding company for the transfer of all the shares in the Banks Investment Committee etc. He also referred to the performance linked incentives which discriminates the junior officers and payment to the scale V and above. While making the stand very clear that we are not opposing the higher grade officers getting the incentives out of the profits of the bank but it has 3

4 to be extended to all the employees and officers in the bank irrespective of the grades as these officers are also responsible for the growth of the Bank. 10. Com.Y.Sudarshan, the General Secretary of the Federation when rose for his address there was thundering applause by the audience and his presence was electrifying in the auditorium. He complimented the Circle Association for an excellent conduct of the meeting where a large number of officers had gathered from all parts of the Circle. He recollected as to how the Circle Association launched struggles to ensure the formation of the Circle and its birth even before the formation of the Circle and that the Circle Association is 3 years older than the Circle, amidst loud applause from the members present in the auditorium. 11. He declared that, it is celebration moment for all of us as the Government has issued necessary notification for the declaration of 2 nd and 4 th Saturday as the holidays as a part of the 10 th Bipartite Agreement providing for holidays of 2 Saturdays in the current settlement. He stated that the 12 th September of this year is a historic moment for all of us when the concept would be launched and that it is a beginning to move towards the 5 days week in the banking industry. He claimed that the stand of the Federation has been vindicated and the stand of the Federation and its affiliates in launching agitation proved right and the employees and officers all over the country are now entitled to holiday on 2 nd and 4 th Saturdays in the month. Let us celebrate this occasion throughout the country when the 12 th September arrives declared Com.Y.Sudarshan. 12. He extensively covered the various developments in the process of achieving the 10 th Bipartite Settlement and in arriving at an amicable settlement for 15% of the cost through the support of the Chairman of the Bank and her role in clinching the issue of 2 nd and 4 th Saturdays holidays in the recent negotiations. He provided a detail statistics to explain as to how the current negotiations is one of the best settlements both in terms of the take home salary to the officers and also the issues of the stagnation increment to the senior officers. The special allowance along with the dearness allowance, ensured a good rise for all the officers with particular reference to the senior officers. As regards the special package to the SBI Officers and employee he assured that effort would be made to work out ways and means to achieve the traditional SBI package that was available to our employees on the earlier occasions. Referring to the issues of superannuation has assured the gathering which included a large number of pensioners that their issue of improvement in pension, medical benefit etc., are being looked into and the UFBU has sought for a meeting with the IBA to pursue the issues further in due course. 13. He explained at length the various developments that are taking place in the bank in the name of various committees and serious shortage of officers that we have been facing. He also explained the positive approach of the Management and the cooperation of the Management in sorting out some of the issues that are pending before the Management. 4

5 14. There was an emotional fare well to both the President and the General Secretary of the Com.D.Shamsuder Rao and Com.Shankar.N.Naik, Association who were laying down the Office on their superannuation as per the rich tradition that the Federation has been following in handing over the leadership to the serving members. Com.Shankar.N.Naik, was honored along with his wife Smt.Mohini Naik, on the occasion by the dignitaries on the dais. Com.D.Shyam Sundar Rao, the outgoing President was also honored by the dignitaries on the dais as token of love and affection of the entire membership of the Circle Association as well as the leaders of the Circle Association for their valuable contribution to the Circle Association for over 2 decades in consolidation of the Circle Association as well as the Federation. 15. Com.D.Shyam Sundar Rao, in his presidential address acknowledged the efforts of the members in building a strong association and a huge number of volunteers who had worked day and night to make the 14 th General Council a grand success. 16. Com.N.M.Girishankar, the Regional Secretary of Bangalore Module extended a vote of thanks. 17. Comrades, the inaugural function of the 14 th General Body concluded in a grand manner once again demonstrating the excellent organizing abilities of our membership in the circle. 18. On 23 rd the business session was held in which lively discussions were held. Members came up with many queries, suggestions, important resolutions were passed. 19. At the end of the day the new team of office bearers headed by Com.S.K.Srinivas as the President and Com.Nandakishore.M.Malkhedkar were installed amidst thunderous jubilation. 20. The Federation wishes the New team under Com.Srinivas.S.K and Nandakishore Malkhedkar all the very best and hope that they will carry the flag of the SBIOA(K) and the Federation to greater heights of glory. The Federation also wishes Com.D.Shamsunder Rao and Com.Shankar.N.Naik for the good work they had done during their tenure. Wishing Com.Shankar.N.Naik, who would be retiring on superannuation a very happy retired life. Com.D.Shamsunder would be retiring on December, Good Luck to all. MARCH ON COMRADES MARCH ON LONG LIVE OUR UNITY LONG LIVE FEDERATION, LONG LIVE ASSOCIATION With warm greetings, Y.SUDARSHAN GENERAL SECRETARY 5

6 Text of AISBOF Circular No.101 dated EMPANELMENT OF RETIRED OFFICERS AS INVESTIGATING OFFICERS ON CONTRACT BASIS We have sent a communication to the Corporate Office on the captioned subject the contents of which are self-explicit. A copy of our communication is enclosed for your information. 2. We note to keep you advised of further developments in due course With greetings, Y.SUDARSHAN GENERAL SECRETAY ALL INDIA STATE BANK OFFICERS FEDERATION (Registered under the Trade Unions Act 1926, Registration No: 727/MDS) State Bank Buildings, St. Mark s Road, Bangalore No.6466/48/15 DATE: To, The Deputy Managing Director & CDO, State Bank of India, Corporate Centre, Madame Cama Road, MUMBAI Dear Sir, 6 EMPANELMENT OF RETIRED OFFICERS AS INVESTIGATING OFFICERS ON CONTRACT BASIS We understand that the Bank is recruiting retired senior officers as Investigating Officers for examining staff accountability aspects in respect of NPA accounts from the stage of sanction till post sanction and follow-up. 2. The work entrusted to them is a sensitive area and may quite likely create apprehension in the minds of officers. The Bank already has its own system of internal investigation which is time tested. Outsourcing of Investigation will lead to unnecessary doubts and put officers on the back foot while taking business decisions and may lead to over caution in the pre and post sanction stages of a loan. There is always an element of a Fair Banking Risk, in the process of sanction of advances. We have always advocated that all the systems and procedures and the processes have to be followed meticulously during the various stages of sanction and conduct of advances. But many a time pressures of achieving targets on account of Government schemes, extremely high budgets fixed by the controllers and changing priorities from multiple bosses compel the officers to go for disbursement in a very short span of time leading to inadvertent lapses. Many a time such genuine lapses are held against the officers by the Investigating officer at a later date. An outside Investigating officer, that too on a contract basis, will not be able to understand the situation/compulsions at the prevailing point of time and may overdo his job in trying to pin down the officers concerned.

7 3. Apart from the above various questions arise in respect of the Accountability of such outside Investigating Officers. As they are not permanent officers on employment, their accountability in case of an erratic report or Bias is zero. Even if the investigating officer indulges in Bias of any sort, the maximum the bank can do is to terminate their contract and nothing more. Such incidents can also go unnoticed, and damage the interests of a fair Investigation. 4. As the Investigation report forms the basis of the entire disciplinary proceedings/enquiry etc., any faulty report will ruin the career of an officer, apart from the mental agony he undergoes. 5. Also since changes in the Banks instructions, systems and procedures, work flow etc., are taking place at a fast pace, the retired officers may not have knowledge of the changes of rules and regulations. Moreover they do not have access to Banks recent circulars (As Banks internal instructions are not supposed to be given to outsiders). They also cannot be given the Internal Documents of the Bank as it may be violation of the code of secrecy. 6. It is also possible that the Investigating Officer, during his service, may have had prejudices, bias, for or against an officer, which he may try to settle scores. 7. Apart from the above business perceptions are different between serving officers, working within the Bank and retired officers who are outside. One may not be able to appreciate the constraints and pressures under which a particular loan was sanctioned. 8. Further investigation of staff accountability is purely an internal administrative matter which forms the core banking activity. As per the various understandings at the industry as well as the bank level core activity of the Bank is not to be outsourced. 9. This also cuts down the career progression prospects of our senior officers. Else the existing officers could be used for the same. 10. Under circumstances, we strongly feel that empanelment of the retired officers as investigating officers will not augur well for the Bank and on the contrary may put the officers on back foot in trying to be over cautious in sanction of advances. If an officer very meticulously follows all the procedures and processes in order to save his skin, then that will considerably slow down the growth of advances and be detrimental on account of a fear psychosis. 11. We therefore request you to have a relook and utilize the internal serving officers, who are accountable, for the Investigation work, a system which is time tested and is working well. Thanking you, Yours faithfully, (Y.SUDARSHAN) GENERAL SECRETARY 7

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