Letter to H N Sinor, IBA Chief

C N Venugopalan
Ex- Manager, Union Bank of India
Vice President, UBI Retiree Officers’ Association (Kerala)
“ Nandanam”
Kesari Junction
North Paravoor
Kerala – 683 513
Phone No. 0484 2447994 Mobile: 9447747994


Shri. H N Sinor, 10th May, 2007
Chief Executive,
Indian Banks Association,
Cuffe parade,
Mumbai


Dear Sir,


You can rate my work



Preface


Although I wrote to you two or three letters, I did not tell give you a proper introduction by telling my back ground. I am sure you will like to know something about me and hence giving you a self introduction and a brief resume of the work I did for the banking industry. The initial rating one would assign to me that of a rebel who ventures out to fight anything. You are the apt person, in my opinion, to screen the work I did and to give me a proper rating. When I unveil the work adequately, you will naturally hail every action. The action has been fuelled by Him and hence the applause has to be the loudest. There were several who considered the Father of the nation as “a rebel” one time. This is the only reply I have to give, if some one in the banking circles makes any adverse comment about me.

Background

The fabric of Indian banking got soiled for many reasons. Although a part of the democratic institution, the Indian Banking system had carved out an empire of its own with little or no applicability to the substantive law. Though the functionaries derive their authority and powers out of the general law and other rules, they seldom revered such general law. Power cataract rendered lack of vision and wisdom while doing things. They did things not in the way the law abiding citizens should. They acted in the most treacherous and atrocious way in the most sensitive areas too. To cite a small incident, one Senior Manager happened to be an eyesore to the CMD. He was served a fabricated charge sheet containing whimsical allegations and later suspended. Dismissal followed the suspension. Afterwards, the officer was reinstated after keeping him out of the Bank for 835 days. The Bank was pleased to sanction him extraordinary leave on loss of pay for the entire period. As per the rules, the CMD had powers to sanction extraordinary leave for a maximum period of 360 days and the Board had similar powers for a maximum of 720 days. The only intention was to deprive him of the subsistence allowance payable during the period.


Responsibility of cleansing the industry

I joined Union Bank in October, 1971 with a basic degree in Commerce, served the institution loyally for nearly thirty years and took exit through VRS in April, 2001 from Panampilly Nagar (Kochi) branch at the age of 50. There are four more years still for a normal superannuation. I came out of the Bank neither lured by the compensation package nor on account of aversion to work. Peculiar circumstances prevailed over me to quit employment. I had the fortune to work at Mumbai for some two years when I came to know much about you through some Parsi friends like Mr. Minoo Contractor. Minoo has told me that you belong to the same category of eminent bankers like Mr. F K F Nariman and Mr. M N Goiporia who were well accepted personalities in banking circles.


It was in April, 2000 when Mr. Leeladhar “the great” was the custodian of the Bank that I took the exit. The noble institution had a scheme of farewell to retiring employees for which branches/offices were empowered to incur expenditure of Rs.200/- for a arranging a small function. The Bank’s greatness got belittled on account of the greatness of the CMD. Instructions went from Central Office to controlling offices that Bank should not incur the farewell expenditure of Rs.200/- in respect of the VRS retirees. All the people who relentlessly worked for the institution for thirty to thirty five years were sent out most unceremoniously. The only crime they did was that they co-operated with the Bank and undertook forbearance of their future service and salary when it wanted to trim down its staff strength. The “Great” man’s noble work got due appreciation in the form of elevation to the post of the Deputy Governor of RBI.

While settling the Gratuity, a statutory due payable to the employees, the Bank did not calculate it on all eligible components and underpayment arose in the case of the VRS retirees. In spite of bringing the matter to the notice of the concerned people including GM (P) and Mr. Leeladhar CMD, payment was not made. I had to invoke the intervention of the ALC (C), Kochi who identified short payment and ordered to settle it. I got about Rs.16, 000/- and in the process the Bank distributed about Rs.6.00 Crores to all its retirees. What matters was not the amount of money involved. It was a question of preserving the integrity and sanctity of the institution. It was not the first time that an employee was retiring from the Bank so that a mistake of the kind can occur. The Bank should have in all fairness settled it in full at least on being pointed out. The people who settled the gratuity undermined the prestige of the institution by not paying correctly the statutory dues of an employee who toiled relentlessly to make the institution what it was. The payment of the money at the behest of the ALC was conclusive proof of the Bank having defalcated the money of its own workers. If an employee occasioned a loss or manipulation of a small sum, the bank will award capital punishment of termination to him/her. What should be the punishment that attracts when such a Bank is contemplating a defalcation of the money of its own people who worked for it? What a pity to the noble institution, the foundation stone of which was laid by none other than the Father of the Nation!

The bank adopted a hostile attitude to all those who subscribed to the VRS and started denying them the various privileges like Leave, LFC etc. The application for 15 days Privilege Leave I submitted with due notice was declined citing exigency of service as the reason at a time when the Bank had identified surplus man power and it came forward with a scheme of VRS. The credit beyond maximum accumulation to PL to the extent of leave declined was not given to me. I was given encashment of PL for 240 days only as against the 250 days payable in respect of leave declined. Leave Rules of the Bank provided for accumulation beyond the ceiling when any leave is declined to the extent of the leave so declined. This was not given and the Bank paid me encashment of Privilege leave for 240 days in place of 250 days actually payable.

I was sent out of the Bank on 20th April, 2001 calculating the emoluments for the actual number of days worked whereas I was a regular officer employee on the rolls entitled to the wages for the full month of April, 2001.

The Service Regulations, prescribe a notice of three months on either side for relieving an employee going out. If I was to quit any time after subscribing to VRS, the Bank would definitely have recovered from me pay in lieu of notice for the deficit. This is more evident from the fact that the PL applied for with due notice too was declined. On my application placed on 1st December, 2000, the Bank intimated me only on 30th March, 2001 that I will be relieved on 20th April, 2001. There was a notice period of 20 days only. Altogether, on these three items, wages for 90 days was not settled so far. The recalcitrant attitude of the Bank forced me to serve a notice on the Bank that in the event the amounts are not paid within a time frame, the amount already paid to me under VRS would be forfeited and the Voluntary Retirement shall become null and void. Since the Bank did not pay heed to this also, I have filed a petition in the High Court of Kerala for payment of the balance dues. As all the amounts were payable within 20 days of relief from the bank, if the Court is pleased to order payment of the balance, it will have to be deemed that I have been in the services of the bank prior to 20 days of making such payment and the Bank will have to pay me the salary and allowances until such time.

For the past several decades, the Bank has been doing things as per its fancies and not as per laid down rules and regulations. In the Service Regulations in 1979, it was very vividly written in it that “nothing in these Regulations shall affect the seniority among themselves of officers as existing on the appointed date”. In other words, as in the Central Government, the seniority of existing officers was to continue as it was and any promotions was to be made applicable only to those who are promoted /recruited subsequently. No one paid heed to the basic premises and conducted promotions in the heinous way with the result that while I reached MMGS II, a number of officers who were junior to me grew up to TMGS - VI by the year 2000. While I came back to the state after an inter state service in Mumbai for two years, I was placed as Accountant at Panampilly Nagar in spite of the fact that I was previously holding the position of Branch Head in seven branches previously with an excellent performance record. The best option seemed to me to quit rather than working below less competent people and I embraced the Voluntary Retirement. Banks suspend and terminate employees who do things unbecoming. In my case, I suspended the Bank for the misdeeds and follies it did and I will make efforts to infuse myself again into it. It has failed to effectively terminate my services by not paying me the promised compensation for the forbearance I undertook while surrendering my future services of about 10 years. To the Bank that writes off several crores year after year, it will not at all feel the pinch of about Rs.18.00 to Rs.20.00 lakhs. It will be a small punishment and perhaps an eye opener.

I have come across many Executives who squander bank’s money for their personal ends and who indulge in undesirable practices. There have been Executives who carry out repairs of personal cars and shift the bills to the Bank. I know an Executive who have transported cow dung from Coimbatore to Trissur for farm yards at the expense of valued constituents for the simple reason that he got it free of cost along with free transportation. Kick back from hotel expenses is quite a common thing. I know Executives who arrange ‘Darshan’ at temples like Sabarimala at the cost of the Bank. They conduct a business meeting at the centre near the temple so as to shift the air fare to the Bank. The hotel expenses, hall rent, the salary and traveling expenses of the nearby Branch Managers who are called for the meeting, etc. prove to be a sheer waste. The customers also suffer because the Branch Manager will not be available for one or two days. The blessing of the God will naturally be showered on the institution and not the Executive since the forbearance is on the part of the Bank itself. Similar wastage occurs when marriage functions of the kith and kin of Executives takes places at far off centres. The meetings of the Board of directors are held at different places, and tourist centres to facilitate a holiday, keeping the Board Room at the head quarters idle. The story of one GM is entirely different. He used to come to Kochi every now and then, lured by the hospitality of a major constituent for whom one branch itself was opened and maintained. When the constituent got fed up and annoyed by the very frequent visits, he failed to oblige any further. The GM ultimately found fault with the Branch Manager and commented that he did not know how to handle things.

It appears that the essential qualities for being elevated to higher positions in banks are the ability to hoodwink all the people around and to loot the organization. The position of the Bank while denying Pension to a section of people is that of a helpless mother who cannot caress her children or look after her parents because she gets a new groom every three to six years who enjoys her riches in every possible way and leaves afterwards.


Shri. M V Nair, the present CMD performed a feat by opening 56 branches in a day (2nd January, 2006) for Union Bank a never before achievement for any Bank all over the world. He manned the counters by keeping people with the same dexterity of Muthukad pulling out rabbits from his magic box. The entire process was a smooth one in the words of Shri. Nair, but the fact remains that the branches from where the rabbits were pulled out are lamenting on account of dearth of staff and loss of business for lack of customer care. I am not aiming at a character assassination but just stating the facts that are known to every one. Shri. Leeladhar and Shri Cherian Varghese had closed down several branches even at major centres and it becomes unintelligible for laymen like me as to which process is right and which is wrong? One step forward and two steps backward is the impression the process created especially when the scenario is focusing on mergers and amalgamations. One does not know whether the revenues will compensate the establishment expenses.

The invitation cards printed in connection with opening branches were sent in large glossy envelopes costing Rs.10/- to Rs.15/- each and were received at the nearby branches on one or two days preceding the opening with the result that the entire stuff became a waste without reaching the target. The cards were small, but the envelopes were very large conveying a truly symbolic picture of the hollowness of the process. Business India gave a good coverage on the performance and published the colorful smiling face of the CMD in it. The bank reciprocated the deed by buying thousands of copies and distributing it among the branches. Information about the expenditure and the purpose is being taken from the Bank invoking the RTI Act so that it would be a material worth knowing. The wastage of money and the damage to the Bank will bring in glory to the CMD who will be branded as the Business man of the year or an entry in the Guinness Book of world records.

Union Times is yet another thing aimed at buying glory to the bank. It publishes all the paper clippings containing the snaps of the Executives at various functions across the country. Though a majority of the copies go into the dust bins at several offices, it enables the editor and publishers to win the favour of the Top Executives and provides work to a number of officers and clerks.

The bank has money to squander on much unwanted items and also for meeting the personal ends of the Executives. And it pleads paucity of funds for making legitimate dues to the people who work for it. It becomes equally unjust to the constituents too and does not ensure fair returns to the working capital they provide. It is after low cost deposits for paying high dividends to the shareholders. From borrowers, it levies processing charges, without giving them any product or service. Processing is a process whereby the Bank extends to itself a service for identifying the safe areas where it can safely park its funds and it charges a levy from the customer for the work it renders to itself. The story of write off and prudential write off is also interesting. After prudential write off, a process that helps projecting a rosy picture, banks collect from the people, amounts that are not finding a place in the Balance Sheets.

During the past six years of coming out of the bank, I could collect a data bank containing vital information about several banks. I have material enough to run periodical containing matters that will improve the working of not only Union bank but of the entire banking system. The RTI Act will facilitate procurement of regular data on write offs. Being a disciplined employee, employment was a shackle to me. Coming out, I could liberate myself from it and do many worthy things that would be remembered for ever both by the industry and its people. Second option of Pension will add a glow on the faces of about 8 lakhs people in the industry. Granting the legitimate right to employees will remove the sin on the part of the industry. It will eradicate to some extent erosion in the values by avoiding discrimination that is inconsistent with the constitution of India and improve the fundamentals of the industry. My creative criticism brought about changes in the Banking Regulation Act and put an end to the unhealthiest competition that debilitated the Banking System. The extent of loss the industry was sustaining through competition was immeasurable. The issue of Pensions that was almost dead until December, 2006 got enlivened and the trade unions that were non performing on the cardinal issue came to a common platform on it. Unions representing 12 lakhs of employees who were divided over the issue of Pension got awakened on the issue, assembled on a common platform and shut down the banks for two days. The slogan of the Trade Unions appears to be “Torpid Rights, And Deceive Employees” as they miserably failed to address the fundamental issues of the members. With the support of members, the leaders are accomplishing their personal ends like sticking to their place of choice at work and live king size. My present plan is to work for three more years for the industry i.e. until the normal retirement age either remaining outside or inside and shift to spiritual plane afterwards. Since the bank could not effectively terminate my services in a normal way Mr. Nair has the option to reinstate me and send me later on normal retirement hosting a befitting farewell.

With warm regards, I remain.

Yours sincerely,


C N Venugopalan