The Hindu Business Line : Bank officers' union flays PSB autonomy package

THE All-India Bank Officers' Confederation (AIBOC) has termed the autonomy package for public sector banks (PSBs) as a cover to facilitate mergers and takeovers of PSBs.

A press release by the AIBOC Joint-General Secretary, Mr T.R. Bhat, said that package would not support the development orientation expected of PSBs.

Mr Bhat said that the package lacked clarity.

Mr Bhat said the package would facilitate takeover of one PSB by another, as the notification says that the businesses to be acquired should be within the permitted lines of businesses listed under the Banking Regulation Act.

Referring to the suggestion of closing down or merging non-viable branches, he said the first casualty of this proposal would be rural branches. This move will work against the call to intensify rural lending.

The proposal of exiting the non-viable businesses will have implications on priority sector lending and on disbursement of monthly pension to several Government employees as they are not remunerative to banks. Banks may stop taking up these business activities, he said.

The move to fix differential pay structure for the staff will create serious problems in human resource (HR) management, he said, adding that HR is a delicate issue with far-reaching implications on the morale and performance of employees.

There should be transparent norms for pay differentials so that an employee will know when he/she can get a higher salary or incentive.

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