Money & Banking

Bank union seeks strict rules to rein in corrupt top brass

Our Bureau Kochi | Updated on March 09, 2018 Published on August 03, 2014

Against the backdrop of the CBI arresting the CMD of Syndicate Bank for allegedly receiving ₹50 lakh as bribe from large borrowers, the All India Bank Employees Association has urged the government to immediately frame rules of conduct for top executives of public sector banks.

CH Venkatachalam, general secretary of the AIBEA, said that while junior-level officers and employees were sacked by bank managements for bribery and misconduct, top executives committing major frauds often go unpunished.

He recalled that in the 1990s, the CMD of UCO Bank was sacked and later jailed. But these days, though several cases of malpractices by CMDs and executive directors of public sector banks had been exposed, the cases were hushed up.

He pointed out that recently the CMD of United Bank of India, which had accumulated the largest bad loans among the public sector banks, was allowed to take voluntary retirement without facing any penal action. A serious allegation of bribery against a top State Bank of India executive was also hushed up.

Referring to the arrest of Syndicate Bank CMD SK Jain, Venkatachallm said it was shocking that people in such high places were involved in bribery.

He noted that while there were clear-cut rules and guidelines regulating the conduct of employees and officers, there were no such regulations for executive directors and CMDs. This was all the more glaring as the EDs and CMDs took crucial financial decisions for the banks which involved public funds.

In view of the banks’ mounting bad loans and the rising number of corruption charges against top bank executives, AIBEA wanted the Centre to frame a set of strict rules to govern the conduct of EDs and CMDs.

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Published on August 03, 2014
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