Can tide over crisis with renewed focus on business, says PNB officers’ body

he All-India PNB Officers’ Association has advised members on renewed focus on core business, reminding them that “commitment to better customer service shall steer us through the current crisis.”

“The need of the hour is to remain calm and have belief in our ability and focus on the positives,” Dilip Saha, General Secretary, of the Association said in a circular to members.

‘Great journey’

Hardwork, honesty and loyalty of officers and employees have kept the PNB flag flying all along its distinguished journey through the last 123 years, Saha said.

“During this great journey, we have won the trust of more than 10 crore esteemed customers from all walks of life. We also overcame various challenges, including the two World Wars.

“Later in 1947, the Partition saw the bank forfeit two-thirds of its branches. Introduction of the Basel norms in early 1990s was another challenge. But we have survived and emerged only stronger.”

Rotational policy

Referring to the recent developments, he said, that reports of 18,000 officers and employees of the bank being transferred following a directive from the CVC, is wrong.

The bank has been implementing rotational transfer policy in true spirit with only minor aberrations. According to Saha, the total number of officers and employees required to be transferred as per CVC directive is only 1,415.

This is less than 2 per cent of the total workforce who would, in any case, have been transferred after March 2018. Saha also decried the constant haranguing that PSU banks are laggards and always require capital support through taxpayer money.

“It may not be out of place to mention that our bank pays not just income tax, which is charged on the operating profit instead of net profit, but also a dividend on government holding in most years as also dividend tax.”

In the past 17 years, the bank has contributed more to the income of the government than it received as capital. Same is the case with most of the PSU banks.

Bailout costs

The current recapitalisation plan amounting to ₹2.11 lakh crore over two years would account for less than 0.5 per cent of the current year’s GDP and less than 0.25 per cent annualised over two years, he said.

Further, bank bailouts have extracted far less cost out of the economy than bank stress situations elsewhere. Even out of the ₹2.11 lakh crore, only ₹18,139 crore is to be provided through budgetary provisions.

Saha sought to know why the Centre has not implemented the report of the Parliamentary Standing Committee on Finance on resolution of NPAs. Appointment of employee directors and officer directors on bank boards is still pending.

“Why are names of wilful defaulters not declared? Why is it not treated as a criminal act? Is this because the bulk of the NPAs are from big corporates?”

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