Mother of all Surprises
When we are basking in the glory of unprecedented rental increase, here comes the "Mother of all Surprises"
"NOT TO TAKE LEVY"...
Our GS Sri. Manimaran's decision not to charge levy from the members on the 10th Bipartite arrears is not only unprecedented but Historic in every sense of the term.
Never In the history of any trade union such a decision is taken. It shows not only complete transparency in the organisation but also faith in the membership.
Friends, a few days back some of our members thought of giving letter to the Bank not to take levy from their arrears, getting confused by a trade union who decided to charge 4% levy from its members! Then our GS has left the decision to the members who overwhelmingly come forward to contribute!
But our GS has something in his mind and he has been indicating of some surprise!
Here comes the Biggest surprise !
Imagine friends when some other trade unions have become greedy and collecting huge levy, here is a leader who tells his members that he is comfortable with his funds and forego the levy that too when the organisation is in the midst of conducting hundreds of activities regularly and especially through CANPAL.
The decision of not collecting Levy is something extraordinary and simply great and Sri. G V Manimaran deserves all the kudos for this bold and historic decision.
"The total write-offs of loans made by the commercial banks in the last five years is Rs. 1,61,018 crore, which is 1.27 pe...r cent of the GDP," said Mr Raghuraman Rajan. "1.27 per cent of GDP would have allowed 1.5 million people to send their children to get a full university degree from the top private universities in the country, with all expenses paid. That's the size of the write-offs that we are talking about."
India's banks confirmed worrying trend: of total loans of Rs. 63 lakh crore, non-performing assets (NPA) or defaulted loans stood at 4 per cent. Restructured loans make another 5 per cent and along with stressed loans (repayments due for more than 30 days), the amount of bad debt in the economy was Rs. 14 lakh crore, about 20 per cent of all advances.
Lanco, which announced 11 power projects in that period, has an outstanding debt estimated at around Rs. 36,000 crore. Such a scorching pace of expansion resulted in huge amounts of debt on the books of every major infrastructure player: Adani (Rs. 81,000 crore), Ambani (Rs. 1.13 lakh crore), Jaypee (Rs. 63,000 crore), Essar (Rs.98,000 crore) and so on. The debt estimates are from a 2013 report by the Swiss asset management company, Credit Suisse.
Between 2007-2013, as the debt of Essar Group's power subsidiary shot up from Rs. 15,000 crore to Rs. 52,000 crore, so did the debt in the rest of the company's verticals - rising from Rs. 10,000 crore to Rs. 46,000 crore - according to Credit Suisse estimates.
RBI Governor Raghuram Rajan has warned against this vicious cycle. In a speech in November last year at the Institute of Rural Management Anand (IRMA) in Gujarat, he said, "Too many large borrowers insist on their divine right to stay in control despite their unwillingness to put in new money. The firm and its many workers, as well as past bank loans, are the hostages in this game of chicken - the promoter threatens to run the enterprise into the ground unless the government, banks, and regulators make the concessions that are necessary to keep it alive. And if the enterprise regains health, the promoter retains all the upside, forgetting the help he got from the government or the banks - after all, banks should be happy they got some of their money back! No wonder government ministers worry about a country where we have many sick companies but no 'sick' promoters."
The Commission advised issuance of sanction for prosecution in respect of two officials last month, it said in its monthly performance report.
The CBI had sought sanction to prosecute the officials, who are now working at the level of Chief General Manager and Assistant General Manager, for their alleged involvement in a corruption case. The CVC has approved the agency's request and asked the bank to give approval to prosecute the two, a senior CVC official said.
The probity watchdog has also advised major penalty against 107 officials, including 16 working with Bank of India, 11 in Oriental bank of Commerce and ten in Punjab National Bank, the CVC said.
Besides, CVC has also advised slapping major penalties on seven officials each of Canara Bank and Central Board of Excise and Customs, six each of Bank of Baroda, State Bank of Bikaner and Jaipur, Railway Ministry, Delhi Development Authority and HMT Ltd, and five officials each in Central Bank of India and Corporation Bank.
The Commission had processed 2,009 complaints (including 50 whistle blower complaints) last month and sought investigation report in six complaints from the concerned ministries, the report said. It effected recovery of Rs 1.71 crore during May after conducting technical examination of procurement and other works done by ten government departments, the Commission said.
And the matter of concern is that no concrete step has been taken by any agency to stop this uptrend in stressed assets. Quality of lending has not improved. Quality of workforce promoted to higher level is not based on ability to perform or based on seniority and experience but purely based on flattery and bribery. Similarly quality of recruitment in PSU banks has faced erosion year after year during the regime of reformation launched since 1991. So called merit oriented promotion policy or recruitment set up has failed to ensure merit at any level, rather it has promoted demerit.
United Bank of India tops list with highest bad loans among PSUs -Hindu Business Line--29th June 2015
United Bank of India has topped the list of public sector lenders with maximum bad loans including restructured assets as a percentage of total advances.