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                                    Does Grey Matter Drastically Diminish Among Top Bankers As They Go Up the Ladder With the Help of Politicians ? :  IBA’s Record Note of 2015  vs IBA’s letter of 2012



Rajesh Goyal 

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We know Indian banking industry is at cross roads due to high level of NPA which has its roots in nexus between politicians - top bankers and industrialists.    We have consistently exposed the nexus between IBA and UFBU during the recently concluded Xth BPS.   The latest BPS had an additional document called “Record Note” [A copy of the same can be downloaded from our page: ]. Some of the big names who signed this Record Note on behalf of IBA are : Mr T M Bhasin and M V Tanksale.   Both of them have remained at the top positions in the banking industry.   Mr Bhasin was CEO at Indian Bank till as late as June 2015, and has now joined at  CVC as Vigilance Commissioner (one of the top most jobs in India), immediately after conclusion of the 10th BPS .   Mr Tanksale was CMD of Central Bank of India and post retirement joined as Chief Executive of IBA.   The Record Note has also been signed by all the 9 union representatives at the negotiating team. 

Thus, in nut shell we can say that the above Joint Note has been signed by those people (from PS Banks) who are recognized by GoI to be fit to be appointed to highest posts even after their retirement. 

However, what we are providing in this article will make even a newly recruited PO to think whether he has joined the right industry which has recently been headed by people who do not know what they are signing and forget what their organization stood for only a few months back !!


Let us read  what does the latest Record Note (dated 25/05/2015) says regarding the issue of retired bankers says :-


In the Charter of Demands submitted by the Workmen Unions / Officers Associations for revision of wages and service conditions, certain demands pertaining to superannuation benefits / issues of retires were raised.  These issues were discussed in detail on various occasions during course of negotiations on the Charter of Demands.      IBA maintained that any demands of retirees can be examined only as a welfare measure as contractual relationship does not exist between banks and retirees. The periodic wage revision exercise based on mandate from member banks cover only wages and service conditions of serving employees. Retirement benefits are based on service conditions prevailing at the time of retirement of an employee and these do not change with settlement.




Let us  now read  what the IBA wrote to GoI on 6th August 2012 (letter sent to GoI with signatures of Mr K Ramakrishnan of IBA) says :-


The Managing Committee also emphasized that the sanctity of Joint Note (dated 27.04.2010) executed by Management / Unions / Association should not be reopened under any circumstances during the currency of agreement.  If the spirit of DFS communication is to extend pension option to those who retired under VRS, the right thing would be to hold discussions with UFBU at the time of next settlement and make it a part of 10th Bipartite Settlement.




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The copy of the above referred letter dated 6th August 2012 is already available on our website for long time for perusal of all the bankers and union leaders (click here to download the same :

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Now question arises, if IBA wrote to GoI in 2012 and confirmed in writing that it will be correct to hold discussions with UFBU about the issues of pension to retirees at the time of 10th BPS, what happened thereafter which made change of heart at IBA.    

Now the same Managing Committee of the IBA took a U turn at the time of negotiations for 10th BPS with UFBU and told that there is no contractual relations between retired bankers and Banks.   Was there any Supreme Court judgment between 2012 and 2015, which made IBA to change its  stand of 2012? Or was it complete bankruptcy of grey matter of the people who signed the Record Note OR was it done to please bosses at GoI to get certain favours by misleading them about the true position?  I have no clues as to the exact reasons for doing such an immature agreement.  Let our readers decide or speculate what might have been the reasons for this kind of agreement by top bankers and top union leaders of banking industry.


At the same time, questions arise whether UFBU leaders were unaware of the above stand of 2012 by the IBA (this letter is available in public domain since 2013) ?  If not, then who is responsible of poor home work before negotiations?   [They would have certainly come to know of this letter if they have not made negotiations so secretive and thought themselves to be the most knowledge persons on the earth].    If yes, then did they encounter IBA with above letter?   What was the response of IBA in this regard when confronted with above letter?  Will they issue clarification on this issue now?  What forced them to sign Record Note?  These are the questions which will haunt leaders as well as retirees who have lost the golden opportunity to get some justice without going to Courts.   Now there seems to be no way out except to take shelter of Courts. 

Still UFBU leaders are busy in  collecting  monthly subscriptions, levy and calling this Xth BPS as HISTORICAL ACHIEVEMENT.   Should Mr Harvinder Singh and CHV (two dominating personalities in these negotiations )  not resign immediately for duping thousands of retired bankers inspite of the fact that IBA has committed itself to GoI way back in 2012 itself that it will discuss these issues at the time of Xth BPS?


Now forget about at what level you are working in bank or you retired at what level from a bank – whether Clerk, Scale I or Scale VII - you will not miss the contradictions among the above two stands.   However, these top bankers and union leaders  missed the same or intentionally mislead the Aam Banker.


Can these two extremely opposite stands can stand the scrutiny of any Court?   Is Modi Government, I mean GoI, so foolish and  believes that above two stands of IBA are consistent?   With my Law degree and  interest of reading Law cases of Supreme Court relating to banking, I am sure IBA / GoI will have to again bear the wrath of the judiciary as and when this case goes to the Court.   You show these two stands to Mr Arun Jaitley, a renowned lawyer of Supreme Court and now Finance Minister,  and I am sure he will jump from his chair as to how such senior persons of Banking industry can  take such a diametrically opposite views on the retirees of the bank within few months.   I will not be amused if Mr. Jaitley also ask for the names of advisors to IBA OR may like to confirm whether  Record Note was the product of the brainstorming of the Managing Committee of IBA so that he can also know the true level of the people at the helm of IBA ?


I can only say Let us pray to God that our India is saved from such people who do not understand what they are signing and in future they are not doled crucial and critical jobs even after retirement !!  Will Modi Government have a re-look at the above stand of IBA?   I have my own serious doubts about the same.


P.S. :    One of my retired colleagues in serious tone told me that ‘Govt may consider these senior bankers for Padma Award for the national service they have done for retired bankers by agreeing to take up cosy  jobs even after retirement’.    I had to merely node and thought anything is possible in India.  Mera Bharat Mahan.


Every retiree who reads this article must ensure that it is forwarded to all his / her  friends in different FaceBook Groups or through emails.  Let every retiree know how IBA and UFBU have treated us in Xth BPS.  Do not keep this message upto you only and spread it to all retired bankers.  That is the only channel left with us to garner support for our cause.  We are also exploring the possibilities of going to Court on this issue as ALL  unions (majority as well as minority unions)  have already ditched us by signing Record Note.  Some of the union leaders are now shedding crocodile tears in sympathy of the retired bankers.  They can not be trusted any more. 


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