AIBOC raises concerns over imposition of PCA on lenders

By: |
New Delhi | Published: January 5, 2018 11:04:28 PM

Bank officers' union AIBOC has questioned imposition of prompt corrective action (PCA) by the Reserve Bank on some public sector banks and said these lenders are already "feeling the heat".

AIBOC, PCA, reserve bank, dena bank, public sector banks, lenders, bank recruitment, Bank officers’ union AIBOC has questioned imposition of prompt corrective action (PCA) by the Reserve Bank on some public sector banks and said these lenders are already “feeling the heat”. (Reuters)

Bank officers’ union AIBOC has questioned imposition of prompt corrective action (PCA) by the Reserve Bank on some public sector banks and said these lenders are already “feeling the heat”. “Banks which have been placed under restrictions by the RBI to improve their financials have already started feeling the heat, as their deposit growth has fallen below the industry average, indicating that wary customers are shunning such banks,” All India Bank Officers’ Confederation (AIBOC) said in a statement. Deposits of these six banks fell in June 2017 from March last year and saw further dip again in September after the RBI imposed PCA on them, it said. Citing example, AIBOC said IDBI Bank’s deposits fell 9.4 per cent while that of Dena Bank by 6.3 per cent and UCO Bank’s deposits fell 3 per cent in the quarter ending June 2017 over March last year. “But, it is not the customer alone which gave a panic reaction. The zonal manager of one of the banks proposed to suspend the salary of staff of 11 loss-making branches,” it said. It is also pertinent to note that most of the loans which have become NPAs are large advances, sanctioned at board level consisting of RBI representatives and members nominated by the government and the employees and officers of these banks had little to do in this regard.

“Further, the post of Officers’ and Workmen’s Director in the Banks’ Board is also lying vacant for the last three years and the government seems to be in no mood to appoint them. Unfortunately, now, the burden of the NPAs is shifted on the banks and the staff has to suffer,” it said. Now, it said, the new strategy of the RBI is again emphasising to curb the recruitment in banks which will further aggravate the situation of man-power crisis in these banks hampering the customer service and all. “This is really worrisome as far as these banks are concerned. Our Confederation condemns this step on the part of the government and the RBI and demands for its immediate reversal,” it added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.