Tuesday, November 30, 2010

Our Banks

Corrupt Bank CEOs!

It is shocking to note that a few of the executives of public sector Banks, even the Chairmen & Managing Directors are involved in corrupt practices. Where does the fault lie?

Where else but with the Government of the Day?

Recently the RBI Governor lamented, Top executives of Banks, including RBI are being paid meagre emoluments whereas those of the new generation Banks are getting paid substantially. For example, the CEO of ICICI Bank receives a cool Rs.2.20 crores p.a. in pay and allowances alone!

So, that is the crux of the matter. In case of the public sector Banks, every thing is to be 'referred' to the Government. 

If a Bank wants to provide a small perquisite like provision of residential News paper to its employees, bearing a cost of a maximum of Rs.120/- per employee per month, permission is to be accorded by the Dept. of Finance/Banking! There the beurocrats taking their own time lastly agree to the same, incorporating a condition that 'the sale proceeds of the old news papers should be repaid to the Bank!'

Even for regular periodical merger of Dearness Allowance with Basic pay every five years, which should be a simple excercise, a mountain of a mole hill is created and after prolonged agitations and negotiations only the matter is settled subject to final approval by the Governemnt!

A 40 years ago, the Bank employees were the highest paid in the working class. The reason was said to be, "the Money they deal with regularly should be treated by them 'equally' as the scavengers treat the  'material' they handle professionally".

When I joined a Bank as clerk-cum-cashier, in 1973, my gross & net salary was Rs.383/-, without any cuttings as I was in probation. At the same time, other employees of the same cadre in Government and other sectors were paid Rs.75/- to Rs.150/- per month!

Now, if the earnings were increased on the same scale, I should be drawing at least a net salary of Rs.38,300/- per month. Where as my net Salary is around Rs.15,000/- and in case of employees who availed all the available loans from the Bank, it would be around Rs.7,500/-!

So, what happens? The money with which they deal regularly looks like Gold or platinum! They start exploring 'other ways' to acquire it.

........to be continued.