The Indian Banks Association (IBA) and the finance ministry has demoralised the bank officers in PSBs' all along. Today, officers in comparable institutions in the private sector are given much higher compensation package when compared to the public sector, resulting in large scale exodus of talented officers. Unfortunately, this harsh reality is being totally and ignored by the IBA and the finance ministry.
Frustration is growing amongst the officers in PSBs' due to the complete negative attitude and discrimination by the IBA. The salary revision last due in November 1992, was settled in June 1995, by imposing a mere 10.5 per cent increase in the compensation package, as demanded by the workman unions. The residual issues of the compensation package (wage revision) is yet to be settled, even though the IBA has singed a MoU to settle the same within two months from the date of the salary revision. The IBA's dilly dallying tactics is creating an unhealthy situation. This in fact has led to the officers community feeling frustrated, as the next salary revision is due in November 1997, while issues relating to 1992 settlement are yet to be resolved amicably.
The private sector and foreign banks serve only a select creamy layer of the society, with online computer support under air conditioned comfort and with very little or no social and government obligations for priority sector advances and loans. Nearly Rs 30,000 crores of DRDA and government recommended loans are becoming non-payable forcing to PSBs to write them off as loss assets. While, Rs 37,000 crores are locked as bad debt in PSBs' due to sick industries for which loans were disbursed with recommendations from powers that be.
Everybody starting with bank depositors, IBA, bank officers and workmen unions should work together to save the PSB's from future disasters.