TACKLING the growing menace of bad loans or non-performing assets (NPA) has become a major challenge for the public sector banks. According the Reserve Bank of India (RBI), whch is constantly keeping a vigil on the scenario along with the finance ministry, top 30 NPAs of the public sector banks account for one-third of the total gross non-performing assets of state-run banks. The gross non-performing assets (GNPA) amount of top 30 accounts of public sector banks (PSBs) stood at...
Rs 63,671 crore at the end of June, 2013. The total GNPA outstanding of 26 PSBs amount for Rs 182,829 crore. In case of nationalised banks, top 30 defaulters add 43.5 percent to the GNPA with Rs 48,406 crore. The total GNPA of 19 nationalised banks stood at Rs 111,209 crore. The GNPAs of SBI Group, comprising SBI and its five associates, were worth Rs 71,620 crore. Top 30 loan defaulters of SBI group had a loan outstanding of Rs 15,266 crore (21.3 percent) of the total loan.
Punjab and Sind Bank tops the list with 62.53 percent of GNPA being contributed by top 30 loan defaulters, followed by State Bank of Hyderabad with 57.50 percent, Vijaya Bank with 53.64 percent and Corporation Bank with 53.40 percent at the end of June, 2013.
Recently, finance minister P Chidambaram said the government is monitoring the top 30 NPA accounts in each PSU bank and asked the banks to set up separate verticals to recover money.
"We are monitoring the top 30 NPA accounts in each bank, each zone. It is a matter of concern that it is the big borrowers (with loans of over Rs 1 crore) who are defaulting," Chidambaram had said. RBI governor Raghuram Rajan also talked tough when he said that wilful defaulters would be dealt with a strong hand. He had stated that "this is not being said to create an atmosphere of fear or to be vindictive". The finance minister also directed PSBs to set up a separate division for recovery of technically written-off accounts. This is the first time banks have been asked to come up with a dedicated vertical for recovery of such accounts since PSBs already have recovery cells for technically written-off accounts. The total technical write-offs in the banking system as of June-end 2013 stood at about Rs 83,000 crore.
In the case of six banks — Indian Overseas Bank, Indian Bank, Bank of India, Bank of Maharashtra, Union Bank of India and Syndicate Bank — the write-offs have been more than their recoveries during the quarter ended June 2013. Large borrowers, who borrow above Rs 1 crore, account for bulk of the NPAs.
This has reference to the DOPT O.M No.28011 1 2013 Estt C dated 23 12 13 regarding Consolidated Instructions on Forwarding of Applications of Government Servants for Outside Employment regarding. Copy of circular attached.
ReplyDeleteIt is observed that Most of the Public Sector Undertakings PSU are not following uniformity i.e. Ordinarily every employee should be permitted to apply for outside post but they should not be done more than 04 times in a year, w.r.t forwarding of employment applications through proper channel, seeking of NOC at the time of interview in CPSUs from CPSU employee, without which they are not allowing to appear the interview. This it violates equality as envisaged under Articles 14 and 16 of the Constitution of India.
Non forwarding such employment application or non issue of NOC or imposing such conditions of forwarding applications Through proper Channel on employees of CPSU showing internal circulars and policies of the concerned PSUs which have no stand against the fundamental rights vested to every citizen right to choose employment may also amount to violation of Human Rights as it is affecting the Rights relating to Life Liberty Equality and Dignity of the individual guaranteed by the Constitution as per the provisions under Section 2 1 d of the Protection of Human Rights Act 1993. Imposing such conditions is also causing a perennial mental agony in the minds of CPSU employees. Non forwarding of applications may be treated violation of Article 21 and also Article 23. In fact Fundamental Rights cannot even be waived by any individual, organization.
Despite very clear case laws Constitutional Human Rights provisions and knowing full well that Administrative Instructions most of the CPSUs are least bothered while issuing employment notifications by compelling NOC, imposing unwarranted conditions for the interview which in fact requires human approach rationalization uniformity of rules and conformity to the compliance of policies or guidelines already issued by a very specialized Nodal Agency for CPSUs i.e. DOPT and DPE.
PSUs declined by financial performances, ultimately cut perks, salary deductions have no right to compel their employees to retain, by implementing unconstitutional rights, unfair practices over meritorious employees for switch over to other good PSU through open interview. Even these loss PSUs does not guarantee life time employment to the newly joined employees, whose entire career & family spoiled financially by these PSUs ultimately owned by the Government. VRS scheme implemented is only beneficial to Old employees served many years, mostly redundant, out of merit, who have a large contribution towards downfall the PSU, for which new employees will be the ultimate sufferers.
BEST PRACTICES
In the counterpart the best practices have also been followed by a few CPSEs NTPC NMDC NBCC HLL BHEL..etc in their employment notifications w.r.t NOC Forwarding of application prescribes that:
Candidates working in government Semi govt PSU and autonomous Bodies should apply through proper channel or furnish No Objection Certificate at the time of interview. However in the event of difficulty in getting NOC from their Parent department Organization they may submit an undertaking at the time of interview that they will not claim any service transfer benefits or protection of pay in case of their selection. However they have to produce the proper relieving order from their organization in the event of their selection at the time of reporting for Joining.