J.C.C. Meeting on 23.09.2008 – Clarion call from Chiarman & M.D.

Circular No.15/2008                                                    Date : 04.10.2008

Dear friends,

J.C.C. Meeting on 23.09.2008 – Clarion call from Chiarman & M.D.

In a unique appreciative gesture, our Chairman & Managing Director, Shri Albert Tauro, addressed us in the J.C.C. Meeting held on 23.09.2008 at Head Office.  His enormous knowledge, power of observation, management skill, intelligence and persuasive capacity were all on display in his address.  His mathematical precision in dissection and understanding of our Banks strength and weaknesses is truly admirable.  In the address he delivered, while appreciating the commitment of the workforce in protecting Bank’s interests and working for its progress, he made a fervent appeal to improve the CASA deposit base, which is very weak at 23% of Gross Deposits as compared to 30 to 35% of other Banks.   Another important point he made is to increase high yielding quality retail lending.  Thirdly he expressed anguish at increasing number of malpractices in lending in certain centres.  As experienced bankers, all of us are aware of the need to improve low-cost deposits and high yielding advances.  But mere awareness is not an end in itself.  Only when such awareness is translated into reality, desired results will flow.  Success is sweet only when won against competition.  Deposit mobilization is not new to us.  We have been doing it for years.  We know numerous ways to attract good customers to our Bank.  Let us do it now, for that it is the need of the hour.  Lending, we must do, since that is the main source of income.  Knowing it well, we should not lend to lose money.  Due diligence of the proposal, accurate assessment of the need and amount of finance, risk assessment and thorough enquiry into repayment capacity and source of the prospective borrowers should be looked into before lending.  Foremost is, of course, total integrity and honest intention.

Low cost deposits and high yielding advances will substantially improve our profit base.  We have no other way except to generate profit.  We should not run after high cost deposits.  Instead, let us, run after high net worth individuals to get low cost deposits.  Concentration in recovery in Non Performing Assets and Bad Debts Written Off would definitely help us in recording profit.

The Chairman & M.D. has stressed that improvement in capital to assets ratio is of paramount importance.  As the bank has little scope to increase Tier I Capital through equity expansion and Tier II Capital through Bonds, the only best way to improve the CAR is by increasing the profit.  We may not be able to increase the loans portfolio unless and until, we improve the CAR.  The situation is not easy.  All round progress including total stoppage of wasteful expenditure is need of the hour.  The Chairman & M.D. however assured that in the name of curtailing expenditure, no benefits available to the staff would be withdrawn or revised down wards.  However, he sought little time to consider our pending demands for upward revision in certain existing facilities and also introduction of new facilities. Bank is ours and hence, job of protecting the Bank is also ours.  We appeal to all our members to join hands, put shoulder to shoulder, work unceasingly, without never ever getting tired to canvass low cost deposits and high yielding loans.  Lets show that we are best bankers in the country.

ISSUES RAISED IN THE JCC MEETING :

Following important issues were raised in the JCC Meeting held on 23.09.2008 -

1.                Review of eligibility criteria for bank owned vehicles provided to branch heads / other officers.

2.                Acquisition of bank owned quarters at various centres.

3.                Revision of ceiling on lodging expenses while on outstation duty at centres other than Metropolitan Cities.

4.                Term Insurance covers to all employees.

5.                Holiday Homes at Delhi, Goa and Shimla.

6.                Reimbursement of residential Telephone / Mobile charges to all officers.

FRESH ISSUES -

1.                Holding of review meetings on Holidays and Sundays.

2.                Posting of substitutes for all Officers who have been transferred under the substitute clause.

3.                Payments of officiating allowance – regional Offices have not been guided properly by the Personnel Department on the issue.

4.                Permission to Officers to travel by Air within North-Eastern States in view of poor Road / Rail connections and security threats.

5.                Separate meeting to discuss issues connected with CRISMAC and CBS.

FORMATION OF HASSAN REGIONAL UNIT –

Regional Unit of the Hassan has been formed on 14th September, 2008 in the newly formed Hassan Region of the Bank.  An Ad-hoc Regional Committee has been constituted  with Sri K.K. Muthappa of Madikeri Branch as Regional Chairman, Sri Chandrashekar Alse of R.O., Hassan, as  Regional Secretary and Sri Vinay Shetty of Ravindranagar Branch, Hassan as Regional Treasurer and Seven Committee Members.

With greetings,

(T.Jagannath Hegde)                                                (G.Shivarama Alva)

President                                                         General Secretary

Circular No.15/2008                                                    Date : 09.10.2008

Dear friends,

J.C.C. Meeting on 23.09.2008 – Clarion call from Chiarman & M.D

The second JCC meeting of the current financial year was held on the 23rd Sept. 2008 at H.O. Bangalore. In a unique appreciative gesture, our Chairman & Managing Director, Shri Albert Tauro, addressed us in this  Meeting.   He has, within a short period, analysed the entire gambit of Bank’s working and set out an immediate agenda before us. His mathematical precision in dissection and understanding of our Bank’s strength and weaknesses is truly admirable.  In his address, he made a fervent appeal to improve the CASA deposit base, which is very weak at 23% of Gross Deposits as compared to 30 to 35% of other Banks.  Another important point he made was to increase high yielding quality retail lending.  Thirdly he expressed anguish at increasing number of malpractices in lending in certain centres. The Chairman & M.D. has also stressed that improvement in capital to assets ratio is of paramount importance.  As the bank has little scope to increase Tier I Capital through equity expansion and Tier II Capital through Bonds, the only best way to improve the CAR is by increasing the profit. While appreciating the commitment of the workforce in protecting Bank’s interest and working for its progress, he also assured that in the name of curtailing expenditure, no benefits available to the staff would be withdrawn or revised downwards. However, he sought little time to consider our pending demands for upward revision in certain existing facilities and also introduction of new facilities.

We appeal to all our members to join hands, put shoulder to shoulder to mobilise low cost deposits and high yielding advances.  Deposit mobilisation is not new to us.  We have been doing it for years.  Lending, we must do, since that is the main source of income.  However, due diligence of the proposal, accurate assessment of the need, risk assessment and thorough enquiry into repayment capacity should be looked into before lending.  Low cost deposits and high yielding advances will substantially improve our profit base.  We have no other way except to generate profit.  Concentration in recovery in Non-performing assets and Bad Debts Written Off would definitely help us in recording profit.  Let all of us work for the systematic growth of the Bank.

ISSUES RAISED IN THE JCC MEETING :

Following important issues were raised in the JCC Meeting held on 23.09.2008 -

  1. Review of eligibility criteria for bank owned vehicles provided to branch heads / other officers.
  2. Acquisition of bank owned quarters at various centres.
  3. Revision of ceiling on lodging expenses while on outstation duty at centres other than Metropolitan Cities.
  4. Term Insurance cover to all employees.
  5. Holiday Homes at Delhi, Goa and Shimla.
  6. Reimbursement of residential Telephone / Mobile charges to all officers.
  7. Holding of review meetings on Holidays and Sundays.
  8. Posting of substitutes for all Officers who have been transferred under the substitute clause.
  9. Payments of officiating allowance – Regional Offices to be guided properly by the Personnel Department on the issue.

10.Permission to Officers to travel by Air within North-Eastern States in

view of poor Road / Rail connections and security threats.

11.Separate meeting to discuss issues connected with CRISMAC and CBS.

The Management representative while agreeing to examine all the non- monetary demands, expressed inability to consider financial demands like reimbursement of Telephone / Mobile charges to all officers at this juncture.

FORMATION OF HASSAN REGIONAL UNIT –

Regional Unit of the Hassan has been formed on 14th September, 2008 in the newly formed Hassan Region of the Bank.  An Ad-hoc Regional Committee has been constituted  with Sri K.K. Muthappa of Madikeri Branch as Regional Chairman, Sri Chandrashekar Alse of R.O., Hassan, as  Regional Secretary and Sri Vinay Shetty of Ravindranagar Branch, Hassan as Regional Treasurer and seven other Committee Members.

With greetings,

(T.Jagannath Hegde)                                                (G.Shivarama Alva)

President                                                         General Secretary

HEARTY WELCOME

We heartily welcome our new Executive Director Shri Subhash Chander Kalia, who joined the Bank on 08.10.2008.  Shri S.C. Kalia before joining us, was General Manager in-charge of Wholesale Banking portfolio at Bank of Baroda’s Corporate Centre, Mumbai.  He has over 35 years of banking experience in various capacities across the Country and Abroad.  We are sure that with his rich banking experience, he will contribute greatly for the all-round progress of the Bank.  We wish him all the success.

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