Memorandum of Understanding - A ReportThe Department of Finance, GOI has sent a proposal for

10 banks for a turnaround plan vide its letter

DO:NO:F:NO:F38/2014 BOA dated March 16,2017.

These ten banks plus Union Bank of India included in

the list identified as weak banks and GOI has allotted Rs

8586 crores as capital infusion subject to commitment

from all the stake holders i.e. Management,

Unions/Associations. It is strange and unfortunate that

the Finance Ministry has stipulated pre-conditions for

capital support for state owned banks and insisted on a

Tripartite Agreement among Directors, Unions of

employees and the Government agreeing to work for

achieving quarterly milestones as per action drawn by

SBI Caps. In this tripartite agreement, only one section is

required to give up and that is the employees. Neither

the Management represented by the Directors nor the

Government is required to bear any burden. The capital

support that the government is going to provide is too

inadequate and very meager compared to other

countries like US where 3% of GDP pumped in to save

banks and Private financial Institutions and in any case,

only a small portion of what they received in the past

years as dividends and various taxes including income

tax. But it is unfortunate the Indian Government not

valuing the contributions of PSBs for nation building and

expecting employees to forego their perks as a

precondition for capital support is not legitimate and

reasonable, all the more when year after year the sweat

and labour of the employees yield operating profit equal

to or even surpassing the so called strong banks. If the

operating profit is eaten by the provisions the banks

have to make on high value advances the top executives

responsible for their creation have to be brought to

justice. It is the recklessness or the malafide of the few

past executives that is responsible for the present

malady and employees cannot be asked to bear the

cross when these irresponsible and corrupt executives

will have a comfortable post retirement life with all

perks and luxuries.

It is also curious that the income tax department coming

under Finance Ministry will tax on NPA provisions

made by writing them back as income on the ground

that only write off provisions making the debt nil would

be admissible and not the provisions made to satisfy

BASEL norms based accounting norms. It is an irony that

the banks would have to pay tax on provisions deemed

as income by the taxmen which would have be treated

as expenditure impacting the profit and consequently

impacting the capital adequacy norms and reducing the

banks into weak banks. If these banks are weak they

have to be subjected to differential treatment in directed

lending and other government imposed/induced

policies, and reserve requirements.

The fact of these banks making operating profits with still

more potential left in them to make more profits should

awaken the government to the reality that the potential

should not be allowed to go unused for want of capital. If

a bank is in a position to be competitive to mobilize

resources and lend but is not able to do so for want of

capital the sensible thing to do would be to capitalize

them on war footing and amend the laws and procedure

for recovery of big ticket advances. China supreme court

has banned almost 7 million people from flights and

CRUSADEREDITORIALEDITOR

B. SRINIVASANASSOCIATE EDITOR

T. MURALI SOUNDARARAJAN

Vol : 10 Issue : 13March 2017 Rs. 3/-

Team work TriumphsTeam work TriumphsTeam work TriumphsA MONTHLY MAGAZINE OF INDIAN OVERSEAS BANK OFFICERS’ ASSOCIATION

IOBOA

THE

bullet trains for the last four years as a penalty for not

paying their debts. But the GOI which demonetized the

currency by the stroke of a pen is not contemplating on

amending the law to recover the money except through

civil laws (like the new law on bankruptcy).

Criminalization of loan default of high value advances

where the default will be presumed as an act of malafide

unless proved otherwise by the promoters/directors will

go a long way in recovery.

It is also unfortunate that when these so called weak

banks are making very good operating profits the action

plan for recovery ought to be left to them and there

should not be an outside agency like SBI Caps asked to

give an action plan within a few days as a quick fix

solution. These are all attempts to somehow privatize

banks in the name rejuvenating these banks and forcing

them to do para banking at the cost of their core

business. When a bank is starved of capital it has to find

avenues to improve fee based income and para banking

is one solution. In other words, a bank which is having

all potential to do its core activity and earn enormous

profits is asked to do errands for others due to

inadequacy of capital. A public sector bank will be

reduced to a hand maid of many private sector players

functioning the para banking arena. These banks will be

paying the same salary, rent and incur the same

establishment expenditure with some reduction in

expenditure on perks of their employees to earn a rupee

in para banking foregoing their potential to earn more

than twice that in core banking.

Sale of NPAs to ARCs at throw-away prices mostly

linked to the book outstanding without reckoning the

undebited interest makes the whole process of sale

farce. The Government can amend the law by

mandating the buyers to share 50% of the surplus

received over the price paid till the bank recovers of full

book outstanding plus undebited interest. World over

the central bank purchased the stressed assets and junk

bonds to distress and make profits. Similarly the GOI

can amend the law to empower the RBI to purchase the

stressed assets of these 11 weak banks thereby enabling

them to make turnaround plan faster.

AIBOC has strong reservations to the conditions like

mobilizing capital from market and closure of branches,

which are part of the turnaround plan. We also oppose

imposition of the condition of reorientation of

perquisites of employees and officers of these banks till

their organizations register a turnaround.

Our suggestions for a turnaround plan is as follows:

1) The Banks are supposed to earn on an average 2%

over BR. Government should make good the shortfall in

the interest charged in respect of all directed lending.

2) Government should exempt from opening accounts

and lending activities/sectors that are not remunerative

or defray in full the expenses/loss of income.

3) Banks should desist from holding Board Meetings in

any place other than its Corporate headquarters to avoid

wasteful expenditure.

4) Action plan for revival should be drawn not by any

outside agency but only by respective banks through

mutual agreement between respective managements

and unions of employees.

5)The quarterly targets should also include bringing to

justice within 6 months all top executives responsible

for the high value NPAs.

6) All vacancies relating to workmen and non-workmen

representatives to the Board should be filled up before

commencing the Recovery Action plan. Employees who

have been asked to give up perks cannot be denied their

right to partake in and oversee the decisions taken to

implement the Recovery Action plan.

7) The Action Plan has to be only for a period not

exceeding one year beyond which the government has

to fully recapitalize these banks to the extent required

without any strings.

Com. B. Srinivasan

General Secretary

March 2017 2 §

March 2017 3 §

Presidential Communique

Dear Comrades,

BEHOLD! BATTLE AHEAD! VICTORY ASSURED

Times are weathered once again. Baffled with adverse media reports on the health of our Bank and

there being no effort to countenance the same, confusion galore amongst us as there had been

earlier reports of us achieving all the five parameters under PCA for QE December 2017 and aura of

good performance for the last quarter of current fiscal. The motivated reports certainly have dented

our spirit and enthusiasm. We as committed soldiers exhibiting 'never say never die' attitude are

enthused by the exuberance exhibited by Top Management who tirelessly traverse the course,

toiling hard.

That we deftly chose to ignore the doomsayers and rumour mongers and carried on with the task at

hand assiduously speaks about our resolve to weather the crisis.

Of course as we had been strongly feeling that our entreaties were being ignore and the views of the

Organization which represent Officers, a vital stake holder, was not being heard in perspective, a

change in approach ushered; though we are yet to reap the benefits of changed approach.

Rank and file is enthused by the setting in motion of the promotion process and Officers eagerly

await their turn of career progression.

We are also assured that the annual transfer exercise a hall mark of our Bank's HR administration,

spouse joining transfers would also be implemented before June 2017.

Being a firm believer and playing an active role under participative management, we are constantly

endeavoring in resolving pending issues by constant interaction with Top Management, as resolving

the issues confronting the member has direct bearing on their welfare and perks up their level of

motivation.

Comrades as many of us are aware we are at a critical juncture and resorting to blame game would

lead us nowhere. Hence it is incumbent upon everyone of us to seize the initiative and not let go the

opportunity of being a part of TAP(Turn Around Plan). Let us treat our work as a bounden duty by

straining every nerve to realize the cherished dream of preserving the identity of IOB. Cheer up

Comrades, better times are not far off when you have the positivity and right attitude.

Yours Comradely

(T.Murali Soundararajan)

March 2017 4 §

Hundred Gold Coins & Birbal

The wisdom of Birbal was unparalleled during the

reign of Emperor Akbar. But Akbar's brother in

law was extremely jealous of him. He asked the

Emperor to dispense with Birbal's services and appoint

him in his place. He gave ample assurance that he

would prove to be more efficient and capable than

Birbal. Before Akbar could take a decision on this

matter, this news reached Birbal.

Birbal resigned and left. Akbar's brother in law was

made the minister in place of Birbal. Akbar decided to

test the new minister. He gave three hundred gold coins

to him and said, “Spend these gold coins such that, I get

a hundred gold coins here in this life; a hundred gold

coins in the other world and another hundred gold coins

neither here nor there.”

The minister found the entire situation to be a maze of

confusion and hopelessness. He spent sleepless nights

worrying how he would get himself out of this mess.

Thinking in circles was making him go crazy.

Eventually, on the advice of his wife, he sought Birbals

help. Birbal said, “Just give me the gold coins. I shall

handle the rest.”

Birbal walked the streets of the city holding the bag of

gold coins in his hand. He noticed a rich merchant

celebrating his son's wedding. Birbal gave a hundred

gold coins to him and bowed courteously saying,

“Emperor Akbar sends you his good wishes and

blessings for the wedding of your son. Please accept the

gift he has sent.” The merchant felt honored that the king

had sent a special messenger with such a precious gift.

He honored Birbal and gave him a large number of

expensive gifts and a bag of gold coins as a return gift for

the king.

Next, Birbal went to the area of the city where the poor

people lived. There he bought food and clothing in

exchange for a hundred gold coins and distributed them

in the name of the Emperor.

When he came back to town he organized a concert of

music and dance. He spent a hundred gold coins on it.

The next day Birbal entered Akbar's darbar and

announced that he had done all that the king had asked

his brother-in-law to do. The Emperor wanted to know

how he had done it. Birbal repeated the sequences of all

the events and then said, “The money I gave to the

merchant for the wedding of his son – you have got back

while on this earth. The money I spent on buying food

and clothing for the poor – you will get it in the other

world. The money I spent on the musical concert – you

will get neither here nor there.” Akbar's brother in law

understood his mistake and resigned. Birbal got his

place back.

Moral: The money you spend on friends is returned or

reciprocated in some form or the other. The money

spent on charity gets converted into blessings from God

which will be your eternal property. The money spent

on pleasures is just frittered away. So when you spend

your money, think a little, if not a lot.

March 2017 5 §

Ÿ From the body of one guilty deed a thousand ghosity

fears and haunting thoughts proceed.

Ÿ Nothing is more dangerous than a friend without

discretion; even a prudent enemy is preferable.

Ÿ He who fears being conquered is sure of defeat.

Ÿ Ten thousand of the greatest faults in our neighbours

are of less consequence to us than one of the smallest

in ourselves.

Ÿ The morality of an action depends upon the motive

from which we act.

Ÿ Modesty seldom resides in a heart that is not enriched

with other nobler virtues.

Ÿ Inward sincerity will influence the outward

deportment.

Ÿ Simplicity, of all things, is the hardest to be copied.

Ÿ Mortifications are often more painful than real

calamities.

Ÿ Self-distrust is the cause of most of our failures.

Ÿ A great purpose breaks the walls of human limitation.

Ÿ Continuous learning is the minimum requirement for

success in any field.

Ÿ The fastest way to pass your own expectations is to

add passion to your labour.

Look to the future because that is where you will spend

the rest of your life

How we handle stress determines our quality of

life. One should understand that chronic or

long-term stress damages health. In the

present technology driven world, constant stress has

become part of our lives.

One cannot escape the stress of pollution or mental

stress of living in a highly connected world or stress to

give performance of high order or stress at work place

etc. Some people manage stress more effectively than

others.

Scientists at Yale Stress Center, US were curious to find

out if there is a part of the brain that responds differently

to stress in people to manage it better. The team to

choose to compare two groups of people – i.e., those

who were able to maintain healthy eating and drinking

habits irrespective of the curveballs they have and those

who were spree drinkers and/or emotional eaters. The

MRI scans of the brains of the subjects in both groups

revealed frightening images and also difference in the

way their brains responded.

To better cope with the stress, one should first face the

stress situation and by this way our brain can fully

evaluate it to develop an appropriate coping strategy.

The active appraisal of a stressful situation and strategic

problem-solving is required for better stress

management. One has to prepare him/herself for any

change to manage stress in a better way. Study suggests

that one should not multitask or juggle home-related

affairs while doing office work or vice versa.

At any given point of time, one should focus on only one

task at hand to ensure highest level of productivity and

creativity. Only when our brain is focused solely on the

task at hand, can it switch to the problem-solving mode

when faced with a stressful situation, thus preventing the

stress from affecting our health.

Always Lead a stress-free and healthy life. Wishing you

all the best.

Manage Stress Before it

(Mis) Manages you

March 2017 6 §

The GST Journey - An Overview

India is on the cusp of ushering in a historic tax reform that has been in the works for 17 years. With the Lok Sabha

passing supporting bills, the date for roll-out of GST is given as 1st July 2017. The glance of GST's journey

through the years is given below:

Ÿ 2000 - The National Democratic Alliance (NDA) government led by Atal Bihari Vajpayee sets up an empowered

committee of state finance ministers to prepare a GST structure.

Ÿ July 2004 - A task force was formed chaired by Vijay Kelkar

Ÿ Feb 2006 - Finance minister P.Chidambaram proposes GST and sets 1st April 2010 as deadline for

implementation.

Ÿ Nov 2009 – The empowered committee releases its first discussion paper on GST

Ÿ March 2011 – The UPA government introduces the constitution amendment bill in the Lok Sabha.

Ÿ August 2013 – The standing committee on Finance submits its recommendations.

Ÿ Sep. 2013 – UPA Govt. fails to push GST bill in the face of resistance from states like Gujarat and Madhya

Pradesh. Constitutional amendment bill lapses with the dissolution of the 15th Lok Sabha.

Ÿ May 2014 – NDA Govt. revives GST after coming to power; promise to pay Central Sales Tax compensation to

states.

Ÿ Dec. 2015 – Revised constitution amendment bill introduced in the Lok Sabha and the same was passed in May

2015.

Ÿ August 2016 - Rajya Sabha passes the bill – 50% of state assemblies ratify the bill during August – September.

Ÿ Central Govt. notifies provisions of the amendment bill – GST council has been constituted with Finance

Minister (as Chair person) and state finance ministers.

Ÿ Sept. 2016 – GST council finalizes 5 laws namely:

The Central GST bill

State GST bill

Union territory GST bill

Integrated GST bill &

GST (compensation to states) bill

Ÿ 29th March 2017 - Four bills, except the last one, were introduced in Lok Sabha for consideration and the same

has been passed.

Ÿ The stage has been set for the roll out of GST.

Ÿ Rolling out a New Indirect Tax regime will economically unify the country.

Ÿ This new initiative will also put in place a template for cooperative federalism between the centre and states, in

the arena of indirect taxation.

Ÿ Both centre and states are giving up their autonomy when it comes to collection of indirect taxes.

Ÿ GST will create a resemblance of a common market where all goods & services irrespective of where it is

transacted, will have a common treatment and a common rate.

Ÿ The cascading effect of existing tax regime i.e. tax on tax will go away with both centre and state applying GST on

the entire supply chain.

Ÿ The proposed tax rates will be in 4 slabs i.e. 5%, 12%, 18% and 25% depending on the nature of the item.

March 2017 7 §

Ÿ The GST network, the information technology backbone, is also in the process of testing its software and

hardware and it will open it up for trial runs over the next couple of months.

Ÿ The Govt. has constituted 10 working groups to look into industry specific issues to ensure a smooth transition.

Ÿ Every tax payer under GST will report electronically monthly for every state they are present at transaction level

or aggregate level, with a single portal called GST network

Ÿ All GST registrations will be PAN linked.

Ÿ About 8 million PAN linked tax payers will be tracked electronically across the value chain through the GST

Network portal. This will effectively plug tax leakages within the GST chain and will attribute to better

compliance.

Ÿ IT authorities will have full visibility to ensure tax compliance.

Ÿ The stakeholders will require robust IT systems to support all sorts of compliance reporting under GST. It will be

tough in the initial phase, more so for the smaller players.

Ÿ Services industries like banking, telecom and others who dealt with single central levy of service tax from a

compliance perspective will now need to deal with multiple state registrations in the proposed set up, which will

be painful and expensive too.

We salute two doyens of IOBOA, who have laid down their office, recently on superannuation.

Com. T.D. Singh, our Senior Vice President & Com. Suryanarayana, our Joint General Secretary, retired

from service on 31.03.2017.

Both were towering leaders in a class of their own. They led the association in their geographical area of

operations with aplomb. Many a time difficult situations were turned into favourable ones by their deft

handling of the issues at hand.

Both were gifted thinkers and meticulous planners. Their contributions to IOBOA were immense. They

both led from the front in their crusade against any oppressive measure of the management and came up

trumps in the process, in a battle of wits that ensued.

Com.T.D.Singh operated in the most difficult terrains of our country, in the state of Punjab, where it was

a herculean task to mobilize members to our fold and galvanize them for the struggles ahead,

Com.Suryanarayana worked amongst cadres in our neighbouring state of Karnataka and who had to be

cajoled and rejuvenated into donning the role of warriors to confront the management on some of the

problems faced by the membership and which had a direct bearing on their welfare.

It is not without reason that both went on to hold pivotal positions in the organizational hierarchy of

IOBOA, in the shortest possible time. Besides being combative and aggressive in nature both had a soft

side to their characters. They always lent an ear to the grievances of the cadres and went out of the way

to get them redressed.

Their popularity chart was always on the upswing and never once they compromised on principles,

ethical and moral values. They practiced what they preached and in their quest for justice to the

aggrieved members did not even once bend before the management.

Their selfless and tireless service to the members of IOBOA shall come to be written in golden letters in

the annals of its history. May their tribe increase! The CRUSADER wishes them a very happy, peaceful,

purposeful and active retired life and their family members all prosperity.

ADIEU – Comrades T.D.Singh & Suryanarayana

March 2017 8 §

Raipur Region Social Activities on 26.02.2017 at Kopal Deaf and Dumb Vidhyalaya, Raipur

CRM Com. R. Mathiselvandistributing prizes to winners

JGS Com. Anji Reddyhonouring the winners with prizes

Mrs. Padma, Principal giving prizes to winners AGS Raipur Com. Paulus Barwadelighting the children

Section of the participants Art work done by the students

March 2017 9 §

Golden Jubilee Celebrations & Members' Meet – Salem Region

AGS Com. Ravindran addressing the gathering Central unit leaders on the dais

Comrades listening to GS with wrap attention GS Com B.Srinivasan addressingAGS Salem Com. Ravidendran is also seen

Section of the comrades General Secretary Com. B.Srinivasan deliveringhis key note address to the comrades

JGS & VP Com. Veeraraghavanaddressing the comarades

President Com. Muralisoundararajanaddressing the gathering

March 2017 10 §

This Home is intended to nurture, protect and care the destitute children who are left in the streets and also children

from poor and broken families. Its purpose is to promote the total development of children, through loving care in a

homely atmosphere with adequate nutrition and healthy social interaction and to educate all children till they are

old and mature enough to venture out independently.

March 2017 11 §

March 2017 12 §

JAIPUR

The 11th Triennial General Council of AIBOC was held at Pink City, Jaipur from 17th to 19th March, 2017. The Curtain raiser of the conference was

massive rally in the city of Jaipur. The rally consisting of more than 2000 officers marched through the meandering roads of Jaipur starting from Aravali

Marg, Police Station to Conference Venue. The inaugural session started at the picturesque Deep Smriti Auditorium with welcome address delivered

by Corn. B.L. Goyal, Chairman, Organising Committee and President of Rajasthan State Committee. Shri Dibakar Mohanty, Managing Director, State

Bank of Bikaner & Jaipur and Shri Ashok Lahoti, Mayor of Jaipur were the guests of Honour. With the lighting of the Traditional Lamp by guests, the

Conference got inaugurated. Com. Harvinder Singh, General Secretary, AIBOC rendered introductory remarks highlighting problems of the officers

with a request to Hon'ble Mayor to raise the issues with the Finance Minister. Shri Ashok Lahoti, Hon'ble Mayor, Jaipur Nagar Nigam gave a spirited

address and assured to take up the issues. He said the Public Sector Banks and Officers have the trust of the people. Corn. Y. Sudarshan, President,

AIBOC delivered his befitting speech. The inaugural session concluded with vote of thanks presented by Corn. Vinay Kumar Bhalla.

During the two day delegate session the Dais was adorned by Senior Leaders of AIBOC. The report of the General Secretary, the Statement of Accounts

and the Resolutions were placed by General Secretary and Corn. Pankaj Kapoor, Treasurer of AIBOC. As many as 85 delegates including many young

and lady comrades deliberated on the General Secretary's report.

During the conference our General Secretary Com. B. Srinivasan is elected as Senior Vice President and Com. Murali Soundarajan is elected as

Joint General Secretary.