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TRANSCRIPT
REPORT OF THE
COMMITTEE FOR
ASSESSMENT OF HUMAN
RESOURCES OF STCCS
IN THE POST CBS
ENVIRONMENT
National Bank for Agriculture
and Rural Development
Mumbai
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2
Contents 1. Introduction ........................................................................................................... 5
Background ................................................................................................................ 5
Terms of Reference(TOR) .......................................................................................... 8
Approach and Methodology ....................................................................................... 9
Acknowledgment ...................................................................................................... 10
2. STRUCTURE OF SHORT TERM COOPERATIVES ............................................ 13
Rural Cooperative Banks in India – A brief overview.............................................. 13
Profit/ Loss: Number of Banks ................................................................................ 19
Financial Ratios: ...................................................................................................... 21
Capital adequacy ...................................................................................................... 22
3. Human Resource Analysis .................................................................................... 23
Number and cadre .................................................................................................... 23
Deployment of staff in branch .................................................................................. 24
Qualification, Knowledge and Skill .......................................................................... 25
Employee productivity ............................................................................................. 27
Cost Analysis ............................................................................................................ 27
Conclusions .............................................................................................................. 28
4. Categorization of Banks and Branches .................................................................30
Business Volume Analysis ........................................................................................30
Categorisation of the State Cooperative Banks: .......................................................30
Categorisation of StCBs’ branches: .......................................................................... 31
Categorisation of the DCCBs: ................................................................................... 32
Categorization of DCCBs branches: ......................................................................... 32
New Developments .................................................................................................. 34
Reorganization of Departments at Head Office - StCBs .......................................... 34
5. Assessment of Human Resources ........................................................................ 38
Bank and Branch Classification ............................................................................... 38
Organisation of Departments................................................................................... 38
Gradation of Manpower ........................................................................................... 39
Staff Deployment for Head Office ........................................................................... 40
Staff Deployment at Head Office – StCB ................................................................ 40
Category ‘A’ StCB can reassess their staff requirement with increase in business
volume. .................................................................................................................... 40
Staff Deployment at Head Office – DCCB ............................................................... 41
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Category ‘A’ DCCB can reassess their staff requirement with increase in business
volume. ..................................................................................................................... 41
Deployment at Divisional Office/ Regional Office – StCB....................................... 42
Staff Deployment at Divisional Office/ Regional Office – DCCB ............................ 42
5.11 Staff Deployment at Branches of StCB and DCCB ............................................ 43
Staffing Pattern for Branches of DCCBs .................................................................. 43
6. Recruitment Process ............................................................................................. 44
Process of assessment of staff strength .................................................................... 45
Process of recruitment ............................................................................................. 47
Fixing entry level for recruitment ............................................................................ 49
Entry level qualification and experience for recruitment ........................................ 50
Identification of areas suitable for outsourcing ....................................................... 50
Recommendations: .................................................................................................. 51
7. Promotion and Placement .................................................................................... 52
Promotion / Recruitment at senior level post: ........................................................ 55
Performance Appraisal............................................................................................. 56
Performance Appraisal Reports (PARs) .................................................................. 56
8. Computerisation and IT in Cooperative Bank ...................................................... 58
Technology adoption by Co-operative Banks .......................................................... 58
Background: ............................................................................................................. 58
NABARD’s Role: ....................................................................................................... 59
Issues & challenges in technology adoption ........................................................... 60
Initiatives of NABARD ............................................................................................ 60
Post CBS the expected IT enabled services to be offered by banks are: .................. 61
Present Scenario: ..................................................................................................... 61
9. Training and Capacity Building in Cooperative Banks ........................................ 67
Introduction ............................................................................................................. 67
Training Policy in Cooperative Banks ......................................................................68
Assessment of Knowledge Gap – Overcoming through Training ............................ 69
Training needs of staff and officers of StCBs/ DCCBs: ............................................ 70
Specialised Training ................................................................................................. 71
Role of Cooperative Training Institutions (CTIs) .................................................... 72
9.21 Training Analysis across the States in DCCBs: ............................................. 73
Conclusions .............................................................................................................. 74
9.22 Current Status of Training in the Cooperative Banks: .................................. 75
9.23 Standardisation of Training Design and delivery: ........................................ 75
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9.24 Recommendations: ....................................................................................... 78
10. Two Tier Structure ........................................................................................... 80
Structure and function of Two Tier StCB ................................................................ 80
Human Resource Analysis ....................................................................................... 82
Bank Categorisation and Staff Deployment ............................................................. 83
Recruitment, Promotion and Transfer Policy ..........................................................86
11. Enabling Policy /framework for Effectiveness of HR ....................................... 87
12. SUMMARY OF RECOMMENDATIONS .......................................................... 93
Loan Policy & Profitability/Viability ...................................................................... 109
ANNEXURE – I HO Department Structure of StCBs .............................................. 112
ANNEXURE – II HO Departmental Structure for CCBs ......................................... 116
ANNEXURE - III MODEL FORMAT OF PERFORMANCE APPRIASAL REPORT
..................................................................................................................................... 121
ANNEXURE – IV DATA SUMMARY ...................................................................... 129
ANNEXURE – V ........................................................................................................ 132
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1. INTRODUCTION
Background
1.1. Cooperatives are special type of institutions that have to combine the
credit business objectives with social objective and reflect the principles of
democratic control. In a situation where the farm size is fragmented and small,
it assumes all the more importance. In India, the cooperative credit business is
assigned to credit societies and non-credit business is assigned to various types
of functional societies. The lower tier, namely the primary credit societies are
allowed to undertake both credit and non-credit functions. The credit business
of the higher tier is restricted to credit only and they are licensed as ‘banks’ and
regulated under Banking Regulation Act, 1949 (As Applicable to Cooperative
societies). Thus the functions of a “society” are different from that of “banks”.
However, the banks are handled administratively like that of society because
they are registered as societies but regulated as banks. This duality is the main
cause of weakness of today’s cooperative credit system. This lack of delineation
in administration and regulation has been continuing for long without adequate
resolution.
1.2. The Co-operative Banks have, over the years, taken initiatives to reform
themselves so as to keep pace with the changing scenario in the banking sector
and rural credit market. However, such initiatives are neither adequate nor
oriented to meet the fresh challenges arising out of technology adoption and
new regulatory policies of RBI. Major issues that have been cited repeatedly as
a cause for slow reforms are inadequately qualified manpower, lack of
appropriate HR policies, lack of professionalism in governance and
management, slow technology adoption, poor internal checks and control, lack
of customer grievance resolution mechanism etc. In order to bring about
change in governance and management and also for ensuring professional
operation in co-operative banks, a Package for Revival of Short Term Co-
operative Structure (STCCS), was implemented with limited success.
Recommendations of Mitra Committee which was a part of follow up action to
the Revival Package, set certain benchmarks in human resource planning and
development of co-operative banks.
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1.3. Today, banking is driven by service orientation for customer retention.
The contribution of Human Resource in the efficient and effective delivery of
technology-oriented products and service to customers and ensuring the
profitability for long term sustainability of banks can hardly be
overemphasized. In case of Cooperative Banks, the responsibility extends much
beyond the normal domain of banking, as overall welfare of the
farmers/members and prosperity of rural areas is the primary responsibility of
these banks, as per the mandate of the system.
1.4. In order to draw a map of organizational initiatives taken so far and to
prepare an indicative action plan for future, it is expedient to consider the
developments in the ecosystem, and then take a relook at the overall
operational change required in the co-operative banks.
1.5. Apart from obvious developments in conditions external to the banks,
some of the endemic factors within the co-operative banking system have also
necessitated a fresh look at the issues to chart a way forward relating to
professionalization in co-operative banks at each level from governance to
member level. Some of these issues have been summarized below.
i. In spite of reform process initiated for management and governance
under Revival Package for Short Term Cooperative Credit Structure
(STCCS), the structural deficiencies and weaknesses are experienced
with extensive influence of State Governments in their functioning.
ii. Technology adoption is slow and not uniform across the country. In
some District Central Cooperative Banks (DCCBs)/State Cooperative
Banks (StCBs), the gains from implementing Core Banking Solutions(
CBS) are yet to be realised by way of introduction of new technology-
enabled products and services.
iii. Though the cooperatives are supposed to be member driven institutions,
the members' participation in the governance and management is
ineffective on account of undue importance of election compared to
continuous participation in governance.
iv. The Board of Directors are often not effective in taking prudent business
decisions in the interest of banks.
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v. Due to personnel not being tech savvy with high age profile and lower
qualifications, changing the orientation of the Human Resource
Development is becoming more challenging for delivering new age
banking facilities in a sustainable manner.
vi. The ‘Fit and Proper” criteria stipulated for appointment of Chief
executive Officer (CEO) is yet to be complied by many banks.
vii. Organisational structures imply allocation of roles and responsibilities
for deliverables and accountability which is still not present in the
Cooperative Bank.
viii. The development of cooperative banks with competitive edge has eluded
the system due to lack of clarity and unity of command in the
governance structure.
1.6. Mitra Committee recommendations have been well received across the
country. They have been fully adopted in 13 States and partially in 2 States.
Taking into consideration the internal weaknesses of Cooperative Banks and
the changing rural banking landscape, a need to review the earlier initiatives in
organization and management and prepare a new framework for Human
Resource Development in these banks, was felt necessary. As a follow up to the
suggestions received during annual consultations with cooperative banks in
this regard, it was decided to relook at the HR policies in the cooperative banks.
1.7. Based on the suggestions received from various quarters, including
National Federation of State Cooperative Banks (NAFSCOB), Chairman,
NABARD constituted a "Committee for Assessment of Human Resources of
STCCS in the Post CBS Environment" (hereinafter referred to as the HR
Committee) under Chairmanship of Shri R Amalorpavanathan, Deputy
Managing Director, NABARD. The detailed constitution of the Committee is
presented in the following table:
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1 Shri R Amalorpavanathan, Deputy Managing Director, NABARD
Chairman
2 Shri Kishan Singh Atoria, IAS, Principal Secretary Cooperation, Government of Uttar Pradesh
Member
3 Shri S S Sandhu, IAS, Additional Chief Secretary, Cooperation, Government of Maharashtra
Member
4 Shri K Ravindra Rao, Chairman, Telangana State Cooperative Bank
Member
5 Shri Pradip Vora, Chief Executive Officer, Gujarat State Cooperative Bank
Member
6 Shri V D Godara, Managing Director, Rajasthan State Cooperative Bank.
Member
7 Shri T K Panda, MD, Odisha State Cooperative Bank Member
8 Shri Pradeep Naik, Chief Executive Officer, Raigad CCB , Maharashtra
Member
9 Dr U S Saha, Chief General Manager, Institutional Development Department NABARD
Member Secretary
1.8. Subsequently, following two additional members were co-opted by the
committee.
i. Dr N Muralidhar, Managing Director, Telangana State Cooperative Bank
ii. Additional Registrar of Cooperative Societies, Government of Uttar
Pradesh
1.9. The Committee also consulted specialized personnel from the field of
Cooperatives, Institutions (BIRD, IDRBT), and experts in banking technology
, investment, risk management etc.
Terms of Reference(TOR)
1.10. The detailed TOR of the committee are given below:
i. To review the present status of Human Resources in State Co-operative
Banks(StCB) and District Central Co-operative Banks(DCCB).
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ii. To study Human resource requirement in the post CBS scenario with
special reference to adoption of CBS & IT products by co-operative
banks with new business and also the regulatory framework.
iii. To study and recommend a preferred organisation structure in StCB and
DCCB.
iv. To assess manpower and skill requirement under various categories of
staff for professionalization.
v. To examine capacity building and training strategy for the staff of co-
operative banks.
vi. To make appropriate recommendations for Human Resource
Development
vii. Any Other aspect as the Committee may deem appropriate.
Approach and Methodology
1.11. Based on the overall mandate given to the Committee and the TOR, the
methodology was finalised in the first meeting of the HR Committee held on 28
September 2016. A broad approach to the functioning of the Committee is given
below:
i. There will be four Zonal Consultation Meetings with participation of CEO
and other senior functionaries of StCBs and State Government. Accordingly,
the Committee held four consultation meets at Hyderabad, Mumbai,
Kolkata and Lucknow wherein the StCBs made presentations on the status,
future strategy and suggestions relating to human resource of cooperative
banks in their respective States.
ii. The Committee also constituted Sub Committees to look into the following
functional areas of a bank, and the HR requirements related thereon.
a) Treasury and funds management
b) Information Technology in Cooperative Banks
c) Training and Capacity Building
d) Governance and Management
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1.12. The Sub-Committees consisted of subject matter specialists in addition to
members drawn from the HR Committee. The Committee had separate
meetings to make recommendations on the functional areas assigned to them.
1.13. In all, the Committee held four zonal consultation and four sub-committee
meetings. The members of HR Committee had interactions with StCBs and
DCCBs and experts from identified functional areas. The Committee also met
four times separately to deliberate on the recommendations and finalise the
report.
1.14. In order to study the different parameters relating to human resource in
cooperative banks, data was collected through specially designed formats and
the same was analysed to draw conclusions on various aspects of functioning of
Cooperative Banks with special reference to human resource issues. Some of
the financial parameters relevant to the ToR of the Committee were also
collected from ENSURE platform of NABARD for detailed analysis.
Acknowledgement
The Committee places on record, their gratitude to The Chairman, NABARD
for his timely initiative in constituting the Committee.
1.15. The Committee acknowledges the contribution of all StCB and DCCBs
which participated in the exercise, leading to finalization of the Report.
1.16. The Committee would like to thank Dr Harsh Kumar Bhanwala,
Chairman, NABARD for his concerns about cooperative banks and initiative in
constituting the Committee. The Committee also expresses appreciation for the
inputs received from the Chairmen and Presidents, MDs and CEOs of all StCBs/
DCCBs, officials of State Government, members and eminent experts and other
invitees, who provided valuable insights and suggestions. The Committee
particularly expresses gratitude to Dr A S Ramasastri, Director, IDRBT and Dr
R Bhaskaran, Ex-CEO, IIBF for their valuable contribution. The Committee is
indebted to Dr N Murlidhar, CEO Telengana StCB, Shri S C Dwivedi, Additional
RCS, Govt of Uttar Pradesh and MD, UP State Cooperative Bank and MD,
Meghalaya State Cooperative Bank for their active participation in deliberations
of the committee.
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1.17. The entire analysis of the Human Resources of STCCS including
compilation of data as well as data analysis, was efficiently supported by the
team in Institution Development Department (IDD), NABARD, Head Office,
Mumbai. The Committee deeply acknowledges the help received from Dr U S
Saha, CGM, DEAR and Shri A P Das, DGM, IDD who were ably supported by
Smt Surekha Malkhed, AGM, NABARD, HO Mumbai, in ensuring the smooth
conduct of various meetings of the Committee and drafting the report. The
valuable inputs and suggestions received from Shri Nilay D Kapoor, GM, IDD,
HO and Smt Deepa Guha, DGM, CVC, HO are also duly acknowledged. The
meticulous final editing by Smt Usha Ramesh, DGM added much needed value
to the report. In the preparation of the entire document, the role of Smt Vedanti
Khandalkar, Development Assistant (WP-B), NABARD needs special mention.
1.18. The Committee also expresses its appreciation to all the Regional Offices
of NABARD for providing information and organising various meetings from
time to time. The Committee has special thanks to offer to CGMs of Regional
Offices of NABARD in Telangana, Andhra Pradesh and West Bengal and Dr D
V Deshpande Director, BIRD/CPEC and his team of FMs/officers for organising
Zonal Consultation Meets and providing inputs for Sub-Committee Reports.
There inputs helped in analysing the future requirements of training and
capacity building in cooperative banks, as also formulating policy framework
on training.
1.19. The Committee also acknowledges the contribution of Shri Subrata Gupta,
CGM, DFIBT and Shri K V Rao, CGM DOS, NABARD, Head Office for their
active involvement in the Sub-Committee meetings and providing inputs for
drafting the report. Smt Sarita Arora, CGM, IDD also made valuable
contributions.
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1.20. The Committee is grateful to NABARD for the opportunity given to the
Committee and guidance provided. The Committee has made concerted efforts
in analysing the human resource aspect of Cooperative Banks and made
suggestions to the best of knowledge of the Committee.
(R Amalorpavanathan) Chairman
(S S Sandhu) (K R Rao) Member Member (Pradip Vora) (Kishan Singh Atoria) Member Member
(V D Godara) (T K Panda) Member Member (Pradeep Naik) (Dr U S Saha)
Member Member Secretary
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2. STRUCTURE OF SHORT TERM COOPERATIVES
Rural Cooperative Banks in India – A brief overview
2.1. The three-tier cooperative credit structure operating in 20 States has a
State level bank and DCCBs operating at district(s) level through their branch
network and Credit Societies at the grassroot level. In three of these 20 States
viz., West Bengal, Jammu and Kashmir and Himachal Pradesh, the StCBs not
only operate through their branch network but also through the DCCBs. These
StCBs have a limited number of branches to undertake their day-to-day banking
function apart from supplementing the functions of DCCBs. There are 13 States
where two-tier system exists wherein the banking operations are conducted
through branches of StCBs across the State. As with all cooperatives, Primary
Agriculture Credit Societies (PACS)/ Large Agriculture and Multi-Purpose
Societies (LAMPS) / Farmers’ Service Societies (FSS) form the lowest tier in the
cooperatives. All types of such primary credit societies are generally referred to
as PACS.
2.2. The branches of StCBs in three-tier structure largely operate as link
branches to facilitate financial transactions with DCCBs. In case of DCCBs in
three-tier structure and StCBs in two-tier structure, the branches operate as
business delivery units for conducting business directly with individuals as also
with all affiliated societies of the bank. Hence, branches of DCCBs/StCBs (two-
tier) need to have sufficient manpower to deal with societies and supervise their
functions as bulk of the banks’ business is routed through these societies.
2.3. The STCCS comprises 33 StCBs, 370 DCCBs and 91,356 PACS as on 31
March 2016. The PACS have individuals as member shareholders who are
mainly farmers. These PACS along with other non-credit societies are federal
member shareholders of DCCBs at district level.
2.4. The DCCBs along with other State level credit and non-credit societies are
federal member shareholders of StCBs. In some States, the PACS are directly
federated at the StCB level to form the two-tier system. The StCBs and DCCBs
operate through branches and in some States, even PACS have their branch
network. There are 13 StCBs having 475 branches in two-tier system and 20
StCBs having 655 branches in three-tier system. The DCCBs affiliated to the 20
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StCBs have a network of 14,071 branches. In all, the cooperatives with more
than 1,00,000 outlets form the largest rural credit network in the country.
the 33 StCBs, 19 are listed in the Second Schedule of RBI, as “Scheduled
State Cooperative Banks”.
2.5. The StCBs and DCCBs carry out their operations with Head Office at
the top and branches providing banking services to the customers. In some
cases, Regional/ Divisional Offices operate as intermediary controlling
units to have a better supervision over branches/affiliated entities. These
structures evolved before 1960 in India when the business delivery methods
were very different.
Table No. 2.1
Business Analysis
Total Business of Rural Cooperative Banks (RCBs) (` in crore)
Total Business
2011-12 2012-13 2013-14 2014-15 2015-16
StCBs 162670 187774 207484 217404 232111 DCCBs 345369 392098 439890 476263 540977
2.6. Between 2011-12 and 2015-16, the annual average growth rate of total
business comprising credit and deposits in StCBs was 10.67% whereas in
case of DCCBs, annual average growth rate was 16.3%. The Annual Average
growth rate of deposits for StCBs was 7.06% and DCCBs was 12.16%. The
rate of growth of deposit in DCCBs is in tune with the industry average. The
growth rate of loans and advances of DCCBs during last five years has been
around 15.01% and that of StCBs was 11.87%. The higher growth of
advances compared to deposit growth involves more refinance and capital
support.
2.7. Historically, the role of STCCS was to provide only short term crop
loans to farmers through PACS. During the last four decades, the scope of
STCCS has widened to cover non-farm sector, term lending to allied sectors,
micro-finance, etc. However, these were not adequately integrated into the
governing structure of cooperative banks. Moreover, the word ‘central’
cooperative bank evolved to appoint the DCCBs as a single central finance
15
agency for all types of primary cooperatives in its jurisdiction. The traditional
role along with expansion of functional areas enhanced the role of STCCS.
Table No. 2.2
The distribution of branches as per bank and as per business
StCBs No of banks above (below)
the average
DCCBs No of banks above(below)
the average 1. Number of banks 33 _ 370 - 2. Total number of branches
1130 _ 14071 -
3. Average business per bank (` Cr)
7033.67 _ 1459.28 -
4. Average number of branches per bank (No)
34 13 (20) 38 7 (13)
5. Average business per branch (` Cr)
205.41 16 (17) 38.37 131 (239)
6. Average business per staff (` Cr)
17.97 17 (16) 6.53 206 (164)
2.8. Out of 1130 Branches of StCBs, 31% constitute rural branches at 349, 17%
are semi-urban branches at 191, 32% urban branches at 366 and 20%
metropolitan branches at 224. Of the 14,071 branches of DCCBs across 20
States, 55% are rural branches at 7772, 25% are semi-urban at 3572, 17% urban
branches at 2362 and the balance are metropolitan branches at 365. A closer
look at the State-wise branch network indicates an uneven distribution of
branches. The number of branches is the highest in Pune DCCB (261) with the
lowest in Vaishali DCCB (5).
2.9. The national average business per branch in case of StCBs is `205.41
crore. The national average per branch business in case of DCCBs is `38.37
crore. There are 236 DCCBs that have per branch business less than the
national average. The financial strength of branches is determined by their
business growth and viability of a branch in terms of volume of business and
the interest margin actually earned. The earnings are from the active credit
portfolio and other fee-based income. A branch with large business portfolio
may not necessarily have adequate margins unless the portfolio is actually
earning and the pricing of loans is appropriate. In the absence of diversified and
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an effectively performing portfolio, the branch viability is seriously
affected. Also, brick and mortar branch with inadequate technology adds to
cost of operations. It is estimated that a branch needs diversified business
volume of about ` 50 crore to function viably with minimum staff of 3-4.
2.10. The average business per staff in the case of StCBs varies from `95
lakh in Arunachal Pradesh to ̀ 69.84 crore in Odisha. The business per staff
at DCCBs range from ̀ 1.37 crore in Dhule Nandurbar DCCB to ̀ 24.86 crore
in Ernakulam DCCB. Assuming a gross cost per employee on an average,
on cost-to-company basis, at `1.50 lakh per month and an overhead cost of
`25,000 per month per employee, with 50% recovery rate, the viable per
staff loan portfolio requirement works out to `5 crore. This assumes a CD
ratio of 50% on a conservative estimate with realisable spread of 1.5%.
2.11. The national average deposit per branch of DCCBs is ̀ 21.14 crore and
the average deposit per staff is ` 3.60 crore. The per branch and per staff
deposits is highest at ` 131.86 cr and ` 17 crore in Ernakulam DCCB in
Kerala and the lowest was recorded in Sagar DCCB (MP) at ` 3.67 crore and
Vizianagaram (AP) at ` 0.56 crore, respectively.
2.12. The ‘advances to the total business analysis’ of DCCBs showed that 11
States have higher proportion of advances to their total business with
Telangana leading at 62% of advances to the total business and other 9
states having advances below the national average of 45%, the lowest being
in Jharkhand at 18%. The per-branch advances were highest in Ernakulam
DCCB (` 60.92 cr) with lowest in Giridh DCCB (` 0.55 cr). The advances
portfolio and its growth require prudent management from the point of
view of resource mobilization and optimum capital allocation. This requires
competent staff with high level of professionalism in resource mobilisation,
funds management and adequate provision for capital enhancement.
2.13. Branch viability is of utmost importance for sustainability of a bank.
The Transfer Price Mechanism (TPM) may be devised appropriately by
each bank to assess the viability of branches. The banks may scientifically
work out the viability and may merge/ amalgamate the branches, wherever
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it is not viable. Amalgamations/ mergers may reduce manpower requirement
at the branch level.
2.14. The national average CD ratio of DCCBs as on 31 March 2016 was 81.4%
with 146 DCCBs falling short. The Dumka DCCB in Jharkhand had the lowest
CD ratio at 8.2% and the Raisen DCCB in Madhya Pradesh had the highest CD
ratio at 447.8%. In the case of StCBs, the national average CD ratio was 112.4%
with 21 banks below the average. The highest CD ratio was observed in Punjab
StCB at 291.8% and the lowest was in Jharkhand StCB at 6.4%. With the
prevailing high level of NPAs in banks and the consequent requirement for
adequate capital to support loan portfolio, the banks have to take into account
adequacy of capital to keep pace with growth in advances, pricing of loan
products to give positive (reasonable) spread, diversified loan portfolio to
prevent concentration risk and better recovery management to have better
asset quality.
2.15. A review of the recovery position in DCCBs shows that the national
average is at 70.4% with 143 DCCBs being below the National average and 221
DCCBs above the National average. Jaunpur DCCB had the lowest recovery
level of 0.12% and the 19 DCCBs have 100% recovery. The National average
gross NPA level was 9.3% with 0.4% in Satara DCCB and 99.9% in Jaunpur
DCCB, while as many as 208 DCCBs had NPA below national average. Among
the StCBs, Haryana had gross NPA of 0% and Manipur had the highest at
90.5%. One of the reasons for the low recovery level is the lack of staff being
deployed for recovery drives. A natural response for inadequate manpower may
be to restrict lending to manageable levels. However, banks lend recklessly
without adequate follow up leading to poor recovery. The Boards should review
the NPA positions periodically and ensure adequate attention for the same. The
State Govts may ensure the banks make efforts to keep the NPA levels low.
2.16. The National Investment to Deposit (ID) Ratio in respect of DCCBs was
53.5%, with 186 DCCBs below and 179 DCCBs above the National average. The
National average percentage of SLR investments to the total investments in
DCCBs was 37.8% and that of non-SLR investments to total investments was
6%. Almora DCCB in Uttarakhand had the highest investments in SLR
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instruments at 99.4% of the total investments. Shahjahanpur DCCB in UP
had the highest non-SLR investments at 80.5%.
2.17. The National average ID ratio was 66.1% for StCBs with 18 StCBs
below the National average. The percentage of SLR investments to the total
investments was the highest in Telangana StCB at 98.1% and the highest
for non-SLR investments was the highest in Manipur StCB at 78.2%. Such
high ID ratio implies that the banks do not deploy the resources adequately
for lending.
2.18. Investment is a specialized area where the banks have to realise
adequate return to cover the cost of funds and overheads. At the same time,
the regulatory compliance also needs to be ensured. Investment is not like
fixed deposits, as the value of instruments fluctuate as per market
conditions, even when the bank takes no action after making an investment.
The SLR investments in Government Securities (GSecs) are generally long
dated instruments and are highly volatile depending on coupon rate and
maturity. In managing Asset/ Liability, selection of suitable instruments
for investment must take into account the market liquidity for exiting. Most
staff in the banks especially Board level and senior staff do not have
adequate understanding about the performance of investment portfolio in
terms of yields. Investment portfolios of most banks are thus
underperforming due to poor selection of appropriate instruments.
Therefore, it is necessary that a set of personnel with right type of skills,
aptitude and knowledge need be identified and reskilling is done
periodically.
2.19. High Investment to Deposit ratio and corresponding low CD ratio are
generally attributed to lower profitability in credit portfolio, which may be
due to higher level of NPA. The contrary position is also true. Higher
investment may not always give better yield, which may vary as per market
conditions. However, a scenario with high CD ratio and low ID ratio is
highly risky. If there is larger delinquency in credit portfolio, banks would
neither be able to repay the higher financing agency, nor be able to maintain
adequate SLR. In addition, they would suffer from liquidity crunch and
may not even be able to service their depositors.
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2.20. Prudent fund and investment management has to comply with CRR/SLR
regulation and banks also need to maintain adequate liquidity to meet
repayment obligations, servicing of deposits and earn positive net interest
margin. This requires well-qualified and trained staff with high integrity in
handling larger portfolio. Recruiting qualified staff and training of at least 5-10
staff is an absolute necessity in every bank. As such, fund management and
investment training should be made compulsory for all officials in the senior
management.
2.21. High CD ratio is not desirable as it indicates high level of credit risk and
over dependence on higher financing agencies. This may result in low Capital
to Risk Weighted Asset Ratio (CRAR). The banks may make efforts to bring
down the CD Ratio to around 100% progressively over a period of time.
2.22. The banks with low CD ratio combined with high ID ratio may rationalise
the interest rate on deposits to retain their serviceability and improve their
lending portfolio. To this extent, a minimum CD ratio may be made part of the
lending norm by NABARD.
2.23. The CD ratio may be factored into the Refinance Policy of NABARD. The
borrowing level of banks other than deposits may be brought down
progressively to 25% of credit outstanding in a gradual manner.
Profit/ Loss: Number of Banks
2.24. The profitability of a bank indicates that the bank is functioning on sound
financial principles and the table below indicates the various trends in the
profit/ loss of the StCBs and DCCBs.
Table No. 2.3 Number of StCBs/ DCCBs in Profit/ Loss 2011-12 2012-13 2013-14 2014-15 2015-16 StCBs – Profit
27 29 26 28 28
Loss 4 3 6 4 5 Accu. Loss 8 7 8 7 8 DCCBs – Profit
328 330 329 300 319
Loss 42 40 38 59 51 Accu. Loss 116 110 103 108 104
20
2.25. Notwithstanding the fact that there are varying number of StCBs and
DCCBs reporting losses in respective years, their number is range bound.
Similarly, the number of banks burdened with accumulated losses over the
years has remained stagnant. The stagnant performance of both StCBs and
DCCBs indicates the lack of planned recovery for showing sustainable
progress.
Table No. 2.4
Amount of Profit/ Loss of StCBs/ DCCBs (`. in crore) 2011-12 2012-13 2013-14 2014-15 2015-16
StCBs – Profit
759.90 1109.76 739.00 1105.14 867.51
Loss 168.13 4.32 93.55 24.94 113.83 Accu. Loss 742.07 568.1 695.84 616.76 697.30 DCCBs – Profit
1511.46 1704.39 1731.93 1819.75 2704.37
Loss 332.25 336.02 354.41 1044.29 567.46 Accu. Loss 4345.16 4139.46 3978.55 3821.05 4781.97
2.26. Although the number of StCBs incurring losses remained around 3-6,
the total quantum of loss were on a decline. The number of DCCBs
incurring losses and overall quantum of loss has not shown any significant
trend during last five years, except for the year 2014-15 when there was an
abrupt spurt in loss by DCCBs.
2.27. The accumulated losses of StCBs in terms of quantum has declined
marginally. Even the number of banks having accumulated loss has
remained almost same. The number of DCCBs having accumulated losses
has not shown much improvement and the total accumulated losses has
gone up marginally over last five years.
2.28. The total accumulated losses in 104 DCCBs amounted to ` 4781.97
crore as on 31 March 2016. The number of banks with accumulated losses
has declined marginally 108 as on 31 March 2015 to 104 banks during 2015-
16. In a few banks, the losses were increasing. The banks with accumulated
losses had a staff cost (calculated as a percentage to working fund) ranging
from 1.47% (Mathura DCCB) to 2.08% (Deoaria Kasia DCB). Amongst
these banks, the percentage of staff cost to Gross Income ranged from
2.95% in Nawadah DCCB to 45.69% in Basti DCCB. The number of DCCBs
21
below the National average of 13.14% in staff cost to income ratio were 30
DCCBs and above were 74 DCCBs. In a few banks, there were large number of
of staff who were not qualified and could not generate adequate volume of
business. The presence of a large number of unskilled officers accounted for
high proportion of staff cost, with low productivity. Another reason for
decreased level of efficiency was the prevailing promotion policy of the banks
which not based on scientific process of evaluation and favoured inadequately
skilled personnel.
2.29. The banks should focus on reskilling of existing staff and maintain a good
motivational climate. In order that the banks do not add unnecessary costs,
banks may consider providing increments, as it is now with slight modification
for JAIIB/CPCB I and/or CAIIB/CPCB II instead of JAIIB/CAIIB.
Financial Ratios:
2.30. The cooperative banks operate in a predefined segment of the credit
market where they have narrow options for cross-subsidisation. As a result,
during 2015-16, the average yield on assets at the National level for DCCBs was
8.27% and in the case of StCBs, it was 7.46%. Such low yields on assets could be
largely attributed to preponderance of crop loans in the overall credit portfolio
of the banks. As such, crop loans are provided at a regulated interest rate of 7%
with 2% subvention, taking the gross yield to 9%. The sharing of 2% across the
three tiers of STCCS leaves a very slender margin. However, the banks continue
to increase the short term portfolio, leading to higher earnings at risk.
2.31. Taking into account, the average cost of funds at DCCB level at 5.96% and
the StCB level at 6.10%, the return on assets for both the tiers was reduced by
around 0.3%. Such a scenario calls for a more diversified loan portfolio and
higher mobilization of low cost deposits through competitive branch banking,
with the help of technology and appropriate manpower.
2.32. In the late nineties, RBI withdrew interest rate directives with a view to
give flexibility to all banks to price their products competitively. Later for
commercial banks, this was made part of their mandatory disclosure to RBI.
But for cooperative banks, in the name of achieving uniformity, the State
Governments started prescribing interest rates on loans. These prescriptions do
22
not have adequate basis and are largely detrimental to depositors and have
a negative bearing on the solvency of the banks. Like in the case of
commercial banks, RBI/NABARD may consider prescribing a broad
framework for fixing of interest rate by cooperative banks, so that the
pricing is driven by the strengths of the banks, with certain limited
flexibility.
2.33. Asset Liability Management Committee may be given adequate
training especially in pricing of credit, interest rate risk management,
earnings at risk and liquidity management. The Board members may also
be sensitised in this aspect.
Capital adequacy
2.34. The banks and the societies are issuing shares at a price equivalent to
face value every time the capital is issued. This has no relevance to the time
value of money or book value of share and the actual realisable value of
share capital. Share capital is the claim of shareholders on the realisable
value of all assets which are accruing to the banks/societies from time to
time. Therefore, issuing share capital at face value all the time is not
appropriate. Hence the banks and societies may introduce the system of
issuing shares at a minimum price at least equivalent to book value per
share as at the end of previous year. The share premium if any may accrue
to the reserves.
2.35. The State Govt share contribution may be restricted to 25% and the
balance, if any, may be converted as Long Term Debt for counting the same
as Tier II capital.
23
3. HUMAN RESOURCE ANALYSIS
3.1. The STCCS has almost one lakh personnel in different grades working
across 15201 branches. Though operating as banking institutions, the nature of
the organisation and human resource employed in cooperative banking system
is distinctly different from that of commercial banks. Such differences largely
stem from various factors summarised below.
i. The overall business milieu of the Cooperative Banks is rural and agrarian.
ii. The area of operation is geographically limited.
iii. The people employed are largely from within the State.
iv. The ownership of the bank is member based who are also customers of the bank.
v. There is unusual proximity between employees and Board of management of the bank.
vi. The process of recruitment in many cases is not strictly professional.
vii. Most staff recruited do not have adequate qualifications and have joined
the banks as sub-staff/clerical grades and then promoted to officer
cadre.
viii. For long periods, there was neither recruitment nor promotions at
officer level.
3.2. In view of the above, the professionalism and business efficiency
associated with staff is found to be lacking. All these factors form the basis for
the overall poor human resource profile of the cooperative banks. However, to
draw certain inferences based on tangible parameters relating to human
resources, analysis has been undertaken in the following paragraphs.
Number and cadre
3.3. The hierarchical structure in most cooperative banks can be broadly
divided in to three categories of staff viz., officers, clerical and sub-staff. The
officers’ cadre, other than CEO of the bank, can be largely divided into three
segments viz., junior management, middle management and senior
management. The junior management grade is largely populated by officers of
24
the lowest two rungs viz., Assistant Manager or Junior Manager and Manager.
While the middle management consists of Senior Manager or Chief Manager
and Assistant General Manager (AGM), the senior management is represented
by Deputy General Manager (DGM) and General Manager (GM). In some StCBs
there is also Chief General Manger (CGM). The data collected from different
banks indicate that there is no uniformity in categorisation of officers.
3.4. In clerical cadre, the designations are Banking Assistant or Junior
Accountant. Included in the sub-staff category are largely peons, watchman,
driver etc. From the analysis of the data received, the proportion of different
grades of staff to the total staff is tabulated below.
Table No. 3.1
Category wise staff composition in StCBs and DCCBs
StCBs/DCCBs Officers as % to total staff
Clerical as % to total Staff
Sub Staff as % to total Staff
StCBs 34 41 25 DCCBs 29 47 24
3.5. Consequent upon computerization, the proportion of officers to total staff
strength has gone up as most of the work relating to clerical and sub staff has
been restructured. As per the data for 2015-16 available with RBI, the
proportion of different category of staff in nationalised banks out of Scheduled
Banks is given below.
Table No. 3.2
Deployment of staff in branch
Scheduled Bank/ Nationalised Bank
Officers as % to total staff
Clerical as % to total Staff
Sub Staff as % to total Staff
Scheduled Bank 59 28 13 Out of above nationalised bank
48 35 16
3.6. The deployment of staff in branches is a crucial factor for healthy growth
of cooperative banks. In these banks, the major borrowers being societies, a
proper control and supervision over societies assumes importance to maintain
asset quality. The staff strength is comparatively higher in the branches of
StCBs. In case of DCCBs, the staff strength is sub-optimal and is not sufficient
to undertake field supervision in large areas. As per the sample data, in 31% of
25
DCCB, the average officer per branch is even less than one indicating that either
the branches are manned by sub staff or one officer is in charge of more than
one branch. The situation is more pronounced in Bihar and parts of Haryana
and Rajasthan.
Table No. 3.3
Deployment of Staff in StCB and DCCBs StCB/DCCB Average Staff deployed
per branch Average Officer per Branch
StCB 7.15 2.10 DCCB 4.34 1.41 RRBs 4.04 2.26
Qualification, Knowledge and Skill
3.7. As per available data on the basic educational qualification for StCBs and
DCCBs shows that majority of the officers and clerical staff are graduates or
post graduates which enables them to operate majority of the functions of the
bank. Moreover, they are amenable to acquiring additional qualification
relevant to the functioning of the bank and at the same time can be trained for
acquiring specialized skills relating to the operation of the bank. However, data
in respect of specialized qualifications or technical qualifications is not very
encouraging.
Table No. 3.4
Percentage Composition of staff as per qualifications
Qualification of staff StCBs DCCB
Officers having graduate/Post Graduate Degree 80.00 83.31
Officers having Technical Qualification 8.98 5.59
Officers having CAIIB Qualification 6.03 1.72
Clerks having graduate/Post Graduate Degree 64.65 7.17
Clerks having technical qualification 8.75 2.38
Clerks having CAIIB qualification 5.15 0.49
Sub staff having graduate/Post Graduate Degree 7.69 5.45
3.8. The data presented above indicates two negative features in the HR policy
of the cooperative banks. There was inadequate recruitment of specialized
manpower with educational background like CA, MBA, B.Sc/M.Sc (Agri) and
26
related subjects, IT, Law, cooperative management etc. There was no system of
incentivizing staff acquiring relevant qualification while in service.
3.9. As part of the exercise to make a proper assessment of human resources
presently available in cooperative banks, a mapping of the age profile was
undertaken in both StCBs and DCCBs. The data is presented in table below.
Table No. 3.5
Percentage distribution of staff in StCBs by age (% to total staff)
Category 20-30 years
30-40 years
40-50 years
50-55 years
Above 55 years
Senior Officers 0.00 5.95 42.86 16.67 34.52
Mid-Level Officers 8.48 12.5 29.46 15.63 33.93
Junior Officers 10.03 13.93 23.96 34.54 17.55
Clerical Staff 28.68 33.53 24.81 8.33 4.65
Sub Staff 17.32 21.49 28.07 16.45 16.67
Grand Total 17.20 21.60 27.09 17.75 16.35
3.10. In StCBs, the majority of staff fall under 40-50 years age bracket
indicating a positive age profile of the overall staff position. However, in
officers’ category across all levels, more than 50% of officers fall in the above 50
years bracket. In the clerical category, the age profile of the staff is
comparatively young.
Table No. 3.6
Percentage distribution of staff in DCCBs by age (% to total staff)
Age in Yrs 20-30 year
30-40 year
40-50 year
50-55 year
Above 55 year
Senior Officers 0.79 5.95 17.66 30.95 44.64
Mid-Level Officers 3.50 7.30 23.37 33.55 32.26
Junior Officers 3.50 10.39 35.39 31.10 20.62
Clerical Staff 17.86 28.63 27.57 16.68 9.23
Sub Staff 9.95 18.07 32.32 23.52 16.11
Grand Total 11.41 20.33 29.63 22.84 15.76
3.11. Even though the overall age profile of the staff is more concentrated in the
age bracket of 40 – 50, the age profile of officers tends to be more towards above
27
50 and in case of senior and mid-level officers, percentage of officers above 50
is more than 75% and 65% respectively. As more than one fourth of officers are
retiring in next five years in both StCBs and DCCBs, the banks may have to
recruit officers to prepare a proper succession plan.
Table No. 3.7
Percentage of staff retiring in StCBs and DCCBs
Categories StCBs DCCB
% of Officers retiring in next 5 years 26.16 28.14
% of clerical staff retiring in next 5 years 12.39 10.47
% of sub staff retiring in next 5 years 14.84 20.19
Employee productivity
3.12. The employee productivity of a bank is expressed in terms of per employee
business (Deposits + Advances). The analysis of business data reveals that per
staff business in case of StCBs works out to ` 1812.24 lakh which compares well
with average business per employee of commercial banks at ` 1411.00 lakh and
of RRBs at ` 590.00 lakh. However in case of DCCBs, the average business per
employee is ` 653.78 lakh only. The average business of StCBs cannot be
compared with that of DCCBs or commercial banks as a major portion of
business - both deposit and advances is institutional in nature. However, the
DCCBs need to improve their business level to come close to the industry
average to fully realize the potential available in the sector.
Cost Analysis
3.13. The analysis of staff cost in relation to other financial parameters of both
StCBs and DCCBs exhibits a rather encouraging trend. In case of StCBs, the
average percentage of staff cost to total expenses and income is 7.26% and
6.98% respectively. In case of DCCBs, the same is 13.51% and 13.10%
respectively. In case of commercial banks, these ratios are 13.28% and 10.41%
respectively. However, in case of RRBs, the staff cost as a percentage of income
and working fund is 19.38% and 1.8% respectively. The staff cost indicator is far
lower than the industry average in case of StCBs, while the same is marginally
higher in case of DCCBs. As per Mitra Committee recommendations, the
28
optimum staff cost as percentage of working fund was pegged at 2% and in
comparison, for StCBs it is 0.55 % and for DCCB the same is 1.14%.
Conclusions
3.14. The officers’ strength in most of the banks is sub-optimal leading to low
business growth and poor delivery of services.
3.15. The deployment of officers in branch is below minimum requirement as
in many states average officer per branch is even below 1, indicating no officers
in branches or one officer manning more than one branch.
3.16. Keeping in view the new operational environment post CBS, the role of
sub staff in banking operations has declined. However in proportion, the
number of sub staff to total staff is high in cooperative banks in comparison to
commercial banks.The same needs to be corrected while assessing manpower.
3.17. More than 80% of officers in both StCBs and DCCBs are either graduates
or post graduates. In case of clerical staff, more than 60% in StCBs and more
than 70% in DCCBs are graduates or post graduates. As they have basic
educational qualification for further training and professional skill
upgradation, cooperative banks may prepare a comprehensive capacity
building plan for officers and clerical staff, keeping in view their job profile and
emerging needs of the bank.
3.18. The entry level qualification for both officers and clerical cadre should be
graduate with knowledge of local language, proficiency in computer operations
and preferably having rural background.
3.19. Lateral entry, wherever required for specialised areas like Treasury,
Information Technology, etc., may be provided for. Where there is less scope
for providing long term career progression in banks like legal services etc., the
services may be availed of by contracting with relevant firms.
3.20. The banks may incentivize staff members to acquire additional
professional qualifications, relevant to the specialised functioning of the bank.
29
3.21. As the staff qualification profile shows a low level of technical qualification
among staff members, the recruitment policy may be framed to accommodate
more people with relevant technical qualifications.
3.22. Though the overall age profile of the staff is below 50, the average age of
around 50% of officers is above 50. The banks need to prepare annual
recruitment plans and recruit at regular intervals to prevent development of
vacuum in crucial and senior positions.
3.23. The productivity level of staff in DCCBs is far below the industry level and
positive correction may be carried out by orienting the profile of staff more
towards officer cadre.
3.24. The cost indicators towards staff related expenses is within tolerable
limits, indicating low cost nature of cooperative banks. With increase in
business volume and higher income, the space to accommodate more
manpower for effective delivery of services can be created. In case of StCBs, the
staff cost to income should be restricted to 10% and to working fund may be
restricted to less than 1%. Similarly in case of DCCBs, the staff cost to income
ratio may be limited to 15% and to working fund may be limited to 1.5% in the
long run. By watching these ratios, the recruitment may be made in a gradually
effective manner.
30
4. CATEGORIZATION OF BANKS AND BRANCHES
4.1. In order to assess the manpower requirement of banks, a necessary
correlation needs to be established between the volume of business and
personnel required in different categories to manage the affairs of the bank
prudently and overall interest spread. Accordingly, an exercise has been
undertaken to classify banks and branches on the basis of their business
volume represented by the summation of deposit and advances. The
exercise has been separately undertaken for StCBs and DCCBs as the nature
of their business and operation varies in three tier structure.
Business Volume Analysis
4.2. Due to the migration of the DCCBs onto the CBS platform, the
parameters for business volume based analysis require modification, taking
into account the work process involved in computerized banking
environment. Thus, there is a need to develop and maintain human
resources, with a focus on the profitability of the banks to attain
sustainability in the changing business environment. An analysis of the
annual average growth rate of business for StCBs and DCCBs based on the
data for last five years indicates that in case of StCBs, the growth rate is
10.7% and that of DCCBs is 16.3%. In the year 2015-16, the total business
volume ranged between ` 906.46 crore of J&K StCBs and ̀ 25,692.80 crore
in respect of Maharashtra StCB. In case of DCCBs, the highest business
volume has been recorded by Kangra DCCB in Himachal Pradesh at `
12,248.14 crores whereas the lowest level of business has been done by
Baharich DCCB in Uttar Pradesh at ` 452.67 crore. However, to get a
complete picture of business volume wise distribution of StCBs and DCCBs,
their categorization has been prepared accordingly so that the same will act
as a base for making proper assessment of human resource of the banks.
Categorisation of the State Cooperative Banks:
4.3. The StCBs have been categorized into A, B, C, and D categories on the
basis of overall business (total deposits and advances).
31
Table No. 4.1
Classification of banks by business volume as on 31 March 2016 (Total deposits + Total advances outstanding)
Category Classification by Mitra Committee
No. of StCBs
Recommended Classification
No. of StCBs (3- Tier)
A Above ` 10,000 crore 1 Above ` 20,000 crore 1
B > ` 5,000 crore and up to ` 10,000 crore
6 Above ` 15,000 crore and up to 20,000 crore
4
C > ` 2,000 crore & up to ` 5,000 crore
7 Above ` 7,000 crore up to 15,000 crore
10
D Up to ` 2,000 crore 9 ` 7,000 crore and below.
5
TOTAL 23 20
Categorisation of StCBs’ branches:
4.4. Branches of banks operate on stand-alone business and their viability can
be assessed on the basis of their cost and return, which ultimately is also a
function of the volume of business. The StCBs in the country operate through
1130 branches in two tier, three tier and mixed structure. The average per
branch business of StCBs is ` 205.41 crore and in case of 16 StCBs, the business
per branch is higher than the national average.
Table No. 4.2
Classification of branch by business volume as on 31 March 2016 (Total deposits + Total advances outstanding)
Category Classification by Mitra Committee*
No. of StCBs(%)
Recommended Classification**
No.of StCBs
A Above ` 500 crore 3.19 Above ` 750 crore 0.47
B Above ` 200 crore and up to ` 500 crore
8.52 Above ` 250 crore & up to ` 750 crore
2.83
C Above ` 50 crore and up to ` 200 crore
24.47 Above ` 150 crore & up to ` 250 crore
9.43
D Up to ` 50 crore 63.82 ` 150 crore and below.
87.27
*Based on a sample of 94 branches **Based on a sample of 212 Branches
32
Categorisation of the DCCBs:
4.5. The DCCBs have been categorized into A, B, C, and D categories on
the basis of business volume (total deposits and advances).
Table No. 4.3
Classification of banks by business volume as on 31 March 2016 (Retail deposits + Retail advances outstanding)
Category Classification by Mitra Committee
No. of DCCBs
Recommended Classification
No. of DCCBs
A > ` 1,000 crore 30 Above ` 4000 crore 31
B Above ` 500 crore and up to ` 1,000 crore
69 Above ` 1500 & up to ` 4000 crore
65
C > ` 200 crore & up to ` 500 crore
148 Above ` 750 & up to ` 1500 crore
115
D Up to ` 200 crore 123 ` 750 crore and below
159
TOTAL 370 370
Categorization of DCCBs branches:
4.6. The audited data available in respect of 370 DCCBs in the country has
been analysed keeping in view the network of around 14071 branches.
Based on the data available for 2015-16, the average business per branch of
DCCB for whole of the country is ` 38.46 crore and branches of 134 DCCBs
exhibit higher than average level of per branch business. Analysis of per
branch business in case of StCBs is inconsequential as majority of the
business is carried out at Head Office level.
33
Table No. 4.4
Classification of branch of DCCB by business volume as on 31 March 2016 (Total deposits + Total advances outstanding)
Category Classification by Mitra Committee*
No. of DCCBs
Recommended Classification**
No. of DCCBs (%)
A Above ` 40 crore 3.98 Above ` 50 crore 21.30
B Above ` 15 crore and up to ` 40 crore
16.10 Above ` 25 crore & upto ` 50 crore
41.26
C Above ` 5 crore and up to ` 15 crore
52.31 Above ` 15 crore & upto ` 25 crore
28.32
D Up to ` 5 crore 27.61 ` 15 crore and below.
9.12
*Based on a sample of 478 branches
**Based on a sample of 3771 Branches
4.7. The modification in classification criteria for both StCBs and DCCBs on
the recommendation made by Mitra Committee was necessitated due to
following reasons.
i. In view of the CBS implementation, the business volume criteria for
classification of banks/branch requires upward revision as investment in
technology may result in increase in volume of business without
commensurate increase in manpower deployment.
ii. In the Mitra Committee report, the deposit figures were computed
based only on the retail deposits mobilised whereas in the present
assessment, the total deposits have been considered i.e., retail as well as
institutional deposits for calculating the business volume.
iii. Due emphasis has also been given for categorization of branches of
StCBs as there is a need for expanding retail business by StCBs due to
following reasons.
a. Due to change in SLR investment norms for DCCBs, there has
been a fall in the deposit position of StCBs.
34
b. StCBs may be permitted to go in for branch expansion, especially
where StCBs have invested in CBS as the technology can be
fruitfully utilized on account of investment in CBS as also the fall
in deposits from DCCBs on account of SLR investments by
DCCBs.
iv. The categorization of bank and branches through objective criteria will
help formulation of uniform policy across the country. The bank may
undertake business planning for the bank and for the branches, along with
manpower planning. This will also help banks in organizing branch network
through relocation and merger to ensure viability of the operations at
branch as well as bank level.
New Developments
4.8. Most of the cooperative banks have adopted CBS and are in the
process of offering CBS+ IT Products/ services with value added banking
products. Consequently, the banks need to reengineer their internal
processes and reorient their manpower deployment, keeping in view, the
advantage gained from CBS as well as expand the scope of their services.
4.9. Apart from technology adoption, the new regulatory requirements of
RBI has necessitated creation of more functional areas, hitherto not
forming part of overall organizational structure of cooperative banks. As a
result, treasury, risk management and ALM are the new functions, which
assume importance within cooperative banks. Such functions, apart from
support for technology adoption, require specialized manpower with
appropriate skill and expertise. Accordingly there may be redundancy of
some functions on account of CBS and creation of new functional areas.
Reorganization of Departments at Head Office - StCBs
4.10. The departments at the head offices of the StCBs/ DCCBs comprise
the following as per the Mitra Committee recommendations:
i. Funds and Accounts
ii. Banking Operations
35
iii. Loans and Advances
iv. Planning and Development
v. Inspection and Audit
vi. Vigilance Cell
vii. HRMD, Board and Gen. Admin
4.11. With the adoption of CBS by the StCBs, majority of the front and back
office functions are not in manual form. The MIS requirements are also met
from the CBS software. However, the operation of CBS and other related issues,
require specialized department for IT related activities of the bank.
4.12. As banking is becoming more competitive and its regulatory landscape is
changing towards higher order compliance, specialized departments need to be
created with staff having expertise in fund management, investment and
treasury operation, ALM and pricing of products. Similarly, banks that do not
have such of those departments which are essential for complying with the
mandatory guidelines of NABARD/ RBI, such specialized departments need to
be formed.
4.13. In the case of the DCCBs too, the migration to CBS platform, has resulted
in the need for formation of a separate IT Cell / Department. The Cell needs to
be manned by staff, qualified to carry out the functions associated with the
implementation of the CBS in the Banks. The placement of the officers/ staff
recruited for the purpose will have to be placed in the Head Office of the DCCBs
as the branches will not be equipped to carry out the CBS functions. In addition,
now it is compulsory for DCCBs to invest in market related instruments for
maintaining SLR and non-SLR investments. This function also needs
specialised staff, qualified in funds and investment management. The
supervisory stance also moves towards risk based approach. It is expected that
the banks should have internal mechanism to manage the risks professionally.
Hence specific knowledge and skill are required for risk management.
4.14. The DCCBs are currently under pressure to keep pace with the growing
competition and the need for business innovation and diversification. The
36
increase in business volume, coupled with diversification, necessitates the
deployment of staff well versed in the appraisal of the projects and schemes.
The structure of a department is suggested keeping in view the nature of
each department and the typical functions performed by the staff of the
departments.
4.15. The role of the Head Office of the DCCBs was earlier limited to that of
controlling the branches, Zonal offices, consolidation of data, liaising with
the StCBs, NABARD, RBI and Government and reviewing of the DCCB on
a regular basis etc., while the branches were looking after the entire banking
business and MIS generation for submission to the Head Office, etc.
4.16. An analysis of the information available on the Departments present
in the Cooperative Banks indicates that the departments that are common
to all the banks are the General Banking and the Accounting section.
4.17. The specialized Departments such as IT, Treasury and Legal
Departments are present in a few StCBs. It is observed that the treasury
functions of the Bank in most of the cases are handled by the Accounts
Department.
4.18. A separate IT Department is present in the StCBs of Punjab, Kerala,
J&K, Himachal Pradesh, Chhattisgarh, Rajasthan and AP and Telangana
(jointly). In the current circumstances, in view of the regulatory norms,
there is a need to ensure that specialized departments are formed to take
care of the special requirements of the banks.
4.19. The basic structure of the Departments is retained with reference to
the Mitra Committee recommendations. However, changes have been
suggested in the department handling duties and responsibilities, which
may either be modified to suit the local requirements with the approval of
the Board. In addition, the department of IT has been introduced in the
post CBS environment. However, the form and items of work involved in
the operation of the IT department may undergo modifications based on
the need to either recruit staff to run the department or go in for
outsourcing/ contract appointment.
37
4.20. In order to bring about uniformity amongst all StCBs/ DCCBs, a typical
structure was suggested by Mitra Committee. The structure of Head Office as
suggested by Mitra Committee, for StCBs and DCCBs is presented in Annexure
I and annexure –II respectively along with the recommended structure in view
of above factors.
4.21. The suggested structure of HO Departments of StCBs (Annexure I) and
DCCBs (Annexure II) is a typical prototype, which will finally determine the
quality and quantity of manpower requirement. The activities mentioned in the
prototype are indicative and not exhaustive. The banks are free to modify the
activities to suit their requirements and get the same approved by the Boards
before implementing the same.
38
5. ASSESSMENT OF HUMAN RESOURCES
5.1. Assessment of human resource requirement in cooperative banks, in both
qualitative and quantitative terms, is one of the major outcomes of the exercise
undertaken by HR Committee. Such assessment, though not prescriptive, will
set benchmark against which banks in different States can frame their HR
Policy.
5.2. During its various deliberations, the present Committee examined in
detail, the criteria and framework set by Mitra Committee for assessment of
manpower and found the overall method adopted by Mitra Committee
appropriate for application in the present context. However, keeping in view
the changed business environment and operations of the banks, the criteria
have been duly modified. The basis of the assessment of the manpower is
explained in brief in the following paragraphs.
Bank and Branch Classification
5.3. In order to categorise the StCBs and DCCBs, business volume
representing deposit and advances, has been taken as parameter. The business
volume as a parameter takes into account, both the work involved in executing
tasks associated with a given level of deposits and advances and the likely
income generated with such volume of business to enable the bank to maintain
a healthy level of staff expenses. Bank categorisation largely determined the
Head Office structure of the bank whereas branch categorisation is uniform
across all categories of banks.
Organisation of Departments
5.4. In order to respond to new challenges associated with new regulation,
business and technology driven operation, there has been a felt need to
restructure departments of Head Office with creation of new functional areas.
Accordingly, the departments have been restructured and the assessment of
manpower has been accordingly recalibrated. Both the above aspects have been
dealt in detail in Chapter 4 of the Report.
39
Gradation of Manpower
5.5. Consequent upon implementation of CBS, there has been a need to relook
at the deployment of manpower at different grades. As some of the functions,
which were part of the repetitive activities, undertaken by clerical staffs have
been taken over by CBS and branch footfall is likely to decline with introduction
of ATMs, card based transactions and Internet /mobile banking, the role of
sub-ordinate staff will be further marginalised. As analysed in previous chapter,
the high proportion of sub-ordinate staff in cooperative banks needs to be
corrected.
5.6. Keeping in view, the role of officers in overall operations of the bank will
be enhanced further and in order to enrich the higher order functions of the
bank, the grades of the staff in various categories have been framed as per
details below.
Table No. 5.1
Category Grades Designation
Officer
Senior Management SM I CGM/GM
SM II GM/DGM
Middle Management MM I AGM
MM II Chief Manager
Junior Management JM I Manager
JM II Asst Manager
Clerk/Computer Operator/Jr. Accountant
Office Assistant
(Multipurpose)
Sub Staff Peon/Messenger (Multipurpose)
5.7. In comparison to the gradation suggested by Mitra Committee, one
additional grade in Junior management has been created to man different
40
categories of branch and at the same time, give officers of junior management
grade opportunity to acquire sufficient operational experience before they
migrate to middle management cadre.
Staff Deployment for Head Office
5.8. The staff deployment at Head Office is based on functional areas divided
in the line of divisions and department. However, based on volume of business,
functional areas have been grouped within divisions and departments to
determine the complement of staff in different grades.
5.9. The CEO of the bank is appointed on the basis of the “Fit and Proper”
criteria prescribed by Reserve Bank of India and he will be responsible for
overall functioning of the bank. Below the position of CEO, the officers of the
rank of CGM/GM will be vested with responsibility of group of departments and
departments are normally headed by officers from SM II. The category wise
deployment of staff is presented in the table below.
Table No. 5.2
Staff Deployment at Head Office – StCB
Business Category of StCB Staff Category A
Above ` 20,000 cr
B Above `15,000 to ` 20,000 cr
C Above ` 7,000 cr to ` 15,000 cr
D ` 7,000 crore and below
Senior Management 10 6 3 2 Middle Management
23 19 14 8
Junior Management 95 80 41 26 Clerical 50 45 37 21 Sub Staff 20 18 16 14 Grand Total 198 168 111 71
Category ‘A’ StCB can reassess their staff requirement with increase in business volume.
41
Table No. 5.3
Staff Deployment at Head Office – DCCB
Staff Category Category of DCCB A
Above ` 4000 crore
B Above `
1500 crore to ` 4000
crore
C Above ` 750
crore to ` 1500 crore
D ` 750 crore
& below
Senior Management
7 5 4 3
Middle Management
8 8 7 6
Junior Management
30 25 23 20
Clerical 30 25 23 20 Sub Staff 13 12 12 12 Grand Total 88 75 69 61
Category ‘A’ DCCB can reassess their staff requirement with increase in business volume.
In case the StCBs/ DCCBs are providing additional services to their customers beyond the normal services offered by Cooperative banks, such banks may augment their staff strength suitably, keeping the staff requirements in view.
Staffing pattern for Divisional Office (DO)/ Regional Office (RO)
5.10 In view of implementation of remote banking through CBS, the role of
DO/ RO has considerably diminished. The HR Committee, on the basis of
suggestions from the members, re-examined the issue and recommended
establishment of DO/ RO in StCB/ DCCB under exceptional circumstances.
However, establishing the DO/ RO may be considered only on the following
grounds
i. StCB/ DCCB having larger volume of business and area of operation
may consider opening DO/ RO after due approval of the Board.
ii. The function of the DO/ RO may be clearly defined – the need to open
these offices with special focus on monitoring of the branches and
societies to facilitate development of business.
42
iii. The opening of the DO/ RO should not entail additional expenditure on
staff beyond that specified in the recommendations.
Table No. 5.4
Deployment at Divisional Office/ Regional Office – StCB
Designation Staffing Pattern (Indicative)
Officer-in-Charge (OIC) MM – II 1
Officers in JM – I 3
Clerical Staff 3
Office Attendants 2
Total 9
Table No. 5.5
Staff Deployment at Divisional Office/ Regional Office – DCCB
Designation Staffing Pattern (Indicative)
Officer-in-Charge (OIC) JM - I 1
Officers in JM – II 1
Clerical Staff 1
Office Attendants 1
Total 4
43
5.11 Staff Deployment at Branches of StCB and DCCB
Table No. 5.6.1
Staffing Pattern for Branches of SCBs
Branch Category
Branch Manager/Officers JM I JM II
JM II(Field Officer)
Clerical
Clerical Gr Field Supervisor
Sub Staff
Total
SM I MMI MMII
A 1 1 2 2 2 3 3 3 17
B 1 1 2 2 2 3 3 14
C 1 1 2 1 2 2 2 11
D 1 1 1 1 1 2 7
Table No. 5.6.2
Staffing Pattern for Branches of DCCBs
Branch Category
Branch Manager/Officers
JM I JM II JM II(Field Officer)
Clerical Clerical Grade Field Supervisor
Sub Staff
Total
MM II JM I
A 1 1 1 2 2 1 3 11
B 1 1 1 1 1 2 3 10
C 1 1 1 1 1 2 7
D 1 1 1 1 2 6
5.12 In order to have a better supervision over societies, one field supervisor at
DCCB Branch level may be posted for every 8 to 10 active societies having
business with DCCB.
5.13 In order to manage the branch and other essential services, a 5% leave
reserve on the assessed manpower may be kept.
5.14 The Staffing pattern suggested above is based on volume of business and
has been moderated based on change in the work process consequent upon
computerisation. However, banks may make their own assessment based on
number of deposit accounts, number of loan accounts and number of active
PACS affiliated and having business with the bank.
44
6. RECRUITMENT PROCESS
6.1. The Co-operative Banking System has expanded its presence over the last
decade with the creation of new States and increase in their areas of operation.
The number of StCBs now stands at 33 and DCCBs at 370 (prior to
amalgamation of 7 DCCBs of Jharkhand with Jharkhand StCB). The total
number of employees stood at 12,914 for StCBs and 82,587 for DCCBs and the
average number of staff per branch was 11 and 6 respectively. As compared to
the position as on 31st March 2016, the assessment at the time of the Mitra
Committee (31 March 2008), was done for the total number of staff employed
i.e, 14,350 in the SCBs and 89,174 in the CCBs. There has been a steady decrease
in the staff strength, coupled with an overwhelming increase in the volume of
business.
6.2. The recruitment, promotion and other policy matters relating to staff in
these banks are governed by the respective banks’ Staff Policy. While RBI had
recommended implementation of a ‘Fit and Proper Criteria’ in the selection of
the CEO, many StCBs and DCCBs continue to have cadre officers not fulfilling
the criteria, as the CEO (as also other functionaries) of the bank. It is therefore
not surprising that the Mitra Committee, in its report had observed that ‘the
policy and practices … are mainly government driven and controlled, and
very few attempts had been made to make critical examination thereof, taking
into account the special needs of these institutions which are essentially
financial institutions.’ The observation remains as true today as it was at the
time it was made. The Committee had, therefore, recommended that the Co-
operative banks, both StCBs as well as DCCBs, should be ‘managed by the
bank’s own personnel, with appropriate qualifications and skills...,’ who are
recruited in a transparent and objective manner.
6.3. In recent times, Cooperative Banks, like other banks are required to
undertake various programmes initiated by the Governments of both the Centre
and the States, to bring about rural prosperity. These include provision of basic
services, linking of Aadhar Cards, propagation of insurance, as also
implementation of various subsidy linked programmes for housing, sanitation,
etc. Further, with the huge advances in technology post CBS, changes in the
45
regulatory policy and the competition that the Co-operatives have to contend
with, in the opening up of their traditional work space to other players like
private sector banks, NBFCs, differentiated banks, etc., it becomes imperative
that the bank assess their staff on the basis of qualifications and experience and
formulate a new recruitment policy to take care of the express needs of the bank
and enable it to operate and succeed in the new business environment.
Process of assessment of staff strength
6.4. The Mitra Committee had recommended categorization of Co-operative
banks on the basis of the business (retail deposits + loans and advances) of the
bank. On the basis of business, StCBs and CCBs had been reclassified into
different categories, based on which the recommendation for the staff strength
was made. Given the increase in business over the years since the Mitra
Committee recommendations and the addition of other items of work not
linked directly to business, it was considered prudent to revisit the limits
specified by the Mitra Committee. The Committee has also examined whether
to categorise banks as per the Working Fund of banks, net of Gross NPAs or
provision. An attempt has been made to suggest fresh categories for re-
classifying banks and branches.
6.5. It is felt that the banks would have to assess the staff requirement on an
ongoing basis, keeping in mind the addition and deletion of items of work,
growth in business volume and activities, the quantum of staff at different levels
who would retire, staff who have left or have taken voluntary retirement will
have to be assessed each year and the necessary manpower requirement arrived
at. The assessment of the staff strength made by the Board need to be approved
in consultation with High Level Committee, taking into account the needs and
financial condition of the bank.
6.6. The Board of Directors of the bank may assess the number of vacancies to
be filled-in and proceed to fill them up based on the approval of staff strength
by competent authority in different cadres, as per the policy framed. These
vacancies shall be assessed every year as per norms and should cover both
existing and those falling vacant during the ensuing year, on account of
46
superannuation, resignation, etc. The number of such posts to be filled-in
should take into account not only such vacancies, but also profitability, Cost of
Management (CoM), Staff Cost, and Government Reservation Policies, etc.
Boards may also be authorized to create supernumerary, non-repetitive posts
up to six months (leave reserves) for persons to be taken in place of lady
employees proceeding on maternity leave. In respect of open market
recruitment which is time consuming due to follow up of procedures prudently,
the banks should plan at least a year in advance.
6.7. Direct Recruitment in most Cooperative banks is traditionally done only
in respect of subordinate staff, clerical staff, and for the entry level officers. In
view of the changing environment where technically skilled officers are
required more, the bank could consider hiring mostly officers – both entry level
and higher, depending on the exigency.
6.8. The Task force on Revival of Rural Cooperative Credit Institutions (VC-I),
headed by Prof. Vaidyanathan, recommended granting of autonomy to the
STCCS in the areas of personnel policy, staff recruitment, staffing pattern. It
recognized the need for qualitative improvement in personnel in all tiers and at
all levels, through capacity building and other interventions, leading to increase
in overall efficiency.
6.9. Further, keeping in view the advent of technology-oriented banking with
IT products, mobile based apps, professional staff is required and hence a new
thinking is needed for making Cooperative banks efficient and more effective
for providing customer services through highly technology-oriented products
and services.
6.10. The MD or CEO may be promoted from the ranks or in the event of non-
availability of such an officer with requisite experience, a professional may be
recruited from the banking sector or open market by an agency. He should
satisfy the ‘Fit and Proper’ criteria as prescribed by RBI. In no case should the
CEO be posted by the State govt. or deputed from it. The bank would therefore
be managed by banking personnel, with appropriate qualifications and skills.
47
6.11. Requirement of officer and other staff need to be assessed appropriately
and required personel may be recruited from market as per the assessment.
Professional manpower will help in providing better services to customers so
that more number of members would become borrowing members and
participate more effectively in banks’ functioning for sustainability.
Professional manpower and tech-oriented products and services will help
attracting new members in banks for ensuring long term sustainability.
Process of recruitment
6.12. The number of posts to be filled up through open market recruitment as
decided by the Board of Directors, may be advertised in leading local dailies,
online job portals, as well as in the Employment News/ Rozgar Samachar. The
advertisement may cover various aspects of recruitment like number of posts,
post-wise/reservation-wise breakup, educational qualification, age, experience
and other eligibility criteria, salary structure, application form / format, last
date for submission, website (with Mobile numbers & email address) etc. A
letter to this effect may be given to relevant government offices like employment
office, social welfare office etc. The advertisement may also be published on the
web site of the bank. Bank may consider entertaining on-line applications as
well.
6.13. The selection of the candidates through written examination under direct
recruitment to the post of officers and employees other than sub staff, may be
entrusted to an independent and reputed National or State Level organization
having the required expertise and experience and which specializes in
recruitment of banking personnel.
6.14. Some States (Tamil Nadu) have a Cooperation Recruitment Board.
Allocation of new recruits to different banks / other cooperative institutions is
through a computerized system, taking into account, the rank and preference
of the selected candidates.
6.15. A National/ State level Board for Selection, Recruitment and Promotion
may be set up which will be responsible for conducting the process of selection
of candidates for recruitment and promotion at different grades. Some StCBs
48
are already using the services of Institute of Banking Personnel Selection (IBPS)
for undertaking the recruitment process. A National/ State level body which is
co-owned by the Cooperative Banks and manned by professionals may
undertake the entire process of selection, recruitment and even promotions.
This will free the recruitment process from outside influence and bring in
greater transparency and professionalism into the process. Alternatively, it may
be considered whether a body like Centre for Professional Excellence in
Cooperatives (CPEC) may be requested to undertake this process.
6.16. The Agency thus selected by the Board of Directors, should not have been
black listed or banned at any point of time. The Agency selected should ideally
have prior experience in conducting recruitment examinations for at least five
banks or three years of relevant experience. The role of such agency will be that
of conducting written examinations, evaluating the answer papers and short
listing of candidates satisfying the benchmark requirements set by the bank
concerned. Recruitment of technical/professional staff - Finance/IT/
Agriculture Officers for appraisal of projects, etc. may be done from the open
market through advertisement in leading newspapers. Suitable candidates may
be selected through interviews by Selection Committee, comprising the CEO of
the bank and external experts in the field engaged by it for the purpose.
6.17. Recruitment of officer staff may be through a process of written exam and
interview. Relative weightage of written exam to interview may be 85:15. And
for clerical cadre only written test may be considered.
6.18. After the number of vacancies to be filled in, along with the category-wise
break up, is finalized by the Board, advertisements may be placed in leading
dailies of the State. The recruiting agency shall accept the application forms
from the candidate and scrutinize the same as per the parameters provided by
the bank and undertake to conduct the examination process accordingly. The
bank can also consider accepting online applications, subject to submission and
verification of documents prior to the exam.
6.19. Before the interview, bank will ensure the correctness of documents
regarding Qualification, Age, Caste, etc. from the originals with the candidate.
49
6.20. Interview of the shortlisted candidates may be entrusted to an Interview
Committee constituted by the Board of the bank. The Interview panel should
consist of at least one member from an organization not involved in the day-to-
day functioning of the bank and one member from the SC/ST community. The
score assigned by each member of the panel shall be reckoned to arrive at the
average score. The marks obtained in the written test and those obtained in the
interview shall be aggregated and the list of selected candidates shall be
prepared.
6.21. The final result may be published by the bank and letters of appointment
may be issued to the successful candidate within a month of the last date of the
interview.
6.22. A waiting list of 20% of the notified vacancies may also be prepared. Such
waiting list may be kept alive for at least one year from the joining date given
for the main recruitment.
6.23. Recruitment of sub-staff may be done through the process of written
examination only.
Fixing entry level for recruitment
6.24. It is suggested that with the exception of technical services, entry level of
all other officers would be the Junior Management level, i.e., the first level for
officers (JM II). In case of Technical Services, such as technical(Agriculture
and Rural Development discipline), Finance and IT, the entry level could be
that of Junior Management (JM I) as core team.
6.25. Support staff, i.e. in the clerical cadre may be recruited depending on the
need of the individual bank. Such staff may be designated as Banking Assistant
(Multi-purpose), who can be taken by direct recruitment or on contract basis
depending on the need. They may also be deployed as Data Entry Operator,
Clerk, Cashier or Clerk-cum-Cashier, etc. as the situation demands.
6.26. Recruitment of sub-staff may be limited to around 10-15% of total staff
requirement.
50
Entry level qualification and experience for recruitment
6.27. For Junior Management (JM II) : Age : 21 – 30 years, I Class
Graduate/High II Class Post Graduate (minimum) degree in any discipline,
preferably Commerce, Agriculture or Economics. Working knowledge of
computers essential; experience in banking and related activities preferred.
i. For Technical Officers in Junior Management (JM I) : Age 21-35 years
ii. For Finance: CA /MBA Finance/ M.Com with 3 years’ experience
iii. Technical Services: MBA Agribusiness/ PGDM (Cooperative
Management)
iv. For Law: LLM/LLB with 3 years’ experience
v. For IT: BE/BTech Computers. Weightage to be given for experience
vi. Clerical Staff and Data Entry Operators: Age 18-30 years, Graduate in
any discipline.
vii. Sub staff : Age 18-30 years, Class X pass
6.28. Weightage may be given to employees of PACS for recruitment in DCCBs
and similarly, weightage may be given to DCCB employees for recruitment in
StCBs. Possibly, a few posts could be reserved for such candidates for
incentivizing them.
Identification of areas suitable for outsourcing
6.29. The problem of career progression in case of specialized posts cited above
(Finance/ IT Officers, etc.) being sensitive to acute attrition, may raise issues.
Therefore, such personnel may be hired on term contract basis for items of
skilled work, particularly major IT related work.
6.30. For legal services, a legal firm could be employed rather than recruiting
persons.
6.31. Staff like security guards, drivers, Maintenance staff, and any other casual
function etc., may be outsourced based on suitable hiring policy. However,
security aspects need to be kept in mind while outsourcing.
51
Recommendations:
6.32. Keeping in view the above analysis, the following recommendations are
made after detailed deliberation in Committee meetings and consultation
meets with all concerned personnel.
i. HR Agency: There may be a National/ State level mechanism for
recruitment and promotion at different grades for Cooperative Banks. A
detailed mechanism may be worked out on the line of IBPS and other similar
professional organizations. This body will work on sustainable basis and take
care of needs of StCBs and DCCBs. Later, this agency can also recruit personnel
for PACS and societies as well. The development of such specialized
organization will help professionalizing the Cooperative banking system in
changing situation. In the long run, all credit cooperatives may consider
creating a National/ State level agency as a federal set-up for this purpose.
ii. The services of IPBS/CPEC/ Service Commission of the State or Board
may be considered till the new mechanism starts functioning. The objective of
recruitment may be maintained for higher professional staff recruitment by
direct recruitment and contractual staff.
iii. Hiring service policy may be drawn for maintenance staff, certain security
personnel, and any other casual function, etc. by each bank.
iv. Technical staff, besides core staff in banks, may be hired on contract basis
or taken from company as per cost effectiveness and suitability/sensitiveness
of functions of banks a cost effective, suitable and sustainable organization for
cooperatives is evolved.
52
7. PROMOTION AND PLACEMENT
7.1. The data compiled from banks across the country reveals the absence of a
clear and reasonable career progression policy in most co-operative banks.
Most banks prescribe a minimum period of 3-10 years for promotion to the next
higher grade. However, the actual time taken was observed to range from 3 to
25 years. It was found that many employees in co-operative banks received only
one or two promotions during their entire service. A majority of the banks
promoted employees purely on the basis of seniority, leading to frustration
among meritorious employees. There is, therefore, an acute need to adopt and
implement a realistic and rational policy for promotion and placement to
achieve the following objectives:
i. build an enabling environment of trust with a transparent and
reasonable career path for officers as well as other staff
ii. refine critical components of human resource policy relating to
recruitment and career progression for limiting attrition and aligning
organizational objectives with individual aspirations
iii. offer reasonable career opportunities to supporting services, keeping in
view the functional requirements and opportunities available in such
services
iv. streamline and rationalize succession planning and institutionalize a
robust recruitment system to attract the best talents from the market
and
v. combine performance with opportunity for enhancing employee
motivation and morale
7.2. StCBs may take the lead in preparing a well-documented human resources
policy, which would incorporate performance measurement, training, transfer,
placement, etc.
7.3. The norms followed for promotion in various categories varied widely
from State to State. For instance, in Madhya Pradesh, the proportion of
53
promotions from Sub Staff to clerical staff was fixed at 10% while in Orissa, it
was 30%. The policy on promotion and career progression may continue to be
determined by each bank as per its requirement, and approved by its Board of
Directors. The suggestions made by this Committee in this regard may,
however, be kept in mind while framing the policy. The policy may lay down
clear career path, logical career progression linked with performance and
experience, defining minimum tenure at each level (grade) on the basis of an
average service span, making experience and performance the criteria for
promotion and providing greater clarity in role definition and job enrichment.
7.4. It was found that in many banks, employees in lower grades were
undertaking jobs of higher responsibilities. There are banks where officers are
neither available nor adequate to cover the existing number of branches. The
issue of over qualified personnel being recruited for jobs calling for lesser skill
and qualifications is also a matter of concern. It is recommended that up to 10%
of the Group B vacancies be earmarked for promotion from Group C (sub staff)
employees. The promotion may be on the basis of a simple test and/ or test in
computer skills. In addition, the concerned employee should also have acquired
the necessary qualifications required as in the case of direct recruitment to that
grade. Age relaxation may be given in respect of such candidates, on the basis
of the comparative age profiles of Group B and Group C staff of the bank. It is
suggested that such relaxation may not be more than 10 years. Preference may
be given to such candidates who have already been undertaking the work of the
senior cadre owing to paucity of staff in the higher grade. The following ratios
of Direct Recruits and Promotees in different grades, as indicated below may be
considered by the banks:
Table No. 7.1
Ratio of Direct Recruitment and Promotion in various cadres
Category By Direct Recruitment
By Promotion
Remarks
Group C Support Staff* 100% - Group B Banking Assistants 90% 10%
54
Category By Direct Recruitment
By Promotion
Remarks
Group A Junior Management II 50% 50%
Junior Management I 25% 75%
DR to be restricted to Specialised
Services Middle Management II 100% Middle Management I - 100%
Senior Management-II - 100%
Senior Management-I - 100%
*It would be desirable to outsource as much of Group ‘C’ (Support Staff) services such as Drivers, Security Guards, Maintenance Staff, etc. as possible. However the bank may require to recruit staff for the posts of Messengers/Office Attendants, etc. The percentage indicated here is with reference to such posts. ** Lateral entry at Scale III/Grade C may be restricted to specialized services such as Legal, Treasury Management, IT, etc. only and resorted to on a strictly needs basis. Hence percentage by direct recruitment has been indicated as nil.
7.5. Existing Staff may be allowed to compete in the examination meant for
direct recruitment with age relaxation, provided they fulfil other criteria. The
relaxation to be given may be decided by the bank concerned, but ideally,
should not be more than 5 years.
7.6. In case of promotions, the period that could be considered for each grade
is suggested below:
Table No. 7.2
Grade No of years Banking Assistants 6-10 Junior Management I (Scale I) 6 Junior Management II(Scale II) 5 Middle Management II (Scale III) 5 Middle Management I (Scale IV) 5 Senior Management-II (Scale V) 3 Senior Management-I (Scale VI)
55
7.7. It is recommended that the bank follow a policy of Merit-cum-Seniority
with equal weightage given to both, for the Senior Management posts and
weightage given to merit in case of the Junior and Middle management posts.
7.8. Written tests may be conducted for Group B to Officers and JM II to JM I
promotions.
7.9. The candidate’s service record may also be seen while deciding suitability
for promotion. The final selection through interview may be done by a Selection
Committee constituted by the Board of the Bank.
7.10. The promotion policy should be transparent and clearly defined, without
any ambiguity. Well defined guidelines on career progression will help to
remove stagnation and demotivation. Revisions, if any, in a policy once laid
down, may not be undertaken unless specifically required to correct an
anomaly. Continuity of policy enables an officer to perform well and plan his
career and arrest attrition, particularly the new recruits and specialists who may
leave for better career options elsewhere.
Promotion / Recruitment at senior level post:
7.11 At present some StCBs/CCBs (such as in Andhra Pradesh, Telangana etc)
are availing of the services of IBPS to undertake promotion processes as
mentioned in the earlier paragraph. Hence, promotion processes (conduct of
written examination, interview etc, as may be applicable at bank’s level) may be
completed with the help of an independent National/ State level agency such as
IBPS/CPEC/Service Commission at State level or any such other agency. Board
of each bank will approve the selection of officers for promotion as per the rank
given by such agency. A person will be selected subject to clearance of vigilance/
disciplinary case against such person.
7.12 In order to give equal opportunities and bring in experienced staff for
better efficiency, a system of promoting at senior officers level (DGM,
GM/CGM) in StCB and CCBs at State level may be done through IBPS/
C-PEC/Service Commission, till a national/ state level agency gets established.
The officers of StCB and CCBs will be promoted through this system of state
wide selection process for placing them in StCB and across the CCBs including
56
the parent bank. A person in the senior level will be finally selected, subject to
clearance of vigilance/ disciplinary case against such person. The placement
will be done by following counselling method as per rank given by the
concerned agency as mentioned and with the approval of the concerned Bank’s
Board to give effect to the promotion or recruitment in case the person is placed
from other bank/s. The terms and condition of such recruitment including the
Pay & perks, facilities, superannuation benefits, etc will be decided at the State
level on the line of norms/system being followed by the State’s service system
as applicable for persons when they are posted/placed in different PSUs etc.
Performance Appraisal
7.13 A performance appraisal refers to the documentation and review of an
employee’s performance on specified tasks during a given period, generally a
year. It consists of both the employee’s self-evaluation, as also the assessment
of his performance by a supervisor. The factors behind the performance of an
employee are also analysed and evaluated so as to better appreciate the abilities
of a person for further growth and development. It also serves in evaluating an
employee’s contribution achieving the overall organizational goals.
Performance Appraisal Reports (PARs)
7.14 Many StCBs had a system of recording Performance Appraisal Reports
(PARs). The Mitra Committee had, after analyzing the system obtaining in a few
StCBs, suggested a model format of PAR which could be introduced by banks.
The format included basic parameters such as Knowledge and Execution of
work, Managerial ability, Attitude and sense of customer service, Sincerity and
Devotion to duty, Attendance and Punctuality and the capability to shoulder
higher responsibility.
7.15 The format has been modified slightly so as to include self-appraisal/
assessment and other details, as also particulars pertaining to communication
of feedback to the appraisee, as self-improvement and development are
considered to be the keys to an individual’s progress.
57
7.16 Since the key activity areas are likely to differ from employee to employee
and bank to bank, the same may be suitably modified to suit the situation. The
format also gives scope to a reviewing authority to moderate scores to offset any
kind of bias towards or against the employee, and bring about balance in
assessment. (Format given in Annexure III)
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8. COMPUTERISATION AND IT IN COOPERATIVE BANK
Technology adoption by Co-operative Banks
8.1. The use of Information Technology (IT) is essential for the survival and
growth of banking institutions as technology usage not only helps banks in
reducing the cost of operations, but also enables them to offer products and
services at competitive rates to their customers. In order to remain competitive,
banks are required to upgrade their technology and offer services to customers
in tune with the market. The basic technology that banks have to adopt to
remain competitive is implementation of Core Banking Solution (CBS).
Consequent to this, the cooperative banks need to join a payment system to
enable their customers to avail banking services at ATMs, micro ATMs/POS,
mobile phones etc. The technology best suited for the bank has to be adopted to
take the business forward.
Background:
8.2. Technology adoption is imperative in today’s banking. The new private
sector banks and to some extent, existing commercial banks with upgraded
technology base have integrated their information systems and provide variety
of services through internet banking, mobile banking, tab banking, websites
and special Apps. Websites have been designed to provide variety of
information like opening of Savings Bank account, applying for education loan,
vehicle loan, home loan, personal loan, Loan application Forms &
documentation required for sanction of loan, Tweets, Face Book, Aadhaar
Seeding, etc. with the objective of creating transparency and generating
business. Requests for supply of cheque books, change of pass words for Debit
Cards, etc can be done through 24X7 customer service support and customers
need not visit branches.
8.3. RBI has permitted banks to use ATMs to provide services of branches.
Some Private Banks have also moved in this direction to sanction loan through
ATMs. With a view to provide hassle free and efficient service, cheque deposit
machine, cash deposit machine, pass book printing machines have also been
provided by the banks. Contact Centre Services through Toll Free Nos. and
59
Phone Banking have been initiated to address the grievances of customers.
Aadhaar seeding has been made easy by some banks through online services,
SMS and ATMs. This will facilitate routing of Direct Benefit Transfer (DBT) by
Government through these accounts in turn, enhancing customer base and
generating deposits with banks. New products viz., holiday tours, shopping, bill
payments, personal banking have been started by some banks by launching
exclusive Apps to attract young clientele who prefer to do business with
technologically advanced banks.
8.4. For Cooperatives, the bigger challenge will be from the Payment Bank of
India Post, which also has a strong network in rural areas. Entry of new players
such as Payment banks and Small Finance banks in the banking sector will
allow increased options to customers and pose a challenge to Cooperative banks
for survival.
8.5. Most of the Cooperative Banks have adopted the CBS platform and have
started providing payment services like RTGS/NEFT, RuPay Cards, and
majority of the banks have on boarded to DBT, NACH. However, the banks need
to find out ways to provide banking services through internet and mobile which
has changed the way people do banking in urban India.
8.6. Cooperative banks with their outreach and local feel within the area of
operation have the task of not only attracting new customers but retaining the
existing clientele with the suitable changes in attitude, processes, business
model and strategy and better customer service and new products with the help
of technology. Cooperatives have enormous potential to deliver financial
inclusion at door step of clientele, leveraging technology and CBS.
NABARD’s Role:
8.7. The Cooperative Banks were lagging behind in adoption of technology in
comparison to Commercial banks & RRBs. NABARD with its mandate for
Institutional development, has been instrumental in facilitating the roll-out of
Cloud-based CBS project for Cooperative Banks. Adhering to its commitment,
CBS implementation has been completed in 201 StCBS/ DCCBs under Cloud
based Model by 31 March 2014. The details are indicated in Table 8.1.
60
Issues & challenges in technology adoption
8.8. Cooperative Banks due to their inherent weaknesses, along with the fact
that they cannot go beyond their area of operation, face following challenges
which are given below:
i. Lack of bargaining power
ii. Lack of skilled manpower
iii. Vendor Selection
iv. The RFP / RFQ Route
v. Price Discovery
vi. Interoperability and Development of Specifications
vii. Payment Standard Compliance
viii. Acquiring Devices and Form factor
ix. Poor Delivery of Post On-boarding Services
Initiatives of NABARD
To enable the cooperative banks face the technology adoption challenges,
following initiatives have been taken by NABARD:
i. Successfully facilitated the implementation of Cloud Based CBS in
201 StCB/ DCCBs across the country.
ii. Required handholding and overall monitoring mechanism put in
place to ensure deliverables are provided and deadlines are met.
iii. In all the initiatives mentioned above, the banks were made aware of
the various technical standards and the best methodology to be
adopted by the banks for providing various delivery channels.
iv. Separate training programs have been conducted for the CEO and IT
Staff / Payment System implementing officials of StCB/DCCBs.
v. In order to encourage these banks to join the Payment technology
platform, various financial assistance and incentive schemes have
been designed under Financial Inclusion Fund (FIF.)
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vi. RFP for Price discovery for ATMs for Co-operative banks.
vii. Enabling issue of KCC cum Savings Bank account along with a Rupay
Kisan card for the farmer through which he/she can withdraw
money/undertake transaction from various ICT driven channels like
ATMs, micro-ATMs, POS, etc.
Post CBS the expected IT enabled services to be offered by banks
are:
i. Issue Rupay & Rupay Kisan Card by becoming part of NFS
ii. Deploy inter-operable micro-ATMs.
iii. Branch based and inward IMPS services.
iv. Adoption of Instant Money Transfer (IMT) for sending money to
anyone whose mobile number is known.
v. Full-fledged IMPS services once the bank receives mobile banking
licence.
vi. Mobile and internet banking by the eligible Cooperative Banks.
vii. DBT facility to the customers
viii. Allowing account opening through e-KYC
ix. Completion of PoS certification and e-com certification.
x. All banks should strive to be part of the social security schemes like
PMJJBY, PMSBY, APY.
Present Scenario:
8.9. Based on the requirement of the banks which have migrated to the CBS,
various models can be adopted by the banks. This may vary from bank to bank,
based on its requirements and can be customised to suit their needs. The
computerisation and the software required by Cooperative Banks is slightly
different from that of Commercial Banks. Depending on the model being
adopted, the HR requirements of the banks vary. These issues were discussed
in the meeting of the Sub-Committee on Technology (formed as a part of the
HR Committee) and the following points emerged during the discussions:
8.10. It is difficult to maintain DCCB-wise talent pool. Important challenges in
this regard pertain to IT Governance, IT Policy, IT awareness, and IT
62
manpower. Though the IT policy has been adopted as per the script prescribed
by NABARD, the awareness level is low. In addition, operations relating to
banking are being carried out by contract staff or by the personnel of software
vendor, which raises serious doubts about the ability of DCCBs to manage the
IT software and hardware infrastructure on a sustainable basis.
8.11. Computerisation in Banks in STCCS entails new needs for manpower
where specialists are required in few numbers to man core functions of the
banks IT facilities and to train the staff at operational levels. Technology
requirements in respect of security systems also will be supported by the core
IT team.
8.12. All staff members are required to work in a computerised environment,
the capacity for which may be ensured through appropriate training evolved
and implemented at the bank level. Training and Capacity Building
requirements of these different categories of manpower will vary.
8.13. Recruitment of right kind of manpower, their retention, training and
retraining is critical for technology management as attrition in this category is
high. Skilled persons are needed for drafting the SLAs wherever IT related
activities are outsourced/ contracted. It would be easier for StCBs to hire right
IT skilled manpower, but getting manpower for DCCBs in majority of the States
is a huge challenge. Technology-based solutions are not enough by themselves,
they should be coupled with good customer service.
8.14. Knowledge of audit in a computerised environment is critical for
appropriate internal control and supervision. To this extent, the internal and
concurrent auditors need to be trained. However, systems audit can be
outsourced to the qualified auditors.
8.15. Individual bank-wise solutions should to be avoided as the banks in a
State follow similar procedures and mostly have similar products. Thus, a State
Level/ National level Team to take care of technology requirements of the
STCCS (StCBs and DCCBs) is required to be formed under the leadership of
StCBs.
63
8.16. Cooperative Banks may initiate steps to form a federal non-profit
organisation to manage IT-related issues on behalf of all Cooperative banks. All
stakeholders may own this national level entity on a cost sharing basis both for
capital and working expenses. This will be easier and cost efficient method for
managing technology. The expertise of institutions like National Informatics
Centre (NIC) or IDRBT/ IFTAS may be utilised to give a shape to the proposed
organisation. Eventually all cooperative banks may move over to a
professionally managed common platform which may be hosted by this
National Entity. NAFSCOB may spearhead such initiatives.
8.17. The banks may also outsource management of non-core facilities to
technology organisations or by hiring manpower on contractual basis.
8.18. A pool of centralised manpower at the StCB level on a cost sharing basis
by DCCBs is an option worth considering.
8.19. Training of IT manpower needs to be focussed and continuous, with focus
on web-based training in a virtual environment. Such training may be
specialised and managed at a centralised level, perhaps through StCB.
8.20. Monthly workshops and continuous training of staff, as practiced in
Telangana and AP on aspects of Cloud, Networking, CBS, Database
Management and Security may be adopted. Annual Workshops for experience
sharing and new learning for all IT professionals from all over the country may
be organised. Assistance from IDRBT may be sought in conduct of periodic
workshops for resolving issues.
8.21. Customer Digital Education is critical and needs to be done in a big way
through Digital Financial Literacy Centres.
8.22. There are data/accounting entry dumps created during CBS data
migration, which are still outstanding in several banks. The banks must resolve
the issue and adjust the entries. Or else, the total dump may be cleared by taking
as income/write off. Just reconciling the entries and making provisions is not
adequate. The dump should be completely cleared from the financial statement
of the banks.
64
8.23. Given the constraints that the small Cooperative Banks face, it will be
advantageous if they focus on their core competence of banking and let the IT
vendors take care of the IT issues. This is due to the fact that the Cooperative
Banks are unable to handle the entire gamut of functions that go with basics of
technology implementation. This is on account of acute staff shortage and
integration of IT qualified personnel with the general staff who face the problem
of uniform, career progression.
8.24. Since there is substantial development in respect of cloud-based services,
the preferred model of banking in Cooperative Banks should be the Application
Service Provider (ASP) model, where entire IT infrastructure is
maintained/provided by the vendor and Banks get banking technology as a
service on a monthly, per branch payment basis. Cloud computing provides
enhanced and simplified IT management and maintenance capabilities through
a central administration of resources, vendor managed infrastructure and SLA
backed agreements. IT infrastructure updates and maintenance are eliminated,
as all resources are maintained by the service provider.
8.25. All stakeholders may own a national level entity to address technology
related issues, management as also the manpower needs. The expertise of NIC
may be utilised to give a shape to the organisation being set up.
8.26. There should be a strong Service Level Agreement (SLA) which governs
this arrangement with clearly defined deliverables as also adequate penalty
clauses.
8.27. A small core IT team may be established to take care of the SLA
management and vendor management. Other than this team, other employees
may be involved in carrying on the banking /other services based on software
being provided to them.
8.28. The future manpower should be IT oriented i.e., they may not be IT
graduates but should be familiar with working in an IT based environment.
8.29. Training and workshops for the Bank staff - The existing manpower of the
Bank should be continuously trained on the basics of IT which make them
65
comfortable in working in an IT environment. The IT team should be given
training on new technologies.
8.30. Each bank may create a Computer Lab based on the number of branches
in the banks. The lab may be used for IT-based training/ capacity building of
the staff members.
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Table No. 8.1
Technology adoption by Co-operative Banks –Position – As on 31
March 2017
Activity No. of Banks (StCBs/
DCCBs – 370+33=403)
CBS 382*
NEFT/RTGS 382
SMS Alert 374
CIC membership 340
IT policy 329
DBT 335
NACH 326
NFS 324
Issuing RuPay KCC 249
PoS certified 278
E-Com certified 151
Internet Banking license 5
Launched Internet Banking 5
Mobile Banking license 17
launched Mobile Banking App 9
* 21 DCCBs unlicensed/recently licensed not completed CBS
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9. TRAINING AND CAPACITY BUILDING IN COOPERATIVE BANKS
Introduction
9.1. Capacity development is the process whereby individuals, groups, and
organizations enhance their abilities to mobilize and use resources in order to
achieve their objectives on a sustainable basis. Efforts to strengthen abilities of
individuals, groups, and organizations can comprise a combination of (i)
human skill development (ii) changes in organizations and networks and (iii)
changes in governance/institutional context. (ADB, 2004).
9.2. Capacity building is a complex notion – it involves individual and
organizational learning, which builds social capital and trust, develops
knowledge, skills and attitudes and when successful, creates an organizational
culture which enables organizations to set objectives, achieve results, solve
problems and create adaptive procedures which enable it to survive in the long
term. (DFID, 2007).
9.3. Thus capacity building, of which training is a component, has the objective
of improving individual effectiveness in organizational performance. Training
is defined as an organized activity aimed at imparting information and/or
instructions to improve the recipient's performance or to help him or her attain
a required level of knowledge or skill. (Business dictionary).
9.4. Human Resource Management practices and processes adopted by
cooperative banks have a bearing on the outcome of capacity building and
training interventions. A specific focus on developing the training policies and
processes is essential in cooperative banks, especially in view of the challenges
that the sector is facing on account of rising competition from other banks and
rapid technological advances in banking. In view of rigorous norms being
applied by RBI, continuous and intensive trainings on operational, functional
and specialised areas of cooperative banking need to be imparted to update and
upgrade the capacities of all the cadres of staff of the cooperative banks. One of
the challenges before the rural cooperative bankers is to ensure knowledge of
basic banking principles and capacity for business development and
diversification in a rapidly changing banking environment.
68
9.5. However, the skill required for functionaries of the Cooperative Banks
extends beyond the mere domain knowledge of banking, as the management of
Cooperative Banks is fundamentally different from the conventional banking
institutions. Cooperative Banks are ultimately owned and managed by
members who are also their customers. Hence, organising and managing
cooperation with proper education of members are additional skills required.
Training Policy in Cooperative Banks
9.6. There is a need for an effective arrangement to develop human resources
with a view to build a cadre of professionals possessing basic banking skills and
business development capabilities, apart from due familiarity with technology
and fast changing regulations under BASEL regime. The existing training
system needs to be geared towards meeting the specific requirements of the
staff and management to upgrade their skills and improving their performance.
9.7. Any modern banking institution need to develop its own training policies
to provide a framework within which the capacity building of the staff can be
undertaken. Training policies need to take into account following aspects of
knowledge and skill building among the staff of the Bank.
I. Basic knowledge and skills for operation of Bank
II. Specialised knowledge and skill in areas like ALM, Investment, Product
pricing, regulatory compliance, corporate plan and business growth
strategy etc.
III. Skill related to operation and management of technology
IV. Soft skills directed towards developing the right attitude by way of team
building, developing a positive organisational culture and creating
leadership, apart from building and nurturing clients.
V. The policy may also include separate strategies for fresh recruits, newly
promoted to higher grade, concurrent training to assimilate new
developments, specialised training for specific functional areas, Scheme
or plan within the policy for continuous upgradation of knowledge
through recognised courses or professional certification.
69
9.8. As part of the training policy, StCBs/State Agriculture and Rural
Development Banks (SCARDBs) have set up their own training institutes. Out
of 33 StCBs (as on date), 13 banks have set up Agriculture Cooperative Staff
Training Institutes (ACSTIs), with different nomenclatures. One institute, the
National Institute of Cooperative Management (NICM), Gujarat functions as an
independent society. State Agriculture Rural Development Banks have set up
Junior Level Training Colleges (JLTCs).
9.9. There is a need to streamline the training policy of the Cooperative
Banking system. A State Policy on Cooperative Training outlining the
cooperative training requirements for different purposes and different levels
within a structure may evolved. The policy may assign a definite mandate for
each Cooperative Training Institutions (CTI) in the State even though each CTI
might have been set up by a different apex institution.
9.10. Organisational training policies duly approved by the Boards may be
prepared by the StCBs/ DCCBs on an annual basis, to identify the training needs
and the potential trainables. Further, the CTIs in the State may take up the task
of bringing together the training requirements of all the Cooperative Banks and
analysing the needs of each DCCBs/PACS along with that of the StCB. Based on
this analysis, the Training Institutes may design the programmes to be
conducted with inputs from National level Institutes such as BIRD, ICMs,
NIBM etc., and formulate a curriculum to be approved by the Standing
Committees of the CTIs.
9.11. In addition, the banks may have regular training programmes and
workshops of PACS to sensitise them and educate them on various aspects
pertaining to sectoral developments in the field of agriculture and cooperation.
This may also be supplemented with technological awareness programs/camps
to enhance the technology adoption by PACS for improved operational
efficiency and delivery of services to its members.
Assessment of Knowledge Gap – Overcoming through Training
9.12. The knowledge assessment of the staff may be carried out at the time of
induction wherein the strengths and weaknesses of the employee are analysed
70
and individual core competency of staff is mapped to prepare a long term plan
for developing the knowledge base of the functionaries. The knowledge gap
indicates the know-how required for specific job profiles and the ability of the
staff member to effectively utilise knowledge base to facilitate effective
discharge of duties. This bridging of the gap may be achieved through peer and
superior evaluation, keeping abreast of the current changes through constant
reading and upgradation of knowledge through formal and informal mode of
learning. It is emphasized that self-study methods or online teaching are initial
requirements to achieve basic banking competencies, however, these cannot be
a substitute for direct training at certain levels.
9.13. The National level Institutes such as IIBF, BIRD and NIBM, offer
certification programmes which aid in improving the qualifications as also the
knowledge of the staff members in the banking field. Banks on the whole,
including the Cooperative Banks offer incentives to their staff members for
improving their qualifications and work level experience. This ongoing
upgrading of the knowledge and skills of staff members on their own,
contributes not only to the development of the Bank but also helps in the
personal development of the staff.
Training needs of staff and officers of StCBs/ DCCBs:
9.14. The training needs aimed primarily to build onsite skill to enhance
productivity of the staff, are both static and dynamic. The standard training
programmes provided to the staff members are basic in nature, which help in
the day-to-day operation of the bank, taking care of the static training
requirements. However, training designed and conducted on the basis of
emerging changes in the banking system is the dynamic component of the
overall plan and design of the training programme.
9.15. The standard training programmes, forming part of static training module
and delivered by mostly in-house training institutions are updated at regular
intervals, while keeping the overall structure of the programme intact.
However, to keep the staff equipped to deal with new developments, there is a
need to devise new programmes within the functional areas. Sometimes, these
71
programmes are conducted in the workshop mode with the assistance of
external experts, in the absence of in-house expertise of training institutions.
9.16. To optimise the impact of training on staff productivity, assessment of
training need of the staff are regularly undertaken at field level using scientific
tools (not just by classroom evaluation) and training programmes are designed
accordingly.
9.17. In general, it is observed that the following training programmes are in
greater demand in the Cooperative Banks due to the paucity of members with
little or no experience in the following areas of expertise.
i. Risk management including Asset Liability Management
ii. Business development, appraisal of projects.
iii. Profit planning
iv. Fund and investment management: Prudent deployment of
funds to maximize return on investments.
v. Personnel management and industrial relations
vi. KYC norms and Vigilance
vii. Organisational responsibilities of balancing centre: to
improve the efficiency of the operations of the banks as a
balancing centre.
viii. Institutional Development: Guiding, directing and monitoring
the CCBs to perform their role including their responsibilities
to the primaries. These include behavioural inputs relating to
change management, development of right attitude towards
the organizations depending on the higher tier and the
responsibility of the higher tier for the development of lower
tier organizations.
Specialised Training
9.18. Over the years, there has been gradual integration of cooperative banks
with the larger banking system. The regulations, hitherto being made applicable
72
to commercial banks, are now being progressively made applicable to Rural
Cooperative Banks. In the current situation, there is a dire need for training in
the regulatory disciplines laid down by RBI for proper compliance.
9.19. As revenue stream in investment portfolio of banks, is assuming greater
importance the training programmes such as Treasury & Investment Portfolio
management is essential. ALM and product pricing are other related areas
which require specialised training. The personnel involved in the treasury
portfolio of the Bank should be familiar with the following:
i. Banking
ii. Financial Management- balance sheet-flows
iii. Instruments and their characteristics- CD/CP/T Bills/G Sec/Bonds/
Mutual Funds / Equity
iv. Market and their nuances- Money market, Debt market, Mutual Fund
v. Accounting – valuation- income recognition- risk weights
vi. Fund flow analysis
Role of Cooperative Training Institutions (CTIs)
9.20. The CTIs, in order to make the training effective, need to observe basic
tenets of training which are enumerated as under:
i. To put in place a definite Training Need Analysis (TNA).
ii. A scientific and systematic approach to be adopted for design and delivery
and impact assessment of such training.
iii. To include all cadres of employees and not limit it to Officers and
executives.
iv. To design and deliver programmes for different categories of employees
v. To constantly make efforts towards re-skilling the employees.
vi. There is a need to develop rigorous training policy, making it mandatory
for the staff members (including Board Members) to undergo specific job-
related training as well as other related to developing general competence.
73
vii. Design standardised and need-based training modules, prepare training
materials & study kits with local refinements to achieve “Standardisation” of
training with pan-India applicability
viii. C-PEC established by NABARD, has developed parameters of desired
standards of training delivery and has granted “Accreditation” to 41 CTIs. The
training institutes need to meticulously maintain the standards of
infrastructure and academic excellence.
ix. Conduct studies, research, cooperative conventions / seminars,
publications, etc. which contribute to developing professional competence
among the cadre in cooperatives.
x. Evolve a training strategy, formulate suitable programmes and deliver
training for member education.
xi. Develop and implement a long term plan for in-house training of Trainers
or continuous Faculty Development Programmes.
9.21 Training Analysis across the States in DCCBs:
i. The training details as analysed of 96 DCCBs reveal that out of staff count of
21,609, 32.2% were officers, 46.8% were clerical staff and 21.9% were sub-
staff. During the year 2015-16, 39.7% of officers were deputed for training
whereas only 21.6% of clerical staff were deputed for training in the various
CTIs.
ii. DCCBs of Punjab and Telangana have deputed staff to the extent of 37% for
the various training programmes followed by DCCBs from Gujarat. However
maximum number of officers (87%) from Gujarat were trained during 2015-
16 followed by officers (53%) of Punjab. It is observed that except in Telangana
(59.2%) and MP (36.5%), the training of clerical staff has not been given due
importance.
iii. Sub staff are hardly deputed for training programmes with only States like
Haryana (1%), Maharashtra (8.2%), MP (5.4%), TN (17.8%) and UP (4.8%)
deputing them for training.
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iv. With respect to computer skills, 76.4% of the staff have basic computers skills
or working knowledge of computers of which 87% of the officers were
comfortable working with computers, 98.6% of the clerical staff and 10.6% of
the sub-staff had working knowledge of computers.
Table No. 9.1
Conclusions
1. From the above, it can be deduced that no uniformity is observed in the
deputation of the staff for training on a year-to-year basis or from bank
to bank.
2. The following reasons are attributed to such :
i. Lack of availability of the staff members to be deputed for training
in view of staff shortage in most of the StCBs/ DCCBs.
Training Conducted by various Training Institutes with NABARD support:
Institutes No of Persons trained during
2015-16 2016-17
BIRD, Lucknow 333 223
NIRB 745 1436
BIRD, Bolpur 158 410
BIRD, Mangaluru 118 256
Sub-TOTAL 1354 2325
RICMs 709 11006
ICMs 1207 11962
ACSTIs 13874 22438
JLTCs 3790 7033
Sub-TOTAL 19580 52439
GRAND TOTAL 20934 54764
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ii. The age profile of the staff is not amenable to training as also not
having necessary capacity to absorb new skills and ideas.
iii. Banks are not having a systematic training deputation policy and
individual staff training profile.
9.22 Current Status of Training in the Cooperative Banks:
Many Cooperative Banks having a Board approved training policy, analyse the
training needs of their staff through the TNA and decide a set of programmes
which are exclusively needed by them. These programmes are forwarded to
their respective State-level Training Establishments, which place the same
before the Standing Committee. The Standing Committee decides the exclusion
and inclusion of the desired curriculum and the Training Calendar for the year
is prepared.
9.23 Standardisation of Training Design and delivery:
C-PEC has been entrusted with the responsibility of building an effective
training methodology to develop a cadre of technical and professional
excellence in cooperative banking system, limiting to banking business and
delivery of other financial services. The basic approach is to work with the
existing training structure available in the CCS, which should be owned by users
themselves instead of creating any additional institutional set-up. Based on
these suggestions and the standardisation of curriculum by C-PEC at the
National level, the standardised programmes that are offered by the
Cooperative Training Institutes (CTIs) are listed below:
Table No. 9.2
List of training programmes standardized by C-PEC, BIRD, Lucknow
Sr. No.
Training Course Title Target Group Duration (Days)
1 Standardized Banking Programme for Cooperatives (SBPC)
Cooperative Bank Officers (other than
Deptt. Heads) with 4 to 10 years of service
12
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Sr. No.
Training Course Title Target Group Duration (Days)
2 Problem Solving and Decision Making
Deptt. Heads of Banks 3
3 Management Development Programme
Sr. Officers /
Managers of Banks
3
4 Project Appraisal and Loan Documentation – Non Farm Sector
Officers of Apex Banks /
DCC Banks
5
5 Project Appraisal and Loan Documentation – Farm Sector
Br. Managers / Asstt. Managers / Officers of
Banks
5
6 Non-Fund Business and Cross Selling
Br. Managers / Asstt. Managers / Officers of
Banks
3
7 Financing under Government of India Subsidy Schemes (with inputs on Project Appraisal)
Branch Managers /
Officers of Banks
3
8 Banking Laws and Practice and Legal Aspects in Loan Proposals
Officers of Banks 3
9 Business Development, Profit Planning and Diversification
Br. Managers/ Asstt. Managers / Officers of
Banks
3
10 Know your Customer, Prevention of Money Laundering and Customer Protection
Br. Managers / Asstt. Managers/ Officers of
Banks
3
11 Internal Checks and Controls Officers of Banks 3
12 Preparation of Balance Sheet and Profit and Loss Account
Br. Mangers /
Officers of Banks
3
13 Asset and Liability Management Officers of Banks 3
14 Know your Customer, Prevention of Money Laundering and Customer Protection
Clerks of Banks 3
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Sr. No.
Training Course Title Target Group Duration (Days)
15 Cash Management and Fake Note Detection
Clerks and Cashiers of Banks
3
16 Developing PACS into Multipurpose societies
PACS Functionaries 3
17 Programme on “How to do the existing business better in the post reform scenario”
PACS Secretaries 4
18 Programme on “Self-sustenance through improved Governance and Management of Resources”
PACS Board Members 2
19 Programme on “CAS-MIS” PACS Secretaries 3
20 Programme on “Business Development Plan”
PACS Secretaries 3
21 Corporate governance for financial cooperative
TOT- Trainers of CTIs 3
22 Asset Liability Management TOT- Trainers of CTIs 3
23 Credit appraisal and credit management
TOT- Trainers of CTIs 3
24 NPA management TOT- Trainers of CTIs 3
25 Audit of PACS TOT- Trainers of CTIs 3
26 Internal Checks and control TOT- Trainers of CTIs 3
27 Recovery Management TOT- Trainers of CTIs 3
78
Existing Structure of C-PEC
9.24 Recommendations:
i. Training Need Analysis (TNA) may to be prepared by all the StCBs/
DCCBs to arrive at a realistic training requirement. There is a pressing
need to move away from "Training" to "Education".
ii. Training may be on - location and off-campus as per types/ nature of
training and needs of cadre.
iii. Desk training, e-learning tools and mobile job training could be used as
per need.
C-PEC
TRAINING ACTIVITIES
Skill specialisation at
very senior level of CCS
CERTIFICATION OF
CCS TRAINING
INSTITUTES CCS
PERSONNEL
L
TRAINING
MODULES
Accreditation of Institutes
Certification of Modules
Examination & Certification
Aspirants for
employment in
CCS
RESOURCE CENTRE IN
COOPERATIVE BANKING
BIRD
79
iv. Training effectiveness audit in respect of ACSTIs be conducted through
an independent agency like C-PEC to ensure that the training provided
is actually applied on the job.
v. BIRD may coordinate with the Training Establishments of Cooperative
Banks or such other national level training institutions to provide overall
guidance in building training strategy, content development and conduct
of high-end programmes for senior functionaries of cooperative banks.
Experienced persons from banks/ FIs/ other TEs may be inducted to
coordinate with International Cooperative Training (ICTs)
establishments as well.
vi. Training fund may be created by all banks and part of it may be
contributed to the State level or National level Training establishments,
to give a sense of ownership of the cooperative banks with the Training
establishment.
vii. The training policy may include a scheme for incentivising the staff
members for achieving higher qualifications offered by institutions like
C-PEC, IIBF etc.
viii. The Banks may have systematic Training Deputation Policy wherein
training profile is maintained for all the staff members, which not only
provides details of training undergone by the individual staff , but also
an assessment of training requirement based on the job profile of the
staff concerned.
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10. TWO TIER STRUCTURE
10.1 The staff requirements and issues of the two tier StCBs are considered to
be different in certain aspects from that of the three tier StCBs. As on 31 March
2016, there are 13 StCBs in the two tier structure. These include the StCBs of all
eight North East states as well as smaller StCBs in other parts of the country.
10.2 More recently, after the amalgamation of the 06 DCCBs with the StCB,
Jharkhand cooperative structure has partially moved from three tier to that of
a two tier set-up. The amalgamation process is still to be completed as 01 DCCB
remains out of the fold.
10.3 Of the above thirteen StCBs, eight StCBs are in the states of the NER viz.,
Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim
and Tripura, covering a total geographical area of 18.4 million hectare. Total
population stood at 4.55 crore as per 2011 census with more than 86% rural
population. The slow paced development of infrastructure, the difficult
topography, sparse and isolated settlements of population and the geographical
remoteness of the region necessitates a special look at the StCBs functioning in
these States. Andaman and Nicobar and Goa StCB also share many of these
characteristics exhibited by StCBs in North Eastern Region.
10.4 On the other hand, the position of the other three two-tier StCBs; New
Delhi, Puducherry, and Chandigarh, in comparatively developed centres put
them in an advantageous position in so far as the availability of manpower and
resources are concerned. However, these StCBs have the responsibility to reach
out to the client base and delivering services through PACS. As such, the banks
in the two tier system have been taken together for assessing their manpower
planning.
Structure and function of Two Tier StCB
10.5 The StCBs in the two tier structure operate through their branches which
conduct direct business as well as through the PACS/LAMPS affiliated to them.
Supervisory, monitoring, regulatory and business relations with the Societies
are also carried out by the StCBs without the intermediary DCCBs, unlike the
81
three tier system. The Branch Manager of the StCB is generally nominated as
Director on the Board of these Societies which are governed by the respective
State Co-operative Societies Act. The Societies are run by elected Boards and
fall within the purview of the Registrar of Co-operative Societies. Many of the
Societies in the NER are defunct or are existing only for the purpose of
undertaking PDS activities. Banking and related works are therefore being
undertaken by the branches of the StCB. As these branches are therefore
required to do both the business of the PACS as well as the normal banking
business, a separate approach needs to be taken regarding their staffing
requirements. The banks in the first group cover an entire State (or UT in the
case of A&N) and the geographical area covered by these banks is substantial,
in some cases, running into thousands of square kilometres. The banks in the
latter group would cover only a small administrative area of a few dozen square
kilometres. Even though structurally both the sets of the bank are similar, their
operational environment is different and in order to address this difference, the
approach for assessment of human resources has been applied differently as
per requirement.
10.6 In order to elicit the opinion of StCB of North Eastern Region special
discussions were held separately with the CEOs of some of the StCBs of the NER
to assess the prevailing situation and understand their unique requirements so
as to be able to arrive at reasonable and relevant norms, while formulating a
policy relating to HR issues for these SCBs. The suggestions made by them have
been incorporated into the policy guidelines.
10.7 The thirteen two-tier StCBs in the STCCS operate through 485 branches,
with a total staff strength of 4231 and total business volume of 19,901.49 crore.
The financial position of the two-tier STCCS (StCBs) as on 31 March 2016 is
given below.
82
10.8 A positive correlation between the branch network and the business level
was also observed, for example, Tripura StCB with the higher number of
branches (64) had the highest business level of ` 3223 crore, while Manipur
StCB with the lowest business level of ` 234 crore had a network of the least
number of branches (10).
Human Resource Analysis
10.9 Based on the sample data received from 7 banks of two tier structure, it is
observed that the proportion of sub staff and clerical staff to total staff strength
is more than 70%. In states like Arunachal Pradesh, Assam, New Delhi and Goa
the proportion is higher than average of all two tier StCBs. Age profile of the
staff in these banks is favourable as 20% of Officers, 13.59% of clerical staff and
13.24% of sub staff are going to retire in the next 5 years, paving the way for
fresh recruitment.
10.10 As regards educational qualification, 74.31 % of officers and 80.90% of
clerical staff are either graduate or post graduate. However, negligible
Table No. 10.1 A few indicators among two-tier StCBs
` Lakh Sr. No.
Name of the Bank
Deposits Loans and advances
Total Business
Total branches
Total Staff
1 Andaman & Nicobar 68896 36064 104960 41 204
2 Arunachal Pradesh 14367 22143 36511 37 381
3 Assam 203981 87927 291908 67 598
4 Manipur 9885 13506 23391 10 106
5 Meghalaya 185810 105745 291555 50 609
6 Mizoram 59202 40039 99241 15 158
7 Nagaland 49090 33008 82097 21 236
8 Sikkim 89993 30772 120766 14 87
9 Tripura 204343 117980 322324 64 328
10 Chandigarh 30261 13394 43655 18 83
11 Delhi 101966 59500 161466 49 558
12 Puducherry 61094 38179 99273 29 232
13 Goa 188909 124092 313001 70 651
National Total
1267800 722349 1990149 485 4231
83
percentage of officers or other staff have specialised qualification like technical
degree or CAIIB etc.
10.11 The analysis of the staff cost indicates that majority of the banks in two-
tier structure have a higher staff cost and the same is evidenced from the fact
that the staff cost to total income and total expenditure is 20.30% and 19.18%
respectively. Arunachal Pradesh has highest staff cost to income and
expenditure ratio at more than 35%. However, in case of Sikkim, both the
parameters are below 8% and in case of Tripura it is below 7%. Hence, average
high staff cost among two tiers is not structural and can be brought under
control by increasing business and reducing manpower in clerical and sub staff
category.
Bank Categorisation and Staff Deployment
10.12 Keeping in view the restrictions on opening more branches imposed by
considerations of rough terrain, lack of infrastructure, connectivity, etc., as also
the geographical extent under the jurisdiction of the StCB, the banks have been
categorised on the basis of the volume of business into two groups. StCBs
covering the entire State and with substantial geographical area under their
operation have been placed in the first group, comprising the StCBs of
Andaman & Nicobar, Arunachal Pradesh, Assam, Goa, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim and Tripura. The second group which have better
infrastructure and connectivity are operating in a far smaller geographical area,
include the StCBs of Chandigarh, Delhi and Puducherry.
10.13 Earlier, the Mitra Committee had separately classified the StCBs in two-
tier structure of North Eastern region into two categories based on their
business volume viz category A with business volume of ` 300 crore and above
and category B with business volume below ` 300 crore. However, the current
Committee has classified the StCBs in two-tier into 3 categories. This was
necessitated on account of the increase in volume of business by more than ten-
fold i.e., from ` 300 crore to ` 3000 crore. Therefore, on the basis of business
volume, the StCBs may also be classified into three categories:
Category A : StCBs with business volume of above ` 2500 crore;
84
Category B : StCBs with business volume above ` 1000 crore to ` 2500 crore
and
Category C : StCBs with business volume of ` 1000 crore and below.
10.14 Based on the above classification and the business volumes as given
above, four StCBs will fall in Category A : Assam, Meghalaya, Tripura and
Goa; three will fall in Category B: Andaman & Nicobar, Sikkim and Delhi and
the remaining five fall in Category C: Arunachal Pradesh, Manipur,
Mizoram, Nagaland, Puducherry and Chandigarh. The branch staffing
pattern may be assessed on the basis of the above two parameters. Staffing
Pattern at Head Office: As the work in the Head Office will be similar,
irrespective of the no. of branches or geographical reach, the staffing pattern
may be based on the volume of business. As such the suggested norm is as
under:
Table No. 10.2
Grade Business level of Category
A
Above `2500 crore
B
Above `1000 crore to `2500
crore)
C
`1000 crore and
below.
Senior Management 5 4 3
Middle Management 10 9 8
Jr. Management 24 22 20
Clerical Staff 23 21 20
Sub Staff 16 14 13
Total 78 70 64
N.B. Category A bank can reassess their manpower based on increase in
volume of business
85
10.15 The staffing pattern in branches may be done on the basis of the reach or
coverage area of each branch. Accordingly, two different categories as indicated
above have been designed and placed below:
Branches in Group I (Andaman & Nicobar, Arunachal Pradesh, Assam, Goa,
Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura);
Table No. 10.3.1
Branch Category/Business
level
Branch Manager
Accountant (JM II)
Field Officer (JMII)
Branch Asst
Supervisor
Sub Staff
Total
Above ` 50 crore 1(MMII) 2 2 1 2 2 10
Above ` 25 to ` 50
crore
1 (MMII) 2 2 1 1 1 8
Above ` 15 to ` 25
crore
1(JMI) 1 1 1 1 1 6
` 15 crore and
below.
1(JMI) 1 1 1 1 5
Group 2 (Chandigarh, Delhi and Puducherry):
Table No. 10.3.2
Branch Category/Business
level
Branch Manager
Accountant (JM II)
Field Officer (JMII)
Branch Asst
Sub Staff
Total
Above ` 50 crore 1(MMII) 2 2 2 1 8
Above ` 25 to ` 50
crore
1
(MMII)
2 1 1 1 6
Above ` 15 to ` 25
crore
1(JMI) 1 1 1 1 5
` 15 crore and
below.
1(JMI) 1 1 1 4
86
No Field Officers/Field supervisors are recommended for the fourth category
branches in Group 2 as the area of operation is limited.
Recruitment, Promotion and Transfer Policy
10.16 As regards Recruitment, Promotion and Transfer, the same has been
elaborated elsewhere in the report. The recommendations included in the
respective chapters will be applicable to the banks in the two tier system as well.
However, keeping in view distinct geographic and topographic feature of NER,
following suggestions are made in order to ensure professional recruitment. A
specialised recruitment organisation may be identified.
10.17 In order to address the banking need of NER, the training modules
prepared for cooperative banks may be revisited and the same may be oriented
to the needs of the banks in the region.
10.18 As most primary societies in NER are in dormant stage, specialised
training programmes may be conducted for field staff to promote, nurture and
revive societies.
10.19 In order to provide training in NER, Manpower Development and
Management Institute (MDMI) needs to be strengthened. As an alternative
measure, all StCB in NER may create local centres for MDMI to provide training
on site.
10.20 Other national level training institutes may also consider conducting
onsite programmes in North East to save on expenditure in travel and other
cost for the banks.
87
11. ENABLING POLICY /FRAMEWORK FOR EFFECTIVENESS OF HR
Background
11.1 Traditionally, Cooperative Banks are managed by a governance structure
which is still not effective as the same system is continuing despite
implementation of Vaidyanathan Committee recommendations. In view of
ongoing reforms, the challenges before the Cooperative Banks are increasing
day-by-day from financial and organisational as well as from the structural
point of view. The Cooperatives need to become more efficient, member driven
and member friendly, to meet the demands fully as per the needs for different
credit and non-credit based products with the aid of IT products/services for
various categories of members. DBT and payment systems have been
introduced by Govt for beneficiaries through banks by which Govt has started
making payments and passing welfare benefits under various GOI
programmes. The State Govts are also following the DBT route to transfer
multifarious benefits to intended beneficiaries.
11.2 The existing banking system including private sector banks with their
large banking outlets /BCs and with robust IT oriented products and services
are posing a stiff competition to the Cooperative banks for business expansion
and customer base retention/ expansion in rural/semi-urban areas. Further,
new banking outlets are coming up with the emergence of Small Finance Banks,
Payment Banks (including involvement of post office in payment bank system),
new Commercial banks, etc.
11.3 In order to meet the emerging challenges and also to meet the growing
expectations of all stakeholders/shareholders, the Committee feels that despite
HR & IT being crucial aspects of functional effectiveness, those alone will not
help to have more efficient cooperative structure. Hence, the Committee
recommends the following measures along with the recommendations made in
different chapters.
11.4 NABARD has advocated the constitution of a multifunctional High Level
Committee (HLC) for each State to periodically review the growth and ensure
orderly development of cooperatives. The Committee is very critical if
Cooperative Banks to be taken seriously by the stakeholders, it is imperative
88
that cooperatives adopt healthy financial goals and regulatory reforms, in the
absence of which they may even face difficulties. Therefore, the HLC
constituted in each State may assume its responsibility more seriously.
11.5 The HLC in order to help diversify the business activities of Cooperative
Banks, may facilitate the implementation of various schemes of Agriculture
Department, Department of Animal Husbandry and dairy, Department of
Horticulture, Agro & Food Processing, Small Industries Department and other
related departments implementing schemes in rural & semi-urban areas
through the network of cooperatives. This would help diversify and improve
business volumes.
11.6 In line with HLC, a District Level Advisory Committee may also be
constituted to help diverfying the business activities of the cooperative banks
by bringing convergence in implementing various schemes of Agriculture
Department, Department of Animal Husbandry and Dairy, Department of
Horticulture, Agro & Food Processing, Micro & Small Enterprises Department
and other related departments through the network of cooperatives.
11.7 Most of the single purpose societies are unable to scale up as of now. The
concept of functional societies, excepting dairy societies did not provide
supplemental role adequately which resulted in many societies becoming non-
viable. Also the societies in allied sectors such as fisheries, handlooms,
powerlooms etc have not been given due prominence in the cooperative system.
Therefore, the Committee suggests that the primary credit societies may
undertake multi-service activities, including processing, marketing, storage,
sales, procurement, etc. In addition, the non-viable functional societies in rural
areas which incur losses consecutively for more than five years may be merged
with the primary credit societies to achieve economy in their operation and
serve as one-stop shop for all types of rural activities.
11.8 Many societies in some States (such as Tamilnadu, Kerala) are mobilising
deposits and undertake other banking business as well. Some of the Societies
have very low CD Ratio, especially their lending to Agriculture sector is very
low. Although it is a fact that their functions are required for people at large
but these societies do not comply with the provisions of BR Act, hence, it may
be prudent for such societies to become primary cooperative banks. RBI may
89
review the policy for licensing of the PACS undertaking banking functions as
urban banks and create a room for the same. These urban banks may hive off
its non-banking functions to a separate entity.
11.9 In most States, the membership of cooperatives increases at the time of
election to cooperative institution. There is a tendency to enrol membership
just for the purpose of election after which there is hardly any members’ active
participation in business. To obviate this and for making the cooperatives
member driven, the participation in elections, both for contesting and for voting
may be allowed only to active members. The active members may be defined as
those who have borrowed from the cooperatives during any of previous three
years and not having overdue of more than one year, provided their
membership is not less than one year old as on 1 April preceding to date of
elections. This shall apply to banks as well as societies.
11.10 In order to ensure that the cooperative banks serve all the cooperatives
concerning farm and non-form sector in rural areas, all societies may be made
primary members of the banks with voting rights. If needed, depending on the
concentration of such societies, the cooperative banks may allocate number of
Board positions suitably to ensure that all stakeholder interests are served.Such
system is already observed in several states. This may be prescribed in the bye-
laws as the scope and concentration would be different for different area of
operation of banks.
11.11 There are a number of small size banks that are not financially viable. The
non-viable banks will be not be eligible to offer certain products like internet
banking, mobile banking, direct market access for NEFT/RTGS facility, etc. In
the absence of offering such IT enabled products these banks may become
redundant and non-significant in the area of operation. Hence, such small and
unviable banks need to be identified and merged or amalgamated in order to
achieve viability.
11.12 Keeping in view the increasing need to protect the interest of depositors
and larger role played by banks for the stability of monetary system, there may
be a need to review the present provisions of B R Act, 1949 (as applicable to
Cooperative Banks). Once a cooperative society is licensed a bank, the same
may function fully under B R Act, 1949 since most of the norms of Banks are
90
being made applicable to the Cooperative banks to facilitate a level playing field.
This would facilitate uniform regulation under a single BR Act and the cessation
of dual control. Hence provisions may be made appropriately by making
necessary amendments to the Cooperative Societies Act which may be used only
for the purpose of registration like in the case of NBFCs.
11.13 Further to facilitate the process, if necessary, the Central Government may
consider bringing out constitutional amendment that all institutions carrying
on the business as specified under BR Act are brought under central Act and
regulated by RBI, notwithstanding the ownership of cooperative banks. To
bring in greater transparency on the financial position of Cooperative Banks to
the shareholders, RBI may prescribe clearer and easily understandable
disclosure of financial statements.
11.14 For professionalising the Board, there is also need for segregating the
Governance and the Management function of the Cooperative Banks. The role
of the Board of Directors, may be limited to framing of policies, setting broad
business goals and reviewing the performance of the bank and for facilitation
of smooth functioning of Cooperative Banks. Appropriate policy on delegation
may be evolved such that majority of financial powers are delegated to
management. In addition, managing the day to day function and achieving the
goal of the Bank as set by Board would be the role of Management.
11.15 The Board may be professionalised by inducting more members with
voting and non-voting rights for their professional expertise on various aspects
such as Treasury & Investment, Technology/IT products, Legal, Project
financing, Risk management and compliance function depending on the need
of each of the Cooperative Banks.
11.16 Various Committees of the Board may be constituted with the members
from Board & Top management officials and external experts as may be
nominated by the Board. MD/CEO or senior executives of the bank will be
either Member Secretary of Committees or member of Committees as may be
decided by the Board. The day to day functioning of the bank should be vested
with MD/CEO for implementation of Board policy and decisions of
Committees.
91
11.17 The norms for contesting for Board of Directors, due diligence system
may be introduced. The contestants should not have been convicted in any
criminal case, a credit score of the candidate may be obtained which may meet
a minimum prescribed standard and the institutions with which the directors
are associated should not have defaulted in payment to its lenders.
11.18 For the purpose of providing more chances to other members and to
continue with the experienced board members, the State Acts may be amended
to provide for compulsory break for a board of director once after every two
consecutive terms and restrict the total number of terms as director upto five
terms in life time.
11.19 The Board of Directors and the Top management of Cooperative Banks
may be provided adequate training, exposure and sensitising on a continuous
basis at regular interval so as to ensure that policy changes in various
developmental activities in the Cooperative Banks are implemented effectively
as per the National/State level policy. This will enable the Cooperative Sector
to function more professionally in a dynamic environment and thus protect the
interest of the Shareholders and farmer Members.
11.20 The poor financial health of several of the cooperative banks are
attributable to sanctioning of big ticket loans to non-viable entities in violation
of CMA norms. Sanctioning of such loans by the Board may be incorporated as
a course for initiating action against the concerned directors individually or
collectively including supersession of the Board and disqualifying them for
contesting further elections. Such measures may be brought under BR Act as a
part of regulatory norms to safeguard depositors’ interest.
11.21 The fraud management system in Cooperative Banks needs streamlining.
There should be compulsory filing of FIR in case of any fraud instances in
banks. Where necessary, the State may have a separate economic offence wing
within the State investigation system, comprising trained staff in banking
related issues. The HLC may also review the fraud cases and take adequate care
to ensure action against the culprits by the banks.
11.22 The goal for Cost of Management of the StCB in general may be made 1%
and it may be brought down further to less than 1% of the Working Fund for
92
ensuring sustainability of the bank. However, in case of DCCBs the goal for
COM may be defined as 2% and gradually reduce to 1.5%. Plan may be drawn
for attaining the goal over a period of time.
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12. SUMMARY OF RECOMMENDATIONS
12.1 The change in business and regulatory environment, entry of
differentiated banks coupled with migration to technology driven banking has
posed a major challenge to the functioning of the Short Term Cooperative
Credit Structure. In order to achieve the benchmarks set in the changed
operational context, there is an urgent need to transform the nature and quality
of human resources in the cooperative banks.
12.2 In this connection, the Mitra Committee, formed in 2009, focused on
various aspects of human resources in the Cooperative Credit Structure and
recommended a comprehensive framework for preparation of Human
Resource Policies by banks. However, with the changes brought about by
implementation of technology enabled banking a need was felt to revisit the
human resource policies. The present Committee under the Chairmanship of
Shri R Amalorpavanathan, Deputy Managing Director, NABARD has made
reassessment of the factors influencing the business and operation of
cooperative banks and made suggestions for further improvement in the system
and procedures in the matters relating to assessment of human resources,
recruitment, terms of employment, technology, training and capacity building
to bring about professionalism in management of the cooperative banks. Also,
there are more fundamental issues plaguing the Rural Cooperative Banking
system. Unless these are addressed, mere addressing the human resource alone
may not bring the expected competitiveness among rural cooperative banking
system.
12.3 The major recommendations of the Committee are presented by capturing
the spirit of discussions made in different paragraphs of Chapters and/or the
need felt by the Committee for strengthening the banks.
12.4 Human Resource Analysis
12.4.1. Manpower Planning
i. More than 80% of officers in both StCBs and DCCB are either graduate
or post graduate. In case of clerical staff, more than 60% in StCBs and
more than 70% in DCCB are graduates or post graduates. Cooperative
94
Banks may prepare a comprehensive capacity building plan for officers
and clerical staff, keeping in view their job profile and emerging need of
the bank. (para 3.17)
ii. The entry level qualification for both officers and clerical cadre should
be graduate with knowledge of local language, proficiency in computer
operations and preferably having rural background. (para 3.18)
iii. As the staff qualification profile shows a low level of technical
qualification among staff members, the recruitment policy may be
framed to accommodate more people with relevant technical
qualification. (para 3.21)
iv. Though the overall age profile of the staff is below 50, the average age of
around 50% of officers is above 50 years. The banks need to prepare
annual recruitment plan and recruit at regular intervals to prevent any
vacuum in critical and senior positions. (para 3.22)
v. The banks should focus on reskilling of existing staff and maintain a
good motivational climate. In order that the banks do not add to
unnecessary costs, banks may consider providing increments as it is
now, with slight modification, for JAIIB/ CPCB-I and/or CAIIB/ CPCB-
II instead of JAIIB/ CAIIB. (para 2.29)
12.4.2 Focus on ALM & Investment- Specialised Manpower
i. Asset Liability Management Committee should be given adequate
training especially in pricing of credit, interest rate risk management and
liquidity management. Board Members may also be sensitised in this
aspect. (para 2.33)
ii. The SLR investments in Govt securities are generally long dated
instruments and the volatility is high depending on the coupon rate and
maturity. In managing Asset Liability investment, instruments play
significant role due to market liquidity for exiting portfolio. Most of the
banks especially Board level and senior staff may not having adequate
understanding about the performance of yields of investment portfolio
which may be underperforming due to poor selection of appropriate
95
instruments. Therefore, it is necessary that a set of personnel with right
type of skills, aptitude and knowledge are identified and their reskilling
done periodically. (para 2.18)
iii. Prudent fund and investment management has to comply with
CRR/SLR regulation and banks also need to maintain adequate liquidity
to meet repayment obligations, servicing of deposits and earn positive
net interest margin. This requires well-qualified and trained staff with
high integrity in handling large portfolio. Recruiting qualified staff and
training of at least 5-10 staff is an absolute necessity in every bank. As
such, fund management and investment training should be made
compulsory for all officials in the senior management. (para 2.20)
iv. The banks may incentivize staff members to acquire additional
professional qualification relevant to the specialised functioning of the
bank. (para 3.20)
12.4.3 Productivity Benchmark
i. The productivity level of staff in DCCBs is far below the industry level
and positive correction may be carried out by orienting the profile of staff
more towards officer cadre. (para 3.23)
ii. Lateral entry, wherever required for specialised areas like Treasury,
Information Technology, etc., may be provided for. Where there is less
scope for providing long term career progression in banks like legal
services etc., the services may be availed of by contracting with relevant
firms. (para 3.19)
iii. Keeping in view the new operational environment in post CBS, the role
of sub staff in banking operation has declined. However, in proportion
the number of sub staff to total staff is high in cooperative banks in
comparison to commercial banks. The same needs to be corrected while
assessing manpower. (para 3.16)
12.4.4 Cost of Management – Benchmark for Sustainability
In case of StCBs, the staff cost to income should be restricted to 10% and to
working fund may be restricted to less than 1%. Similarly in case of DCCBs, the
staff cost to income ratio may be limited to 15% and to working fund may be
96
limited to 1.5% in the long run. By watching these ratios, the recruitment may
be made in a gradually effective manner. (para 3.24)
12.5 CATEGORISATION OF BANKS AND BRANCHES
12.5.1 Categorization of the State Cooperative Banks / Branches (3
Tiers):
The StCBs have been categorized into A, B, C, and D categories on the basis of
overall business (total deposits and advances):
Bank Categorisation for StCBs in three tier structure based on business level:
• Category A - Above ` 20,000 crore
• Category B -Above ` 15000 crore to `20000 crore
• Category C -Above ` 7000 crore to `15000 crore
• Category D - ` 7000 crore and below.
(Para 4.3)
Branch Categorisation of StCBs (3 Tiers): Based on business level:
• Category A - Above ` 750 crore
• Category B -Above ` 250 crore to ` 750 crore
• Category C -Above `150 crore up to ` 250 crore
• Category D – ` 150 crore and below.
(para 4.4)
12.5.2 Categorisation of the DCCB / Branches :
The DCCBs have been categorized into A, B, C, and D categories on the basis of
business volume (total deposits and advances).
Bank Categorisation for DCCB based on business level :
• Category A - Above ` 4,000 crore
• Category B - Above ` 1500 crore to `4000 crore
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• Category C -Above ` 750 crore to `1500 crore
• Category D - ` 750 crore and below.
(para 4.5)
Branch Classification of DCCBs based on business level:
• Category A - Above ` 50 crore
• Category B - Above ` 25 crore to ` 50 crore
• Category - Above `15 crore to ` 25 crore
• Category D – ` 15 crore and below.
(para 4.6)
12.6 ASSESSMENT OF HUMAN RESOURCES
12.6.1 Keeping in view the role of officers in overall operation of the bank will
further enhance and in order to enrich the higher order functions of the bank,
the grades of the staff in various categories have been framed as per details
below.
Category of Officers:
• Senior Management - Grade SM I (GM/CGM in StCBs) & SM II (DGM in
StCBs; GM or DGM in DCCBs)
• Middle Management – Grade MM I (AGM) & MM II (Chief Manager)
• Junior Management - Grade JM I (Sr Manager/Manager) & JM II (Asst.
Manager)
Non-Officers
• Clerks & Computer operators – Office Assistant (Multi-Purpose)
• Sub-Staff – Peon /Messengers (Multi-purpose)
(para 5.6)
12.6.2 In comparison to the gradation suggested by Mitra Committee, one
additional grade in junior management has been created to man
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different categories of branch and at the same time give officers of junior
management grade opportunity to acquire sufficient operational
experience before they migrate to middle management cadre. Grand
total of staff assessed are given below in StCBs & DCCBs at Head Office
level (para 5.7)
12.6.3 Staff Deployment at Head Office – StCBs
Category of StCB - Size of Total Business
Bank Category A *
Above ` 20000 cr
B Above ` 15000 to
` 20000 cr
C Above ` 7000 cr to ` 15000
cr
D ` 7000
cr & below.
Grand Total 198 168 111 71
* Category A - StCB can reassess their staff requirement with increase in
business volume. The detailed break-up of the staff is given in the Chapter 5 of
the report.
Additional manpower may be required in StCB/ DCCBs where special function
are being carried out on behalf of their client/ customers or where such services
are being provided.
12.6.4 Staff Deployment at Head Office – DCCBs
Category of DCCB - Size of Total Business
A* Above ` 4000 crore
B Above ` 1500
crore to ` 4000 crore
C Above ` 750
crore to ` 1500 crore
D ` 750 crore
& below.
Grand Total 88 75 69 61
* Category A - DCCB can reassess their staff requirement with increase in
business volume. The details of posts is given in Chapter 5 of the report. (para
5.9)
12.6.5 Staffing Pattern for Branches of SCBs
Branch of StCBs (3 Tiers): Total Staff assessed are hereunder:
• Category A (Above ` 750 crore) - 17
99
• Category B - (Above ` 250 crore to ` 750 crore) - 14
• Category C -(Above `150 crore up to ` 250 crore) – 11
• Category D – ( ` 150 crore and below) - 7
The details of posts is given in the Chapter 5 of the report.
(Para 5.9)
12.6.6 Staffing Pattern for Branches of DCCBs
• Category A (Above ` 50 crore) - 11
• Category B - (Above ` 25 crore to ` 50 crore) - 10
• Category -(Above `15 crore to ` 25 crore) – 7
• Category D – ( ` 15 crore and below) - 6
The details of posts is given in Chapter 5 of the report.
Controlling Offices: In case of StCBs/ DCCBs having large volume of business
and/or area of operation they may consider opening controlling offices.(Para
5.10)
12.6.7 In order to have a better supervision over societies, one field supervisor
at DCCB Branch level may be posted for every 8 to 10 active societies having
business with DCCB. (para 5.11)
12.6.8 In order to manage the branch and other essential services, a 5% leave
reserve on the assessed manpower can be maintained. (para 5.12)
12.7 RECRUITMENT PROCESS
12.7.1 Plan for staff acquisition
i. It is felt that the banks would have to assess the staff requirement on an
ongoing basis keeping in mind the addition and deletion of items of
work, growth in business volume and activities, the quantum of staff at
different levels who would retire, staff who have left or have taken
voluntary retirement, to arrive at the necessary manpower. The
assessment of the staff strength made by the Board needs to be approved
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in consultation with High Level Committee taking into account the needs
and financial condition of the bank. (para 6.5)
ii. The Board of Directors of the bank may assess the number of vacancies
to be filled-in and proceed to fill them up based on the approval of staff
strength by the competent authority in different cadres, as per the policy
framed. These vacancies shall be assessed every year as per norms and
should cover both existing and those falling vacant during the ensuing
year, on account of superannuation, resignation, etc. The number of such
posts to be filled-in should take into account not only such vacancies, but
also profitability, Cost of Management (CoM), Staff Cost, and
Government Reservation Policies, etc. Boards may also be authorized to
create supernumerary, non-repetitive posts up to six months (leave
reserves) for persons to be taken in place of lady employees proceeding
on maternity leave. In respect of open market recruitment which is time
consuming due to prudent follow up of procedures, the banks should
plan at least a year in advance. (para 6.6)
iii. Direct Recruitment in most Cooperative banks is traditionally done only
in respect of subordinate staff, clerical staff, and for the entry level
officers. In view of the changing environment where technically skilled
officers are required more, the bank could consider hiring officers – both
entry level and higher, depending on the exigency. (para 6.7)
iv. It is suggested that with the exception of technical services, entry level of
all other officers would be the Junior Management level, i.e., the first
level for officers (JM II). In case of Technical Services, such as technical
(Agricultural and rural development disciplines), Finance and IT, the
entry level could be that of Junior Management (JM I) as core team.
(para 6.24)
v. Support staff, i.e. in the clerical cadre may be recruited depending on the
need of the individual bank. Such staff may be designated as Banking
Assistant, who can be taken by direct recruitment or on contract basis
depending on the need. They may also be deployed as Data Entry
Operator, Clerk, Cashier or Clerk-cum-Cashier, etc. as the situation
demands. (para 6.25)
101
vi. Recruitment of sub-staff may be limited to around 10 to 15% % of total
staff requirment. (para 6.26)
vii. The problem of career progression in case of specialized posts cited
above (Finance/ IT Officers, etc.) being sensitive to acute attrition, may
raise issues; therefore, such personnel may be hired on term contract
basis for items of skilled work, particularly major IT related work. (para
6.29)
viii. Staff like security guards, drivers, Maintenance staff, and any other
casual function etc., may be outsourced based on suitable hiring policy.
However, security aspects need to be kept in mind while outsourcing.
(para 6.31)
ix. Knowledge of audit in a computerized environment is critical for
appropriate internal control and supervision. To this extent the internal
and concurrent auditors need to be trained. However, systems audit can
be outsourced to qualified auditors. (para 8.14)
12.7.2 Qualification & Test
i. The MD or CEO may be promoted from the ranks or in the event of non-
availability of such an officer with requisite experience, a professional
may be recruited from the banking sector or open market by an agency.
He should satisfy the ‘Fit and Proper’ criteria as prescribed by RBI. It
may be ensured that the CEO may not be posted by the State govt. or
deputed from it. The bank would therefore be managed by banking
personnel, with appropriate qualifications and skills. (para 6.10)
ii. Recruitment of officer staff may be through a process of written exam
and interview. Relative weightage of written exam to interview may be
85:15. And for clerical cadre only written test may be considered (para
6.17)
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12.7.3 Recruitment Body
i. The selection of the candidates through written examination under direct
recruitment to the posts of officers and employees other than sub staff,
may be entrusted to an independent and reputed National/ State level
organization having relevant expertise and experience and which
specializes in recruitment of banking personnel. (para 6.13)
ii. HR Agency: There may be a National/ State level mechanism for
recruitment and promotion to different grades for Cooperative Banks. A
detailed mechanism may be worked out on the line of IBPS and other
similar professional organizations. This body will work on sustainable
basis and take care of needs of StCBs and DCCBs. Later, this agency can
also recruit personnel for PACS and societies as well. The development of
such specialized organization will help professionalizing the Cooperative
banking system in changing environments. In the long run, all credit
cooperatives may consider creating a National/ State level agency as a
federal set-up for this purpose. (para 6.32)
iii. The services of IBPS/ CPEC/ Service Commission or Board may be
considered till the new mechanism starts functioning. (para 6.32)
12.8 PROMOTION AND PLACEMENT
12.8.1 Promotion system & processes at Junior/Middle level
At present some StCBs/CCBs (such as in A.P, Telangana etc) are availing of the
services of IBPS for promotion processes as mentioned in the earlier paragraph.
Hence, promotion processes (conduct of written examination, interview etc, as
may be applicable at bank’s level) may be completed with the help of an
independent National/ State level agency such as IBPS/CPEC/Service
Commission at State level or any such other agency. (para 7.11)
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12.8.2 Promotion/recruitment at senior level post
i. The officers in senior level of StCB and CCBs will be promoted through
a system of state wide selection process for placing them in StCB and
across the CCBs including the parent bank. A person in the Senior level
will be selected for promotion subject to clearance of vigilance
/disciplinary case against such person. The placement will be done by
following counselling method as per rank given by the concerned agency
as mentioned, and with the approval of the concerned Bank’s Board to
give effect to the promotion or recruitment in case the person is placed
from other bank/s. (para 7.12)
ii. StCBs may take the lead in preparing a well-documented human
resources policy, which would incorporate performance measurement,
training, transfer, placement, etc. (para 7.2)
iii. The policy may lay down a clear career path, logical career progression
linked with performance and experience, defining minimum tenure at
each level (grade) on the basis of an average service span, making
experience and performance the criteria for promotion and providing
greater clarity in role definition and job enrichment. (para 7.3)
12.9 COMPUTERISATION AND IT IN COOPERATIVE BANKS
12.9.1 IT Management & Services
Cooperative Banks may initiate steps to form a federal non-profit organisation
to manage IT related issues on behalf of all Cooperative banks. All stakeholders
may own this national level entity on a cost sharing basis both for capital and
working expenses. This will be an easier and cost efficient method for managing
technology. The expertise of institutions like NIC or IDRBT/ IFTAS may be
utilised to give a shape to the proposed organisation. Eventually all cooperative
banks may move over to a professionally managed common platform which
may be hosted by this National Entity. NAFSCOB may spearhead such
initiatives. (para 8.16)
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12.9.2 IT Core Team
A small core IT team may be established to take care of the Service Level
Agreement (SLA) management and vendor management. Other than this team,
other employees may be involved in carrying on the banking/ other services
based on software being provided to them. (para 8.27)
12.9.3 IT Training & Education
i. Customer Digital Education is critical and needs to be done in a big way
through Digital Financial Literacy Centres. (para 8.21)
ii. Training and workshops for the Bank staff - The existing manpower of
the Bank should be continuously trained on the basics of IT to make
them comfortable working in an IT environment. (para 8.29)
iii. Each bank may create a Computer Lab based on the number of branches
in the banks. The lab may be used for IT based training/ capacity
building of the staff members. (para 8.30)
12.10 Training and Capacity building in Cooperative Banks
Recommendations on training and capacity building.
12.10.1 Training Needs, Plan & Organisation
i. Training Need Analysis (TNA) may be prepared by all the StCBs/ DCCBs
to arrive at a realistic training policy and requirement. Training may be
on - location and off-campus as per types/ nature of training and needs
of cadre. Desk training, e-learning tools and mobile job training could be
used as per need.
ii. Training effectiveness audit in respect of ACSTIs to be conducted
through an independent agency like C-PEC to ensure that the training
provided is actually relevant to the job on hand.
iii. BIRD may coordinate with the Training Establishments of Cooperative
Banks or such other National level training institutions to provide
overall guidance in building training strategy, content development and
conduct of high end programmes for senior functionaries of cooperative
banks. Experienced persons from banks/ FIs/ other TEs may be
105
inducted to coordinate with International Cooperative Training (ICTs)
establishments as well.(Para 9.24)
12.10.2 Training Policy
i. Training fund may be created by all banks and part of it may be
contributed to the State level or National level Training
establishments, to give a sense of Ownership to the cooperatives
with the Training establishment.
ii. The Banks may have systematic Training Deputation Policy
wherein a training profile is maintained for all the staff members
which not only provides details of training undergone by the
individual staff, but also an assessment of training required based
on the job profile of the staff concerned. (Para 9.24)
12.11 Manpower Assessment in Two Tier StCB (All NER States, A & N,
Sikkim, Delhi, Goa, Chandigarh & Puduchchery) – 13 StCBs
12.11.1 Categorization of banks – Based on business volume and Staff
Assessed at Head Office
Category A: StCBs - Above ` 2500 crore; - 78 staff
Category B: StCBs - Above ` 1000 crore to ` 2500 crore – 70 staff
Category C: StCBs - ` 1000 crore and below - 64 staff
The details of posts are given in the Chapter 10 of the report.
(Para 10.12 to 10.14)
12.11.2 Branch – Categorised into 2 groups and Staff Assessment
Group I (Andaman & Nicobar, Arunachal Pradesh, Assam, Goa, Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim and Tripura);
Category A: StCBs - Above ` 50 crore; - 10 staff
Category B: StCBs - Above ` 25 crore to `50 crore – 8 staff
Category C: StCBs -Above ` 15 crore to ` 25 crore – 6 staff
Category D StCBs - ` 15 crore and below – 5 staff
(Para 10.15)
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Group 2 (Chandigarh, Delhi and Puducherry):
Category A: StCBs - Above ` 50 crore; - 8 staff
Category B: StCBs - Above ` 25 crore to `50 crore – 6 staff
Category C: StCBs -Above ` 15 crore to ` 25 crore – 5 staff
Category D StCBs - ` 15 crore & below – 4 staff
12.12 Enabling Policy /Framework for Effectiveness of Human
Resources
The following recommendations are also made keeping in view the ongoing and
future challenges and for making the Cooperative System a more efficient
structure to serve the members better. These recommendations may be
implemented along with the recommendations made under HR, IT and other
areas as given above. Whenever required, the concerned State Acts and / or by-
laws may be amended keeping in view the spirit of these recommendations.
Business, Viability & Monitoring
12.12.1 NABARD has advocated the constitution of a multifunctional High
Level Committee (HLC) for each State to periodically review the growth and
ensure orderly development of cooperatives. The Committee is of the view that
if Cooperative Banks to be taken seriously by the stakeholders, it is imperative
that cooperatives adopt healthy financial goals and regulatory reforms, in the
absence of which they may even face difficulties. Therefore, the HLC
constituted in each State may assume its responsibility more seriously. (para
11.4)
12.12.2 In line with HLC, a District level Advisory Committee may also be
constituted to help diversifying the business activities of cooperative banks by
bringing in convergence in implementing various schemes of Agriculture
Department, Department of Animal Husbandry and Dairy, Department of
Horticulture, Agro & Food Processing, Micro & Small Enterprises Department
and other related departments through the network of cooperatives. (para 11.6)
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12.12.3 Most of the single purpose societies are unable to scale up as of now.
The concept of functional societies, excepting dairy societies did not provide
supplemental role adequately which resulted in many societies becoming non-
viable. Also, the societies in allied sectors such as fisheries, handlooms, power
looms, etc have not been given due prominence in the cooperative system.
Therefore, the Committee suggests that the primary societies may undertake
multi-service activities, including processing, marketing, storage, sales,
procurement, etc.(para 11.7)
12.12.4 The non-viable functional societies in rural areas which incur losses
consecutively for more than five years may be merged with the primary credit
societies to achieve economy in their operation and serve as one-stop shop for
all types of rural activities. (para 11.7)
12.12.5 There are number of small size banks that are not financially viable. The
non-viable banks will not be eligible to offer certain products like internet
banking, mobile banking, direct market access for NEFT/RTGS facility, etc. In
the absence of offering such IT enabled products, these banks may become
redundant and non-significant in the area of operation. Hence, such small and
unviable banks need to be identified and merged or amalgamated in order to
achieve viability. (para 11.11)
12.12.6 In order to ensure that the cooperative banks serve all the cooperatives
connected with farm and non-farm sector in rural areas, all societies may be
made primary members of the banks with voting rights. If needed, depending
on the concentration of such societies, the cooperative banks may allocate
number of Board positions suitably to ensure all stakeholders’ interests are
served. Such system is already observed in several States. This may be
prescribed in the bye-laws as the scope and concentration would be different
for different area of operation of banks. (para 11.10)
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Electoral System & Member Participation
12.12.7 In most States, the membership of cooperatives increases at the time of
election to cooperative institutions. There is a tendency to enroll membership
just for purpose of election after which there is hardly any active participation
in business by the members. To obviate this and for making the cooperatives
really member driven, the participation in elections, both for contesting and for
voting, may be allowed only to active members. The active members may be
defined as those who have borrowed from the cooperatives during any of
previous three years and not having overdue of more than one year, provided
their membership is not less than one year old as on 1 April preceding the date
of elections. This shall apply to banks as well as societies. (para 11.9)
12.12.8 Due diligence system may be introduced as the norm for contesting for
Board of Directors. The contestants should not have been convicted in any
criminal case, a credit score of the candidate may be obtained which may meet
a minimum prescribed standard and the institutions with which the directors
are associated should not have defaulted in payment to its lenders. (para 11.17)
Regulation & Supervision 12.12.9 Many societies in some States (such as Tamilnadu, Kerala) are
mobilising deposits and undertake other banking business as well. Some of the
Societies have very low CD Ratio, especially since their lending to Agriculture
sector is very low. Although it is a fact that their services are required by people
at large, these societies do not comply with the provisions of BR Act, 1949 (As
Applicable to Cooperative Banks). Thus, it may be prudent for such societies to
become primary cooperative banks. RBI may review the policy for licensing of
the PACS undertaking banking functions as urban banks and create a room for
the same. These urban banks may hive off its non-banking functions to a
separate entity. (para 11.8)
12.12.10 Keeping in view the increasing need to protect the interest of
depositors and larger role played by banks for the stability of monetary system,
there may be a need to review the present provisions of B R Act, 1949 (AACS).
Once a cooperative society is licensed as a bank, the same may function fully
109
under B R Act, 1949 since most of the norms of Banks are being made applicable
to the Cooperative banks to facilitate a level playing field. This would facilitate
uniform regulation under a single BR Act and the cessation of dual control.
Hence provisions may be made appropriately by making necessary
amendments to the State Cooperative Societies Act which may be used only for
the purpose of registration as in the case of NBFCs. (para 11.12)
12.12.11 Further to facilitate the process, if necessary, the Central Government
may consider bringing in constitutional amendment so that all institutions
carrying on the business of banking, as specified under BR Act are brought
under Central Act and regulated by RBI, notwithstanding the ownership of
cooperative banks. (para 11.13)
12.12.12 To bring about greater transparency with regard to the financial
position of Cooperative Banks to the shareholders, RBI may prescribe clear and
easily understandable disclosure of financial statements. (para 11.13)
12.12.13 The poor financial health of several cooperative banks is attributable
to sanctioning of big ticket loans to non-viable entities in violation of CMA
norms. Sanctioning of such loans by the Board may be incorporated as a course
for initiating action against the concerned directors individually or collectively
including supersession of the Board and disqualifying them for contesting
further elections. Such measures may be brought under BR Act, 1949 as a part
of regulatory norms to safeguard depositors’ interest.(Para 11.20)
Loan Policy & Profitability/Viability
12.12.14 High CD ratio is not desirable as it indicates high level of credit risk
and over dependence on higher financing agencies. This may result in low
Capital to Risk Weighted Asset Ratio (CRAR). The banks may make efforts to
bring down the CD Ratio to around 100% progressively over a period of time.
(para 2.21)
12.12.15 The transfer price mechanism may be devised appropriately by each
bank to assess the viability of branches. The banks may scientifically work out
the viability and may merge/ amalgamate the branches, wherever it is not
viable. Amalgamation/merger may reduce manpower requirement at the
branch level. (para 2.13)
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12.12.16 As in the case of commercial banks, RBI/NABARD may consider
prescribing a broad framework for fixing of interest rate by cooperative banks,
so that the pricing is driven by the strengths of the banks, with certain limited
flexibility. (para 2.32)
12.12.17 The banks with low CD ratio combined with high ID ratio may
rationalise the interest rate on deposits to retain their serviceability and
improve their lending portfolio. (para 2.22)
12.12.18 The borrowing level of banks other than deposits may be brought down
to 25% of credit outstanding in a gradual manner. (para 2.23)
Governance & Management
12.13.1 The banks and the societies are issuing shares at a price equivalent to
face value every time they are issued. This has no relevance to the time value of
money or book value of shares and the actual realisable value of share capital.
Share capital is the claim of shareholders on the realisable value of all assets
which are accruing to the banks/societies from time to time. Therefore, issuing
share capital at face value at all times is not appropriate. Hence the banks and
societies may introduce the system of issuing shares at a minimum price at least
equivalent to book value per share as at the end of previous year. The share
premium if any, may accrue to the reserves. (para 2.34)
12.13.2 The State Governemnts’s share contribution may be restricted to 25%
and the balance, if any, may be converted to Long Term Debt for counting the
same as Tier II capital.(Para 2.35)
12.13.3 For professionalising the Board, there is also need for segregating the
Governance and the Management function of the Cooperative Banks. The role
of the Board of Directors, may be limited to framing of policies, setting broad
business goals, reviewing the performance of the bank and facilitation of
smooth functioning of Cooperative Banks. Appropriate policy on delegation
may be evolved such that majority of financial powers are delegated to
management. In addition, managing the day to day functions and achieving the
goals of the Bank as set by Board, would be the role of Management. (para 11.14)
12.13.4 For the purpose of providing more opportunities to other members and
to continue with the experienced Board Members, the State Acts may be
111
amended to provide for compulsory break for a Board of Director once, after
every two consecutive terms and restrict the total number of terms as director
up to five terms in life-time. (para 11.18)
12.13.5 The fraud management system in cooperative banks needs
streamlining. There should be compulsory filing of FIR in case of any fraud
instances in banks. Wherever necessary, the State may have separate economic
offence wing for investigation, comprising trained staff in banking related
issues. The HLC may also review the fraud cases and take adequate care to
ensure action against the culprits by the banks. (para 11.21)
12.13.6 Various Committees of the Board may be constituted with the members
from Board & Top management officials and external experts as may be
nominated by the Board. MD/CEO or Senior Executive of the bank will be either
Member Secretary of Committees or member of committees as may be decided
by the Board. The day to day functioning of the bank should be vested with
MD/CEO for implementation of Board policy and decisions of Committees.
(para 11.16)
12.13.7 The Board of Directors and the Top management of Cooperative Banks
may be provided adequate sensitization and exposures on continuous basis at
regular interval so as to ensure that the bank’s policy changes are based on
developments in the Banking Sector, Cooperative Banks and National/State
level financial environment. (para 11.19)
12.14 Conclusion
The above recommendations cover a wide range of issues involving the
functioning of the Short Term Cooperative Credit Structure. In order to
operationalize the recommendations, separate working groups at appropriate
levels may be constituted to examine in detail the institutional, financial and
legal aspects of the recommendations and accordingly prepare operational
guidelines.
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ANNEXURE – I HO DEPARTMENT STRUCTURE OF STCBS
Mitra
Committee Recommend
ed
Sr No
Broad Category of Department
Category of Sub –
Departments
Broad Category of Department
Category of Sub –
Departments 1 Funds
&Accounts (Specialised)
1 Fund Management
Funds &Accounts (Specialised)
Fund Management
2 Investment Investment & Treasury
3 Accounts Asset Liability Management
4 Bank/ Branch Reconciliation
Risk Management
5 Accounts 6 Bank/ Branch
Reconciliation 7 Taxation
2 Banking Operations (General and Specialised)
8 Bank/ Branch Remittance
Banking Operations (General and Specialised)
Bank/ Branch Remittance, cash Management and ATM
9 BM Meeting Branch banking through review and coordination
10 Coordination Branch Expansion Planning and Br Viability
11 Cash Management
Deposit mobilization
12 Monitoring & Follow-up with CCBs/ Federations
Monitoring & Follow-up with CCBs/ Federations
13 Budgeting & Planning
14 Financial data Analysis
15 Reconciliation of loan accounts
16 Statutory Returns
113
Mitra Committee
Recommended
Sr No
Broad Category of Department
Category of Sub –
Departments
Broad Category of Department
Category of Sub –
Departments 17 Non-banking
business – Insurance, Pension
3 Loans &
Advances (Specialised)
18 Appraisal Loans & Advances (Specialised)
Appraisal
19 Policy Policy and New Loan product
20 Loans and Advances to affiliated societies/ Federations
Loans and Advances to DCCBs
21 Retail Loan 22 Loans and
Advances to affiliated societies/ Federations
21 Monitoring of loans and advances
Monitoring of loans and advances
23 Interest subvention/ Crop Insurance
24 Recovery Recovery 25 NRLM/ JLG/
SHG/ FPO
4 Planning and Development
(General)
26 Corporate Planning
Planning and Development (General)
Corporate Planning
27 DAP/ MoU/ Business Development
DAP/ MoU/ Business Development
28 Policy Matters
Policy Matters
29 GovtProgrammes/ GoI Package
Govt Programmes/ GoI Package
30 Financial Inclusion
114
Mitra Committee
Recommended
Sr No
Broad Category of Department
Category of Sub –
Departments
Broad Category of Department
Category of Sub –
Departments 31 Research
related – New Banking Products, Marketing, Publicity, Public relations
Research related – New Banking Products, Marketing, Publicity, Public relations
32 MIS MIS
33 SLBC and other Forum
SLBC and other Forum
34 Public Relations, Advertisement and awareness drive
5 Inspection& Audit
(Specialised)
35 Inspection of branches
Inspection& Audit (Specialised)
Inspection of branches
36 Internal Audit
Internal Audit
37 NABARD Inspection compliance
NABARD Inspection compliance
38 Off-site surveillance
Off-site surveillance and ENSURE
39 Audit of branches
Audit of branches
40 Statutory Audit, Follow-up, compliance
Statutory Audit, Follow-up, compliance
41 Fraud Prevention and Control
42 Supervision of DCCBs and PACS
6 Vigilance
(General) 43 Vigilance Vigilance
(General) Vigilance
7 HRMD, Board
and Gen. 44 Industrial
Relations HRMD, Board and
Industrial Relations
115
Mitra Committee
Recommended
Sr No
Broad Category of Department
Category of Sub –
Departments
Broad Category of Department
Category of Sub –
Departments Admin
(General) Gen. Admin (General)
45 Staff Matters - Recruitment
Staff Matters - Recruitment
46 Transfer Transfer
47 Promotion Placement
Promotion Placement
48 Service Records
Service Records
49 Secretariat to the Board and other Committees of the Board
Secretariat to the Board and other Committees of the Board
50 Liaison with SG/ NABARD/RBI
Liaison with SG/ NABARD/RBI
51 General Admin, RTI
General Admin, RTI
52 Legal 8 Information
Technology Cell 53 Reporting to Management and coordinating with
Senior Management 54 Co-ordination with all vendors 55 Database monitoring & back up 56 Maintenance and upgradation of hardware and
software 57 Clearing and Reconciliation – RTGS/ NEFT/ DBT 58 Transactions related to clearing in relation to
Automated Clearing House (ACH – DR/ CR); Both NACH and ACH transactions; Monitoring NPCI submissions
59 Reconciliation of HO/ Branch Data 60 MIS Co-ordination with all departments and
branches. Viz., - RBI/OSS/ENSURE /MSC Reports etc. Regular backup of MIS Reports
116
ANNEXURE – II HO DEPARTMENTAL STRUCTURE FOR CCBS
Mitra
Committee Recommend
ed
Sr
No
Broad Category of Department
Category of
Sub – Departments
Broad Category of Department
Category of
Sub – Departments
1 Funds &Accounts (Specialised)
1 Fund Management
Funds &Accounts (Specialised)
Fund Management
2 Investment Investment & Treasury
3 Treasury Asset Liability Management
4 Accounts Risk Management
5 Bank/ Branch Reconciliation
Accounts
6 Bank/ Branch Reconciliation
7 Taxation
2 Banking Operations
(Specialised)
8 Bank/ Branch Remittance
Banking Operations (Specialised)
Bank/ Branch Remittance, cash Management and ATM
9 Branch Managers Meeting
Branch banking through review and coordination
10 Coordination Branch Expansion Planning and Br Viability
11 Cash Management
Deposit mobilization
12 Monitoring & Follow-up PACS
Monitoring & Follow-up with CCBs/ Federations
117
Mitra Committee
Recommended
Sr
No
Broad Category of Department
Category of
Sub – Departments
Broad Category of Department
Category of
Sub – Departments
13 Budgeting & Planning
14 Financial data Analysis
15 Reconciliation of loan accounts
16 Statutory Returns
17 Non-banking business – Insurance, Pension
3 Loans & Advances
(Specialised)
18 Appraisal Loans & Advances (Specialised)
Appraisal
19 Loans and Advances to affiliated societies/ Federations
Policy and New Loan product
20 Monitoring of loans and advances
Loans and Advances to affiliated societies/ Federations
21 Recovery Retail Loan
22 Monitoring of loans and advances
23 Interest subvention/ Crop Insurance
24 Recovery
25 NRLM/ JLG/ SHG/ FPO
118
Mitra Committee
Recommended
Sr
No
Broad Category of Department
Category of
Sub – Departments
Broad Category of Department
Category of
Sub – Departments
4 Planning and Development
(General)
26 Corporate Planning
Planning and Development (General)
Corporate Planning
27 Budget Budget
28 DAP/ MoU/ Business Development
DAP/ MoU/ Business Development
29 Govt Programmes
Govt Programmes
30 New Banking Products, Marketing, Publicity, Public relations
New Banking Products, Marketing, Publicity, Public relations
31 Branch Expansion
Branch Expansion
32 DLCC/ BLBC and other Forum
DLCC/ BLBC and other Forum
33 Preparation of various schemes for the Bank, affiliated CCBs and PACS
34 PACS supervision and monitoring
5 Inspection& Audit
(Specialised)
35 Inspection Inspection& Audit (Specialised)
Inspection
36 Internal/ External Audit
Internal/ External Audit
37 NABARD Inspection compliance
NABARD Inspection compliance
119
Mitra Committee
Recommended
Sr
No
Broad Category of Department
Category of
Sub – Departments
Broad Category of Department
Category of
Sub – Departments
38 Audit of branches
Audit of branches
39 Statutory Inspection, Follow-up, compliance
Statutory Inspection, Follow-up, compliance
40 Of-site surveillance and ENSURE
41 Fraud Prevention and control
6 Vigilance (General)
42 Vigilance Vigilance (General)
Vigilance
7 HRMD, Board and Gen.
Admin (General)
43 Industrial Relations
HRMD, Board and Gen. Admin (General)
Industrial Relations
44 Staff Matters - Recruitment
Staff Matters - Recruitment
45 Training Training
46 Transfer Transfer
47 Promotion & Placement
Promotion & Placement
48 Secretariat to the Board and other Committees of the Board
Secretariat to the Board and other Committees of the Board
49 Liaison with SG/ NABARD/RBI
Liaison with SG/ NABARD/RBI
50 RTI RTI
51 Legal
120
Mitra Committee
Recommended
Sr
No
Broad Category of Department
Category of
Sub – Departments
Broad Category of Department
Category of
Sub – Departments
8 Information Technology
Cell
52 Reporting to Management and coordinating with Senior Management
53 Co-ordination with all vendors
54 Database monitoring & back up
55 Maintenance and upgradation of hardware and software
56 Clearing and Reconciliation – RTGS/ NEFT/ DBT
57 Transactions related to clearing in relation to Automated Clearing House (ACH – DR/ CR)
Both NACH and ACH transactions
Monitoring NPCI submissions
58 Reconciliation of HO/ Branch Data
59 MIS Co-ordination with all departments and branches. Viz., - RBI/OSS/ENSURE /MSC Reports etc. Regular backup of MIS Reports
121
ANNEXURE - III MODEL FORMAT OF PERFORMANCE
APPRIASAL REPORT
(A) Employee particulars
i. Personal details
Name of the employee
Employee Code/No.
Designation/Position
Date of Birth
Qualifications
Length of service in the present grade
Years Months
Total Length of Service Years Months
ii. Career History (up to present)
Departments/Branch/Regional Office served
Period
From To
Period upto 3 years only may be indicated in the table above. Other departments/branches/offices worked in may be indicated separately without period
iii. Training Programmes attended during the year under review.
Programme Name of Institute From To
122
(B) Appraisal of performance during the year
(To be filled in/written by the Appraisee Officer)
i. Major items of work/functions attended during the year and performance
Item of Work Self-assessment of performance
ii. Any outstanding work/achievement to report:
iii. Any other comments :
Signature of Appraisee
Officer with date
C Performance Rating (by Appraiser/Reporting Officer)
123
i. The following rating scale may be used to assess performance/key result areas and attributes of the appraisee officer:
Grade Measure Score
A Outstanding (exceptional performance) 90-100
B Good (above average performance) 70-89
C Average (adequate performance) 50-69
D Below Average (Sub par performance;
needs improvement) 35-49
E Poor (requires considerable
improvement and counselling) Below 35
The following chart/table may be used to assess the performance
ii. Job performance/key result areas:
Sr.No
Job Performance Areas Grade Comments, if any*
1 Deposit Mobilisation
2 Loans Issued/ Disbursed
3 Recovery of Loan
4 Customer Service
5 Transactions processed
6 Documentation/ filing of returns etc.
7 Branch Profitability(In case of branch posting)
124
8 Others (Specify)
*Quantifiable indicators may be given
iii. Performance Attributes:
Sr.No Parameters Rating (Grade) Comments/ Observations
1 Knowledge of work
2 Planning and Organisational Ability
3 Analytical/ Judgement ability
4 Leadership/ Management
5 Adherence for schedules/ deadlines
6 Decision making power
iv. Personality Attributes:
Sr.No Parameters Rating (Grade) Comments/ Observations
1 Personality
2 Communication skills
3 Interpersonal relations
4 Reliability/ Dependency
5 Integrity/ Faithfulness
6 Creativity/ Initiatives
v. Overall Rating
Taking into account the employee’s job performance, performance attributes and the personality attributes, the overall assessment should be summarized as under:
125
Overall Rating of the Employee (Marking relevant box):
A B C D E
D Potential Appraisal (To be filled in by Appraiser/Reporting Officer)
1. Major strength and weaknesses of Appraise Officer
• Strengths (brief account)
• Weakness (briefly narrated)
2. Areas for improvements (to be filled in by Appraiser Officer)
• Suggestions for training/change in present job
3. Whether any Administrative/Disciplinary Action had been initiated/taken against the appraisee. If so, the reasons and outcome may be recorded
126
4. Assessment of potential of Appraisee officer
• Whether promotable and capable of shouldering higher responsibilities in the immediate future or require some more time may be indicated
Training Need as assessed by the Reporting Officer
(On Job training/Inservice Training/ Knowledge Based Training, etc., may be indicated)
Type Institute
127
E) Review – PAR (By Review Committee)
Review of appraisal – comments in favour or otherwise
• Overall rating based on comments.
A B C D E
Comments on training needs
Comments on consideration for promotion
Signature of the Head of Review
Committee
Designation
Date
F) Approval by HRD
General Manager
Signature and Date
CEO of the bank
Signature and date
128
G) Feedback to Appraisee
Date of
Feedback
Name of officer giving
feedback
Signature
F) Signature of Appraisee with date:
129
ANNEXURE – IV DATA SUMMARY
Table No. 3.8
Staff Strength – DCCBs
Category of staff
Staff Position as on 31.03.2016
Retirements in the next 5 years
Percentage of staff retiring in next 5 years
Officers 8557 2408 28.14 Clerical 11828 1238 10.47 Sub Staff 5375 1085 20.19
Table No. 3.9.1
StCB
PG/UG Tech CAIIB Officers 79.97 8.98 6.03 Clerical Staff 64.65 8.75 2.38 Sub Staff 7.17 - - Total 55.51 6.66 3.02
Table No. 3.9.2
DCCB
Staff Category PG/UG Tech CAIIB Officers 83.31 5.59 1.72 Clerical Staff 77.69 5.15 0.49 Sub Staff 5.45 - - Total 64.76 4.25 0.85
130
Table No. 3.10.1
Age Profile
StCB 20-30 30-40 40-50 50-55
Above 55 Total
Senior Officers 0 5 36 14 29 84 % to total 0 5.95 42.86 16.67 34.52 Mid Level Officers 19 28 66 35 76 224 % to total 8.48 12.50 29.46 15.63 33.93 Junior Officer 36 50 86 124 63 359 % to total 10.03 13.93 23.96 34.54 17.55 Cleriacal/Accountant 148 173 128 43 24 516 % to total 28.68 33.53 24.81 8.33 4.65 Sub Staff/Driver 79 98 128 75 76 456 % to total 17.32 21.49 28.07 16.45 16.67 National Total 282 354 444 291 268 1639 % to total 17.21 21.60 27.09 17.75 16.35
Table No. 3.10.2
DCCB 20-30 30-40 40-50 50-55 Above
55 Total Senior Officers 4 30 89 156 225 504 % to total 0.79 5.95 17.66 30.95 44.64 Mid Level Officers 57 119 381 547 526 1630 % to total 3.5 7.3 23.37 33.55 32.26 Junior Officers 109 453 1543 1356 899 4360 % to total 3.5 10.39 35.39 31.1 20.62 Clerical/Accountant/ L.S 1755 2812 2708 1639 907 9821 % to total 17.86 28.63 27.57 16.68 9.23 Sub Stafff / Driver 423 768 1374 1000 685 4250 % to total 9.95 18.07 32.32 23.52 16.11 Total Number 2348 4182 6095 4698 3242 20565 Total % 11.41 20.33 29.63 22.84 15.76
Table No. 3.11
Business Parameters
StCB Amount (` in crore) Business Per Branch 205.41 BusinessPer Staff 17.97 Deposit per Branch 96.68 Deposit Per Staff 8.46 Advances per Branch 108.72 Advances per staff 9.51 DCCB Amount (` in crore) Total Business Per Bank 1459.28 Business Per Branch 38.37 Business Per Staff 6.53
131
Deposit Per Bank 804.06 Deposit Per Branch 21.14 Deposit per Staff 3.60 Advances Per Bank 655.22 Advances per Branch 17.23 Advances per Staff 2.94
Table No. 3.12.1
Cost Ratios
StCB - Cost Ratios % Average staff expenses to total Expenses 7.26 Average staff expenses to total Income 6.98 Average staff expenses to Working Fund 0.55
Table No. 3.12.2
DCCB - Cost Ratios % Average staff expenses to total Expenses 13.51 Average staff expenses to total Income 13.1 Average staff expenses to Working Fund 1.14
132
ANNEXURE – V
Various Meetings of the committee
Committee for Assessment of HR of STCCS in Post CBS Environment - 28 September 2016
Sr. No.
Name of the Dignitary (Shri/
Smt/ Dr) Designation Name of Institution
1 R Amalorpavanathan DMD, Chairman NABARD
2 S S Sandhu, IAS Principal Secretary, Member
Deptt of Cooperation, Govt of Maharashtra
3 K Ravinder Rao President, Member Telangana StCB
4 Pradip Vora Chief Executive Officer, Member
Gujarat StCB
5 Pradeep Naik Chief Executive Officer, Member
Raigad DCCB, Maharashtra
6 S C Dwivedi Additional RCS, Spl Invitee
Govt of UP
7 N Muralidhar Chief Executive Officer, Spl Invitee
Telangana StCB
8 Dr U S Saha Chief General Manager, Member Secretary
IDD, NABARD
9 N P Mohapatra General Manager IDD, NABARD
10 A P Das Deputy General Manager
IDD, NABARD
11 N Satpathy Asst General Manager
IDD, NABARD
12 Beena D Nair Asst General Manager
IDD, NABARD
13 Surekha Malkhed Manager IDD, NABARD
133
Committee for Assessment of HR of STCCS in Post CBS Environment - Zonal Consultation Meeting of the North Zone - 22 October 2016
Sr. No.
Name of the Dignitary (Shri/
Smt/ Dr) Designation Name of Institution
1 R Amalorpavanathan DMD NABARD
2 S C Dwivedi Additional RCS Deptt of Cooperation,
Govt of UP
3 K Ravinder Rao President, Member Telangana StCB
4 N Muralidhar Chief Executive Officer,
Member Telangana StCB
5 Tushar K Panda Managing Director Odisha StCB
6 P K Naik Chief Executive Officer,
Member Raigad DCCB, Maharashtra
7 Pradip Vora Chief Executive Officer,
Member Gujarat StCB
8 V D Godara Chief Executive Officer,
Member Rajasthan StCB
9 A K Bajpai Chief Executive Officer UP StCB
10 C M Singhal Chief Executive Officer Haryana StCB
11 S K Batish Chief Executive Officer Punjab StCB
12 Rakesh Panwar Additional MD Delhi StCB
13 K S Bisht AGM Uttarakhand StCB
14 J C Sharma Vice-Principal ACSTI - Shimla
15 A A War Chief Executive Officer J & K StCB
16 Alok Dixit Managing Director UP Cooperative Bank,
Lucknow
17 D V Deshpande Director BIRD, Lucknow
18 Dr U S Saha Chief General Manager,
Member Secretary IDD, NABARD
19 A K Panda Chief General Manager NABARD, UP RO,
Lucknow
20 P J Ranjith Principal NBSC, Lucknow
21 Suresh Chand General Manager NABARD, UP RO,
Lucknow
22 Nilay D Kapoor General Manager IDD, HO (Through VC)
23 A P Das DGM IDD, HO (Through VC)
24 Manjari Deshpande DGM NABARD, UP RO,
Lucknow
25 Surekha Malkhed Manager IDD, HO (Through VC)
134
Committee for Assessment of HR of STCCS in Post CBS Environment - Sub-Committee on Training & Capacity Building - 22 October 2016
Sr. No.
Name of the Dignitary (Shri/
Smt/ Dr) Designation
Name of Institution
1 R Amalorpavanathan
DMD, Chairman of the HR Committee
NABARD
2 U S Saha Chief General Manager,
Member Secretary IDD, NABARD
3 K Ravinder Rao Chairman, Sub-Committee Telangana StCB
4 N Muralidhar Chief Executive Officer,
Member Telangana StCB
5 Tushar K Panda Managing Director Odisha StCB
6 P K Naik Chief Executive Officer Raigad DCCB, Maharashtra
7 Pradip Vora Chief Executive Officer Gujarat StCB
8 A A War Managing Director J & K StCB
9 K S Bisht AGM Uttarakhand StCB
10 J C Sharma Vice-Principal ACSTI - Shimla
11 R C Shukla FM ACSTI - Lucknow
12 B K Pandey FM ACSTI - Lucknow
13 Alok Dixit Managing Director UP Cooperative Bank,
Lucknow
14 S C Dwivedi Additional RCS Deptt of Cooperation,
Govt of UP
15 Dr D V Deshpande Director BIRD, Lucknow
16 Dr U S Saha Chief General Manager,
Member Secretary IDD, NABARD
17 A K Panda Chief General Manager NABARD, UP RO,
Lucknow
18 P J Ranjith Principal NBSC, Lucknow
19 Suresh Chand General Manager NABARD, UP RO,
Lucknow
20 K P R Udupa DGM/ FM BIRD, Lucknow
21 R K Srivasatava DGM/ FM BIRD, Lucknow
22 A K Srivastava DGM BIRD, Lucknow
23 Manikumar S DGM/ FM BIRD, Lucknow
24 Shikha DGM/ FM BIRD, Lucknow
25 Manjari Deshpande DGM NABARD, UP RO,
Lucknow
135
Committee for Assessment of Human Resources of STCCS in the Post CBS Environment - Zonal Consultation Meet of the South
Zone - 02 May 2017
Sr. No.
Name (Shri/ Smt/ Dr)
Designation Institution
1 R Amalorpavanathan DMD, (Chairman) NABARD
2 S S Sandhu Addl Chief Secy, Coop Deptt Govt of Maharashtra
3 Pradeep Naik CEO, Member Raigad CCB, Maharashtra
4 Pradip Vora CEO, Member Gujarat StCB
5 U S Saha CGM, IDD, Member Secretary
NABARD
6 Alok Dixit (Representative from Govt of UP)
MD, Special Invitee UP StCB
7 G S Ramanareddy CEO Karntaka StCB
8 K S M Lakshmi MD AP StCB
9 R Karthikeyan MD TN StCB
10 Dr N Muralidhar MD Telangana StCB
11 R Sudarsanan DGM Kerala StCB
12 RCS Govt of Telangana
13 K Sreelakshmi Joint Registrar Govt of AP
14 P Radhakrishnan Chief General Manager Telangana RO, NABARD
15 P N Satya Prasad General Manager Telangana RO, NABARD
16 Nilay D Kapoor General Manager IDD, NABARD, HO
17 V S Gupta DGM Telangana RO, NABARD
18 Raj Kumar AGM IDD, AP RO, NABARD
19 Surekha Malkhed AGM IDD, NABARD, HO
20 Tulasi Prasad DGM AP StCB
21 T Jyothi GM TSCAB
136
Committee for Assessment of Human Resources of STCCS in the Post CBS Environment - Meeting of HR and Sub-Committee on
Technology on 03 May 2017
Sr. No.
Name (Shri/ Smt/ Dr)
Designation Institution
1 R Amalorpavanathan DMD, (Chairman) NABARD
2 S S Sandhu Addl Chief Secy, Coop Deptt, Member
Govt of Maharashtra
3 Pradeep Naik CEO, Member Raigad CCB, Maharashtra
4 T K Panda MD, Member Odisha StCB
5 U S Saha CGM, IDD, Member Secretary
NABARD
6 K S M Lakshmi MD AP StCB
7 N Muralidhar MD Telangana StCB
8 Alok Dixit MD, Special Invitee UP StCB
9 A S Ramasastri Director, Special Invitee IDRBT, Hyderabad
10 Srinivas Muppaneni Chief Information Officer
AP StCB & TSCAB
11 Satyanarayana Rao CEO Karimnagar DCCB
12 K S Subrahmanyam CEO Krishna DCCB
13 P Radhakrishnan Chief General Manager Telangana RO, NABARD
14 A Chandrasekhar General Manager AP RO, NABARD
15 P N Satya Prasad General Manager Telangana RO, NABARD
16 Nilay D Kapoor General Manager IDD, NABARD, HO
17 Gautam Sen DGM DFIBT, HO
18 V S Gupta DGM IDD, Telangana RO
19 Surekha Malkhed AGM IDD, NABARD, HO
20 S V Ranga Rao AGM IDD, Telangana RO
137
Committee for Assessment of HR of STCCS in Post CBS Environment – Zonal Consultation Meet of the West Zone & HR
Committee Meeting - 09 June 2017
Sr. No.
Name of the Participant (Shri/
Smt/ Dr) Designation
Name of the Organisation
1 R Amalorpavanathan DMD, Chairman NABARD
2 S S Sandhu, IAS Addl Chief Secy, Coop Deptt, Member
Cooperation, Govt of Maharashtra
3 K Ravinder Rao President, Member Telangana StCB
4 Pradip Vora CEO, Member Gujarat StCB
5 U S Saha CGM, IDD, Member Secretary
Head Office, NABARD
6 K V Rao CGM, DoS, Special Invitee Head Office, NABARD
7 R Bhaskaran Ex-CEO, Special Invitee IIBF
8 N Muralidhar, MD, Special Invitee Telangana StCB
9 Mahendra Dixit OSD Madhya Pradesh StCB
10 Osmand Nongbri MD, Special Invitee Meghalaya StCB
11 Pramod Karnad MD Maharashtra StCB
12 Nilay D Kapoor General Manager IDD HO
13 A P Das DGM IDD HO
14 Surekha Malkhed AGM IDD HO
15 Ajit K Singh AGM IDD HO
138
Committee for Assessment of HR of STCCS in Post CBS Environment – Zonal Consultation Meet of the East Zone – Kolkata -
27 July 2017
Sr. No.
Name of the Participant (Shri/
Smt/ Dr) Designation
Name of the Organisation
1 R Amalorpavanathan DMD, Chairman NABARD
2 K Ravinder Rao President, Member Telangana StCB
3 Pradip Vora CEO, Member Gujarat StCB
4 Pradeep Naik CEO, Member Raigad DCCB
5 U S Saha CGM, IDD, Member Secretary
Head Office, NABARD
6 Osmand Nongbri MD Meghalaya StCB
7 Shri Imtilemba Longkumer
MD Nagaland StCB
8 Shri Tsering Thongdok MD Arunachal Pradesh StCB
9 Shri Swapan Kr. Saha MD Tripura StCB
10 Senior Officer Deputy General Manager Mizoram StCB
11 Senior Officer Senior Manager Bihar StCB
12 A K Ray Barman Chief General Manager West Bengal RO, NABARD
13 A Chakraborthy General Manager West Bengal RO, NABARD
14 A P Das DGM IDD HO
15 Surekha Malkhed AGM IDD HO
139
Committee for Assessment of HR of STCCS in Post CBS Environment – HR Committee Meeting - 28 July 2017 - Kolkata
Sr. No.
Name of the Participant (Shri/
Smt/ Dr) Designation
Name of the Organisation
1 R Amalorpavanathan DMD, Chairman NABARD
2 K Ravinder Rao President, Member Telangana StCB
3 Pradip Vora CEO, Member Gujarat StCB
4 Pradeep Naik CEO, Member Raigad DCCB
5 U S Saha CGM, IDD, Member Secretary
Head Office, NABARD
6 A K Ray Barman Chief General Manager West Bengal RO, NABARD
7 A Chakraborthy General Manager West Bengal RO, NABARD
8 A P Das DGM IDD, HO, NABARD
9 Surekha Malkhed AGM IDD HO, NABARD
140
Committee for Assessment of HR of STCCS in Post CBS Environment – HR Committee Meeting - 24 August 2017
Sr. No.
Name of the Participant (Shri/
Smt/ Dr) Designation
Name of the Organisation
1 R Amalorpavanathan DMD, Chairman NABARD
2 S S Sandhu, IAS Addl Chief Secy, Coop Deptt, Member
Cooperation, Govt of Maharashtra
3 K Ravinder Rao President, Member Telangana StCB
4 Pradeep Naik CEO, Member Raigad DCCB
5 T K Panda MD, Member Odisha StCB
6 V D Godara MD, Member Rajasthan StCB
7 U S Saha CGM, DEAR, Member Secretary
Head Office, NABARD
8 Sarita Arora CGM, IDD, Special Invitee Head Office, NABARD
9 N Muralidhar MD, Special Invitee Telangana StCB
10 A P Das DGM IDD HO, NABARD
11 Surekha Malkhed AGM IDD HO, NABARD
141
Committee for Assessment of HR of STCCS in Post CBS Environment – HR Committee Meeting - 14 September 2017
Sr. No.
Name of the Participant (Shri/
Smt/ Dr) Designation
Name of the Organisation
1 R Amalorpavanathan DMD, Chairman NABARD
2 S S Sandhu, IAS Addl Chief Secy, Coop Deptt, Member
Cooperation, Govt of Maharashtra
3 K Ravinder Rao President, Member Telangana StCB
4 Pradip Vora CEO, Member Gujarat StCB
5 Pradeep Naik CEO, Member Raigad DCCB
6 T K Panda MD, Member Odisha StCB
7 V D Godara MD, Member Rajasthan StCB
8 U S Saha CGM, DEAR, Member Secretary
Head Office, NABARD
9 K V Rao CGM, DoS, Special Invitee Head Office, NABARD
10 Sarita Arora CGM, IDD, Special Invitee Head Office, NABARD
11 Nilay D Kapoor GM, IDD Head Office, NABARD
12 A P Das DGM, IDD Head Office, NABARD
13 Surekha Malkhed AGM, IDD Head Office, NABARD