INDIAN BANKING : NON-ISSUES

This has reference to the IBA-union talks regarding certain demands. While pension is an issue that has to be addressed all other issues are non-issuesand bank unions must not lose sight of their main objective by taking up non-issues.In january 1996 when there was a dead line for giving pension option there was no clarity regarding pensionand in the absence of required data and policy clarity thousands of bank officers and staff did not file pension -option.Clarity as regards pension emerged only after implementation.Now that such clarity is available all bank staff can take informed decisionand hence one more option must be provided.Altrnatively as in LIC of India all bank staff must be made eligible for pension alone.Meger of banks as rightly stated in the article is not an issue at all.Elimination of duplications,and achievement of larger volumes and economies of scale all these are timetested principles of economicsand adherence to such sound principlesmust be advocated by all including unions.For example SBI associate banks have their own head offices,regional offices etc.By merger these offices and their cost including expenses such as rent,electricity,teleplhone etc can be saved.The organisational framework of SBI itself can take care of administrative infrastrucure requiredby associate banks on merger.The savingby way of elimination of duplication will be substatntial.Economies of scale will ,enhanced brand image,global size etc will enable SBI on meger of associatesto increse its business volume,profits and financial muscle.With this the paying capacity of the bank will go up and staff can get incresed emoluments and amenities.The unions have to aim at that scenario instaed of opposing merger in the larger interests of entire staff in banking industry and Indian economy.Outsourcing of work which can be got done at lesser cost outside must be encouraged to increase profitabilty.It is surprising that unions are opposing this too.Comassionate employment is against sond economics.Employment must be on the basis of talents and merit.We need high productivityin banking industry.During these days of acute competition public sector banks can not afford to keep ill-equipped staff on their rolls and if they continue to do so they will lose further market share of business on account of aggressivenes of private bank staff and they will become more vulnerable to comprtitive onslaughts of private banks.As a result the capacity to pay will also decline .In that scenario bank unions may have to plead for salary reduction for staff.It is therefore better for unions to focus on issuesi.e pension for all including those who left banks on account of resignation,retirement,death or VRSafter last option date.This will be in their own interest and also in the interests of posterity.