STAFF WELFARE FUND AND RETIREES
PM
As we know, it is as per permission/guidelines of Govt of India, Public Sector Banks have increased the allocation towards Staff Welfare Funds out of profits of the bank based on total business and number of employees subject to ceiling of 3 percent of net profit of banks,few years back.
The Government had also advised banks that while utilizing welfare funds for staff welfare schemes, some portions of it may be allotted for schemes meant for the retired employees. In the absence of specific guidelines for allocation of funds at a definite percentage for welfare of retirees, there is no uniformity in allocation among the banks in past years.
Despite the request made by All India bank Retirees Federation(AIBRF) to Secretary,DFS,MOF to allocate separate welfare fund for retirees with at least 2% allocation of net profit, years back nothing has been done by the Govt so far in this regard.Running holiday homes for retirees /serving staff and medical allowances etc are met out of these funds.
Now a situation has come,due the latest guidelines of RBI, on cleaning up of balance sheet of banks / provisioning on high NPA ,there may have strain on net profits of PSBs in FY ended and there after too.It may not be a surprise if some banks are recording net loss this time.Thus,we can imagine the situation of allocation of SWF on the basis of existing guidelines.Result would be either curtailed/or NIL allocation of SWF to such banks.Retirees may be the most affected group
where ever they enjoy at least certain minimum ,welfare measures right now.
We know,that Serving /Retired employees are no way responsible for the phenomenon of mounting NPA in banks.Under this back ground,no doubt a relook on method of allocation of SWF is required.
Serving employees unions have already taken up the matter with Finance Minister with a suggestion to allocate certain percentage on gross profit of each banks towards this.
Let us wait and see what positive action is forthcoming from Govt.
cpvnair
Dear PMji, can we expect something positive steps in the matter when the banks deny 100% DA neutralization/pension updation etc to be met out of our own funds?The banks /Govt/IBA may be happy to tell that allocation of SWF is not possible due to the lowering of profits, though the workforce/retirees are in no way responsible..
I personally feel that we need not run after such pittance.Instead we should step up the agitations for justice from our pension corpus fund of nearly 200lacs crores.I still fear that the funds would be taken back to banks’ P&L in due course, through some methods.UFBU, with its lowering bargaining strengths may not be able to withstand such efforts, or perhaps it may be compelled to support it in the guise of healthy existence of the banks.RBI may further tighten the NPA norms to the disadvantage of the PSBs in India, which helped a lot in the growth of Indian economy….
TKU Shri PMji, for sharing your concerns.As you rightly say, the group which enjoy the facilities presently may suffer. In the Associate and some other PS Banks, some amounts are disbursed towards annual medical checkup scheme.In SBT, it was Rs 1100 last year.We are likely to ,lose it….
Warm reg
CPVNAIR
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