IMMENSE PRESSURE ON OFFICERS: MUDRA LOANS / JANDHAN LOANS / DE DUPLICATION

IMMENSE PRESSURE ON OFFICERS:

MUDRA LOANS / JANDHAN LOANS / DE DUPLICATION

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AISBOF have sent a detailed communication to the Management on the captioned subject (AISBOF circular no 111 dated 30.09.2015). A copy of the same is enclosed for information.

All our members are requested to await further developments in this regard and also brought the incidents of undue pressure/instructions to sanction loans without following the laid down instructions of Banks, abusing language and other incidents immediately in the notice of respective office bearers to resist such happenings at all levels. We must fight for work-life balance collectively and start "MISSION R & D (Respect & Dignity)".

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No.6531/57/15 DATE: 30.09.2015

To,

The Deputy Managing Director & CDO,

State Bank of India, 

Corporate Centre, 

Madame Cama Road, 

MUMBAI - 400 021.

Dear Sir,

IMMENSE PRESSURE ON OFFICERS:

MUDRA LOANS / JANDHAN LOANS / DE DUPLICATION

The Government of India has been introducing various welfare schemes like the Jandhan, PM Suraksha Bima Yojana, PM Jeevan Bima Yojana, Sukanya Suraksha Yojana, Atal Pension Yojana, etc. Our Officers have exceeded all the given targets well within the time schedule, which fact has been acknowledged and appreciated by the Hon’ble Prime Minister himself.

2. Now, the Pradhan Mantri Mudra Yojana (PMMY) campaign has been introduced to ensure flow of credit to small and micro entrepreneurs. While we whole heartedly appreciate the intention behind the scheme, we do not agree with the manner and the haste with which the officers are forced and threatened into achieving the huge targets within an unimaginably short span of time, giving a go bye to all norms.

3. As you are aware, the process of Mudra loans, like any other loans involve identification of borrowers, KYC, due diligence, pre and post sanction inspection, documentation, sanction and disbursement. Even keeping aside one’s regular seat work, not more than three or four borrowers can be handled in a day. Any lapse in processing etc., will lead into disciplinary action against the officer, apart from the account turning into NPA, jeopardizing the interests and the image of the Bank.

4. In this connection, we have been receiving the following queries:

• There is no separate master circular in respect of Mudra loans. 

• The instructions are silent on Inspection, CIBIL. Assets & Liability statements, opinion reports etc., under the documents to be obtained column.

• Frequency of stock statements, insurance coverage for the assets financed, need for a project report (Instruction says stamp duty can be treated as project cost itself) etc., are not clear.

• CGTMSE coverage not available for loans sanctioned to retail/whole sale trading.

• Loans above Rs.50,000/- to be sanctioned only in LOS. SME LOS takes almost one day for a loan and all FO’s are not familiar with SME LOS.

5. We are given to understand that immense pressure is exerted on officers to issue sanction letters straight away and complete all the formalities later. Oral instructions are being given to sanction the loans at the Branch level itself. We are afraid that loans may be given to all and sundry just to achieve the targets. The loans are sourced by the CSP’s where the accountability lies with the Field Officers. There is confusion whether such loans are not to be sent to SMECC for sanction?

6. Along with the ‘Mudra Loans’ there is tremendous pressure to sanction Rs. 5000/- overdraft under Jandhan. This is also in addition to the ‘De Duplication’ work which is monitored by another Department. Multiple departments are issuing multiple Instructions with their own priorities.

7. Under the circumstances officers are under extreme stress and pressure leading to frustration because of the following:

a) The instructions issued are under a threatening tone. We fail to understand that when officers are already doing their best, why such threatening tone is adopted as is done with slaves. I shall collect all the messages/instructions and forward the same, which will be a shocking revelation as to how such language can be used with officers who have stood with the Bank for all these years and that too uniformly in most of the circles, with scant regard to their age and experience?

b) Oral instructions are being given to somehow achieve the targets in the given span of seven days. It is common knowledge that the scheme was introduced long ago. But suddenly, targets are fixed and officers pressurized and threatened. Why were these loans not phased over a period of time?

c) What should the officers do about systems and procedures, if such unrealizable targets are to be achieved in such a short span? Why only oral instructions are being given and every controller/executive refuses to give written instructions. At a later date if loans go bad, the processing/sanctioning officers will face disciplinary action and not the executives giving oral instructions.

d) Strict instructions are being issued from all executives that all officers should work on all Sundays, holidays, Saturday off days, and festival days. In some circles attendance of those attending/not attending being taken. In some other circles, threat of explanation/disciplinary action being issued. We fail to understand as to why such sudden outburst of Inhuman behavior against officers. Forcing officers to work on all holiday’s non-stop will reduce the productivity and prove detrimental for the officers morale and lead to a breakdown of their family life and health.

e) Another important issue arising out of such a situation where the officers are required to attend to so many unscheduled work outside the basket of KRA’s selected by them under CDS for their performance appraisal, is that they will ultimately land up underperforming/under achieving their targets under CDS. This will have a detrimental effect on their career path vis-à-vis officers who do not have such targets. This can be a dangerous situation for such officers.

f) The BCG while conducting their “Manpower Planning” in our Branches have not factored or taken into account such high pressure unscheduled exigencies’ that occur round the clock and throughout the year. This has lead to projection of a unrealistic manpower positions by the BCG and does not reflect the true and extreme staff shortage situation in all the circles. The BCG may not agree but all the Branches are suffering in silence leading to depreciation in the quality of work and short cut methods being adopted to circumvent the problem and complete the targets under the fear of a water tight career development scheme (CDS).

8. We are not averse to implementing any schemes. We have been achieving all the targets from time to time. We request you to advise the concerned to adopt a more officer friendly human approach taking into account the constraints, social, personal and family obligations and the dignity, self respect and the sentiments of the officers and not doubt their sincerity towards the Bank. We also request that the implementation of performance evaluation through the basket of KRA’s under CDS be put on hold till all such targets are achieved, else may affect their career.

9. Sir, the above points raised are the reflection of the sentiments and hurt feeling of all officers across the country and hope that they would be conveyed to the concerned who would also take the same in the right spirit in the best interests of the Human resources of Bank and for a healthy Industrial Relations atmosphere.

Please do the needful.

Thanking you,

Yours faithfully,

Y.SUDARSHAN

GENERAL SECRETARY

Source :BankingUpdates