Stopping salaries seems to have become the byword in performance management for the banking circuit, especially the public sector. After the state-run UCO BankBSE 0.81 % in the east, south-based Syndicate BankBSE 1.01 % too has threatened employees with holding back paychecks of those irregular or laggardly.
Under severe asset quality stress and losing business to their rivals in the private sector, public sector banks (PSBs) are piling the pressure on employees in a bid to remain competitive.
A Syndicate Bank notice issued on August 30 said, "The principle of no work-no pay takes effect automatically" in case an employee does not report to work or does not work during any part of office hours. The bank had also said it would treat this as a breach of contract and that the employee would not earn salary for the day.
ET has a copy of the notice, issued by a regional manager in Nagpur.
Sources in the bank said the top management withdrew the notice immediately, on grounds that the regional manager had no authority to issue it. "The notice was unwarranted and unethical," said Suresh Kumar Sangtani, general secretary , Syndicate Bank Employees' Union. "We are happy that our MD has withdrawn it."
Syndicate Bank made Rs 263 crore net loss in the June quarter on account of high provisions to cover the rise in gross non-performing assets ratio to 9.96 per cent. Its cost-to-income ratio was as high as 57.17 per cent at end of June, compared to the private ICICI BankBSE 0.22 %'s 42.3 per cent.
Under severe asset quality stress and losing business to their rivals in the private sector, public sector banks (PSBs) are piling the pressure on employees in a bid to remain competitive.
A Syndicate Bank notice issued on August 30 said, "The principle of no work-no pay takes effect automatically" in case an employee does not report to work or does not work during any part of office hours. The bank had also said it would treat this as a breach of contract and that the employee would not earn salary for the day.
ET has a copy of the notice, issued by a regional manager in Nagpur.
Sources in the bank said the top management withdrew the notice immediately, on grounds that the regional manager had no authority to issue it. "The notice was unwarranted and unethical," said Suresh Kumar Sangtani, general secretary , Syndicate Bank Employees' Union. "We are happy that our MD has withdrawn it."
Syndicate Bank made Rs 263 crore net loss in the June quarter on account of high provisions to cover the rise in gross non-performing assets ratio to 9.96 per cent. Its cost-to-income ratio was as high as 57.17 per cent at end of June, compared to the private ICICI BankBSE 0.22 %'s 42.3 per cent.
Even State Bank of IndiaBSE -0.18 %'s cost-to-income only grew to 53.64 per cent after it gulped in all associate banks and the Bharatiya Mahila Bank.
Staff costs account for a substantial part of PSB cost of operation."(According to) terms of contract of serviceterms and conditions of appointment, they are expected to turn out a full day's work for a full day's salary," the Syndicate Bank notice had said.
It was issued just a day after a similar note by Kolkata-based UCO Bank, where a zonal manager had sought the management's permission to stop salary for employees in 11 branches for below-par performance. The management had shot down that attempt too, saying an across-the-board stoppage of salary may not do any good.
Staff costs account for a substantial part of PSB cost of operation."(According to) terms of contract of serviceterms and conditions of appointment, they are expected to turn out a full day's work for a full day's salary," the Syndicate Bank notice had said.
It was issued just a day after a similar note by Kolkata-based UCO Bank, where a zonal manager had sought the management's permission to stop salary for employees in 11 branches for below-par performance. The management had shot down that attempt too, saying an across-the-board stoppage of salary may not do any good.
source economic times indiatimes.com
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