*STAFF SIDE ACTIONS - A DEMOTIVATING SCENARIO IN PNB*
I am Rajeev Puri, presently working as Zonal Manager, Mumbai for almost last Seven Months. I am feeling in my Zone that most of the officers are scared to take any decision & there is lack of enthusiasm in their working. I have worked here in Mumbai earlier also as AGM Bandra three years ago, the work culture has entirely changed in last few months after this Nirav Modi fraud. People are scared of Charge sheets, which are being issued on very small issues without going into the depth of the matter. May be this type of hype is more in Mumbai Zone but I feel things are not good in other Zones also.
I personally feel that Nirav Modi fraud has given quantified loss to our beloved Bank, however this atmosphere is giving unquatifiable loss which will hurt the performance of Bank in long run.
I am giving the following views in my personal capacity as an officer of PNB and not as Zonal Manager Mumbai. These views are based on the feedback received from various quarters during last few months of experience in Mumbai and my personal experience in the banking industry for more than three decades, during which I remained an Association Leader also for a long period. I have felt emotions of officers & effect of staff side decisions on their professional & personal life very closely. So now I have experience of both sides of the table i.e. as Zonal Secretary/AGS of Association & as Circle Head & Zonal Head.
I want just to have an open discussion by all my senior colleagues on the matter of disciplinary actions & demotivating affect on staff members & how to come out of this situation to save our Bank from such negative thoughts & grow our Bank's business at a much faster pace & an atmosphere of trust & Confidence among PNBians, I may be wrong on many counts but i just want to start discussion to reach at a conclusion for better PNB & better working conditions. So all are requested to give free & frank views on this issue so that we could snub this negatively & we all are in a position to do it,
*WHO IS RESPONSIBLE FOR THE STAFF SIDE ACTION ?????*
i) Top Management
ii) Vigilance Department
iii) Inspection and Audit Division
iv) Zonal Manager
v) Circle Head
vi) Branch Head
My personal opinion is that the
*SUCCESSOR*
at the field level plays a major role in determining the staff side accountability of his / her predecessor, more than anyone else.
Most of the *SUCCESSORS* feel that their predecessor was not competent and had lack of knowledge. In some cases, the successor feels that his / her predecessor was the most corrupt person. Moreover the worst part is *SUCCESSOR* feels that he/she is the most intelligent person across the organisation.
When the account slips to irregular category, the *SUCCESSOR* starts finding all the negative points in that particular account rather than to find out the cogent reasons and remedies thereof to regularize the account by taking some positive decisions & push the account to NPA to save his/her skin & spends a lot of time on research work about the negative points in the account & sends the requisite Annexure I & II to C.O. with full research work to show his/her intelligence & to cover up his/her inefficiencies in post Sanction follow up & recommends for investigation.
Similarly some times, the CO/ZO simply recommend the case for investigation in the account without putting forth the facts of the case. They simply believe the report of the present Incumbent In charge without analysing the efforts made by the present Incumbent In charge for upgradation or recovery in the account.
Based on the recommendations of the CO/ZO, the HO deputes investigating officer. The Investigating officer also looks into the account 80-90% to fix up staff accountability angle rather than to analyse the reasons of slipping the account into the NPA category and sometimes even without meeting the borrower to know the facts of the case The investigating officer just submits the findings in arithmetic terms and defects in documentation & procedural lapses etc. without finding out reasons for Account slipping to NPA & gives the names of all officers in Branch/CO/ZO whosoever have touched the file.
Nothing is left now to understand for the disciplinary committee / vigilance department. They have now to only decide which lapse is actionable / non actionable. Then starts the process of tabular pro-forma / charge sheet/ inquiry and long process of demoralization of 10-20 persons along with their family members and it is a fact that the frustrated employee will tell to all Tom & Harry about his / her innocence and harassment by the Bank and the demoralization extends to at least 200 persons who are near & dear ones of that particular employee. Further many officers will take the benefit of this case by finding excuse not to sanction loans. Young officers start commenting on social media and spread the word to all their friends and colleagues on What's App and other social media platforms.
*CONCLUSION:*
In my long career of more than 30 years in banking, I have experienced as under:
1. Very few people are corrupt in the banking system.
2. There is a thin difference between bonafide and malafide intention.
3. The circumstances change at the time of sanctioning the loan and at the time of account slipping to NPA.
4. It is normally the fault of the *SUCCESSOR* who don’t want to take any type of risk in case of any irregular account.
5. The biggest punishment to an employee is the long process of disciplinary action from the date of tabular pro forma, till the decision is taken.
It normally takes 6 months to 2 years (in some cases) to complete the process. The financial implication of punishment is not much pinching to the employee but the mental agony and the fear of hanging sword is much more than the final punishment. It also affects the working of that particular employee.
We should be very sure to brand a person as corrupt / deciding his malafides and we have to ensure that even if a corrupt person has done something wrong, other innocent persons do not suffer due to greed of one person.
Now let us analyze who is responsible for all these:
i) The *SUCCESSOR* 50%
ii) Persons deciding to conduct an investigation- 20%
iii) Investigating officer- 10%
iv) Persons taking long time in decision making- 10%
v) Disciplinary Authority- 10%
As per my opinion some times reasons for the accounts turning into NPA are as under:
i) Laxity in pre-sanction appraisal & proper due diligence mostly in takeover cases.
ii) Gross negligence on the part of processing officer & Sanctioning authority.
iii) Loan done under self-imposed pressure for references received from Politicians/Administration/Seniors.
The pressure may be on account of following also,
➡ Due to delaying tactics & indecesiveness at BH level & reaching at a point where Borrower is so irretated that he/she will go for 💯% Complaint against Branch if BH now rejects the case or don't forward the case to higher authorities. *(The Best quality of a Good Manager must be to have courage to say big NO within 1-3 days without any fear or pressure on the basis of demerits of the case.)*
➡ Moreover any reference should be treated as only a good business opportunity with positive frame of mind and not as a compulsion. 100% due diligence must be done in a positive way.
iv) Decision taken under influence of the borrower by looking at his standard of living or by getting some costly gifts.
v) Reckless financing due to over ambitious approach of the Incumbent to get faster promotions.
Some loans go bad due to the above mentioned facts & we as a Zonal Head or Circle Should guide our staff to take decisions quickly & with Confidence. Further we should take quick action in removing a BH in case we receive any negative report through a formal or informal channel.
So let us discuss among ourselves to change this negative atmosphere in our beloved Bank & decide to take disciplinary actions with a lot of depth in the matter & not as a routine.
Warm Regards,
Rajeev Puri
