Dear friends,
Federal Bank is the largest first generation private sector bank in the country. This Kerala-based Bank has grown to this stature with the generous support of its 90 lakh valued customers. Combined with the hard work of the employees and the cooperation of the stakeholders, the bank's business reached a level of Rs 2,55,000 crore.
In recent years, the bank's top executives, who came to the bank with profit-motive, are adopting a line of approach that deals a blow on the expectations of ordinary customers, who love and trust the bank.
It is imperative that the Management has to change the policy of setting extremely high minimum balance in savings bank accounts of customers, imposing excessive service charges for banking services, and demanding heavy charges for cash receipts and payments over the counter. The management is extracting this money from the public for filling the coffers of the top executives by way of non-transparent benefits in the names of salary, equities, interest-free loans, joining bonuses etc.
There is no need of great wisdom to understand that when the management shifts their focus from the natural growth of loan portfolio through small and medium loans to ordinary people to abnormal growth through loans to corporates, it will reflect in the growth of bad loans too. We have many examples in recent banking history.
Federal Bank, based in Kerala, though a private sector bank, had been following people orientation like public sector banks. But now there is a concern that not only the Federal Bank will lose its mass banking character, but also the State will lose the bank, which played an important role in its development. Many of the major departments of the bank now operate from Mumbai. One Executive Director who is just below the rank of MD is stationed in Mumbai now. Another Executive Director, who had also been stationed at Mumbai and enjoyed unduly high benefits from the bank, suddenly resigned after three and a half years of service and migrated to Axis Bank. This migration happened just four months after the Bank's Annual General Body meeting had given him extension for another two-years. He was in charge of corporate credit portfolio of the bank and had increased the corporate advances of the bank from Rs 16600 crore to Rs 55,500 crore within this 3 1/2 years. Now the news that the advances given to some corporates including Anil Dhirubhai Ambani Group (ADAG) are turning into NPA is causing anxiety.
Shri. Shyam Srinivasan, MD & CEO of the bank, who refuses to answer the questions raised by the employees and their organisation with regard to the shift from people-orientation to thrust on corporates, is attempting to intimidate the employees through threat of transfers. All the norms of justice and fair play are being violated. There is an attempt to destabilise the Union by transfering its Secretary to Tamilnadu in violation of the Transfer Policy Settlement signed between the Union and the Management under the ID Act forty years back.
Federal Bank employees have never been willing to give up their hard-earned rights. The history of the Federal Bank Employees' Union is replete with stories of fights and sacrifices made by them to earn and protect the rights. The new generation of Federal Bank employees, who are the inheritors of that history, are poised to perform their duty in the action field. Employees are forced to take to take up such a position, since the Management is not ready to resolve issues through discussions. We seek the support of our dear customers and the right-thinking and progressive people and working class and mass organisations in this struggle.
Protect Mass Banking!
Withdraw the extremely high Minimum Balance and Service Charges which drive away Ordinary Customers!
Modify Bank’s wrong Business Policies!
Stop action intended to curtail Trade Union Freedom!
Honour Settlements !
Federal Bank is the largest first generation private sector bank in the country. This Kerala-based Bank has grown to this stature with the generous support of its 90 lakh valued customers. Combined with the hard work of the employees and the cooperation of the stakeholders, the bank's business reached a level of Rs 2,55,000 crore.
In recent years, the bank's top executives, who came to the bank with profit-motive, are adopting a line of approach that deals a blow on the expectations of ordinary customers, who love and trust the bank.
It is imperative that the Management has to change the policy of setting extremely high minimum balance in savings bank accounts of customers, imposing excessive service charges for banking services, and demanding heavy charges for cash receipts and payments over the counter. The management is extracting this money from the public for filling the coffers of the top executives by way of non-transparent benefits in the names of salary, equities, interest-free loans, joining bonuses etc.
There is no need of great wisdom to understand that when the management shifts their focus from the natural growth of loan portfolio through small and medium loans to ordinary people to abnormal growth through loans to corporates, it will reflect in the growth of bad loans too. We have many examples in recent banking history.
Federal Bank, based in Kerala, though a private sector bank, had been following people orientation like public sector banks. But now there is a concern that not only the Federal Bank will lose its mass banking character, but also the State will lose the bank, which played an important role in its development. Many of the major departments of the bank now operate from Mumbai. One Executive Director who is just below the rank of MD is stationed in Mumbai now. Another Executive Director, who had also been stationed at Mumbai and enjoyed unduly high benefits from the bank, suddenly resigned after three and a half years of service and migrated to Axis Bank. This migration happened just four months after the Bank's Annual General Body meeting had given him extension for another two-years. He was in charge of corporate credit portfolio of the bank and had increased the corporate advances of the bank from Rs 16600 crore to Rs 55,500 crore within this 3 1/2 years. Now the news that the advances given to some corporates including Anil Dhirubhai Ambani Group (ADAG) are turning into NPA is causing anxiety.
Shri. Shyam Srinivasan, MD & CEO of the bank, who refuses to answer the questions raised by the employees and their organisation with regard to the shift from people-orientation to thrust on corporates, is attempting to intimidate the employees through threat of transfers. All the norms of justice and fair play are being violated. There is an attempt to destabilise the Union by transfering its Secretary to Tamilnadu in violation of the Transfer Policy Settlement signed between the Union and the Management under the ID Act forty years back.
Federal Bank employees have never been willing to give up their hard-earned rights. The history of the Federal Bank Employees' Union is replete with stories of fights and sacrifices made by them to earn and protect the rights. The new generation of Federal Bank employees, who are the inheritors of that history, are poised to perform their duty in the action field. Employees are forced to take to take up such a position, since the Management is not ready to resolve issues through discussions. We seek the support of our dear customers and the right-thinking and progressive people and working class and mass organisations in this struggle.
Protect Mass Banking!
Withdraw the extremely high Minimum Balance and Service Charges which drive away Ordinary Customers!
Modify Bank’s wrong Business Policies!
Stop action intended to curtail Trade Union Freedom!
Honour Settlements !
