Some thoughts to mitigate hardship.

Bank Staff as it is, were under severe work pressure even before the introduction of demonetisation. Demonetisation, cash exchange and short cash supply have worsened their position even further. Since November 8th banks are mainly grappling with how to manage the long queues, unmanageable crowd and irate customers. Most of their time and energy is used up in the demonetisation exercise leaving no time to do their core banking / commercial activity. A new directive / instruction comes every other day bringing in some changes in the existing arrangement or a new thing introduced. All these initiatives which are coming fast and furious have left the staff high and dry. All these have rubbed salt into the wound.

What can be done to mitigate the hardship?

Some stray thoughts:

1. Roll back the business hours of bank to the earlier 2.00 pm or 2.30 pm.

Why?

The government/RBI is determined to push the economy towards Cashless or less cash, digitisation etc, and even a cap on cash transactions may also be a reality sometime in near future. Under these circumstances keeping the cash counters open for a long time during the day is not required or warranted.

Benefits:

The scarce man power can be better utilised and there will be a considerable relief to the staff manning the front line. It releases quite a good amount of time to engage the staff in other banking activities like monitoring /recovery of NPAs etc.

2. Introduce mobile ATMs on the lines of mobile libraries.

This will reduce the footfalls at the branches. It's a win win situation for both the customer and the bank.

3. Introduce and increase the number of non cash branches. Not all bank branches necessarily do cash transactions. Because "cash is no more the king".

The disruptive technology that is engulfing the banking has brought about a metamorphosis of sorts.

Banking is no more the same anymore. Introduction of payment platforms like paytm, SBI buddy, wallet banking, mobile banking, Internet banking etc, have rendered the conventional/traditional cash dispensing counters at the bank redundant.

4. Introduce 5 day week at the earliest. Bank employees really need a two day week end. We have no time for personal life, family life and social life. All along, slogging in the Bank late hours and early hours.

5. Introduce branch managers allowance.

Nowadays heading a branch could be a nightmare. Although no amount of monetary incentive could compensate the ordeals a branch manager undergoes - something is better than nothing.

The bank job has lost its charm/sheen it once enjoyed. Moreover the job market provides abundant opportunities for the young and skilled people. And the salary structure in the banks is a great dampener.

All the above mentioned suggestions if given a serious thought and implemented might mitigate the hardship of the Banker. It also attracts good talent to banks. Otherwise left overs, residuals in the job market will end up joining the bank.

And State Bank has to survive at least another two centuries.

K.N.Krishnan. 9449612446; 9449841375

VRS in Associate Banks - What it means to SBI.

The VRS announced in the associate banks has come as a big surprise. For many in those banks it is a God sent opportunity. They were a bit nervous at the idea of merger simply because the work culture in SBI was a bit too much for them. The work culture in Associate Banks unlike SBI as per their own admission is lethargic and relaxed. To meet standards of SBI work culture it really requires some extra effort on the part of the associate Bank's employees. This appears to be a tall order for some given their less hectic and relaxed atmosphere they were accustomed to. Against this background, the response to the VRS, it is assumed will be overwhelming. And they are rubbing hands in glee at the prospect of VRS.

If this is so, then what it means to the post merger SBI. Already SBI is groaning under severe shortage of staff. Large number of branches are manned by single officers. With the merger of the associate bank branches with a truncated staff (on account of VRS), the pressure on staff in SBI post merger will further increase and may reach breakdown levels. There may be a pretext /excuse from the management that branches will be merged, relocated or closed. All this technical jargon will not offer any real relief to the already battered staff. Whatever relief IF AT ALL ANY may not be commensurate with the addition of the branches. At the end of the day the number of accounts will remain the same. More over, will the government allow closure of branches having tasted the advantage of huge SBI network for implementing its programmes? The sum total of this exercise is more burden to the already beleaguered SBI staff.

Is the time not too far to repent for being a SBI staff.

I request all to participate in the discussion on this blog.

K.N.Krishnan,
Dy Manager, ZO, BZ-1, Basavangudi.

Cashless economy and the banking.

There is lot of talk going on in the country about moving towards cashless economy. Right from the common man to the Prime minister of the country the subject of cashless transactions has attracted attention. Rather, the discourse has been brought to Centre stage by the Modi government in its efforts to clean up the economy from black money dirt. What it means to the banks? How banking is impacted from this shift from cash intensive economy to cashless economy? More than banks, it means a lot to the government.

The first and foremost and immediate benefit of this shift is, it will bring businesses/all the transactions to the tax bracket. This will improve the tax mop up substantially and effortlessly. This single step is a very effective tool and has twin advantages. Two birds can be hit with a single stone. One - tax collection will improve. Two - black money generation is restricted to that extent. The beauty of this is, one is inversely proportional to the other. The more the tax collection, the less is the generation of black money. After all black money is that part of the earnings which is not taxed/accounted for.

Coming to the banks - enormous number of accounts will be opened. Footfalls will increase manifolds. Because large section of the population in India and vast geographical area is still unbanked. This section of the population is forced to enter the banking system whether or not they are interested. Because henceforth it will become a basic necessity. Banks must gear up to receive this influx of new customers to their books. They have got to put in place the men and machinery required for this surge of clientele. And they don't have a choice. They have got to oblige all and sundry. They just don't have the option of choice of the customer. Even now public sector banks don't have that option. This will affect various profitability ratios adversely because banks will end up doing something which given an option they would have avoided. But private and foreign banks are extremely discriminative in the choice of the customers. This has to be put an end. A level playing field has to be created for all the banks. There is also in the air, something called Banking Transactions Tax (BTT) as a part of tax reforms. Government has to pay the banks a percentage of this BTT for their work to compensate their transaction costs. Banking transactions tax (BTT) and cashless transactions may one day in future go hand in hand. And it is for the good of the Nation.

And the debate continues......

It is more than twenty days since demonetisation was introduced that the debate is still on - if this is going to bring down the black money in the system. The suddenness of the initiative and the untold hardship it has caused to the populace especially at the lower strata of the society is the talking point. The unpreparedness of the government while embarking upon such a huge exercise is too evident and it has given some ammunition to the opposition parties to make some noise. While the government says that there is bound to be some inconvenience to some when an exercise of this scale and magnitude is undertaken, the opposition discounts and counters that it is too big pain to achieve too little. According to the estimates of the experts black money kept in the form of cash is a very small percentage - it varies between 6-15%. To achieve this little by the government, the amount of hardships that the common man is made to endure is too big. There is a possibility of businesses being shut down, economy being thrown out of gear, people rendered jobless mostly the labour class in the unorganized sector are the direct and worst hit. The common man is undergoing the ordeal of cash crunch willingly with a hope that something good may happen to him and the country as promised by Modi after sometime in the future. With this expectant hope he is enduring the hardship without murmur. That's why the so called Akrosh divas organized by the opposition was a damp squib. Every body willingly cooperating with the government in that hope of something good will happen sometime in the future. The hope that has been raised is keeping the country calm amidst what could have been a catastrophe otherwise .

Demonetisation by itself may not bring in the desired effect of eliminating black money. It has to be accompanied by a package of  whole lot of other measures. Of course, Modi has indicated that these will follow soon. Benami transactions, accumulation of gold, money laundered in foreign tax heavens, real estate reforms are some of the areas of next focus. Electoral reforms are conspicuously missing in this laundry list. These measures will have to be necessarily pursued and sustained till the ultimate goal is achieved. While sustaining these clinical or surgical measures (whatever one calls) it is absolutely essential to push the country towards cashless economy to contain the origination of black money. The benefits for the common man could be immense once it is stabilized and gets going. No doubt it will change the discourse of the country itself. It is a huge, huge challenge for Modi and his government. An honest citizen will definitely support him in this nation building endeavor. Modi has to be congratulated for the bold step he has taken to eliminate black money and the ills of it the country is facing. It is a challenge not only for the government but also for the banking system. Banking will surely undergo a metamorphosis of sorts. It is a challenge as well as opportunity for the Banks.

Let us all hope for the best.

Rs 500 & 1000 notes demonetisation.

The withdrawal of 500 & 1000 rupee notes from currency is a welcome and most needed step in choking the black money circulating in the system. The size of the black money in the system is too large that came to be called as parallel / shadow economy. The presence of this dirty money in the system was too well known and for too long. Every big transaction whether it be in real estate or gold or while acquiring /creating a new asset or conducting an event of mega size of social /cultural /political will happen with black money. Without this unaccounted money these events /transactions could not have happened simply because of the magnitude of these events and dearth of white money. The presence of this dirty money has pushed the prices of the commodities and services beyond the reach of the common man and to ridiculous levels. Also this has deterred the clean men from entering electoral fray thus leaving the electoral space for criminals, rowdy sheeters and other people of disrepute. This created a situation of inequal distribution of income /wealth in the country. By the act of this dirty money the wealthy are becoming wealthier and the poor are  further getting impoverished. Many services /commodities have remained a mirage and out of reach for the common man by the artificial push in the prices. In the process a division of class in the society has been created - haves and have nots.

There is a debate going on in the country about the efficacy of the present move in curbing black money. That is for the economists to sit in judgment over the issue. Politicians are toeing their party's line of looking at the issue which is only expected because there are no statemen in any political party today who can rise above politics. There is also allegations /charges of selective leakage against the government. There are unsubstantiated whispers that the privileged persona grata have got wind of this move in advance. The timing is also said to be aimed at deflating and impoverishing the political adversaries on the eve of UP election. All said and done the havoc this dirty money is playing in upsetting the entire economy, the corruption it proliferates and above all financing terrorism from across the border are too well known and are to be acknowledged as the greatest danger to the nation. They are eating into the vitals of the nation. The move to demonetise therfore has to be looked from the prism of national interest rather than petty political hairsplitting.

Having said that, the government it appears going by the experience of the ordinary citizens is ill equipped for this gigantic exercise. Having sucked the dirty money from circulation at a lightning speed, replenishment of clean money is not ensured with the same speed. There is a wide gap and mismatch. At least Banks are not tipped of this so that they could have been well prepared. it was a sudden sunami like situation for the banks. Bankmen as usual are taking the brunt and slogging day and night. And the irony is, after so much of hard work toil and stress they only get brickbats from the irate public because public are not aware of the tremendous constraints of both cash and people under which they are working. Citizens are struggling to access their own money. Common man who has no sophistication / luxury of access to cashless channels of payments is the worst hit. If the situation is not addressed with highest priority and swiftly, the common man will  be pushed to the end of the tether and the good will generated by this move will turn out to be a wrath.

NPAs - The bane of banking industry.

The NPAs in banking industry is the hot issue that is being debated at the highest quarters whether be it in bank board rooms, RBI or the finance ministry. All are obsessed with how to contain and reduce this growing monster. The issue of NPAs is not addressed appropriately by the powers that be. The genesis and growth of NPAs are not entirely due to the real banking and economic reasons. But then there are some big sharks in the system who willfully withhold repayment. These wilful defaulters are often has the  protection of and shielding from the politicians. The NPAs occur broadly on account of the following situations.
1. Ineligible / undeserving selection of borrowers often to meet the budgeted targets.
2. Stiff and unrealistic targets stipulation.
3. Lack of proper post sanction/disbursement monitoring often due to inadequate manpower.
4. Fulfillment of social responsibility concomitant with public nature of the government owned banks where the economic / commercial viability of the proposal takes a back seat in Sanctions.
5. The real unforseen adverse economic environment which stiffles the growth thus making the funds employed unproductive (NPAs). The inordinate delay, inertia and redtapism (read corruption) while clearing / sanctioning the projects /proposals also add up to NPAs.
6. Last but not the least the willful defaulters. The politician - industrial houses nexus of all hues is the real hard nut to crack. They have the capacity to pay and at the same time has the muscle and the power NOT to pay. Sometimes politicians shield and protect them and in some cases politicians themselves are at play. These have the legal, political and financial wherewithal to thwart, to tweak, to manipulate and evade the long arm of the law. A case in point is Kingfisher saga.

Then, what is the remedy / solution to this menace? The following proposals / suggestions could be thought of.

1. De link social banking from commercial banking. Establish a separate arm for social lending outside of the Basel norms. After all any government cannot absolve itself of the welfare responsibility for economic and commercial considerations. Free banks from this responsibility and make them truly commercial and business entities. I am afraid if I am flogging a dead horse by suggesting this. The enormous and omni present network of banks is too difficult for any government not to resort to this low hanging fruit to implement their welfare schemes.

2. Make stringent laws and amend existing laws to enable quick disposal of suits related to money and finance. This is of utmost importance because many wilful defaulters are taking shelter under loopholes in law.

3. Establish fast track courts to adjudicate money and finance suits. Amend law to give them Supreme powers so that Judgements given by these fast track courts are not appealable in civil courts. They should be made appealable only in a similar fast track higher courts. This will avoid long drawn legal battles and enable quick resolution of cases. This will also works as a deterrent to borrowers who often resort to legal route on some flimsy grounds with chief intention of avoiding repayment. This will enable the blocked funds to enter banking system and recycle them for further lending.

4. Courts also should view these cases with larger good in mind than the individual good because banks at the end of the day are the trustees and custodians of public money.

These I believe though seems to be *far-fetched* will definitely yield good results if implemented. It requires political will to do that. But then it is a million dollar question. These will make the banks sound and healthy and also make the economy vibrant. But every body seems to *bury their head in the sand*.

What is ailing the trade union & the Bank.

19 th October was the foundation day of SBIOAK. 36 years ago on this day SBIOAK was formed when even the circle was not born. A rare and interesting feature of SBIOAK.

SBIOAK was born out of rebellion. It is a child born out of resentment of discrimination and step motherly treatment meted out by the erstwhile Madras circle which Karnataka was a part of. It was an orphan because it had neither affiliation from its own federation nor recognition from the Bank because it came out of Madras circle in protest. The founders of this orphan baby comrade Nanjappa & comrade late Mandanna has to be given a red salute for their heroics and sacrifices.

Having such a difficult birth, it went on to produce the best trade union leaders not only in SBI but supplied to the whole industry as well. Having such a proud and colossus stride, it faltered when the winds of change in the banking industry started blowing fast and furious. Somehow it failed to get wind of change and adjust its sail to the wind. What happened after this watershed moment is with in the knowledge of every state banker. And the management after tasting blood further tightened its hold. The emaciated trade union is undergoing tremendous testing times and is in dire need of rejuvenation and reinvigoration. This can only come from its membership who has to demonstrate and reinvest their faith in it. They should have patience and perseverance.
It is a cycle. What goes up has to come down and what comes down has to go up.

Trade union is a necessary evil even if one considers it an evil. It provides checks where needed for the healthy and fair conduct of banking business. It is almost akin to an adage - a strong opposition is a sign of progress in democracy. A strong trade union is needed to ensure that the bank does not falter.

The birth pangs of the Brigade.

The Sangolli Rayanna Brigade, presumably the baby of Mr. Eshwarappa but conceived elsewhere is undergoing birth pangs. It has embroiled itself in one controversy or the other. The opposition to it from the president of state unit of the BJP Mr. Yediyurappa is understandable as it will create another centre of influence with in the party. But the moot point is why at all Mr. Eshwarappa was allowed to form this controversial outfit in the first place. How can Mr. Eshwarappa go against the wishes of state president of BJP? Where from he draws the strength and courage to take on Mr. Yediyurappa. These are the questions bothering the state unit of BJP. The fact remains that *even the dog in the street knows* that Mr. Eshwarappa cannot embark on this farce without the tacit nod of the people at the helm especially the mentor from the Nagpur headquarters. It is a ploy to contain / rein in the speeding Yediyurappa who his detractors say is functioning unilaterally. But it will just not stop at that point. There is one more dimension to it. People who have willingly allowed this Brigade to make some noise are trying to hit two birds with one stone.
One to contain Mr. Yediyurappa and two, to make some inroads into the Kuruba community by using the Kuruba face of Eshwarappa in the next assembly election. It is a simple electoral arithmetic. So far Kuruba community which has a sizeble population has been identified with Mr. Siddaramaiah, the powerful Kuruba community leader. In the process the people who have allowed this farce it appears, are oblivious of the fact that it cuts both ways. It gives a very wrong signal to the people of Karnataka on the eve of the assembly election. A party with a difference cannot project itself as a party of differences.
What is even more disturbing is the fact that the Brigade vows to bring seers of many mutts into its lap with an intention to finally merge with the BJP. Probably this is a lateral entry or call it a back door entry of religious mutts into a political party. This will make it official what the seers and mutts were doing from behind the scenes and with some hesitation. A heady mix of religion and politics.

Drama Juniors

The serial episode "Dramaa juniors" in Zee kannada TV channel ended today. It is the best TV program that is telecasted in recent times. The performance of the young kids was something amazing and beyond words. The kids majority of them under 10 years of age brought out an astounding histrionic episodes which received the accolades of the entire state of Karnataka and even kannadigas living abroad who watched the program. They enacted some of the difficult characters which required the maturity of a seasoned and elderly artist. And the beauty is they did it effortlessly and with ease. Their utterance of long and difficult dialogues simultaneously with intricate acting stupefied even the best names in the business.
Congratulations to Zee TV for conceiving and conducting such a superlative concept of drama when the idea of drama itself is being forgotten. My sincere thanks to the mentors who would have toiled hard to bring out the best in the child prodigies. And the adjudication of the winners was also very fair with out any bias. Thanks to the judges for their accurate objectivity. And last but not the least - congratulations to Chitrali and, Puttaraju for sharing the first prize and runners up the comedy king called Mahendra & Amogha.

This program is a silverlining in an otherwise dull, boring, negative and lackadaisical programs /serials.

BJP is counting chickens before they are hatched.

The so called Sangolli Rayanna brigade spearheaded by one of the senior leaders of BJP Mr. Eshwarappa has unsettled the state unit of the BJP. The very purpose of creation of this brigade in the first place is not clear and it was not necessary either. It has "set cat among the pigeons". This misdemeanor by Eshwarappa is not entirely his own is too well known in BJP circles and its mentor the RSS. There are some invisible vested interests/forces throwing their weight surreptitiously behind this bizarre idea and it is not difficult to decipher these. Eshwarappa is only a tool in this mischief. The unstated /hidden purpose behind this is to contain, rein in Mr. Yediyurappa whom these people think that if BJP comes to power in next assembly election he will become all powerful. BJP has started "counting the chickens before they are hatched". Gradually, the problem is going from bad to worse so much so that a truce was brokered between Yediyurappa and Eshwarappa in the recently concluded BJP meet in Kerala. Even than the embers have not died down. This made a worried high command issue a stern warning to the warring leaders /groups and despatch its trouble shooter in Ramlal. By this it appears that BJP is a party in great hurry. This spat in public over an unnecessary issue /problem invented and nurtured by the selfish leaders will do more harm than good. At the end of the day, Mr Yediyurappa is only capable of steering the party throughout the state and other leaders have limited pockets of influence. Instead of strengthening his hands, he is being hamstrung. The state unit and the BJP high command should realize this and supplement him and not supplant him.

The last nail on the coffin

Supreme Court verdict to release water as per its earlier decision in Cauvery row is last nail on the coffin. Supreme Court has shown a brazen intolerance towards Karnataka and handled Tamilnadu with kid gloves. It has not bothered to hear Karnataka's plea at all. Instead it went on delivering its premeditated, preconceived and prejudiced orders. The verdict, even a layman understands were given not on merit, arguments or based on material furnished to it OR on principle of natural justice and smacks of utter disregard to the principles of jurisprudence. Because while there was no prayer from Tamilnadu to constitute Cauvery monitoring board it was ordered to form one and our impassionate plea to send technical committee to evaluate availability of water and then decide on the matter was just brushed aside and was not at all heard. The survival of crops in Tamilnadu was given priority and precedence over the lives of people of Karnataka. A clear case of biased and not an impartial judgment. It only confirms my apprehension expressed in my blog dated 15.09.2016 that judges too are human beings and are subjected to and are influenced by feelings and emotions.

Central government also has done its bit to rub salt into the wounds. It has also not acted with the conviction and commitment it should have and only completed formality. Also it has played spoilsport because there is an opposition government in the state. It has not demonstrated statesmanship when it is most required. Unfortunately petty politics has prevailed.
At the end of the day, we deserve this because we only have elected these people.

And the battle goes on

Today's direction of the Supreme Court to Karnataka to release 18 cusecs of water for 3 days despite Karnataka's pleading /prayer /argument of its inability to do so has put the state in quandary. Karnataka has again floundered in its line of defense /argument. It was under wishful thinking that the legislature route it has taken to avoid the release of water would save the day for it. Is Supreme Court that naive unable to decipher the designs of Karnataka? Karnataka should have harped on shortage of water, and the whole of Bangalore city is dependent on Cauvery for its drinking water requirement where as Tamilnadu is demanding water for its crop. Karnataka should have driven home the point that water for drinking takes precedence over water for raising crops which Tamilnadu is demanding. The contention of Fali Nariman was simply not heard by the judges. It finally directed Karnataka to release the water as per its earlier order. The situation is slowly snowballing into a bigger and larger issue - which is Supreme? whether Judiciary OR Legislature.
In all it is a disappointing day for Karnataka.

Punishment through Judgements.

The Supreme Court Judgement yesterday ie. on 20.09.2016 in Cauvery water row has been the most cruel. One cannot help coming to an inference that it is arbitrary simply because the Judgement lack any reason or  basis. The most vexed and sensitive issue was handled by the top court in a cavalier manner. The speed and ease with which this case was dealt smacks of prejudice and gives one an impression if this is premeditated judgement.

The direction to the center to form a body to administer the dams and its water is most unexpected and unsolicited and gives it an aroma of partisanship. The judgement has delivered injustice to Karnataka. The government would do well to appeal to the  Chief Justice of the Supreme Court to transfer the case to a larger constitutional bench and review the order of the three member bench. The other options for the government could be on a political and diplomatic level. The government of Karnataka is in a most unenviable position on one side fighting the case and on the other maintaining law and order. It has got to align with and respond to the expectations of the people of Karnataka and at the same time perform the duties of the state under constitutional scheme of things and judicial obligations. It is "between the rock and a hard place".

All is not well in the big.

The recent revelations in one of the largest banks in the world and the third largest bank in America is disturbing to say the least. The modus operandi adopted by the employees to achieve the stiff and often impossible targets set by the bosses is abhorring and highly obnoxious.
The employees of one of the largest banks in the world resorting to this kind of fraudulent shortcut methods is unthinkable. What is even more scary is the fact that this fraudulent practices are being perpetrated for many years. Has the humongous size of the bank in some way helped in not unearthing this fraudulent practice by the employees OR is it the crass negligence/failure of control and monitoring mechanisms in the bank is the moot question.

Whatever be the cause, the developments in Wells Fargo do have some definite lessons to draw from, for our policy makers and administrators especially in the wake of mergers. The reason being attributed in favor of merger being the SUPPOSED advantage of the size. Whether the size will make or mar the bank, only time will answer.

K N Krishnan.

Cauvery water row

Yesterday's strictures against Karnataka by the  Supreme Court in Cauvery case has "rubbed salt into the wound". Krishna Iyer, the most respected judge of the Supreme Court once said - Supreme Court is *not infallible*. It is Supreme because there is no scope for further appeal against its decision.
*Unquote* : It is infallible because the judges who are sitting over judgment are also human beings who are prone to emotions, feelings, idiosyncrasies, mental predilection, bias and whatever feelings a human being can experience. Of course application of human intellect in the delivery of justice is a quintessential element but to keep the judgement free from the above influence is the hardest thing. The fact that one of the judges in the bench was an advocate for Jayalalita for over 15 years only reinforces my above apprehension.

Yesterday's developments in the Supreme Court is nothing but *judicial tyranny*. It's an injustice delivered to Karnataka. Somehow there is a perceived feeling (which is difficult to negate) that Karnataka's lawyers have faltered in the case.

The kind of decision today's cabinet will going to take will be either historical one or a lackadaisical and lame duck one. Let us wait for that big moment with patience.