Technology and the frauds in Banking.

The incident which I am narrating dates back to nearly three decades when I was working as a clerk in a semi urban branch. Those were the days of manual ledgers. The best technological tool that was available was an instrument called TI banker which was used for balancing the ledgers. The other tool was a calculator.

A wrong credit of Rs. 15000 was given to an account with almost similar account no. The person has withdrawan the money and was not willing to pay back despite our repeated requests. A memo was served to me. After a few days a person from Regional office descended on the branch for enquiry. As usual I was manning the counters consisting of SB, CA, CC, ACC, ATL ledgers. I was moving from one end to the other like a tennis player who runs from one end of the court to the other. The man who has come for enquiry was observing my heroics sitting in the BMs chamber. After some time he came to me and introduced himself and asked me as to how I gave wrong credit. I was bit panicky and nervous. I was trying to explain that I was manning these many ledgers and it was a salary day and lot of rush was there etc. etc.

The man who had come for enquiry,  patting on my back, said - don't be worried. It is only the person who does work commits mistake. And I have seen you in action for myself. I am very much impressed by your hard work. Afterwards, I don't know what report he submitted and subsequently the amount was recovered and the incident was forgotten.

Look at the present scenario. The credits can come from anywhere. Internet banking, mobile gadgets using digital apps, NEFT, RTGS etc and he can draw from any corner of the country. It's all invisible unlike in the manual scenario. Everything happens in the thin air like a magic. Technology has enabled turning out mind-boggling volumes of transactions, the reach, the speed and has removed the barriers of timings making it a 24x7 and a 365 day affair. Technology has brought with it an equal amount of risk. A risk if not detected quickly may prove to be too costly. The mind boggling volumes we handle often tends to complete the work somehow and makes the level of vigilance required of the transactions difficult to exercise. This has made the job of perpetrators of frauds easier. The fraudsters are usually ingenious and clever enough to circumvent the safeguards and camouflage their trail. This demands presence of mind, knowledge of systems and procedures, a high level of alertness and alacrity on the part of the employee/officer in the frontline.

Prevention of frauds is a joint responsibility of the bank and the staff. For the bank , it is not enough if they just issue SOP, circular, instructions or guidelines. The job of the bank does not end there. There is no lead time to read, understand and seek clarification. Everything comes in quick succession and with immediate effect leaving the staff gaping at the happenings.

The frontline staff should be at least imparted specific training in fraud prone transaction areas. We  the Association, Union and SEWA too should sensitize /educate our members continuously of the need to be vigilant. The proverbial staff shortage, single officer /clerk scenario, and frequent deputations- an adhoc approach to staff shortage are some of the impediments. There is an urgent need to staff the branches reasonably and impart training in these vulnerable areas. Prevention is better than cure. The cyber crimes are a threat to the security of the bank. Thanks to technology. The climate of banking is risky and is becoming hazarduous.

K N Krishnan

The 2G judgement dtd. 21.12.2017

It was the fag end of the UPA - 2 regime. Manmohan Singh was under fire for being lame duck, incompetent to control the corrupt in his own council of ministers. L. K. Advani called him the week Prime Minister. His cabinet was already tagged with indecisiveness, non performing and corrupt. UPA - 2 was painted with brush called corruption. The hype, the melodrama and the buzz created around corruption and indecisiveness had already caught the imagination of the Nation. BJP aided by its Man friday in the office of CAG, and the media, leveraged the situation to its maximum advantage. It rode to the power partly because of this portrayal of UPA as scam ridden, corrupt, incompetent and Modi promised the moon to the the electorate if voted to power viz., eradication of corruption, bringing back thousands of crores of black money supposedly stacked in tax heaven and Swiss Bank abroad and also promised to the unemployed youth of creating lakhs of jobs etc., and the result was they believed and voted him to power with absolute majority, didn't keep him under the coalition mercy unlike Manmohan Singh. Manmohan Singh to a great extent was the victim of this coalition pulls and pressure because he was not a hard-boiled politician but an intellectual of high integrity.

I would now like to recall the words of Manmohan Singh uttered during relinquishing the office after the defeat -

1. Quote : ‘I am confident that someday history will judge me kindly’.

Unquote : These words sound rather apologetic but in reality, not and nobody took this seriously. But I now realise that Manmohan Singh has uttered these words not like a politician but he meant what he spoke.

Now let us peep into this 2G judgement. Before doing this, we have to be aware of the fact that Justice O. P. Saini, who pronounced the judgement was the most respected judge in Judiciary and he has handled many cases which were refused by other judges and hence it is said, he was the obvious choice for this case. He also, has the distinction of hearing the other high profile cases related to the Commonwealth Games.

2. Quote : Justice O. P. Saini while pronouncing the judgement Says - ‘ For the last about SEVEN years, on all working days, summer vacation included, I religiously sat in the open courtroom from 10.00 am to 5.00 pm, awaiting for someone with some legally admissible evidence in his possession, but all in vain. Not a single soul turned up. This indicates that everybody was going by public perception, created by rumor, gossip and speculation. I have absolutely no hesitation in holding that the prosecution has miserably failed to prove any charge against any of the accused made in its well choreographed charge sheet. There is no evidence on the record produced before the court indicating any criminality’.

Unquote : It was as if the judgement, while acquitting all the accused was in fact indicting the prosecution of failure to produce the evidence in support of the charges. Now let us juxtapose item 1 & 2. It perfectly reflects the apologetic (though they are not) words of Manmohan Singh - that history will one day judge me kindly.

There is a BJP government at the helm controlling the ‘caged parrot’ and ‘His Master's Voice’ as once told in exasperation by SC to CBI. The prosecution was by the agency which is under the direct control of Modi. Under these circumstances, the kind of judgement that has come out is back breaking to BJP. More than the judgement, the language used by one of the respected judges is more humiliating than the judgement itself. It is a severe loss of face to BJP. But BJP perhaps not so much ruffled by this judgment because their job is done. They achieved what they wanted by brandishing this corruption plank in 2014 election.

Rahul Gandhi was boasting in the aftermath of Gujarat election that Modi’s credibility has taken a hit. But that is inappropriate. But it is here that Modi’s credibility has suffered and he has lost the most potent weapon he has used against opposition - the plank of corruption. He can no more use it because he has overdone it and also abused it . Now BJP and Modi have to invent a new issue. Congress it appears has got a huge reprieve from this judgement. But it has still a long way to go and it is a long haul.

This judgement has the potential to herald a new permutations and combinations in the political spectrum at national level with Parliament election in 2019 looming large.

K.N.Krishnan.

The Gujarat verdict:

Now that Modi has done it again, this time in Gujarat. It is unfair to give credit only to Modi. The deadly cocktail of Amit Shah and Modi is the winner. Modi won the match in slog overs; he scraped through the victory; are some of the adjectives used for the story. But fact remains that BJP is the winner. Win is a win. Like in UP, this too was very crucial for Modi because it is his home state and more so the election was in a way seen as a reiteration of endorsement of his bold actions viz Demonetisation and GST. This election was important for one more reason. It was almost pitched as Modi versus Rahul Gandhi battle. And the Nation was watching with keen interest , the campaign trail of both the leaders and their narrative. No doubt it was one of the most intensely fought electoral fray. Congress could give some tough moments to Modi. It has given a run for the money to BJP. BJP may not admit but there was some anxiety and visible palpability on the BJP side too. The extent of paraphernalia the ruling party employed was an indication of this. Probably because the stakes were too high.

There was some disaffection of the traditional supporters of BJP due to demonetisation and GST. But the Modi’s charisma and his oratorical skills could able to triumph over that disenchantment. And it carried the day for BJP.

The arithmetic of Dr. Amit Shah and the chemistry of magician Modi proved too much for the debutant batsman Rahul Gandhi to clear the fence in the final overs. The execution of electoral operations to Clinical precision by Dr. Amit Shah and and mesmerizing professorial prowess of Modi aided by committed, hardworking and disciplined foot soldiers of BJP managed to overcome whatever the obstacles that were there in the path to victory.

Having said that, BJP though a winner has some causes for worry and Congress though the loser has some reason to cheer if the numbers are subjected to serious analysis. Pappu henceforth may be taken seriously by the rival BJP.

There are enough lessons to learn for both BJP and Congress from this election and both parties need to rejig the narrative and focus on the real issues affecting the common man than trying to divert the attention on emotive, symbolic and unproductive subjects.

The electoral story is getting curiouser and curiouser by the day. BJP is continuously displacing congress as a pan India party.

It appears that there is no leader or party that could pose challenge to BJP.  As of now only Modi and Shah can defeat themselves if the cocktail of power and pelf reaches their heads. Congress has to sweat it out just to be in the race.

K.N.Krishnan   

The steely determination

-In the Economic Times dtd. 01.12.2017, a headline caught my attention - that of Modi. He says,

I am aware of the big political price I will have to pay for the steps I have taken, the path I have chosen. I am ready to pay the price for better India.

This made me to sit up and take notice of the man who uttered these words.

These kind of words would not have come from an ordinary politician. It requires much more than a mere politician to make such a statement. It requires abundant courage, nerves of steel and unwavering belief and confidence in the task he has taken upon himself to make such a pronouncement. Rightly admitted by him, he has put his political career to risk by the bold initiatives of Demonetisation & GST.

Both are disruptive initiatives of humungous magnitude on a pan India scale affecting the lives of every citizen. They have not only disruptive of status quo but also drives the citizen from the comfort zone which he was so comfortable with for a decades together. No politician of ordinary make would have ventured into the kind of hazardous and polemical issues that too in his maiden term. This shows he is a man of different mettle. And one has to admit that he has put nation's intrest above his personal interests.

This enormous gamble makes him "stand out from the crowd". Apart from Demonetisation and GST other initiatives like linking Aadhar to gas connection, for opening a bank account, for registering property, the efforts towards less cash economy, digitisation etc., to mention a few are no less unpopular either.

He should not be distracted with controversial issues like beef eating, cow vigilantism etc and allow him to focus on more important and urgent issues bothering the nation.

I am reminded of the words of Mahatma Gandhi who said - "They oppose in the beginning, criticize later and accept finally ". Will these words of Gandhi become prophetic in case of Modi? One has to wait for some more time. The disparate & discredited opposition and a clear majority for his party would have emboldened him to embark on such non populous and bold initiatives to some extent. This is not to take away the credit he deserves. One has to "give the devil its due" .

How Gujarat will respond to all these, is what the nation is watching. Will it goes the UP way?  If it, then, Modi will become even more unstoppable which may be a good augury for the country.

K.N.Krishnan,

A political master stroke.

The Modi-Shah combine has done it again. After springing a surprise in the aftermath of UP elections by bringing a dark horse as Chief minister in Adityanath Yogi, the duo has repeated the same this time by nominating Ramnath Kovind who is a dalit as presidential candidate. This kind of decision which has national importance and has huge stakes for BJP would not have been taken without the green signal from RSS. There was an urgent need for BJP to shed its upper caste image which it has been identified with, with most of its leaders belonging to upper crust. At the same time there was need for it also to acquire a pro dalit image in the wake of Saharanpur atrocities on dalits and misdemeanors of over enthusiastic new crop of cow vigilante brigades. A makeover was required for BJP towards a pro dalit leaning with next big parliamentary election in 2019 in mind.

Be that as it may, the decision to nominate Ramnath Kovind is a master stroke. It is a great balancing act of the toughest order simply because, the two polar opposites of the ideological divide ie., the RSS and the dalit community have been appeased simultaneously. It is a well thought of idea. It has killed two birds in a single stone. It has caught the opposition completely unawares. It has made the opposition look like a rabbit in the headlights. The opposition is completely  clueless by this coup. It has sent the opposition coalition that was getting shape with the initiative of Sonia Gandhi into tatters. It has killed the coalition before it is born with Nitesh Kumar switching over to NDA. The rise of Modi like a Phoenix in Indian political arena is proving too much for the entire opposition. No one knows which tune this pied piper plays and when.

The narrative of this development is solely revolving around the caste which Ramnath Kovind belongs to. The other attributes of him like his vast experience as Supreme Court lawyer, his knowledge of the constitution, his personal integrity, his gubernatorial experience and his noncontroversial persona are not at all highlighted. This is not a good augury. The positive and strong attributes of a person who is going to occupy the highest constitutional position of the land should be the subject for discourse and not the caste to which he belongs. This proves that caste is an inevitable and ugly factor in Indian politics.

Now that BJP has hijacked the most wanted thing, it should not be content with mere tokenism. Politics of tokenism has run its full course. The dalits want something concrete and long-lasting contribution to the community than symbolic gestures which are ephemeral and will soon be forgotten. It has to cease the opportunity to prove to the world that it has better secular credentials.

Will Modi, the magician produce the result and not just the trick?

K N Krishnan.      94496 12446
Vice-president,
SEWA, Bangalore

The merger pangs.

The merger which was perceived rather apprehensively by all has happened. Now it is time to get down to brass tacks. Merger was nobody's choice neither anyone wished for it. It's a fait accompli. The immediate effect of merger is there for all to see. The bank which has an illustrious pedigree, which has an impeccable and most enviable record of making profit year after year continuously for more than two centuries has now suddenly incurred loss despite making a profit of five digits in crores in standalone basis. All the associate banks have posted losses thus bringing down the formidable banking giant to its knees. For a State Banker it is too much to digest and accept. An institution which was so assiduously built, nurtured and made to go from strength to strength by generations of dedicated employees is now stands emaciated, weak and poor. No doubt it has strong foundation, brand and mammoth size, but the same size if not handled deftly and efficiently may well prove to be a burden.

The degree of success of merger is most crucially hinged on how best we manage this size. The size and scale of geographies & business is the most challenging task staring at the face immediately. And of course the burgeoning NPAs is another major challenge for the bank which is not fully within the realms of the Bank. Because they are sometimes predicated by the external conditions of market, economy and government policies.

Left to State Bank itself, it was grappling with mounting and uncontrollable NPAs. Merger has rubbed salt into the wounds. It has made the situation worst. The success of the merger again at the cost of repetition will all depend how quickly and how deftly we come out of the morass and start leveraging the so called synergies and scale.

Seamless HR integration is another daunting task. Murmur less, noiseless and open acceptance of HR integration and striving for continuous improvement is another area of top priority for the bank.

The Best way of approach is to merge as many number of branches as possible, at the same time not to open further new branches. With the improved staff position of the merger of the branches,the bank can exercise better control over the operations. We are for a very long time managing with staff just enough for survival or even less. Many times we are managing on deputations thus living in Rob Peter to pay Paul syndrome. Post merger this kind of ham handed approach will going to be risky and hazardous.

With the disruptive technology that is being adopted almost on an ongoing basis and which has become the essential and integral part of of banking, recruiting new and young tech-savvy blood which can handle technological tools effortlessly and with ease may become expedient. Offering VRS for those at the fag end of their career may thus make sense. This will improve the age profile and also make economic sense.

Just my stray thoughts.

K.N.Krishnan    94496 12446 .

Untouchability - the HYPOCRISY & the DICHOTOMY

In yesterday's newspaper (25.05.2017) there were reports that in a village in Tumukur district a three day traditional village festival which is being conducted since ages was stopped abruptly in the beginning itself because dalit families entered the temple to offer Pooja to the diety. What is wrong in it?

Untouchability is in practice in this village. Dalits should not enter the temple to offer Pooja. They have to offer Pooja from outside of the temple. The flowers brought by the Dalits are not accepted. They have to buy flowers from the temple to offer to Pooja. Fruits and the coconut brought by them is washed before offering for Pooja. They are not supposed to offer Aarati for the diety. Even though the procession of the diety passes through the dalit colony, it never stops there to enable them perform pooja. Incensed by this practice of untouchability a few educated dalits entered the temple defying the embargo. And the villagers thought the temple was desecreted by the entry of the dalits and they stopped the three day village festival in the beginning itself.

In another village in Karnataka a similar incident happened a few days ago. A marriage was fixed in a dalit family. On the day of marriage the entire village was closed down. What is the meaning of closed down? The entire villagers left the village for the day locking down their houses, closing even hotels and tea shops. Their grouse was lot of dalits enter the village for marriage and the village gets desecrated.

And Yeddiyurappa a few days back made big news by visiting the house of a dalit and do the drama of having food in the house in the company of Shobha Karandlaje under the glare of clicking cameras. The food was brought from outside is the subject for discussion is another matter. Even H. D. Kumaraswamy has resorted to this kind of cheap and low publicity gimmicks in the past. Even Rahul Gandhi for that matter is not far behind.

The irony is when these two incidents of practice of untouchability is being practiced in the state and has hit the headlines of newspapers and TV, the leaders who enacted the drama of having food in a dalit's house are conspicuous by their silence. They never made a statement condemning this obnoxious practice. They never uttered a word.

Is it not hypocrisy? Is it not dichotomy? Is it not deceit? According to me it is a fraud. It is a fraud on the psyche of the poor and the gullible dalit community. It is commodification of the community for vote bank purposes. They should realize that nobody's hearts are warmed up by these kind of cheap histrionics.

I appeal to all the saner people in the upper caste bracket to oppose, condemn and criticise the practice of untouchability. It is required to keep a harmonious and healthy society. Only peace can foster progress. Strife, ill will and mistrust will only vitiate the communal harmony. There is an urgent need for this because then only the movement against the practice of untouchability gets some meaning. The affected class (Dalits) fighting untouchability is age old and it is nobody
's problem and will never receive the attention and importance in this caste-ridden society.

And one word for dalits. You have forgotten Dr. Ambedkar and therefore this kind of misery.

K.N.Krishnan.     9449612446

Digitisation and The Digital India :

Digitisation and The Digital India :

Dr. Babasaheb Ambedkar propounded that we cannot change the past by remaining in the past. We have to break away from the shackles of the past to change the future. By remaining in the status quo we cannot aspire for a change for the better. Dr. Ambedkar also in his thoughts asked - don't hesitate to adopt change, adapt to the change. Change is inevitable he said.

On 30th December 2016, in the 125th birth anniversary year of Dr Babasaheb Ambedkar, Government of India introduced an app called BHIM the pet name for all the diehard followers of Dr.Ambedkar. It's an important element of digitisation. Probably by naming it so Modi was nudging all of us more so people at the lower strata of society rather subtly than overtly to embrace this change.

Why we have to embrace this or rather participate in this abhiyan called digitisation? Digitisation is one of the ambitious projects that has the ability to cleanse the system which is rotten, stinking, corrupted and controlled by the vested interests. The people at the bottom of the pyramid are the worst hit by the system infested with cancer called corruption. The opponents of the project who are mainly the vested interests often shed crocodile tears for the downtrodden, projecting these gullible sections of the society as the victims to obfuscate their interests and to continue the status quo because it suits them to proliferate corruption. Let us not fall prey to these sham and false entreaties. So, I believe we as common men has more to do with digitisation.

Digitisation is a real game changer for the Indian economy. It encompasses the whole gamut of payments mechanism. It has the potential to revolutionize the way the businesses are conducted. It's a powerful tool to facilitate transactions smoothly and quickly. It is a great enabler of financial inclusion. It does not discriminate. It is not subjective. It can to a large extent avoid genesis of black money. It facilitates ease of doing business. Above all it is a low cost and easily accessible banking tool for the people who are at lower strata of society who otherwise many times don't have the access to the regular banking channels. Even if they do have, the bank charges are too prohibitive. It reduces cost and increases convenience. It's a low hanging fruit especially for the lower strata of society. Digital banking has the reach and ability to touch the lives of last person in the last mile. It also gives a push towards cashless or less cash economy. I am sure you will agree that greater the degree of movement towards cashless economy, lesser will be the possibility of occurrence of corruption and therefore the generation of black money. It is therefore all the more important for the people at the lower strata of society to embrace this innovative tool called digitalisation because we are the most benefitted lot because it is low cost and it is easily accessible.

Digitisation liberates an individual. Not only that it gives freedom in your palm and empowers you. If you have smartphone with Internet, you have the whole world in your fingertips. This is the most redeeming factor one should not lost sight of. Leverage this powerful tool to liberate yourselves.

We as citizens have a duty and responsibility to carry forward this abhiyan with all the sincerity zeal and commitment. The task of changing something and improving something cannot be solely left at the hands of the government. Whatever may be the sincere efforts of the government to improve the matters, it will not met with the desired success unless people, citizens who are the beneficiaries and stakeholders do not participate in the change process. It takes two to tango. Therefore let us all participate and involve fully in this exercise because at the end of the day it benefits us.

Let us go digital.

K.N.Krishnan,          94496 12446
Vice-president,
SEWA, Bangalore.

Silence amidst the storm.

The knives are out once again. The state BJP is in for a public showdown. BS Yeddiyurappa, the party president and KS Eshwarappa, leader of opposition in the legislative council are at draggers drawn. They are fighting like cats and dogs. KS Eshwarappa is performing as a leader of the opposition to his own party. The Sangolli Rayanna brigade is the bone of contention. The Sangolli Rayanna brigade is proving albatross around the neck for Eshwarappa. The acrimony between the two leaders is too well-known. It even warranted the intervention of the party high command in the past to buy peace. This has not worked either.

But this time the animosity between them has crossed the boundaries of discipline in the party and they are flexing their muscles quite openly and to the amusement of all. This has made the opposition - Congress and JD (U) to rub hands in glee. And they are waiting in the wings to grab the spoils of this stand off in the assembly election which is staring at them just next year.

This stand off that too quite openly could have been avoided. This is causing lot of embarrassment to the cadres. It saps their motivation and zeal to work for the party. What is most intriguing and bizarre in this sordid drama is, the silence of the BJP high command. Why is it allowing this spectacle to continue?  Is it beyond its power and authority? No. It is definitely not beyond Modi-Shah might to rein in the warring leaders. There must be a method in the madness of this silence.

BJP high command is perhaps doing a very delicate balancing act. It doesn't want to be seen as in support of either leader. It therefore has rapped on the knuckles of both the leaders by divesting the responsibilities of two followers each from their groups. It has left the leaders untouched probably fearing the numbers of the communities they represent. At this point it doesn't want to rub them on the wrong side. It is also not a secret anymore in the party that national joint secretary (orgn) Mr. B L Santhosh is fomenting trouble between the two leaders in the hope that he may be anointed to the top job if the party comes to power in the next election. He has started his game well in advance.

Whatever may be the scenario, the silence of the high command so far, amidst this storm has baffled many in their own party. There may be a dark horse. Another Yogi from RSS stable may spring up. But, whatever may be the game plan of the high command, this fight between the two leaders will going to dent the party. And the assembly election in the state is exactly a year away. Memory by then may be still fresh in the minds of the people. This washing the dirty linen in public may prove too costly for a party hoping for a comeback in the state.

K.N.Krishnan.       94496 12446

Wage revision - could it be the last one on industry level?

IBA has finally called the constituents of UFBU for a first/formal meeting on wage negotiations on 2nd May 2017. This has has happened after a series of communications to the banks and trade unions urging them to take up the matter in right earnest. Government was more eager and enthusiastic than the associations and the unions to finish the wage revision exercise. It sounds rather strange. Never in the history of banking wage negotiations that government was proactive, forthcoming and so much interested to finish the job.

This should rise the eyebrows of the trade unions and the members alike. This gives rise to a kind of apprehension as to what could be in store for them and why the government is so much interested in early settlement. There is a kind of uneasiness in the trade union circles about the urgency of the government. Is there a method in this madness? Only time will answer. Is there a sting in the tail?. All needs to be watched.

Yes. There must be a method in this madness. The recent circular in SBI which talks about fixed and variable pay for Scale IV and above is a pointer to the things that are in store in the wage settlement. By this one circular, it appears, if the government/IBA has achieved a clear and vertical division in the membership ie., one group upto scale III and another group scale IV and above. Since their interests are divided, it may become difficult for the trade unions to bring both the blocks under one umbrella for agitational action if at all they contemplate and act upon when need arises. There may be more surprises and shocks in the bag. Here, how well trade unions post merger, will act as a cohesive, consolidated and a united block assumes importance and will have a bearing on the wage revision.

The process of merger in SBI has just begun and it may take considerably long time to settle down. And there is a talk of taking up some more banks to be merged among themselves. In all probability the government will achieve its stated goal of having 5-6 large banks instead of many small banks in a few years from now. Once it achieve this goal, government may embark upon a more lethal, dangerous and difficult to imagine move of bringing down its stake below 50% ie., PRIVITISATION which we all abhor. This could be the last nail in the coffin.

The introduction of the variable pay, monetization of perks and allowances are all directed to move towards the concept called CTC (cost to company) which is in vogue in private companies and banks. The only ray of hope is - will the government let go of advantage of such a huge, well networked and powerful pan India instrument called State Bank to implement its schemes by privatization. This is the only silver lining for State Bank of India.

All these thoughts are only on imagination and not on the basis of any evidence or facts. It's assessed on the basis of the way things are happening and one action necessarily leads to a next step.

K.N.Krishnan,    94496 12446

Merger happened - what next?

Whether we like it or not merger has happened. There is no point in discussing its adverse effects. We have got to focus on only the positives.

In any acquisition, merger or integration the success of it depends largely on how best, how quickly and how seamlessly the HR amalgamates.

Once this is a smooth process, managing other things like doing business, achieving targets should not be insurmountable.

Therefore, the need of the hour is a painless transition and quick assimilation, understanding and constant improvisation of each other's work ethos.

Towards this end what we can do/contribute.

1. Accord the colleagues from our associates banks a genuinely warm welcome and accept them as our own and, not as someone who has come seeking shelter or asylum. They have not sought this merger either. It was thrust upon us.

2. They would have suffered an identity loss all of a sudden and may be undergoing some emotional moments. They may be feeling a sense that they have lost somewhere. They may be having apprehensions /reservations about what may be in store for them. It is here that our responsibility/behavior comes into focus.

3. The first thing we have to do is to remove the perception that is prevalent in our minds that they are of inferior stuff. It is subjective and debatable. Neither we are foolproof. Even if it were to be a fact, there is no point in beating the dead horse. Now everything is water under the bridge.

4. Lot of talking/defreezing is required at each point of contact with our incoming colleagues right from the messenger to MD.

5. The first and the foremost thing is to make them feel at home. A feeling of bonhomie should prevail. We should never ever at any point of time send a signal / indication that they are being slighted/sidelined/neglected. Because they are already in a disturbed state of mind and may be apprehensive of things.

6. We should tell them that if they have lost something which they were the part of for many years and decades, they have lost for getting something even better.

We should tell them that they are joining an organization which has an illustrious pedigree, a glorious past and a bright future. The brand value of State Bank in the market and the concomitant esteem it brings to the employees should be highlighted to them.

7. We should also tell them/sell them advantages of being a State Banker and any monetary/pecuniary benefits that may accrue to them.

8. HR department has a onerous task of managing this churn and to see that the dust settles down quickly and people get into brass tacks soon. They have to do lot of talking and explaining if necessary at the time of transfers to suspend the impression of second rate treatment if at all they are nursing the same.

9. Organisations viz SBIOAK, SBSU and SEWA can also complement the efforts of the Bank in this onerous task. Bank may rope in these organizations and send them on errands making teams comprising of representatives of all the three organizations. They should act as Ambassadors of merger.

10. Anybody involving in the above exercise will be according to me is doing a great service to the bank. Because this is the most crucial period, a period of confusion and chaos if handled with maturity and statesmanship will go a long way in building a strong State Bank.

I wish, it is a smooth and seamless transition for this great institution.

K.N.Krishnan.   9449612446

SBIOAK - decline from the sublime to ridiculous.

I am writing this as a member of SBIOAK, not as a member of SEWA. I am writing this with anguish and anxiety. I am concerned at the ugly developments. SBIOAK has traversed a difficult path and withered many a challenges during its journey to the present. It could wither many a challenges quite successfuly because the challenges were from the outside. But the current turmoil it is in, is a self-inflicted one brought upon itself by selfseeking and egotistic personalities. This is more dangerous because one can always fight and overcome an outside enemy but difficult to fight an enemy with in.

I contemplated for quite long whether to write this blog or not. I was in a dilemma. Whether my writing this blog will bring the unpleasant thing to public domain when they are supposed to be discussed and sorted out in private. Since they are washing their dirty linen in the public, I no more face any dilemma and hence this blog.

Now that the cat is out of the bag and everything is water under the bridge, there is no point in ruminating over the past. Whoever has done whatever wrong has got his comeuppance and has paid the price. No doubt the revelations are shocking, most shameful and unimaginable that a person occupying an important position in SBIOAK can stoop to such a low level. It is simply unthinkable. It has brought enormous disrepute to the the organization and has done irreparable damage to the credibility of SBIOAK. And it pains me.

The need of the hour is to exhibit extraordinary maturity on the part of the remaining office bearers to deal with the most difficult times SBIOAK is passing through. I advise them not to resort to groupism and align on the personality lines. They should have the interest of the members uppermost in their minds. Now that the black sheep is
quarantined, you have got to work cohesively and unitedly lest you should be quarantined by the members very soon. They have to move heaven and earth to regain the confidence of the members. Presently SBIOAK is suffering from huge trust deficit.

The most unfortunate takeaway of this sordid drama is - since it is happening at the nose of the headquarters of the Federation, it is a loud and clear message about the utter failure of the leadership of the Federation.

Perhaps a part of the blame for this crisis may convincingly be transferred to the doorsteps of the tall leaders who held the reins till the last day without bothering to nurture/groom the second line. All of a sudden the persons who succeeded these leaders were left in the lurch not knowing what to do. There is a feeling, belief and suspicion that these retired leaders are still calling the tunes and not a single step/action of the present leadership happens without their wink and nod.

While I have no qualms for this, my only concern was why these people didn't forsee the possible leadership vacuum once they depart from the scene. And they should have done this (what they are doing from their homes now) while holding the post. They could have done some handholding. This could have done immense good to the organization. With due respects to what all they did to develop SBIOAK from the scratch, they cannot escape the blame for this  omission. After all SBIOAK is their baby.

Karnataka has the distinction of producing leaders of trade union at the national level for the entire banking industry. It is abhoring to imagine the abysmal level they have fallen.

Hoping that good sense prevails.

K.N.Krishnan.

The Uttar Pradesh Story.

When Narendra Modi coined the word "Congress mukt Bharat" for the first time, nobody took his words seriously. Many considered his words as mere electoral rhetoric. The recent election results in five states has made one to take these words rather seriously. The outcome of the elections has made every body to sit up and take notice of his words.

The energy he has put into the election campaign is simply amazing. The whirlwind tour he made across five election bound states almost forgetting that he has a responsibility of office of Prime Minister goes to show the determination and resolve to win at any cost. There is a saying - Well begun is done. He wrote the preface for victory with introduction of demonetisation. This surgical strike of demonetisation purportedly to curb black money has successfully achieved the alleged unstated and hidden agenda of deflating the opposition in the wake of elections. How far it is successful in bringing out black money is debatable and the silence of RBI and the government regarding the figures of black money gives credence to the to the theories that it has not. Be that as it may, one thing was sure, it did deliver a body blow to the opposition and took the steam off from them. Because cash (black money) was the king in the election. With the opposition weakened, he took them head on.

He connected to the masses with his gifted oratorial skills, extempore speeches often sprinkled with histrionics. He is adept and mastered the art of adapting the narrative to suit that moment and to connect to that audience he is addressing. No other opposition party has the advantage of having a leader like him. And to supplement this, he was ably assisted by that maverick Amit Shah, the party president. He organized and galvanized the cadres. He stratagised to the last minute and the last mile. His organizing and networking prowess combined with superlative speaking abilities of Modi decimated the opposition. This heady cocktail of Modi and Shah proved too much for the opposition.

Congress, with Sonia Gandhi fighting illness and Rahul Gandhi being no match for Modi is now rudderless and clueless. The unprecedented number of seats won by BJP has almost written obituary for Congress. Slowly and steadily BJP is inching to pan India and once pan India Congress is losing ground.

Congress lost its game long ago when it sent its tallest and most acceptable leader Mr. Pranab Mukherjee to Raisina hills. He was sent to Rashtrapathi Bhavan to project Rahul Gandhi for the future leadership of Congress. This is the blunder committed by Congress and proved too costly. Only Pranab Mukherjee in the Congress could have given the run for the money to Modi.  Unfortunately for Congress there is no future as long as Rahul Gandhi is at the helm. It has got to rediscover itself, reinvent itself. It has got to metamorphosize. It is a very tall order. Presently it is all at sea.

K.N.Krishnan,
Vice-president, SEWA.

The challenges of SBI - Post merger.

Now that it is official. Merger Gazette notification is out in the public domain. The process gets greater momentum hereafterwards. The whole machinery at the parent SBI and associate bank is buzz with activity.

And HR department is the center of activity. It is pivotal to the entire exercise which is by far the biggest HR integration in the recent memory in any sector. Post merger, the task becomes even more humungous. For any acquisition, takeover or merger to be successful, the seamless integration of human resources is one of the  fundamental prerequisites. Because, human behavior by its very nature is dynamic and is not subject to any objective evaluation or assessment. It is subjective and evasive for accurate measurement. Here comes the challenge for HR people to correctly catch the pulse.

It is said our training system is the best in the industry. It has not only one of the best training architecture but also the biggest, spread across the country. And there is no qualm about this. But the employee numbers are so big after merger that even this well oiled training machinery may find the task of moulding the new entrants onerous. Added to this, cross cultural amalgamation brings with it the legacy and ethos of work culture which may be at variance with ours. This moulding or alignment of the attitudes or work culture whatever one would like to call takes quite a long time and sustained efforts.

It is estimated that the combined clientele strength of the Bank will be almost equal to the population of the European Union. And the business figures? I am not able to comprehend how many zeros the figures will contain.

OMG! It will be a huge, huge, structure to manage and administer. It takes an herculean effort just to administer the day to day affairs of an organization of this scale and magnitude. And to make the elephant dance???. The only thing that could be done is to be prepared mentally and physically to undergo and endure the churn and remain focused and positive. Because there is no option.

The best, the Bank could do under the circumstances is to bring down the number of branches under each region /RM to not more than 25. This enables them to exercise better control and supervision. This reduction in the number of branches may be maintained for say 4-5 years till the Bank feels that the situation is under control and more than ordinary surveillance may not be necessary. Afterwards, it may review the situation.

The situation post merger therefore is daunting and intimidating. And as already mentioned, it will be a gargantuan task to manage and administer the mind-boggling numbers of both the accounts and the people. After all what an account means - it is the person behind the account.

Therefore, in the fitness of things, I opine that the head of our bank should be reckoned for the highest civilian awards - The Padma awards some time in the future.

Really and seriously.

K.N.Krishnan.

The Tamilnadu circus.

The Tamilnadu circus has come to a pause, not to a halt with the swearing in ceremony of Palanisamy. The drama that is unfolded ever since OPS broke his silence by saying that he was forced to resign and still in the race for Chief ministership has reached a temporary pause. The developments in the run up to the big event only cast a dark shadow of the money, muscle and mafia power that was in full play much to the chagrin of all the saner elements. These incidents have thrown enormous challenge to democracy and its institutions and raised questions about their efficacy in safeguarding the interests of the subjects. Governance and delivery are far fetched items to expect from these netas.

Politics is about public perception. And the public perception was undoubtedly is against Sasikala and her gang coming to power. In fact there was a groundswell of support for OPS to take the reins. It is not that MLAs doesn't knew this. They know pretty well of this fact. Despite this they struck to Sasikala camp. The money, muscle and power kept these MLAs together despite strong public resentment. And this unity among the MLAs came at a time when Sasikala was convicted and jailed and barred from contesting elections for a period of ten years in DA case by the top court cannot be lost sight of. Supreme Court has to be congratulated and thanked for its decisive and path breaking judgement against corruption though it took 20 long years to dispense the justice.

The narrative of the Tamilnadu is a sad commentary of the degeneration of the polity and an abysmally low point it has reached. This perhaps calls for urgent electoral reforms on a warfoot basis.

What is most disturbing is the fact that, while the money power played so blatantly to manoeuvre and manipulate so glaringly before the entire nation, the system could do nothing and the nation was a mute spectator.

And many say it is only an interval in the drama. And the drama continues.

K.N.Krishnan.

The allegations of graft.

The charges of graft levelled against Siddaramaiah by BS Yeddiyurappa appears to be too serious to be ignored just as politically motivated. No doubt coming from a politician who is eyeing for CMs post after next assembly election may not be devoid of political mileage. But this doesn't take away the dirt in the allegations. They are too serious to be ignored as political mudslinging. The amount mentioned in the charges is too huge. That he has took commission/bribe in steel bridge project approval needs an impartial inquiry. These allegations deserve a serious look against the backdrop of pushing/hurrying the project despite protests from the citizens and objections from the National Green Tribunal (NGT).

Against this backdrop, there is an urgent need for Siddaramaiah to come clean on this. Otherwise the crescendo will only become shriller by each passing day. And it may snowball into a movement to oust him from the throne. The native /original congressmen may be rubbing their hands in glee. And some are even baying for his blood. The seizure of large quantity of gold, cash and other unaccounted /unexplained documents from the residence of MLA close to Siddaramaiah puts the onus on him to prove his nonculpability. And the pot calling the kettle black is another matter. It should not be an excuse for wishing away the allegations.

And the centre, on its part is playing its cards well and with calculated feeding of information available with its agencies to rock the boat of Siddaramaiah. And it is breathing down the neck of Siddaramaiah. It is doing in installments not exhausting all at once. It is keeping some ammunition for and during the election campaign. It is in the act of preparing the pitch for bowling out Siddaramaiah and his team Congress.

K.N.Krishnan.

The cost of delay

The origin of the idea of merger of associate banks with parent SBI is perhaps lies at the doorstep of government. Left to SBI, it would not have ventured into this self defeating and the most unwarranted exercise. Clearly, this exercise is aimed NOT at strengthening SBI but rescuing the sinking associate banks with the burden of huge and unacceptable levels of NPAs. SBI does not need any more increase in its size as it is already nearing a stage that it is unwieldy. But the reason government advancing for merger is - to have a few strong banks to take on the competition. This reason doesn't cut ice with anybody. The real reason which is most probable could be to obviate itself from the burden of capitalising weak banks perennially.

The loser in this gambling is SBI and the gainer is government and the associate banks. As it is, SBI is struggling to manage its own size and weight. Post merger, it could be rubbing salt into the wound for SBI. Parent SBI is already saddled itself with unprecedented levels of NPAs and to make matters still worse the NPAs of associate banks are even more alarming. That's why I called the merger self defeating for SBI.

With the news of merger being in air for around a year, the associate banks have started slow peddling of the loaning activities for over six months till now. They have almost stopped lending for a quarter now and busy balancing books and cleansing their assets of NPAs anticipating their merger into SBI. And it is now official that the merger is being delayed/pushed to next quarter ie, next fiscal. Even in the first quarter of next fiscal it unlikely because of its preoccupation with balance sheet activities. That means, it may stretch to Sept quarter. The cost of this delay could be enormous in the sense that SBI is inheriting a weak and truncated asset books of its associates.

- The cost of the delay (of merger) therefore is huge for SBI though it is unintended.

If you have any comments, please post it in the blog.

K.N.Krishnan.