Now! UCO Bank starts to hold salary to non-performers- Loss making public sector bank, UCO Bank has decided to stop salaries of its non performing employees. In a context the loss making UCO Bank working on an idea which boosts business and would reduce its gross NPA. The proposed management decision is enough to signaling the working employees that a harder decision is ready to create trouble and panic situation for them in one shot.
One of the zonal heads of the bank had requested in his note, written to the bank’s personnel services department, that personnel services department would have to suspend salaries of employees in 11 branches in an apparent bid to punish them for non-performing.
The proposal was to stop salaries in 11 branches of Kolkata. Where employees and management team has been failed to deliver lending facility and recovery of sticky loans.
In Public sector banks (PSBs) there are no such rules to stop salaries of an employee in case of non performance. While in public sector banks salaries and increment are fixed through a bipartite settlement between employee unions and banks. Bank can deduct the wage of any employee only in case of unauthorized absence.
The management said that “non-performance can’t be accepted”. Bank management is holding review meetings frequently and officials are monitoring the performance of every zone on regular basis in every short interval of weekly and monthly.
The initial issued note from the zonal manager has led trade union leaders into action too.
Partha Chanda, secretary of All India UCO Bank Employees Federation said “All the unions reacted immediately and the management also disapproved such move. But we have put everyone on alert and we are also remaining vigil that such unlawful punitive actions are not taken in future as well.”
Rajen Nagar, president, All India Bank Employees Association said “This was a provocative and unauthorised decision which may affect motivation of the employees badly during the turnaround period of the bank.”
UCO Bank has been under Reserve Bank of India’s prompt corrective action plan due to its large NPA and there were on improvement even situation became worse since last two years. In last two successive financial years, UCO bank has made net losses that amid severe stress on asset quality. The bank’s net losses widened to Rs 663 crore for the first quarter to June 30, awhile asset quality deteriorated to 19.87% of gross advances.