Bank unions have expressed their opposition to the government’s “unwarranted intervention” in internal bank affairs, specifically concerning the periodic reviews of employee performance. 

They have strongly opposed the government’s directive requiring banks to submit monthly performance reviews of employees in a prescribed format, stating that it amounts to “micromanagement.”

“Government should not come into the picture on this issue. Banks are all run by independent boards. Why should the government ask banks to submit a monthly report of number of employees reviewed or retired prematurely?”, C H Venkatachalam, General Secretary, All India Bank Employees Association (AIBEA) told businessline.

“Why should banks report to government? AIBEA has already agreed and Provision is there in Bipartite settlement to the effect that if somebody is found to be deficient, the management can take action and direct premature retirement”.

Performance review

Department of Financial Services (DFS) in the Finance Ministry had in end September sent instructions to SBI Chairman and MD/CEOs of Nationalised Banks that managements should undertake periodical review of the performance of employees and officers and prematurely retire those who are found to be not efficient.

PSBs have been advised to send a monthly report by 8th of every month to the DFS on this count.

“With this DFS instruction, more than 1 lakh bank employees (above 50 years of age) are going to be affected. They will now be in tension, face psychological pressure”, Venkatachalam noted.

This DFS instructions follows the meeting held on August 14 this year under the Chairmanship of Department of Personnel and Training (DoPT) Secretary regarding the review of performance of employees to strengthen the administrative machinery. 

The purpose of the review is for achieving efficiency, economy and speed in the disposal of government functions.

Bank officers under review

In the case of bank officers in State Bank of India (SBI), performance review will be applicable for those who are 50 years of age or 25 years of service. For nationalised bank, the performance review will be for those officers who are 55 years of age or 30 years of service.

For sub staff and clerks, the age for review is 58 years and above in the case of SBI, while it will be 57 years and above for those in nationalised banks. 

An officer can be prematurely retired by giving 3 months Notice or pay in lieu thereof. A clerk or sub staff can be prematurely retired by giving 2 months Notice.

Venkatachalam said that there are various provisions in the Bipartite Settlements/ Awards/Officers Services Regulations to take action against any employee or officer wherever warranted.

“What the government wants is out of their jurisdiction. They (government) have no authority to do these things. We have not agreed in the Bipartite settlement agreement that government can review. Our Agreement with banks says management can take action”, Venkatachalam said.

He noted that forty years ago bank unions had agreed that if some employee is found to be inefficient, management can take some action. “Why government should come into the internal administrative matters of the banks is our question”,  Venkatachalam said.

He said that the bank management is within its right to remove people for being inefficient and the government should not come in the picture.

He said that AIBEA plans to soon convene a meeting with other unions to discuss the matter.

At the same time, Venkatachalam asserted that AIBEA is not opposed to any stringent action on those employees found to be inefficient or who may have committed any fraud.

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