Implication of the reports of the Deccan Herald, dated 07/09/08:
This state of affairs, where we are not sure of the future of our organization is due to total disregard of the interests of the officers by the office bearers of the ABOA. Despite the fact that every office bearer accepts in private that merger will be beneficial for every officer, they have kept on fighting against it for their personal benefits in the short run. Instead of coming forward for a healthy and fruitful dialogue with the Central Office, they have carried forward a war against merger by forcing innocent members of the ABOA to go on a number of strikes during past 16 months. The participations by the officers in these strikes have created misgivings in media that the officers of Abs in general do not want consolidation. This notion is wrong as almost all officers of ABs want to be the part of larger / stronger SBI.
Implications, if the media reports turn out to be true
1.Are we ready to be sold? If not merged / acquired by the SBI, the three associate banks may be left out either to fetch business on their own in highly competitive environment without the “state bank” name/ its blue “logo” or can be put on the sale by the SBI to shore up its own capital base. By selling the listed shares of these banks, the small percentage (less than5%) of share of the three banks floated in the market will fetch over Rs5500 crore to capital-starved SBI. The other fixed assets held by these three banks would be sold like hot cake, which will help SBI to take a berth in top 25 banks ameliorating its position from the present 57th rank among top 1000 banks of world. The process would be easier by way of private placements / strategic sale of public shares of these three listed Abs by SBI.
2.Are we ready to be engulfed by Vijaya/Syndicate/Central Bank or corporates feuds like Ambanis? In case of divestment of stake in these Abs by SBI, these banks may face acquisitions by PSBs like Vijaya / Syndicate /Central Bank etc or by any private sector Bank like ICICI Bank/ Karnataka Bank/ Yes bank etc. Given, the opening up the financial sector post 2009. There is a likelihood that even the business houses like TATAs, BIRLAs, AMBANIs, RUIAs etc may come forward to take over these banks. Raghuram Rajan committee recommendation clearly spelt out that post 2009, small under performing (mind it any bank can be declared under- performer) PSU banks should be sold out to private banks. Uday Kotak, CEO of Kotak Mahindra Bank has been found telling that post 2009, Government will allow stake purchase in PSU banks by Private Banks. We have to decide whether we should sacrifice the housing loan, personal loan at 6% and plethora of other benefits after merging with SBI or survive in shaky PSBs where benefits are at lowest possible level and working conditions are appalling.
3.Are you ready to give away State Bank Group status in society? Working in State Bank group has been prestigious and beneficial to the officers of entire State Bank Group. Every officer / Employee of State bank Group has lived with each other as members of a large joint family. There have been similarities in style of functioning, organizational behavior and expected responses. All these will go away in one stroke in any kind of organization restructuring outside the State Bank Group. The trauma of working under different work ethics and different organizational culture will have damaging effect on individual officer of these three listed associate banks.
4.If not, then your survival will be ensured by the size of the bank only In the given context of modern banking; it is very difficult to remain afloat by small banks across the world. We have already seen more than 10 small banks’ closure in US in last one year (11th is Silver State Bank of Henderson, Nevada in US, the latest bank collapsed on September6th). Even after writing off several billion of dollars in loss assets, big banks like Citibank, UBS AG, HSBC still survives the shock of sub prime mortgage crisis. Size really matters. It has become crystal and clear that capital is the critical factor in modern banking due to stiff capital adequacy norms adopted by regulators, which to small banks like SBM will be a daunting task to arrange for. Even to continue the business of erstwhile SBS, SBI had to infuse capital of Rs 175 crore in SBS during financial year 2007-08. The same situation may prevail with any of the Associate Banks. Even SBI may face the paucity of capital post 2009; forget about small banks whose survival itself would be at stake.
All the points enumerated above require serious thought and soul searching by every officer of these three associate banks. It is believed that all the officers of these associate banks want merger, but have been dissuaded from expressing their willingness in the open. Now, the time has come, when every officer should come forward and vehemently force the office bearers of ABOA to communicate their willingness to the boards of the respective banks and the central office. ABOA must be persuaded to play an effective role to ensure that these three associate banks be merged with SBI at the earliest.
Now, the officers’ fate vis-à-vis the choice of future organization lies in their own hands. It is the duty of each officer of these three Abs to communicate his or her favour for merger to one’s association and to the top managements of these Abs and also to the chairman of SBI.
ACT BEFORE IT IS TOO LATE
OUR SURVIVAL WILL BE ENSURED ONLY WITH MERGER WITH SBI
DO NOT PARTICIPATE IN ANY STRIKE AGAINST MERGER OF PSU BANKS
Make the Forthcoming Strike of 24-25TH September unsuccessful and give signal of pro-merger to Government and market
Please Visit: --
http://bankofficersprogressiveforum.blogspot.com/
-----------------------------------------------------------------------------------------------
Having been fiercely persuaded by the agitated officers in Mumbai meet on 30.08.2008, our General Secretary, ABOA (Mysore Unit) has agreed on a unified appeal, a sort of referendum against any move affecting smooth-merger of SBM with SBI.
We are aware that SBI has stopped all the benefits viz. staff loans – housing, vehicle and c/a overdraft with the lowest interest rate, recent hike in petrol-reimbursement etc. as they are irked by frequent strike calls against merger. Undoubtedly, our stability and existence can be protected only in big organisation like SBI in the present trend of opening up of banking sector. We also know that SBI has provided third benefit along with interest to SBS officers from the date of joining to SBS. They are also offered all the benefits, which are presently provided to SBI officers.
To protect our interest, you are requested to sign the appeal-letter appended below and send it to General Secretary, Association Office, ABOA (Mysore Unit), Avenue Road, Bangalore – 9 under copy to CC Member of your area. Please call to Association office at 080-22354006,22267677,22261304 in support of merger and fax your merger support letter to 080-22382902
APPEAL-LETTER
To,
General Secretary,
ABOA (Mysore Unit)
Dear Sir,
I, ……………………………………., employee no………………., designation………
……………presently working in State Bank of Mysore, ………………… Branch, am in
favour of merger/acquisition of State Bank of Mysore with State Bank of India and would
not be participating in any of the strike (including two-day strike of 24-25th
September, 2008) called against the merger/acquisition.
Signature of the officer
Implications, if the media reports turn out to be true
1.Are we ready to be sold? If not merged / acquired by the SBI, the three associate banks may be left out either to fetch business on their own in highly competitive environment without the “state bank” name/ its blue “logo” or can be put on the sale by the SBI to shore up its own capital base. By selling the listed shares of these banks, the small percentage (less than5%) of share of the three banks floated in the market will fetch over Rs5500 crore to capital-starved SBI. The other fixed assets held by these three banks would be sold like hot cake, which will help SBI to take a berth in top 25 banks ameliorating its position from the present 57th rank among top 1000 banks of world. The process would be easier by way of private placements / strategic sale of public shares of these three listed Abs by SBI.
2.Are we ready to be engulfed by Vijaya/Syndicate/Central Bank or corporates feuds like Ambanis? In case of divestment of stake in these Abs by SBI, these banks may face acquisitions by PSBs like Vijaya / Syndicate /Central Bank etc or by any private sector Bank like ICICI Bank/ Karnataka Bank/ Yes bank etc. Given, the opening up the financial sector post 2009. There is a likelihood that even the business houses like TATAs, BIRLAs, AMBANIs, RUIAs etc may come forward to take over these banks. Raghuram Rajan committee recommendation clearly spelt out that post 2009, small under performing (mind it any bank can be declared under- performer) PSU banks should be sold out to private banks. Uday Kotak, CEO of Kotak Mahindra Bank has been found telling that post 2009, Government will allow stake purchase in PSU banks by Private Banks. We have to decide whether we should sacrifice the housing loan, personal loan at 6% and plethora of other benefits after merging with SBI or survive in shaky PSBs where benefits are at lowest possible level and working conditions are appalling.
3.Are you ready to give away State Bank Group status in society? Working in State Bank group has been prestigious and beneficial to the officers of entire State Bank Group. Every officer / Employee of State bank Group has lived with each other as members of a large joint family. There have been similarities in style of functioning, organizational behavior and expected responses. All these will go away in one stroke in any kind of organization restructuring outside the State Bank Group. The trauma of working under different work ethics and different organizational culture will have damaging effect on individual officer of these three listed associate banks.
4.If not, then your survival will be ensured by the size of the bank only In the given context of modern banking; it is very difficult to remain afloat by small banks across the world. We have already seen more than 10 small banks’ closure in US in last one year (11th is Silver State Bank of Henderson, Nevada in US, the latest bank collapsed on September6th). Even after writing off several billion of dollars in loss assets, big banks like Citibank, UBS AG, HSBC still survives the shock of sub prime mortgage crisis. Size really matters. It has become crystal and clear that capital is the critical factor in modern banking due to stiff capital adequacy norms adopted by regulators, which to small banks like SBM will be a daunting task to arrange for. Even to continue the business of erstwhile SBS, SBI had to infuse capital of Rs 175 crore in SBS during financial year 2007-08. The same situation may prevail with any of the Associate Banks. Even SBI may face the paucity of capital post 2009; forget about small banks whose survival itself would be at stake.
All the points enumerated above require serious thought and soul searching by every officer of these three associate banks. It is believed that all the officers of these associate banks want merger, but have been dissuaded from expressing their willingness in the open. Now, the time has come, when every officer should come forward and vehemently force the office bearers of ABOA to communicate their willingness to the boards of the respective banks and the central office. ABOA must be persuaded to play an effective role to ensure that these three associate banks be merged with SBI at the earliest.
Now, the officers’ fate vis-à-vis the choice of future organization lies in their own hands. It is the duty of each officer of these three Abs to communicate his or her favour for merger to one’s association and to the top managements of these Abs and also to the chairman of SBI.
ACT BEFORE IT IS TOO LATE
OUR SURVIVAL WILL BE ENSURED ONLY WITH MERGER WITH SBI
DO NOT PARTICIPATE IN ANY STRIKE AGAINST MERGER OF PSU BANKS
Make the Forthcoming Strike of 24-25TH September unsuccessful and give signal of pro-merger to Government and market
Please Visit: --
http://bankofficersprogressiveforum.blogspot.com/
-----------------------------------------------------------------------------------------------
Having been fiercely persuaded by the agitated officers in Mumbai meet on 30.08.2008, our General Secretary, ABOA (Mysore Unit) has agreed on a unified appeal, a sort of referendum against any move affecting smooth-merger of SBM with SBI.
We are aware that SBI has stopped all the benefits viz. staff loans – housing, vehicle and c/a overdraft with the lowest interest rate, recent hike in petrol-reimbursement etc. as they are irked by frequent strike calls against merger. Undoubtedly, our stability and existence can be protected only in big organisation like SBI in the present trend of opening up of banking sector. We also know that SBI has provided third benefit along with interest to SBS officers from the date of joining to SBS. They are also offered all the benefits, which are presently provided to SBI officers.
To protect our interest, you are requested to sign the appeal-letter appended below and send it to General Secretary, Association Office, ABOA (Mysore Unit), Avenue Road, Bangalore – 9 under copy to CC Member of your area. Please call to Association office at 080-22354006,22267677,22261304 in support of merger and fax your merger support letter to 080-22382902
APPEAL-LETTER
To,
General Secretary,
ABOA (Mysore Unit)
Dear Sir,
I, ……………………………………., employee no………………., designation………
……………presently working in State Bank of Mysore, ………………… Branch, am in
favour of merger/acquisition of State Bank of Mysore with State Bank of India and would
not be participating in any of the strike (including two-day strike of 24-25th
September, 2008) called against the merger/acquisition.
Signature of the officer
3 comments:
Dear SBM Officers,
It is really a scary situation that if we are left behind and not merged with SBI.
The very survival of Our Bank depends on our Merger with SBI.
As such, please support the MERGER with SBI.
Please remember in this dog-eat-dog world of survival, only the fittest will survive.
Remember Darwin's Theory of Evolution?
If you stay like sitting ducks, we will be eaten away by vultures that are going to land here. Mind you, vultures have excellent noses and can sense (their volfactory abilities are extremely high) the opportunity from as far as five to seven miles away.
The same fate happened to Dodos, an extinct bird species, of the Madagascar.
So, let us not sit like a duck or a bird.
WE ALL SHALL ACT NOW.
IT IS A DO-OR-DIE SITUATION.
GIVE A BIG CALL FOR MERGER OF SBM WITH SBI.
THEREBY, WE SHALL SAVE OUR SOULS.
with regards,
BHARAT JODO SEVEN
Dear SBM Officers,
It is the time for all of us to come forward and support the MERGER OF SBM WITH SBI
IT IS NOW OR NEVER
And it is also the time for REAL LEADERS to stand up,Guide the people ,Majority of the officers wants the merger to happen,protest against the decisions taken by our so called leaders. To lead them the leaders has to come out, rise to the occasion
SUPPORT THE MERGER - SAVE SBM
I am happy that this forum is raising issues, which are in the interest of officers of SBM. Our Association leaders have buried their heads to avoid the reality and want to act on behalf of Nadaf or Vekatachalam. These leaders have lost moral responsibility to continue in the Association. Therefore I request to the members of this forum to demand the resignation of these leaders whose motive is dangerous to the welfare of SBM officers.
I salute the courage and vision of this forum. Keep on fighting for the welfare of Officers Community. God bless the forum.
Amin!
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