Due to severe asset quality stress and losing business to their rivals in the private sector, public sector banks (PSBs) are increasing pressure on employees to remain competitive.
A Syndicate Bank notice issued on August 30 said, “The principle of no work-no pay takes effect automatically” in case an employee does not report to work or does not work during any part of office hours. The bank had also said it would treat this as a breach of contract and that the employee would not earn salary for the day.
Sources in the bank said the top management withdrew the notice immediately, on grounds that the regional manager had no authority to issue it. “The notice was unwarranted and unethical,” said Suresh Kumar Sangtani, general secretary, Syndicate Bank Employees’ Union. “We are happy that our MD has withdrawn it.”
The Syndicate Bank faced net loss of Rs 263 crore in the June quarter on account of high provisions to cover the rise in gross non-performing assets ratio to 9.96 %. Its cost-to-income ratio was as high as 57.17 % at end of June, compared to the private ICICI Bank`s 42.3 %.
Staff costs account for a substantial part of PSB cost of operation.