The Administrative Board of beleaguered Rupee Bank is trying out all sorts of ideas- routine as well as ones that are out of the box to solve the crisis being faced by the staff and depositors of the Urban Cooperative Bank. Led by Chairman Mukund Abhyankar the Board met both the Maharashtra Cooperation Minister and the Labour Commissioner in this regard last week.
Administrative Board has come up with a bold proposal of saying goodbye to all the staff numbering 550. It is ready to settle their claims at one go and this will cost the Bank about Rs 40 crore, underlined Chairman of the Board. Even otherwise we pay them annual salary to the tune of Rs 30 crore even while they do nothing, he averred.
I agree majority of them are innocent but a crisis is a crisis and in this many suffer without having done any wrong, added Abhyankar.
Our chief goal is to protect the deposits of our members. Presently we have about Rs 750 crores in deposits and salaries are being given out of that only. With one time settlement we would unburden the UCB of a great financial obligation and that way we can safeguard deposits of the bank. Only thing I am suggesting is to a locking period of 2-3 years in which the depositors would not be able to take out their money but interest on their deposits would accrue nonetheless, explained the board chairman.
“The challenge before us is to come to a level where Rupee Bank becomes an attractive proposal for merger”, said Mr Abhyankar to Indian Cooperative on the phone soon after holding a meeting with the Labour Commissioner.
For the several banks with which we are negotiating the merger proposal currently, what matters most is the number of staff. They are not bothered much about the financial losses which they are confident to making up sooner than later.
There are four unions of workers currently active. These are in Mumbai, Thane and Pune. Bank Karmachari Union of Pune having a membership of about 400 workers is the most representative of all and the Board had been active negotiating with them over the past weeks, said Abhyankar.
Earlier, the Board had served notice ordering fifty percent salary cut and drastic pruning of staff leading to a massive protest from the employees unions. Later on the behest of the state cooperation minister, the Board negotiated with unions before the Labour Commissioner.
Abhyankar was regretting loss of time due to appointment of a govt official ( Joint Registrar) as the Administrator earlier by the govt. The poor chap had neither the power to offer OTP nor VRS, Abhyankar said. Explaining the procedure involved Abhyankar said when the conciliation process fails in the Labour Commissioner office it would go to Industrial Tribunal and from there to High Court thereby eating away one to two years of the precious time.
sir
really a good step for saving depositors money,
all depositors are with you sir,
please help us all to get our own money,
god bless you sir
Really appreciate your efforts Mr Abhyankar all depositors are looking up to you to get their money back hope you get success in whatever your planning we are there to support you.
Sir,
Its real bold decision after two years of waiting period for depositors. But one question arises in mind, is any bank ready to take sick bank? Otherwise depositors money again blocked for endless period. Now depositors want quick action by Feb end. Hope under your leadership it will happen and delight depositors. All depositors are with you,but needs positive and quick action.