KOCHI: With the fate of the proposed Kerala Bank still hanging in the balance as the RBI is yet to give an official go-ahead, the management and thousands of employees are staring at an uncertain future.
The proposal envisions to merge 14 District Cooperative Banks (DCBs) and the Kerala State Cooperative Bank (KSCB) to form one of the largest banks in the state.
Scores of employees fear a possible realignment of positions and new HR and retirement policies may significantly affect their work lives. Reacting to media reports indicating that the RBI has given its approval for the bank, Cooperation Minister Kadakampally Surendran said: "We are neither aware of a possible RBI nod, nor have we received any official order." A task force set up for the project is following up with the RBI, he said. In the general body meeting of DCBs held on September 29, it was alleged the news regarding the RBI approval was being deliberately kept secret by the state government to avoid any possible objections.
However, Kerala Bank Task Force chief V R Raveendranath said: "We haven't received any update on a possible approval till date from the RBI." According to him, it has been more than a month since the task force was able to clear all reservations raised by the RBI on criteria such as non-performing asset ratio and internet and mobile banking services for the new bank.
Regarding the structure of the new bank and the issue of how senior officers of KSCB and DCBs will be absorbed, the task force clarified the state government will take a decision only after the RBI approval comes through.
According to the government, more than 1,600 primary-level cooperatives will benefit from the formation of Kerala Bank. Once it becomes a reality, the bank will be able to provide help, including technical support, to primary cooperative banks, which function as the lower rung in the current three-tier system. The state will also be able to tap into the funds of DCBs - flush with deposits to the tune of `70,000 crore - for development activities.
Worry over realignment's effect on work life
Staff fear a possible realignment of positions and new HR and retirement policies may significantly affect their work lives
In the general body meeting of DCBs held on September 29, it was alleged the news regarding the RBI approval was being deliberately kept secret by the state government to avoid any possible objections