Workmen Directors On Bank Boards To Refocus Role
Workmen directors on the board of public sector banks are gearing up to refocus their role on the boards and monitor the banks performance more effectively.
A host of crucial issues ranging from the number of non-performing accounts to investment policy to changes in the capital structure of the banks will be thrashed out shortly by the workmen directors of all the public sector banks.
The three-day meeting of the bank workmen directors, beginning March 7 in Pune, is being viewed as a crucial step to build up a framework in which the performance of the banks could be judged more effectively.
The All India Bank Employees Association (Aibea), which has directors on the board of all the public sector banks, has launched what it calls a determined effort to ensure that its board members discharge their functions effectively. The general secretary of the union, Tarakeswar Chakraborti, has sent out this message to the directors ahead of the summit.
The role of the workmen directors has become even more important after the Calcutta-based Uco Bank attempted to slap a wage freeze on its employees. Besides, several banks are still in the red and need to quickly chalk out turnaround strategies. It is in this connection that the workmen directors feel they should play a more pro-active role. The directors will discuss several critical issues. Among them are:
Proposed changes in the banks organisational structure if any
Changes proposed or implemented in the banks capital structure
Credit disbursement, new products
Non-performing assets attempts and results of recovery
Performance plan for 1997-98.
The directors will also discuss the forex business of the banks, the credit policy and some important credit proposals above Rs 1 crore. The meeting will look at important audit reports and the actions proposed on them, and the investment policies of the banks. Discussions will also be focused on the write-off and compromise policy guidelines for 1995-96 and 1996-97. The crucial issue of computerisation and plans of the banks in this regard for the next three years will also be taken up by the directors.