Friday, 15 June 2018

Consider taking employees on bank Boards: Delhi Hi...

Delhi High Court has asked the central government to consider the appointment of employee directors on the Boards of public sector banks.

The court intervened after the All India Bank Officers Confederation filed a writ petition at Delhi High Court requesting it to implement the legal provisions of Banking Companies Act and SBI Act regarding appointment of workmen and non-workmen directors in 20 public sector banks. The next hearing of the case is on August 9, 2018.

If the court rules in favour of the employees federation then it can submit a list of employee directors to be appointed to the respective bank Boards. The bank Board will refer it to the Department of Financial Services which will then refer it to the appointments committee.

IDBI Bank is not covered under this order.

Employee associations have been demanding that their representatives be appointed on the bank Boards so that they are privy to the Board decisions on loan sanctions. Unions said their representatives can act like watchdogs keeping a vigil on the bank's functioning.

C H Venkatachalam, general secretary of the All India Bank employees Unions, has also written to the interim finance minister Piyush Goyal, "For the past four years, ever since the NDA government came to power, no appointments of Workman Employee and officer employee directors have been made. Consequently, the posts of Workman Employee Director and Officer Employee Director in all the 20 public sector banks are vacant now." Representations have also been made to the prime ministers office also on the need to appointment employee directors.