In Bipartite Meeting held on 18th January 2019 between workmen unions and IBA some issues have been clinched. Next meeting will be held on 1st February 2019.

For detailed Circular Click: http://aipnbsf.org/files/Cir.%202(2019).pdf

As an initiative for recognition of talent, the Bank has decided to reward the merit holders in the ongoing promotion process 2019-20.

For detailed Circular Click: http://aipnbsf.org/files/787f25e3-0841-4527-b306-0c15e496dd38.JPG

On 02.01.2019, the Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the scheme of amalgamation for amalgamating Bank of Baroda, Vijaya Bank and Dena Bank, with Bank of Baroda as the transferee bank and Vijaya Bank and Dena Bank as transferor banks.

The amalgamation will be the first-ever three-way consolidation of banks in India, with the amalgamated bank being India's second largest Public Sector Bank.

The amalgamation will help create a strong globally competitive bank with economies of scale and enable realisation of wide-ranging synergies. Leveraging of networks, low-cost deposits and subsidiaries of the three banks has the potential of yielding significant synergies for positioning the consolidated entity for substantial rise in customer base, market reach, operational efficiency, wider bouquet of products and services, and improved access for customers.

Key points of the Scheme of amalgamation:

(a)  Vijaya Bank and Dena Bank are transferor banks and BoB is transferee bank.

(b) The scheme shall come into force on 1.4.2019.

(c) Upon commencement of the scheme, the undertakings of the transferor banks as a going concern shall be transferred to and shall vest in the transferee bank, including, inter alia, all business, assets, rights, titles, claims, licenses, approvals and other privileges and all property, all bor­rowings, liabilities and obligations.

(d) Every permanent and regular officer or employee of the transferor banks shall become an officer or employee and shall hold his office or service therein in the transferee bank such that the pay and allowance offered to the employees/officers of transferor banks shall not be less favourable as compared to what they would have drawn in the respective transferor bank.

(e) The Board of the transferee bank shall ensure that the interests of all transferring employees and officers of the transferor bank are protected.

(f) The transferee bank shall issue shares to the shareholders of transferor banks as per share exchange ratio. Shareholders of the transferee bank and transferor banks shall be entitled to raise their grievances, if any, in relation to the share exchange ratio, through an expert committee.

According to the Government, some of the strengths of the envisaged amalgamated entity are-

i) The amalgamated bank will be better equipped in the changing environment to meet the credit needs of a growing economy, absorb shocks and capacity to raise resources. Economies of scale and wider scope would position it for improved profitability, wider product offerings, and adoption of technology and best practices across amalgamating entities for cost efficiency and improved risk management, and financial inclusion through wider reach.

ii) It would also enable creation of a bank with scale comparable to global banks and capable of competing effectively in India and globally.

iii) Strengths of individual banks - such as Dena Bank's relatively higher access to low-cost CASA deposits, Vijaya Bank's profitability and availability of capital for growth, and the extensive and global network and offerings of BoB will translate into advantages in terms of market reach, operational efficiencies and the ability to support a wider offering of product and services.

iv) The amalgamated banks will have access to a wider talent pool, and a large database that may be leveraged through analytics for competitive advantage in a rapidly digitalising banking context. Benefits would also flow as a result of wider reach and distribution network and reduction in distribution costs for the products and services through subsidiaries.

We greet the Nation and entire fraternity of Punjab National Bank “A VERY HAPPY NEW YEAR 2019”. 

For New Year Circular Click: http://aipnbsf.org/files/Circular%20%201(2019).pdf

One Day Nation Wide Strike on 21st December 2018 at the call of AIBOC  'A Grand Success'.

One Day Nation Wide Strike by bank employees and officers on 26th December 2018 at the call of United Forum of Bank Unions - A Total Success.

For Circular Click: http://aipnbsf.org/files/NCBE%20Cir.%2034_0.pdf

Shri Shaktikanta Das, IAS officer of Tamil Nadu cadre of 1980 batch has been appointed as 25th Governor of Reserve Bank of India for a period of three years

On 10th December, the Ministry of Finance approved the following in National Pension Scheme (NPS):-

The Government has made NPS more attractive for investors, with the biggest bonanza going to about 18 lakh central government employees. The Centre will contribute 14% of basic salary to their pension corpus, up from 10%. The employee's contribution will remain at 10%, bringing the total contribution to 24%.

Contribution by Government employees under Tier-II of NPS will now be covered under Section 80 C for deduction up to Rs. 1.50 lakh for the purpose of Income Tax at par with other schemes such as GPF, CPF, Employees Provident Fund & PPF provided that there is a lock-in period of 3 years. 

At present, 40% of the total accumulated corpus utilised for purchase of annuity is tax exempt. Of the remaining 60% corpus withdrawn by the NPS subscriber at the time of retirement, 40% is tax exempt and 20% is taxable. The tax exemption is now extended to the entire 60%. With this, the entire withdrawal will now be exempt from income tax. 

The other decisions include: 

*Providing freedom of choice for selection of Pension Funds and pattern of investment to central government employees.                                *Payment of compensation for non-deposit or delayed deposit of NPS contributions during 2004-2012.

In the meeting held on 30th November 2018, IBA improved their offer to 8%. UFBU said it is far below their expectation and urged upon IBA to improve the offer. UFBU also demanded full mandate. Thereafter, UFBU decided to go on strike on 26th December 2018 against merger of Bank of Baroda, Dena Bank and Vijaya Bank.

For Circular on Negotiations and UFBU Meeting Click: http://aipnbsf.org/files/NCBE%20Cir.%2031.pdf

For Circular on Agitational Programme and Strike Click: http://aipnbsf.org/files/NCBE%20Cir.%2032.pdf

Central Committee Meeting of All India PNB Staff Federation will be held on 25th January 2019 at 10.00 a.m. at Hotel Trident Inn, Shree Vishnu Lane, Main Road, Ranchi-1(Jharkhand). All the Central Committee Members are advised to get their tickets booked. Notice follows.