UCO Bank’s employees panicked by its new loss reduction measure

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One of the zonal heads of the Bank had requested to suspend the salaries of the non-performers.

UCO Bank has been making huge losses since the last two years, and is trying hard to find ways to control the situation.

Recently, one of the zonal heads of the Bank had requested to suspend the salaries of the non-performers in 11 branches in Kolkata. These branches have failed miserably in terms of lending and recovery of sticky loans.

The Bank’s employees panicked on hearing of the proposal, which got rejected by the management.

In public-sector banks (PSBs), there is no provision of stopping employees’ salary in case of nonperformance. The bank and employees’ unions come together to fix the salaries and increment of the employees.  

UCO Bank is under extreme pressure due to net losses in the last two financial years and rising NPAs. The Bank’s net losses have increased to Rs 663 crore for the first quarter, and its asset quality has deteriorated to 19.87 per cent of gross advances.

The Reserve Bank of India has directed the Bank to take necessary actions to make up for the losses.

The management is reviewing the performances of the branches regularly and planning to introduce measures to cut the losses.

Employees’ unions have become active since the proposal was shot by the zonal manager.

 

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