ISLAMABAD: As performance of the National Bank of Pakistan (NBP) worsens, the management is struggling to cope with challenges in improving the human resource of the state-owned entity —an area that remains neglected, causing resentment among employees.
The bank has over time sustained heavy losses due to a number of fraud cases that took place overseas, and currently a few domestic branches are facing yet another challenge — how to improve the deteriorating human resource, according to officials privy to the discussions taking place at the level of NBP management and Board of Directors.
Due to outdated staff service rules, preference to contractual employees over regular ones, delay in finalisation of annual performance appraisals and less attractive salaries, the NBP’s workforce has weakened over the years. The regular employees of the bank are frustrated for being ignored when it comes to promotions.
Recently, the NBP’s Bangladesh operations sustained over Rs12 billion in losses. Some cases with billions of rupees frauds at branches located in Sindh and Punjab have also recently surfaced. Majority of the bank’s branches are not electronically linked. The Non-Performing Loans against domestic operations also stand at very high levels and there are no significant recoveries either, according to the officials.
According to an office note of the Institutional Disciplinary Wing about Bangladesh operation losses, all tiers, starting from country operation, to regional office and finally to head office, have failed to check the embezzlement going on in Bangladesh. The office note highlights the breakup of an institutional structure at one of the top five banks of the country.
Instead of taking those responsible for Bangladesh operations to task, the NBP’s Board of Directors recently hired the services of a senior executive. The same senior executive under whose watch the bank sustained Rs12 billion losses. The Board of Directors is also not accountable for its actions, said the sources.
The bank has been mistreated and neglected over the years and there is a need to revamp the human resources department, according to an official who is currently involved in the exercise of reviewing the whole human resource infrastructure of the bank.
He agreed that the revised Staff Services Rules of 1980 were ignored over the years. The bank’s management was in process of reviewing these rules.
At the same time, the management is facing the challenge of striking a balance between the contractual, regular officers and executives of the bank. The sources said the tilt of the new management was in favour of contractual employees and, in the process, recruitment procedures have been compromised.
The regular employees feel that they have been sidelined and their career progression has been blocked due to increasing preference towards contractual employees. They argued that in presence of twelve executive vice presidents who were waiting for promotions, the NBP management has hired two senior executive vice presidents and wanted to bring in five more senior executives.
The official agreed that there was not a procedure when it came to appointing people at executive positions. He said in the next NBP Board meeting, the management was going to review the career planning of the regular employees.
He said in the next couple of weeks the promotions will also be finalised while admitting that the annual performance appraisals were delayed without justification. The management and the board were also in consultation process to finalise new pay package for the NBP employee, he added.
The response of the NBP spokesman was awaited till the filing of this story.
Published in The Express Tribune, July 23rd, 2014.
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"The bank has over time sustained heavy losses due to a number of fraud cases that took place overseas" - lolz, look at the irony....Overseas Operations / Branches have regular employees not contractuals.
As reported above Rs.12 billion staggering loss in Bangladesh operations now detected dates back mostly to the period of Ali Raza. The same executive due to his unusual prolong illegal positing at one station for 20 years including during Ali Raza period is also involved in much bigger losses and scandals in operations at Bahrain and Riyadh. Its report has been suppressed. Further Ali Raza with 11 of his associates senior executives is facing criminal trial in Anti Corruption Court that too registered on the directions of Supreme Court, which if convicted carry life imprisonment, on misappropriation of Staff Welfare Funds and their bails are not being confirmed. Even in Bangladesh scandal and Staff Welfare Fund, the bank management instead of immediate suspending them, allowing to continue on their seats, re-hiring, granting extensions, releasing retirement benefits after fraudulently issuing non involvement certificate etc.,providing them every facility to influence inquiries and destroy valuable evidence and prosecution case apart from not taking any action to freeze their balances, retirement benefits with confiscation of properties to ensure recovery of looted public money with mark up. Further the regulators and law enforcers like SBP, SECP, NAB, FIA etc., are also having blind eye and lukewarm approach for unknown reasons instead acting responsibly by proceeding against all culprits identified according to law with effective measures to recover looted moneys and thus failed to protect interests of various stakeholders of NBP. Supremacy and majesty of law needed to be seen in NBP cases by bringing all involved to justice in public interest.
What can you expect from a politically appointed president whose sole purpose of hiring is to pave ways for privatization?
Ali Raza, the one man glory of this trillion rupees institution ... I wish we could have people half as able he was ...