IN the wake of Covid-19, the State Bank of Pakistan (SBP) directed all banks and financial institutions that loan installments towards the principal amount should be deferred for one year against consumer finance facilities such as house building, personal loan, car finance, etc., to facilitate borrowers in critical environment.

This is a good initiative by the SBP. The SBP is aware that employees of banks, financial institutions, leasing companies and modarabas etc., also obtain various types of credit facilities from their employers under the staff finance facility, which comes under consumer segments.

Therefore, the SBP should issue directives to banks and financial institutions to accommodate their employees also and loan installment may be deferred at least for six months. These installments should be rescheduled and shifted to the last installment period, and if the last installment of repayment schedule is the date of retirement, all six months’ installment may be adjusted from final dues of the employee.

It is significant to note that bank employees are also facing countless difficulties like others. The finance ministry should direct the central bank to prepare guidelines and balanced policies for banks and financial institutions to establish a mechanism so that human resource policy is maintained in all banks such as bonus, increment and loan facility.

The banks should not be exonerated on the plea that the board of directors of each bank is authorised to make policy. It has been observed that some banks award one bonus to employees on the basis of performance at the time of the end of final accounts.

A number of employees who fall under category performance of grade one and two are deprived of the bonus. In addition, they do not have the right to apply for any credit facility.

Only a few banks award two or three bonuses on Eidul Fitr, Eidul Azha and one based on performance. The SBP should have criteria for all banks without any discrimination.

Ayesha Ahmed
Karachi

Published in Dawn, April 6th, 2020