The Hyderabad State Bank was opened on 5-4-1942 (i.e. Ist Khurdad 1351 F). The First Branch
of the Bank i.e. Main office, Gunfoundry was opened on 7-4-1942 (i.e.3rd Khurdad 1351 F)
with Mr.R.S.Paton as Managing Director
assisted by Mr.Ali Hydari as Secretary of the Bank . Mr.R.G.Mannurkar was the
Chief Cashier (Khajanchee). While the Managing Director and the Secretary were from the
then Imperial Bank of India, the CHief Cashier was from the then Bank of Bengal
(subsequently known as Imperial Bank of India).
To properly understand the need for forming the Association, we must know the
working conditions of Bank employees prior to and immediately after Independence(i.e. 15-8-1947) and also
the Bank employees' movements in the Country as a whole. We are also a part and partial of the movement.
During and after World war II there was steady rise in the prices of commodities and the
cost of living went up.Middle class employees with fixed incomes had to suffer great
hardships as they were not given any relief.During the years 1946-1947,in some parts
of the Country, Bank employees started presenting demands for higher salaries and alowances and
better conditions of service. In some places Bank employees served strike notices also to the employers.
The movement became strong in Bombay, United PRovinces and Berr and Bengal. Under the
circumstances, the concerned Governments referred the disputes for adjudication. For Bombay Mr.
Justice Divatia,for United Provinces and BerarMr. Justice B.B.Singh and for Bengal
Mr.Justice R. GUpta were appointed as adjudicators. During the above period the
movement was not that strong in south India including Nizam's State(i.e.HYDERABAD)."Divatia Award"
was published in APril 1947 while "B.B. Singh" award was published in March 1947. "Gupta Award" was
published in August 1947.
Not satisfied with the said Awards, the unrest among Bank employees continued
and the Managements of Banks wanted the intervention of the Government of India to
help them in their wage and other disputes with the employees. Meanwhile it was in April
1946 that A.I.B.E.A. was established. The Government of India also enacted the
Banking Companies Regulaiton Act, for the purpose of regulating the transactions
of Banks in 1947. In deference to the wishes/demands of the various Banks'
Managements, the Central Government Pormulgated an ordinance in 1949 for adjudication of the
wage disputes in the Baking Industry.
WHen the Bank employee's movement was so in 1947, a handful of employees working in Hyderabad
State Bank viz., 1) Late SHri.S. Ganapathi Raman;2)Shri B.V.Rahavulu,3)
SHri.Obeidullah Ahmed(whosubsequently left for Pakistan) and 4) SHri.K.Venugopal
5) SHri.L.H.Bhumkar and 6)SHri.R.H.Kulkarni thought of forming an Association and
appproached the then Secretary of the Bank,Late SHri.SYed Hashim Mehdi in November
1947 with a request. The lead for forming the Association was taken by Late Sri.S.Ganapthi
Raman and Sri.B.V.Raghavulu.Prior to coming to our Bank Late Sri S. Ganapathi Raman
who was having leftist views was the Secretary of the Postal Employees'Union.For his
union activities police were after him.He reigned from the Postal Department and
joined the Bank's service in the year 1947. At that time Mr.R.A.B.Allan was the
Managing Director of the Bank.
Thus the Hyderabad state Bank Staff Association was formalised on 29th November
1947 and came into being with the following Office Bearers:
2.Mr.F.ELlis Vice president
4.Mr.S.Obaidullah Ahmed Asst.Secretary
5.Mr.P.J.Raja Bahadur Treasurer
Late SHri.S.Ganapthi Raman and Sri.B.V.Raghavulu were,however, very active in guiding the
Office Bearers in the initial stages in conducting the proceedings of the Association.
Many employees were afraid to become either Office Bearers or Managing Committee members
in those days. The Management of the Bank recognised the Union in the year 1949 (i.e. H.S.B. Staff Association).
The Managing Director Mr.R.A>B.Allan sent word that the staff working in M.D's
Department should not be in the Association, whereupon Mr. F.Ellis resigned from the
It is pertinent for us to recall the sufferings undergone by the Late Shri.S.Ganapathi Raman,
one of our founders,only because he was an active Trade Unionist.He was first arrested by the then
Nizam's Government before Police Action for his alleged Association with the Indian
National along with the other political prisoners and resumed his normal duties.
He wa again arrested after 3 months, this time by the Government of India for his alleged
Association with Communiist.He was released after being in prison for about six months
(in Jalna Camp) following the relentless efforts of the Association in several ways.Shri.
R.R.Vaidya, Sri.L.H.Bhoomkar and SHri.B.V. Raghavulu played a notable role in securing
While India became Independent on the 15th August 47,Nizam's State become Independent only after
"Police Action" from 13/9/1948 to 17/9/1948 (i.e.from 18/9/1948).
Nobody can afford to forget that date i.e. 30/1/1948,the day on which Mahatma Gandhi was shot dead at
Delhi.Similarly on the very same day, it was the evening at aout 4.30PM the Head cashier of the Umri Pay Office
of the Bank Late Shri.Devidas Rao Girgaonkar was attacked by "Freedom Fighters" of Umarkhed camp, a few
miles away from Umri, belonging to the Indian Territory of Maharashtra.Umri was then a Treasury pay office under Nanded Branch.
While Mr.Kishore Dutt was the Clerk-In-Charge of Umri Treasury pay Office, Mr.V.M.Gadgil
was the Manager of our Nanded Branch.The so called "Freedom Fighters" belonging to Congress, who were also
known to Late Mr.Devidas Rao Girgaonkar mercilessly and greviously injured him and
took the keys of the strong Room(from both Clerk-In-Charge and Head Cashier) and carried away cash amounting to Rs.20,63,719-15
from the Currency Chest.Our Head Cashier died on the evening of 31/1/1948.
Another significant incident in the History of Hyderabad State Bank Staff Association was on 15/8/1949.
Two representative of the association approached the then Management of the Bank to permit them to hoist the National
Flag on the old building(Bank premises) known as "Aga Manzil".The Management was
averse to agree and rejected the request.Then the Association representatives hoisted the Flag on a big tree
(Kala Jamun Tree) within the Bank's premises behind the Bank building;with the
hep of a mali named "Meesala Rajaiah" In fact,Rajaiah climbed the tree and hoisted the Flag.
From 1950 onwards it thus became the prerogative of the Staff Association to hoist the Flag.
Now reverting to the general movement of the Bank employees in April.1949 brining all the the bank under its control.
With a view to solve the grievances of the Bank employees, the Central Government appointed
the "sen Tribunal" on 13/6/1949,to go into the Industrial disputes of Bank employees.Since our Organisation was in the initial stage
nobody represented our Association before the "Sen Tribunal".The "Sen Award" was
published on 12/8/1950.The Sypreme Court declared the "Sen Award" as void altogether
due to certain technicalities raised by the Managements of Banks.
Thereafter on 5/1/1952 the Central GOvernment constituted "Sastry Tribunal"for adjustdication of disputes
in the Banking Industry;consisting of (1)Shri.S.panchapagesa Sastry;(2)Shri.M.L.Tannan and
As our Association when formed on 29/11/47, was meant for Twin City subsequently extended to branches in 1952. Late Sri.A.Jagapathi Rao (Ex. President) who happened to be at Nizamabad Branch in 1952 formed an Association at Nizamabad branch called as “Hyderabad State Bank Branch Staff Association”. Naturally before the “Sastry Tribunal “both the Associations were present.
During the year 1954 Com. A.C. Kakkar, President A.I.B.E.A under took a tour of Madras and Hyderabad to organize unions in Banks and also State Organizations. He visited our Head Office and Secunderabad branch.
As a part of Interim relief in the year 1952, Sastry Tribunal directed the Managements of all Banks in the Country to maintain attendance sheets of employees with a view to effect payment of extra hours of work put in by the employees. When our Association demanded payment of over-time at the end of two or three months, our Management refused to do so and issued a circular to all branches stating that the attendance sheets are meant for statistical purposes only, not for payment of overtime. On seeing the said circular, our Hyderabd State Bank Branch Staff Association Nizamabad, under the leadership of Com. A.Jagapathi Rao, took serious objection and sent a Telegram to the Tribunal took it seriously and advised our Management to effect payment immediately. Thus we got overtime for the first time in our history.
In this context, we must recall the contribution made by the following Comrades in building up our Association in various centres during the fifties.
- Shri. V. Madhava Rao in Karimnagar area
- Shri. N.J. Patterson in Warangal area
- Shri. A. Jagapathi Rao in Nizamabad area
- Shri. N.R. Athale at Bombay
- Shri. K. Bhimsen Rao in Karnataka
- Shri. S.R. Pathak and Shri. K.A. Issac of Head Office in Marathwada and
- Shri. U.R. Ramanathan at Madras.
It is significant that our Madras Branch Association joined A.I.b.E.A. in the year 1955 itself through Tamilnadu Bank Employees Federation.
Even though the ‘Sastry Tribunal” agreed with the arguments of the unions of Bank Employees; it still gave us lesser pay and allowances when compared to “Sen Tribunal”. Therefore, several unions raised objections and filed appeals before the Labour Appliate Tribunal of India (L.A.T) constituted by Government of India on 20/11/1953. This time our Association was represented by Late Shri. C.J. James, the then President.
During the years 1951-1952 the “All Hyderabad Bank Employees Association” was formed under the leadership of Com. Y. Sita Ramaiah of Bank of India Which was affiliated to A.I.B.EA. This organization came to be known subsequently as Andhra Pradesh bank Employees Federation. We were co-ordinatinating our activates with All Hyderabad Bank Employee’s Association.
Our Association’s membership swelled with the merger of the Mercantile Bank of Hyderabad with our bank from 1/4/1953.
On 28/4/1954 Labour Appellate Tribunal gave its decision (L.A. T. Award/ known as Jee Jeebhoy Award ) in the matter, giving larger benefits to the Bank employees than those given under Sastry Award. Some of the bankers thought that some of the decisions would adversely affect the Banking Industry. So they represented to the Government that the ompact of the L.A.T decision would be adverse and it may result in closure of some small Banks. While considering the representation of the bankers, the Government directed the Reserve Bank of India to make a sample survey. Based on the material gathered the Central Government came to the conclusion that it would be inexpedient on public grounds to give effect to the whole of the decision of L.A.T. The interference of the Government with this decision raised a wave of discontent amongst the Bank Employees. Ultimately on 17/9/54 the Government appointed a one man commission consisting of Mr. Justice G.S. Rajadhyaksha, a judge of the Bombay High Court. Shortly after undertaking the job he died and in his place shir. P.B. Gajendragadkar was appointed by Government of India. The said One Man Commission gave its award.
The Central Government accordingly modified the L.A.T. Award in certain respects like Area IV to the detriment of bank employees. The modifications made by the Government of India were totally opposed by the bank employees throught the country. Shri. V.V. Giri, the then Labour Minister in the Central Government resigned from his post as the protest against Government’s intervention with published in 1954. With these modifications the Astray Award remained in force up to 31/3/1959, but was extended up to 1/1/1962.
In the year 1955/1956 the Management of the Bank had drastically reduced our bonus from 3 months to one month. There was lot of resentment amongst the employees. Protests were launched and strike at Aurangabad Branch in February 1956. The Association also represented the matter to the then Regional Labour Commission at Madras (Mr. hari Sigh). R.L.C came all the way from Madras to Hyderabad and heard our case and tired to convince the management. As a result we got an additional half months bonus.
Since our bank copied everything from the then Imperial Bank of India (in during (42-1943) viz., the procedures and practices including service conditions of employees, our management provided only two retrial benfits viz, contributory pension and Provident Fund to its employees. Sastry Tribunal made it mandatory on the part of the managements of banks where there was contributory pension scheme, in addition to provident fund, either to convert it into non contributory pension scheme or provide a special gratuity scheme to its employees. The tribunal had given two years time for that change.since our management was not moving in the matter even after two years , the association representatives approached the secretary of the bank (mr.sayed hashim mehdi) and requested him to make it non contributory. then the secretary of the bank said “ It is good for the employees to have three retrial benefits “.
Shri. Syed hasim mehdi, the then secretary of the bank resigned from the bank during the first half of the year 1959 and before resingning he met the office bearers of the association and allowed the association office to occupy two rooms and a hall in the building (Agha Manzil).
At this juncture the Hyderabad state bank was taken over by the reserve bank of India, on the 1st April 1956 as its subsidiary and renamed as”state bank of Hyderabad “. Reserve Bank of India continued to provide S.B.H. Employees the existing two retrial benefiys viz., contributory pension and provident fund. But R.B.I did not provide any gratuity scheme.
The management of the Bank while disbursing over time payment as per the directions of sastry Tribunal, had been committing a mistake in the mode of calculation inspite of clarifications given by the “salim merchant “. This fact was brought to the notice of the Management by S.B.H. Staff Association of secunderabad Branch in 1959 and the Management rectified the position with retrospective effect by paying large amounts by way of arrears. Com. V.Srinivasan the then Br. secretary who later on became General Secretary, played in important part in noticing the discrepancy and presenting the case.
Our bank became the first subsidiary of state Bank of India under the S.B.I. Subsidiary Bank Act on 1/10/1959 And has continued as such. The S.B.I. discontinued the contributory pension scheme for recruits from 1/10/1959 onwards and introduced the gratuity Regulations in 1960 as per the directions of the Sastry Tribunal.
Our Association was affiliated to A.I.B.E.A. in the year 1959 through its State Federations in A.P., Karnataka & Maharashtra. While A.P.B.E.F. was taking the guidance of Com Raj Bahadur Gour and Com. K.L. Mahendra, Maharashtra Bank Employees Federation was taking the guidance of Com. P.S. Sunderesan whereas, Tamil Nadu Bank Employees Federation is under the guidance of Com. N. sampath.
The Mercantile bank of Hyderabad was classified by Sastry Tribunal as “C” Class Bank and Hyderabad State Bank as “B” class bank. When Mercantile Bank of Hyderabad merged with Hyderabad State Bank on 1/4/1953, the Management applied “C” class Bank pay scales and allowances instead of “B” class bank pay scales to the staff of Mercantile Bank. Shri. BV.Raghavulu, Central Committee Member of the Association at Secunderabad branch played an important role in noticing the discrepancy and presenting the case before the Management and Asst. labor Commissioner in Secunderabad in the year 1961. After one year, the Management came down and awarded the difference of two increments to the concerned employees; thus bringing them to the level of “B” class Bank employees pay scales and allowances in the year 1963.
On 21/3/1960 Desai tribunal was appointed by the Government of India. Shri. V.Srinivasan, the then General Secretary attended the Tribunal as the Association representative during its proceedings in 1961. The Desai Award came in to force from 1.1.1962.
In the year 1963, the Management informed the Staff Association that in future for promotions to Officers posts they are going to introduce another category of officers cadre called as Junior Officers with lesser pay scales as against the then existing Staff Assistants cadre, renamed as Officers Grade-C. The Association vehemently opposed the move and organized protests and boycotted the test wherever it was conducted. Out of hundreds of eligible candidates for the test the Management could only conduct test for 17 candidates and with a vengeance, however promoted all the 17 candidates as Junior Officers, irrespective of their performance in proceedings before the Assistant Labor Commissioner. The Association took the lead in the Twin Cities in organizing demonstrations and protest rallies against sections 36 A and 54 A of the Social Control Bill, introduced by the then Finance Minster Late Shri. Morarji Desai curbing demonstrations etc. in the banking Industry.
A Golden era of the Association started in the year 1965 when the Bankers agreed to settle demands for improving pay sacles and service conditions across the table with A.I.B.E.A, thus putting an end to Tribunals. As you are aware, the implementation of 1st Bipartite settlement from 1/1/1966; succeeded by Bipartite settlements 2 to 6.
A Significant mile stone in the history of our Association was the formation at our initiative, of “State Sector bank Employees’ Association” in November 1966. Representatives of six subsidiary Banks attended the first meeting which was presided over by Com. Prabhatkar. All our members were aware of the signal role played by S.S.B>E.A. in the Subsidiary Banks and their employees by State Bank of India Management and the benefits which have flowed over the years.
The Bank employees under the leadership of A.I.B.E.A. were agitating for nationalization of Commercial banks since 1966. In 1967 Bank employees went on a day’s strike and ultimately the Government nationalized 14 banks on 19/7/1969. Subsequently we got wages for that one day’s strike periods due to the efforts of the A.I.B.E.A. were agitating for nationlisation of Commercial Banks Since 1966. In 1967 Bank employees went on a days strike and ultimately the Government nationalized 14 Banks on 19/7/1969. Subsequently we got wages for that one day’s strike period due to the efforts of the A.I.B.E.A.
In the year 1967, the Staff Association purchased old building for Rs. 1.18 thousand and the same building was subsequently demolished and the present building stands in its place indicating the strength and solidity of the Staff Association. Com. H.L. Parvana graced the occasion.
It gives us pleasure to call the Silver Jubilee Celebrations of our Associations in November 1972, at Lady Hydery Club, Basheer Bagh, Hyderabad. Com. Prabhakar, Com –H.L.Parvana, Com. N. Sampath of A.I.B.E.A. and some other the function were honoured Guests. The then old office bearers of the Association were invited and honored with a garland and a memento.
Thanks to A.I.B.E.A.’s persistent efforts, Work-men Directors were appointed in various Banks. In our Bank Com.B.V.Raghavulu, who was the then President of the Association was appointed as the first Workmen Director 1/4//1978 and continued upto June 1982 by Com.Eswar Rao followed by Com.K.Shyam Sunder, Com-N. Seetha Rama Rao and now Com.N.S.Peshkar in that order.
The old guards of State Bank of Hyderabad Staff Association and State Bank of Hyderabad Officers Association formed the State Bank of Hyderabad Pensioners Association (An all cadre Association) in the year 1985 i.e. on Sunday the 16June 1985 with the following office bearers:
1. Mr. A. Jagapathi Rao - President
2. Mr. B.V. Raghavulu - Vice-President
3. Mr. P.K. Janardhan - Secretary
4. Mr. P.V.K.Punneshwar Rao - Jt.Secretary
5. Mr.V.S.Prakasa Rao - Treasurer
S.B.H. Staff Association Zindabad