Karnataka Grameena Bank Staff Unites in Protest over Unresolved Issues

In a major development, employees and officers of Karnataka Grameena Bank (KGB) have announced a series of protest actions against the bank’s management over several long pending grievances. The agitation has been called jointly by the Karnataka Grameena Bank Officers’ Federation (KGBOF) and the Karnataka Grameena Bank Employees’ Federation (KGBEF), both affiliated to national-level banking unions.

The federations have issued an official agitational notice under the provisions of the Industrial Disputes Act, 1947, accusing the management of neglecting repeated written appeals and failing to address crucial staff welfare issues.


Image-KGBOF and KGBEF Notice

Unanswered Concerns Spark Staff Unrest
According to the federations, numerous representations made since June 2025 have received neither acknowledgement nor response from the management. They allege that this silence has not only damaged staff morale but also affected efficiency and customer service across the bank’s branches.

In their notice, the federations said that the persistent inaction by the management had forced them to adopt agitational measures. “We have been patient for months, but not a single issue has been resolved. Employees are under continuous pressure and mental stress,” the statement read.

Key Demands Raised by the Staff
The federations have listed several major issues that they want addressed immediately:

1. Withdrawal of AOD/LOR Procedure:
The current system for obtaining Acknowledgment of Debt and Letter of Revival has been termed impractical and legally questionable. Employees demand a return to the earlier eKVGB system, which they say was efficient and in line with legal requirements.

2. Software and EOD Delays:
Following the migration to the Finacle platform, employees and customers have faced serious difficulties, including frequent software failures and prolonged End of Day (EOD) delays. The unions claim that these issues force staff, particularly women employees to work late into the night, raising safety and family concerns.

3. Staff Shortage and Overwork:
Branches are reportedly struggling with staff shortages and uneven workload distribution since the bank’s amalgamation. The federations want fair deployment of personnel and immediate recruitment to ease the burden on existing staff.

4. Allowance Discrepancies:
After the merger of Karnataka Vikas Grameena Bank and Karnataka Gramin Bank, several disparities in staff benefits have emerged. The federations demand uniformity in closing allowance, conveyance reimbursement, tuition fee benefit, housing rent allowance, and mobile bill reimbursement.

5. Absorption of TDS on Perquisites:
Citing a recent Supreme Court judgment and the practice followed by other banks, employees are urging the bank to absorb the TDS deducted from staff welfare benefits such as concessional loans.

6. Implementation of Mandatory Leave Policy:
Although approved earlier this year, the Mandatory Leave Policy requiring officers in sensitive positions to take 10 consecutive working days of leave has not yet been enforced. The unions argue that this delay violates RBI guidelines and increases operational risk.

7. End to Harassment and Unethical Practices:
Serious complaints have surfaced against some regional offices for linking leave to business targets, using offensive language, and pressuring staff for recoveries. The federations have demanded strict disciplinary action and a respectful work environment.

Protest Programme Announced
As part of their agitation, the federations have declared a phased programme of protests:

* From 4 to 6 November 2025: Wearing of black badges as a mark of protest.