Old private banks decided to take up the matter with Sinha directly as IBA had "failed" in protecting their interests. "The IBA tried its best, but could not succeed and hence we have to pursue the issue separately," said a member of the private banks' body.

The organisation is demanding exemption from Section 89 of the Income-Tax Act, which makes it mandatory for banks to buy annuities from LIC as a precondition to float any pension scheme. "Public-sector banks have been exempted from this stipulation. They have the freedom to manage their pension funds. We should be given the same freedom," Karur Vysya Bank chairman AD Navaneethan said.

The state-run banking industry had implemented the pension settlement two years ago after a series of strikes, called by different banks' unions, rocked the industry. The old private-sector banks have, however, not been able to implement the pension settlement.

The private-sector bankers' body was set up two years ago to protect the interest of old private banks. "It's not a question of loss of confidence in the IBA. We are part of the IBA, but at the same time it is better to have our own body to take up issues peculiar to us," said a private-sector bank chairman.

New-generation private banks are not members of the second body even though some of them have enrolled as members of IBA after initial hesitation.

Look who's talking

Blame it on the festive season, half-yearly closing of banks, conference-fatigue or whatever you may, the 51st annual general meeting of the IBA turned out to be a flop show with most of the senior bankers staying away from the meet.

None of the Calcutta-based banks' CEOs turned up as they preferred to stay put and enjoy the Durga Puja festival, while bankers of north India were busy with Dussera. Bankers from south had a different excuse to offer for their absence: half-yearly closing.

Even Mumbai bankers were conspicuous of their absence. State Bank of India chairman MS Verma, Central Bank of India chief KC Chowdhary and Dena Bank CEO Ramesh Mishra were busy with either board meetings or other engagements, while Bank of India executive director was away on a overseas tour. Bank of Baroda chairman K Kannan made a brief appearance. Union Bank chief AT Pannir Selvam, being the chairman of the bankers' body, had no choice but to sit through the proceedings.

Foreign banks were represented by Stanchart CEO Martin Fish and private-sector banks by PN Joshi of United Western Bank and AD Navaneethan of Karur Vysya Bank.

The meeting turned out to be a classic case of bankers themselves not taking the organisation seriously and yet expecting corporates to come forward to have a better interface with the body.