RBI has told banks to furnish details of their exposure to Dubai World, a top conglomerate which has sought a moratorium on its debt payments as an exercise to assess the impact of the debt crisis on the economy.
Sri Duvvuri Subba Rao, Governor, Reserve Bank of India said that RBI would disclose the implications of the crisis for the indian economy if necessary.
RBI wants banks with overseas presence to provide details relating to the exposure of Indian Lenders to firms in Dubai. RBI has sought information on the extent of defaults that banks have seen in their Dubai and UAE portfolios.
Among the Indian Banks, Bank of Baroda has the largest no. of branches (six) in the region, followed by ICICI Bank and State Bank of India.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/RBI-tells-banks-to-reveal-exposure-to-Dubai-World/articleshow/5277428.cms
RBI TELLS TO BANKS TO REVEAL EXPOSURE TO DUBAI WORLD
SBI UNION REJECTS NEW WAGE PACT, DEMAND SEPARATE REVISION
The All India State Bank Officers' Federation (AISBOF) today rejected the proposed 17.5 wage hike and pension benefits and demanded a separate wage revision for them.
The SBI employees demand that the increase should be at par with the salary of the Central Government employees.
The three lakh SBI employees are ready for an indefinite strike to demand a separate wage revision at par with Central Govt. employees.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/SBI-union-rejects-new-wage-pact-demand-separate-revision/articleshow/5279819.cms
BANK EMPLOYEES GET ONE-TIME PENSION OPTION
After bargaining hard over for two years, bank unions and the IBA on Friday finally agreed to the nineth bipartite wage settlment w.e.f. 1.11.2007.
This follows the agreement reached on the pension option being granted once more to existing as well as retired employees.
IBA has agreed to an aggregate annual wage increase of Rs.4816 crores i.e. 17.5% increase.
The total liability on a/c of exisitng employees exercising the pension option is Rs.6000 crores and that due to retired employees is Rs.3116 crores. The gap in the pension liability will shared by the banks and employees in 70:30.
Retired employees (non-pension optees), who were in the service of the bank as on September 29, 1995 and March 26, 1996 and retired thereafter, choosing the pension option will be required to return the bank's contribution to the provident fund with interest thereof received by them at the time of retirement. Further they have to contribute to the pension fund their share of 30% of the gap in pension fund.
Existing employees (non-pension optees) can exercise the pension option by contributing to the pension fund their share 30% of the gap in pension fund. This contribution will be recovered from the arrears payable on wage revision.
According to the agreement, a defined contributory retirement benefit scheme will be introduced for workmen/officers joining the services of banks on or after April 1, 2010.
Source: http://www.thehindubusinessline.com/2009/11/28/stories/2009112851270600.htm
CENTRAL BANK OF INDIA ANNOUNCES THE INTERVIEW SCHEDULE OF PROBATIONARY OFFICERS
Central Bank of India, who has recently announced the results of successful candidates of the written test held for recruitment of the Probationary Officers, has fixed the interview schedules to be conducted at 10 venues across the country. In all, 2359 candidates have been declared successful in the written test.
We are providing the link where the list of successful candidates are notified and their schedule of interviews along with venues.
Source: https://www.centralbankofindia.co.in/upload/PO_INT_VENUE_2009.pdf
AUTHORISED CAPITAL OF PSBs DOUBLED TO RS.3000 CRORE
The government has decided to double the limits of authorized capital in public sector banks from Rs.1500 crores to Rs.3000 crores to help some lenders such as Punjab National Bank, Canara Bank and Allahabad Bank, which were unable to raise capital.
The decision would enable the banks, which have low capital adequacy ratio, to raise more capital.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/finance/Authorised-capital-of-PSBs-doubled-to-Rs-3000-crore/articleshow/5265695.cms
RESERVE BANK REJIGS TOP PORTFOLIOS
With the appointment of Mr. Subir Gokarn as the 4th Dy. Governor, RBI reshuffled some of the key portfolios of its Dy. Governors and Executive Directors. At present, RBI has 4 Dy. Governors and 7 Executive Directors.
Mr. Gokarn has been given a term of three years.
SBI AWAITS RBI, DOHA GOVT. NOD FOR OPENING NEW BRANCH
State Bank of India is awaiting for approval for its proposed Doha Branch from RBI and Doha Government and expecting the approval to receive by the first week of December. SBI expects to start operations by March/April 2010.
Doha has nearly 4-lakh Indian population and many Indian corporates have operations in that country.
Source: http://www.thehindubusinessline.com/blnus/17241001.htm
PNB TO EXPAND NETWORK IN MAHARASHTRA
Punjab National Bank plans to expand its network in Maharashtra and has sought RBI permission to add 11 branches to the existing 156 in the State. Mr. K.R. Kamath, Chairman and Managing Director of the Bank did not rule out mergers with existing banks, including co-operative banks.
PNB will open its 5000th branch soon and plans to open another 50-60 branches during this financial year.
Source: http://www.thehindubusinessline.com/2009/11/25/stories/2009112551321700.htm
BANK OF INDIA CUTS DEPOSIT RATES
Bank of India cuts the interest rate on deposits of some maturities by 25 basis points with effect from November 27. Following the cut, the rates on deposits of 180 days to 269 days will be 5.75% (6%) and on 270 days to 364 days will be 6% (6.25%). The rates on other maturities will remain unchanged.
IBA, BANK UNION TO MEET ON WAGE REVISION
The Indian Banks' Association (IBA) and United Forum of Bank Unions (UFBU) have agreed to meet on November 27 to take wage revision talks forward. The last meeting held in September remained inconclusive as they could not arrive at the accounting methodology of pension.
PNB TO SPEND $18-20 MN TO ACQUIRE DANA BANK
Mr. Nagesh Pydah, Executive Director, Punjab National Bank, said that the bank would complete acquisition of Kazakhstan-based Dana Bank for a consideration of 18-200 mn., to buy out 63.64% stake in Dana Bank. He hoped that Dana Bank will come into PNB's fold by March 31, 2010. He also said that acquisition of Dana Bank would allow PNB to penetrate in CIS (Commonwealth of Independent States) countries.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/PNB-to-spend-18-20-mn-to-acquire-Dana-bank/articleshow/5264958.cms
ARE MERGERS REALLY NEEDED - BY DANENDRA JAIN & GANARAJ CHOUMUHANI, AGARTALA
An article has been published in one of the websites dealing in banking issues on mergers and acquisitions the Public Sector Banks, which is the hot topic. We are reproducing the same here for our readers.
Central Government has been building pressure on banks to make best efforts for merger and acquisition. But I am unable to understand the motive behind it in Indian perspective. Finance Minister has said that through consolidation, financial powers of banks will improve and they will not only be able to augment efficiency and help in GDP growth but also get success in competing with International big banks. Here the million dollar question arises whether Late Indira Gandhi had nationalized banks to compete with International banks, whether banks are meant to extend credit in thousands of crores to a few hundred merchants or manufacturers only?
Has government forgotten the social objective of banks completely?
Is it possible for a government to survive by discarding the interest of common men, farmers, small traders in India? Is it necessary for India to have bigger banks to extend credit to farmers and small traders who together constitutes 95% of population and without whose support even economic viability of large projects would be at stake?
It is important to mention here that there is sharp rise in loan portfolio or visible growth in advances of banks in general is not due to financing made by banks to small traders and farmers but only due to bulk financing made to big corporate houses, to real estate developers and to infra structure developers.
Does any one in the government or in RBI mean that by merger and enhancing powers of banks, there will be equitable GDP growth in country like India?
Even in America where big banks are many, one out of every seven Americans starves and struggle for earning their bread and butter for at least survival. In India the position is worse than that in USA. In India nine out of every ten Indians are unable to earn sufficient money even for respectful living. Considerable large proportion of Indian population is suffering from mal-nutrition; they die of curable diseases in want of propermedical assistance and they remain unemployed in want of adequate opportunities. This is India where even federal structure of the country is at stake due to largely growing unemployment and where person like Raj Thakre has been trying hard to disallow Non-marathi to seek employment in Maharashtra and Shiv Raj Chouhan CM says he would not employment to Biharis and North Indian in the state of MP. Besides in majority of villages, small towns and cities there is no proper sanitation facilities, acute scarcity of water and electricity, crisis for medical treatment and what not. This is why I reiterate that Indian environment is different from other developed nations and hence need unique treatment.
It is worthwhile to add here that USA government have realized after fall of big banks and financial Institution during last year that management of big banks is very difficult compared to smaller ones. Still there are about 8000 smaller banks functioning in USA to serve common men. It is also true that 125 banks became bankrupt or closed their shutters during the current year in USA.
If we talk of India we have less than 30 public sector banks and they are said to be in better health position. They are well scattered in every nook and corner of the country to serve Indians in general. They have to be encouraged to extend maximum help to small borrowers. They cannot extend any better help to poor person after merger of banks. Then what is the need of merger and acquisition? Why is government bent upon merger Need of the hour is to make them able to cater to the needs of common men.
Even if government feels the necessity of having large banks with huge capital to compete with foreign banks, they can choose to have one or two like SBI or PNB (after merger of SBI with associate banks I think capital size of SBI will be comparable with their foreign counterparts and similarly after merger of PNB with some suitable bank), At least other banks should be left untouched to serve common men and forget big projects, bulk financing, corporate borrowers completely and concentrate only on small and mid size borrowers i.e. credit upto ten lacs.
Even if we leave aside the social objective, it is not commercially proposition to build pressure (frequent request by FM or RBI is enough to build pressure) on banks to go for merger and acquisition especially when government have granted economic freedom to individual banks in the era of economic reformation , liberalization and globalization When need will arise banks will themselves strive hard to grow bigger to survive. As of now banks in India are said to be safer than foreign banks. Even government has admitted it repeatedly.
Inspite of all, if government still consider it better to go for merger , I would like to suggest our Finance Minister to merge all PSBs including SBI and make them one entity like Income Tax department and other departments of Government of India so that there be no unwarranted interest rate war, no case of multiple financing, no case of take over at the cost of bank’s interest and no unhealthy competition as prevalent in banking industry. There will be unified effort to recover the money from recalcitrant borrowers. Banks will be able to check money laundering in a better way .People will not get opportunity to park their black money in different branches of different banks.
Need of the hour is to strengthen the existing structure of banks, make them more and more efficient and enthusiastic. Government should make efforts for repayment of loan and for this purpose make water tight laws to ensure cent percent recovery of loan from willful defaulters so that proportion of dead money in bank’s balance sheet comes down and they can afford and generate will to make finance to common men. Present scenario is that branch manager of every bank’s branch is afraid of extending credit to small borrowers in fear of account going bad and lastly added to Non Performing Asset. Need of the hour is to avoid political intervention in banking affairs and to resort to healthy norms for financing without any fear of target achievement. To add fuel to fire all banks are suffering from staff shortage and as a consequence there is no monitoring on existing borrowal accounts and gradually service quality in banks at many branches is deteriorating in want of adequate staff. Banks are even unable to redeploy the existing surplus staff at Metro branches due to protest from powerful employees union.
Last but not the least; bitter truth is that big business houses are getting all sorts of help from the government, from the banks and from all corners but all at the cost of poor and middle family. Rich business houses are producing, hoarding and realizing maximum profit on their products and it will not exaggeration to say that the present trend of rising price is caused by these profit makers only. Government has been making promises and promises to control price, but always fail on this front because they have given undue freedom and undue privileges to these business houses. I hope government will make all best efforts to give relief to general mass who are subjected to unbearable pain on account of sharp price rise in allcommodities without proportionate rise in their monthly income.
India is said to be suffering from naxalism due to increasing poverty and due to the fact that they are denied their legitimate right and they are even deprived of justice in proper time. Can merger and acquisition by banks help in ameliorating their problems of poverty ridden Indians? I would like to draw the attention of learned FM and PM that late Indira Gandhi (Congress Party) had nationalized banks because private banks were hesitant to extend credit to common men, villagers were deprived of banking facilities and common men was afraid of even entering in to bank. Private Banks were exploiting not only staff working in the banks but were also exploiting business houses. It will not be exaggeration to predict and say that the same Congress Party under the banner of UPA is dragging banking industry in pre-nationalization era.
Please keep in mind that during reformation era 23 banks were forcefully merged to bigger banks by government of India because they succumbed to malady and irregularity they accumulated , and not because they were small banks. Giant banks, Lehman Brothers, AIG failed not because they were big but they followed wrong policies and committed misadventure in delivery of credit and in making investments.
In India I doubt the honesty and integrity of government in their efforts for merger, acquisition and consolidation of banks because they know the quantum of malady and bad assets hidden behind the rosy balance sheets of PSBs. Otherwise there is no reason for providing capital infusion to various weak banks from time to time. It is their political agenda to save the banks from exposure of their reality when the misdeeds increases to such a large extent that it punctures the tyre of running banks. They are trying to divert the attention of public from inherent weaknesses of PSBs and this is why they are not agreeable to respectable wage revision of bank employees even after two year long dialogue with union leaders. Exodus of talented employees and non entry of well qualified person in PSB banks is also a vital reason behind growing weakness of Banks. On the contrary private banks like ICICI and HDFC banks have grown to such a large extent in last 15 years of their existence that even 100 year old PSBs are facing challenge for survival.
Source: http://www.allbankingsolutions.com/Contra-views-Merger-of-Banks.htm
SOME VIEWS OF BANKERS ON PROPOSED STRIKE ON 16TH DECEMBER 2009
In one of the websites, some of their readers have expressed their opinion on the proposed strike on 16th December 2009. We are publishing here some of the views appeared in the website. Please note that the views expressed therein are the views of the authors only.
Shail Kishore Prasad: " I am totally agree with the views being shared by our concerned colleagues, who are coming out against these nonsense, idiots i.e. so called leaders of our banking union or association. I am working with SBI and joined as P.O. When we joined bank, we thought that it is well paid job, but considering the accountability and risk factor associated with this job, I think we have made a big mistake in choosing this career.
Now my only humble request to all of my colleagues, through this forum is that please do not participate in the coming strike, which is called for the most nonsense cause and please show the courage to discontinue the union/association fee. These idiots are enjoying their life with our hard earned monies and all these old, erstwhile clerks should be boycotted at all fronts."
Rajesh Kumar: "Now it is high time for all of us to take these bold decisions, otherwise we will be cheated by our own people, who consider themselves as the savior of banking industry."
Nagesh Bharat:"The Union Leaders have taken it granted that the members are their bonded laborers and they can be transported to anywhere they like to show their strength as is done by most political parties in their rallies.
But the most gruesome affair is that the political parties at least pay a day's wage to the laborers who are transported to the meeting place to shout slogans in their favour, but the bank union leaders are in such an advantageous position to blackmail their members that they use their members forcively to chant slogans in their favour but do not pay any wage for that day, rather they advice their bonded laborers to sacrifice a day's salary to the management.
The cruelty on bank employees has crossed the limit of that of the white people made on the blacks as described in the world famous novel "UNCLE TOM'S CABIN".
Ram Prakash Agrwal: Wage revision of bank employees is pending since Nov 2007. There are lakhs of employees looking forward a honorable settlement. The union leaders have lost golden opportunity to strike a deal before general elections. This could not happen due to infightings amongst union leaders as most of the union leaders are retired employees and they have to loose nothing if settlement is delayed. Rather they will be richer by way of union levy. Unfortunately leaders have given a call of strike in December on a Non issue. They have completely ignored the fact that employees are now more concerned with settlement rather than to go on strike on flimsy grounds.
The leaders are thinking that employees are fools and they will satisfy the false ego of leaders.
Employees please beware of such calls which have no value except to loose on day wage on a issue which is "non issue". Our priority should now be to hammer out a honorable wage settlement with an option of pension to all the employees. We should not fight for pension to new entrants which will be covered by NPS. Date of effect has no meaning. Unions cannot fight for employees which are to join from 01.04.2010 or 01.04.2012.
The employees have now become restless due to delay in settlement which is due to inaction from UFBU and due to IBA/Government.
Let the leaders make a honest assessment of mood of employees before giving a fruitless call of strike."
Chandan Datta: "This in a political atmosphere where the central govt employees gained a stupendous increase in their wages even beyond their wild dreams, that too without the need to flex their union muscles even once. The Govt. was generous to a fault and did not grudge the employees this bonanza, out of the revenue kit of the Govt.
On the contrary present pay structure in the Indian banking industries, if one joins as a clerk he gets a salary of Rs.7300/- in cities like Mumbai, Delhi, Kolkata, Chennai or any other metropolis and of still lesser amount when he posted in smaller towns, as some allowances are not admissible there. With the ongoing wage negotiations, the proposed hike will get them Rs.9300/- per month; whereas the person stands to get far better salary with lesser responsibility with any central or state government jobs. What a paradox!"
Ramanathan Kannan: It is highly regretted that even 1% of the concern shown by ordinary bank staff is not shown by the so called leaders. the wage revision for bank staff has become a mockery among the public. to quote recent news, the Tamil Nadu Electricity Board, which is making losses to the tune of crores every year and whose present employees are less than their existing pensioners, has declared a wage increase of 40% effective from 2007. The roles and efficiency of state electricity boards are very well known to every body. Still they could bargain this wage revision due to the efforts of their leaders.
When such is the case with state union leaders, Bank union heads, who proclaim themselves as national level leaders, should resign their posts and give way for young generation people if they do not have capacity to do justice to their roles.
Source: http://www.allbankingsolutions.com/Wage-revision-views-on-proposed-strike-16122009.HTM
MR. SUBIR GOKARN TO TAKE OVER AS RBI DY. GOVERNOR
Mr. Subir Gokarn, former Chief Economist of rating agency - Standard and Poor's (S&P), will take over as Dy. Governor, RBI, tomorrow, in place of Mr. Rakesh Mohan, who quit a few months ago.
CENTRAL BANK OF INDIA HELD SMALL & MEDIUM ENTERPRISES (SME) MEET ON 18.11.2009 AT MORVI IN GUJARAT
Central Bank of India - Morvi Branch arranged a Small & Medium Enterprises (SME) Meeting on 18.11.2009 at Morvi in Gujarat. Central Bank of India has already committed to extend the Credit Line to the extent of Rs.11000 Crores during the Last Gujarat Vibrant Meet. On the occasion, Shri Ramnath Pradeep, Executive Director, Central Bank of India has informed that a special scheme would be finalised to meet the requirements of Ceramic Industry.
Source: https://www.centralbankofindia.co.in/upload/news/Press_Editors_Press_Release.pdf
CANARA BANK STARTS HUNT FOR ACQUISITION
Mr. A.C. Mahajan, Chairman and Managing Director, Canara Bank has indicated that the bank would opt for acquisition to strengthen its presence in Gujarat, Haryana and Manarashtra for inorganic growth in these states. Canara Bank's internal team will start due diligence of some potential targets and appoint consultants from outside to take the process forward.
He has also said that in the meeting conducted by the finance ministry officials to discuss the consolidation roadmap for public sector banks, the five leading PSU banks were asked to give their views on consolidation.
Source: http://www.business-standard.com/india/news/canara-bank-starts-hunt-for-acquisition/377012/
CONSOLIDATION OF BANKS GOOD IN A WAY: CANARA BANK CMD
Mr. A.C. Mahajan, Chairman and Managing Director, Canara Bank has said that consolidation of banks is good in a way as it envisages healthier banks in the global scenario and banking market. He has also said that the Bank would open branches in overseas in cities like Frankfurt, Muscat, Tokyo, New York and Sao Paulo.
Source: http://www.business-standard.com/india/news/consolidationbanks-good-inway-canara-bank-cmd/78913/on
UNION BANK TO OPEN OFFICES IN BELGIUM, UK
Union Bank of India is seeking approval for setting up branch in Belgium and representative offices in UK and Canada to increase the presence in overseas market. This has been disclosed by Mr. M.V.Nair, Chairman and Managing Director. Currently, UBI has a branch in Hong Kong and representative office in Beijing, Shanghai, Sydney and Abu Dhabi.
Source: http://www.thehindubusinessline.com/blnus/17221209.htm
CANARA, DENA BANKS MAY TAKE CONSOLIDATION FORWARD
The Government may facilitate merger of Dena Bank with Canara Bank, which would create an entity with expected business of around Rs.5 lakh crore in current fiscal.
Two days after finance ministry officials met heads of five PSU Banks over the issue of consolidation, Dena Bank Chairman and Managing Director met the additional secretary, finance. It is learnt that they have discussed consolidation among other issues.
If the consolidation goes through, Canara Bank, which has a network of 2960 branches will have a strong presence in Maharashtra, Gujarat and Chattisgarh with 1100 branches of Dena Bank.
Source: http://www.thehindubusinessline.com/businessline/blnus/17221306.htm
OPEN LETTER SENT TO MR. VENKATACHALAM REGARDING WAGE SETTLEMENT AND DA CALCULATION
Open letter written by some Aggrieved Bank Officers, has been published in one of the websites. We are publishing here the same for our readers.
"Dear sir ,
Kindly share what is right and be transparent so that members have confidence in the UFBU, .besides pension, kindly look in to the aspect of Base Year 1960=100 for calculation of DA for employees. The consumer behavior has gone sea change during this period. Consumption Basket do not have many essentials i.e.Petrol, Potato, Cooking Gas etc. All other employees are getting their DA based on 2001=100 series whereas Bankemployees are kept in Dark and they get DA on primitive base year. We are not intelligent enough in keeping the base year at 1960. This do not compensate for price rise properly and as per expert the base year should not be more than 5-10 year old. This is the reason why there is so much gap in compensation of Bank employees vis-a-vis Central Government / PSUs etc. If we would have awakened earlier the problem could have been arrested at the beginning. Our leadership has been sleeping all these years since 1988.
Please take care of youngsters in Banking and they have been given peanuts in all the settlement. The settlement should not be biased towards old/ retired. The compensation package prevailing currently is a gross violation of the promise made to youngsters at the time of joining the Bank. No body from the union should advise youngsters to leave the Bank for better prospects as our leaders are unable to get a decent settlement for the staff.
Kindly do not call for strike for non-sense reason which are other than wage revision, regulated working hours, parity of pay /allowances across all PSBs.
As regards UFBU will take care .UFBU do not have mandate for 17.50 % wage revision and if it has then put it to vote for members as is being done in Brazil reported by AIBEA on website.
All youngsters in banking "
Source: http://www.allbankingsolutions.com/Wage-revision-open-letter-venkatachalam.HTM
PROBLEMS CREATED BY INEFFICIENT LEADERS
An article has been published in one of the websites on the effectiveness of the leadership of the bank unions.
We are publishing the same here for our readers.
1. Mis guiding Bank employees about computerization and they could not do any thing, accepted computerization. In case there is any proposal reverting to manual system they will oppose it.
2. Created the present day problem of second option of pension by misguiding the employees and now butchering the justified wage revision.
3. Signed agreement for scrapping of compassionate appointment.
4. Agreed for scrap of BSRBs because of this the Management in the Banks have started recruiting the wards of officials of other Bank Officials, Central Govt Officials and PSU Officials on the pretext of campus recruitment. Statistics regarding campus recruitment from third rung B-Schools will reveal that. Those who can not be absorbed as clerks in Banks are absorbed in Banking as Scale-II /III etc.
5. Unions are being represented by erstwhile clerks, they start as Clerical Union Leaders, who never works and then move to officers association after promotion. They do not have any habit of hard work. The clerk in the Bank is non-subordinate to any one due to protection equal to daily wager provided in Labour Act and he can stick to a routine. Unfortunately presently the settlement is being done by Retired Clerks, who have never worked in the Bank, even may not be knowing what present day Banking is.
6. Another issue which has never been taken up by Union Leaders is DA Calculation which is based on index of 1960,which is used only in Bankingwith connivance of these so called intelligent self appointed leaders. They have never bothered about revising index to 2001 series. Every expert says that base year should not be more than 10 years old. Bank employees are not being compensated for price rise properly.
7. In the seventh bipartite they agreed for merger of 1616 points, however they merged 1684 points in connivance with IBA, this is equal to cheating.
8. They always blame IBA / Govt for their own inefficiencies.
9. Now they are opposing merger of Banks because many of these people will loose their leadership positions. The merger is going to take place one or other day. These leaders can not stop it.
It is right time for young leadership to develop & wage a logical battle, as regards salary revision it should be taken care by the Banking pay commission.
Our appeal to all youngsters is that they should not go on strike on 16th December for nonsense issues. It is up to IBA/Govt. to take care of YoungEmployees or else we will fight the battle in the court. We have already discussed the matter with some lawyers.
Equal pay for equal work, pay parity with central PSU is our motto and we will succeed and we are against strike & Public should not be put to any inconvenience. In case you want better wage revision please provide best of services wherever you are.
Source: http://www.allbankingsolutions.com/Wage-revision-inefficient-leaders.htm
WHETHER NEW LEADERSHIP IS NECESSARY FOR BANK-MEN
An article written by Mr. K. Balasubramanian, in one of the websites raising a debate on the leadership of bank unions. We are publishing here the same for our readers.
When the UFBU, in particular AIBEA /AIBOA COMBINE, gave a call for strike during next month (16 DECEMBER) against the PROPOSED merger of STATE BANK OF INDORE with SBI, the ministry of finance under the chairmanship of Mr. Chadurvedi conducted a meeting of chiefs of major banks that includes our respected IBA CHAIRMAN AND UNION BANK CHIEF MR. MV. NAIR. on the subject of consolidation ofbanks. CRUELTY OF FATE.
From this it is very clear that neither the government of India represented by ministry of finance nor IBA has taken the protest / strike call seriously. After the ritual CLC meeting if any ,that may be arranged in the days to come either the strike may be called off or the parties may allowthe strike to materialize which means equivalent to one more holiday for the general public and monetary loss to the bank employees in the form of wage cut. The enthusiasm that they are showing for the strike call was not at all shown for the vexed problem of wage revision. Already employees are totally in a negative mood eagerly anticipating major initiatives from all the three sides namely Government/Iba/union. All the three are jointly and severally responsible for the inhuman treatment meted out to bank employees/bank pensioners/bank PF optees who are dyeing daily on a psychological basis and undergoing tension for pension option /decent wage revision.
This situation is mainly called LEADERSHIP VACUUM . ie. No leader of a good stature who is commanding respect from all sides ie political official, fellow union is available. If the answer is A FIRM NO to this view, then no need to negotiate without any solution since 2007
A new avtar of bank union who is realizing the present need of the employees in terms of parity with the government counterparts and at the same time a person of practical approach who will guide the members on a nonpolitical basis and taking the views of the government positively on financial reforms is the absolute need of the hour. Even minority unions belong to major political parties are not airing the views thro press . LACK OF ADEQUATE MEMBERSHIP MAY BE THE REASON There are good opportunities for such unions /associations to take up the matter with more vigour and make the other comrades/officers to rally round them. Only initiative with the real motive of getting the benefits and at the same time cooperation to the government will yield the desired result. In whatever affiliation the person belongs either as individual or a group the moment they start airing the views through their political bosses who is having influence or whose words will be heard in the corridors of power with respect, there is opportunity knocking the doors. When ten lakhs bank employees struggling for the normal wage increase plus other benefits ,they will take that leadership beyond political affiliation if it comes in the right time. The situation is analogous to person who does not know swimming but fallen into deep water crying for help. This situation is also can be compared to certain times sweeping the state elections with altogether anew sloga using the political vacuum . one example LATE .NT RAMA RAO, SLOGAN TELUGU PRIDE. This is only for analogy and not beyond that.
Source: http://www.allbankingsolutions.com/Wage-revision-new-leadership.HTM
DECEMBER STRIKE - IS IT A JOKE OR MAKING FOOLS OF BANK-MEN
An article, written by Mr. Abdul Kader Kutty, has appeared in one of the websites on the Strike call given by some bank unions recently. We are publishing the same here for our readers.
The news seemed a joke or were the leaders making the rank and file of the bank union fools or idiots? What else one could make out of this senseless and idiotic gesture from the leaders at this juncture?
The present wage structure in banks is 7 years old and the revision even as per the agreement in force is overdue for nearly two years. Bank employees have been on strike path for a long time now demanding an honorable wage settlement without even a modicum of success in sight.
This in a political atmosphere where the central govt employees gained a stupendous increase in their wages even beyond their wild dreams, that toowith out the need to flex their union muscles even once. The Govt was generous to a fault and did not grudge the employees this bonanza, out of the revenue kit of the Govt.
The bank employees have been making the coffers of the banks fatter and fatter all these 7 years. The productivity, profit and business per employee of the banks have increased manifold during this period. The percentage of employee cost to the total income and total expense has come down drastically. The external parity of the pay scales in banks has plummeted to new lows while the responsibility and work load of employees have sky rocketed to new heights. And yet to get a legitimate wage hike commensurate with rise in productivity, employees have been waging a war for long without a victory even in sight. And then comes our great leaders out opening a new war front for their exclusive political agenda that they themselves very well know that only remotely concerned with the employees and un-winnable.
It is nearing two months since the last meeting took place with the IBA on the wage settlement. There is no news about the date of next meeting. Is this the way to handle the wage negotiation? Does it warrant such callousness and laziness on the part of our leaders. It warrants only this much urgency! Or are our leaders pre-occupied with their separate agendas to neglect this urgent burning issue? What is going on? Has any body any clues on the matter?
Rumors are going round that IBA is not giving a date for next meeting. If it is true it is very pathetic. Who is responsible for such a situation? Why the UFBU has lost its standing, worth and prestige, its bark and bite? What has made them crawl and wriggle before IBA as spineless worms?
Members cannot remain mute spectators any more.
It is high time they take the situation on their own hands and ask the leaders to come clean on the matter. The leaders should be made to explain the reasons for not exploiting an opportune time for clinching a favorable deal for us like for central govt employees and for their miserable failure on this front. And chalk out an effective way to win the battle. Meanwhile the present strike call should be ignored by one and all.
Source: http://www.allbankingsolutions.com/Wage-revision-december-strike-a-joke.HTM
KODA SCAM FORCES BANKS TO TIGHTEN CASH NORMS
The recent case of Union Bank of India caught in the crossfire in Madhu Koda dealings, has put banks on high alert and most of the banks were looking to tighten their scrutiny of transactions, especially those involving large cash movement.
RBI asked banks to furnish Suspicious Transaction Report (STR) to Financial Intelligence Unit within seven days of arriving at a conclusion that a cash or non-cash "transaction, including attempted transaction, or a series of transaction integrally connected are of suspicious nature." Banks are also bound to report any transaction of Rs.10 lakh and above to the Financial Intelligence Unit.
Source: http://www.business-standard.com/india/news/koda-scam-forces-banks-to-tighten-cash-norms/377207/
INDIAN APPOINTED TO KEY IMF POST
Indian Economist - Mr. Siddharth Tiwari - has been named as Secretary of the International Monetary Fund (IMF) by Dominique Strauss-Kahn, its Managing Director.
Mr. Tiwari, who is currently the director of the Office of Budget and Planning, is set to assume the position, which was held by Shailendra Anjaria before his retirement from the IMF earlier this year.
Source: http://www.business-standard.com/india/news/indian-appointed-to-key-imf-post/377203/
PNB KEEN ON PLAYING ACTIVE ROLE IN INSURANCE MARKET
Mr. K.R. Kamath, Chairman and Managing Director, Punjab National Bank, has said that PNB is keen to play a more active role in the insurance market against the referral model for distribution of insurance, which was adopted earlier. The bank is already in the process of exiting its insurance joint venture with Vijaya Bank and Principal Group. The Joint Venture's business model was disallowed by the Insurance Regulatory & Development Authority (IRDA) though PNB was permitted to offer insurance through referral route. Under the referral mechanism, PNB can only supply potential business "leads" to the insurance company. The JV was to offer both life insurance and non-life insurance products.
PNB's eagerness to have a re-look at insurance comes at a time when many of its peers - SBI or Bank of Baroda or Canara Bank - have floated their life ventures to leverage on a new business model of insurance retailing called bancassurance. This model, popularised by SBI through its life insurance company - SBI Life aims at using the branch network for selling insurance products.
PNB, the country's largest PSU bank, after SBI, is looking to more than double its total business to Rs.10 lakh crore by 2013 and hopes to have a customer base of 150 million and have as many as one lakh customer touch points, which would include branches, banking kiosks and banking correspondents.
Source: http://economictimes.indiatimes.com/features/the-sunday-et/economy/PNB-keen-on-playing-active-role-in-insurance-mkt/articleshow/5256164.cms
PSUs TO LOSE OUT ON INTEREST
Public Sector Companies may continue to lose interest income on their idle deposits as the Government has decided against allowing banks to bid for their bulk deposits. Top PSUs, sitting on surplus cash of over Rs.100000 crore, have been demanding re-start of the bidding as it ensures higher interest rates.
According to a government directive, PSUs have to park 60% of their surplus funds with state-owned banks. Earlier, PSUs used to park funds with banks that offered them the highest rates. In November 2008, the government asked banks to stop bidding for such high-cost deposits. Since then, banks have been taking bulk deposits at card rates.
Source: http://www.business-standard.com/india/news/psus-to-lose-outinterest/377134/
DESPITE ADVISORY, BANKS PARK FUNDS WITH MUTUAL FUNDS
In spite of the RBI's missive advising Banks to reduce their exposure to Mutual Funds, banks pumped in an additional Rs.6261 crore in these instruments in the week upto November 6. The total outstanding investment by banks in MFs stands at Rs.160483 crore compared with Rs.36781 crore on March 27.
Due to lower credit off take, banks are left with only another option to park surplus funds. But bond yields have been volatile, in the last quarter, posing mark-to-market risks.
While large banks were planning to cap their MF exposure at 20% of total investments, smaller banks were limiting such investments to Rs.1000 crore.
Source: http://www.business-standard.com/india/news/despite-advisory-banks-park-fundsmfs/377135/
MS. SHUBHALAKSHMI PANSE TAKES CHARGE AS VIJAYA BANK EXECUTIVE DIRECTOR
Vijaya Bank has said that Ms. Shubhalakshmi Panse has taken over charge as Executive Director of the bank, who comes from Bank of Maharashtra. It also said that she had wide exposure and expertise in diverse disciplines such as credit management, recovery, treasury and information technology at various levels in several locations in the country.
Source: http://www.thehindubusinessline.com/blnus/17211801.htm
MR. SUBHASH CHANDER KALIA TAKES OVER AS UNION BANK OF INDIA EXECUTIVE DIRECTOR
Union Bank of India announced the appointment of Mr. Subhash Chander Kalia as its Executive Director, who was previously serving as Executive Director of Vijaya Bank. Mr. Kalia also worked in Bank of Baroda in various capacities.
Source: http://www.thehindubusinessline.com/blnus/17211502.htm
PUNJAB NATIONAL BANK PLANS TO ACQUIRE MAJORITY STAKE IN KAZAKHSTAN-BASED BANK
Mr. K.R. Kamath, Chairman & Managing Director, Punjab National Bank has said that it plans to acquire a majority stake in a Kazakhstan-based bank to expand its presence in Central Asia. Subject to RBI's approval, PNB wants to pick up 74% stake in a bank called Dana Bank.
PNB also wants to set up a Bank in Bhutan with local partner whereas it has received RBI's approval to set up a subsidiary in Vancouver. It will also upgrade its representative office in Shanghai, China to a branch.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/PNB-plans-to-acquire-majority-stake-in-Kazakhstan-based-bank/articleshow/5255107.cms
"PREDATORY LENDING" DRAWS RBI ATTENTION
The possibility that some banks may be resorting to predatory lending in the face of lacklustre appetite for loans and advances has caught the RBI's eve. Faced with tepid credit uptake in the wake of the economic slowdown, banks are wooing customers, especially in the small and medium enterprises category, from rivals with the promises of lowering pricing and extending additional credit facilities.
BANKS FIND DRT A BETTTER RECOVERY MECHANISM
Banks have found the mechanism of Debt Recovery Tribunal (DRT) and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, more helpful. SARFAESI empowers banks to recover their non-performing assets without the intervention of the Court. A borrower aggrieved by the action of the bank can file an appeal with DRT and then with the Debt Recovery Appellate Tribunal (DRAT), but not with any civil court. However, the borrower has to deposit 50% of the dues before an appeal with DRAT.
In addition to DRTs and the SARFAESI, Asset Reconstruction Companies, which buy off the bad loans from the bank and make recovery by themselves, also finding favor with the banks.
In contrast, Lok Adalats, which are also called "Public Courts", have not proved to be a good means of effecting recoveries from bad loans.
Source: http://www.thehindubusinessline.com/2009/11/21/stories/2009112151300600.htm
GOVERNMENT PLANS RS.10 NOTE IN POLYMER
Government has decided to introduce one billion pieces (100 crore) of Polymer Banknotes in Rs.10 denomination on trial basis to increase the life of notes. RBI has already initiated the process to purchase polymer notes.
Source: http://economictimes.indiatimes.com/news/economy/finance/Government-plans-Rs-10-note-in-polymer-/articleshow/5253828.cms
BANKS TO GET SIX MORE MONTHS TO COVER NPAs
The Reserve Bank of India will give Banks six months more to set aside extra funds from their profits to cover non-performing assets, stretching an earlier deadline of September 2010, which would help the banks to spread the possible adverse impact on their balance sheets over a longer period. After this deadline extension, banks will have to increase their Provision Coverage Ratio (PCR) to 70% by end March 2011. A higher PCR denotes good financial health.
Indian Banking System as a whole has a PCR of slightly above 50% and will have to set aside nearly Rs.21000 crores to raise it to 70%. The bulk of this shortfall relates to country's two largest banks - State Bank of India and ICICI Bank.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/Banks-to-get-six-more-mths-to-cover-NPAs/articleshow/5253059.cms
If you remember, Central Bank of India has already achieved a PCR of 74.3% as on September 30, 2009, i.e one year in advance of RBI's earlier deadline of September 30, 2010.
CORPORATION, ANDHRA & DENA BANK HOT PICKS ON M&A STREET
Corporation Bank, Andhra Bank and Dena Bank are the hot favourites takeover targets among the large PSU Banks which met the Finance Ministry Officials on Wednesday. It is reported that Union Bank, Bank of Baroda and Punjab National Bank are keen on acquiring Corporation Bank while Canara Bank and Punjab National Bank have shown interest in Dena Bank. Bank of India has expressed interest in Oriental Bank of Commerce. Union Bank and Punjab National Bank have also shown interest in Andhra Bank.
The report also says that discussions are in preliminary stage and may take very long time to materialise. Further Finance Ministry officials are likely to meet CEOs of small to medium size PSU Banks to read their mind of consolidation. CEOs of small to medium size banks are most likely to oppose any move of being acquired by large bank on the grounds that loyal customers will desert them and that the banks are performing better on stand alone basis.
Interestingly none of the large banks were keen on acquiring any bank located in eastern belt namely Uco Bank, Allahabad Bank or United Bank of India on fears that there could be resistance from political front and other labour issue.
None of the large banks showed interest in Bank of Maharashtra, Central Bank of India and Punjab & Sindh Bank due to union problems faced by these banks.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/Corporation-Andhra-Dena-Bank-hot-picks-on-MA-street/articleshow/5249059.cms
CANARA BANK EXPLORING POSSIBILITY ACQUISITION FOR GROWTH
As per the report appearing in The Economic Times, Canara Bank, the country's third largest public sector lender, is looking at acquisitions in the regions where it has little presence. Mr. A.C. Mahajan, Chairman and Managing Director, Canara Bank has said that they are looking at geographical synergy to have an inorganic growth where they are not present. He also said that they are deficient in Gujarat and Maharashtra and not having excessive presence in Haryana.
The statement of CMD, Canara Bank assumes significance in the wake of informal meeting of top five banks called by the Finance Ministry on the issue of consolidation.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/Canara-Bank-exploring-possibility-acquisition-for-growth/articleshow/5248476.cms
LIST OF PUBLIC HOLIDAYS FOR THE YEAR 2010 IN THE STATE OF ANDHRA PRADESH
IBA has released the list of public holidays for the year 2010 in the State of Andhra Pradesh as per the Government Notification issued by the Chief Secretary to Government of Andhra Pradesh.
We are publishing here the list of Public Holidays in the State of Andhra Pradesh.
Sl. No. Occasion Date
1 Sankranti/ Pongal Thursday, 14 January
The following festivals occur on Sunday during the year 2010.
LET BANKS DECIDE ON MERGERS
The Economic Times, in its Editorial, has opined that mergers of Public Sector Banks must be board-driven, based on commercial considerations, not bureaucratic fancy. In contrast, merger between India's Public Sector Banks, whether New Bank of India's takeover by Punjab National Bank in the early 1990s or the aborted merger of IFCI with PNB, have been driven by the bureauctratic urge to meddle
Source: http://economictimes.indiatimes.com/opinion/editorial/Let-banks-decide/articleshow/5248787.cms
GOVERNMENT KICKS OFF TALKS ON BANK CONSOLIDATION
The Government started the process of consultation for the consolidation of public sector banks. Finance Ministry officials met the Chairmen of Punjab National Bank, Canara Bank, Bank of Baroda, Bank of India and Union Bank of India to help the Government to prepare a road map.
Sources said the plan was to create 8 to 10 large public sector banks against the present 27.
Source: http://www.business-standard.com/india/news/govt-kicks-off-talksbank-consolidation/376926/
KODA SCAM: ALL NORMS FOLLOWED - UNION BANK OF INDIA
Union Bank of India, which is under Tax Department's scanner, has said that it had followed all the norms and added that it was fully cooperating with the revenue and tax auhtorities on the Rs.4000 crore money laundering scheme.
Mr. M.V. Nair, Chairman and Managing Director, Union Bank of India, told reporters that the bank followed the RBI's cash transaction reporting system and reported every cash deposit of over Rs.10 lacs to the authorities concerned.
Source: http://www.blonnet.com/2009/11/19/stories/2009111951030600.htm
A LONG WAIT FOR INDIAN BANKS ABROAD
As per the report appearing in The Hindu Business Line, US based banks got authorisation to open about 20 branches in our country during the last six years whereas only one Indian Bank - Andhra Bank - has been allowed to open a representative office in New Jersey, US. During July 2008- June 2009, 12 branches of foreign banks were opened in India.
As per WTO rules, India agreed to authorise 12 licences for foreign banks every year.
Source: http://www.thehindubusinessline.com/2009/11/19/stories/2009111951070600.htm
BANK CREDIT INCREASES BY RS.23147 CRORES
As per the report appearing in The Hindu Business Line, bank credit for the fortnight ended November 6, increased by Rs.23147 crores to Rs.28.92 lakh crores against decline of Rs.21750 crores in the preceding fortnight. Most of the increase in the bank credit has been retail front.
Source: http://www.thehindubusinessline.com/2009/11/19/stories/2009111950990600.htm
PSBs SMELL MONEY IN MF,INSURANCE SALE
As per the report appearing in The Economic Times, Public Sector Banks are sensing an opprotunity to pocket additional fee income from selling financial products, mainly Mutual Funds. In the last couple of months, PSU Banks such as State Bank of India, Canara Bank and Bank of Baroda have beefed up their sales teams to focus on selling investment products. These banks are diverting some of their direct recruitees towards selling investment products so as to garner higher income.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/PSBs-smell-money-in-MF-insurance-sale/articleshow/5241422.cms
BANKS SIT ON PILE OF SANCTIONED LOANS
As per the report appearing in The Economic Times, banks are sitting on pile of sanctioned loans although their actual disbursement in the last one and half months is far less, whether short term working capital or long term loans. This is because, borrowers with working capital requirements have found alternate sources of funding like Commercial Paper (C.P.) and therefore not using their sanctioned bank limits fully.
In case of terms loans, banks are facing a longer gestation for loan disbursal, since the bulk of their sanctioned loans are for long term infrastructure projects, unlike in the past. As a result, banks have ended up lending Rs.29000 crores in October this year, against Rs.100000 crores in the corresponding month of October 2008.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/Banks-sitting-on-pile-of-sanctioned-loans/articleshow/5242896.cms
STATISTICAL TABLES RELATING TO BANKS IN INDIA 2008-09
Reserve Bank of India published statistical tables relating to banks in India 2008-09, which provides key information on Banks. It covers bank-wise and bank group-wise information on major items such as liabilities and assets, income and expenses, non-performing assets, financial ratios, spatial distribution of offices, number of employees and details of priority sector advances. It also provides bank group-wise monthly data on some of the major items such as aggregate deposits, liabilities to the banking system, assets with the banking system, investments, bank credit, and, sector-wise and industry-wise gross bank credit.
The analysis shows the profitability of all scheduled commercial banks at aggregate level improved in 2008-09. At bank group level, while return on assets of “SBI & its Associates” and “Nationalised Banks” improved, for “Other Scheduled Commercial Banks” and “Foreign Banks” it declined in 2008-09. Net Non-Performing Assets (NPA) ratio of “Nationalised Banks” at bank group level declined in 2008-09. There has been an increase in the number of employees in the banking sector during 2008-09 over 2007-08. At bank group level, number of employees of “SBI & its Associates” and “Other Scheduled Commercial Banks” increased, while number of employees of “Nationalised Banks” and “Foreign Banks” declined in 2008-09.
We are providing herewith the link for the statistical tables published by Reserve Bank of India.
Link: http://rbi.org.in/scripts/AnnualPublications.aspx?head=Statistical%20Tables%20Relating%20to%20Banks%20of%20India&fromdate=11/17/2009&todate=11/19/2009
SRI S.SRIDHAR, CMD, CENTRAL BANK OF INDIA WRITES A LETTER TO CUSTOMERS
Sri S. Sridhar, Chairman and Managing Director, Central Bank of India has written a letter to the customers of the bank. We are reproducing here below for the beneift of our readers.
Dear Central Bank Customer,
It is customary for incoming Chief Executives of organisations to write to customers immediately after joining, assuring the customers of their best attention and outlining their plans for the future of the organization. I did not deliberately follow conventional wisdom as I wanted to write to you after our own strategic thinking had crystallized. I also thought that it would be nice to write to the customers after we have some achievements. That time has now come.
Our Bank recently announced its half-yearly financial results for the six month period ended September 30, 2009. During this half year both, in terms of Deposits as well as Advances, we have outperformed the market. Our total business as of September 30, 2009 stands at Rs.2,43,718 crore. What is most satisfying is that the Bank’s Net Profit for the last half year was Rs.581 crore which is the highest in its history and higher than the full year’s profit of last year i.e. 2008-09 of Rs.571 crore. It is also higher than the Net Profit for the full year for the last ten years with the exception of 2003-04 (Rs.618 crore).
Apart from these impressive financial results, the Bank has introduced a number of new products. These include various loan products for corporate customers, Cent Gold Kisan Credit Card for farmers, retail products such as SMS alert facility, Pre-generated ATM Cards, Debit Cards, Prepaid Cards (Gift cards), retail sale of gold coins, special package for housing loans, special loan package for doctors, etc.
The important aspect of the Bank’s functioning on which I am laying considerable stress is customer service. I am aware, that many of you have complaints and have experienced levels of service which are not and should not be accepted in performing organizations. I have tried to respond as quickly as possible to customers who have written to me about their problems. Customers’ letters receive the highest priority in my office. I have asked my colleagues, particularly the field functionaries at Zonal, Regional, Branch levels to display the same spirit. Customer Service Committees have already been constituted at the Central Office, Zonal Offices, Regional Offices and selected branches. I would request you to join these initiatives as constructive critics.
Central Bank will be celebrating its Centenary year from December 2010 onwards. It is a momentous occasion for us, Centralites. The Bank which was founded by Sir Sorabji Pochkhanawalla as a Swadeshi Bank has over the years evolved into a Pan India large Commercial Bank contributing to the growth of our country. It is the vision of this management to evolve the Bank into a financial service conglomerate. We have launched on April 2009, ‘Operation Navchetana’ signaling our determination to rejuvenate ourselves in the service of our customers. ‘Operation Navchetana’ will cover our people, our business processes, our branches and offices. Technology is being accorded the highest importance. We now have one-third of our branches accounting for 80% of our total business on Core Banking Solution. We are introducing rapidly a number of technology based financial products, particularly for retail customers. We are also leveraging technology for achieving breakthroughs in financing the poor. Internet Banking has already been launched and Mobile Banking will follow shortly.
On behalf of all Centralites, I assure you of our total commitment to the “Maximum Bank” viz., your Bank, the Central Bank of India.
I will, from now on, write to you monthly, sharing with you our wins, both big and small, our failures and the issues that we face.
I thank you for your continued support and interest in Central Bank of India.
With best regards.
Yours faithfully,
S. SRIDHAR
INDIA STILL AMONG MOST CORRUPT COUNTRIES IN THE WORLD: TRANSPARENCY INTERNATIONAL
Transparency International, the International Watchdog, has ranked India 84th in the list of 180 countries in terms of Public Sector corruption, which is perceived to be highly corrupt. Developing countries like Serbia, Burkina Faso, Peru and Ghana fared better than India by claiming 83, 79, 75 and 69 spots respectively.
It has also reported that the bottom five nations in the list were Somalia, Afghanistan, Myanmar, Sudan and Iraq, whereas the cleanest countries with ranking close to 10 were New Zealand, Denmark and Singapore.
Source: http://economictimes.indiatimes.com/articleshow/5240053.cms
RBI TO ISSUE CIRCULAR ON NPA PROVISIONING SOON
Ms. Usha Thorat, Dy. Governor, RBI told to reporters that the RBI will be issuing circular on provisioning norms soon. This is as a sequel to the announcement made by Mr. D. Subba Rao, Governor, RBI, in the second quarterly review of the monetary policy in October 2009, when he said that there was need to increasing provisioing against bad assets to less than 70 per cent by September 2010.
Source: http://www.business-standard.com/india/news/rbi-to-issue-circularnpa-provisioning-soon/78448/on
BANKS NEED 12 LAC BUSINESS CORRESPONDENTS FOR RURAL AREA
As per the report appearing in Business Standard, Mr. Krishna Mohan, Regional Director, Reserve Bank of India, has said that the Indian Banking Sector needs at least 12 lac business correspondents to work in rural areas to bring six lac villages of the country into banking area. He said that existing 76000 branches of Scheduled Banks are catering only to 6% of the total villages in the country and only nine branches are available for one lac population.
Reserve Bank of India has recently relaxed norms for appointment of business correspondents, who act as an intermediary for banks and perform functions of a bank in an area where the bank does not have a presence.
Source: http://www.business-standard.com/india/news/banks-need-12-lakh-biz-correspondents-for-rural-area/78450/on
BANKS SHOULD CUT LENDING RATES BY 2% - ASSOCHAM
As per the report appearing in The Economic Times, Assocham has demanded the Government to direct the commercial banks to reduce their lending rates by at least 2% to boost the credit off-take, which was at 9% for the period from April to October 2009. The increase in deposits during the same period was 22%.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/Banks-should-cut-lending-rates-by-2-pc-Assocham/articleshow/5237133.cms
RBI ASKS BANKS TO DISCLOSE COMMISSION FROM MFs, INSURERS
As per the report appearing in The Economic Times, Reserve Bank of India, to lend transparency, directed the banks to disclose the commission received by them from Mutual Funds and Insurers for referring their products to customers.It is reported that these directions would come into force with immediate effect.
Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/RBI-asks-banks-to-disclose-commission-from-MF-insurers/articleshow/5237149.cms
AIBOC CIRCULAR NO. 84 DATED NOVEMBER 14TH 2009
AIBOC has issued its circular No. 84 on gruesome killing of officers and employees of United Bank of India, Karimpur Branch, Nadia, West Bengal.
The incident once again demonstrates the pitiable working conditions of the bank staff particularly the officers. Everybody knows that bank officers work late hours to complete the work without any secuirty. Lack of security is a concern to all and the managements immediately should initiate measures to rectify the same.
While condemning the attack, we reproduce hereunder the circular issued by the AIBOC.
CIRCULAR NO:84 14th November, 2009
TO ALL AFFILIATES/MEMBERS
GRUESOME KILLING OF OFFICERS AND EMPLOYEES OF UNITED BANK OF INDIA, KARIMPUR BRANCH, NADIA, WEST BENGAL
Yet, again there are reports from our West Bengal Affiliate about a dacoity at gun-point on 11.11.2009 at Phulbari Branch of United Bank of India, in Jalapiguri District and cold blooded murder of two Bank Officers, one part time sweeper and a generator operator at United Bank of India, Karimpur Branch, Nadia on 12/11/09. These unfortunate incidents have sent shock waves among all the bank officers, shattering their morale and motivation. The officers, who by compulsion, have to sit late in the night to complete the routine work, take care of customer’s service, lending under government sponsored schemes, to priority sectors including agriculture. As a sequel to these incidents, the officers have been suffering from lack of security and fears of personal annihilation.
2. We have addressed letters to the Hon’ble Chief Minister of West Bengal urging him to ensure congenial law and order situation in the far flung areas and also to the Hon’ble Finance Minister, Government of India, urging him to offer employment on compassionate grounds to the legal heirs of the deceased families. We have also addressed a letter to the Chairman, United Bank of India to beef up security arrangements at all the vulnerable centres and have urged upon him to adequately compensate the bereaved families and offer the legal heirs employment on compassionate grounds.
3. AIBOC State Unit of West Bengal will observe protest day against the gruesome events on Monday, the 16th November, 2009 and we request all our affiliates to extend their fraternal support.
With greetings,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
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