Monday, September 15, 2014

General insurance wage talks ; many ready to join New Pension Scheme

Ahead of the second round of wage negotiations beginning tomorrow in New Delhi, state-owned general insurers have written to the government expressing the readiness of a section of their employees to join the new pension scheme which they had rejected twice in the past.

"We have written to the government on the NPS issue, and sought its approval," New India Assurance Chairman-cum Managing Director G Srinivasan, who is also the Chairman of the General Insurance (Public Sector) Association (GIPSA), which is holding the wage talks, told PTI.

The four public sector non-life insurers have around 70,000 employees, of which around 50,000 had already moved on to the New Pension Scheme (NPS).
Around 20,000 employees, working at the four state-owned general insurance firms, will be benefited in case the third option of pension is offered to them as they did not opt for it when the second pension scheme was offered to them falling in line with the banking industry in 2008, he said.
The Monday's wage negotiations will be the second round on the issue, as the first round had already taken place earlier during the year.
All the heads of the four state-owned general insurance companies are likely to attend the meeting which will be held by the GIPSA.

The unions are seeking a hefty 40 per cent hike in net salary and if allowed it will benefit 70,000 employees.
"Majority employees of PSU general insurance firms had not opted for it when the option for pension was offered to them for two times in past as the interest rate on deposit was comparatively high with the banks those days," Bharatiya Veema Karamachari Sena (BVKS) general secretary Prasad Samant said.
"In fact, when the new pension option was offered to us for the second time, we were not given enough time to give our consent and hence a majority of us opted out and hence we want it now," BVKS working president Amrish Sinha said.

Courtesy: Economic Times _ 14092014

Wednesday, September 10, 2014

Performance-link incentives for bank staff under PMJHY likely

The government may offer performance based incentives to banks under the Jan Dhan Yojana which will depend on parameters like the number of accounts opened, the number of households covered, camps conducted and house to house surveys being done by the bank staff.

Industry lobby group Indian Banks' Association (IBA) is engaged in giving a broad outline and conceptualising the incentive scheme. Bankers said that it is the government which will take the final call.

The Pradhan Mantri Jan Dhan Yojana announced by Prime Minister Narendra Modi on August 15 and was launched on August 28 envisages access to banking services to all the un-banked individuals in India. Under this scheme, 75 million people would be provided with a bank account and overdraftfacility of Rs 2000.

Further, they would be provided with a RuPay debit card and Rs 1 lakh accident insurance cover. Those opening an account before January 26, 2015 will also be entitled to avail of a life insurance cover of Rs 30,000.

Courtesy: Business Standard

Private bank chiefs can stay on in office till the age of 70

The Reserve Bank has ended the suspense on the age limit for private sector bank chief executives, bringing relief for investors in HDFC BankBSE -0.96 % and IndusInd Bank, who might have been worried about the fate of their rock star chiefs who have delivered enormous returns in the past few years. Full-time directors of private banks can now continue up to the age of 70, in line with the latest Companies Act.

The bank boards will, however, retain the right to set a lower retirement age for officials, said RBI on Tuesday. One consequence of RBI's clarification might be that second-rung leaders in some of these banks could begin to look for greener pastures as their leadership opportunities will diminish, with many current CEOs likely to continue at least for another five years.


Monday, September 8, 2014

Consolidation among state-run banks

Consolidation among state-run banks is set to a get big push after the results for the quarter to September are declared, with the finance ministry nudging large public sector banks to look at possible combinations in this regard. 

The ministry is expected to soon hold a meeting with all state-run banks to discuss issues related to their operations, their contribution to the economy and coordination with other arms of the government.

The issue of consolidation will also be discussed at this meeting, a senior finance ministry official said, adding that any merger proposal will be evaluated on the parameters of pan-India presence, business and information technology integration. 

Courtesy: Economic Times

Friday, September 5, 2014

Wage Revision Talks

Next Round of Talks 
with IBA will be 
on 17th Septmber, 2014