Govt moves towards privatisation of IDBI Bank

Union Finance Minister Arun Jaitley said in his Budget speech that the government has started the process of transformation of IDBI Bank and will look at bringing down government's stake in the bank below 51%.

Following an intent in the Budget, the IDBI Bank share shot up by 8% to 60 per share on Bombay Stock Exchange.

Currently, government's stake in the bank is more than 80%.

This is the first official announcement on such a move, even as discussion were on to dilute stake in the bank. IDBI Bank could be test case for the government before it moves to reduce stake in other banks as capital infusion is becoming challenging for the government considering its tight fiscal stance. 

On recapitalisation, Jaitley said government will infuse Rs 25,000 crore in public sector banks, while the government stands to infuse more if need be. The figure is part of the planned recapitalisation that the government announced last year, under its Indradhanush programme. 

Under the plan, the government will infuse Rs 70,000 crore in phases and has already infused Rs 19,950 crore to 13 public sector banks. Hence, there is nothing much new in the racapitalisation front except the government assurance that it stands "solidly behind banks."

Vinod Rai appointed Chairman of Banks Board Bureau

Former CAG Vinod Rai was on Sunday appointed first Chairman of the Banks Board Bureau, which will advise the government on top-level appointments at public sector lenders and ways to address the bad loans problem among other issues.

Besides, ICICI Bank’s former Joint Managing Director H.N. Sinor, Bank of Baroda’s former CMD Anil K Khandelwal and rating agency CRISIL’s former chief Rupa Kudwa have been appointed members.

FEB 29th STRIKE DEFERRED

AMICABLE UNDERSTANDING REACHED WITH THE MANAGEMENT OF DHANLAKSHMI BANK MANAGEMENT AND  RECORDED IN THE PRESENCE OF RLC COCHIN. STRIKE STANDS DEFERRED.  CIRCULAR FOLLOWS._ SUDHARSHAN

RESULTS OF COMPUTER LITERACY TEST SCL 4 TO 5

PLEASE FIND LIST OF OFFICERS WHO HAVE CLEARED COMPUTER LITERACY TEST 

EMPLOYEES PF TO EARN HIGHER INTEREST

The employees' provident fund will earn a higher interest rate of 8.8% for 2015-16, marginally up from the existing 8.75%. There has been demand to hike the PF interest rate to 8.90%.

Union Labour Minister Bandaru Dattatreya said the hike is an 'interim one' and indicated that it could be further revised later. There is global slowdown and interest rates in India are also coming down, the minister said, adding that the Reserve Bank of India and other central government organisations are monitoring the market trends.

"We had last time given 8.75% and this time, seeing the situation, we are declaring 8.8% for the workers," he told reporters after chairing the 211th meeting of the Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO).

While trade unions had demanded that the interest rate be fixed at 8.90%, the government had revised it to 8.80%, he said, underlining the Centre's commitment to the working class.

On trade unions' demand for 8.9% interest rate, he said, if that was implemented, the 'surplus' the government will have would be Rs 285 crore. And in the case of 8.8%, the surplus will be Rs 673 crore, he explained.

RBI EXTENDS DEADLINE FOR EXCHANGING PRE 2005 CURRENCY TO JUNE 2016

Reserve Bank on Wednesday extended the deadline for exchanging pre-2005 currency notes of various denominations, including Rs 500 and Rs 1,000, by another six months to June 30, 2016.

The Reserve Bank had, in June 2015, set the last date for public to exchange pre-2005 banknotes notes as December 31, 2015.

"RBI, on a review, decided to extend the date for the public to exchange their pre-2005 banknotes till June 30, 2016," it said in a statement.

However, RBI added that from January 1, 2016, such facility will only be available at identified bank branches and Issue Offices of the Reserve Bank.

Supreme Court asks RBI to submit list of large loan defaulters

Expressing serious concerns over the rise in bad loans, the Supreme Court (SC) on Tuesday asked the Reserve Bank of India (RBI) to submit a list of big loan defaulters who owe more than Rs 500 crore.

The court has given the central bank eight weeks to submit the information in a sealed cover.

The direction was issued by a bench which was hearing a public interest litigation against Housing and Urban Development Corporation (Hudco). 

The bench, headed by Chief Justice TS Thakur, expressed concern over the mounting bad debts of the banking system, pointing out at the irregularities in sanctioning huge loans to wilful defaulters in some cases.

Wilful defaults are pegged around Rs 3.75 lakh crore. According to bankers, that is three-fourth of the gross non-performing assets (NPAs). This is the list that bankers submit to RBI.

RBI to visit banks secretly, track customer dealings

The Reserve Bank of India (RBI) on Tuesday said that it will soon undertake “incognito visits” to bank branches to check culture towards customer complaints in banks.

It will also undertake a review of how banks have implemented Charter of Customer Rights, the central bank said in a statement.

“Customers must have the right to access banking services and to the grievance redressal machinery — to banks' internal mechanism for grievance redressal as well as the Banking Ombudsman Scheme of the Reserve Bank — so that they are not excluded from the banking fold," the release quoting Governor Raghu-ram Rajan said.

Dr Rajan had inaugurated the Annual Confe-rence of Banking Omb-udsmen 2016 held in Thiruvananthapuram on February 15-16, 2016

He said websites, mobile phones, missed calls, physical places, and collection points could be some ways to aggregate customer complaints for redressal. The RBI had put out a Charter of Customer Rights in public domain and asked banks to implement it.

தள்ளாடும் பொதுத்துறை வங்கிகள்

கடந்த வாரத்தின் தலைப்பு செய்தியாக பங்குச் சந்தையின் சரிவு இருக்கலாம். ஆனால் அவ்வளவு பெரிய சரிவை உண்டாக்கியதில் பொதுத்துறை வங்கிகளின் பங்கு மிக முக்கியமானது. கடந்த வாரம் பல பொதுத்துறை வங்கிகளின் டிசம்பர் காலாண்டு முடிவுகள் வெளியானது. இதில் பெரும்பாலான வங்கிகள் கடும் நஷ்டத்தை சந்தித்தன. வாராக்கடன்களுக்காக அதிக தொகையை ஒதுக்கீடு செய்ததன் காரணமாக நஷ்டம் அதிகரித்துக்கொண்டே சென்றது.

இந்த நிலைமையில் கடந்த மூன்று வருடங்களில் பொதுத்துறை வங்கிகள் 1.14 லட்சம் கோடி ரூபாய் அளவுக்கு கடனை தள்ளுபடி செய்திருக்கின்றன. கடந்த 2014-15ம் நிதி ஆண்டில் எஸ்பிஐ அதிகபட்சமாக 21,313 கோடி ரூபாய் தள்ளுபடி செய்திருக்கிறது. இதனைத் தொடர்ந்து பஞ்சாப் நேஷனல் வங்கி, இந்தியன் ஓவர்சீஸ் வங்கி, அலகாபாத் வங்கி உள்ளிட்ட பல பொதுத்துறை வங்கிகள் கடந்த நிதி ஆண்டில் மட்டும் கணிசமான தொகையை தள்ளுபடி செய்திருந்தன.

இதற்கிடையே செப்டம்பர் 2015 நிலவரப்படி பொதுத்துறை வங்கிகளின் மொத்த வாராக்கடன் ரூ. 3,00,743 கோடி என்ற நிலையை தொட்டது. கடந்த மார்ச் மாதத்தில் ரூ. 2.67 லட்சம் கோடி ரூபாய் என்ற நிலையில் இருந்து ஆறு மாதங்களில் வாராக்கடன் கணிசமாக அதிகரித்துள்ளது.

வாராக்கடன் நிலைமை குறித்து அதிருப்தி தெரிவித்த ரிசர்வ் வங்கி, 2017-ம் ஆண்டு மார்ச் மாதத்துக்குள் தங்களது நிதி நிலை அறிக்கையில் உள்ள சுமைகளை நீக்குவதற்கு அவகாசம் கொடுத்திருந்தது. இந்த பிரச்சினையை பேண்டேஜ் போட்டு மறைக்க முடியாது. அறுவை சிகிச்சை செய்ய வேண்டும் என்று கூறினார் ரிசர்வ் வங்கியின் கவர்னர் ரகுராம் ராஜன். இது மட்டுமல்லாமல், துணை கவர்னர் எஸ்.எஸ்.முந்த்ராவும் காலக்கெடுவை நீட்டிக்க முடியாது என்று தெரிவித்தார்.

இதனைத் தொடர்ந்தே பொதுத்துறை வங்கிகள் வாராக்கடனுக்காக அதிக தொகையை ஒதுக்க ஆரம்பித்தன. இதனால் பல வங்கிகள் நஷ்டத்தை சந்தித்தன.

source: Hindu Tamil

NEW SCHEME OF REIMBURSEMENT OF HOSPITALISATION EXPENSES

ALL INDIA BANK OFFICERS’ CONFEDERATION

Letter No. 2016/12 Date: 04/02/2016

The Chairman,

Indian Banks’ Association,

Mumbai.

Respected Sir,

NEW SCHEME OF REIMBURSEMENT OF HOSPITALISATION EXPENSES

This has reference to the discussions held with you on 03/02/2016 on residual and other issues raised by us before the Dy. CLC(C) on 08/12/2015. During the discussions on the New Scheme of Reimbursement of Hospitalisation Expenses – with specific reference to the reimbursement of the expenses on domiciliary treatment to retired officers - you had categorically stated that IBA was committed to the initial agreement and discussions and United India Insurance Co. Ltd. (UIICL) should honour such claims from retired officers. We were also informed that the last date for enrolling into the Hospitalisation Scheme for the retirees stood extended up to 31/03/2016.

AIBOC GIVES NATION WIDE STRIKE CALL FOR 29TH FEBRUARY, 2016

ALL INDIA BANK OFFICERS’ CONFEDERATION

Circular No. 2016/08                                                                                    Date:11/02/2016

To All Affiliates/Members

Dear Comrades,

AIBOC GIVES NATION WIDE STRIKE CALL FOR 29TH FEBRUARY, 2016
DEMANDS REINSTATEMENT OF COM. P.V. MOHANAN

Our members are aware that Com. P.V. Mohanan, General Secretary of Dhanlaxmi Bank Officers’ Organisation and President of All India Bank Oifficers’ Confederation, Kerala State was terminated from the services of Dhanlaxmi Bank by the Management on June 11th 2015 invoking draconian clause 14(1) of the Service regulations without quoting any reason. The Officers in Dhanlaxmi Bank went on indefinite strike for 33 long days to protest against his termination. The strike was deferred on 14th July, 2015 after the intervention of the Govt. of Kerala. In a discussion between the Management and AIBOC leaders in the presence of Honourable Home Minister of Kerala, there was an agreement that the termination orders of Com. Mohanan will be frozen and within 2 months the issue will be resolved through mutual dialogue. However, the Management chose not to have any discussion with Officers’ Association thereafter and so the issue is not resolved even after seven months of settlement. All formal and informal efforts made by the leadership of AIBOC and DBOO failed.

New Scheme of Hospitalisation Reimbursement

ALL INDIA BANK OFFICERS’ CONFEDERATION

Circular No. 2016/07                                                                              Date:06/02/2016

To All Affiliates/Members

Dear Comrades,

New Scheme of Hospitalisation Reimbursement – Reimbursement of Expenses on Domiciliary Treatment to Retired Officers

We invite the attention of the affiliates/members towards our circular No.2016/06 dated 03/02/2016, wherein, we had conveyed the discussions AIBOC had with IBA on the subject on 03/02/2016. IBA reiterated its stand to enforce United India Insurance Co. Ltd. (UNIICL) to abide by their commitment in honouring reimbursement of domiciliary treatment expenses incurred by the retired officers. Further, it has also extended the last date for joining the New Hospitalisation Scheme upto 31/03/2016.

We now understand that United India Insurance Co. Ltd. had written to the Bank Managements intimating their inability to reimburse the domiciliary treatment expenses to retirees. Further they had also stipulated 20/02/2016 as the last date for the retirees to withdraw from the Hospitalisation Reimbursement Scheme with full reimbursement of the premium.

IBA HELD DISCUSSION WITH AIBOC

ALL INDIA BANK OFFICERS' CONFEDERATION

Circular No. 2016/06                                                                            Date:03/02/2016

To All Affiliates/Members

Dear Comrades,

IBA HELD DISCUSSION WITH AIBOC

RESIDUAL ISSUES OF THE 10TH BIPARTITE SETTLEMENT

& OTHER ISSUES RAISED BEFORE DY CLC (C) ON 08.12.2015

We had requested IBA to arrange for a meeting with our representatives to discuss the latest developments and the developments in the matter of various issues on which we had given a call for one Day Strike on 11.12.2015. Our members are aware that the strike was subsequently called off based on the positive response from IBA in the conciliation meeting held before the Dy. Chief Labour Commissioner (Central) on 08.12.2015. Accordingly, IBA called the meeting today at their Office, which was attended by Com. Y. Sudarshan (President), Com. Harvinder Singh (General Secretary), Com. Dilip Saha (Sr. Vice President), Com. Sanjay A. Manjrekar (Vice President) and Com. M.B.Tripathi (State Secretary, Maharashtra Strate I), on behalf of AIBOC.

We thanked the IBA Officials for calling us for the follow up meeting and requested them to brief us on the steps taken on the assurances given by the IBA on the issues raised by us in the conciliation meeting held before the Dy. Chief Labour Commissioner (C) on 08.12.2015. The representatives of the IBA informed that they have been working on all the issues as advised in conciliation meeting. There after, we took up each of the issues for discussion.

Stress and the City: Britain's bank workers buckle under pressure

Dwindling job security, heavier workloads, regulatory upheaval and the poor public image of the banking sector are taking a toll on the mental health of Britain's bank workers.

Eight years after the global financial crisis, stress in the industry has pushed up demand for insurance to protect revenues against the cost of paying staff too sick to work, insurance data show.

"The problem has gone into a new stratosphere since the financial crisis ... Those who still have a job are vilified," said Jagdev Kenth, director of risk and regulatory strategy in the financial institutions group at Willis Towers Watson.

"Most haven't had anything to do with the scandals. They're working longer hours, doing two to three jobs, under greater pressure. Something has to give."

Once havens for prestigious, highly-paid and lifelong careers, banks have undergone rapid cultural and structural change at the behest of regulators tasked with reining them in.

Tougher capital rules, hefty misconduct fines, and the closure of riskier business lines have forced banks to slash staff.

Ten of Europe's largest lenders have axed 130,000 jobs since June, Reuters data shows.

Banks will be restored to health by March 2017, says Raghuram Rajan

Reserve Bank of India Governor Raghuram Rajan on Thursday said central bank and government efforts to clean up banks' balance sheets would be successful, and warned analysts against "scare-mongering" about the level of stressed assets in the sector.

India's banks are struggling under $100 billion of stressed loans, choking the financial system at a time when the economy needs fresh investment to galvanise growth.

The RBI would strive to have "clean and fully provisioned bank balance sheets by March 2017," Rajan said, adding that the government's planned capital infusion in state-run banks would be sufficient.

State-run banks like SBI, Bank of Baroda, Central Bank of India, apprise PM Narendra Modi of rising bad loans

Last week, Prime Minister Narendra Modi met senior finance ministry officials and got aware of rising bad loans at state-run banks.

Some of these banks have announced that they could not get desired third-quarter results because they were pushed by RBI to set aside money so that bad loans can be covered and their books can be cleaned up. 

"The prime minister was apprised of the situation. It is not that grave as it is made out to be," a senior government official told ET. "We are hopeful that as the bankruptcy law gets passed, financial institutions will have more teeth to rein in defaulters." 

Capital requirements of state-run banks and the impact of bad loans on their profitability were also the topics of discussion in the meeting. 

"The government is committed to adequately capitalise PSBs (public sector banks)," he said. "It is expected that the last quarter of this fiscal will also see some more rise in bad loans because of Reserve Bank of India's asset quality review (AQR)."

The government has already committed Rs 70,000 crore to be given till FY19 for bank recapitalisation, and the amount can be increased if required, said the official. (Source: ET)

WHAT RBI GOVERNOR SAYS FOR THE LOSS INCURRED BY PSBs

COMPARATIVE CHART ON PSBs

SHRI. THOMAS FRANCO INTERVIEW IN THE HINDU

More banking reforms coming soon, says Arun Jaitley

The government will unveil a series of banking reforms in the coming days but it has no intention to exit from the sector, Finance Minister Arun Jaitley said on Sunday.

"There are a series of banking reforms which I am likely to announce in the days to come... you may find something on that," Jaitley said at a forum here during the government's Make In India Week event here.

"I don't think India has reached a stage where the state can pull out of banking altogether," he said.

Declaring state-run banks to be a necessity because of their major role in financial inclusion, he said the government was already committed to bring down its holding in these to up to 51 percent.

The finance minister's comments come after public sector banks posted poor earnings for the third quarter and an asset quality review by the Reserve Bank of India showed a major rise in bad assets and provisioning.

Regarding the government's commitment not to interfere in the running of banks, Jaitley said: "We have erred in the past on this."

Jaitley also said the government is committed to provide a predictable and stable tax regime, adding that tax demands raised in the past have given the country a "bad reputation".

He said the government has embarked on a path to make India's tax regime globally competitive and the move to bring down the corporate tax gradually to 25 percent is a part of the strategy.

TOWN HALL MEETING AT CHENNAI

A SECTION OF CETRALITES

ADDRESS BY SHRI SAKTETHARAM,GS,CBOA(TN)

ADDRESS BY SHRI B MISHRA, FGM CHENNAI

Message from Mr. SHANKAR, DGS, CBOA(TN) thru WHATSAPP

Senior Regional Manager, Chennai Region has convened a Town Hall meeting at the following venue and it will be chaired by Shri B Mishra, FGM, Chennai.

We appeal to all our members to attend the meeting without fail.

Date: 12.02.2016
Time: 4.30 pm
Venue: PT Thiagaraya Hall, GN Chetty Road, T.Nagar, Chennai-17

Details on Promotion Process for AFOs and Scl 1 Officers

Bank's Result for the 3rd quarter ended 31 dec 2015

APPEAL MADE BY SHRI B MISHRA, FGM, CHENNAI TO ALL CENTRALITES OF CHENNAI ZONE

BUSINESS DEVELOPMENT MEETING WITH CBOA AT ZONAL OFFICE

Shri N SAKETHARAM, GS,CBOA(TN) WRITES,

In today's Business Development Meeting called by Shri Mishra, FGM, Chennai, the interaction was very positive and useful.  In order to strengthen the business of our zone, he has made an appeal in the form of a letter which is appended herewith.  CBOA expects all our members to rise to the occasion and strengthen the hands of Zonal Manager. We also appeal to all our memebers to ensure that the negativity is removed and all branches become positive by Mar-2016.

BRANCH MANAGER CONCLAVE HELD AT CHENNAI ON FEB 7,2016

INAGURAL ADDRESS BY SHRI.MISHRA, FGM

OUR GS AND DGS

A SECTION OF PARTICIPANTS

CM SHRI LN SURESH ON AN INTERACTION

BRANCH MANAGER CONCLAVE AT CHENNAI