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.

Unable to take pressure, bank officer ends life

BHOPAL: A bank official reportedly committed suicide by jumping from third floor of a building at Arera Hills near district jail where counting for civic elections was on, here on Wednesday afternoon. Police said a suicide note was recovered from the spot in which he mentioned he was not able to handle work pressure. 

WAGE REVISION TALKS

NEXT ROUND OF TALKS WITH

IBA

WILL TAKE PLACE 

AT 

12 NOON

ON

03-02-2015

Centre scraps 9 names listed by UPA to head PSU banks

Amid allegations of widespread irregularities, the government on Monday scrapped two panels of candidates for top jobs in public sector banks that was finalized towards the end of UPA regime. It will now launch a fresh exercise to appoint eight bank chiefs (nine candidates had been shortlisted, with one person earmarked against a future vacancy) and 14 executive directors. 

Several top state-run banks including Bank of Baroda and Canara Bank have been without a full-time chairman and managing director and Punjab National Bank joined the list on Monday with KR Kamath's term coming to an end. Sources said that the appointments are expected to be finalized over the next few weeks. 

New rule to pick PSU bank heads

The government today scrapped the selection process of public sector bank heads after a high-level panel found irregularities in the exercise by the previous UPA government.

The probe into the selections to banks such as Bank of Baroda and Canara Bank was initiated following the arrest and termination of the tenure of Syndicate Bank chairman S.K. Jain in August for alleged graft.

A finance ministry statement said the future vacancies of chairman and managing directors (CMDs) as well as executive directors of PSU banks would now be filled through a new selection process.

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

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.

Courtesy:ET

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

Wage Revision Talks

Next Round of Talks 

with IBA will be 

on 17th Septmber, 2014 

NEW CHAIRMAN FOR IBA

The Indian Banks’ Association has elected TM Bhasin, Chairman and Managing Director of Indian Bank, as the Chairman of the Association for 2014-15. 

He was elected at the Association’s 67th annual general meeting. 

Prior to Bhasin, KR Kamath, CMD of Punjab National Bank, was the IBA Chairman. The AGM also elected three Deputy Chairpersons — Arun Kaul, CMD, UCO Bank; SL Bansal, CMD, Oriental Bank of Commerce, and Chanda Kochhar, MD & CEO, ICICI Bank — and an Honorary Secretary — Arundhati Bhattacharya, Chairman, State Bank of India.

RBI governor Raghuram Rajan reassures staff, reiterates need for restructuring

The Reserve Bank of India (RBI) governor,Raghuram Rajan, met trade union leaders on Tuesday, advocating lateral recruitment and creation of an additional deputy governor's post for the monetary policy, while trying to allay their fears on a few proposals. At a meeting attended by the top brass of the central bank - the United Forum of RBI Officers -the officials expressed their misgivings on Rajan's plans to restructure and reorganise the bank.

NEW GOVT DIRECTIVES TO PSBs on LADY EMPLYEE TRANSFER NORMS;HL TO STAFF AND COMPASSIONATE APPOINTMENTS

Employees at public sector banks (PSBs) have much to cheer, with the government announcing a series of feel-good steps. Women separated from their families will now get a preferential treatment in transfers, and next of kin of the employees who die in service will be provided employment on compassionate grounds.

The government has also asked the Indian Banks Association to include a board-approved employee home loan scheme as part of wage negotiations. The freedom to structure a favourable home loan scheme for employees will help banks deploy surplus funds and provide a boost to housing.

Preferential transfers will come as a relief to thousands of women bank employees, but the move could cause some operational upheaval in the short term.

In a circular to all banks, the department of financial services said that “female employees when placedtransferred away from their husband or parents to distant locations face a genuine hardship and develop a feeling of insecurity”.

It said that banks should as far as possible place or transfer a woman employee to a place where her husband is stationed or nearby. Similarly, unmarried women employees should be posted close to their parents’ place.

“PSBs are, therefore, advised to frame a policy on the subject with the approval of their board suitably incorporating the above and take immediate action for implementation and compliance.

Pending requests may be considered under these guidelines,” the circular said.

‘Compassionate employment’ or employment to children or spouses of the employees who die in service was discontinued after 200405. The finance ministry circular, addressed to the chairman of the Indian Banks Association, says that the government has approved the reintroduction of ‘compassionate appointment’ in public sector banks on the lines of the central government scheme with effect from August 5. It has discontinued the provision of ex-gratia payment in lieu of such appointments.

Courtesy:TOI

TOP LEVEL APPOINTMENTS IN PSBs - NEW NORMS TO BE FOLLOWED

Courtesy:TOI

HAPPY INDEPENDENCE DAY WISHES

Relook on recent appointments of top-level public sector bank executives

Courtesy: TOI

PRIVATE BANK'S PAY TIPS THE SCALES

The world of finance in India is a study in contrast. The gulf between private and public sector banks has been widening on various parameters — growth, bad loans, profitability, service standards, product innovation and many more.

The most glaring difference between the two banking segments is in the compensation and incentive structure. Private sector bankers are paid astronomical sums, which they justify on grounds of profitability — performance determines pay. 

Now, there is a need for a change in state-owned banks' pay structure given that they handle as much resources, if not more, than their private peers. 

Courtesy: Economic Times

PJ Nayak Committee Recommendations

An RBI-constituted committee led by PJ Nayak Tuesday (13.05.2014) submitted its recommendations to improve the governance structure of state-owned banks and also to help private sector banks attract more capital. Following are the key commendations of the panel:

1. Given poor asset quality and low productivity, either privatize PSU banks or transform governance structure to make them efficient.

2. Reduce government stake in PSU banks to less than 50 percent.

3. Remove dual structure of both Finance Ministry and RBI regulating PSU banks. Give all regulatory authority to RBI  

4. Improve quality of PSU bank board discussions; focus on key areas like business strategy, financial reports, risk, and compliance.  

5. The government should transfer its stake in PSU banks to a holding company termed Bank Investment Company  

6. Government should reduce its stake in BIC to under 50 percent and appoint a professional management for BIC  

7. For better accountability, BIC should be governed by The Companies Act 2013, and not the Bank Nationalisation Acts of 1970 and 1980

8. Ownership functions to be transferred by BIC to the bank boards. Appointments of directors, CEO to be the responsibility of bank boards.  

9. Have uniform bank licensing regime across all broad-based banks, and niche licenses for banks with more narrowly defined businesses.

10. Allow mutual funds , pension funds, PE funds to hold 20 percent in private sector banks, without having to take RBI approval.

11. Allow promoter investors to hold up to 25 percent in private sector banks, against the 15 percent ceiling currently  

12. Ensure a minimum five-year tenure for bank Chairmen and a minimum three year tenure for Executive Directors

 13. Private equity funds, including sovereign wealth funds, be permitted to take a controlling stake of upto 40 per cent in distressed banks

14. Allow voting rights in proportion to the stake held

15. Bank officers guilty of ever-greening loans (offering new loans to repay old ones) should be penalized financially 

Courtesy: Money control

Call for 5-day week for state banks resurfaces

The Indian Banks' Association (IBA) is reconsidering a long-standing demand from  unions to keep bank branches open for only five days a week.

IBA has commissioned a study to evaluate the pros and cons of keeping banks shut on Saturdays. The staff unions, under the umbrella of the United Forum of Bank Unions (UFBU), refuse to budge on this demand, people familiar with the development told Business Standard.

The merits and the challenges of a five-day week will be placed before the new government by IBA after the general elections, sources said.

Courtesy: Business Standard

Public sector bank (PSB) officers seek pay parity with Government officers.

Public sector bank (PSB) officers are seeking pay parity with Government officers.

"If higher pay scales to Government officers is considered just on the grounds that such compensation will not corrupt them or allure them to receive bribe from the public, why not apply the same yardstick for officers of public sector banks, where the incidence of such allurement is much higher?' argue industry sources.

Comparing the Fifth Pay Commission recommendations for Government officers with the proposed hike offered to PSB officers, the General Secretary of All India Bank Officers' Confederation Harvinder Singh said 'there is no justification on the Government's stand'.

“The IBA made an initial offer of 5 per cent salary increase on 'pay slip component', which was enhanced to 9.5 per cent after the Unions gave a strike notice and the Central Labour Commissioner intervened to avert the strike.

In the next round of discussion on January 27, the IBA improved the offer from 9.5 per cent to 10 per cent, which was considered ínsultingly inadequate' and we rejected the offer.

The last salary revision for PSB officers was 17.5 per cent of establishment cost, which after factoring for superannuation costs and non-salary components of establishment cost left 11.43 per cent for appropriation towards pay-slip increase. Since establishment costs have soared, the average pay slip increase was 21.52 per cent.

"Inflationary pressures coupled with the erosion in purchasing power, is adding to our woes. We deserve adequate compensation, an increase which is more than the offer made during the last salary revision on pay slip cost. Only such an increase would help reduce the pay slip difference of PSB officers vis-a-vis Government officers, he said, seeking pay parity with Government officers.

Source:Business Line