‘PRIVATISATION NOT THE SOLUTION FOR BANKS’ PROBLEMS’

‘PRIVATISATION NOT THE SOLUTION FOR BANKS’ PROBLEMS’

Interview with Thomas Franco, senior vice-president of the All India Bank Officers’ Confederation. By PURNIMA S. TRIPATHI - FRONTLINE
“AS far as public sector banks are concerned, the government’s attitude is like calling the dog mad and then shooting it. If there are problems of unprofitability and NPAs in PSBs, it is of the government’s own making. How can they make that an excuse to privatise us?” asks Thomas Franco, senior vice-president of the All India Bank Officers’ Confederation. Franco, who is also the general secretary of the SBI Officers’ Association, spoke to Frontline on the problems facing public sector banks and how the government is slowly pushing them towards privatisation. Excerpts:
Why, in your view, is the government pushing public sector banks towards privatisation?
As far as the government is concerned, whether it was the UPA earlier or the NDA, its agenda has been the same: privatise public sector banks. The UPA had set up a committee under P.J. Nayak to suggest reforms in public sector banks in January 2014. The main thrust of its recommendations was privatisation of PSBs. The report was put in cold storage because of the general elections, only to be resurrected by the Modi government. The Modi government not only endorsed the Nayak Committee report fully, but announced measures to implement the recommendations. In his Budget speech last year, Finance Minister Arun Jaitley announced that the Banking Boards Bureau would start functioning from April 2016 and this bureau would eventually be converted into the Banking Investment Company as per the Nayak Committee recommendations. Eventually, the government’s shares in PSBs would be brought down to 40 per cent and transferred to this company, which will have the sole power to regulate or control banks.
Once this happens, the other recommendations, such as reducing priority sector lending or making it profitable, cutting down on unprofitable banking activities such as investing in infrastructure projects or lending to small and medium entrepreneurs, will automatically follow. This would totally defeat the idea of inclusive banking as it is practised now and was the guiding principle at the time of nationalisation [of banks]. Besides, if we look at the government’s record, in 2000 too the then NDA government tried to reduce the government’s share in PSBs but dropped the idea because of our opposition and the Left parties’ support to our cause. This time, since they have the numbers in the Lok Sabha, we are afraid they might push through their agenda.
Why is there so much opposition to privatisation of banks? After all, the second largest bank in the country, ICICI, is in the private sector.
We must not forget the past history of private sector banks. Before 1969, all banks, except the SBI, were in the private sector. Between 1947 and 1969, 559 banks failed. A huge number of people lost their life’s earnings. The common man had no access to banks then, and the banks’ rural presence was nil. Bank nationalisation took place to make the shift from class banking to mass banking, and make inroads into rural areas. The lopsided banking was visible in the fact that in 1969 over 40 per cent of our GDP was coming from agriculture, but total loans to the agriculture sector was only 0.2 per cent. Capital was under the control of a minuscule percentage of the population.
Even after nationalisation, private sector banks continued to fail. One of the most prominent examples was the high-profile Global Trust Bank, whose chairman, Ramesh Jolly, was awarded the Banker of the Year award, and the very next year his bank posted a loss of Rs.1,100 crore. GTB was eventually merged with Oriental Bank of Commerce in 2003. Between 1969 and 2014, 23 private sector banks were merged with public sector banks for not working well. In this backdrop, we have to see the performance of PSBs, which have not only survived the major global economic crisis but also shared the government’s social agenda like the farm loan waiver, the Jan Dhan Yojana, priority sector lending and lending to small and medium enterprises. These are all activities which bring our profitability under pressure, and the private sector banks have almost nil presence here. They don’t share the government’s social responsibilities. Even in matters of recruitment, they don’t follow the government’s reservation policy or don’t show any enthusiasm in giving education loans to needy students. Thus, we can see that privatisation is not the solution for problems facing PSBs. The solution lies in making the public sector more robust, not pawning it in the hands of a few powerful individuals.
How do you plan to oppose the government if it is determined to privatise PSBs?
We have joined hands with other PSU organisations and floated the National Platform of Public Sector Officers’ Organisation. This has representation from banks, power engineers, telecom and insurance. The Railways too will join soon. We are planning a nationwide campaign to create public awareness. We will do it through street plays, short films and documentaries and so on. We also plan to organise alternative Gyan Sangams to educate people on the tremendous contribution of PSUs to nation building. The All India Bank Officers’ Confederation president, Y. Sudarshan, will inaugurate the national campaign on January 26 in Chennai. Our campaign will be called “Save PSUs”. The campaign will run in Chennai for 45 days, and then we will travel to other parts of the country.
We need to tell the people why it is necessary to save the public sector; why concentration of wealth in the hands of a few powerful individuals is not good for the common people; why we should learn from the experiences in Japan, Korea and the U.S.; why we need to heed the earlier warnings by the RBI, which said in 2010 that private sector ignored SMEs [small and medium enterprises], agriculture, education and export.

by 

Ponnarasu Sundararaj

Govt may infuse more than Rs 70,000 cr into public sector banks

The Finance Ministry is considering infusing more than the announced Rs 70,000 crore in public sector banks to help strengthen their balance sheets.

"We are assessing the capital requirement position of each bank depending on their bad loans and, if need be, we may have to expand the capital infusion programme," said a ministry official.

An announcement to this effect could be made next month by Finance Minister Arun Jaitley in the Budget 2016-17 if the government decides to expand the capital infusion programme, sources said, adding that the plan is at a preliminary stage and no decision has been taken so far.

What has made things difficult for the cash-starved public sector banks is a bearish market which has scuttled their fund-raising plans this year.

The ministry has already sought business plans and capital requirements from some of them and others will be called in during the course of the year.

The government last year announced a revamp plan, 'Indradhanush ', to infuse Rs 70,000 crore in state-owned banks over four years, while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirements in line with global risk norms Basel III.

As per the capital infusion road map, PSU banks will get Rs 25,000 crore this fiscal and as well as the next fiscal and Rs 10,000 crore each in 2017-18 and 2018-19.

Out of Rs 25,000 crore set for the current fiscal, the government has infused about Rs 20,088 crore in 13 public sector banks.

The rest of the amount is expected to be infused this quarter after the passage of third supplementary demands for grants likely next month.

The fund infusion this quarter will be based on banks registering improvement in terms NPA, stressed asset and in terms of their restructuring.

"Interest in equity market has dwindled. We are seeing low retail participation and also foreign investors are not very keen. In such a scenario, raising money from market is not a good idea. We need support from the government," a senior public sector banker told PTI.

Recently, chairman of the largest lender SBI, Arundhati Bhattacharya had expressed scepticism about launching the proposed Rs 12,000-crore follow-on public offer plan this year.

"At this point of time, I don't think we have any clear plans to go to the market with a QIP issue. I don't think it will happen this year, but then let's see," she had said last week.

RBI has taken a very strong position on stressed asset, saying lenders must come out with a programme of liquidating some of the debt.

Last month, Reserve Bank of India Governor Raghuram Rajan had said steps taken by the central bank and the government should help lenders clean up their balance sheets by March 2017. 

New Promotion Policy In Bank

Suggestion On Promotion Policy In Bank

Sub:-New Promotion Policy

– Amendments Proposed By Some Of Officer's Association.
Suggestions are:
1. Normal Track (65-55%) & Fast Track (35-45%) 

2. Changes in percentage of weightage. 

3. Increase in Educational Qualification marks. 

4. Increase in Job Responsibility Marks with addition of marks for Deputy Branch Manager/Accountant/Deputy Regional Head.  

5. Career Path restriction liberalized for specialist officers. 

6. To reduce debar period in case of Refusal to accept promotion. 

7. 75% average marks in appraisal for last 5 years. 8. Federation has also requested the Top management to decide cut-off date in such a manner that maximum aspirants can apply for promotion. 

I request you all to submit your valued suggestion on above point or suggest best ways to make promotion policy more appropriate and justified . Please Give your valued suggestion on how  to stop misuse of power by higher bosses. Please give suggestion on how to stop culture of flattery and bribery. 

In my opinion, there is no need of having two tracks namely normal and fast track. Both of them have provision for interview . Any officer can be rejected in interview even if he or she  has all talent and on the other hand a bad officer who is yesman and flatterer of higher bosses can be selected for promotion. There is no check point to stop such misuse of power by higher bosses. 

It is not uncommon in India that a powerful person misuse his power to give favour to kith and kin of his caste or his community or his region or his religion. Selection of an officer depends largely on perception and conception of  higher bosses who carry out and who plays lead role  in promotion processes.

Similarly change in marks for various parameters such as educational qualification and  job responsibility become insignificant and ineffective when an appraiser with biased mind or corrupt mind give less marks to a talented and good performing  officer in AAPR or gives less marks in Interview. 

Role of 5 to 10 marks in educational qualification or 10 to 15 marks in job responsibility are negligible as compared to marks in AAPR and Interview. After lapse of  ten to twenty years , an officer with job  responsibility or with no job responsibility earn almost equal marks and hence become ineffective.

Interview Be Abolished for Promotion in Bank

System of Annual Appraisal System is such in bank

which neither appraise understand,

nor assessing authority or reviewing authority understand.

As such AAPR has also become useless exercise in practice.

Central employees entitled to get 125% Dearness Allowance from 01.01.2016

Central employees entitled to get 125% Dearness Allowance from 01.01.2016

The Seventh Pay Commission headed justice A K Mathur has correctly predicted the dearness allowance (DA) hike to 125 per cent from the existing 119 per cent since January 2016.
The much awaited All India Consumer Price Index (Industrial Workers) for the month of December 2015 has been released by Govt. It has decreased by one point from 269 from 270 which was recorded in the month of November 2015.

This confirms that DA from January 2016 will be 125% which was estimated by 7th Pay Commission.

Consequently, no correction or change in 7th pay commission fitment formula / multiplication factor of 2.57, will be needed now with respect to DA factor is concerned.

Bank Union Demand All Saturdays Off

Bank Union Demand All Saturdays Off

News In Hindu Business Line says

The need for bank holiday on all Saturdays must be stressed at the next bipartite settlement with the Indian Banks’ Association (IBA), said the leader of a leading bank union.
Sri Y Sudarshan, president of the All-India Bank Officers’ Confederation (AIBOC), said that the 10th bipartite settlement helped bank employees get holidays on second and fourth Saturdays of every month. In the next bipartite settlement, if the unions could get all Saturdays to be declared a holiday for banks, it will be a big achievement.


Taking exception to the process of banks calling its officers to work on Sundays and other holidays, he said this matter has been brought to the notice of the IBA but the issue is yet to be resolved. "Even bank officers need time to spend with their families," he added.

Stating that there is pressure on public sector banks to cross-sell other products, he said bank unions have to oppose this. "Our own deposits are being converted into mutual funds and insurance products. This is a major threat to the banking industry," he emphasised.

Speaking on the occasion, Prabhat Patnaik, professor emeritus of Jawaharlal Nehru University, said that the Green Revolution would not have possible in the country if there was no nationalisation of banks then. There was increase in credit to agriculture sector following nationalisation of banks, he said. Opposing any move to privatise public sector banks, Patnaik said it will an irony if that is done. 

DA FOR BANK EMPLOYEES FOR FEBRUARY 2016 FINALISED

DA From Fab 2016

DEARNESS ALLOWANCE
THERE IS A HIKE OF 28 SLABS OF DA W.E.F.FEB.2016
NOW TOTAL DA SLABS ARE 4267 (42.6%)...
FOR RETIREES DA SLABS ARE NOW 828 SLABS,
HIKE OF 62 SLABS W.E.F. FEB 2016

DA FOR BANK EMPLOYEES FOR FEBRUARY 2016 FINALISED

Surprise, CPI(IW) for December 2016 has decreased by 1 point and stood at 269.

The Data for the past three months is as follows...

Oct-15 – 269

Nov-15 – 270

Dec-15 – 269

So there is an increase of 28 slabs of DA or 2.8% of basic and special pay for all the Bank Employees

ICICI Bank Sees More Pain Ahead After Q3 Bad Loan Surge

 ICICI Bank Ltd, India's biggest private sector lender by assets, saw its bad loans surge in the December quarter on a central bank order to reclassify some troubled loan accounts, and predicted sour assets will rise further this quarter.

The lender, which is also listed in New York, reported on Thursday its standalone net profit in its fiscal third quarter to December 31 rose 4.5 per cent from a year earlier to Rs 3,018 crore ($443 million), in line with analysts' estimates of Rs 3,017 crore on average.

The profit was helped by tax adjustments.

Indian banks have seen a surge in their bad and restructured loans in the past three years as an economic slowdown squeezed companies' profitability and their ability to service debt.

As the regulator, the Reserve Bank of India (RBI), embarks on a drive to clean up bank balance sheets by March 2017, it has asked lenders to treat some stressed borrowers as non-performing even if they have not defaulted yet.

The RBI has yet to talk specifically about the direction, but bankers say they have been asked to downgrade the accounts by March.

About 60 per cent of ICICI Bank's bad loan additions of Rs 6,544 crore in the December quarter were due to the RBI directive on asset reclassification, chief executive Chanda Kochhar said on a conference call after the results.

"You could assume a similar trend overall as this quarter," she said when asked about the quantum of bad loans and provisioning in the fourth quarter to March.

Ms Kochhar cited steel and power as troubled sectors, without naming any companies.

ICICI Bank's bad loans as a percentage of total loans widened to 4.72 per cent in the December quarter, from 3.77 per cent in the previous three months. Provisions, including for loan losses, tripled to Rs 2,844 crore.

Third-biggest private sector lender Axis Bank last week reported rise in bad loans due to the RBI move, but the second-largest HDFC bank, which has relatively less exposure to the troubled sectors, saw little impact.

The dominant state-run lenders, led by State Bank of India, have yet to report December quarter earnings.

ICICI Bank's domestic loans at end-December grew 20 per cent from a year earlier, helped by a faster 24 per cent increase in retail loans. Net interest income in the quarter rose 13 per cent from a year earlier, while non-interest income grew 36 per cent.

Empowered committee formed to process 7th Pay Commission report

Empowered committee formed to process 7th Pay Commission report

Govt. yesterday formed an empowered committee to scree the recommendation of pay commission with different stakeholders and place the final recommendation before cabinet for approval. The committee headed by Cabinet Secy., has 12 other Secy.s as members.
In this exercise, different department/ministries and associations can submit their views for necessary consideration. No time frame has been set for the report of the committee.

Appointment Of Executive Directors For Public Sector banks

The Appointments Committee of the Cabinet (ACC) has approved the proposal of the Department of Financial Services for appointment of ten General Managers as Executive Directors in the banks mentioned against their names.

 Mayank K Mehta, General Manager at Union Bank of India has been appointed as Executive Director in Bank of Baroda

Dina Bandhu Mohapatra, General Manager at Bank of India has been posted at Canara Bank.

Vinod Kumar Kathuria and R. Subramania Kumar, both GMs at Punjab National Bank have been appointed as ED at Union Bank of India and Indian Bank 

A S Rajeev (Vijaya Bank) has been appointed as another ED at Indian Bank.

Nageswara Rao Y (Vijaya Bank) has been promoted to ED in the same bank.

Rajkiran Rai G (Central Bank of India) has been appointed as ED, Oriental Bank of Commerce

Ramesh S Singh (Central Bank of India) has been appointed as ED, Dena Bank.

G Subramania lyer (Canara Bank) will move to UCO Bank from February 1

Complaint to Prime Minister for 11th BP of BANK Employee

Complaint to Prime Minister
Status as on 26 Jan 2016
Registration Number : PMOPG/E/2016/0026893
Name Of Complainant : Anil Oberoi
Date of Receipt : 26 Jan 2016
Received by : Prime Ministers Office
Officer name : Shri Ambuj Sharma
Officer Designation : Under Secretary (Public)
Contact Address : Public Wing
5th Floor, Rail Bhawan
New Delhi110011
Contact Number : 011-23386447
e-mail : ambuj.sharma38@nic.in
Grievance Description : Honourable Prime Minister, The
Department of Financial services, Ministry of Finance has
given instructions vide their letter F. No. 4/2/2/2015-IR
dated 12-01-2016 to Chief Executive of Public Sector Banks
and IBA to initiate and conclude the process for next wage
revision of bank employees prior to effective date of
01-11-2017 which are illegal as under as per section 19 of
Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 (in short, BCATU Act,1970):- 1.
BCATU Act, 1970 is parental act in banking industries who’s
Section 19 has conferred the powers to board of Directors of
respective nationalised bank to frame rules and regulations.
2. The wages are also defined as Service Regulation in
bank. 3. The relevant extract of definition of section 19 of
BCATU Act, 1970 is reproduced hereunder for ready
perusal:- “19. Power to make regulations. (1) The Board of
Directors of a corresponding new bank may, after
consultation with the Reserve Bank and with the previous
sanction of the Central Government by notification in the
Official Gazette make regulations, not inconsistent with the
provisions of this Act or any scheme made there under, to
provide for all matters for which provision is expedient for
the purpose of giving effect to the provisions of this Act. (2)
--- (3) --- (4) Every regulation shall, as soon as may be after
it is made under this Act by the Board of Directors of a
corresponding new bank, be forwarded to the Central
Government and that government shall cause a copy of the
same to be laid before each House of Parliament,-------” 4.
Section 19 of BCATU Act, 1970 does not authorize IBA to
act in any manner for any wage settlement for bank
employees and also does not permit IBA for existing
practice of entering into a written agreement with various
association/union of officers and workmen employees for
wage settlement. 5. The kind attention of Honourable Prime
Minister is invited to the information provided under RTI Act,
2005 by Ministry of Finance vide their letter no. F.no.15/88/
2010-IR dated 01-11-2010 which is attached herewith vide
which it has been informed that IBA is neither constituted
under any act nor Public Authority nor any registered body
under Society act nor any trust nor company under section
25. It is also informed vide aforesaid letter under RTI that
IBA is association of member banks and member banks
contribute the expenses of IBA. Thus head of member
banks are accountable to explain the authority who
permitted them to utilize the public money for IBA. 6. In view
of these facts, IBA cannot be above nationalised banks who
are public authority and are classified as ‘State’ under
Constitution of India. 7. RBI, who is authorised body under
section 19 of BCATU Act, 1970 may kindly be instructed to
constitute a committee/commission for wage settlement for
bank employees at the pattern of Pay Commission for CCS
employees’. Honourable Prime Minister is kindly requested
to instruct the Department of Financial Services, Ministry of
Finance for (1) Stop the illegal interference of IBA for coming
XI Wage Settlement for bank employee (2) Instruct RBI to
constitute a committee/Commission for wage settlement of
bank employee (3) To look into that how IBA could interfered
in past for wage Settlement in excess of their jurisdiction (4)
To examine the role of head of all public sector banks in
utilising the public money for IBA (5) The existence of IBA
has no legal sanctity and required to be scrapped. With
profound regards, Yours faithful

You will be eligible to claim some more tax deductions for financial year 2015-16 please read

You will be eligible to claim some more tax deductions for financial year 2015-16. Here is a quick update of the revised limit under various Income Tax sections that you must remember to claim this year.

1. Deduction limit on your medical insurance premium paid for self, children and spouse under Section 80D of Income Tax Act has been increased to Rs 25,000 per annum from earlier Rs 15,000 per annum. One can also claim a deduction of up to Rs 30,000 for medical insurance premium paid for parents against Rs 20,000 earlier. In case of senior citizen, the limit has been revised to Rs 30,000 per annum from earlier limit of Rs 20,000.

2. This year, you can claim an additional deduction of Rs 50,000 towards contribution made to New Pension Scheme (NPS) under Section 80CCD (1B) of Income Tax Act. This is apart from Rs 1.5 lakh deduction available under Section 80C. Now, the combined deduction under Section 80C and 80CCD (1B) is Rs 2 lakh.

3. You can also claim a deduction of Rs 75,000 per annum under Section 80DD on the medical expenses incurred on a dependent relative with disability (more than 40 per cent but less than 80 per cent) this year against Rs 50,000 per annum till last year. In case of severe disability (more than 80 per cent), you can claim Rs 1.25 lakh per annum instead of Rs 1 lakh per annum earlier, irrespective of the amount you incurred during the financial year. While claiming the deductions you will have to furnish a certificate from medical authorities.

4. Also, the deduction limit under Section 80DDB for expenditure incurred on specific diseases such as Dementia, malignanat cancers, AIDS and chronic renal failure has been increased to Rs 80,000 per annum from Rs 60,000 per annum in case of very senior citizen. You can claim up to Rs 80,000 or the amount actually spent whichever is lower.

5. In case of a person with disability, the deduction limit under Section 80U has been increased to Rs 75,000 for this year against the earlier limit of Rs 50,000. In case of severe disability the limit has been increased to Rs 1.25 lakh from earlier limit of Rs 1 lakh. This is applicable where the tax payer himself suffers from a disability.

6. You can claim a deduction of up to Rs 1,600 per month towards transport allowance provided by your employer to you. Till last year the limit was Rs 800 per month. Also, if the person is blind or orthopedically handicapped with disability of lower extremities, he or she can claim a deduction of up to Rs 3,200 per month against earlier limit of 16,00 per month.

Why Bankers Not Need Bipartite Settlement

Why Bankers Not Need Bipartite Settlement

Why do I bat for a separate Pay Commission for Bank Staff? -By Pannvalan

I am surprised to see some persons who still argue for the necessity of continuing the Bipartite Negotiation mechanism in banks, for improvement in wages, other benefits and the existing service conditions of staff. 

The basic premises of such people are totally wrong. They have some imaginary fears about the composition, functions and limitations of a Pay Commission. They have a negative impression about the Commission and nurture a suspicion about its usefulness and effectiveness. They openly argue that a Pay Commission cannot satisfy the aspirations of the beneficiaries to the maximum possible extent. 

To allay their fears and disprove their suspicions, I present my detailed views here. 
A Pay Commission is usually headed by a retired justice of the Supreme Court/High Court. He is assisted by some eminent persons of immaculate calibre, with long experience and proven capabilities. They are from diverse backgrounds like Finance, HRD, Labour, Law, Accountancy, Secretarial Practice and the one relating to the field of the intended beneficiaries. Ideal size of the Commission will be 5 and it may go up to 7. 

Unlike in the bipartite negotiation process, suggestions and proposals are openly invited from all, through the official website of the Commission, as soon as it is constituted and it starts functioning. Individuals can send their submissions directly to the Commission, through post and also in person. All submissions must be in writing. Such submissions may be in the form of a well drafted ‘Charter of Demands’ or simple views and proposals. If reasoning is also adduced alongside these proposals, they will carry more weight and have the prospect of being considered favourably.

Any individual or a group of individuals or a registered association of staff or the federation of multiple unions are permitted to submit their demands, views and proposals to the commission directly. It is very important that the identity of such individuals/groups is properly established, beyond any doubt. Their contact particulars like name, occupation/designation, full address, phone numbers, email ID etc. are furnished by them in all their communication. 

If necessary, the individuals concerned or the representatives of the groups/associations/ federation are invited to depose before the Commission and present their submission in person, with supporting documents. They shall go prepared to answer the queries, if any, from the members of the Commission. Though it is not like a court like atmosphere, everything is recorded and the full text of the proceedings is signed by all concerned at the end of every day. 

People who meet the Commission members need not have any fear or inhibition. They can talk freely, of course within the boundaries. Everything takes place in an open, democratic atmosphere. 

The whole exercise is so simple, easy and transparent from the beginning to the end that nobody can find fault with. 

One more beauty of the process is, the same person/group can send as many proposals as they like, provided each of them is supplementary to their other submissions and are not inconsistent and self-contradictory. Nobody is denied a second opportunity. 

Every Pay Commission has a fixed tenure and it has to submit is report, with its detailed observations and recommendations within this time limit. This is a very important feature of this process. 

Occasionally, an interim report is submitted by the Commission, if the process of preparing its final report takes a longer time than anticipated. If deemed necessary, extension of the Commission’s tenure is also sought and allowed. 

If you want to know more about this, go through the voluminous reports of various pay commissions at the centre and in states. They are accompanied by a good number of exhibits and documentary evidences. Even in banking industry, you can go through the Sastry Award and Desai Award reports in full. 

These reports are prepared with due diligence and extreme care, after going through a lot of inputs patiently and methodologically. Thus, the exercise is totally professional and scientific.

Besides the beneficiaries in service, the retired personnel are also encouraged to present their demands and views to the Commission. This provision is absent in the Bipartite Negotiation process. In the aftermath of introduction of pension in banks, the necessity of presenting an opportunity to the retired personnel is felt more, especially in the matters affecting their interests. 

It is true that the final findings and recommendations of the Commission may not give 100% satisfaction to all. However, they will be the best possible in the prevailing circumstances. 

Central staff demand minimum pay as Rs 26000

Central staff demand minimum pay as Rs 26000

New Delhi: Implementing the recommendations of the 7th Central Pay Commission( 7th CPC) is not going to be acakewalk for the government.

The brewing discontent amongst the central government employees is threatening to create a storm and disrupt the implementation process. The unions are asking around 44 percent hike on the basic minimum pay suggested by the 7th Central Pay Commission.

The 7thCPC had recommended the minimum pay at Rs 18,000 and the maximum pay at Rs 250,000, but theemployee unions wants the minimum pay to be hikes from Rs 18,000 per month to Rs 26,000--a rise of around 44.4 percent.

The unions are claiming that the pay panel has recommended the lowest hike in basic pay since independence

Union Bank of India, Syndicate Bank and Oriental Bank of Commerce suggested branch swap by govt.

Ministry of Finance has suggested branch swaps for state-run banks as a possible measure to bring down costs and improve operational efficiency. CNBC-TV18 learns that three large lenders are currently mulling such swaps including Union Bank of India, Syndicate Bank and Oriental Bank of Commerce.

Many public banks have a concentration of branches in some pockets, and are weaker in other areas where another bank may have a larger concentration. In such a case, the idea is to get them to redeploy branches to bring down costs and avoid duplication of efforts, such that the swap is mutually beneficial.

In this case, Union Bank, for instance, is eyeing more branches in Punjab, Haryana and Gujarat and has excess branches in East UP and Kerala, which it may give up.

Similarly, Syndicate Bank requires more branches in UP and may give up branches in southern India. OBC has a stronger presence in Northern India, and may swap them for more branches in the southern region.

Sources have told CNBC-TV18 that these branch swap talks are at a very early stage of discussion and are currently being discussed internally as one of the possible steps to reduce costs. The final plans for branch swaps may only be finalised in the coming months. Each of the banks will be looking for similar size of business from each branch such that there is no loss in swapping.

Emailed queries from CNBC-TV18 to Union Bank, OBC and Syndicate Bank remained answered.

MBAs, BTechs among 19,000 UP applicants for 114 sweepers' jobs

When the municipality here advertised for 114 posts of 'safai karamchari' (sweepers), it had hardly imagined that 19,000 applications, mostly from BA, BSc, MA, BTechs and MBAs would come in. While officials of Amroha Nagar Palika are expecting yet more applications, the state government has ordered the selection process to be put on hold as organizations representing sweepers have protested, demanding the posts be reserved only for the valmiki community.

While no educational qualifications are required for the posts, municipal officials have been overwhelmed by the number of highly-qualified applicants so far. "The process of uploading application forms for all 114 posts is still going on and we have uploaded 5,000 of the 19,000 received. Most are graduates, postgraduates, BTechs and even MBAs," said Faiz Alam, Amroha Nagar Palika office superintendent, talking to TOI.

The posts do not require educational qualifications because the work involves manual labour like cleaning streets with brooms, maintaining drainage and municipal sewer lines. Candidates will be informed about the interview stage. The salary for each post is Rs 17,000 per month.

 Modi Ji ka Achche DIN aa gaya

Over 80 per cent engineering graduates in India unemployable

There seems to be a significant skill gap in the country as 80 per cent of the engineering graduates are "unemployable", says a report, highlighting the need for an upgraded education and training system.

Educational institutions train millions of youngsters but corporates often complain that they do not get the necessary skill and talent required for a job.

According to Aspiring Minds National Employability Report, which is based on a study of more than 1,50,000 engineering students who graduated in 2015 from over 650 colleges, 80 per cent of the them are unemployable.

"Engineering has become the de-facto graduate degree for a large chunk of students today. However, along with improving the education standards, it is quintessential that we evolve our undergraduate programmes to make them more job centric," Aspiring Minds CTO Varun Aggarwal .. 

In terms of cities, Delhi continues to produce the highest number of employable engineers followed by Bengaluru and the western parts of the country, the report said.

Kerala and Odisha entered the top 25 percentile list of most employable states while Punjab and Uttarakhand dropped to the 2nd and 3rd quartile, it added.

The study of employability by gender reveals a healthy trend, almost equal amongst males and females. This makes each role devoid of any gender-bias.

 .. 
However, roles like sales engineer non-IT, associate ITeS or BPO and content developer report slightly higher employability of females, it said.

Interestingly, the report said that unlike popular notion, tier-III cities too produce a share of employable engineers and should not be neglected from a recruitment perspective.

These candidates could also possibly fill the entry-level hiring needs of several IT services companies," it said.