DA for banker from. November 2017 increases 38 slab i.e 3.8%

Govt has constituted a panel headed by Arun Jaitley with railway minister piyush Goel that will oversee Merger proposals of PSU Banks

Moving ahead with reforms in the public sector banking space, the government has constituted a ministerial panel headed by Finance Minister Arun Jaitley that will oversee merger proposals of state-owned banks.

The other members of the panel include Railway and Coal Minister Piyush Goyal and Defence Minister Nirmala Sitharaman.

“Govt walks the talk on banking reforms; constitutes Alternative Mechanism for PSBs consolidation; Finance Minister to head,” Financial Services Secretary Rajiv Kumar said in a tweet.

While announcing the unprecedented Rs 2.11 lakh crore capital infusion roadmap for the public sector banks last week, Jaitley had said, this will be accompanied by series of banking reforms over next few months.

The constitution of Alternative Mechanism (AM) is a movement in that direction.

The Union Cabinet in August had decided to set up an Alternative Mechanism to fast track consolidation among public sector banks to create strong lenders.

The move to create large banks aims at meeting the credit needs of the growing Indian economy and building capacity in the PSB space to raise resources without dependence on the state exchequer.

The AM will oversee the proposals coming from boards of PSBs for consolidation.

The decision to set up the AM follows State Bank of India merging its five associate banks, as also the Bharatiya Mahila Bank, with itself.

Central Bank of India Q2 loss widens, net NPAs jump to 9%

Public sector Central Bank of India today reported widening of its net loss at Rs. 750.41 crore for the July-September quarter of this fiscal due to higher provisioning for the bad loans.

The bank had reported a net loss of Rs. 641.82 crore in the corresponding quarter of the 2016 -17 fiscal.

The bank’s gross non-performing assets (NPAs) jumped to 17.27 per cent of gross loans by September 30, 2017.The gross NPAs were 13.70 per cent of the gross loans at the end of the same quarter a year earlier.

Likewise, net NPAs or bad loans jumped to 9.53 per cent as on September 30, 2017 from 8.17 per cent a year ago, it said in a regulatory filing. In absolute terms, gross NPAs were of the order of Rs. 31,641.15 crore as on September-end, up from Rs.25,717.95 crore a year ago.Net NPAs were valued at Rs. 15,899.74 crore, up from Rs. 14,352.64 crore during these comparable periods.

This resulted into a higher allocation in provision and contingencies at Rs. 1,961.66 crore for second quarter of 2017-18 from Rs. 1,661.21 crore a year ago.

In respect of nine accounts under provisions of Insolvency and Bankruptcy Code (IBC), the bank said it was required to make an additional provision of Rs. 961 crore, proportionated over three quarters beginning from second quarter of this year so as to cover it fully by March 2018.

“The additional provision of Rs. 459 crore has since been made during the quarter leaving a balance provision of Rs. 502 crore...by March 2018,” it added.

Total income of the bank during the July—September quarter of the current fiscal fell to Rs. 6,896.26 crore as against Rs. 6,965.45 crore in the similar quarter of previous fiscal, showed the balance sheet.

DA for banker from November 2017 only 36 slab increased

DA increased by 36 Slabs  i.e. 3.860% increase  on Basic , Spl Pay and allowances w.e.f. November, 2017.  

Total Slabs - 514 i.e., 51.40% 

Total DA will be 47.80% + 3.60% = 51.40%

A Year Since Note Ban, RBI Says Still Verifying Returned Notes say RBI

Nearly a year after Prime Minister Narendra Modi announced demonetisation, the Rs. 500 and Rs. 1,000 bills returned to banks are still being "processed in all earnest" through a sophisticated currency verification system, the RBI has said.

In reply to an RTI query, the central bank said it has processed about 1,134 crore pieces of Rs.500 notes and 524.90 crore pieces of Rs. 1,000 junked notes, having face value of Rs. 5.67 lakh crore and Rs. 5.24 lakh crore respectively, as on September 30.

The combined value of the processed notes is Rs. 10.91 lakh crore approximately, according to the reply. "Specified Bank Notes are being processed in all earnest in double shift on all available machines (sophisticated counting machines)," the Reserve Bank of India (RBI) said in reply to the RTI query filed by a PTI correspondent. 

The central bank was asked to provide details of demonetised notes counted so far.
Replying to a question on providing the deadline for completing the counting exercise, it said, "The verification of notes withdrawn from the circulation is an ongoing process".

The RBI said at least 66 Sophisticated Currency Verification and Processing (CVPS) machines were being used for counting of junked Rs. 500 and Rs. 1,000 notes that were deposited with various banks post demonetisation. The government had on November 8 last year banned the use of old Rs. 500 and Rs. 1,000 notes and allowed the holders of these currency bills to deposit them with banks or use them at certain notified utilities.

The notes deposited or collected are being verified by the central bank at its offices to establish the total number of currency bills returned and to weed out those that are fake.

Several opposition parties including the Congress and Mamata Banerjee's TMC have announced that they would observe November 8, the first anniversary of demonetisation, as 'Black Day' and would hold protests across the country to highlight its "ill-effects" on the economy.

To counter the opposition protest, the ruling BJP has decided to observe the note ban anniversary as "anti-blackmoney day". In its annual report for 2016-17 released on August 30, the RBI had said Rs. 15.28 lakh crore, or 99 per cent of the demonetised Rs. 500 and Rs. 1,000 notes, have returned to the banking system.

In the annual report, which was for the year ended June 30, 2017, the central bank said only Rs. 16,050 crore out of the Rs. 15.44 lakh crore in old high-denomination notes have not returned.
As on November 8, 2016, there were 1,716.5 crore pieces of Rs. 500 and 685.8 crore pieces of Rs. 1,000 notes in circulation, totalling Rs. 15.44 lakh crore, it had said.

"Subject to future corrections based on verification process when completed, the estimated value of specified bank notes received as on June 30, 2017, is Rs. 15.28 trillion," RBI had said in the report.
While the counterfeit currency notes made for a minuscule number, RBI post-demonetisation spent Rs. 7,965 crore on printing new Rs. 500 and Rs. 2,000 bills and notes of other denominations, more than double the Rs. 3,421 crore spent in the previous year, it said.

Why There is a Need for Updation of Pension for Bankers At the time of Every Settlement

Without updating in pension, the pre 2002 retirees are getting reduced pension because of a) non-revision of their basic pension and b) no provision for 100% neutralization in their case. Thus the loss for them is for two reasons. For the recent two categories (8th and 9th bipartite), the loss is due to non-revision of their basic pension only. The older categories are drawing nominal pension, which also need immediate attention.  Denial of pension itself to certain categories of retirees (resignees, regular voluntary retirements etc.) also needs immediate corrective steps so that they also made eligible for pension.

No updating of pension for bank pensioners is like no periodical salary/pay-scale revision for a serving bank employee.  The latter is at least getting periodical increments in his scale, up-to the last stagnation increment, unlike a pensioner. He is also eligible for a promotion to a higher grade.

The formula of updating should be such that all the existing pensioners will get D.A. under a uniform formula (of course with 100% neutralization). Calculation of D.A. then will be by multiplying the basic pension with a certain percentage as in the case of recent pensioners.  Pensioners retired long back should also get the benefit of revision of their basic pension, and consequent upward revision in gross pension as and when pay-scales of employees in service revise periodically. Of course, they will not get further commutation arrears because of rise in their basic pension, nor they will get proportional benefit due to increase in number of stagnation increment to employees in service.

These are my expectations and benefits to be enjoyed in future. In that case any improvement in the pay-scales of the Bank Employees in the Bipartite Settlements will be of more interest to the pensioners, due to the consequent benefit to them also. For this concerted efforts by the pensioners, employees in service, union leaders, co-operation of the management of banks, support of Government, judiciary, etc.  are needed. Let our dream come true!

Updation of pension demand requires immediate attention of the Leaders as denial of the same hitherto has dis-united the retired staff into Pre-2002 and post 2002. The pre-2002 retired pensioners are paid every month lesser DA. Higher the basic pension Lesser the DA % increase resulting in monthly loss of 1000-3300. Before starting the Bipartite Talks, Unions should sincerely take efforts to abolish this  GROSS INJUSTICE to the senior citizen retirees.

After the introduction of the New Contributory Defined Pension from 2006, Central Gov't has nowhere permitted the OLD central pension scheme except in Banking Sector in April 2010 benefiting nearly 250000 PF Optees. Leaders achieved the un-achievable albeit with huge monetary sacrifice. When they could achieve this FEAT of one more option involving Rs4800crores additional burden every year, can't they get JUSTICE to the Pre-2002 retired pensioners by restoring to them 100%DA neutralization (the same percentage enjoyed by those who retired after 1/5/2005) which involves monthly cost of Rs2-5crores per Bank? What they ask for is not NEW or Additional Benefit. It is restoration of their rightful share of pension illegally denied for more than 10 years.

Updation/revision of pension and other pensionary matters can be taken up with Bipartite Talks.

May I expect our Leaders to fulfill the expectations of 1 lakh pre-2002 retired pensioners!

 

In central Govt this is done automatically and salary is revised. There is no specific wording in each salary revision agreements.

This should be done automatically in our case also. If you ask for specific clause tomoroow they may say there is no clause to revise DA etc.

This should be taken in residual issues itself.

 we, senior citizens who retired from different banks in the country after putting in meritorious service as officers for upto four decades, submit the following memorandum for your kind perusal and necessary action.

2. When an officer retires from a bank, the pension payable to him is fixed at the half the basic pay drawn by him. This is his basic pension for life. It is never revised upwards. In other sectors like the government and public sector corporations, the position is quite different: the basic pension is revised as and when the salary and allowances of those in service are revised.

3. As a result, we have a situation where there is a huge gap between the pension received by retirees of yester-years and those retiring now. Our point can be best illustrated by the following example:

An officer who retires from a bank in the juniormost rung of officers today will get a minimum of Rs 12,850 as basic pension. Compare this with the pension of an officer who retired in 1986 as the Chairman of a bank: it is a mere Rs 3,500, the level at which it was fixed at the time of his retirement. Even a peon who retires today from the bank gets a pension of Rs 7,025. Need we say more?

To cite a live case, the basic pension paid to Shri C John Jacob, who retired in October 1987 from State Bank of Travancore as a middle level officer in October 1987 is a mere Rs 1,713. Shri S S Menon, who retired in September 1986 as an Assistant General Manager draws a basic pension of Rs 2,322, while an officer who retires today in the same grade receives Rs 17,600 as basic pension.

There are several such instances which we can quote. If the matter is not addressed at least now, the gap will grow to unimaginable proportions in the years to come.

4. This deplorable state of affairs and the huge disparity in basic pension are entirely due to the absence of pension updation. There is urgent need to extend the practice applied in the case of Central and State Governments, Government-owned Corporations and autonomous bodies where the formulae applied for revision of salary in the case of serving officers/employees are applicable to pensioners also.

5. The case of family pension is worse: it is nominal, being a mere 15% of the pension of the deceased officer for most of the senior among the retirees.

For example, the pittance that Smt C Lakshmi devi, the widow of the late Shri V Balachandran, who retired in July 1987 and expired on the 6th February 2008 receives as family pension is a mere Rs 600. Smt Saramma Chellappan, the widow of the late Shri P I Chellappan, who retired in September 1986 and expired on the 31st October 1987 receives family pension of just Rs 671.

This needs to be viewed in the context of the recent amendment in the Family Pension Scheme of Central Government Employees, 1964, which provides for family pension at 30 per cent of the Basic Pension of the deceased pensioner and the nine-fold increase in the family pension: the minimum family pension which was at Rs 375/- per month before updation now stands at Rs 3,500/- per month and maximum family pension has been raised from Rs 2,500/- to Rs 27,000/-.per month.

6. There was no pension in banks till the end of 1985. The pre-86 retirees are given a paltry sum as an ex gratia payment. They live a life of misery in the last lap of their life.

The basic ex gratia pension received by S/Shri M M Mathew and H Padmanabhan, who retired in September 1982 and September 1985 respectively as Assistant General Managers, is just Rs 300 (Including dearness allowance, they receive under Rs 2,100), while their counterpart retiring today would receive Rs 17,600 as basic pension.

7.  The plight of the spouses of the pre-1986 retirees is even more pathetic.

Consider the case of Smt Annamma George and Smt Saramma Peter, widows of former General Managers the late S/Shri K V George and V C Peter who retired in July 1981 and August 1984 respectively. They are paid a consolidated amount of Rs 1,000 as family pension.

8.  Sir, these are not solitary instances. The condition of the retired bank officers and their families is pathetic, as you can see from the above instances. They live in utter penury. Receiving peanuts of a pension which diminishes as age advances is humiliating to the ex-employees who spent the whole of their productive life for the growth and development of the bank. The amount of ex gratia pension paid to pre-1986 retirees and their spouses makes the proposition look like a cruel joke.

9. The contrast can be best appreciated by recalling that when Bank Officers’ Service Regulations,1979 was framed, their pay scale was on par with that of the Class I officers of the Central Government. There are no grounds for bank pensioners being denied the benefit of pension updation.

10. The Bank Employees’ Pension Regulations, 1995, implemented in 1996 with effect from 01-01-1986 was also drawn up on the lines of the Central Civil Service (Pension) Rules 1972. There is, therefore, a strong case for updation of pension to all the pensioners and family pensioners on the above basis.

11. Post-retiral welfare of the bank pensioners/family pensioners is a social obligation of the Government and the Government should not be found wanting in discharging this obligation. Most banks have unbroken record of profits. The average year-on-year profit is in the range of 15 to 20 per cent. In the circumstance, the burden that updation of pension would cast on banks will not be heavy. Further, with the introduction of the new Pension Scheme in Banks, the liability of banks would only diminish in due course of time.

12. In the wake of the Supreme Court judgment providing for pension updation for all pensioners/family pensioners of the Central Government, several individuals and organizations of bank pensioners had taken up the issue with the appropriate authorities at the Centre, but nothing has transpired. Litigation, as you would kindly appreciate, is a long drawn and money consuming process which the aggrieved pensioners, at this stage of their life, can ill-afford.

13. Sir, it is time that the issue is raised on the floors of the Parliament and serious attention of the Government is drawn for its resolution. We honestly believe that the humanist and enlightened Parliamentarian in you will carry the House with you in rousing the conscience of other Hon’ble Members of the Parliament and persuading the Government of India to look at the whole issue in the perspective of pure humanism and natural justice. Sir, we are too weak and exhausted to stand the nightmare at loitering court corridors, braving all seasons.

11th BPS Talks 27-10-2017 Updates : IBA respond to 5 day banking issue AND WILL BE COMPLETED BY DECEMBER 2017

MINUTE of 11th Bipartite Talks held on 27 October 2017 with Indian Banks Associations (IBA) : UFBU CIRCULAR DT. 27-10-2017 : Further to the ongoing discussions in the Sub-Committee on non-financial demands, today, a round of discussions with the Full Negotiating Committee of IBA was held in Mumbai.

From the side of IBA, Mr.R.K. Takkar(MD-UCO Bank and Chairman of the Negotiating Committee), Mr.V.G. Kannan(Chief Executive of IBA), Mrs.Usha Ananthasubramaniam(MD-Allahabad Bank), Mr.P.S. Jayakumar(MD-Bank of Baroda), Mr.Shyam Srinivasan(MD-Federal Bank), Mr.Prashant Kumar(DMDSBI), Mr.B. Rajkumar(Dy.Chief Executive-IBA), Mr.S.K. Kakkar(Sr. AdvisorIBA) and Mr.K.S. Chauhan(Advisor-IBA) were present.

From the side of UFBU, the following representatives were present:

Com. C.H. Venkatachalam and Com. Rajen Nagar(AIBEA), Com. D.T. Franco and Com. Dilip Saha (AIBOC), Com. Sanjeev K. Bandlish and Com. Vinil Saxena (NCBE), Com. S. Nagarajan(AIBOA), Com. C.J. Nandakumar (BEFI), Com.Subhash Sawant (INBEF), Com.K.K. Nair(INBOC), Com. Ramnath Kini (NOBW) and Com. Sunil Deshpande (NOBO).

We submitted the following main issues/points and wanted the response of IBA.

Wage revision process should be completed expeditiously
More frequent meetings/discussions to be held for this purpose
Data regarding establishment expenses, number of employees, etc to be provided
Negotiations must cover all Officers upto Scale-VII
IBA to make their initial offer on increase in wages
Fixing the Price Index upto which DA is to be merged with Basic Pay
Discussion on the issues pertaining to retirees viz.100% DA, pension updation, improvement in Family Pension, etc.
Also Read : DA Calculation Formula : How DA for bankers is calculated ?

Introduction of 5 Day Banking i.e. remaining Saturdays also to be holidays.
11th Bipartite Talks Update Five Day Banking Issue discussed
11th Bipartite Talks Update Five Day Banking Issue discussed
IBA responded as under:

IBA will hold frequent meetings to expedite the process.
Data on Establishment Expenses as on 31.03.2017 was provided. Further data would be provided shortly.
On the issue of fractured mandate by some Banks, Unions have to take up with the concerned Banks.
For officers, Performance related Variable Pay method to be introduced.
DA as on 31.10.2016 can be merged with Basic Pay.
Issues like 100% DA and updation are subjudice due to litigation.
On improvement in Family Pension, the cost aspect is being worked out.
For introduction of 5 Day Banking, the matter needs to be taken up with various stake holders including customers and Government, etc. before any decision is taken.
There was a lot of discussion on these issues.

From our side, we informed them as under:

IBA should commence the meaningful negotiations by making their initial offer on wage increase.
Entire exercise should be attempted to be completed before December, 2017.
While we shall meet the top management of the concerned Banks on mandate issue, IBA also should also take initiative to resolve the matter as majority of the Banks have given their mandate for negotiations upto Scale-VII Officers. 11th BPS talk 27 October update IBA reponse to five day banking issue
While we are for better performance, efficiency, more productivity, etc., any differentiated wage compensation will result in subjectivity, unilateralism, discrimination and may become demotivating and counter-productive.
On DA merger point, Unions will discuss and come back in the next round of talks.
On pension related issues, none of the Unions under UFBU have resorted to litigation.
On introduction of 5 Day Banking, IBA should take necessary steps from now on.
IBA took note of our views and it was decided to discuss the issues further in the next round of talks which will be held shortly.

P.S: It has been decided to hold a meeting of the UFBU at Mumbai on 13.11.2017 to take stock of the developments taking place in the banking sector and to further continue our struggle programmes as well as to work out our strategies to clinch an early and satisfactory wage revision.

ICICI Bank September Quarter Profit Falls 34% where as Vijaya bank's net profit grew by 20%

ICICI Bank Ltd, India's third-biggest lender by assets, reported a 34 per cent fall in second-quarter profit, missing analysts' estimates.

Net profit fell to Rs. 2,058 crore in the quarter ended September 30, from Rs. 3,102 crore a year earlier, the bank said on Friday.

 Analysts on average had expected a profit of Rs. 2,491 crore, Thomson Reuters data shows.

Gross bad loans as a percentage of total loans stood at 7.87 per cent at end-September, versus 7.99 per cent at end-June and 6.12 per cent a year ago.

Vijaya Bank’s September quarter net profit grew by 20 percent at Rs 185.5 crore against Rs 154.5 crore reported during the same period last year.

NET Interest Income rose by 22 percent at Rs 1,008.4 crore against Rs 827.8 crore year on year.

Asset quality witnessed an improvement as gross NPAs were reported at Rs 6,648.6 crore against Rs 6,812.2 crore in the previous quarter, while net NPAs were reported at Rs 4,472.9 crore as against Rs 4,784.3 crore in the June quarter.

The gross NPA ratio was at 7.06 percent against 7.3 percent quarter on quarter, while net NPAs were seen at 4.86 percent against 5.24 percent

11th Bipartite update after meeting held on 27.10.2017

A big drama by our almighty leader   hihihihi  hahahahhaha heheheheheh


WAGE NEGOTIATION:
In today's talks IBA proposed merger of Dearness Allowance as on Oct. 2016 for working out revised payscales. IBA also wanted introduction of variable pay for officers which we did not agree. 
We insisted on negotiations to cover up to scale 7.
Data on establishment expenditure was given.
Detailed circular follows.
S.K. Bandlish,
Convener UFBU, &
Gen. Secretary, N.C.B.E

PSU bank index rose 29.63 per cent after 2.11 lakh crore recapitalisation package by Govt.

 

Bear traders in India’s equity markets were battered on Wednesday as the CNX Bank Nifty index of the National Stock Exchange (NSE) and PSU bank stocks witnessed one of their biggest short squeezes in years. A massive covering of short positions was seen from foreign portfolio investors (FPIs), mainly hedge and index funds, market experts said.

A stunning swing in sentiment in respect of PSU banks following the government announcement on Tuesday of a ₹2.11-lakh crore bank recapitalisation package sent the share prices of SBI, PNB, Canara Bank, Bank of Baroda and Union Bank, among others, up by 25-50 per cent in a single trading session. Brokers said there had not been such an upmove in PSU banks shares in years. The Bank Nifty index rose 3.36 per cent and the PSU Bank index 29.63 per cent.

The BSE Sensex rose 435 points, or 1.33 per cent, to close at 33,042. The NSE Nifty rose 87 points, or 0.86 per cent, to close at 10,295.

Options sellers trapped

“Options sellers and those who sold Bank Nifty index were trapped,” said Deven Choksey, promoter, KR Choksey Investment Managers. “The rise triggered huge margin calls.”

A short squeeze occurs when a heavily short-sold stock moves up sharply, triggering panic-buying in the futures and options segment. It adds to the upward pressure on stocks. Simply put, short-sellers were squeezed out of their positions on Wednesday.

A margin call is triggered when a trader’s collateral as a percentage of the total market value of the security in the derivative segment falls below a certain percentage requirement. Wednesday’s unanticipated rise could see such a margin shortfall. Margin calls may put pressure on trading in the coming days, brokers said.

“Wednesday’s short-squeeze on the back of a news event was the result of the pair trade theme that FPIs have played for over a couple of years,” said Rajesh Baheti, MD, Crosseas Capital.

“For several quarters, FPIs were long private banks and NBFCs and short PSU bank; this trade came unstuck on Wednesday.”

“There was massive unwinding of long positions in private banks and NBFCs and short positions in PSU banks,” said Sudip Bandyopadhyay, MD, Inditrade Capital. “FPIs have been carrying this trade for years.”

PSU banks’ dismal state of credit growth and deteriorating asset base had made them a favourite short for FPIs and large domestic traders. To balance it, most went long on Bank Nifty, private sector banks and NBFCs, where earnings growth was visible. This explains the sharp fall in the share prices of top private banks, including HDFC, Kotak, IndusInd and YES Bank and even NBFCs like Bajaj Finance, Bharat Financial, Edelweiss, Chola Finance and L&T Housing Finance.

The share prices of private banks and NBFCs fell 5-15 per cent. Axis Bank and ICICI Bank, which rose around 5 per cent, were the exceptions as most traders were short on them and covered their position.

Interesting figures are given below for delaying wage REVISION

Interesting figures are given below for delaying in settlement. All Bankers are eagerly waiting for the same. Hope this time all will get it soon.

Bipartite settlement No.	Date of Effect	Date of wage Settlement	Delay in Days for settlement
1	01-JAN-1966	19-OCT-1966	291
2	01-JAN-1970	12-OCT-1970	284
3	01-SEP-1978	01-AUG-1979	334
4	01-JULY-1984	17-SEP-1984	78
5	01-NOV-1987	10-APR-1989	526
6	01-NOV-1992	14-FEB-1995	835
7	01-NOV-1997	01-JAN-2000	791
8	01-NOV-2002	01-JUNE-2005	943
9	01-NOV-2007	27-APR-2010	908
10	01-NOV-2012	25-MAY-2015	935
11	01-NOV-2017	?	?

I want from you  expected date   please fill in the ?  ?

Banks want wages to be linked to productivity rather than the present practice of automatic hikes in wages based on tenure

The prospects of arriving at a wage pact between bank managements under the aegis of the Indian Banks’ Association (IBA) and unions by the end of the month look dim as they are slated to meet on Tuesday and Friday.  

Trade union functionaries have said banks, through the IBA, were yet to put their offer (for wage hikes) on the table. Discussion on financial matters (for wages) is expected to take place on Friday, when the IBA could make its offer.  

On Tuesday, unions will discuss routine matters, such as leave and travel allowances with the managements. 

The United Forum of Bank Unions, a body of banking industry unions and associations, is leading the talks on behalf of employees. 

The term of the existing wage agreement ends on October 31. The IBA has held four meetings with the workmen’s union and two meetings with the officers’ association/unions. 

The discussions and negotiations began four months ago and it would be impossible to conclude talks in a short time. They could spill over to early next year, union representatives said.

For this round of wage negotiations, public sector banks, many of which are deep in the red, have proposed bank-wise compensations for executives, depending on the strength of each entity.

Banks want wages to be linked to productivity rather than the present practice of automatic hikes in wages based on tenure. Unions have opposed such proposals.

11th BPS Wage Revision Meeting held on 24 October Updates A small drama from almighty leaders

11th Bipartite Settlement Meeting Updates 24 October :  Today further one more round of meeting was held with IBA. Non Financial demands were discussed on in this round of meeting.

Demands discussed in 11th BPS 24 October Wage Revision Meeting

Today in discussion with IBA, following non financial demands discussed

• Additional Sick Leave
• Distance under LFC
• LFC for employees in North East, Andaman and far away places in extreme north,
• Project Area Quarters, more HRA in difficult and border areas, etc.

Separate meeting will be held on disciplinary action matters.

Next meeting with IBA will be held on 14th November and Full Negotiating Committee meeting on 27th October on wage revision issues.

Public Sector Banks To Get Rs. 2.11 Lakh Crore, A 'Bold' Step, Says Arun Jaitley

The government today announced a capital infusion plan of an "unprecedented" Rs. 2.11 lakh crore into public sector banks over two years, a move which was described as a "bold step" by Finance Minister Arun Jaitley. For bank recapitalisation, Rs. 1.35 lakh crore will be raised through recap bonds and Rs. 76,000 crore via budgetary support and equity issuance. The finance minister also said the recapitalisation of state banks would be followed by a series of reforms. He did not give details.
"Once you strengthen banks, markets' appetite for the stock will improve," the finance minister said.
He also said that the lending spree of public sector banks during 2008-14 had resulted in the bulk of the bad loans in the banking system.

Financial Services Secretary Rajiv Kumar in a presentation said the capital infusion will help in making public sector banks bigger and stronger. It will help in extending credit to the deserving sectors and result in faster growth of the small and medium scale enterprises, he added. 

The capital infusion will help clean banks' books and revive investment, the Secretary said. 

While banks remain the main source of funding for India's companies, the stubborn bad debt problem has eaten into bank profits and choked off new lending, especially to smaller firms.

Twenty-one state-run banks account for more than two-thirds of India's banking assets. But they also account for a bulk of the record Rs. 9.5 lakh crore of soured loans.

Crisil, a rating agency, expects this figure to hit Rs. 11.5 lakh crore by March 2018. In addition, Fitch Ratings estimates that Indian banks will need $65 billion of additional capital by March 2019 to meet Basel III global banking rules.

According to RBI data, new loans grew at just about 5 per cent in the year to March - the lowest growth rate in more than six decades.

Government should only Merge strong Public Sector Banks: RBI Deputy Governor

Reserve Bank of India (RBI) deputy governor Viral Acharya on Friday said the government should only merge strong public sector banks (PSBs) while allowing weaker banks to recuperate after adequate recapitalisation.

“Sometimes merging stronger entities with weaker entities leads to bringing down the stronger entity. The calculation has to be right,” he said while speaking at an event organised by Brookings India.

However, Acharya clarified that these are his personal views and do not reflect the views of the central bank.

Giving the example of Bank of America (BoA), which was one of the healthiest banks before the real estate crisis started in 2008, Acharya said BoA weakened significantly after it acquired Countrywide and Merrill Lynch, which had a lot of bad loans.

“My own sense is let the healthy banks merge with each other if consolidation in the sector is the objective. Keep recapitalisation of the weak banks as a separate thing, recapitalise them and then merge them with other healthy banks. Or else you have to do the calculation right so that the healthy bank has so much capital that it can absorb the losses of the weak bank,” Acharya said.

State Bank of India merged the operations of five of its associate banks and Bharatiya Mahila Bank with itself earlier this year, marking the first consolidation move in the sector following the bad loan crisis. The merger has reduced the number of state-controlled banks to 21 from 26.

Acharya said if the government cannot recapitalise PSBs due to its tight fiscal situation, then it should consider privatising some of these banks.

“You still have stakes in these banks even if you can’t recapitalise them. And you can sell these stakes in the market and someone can take over the banks. The regulator should ensure that such private banks remain well capitalised,” he added.

Under the Indradhanush scheme introduced in 2015, the government had agreed to infuse Rs70,000 crore in state-run lenders over four years. They were to receive Rs10,000 crore in 2017-18 and the same amount the following year which analysts consider to be inadequate. The government has so far proposed to infuse Rs8,586 crore in 10 lenders this year, subject to the banks meeting stringent requirements for improving their health.

On the bad bank proposal which was meant to take over all the bad loans of PSBs, Acharya said it is presently not under consideration because it may be difficult for the government to manage a new entity if it cannot adequately recapitalise the existing PSBs.

Sanjeev Sanyal, principal economic adviser in the finance ministry, recently told Mint that the government is looking to reduce the number of public sector banks to 10-15, more than what was envisaged earlier, through a series of mergers and acquisitions so that none of the banks becomes too big to fail.

“Consolidation will not be taken too far to four or five as speculated since the whole system breaks down even if one fails. Eventually, the possible number will come down between 10 and 15. It will be done purely on a commercial basis,” Sanyal said in an interview on 21 August.