Half of the employees of private banks are contractual . With minimum wage they are being tortured like slaves. Besides, there is no security of their job.
VISITOR FROM WORLD
Sunday, February 28, 2021
Half of the employees of private banks are contractual . With minimum wage they are being tortured like slaves. Oppose privatisation bof Bank
Saturday, February 27, 2021
India_Needs_PublicSectorBanks we oppose privatisation
CPI going down but petrol price going up -- expected DA for banker from May 2021 may be decrease -- see details
Petrol price goes Rs 100 , mustard oil Rs 150 onion Rs 50 even yet CPI going down what a strange!!!!!!!
Expected DA Calculation Updated on 26.02.2021 on the basis of CPI for the month of Jan'21 announced on 26.02.21 (decrease of 0.60 points as per revised base year 2016 (base year changed from Oct 2020) and 1.73 points as per base year 2001 in CPI) with assumptions of CPI for next two months i.e. Feb & Mar. 2021 as under:-
- On assumptions if there is an increase of One point of CPI in both the next two months. Keeping in view on going increase in fuel price and prices of other commonly required items despite to this in this situation the expected (tentatively) decrease in DA Slabs would be 3 slabs and the total tentatively revised DA slabs would be 849 slabs i.e. 84.90% on existing pay and in terms of 11BPS total tentatively revised DA slabs would be 371 i.e. 25.97%.
- On assumptions if there is an increase of half point CPI in both the next two months despite to this in this situation the expected (tentatively) decrease in DA Slabs would be 11 slabs and the total tentatively revised DA slabs would be 846 slabs i.e. 84.60% on existing pay and in terms of 11BPS total tentatively revised DA slabs would be 363 i.e. 25.76%.
- On assumptions if there is an increase of one point in Feb.'21 and 0.50 in Mar.'21 despite to this in this situation the expected (tentatively) decrease in DA Slabs would be 6 slabs and the total tentatively revised DA slabs would be 858 slabs i.e. 85.80% on existing pay and in terms of 11BPS total tentatively revised DA slabs would be 368 i.e. 26.60%.
Thursday, February 25, 2021
Those candidates want public sector job see this figures #modi bhakta # Modi hatao govt job bachao
Those candidates want public sector job see this figures #modi bhakta # Modi hatao govt job bachao......We don't want to repeat the same mistakes again, what we did in 2019.....
All Private Banks Allowed To Offer Government-related Tax and Revenue Payment Facilities
The Indian government on Wednesday lifted an embargo that prohibited private sector banks from carrying out government-related banking business. All private banks are now allowed to carry out government-related banking transactions like taxes and other revenue payment facilities, pension payments and small savings schemes.
n a tweet, office of Nirmala Sitharaman, the finance minister says, "Embargo lifted on grant of government business to private banks. All banks can now participate. Private banks can now be equal partners in development of the Indian economy, furthering government's social sector initiatives, and enhancing customer convenience.
A statement issued by the department of financial services (DFS) under the finance ministry says, "This step is expected to further enhance customer convenience, spur competition and higher efficiency in the standards of customer services. Private sector banks, which are at the forefront of imbibing and implementing latest technology and innovation in banking, will now be equal partners in development of the Indian economy and in furthering the social sector initiatives of the government."
With the lifting of the embargo, there is now no bar on Reserve Bank of India (RBI) for authorisation of private sector banks, in addition to public sector banks for government business, including government agency business. The government has conveyed its decision to RBI, the release from DFS says.
Uday Kotak, chief executive of Kotak Mahindra Bank welcomed the move to allow all private sector banks handle government business. In a tweet, he says, “It will enable the banking sector to serve customers better.”
Salaries & Pensions Are Rightful Entitlements Of Government Employees; Appropriate Interest Must Be Paid For Delayed Payment: Supreme Court
The Supreme Court observed that salaries and pensions are rightful entitlements of Government employees and the Government which has delayed the payment of salaries and pensions should be directed to pay interest at an appropriate rate.
The Andhra Pradesh High Court had allowed a Public Interest Litigation filed by a former District and Sessions Judge and directed the (i) payment of the deferred salary for the months of March-April 20 together with interest at the rate of 12% per annum and (ii) payment of deferred pension for the month of March 2020 with a similar rate of interest.
In appeal before the Apex Court, the State Government restricted its challenge against the High Court judgment only to the component of interest. The state contended that the decision to defer the payment of salaries and pensions was taken due to the precarious financial position in which the State found itself as a consequence of the pandemic. It submitted that the State had acted bona fide and there would be no reason to saddle it with the liability to pay interest. The bench comprising Justices DY Chandrachud and MR Shah, taking note of the contentions raised by both
The direction for the payment of the deferred portions of the salaries and pensions is unexceptionable. Salaries are due to the employees of the State for services rendered. Salaries in other words constitute the rightful entitlement of the employees and are payable in accordance with law. Likewise, it is well settled that the payment of pension is for years of past service rendered by the pensioners to the State. Pensions are hence amatter of a rightful entitlement recognised by the applicable rules and regulations which govern the service of the employees of the State.
The court noted that the State Government has complied with the directions of the Court for the payment of the outstanding in two tranches. The court observed that the rate of 12% per annum which has been fixed by the High Court should be suitably scaled down. "
While learned counsel for the respondents submits that the award of interest was on account of the action of the Government which was contrary to law, we are of the view that the payment of interest cannot be used as a means to penalize the State Government. There can be no gainsaying the fact that the Government which has delayed the payment of salaries and pensions should be directed to pay interest at an appropriate rate.", the court said.
Wednesday, February 24, 2021
UFBU must rework and renegotiate with IBA to have a fair D.A. rate to 0.10% instead of 0.07%
D. A. expected to travel southward in future
At the time of signing MoU in July, 2020, AICPIN-IW (1982=100) was in use. But, in September, 2020, all of a sudden the Index was changed to 2016 series.
Since the composition of 2016 series has different items, carrying different weights, UFBU failed to examine the adverse implications of adopting 2016 series properly, before signing the full agreement in November, 2020.
Since the new scheme of D.A. compensation will result in loss due to fall in D.A. as per existing pattern or only a meagre increase, UFBU must rework and renegotiate with IBA to have a fair and just D.A. compensation.
Therefore, it is necessary that the compensation must be raised to 0.10% per Slab, as against the present 0.07% per Slab.
Will UFBU come forward to renegotiate the quantum of compensation for each slab of AICPIN on the above lines?
Bankers fear that as much as 25% loans under MUDRA scheme could turn bad.
Outstanding loans under the Pradhan Mantri Mudra Yojana (PMMY) are increasingly becoming a cause of worry for banks as stress in small and medium enterprises (SMEs) has spiked default rates beyond the amount gauranteed by the government in the scheme.
Bankers say that the Supreme Court moratorium over classifying loans as non performing assets (NPAs) has so far kept defaults under wraps, even as recovery efforts are ongoing. But they fear that as much as 25% loans under the scheme could turn bad..
Loans to SMEs are always considered high risk and we expect NPAs of about 10%. The government gurantee on these loans had so far given banks the confidence to go ahead and lend but the economic disruption caused by Covid 19 means all calculations have gone haywire," said a senior banking executive.
Launched in 2015, PMMY offers loans up to Rs 50,000 for micro enterprises like vendors, traders and shopkeepers under the Shishu scheme while loans from Rs 50,000 to 5 lakh are offered to smaller enterprises like for purchase of light commercial vehicles and women self help groups under the Kishor scheme. Larger enterprises like small handlooms, food product units and equipment financing are done under the Tarun scheme with loans of between Rs 5 lakh to Rs 10 lakh.
Provisional data on the Mudra website until February 18 shows that banks, NBFCs and micro finance institutions have disbursed a total of Rs 2.19 lakh crore under the scheme. They had disbused Rs 3.29 lakh crore last fiscal.
The total outstanding amount at the end of last fiscal under the scheme was Rs 2.67 lakh crore.
State Bank of India
NSE 3.06 % (SBI) and IndusInd Bank
NSE 1.78 % were the top two among banks disbursing Rs 34,978 crore and Rs 38,199 crore respectively in the last fiscal.Mudra loans are refinanced by the government owned SIDBI. Moreover, the government guarantees about 50% of the NPAs in the porfolio upto 15% of the total size of loans given until March 2020.
"It is possible that the slippages in these loans could go beyond the guaranteed cover provided by the government as these self employed people have been worst hit this year. The situation has become better than the first half of the year and the government has also increased the guarantee cover this fiscal but we are preparing for the worse," said another senior banking executive.
Post Covid the government increased the guarantee to 75% of NPAs but kept the cap at 15% of total loans. However what is worrying bankers is the fact that these loans are without any collateral which means the only recourse to recovery in some cases is the guarantee provided by the government.
Bankers say with large corporate stress mostly identified and loans to individuals individuals mostly collateralised, it could be the MSME sector which could see a spike in NPAs.
Rs 25,000 crore Maharashtra State Cooperative Bank scam: Hearing on Anna Hazare’s plea against closure starts
A court here on Saturday began the hearing on a petition filed by activist Anna Hazare against the closure report filed by Mumbai Police in the alleged Rs 25,000 crore Maharashtra State Cooperative Bank scam. Maharashtra Deputy Chief Minister Ajit Pawar was one of the accused named in the case.
The court heard the matter for some time on Saturday and adjourned it to March 15, Hazare’s lawyer said. Besides Hazare, Surinder Arora, the original informant in the case, has also filed a protest petition challenging the police’s decision to close the probe for want of evidence.
The Economic Offences Wing of police had registered the case under IPC sections 406 (criminal breach of trust) and 420 (cheating), the Prevention of Corruption Act, and Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.
As per the FIR, the state exchequer suffered losses of Rs 25,000 crore between January 1, 2007 and December 31, 2017 due to irregularities in the Maharashtra State Cooperative Bank. Hazare’s petition alleged that the entire investigation was an eyewash.
Private banks can get govt business,--Another bad decision to ruined PSB
The Centre has lifted the restrictions on grant of government businesses to private banks, finance minister Nirmala Sitharaman announced on Wednesday. "Embargo lifted on grant of govt business to private banks. All banks can now participate," finance minister posted on Twitter.
Kisan Movement: Exploring the Class Underpinnings
Kisan Movement: Exploring the Class Underpinnings
Nilotpal Basu
PRIME Minister Modi is evidently upset with the growing resonance in the country with the never-say-die movement of the kisans. The movement which has now assumed the form of vigorous united and peaceful resistance is the rallying point of various sections of the class-differentiated peasantry in India. It is this remarkable unity which defines both the spread and depth of the resistance. It is faced with this granite stonewall that the prime minister betrayed his sense of frustration! In his intervention on the debate on the President’s address he attributed the movement to a new nomenclature, FDI, Foreign Destructive Ideology. The PM also in his penchant for new coinages blasted ‘andolanjeevis’ who are polluting the purity of the farmers’ struggle. His attempt to outrightly demonise the peasants struggle is understandable; the umbrella platform of the farmers Samyuktha Kisan Morcha (SKM) embracing over 500 kisan organisations across the country coined the slogan in response to the government’s proposal, following the first round of negotiations -‘Sarkar ki Asli Majboori, Ambani, Adani aur Jamakhori’ !
This slogan captures the quintessence of the current struggle. Obviously, this has rattled the PM not to speak of his corporate cronies. Hence the unrelenting nature of the struggle has forced him to observe ‘there should not be any criticism of the private sector’!
WHAT EXPLAINS THE RESILIENCE?
The current phase of the peasant struggle broke out immediately after the proclamation of the three ordinances on June 9. Thereafter traversing through a series of local campaigns and mobilisations of the peasantry, entered a qualitatively new level with the enactment of these three farm laws. Intended to refashion primarily agro-marketing, which will obviously affect the entire gamut of Indian agriculture.
The ordinances have unleashed a vicious war against the peasantry. Agriculture though contributing 14 per cent to GDP, but has 60 per cent of the population depending on it. That the laws enraged massive numbers also underline the degree of subversion of the legislative exercise. The enactment was preceded by a virtual absence of any public discussions where the draft legislation needed to be put out on the ministry’s website followed by wide-ranging consultations with state governments and particularly the stakeholders. The Rajya Sabha proceedings were obnoxious, where opposition members were even disallowed their right to register their disagreement.
In response to RTI queries, the government has also revealed an outrageous absence of engagement. These also underline constitutional questions when agriculture figures under the state list. The response of the Supreme Court to such brazen constitutional impropriety is another low in the judicial history of the country. The basic constitutional question about the legislative competence of the national parliament to enact laws of this nature has been held in abeyance.
Therefore, the absence of any avenues for redressing their grievances either by the legislature or the judiciary has resulted in public action on the streets. Though the present struggle which has its focus on protest sites located at the gateways to Delhi, the resistance is building to engulf the entire country. The initial uneven development of the struggle prompted the ruling dispensation to claim that the opposition was only confined to Punjab; but what is happening now all across, repudiates that claim.
The manner in which struggle has erupted only goes to show that the peasantry is engaged in agriculture in very different conditions; their responses have evolved with time and clarity about the consequence of the laws. This is natural with India having six agro-climatic zones. Recognising this diversity, the Constitution makers had placed agriculture under the state list.
The second line of attack from the government repeated its pet narrative that the movement was being organised by khalistanis, maoists and agents of Pakistan and China, making them outrightly ‘anti-national’.
There were specific efforts to break the unity; with the agriculture minister meeting fictitious organisations to drum up support. Disrupting class unity and driving a wedge between peasants of the different religious denomination was yet another ploy to undermine the struggle.
Biggest ever tractor rally on the Republic Day was sought to be used by official agencies to defame the movement and draw up a narrative by using agent provocateurs and the spectacle at the Red Fort. This was accompanied by the Delhi Police to launch an attack on independent media and senior journalists replicating the recurrent pattern. The resolute movement has managed to uncover the class aggressive of the Modi dispensation and its limits in undermining justice and democracy.
Meanwhile, little did the government realise that this was essentially a class movement encompassing the entire peasantry including substantial sections of the rich peasantry.
THE BACKDROP OF THE CURRENT STRATEGY
Public investment-led post independent agriculture policy to expand production and achieve food self-sufficiency resulting in the green revolution was riddled with failure to undertake a meaningful programme of land reforms. This resulted in vast sections of the poor and landless peasants remaining insulated from this course. Despite this constricted growth which witnessed an expansion in production without the benefits reaching the multitudes, the onset of international finance driven neo-liberal policies from the 90s aggravated the real crisis for most sections of the peasantry. The cost of farming grew disproportionately with the liberalisation of trade in inputs; irrigation, fertilisers, seeds, pesticides all grew astronomically. On the other hand, the government’s growing reluctance in procurement saw major corporate entry. This was combined with the WTO led Agreement on Agriculture (AOA). Initially, the then Indian government pointed out that, unlike the developed economies, agriculture was not organised under big corporatised agri-business, but was a matter of livelihood for most. However, protest notwithstanding, the definition of subsidies in agriculture was designed in a manner which while providing relief to the agri-business, penalised the Indian farming community with the major withdrawal of subsidies resulting in the huge inequities across the world, graphically demonstrating thus:
Government subsidy to agriculture sector, 2019
Economies Subsidy in US dollars
China 185.9 billion
EU 101.3 billion
USA 48.9 billion
Japan 37.6 billion
Indonesia 29.4 billion
Korea 20.8 billion
India 11.0 billion
Source: Tradevistas
This is apart from the post-WTO pattern where the prices of primary commodities including in agriculture plunging in developing economies like India. The overall result was a structural crisis for the peasantry with the cost of production increasing without a commensurate price increase making peasant agriculture inherently crisis-ridden. This situation from the 90’s has aggravated with the continuing phenomenon of farmers’ suicides, highlighting the existential threat that farmers faced including even a section of the big farmers. It is against this background that the demand for a minimum support price assumed urgency. This was accompanied by the demand for an assured procurement of the produce. This led to also a growing demand for expansion of the PDS and right to food which would also require an expansion in storage and supply chain infrastructure. This backdrop led to the Swaminathan Commission recommending C2+50 per cent to ensure viability for peasant agriculture. However, this has not happened and the public sector food procurement has faced abysmal conditions.
The overall stranglehold of the private sector has also led to non-expansion of and absence of modernisation of APMC mandis making it that much difficult for the peasantry to sell their produce with secure price discovery mechanism across commodities. This backdrop has aggravated the crisis with the further neo-liberal offensive under the Modi government with the additional dimension of certain crony capitalist interests in procurement, storage and distribution with enhancement of big corporate retails in agriculture, particularly in food commodities.
WHAT THE FARM LAWS AIM TO ACHIEVE
The obsession with an investment-led strategy for overall economic recovery has shown an abject failure under the present dispensation. This is because of the constant fall in aggregate demand which in turn resulted in investment slowdown. The primary reason for this has been an unsustainable growth in inequality and accompanying lack of growth of employment. This phenomenon is graphically illustrated in the latest Oxfam report with the apt caption ‘virus of inequality’ while describing the conditions of the economy which went into a severe lockdown with an outbreak of the pandemic. Unsurprisingly, the post-pandemic picture of the Indian economy is particularly grim even compared to other developed economies.
It is clear that private corporate investment which grew dramatically in the boom that took place before the 2008 global crisis, rising from 6.2 per cent of GDP to 16.8 per cent in the space of just five years has come to a grinding halt. That boom driven investment in manufacturing, infrastructure, and real estate collapsed after the crisis. With the slowing down of private corporate investment since 2015-16 from 11.6 to 10.3 in 2018-19 as percentage of GDP at current prices even before Covid meant opportunities for any revival are shrinking further. It appears that Modi government’s ‘magic wand’ of private corporate investment has simply disappeared. The refusal of the government to formulate an appropriate Covid relief package to save jobs and energising economic activity to shore up demand is consigning the economy to further depths of crisis.
The huge tax break last year to the corporates has bombed in infusing life in the economy and an abject failure in expanding revenue collection. Therefore, in order to be on the right side of the corporates, Modi regime has decided to hand over public assets through big-time privatisation of all major national assets encompassing major sectors of the economy and further burdening the working people and vulnerable sections of the society.
This brazen-pro corporate drive of the government has led to the government opting for using the pandemic condition; not to tackle the health and the economic fallout of the lockdown, but to use it in launching severe attacks on the labour and human rights of the people.
A part of this effort is to hand over the entire sphere of peasant economy to the profit-driven initiatives of the corporate sector in agriculture. This is facilitating the otherwise choked avenues for private investment in an area of the food economy where the demand may be more inevitable as compared to other sectors of the economy.
The three farm laws and the refusal to concede a legal guarantee for MSP and expanded official procurement underlines the government’s class bias. Prognosis of the laws shows clearly that they will gradually phase out APMCs out of operation denying the farming community semblance of wherewithal for price discovery for their produce leaving them without any bargaining power to deal with corporate monopsony. Similarly, contract farming will have unfettered freedom to corporates to determine quantity and quality of crops and the proprietary rights of land will become notional. The dilution of the Essential Commodity Act will also ensure removal of any obstacle to stockholding, speculation and even black-marketing with the complete withdrawal of the government from procurement will lead to food being prey to profiteering. Therefore, the farmers’ struggle by proclaiming that this movement is not merely prompted by the impulses of saving peasant agriculture but also to safeguard the right to food security of the people.
THE GENESIS OF UNITY
This also brings out the class basis of the ongoing farmers’ struggle encompassing all sections of the peasantry including substantial sections of rich farmers. In order to deny this broad-based class alliance among the peasantry, the government and its votaries among the ‘official’ experts and media commentators by portraying the struggle as one led by big farmers. This was sought to be reinforced by the initial explosion coming from the farmers of Punjab. But closer scrutiny reveals that the struggle is the desperate call for survival from the fall out of the farm laws. A Punjab State Farmers Commission finding in 2008, which identified 89 per cent of Punjab’s agriculture-dependent households as indebted call this bluff.
The genesis of the current unprecedented unity across the class differentiated peasantry and agricultural workers have evolved over two decades affected by aggravation of the agrarian crisis of falling incomes, indebtedness and dispossession. Especially, after the Modi government initiated major initiatives for land acquisition the Bhoomi Adhikar Andolan was established in 2016 and the drastic fall in prices following the abrupt demonetisation in November 2016 when the All India Kisan Sangharsh Coordination Committee (AIKSCC) was born in 2017. Since then, the AIKSCC by taking up series of partial struggles have expanded by drawing in more than 200 organisations. Simultaneously, in Punjab, series of struggles have taken place individually and unitedly involving kisan organisations ranging from the WTO induced hammering down of prices of farm produce to the corporate raid of retail trade and shrinking scope of the MGNREGA. This has led to the coming together of all these 500 plus organisations. The democratic and consultative practises within the SKM have resulted in a broad confederation of organised entities, big and small reflecting the regional, political and ideological diversities that define the current conjuncture. This appropriate organisational structure sustains the resilient struggle and forces the exposure of the class bias of the government’s agricultural reforms.
THE ROAD AHEAD: TOWARDS A SUSTAINABLE ALTERNATIVE
It is absolutely clear that the struggle ahead cannot merely remain confined to the scrapping of the farm laws and ensuring legal guarantees for MSP. While the government is surrendering to the international finance led strategies for the agricultural sector as adequately manifested by imitating proposals from the World Bank and the IMF of integrating agriculture as part of the global agri-business, the Indian reality represents a completely different scenario. The fact that the average farm size in the United States is as large as 450 acres as against that the average farm size of 1.5 acres here, the highly differentiated levels of governmental subsidy make the Indian situation unique. A ‘one size fit all approach’ in reforming Indian agriculture will not only sound the death knell for the Indian farming community which covers 60 per cent of our population but will lead to complete destruction of food self-sufficiency and food security of an overwhelming majority of our population. Predictably, IMF has endorsed these Indian laws.
Therefore, scrapping of the farm laws is the common minimum programme. But, a composite of correct estimation of cost and production and its linkage to an assured MSP, allocation of funds and implementation of NREGA, setting up of farmer producer organisations with collective marketing, storage, processing and infrastructure, farm loan waiver, expanded priority sector lending and review of trade agreements is necessary. This is for not only sustaining the class unity which is ridden by differential interests and priorities but also to ensure the sustainability of the peasant economy which forms the backbone of the overall Indian economy. This would lead to energising other sectors which is a crucial element in this overall endeavour. The current struggle has indeed inspired that alternative vision
Tuesday, February 23, 2021
PSB are earning huge Oprating profit but It's looted by write off's due to corporate borrowers
Technically speaking the PSBs are doing well than the private banks.All the profits are eaten by corporate defaulters and the operating profit is siphoned in the form of provisions and write off.
Govt should identify the high provisioning companies and close monitoring of the companies required
It's looted by write off's
Monday, February 22, 2021
559 Private Banks failed between 1947 & 1969
559 Private Banks failed b/w 1947 & 1969. Bank consolidation done to reduce no. of Banks from 328 to 68 in 1965.
People lost money in failed Private Banks So Bank Nationalization done in 1969.
People still loosing money in failed Banks, but this time Govt doing opposite.
Why?
Is privatisation the panacea to all the ills? .....must read full article
Is privatisation the panacea to all the ills? .....
by V. Viswanathan retired Executive of a PSB ////
"Right from the former governor and deputy governor, every one advocates that PSBs will turnaround much more efficiently, if they are privatised.
One do not get the confidence, if the history is any indicator.
1. Global Trust Bank, failed in its first attempt to merge with UTI Bank, was merged with Oriental Bank of Commerce, an efficient PSB at that time, in 2000
2. Times Bank, a new generation private bank after reforms, was merged with HDFC Bank in 2000.
3. Yes Bank had to be rescued by investment into equity by select banks, with SBI leading the pack with an investment of 49%
4. PMC Bank was placed under moratorium
5. Shadow Banks or NBFCs to be precise IL&FS and DHFL were taken to NCLT by the government/regulator for resolution.
Failure in all the above banks/NBFCs are due to reasons of corporate governance related issues, exposing the depositors/creditors to grieve, if remedial measures were not in place immediately.
In addition, there were serious corporate governance issues in the second largest PvB, ICICI Bank involving alleged conflict of interest in sanction of loans to a big corporate.
While the PvBs had their goals linked to maximising the interests of their shareholders, PSBs were given twin responsibilities -
(i) continue to meet the objectives of the successive governments of different parties and
(ii) also remain viable to comply with the Basel norms arising out of banking reforms implemented.
d. PSBs contributed substantially in financial inclusion and development inclusivity (infrastrcture), the main objectives of successive governments since 2000.
(i) Infrastructure:
Lending to infra, which stood at Rs.7243 cr. in 1999-2000 increased to Rs.786045 cr. in 2012-13. (a compounded annual growth rate of 43.4%over a period of 13 years) and bulk of the lending was undertaken by PSBs. Credit for the growth of infrastructure facilities with particular reference to power, roads, ports rightfully belong to PSBs. Incidentally the share of HDFC Bank, which has the highest market capitalisation among SCBs in India, is negligible in building the infrastructure requirements of a growing Indian economy. Even today, Power and Roads, the two sectors that account for the maximum spend in infrastructure, continue to get their support only from PSBs.
(ii) Agriculture:
Bulk of the lending to Agriculture and allied activities comes from PSBs and RRBs, sponsored by PSBs. PvBs, thanks to the advent of PSLC(priority sector lending certificate), achieve their priority sector targets under Agriculture, by purchase of PSLCs in the market for short periods
(iii) MSME:
As per report on trend and progress of banking in India 2019-20 released by RBI, 60% of MSME lending comes from PSBs (Rs.8.93 lac cr.) with the average ticket size of loan Rs.8.12 lac. (Average ticket size of PvBs is reported at Rs.2.39 lacs)
(iv) MUDRA LOANS:
PSBs including RRBs lead the pack in the PMMY loans (Mudra loans) launched in 2015. (Total sanctions by all the banks in the last five years is staggering at Rs.14.43 lac cr. extended to 27.70 cr. beneficiaries) under the scheme
(iv) Banking in Rural and Semi Urban Areas:
As on 31st March 2020, PSBs have 29201 branches in rural areas as against 6160 branches of PvBs.
Similarly PSBs have opened 27451 and 39551 ATMs respectively in rural and semi urban areas.
PvBs, which account for more ATMs than PSBs in metros (30160 versus 29339) are far behind with the numbers reading at 6046 and 17708 in the respective centres.
(v) Financial Inclusion:
The number of accounts opened under PMJDY in the last five years crossed Rs.41 cr. recently. PSBs accounted for 33 cr. accounts and RRBs, part of PSBs, stands second with 7.2 cr. accounts. PvBs' share in the whole exercise is a mere 3% at just over 1 cr. accounts.
(vii) Demonetisation exercise could not have been completed smoothly, but for the wholehearted involvement of the staff of PSBs. Apart from accepting the demonetised notes, all efforts were made by PSBs to enable the public to withdraw cash from the branch counters as well as off-site ATMs.
PvBs closed their off site ATMs in most places and the cash disbursals from their on-site ATMs was restricted to their customers.
(I am not making a mention about the way the PSB staff served the society during the COVID lockdown period and the credit facilities extended under ECLGS, since the hon'ble FM acknowledged the services in more than adequate measure in her speeches)
The above points are made not as a defence to cover up the poor RoE and RoA reported by PSBs, but only to point out that a considerable amount of time and money is spent by the officials in these banks to implement the policies framed by the government, to achieve inclusive growth in the society.
Saturday, February 20, 2021
What impact will the privatisation of public sector banks have on its employees?----------
Privatization
Its a fancy term. 90% of the people - parrot the word without understanding what it really means. To the Half Baked Mind - Privatization is a magic word, the equivalent of the world “Abracadabra”. Once you privatize an organization - growth will boom, development will boom, the organization will begin to manufacture quality products, the organizations employees will suddenly transform like Aladdins Lamp into business suit wearing corporate hot shots who can negotiate crore rupee deals and bring huge profits to any bank.
This myth has been perpetrated to hide and mask failures from time to time.
Air India is a failure. Why is it a failure? Because of the Governments absurd policies with respect to AVTUR Excise? Because of the Goverments stupidity not to raise public funds for Airports but instead to allow a bunch of rapacious private players to build airports have have them charge huge rents and docking fees? Because of the Governments refusal to accept a thoroughly fair wage settlement and retirement package in 2018 July when Modiji had not blown the countrys money in his nutcracker ventures?
No. They will say Air India is a failure because It is a Public Sector Industry. Privatize it and it will become the Father of “Emirates” and “Singapore Airlines”. They conveniently forget that Kingfisher and Jet both were Private Airlines that are completely and totally defunct.
As on date there is NO PRIVATE SECTOR PLAYER who dominates anything. They are all utter and total failures propped up on handouts from PSU Banks.
Our Own Mukeshbhai is selling piece by piece of his company to survive the constant burnouts in the share market and to pay off the huge debts that Jio has put him in to avoid taking the house next to Vijay Mallya and Nirav Modi.
Airtel and Vodafone are staring at unspeakable losses with Vodafone deciding that they may not last beyond 2020 December.
Our so called Private Players who want to take up the Ailing Public Sector Industries are virtually penniless. The Legendary Anand Mahindra, the Great Adani - are all huge borrowers of money from PSU banks and most of their loans are propped up by evergreening.
You want them to take over the Banks? WITH WHAT? Borrow money from SBI to take over IOB? Borrow money from ICICI to take over PNB? Pledge their inflated shares which are at least 40% inflated by Dalal Street Hawks to buy Shares in Banks which are bound to crash in weeks once the truth is known?
Do we have a Exxon or a JP Morgan who is trustworthy enough?
Now what is the Impact on Customers?
Higher Service Charges will be the first hit.
No More Jan Dhan Accounts or No Frills Account. The Private Players will tell Modi -”Nothin Doing”
Tremendous Conflict of Interest Loans. The Banks will happily lend to their owners other companies and hide the loans deeply and hide facts from shareholders. Without the Government - there is no neutral entity. The Private Player will ensure that all accounting systems are manipulated and he will ensure many loans to his friends and to his own loss making enterprises. He will use Public Money for his own disastrous ventures and his losses will be hidden deeply because (a) The Auditors can be purchased (b) There is no Govt Control to oversee any of these things.
Instead of Decent Branch Service - you will have a Helpline which will never be picked up except to say “Please Press 1” or “Please Press 2”
Utter Inefficiency. The moment the slightest losses are made - in Private Sector- Inefficiency starts. They will lay off staff , even essential ones until in the end Customer will be left hanging.
Now what is the Impact on the Staff?
Minimal. They will continue to do their jobs. They will be told to sanction specific loans at the risk of their jobs and they will mostly comply and kowtow.
They will find Private Players investing all money to dubious enterprises, flouting of RBI laws - all meant for protection of the Consumers but now being called “Anti Capitalist” resulting in Fifty More PMC Banks or Yes Bank Related Cases.
Finally the Biggest Question
HAS ANY COUNTRY HAD SUCH A GROUP OF MINISTERS IN CHARGE WHO ARE SET TO DESTROY THE COUNTRY PIECE BY PIECE WITH THEIR SHEER IMBECILITY?
ARE THESE PEOPLE AT THE CENTRE ALIENS WHO HAVE ABDUCTED MODIJI AND THE REST AND HAVE TAKEN THEIR FORMS???????
HOW CAN THEY NOT SEE THE SHEER IDIOCY OF THEIR IDEAS?
Strat talking to customers telling them how privatisation is for them and not for us.
We have taken another initiative we are talking to customers telling them how privatisation is for them and not for us. Also we are getting them to write letters that we will send to pmo and share on social media. They are....
Our branch is in the wholesale market from where the goods go to the entire MP. What have we done? We are also installing posters on the shops and vehicles of customers, on which it is written ′′ I am a common citizen, I do not have my property in private hands I oppose bank privatisation ′′
And also giving handwriting letters on which the disadvantages of privatization are written and one line is written ′′ Jago Gurubar Jago ′′
This will show people how wrong the government is doing...
You all are requested to try as much as possible at your level. There is a lot of fight right now which has to start from today itself...
Friday, February 19, 2021
Total deposits in the banking sector today is 146 lakh crore ...We cannot allow private hands to play with this huge public savings
Total deposits in the banking sector today is 146 lakh crore. This is hard-earned public savings. We cannot allow private hands to play with this huge public savings. Hence privatisation is a bad idea. If the Government is serious about economic development, public sector banks should be strengthened,” he added.
The United Forum of Bank Unions, the umbrella body of nine trade unions in the banking sector, has called for a strike on March 15 and 16 to protest against the Government’s decision to privatise two PSBs
The Government should strengthen public sector banks (PSBs) by helping them recover bad loans instead of privatising them, according to the All India Bank Employees’ Association (AIBEA).
“The only problem PSBs facing is bad loans. Most of the bad loans are due to the corporates and rich industrialists,” said CH Venkatachalam, General Secretary, AIBEA, in a statement.
He underscored that the Government should support PSBs, take action against the defaulting corporates and industrialists, and not privatise the banks.
“Many private sector banks have collapsed in our country. Last year YES Bank was in trouble, and through eight financial intermediaries, including State Bank of India, that bank was rescued.
Recently, Lakshmi Vilas Bank, another private sector bank, got into trouble, and it was given to a foreign bank. Hence, one cannot accept that private sector banks are very efficient,” said Venkatachalam.
The Association General Secretary observed that only public sector banks give loans to common people, poor people, agriculture, small-scale sectors, etc. Private banks help only the big corporates, he alleged.
“Public sector banks give permanent jobs to young unemployed. In private banks, it is only contract jobs.”
“Private banks will not open branches in rural areas. Only public sector banks have opened thousands of branches in the villages,” he said. He feared that if PSBs are privatised, rural branches will be closed in the name of cost-saving.
Thursday, February 18, 2021
Would you like your country's defences to be given to a Pvt Army in future? If not then why it is for PSU Bank?
Its not that the Bankers are afraid of doing Hard Work, not at all.
Its just because the Govt advertised vacancies in PSU Banks through IBPS, and the Bankers, opted to work in PSU Banks.
These are the same Bankers who implemented every Govt scheme, right from PMJDY, Aadhar DBT scheme, PMBIMA, MUDRA LOAN, DEMONETIZATION, COVID LOAN, apart from their normal banking work. These Bankers are the backbone of every Govt scheme implemented in India in past 6 years.
For IBPS examination, a minimum of 30 lakhs youth appear for some 3000 clerical posts and 15 lakhs appear for PO posts. Kindly check the rate of selection.. Its 0.1% and 0.06% respectively. Most of the Bankers wasted their youth, preparing for these exams and then working for the Bank and implementing all policies of Govt. They have worked hard and are the best in India who have qualified those exams and selected in a PSU Bank.
Now, many are shouldering responsibilities of their parents and family. Many have taken, long term home and vehicle loans and had made superannuation plans accordingly. How correct is it that you tweak with the structure of the Bank itself, in the midst of their careers? Isnt this a shocker to them?
If they had to work in a Pvt Bank only, why did they wasted their youth in preparing for Govt exams and then working in the Bank, handling Govt schemes? They would have simply given a walk-in job interview in a Pvt Bank and would have secured a job? Just focusing on niche, big customers, giving priority service etc etc.. Letting the poor and middle class man in this country, rotten to death.. And this poor and middle class, constitutes, 90% of India..
Working in Govt PSU Banks, is a National Service, just like working in the Army. As Army maintains security well being, these Bankers have maintained financial well-being of the country. Would you like your country's defences to be given to a Pvt Army in future? Think..
What banks privatisation would mean for govt, customers, shareholders
Some months back, NITI Aayog had recommended the privatisation of three public sector banks, namely Bank of Maharashtra (BoM), Indian Overseas Bank (IOB) and Punjab and Sindh Bank (P&S Bank). In her Budget speech, Finance Minister Nirmala Sitharaman announced that the government budgeted ₹1.75 lakh crore from stake sale in public sector companies and financial institutions, which includes two PSU banks. Though the Finance Minister did not give out the names of the two banks, they could be from these three. It would be the first time in the history of Indian banking that a public sector bank is being privatised.
Since these banks have unmanageable non-performing assets (NPAs, or loans and advances that are in default or arrears) and there are sufficient public sector banks in good shape, it is a wise decision to sell them off.
The total NPAs of IOB, P&S Bank and BoM stand at ₹19,912.70 crore (14.78 per cent of the bank’s loan portfolio), ₹8,874.57 crore (14.18 per cent) and ₹12,152.15 crore (13 per cent), respectively.
IOB, P&S Bank and BoM having Net NPAs (ie, after making provision from profit) of ₹6,602.80 crore, ₹4,684.15 crore and ₹4,145.38 crore and this comes to 5.44 per cent, 8.03 per cent and 5 per cent of their advances, respectively.
The business (deposits and advances) as on March 2020 were: IOB — ₹3,44,284 crore, P&S Bank — ₹1,48,078 crore and BoM — ₹2,36,921 crore.
As on February 1 2021, these banks had a market cap of ₹18,081 crore (IOB), ₹956 crore (P&SB) and ₹9,741 crore (BoM).
Implications of privatisation
The various stakeholders in a bank are its share-holders, customers and staff. All of them will bear the impact of privatisation.
Government as shareholder
When a bank is sold to a private entity, the government gets back its capital. The value of this capital depends on the market condition and the inherent strength of the bank like number of branches, customers, business mix, etc. In any case it cannot be less than the present market cap.
Once privatised, the government need not infuse further capital into these banks, which helps the government consolidate its fiscal position.
Government departments like the finance ministry, Central Vigilance Commission, etc, need not monitor and supervise these institutions, which saves manpower and money.
Since there are sufficient number of PSU banks in operation, there may not be any letup in implementing various government-sponsored schemes that require government banks.
Other shareholders
As the new acquirer is likely to run the bank more efficiently with enhanced capital infusion, the market may give better value and benefit private share-holders. Ultimately, the shareholder value will be based on performance. We have seen the performance of HDFC Bank as well as Yes Bank. So we have to wait and watch this development as it unfolds.
Bank customers
There may not be any immediate change for the bank customers. But in course of time, they may get better service and may also have to pay more charge for the services they avail. Various non-remunerative services like collection of water charges, power charges, disbursement of pension etc. may be stopped. The bank may offer more non-banking services like mutual fund, insurance etc. to increase revenue.
Though the customers deposit insurance, the comfort and reliability level with deposits in a government bank will be absent.
Bank employees
The bank, under a private management, may reward workers based on their performance and non-performers may not have job security. Performance will also be measured based on profit generated and will not be simply activity based. The role of labour unions may be undermined. Job reservations for Scheduled Caste and Scheduled Tribe candidates may eventually go as these are not applicable for private institutions.
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