5 Day Banking Update: Govt may grant approval by end of this year

Bank employees have long been advocating for a five-day workweek, and there is growing optimism that their demand may soon be fulfilled. An agreement has already been signed between the Indian Banks’ Association (IBA) and the employees’ unions, proposing a two-day weekly off for bank employees. However, this agreement still requires government approval, which is expected to be granted by the end of 2024. If all goes as planned, bank employees may start working only five days a week by December.

This news is circulating all across the news websites but it has not been officially verified. Recently, General Secretary of All India Punjab National Bank Officers Federation had also posted on twitter regarding 5 day banking. He posted that 5 day banking proposal has been cleared by DFS and is pending at Prime Minister’s Office (PMO).

We are trying to verify this news as soon as possible and will provide you update on this at the earliest. Please join our whatsapp group to get instant updates on 5 day banking.

Assurance of Uninterrupted Customer Service

It is important to note that while bank employees may be working fewer days, the forum has assured that customer service hours will not be reduced. This is a crucial aspect to ensure that customers’ needs continue to be met effectively.

Agreement Details and Government Approval

In December 2023, a Memorandum of Understanding (MoU) was signed between the IBA and bank unions, encompassing both public and private banks. This MoU proposed a five-day workweek, pending government approval. Subsequently, on March 8, 2024, the IBA and bank unions signed the 9th joint note, which outlined a five-day workweek with Saturdays and Sundays off. While the IBA and bank unions are in agreement, the final decision rests with the government. The proposal will also be discussed with the Reserve Bank of India (RBI), which regulates banking hours and internal bank operations. At present, no official government timeline has been set for making a decision on this matter.

Expected Timeline and Recognition of Saturdays as Holidays

Some bank employees anticipate that the government notification approving the new working day arrangement will be issued either by the end of this year or early 2025. Once approved, Saturdays will be officially recognized as holidays under Section 25 of the Negotiable Instruments Act.

National Housing Bank Recruitment 2024, Check Eligibility, Vacancy and Apply

 

The National Housing Bank (NHB) is accepting online applications from eligible candidates for the positions of Project Finance Officer, Assistant Manager (Scale-I), and General Manager (Scale-VII). Interested candidates can apply for these posts on the official NHB website, nhb.org.in, until July 19, 2024.

National Housing Bank Recruitment 2024 Important Dates

Important Events	Dates
Commencement of on-line registration of application	29/06/2024
Closure of registration of application	19/07/2024
Closure for editing application details	19/07/2024
Last date for printing your application	03/08/2024
Online Fee Payment	29/06/2024 to 19/07/2024

National Housing Bank Recruitment 2024 Application Fee

• General / OBC / EWS : 850/-
• SC / ST : 175/-

NHB Vacancy 2024 Age Limit as on 01/07/2024

• Minimum Age : 21-60 Years (Post Wise)
• Maximum Age : 30-63 Years (Post Wise)
• For details, please check notification

NHB Vacancy 2024

Post Name	Total Post
Assistant Manager Scale I (Generalist)	18
Project Finance	01
AGM Credit	01
Dy Management Scale II Credit	03
Chief Economist	01
Senior Project Finance Officer	10
Project Finance Officer	12
Protocol Officer Delhi	01
Application Developer	01

NHB Vacancy 2024 Eligibility

Post Name	Eligibility
Assistant Manager Scale I (Generalist)	Generalist : Bachelor Degree in Any Stream with Minimum 60% Marks OR Master Degree in Any Subject with 55% Marks (SC/ST/PH Candidates 5% Relaxation)
Project Finance	Bachelor Degree in Any Stream with CA / ICAI / CFA / MBA and 15 Year Experience.More Eligibility Details Read Notification.
AGM Credit	Bachelor Degree in Any Stream with ICWAi / ICAI / CFA / MBA Finance and 10 Year Experience.More Eligibility Details Read Notification.
Dy Management Scale II Credit	Bachelor Degree in Any Stream with CA / ICWA / MBA Finance and 15 Year Experience.More Eligibility Details Read Notification.
Chief Economist	Master Degree in Economics with 15 Year ExperienceMore Eligibility Details Read Notification.
Senior Project Finance Officer	Bachelor Degree in Any Stream with CA / ICWA / MBA Finance and 15 Year Experience.More Eligibility Details Read Notification.
Project Finance Officer	Bachelor Degree in Any Stream with CA / ICWA / MBA Finance and 10 Year Experience.More Eligibility Details Read Notification.
Protocol Officer Delhi	Bachelor Degree in Any Stream (Retired Officer from RBI / PSB / FI)More Eligibility Details Read Notification.
Application Developer	B.E. (CS/IT)/B.Tech. (CS/IT)/MCA/MT

Govt Employees performance will be reviewed monthly and inefficient employees may be removed

The Department of Personnel and Training (DoPT) has issued new instructions requiring Public Sector Undertakings (PSUs) and Public Sector Banks (PSBs) to conduct periodic reviews of their employees and submit monthly reports. According to an Office Memorandum dated June 27, Central Ministries and Departments are directed to promptly identify employees eligible for review under Fundamental/Pension Rules and refer their cases to the Review Committee. Additionally, Ministries/Departments must instruct PSUs, Banks, Autonomous Institutions, and Statutory bodies under their administration to undertake these reviews.

The objective is to ensure that employees with questionable integrity or ineffective performance are not retained in government service. The DoPT emphasizes the submission of monthly reports detailing actions taken, due by the 15th of each month starting from July.

For Central Government officers and employees, the pre-mature retirement provision (Compulsory Retirement Scheme or CRS) is governed by Rule 56 J&I of Fundamental Rules for Group A, B, and C category, and Rule 48 of CCS Pension Rules for other government servants. This allows the government to retire employees prematurely in the public interest, typically after they turn 50/55 years or complete 30 years of service. The process includes a three-month notice period or equivalent pay and allowances. Review committees evaluate cases based on criteria such as integrity and effectiveness to recommend names for premature retirement

However, it remains unclear whether the same mechanisms apply uniformly to officers and employees across PSUs and banks. While PSUs conduct health check-ups for employees aged 50 years, it does not affect job continuity, according to a senior official from a prominent CPSE. Actions against officers or employees can be initiated at any time, unrelated to routine health assessments.

Similarly, a HR official from a major public sector bank mentioned health check-ups are conducted for employees completing 30 years or reaching 55 years, but these are not linked to retirement decisions. Employees involved in suspicious activities are typically not assigned sensitive postings.

As of now, officials from CPSEs and PSBs report they have not yet received specific instructions based on the new DoPT Office Memorandum.

PSU Banks brand value increased, Check ranking of all Banks and Top 10 Brands

Tata Group remains India’s most valuable brand, worth $28.6 billion, which is a 9% increase from last year. Following Tata, Infosys takes the second spot, while HDFC Group jumps to third place in Brand Value’s ‘India 100 2024 ranking. This report, created by Brand Value, evaluates over 250 Indian brands across different industries.

Structural reforms and regulatory improvements in the banking sector have enhanced the brand values of leading public sector banks.

• State Bank of India (SBI) retains its position as the second most valuable bank ranked in India, holding on to the “banker to every Indian” reputation and boasting a brand value of USD 6.9 billion.
• ICICI Bank made a significant leap with a 33% growth in brand value, reaching USD 4.5 billion.
• Among the fastest-growing Indian banking brands ranked are Indian Bank (brand value up 63% to USD 719 million), IndusInd Bank (brand value up 53% to USD 1.3 billion), Union Bank of India (brand value up 48% to USD 1.5 billion), and Punjab National Bank, which witnessed a 29% year-on-year growth (USD 1.4 billion).

Ranking of Banks as per Brand Value

• HDFC Group is ranked 3rd.
• SBI Group is ranked 6th.
• ICICI Bank is ranked 15th.
• Axis Bank is ranked 20th.
• Kotak Mahindra is ranked 23rd.
• Bank Of Baroda is ranked 25th.
• Punjab National Bank Group is ranked 28th.
• Union Bank of India is ranked 29th.
• Canara Bank is ranked 30th.
• IndusInd Bank is ranked 34th.
• Indian Bank is ranked 51st.
• Bank of India is ranked 52nd.
• Bandhan Bank is ranked 61st.
• IDBI Bank is ranked 68th.
• Federal Bank is ranked 69th.
• RBL Bank is ranked 85th.
• Indian Overseas Bank is ranked 93rd.
• As you can see in the data above, the brand value of banking sector in India has increased to 18.79%. Banks in India are posting good amount of profit and the performance has also increased over the years. Now let’s have a look at the highlights of Tata Group which has been ranked as number 1.
• Tata Group retains No.1 position with an impressive 9% growth in brand value (USD28.6 billion), Infosys ranks second & HDFC Group catapults to 3rd spot as most valuable Indian brand, propelled by its monumental merger with HDFC Ltd.   
• Taj continues to grow in stature as strongest Indian brand ranked with AAA+ brand strength rating.  
• Banking brands post impressive double-digit growth in brand value with Indian Bank, IndusInd Bank & Union Bank leading the pack.
• Telecoms sector achieves 61% growth in brand value, followed by Banking (26%) & Mining, Iron & Steel sectors recording 16% average growth. 
• Fastest growing Indian brands: Westside leads with 122% growth in brand value, ahead of Motherson (86%) & Sonata Software (83%).
• Tata Group leads with highest Sustainability Perceptions Value & HDFC Bank has highest positive gap value.

Great News Five days Banking coming Soon

*Great news for all bankers in India!*

_We have received confirmation from authentic sources that the Department of Financial Services (MoF) has approved the implementation of 5-day banking. This initiative is expected to roll out within a few weeks._

_We anticipate that the government's pro-banker measures will greatly benefit the nation. Formal communication on this matter will follow soon._

Comradely Yours,

_Ratneshwar Chaudhary_
_General Secretary - AIPSBOF_

Indian Overseas Bank Chief Manager sentenced to three years Jail

 In a fraud case, the former Chief Manager of Indian Overseas Bank’s Palayamkottai branch in Tirunelveli district has been sentenced to three years of rigorous imprisonment by the Second Additional District Court (CBI Cases) in Madurai. The case was filed by the CBI in 2010 against two individuals, G. Balasubramanian, the former Chief Manager of the bank, and a chartered accountant named R. Sundararaman. They were accused of conspiring to cheat the bank of ₹2.42 crore.

According to the investigation, Sundararaman applied for a small term loan, claiming that it was for his office automation, and submitted forged receipts to make it appear as if computers had been purchased. Despite being aware that the receipts were fake, Balasubramanian accepted them and approved the loan, disregarding the bank’s guidelines and regulations. As a result, the bank suffered a loss of ₹2.42 crore, while the accused gained wrongfully from the scheme.

The Second Additional District Judge (CBI Cases), S. Shunmugavel, handed down a three-year rigorous imprisonment sentence to Balasubramanian and also imposed a fine of ₹95,000. The other accused in the case passed away during the trial.

Female Bank Employee sexually assaulted by her colleague

Ghaziabad: In the Kotwali area, a distressing incident of sexual assault took place involving two bank employees. The incident occurred when one bank employee, Paramjeet, lured the other bank employee under the pretext of opening a new customer account. However, instead of taking her to customers’ homes, Paramjeet took her to a hotel where two of his friends, Dheeraj Kumar Singh and Adarsh, were waiting. The name of the victim and bank have not been revealed due to privacy concerns.

The Assault and Escape

Inside the hotel room, Paramjeet allegedly forced the victim to have sexual relations with Dheeraj. During this distressing situation, the victim managed to push all three assailants away and successfully escaped from the hotel. She immediately reported the incident to the bank management, seeking justice for the heinous act committed against her.

Lack of Action and Seeking Legal Intervention

Unfortunately, despite the victim’s complaint to the bank management, no action was taken against the accused bank employee and his friends. Determined to seek justice, the victim subsequently filed a complaint with the Indirapuram police. The police promptly registered a case and initiated a thorough investigation into the matter.

Ongoing Investigation

The Indirapuram police, under the guidance of ACP Swatantra Kumar Singh, are taking the matter seriously and conducting a comprehensive investigation. It is crucial to ensure that all parties involved are held accountable for their actions and that justice is served. The victim’s bravery in speaking up and reporting the incident is commendable. It is essential for society to create an environment where victims feel safe to come forward and for institutions to take immediate action against such heinous crimes.

AIBEA Chief demands nationalization of all private banks

AIBEA (All India Bank Employees Association) held meeting of private bank employees recently. In the meeting several demands were introduced. Next meeting is scheduled to be held on 9th and 10th November at Nainital. One of the most important demands includes the nationalization of all private banks. AIBEA General Secretary C.H.Venkatachalam has urged on social media platform X (formerly Twitter) to nationalize all private banks.

Currently, India has 12 public sector banks, and the government is considering privatizing some of them. Plans have already been announced to reduce the number of PSU banks to just 4 or 5. What are your thoughts on the AIBEA’s decision in this regard? Share your views in the comments below.

AIBEA Private Bank Employees Meeting

Kerala High Court Rules in Favor of Employee’s Freedom of Speech in WhatsApp Group

 The Kerala High Court recently made a significant ruling regarding an employee’s right to freedom of speech in the workplace. In a case involving an employee of Fertilisers and Chemicals Travancore Ltd. (FACT), the court declared that the employee’s messages in a private WhatsApp group expressing concerns about the company’s safety practices cannot be considered harmful to the company’s reputation.

Upholding the Right to Freedom of Speech

Justice Satish Ninan, who presided over the case, emphasized that charging the employee with harming the company’s reputation based on their messages infringes upon their right to freedom of speech, which is guaranteed under Article 19(1)(a) of the Indian Constitution. The court maintained that expressing concerns about safety should not be misconstrued as an intention to damage the company’s reputation.

Employee’s Concerns about Safety

The petitioner, an employee of FACT, had sent messages to a private WhatsApp group comprised of technicians from the company. These messages addressed safety concerns related to the handling of ammonia. However, during a company inquiry, the petitioner was accused of spreading false information and making defamatory statements that allegedly harmed the company’s reputation. The charge claimed that the petitioner’s messages could create the perception that the company has an unsafe working environment and may incite workers to protest against the company.

Mere Expression of Concern Cannot Be Considered Harmful

The court ruled that the mere expression of concern for safety cannot be grounds for charging an employee with harming the company’s reputation. The petitioner’s right to freedom of speech was deemed to have been infringed upon, leading the court to declare that the charge against the employee was not valid.

Lack of Formal Inquiry and Disciplinary Action

The petitioner argued that no formal inquiry was conducted before disciplinary action was taken against them. The punishment imposed on the petitioner was a “WARNING,” the lowest category of disciplinary action. However, the petitioner expressed concern that even a warning would negatively impact their service record and future career prospects.

No Admission of Guilt

The court clarified that the petitioner’s admission to sending the messages did not imply that they admitted to the messages being objectionable. The court emphasized that the petitioner’s apology should not be misconstrued as an admission of guilt. Therefore, the court held that there was no waiver of the necessity for a formal inquiry.

Unauthorized Entry Charge

Additionally, the petitioner was charged with unauthorized entry into the ammonia handling section of a division. The court noted that the petitioner had unambiguously admitted to this charge, and it acknowledged that such an entry would contravene safety rules.

No Interference with the Punishment Imposed

Lastly, the court stated that the company was not obligated to hold a hearing on the punishment imposed. Given that the petitioner was found guilty of one charge and the punishment was of the lowest category, the court saw no need to interfere with the disciplinary action.

In summary, the Kerala High Court’s ruling upholds the employee’s right to freedom of speech and emphasizes that expressing concerns about safety should not be considered harmful to a company’s reputation. The court also emphasized the importance of conducting a formal inquiry before imposing disciplinary action and clarified that an admission of certain charges does not imply guilt for all charges.

Rs.20,000 crore Bank Fraud, ED starts investigation

 The Enforcement Directorate (ED) conducted raids on June 20 at 35 different locations across Delhi-NCR, Mumbai, and Nagpur in connection with an alleged bank loan fraud involving the Amtek Group and its directors. The fraud is said to amount to over Rs 20,000 crore.

Details of the Raids

The raids were carried out on the Amtek Group and its directors, including Arvind Dham and Gautam Malhotra. They targeted approximately 35 business and residential premises in Delhi, Gurugram, Noida, Mumbai, and Nagpur.

Background of the Investigation

The investigation was triggered by a Central Bureau of Investigation (CBI) FIR against a group entity of Amtek, ACIL Limited, on allegations of a bank fraud of over Rs 20,000 crore. The fraud involved a number of listed companies that were eventually taken over in National Company Law Tribunal (NCLT) proceedings at a nominal price, resulting in minimal recovery for the consortium of banks.

The ED believes that the loan funds were siphoned off for investments in real estate, foreign ventures, and new ventures. The Amtek Group allegedly engaged in bogus sales, manipulated capital assets, debtors, and profits to obtain higher loans and avoid non-performing asset (NPA) classification. Additionally, assets worth thousands of crores were allegedly parked in the name of shell companies, and foreign assets were created. Money is believed to be still parked under new names through benami directors and shareholders.

Impact of the Fraud

According to sources, the fraud has caused a loss of approximately Rs 10,000 to Rs 15,000 crore to the exchequer.

Conclusion

The Enforcement Directorate conducted raids at multiple locations in Delhi-NCR, Mumbai, and Nagpur as part of an investigation into an alleged bank loan fraud involving the Amtek Group. The fraud is estimated to be over Rs 20,000 crore. The investigation was triggered by a CBI FIR, and the ED believes that loan funds were siphoned off for various purposes. The fraud has caused a significant loss to the exchequer.

Indian Money in Swiss Banks decreases by 70%, Check how much money is still in Swiss Banks

 According to annual data from Switzerland’s central bank, funds parked by Indian individuals and firms in Swiss banks decreased by 70% in 2023, reaching a four-year low of 1.04 billion Swiss Francs (Rs 9,771 crore). This decline marked the second consecutive year of decreasing aggregate funds of Indian clients with Swiss banks after reaching a 14-year high of CHF 3.83 billion in 2021. The decline was primarily driven by a sharp decrease in funds held through bonds, securities, and various other financial instruments. The data also showed a significant decline in the amount held in customer deposit accounts and funds held through other bank branches in India.

It’s important to note that these figures reported by banks to the Swiss National Bank (SNB) do not indicate the amount of alleged black money held by Indians in Switzerland. Additionally, these figures do not include funds held by Indians, NRIs, or others in Swiss banks under the names of third-country entities.

Breakdown of Funds and Total Liabilities

At the end of 2023, the total liabilities of Swiss banks towards their Indian clients amounted to CHF 1,039.8 million. This figure included CHF 310 million in customer deposits (down from CHF 394 million at the end of 2022), CHF 427 million held via other banks (down from CHF 1,110 million), CHF 10 million through fiduciaries or trusts (down from CHF 24 million), and CHF 302 million as other amounts due to customers in the form of bonds, securities, a

It’s worth mentioning that the total amount reached a record high of nearly 6.5 billion Swiss francs in 2006 and has mostly been on a downward path since then, with a few exceptions in 2011, 2013, 2017, 2020, and 2021.

Data from the Bank for International Settlement (BIS)

The Bank for International Settlement (BIS) provides data on deposits by Indian individuals in Swiss banks through its “locational banking statistics.” According to this data, there was a decline of nearly 25% in such funds during 2023, amounting to USD 70.6 million (Rs 663 crore). The funds had previously dropped by 18% in 2022 and over 8% in 2021, following a nearly 39% increase in 2020.

The BIS data takes into account deposits and loans of Indian non-bank clients of Swiss-domiciled banks. It showed an increase of 7% in 2019, following declines of 11% in 2018 and 44% in 2017. The peak amount recorded was over USD 2.3 billion (over ₹ 9,000 crore) at the end of 2007.

Meeting with IBA AND UFBU ON 15.06.2024 UPDATE

Dear friends As informed to you meeting was held today in the IBA office regarding 2 issues. Shri Rajneesh Karnataka Sir MD & CEO BOI

Shri B K Mishra Sir DMD SBI

Shri SL Jain Sir MD & CEO Indian Bank.

Shri Nidhu Saxena Sir MD & CEO BOM

Shri Gopal Bhagat Sir IBA

Shri Brajeshwari Sharma Sir IBA were present for the meeting.

 *Finalisation of the PLI Matrix* :-

Broad 8 parameters were finalised. CASA,NPA,SMA,Non interest income, Total business, profitability,ROA/ROE, and Government schemes.out of which 4-5 parameters can be finalized by individual Bank at its own level in their respective Board meeting.

Secondly a new bracket of 11 ranges from 5% to 15% were finalised (if your banks profit in fixed parameters is 8% you will get 8 days PLI if it's 14% it would be 14 days and so on ) which was not the case earlier as it was 5% 10% and 15% .Now this scheme will be applicable from 2023-24,  IBA will inform the 12 Banks accordingly, Banks would approve the same in their Board meeting and then release the amount.

 *Medical*scheme* few points were principally agreed. 

 *1.combined policy* for both employees and retirees to ensure less premium for retirees.

2.choice to be given to Banks if they wish to be a part of this policy or not

3.schemes are the same for all banks.

4 Float RFP after Banks    consent 

5 critical illness separate quotes for working employees. and the same medical scheme will be discussed in the next meeting in a few days time once mandate from all Banks is received.

What are the Expectations of Banking Industry from Newly Formed Modi Government?

With the formation of the new government and the assignment of ministries to Union Cabinet Ministers, the BFSI (Banking, Financial Services, and  Insurance) industry in India is eagerly voicing its expectations and industry needs from the newly formed government.

Expectations of Top Bankers in India

PSB Divestments: Top bankers in India are eagerly awaiting the government’s final view on the divestment of Public Sector Banks (PSBs). They hope for clarity on this matter, which will have a significant impact on the banking sector.

Fiscal Deficit and Interest Rates: Bankers expect the new government to take measures to lower the fiscal deficit and interest rates. Lowering the fiscal deficit will reduce the government’s borrowing program, thus freeing up more resources for lending to the private sector. It will also contribute to keeping interest rates lower.

Credit Growth for SMEs: Enhancing credit growth, especially for Small and Medium Enterprises (SMEs), is another expectation of the banking sector. Bankers believe that targeted credit schemes, risk mitigation strategies, and supportive policies can help boost credit growth in critical sectors of the economy.

Tax Benefits and Savings Growth: Bankers suggest that tax benefits, such as increasing savings in time deposits as part of income deductibles, can stimulate savings growth. These benefits will not only support individual savings but also help banks gather more deposits.

Financial Inclusion and Digital Infrastructure

Bankers emphasize the importance of the government’s support for various financial inclusion activities, particularly in aspirational districts. They believe that measures to enhance credit growth for SMEs and critical sectors of the economy, along with risk mitigation strategies and supportive policies, are necessary.

Additionally, continued investment in digital infrastructure is crucial for banks to better serve their customers and improve operational efficiency.

Boosting Consumption and Investments

Bankers expect the government to implement measures to boost consumption through tax breaks. They also suggest the introduction of schemes similar to the Production-Linked Incentive (PLI) for SMEs to encourage investments. Initiatives for ease of doing business, enhancing transparency, and promoting a business-friendly environment are also sought after by the banking fraternity.

Focus on Infrastructure, Rural Development, and Digitalization

Bankers emphasize the need for increased government spending on infrastructure and development projects, particularly in rural areas. They believe that this will not only contribute to economic growth but also ensure more equitable distribution of development benefits across the country.

Moreover, the continuation of the government’s digital push is deemed imperative. Expanding digital infrastructure and promoting digital literacy are seen as important steps towards modernizing the Indian economy and making it more resilient and globally competitive.

Other Expectations

Bankers also call for measures to boost consumption, maintain capital expenditure (capex) at the current rate, forge Free Trade Agreements (FTAs) to improve export growth, and focus on improving farm productivity in general.

Overall, the BFSI industry has high hopes for the newly formed government to address critical areas such as fiscal deficit, interest rates, credit growth, financial inclusion, digital infrastructure, consumption, investments, ease of doing business, and rural development. The industry believes that these measures will contribute to the overall growth and prosperity of the Indian economy.

Union Minister says BPCL privatization plan has been put on hold

Union Minister for Petroleum & Natural Gas, Hardeep Singh Puri, announced on Tuesday that the plans to privatize Bharat Petroleum Corporation Ltd (BPCL), a state-owned company, have been put on hold. Puri stated in an interview with BT TV that high revenue-earning public sector undertakings like BPCL should not be sold.

“BPCL has generated more profit in the first three quarters than the expected amount from the stake sale,” Puri said upon assuming charge of the Petroleum and Natural Gas ministry. In the first half of the financial year 2024, BPCL recorded a net profit of over Rs 19,000 crore.

During the third quarter of FY2024, BPCL’s consolidated net profit experienced an 82% surge, amounting to Rs 3,181.42 crore, compared to Rs 1,747.01 crore in the same period of FY23. The company’s revenue from operations in Q3 FY24 was Rs 1.30 lakh crore, slightly lower than the Rs 1.33 lakh crore from the previous year.

BPCL reported a consolidated net profit of Rs 4,789.57 crore for the fourth quarter of the financial year 2023-24, which marked a 30% decline from the previous year. In the same period last year, the profit was Rs 6,870.47 crore. The decrease in profit can be attributed to weakening margins and crude oil price volatility during the quarter. Additionally, BPCL’s revenue from operations declined marginally to Rs 1.32 lakh crore in the quarter ended March 31, compared to Rs 1.33 lakh crore in the previous year.

The privatization of BPCL, along with the privatization of Air India, was part of the NDA government’s disinvestment program in FY22. The government planned to sell its entire stake of 52.98% in BPCL, estimated to fetch Rs 45,000 crore in FY22. Expression of Interest (EoI) for the sale was invited in March 2020, with the process initially scheduled to be completed by March 2021.

Initially, global majors such as Saudi Aramco, Abu Dhabi National Oil Co, and Exxon Mobil showed interest in purchasing BPCL. However, none of them submitted initial bids to acquire the state-owned oil refiner.

Currently, BPCL is in the planning stages of establishing a new 12 million metric tonnes per annum (MMTPA) refinery in India, as reported by the Economic Times. The state-run oil marketing company is expected to invest around Rs 50,000 crore in the project and is currently evaluating potential locations in Andhra Pradesh, Uttar Pradesh, and Gujarat.

Over the next five years, BPCL aims to invest Rs 1.7 trillion in various sectors, including oil refining, fuel marketing, petrochemicals, and clean energy. This investment includes Rs 75,000 crore for refineries and petrochemicals, Rs 8,000 crore for pipelines, and over Rs 20,000 crore for marketing.

86% Employees not happy with their life in India: Report

According to the Gallup 2024 State of the Global Workplace report, only 14% of Indian employees feel they are “thriving” in life. This is in stark contrast to the global average of 34% of employees who feel the same way. The report examines the current state of employee mental health and wellbeing globally, and it classifies respondents into three categories of wellbeing: thriving, struggling, or suffering.

Classification of Wellbeing

Gallup classified respondents based on their life evaluation index, which takes into account their present life situation and outlook for the future. Here’s how they classified the respondents:

• Thriving: These are respondents who have a positive view of their present life situation, rating it 7 or higher, and also have a positive outlook for the next five years.
• Struggling: Respondents in this category have an uncertain or negative view of their present life situation, experience more daily stress and financial worries.
• Suffering: This category includes respondents who feel miserable in their present life situation (rating of 4 or below) and have a negative view of the future.

Employee Wellbeing in India

In India, only 14% of employees feel they are thriving, while the remaining 86% admit to struggling or suffering. This low percentage of thriving employees is not unique to India alone. In fact, the whole of South Asia reported the lowest percentage of thriving employees, with only 15% of respondents from the region classifying themselves as thriving. This is 19 percentage points lower than the global average.

Additional Findings from the Report

The Gallup report also revealed some interesting insights about employee wellbeing in India and South Asia as a whole:

• Daily Anger: 35% of respondents from India reported experiencing daily anger, which is higher than any other country in South Asia.
• Daily Stress: In terms of daily stress, India ranked lowest among South Asian countries, with only 32% of respondents experiencing daily stress. In comparison, Sri Lanka and Afghanistan reported higher percentages of daily stress at 62% and 58%, respectively.
• Employee Engagement: Despite the low percentage of employees feeling they are thriving, India maintained a high employee engagement rate of 32%, which is well above the global average of 23%.

These findings provide valuable insights into the state of employee wellbeing in India and South Asia, highlighting areas of opportunity for organizations and policymakers to focus on improving the overall wellbeing of their workforce.

- Adv

Bank Privatization: Can PM Modi privatize Banks after formation of coalition government?

The economic reforms in India have been closely tied to the Narendra Modi government, and this connection has been influenced by the elections. In recent months, the pace of economic reforms has slowed down due to the electoral process. The outcome of the elections has set the tone for the Modi regime, as it lost the majority mandate it previously enjoyed.

The Composition of the Modi Cabinet

Following the election results, Narendra Modi returned to Parliament as the Prime Minister for the third time. However, this time he led a diverse group of 71 ministerial colleagues from various political affiliations. This was necessary because the Bharatiya Janata Party (BJP) failed to secure a majority in the elections. As a result, the Modi Cabinet includes eleven ministers from non-BJP parties who have formed a coalition with the BJP under the National Democratic Alliance banner. Key BJP allies such as JDU, TDP, Shiv Sena, and LJP have secured ministerial berths, with the TDP and JD(U) being particularly crucial for maintaining the coalition.

The Onus of Economic Reforms on the New Leadership

With the new government in place, the responsibility for accelerating economic reforms now lies with the new leadership. To ensure a smooth transition, Nirmala Sitharaman has retained the position of the Finance Minister. In the banking sector, the government needs to focus on three key areas to drive larger reforms: insolvency law reforms, bank privatization, and fiscal consolidation to support effective monetary policy for managing inflation.

Challenges in the Bankruptcy Process and the Need for Effective Resolution

One crucial reform that needs attention is the fine-tuning of the bankruptcy process. While the Insolvency and Bankruptcy Code (IBC) has introduced a better mechanism for resolving bad loans, there are certain inefficiencies that need to be addressed. Factors such as litigations, dissenting creditors, and poor infrastructure have contributed to a slow resolution process. In the financial year 2023-24, recoveries through the IBC were only 32 percent, and creditors lost 68 percent of their claims. The resolution process also took much longer than the stipulated 330 days, with an average of 863 days. It is crucial to shorten the time taken for an efficient resolution process.

Importance of Fiscal Consolidation for Inflation Management

Fiscal consolidation is critical to support the central bank’s fight against inflation. The government needs to prioritize fiscal discipline and avoid excessive spending on populist measures, as it can disrupt the Reserve Bank of India’s (RBI) efforts to manage inflation. The RBI has been maintaining key lending rates for the eighth consecutive policy review, indicating the challenges it faces in containing inflation.

Prospects of Bank Privatization in the Modi Government

Bank privatization has been a challenging task and an unfulfilled promise in India. While previous governments have expressed intentions to dilute the government’s stake in public sector banks (PSBs), little progress has been made. The current government, however, is preparing to push for PSB privatization in 2024. However, political and cultural challenges remain significant obstacles to this endeavor.

Legacy Issues and Political Considerations in Bank Privatization

Privatizing PSBs involves addressing legacy issues and navigating political considerations. These banks are still heavily influenced by politicized employee trade unions, and they operate in a culture that differs from that of private banks. Moreover, bank privatization is a politically sensitive matter, as it involves regional interests and risks political backlash.

Improved Financial Health of Indian Banks

Despite the challenges, there are reasons to believe that bank privatization may have better prospects this time. Indian banks have improved their financial health in recent years. The gross non-performing assets ratio has declined to a multi-year low of 3.2 percent, and the net non-performing assets ratio has eased to 0.8 percent. The capital levels of scheduled commercial banks are also comfortable, as indicated by the capital-to-risk-weighted assets ratio and the common equity tier 1 ratio.

Overcoming Challenges for Successful Privatization

To successfully privatize PSBs, the government needs to address the dominance of employee unions and their opposition to privatization. Additionally, changing the bureaucratic culture within these banks and fostering a more professional and board-driven approach will be crucial. The government must demonstrate strong political will and resolve to follow through on privatization plans.

The First Union Budget and Clues for Privatization

The upcoming Union Budget, scheduled to be presented next month, may provide some clues about the government’s approach to bank privatization. It will be an important indicator of the government’s commitment to economic reforms and the privatization agenda.

PSU Banks hope improved PLI and Five Day Banking Under New Government

State-run banks in India are optimistic about receiving improved performance-linked incentives (PLI) for their employees under the new coalition government. Additionally, they are likely to advocate for a five-day banking week. Both bank unions and employee associations have been requesting a review of the current PLI scheme and approval for a shorter workweek. There is hope that the government will consider their demands and prompt the Indian Banks’ Association (IBA) to revise the existing structure.

The PLI was initially introduced in 2020 as part of the 11th Bipartite Agreement between the IBA, officers associations of banks, and employee unions. According to this agreement, bankers were eligible for a maximum of 15-days salary as PLI if the year-on-year growth exceeded 15%. However, there is a desire to modify certain parameters governing the PLI, such as basing the final settlement not solely on operating profit but also considering performance on other financial indicators.

Last year, the IBA secured an agreement with unions for the 12th bipartite wage hike settlement, which entailed a 17% increase in bankers’ salaries. This settlement will be in effect for the next five years, starting from November 1, 2022, and will result in an expenditure of ₹12,589 crore for 12 public sector banks (PSBs), including the State Bank of India.

While banks have made provisions for the PLI outgo according to the existing matrix, it has been decided that further discussions will be held to establish a revised PLI structure, and payments will be made accordingly. Additionally, the approval of the government will be required for the revised PLI.

In the recently concluded wage settlement between unions and the IBA, an agreement was reached on implementing a five-day banking week, contingent upon government approval. The cumulative profit of PSBs exceeded ₹1.4 lakh crore in the financial year ending in March 2024, marking a growth of 35%. The 12 PSBs together earned a net profit of ₹1,04,649 crore in 2022-23.

Last month, Finance Minister Nirmala Sitharaman stated that the government will continue taking decisive measures to strengthen and stabilize the banking system, ensuring that banks support India’s growth trajectory towards “Viksit Bharat” by 2047.

In a post on X, Sitharaman acknowledged that India’s banking sector has experienced a turnaround under the strong and decisive leadership of Prime Minister Narendra Modi. She further highlighted that the banking sector recently achieved a significant milestone by recording its highest-ever net profit of over ₹3 lakh crore

Female Bank Employee Murdered in Punjab for refusing marriage proposal

On Saturday morning in Mohali, Punjab, a woman employed in a bank was tragically murdered in broad daylight. The police suspect that it was a crime of passion. The accused, who has not been identified at this time, has been apprehended by the authorities.

The victim, identified as Baljinder Kaur, was a 31-year-old resident of Fatehpur Jattan village near Morinda town. She had been working at the bank in Phase-V for the past nine years.

According to the preliminary investigation, Baljinder Kaur arrived at the office in the morning via an autorickshaw. As she was walking towards her office, the accused, who was already present at the scene, attacked her multiple times with a sword, causing critical injuries.

Despite the attack taking place in a busy area, no one came to the woman’s rescue. Tragically, she was later pronounced dead at the civil hospital. The incident has resulted in a murder case being registered at Phase-1 police station. The investigation is ongoing, and further details will be provided as they become available.

Baljinder Kaur was attacked at 9:30 am when she was going to the office with her friends. The police arrested the perpetrator and took him for medical examination. The accused has been identified as 36-year-old Sukhchain Singh, a resident of Samrala. According to police, he killed the woman because she rejected his advances.