Indian Oil posts Rs 329 crore net loss in Q2 on falling oil prices

Indian Oil on Tuesday reported a net loss of Rs 329 crore in the September quarter as margins squeezed on falling oil prices.

"This is compared to a net loss of Rs 898.46 crore in the same period a year ago," India Oil (IOC) said in a stock exchange filing.

Fall in oil price meant turnover dropped to Rs 85,384.81 crore in Q2 as opposed to Rs 111,663.81 crore a year ago.

IOC said all of its losses on sale of PDS kerosene and domestic LPG at government controlled rates were made good.

Suresh N Patel is new MD & CEO of Andhra Bank from oriental bank of commerce ED

Suresh N Patel has assumed charge as Managing Director and CEO of Andhra Bank.

According to a release issued here, Patel assumed charge in New Delhi on Monday.

Patel, who had started his career in banking as an agricultural officer in Dena Bank in 1981, had earlier served as executive director of Oriental Bank of Commerce and has diverse experience in various roles.

A graduate in science and law, he is also a certified member of Indian Institute of Bankers. 

Finance Ministry makes 4 CEO-level appointments at public sector banks

The Finance Ministry has appointed new chief executives in four public sector banks.

Mahesh Kumar Jain, currently executive director at Indian Bank, has been elevated as Managing Director & CEO of the bank. He has been appointed for a period of three years.

The Finance Ministry has also appointed Suresh N Patel as Managing Director & Chief Executive Officer (CEO) of Andhra Bank. Prior to this appointment, Patel was an executive director at Oriental Bank of Commerce (OBC).

Ravi Krishan Takkar, who was executive director at Dena Bank, has now been appointed as Managing Director & CEO of UCO Bank for a period of three years.

The Finance Ministry has also appointed Jai Kumar Garg, Executive Director at UCO Bank, as MD & CEO of Corporation Bank. Garg will assume charge on or after February 1 next year.

Indian Overseas Bank and Bank of India look particularly weak-report by Moody's Investors Service

Global rating agency Fitch on Tuesday said the asset ratio of banks may improve marginally to 10.9 in fiscal year 2015-16 from 11.1 per cent clocked in the last fiscal year.

"The non performing loan growth will slow down further with cyclical recovery, but a moderate pick-up in loan growth may provide support," said rating firm.

Fitch's view follows Moody's Investors Service 's move to revise its outlook on banks to "stable" from "negative".

However, Fitch believes non-performing loan (NPL) recoveries will be time-consuming.

"Most state banks are at a risk of some core capital impairment under the agency's stress test. Indian Overseas Bank and Bank of India look particularly weak," added rating agency.

Performance of large private banks is significantly superior despite recent asset-quality pressures, said Fitch.

Meanwhile, Bank Nifty, NSE index for banking stocks, gained 0.5 per cent in trade on Tuesday.

What is going on in SBI Associate Banks?

*Imperial Bank vanished long back but imperialism of SBI management surfaces
*Open attack on service conditions of Associate Banks’ employees
*Rise as one man to resist the rampage, thwart the ravage
*AIBEA-SSBEA’s clarion call to defend our right of collective bargaining and hard-won service conditions *48 Hours/ 2 Days Strike in Associate Banks on 1st and 2nd , Dec. 2015
*Strike by AIBEA on 2nd Dec. 2015
*Indefinite Strike in Associate Banks by end of Dec. 2015 followed by indefinite strike in all Banks

**They want mergers – we want De-linking:
**Attack on Collective Bargaining:
**Our service conditions are not for sale:
**Attacks on trade union rights:
**Why deny legitimate demands:
**Compassionate ground appointments – Naked discrimination:
**Do not foist SBI’s Career Progression Policy on Associate Banks:
**Why we do not accept SBI Career Progression Policy ?
• Increase in working hours by one hour ( 39 hours to 45 hours)
• 7 day banking, shift system and round the clock banking
• Outsourcing all manual jobs like sweepers, peons
• Increased passing powers for Clerical staff at par with officers
• Periodical transfers in clerical/substaff cadre every 3 years like officers and posting only rural/semi-urban centers

**SBI is not the owner of Associate Banks:
**Down with SBI imperialism:

Why Associate Banks' Award staff on war path.....
"Text of AIBEA’s Letter to IBA: 
Reg: Attempts at violation of 10th BP Settlement by the management of State Bank of India by coercing Associate Banks to extend SBI service conditions in the matter of duties and quantum of Special Pay 
We wish draw your urgent attention to the following serious development which is a matter of grave concern for us and expect the same from the side of IBA also as both of us are parties to the Settlement mutually binding on both the sides. 
Clause 11 of the Settlement deals with Special Pay applicable to Banks other than State Bank of India and Part A in Schedule II deals with the revised amount of Special Pay payable to the employees. 
Clause 11(ii) provides that General Rules regarding Special pay as contained in I BPS and amended from time to time shall continue to apply.
Clause 11 (v) permits State Bank of India (only State Bank of India ) to review and settle the rates of special pay and duties at their bank level. 
Clause 39 provides special compensatory provisions in respect of SBI ( only in SBI ) to be reviewed and settled at their Bank level. 
The above provisions of the Settlement clearly mean and imply that the Special Pay rates and duties in all other Banks will be as provided therein and cannot be altered and amended by them at their Bank level. It would be recalled that during the negotiations for the 10th BPS, the IBA raised the issue of rationalisation of Special Pay and desired enhancement in duties. From the side of the unions, it was indicated that the duties can be revised and expanded if the rates of Special Pay are also upwardly revised commensurately. However, IBA did not insist on any change in the duties and powers of Special pay posts and accordingly the Settlement was signed. Even the SBI representative in the negotiation Committee of the IBA did not suggest any special provisions for Associate Banks on the lines of SBI. 
All the Associate Banks viz. SBT, SBM, SBH, SBP and SBBJ, are party to the Settlement and are bound by the provisions of the Settlement. They had given clear mandate to the IBA to negotiate and settle on behalf of their Banks and hence the Settlement is fully binding on them. 
But it is disturbing to learn that the managements of the Associate Banks, at the instance of SBI, are attempting to change the duties and rate of Special pay in deviation and violation of the provisions contained in the Settlement. This cannot be countenanced or permitted. 
It is further understood that the SBI management is forcing the Associate Banks to adopt the Special Pay duties as are applicable in SBI. While the Settlement provides for separate dispensation in the case of SBI, the same leverage is not available to any other Bank including the Associate Banks. 
The attempt on the part of the SBI and Associate Banks to violate the provisions of 10th BPS is viewed seriously by us and we urge upon the IBA to intervene to advise the Associate Banks/SBI not to indulge in such illegal decisions. 
We wish to put the IBA on notice that should the SBI/Associate Banks choose to proceed in the matter as above by violating the Settlement, AIBEA would be constrained to re-open the entire Settlement and also compelled to combat the violations through all remedies available to us including direct actions. 
We hope that IBA would not push us to the wall. "

Have launched schemes to boost MSME sector"

The National Democratic Alliance (NDA) government at the Centre has put a lot of emphasis on privately-owned small businesses and are trying to introduce new schemes and programmes to help and assist entrepreneurs. Union Minister for Micro, Small and Medium Enterprises Kalraj Mishra tells Business Today's Anilesh S. Mahajan why this sector remains at the core of Prime Minister Narendra Modi's Make In India initiative and how it could change the employment landscape of India over the next few years. Excerpts:

Q- Time and again, Prime Minister Narendra Modi has talked about the need to create more jobs, and the role of MSMEs in achieving this goal. After more than a year in office how far have you succeeded in overcoming the hurdles?

A- The most common complaints from entrepreneurs have been limited access to capital, power, and delays in clearances related to pollution, environment, labour, etc. We were aware of these problems and have devised several schemes and programmes to address such issues, including the credit, infrastructure, technology and marketing needs of start-ups. Some of the important steps we have taken in the last one year include the launch of several schemes such as the Credit Guarantee Scheme (CGS), Credit-linked Capital Subsidy Scheme (CLCSS), Cluster Development Programme (CDP) and the National Manufacturing Competitiveness Programme (NMCP). We are also talking to various stakeholders, including other central ministries, state governments, and private and public banks, to streamline the mechanism of granting loans, and simplifying labour laws and other related procedures to facilitate the setting up of these small businesses.

Q- What is the objective of the Credit Guarantee Fund Trust (CGFT) established by the MSME ministry? How can a small entrepreneur get the benefit?

A- Availability of bank credit without the hassles of collaterals and third-party guarantees is a major step towards supporting first-generation entrepreneurs and help them realise their dreams of setting up a business of their own. The CGS strengthens the credit delivery system and facilitates flow of credit to the MSME sector. To operationalise the scheme, we, along with Small Industries Development Bank of India (SIDBI), set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). For obtaining a collateral-free loan, new or existing MSMEs engaged in the manufacturing and services sectors - excluding retail trade, educational institutions, agriculture, self-help groups, and training institutions - should approach banks or other financial institutions that are member lending institutions (MLIs) of CGTMSE. The MLIs will use their commercial discretion and after due diligence would say whether a proposal is viable or not. Thereafter, they can seek guarantee cover from the CGTMSE and if the proposal satisfies the basic norms laid down under the CGS, the CGTMSE will extend the cover.

Q- In the last Budget, Finance Minister Arun Jaitley had introduced the National Infrastructure Investment Fund (NIIF) with a mandate to invest in equities of infrastructure companies. Can we see a similar fund to give equity support to MSMEs?

A- SIDBI has launched the Make in India Soft Loan Fund for Micro, Small and Medium Enterprises (SMILE) on August 18, 2015. The objective of the scheme is to provide soft loans, in the nature of quasi-equity, and term loans on relatively soft terms to MSMEs to meet the required debt-equity ratio for establishment of an MSME and for pursuing opportunities for growth of existing MSMEs.

Q- Experts say social sector schemes, such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS), should be extended to SMEs, especially those in the rural sector or catering to the rural sector. What are your thoughts?

A- There are no such plans at the government level. The Ministry of Rural Development is working on MNREGS. If they ask for our inputs we will give. At present, the scheme does not allow spending for the MSME segment.

Q- What have you done to encourage agri-based businesses. How will food parks benefit MSMEs?

A- We have started two programmes to encourage agro-based entrepreneurs - ASPIRE (A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship) and PMEGP (Prime Minister's Employment Generation Programme). ASPIRE was launched in March to set up a network of technology centres and incubation centres to accelerate entrepreneurship and to promote start-ups for innovation and entrepreneurship in agro-industry, with a total outlay of Rs 210 crore. It envisages setting up of livelihood business incubators, technology business incubators and assists start-ups by giving credit through the fund of funds managed by SIDBI for agri-based food parks.

PMEGP is a major credit-linked subsidy programme implemented by the MSME ministry. It is aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth. General category beneficiaries can get margin money subsidy of 25 per cent of the project cost in rural areas and 15 per cent in urban areas. For beneficiaries of special categories, such as scheduled caste, scheduled tribe, and women, the margin money subsidy is 35 per cent in rural areas and 25 per cent in urban areas. The maximum cost of projects is Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the services sector.

Q- What is the ministry doing to encourage India's traditional cottage industries?

A- The ministry's SFURTI (Scheme of Fund for Regeneration of Traditional Industries) scheme is aimed at enhancing competitiveness of traditional khadi and village industries, including cottage industries, through replacement of equipment, providing them with common facilities, product development, and other support services. It also strengthens cluster governance for their sustainability. It was launched in 2005/06. The scheme has now been revamped and from June and 13 clusters have been accorded in-principle approval, while 17 clusters have got final approval.

Q- The ministry has skill mapped over 600 districts in India. What is the objective? How will this help small entrepreneurs?

A- The objective behind skill mapping of 640 districts across 36 states and Union Territories is to develop a database on the industry clusters, products of these clusters, skill development needs according to the products manufactured, the name of suggested training programmes, including duration, number of institutions capable of giving that training in the area, the training capacity of these training institutes annually, total capacity of clusters to give employment to trained persons, list of engineering colleges, polytechnics, ITIs both in government and private sector, and courses, intake capacity and machinery available. Small entrepreneurs can plan their requirements for skilled manpower and the training provider can organise skill development programmes. This will ensure availability of skilled personnel in the small scale sector at the district level.

"The SFURTI scheme is aimed at enhancing competitiveness of traditional khadi and village industries"

Q- Is the ministry tying up with any private organisation to use this skill map?

A- We are working on it. Currently, industry associations are vetting skill mapping data.

Q- Is the ministry planning any initiative to increase skill development activities?

A- We are conducting skill development programmes for the entire value chain of manufacturing, starting from village industries to state-of-the-art manufacturing sectors, such as engineering and auto components, among several others. We have set a target of training 1.5 crore youth by 2022. During 2014/15, we have trained 8.37 lakh persons. The 18 tool rooms and technology development centres under the ministry are providing both long- and short-term training to more than one lakh youth at present. However, the present training capacity is much less than that required for making our MSMEs globally competitive. Fifteen new tool rooms are being set up with assistance from World Bank during the 12th Five Year Plan.

Q- What steps has the ministry taken to make it easier for small entrepreneurs to operate?

A- We are implementing a number of schemes and programmes for the benefit of the MSME sector and facilitating the promotion and development by giving access to credit, infrastructure development and technology upgradation, etc. Apart from the major schemes mentioned earlier, the Prime Minister's Employment Generation Programme is also key to the ministrys scheme of things. We have recently launched a web portal Digital Employment Exchange for industries. We have also launched various schemes for promotion of innovation, entrepreneurship and to provide help for the agro industry.

For ease of doing business, the requirements for micro, small and medium enterprises is very different from other large enterprises. Land, municipal services and building permissions are primarily state subjects. Registration of an enterprise through Entrepreneur Memorandum I (intention to set up) and Entrepreneur Memorandum II (actual commencement) was seen as a cumbersome process. We have tried to replace it with the Udyog Aadhaar Form, a one-page on-line filing system. This has also been suggested by various expert panels, including the K.V. Kamath Committee, that was appointed by the government recently.

20% Festival Bonus to Tamilnadu employees

20% Festival Bonus to Tamilnadu employees

Tamil Nadu government today announced a 20 per cent festival bonus for its 3.76 lakh employees. Chief Minister J Jayalalithaa announced bonus and ex-gratia to employees of Tamil Nadu Generation and Distribution Corporation LTD, state Transport undertakings, Tamil Nadu Civil Supplies Corporation, cooperative unions, Poompuhar Shipping Corporation and many others.

The government allotted Rs 242.41 crore for bonus and ex-gratia to 3,76,464 of its employees.

“The government’s said measure will help the public sector employees celebrate Deepavali in a grand manner,” Jayalalithaa said in a statement.