Deposits in Jan Dhan accounts cross Rs 30,000 crore as on 20.01.2016

Deposits in accounts opened under the government's flagship financial inclusion programme -- Pradhan Mantri Jan Dhan Yojana (PMJDY) -- have crossed the Rs 30,000 crore mark. 

As many as 20.38 crore bank accounts were opened under the PMJDY as on the January 20, as per the latest data available. 

These bank accounts had deposits of Rs 30,638.29 crore (about $4.5 billion). 

The accounts that can be opened under PMJDY are Basic Savings Bank Deposit Accounts (BSBDA) which can be of zero balance, as per RBI guidelines. 

As per the trends available, the percentage of accounts with 'Zero Balance' have actually shown a significant decline. Accounts with no balance in them were as high as 76.81 per cent of the total opened under the scheme as on September 30, 2015. They have come down to just about 32 per cent at the end of December. 

The Finance Ministry data further showed that 8.74 crore of the accounts were seeded with Aadhaar and 17.14 crore account holders were issued RuPay cards. 

The data further revealed that as on January 15, banks had offered 53.54 lakh account holders over-draft facility of which the sanction was issued for 27.56 lakh cases and 12.32 lakh account holders availed it. The total amount availed was Rs 166.7 crore. 

The OD is granted to an earning member of the family, with a condition that the account has been operated satisfactorily for at least 6 months. 

PMJDY, a national mission on financial inclusion, was announced by Prime Minister Narendra Modi in his Independence Day - 2014 speech and was formally launched by him on August 28, with the main objective of covering all households with at least one bank account per household in the country. 

 

Eight public sector banks (PSBs) that account for 34% of the banking system’s bad loans will face a litmus test on profitability

Eight public sector banks (PSBs) that account for 34% of the banking system’s bad loans will face a litmus test on profitability in the remainder of fiscal 2016 as they begin recognizing stressed assets and set aside money to cover the risk of default.

The Reserve Bank of India (RBI) has asked banks to clean up their books by March 2017—a process that will mean short-term pain for several banks.

At a series of meetings held in the last two months, the banking regulator took stock of asset quality across the sector and told banks to stop delaying recognition of visibly stressed assets.

This could push up bad loans for a number of banks and also lead to a jump in provisions when the third and fourth quarter earnings are reported. Most banks are still to declare earnings for the October-December period.

To be sure, some banks will fare better than others.

Bank of India, Central Bank of India, IDBI Bank Ltd, UCO Bank, United Bank of India (UBI), Dena Bank and Indian Overseas Bank (IOB) are seen as more vulnerable than others. Some 15-24% of their total loan book falls in the stressed asset category, which includes bad loans and restructured assets.

Bank of Maharashtra, whose proportion of restructured assets is not available, also has a relatively high gross non-performing assets (NPA) ratio at nearly 8%.

“Banks such as Central Bank of India, United Bank of India, and Bank of India (BoI) are more vulnerable than the others because of their low net interest income besides the exposure to large distressed groups. Bank of India is definitely vulnerable and could continue to report losses for at least two more quarters,” said Ashutosh Mishra, lead analyst-institutional equities (banks and non-bank financial companies) at Reliance Securities Ltd.

At the 39 listed banks, gross NPAs grew 26.87% to Rs.3.4 trillion for the September quarter, from Rs.2.68 trillion a year ago.

Across the banking sector, gross NPAs made up 5.1% of the loan book as of 30 September, according to RBI’s financial stability report released in December, which noted that the actual level of stressed assets (including restructured assets) was 11.3%.

As some of the restructured assets are downgraded into the bad loan category, banks will see gross NPAs rise even if overall stressed assets remain steady. The implication of this will be felt in terms of higher provisioning requirements for banks.

As per RBI rules, an account is classified as an NPA when payments are overdue for more than 90 days. Once this is done, banks need to set aside money to cover 25% of the loan amount in the first year. Assets restructured before March 2015 were attracting lower provisions of 5%.

Ashvin Parekh, managing partner, Ashvin Parekh Advisory Services LLP, said profitability will be a big challenge for public sector lenders due to the increased provisioning requirements. “Those who have been easy on provisioning will be impacted more,” said Parekh.

A number of banks considered vulnerable also have a provision coverage ratio of below 70%, which is considered to be a prudent level of provisions to maintain.

A relatively high proportion of corporate loans on the books of some of these banks could also prove to be troublesome since these loans tend to be chunky and tougher to recover than retail and small and medium enterprise loans.

For each of the eight banks mentioned above, the share of corporate loans in their total advances is over 50%.

“Banks having higher NPAs, more exposure to weak sectors such as steel would be more vulnerable. If most of the large cases have to be provided for, profits will be impacted,” said the executive director of a public sector bank seeking anonymity.

According to a 10 January report by Morgan Stanley, none of the large and highly leveraged corporate entities have been termed bad loan accounts as yet. RBI, too, in its financial stability report, pointed out that while the top 100 borrowers make up 18% of bank advances, they account for only 3% of bad loans.

“As the economy stays sluggish and collateral values are under pressure (property, commodity), we are likely to see another round of bad loan formation,” said Morgan Stanley, adding that it expects the proportion of stressed loans to rise by 8 percentage points by fiscal 2019.

Together, these concerns have pulled down banking stocks ahead of the earnings being reported.

The BSE Bankex, a measure of the performance of banking stocks, has fallen almost 11% since the start of January, compared with a 6.27% fall in the benchmark Sensex.

Only God can save the bank staff!

GRAVE MISTAKES COMMITTED IN TENTH BIPARTITE SETTLEMENT

1. Out of 15% agreed increase in salaries, only 2% was allocated to Basic Pay.
2. A new hybrid allowance called ‘Special Allowance’ of 7.75% to 11% was introduced. But, it will rank only for D.A. and not anything else. This was the big game spoiler. This the first step of the fraud.
3. D.A. was merged at 4440 points, instead of 4876 points. This resulted in a lower Basic Pay, with the loss being 16.35%. This is the second step of the fraud.
4. Due to merger of D.A. at a lower level and the fixing of additional load at 2%, which was never heard of in the history of any wage revision, in any industry in the past, the revised Basic Pay took a huge hit. This was the last straw on the camel’s back.
5. Thus, a huge fraud was committed in the new Basic Pay.
6. It heavily impacted the new DA, HRA, CCA and Gross Salary.
7. In view of the poor increase in Basic Pay, revised pension came down, as against the present figure.
8. Furthermore, other superannuation benefits like Gratuity, PF, Leave Encashment and Commutation of pension, also got reduced drastically.
9. In fact, this terribly disappointing pay revision is going to severely affect the revised pay scales, at the time of every wage revision in future.
10. Thus, the grave mistakes committed in 10th BPS will perpetually affect the interests of all bank staff – regardless of one’s cadre/grade – leaving no room for making any amends in the near future.

Only God can save the bank staff!

pannvalan

PAY SCALE CHART BANK VS LIC COMPARISION

DO YOU WANT TO SEE THIS PICTURE AGAIN DURING 11TH BPS..!!!!! '

DO YOU WANT TO SEE THIS PICTURE AGAIN DURING 11TH BPS..!!!!! ''

Basic comparision Bank Staff vs Lic employee ....See where the Bankers stand.......

First of all, congratulations to our brothers of LIC and leaders of LIC trade union. They were able to achieve their genuine and reasonable demands unlike us, bankers.

It seems govenment issued advisory to heads of public sector banks to commence negotiations for upcoming eleventh bipartite and to conclude it before due date, after seeing the LIC payscales.

We think that advisory is only issued to diverge the bankers resentment which will definitely arose when they will see LIC's wage revision and Seventh Pay Commission report.

Bank leaders, if you still have conscience, reopen tenth bipartite and achieve what you didn't fetched. Otherwise, resign from your post and let others to fight for the same. **

► Bankers here's basic comparision

Tenth Bipartite due from: 01/11/2012

LIC's wage revision due date: 01/08/2012

→ Bank Sub-staff: 9550 - 23130

LIC's Drivers: 13380 - 26450
LIC's Sepoy, Hamals, Head Peons: 11660-22150
LIC's Sweepers: 11060-21075

** Bank leaders will feel glad to know that starting basic of bank clerk (12th Pass) is Rs 11,765. **

→ Bank Clerk: 11765 - 40710

LIC's Higher Grade Assistants: 21,655-50140
LIC's Stenographers: 18135 - 44910
LICs Assistants, Cashiers: 14435 - 40080
LICs Record Clerks: 13380 - 29785

→ Bank's Scale 1 Officer: 23700 - 51490
LIC's AAO, Assistant Enginner: 32975 - 62315

Bank's Scale 2 Officer: 31705 - 57330
LIC's AO: 44065 - 65805

Bank's Scale 3 Officer: 42020 - 58790
LIC's ADM: 53725 - 75005

Bank's Scale 4 Officer: 50030-60820
LIC's Divisional Managers: 65805-86505

Bank's Scale 5 Officer: 59170 - 66070
LIC's Deputy Zonal Managers, SDM: 79605 - 102045

Bank's Scale VI Officer: 68680 - 76520
LIC's Zonal Managers: 89095-110575

→ DA based on 1960=100 formula. 0.10 for every four points in the quarterly average of AICPI

→ HRA: 10%, 8%, 7% maximum of Rs 5320, Rs 4490 and Rs 4320 respectively

→ CCA: 3%, 2.5%, 2% maximum of Rs 1330, Rs 1265 and R s 980 respectively

See where the Bankers stand.......

we bank employees are betrayed by the Government. ( Difference of Rs.10,000/- in gross salary with LIC

But just we have analyzed what will be the real salary of an AAO  lic equivalent to our P O.   Shocking results we came to know how we bank employees are betrayed by the Government. ( Difference of Rs.10,000/- in gross salary )

lic	AAO SALARY	P O SALARY		AO  SALARY	SCALE II
BASIC	32795	23700		44065	31705
DA	10855.14	9432.6		14585.52	12618.59
HRA	3279.5	2133		4406.5	2853.45
SPECIAL PAY		2567.77			3435.06
CCA	983.85	870		1324.95	870
TOTAL	47913.49	38703.37		64381.965	51482.1