State Bank officers’ body supports merger

State Bank officers’ body supports merger-The Hindu Business Line-  16th June 2016

Coimbatore, June 16:   

A day after the Cabinet gave its nod for the merger of five associate banks and Bharatiya Mahila Bank with State Bank of India, President of All India State Bank Officers’ Federation (AISBOF) D Thomas Franco Rajendra Dev said, “The Federation supports the acquisition by the parent.”

“We never wanted cross-merger for in it (cross-merger) we believed that we would be creating competition amongst us. Only the All India Bank Employees’ Association (AIBEA) was demanding the cross-merger of associate banks into one entity. We had always maintained that there was no need for merging the associate banks with SBI. Now it has been forced on us,” he told this correspondent. The Federation has formed three committees to discuss the various post-merger issues such as human resource (planning), possible closure of branches and ways to integrate the associations.

Committees’ meeting

“The committees met on Tuesday at Mumbai; held a discussion with the SBI Chairperson as well. We expect some quick follow up,” Rajendra Dev said adding, “only by next year, will things really happen.”

Sharing some of the suggestions, he said, “Instead of closing branches located in close proximity, the bank can consider converting some into specialised branches. This would help redeploy the staff as well.”

To The Hindu Business Line

Bank employees oppose move to merge with SBI

Bank employees oppose move to merge with SBI-News in THE HINDU on 16th June 2016

Employees of five associate banks have decided to observe a nation-wide strike on July 12 and July 13, opposing the recent decision of the Cabinet to merge them with the State Bank of India. A decision to this effect was taken at a meeting of office bearers of All India Bank Employees’ Association (AIBEA) held in Chennai. AIBEA General Secretary C.H. Venkatachalam said it was decided that a strike would be observed by the employees of associate banks on July 12, followed by all banks on July 13. The strike call has been given by AIBEA and All India Bank Officers Association. On June 30, there will be protests in the State capitals. After the strike, an emergency meeting of AIBEA and AIBOA will be held. Also, United Forum of Bank Unions has given a call for strike on July 29 against banking reforms and labour reforms. 

Link to The Hindu

Expected DA Slabs for the Month of Aug'16 to Oct'16 for Banker

 The tentative percentage of increase in DA is 1.70% for the month of Aug'16 - Oct'16. The total tentatively revised DA slabs would be 437 on assumptions as above for this period and total percentage of DA payable on pre-revised pay would be 43.70%

on 31.05.2016, CPI for the month Apr'16 announced as 6185.82. On assumptions that CPI data would remain at least the same as of Apr'16 for the next two months i.e. for May'16 & Jun'16 in that situation the expected (tentatively) increase in DA Slabs comes to 17 slabs for the month of Aug'16 - Oct'16, the expected DA payable in terms of percentage is as under 

Media reports substantial pay hike for central employees

Govt employees to get  hiked salary from August, arrears in one installment ahead of Dusshera

 The central government employees and pensioners are likely to get their 6 months of arrears just ahead of the Dusshera festival in October.

As per media report, increased salary of July will be credited to the 47 lakh central government employees and 52 lakh pensioners' accounts on August 1, 2016. But the arrears of last 6 months will be credited in one installment ahead of the Dusshera in October.

As per sources, the Empowered Committee of Secretaries headed by the Cabinet Secretary Pradeep Kumar Sinha has recommended a 30 percent increase in minimum and maximum basic pay structures along with doubling of existing rates of allowances and advances.

The 7th Pay Commission had suggested a maximum basic pay of Rs 2,50,000 and a minimum of Rs 18,000. A 30 percent increase would translate into maximum salary of Rs 3,25,000 and minimum at Rs 23,400, respectively.

Arundhati Bhattacharya to replace Raghuram Rajan as RBI Governor?

 Narendra Modi government is apparently not on the same page with Reserve Bank of India (RBI) Governor Raghuram Rajan. Even before his term ends in September, the far-right voices within Bharatiya Janata Party (BJP) have demanded the expulsion of Rajan, accusing his policies for the slow employment rate in the nation. According to rumours doing the round within the nation’s financial circles, Centre has found a replacement for Rajan. Arundhati Bhattacharya, the first female chairperson of State Bank of India (SBI), is likely to be elevated to the post of RBI Governor in September.

Bhattacharya is the arguably the most influential woman banker of the nation. With a working experience 36 years, she is one of the most extinguished domestic bankers, who could be considered for the top job at RBI.

Financial pundits have credited Bhattacharya for revamping the SBI ever since she took over the banking operations of the public institution in October 2013. For her exemplary performance in the past three years, the 60-year-old was listed as the 25th most powerful female in the world by Forbes. She has made into the most influential list of the magazine for two consecutive years. Apart from the recognition she earned from Forbes, Bhattacharya has been named as the fourth most influential woman of Asia by Fortune.

If Modi government ends up replacing Rajan with Bhattacharya, she would be the first woman to serve as RBI Governor. Although, no confirmation has been received regarding Rajan’s exit, the speculations of his removal received legitimacy to an extent when a prominent Bengali daily claimed that Rajan has himself conveyed to the government that he would like to vacate his post at the end of the term.

Cabinet Approves Merger Of Five Associate Banks With SBI

he Union Cabinet today gave an in-principle approval to a proposal for the merger of five associate banks with State Bank of India (SBI). But the proposal may come up for final clearance again as some legal issues need to be worked out. 

SBI has five associate banks - State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

"The country needs stronger banks rather than a large number of lenders," Finance Minister Arun Jaitley had said at the second edition of the Gyan Sangam meet held in March. 

Last month, SBI's board had submitted a proposal to the government for merging five associate banks.

"The idea to merge the five banks at the same time makes sense as they are on the same technology platform which the SBI has. That makes the task easy," a finance ministry source said. 

The merger will create a behemoth with an asset base of Rs 37 lakh crore, with 22,500 branches and nearly 60,000 ATMs. SBI alone has 16,500 branches including 199 offices in 36 countries. 

SBI had first merged State Bank of Saurashtra in 2008 and State Bank of Indore in 2010.  SBI had some time ago had set up a crack team to prepare for amalgamation of associate banks.

A SBI source said that if all goes well, the move can be completed within four to five months. 

Recently, Finance Minister Arun Jaitley had said that the centre is evaluating the merger proposal and will bring the move to the Cabinet soon "as the government supports consolidation, and this was part of my Budget speech". 

Mr Jaitley held a meeting with heads of public sector banks and financial institutions last week. 

The move is facing dissent from employee unions of banks. They had called for a strike on June 28 and 29 to protest against the move. 

The merger move is likely to meet political opposition as Left parties control the bank associations. Communist Party of India (CPI) general secretary S Sudhakar Reddy had announced recently that the Telangana assembly would pass a resolution opposing the amalgamation.

The Left Democratic Front (LDF) Kerala government too is under pressure because State Bank of Travancore is part of the merger exercise.

Adhoc Bonus for West Bengal employees

The amount of ad-hoc bonus, subject to maximum amount of Rs.3,400/- only.

"The undersigned is directed by order of the Governor to say that the Governor is pleased to decide that the State Government employees who are not covered by any of the productivity linked Bonus Scheme and whose revised emoluments did not exceed Rs.25,000/ – per month as on 31st March, 2016 will be entitled to ad-hoc bonus for the accounting year 2015-2016 at the rate of Rs.3,400/- per head. The upper eligibility ceiling of Rs.25,000/- p.m. ‘as on 31st March, 2016 will be applicable irrespective of whether the emoluments are drawn in the pre-revised or revised scale of pay or on fixed.’ consolidated contract pay."