(Note :- The entries posted here are the views of authors of the Entrires and not of the DRGB Officers' Organisation, the Organisation does not necessarily subscribe to these)
|Posted by drgorg on November 22, 2009 at 1:25 PM||comments (0)|
Latest News by SMS
UFBU is meeting on 26th November 2009 evening on issues related to Wage revision.
On 27th November 2009, a meeting between UFBU and IBA is proposed to be held to discuss the Wage Revision, It is highly likely that an MoU will be signed on wage revision on the same Evening and the new wage will be allowed to bankers if everything goes smooth as it is being predicted/ presumed.
The news is received over SMS from AIRRBOF Executive. It seems a good omen,
Wait and keep your fingers crossed for a Good news.
Keep waiting till then..
Have a nice time
|Posted by drgorg on November 18, 2009 at 12:17 PM||comments (0)|
ASSOCHAM Analysis Shows Banks Incerasing NPA
If Non-performing Assets (NPAs) and Capital Adequacy Ratio (CAR) reported by commercial banks are an indication of their financial strength, the second quarter results of Indian banking sector portray a mixed picture.
This is because the net non-performing assets have risen by an average 26 per cent while capital adequacy ratio improved by 1.60 percentage points in Q2 of current fiscal as compared to the corresponding period of previous year.
Improvement in CAR reflects better financial health of banks and Government recent move to recapitalize weak PSUs bank is a right move while increase in NPAs is a matter of concern as it directly affects the solvency and profitability of banks.
According to ASSOCHAM, the increase in NPA of the compared period should inspire Government to quickly move towards banks consolidation as it will bring down their risks and expand banks balance sheet size to global standard to take on emerging challenges in the financial sector, said ASSOCHAM President, Dr. Swati Piramal.
Solvency Analysis of Indian Banking Sector as carried out by ASSOCHAM reveals that on an average 26 per cent rise in net non performing assets (NPAs) have been registered by 21 public sector and commercial banks during the second quarter of the FY’10 as against Q2-FY’09.
The analysis of the Indian banking sector was based on the quarterly results posted by 21 Indian banks For a macro analysis, the total 21 banks included an aggregation of 19 public sector banks (PSBs) and 2 major private sector banks.
The aggregate net non-performing assets (NPA) of 21banks to Rs 25137 crore in second quarter of 2009-10 from Rs 19920crore in the same period of FY’09.
Moreover the RBI has increased general provisioning on Commercial real estate from 0.4% to 1.0 % on standard assets will drive the borrowing cost as well as additional provisioning. The slow credit growth is likely to impact further the bottom lines of banks. Therefore the banking sector is likely to see rough weather until the credit expansion takes a fast track.
Untill next time,
Wishing you a peaceful time
|Posted by Satyajit on November 11, 2009 at 12:22 PM||comments (1)|
Here is what we have heard..
Govt. of India advised NABARD to come up with actuarial calculation on cost of improvement in Pension Package in RRBs.
AIRRBOF vide its circular No. 86 has circulated that, (the full CIRCULAR IS available here on NOTIFICATION/ CIRCULARS page) JCC - Joint Consultative Council had its first meet on 9th Nov 2009 at NABARD HO in Mumbai.
Now it is heard that, The Govt has asked NABARD again during this meeting to come with ACTURIAL calculation on Pension expenses, if extended in RRBs. The Govt has aksed NABARD about his earlier also but the NABARD has not provided the same yet.
The Petition about pension in RRBs has been moved to Hon'ble Supreme Court on the Application of NABARD.
When We had joined the Bank, everyone said these Banks are not BANKS, or these will perish, but we have come so- Far, not only surviving all Odds but giving tough competition to the Commercial Banks with all the priviledges. we got a pay parity after a long fight.
Since we are now a profitable Institution and no one can imagine a single word of economy without our support, atleast in our country., WHY CAN'T WE GET WHAT WE FEEL IS OUR JUSTIFIED RIGHT..?
Hope for the Best
Have a wonderful time
|Posted by Satyajit on November 8, 2009 at 11:12 PM||comments (0)|
Friends, its said that Good or Bad events occure in seriese of three (3) so here are the 3 NEWS
The Growth in Loans saw a decrease in the latest fortnight ending October 23.Though the bankers are optimistic that the growth in the second half of the fiscal would be better than the first half, they have lowered theirtargets for the year. Taking this in to account- Union Bank of India decreased the loan growth target to 18-19% from25%, Bank of Baroda to 20% from 23-24% and Bank of India to 18% from20%. Amongst private banks, Axis Bank has lowered the credit growth from25% to less than 20% and ICICI is trying to manage it. For information Growth in non-food credit this year stood at 10.31% as against 29% in the previous year.
Government has deposited idle funds worth Rs 61,343 crore in its account with the Reserve Bank of India. The idle money with RBI has increased from Rs 12,837 crore in June 2009 to Rs 80,775 crore by the end-September, and has stayed over Rs 60,000 crore since then. The Government usually parks its idle funds with the central bank to maintain its Fiscal responsibilities and Budget Management (FRBM) targets to keep the fiscal deficit at a targeted level. As far as the market is concerned, the centre's blocking the funds by parking the surplus with the central bank would not impact the interest rates, as there is already huge surplus in the system.
It is heard that the Government has planned to make an amendment in the law regarding its stake in India's largest lender, State Bank of India (SBI), there by enabling the bank to raise funds(by selling the shares). Currently the Government is required to hold a minimum of 55 percent stake in the bank while It is holding 59.4 percent share in SBI, greater than what it is required to hold. The official sources revealed that the Government plans to introduce legislation in both the houses of parliament and obtain approval from the law makers when they reconvene on November 19 for the winter session. For Information -SBI posted a 10 percent hike in net interest income in the July-September quarter. This is attributed to income from bonds and currency trading. Treasury profits of the bank also increased 236% from Rs. 162 crore to Rs. 545crore, while gains from core fee income comprising commissions and brokerages rose 58 percent to Rs 2103 crore from Rs. 1331 the previous year.
NOW its up to you..to decide whether these are good NEWS or Bad
|Posted by drgorg on November 7, 2009 at 11:09 PM||comments (0)|
Meeting of UFBU in Chennai on 4-11-09
Exerpts from the Circular from AIBOC :-
A meeting of the UFBU was held on 4th November 2009 in Chennai. Com P. S. Pillai (President, BEFI) presided over the meeting.
The meeting took note of the negative approach of the Government in relation to the revised scheme of compassionate ground appointment/ financial compensation to the family of the employees dying in harness and felt that the scheme as discussed and finalized between UFBU and IBA should be got expedited.
As regards the condition of the IBA that the entire cost of pension arising out of the wage revision to be adjusted from the proposed wage revision and that in the next settlement again another actuarial valuation should be carried out and the gap should be funded by employees sharing the same, after detailed discussions, the UFBU while rejecting the above conditions, expressed its view that the additional pension cost can be adjusted by sharing a portion of the same as was done in the 7th and 8th bipartite wage revision.
Regarding IBA’s condition that a new contributory pension scheme should be accepted by the unions from 1-4-2010 as a pre-condition for extending one more option for pension scheme, the UFBU felt that a mutually acceptable solution should be worked out to resolve the same as unilateral imposition of such conditions are not acceptable.
Regarding IBA’s suggestion for introduction of the concept of fixed pay and variable pay for bank employees/officers, UFBU decided not to accept the proposal.
Based on the above, the meeting decided to pursue the issues with the IBA during the next round of talks to be held shortly and to expedite the conclusions as early as possible.
(Exerpts from the AIBOC Circular no. 83 dated 06-11-2009 already posted on www.drgorg.webs.com)
The UFBU also urged that.."speculations and rumours are being circulated here and there which are only adding to the anxieties of the membership. Hence UFBU appeals to all units and members not to fall a prey for such propaganda and close up the ranks at this crucial juncture when all attempts are being made by the UFBU to expedite the settlement."
Thats all for now
Wishing you all very pleasant time ahead.
|Posted by drgorg on November 5, 2009 at 11:35 PM||comments (0)|
After 12 years, credit grows in single digits
(News -Business Standard November 5, 2009)
For the first time since April 1997, growth in bank credit has dropped to single-digit levels, an indication that demand is yet to pick up.For the year up to October 23, bank credit flow grew by 9.65 per cent.This is the slowest pace of increase since April 25, 1997 when the growth rate was 9.61 per cent.
An year ago, as the global financial crisis sapped out liquidity,companies were forced to hunt for local sources of funding and pushedup overnight rates to over 20 per cent levels. On a year-on-year basis, credit grew at 29 per cent at the end of October 24, 2008.
What has also skewed the picture is the lower demand of funds fromoil and fertiliser companies. Last year, these companies had borrowed heavily with the government deferring subsidy payments on fuel prices.
Further, growth in retail loan flow has also been tepid with banks choosing to play it safe fearing delinquency. As a result, up to the end of August 2009, the latest period for which disaggregated data has been released by RBI, year-on-year growth in retail loans was 2.3 per cent. Within this, credit card outstandings and consumer durables finance,shrank as banks such as ICICI Bank, which was the largest player in the segment, remained largely dormant in the space.
Some like Abheek Barua, chief economist, HDFC Bank, felt the drop in credit growth is largely due to the base effect, though things have improved sequentially. “Disintermediation was bit of an issue; companies have been raising money abroad. But the fall in growth is largely due to the base effect. When the credit crisis kicked in, everyone switched to domestic sources of funds. So, there was spike in credit growth, and hence YoY, credit growth came down sharply,” he said.
Deposit mobilisation by banks fell by Rs 8,408 crore to Rs 41, 52,946 crore during the fortnight ended October 23. This was partly the result of lower interest rates. Around the same time last year, bank's interest were between 8.75 per cent and 10.5 per cent on deposits, which have now dropped to 6.25-7.5 percent.
Lower deposit mobilisation resulted in a Rs 24,703 crore decline in bank investment in government securities that qualify for meeting the statutory liquidity ratio (SLR).
Friends, think about our Bank in this perspective.
Wishing Happier tomorrows
Until next time
|Posted by drgorg on November 2, 2009 at 9:22 PM||comments (0)|
Matter of Bank Officers' salary revision to be settled soon :- AIBOC.
On Cotober 25th, 2009, K S Shetty, President , All India Bank Officers' Confederation (AIBOC) said the issue of salary revision of the bank officers would be settled shortly.
During the the 44th National Conference of the South Indian Bank Offciers' Association, Mr Shetty amidst his address to the conference, said the matter would be settled with pension as the second option.
Chairman of the Privilege Committee of theLok Sabha Mr. P C Chacko, who had inaugurated the Conference said, ''banks in India have been playing a pivotal role in improving the standard of living of people by implementing the social welfare schemes of the Centre.
Friends, Thats all I have on the matter of salay revision for now. It is clear from the above that, there has been no consent or agreement, whatsoever, on this issue from any party or Banks, as being rumored by some.
Please remain connected to your site, for latest updates on this matter and please dont waste your time on the rumors about sallary settlement /implementation by this or that bank
Wishing you all very happy times ahead.
Untill next time
|Posted by drgorg on October 30, 2009 at 12:22 PM||comments (0)|
Banks urged to convert crop loans to term loans
Business Standard October 30, 2009, 0:27 IST
Asan immediate step towards providing relief to the population affected by drought and floods, Andhra Pradesh chief minister K Rosaiah has urged banks to convert all the crop loans sanctioned up to September15, 2009, into term loans.
Since90 per cent of the mandals have been declared drought affected, all crop loans sanctioned have to be converted into term loans. After conversion, fresh crop loans also are to be given. Similar action is required to be taken in respect of flood-affected mandals and villagesin five districts.
Do we have to wait for someone to come and do the same for our Drought/ flood affected area.?
Express your views..
have a nice time
|Posted by drgorg on October 30, 2009 at 12:09 PM||comments (0)|
Allow banks to charge more for small loans: Nabard
At a time when the government is pushing banks to go for financial inclusion, the National Bank for Agriculture and Rural Development(NABARD) has suggested that banks be allowed to extend small credit at higher rates.(news in Business Standard 30-10-2009)
The Reserve Bank of India (RBI) should allow extension of micro credit at higher rates so that banks can at least meet their processing cost, according to Nabard Executive Director Prakash Bakshi.
Banks work on thin margins as RBI has mandated that no bank can charge more than the prime lending rate for loans up to Rs 200,000. On the other hand, microfinance institutions (MFIs) charge between 25 percent and 50 per cent, with their average lending rate hovering around30 per cent.
Bakshi said there should be a level-playing field between regional rural banks (RRBs) and MFIs, which are free to fix their lending rates.“MFIs are charging much more and nobody questions them. It is one policy intervention that is required immediately. You cannot force somebody to do business at 10 per cent when the cost is 15 per cent,”he said.
Bakshi said a 25 per cent rate was reasonable when recycling of activity was fast. But where economic activity took one year, like in agriculture, a lender could not charge such high rates, he said. “That is why the government is providing subsidy here.” He agreed there was a problem of over-lending in some pockets of southern India, with too much money chasing too few people. To build a relationship between clients and staff, Nabard has designed a training programme for not just the banking staff but also its messengers, peons and watchmen.
Now friends, when we are competing huge capital based banks like SBI who is alluring our clintele with lower rates and lower margin requirements, Is the NABARD suggestion correct.? or will it lead to further deterioration of RRB profitability.?
Your views and comments are welcome.
Wishing you a Better time ahead.
|Posted by drgorg on October 28, 2009 at 2:27 PM||comments (0)|
The Oriental Life Insurance Company, the first corporate entity in India offering life insurance coverage, was established in Calcutta in 1818 by Bipin Behari Dasgupta and others. Europeans in India were its primary target market, and it charged Indians heftier premiums. TheBombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider. Other insurance companies established in the pre-independence era included
The LIFE INSURANCE Act and the Provident Fund Act were passed in 1912,providing the first regulatory mechanisms in the Life Insurance industry. The Indian Insurance Companies Act of 1928 authorized the government to obtain statistical information from companies operating in both life and non-life insurance areas. The subsequent Insurance Act of 1938 brought stricter state control over an industry that had seen several financially unsound ventures fail. A bill was also introduced in the Legislative Assembly in 1944 to nationalize the insurance industry.
In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owners of private insurance companies. In the ensuing investigations, one of India's wealthiest businessmen, Ram Kishan Dalmia, owner of the Times of India newspaper, was sent to prison for two years. Eventually, the Parliament of India passed the Life Insurance of India Act on 19-06-1956, and the Life Insurance Corporation of India was created on 01-09-1956,by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services.Nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control overat least seventeen sectors of the economy, including the life insurance. The company began operations with 5 zonal offices, 33 divisional offices and 212 branch offices
Life insurance business has paid out Rs 57,500 crore in 2008-09 as claims of which death claim is estimated at around Rs 6,629 crore, according to SB Mathur, secretary general of Life Insurance Council, the official representative body of the domestic life insurers.
Private-sector life insurance companies have paid death claims worth over Rs 976 crore in 2008-09. Giving a synoptic view of the performance of the insurance sector in the past fiscal, Mathur’s analysis showed the sector had held up despite the financial meltdown.
(source financial express)
LIC owns the following subsidiaries:
Life Insurance Corporation of India International:
LIC Housing Finance:
LICHFL Care Homes
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Have a very wonderful time.