Connect with us

Business

Bank strike on December 26 against mergers, pay revision

The AIBEA and the NOBW are constituents of the UFBU.

Published

on

Bank strike

Chennai, Dec 1 : A day after the Indian Banks’ Association (IBA) raised its wage hike offer to 8 per cent from 6 per cent, the United Forum of Bank Unions (UFBU) on Saturday called a nationwide strike on December 26 against bank mergers and pay revision.

UFBU, the consortium of nine unions in the banking sector, is opposed to the merger of Bank of Baroda, Dena Bank and Vijaya Bank, the All India Bank Employees Association (AIBEA) and the National Organisation of Bank Workers (NOBW) said on Saturday.

The AIBEA and the NOBW are constituents of the UFBU.

“Merger is not a solution. It (merger of BoB, Dena and Vijaya banks) was a unilateral decision of the government. Views of other stakeholders like shareholders and employees should have been sought,” NOBW Vice President Ashwani Rana told IANS.

Rana said the government has been short-sighted as it can’t wish away non-performing (NPAs) assets through mergers. It is only destroying the public sector banks, which is one of the few remaining sectors that provide government jobs, he said.

On wages, the unions are demanding a hike of 25 per cent, increment for all bank employees under scale 1 to 7 (instead of IBA’s offer to only those employees in junior scale of 1 to 3) and rejection of the proposal to introduce variable pay.

“The offer of 8 per cent is well below our expectations. We were given 15 per cent hike in the 10th bipartite settlement that happened in 2015 but was due from 2012 and this settlement expired on October 30, 2017. Wage revision under the 11th settlement is due from November 1, 2017 and our demand is for a 25 per cent hike,” Rana said.

Though wage revision in state-run banks happens every five years, it may be difficult for them to raise wages substantially as high NPAs and losses have hurt the sector.

“We strongly reject the plan to introduce variable pay as it will be unfair to those employees who are posted at branches and cities where opportunities are less. There is no rationale for mimicking the private banks as we are into social banking. We are bound to implement all the government schemes unlike the private players,” Rana said.

With Christmas on December 25, the banks would effectively be closed for two days.

IANS

Business

Markets open on positive note

Published

on

Sensex Nifty Equity

Mumbai, Feb 20: The 30-scrip Sensitive Index (Sensex) on Wednesday opened on a positive note during the morning session of the trade.

The BSE Sensex opened at 35,564.93 before touching a high of 35,581.14 and a low of 35,520.21.

It was trading at 35,528.69 up by 176.08 points or 0.50 per cent from its Tuesday’s close at 35,352.61.

On the other hand, the broader 50-scrip Nifty at the National Stock Exchange (NSE) opened at 10,655.45 after closing at 10,604.35.

The Nifty is trading at 10,656.25 in the morning.

IANS

Continue Reading

Business

PF funds’ investment in IL&FS bonds have no government guarantee: Finance Ministry

Published

on

IL&FS Financial Service

New Delhi, Feb 19 (IANS) The provident and pension fund trusts that invested in the IL&FS bonds now fear loss of money as the debt-ridden company’s bonds are unsecured debt, and the Finance Ministry says superannuated bonds do not carry any government guarantee and all such instruments have to face all market-related risks.

“Since these are investments in bonds, the government does not ensure any guarantee on them as such and if these are invested in stock markets, they carry the market risks as applicable. It is between the bond issuer and bond holders…,” the Finance Ministry said in response to IANS queries.

Thousands of crores of money of more than 15 lakh employees of both public and private sector companies have exposure to IL&FS bonds.

However, queries sent to the EPFO Commissioner and Labour Minister Santosh Gangwar remained unanswered.

Over 50 funds that manage retirement benefits of over 15 lakh employees have exposure to IL&FS. PF trusts of state electricity boards, public sector undertakings (PSUs) and banks are among them. The provident and pension fund trusts have filed intervening applications in the National Company Law Appellate Tribunal (NCLAT) stating that they stand to lose all the money since the bonds are under unsecured debt.

Usually, retirement funds have a low-risk appetite and invest in “AAA” rated bonds (which IL&FS bonds used to be once upon a time) and get assured returns with low interest rates.

The worries of pension and provident fund trusts come from the classification of IL&FS profiling its companies as to which can meet the dues obligations. Many important trust managing funds of PSUs like MMTC, IOC, Hudco, SBI and IDBI are among those filing petitions. From private sector, HUL and Asian Paints are among the petitioners.

IL&FS is currently under resolution process at the National Company Law Tribunal (NCLT). The process will decide under Section 53 of the IBC the order of priority for distribution of proceeds of the process.

The beleaguered company has informed the NCLT that of the 302 entities in the group, 169 are Indian companies, out of which only 22 are emerging as those which can meet all obligations (green), while 10 firms can pay to only secured creditors (Amber). There are 38 companies of IL&FS (red) which cannot meet any obligations of payment, and 120 entities are still being assessed.

These PF and provident funds trusts are worried that if payment is limited to secured creditors, then only financial creditors like banks will receive the dues while unsecured bond-holders will be get any payments.

IL&FS bonds attracted investments by PF trusts as it had the shareholding of SBI and LIC giving its bonds the comfort factor.

Continue Reading

Business

Sachin Bansal invests Rs 650 crore in Ola

Published

on

Sachin-Bansal

Bengaluru, Feb 19 (IANS) Internet entrepreneur and Flipkart co-founder Sachin Bansal has invested Rs 650 crore, or about $92 million, in ride-hailing platform Ola in his personal capacity as investor, the company said in a statement on Tuesday.

This investment is part of Ola’s larger Series J funding round. It is also the largest investment by an individual in Ola to date, it said.

“Ola is one of India’s most promising consumer businesses that is creating deep impact and lasting value for the ecosystem. On one hand, they have emerged as a global force in the mobility space and on the other, they continue to build deeper for various needs of a billion Indians through their platform, becoming a trusted household name today,” Bansal said.

He further said he has known Ola founder Bhavish Aggarwal as entrepreneur and friend over the years and that he has great respect for what he and the team at Ola have built in 8 years.

“We are extremely thrilled to have Sachin onboard Ola as an investor. Sachin is an icon of entrepreneurship and his experience of building one of India’s most respected businesses ground up, is unparalleled,” Ola CEO Bhavish Aggarwal said.

Ola integrates city transportation for customers and drivers onto a mobile technology platform ensuring convenient, transparent, safe and quick service fulfilment, the statement added.

Continue Reading
Advertisement

Most Popular