Revise rate
20:30
Usage of Automated Teller Machines/Cash Recycler Machines-Review of Interchange Fees and Customer Charges
Usage of Automated Teller Machines/Cash Recycler Machines-Review of Interchange Fees and Customer Charges
Showing posts with label Revise rate. Show all posts
Showing posts with label Revise rate. Show all posts
Tuesday, 22 June 2021
Monday, 6 March 2017
Tuesday, 4 October 2016
Friday, 9 September 2016
Revise rate
07:49
Strike call given by AIBOC on 2nd September, 2016 deferred following negotiations with RLC(C) and IBA.
Strike call given by AIBOC on 2nd September, 2016 deferred following negotiations with RLC(C) and IBA.
Source:AIBPRC
Wednesday, 3 August 2016
Monday, 25 July 2016
Revise rate
07:44
Canara Bank Retired Officers' Association demanded 'Revise pension along with bank salary hike'
Canara Bank Retired Officers' Association demanded 'Revise pension along with bank salary hike'
The Canara Bank Retired Officers' Association on Saturday said it would demand for pension revision every time the bank revises wages. In fact, this is one of the main agendas of the association's 10th biennial conference that is being held in the city. "The All India Banks Officers Confederation has promised to back our demand," said the general secretary of the Canara Bank Retired Officers' Association, K B Ballur. Pointing out that the pension amount wasn't sufficient given the present level of inflation, Ballur said using the provident fund to pay the pension was also unfair. "For example, I retired in 2000 but a person who retires in the same position now gets more than double my pension," he said. "A provident fund is something they deduct from employees' salary and the employer also contributes to it. But, it is the employees' money which ..Read More
Source:TOI
Thursday, 31 March 2016
Monday, 14 March 2016
SBI
21:18
OROP: SBI disburses Rs 1,465 crore as 1st instalment of arrears
OROP: SBI disburses Rs 1,465 crore as 1st instalment of arrears
Mumbai: Top public sector lender State Bank of India Monday released arrears worth Rs 1,465 crore to 7.75 lakh defence pensioners under One Rank One Pension (OROP) scheme, as per the government rules.
he government had in November last year formally notified the OROP scheme for the more than 24 lakh defence ex-servicemen and 6 lakh war widows in the country.
"As per government guidelines, first instalment (1/4th of the total arrear amount up to February, 2016) to service pensioners and full amount of arrears to 'family pensioners' and 'gallantry award' pensioners will be paid on 14th March, 2016," SBI Chairman Arundhati Bhattacharya said in a statement.
"All pensioners will get revised basic (pension) from March, 2016 onwards," she said.
The bank has the largest share of defence pensioners and serves about 50 percent of total defence pensioners across the country, he said.
"The first tranche of arrear payment by SBI will be around Rs 1,465 crore," Bhattacharya said.
SBI noted that while the bank has taken utmost care in the computation and release of arrears to maximum number of eligible defence pensioners, there could be cases where it has not been able to release OROP arrears due to information gaps in the data available with the bank.
"All such persons may approach their pension-disbursing branch and provide the missing information for an early release of the arrears," it added.
SBI has introduced facilities in all branches and Centralised Pension Processing Centres (CPPCs) to provide arrear details to the pensioners.
Despite a demand by protesting ex-servicemen to implement OROP with effect from April 1, 2014, the government has said that arrears would be paid with effect from July 1, 2014, and has pegged the arrears till December, 2015 at Rs 10,900 crore.
As per government directions, payment of arrears would be made by the pension-disbursing authorities in 4 installments, except for family pensioners and pensioners in receipt of gallantry awards, who will be paid arrears in one installment.
The OROP scheme is expected to cost the government Rs 7,500 crore per year.
Source;ZeeNews
Wednesday, 20 January 2016
XIth Bipartite
08:11
Minimum demand which must be achieved now in Eleventh Bipartite by Pannvalan sir
Minimum demand which must be achieved now in Eleventh Bipartite by Pannvalan sir
** It may be noted that Pannvalan sir is among bankers who have deep knowledge of banking and related sector and his reviews and forecasts are well detailed and much appreciable among banking community. Here, we have presented his thoughts on future demands of Eleventh bipartite. **
We are all aware that the Department of Financial Services, Ministry of Finance has set the ball rolling for commencement of 11th BPS and they have issued a notification to all the banks that are part of the process, advising them to complete the whole process well before the due date i.e. 1st November, 2017.
So, I have now been tempted to initiate the process, by making these suggestions.
Before proceeding further, we must remember that the implementation of new pay scales for central government employees under 7th CPC is already under way. Their new pay scales are expected to be implemented with effect from 1st January, 2016.
Their new basic pay is expected to vary from 2.57 to 2.78 times their present pay.
Even at the pre-revised level (i.e. 6th CPC level), their Basic Pay is higher than the revised Basic Pay of the bank staff, after 10th BPS.
Alright, let us now proceed to arrive at the new Basic Pay to be fixed in 11th BPS.
Assumptions:
1. The average All India Consumer Price Index for Industrial workers (Base: 1960=100) is expected to be at 6777 for the quarter ending 30th September, 2017 (assuming that the annual inflation will be 6% for the next 2 years).
2. Accordingly, the DA as on 31-10-2017 on the exiting basic pay will be at 58.40%.
3. Unlike last time, it is expected that the full amount of D.A. outstanding as on 31.10.2017 will be merged, as is being done in the case of Central Government Employees.
4. So, the whole D.A. at 58.40% will be merged with the existing basic pay, at the time of next wage revision.
5. Then, the Special Allowance with applicable D.A. thereon (introduced in 10th BPS) is also to be merged with the existing basic pay.
6. Then, on this amount, an increase of 40% (additional load factor) is given and fixed as the revised Basic Pay. It is then rounded off to the next higher 100.
Now, let us see how much it translates to, so as to arrive at the revised Basic Pay for each staff, depending on his cadre/grade. Variation occurs here, only because of the difference in the rates of Special Allowance fixed for officers in different grades and scales.
→ Note:
1. The new Basic Pay is arrived, by multiplying the present Basic Pay by the factor as stated above.
2. Then, the new basic pay so arrived at is raised to the next higher 100 Rupees.
3. This figure will be the new Basic Pay.
4. The Basic Pay mentioned above is exclusive of the Stagnation Increments, wherever applicable.
5. Amount of new increment is slightly lower than 4% of the revised Basic Pay at each stage.
6. It must be noted that even the revised Basic Pay at this level is far below the proposed Basic Pay of the Central Government staff, as per 7th CPC.
7. Since the entire D.A. outstanding as on 31.10.2017 is to be merged with the existing Basic Pay, the new D.A. as on 01.11.2017 will be ‘Nil’.
8. Therefore, we are fully justified in demanding the revised Basic Pay at this level and we need not feel guilty that our demand may sound unreasonable, impractical and excessive.
9. Unless we convince ourselves regarding the justification in our demands, we cannot go the bargaining table with total confidence. This we must remember.
→ Some Important Points
1. Already we are far behind the central government employees in pay and perks and if we fail to bridge the gap between them and us at the time of 11th BPS, the gap will keep on widening further and further, with each wage revision.
2. Already the bank jobs have lost their charm, for the highly qualified and meritorious candidates and the attrition rate is also very high as compared to any other sector or industry.
3. Moreover, we must remember that nearly 40% of the existing staff in the banking industry retire in the normal course (on attaining the age of superannuation), in the next 4 years. The exodus will be like a deluge between 2018 and 2020.
4. With the recruitment not taking place at the desired levels, the staff position will only deteriorate, with the indiscriminate branch expansion by all banks in general and public sector banks in particular. With the introduction of new products every now and then, the situation will turn precarious.
5. Therefore, unless we make the bank job a more lucrative and interesting profession, banks especially in the public sector cannot attract good talent and retain it.
6. If the revised basic pay is not at the level projected hereinabove, it will only reflect upon our weak bargaining power and the inability of our union leaders to feel the pulse of the staff especially those in the public sector banks.
7. If we cannot achieve revision as projected here, we must demand CPC scales or a separate Banking Pay Commission. For that to happen, disbanding of UFBU is a sine qua non.
Source:BankingUpdates.
Source:BankingUpdates.
Saturday, 5 September 2015
SLR
09:00
New base rate based on marginal costs could push banks to revise rates at a speedier pace: BoAML
New base rate based on marginal costs could push banks to revise rates at a speedier pace: BoAML
The new base-rate formula proposed by the central bank linking lending rates to marginal cost of funds rather than average cost of funds could push banks to revise rates at a speedier pace than before, said a report by Bank of America Merrill Lynch (BoAML).
This will be particularly the case for banks with high base rates ( the rate below which banks cannot lend). " ... In a falling rate environment, the new "base-rate" formula may push banks to lower rates more than earlier, especially banks that have high base rates and were using average cost of funds" said the BoAML report released on Tuesday. The average cost of funds is sticky and takes time to fall, while the marginal cost of funds is likely to fall more quickly, as banks cut deposit rates. "It may force banks to cut rates more sharply, which appears to be a key objective of the RBI. It could, however, make base rates much more volatile" It added.
The RBI just released draft guidelines on base rates, to be effective from April 1, 2016, once the guidelines are finalised. As per the draft guidelines, banks will have to use the marginal cost of funds as the key input. Until now, banks could set their base rate (minimum lending rate) after determining a spread over their total costs, factoring in operating costs, cost of funds and the minimum return on equity they deem adequate.
The 35 bps (one basis point is 0.01%) base-rate cut by HDFC Bank is also likely to push banks to consider faster rate cuts. Given the low loan growth and incremental loan to deposit ratio of less than 35%, BoAML expects banks to begin cutting both deposit and lending rates. "We reiterate our view that banks are likely to cut by at least 75bps and could even hit 100bps in FY16, especially if the RBI cuts rates." It said
HDFC Bank, having just 20-25% "base rate- linked loans and current and savings accounts or CASA higher than 40% is likely to see minimal margin pressure. ICICI Bank, too, could see less margin compression, owing to its much faster growth of domestic loans compared to overseas (on which margins are half). Government banks, in contrast, could see a much greater impact on margins. Hence, we may see more limited rate cuts by them, as their funding costs are also likely to be higher (owing to unallocable costs). SBI may be relatively better positioned owing to its high CASA. Ends
Retail loans may get a fillip from rate cuts, being the most sensitive to rates. Private banks, with a 34% share of the retail loan market, are likely to be the key beneficiaries of rate cuts, especially the larger ones that have the lower base rates and a more dominant share of the retail market.
Banks to use marginal cost of funds for setting base rate
The RBI just released draft guidelines on base rates, to be effective from April 1, 2016, once the guidelines are finalised. Until now, banks could set their base rate (minimum lending rate) after determining a spread over their total costs, factoring in operating costs, cost of funds and the minimum return on equity they deem adequate. The key is that banks had the option of using either the average cost of funds or the marginal cost of funds.
As per the draft guidelines, banks will have to use the marginal cost of funds as the key input. They can still adjust for the negative carry of SLR and CRR and also add unallocable costs and determine their spread based on the minimum RoE that banks need to earn. The RBI just released draft guidelines on base rates, to be effective from April 1, 2016, once the guidelines are finalised. As per the draft guidelines, banks will have to use the marginal cost of funds as the key input.
Until now, banks could set their base rate (minimum lending rate) after determining a spread over their total costs, factoring in operating costs, cost of funds and the minimum return on equity they deem adequate.
Source :Bank Updates
