PSU bank employees to get small windfall as incentive
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Unions had strongly opposed linking their salaries to the performance of the bank. Their position was that the financial performance depends on the government policies over which they have no control.
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(This story originally appeared in on May 21, 2021)Employees of many public sector banks are in for a small windfall due to the performance-linked component in the wage agreement signed with the Indian Banks’ Association (IBA) in November 2020.
Canara Bank this week paid out a performance-linked incentive to its employees, equivalent to 15 days’ pay, soon after announcing its financial results. This followed the bank reporting a net profit of Rs 2,557 crore for FY21 as compared to a Rs 5,838-crore loss in the preceding year.
How the second wave of Covid will play out is a challenge: BoM chief
May 14, 2021
AS Rajeev, MD and CEO, Bank of Maharashtra×
Bank of Maharashtra (BoM) could figure among the top three public sector banks (PSBs) in terms of efficiency parameters and asset quality if its current performance continues for the next couple of years, according to MD and CEO AS Rajeev.
The bank, which posted net profit for nine quarters on the trot up to the fourth quarter of FY21, has adequate capital to ensure a 20-22 per cent growth in RAM (retail, agriculture and MSME) advances and about 10-12 per cent growth in corporate advances in FY22, he said. In an interaction with
Updated:
May 04, 2021 11:29 IST
Three large banks switch to operations with less staff, govt nod must for change in timings
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In State Bank of India alone, 900-odd staffers have contracted the COVID-19 infection during the second wave while in Union Bank of India, the number is around 400-500. File photo
| Photo Credit: NAGARA GOPAL
Three large banks switch to operations with less staff, govt nod must for change in timings
Almost two weeks after the State Level Bankers’ Committee (SLBC) recommended banks be allowed to reduce business hours and operate with limited staff, anxiety levels run high among banks employees with the Telangana government yet to give approval for the measures.
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Earlier this month, the government had introduced a pre-packaged insolvency resolution process for stressed MSMEs by amending the insolvency law.
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MUMBAI: State-owned
Bank of Maharashtra is looking at resolving 20-25 stressed micro, small and medium enterprise (MSME) accounts under the pre-packaged insolvency resolution process, a senior bank official said.
Earlier this month, the government had introduced a pre-packaged insolvency resolution process for stressed MSMEs by amending the insolvency law.
Under a pre-packaged process, main stakeholders such as creditors and shareholders come together to identify a prospective buyer and negotiate a resolution plan before approaching the National Company Law Tribunal (NCLT).
Government may frontload its Bank Recapitalisation Plan
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Additionally, when the government selects the two candidates for bank privatisation, it may shore up their capital to strengthen their balance sheets and make them more attractive to prospective investors.
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In a recent report, India Ratings and Research noted that equity infusion in four public sector banks through non-interest-bearing bonds would bolster their regulatory capital levels, but their lower intrinsic values would not strengthen their tangible equity by as much.
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The government may frontload its bank recapitalisation plan this year to strengthen weaker lenders and further support its privatisation strategy.