Report Wire

Tag: bank privatisation

  • Nationwide strike to protest towards proposed privatisation of two state-owned lenders impacts providers of PSU banks

    Banking operations, together with cheque clearance, acquired affected throughout the nation on Monday as bankers underneath the aegis of the United Forum of Bank Unions (UFBU) have gone on a nationwide strike to protest towards the proposed privatisation of two state-owned lenders.
    UFBU, an umbrella physique of 9 unions, had given a strike name for March 15 and 16, and claimed that about 10 lakh financial institution workers and officers of the banks will take part within the strike.
    Members of UFBU embrace All India Bank Employees Association (AIBEA), All India Bank Officers’ Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers’ Association (AIBOA) and Bank Employees Confederation of India (BEFI).

    The different members are the Indian National Bank Employees Federation (INBEF), Indian National Bank Officers Congress (INBOC), National Organisation of Bank Workers (NOBW) and National Organisation of Bank Officers (NOBO).
    However, branches of personal sector lenders like ICICI Bank, HDFC Bank and Axis Bank are open as they aren’t a part of the strike.
    In the Union Budget introduced final month, Finance Minister Nirmala Sitharaman had introduced the privatisation of two public sector banks (PSBs) as a part of the federal government’s disinvestment plan.
    The authorities has already privatised IDBI Bank by promoting its majority stake within the lender to LIC in 2019, and has merged 14 public sector banks within the final 4 years.
    According to All India Bank Employees Association (AIBEA) basic secretary CH Venkatachalam, providers at department degree, cheque clearance and authorities transactions have been affected. Besides, cash markets and inventory markets are additionally going to face issues as funds can be impacted, he mentioned.
    In Bengal, banking operations had been severely hit as officers and workers of public sector lenders went on a strike to protest towards the proposed privatisation of two state-owned banks.
    “We have got a tremendous response. Our strike call has also been supported by the National Confederation of Officers Association, farmers, CITU and AITUC,” All India Bank Officers Confederation (AIBOC) joint basic secretary Sanjoy Das mentioned.
    “There are around 6,000 branches of public, private and foreign banks in West Bengal. Most of the bank branches in the state are closed due to the strike. ATMs are not functioning except those located at hospitals, railway stations and airports,” he added.
    Banking providers in Maharashtra had been additionally severely hit as round 40,000 financial institution workers and officers joined the strike.
    UFBU’s Maharashtra convenor Devidas Tuljapurkar in an announcement mentioned that about 40,000 financial institution workers and officers working in about 10,000 financial institution branches throughout the state have joined the nationwide strike.

    State-run lenders, together with Central Bank of India amongst others, have requested their prospects to make use of their digital channels like web or cellular banking, and ATMS providers for making transactions through the two-day strike.

  • Banking companies could get affected later this month resulting from proposed 2-day financial institution strike

    Image Source : PTI/FILE Banking companies could get affected later this month resulting from proposed 2-day financial institution strike
    Public sector lender Canara Bank on Thursday mentioned that banking companies could get affected later this month as a result of proposed strike by a number of financial institution unions.

    “We have been informed by the Indian Banks” Association (IBA) that the United Forum of Bank Unions (UFBU) has given a call for strike in the banking industry on March 15 and March 16, for issues relating to industry level and not for any bank-level issues,” Canara Bank mentioned in a regulatory submitting.

    Canara Bank mentioned it’s taking essential steps for the sleek functioning of financial institution branches and places of work on the times of the proposed strike.

    “However, in the event of strike materialising, the functioning of the branches/offices may be impacted,” mentioned the lender.

    A number of financial institution unions have given a name for strike on March 15-16. AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, IBOC, NOBW, NOBO and AINBOF are the financial institution unions which have given a name for strike towards the proposed privatization of two state-owned lenders by the federal government.

    ALSO READ: ​HDFC cuts charges, house loans now obtainable from 6.75 per cent
    Latest Business News

  • Govt to amend two Acts to allow privatisation of PSU banks

    Image Source : PTI (FILE) Union Finance Minister Nirmala Sitharaman
    To facilitate privatisation of public sector banks, the federal government is more likely to deliver amendments to 2 legislations later this 12 months. Amendments can be required within the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 for privatisation, sources stated. These Acts led to nationalisation of banks in two phases and provisions of those legal guidelines must be modified for privatisation of banks, they stated.

    As the federal government has already introduced the record of legislative enterprise for the Budget session, it’s anticipated that these amendments could also be launched within the Monsoon session or later through the 12 months, sources added.

    The ongoing Budget session is scheduled to take up as many as 38 Bills together with the Finance Bill 2021, Supplementary Demands for Grants for 2020-21 and associated Appropriation Bill, National Bank for Financing Infrastructure and Development (NaBFID) Bill, 2021, and Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

    Finance Minister Nirmala Sitharaman whereas presenting Budget 2021-22 earlier this month had introduced privatisation of Public Sector Banks (PSBs) as a part of disinvestment drive to garner Rs 1.75 lakh crore.

    “Other than IDBI Bank, we propose to take up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22,” she had stated.

    Later in one of many submit Budget interactions, the Finance Minister had stated the federal government will work with the Reserve Bank for execution of the financial institution privatisation plan introduced within the Union Budget 2021-22.

    “The details are being worked out. I have made the announcement but we are working together with the RBI,” she had stated, when requested concerning the proposal.

    The authorities final 12 months consolidated 10 public sector banks into 4 and in consequence the entire variety of PSBs got here right down to 12 from 27 in March 2017. As per the amalgamation plan, United Bank of India and Oriental Bank of Commerce have been merged with Punjab National Bank, making the proposed entity the second largest PSB.

    Syndicate Bank was merged with Canara Bank, whereas Allahabad Bank was subsumed in Indian Bank. Andhra Bank and Corporation Bank have been amalgamated with Union Bank of India.

    In a primary three-way merger, Bank of Baroda merged Vijaya Bank and Dena Bank with itself in 2019. SBI had merged 5 of its affiliate banks – State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad- and likewise Bharatiya Mahila Bank efficient April 2017.

    READ MORE: Govt to work with RBI for execution of financial institution privatisation plan: Nirmala Sitharaman
    Latest Business News

  • Govt to work with RBI for execution of financial institution privatisation plan: Nirmala Sitharaman

    Image Source : PTI Govt to work with RBI for execution of financial institution privatisation plan: Nirmala Sitharaman
    Finance Minister Nirmala Sitharaman on Sunday stated the federal government will work with the Reserve Bank for execution of the financial institution privatisation plan introduced within the finances. Speaking to reporters within the monetary capital, Sitharaman additionally stated that the federal government has no plan to type any financial institution funding firm to accommodate the federal government stakes in banks.
    In the union finances introduced final week, Sitharaman had introduced the privatisation of two banks as a part of its disinvestment plan. Bank unions have opposed the transfer. 
    “The details are being worked out. I have made the announcement but we are working together with the RBI,” she stated, when requested in regards to the proposal.
    She, nonetheless, declined to touch upon any particular particulars about which would be the candidate chosen for privatisation. 
    “We will let you know when the government is ready to announce,” she answered when requested in regards to the particulars. 
    On the dangerous financial institution, Sitharaman stated the  authorities could have to offer some assure for the National Asset Reconstruction Company (ARC), however burdened that this can be a resolution which has come from the banks itself and also will be led by them. 
    Sitharaman alleged that the banks’ non-performing property, that are to be transferred into the National ARC, are a legacy of the mismanagement up to now.

    There is not any “phone banking” occurring now, with favours being hunted for anybody from New Delhi. 
    On the Bank Investment Company (BIC), she stated no such proposal is on the desk and questioned what resulted within the dialogue. 
    “There is not any such dialogue. I do not know the place it’s coming from. At least it isn’t earlier than me. I’m not discussing that,” she stated. 
    She stated that there’s a want for professionalisation of banks and the federal government is attempting to make sure the identical. 
    The minister additionally stated that the banks are regularly getting out of the danger aversion, which had set in through the early days of the pandemic.
    When requested in regards to the formidable divestment targets and the federal government’s capability to push by way of essential reforms to earn the projected revenues, Sitharaman exuded confidence of hitting budgetary estimates of Rs 1.75 lakh crore divestment. 
    Sitharaman stated the federal government stands to stand up to Rs 30,000 crore from the newly launched agricultural infrastructure cess. 
    On the problem of gasoline costs, and inflation there in due to the duties, Sitharaman stated if the Centre lowers excise, states will enhance their taxes to maintain the costs on the identical degree and in addition earn some revenues. 
    Latest Business News