Austerity measures directed for state run banks

Finance Ministry has directed some austerity measures to state run banks. The ministry thinks as the banks are reeling under high NPAs they should cut the expenditure. The measures include Not to pay (from bank) for the Drinks served during board meetings, Not to pay for the expenses of family members or any other who accompany the directors during the meeting, Avoid to pay for extended stay of board members, Hold meetings as far as possible at head quarters instead of Hotel and Resort etc. These are good measures to save the public money but the government should also make public the austerity measures directed for their offices/various departments which being non-profit centres are expending huge expenses.

Average age of IOB staff will fall further: CMD

 

 

At Indian Overseas Bank, promotions are happening thick and fast. Officers can become managers in less than two years. Apart from a conscious attempt at fast-tracking talent, the rapid expansion of its branch network is helping youngsters grow fast. M. Narendra, CMD of the bank, said the bank has opened more than 1,200 branches and recruited some 11,000 people in the last three years. The bank recruited around 4,500 people in the current fiscal alone. Of them, around 2,600 are officers. The attrition level is minimal, he added. Narendra said the new recruits become managers within one-and-a-half years because of the opportunities thrown up by expansion. “The average age of employees is 46 now. Earlier it was 52-55. Ideally, my endeavour is to take it to 35 years,” he said, adding that the age profile will come down further in the next three years.

HDFC Bank Q3

HDFC Bank, the country’s second largest private bank, posted a 25% jump in net profit in the October-December quarter on the back of robust loan growth, lower provisioning and tighter cost control. This is the second consecutive quarter that the bank’s year-on-year profit growth has been below 30%. The net profit was Rs 2,326 Cr as compared with Rs 1,859 Cr in the year-ago period. Net interest income grew 16% and other income, 11%. The bank recorded an overall loan growth of 23% as on December 31, 2013, boosted by loans to NRIs (nearly $2 billion) and large and mid-size firms (22% growth).

Wage Settlement update 17.01.2014

The employees who were expecting the UFBU to fight with IBA for at least 15% hike and while Business Papers expecting the UFBU to demand 30% increase in gross pay otherwise to go with its Strike plan on 20th and 21st were surprised when the  UFBU deferred its strike with meagre 9.5% hike in wage bill offered by IBA. The IBA has bettered its offer from 5% to 9.5%. But with its approval for 9.5% hike UFBU has nearly cheated 10 lakh  bank employees who were expecting better bargain.