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Wednesday, September 30, 2015

Bank officers threaten nation-wide strike

Bank officers have threatened to go on a nation-wide strike over non-recall of a terminated employee of Thrissur, Kerala-based Dhanlaxmi Bank.

PV Mohanan, general secretary of the Dhanlaxmi Bank Officers Organisation (DBOO) and president of All-India Bank Officers Confederation (AIBOC), Kerala, was terminated on June 11 ‘without citing any reason.’


The Kerala unit of AIBOC observed a lightning strike the very next day, which was followed by a 33-day-long hunger strike by 1,200 members of the DBOO, union sources said here.

The Kerala government and the central trade unions intervened in the matter and held conciliatory meetings in July.

The bank management and DBOO/AIBOC reached an understanding on July 15 in the presence of Ramesh Chennithala, state home minister, and leaders of central trade union leaders.

As per this, the bank had to freeze the termination order and to conduct meetings with the unions to settle the matter within two months.


The employee on whom termination order was served would go on leave during this period. The officers association was also advised not to go for agitation during the period.

But the bank management has failed to keep its end up in the settled terms of agreement even after the lapse of these two months.

The freeze on the termination order has not been effected till date nor has salary been paid to the employee.

The unions accused of the management of avoiding bilateral discussions for normalising the situation despite repeated attempts made by them.

Source : Thehindubusinessline
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UCO Bank to reduce base rate by 25 bps to 9.7%

A day after the RBI announced a 50 basis points repo rate cut, Kolkata-based lender, UCO Bank, has said it will reduce the base rate by 25 basis points.

The base rate, which will come into effect from October 5, will be at 9.70 per cent, according to a notification to the bourses.

"The UCO Bank has informed the BSE that the bank has reduced its Base Rate by 25 basis points to 9.70 per cent with effect from October 05, 2015," it said in the notification.

Source : Thehindubusinessline
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Naina Lal Kidwai to step down as Chairperson of HSBC India

HSBC India Chairperson Naina Lal Kidwai will retire in December after a 13-year stint with the bank, HSBC said today.

"She will also step down from her position of executive Director on the Board of HSBC Asia-Pacific," HSBC said in a statement.

"During this period, she has served HSBC with distinction in a number of senior roles, and we wish her every success for the future," Peter Wong, Chief Executive of HSBC Asia-Pacific said.

Kidwai joined HSBC in 2002 as Vice Chairman and Managing Director at HSBC Securities and Capital Markets, India and was appointed Group General Manager of the Bank in 2006.

She took over as CEO of HSBC India in 2007 and as Chairman of HSBC India in 2009.

"Having reached retirement age, it is time for me to move to different pursuits. I intend to spend more time in the areas of women empowerment and water and sanitation where I have been engaged over the last decade in different capacities," Kidwai said.

Source : Economic Times
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State lenders PNB, BoB, OBC cut base rate by up to 0.40 per cent

State-run lenders Punjab National Bank, Bank of Baroda and Oriental Bank of Commerce have trimmed their base or minimum lending rates by up to 0.40 per cent in response to RBI's policy rate cut.

Punjab National Bank (PNB) cut the base rate by 0.40 per cent, Bank of Baroda (BoB) by 0.25 per cent, while Oriental Bank of Commerce (OBC) slashed the rate by 0.20 per cent.

"Base rate cut by 40 bps from 10 per cent to 9.60 per cent from October 1," PNB said in a statement.

In a BSE filing BoB said it has decided "to reduce base rate by 25 basis points from 9.90 per cent per annum to 9.65 per cent."

It also reduced the Benchmark Prime Lending Rate (BPLR) by 25 basis points (or 0.25 per cent) from 14.15 per cent to 13.90 per cent.

The reduction in both the rates will be effective from October 5, the lender added.

"Oriental Bank of Commerce has slashed its base rate by 20 basis points from 9.90 per cent per annum to 9.70 per cent with effect from September 30, 2015," it said in a filing.

Earlier today, Axis Bank -- first among private lenders after RBI's policy announcement yesterday -- announced a cut of 0.35 per cent in base rate to 9.50 per cent.

The base rate is the minimum rate of interest at which a bank can lend to its borrowers.

Country's largest lender State Bank of India, Andhra Bank and Bank of India were among the first to cut base rate yesterday in the range of 0.20-0.40 per cent in response to RBI's repo rate cut of 50 basis points to 6.75 per cent.

While the base rate cut so far has come mostly from public sector lenders except Axis Bank, other private peers are expected to follow suit soon.

Soon after the RBI announcement, Finance Minister Arun Jaitley yesterday expressed hope that banks will transmit the benefit to borrowers to boost investments and the economy.

"We are looking forward now to the transmission of these cuts which will effectively help to boost confidence and investment. They will also help to realise the economy's medium term potential growth rate," Jaitley had said.

Source : Economic Times
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Tuesday, September 29, 2015

Home, auto loans to cost less as RBI cuts rate by 0.5%

Home and corporate loans will cost less as the Reserve Bank today lowered the key interest rate by 0.50 per cent — the biggest cut in over three years — to bolster the economy.

In its fourth bi-monthly monetary policy for the current fiscal, RBI cut the benchmark repurchase (repo) rate from 7.25 per cent to 6.75 per cent, the lowest in four-and-a-half-years.

RBI Governor Raghuram Rajan, who had faced growing pressure from the Government as also industry to reduce one of Asia’s highest borrowing costs, justified the bigger than expected reduction saying consumer inflation was likely to be at 5.8 per cent, below the 6 per cent target for January.

The focus should now shift to bringing inflation to around 5 per cent by March 2017, he said, adding that RBI will be vigilant for signs of monetary policy adjustments that are needed to stick to the “deflationary path”.

He also drew comfort from the US Federal Reserve delaying the first hike in interest rates in nine years, which may have put emerging market currencies under pressure.

RBI lowered its economic growth forecast for the current fiscal to 7.4 per cent from its previous projection of 7.6 per cent.

“While the Reserve Bank’s stance will continue to be accommodative, the focus of monetary action for the near term will shift to working with the Government to ensure that impediments to banks passing on the bulk of the cumulative 125 basis points cut in the policy rate are removed,” Rajan said.

The reduction comes on the back of interest rates being cut thrice earlier this year by 25 basis points each.

Within minutes of the RBI policy announcement, Andhra Bank cut its benchmark lending rates by 0.25 per cent. The other banks are likely to follow suit.

The BSE Sensex, which was over 300 points down, staged a recovery after the announcement of the policy. However, it again slipped into the negative zone.

Source : Thehindubusinessline
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