Deal already signed for businesses in China, Malaysia too;
actual acquisition depends on regulatory sanctions
Mumbai: The Hongkong and Shanghai Banking Corp. Ltd, or HSBC,
is set to acquire the retail and small and medium enterprises
business of Royal Bank of Scotland Plc, or RBS, in India, China
and Malaysia.
HSBC entered the bidding race for select Asian assets of RBS
in October after talks between Standard Chartered Bank Plc and
RBS broke down over differences on the valuation of assets.
According to an RBS official in India, both the banks have
already signed the deal and the actual acquisition depends on
regulatory approvals in three countries.
RBS has already approached the Indian central bank for approval.
The key to the success of the Indian part of the acquisition is
the Reserve Bank of India (RBI) clearance for transfer of RBS
branch licences to HSBC.
RBS has 31 branches in India and employs 10,000 people, following
its 2007 acquisition of the Asian operations of ABN Amro Bank NV.
ABN Amro continues to conduct business in India under its original
name despite the RBS takeover. That acquisition was made through a
consortium, along with Fortis group of the UK and Banco Santander
SA of Spain. HSBC, which had an asset base of Rs94,620 crore in March,
operates through 47 branches across India. It has three more branch
licences granted by RBI.
Citibank NA is the largest foreign bank in India with an asset base of
Rs1.05 trillion in March, followed by Standard Chartered Bank with
Rs97,492 crore.
In June, RBI had declined to transfer RBS branch
licences to a prospective buyer. The banking regulator
based its decision on the fact that the proposed transaction
is a portfolio sale and not a bank buyout.
“We have signed a deal to sell our retail and small and
medium enterprises business in India, China and Malaysia
to HSBC,” a senior RBS official told Mint on condition of
anonymity as the proposal is yet to receive the regulator’s
approval. “We have sent the India proposal to the Reserve Bank
of India for approval,” the official added.
RBI spokeswoman Alpana Killawala said the central bank has
no information regarding the deal.
HSBC spokeswoman Malini Thadani declined to comment.
Responding to an email query, Vasantha Kumar, head of marketing
and communications, ABN Amro Bank, said: “RBS is in ongoing
discussions for the remaining retail and small and medium
enterprises assets it has decided to sell in Asia and will
make further announcements, as appropriate, in due course.”
RBS is selling businesses designated as non-core in select
markets to raise funds even though it will continue and grow
the corporate and wholesale banking activities of ABN Amro.
Madan Menon, country head, global banking and markets, ABN Amro Bank,
said, “Post the sale, the RBS group in India will focus on its core
business—corporate banking, markets and treasury, equity capital markets,
merger and acquisitions, syndicated loans, debt capital markets, trade
finance and cash payments... For the retail and SME (small and medium
enterprises) businesses, India will be the third largest employer within
the RBS group in the world.”
In February, RBS declared that it would move its India retail and commercial
banking operations, which employ 2,500 people, into a for-sale, non-core division.
Morgan Stanley is advising RBS on the sale.
In August, Australia and New Zealand Banking Group (ANZ) acquired RBS retail and
commercial banking operations in Taiwan, Singapore, Indonesia and Hong Kong for
around $550 million (Rs2,569 crore). It also acquired the onshore global banking
and markets (GBM) and global transaction services (GTS) operations in the Philippines,
Vietnam and Taiwan (excluding securities).
The talks with Standard Chartered Bank failed as the latter was not willing to
offer a little more than $100 million for the retail and commercial banking assets
of RBS minus the branch licences.
In fact, Standard Chartered worked on two sets of valuations—one exclusively for
the assets and the other for the assets and branches. This is because there was no
guarantee that RBI would permit the transfer of branch licences.
“The entire deal rests on the transfer of branches and it depends on what stance
RBI takes,” said an investment banker on condition of anonymity as he is associated
with the deal.
“The quality of the consumer banking assets is bad hence the only attraction for
HSBC is the branch network that it could acquire through this deal. RBS is trying
to convince the Indian banking regulator to transfer some branch licences to
the prospective buyers so that its existing clients receive uninterrupted service,”
added the same banker.
In India, the branch network plays a critical role when it comes to valuation as
foreign banks do not find it easy to secure licences even though RBI is quite
liberal in granting them. Under World Trade Organization norms, RBI is required
to issue 12 branch licences annually. It typically issues around 18 licences every
year but foreign banks want more.
ABN Amro Bank’s profits for the fiscal year ended 31 March in India
dropped 93.09% to Rs19.39 crore. The bank has written off debt worth
Rs962 crore in fiscal 2009, an almost three-fold increase from the
previous year’s Rs360 crore. Its consumer banking operations posted
an operating loss of Rs230.77 crore at the end of March. The size of
its consumer banking assets is not known.
HSBC India’s net profit for the fiscal year ended
March 2009 rose 8% to Rs1,291 crore.
Source: Sandeep Bhatnagar / Mint
Friday, December 11, 2009
Levying of user charges by SBI
State Bank of India (SBI) has reported that
no charges have been levied for cheque book,
minimum balance etc. at other branches.
A minor charge for deposit of cash at non-home
branch and updation of passbook at non-home
branch are levied by the bank as deposit of cash at
non- home branch amounts to remittance which the
customer would have paid for anyway by way of a draft.
Updation of passbook would also fall in the same category.
According to SBI no hardships are being faced by senior
According to SBI no hardships are being faced by senior
citizens and pensioners, especially since the bank can transfer
accounts to the nearest branch of the pensioner, if he so desires
without costs. The SBI constantly reviews all the various charges,
from time to time.
This information was given by Minister of State for Finance,
This information was given by Minister of State for Finance,
Shri Namo Narain Meena in written reply
to a question raised in Rajya Sabha today.
We stand on firm ground, no question of merger'-TMB MD
 |
| |
For the last 18 months, the bank was operating without a board. What has been the impact of this? What will be the focus of the new board?
With a truncated board, we were unable to take policy decisions, including on branch expansion and recruitments. Now, these will become our immediate focus.
What plans do you have for expansion and recruitments?
We have applied for 40 licences with the Reserve Bank of India. By the end of March 2010, the number of branches will go up to 257 from 215. The bank sees good potential in Mumbai, New Delhi, Kolkata and Gujarat and will focus on these markets. We also plan to foray into Madhya Pradesh and Chhattisgarh next year. We are also planning to recruit 500 people in the clerical cadre.
Any plans to foray into foreign countries?
The bank is planning an entry into Sri Lanka and Malaysia. The timing will be decided soon.
The bank was mainly recruiting from the Nadar community. Will there be any change in the recruitment policy?
Earlier, the bank was seen more as a community bank. The situation has changed now. We are going pan-India and would prefer to be called as everyone’s bank. Our recruitments will be merit-based.
You said the board would also look at an IPO.
The bank has been planning for an IPO for long. In the absence of the board, we couldn’t go ahead with the plan. The new board will decide about the issue, including the amount to be raised.
What is your assessment of the funds required by the bank?
With the constitution of the new board, the bank will be able to work out its plans for expansion. The additional capital required will be decided at an appropriate time.
Given the problems faced by the bank, it is being seen as an ideal candidate for a merger with another bank. Is this the best option?
Despite several problems, the bank has been performing well in all areas of operations. Now, these problems are coming to a logical end, giving us an opportunity to grow and enhance shareholders’ value. Mergers should be encouraged only between weak or unviable banks. Our bank has strong fundamentals and we have been making profits for the last 88 years. Our net worth was Rs 989 crore as on March 31, 2009, which is thrice than the minimum net worth of Rs 300 crore prescribed by the Reserve Bank of India. Our capital to risk assets ratio is 14.48 per cent, which is more than the required level of 9 per cent. Our return on assets is comfortable at 1.52 per cent as on March 31. The question of merger does not arise.
But do small banks have a future?
The regional focus of small banks has given them primacy in their area of operation. They are contributing to the economic growth of the country through their regional and rural presence. The business volume of small-sized banks has grown tremendously in the last decade. Still, tremendous opportunities exist in many areas. They need to exist with big banks to serve different sections of the society.
What will be your growth drivers?
Mainly small and medium enterprises, retail and manufacturing. Currently, our rate of interest is not competitive due to the high cost of funds. To address the issue, we are focusing on the current account, savings account (Casa) portfolio.
What is the bank’s cost of funds and Casa targets since larger and more efficient players have reached near 40 per cent levels for Casa?
The cost of funds is 7.70 per cent, which is in line with the industry average. The bank is looking at a Casa share of around 25 per cent this financial year and 30 per cent in 2010-11.
Bank staff plan on-day strike on Dec 16
11 Dec 2009, 1326 hrs IST,
MUMBAI: About 600,000 employees of India's banks
plan to go on a one-day strike on Dec. 16 to
protest the move to merge state-owned
banks.
"We are against any move for merger and consolidation
in the banking industry," C.H. Venkatachalam, general
secretary of All India Bank Employees Association (AIBEA)
told news agency.
"We term the move as closure of public sector banks," he said.
The employees were also protesting the ongoing move to merge
State Bank of Indore with its founder State Bank of India,
the country's largest bank, he added.
Earlier, Indian Banks Association, the apex banker's body,
said it got a notice from All India Bank Officers'
Association and AIBEA informing its members working
in state-owned, private and foreign banks would strike
work on Dec 16.
State-run Corporation Bank also informed stock exchanges
normal functioning in bank branches may be affected owing to the strike.
Source: REUTERS
MUMBAI: About 600,000 employees of India's banks
plan to go on a one-day strike on Dec. 16 to
protest the move to merge state-owned
banks.
"We are against any move for merger and consolidation
in the banking industry," C.H. Venkatachalam, general
secretary of All India Bank Employees Association (AIBEA)
told news agency.
"We term the move as closure of public sector banks," he said.
The employees were also protesting the ongoing move to merge
State Bank of Indore with its founder State Bank of India,
the country's largest bank, he added.
Earlier, Indian Banks Association, the apex banker's body,
said it got a notice from All India Bank Officers'
Association and AIBEA informing its members working
in state-owned, private and foreign banks would strike
work on Dec 16.
State-run Corporation Bank also informed stock exchanges
normal functioning in bank branches may be affected owing to the strike.
Source: REUTERS
Koda watches, reads news in jail, quietly
Sanjay Ojha, TNN 10 December 2009, 08:52pm IST
|
RANCHI: Former Jharkhand chief minister
Madhu Koda spent time in jail like any
other prisoner of the Birsa Munda Central
Jail at Hotwar here.
Allegedly involved in illegal investments
and hawala transactions worth Rs 4,000 crore,
Koda remained confined to his room in the upper
division ward where he was lodged around 7 pm on Monday.
An MP from Singhbhum, Koda was on Monday noon arrested
from Chaibasa by the state vigilance bureau in connection
with a disproportionate assets (DA) case. He was later
forwarded to 14 days' judicial custody by a vigilance
court in Ranchi.
The Hotwar jail's VIP ward has eight rooms.
Three are occupied by Koda's former cabinet colleagues
Enos Ekka, Harinarayan Rai and Kamlesh Kumar Singh who are
facing trial in DA cases in the local vigilance court.
Unlike the trio who regularly complain of ill health and
high blood pressure, Koda was normal. "His behaviour was
normal and he did not try to create a scene like his former
cabinet colleagues," said a jail official.
Koda woke up around 6.30 on Tuesday morning.
He later watched news on local TV channels and also
went through newspapers.
He was then examined by jail doctors. Reports of all the tests,
including blood pressure test, were normal, said jail
superintendent Deepak Vidyarthi.
After the medical examination, Koda returned to his room.
Unlike other high- profile undertrial prisoners, he had no
visitors during the day. Late in the afternoon, some of his
supporters came to meet him.
Meanwhile, the vigilance bureau has initiated the paper
work for taking him on remand for interrogation.
"Maybe tomorrow we will move the court seeking Koda's remand,"
DG (vigilance) Niaz Ahmed said on Tuesday.
Source:TOI-Ranchi
|
RANCHI: Former Jharkhand chief minister
Madhu Koda spent time in jail like any
other prisoner of the Birsa Munda Central
Jail at Hotwar here.
Allegedly involved in illegal investments
and hawala transactions worth Rs 4,000 crore,
Koda remained confined to his room in the upper
division ward where he was lodged around 7 pm on Monday.
An MP from Singhbhum, Koda was on Monday noon arrested
from Chaibasa by the state vigilance bureau in connection
with a disproportionate assets (DA) case. He was later
forwarded to 14 days' judicial custody by a vigilance
court in Ranchi.
The Hotwar jail's VIP ward has eight rooms.
Three are occupied by Koda's former cabinet colleagues
Enos Ekka, Harinarayan Rai and Kamlesh Kumar Singh who are
facing trial in DA cases in the local vigilance court.
Unlike the trio who regularly complain of ill health and
high blood pressure, Koda was normal. "His behaviour was
normal and he did not try to create a scene like his former
cabinet colleagues," said a jail official.
Koda woke up around 6.30 on Tuesday morning.
He later watched news on local TV channels and also
went through newspapers.
He was then examined by jail doctors. Reports of all the tests,
including blood pressure test, were normal, said jail
superintendent Deepak Vidyarthi.
After the medical examination, Koda returned to his room.
Unlike other high- profile undertrial prisoners, he had no
visitors during the day. Late in the afternoon, some of his
supporters came to meet him.
Meanwhile, the vigilance bureau has initiated the paper
work for taking him on remand for interrogation.
"Maybe tomorrow we will move the court seeking Koda's remand,"
DG (vigilance) Niaz Ahmed said on Tuesday.
Source:TOI-Ranchi
Poor loan disbursement by banks in state
Abhay Singh,
11 December 2009, 05:32am IST
|
PATNA: Nationalised commercial banks operating in the state
have a stupendous task of meeting the target of loan disbursement
as part of annualcredit plan (ACP) during the current
fiscal since only 36.86% of the target has been achieved till September end.
This transpired during the 30th State Level Bankers' Committee
(SLBC) meeting held in a premier hotel here on Friday.
Deputy CM Sushil Kumar Modi, who is also the state's finance minister
, said that the target for loan disbursement under ACP was Rs 21,127.79 crore,
but loan worth only Rs 7,788.53 crore could be disbursed by the banks
till September during the current fiscal.
This has affected the Credit-Deposit (C-D) ratio of the state,
which has been showing a declining trend since the 2007-08 fiscal.
"We have asked the banks to raise the C-D ratio to 40% during the next
fiscal," Modi said, adding that the state's C-D ratio during the current
fiscal till September was 30.99%.
The total deposits made within the state in various nationalised
banks was Rs 93,244 crore till September end, while only Rs 30,412 crore
had been credited to people concerned. It means that the banks have
invested the remaining around Rs 63,000 crore outside the state.
Significantly, none of the private banks has disbursed even a single
penny as loan, Modi said and added the target regarding loan disbursement
for the ICICI bank was Rs 371 crore and for the HDFC Bank Rs 183 crore.
They, however, may have to change their policies with regard to loan
disbursement, given the strict directive of the government.
The volume of educational loan given to students had increased.
Till September 30 during the 2008-09 fiscal,
loans worth Rs 252 crore were given to 8,582 students,
but the corresponding figures during the current fiscal
were Rs 362 crore and 10,563 students. Modi said the bankers
agreed to lower the interest rate on loans given to girls by 1%.
Even as the volume of crop insurance on agricultural loans given to
farmers had increased, the quantum was still low. The target regarding
issuance of Kisan Credit Cards to farmers was 15 lakh, but only 4.72 lakh
farmers had got it till November.
Source:TOI-PATNA
11 December 2009, 05:32am IST
|
PATNA: Nationalised commercial banks operating in the state
have a stupendous task of meeting the target of loan disbursement
as part of annualcredit plan (ACP) during the current
fiscal since only 36.86% of the target has been achieved till September end.
This transpired during the 30th State Level Bankers' Committee
(SLBC) meeting held in a premier hotel here on Friday.
Deputy CM Sushil Kumar Modi, who is also the state's finance minister
, said that the target for loan disbursement under ACP was Rs 21,127.79 crore,
but loan worth only Rs 7,788.53 crore could be disbursed by the banks
till September during the current fiscal.
This has affected the Credit-Deposit (C-D) ratio of the state,
which has been showing a declining trend since the 2007-08 fiscal.
"We have asked the banks to raise the C-D ratio to 40% during the next
fiscal," Modi said, adding that the state's C-D ratio during the current
fiscal till September was 30.99%.
The total deposits made within the state in various nationalised
banks was Rs 93,244 crore till September end, while only Rs 30,412 crore
had been credited to people concerned. It means that the banks have
invested the remaining around Rs 63,000 crore outside the state.
Significantly, none of the private banks has disbursed even a single
penny as loan, Modi said and added the target regarding loan disbursement
for the ICICI bank was Rs 371 crore and for the HDFC Bank Rs 183 crore.
They, however, may have to change their policies with regard to loan
disbursement, given the strict directive of the government.
The volume of educational loan given to students had increased.
Till September 30 during the 2008-09 fiscal,
loans worth Rs 252 crore were given to 8,582 students,
but the corresponding figures during the current fiscal
were Rs 362 crore and 10,563 students. Modi said the bankers
agreed to lower the interest rate on loans given to girls by 1%.
Even as the volume of crop insurance on agricultural loans given to
farmers had increased, the quantum was still low. The target regarding
issuance of Kisan Credit Cards to farmers was 15 lakh, but only 4.72 lakh
farmers had got it till November.
Source:TOI-PATNA
Loan waiver for farmers-Hubli
10 December 2009, 09:28pm IST
|
Karnataka Vikas Grameena Bank general manager Vasudev
Kalakundri has stated that December 31 is the last
date for the farming section to avail of
benefits under the Central government's
Debt Waiver and Debt Relief Scheme.
In a press release, he has requested the eligible
farmers to contact KVGB branches from where they
have availed of loan and pay their share of 75% so as
to get the remaining 25% waived. He said KVGB has implemented
this scheme effectively in its operational area of nine
districts and more than 1.15 lakh farmers have availed of
the benefit so far.
Source:TNN
|
Karnataka Vikas Grameena Bank general manager Vasudev
Kalakundri has stated that December 31 is the last
date for the farming section to avail of
benefits under the Central government's
Debt Waiver and Debt Relief Scheme.
In a press release, he has requested the eligible
farmers to contact KVGB branches from where they
have availed of loan and pay their share of 75% so as
to get the remaining 25% waived. He said KVGB has implemented
this scheme effectively in its operational area of nine
districts and more than 1.15 lakh farmers have availed of
the benefit so far.
Source:TNN
5 years imprisonment for possession of fake notes-Goa
11 December 2009, 05:20am IST
|
MARGAO: The Margao district and sessions court on Thursday
sentenced one Mohamed Saifulla Sheikh,
to undergo five years simple imprisonment and
pay a fine of Rs 5,000 on charges of possessing counterfeit
currency notes.
The court had held him guilty under Section 489C of the
IPC (possessing counterfeit currency notes).
However, he was acquitted from the charges under
Section 489A (counterfeiting currency notes) and 489B
(using as genuine counterfeit currency notes).
According to the prosecution, Vasco police had arrested
Sheikh and his accomplice, a minor, with fake currency
with a face value of Rs 3 lakh on September 5, 2008.
The accused were taken into custody following a complaint
lodged by a medical store owner near Vasco railway station
who alleged that fake notes were exchanged by one of the
accused at his store.
Police suspected that the notes were
printed in Pakistan and smuggled to India .
Source:PTI
|
MARGAO: The Margao district and sessions court on Thursday
sentenced one Mohamed Saifulla Sheikh,
to undergo five years simple imprisonment and
pay a fine of Rs 5,000 on charges of possessing counterfeit
currency notes.
The court had held him guilty under Section 489C of the
IPC (possessing counterfeit currency notes).
However, he was acquitted from the charges under
Section 489A (counterfeiting currency notes) and 489B
(using as genuine counterfeit currency notes).
According to the prosecution, Vasco police had arrested
Sheikh and his accomplice, a minor, with fake currency
with a face value of Rs 3 lakh on September 5, 2008.
The accused were taken into custody following a complaint
lodged by a medical store owner near Vasco railway station
who alleged that fake notes were exchanged by one of the
accused at his store.
Police suspected that the notes were
printed in Pakistan and smuggled to India .
Source:PTI
Bank plaint on fake note deposits-GOA
11 December 2009, 05:18am IST
|
MARGAO/VASCO: Margao town police on Thursday registered a
case of deposit of fake currency to the tune of
Rs 35,500 on a complaint by ICICI bank.
The amount deposited is from February 2009 till date.
Police said that the complaint states that six notes
of Rs 1,000 denomination, 58 of Rs 500 and five notes
of Rs 100 that were deposited are fake.
Police said this is the fourth time within a year that the bank has lodged
a complaint of fake currency being deposited.
Meanwhile, the Vasco branch of ICICI bank detected counterfeit
currency notes totaling Rs 11,600, police said.
According to the police, Surekha Sequeira,
the ICMC currency test manager
of ICICI bank, lodged the complaint after
the fake notes were detected.
Source:PTI
|
MARGAO/VASCO: Margao town police on Thursday registered a
case of deposit of fake currency to the tune of
Rs 35,500 on a complaint by ICICI bank.
The amount deposited is from February 2009 till date.
Police said that the complaint states that six notes
of Rs 1,000 denomination, 58 of Rs 500 and five notes
of Rs 100 that were deposited are fake.
Police said this is the fourth time within a year that the bank has lodged
a complaint of fake currency being deposited.
Meanwhile, the Vasco branch of ICICI bank detected counterfeit
currency notes totaling Rs 11,600, police said.
According to the police, Surekha Sequeira,
the ICMC currency test manager
of ICICI bank, lodged the complaint after
the fake notes were detected.
Source:PTI
No clues in UCO Bank bank theft in Allahabad
10 December 2009, 09:34pm IST
|
ALLAHABAD: The district police are yet to make a breakthrough
in the Rs 17.85 lakh UCO bank theft case. Despite carrying out
raids and detention of suspects,
the police till were clueless till Thursday evening
about the criminals involved in the case.
Initial investigations revealed that it was a handiwork of a
professional gang having expertise in bank robberies.
The district police have contacted their Sultanpur, Agra,
Lucknow and Meerut counterparts where such incidents had
occurred earlier.
A senior cop told TOI that such gangs do not stay anywhere
for long. The thieves cut the strong room and two cabinets
to take out the money. Police, however, said that the bank manager
had gone to his house after locking the branch and found
cash missing from cash boxes.
Source:TOI Allahabad
|
ALLAHABAD: The district police are yet to make a breakthrough
in the Rs 17.85 lakh UCO bank theft case. Despite carrying out
raids and detention of suspects,
the police till were clueless till Thursday evening
about the criminals involved in the case.
Initial investigations revealed that it was a handiwork of a
professional gang having expertise in bank robberies.
The district police have contacted their Sultanpur, Agra,
Lucknow and Meerut counterparts where such incidents had
occurred earlier.
A senior cop told TOI that such gangs do not stay anywhere
for long. The thieves cut the strong room and two cabinets
to take out the money. Police, however, said that the bank manager
had gone to his house after locking the branch and found
cash missing from cash boxes.
Source:TOI Allahabad
Chennai HC asks banks to have quota at officer level
11 December 2009, 04:05am IST
|
CHENNAI: Recommending representation for SC/ST officers
in the higher echelons of nationalised banks, the Madras
High Court has directed at least
five nationalised banks to follow the rule of reservation
for promotion of SC/ST candidates to officer ranks.
A division bench comprising Justice Elipe Dharma Rao
and Justice CT Selvam, citing a central government memo
dated August 13, 1997, said: "When the Constitution has
given an extra protection to the underprivileged communities
so as to ensure equal opportunities as guaranteed by the
Constitution, the banks are not justified in sleeping over
the matter of providing reservations in promotions for a
decade with no good reason to offer."
The petitions and appeals were filed by the SC/ST employees
associations of various nationalised banks, seeking a direction
to the banks to provide reservation in promotions to officers
from scale I to scale VII as per the instructions issued by the
Centre.
The banks, however, said promotion to officer grade is on the
basis of merit-cum-seniority, to which reservation policy cannot
be made applicable. They claimed that reservation is applicable
only in the first instance where promotion is from the clerical
grade to the lowest rank in the officer grade.
The rule of reservation will not apply
even to the next scale of middle
management level in scale II position, they said. They also
argued that the efficiency of administration of banks would
suffer if the reservation policy is followed.
Rejecting the arguments, Justice Dharma Rao, writing the judgment
for the bench, said: "We are unable to understand such a sweeping
and generalised argument advanced on the part of the banks, as if
all the employees belonging to these underprivileged classes are
inefficient and not suitable for promotion.
When the Union of India has directed the
banks to follow the rule of reservation in promotions
in all cadres, as early as in the year 1997, there is no impediment for
the banks to implement the same. However, for no better reason to be
appreciated, the banks are adamant in not implementing the office memo."
Citing the bleak picture of only a very few SC/ST officers occupying
high positions, the bench said, "this defeats the very purpose of
reservation enshrined in the Constitution. We must remember that even
the SC/ST candidates, who are now serving in officer cadres, have
been promoted only by virtue of their long service and merit and not
by availing themselves of the rule of reservation in promotions, as
has been provided for under Article 16(4A) of the Constitution."
It then directed the banks to implement the rule of reservation
for promotions to all cadres in the banking sector, within eight weeks.
Source:TOI
|
CHENNAI: Recommending representation for SC/ST officers
in the higher echelons of nationalised banks, the Madras
High Court has directed at least
five nationalised banks to follow the rule of reservation
for promotion of SC/ST candidates to officer ranks.
A division bench comprising Justice Elipe Dharma Rao
and Justice CT Selvam, citing a central government memo
dated August 13, 1997, said: "When the Constitution has
given an extra protection to the underprivileged communities
so as to ensure equal opportunities as guaranteed by the
Constitution, the banks are not justified in sleeping over
the matter of providing reservations in promotions for a
decade with no good reason to offer."
The petitions and appeals were filed by the SC/ST employees
associations of various nationalised banks, seeking a direction
to the banks to provide reservation in promotions to officers
from scale I to scale VII as per the instructions issued by the
Centre.
The banks, however, said promotion to officer grade is on the
basis of merit-cum-seniority, to which reservation policy cannot
be made applicable. They claimed that reservation is applicable
only in the first instance where promotion is from the clerical
grade to the lowest rank in the officer grade.
The rule of reservation will not apply
even to the next scale of middle
management level in scale II position, they said. They also
argued that the efficiency of administration of banks would
suffer if the reservation policy is followed.
Rejecting the arguments, Justice Dharma Rao, writing the judgment
for the bench, said: "We are unable to understand such a sweeping
and generalised argument advanced on the part of the banks, as if
all the employees belonging to these underprivileged classes are
inefficient and not suitable for promotion.
When the Union of India has directed the
banks to follow the rule of reservation in promotions
in all cadres, as early as in the year 1997, there is no impediment for
the banks to implement the same. However, for no better reason to be
appreciated, the banks are adamant in not implementing the office memo."
Citing the bleak picture of only a very few SC/ST officers occupying
high positions, the bench said, "this defeats the very purpose of
reservation enshrined in the Constitution. We must remember that even
the SC/ST candidates, who are now serving in officer cadres, have
been promoted only by virtue of their long service and merit and not
by availing themselves of the rule of reservation in promotions, as
has been provided for under Article 16(4A) of the Constitution."
It then directed the banks to implement the rule of reservation
for promotions to all cadres in the banking sector, within eight weeks.
Source:TOI
Govt to auction only 3 slots of 3G spectrum
11 December 2009, 01:58am IST
|
NEW DELHI: In a surprise move that could deprive
it of over Rs 5,000 crore in revenue, the government
has said the 3G telephony spectrum
available with it for sale currently could accommodate
only three operators.
A fourth slot has already been awarded to state-owned
MTNL (that operates in Delhi and Mumbai) and BSNL (rest of India).
It had earlier planned to auction spectrum to four private
bidders, in addition to the state-run firms.
The decision comes in the wake of the ministry of defence's
reluctance to vacate the designated spectrum (air waves) for
commercial use, official sources said, adding that the required notification would be issued soon.
The government has fixed the reserve price of spectrum
at Rs 3,500 crore for pan-India 3G spectrum and Rs 1,750 crore
for Wimax (wireless ineternet/broadband) and the auction is
scheduled to begin from January 14 next year.
The government had projected a revenue of Rs 25,000 crore
from the sale of spectrum, but this could now fall short of
estimates as it would have to forgo at least Rs 5,250 crore
due to cancellation of one slot.
Asked if the decision would require empowered group of ministers'
nod in view of the change, officials said it has been discussed by
the members and would be formally notified.
On ministry of defence refusing to vacate the spectrum, officials
said as per MoU with the department of telecom, 10 MHz of spectrum
was vacated immediately and another 10 MHz would be given by June, 2010.
Source:PTI
|
NEW DELHI: In a surprise move that could deprive
it of over Rs 5,000 crore in revenue, the government
has said the 3G telephony spectrum
available with it for sale currently could accommodate
only three operators.
A fourth slot has already been awarded to state-owned
MTNL (that operates in Delhi and Mumbai) and BSNL (rest of India).
It had earlier planned to auction spectrum to four private
bidders, in addition to the state-run firms.
The decision comes in the wake of the ministry of defence's
reluctance to vacate the designated spectrum (air waves) for
commercial use, official sources said, adding that the required notification would be issued soon.
The government has fixed the reserve price of spectrum
at Rs 3,500 crore for pan-India 3G spectrum and Rs 1,750 crore
for Wimax (wireless ineternet/broadband) and the auction is
scheduled to begin from January 14 next year.
The government had projected a revenue of Rs 25,000 crore
from the sale of spectrum, but this could now fall short of
estimates as it would have to forgo at least Rs 5,250 crore
due to cancellation of one slot.
Asked if the decision would require empowered group of ministers'
nod in view of the change, officials said it has been discussed by
the members and would be formally notified.
On ministry of defence refusing to vacate the spectrum, officials
said as per MoU with the department of telecom, 10 MHz of spectrum
was vacated immediately and another 10 MHz would be given by June, 2010.
Source:PTI
Rel Global, Airtel to build undersea cable
11 December 2009, 02:00am IST
|
NEW DELHI: A group of global telecom and technology
firms, comprising India's Reliance Globalcom and
Bharti Airtel, on Thursday signed an
agreement to build and operate a submarine cable
system with the world's highest capacity.
To be built at an estimated $400 million,
the Southeast Asia Japan Cable system (SJC)
would address broadband demand and sustain the
growth in data, web applications and Internet
traffic throughout Asia, a joint statement said.
The SJC system, measuring 8,300 km, will initially
link Singapore, Hong Kong, Indonesia, Philippines and
Japan, it added. The six-fibre-pair high-capacity submarine
cable system has a design capacity of 17 Terabits per
second (Tbps), and can be upgraded to 23 Tbps, the highest
capacity system ever built so far. The consortium includes
Globe Telecom (Philippines), Google (US), KDDI (Japan),
Network i2i, Reliance Globalcom (through FLAG Pacific Ltd,
Bermuda), Bharti Airtel and Telemedia
Pacific Inc Ltd (Hong Kong/Indonesia).
"We will now be uniquely positioned to provide to our
customers' voice, Internet and data services across the
entire Asian continent connecting the top 10 key business
markets in Asia Pacific," Reliance Globalcom President and
CEO Punit Garg said..
Source:PTI
|
NEW DELHI: A group of global telecom and technology
firms, comprising India's Reliance Globalcom and
Bharti Airtel, on Thursday signed an
agreement to build and operate a submarine cable
system with the world's highest capacity.
To be built at an estimated $400 million,
the Southeast Asia Japan Cable system (SJC)
would address broadband demand and sustain the
growth in data, web applications and Internet
traffic throughout Asia, a joint statement said.
The SJC system, measuring 8,300 km, will initially
link Singapore, Hong Kong, Indonesia, Philippines and
Japan, it added. The six-fibre-pair high-capacity submarine
cable system has a design capacity of 17 Terabits per
second (Tbps), and can be upgraded to 23 Tbps, the highest
capacity system ever built so far. The consortium includes
Globe Telecom (Philippines), Google (US), KDDI (Japan),
Network i2i, Reliance Globalcom (through FLAG Pacific Ltd,
Bermuda), Bharti Airtel and Telemedia
Pacific Inc Ltd (Hong Kong/Indonesia).
"We will now be uniquely positioned to provide to our
customers' voice, Internet and data services across the
entire Asian continent connecting the top 10 key business
markets in Asia Pacific," Reliance Globalcom President and
CEO Punit Garg said..
Source:PTI
Emaar calls off merger in Dubai
11 December 2009, 01:24am IST
|
DUBAI/NEW DELHI: In the backdrop of the debt crisis in the region,
Gulf real estate firm Emaar Properties has called off its proposed merger with
state-owned Dubai Holding, citing the deal is not "economically viable".
The move comes in the midst of realty firm Emaar-MGF, the Dubai entity's
JV with domestic company MGF Development, preparing an initial public
offering for over Rs 3,800 crore.
Emaar Properties has said the decision to cancel the proposed merger
with Dubai Holding was taken after intensive feasibility studies that
were undertaken by a group of international experts and economic analysts.
In a statement late Wednesday, Emaar noted the results of "these studies
proved that the proposed consolidation (with Dubai Holding entities)
discussed earlier was not economically viable in the current economic climate".
Last month, Dubai government shocked world markets after the government-owned
conglomerate Dubai World sought six more months to repay debts worth $59 billion.
The announcement not only dented investors' confidence but also sparked
fears of another financial turmoil. Emaar Properties is the developer of
the world's tallest building Burj Dubai
Source:PTI
|
DUBAI/NEW DELHI: In the backdrop of the debt crisis in the region,
Gulf real estate firm Emaar Properties has called off its proposed merger with
state-owned Dubai Holding, citing the deal is not "economically viable".
The move comes in the midst of realty firm Emaar-MGF, the Dubai entity's
JV with domestic company MGF Development, preparing an initial public
offering for over Rs 3,800 crore.
Emaar Properties has said the decision to cancel the proposed merger
with Dubai Holding was taken after intensive feasibility studies that
were undertaken by a group of international experts and economic analysts.
In a statement late Wednesday, Emaar noted the results of "these studies
proved that the proposed consolidation (with Dubai Holding entities)
discussed earlier was not economically viable in the current economic climate".
Last month, Dubai government shocked world markets after the government-owned
conglomerate Dubai World sought six more months to repay debts worth $59 billion.
The announcement not only dented investors' confidence but also sparked
fears of another financial turmoil. Emaar Properties is the developer of
the world's tallest building Burj Dubai
Source:PTI
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