Bank of Maharashtra to raise Rs 1000 cr via tier-II bonds

Public sector Bank of Maharashtra today said it will raise Rs 1,000 crore by issuing Basel-III compliant bonds on a private placement basis.

"Bank of Maharashtra has informed the BSE that the bank is proposing to raise Basel III compliant tier-II bonds amounting to Rs 1,000 crore by way of private/public placement," it said in a regulatory filing.

According to a Fitch Ratings report, Indian banks need USD 140 billion capital to ensure full compliance with the Basel-III norms by 2018-19. The Basel-III norms are aimed at bolstering banks resilience. Basel-III capital regulations are being implemented in India with effect from April 1, 2013 in a phased manner.

IDFC Bank buys 10 per cent stake in ASA International India for ₹ 8.5 crore

Newly launched private sector IDFC Bank has bought a 9.99 per cent stake in ASA International India Microfinance for about Rs 8.5 crore, the first investment by a lender in a microfinance institution.

ASA International India is a division of Dhaka-headquartered ASA, which operates in over 12 countries and plans to disburse $2.5 billion in loans among 6.6 million clients in 2015-16.

"We have taken a 10 per cent equity stake in the microfinance company called ASA that has footprint predominantly in the northeast," Rajiv Lall, managing director of IDFC Bank, told ET.

"ASA will give us access to their customers and that allows us to expand our lending operations. It also gives us the opportunity to open bank accounts for ASA's customers, so it's a win-win partnership. They need capital, we need customers - that's the essence of our transaction."

IDFC Bank will get a board seat in ASAI India and access to unbanked areas through its branches in the east and northeast. Ravi Shankar, head - Bharat Banking at IDFC Bank, will represent the bank on the ASAI India board.

ASAI India has 104 branches covering 22 districts in West Bengal, Assam, Tripura, Bihar and Uttar Pradesh. It had over 1.3 lakh borrowers at the end of December, a total loan portfolio of over Rs 60 crore and 400 employees, including 241 loan officers.

IDFC Bank, which started operations on October 1 with shareholders' funds of Rs 13,300 crore, intends to continue growing inorganically.

"We will continue to look at these kinds of investments. There are some partnerships that do not require an investment, so we will look at that as well," Lall said.

"We are partnering with many MFIs where we haven't invested but from whom we are buying portfolios on a regular basis and whom we are supporting with bank lending." An Indian bank's investment in another financial entity cannot exceed 10 per cent. By keeping its investment in ASAI India at less than 10 per cent, IDFC Bank can fund the MFI's loans, which will qualify as priority sector lending for the bank.

The Reserve Bank of India has mandated that banks must provide at least 40 per cent of their total loans to farmers, small businessmen, students, exporters and small-ticket home loan buyers.

Lall said that would be a tough challenge to meet in the near term. "It's unrealistic. For our size of balance sheet, we need Rs 20,000 crore of PSL, so where is that going to come from?" asked Lall. "I think it's safe to say that we will not be able to achieve that target by just doing organic lending just by ourselves. We will be relying on partners to help generate a lot these assets for us. We will be lending to institutions that are PSL eligible, we will be buying portfolios from institutions that have PSL assets and we will be doing our own lending directly to PSL-eligible customers."

Bandhan Bank, which started operations on August 23, has a strong presence in the eastern and northeastern regions. It has more than 600 branches in 24 states, with 240 of them in West Bengal.

IndusInd Bank ties up with online payment solution firm PayU India

IndusInd Bank has tied up with online payment solution firm, PayU India. This will help provide customers the full suite of consumer banking products online as well as payment innovations. The partnership is aimed at bridging the gap between conventional banking and new online payment systems.

"While the Indian consumers have accepted online payment systems and seamless modes of online payment like mobile wallet, with open arms, the trust they have in the Indian banking system remains unmatched. With this partnership, we are bringing the cutting edge online payments technology and a bouquet of conventional banking services," said Shailaz Nag, COO and Co-founder, PayU India.

"Through this tie-up, the bank's experience will be leveraged to tap and redefine the rapidly growing digital financial space for both retail and business customers," said Sumant Kathpalia, Head, Consumer Banking, IndusInd Bank.

The partners will make announcements about the new products and services in the next 4-6 months. The collaboration will help create co-branded digital consumer banking products that will revolutionise the way digital banking and payments have shaped up and is expected to attract new customers across demographies.

UPDATES ON LEAVE RULES.........

Casual Leave
1. Eligible for 12 days in a year.
2. Shall be earned on a pro-rata basis during
the first year of service - at the rate of one
day for each completed month or part
thereof.
3. Can be taken 4 days at a time. The
holidays and weekly offs prefixing/
suffixing
or falling within the period of Casual Leave
will not be treated as part of casual leave.
(The ceiling of total period of absence of 6
days including holidays was now removed in
10thBPS).
4. CL cannot be combined with any other
kind of leave.
Un availed Casual Leave
Casual leave not availed in a calendar year is
convertible into sick leave with full
substantive pay except during the first year.
It can be availed only on the grounds of
sickness. There is no time limit for availing
UCL accumulated in a year by clerical staff , however for officers UCL can b availed within three years of its accumulation e.g. UCL of 2012 can b availed upto 31.12.2015. After that it lapses. UCL can be
availed without MC for 4 days at a time once
in a year or two days at a time twice in a
year. For one day on any number of
occasions, MC is not necessary.
Privilege Leave
1. Calculated at the rate of one day for every
eleven days of active service. While
calculating PL, all kinds of leave availed
except CL shall be excluded.
2. Can be availed only on completion of 11
months of service.
Generally 4 occasions in a calendar year,
though one occasion may comprise even a
single day.
(known as PL under domestic grounds).
3. However, the reasons for the request by an
employee for leave on more than 4 occasions
in ayear are adequate and genuine and it is
not administratively inconvenient, such
leave may be granted. PL should be applied
before 15 days of the proposed date of
commencement of leave.
4. PL on medical grounds can be granted for
more than 4 days at a time on production of
Medical Certificate which will not be counted
in the above 4 occasions.
5. The restriction with regard to the number
of times of availing PL, mentioned in Para 3
above, does not apply to members of
Executive Committee of a Registered Trade
Union. A member of Executive Committee
can avail PL for any number of times for
organizational work.(of course, within his
eligible leave)
6. PL can be accumulated up to 270 days and
on retirement the encashment is restricted
only to 240 days.
Sick Leave
1. An employee is entitled to sick leave on
half substantive pay, at the rate of one
month for each year of service subject to a
maximum of 18 months (540 days) during his
entire service, provided that where an
employee has put in a service of 24 years, he
shall be eligible to additional sick leave at
the rate of one month for each year of
service in excess of 24 years, subject to 3
months of additional sick leave. For availing
sick leave the employee has to submit MC.
2. An employee can convert the half-pay sick
leave in to full pay sick leave.
But twice the period of leave will be debited.
3. During the first year of service sick leave
will be granted on prorate basis.
4. Sick Leave can be availed for any number
of days.
5. Sick Leave can be availed without Medical
Certificate by an employee for a maximum
period of 10 days in a calendar year not
exceeding two days at a time after
exhausting the Casual Leave.
6. Sick Leave can be clubbed with PL, ML and
UCL.
Maternity Leave
1. Maternity leave which shall be on
substantive pay shall be granted to a female
employee for a period not exceeding 6
months on any one occasion and 12 months
during the entire period of her service.
2. Within the overall period of 12 months,
leave may also be granted in case of
miscarriage/abortion/MTP.
3. Within the overall period of 12 months,
leave may also be granted in case of
hysterectomy up to a maximum of 60 days.
4. ML is available even in the first year of
service. Probationers are also eligible. But
the probation period will be extended to that
extent.
5. Leave may also be granted once during
service to a childless female employee for
legally adopting a child who is below one
year of age, for a maximum period of six
months, subject to the following terms and
conditions:-
i) Leave will be granted for adoption of only
one child.
ii) The adoption of a child should be through
a proper legal process and the employee
should produce the adoption-deed to the
Bank for sanctioning such leave.
iii) The Permanent Part-time Employees are
also eligible for grant of leave for adoption
of a child.
iv) The Leave shall also be available to
biological mother in cases where the child is
born through surrogacy.
v) The leave shall be availed within overall
entitlement of 12 months
during the entire period of service.
Paternity Leave
With effect from the 1st June 2015, male
employees with less than two surviving
children shall be eligible for 15 days
Paternity Leave during his wife’s
confinement. This leave may be combined
with any other kind of leave except Casual
Leave. The leave may be availed upto 15 days
before or upto 6 months from
the date of delivery of the child.
Extra-ordinary Leave
1. An employee is eligible for extraordinary
leave on loss of pay when no other kind of
leave is due to the employee.
2. This leave is granted not exceeding 3
months on any one occasion with a
maximum of 24 months in the entire period
of service. Can be combined with or in
continuation of any kind of leave except CL.
3. Period of leave on LOP shall not count for
increments and increment date will be
postponed.
Special Casual Leave for Blood Donation
Employees who donate blood to a recognized
blood bank or Bank sponsored blood
donation drive are eligible for special CL for
one day, on the day of blood donation,
subject to the production of satisfactory
documentary proof.
Special Leave for Vasectomy / Sterilization
( 1). 6 days CL for male employees for
undergoing Sterilization.
(2). 14 days special CL for female employees
who undergo non puerperal Tubectomy
operation.
3. 1 day special CL for female employee, who
had IUD insertions.
4. 7 days CL to male employees whose wife
undergoes Non Puerperal Tubectomy
operation subject to the production of MC
from the doctor who performed the
operation to that effect that the presence of
the male employee is essential for the period
of leave to look after his wife during her
convalescence after operation. Leave to
commence on the day of operation.
5. An employee developing post-operative
complication after sterilization may be
granted CL to that extent of the period for
which he or she is hospitalized for such post
operative complication,
subject to production of necessary certificate
from the concerned hospital authorities.
6. An employee is not entitled to special CL
after maternity leave, if the sterilization
operation, recanalisation was done during
the maternity leave.
Special Sick Leave
With effect from the 01.06.2015 special Sick
Leave up to 30 days may be granted to an
employee once during his/her entire period
of service for donation of kidney/organ.
Sabbatical Leave (Govt.Scheme) for Women
Employees
Permanent female employees with minimum
of 5 years of Service are eligible. In
exceptional circumstances, employees with
less than 5 years of service can also apply.
Purpose of leave is
medical grounds, care of family members or
children, higher studies, visit spouse, etc.
Period of leave shall be minimum of 3
months at a time and shall not be taken
more than once in a year, maximum of 2
years during entire career. Total period of
leave including earlier Sabbatical scheme,
EOL and extra-ordinary leave under Bi-
partite shall not exceed 3 years

Raise income tax exemption limit to Rs 5 lakh: Central Trade Unions

New Delhi: Trade unions today asked the government to increase the income tax exemption limit to Rs 5 lakh and the minimum wage to Rs 18,000 besides raising the minimum monthly pension to Rs 3,000 for all.

They also sought a special package for victims of the recent Tamil Nadu floods.

These demands were raised under a 15-point charter submitted by 11 central trade unions to Finance Minister Arun Jaitley during pre-Budget consultations held here. The Union Budget for the next financial year, 2016-17, is slated to be presented in Parliament in February end. It will take effect from April 1.

“We have demanded a minimum wage of Rs 18,000 per month which is higher than our earlier demand of Rs 15,000,” Bharatiya Mazdoor Sangh Zonal Organisation Secretary Pawan Kumar said after the meeting.

The Seventh Pay Commission has recommended Rs 18,000 as minimum monthly wage for central government employees and it should be the benchmark, he said.

All Indian Trade Union Congress Secretary D L Sachdev said: “We have also demanded Rs 3,000 minimum monthly pension for all and asked for a special package for flood ravaged Tamil Nadu to provide relief to workers as well as industry in the next Budget.”

Sachdev said that in view of price rise “we have also demanded from the government to increase the income tax exemption limit to Rs 5 lakh per annum”.

The union have also asked that fringe benefits like housing, medical and educational facilities and running allowances in railways should be exempted from Income Tax.

Unions also demanded that PSUs should be strengthened and expanded and the disinvestment of government shares in profit making PSUs should be stopped.

Besides, they said that the budgetary support should be provided for revival of potentially viable sick PSUs.

On the price rise, the charter said: “Take effective measures to arrest the spiralling price rise especially of food and essential items of daily use. Ban speculative forward trading in essential commodities, check on hoarding and universalise and strengthen Public Distribution System.”

Expressing concerns over steel and aluminium sectors, the unions said: “Relentless and increasing flow of import of industrial commodities including capital goods must be contained and regulated to prevent dumping and also to protect and promote domestic industries and prevent loss of employment.”

It also said that “FDI should not be allowed in crucial sectors like defence production, Railways, financial sector, retail trade and other strategic sectors. In other areas, terms and conditions for FDI should be made public.”