Bank of Baroda, Dena Bank and Vijaya Bank to be injected with Rs. 5000 crore

The Bank of Baroda may get Rs 5,000 capital infusion from the Finance Ministry ahead of its united operations as a merged entity along with the Vijaya Bank and Dena Bank from April 1, 2019. In February, the government approved Rs 48,239-crore recap bonds in 12 PSBs. The latest recap bonds broadly fall into four categories:
a) equipping better-performing PCA (prompt corrective action) banks to be above regulatory PCA thresholds to help them come out of the framework (Allahabad Bank, Corporation Bank, who have already come out of the PCA);
b) Non-PCA banks that are close to the red line to ensure they don't fall into PCA (Punjab National Bank, Union Bank, Syndicate Bank and Andhra Bank);
c) PCA banks that have exited PCA to remain above PCA triggers (Bank of India, Bank of Maharashtra);
d) And other PCA banks that need to meet minimum regulatory capital norms (Central Bank, United Bank, UCO Bank and Indian Overseas Bank).
The government has so far pumped Rs 1.90 lakh crore into PSBs since it announced the recapitalisation plan in October 2017. The Finance Ministry has kept around Rs 5,000 crore as buffer for any last-minute contingency, for possible infusion into the merged entity of Bank of Baroda, Dena Bank and Vijaya Bank. The merger will create India's third largest bank with a total business of over Rs 14.82 lakh crore. When the three banks are merged, the combined entity's capital adequacy ratio will be at 12.25 per cent, with tier-1 capital at 9.32 per cent and net non-performing assets at 5.71 per cent. The merged entity will have nearly 9,500 branches.
Sources said the capital may be infused as Dena Bank is a weak PCA bank and it should not drag down the the overall balancesheet of the Vijaya Bank and Bank of Baroda on regulatory capital breach when they start operations from April 1 and also for lendings. MD and CEO of Bank of Baroda P.S. Jaykumar may head the merged entity, the sources added.
The government in September 2018 announced the merger of state-owned Vijaya Bank and Dena Bank with larger Public Sector Bank (PSB) Bank of Baroda to create the third largest lender after SBI and ICICI Bank in the country. The merger plan got the Union Cabinet's nod in January. It was part of the government's strategy to promote consolidation in the sector marred by loads of non-performing assets (NPAs). However, this is the first three-way merger in the public sector banking space.
According to UFBU the merger of the Bank of Baroda, Dena Bank and Vijaya Bank is "unwarranted" and will surely result in closure of branches. The combined NPA in Bank of Baroda, Dena Bank and Vijaya Bank was Rs 80,000, according to banking industry sources. However, analysts are not fully convinced of the synergies and are apprehensive of overlaps. While Vijaya Bank is strong in southern India, Bank of Baroda also has a national presence. There is likely to be some duplication of branches. The three banks actually mirror each other in terms of portfolio of assets and also the quality of portfolio. Dena Bank is in a bad shape with higher NPAs, higher cost to income and falling profitability. Its numbers will pull down some of the profitability numbers of the merged entity. Technology integration will be a big issue. Bank of Baroda recently upgraded its core banking technology from Finacle 7 to Finacle 10. It was a huge exercise lasting for months. BoB was targeting an upgrade of its core banking of foreign offices from the older version. They will now have a huge task at hand to put all the three banks on the same platform.

Online Test for promotion from Sub-staff to Clerk will be held on 21.04.19; Last date of receipt of online application- 14.03.19

Online Test for promotion from Subordinate Cadre to Clerical Cadre will be held on 21.04.2019; Last date of receipt of online application - 14.03.2019.

Tentative Vacancies in Clerical Cadre to be filled through Promotion: 180.

ELIGIBILITY CRITERIA: Employees in Subordinate Cadre, including Part Time employees in Subordinate Cadre fulfilling the eligibility criteria as given below shall be eligible to be considered for promotion to Clerical Cadre:-

The applicants should fulfil the criteria of educational qualifications and experience as under, as on the last date of receipt of application i.e. 14.03.2019 as per provisions of Settlement dated 18.08.2011 circulated vide PAD Circular No.53 dated 19.8.2011 read with modifications circulated in the above referred circulars:-

S. No.        EDUCATIONAL QUALIFICATIONS           EXPERIENCE

1.               Graduate                                                       2 years of service

2.               10 + 2 or equivalent                                      3 years of service

3.                Matriculate                                                   3 years of service

4.                Non-Matriculate                                           8 years of service

For more details refer HRMD Circular No. 450 dated 06.03.2019.

On 13.3.2019, UFBU discussed Mandate, Retirees & Pension issues, 5 Day Banking, Career Path for Award Staff and Salary Structure

In meeting held on 13.03.2019, UFBU discussed Mandate Issue, Retirees Issues, Pension Issues, 5 Day Banking, Career Path for Award Staff and Salary Structure. It is decided to meet IBA Negotiating Committee Chairman for mandate issue. After that next course of action will be decided.

Corp. Bk, Allah. Bk, PNB, UCO Bk, Sy. Bk, IOB, CBI, UBI, United Bk, Andhra Bk, BOI & BOM to get Rs.48,239 crore capital infusion

The Government has approved Rs.48,239 crore in capital for 12 Public Sector Banks, including Allahabad Bank, Corporation Bank and Punjab National Bank, taking its total infusion into state-run lenders to almost Rs.1 lakh crore so far this fiscal, financial services secretary Rajeev Kumar said on Wednesday.

The move is part of the government’s proposed Rs.1.06 lakh crore infusion into capital starved PSBs in FY 2018-19 against Rs.88,139 crore a year before.

The entire infusion will be through recapitalisation bonds. It is expected to help PNB, Union Bank, Andhra Bank and Syndicate Bank avoid falling into the Prompt Corrective Action (PCA) framework, apart from bolstering the capital base of various PSBs to facilitate greater lending to sensitive sectors like MSMEs and agriculture ahead of polls.

Similarly, higher capital could enable PCA banks such as Allahabad Bank and Corporation Bank to get out of the corrective regime. Allahabad Bank’s net non-performing assets stood at 7.7% and Corporation Bank’s net non-performing assets touched 11.47% as of December 2018. But with the large infusion, the ratio could be improved to 6% (net NPA above 6% is one of the triggers for PCA action) or below, officials said.

PSBs that have already exited the PCA (Bank of India and Bank of Maharashtra) will receive capital to avoid getting into it again, while some other weak banks like Central Bank of India, United Bank of India, UCO Bank and Indian Overseas Bank will get recap bonds to just meet regulatory norms. In December 2018, the government had announced that it would provide an additional Rs.41,000 crore capital to PSBs this fiscal, over and above the budgeted Rs.65,000 crore.

However, despite the infusion of around Rs.2.45 lakh crore since 2014-15, the share of state-run banks in the market capitalisation of all banks has dropped sharply in the current NDA regime from around 42% in 2014 to just around 26% now. Of course, without the government support, many of the bad-loan-hit banks would have fallen short of meeting their regulatory capital requirement. However, this has intensified calls for privatising weak PSBs and not just getting LIC to bail out some of them (LIC’s recently completely acquisition of 51% stake in IDBI Bank, saving the government the need to further capitalise the debt-laden lender this fiscal).

In the latest round, Corporation Bank led the pack in getting recapitalisation bonds worth Rs.9,086 crore, followed by Allahabad Bank Rs.6,896 crore, PNB Rs.5,908 crore, Bank of India Rs.4,638 crore, Union Bank Rs.4,112 crore, IOB Rs.3,806 crore, UCO Bank Rs.3,330 crore, Andhra Bank Rs.3,256 crore, United Bank Rs.2,839 crore, Central Bank Rs.2,560 crore, Syndicate Bank Rs.1,603 crore and Bank of Maharashtra Rs.205 crore.

The finance ministry believes that the worst is over for the state-run banks and the recent improvement in their performance will be further bolstered by the infusion. Gross NPA ratio in the banking system is expected to ease for the first time in almost a decade to 10.3% by the end of 2018-19 under the baseline scenario, from as much as 11.2% a year ago, according to the latest RBI projection. This is mainly due to easing concerns about the NPAs of state-run banks, which account for an overwhelmingly large share of these bad loans.

As such, NPAs of PSBs dropped Rs.23,860 crore in the first half of the current fiscal from a peak of Rs.9.62 lakh crore in March 2018, in a sign that the worst is behind, the financial services secretary had said.

In Negotiations held on 21 Feb.19, IBA agreed to improve mandate upto Scale-V. AIBOC & NOBO did not participate in negotiations

In Negotiations held on 21st February 2019, IBA agreed to improve mandate upto Scale-V. As AIBOC & NOBO did not participate in talks, IBA offered to continue negotiations with workmen unions only.

AIBOC & NOBO decided to not to participate in talks with IBA untill Pension up-dation and family pension issues are not included

AIBOC and NOBO decided to not to participate in Bi-Partite negotiations with IBA untill Pension up-dation and family pension issues are not included.

Online Exam from Clerical to JMGS-I will be held on 7th April 19. Tentative vacancies to be filled through written test are 3478

Online Exam from Clerical Cadre to Junior Management Grade Scale-I will be held on 7th April 2019. Tentative vacancies to be filled through written test are 3478.

DA payable to employees for the Qtr February to April 2019 shall be 611 slabs i.e. an increase of 4 slabs from the current level

 DA payable to employees for the Quarter February to April 2019 shall be 611 slabs i.e. an increase of 4 slabs from the current level

In terms of clause 7 of the 10th Bipartite Settlement dated 25.05.2015 and clause 3 of the Joint Note dated 25.05.2015, the rate of Dearness Allowance payable to workmen and officer employees applicable for the quarter February to April 2019 shall be 61.10% of ‘Pay’ against 60.70% of ‘Pay’ for the previous quarter.

For Pensioners the increase is of 70 slabs from the current level.

In Bipartite talks held on 2 Feb IBA improved its offer to 10% & agreed for merger of DA at 6352 pts for formation of new scales

In Bipartite talks held on 2nd February 2019,  IBA improved its offer to 10% but unions did not agree to it. IBA agreed for merger of DA at 6352 ponts for formation of new scales of pay. There were discussions on mandate issue also but it was inconclusive.

For detailed circular Click: http://aipnbsf.org/files/NCBE%20Cir.%204_0.pdf

In Meeting of Core Group(Workmen) held on 1st Feb 2019 issues relating to leaves, pension,disciplinary action etc were discussed

In Meeting of Core Group (Workmen) held on 1st Feb 2019 issues relating to compensation on transfer, festival advance, leaves, problems in fitment of ex-servicemen, definition of family for medical insurance, pension and disciplinary action etc. were discussed.

For detailed circular Click: http://aipnbsf.org/files/NCBE%20Cir.%203_0.pdf