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The long pending wage revision talks between the General Insurers' (Public Sector) Association of India (GIPSA) and the various employee unions have begun in a bad taste.<br /><br />The talks were held on Wednesday.<br /><br />The GIPSA, the lobby body for the four government owned multiline non-life insurers and the General Insurance Corporation of India (GIC Re) made their offer that was expected to be rejected and the unions rejected the same.<br /><br />The wage revision for the public sector general insurance employees was due from August 1, 2017.<br /><br />"The GIPSA offered seven per cent hike on the wage bill (without any wage arrears from 2017) or five per cent wage hike with two per cent of arrears," Sanjay Jha, Secretary Standing committee (General Insurance, All India Insurance Employees Association-AIIEA), told IANS.<br /><br />Jha said the AIIEA and other unions have rejected the 'disappointing' offer.<br /><br />According to him, the Joint Forum of Trade Unions and Associations will hold demonstrations during the lunch recess demanding a respectable wage offer maintaining insurance sector parity.<br /><br />"The financial position of the companies in 2017 was good. There is no reason for the management to make such an offer. Perhaps it is done to delay the wage revision further," said Vijay Sharma, President, National Confederation of General Insurance Officers Association (CONFED) and All India President of New India Assurance Officers Association.<br /><br />Sharma said the employees expect at least a 15 per cent hike offer, similar to what was given to the employees of Life Insurance Corporation of India.<br /><strong>SEE ALSO:</strong><br /><a href="https://www.businessinsider.in/thelife/personalities/news/pankaj-tripathi-could-have-been-a-politician-like-his-character-in-mirzapur/articleshow/92403253.cms">Pankaj Tripathi could have been a politician like his character in Mirzapur</a><br /><a href="https://www.businessinsider.in/business/ecommerce/news/recommerce-platform-cashify-raises-90-mn-in-its-series-e-funding/articleshow/92402742.cms">Recommerce platform Cashify raises $90 mn in its Series E funding</a><br />

PSU insurance unions angry with the 7% salary hike offer, seek LIC-like hikes

<ul><li><strong>The Indian government has decided to merge 10 state-owned banks into four, a move that has been cheered by many market participants.</strong></li><li><strong>These mergers can be a challenging process and take at least until April 2020 to materialise, according to CLSA.</strong></li><li><strong>In the meantime, competing banks will gain market share as the 10 banks focus on executing the mergers and consolidating the business and not on growing the franchise.</strong></li><li><strong>These expectations from the brokerage are based on similar mergers that have taken place in recent years.</strong></li></ul>The Indian government has decided to merge 10 state-owned banks into four, a move that has been cheered by many market participants. <br /><br />As a part of the merger, Punjab National Bank (PNB) will be merging with Oriental Bank and United Bank which will be the second largest public sector bank in India. While PNB will retain its identity as the anchor bank, it will be ‘acquiring’ the other two smaller banks.<br /><br />Canara Bank will merge with Syndicate Bank to become the fourth largest bank. Union Bank of India will subsume with Andhra Bank and Corporation Bank to turn into the fifth largest state-owned bank.<br /><br />Indian Bank and Allahabad Bank will also merge to become the seventh largest public sector bank.<br /><br />However, despite these moves, the country's largest lender, the State Bank of India, may emerge as a big winner. This may help SBI's share price that is reeling near a six-month low at this point.<br /><br />Even the private banks like ICICI Bank, HDFC Bank, and Axis Bank, may gain more customers despite the reach of their government peers in the time that these proposed mergers are executed.<br /><br /><strong>The following expectations from the brokerage are based on similar mergers that have taken place in recent years.<br /></strong><br /><strong>1.</strong> The mergers may be effective from April 1, 2020. The merger of Bank of Baroda, Vijaya Bank, and Dena Bank was announced around mid-September 2018 and was effective by April 1, 2019.<br /><br /><strong>2.</strong> Generally growth suffers during the merger process but over the medium-term consolidation of infrastructure does improve profitability.<br /><br /><strong>3.</strong> Low-cost savings and deposits grow faster than loans and advances.<br /><br /><strong>4.</strong> The investors in anchor banks-- in the current scenario PNB, Canara Bank, and Indian Bank-- will get a better deal in the merger.  This will offset some of the pain and price erosion of having to share the burden of weaker banks. Bank of Baroda shareholders had an advantage of 8-9% in the share swap deal during the merger with VIjaya Bank and Dena Bank. <br /><br /><strong>5.</strong> Between the merger announcement and the listing of merged shares, Bank of Baroda, Vijaya Bank, and Dena Bank underperformed the PSU-bank Index, and SBI fared better.<br /><br /><strong>6.</strong> With many PSU banks focussed on merger and integration, SBI and private banks will be better placed to gain market share.<br /><br /><strong>SEE ALSO:</strong><br /><a href="https://www.businessinsider.in/business/indian-government-merges-ten-public-sector-banks-to-form-four-large-entities/articleshow/70910392.cms" data-type="tilCustomLink" target="_blank">Indian government decides to merge ten public sector banks to form four large entities</a><br /><br />

SBI and private banks may gain customers from India's government banks' mergers

<ul><li>Five years on, their combined market value increased by ₹2.2 trillion, which is significantly lower than the invested value<br /></li><li>Nine of 19 PSBs reported current value of investment higher than the investment amount. <br /></li><li>This year, the central bank has cut interest rates thrice by a net 100 basis points or 1% (before this week’s rate cut), but banks passed on only 29 basis points of this benefit to customers.<br /></li></ul><br /><br />The Government of India and the country’s largest insurer LIC made a losing bet on Indian public sector banks (PSBs). In the last five years, both of them invested a massive ₹3 trillion into 19 such banks.<br /><br /><br />Five years on, their combined market value increased by ₹2.2 trillion, which is significantly lower than the invested value, said a report by India Ratings and Research.<br /><br /><br />“Nine of 19 PSBs reported current value of investment higher than the investment amount. The key banks among them are Indian Bank, State Bank of India, Bank of Baroda,) and Canara Bank,” said the report. A large chunk of the market value contribution, by around 53% came from the country’s largest bank, SBI.<br /><br /><br />When the government kicked off its ‘Indradhanush’ (meaning Rainbow) plan to recapitalise banks, they were not looking out only for a return on their investment. They also wanted banks to push credit growth in a country where growth has been slowing down.<br /><br /><br /><strong>The Quicksand<br /></strong><br />Unfortunately, loss-ridden banks with toxic loans dragging them down, could neither help themselves nor consumers, and definitely not the country’s economy.<br /><br /><br />“In reality, the capital infused was largely consumed to tide over losses resulting from provisions required on non-performing assets,” the report said, calling it a quicksand.<br /><br /><br />This has been the case with Reserve Bank of India’s (RBI) interest rate cuts as well. In the last one year, the central bank has cut interest rates thrice by a net 100 basis points or 1%, but banks passed on only 29 basis points of this benefit to customers, swallowing most of it to fill their own money pit. <br /><br /><br />This month, the central bank cut interest rates by another 35 basis points and promised to take “<a href="https://www.businessinsider.in/business/rbi-policy-update-asks-banks-to-cut-lending-rates/articleshow/70567837.cms">whatever steps necessary </a>to make banks pass them on”.<br /><br /><br /><strong>Kickstarting the economy <br /></strong><br /><br />Like the government, RBI also wants to push for growth, as it predicts that it will fall top 6.9% this year, below their earlier estimates. Yet, helping banks to ensure <a href="https://www.businessinsider.in/business/india-gdp-growth-may-fall-below-7-says-crisil/articleshow/70481459.cms">growth is </a>not a strategy that is working.<br /><br /><br />Whatever little credit growth that India saw came from private and foreign banks, shadow banks and mutual funds. In fact, the share of state-owned banks in total loans fell from around 61% to 46.5%, in the last five years in spite of government support.<br /><br /><br />India Ratings suggests that PSBs should look at management overhaul, lengthen the tenure of top management, bringing in private sector leaders and link their pay with stock performance.<br /><br /><br />“Without structural reforms in place, the government will have to continue to inject capital into banks in times of stress, which will strain its own finances and hinder efforts for fiscal consolidation,” the rating agency said. <br /><br /><br /><br />

Indian government’s ₹3 trillion gift to banks ended in a money pit

<p></p><div class="KonaFilter image-container float_right"><div class="image on-image"></div><p></p></div>ESPN has <a href="http://espnmediazone.com/us/press-releases/2015/02/169505/">suspended Keith Olbermann for a week</a> after he engaged in a series of Twitter fights with Penn State University students and alumni.<p>The arguments originally stemmed from a tweet directed at Olbermann about PSU's annual THON dance marathon. This year's THON raised more than $13 million for the Four Diamonds Fund, a charity supporting children with pediatric cancer and their families, <a href="http://www.collegian.psu.edu/news/campus/thon/article_3c10df92-bacd-11e4-8827-3b4dcd96e88e.html">according to PSU student newspaper The Daily Collegian</a>.</p><p>The network <a href="http://espnmediazone.com/us/press-releases/2015/02/169505/">released the following statement Tuesday</a>:</p><p style="padding-left: 30px;">We are aware of the exchange Keith Olbermann had on Twitter last night regarding Penn State. It was completely inappropriate and does not reflect the views of ESPN. We have discussed it with Keith, who recognizes he was wrong. ESPN and Keith have agreed that he will not host his show for the remainder of this week and will return on Monday. The annual tradition of THON and the efforts of the students of Penn State to fight pediatric cancer should be applauded.</p><p>Olbermann originally responded to the PSU alum's tweet about THON by saying "...Pitiful," likely meant to be a joke playing off of the PSU motto "We Are!" Here's Olbermann's tweet:</p><div><div></div></div><p class="embed-spacer">Olbermann explained the tweet later Monday evening:</p><div><div></div></div><p class="embed-spacer"></p><p>It got worse from there. <a href="http://deadspin.com/espn-suspends-keith-olbermann-for-penn-state-tweets-1687751753">Deadspin collected some of Olbermann's more colorful responses</a> when PSU students and alumni began to criticize the ESPN personality.</p><p>Here's what Olbermann had to say Monday night:</p><div><div></div></div><p class="embed-spacer"></p><div><div></div></div><p class="embed-spacer"></p><div><div></div></div><p class="embed-spacer">Olbermann apologized for his previous night's remarks in a tweet Tuesday afternoon:</p><div><div></div></div><p class="embed-spacer"></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/espn-new-sportscenter-studio-2014-6">We Got An Inside Look At ESPN's New SportsCenter Studio -&#xa0;And It's Awesome</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="kzcGpibjq3eYWje3GGvhqbsA7bz8c8xw" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

ESPN suspends Keith Olbermann after a series of nasty tweets insulting Penn State students

<br /> On Wednesday, Punjab National Bank , the third largest public lender in the country, shocked <keyword id="6355178" type="UNKNOWN" weightage="100" keywordseo="Dalal-Street">Dalal Street</keyword> after it posted the biggest net loss in India's banking history at Rs 5,367 crore.<br />
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After PNB's results, the total losses of nine out of 18 public sector banks who have declared their March earnings till May 17 now stands at a whopping Rs 14,808 crore. <br />
<br /> The crisis in the <keyword id="34507" type="UNKNOWN" weightage="100" keywordseo="banking-sector">banking sector</keyword> is hitting new lows every day after the Reserve Bank of India's decision to force banks to acknowledge their bad assets in their balance sheets by March 2017. <br />
<br /> Aside from PNB <keyword id="6358007" type="CITY" weightage="100" keywordseo="Bank-of-Baroda">Bank of Baroda</keyword> gave a similar jolt to the Street when it reported quarterly losses of Rs 3,230 crore on Friday. The third highest loss figure this quarter has come from <keyword id="6368628" type="CITY" weightage="100" keywordseo="Syndicate-Bank">Syndicate Bank</keyword> which reported losses of Rs 2,158 crore on Tuesday. <br />
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The PSU banking sector has been the biggest drag on the market so far this month with the Nifty PSU Bank index slumping 6 per cent in the past five days. <br />
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The total amount of March quarter losses could still rise with six PSBs scheduled to report their numbers in the coming week with the mother of them SBI yet to come. <br />
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Image credit: Indiatimes<br />
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You Searched For "PSU" and got 5 results

PSU insurance unions angry with the 7% salary hike offer, seek LIC-like hikes

IANS

SBI and private banks may gain customers from India's government banks' mergers

Sriram Iyer

Indian government’s ₹3 trillion gift to banks ended in a money pit

Katya Naidu

ESPN suspends Keith Olbermann after a series of nasty tweets insulting Penn State students

Peter Jacobs

PSU banks in trouble: Nine banks report net losses of Rs 14,000 crore so far

BI India Bureau

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