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Monday, June 1, 2015

SBI Associates Strike June 4 And Bank Strike On June 24

Unions of associate banks of State Bank of India call for strike on June 4 & 24-DNA
Our demand is that these five associate banks should be brought out of the ambit of the SBI Act and be allowed to operate as any other public sector banks," the union leaders affiliated to the All-India Bank Employees Association said here today

Five associate banks of State Bank of India have called for strike on two days this month demanding that they be de-linked from their parent entity and not be merged with it.

While June 4 strike is proposed to be held by the unions of these associates banks, the June 24 call seeks nationwide support by involving other bank employees.

State Bank of Bikaner & Jaipur, State Bank of Travancore, State Bank of Mysore, State Bank of Hyderabad and State Bank of Patiala are the five associates of the country's largest, state-owned lender SBI.

"Our demand is that these five associate banks should be brought out of the ambit of the SBI Act and be allowed to operate as any other public sector banks," the union leaders affiliated to the All-India Bank Employees Association said here today.

"These associate banks are performing well and SBI wants to merge them so as to expand its balance sheet. We are against any such mergers," they said.

The All India Bank Employees Association (AIBEA) last week called for a nation-wide strike on June 24 in support of various demands of the State Sector Bank Employees Association.SSBEA, under its umbrella, has various unions of associate banks of SBI which are also associated with AIBEA.

Banks gearing up to appoint internal ombudsman-Hindu Business Line 02.06.2015

Soon, customers will be able to get their grievances related to banking services redressed at the bank level itself. This follows the RBI directive asking banks to appoint an internal ombudsman.
If a customer is still dissatisfied with the solution provided by the internal ombudsman, he/she can take it up with the central bank’s banking ombudsman.
Service quality

In a bid to beef up customer service quality and meet the RBI’s directive, banks are gearing up to appoint their respective internal chief customer service officer (CCSO).Earlier this month, the RBI advised all public sector banks and some private and foreign banks to appoint an internal ombudsman.
At present only 11 banks, including Punjab National Bank, Union Bank, Oriental Bank of Commerce, Indian Overseas Bank, Allahabad Bank, Dena Bank and Corporation Bank, have an internal ombudsman each.
 

Bank directors’ pay capped at 10 lakh/year-Times of India

In a bid to enable private banks draw more talent on to their boards, Reserve Bank of India has permitted lenders to compensate non-executive directors. However, the total level of compensation has been capped at Rs 10 lakh per annum per director.

In a circular to all banks RBI said that to bring in professionalism to the boards of banks and to enable them attract and retain professional directors, it is essential that such directors are appropriately compensated. This is a departure from its present stance whereby banks in private sector pay only sitting fees to non-executive directors. The part-time chairman however, is being paid a fixed remuneration with the approval of RBI.

In terms of RBI's directive the board of directors would formulate and adopt a comprehensive compensation policy for non-executive directors. "In addition to the directors' compensation, the bank may pay sitting fees to the non-executive directors and reimburse their expenses for participation in the Board and other meetings, subject to compliance with the provisions of the Companies Act, 2013," the directive said. The compensation is subject to an approval from the central bank and would have to be disclosed by the banks in their financial statements

Although the Companies Act allows up to 1% of a firm's profit to be paid out as commissions to board members, RBI hitherto did not permit part-time directors of banks (except non-executive chairmen) to be paid any remuneration other than sitting fees. The proposal to introduce compensation for non-executive directors was first broached in the report of the committee to review governance of boards of banks in India headed by PJ Nayak.

The Nayak committee had said that the inequality in board compensation between public sector and private sector banks would get further aggravated if a share of profits is paid to private sector bank board members in accordance with the Companies Act. Also there exists inequality in board compensation between private sector bank boards and boards of non-banks, because RBI prevents the Companies Act provisions from being made applicable to private sector banks. The panel had recommended allowing compensation to directors of private banks in a phased manner based on their profitability.

The central bank on Monday also relaxed norms relating to bank investing in infrastructure bonds floated by their peers. The relaxation is subject to the investment being capped at 2% of the investing bank's tier I capital. Also not more than 20% of the primary issue size of such bond issuance can be allotted to banks

http://timesofindia.indiatimes.com/business/india-business/Bank-directors-pay-capped-at-10-lakh/year/articleshow/47507932.cms

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