Tuesday, March 28, 2017

SBI likely to cut workforce 10% by 2019: Report

STATE Bank of India (SBI) may cut its total workforce by 10 per cent over the next two years, after the merger with six subsidiary banks. This is due to attrition, reduced hiring and digitisation, a top official told a news agency. "Manpower will go down with the period of time. Around 10 per cent reduction in two years may be a possibility," Rajnish Kumar, SBI Managing Director, told IANS in an interview.
The public lender currently has around 207,000 workforce and the merger of six entities -- SBBJ (State Bank of Bikaner and Jaipur), SBM (State Bank of Mysore), SBT (State Bank of Travancore), SBP (State Bank of Patiala) and SBH (State Bank of Hyderabad), Bharatiya Mahila Bank -- from April 1 will add...

Monday, March 27, 2017

Time is up: Govt asks HMT Watches to raise funds for salaries

TIME is almost up for HMT Watches as the once timekeeper of the nation has been asked by Centre to arrange funds on its own to clear pending salary dues of its employees.  
As many as eight central public sector enterprises under the Department of Heavy Industries (DHI) are under closure.  These include HMT Bearings, HMT Watches, HMT Chinar Watches, Tungabhadra Steel Products, Hindustan Cables, Hindustan Photo Films Mfg Co, HMT (Tractor Division) and Instrumentation Ltd's Kota unit. Giving details about three such entities -- HMT Bearings, HMT Watches and HMT Chinar Watches, Union Minister Anant Geete told Parliament recently...

Saturday, March 25, 2017

NTPC set to buy Miniratna SJVN: Report

NATIONAL Thermal Power Corporation (NTPC) is looking at buying stake in state-run Miniratna company – SJVN Ltd. This will strengthen the power giant's plan to become India’s biggest renewable energy producer. SJVN is a joint venture of government of India and government of Himachal Pradesh to generate clean...

Friday, March 24, 2017

NITI Aayog recommends disinvestment in 12 PSUs: Media report

GOVERNMENT thinktank NITI Aayog has recommended the stake sale in 12 central public sector enterprises (CPSEs). These PSUs include National Textile Corporation, Fertilisers and Chemicals Travancore, Hindustan Antibiotics, Scooters India and Hindustan Fluorocarbons.
A senior government official was quoted as telling a leading financial daily that this list of 12 PSUs has been sent to a core group of secretaries headed by the cabinet secretary. This group will...

Thursday, March 23, 2017

Crossing borders: NBCC to build social housing project in Mauritius

NBCC has signed an agreement with Mauritius government to develop a social housing project worth Rs 150 crore.
The state-owned construction firm will undertake construction of 700 duplex type houses with 50 square meter net floor area with two bedrooms, living and dining rooms, kitchen, bathrooms and toilets each in 18 months in Dagotiere and Mare Tabac.
"This is to inform that NBCC (India) Limited has signed an agreement with the...

Wednesday, March 22, 2017

Almost half of associate banks' offices will be shut down post-merger: Report

COUNTRY's largest lender State Bank of India (SBI), which will see five associate banks merge into it on April 1, has decided to shut down almost half the offices of these banks, including the head offices of three of them. This process will start from April 24.
"Out of the five head offices of the associate banks, we will retain only two. Three head offices of the associate banks will be unbound along with 27 zonal offices, 81 regional offices...

Tuesday, March 21, 2017

Will Centre listen to Uttarakhand HC directive to revive HMT?

GIVING some ray of hope for hundreds of workers in, HMT, the Uttarakhand High Court recently asked the Centre to explore the possibilities of reviving HMT and directed the management of the PSU that was once termed as the timekeeper of the nation, which has stopped production to pay all pending wages to its employees within two weeks.
The order was passed by Justice Rajeev Sharma on a plea seeking modification of an earlier order of the...

Monday, March 20, 2017

BSNL, MTNL merger to help both: BSNL CMD

BSNL CMD Anupam Shrivastava
BSNL CMD Anupam Shrivastava has said that BSNL-MTNL merger will be benficial for both the units. He adds that the merged unit will be "advantageous" for both the telecom units. He is, however, quick to add that issues pertaining to debt and salary structure will need to be sorted out first.
A Parliamentary panel report has pointed out that the Telecom Department is planning to place the merger proposal before the Cabinet by June.
The Standing Committee on Information Technology has earlier observed that, "On the plan for merger of BSNL and MTNL, the same would be taken to Cabinet before June."
Earlier, a top-level meeting at the Telecom Department last month discussed the possibility of merging both the entities that are facing financial stress due to increasing competition in the sector.
"There is synergy between BSNL and MTNL...There is no doubt about it, especially when we look at the enterprise and mobile business segments," Shrivastava told a news agency.
He said, it would be "advantageous" to the two organisations.
He said certain "impediments" that would need to be sorted out before the merger can actually take place. Variation in salary structure of employees of the two once telecom jewels of the state, which Shrivastava feels will need to be discussed with unions for consensus-building, besides MTNL's debt overhang.
"MTNL has a huge debt and that debt has to be looked into ...It should not happen that after the merger, the entity becomes heavily burdened," Shrivastava said.
On a positive note, a potential merger would enable the corporation to offer pan-India mobile services including in lucrative markets of Mumbai and Delhi, and infuse fresh capital to bolster the network, he said. MTNL offers mobile services in Delhi and Mumbai. BSNL, on the other hand, operates in rest of India.
"For the enterprise business too, a pan-India footprint is important. Typically, large enterprises have headquarters in Mumbai and Delhi, where we are not present. So, a complete pitch requires coordination with MTNL and vice versa," he said.
BSNL's enterprise business is growing at 35 per cent, but a potential merger and a pan-India footprint could push up growth rate to 45 per cent or thereabouts, he added.
The idea of merging the two firms was first mooted years ago by the then telecom minister Late Pramod Majahan and has been discussed. Officials said, however, that the talks on the merger have been revived at the instance of senior officials in the government. On the hurdles to the move staffing and salary related issues pose a big challenge. Also MTNL is debt-laden and while the move will be a positive for it, BSNL will have to bear the brunt. MTNL has been reeling under "serious" debt problem and is borrowing money to meet its day-to-day requirements.
In written reply to the Rajya Sabha in November last year, Communications Minister Manoj Sinha had said: "In case of MTNL, it has been going slow in upgradation of equipment during the last 4-5 years due to severe financial problems. MTNL is under serious debt burden and is borrowing money to meet its day to day requirements."
MTNL's standalone net loss has widened to Rs 819.96 crore, surpassing its total revenue, during the three-month period ended December 31, hit primarily by finance cost. The net loss surpassed its total income of Rs 690.59 crore.
The total debt of MTNL reached Rs 19,418.23 crore at the end of December 31, 2016, from Rs 11,542.3 crore in 2012-13, according to official data. In 2015-16, MTNL reported total annual revenue of Rs 3,197.41 crore and net loss of Rs 2,005.72 crore.
The losses of BSNL have narrowed however to Rs 4,890 crore for the nine month period of the current fiscal, from Rs 6,121 crore in the year-ago period.