BREAKING NEWS ""****11th BP charter of demand posted 20.09.2016***Out of 2.15 lakh ATM in India only 40000 ATM in Rural Are --- HOw the problem solve- blog post date 26.11.2016*****Goods and Services Tax (GST) – What is it and how would it affect Business activity in India ----must read post date 05.08.16****"Bank Merger List finalized in Ministry of Finance See mega list where you are?????******Aug 2016 DA increased 35 slab (3.50%) ie 455 @ 45.50% For Pensioners increase 29 slab****BANK MERGER FINALIZED SEE MERGER LIST OF INDIAN BANK*****Expected DA for MAY 2016 – Bank Employees posted 14.03.2016"****Income Tax Slabs and Rates for FY 2015-16 and AY 2016-17**"Basic comparision Bank Staff vs Lic employee ....See where the Bankers stand.......""**** created inside my main blog please visit for latest 11th BP news first"*****New DA FORM FEB 2016 WILL BE 43% for bank employee****PAN for cash transactions over Rs 2 lakh mandatorys****Comparison of Salary of Bank Staff and Central Govt Staff post 7th CPC must read must read ***** Government Plans to Privatize IDBI Bank: Jayant Sinha*** ****Three Bank may be forced to look at a merger in 1st stage*****Indian Overseas Bank and Bank of India look particularly weak-report by Moody's Investors Service************""

Tuesday, January 24, 2017


State Bank of Mysore (SBM), an SBI associate, today reported a loss of Rs 20.25 crore for the quarter ended December 31, on higher provisioning.
The bank's net profit during the corresponding quarter in 2015-16 was Rs 26.94 crore.
Total income increased to Rs 1,978.85 crore during the reported quarter from Rs 1,940.22 crore earned in the year ago period, the bank said in a BSE filing.
During the October-December quarter of 2016-17, the bank made provisioning and contingencies to the tune of Rs 384.85 crore as against Rs 253.91 crore in the previous fiscal.
The gross non-performing assets (NPAs) were at 14.46 per cent of the gross advances as of December 31, as against 5.48 per cent in last fiscal.
Net NPAs or bad loans stood at 9.22 per cent of net advances, slightly up from 3.12 per cent a year ago.

*Suggestions for 11th BPS- from Nahar Prakash

1. Stagnation Increment After 2 Years instead of 3 Years
2. Total Stagnation Increment 10
3. Privilege leave Accumulation Upto 300 Days & 300 Days Encashment at the Time of Retirement
4. Encashment 0f Privilege Leave 30 days Each Year to overcome the problems of Staff Shortage (If Leave balance Lapses only)
5. Special Pay Merge with Basic
6. Conyenace Allowance upto Exempted in Income Tax.
7. Mobile , Newspaper , Petrol , Furniture , Curtain at par with Officer.
8. Create New Post Super Spl Assistant/Head Clerk/-Deputy BM Etc for Those Who Completed 24 Years Service and have CAIIB OR Post Gragrduate and give Pay Structure & All facilities of Scale 1 Officer Except Transfer. This will help union keep the Award Staff Strength & Bank also get Experienced Staff with local knowledge for Businesses Development & Recovery.
9. Unavailed Casual Leave No need of Medical Certificate.
10. Sick Leave upto 15 Day's No Medical Certificate.
5 Days Week
All Saturday Holiday

Micro, Small & Medium Enterprises: MSME

Contribution of MSME- Micro, Small and Medium Enterprises is 37.5 % of India’s GDP, 45% of the manufacturing output and 40% of the exports. In other words, this sector has shown an average growth of 12% in the last Five-Year Plan, which is higher than the annual increase of GDP. National Policy for manufacturing envisages a contribution of manufacturing sector from 16% to 25% in India’s GDP by 2022. After Agriculture, this sector generates largest employment. A growth in MSME sector can ensure industrialization in the backward areas also. They have already become the nursery of innovation and entrepreneurship. They are dispersed widely throughout the country and produce a diverse range of products and services to meet the demands of the national & international value chains, local and the global market. They help in generating foreign exchange for the country and contribute to the GDP of India. Active participation has been observed by this sector for the last fifty years. This sector does not require huge investment by any entrepreneur. Units under this sector can also act as ancillary unit of large scale industries.

Micro, Small and Medium Enterprises Development Act, 2006 – was enacted by Indian Parliament, published in Government Gazette on 16th June, 2006 which came into force with effect from 2nd October, 2006.

MSMED Act 2006 Definition of MSME                                                                         (In Lacs)
Initial Investment in Plant & Machinery
Category/Enterprise SizeMicroEnterpriseSmall EnterpriseMedium Enterprise
Manufacturing25.0025.00 to 500.00500.00 to 1000.00
Service10.0010.00 to 200.00200.00 to 500.00

There are 32 million MSME units in India, according to the latest survey, of which, 95% of the MSME units are unregistered. Unorganized sector consists of almost 30 million units.  Of the total MSME units 50% are in rural area.
Inspite of this fact that there is immense potential in this sector, yet it suffers from various constraints to its growth. There is always inadequate capital infusion with insufficient data for credit requirement. Poor infrastructure and inadequate market linkage are the constraints in the growth of MSME. It suffers because of high cost of credit which even does not reach on time, non-availability of collaterals in the hands of entrepreneurs, legal hassles in getting licenses, taxation (Both direct and indirect) constrains. Non financing is the result of Illiteracy/Ignorance/inability/un-willingness to share information. Mindset of the individuals working in unorganized sector may also be one of the reason for backwardness and poor growth.
The Central Government has realized the potential of MSME Sector in country’s growth and has taken various steps in promoting MSME and has also advised state governments to take initiatives.
Some of the steps include constitution of Nodal Institutions/bodies to promote, nurture and look after MSME:
Name of the Scheme/ InstituteNature of Assistance/ Facility
National Small Industries Corporation (NSIC)Promoting Finance and Marketing to SSI Units by supplying machinery on hire-purchase and lease hold basis
Credit Linked Capital Subsidy Scheme (CLCSS) through various Banks and Financial InstitutionsHelps for Technology up-gradation in Micro and Small Enterprises. The scheme provides a subsidy of 15% on finance from FIs/Banks for Rs.100.00 Lacs for investment in machinery. (Max. Subsidy Rs.15.00 Lacs)
Small Industry Bank of India (SIDBI)Finances on selective basis to Small Sector in promoting manufacturing and coordinating financing institutions in developing industries by refinancing.
PMEGP Training ProgrammePromotes training for micro and small sector entrepreneurs with finance facility and subsidy thereon. The facility is available to units with finance up-to Rs.25.00 lacs in manufacturing and Rs.10.00 Lacs in service sector and subsidy is allowed @25%  (35% to special category borrowers)
Small Industries Development Agency (SIDA)A single window service agency to help SSI units
National Bank for Agriculture (NABARD)Helps and refinances agricultural based direct and indirect farming and agro processing industry.
Technology Up-gradation Fund (TUF)TUF helps those units who want to improve technology skills. It provides 15% subsidy in the form of margin money to Textile sector and Jute sector and interest subsidy up-to 5% in TUF compatible specified machinery up-to Rs.200.00 Lacs
Credit Guarantee fund Trust for Micro and Small Enterprises (CGTMSE)Provides assistance to micro and small units by promoting collateral free loan through FIs/Banks.
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) through coir boardPromotes assistance to coir industry  for technology up-gradation, new product development capacity building and market development etc
Export Import Bank (EXIM Bank)For promoting Exports of various products and imports of essentials the bank provides credit assistance.
Moreover various states in India have also taken steps during the course of time by constituting various nodal agencies/funds/policies like State Finance Corporations, Handicraft Development Boards, Industrial Development Corporations, Small Industrial Development Corporations, District Industry Centers, Khadi and Village Industries Board, Biotechnology Development Funds, Automotive Development Policy, Agro and Food Processing Policy, ITE/IT Infrastructure Policy, Clusters Development Policy, Tech Zones, Tech Parks and the latest being Solar Policy.
Reserve Bank of India has also stipulated a sustained growth of 20% on year to year basis from Schedules Banks in India.
For improvement of MSME health, Banking/Financial Sector together has to play vital role with the steps like:
  1. Encourage financing with structural and affirmative development of MSME.
  2. Credit policies of Banks/FIs must show liberal parameters.
  3. Reduce Interest Rates, specially, for Micro and Small Enterprises.
  4. Awareness in borrowers mindset the pros and cons of CIBIL and defaults in loans.
  5. Rating Agencies are to be roped in for surveys and educating the unorganized entrepreneurs.
  6. Bank/FIs should not only rely on the financial data available with the entrepreneurs but should check business relationship through quantitative and qualitative analysis, discussions, meetings, benchmarks, cross industry & geographical comparisons, consumption details etc. For this outsourcing through independent agencies can be the option for reporting of micro, small and medium enterprises.
For Top priority in growth trajectory of India, building global competitiveness, inclusivity and sustainability, financial health of MSME has to play vital role. We can dream of prosperous India with sustained growth in GDP on year to year basis if our MSME grows.

Demonetisation Triggers 30.5% Drop In Smartphone Sales It is called achche din

 Owing to demonetisation and subsequent cash crunch, smartphone sales fell by a whopping 30.5 per cent (month-on-month) in November over the October festive season, market research firm International Data Corporation (IDC) revealed on Tuesday.

Indian vendors were hit most due to demonetisation with a drop of 37.2 per cent in November as compared to Chinese players with 26.5 per cent drop and global vendors with 30.5 per cent drop over the previous month, said IDC's 'Monthly City Level Smartphone Tracker' report -- which surveyed smartphone sales in 50 Indian cities.

"Demonetisation has impacted the smartphone market at almost all levels, including the customer demand and stock movement in the distribution channels," said Upasana Joshi, Senior Market Analyst, IDC India. 

"The slowdown was seen across all city tiers, with a de growth of 31.7 percent in Tier 1 cities and 29.5 percent in Tier 2,3 & 4 cities in November over October. There was a huge drop in inquiries and significantly reduced footfall at the retail. To counter this, mobile phone retailers, together with micro-finance companies, started offering zero down payment options to stir sales," Joshi added.

According to the report, domestic vendors are finding it difficult to compete with the aggressive Chinese players due to shrinking spends in their marketing and the absence of good product assortment.

"The market share of Chinese vendors increased to 42.6 per cent in tier-I cities from 38.7 per cent market share in October 2016," the findings showed.

In addition to seasonal decline and impact of demonetisation, China-based vendors' market share improved sequentially owing to their high decibel marketing, increased credit line to distributors and efficient channel management.

Heavy investments in training and developing in-shop promoter programme by Oppo and Vivo have helped these vendors to sustain with lower decline in relative to other vendors.

"In the offline channel, while the Indian vendors were struggling, the Chinese vendors like Oppo & Vivo pulled in strong demand largely due to their strong hold on distribution and better partner incentive schemes and promotional activities during the slowdown," said Varun Singh, Market Analyst, IDC India.

Global vendors especially led by Samsung were able to withstand the aggressive Chinese players due to their good distributor coverage and penetration in the Indian market, the report added.

Sunday, January 22, 2017

Note Ban Negative For Jobs, Small Enterprises, Rural Demand: Assocham

Demonetisation will leave a negative impact on small and medium enterprises (SMEs), rural consumption and job creation while the large organised sectors stand to benefit in the long term, industry chamber Assocham said on Sunday.

"Demonetisation of high value currency notes would leave quite a negative impact on small and medium enterprises, rural consumption and job creation in the immediate run while the large and well organised sectors of corporate India stand to benefit in the long term, the latest Assocham-Bizcon Survey pointed out," the industry body said in a release here.

Noting the stark contrast in survey responses, Assocham said: "While 81.5 per cent of the respondents felt the SMEs have been hit and would still suffer the lingering effect for one more quarter, an equal number said for large enterprises, the impact of the note ban would be positive." 

The survey unveiled another paradox, in that, while it said the note ban would lead to better outlook in the long run, "over 66 per cent of the responses pointed towards negative on investment, linked to issues like subdued consumer confidence and demand, particularly in rural landscape."

"At a holistic level, a large number of respondents felt that the impact could be seen in sales volume declining in the last quarter of the current financial year. Same holds good for the order book position with investment graph not showing much of an uptick for the January-March quarter." 

Attributing the easing of prices in vegetables and other crops to incidents of distress sale due to cash scarcity, 92 per cent of the Bizcon Survey respondents said demonetisation would have a positive impact on inflation.

"When the economy is in a state of flux, it is quite a challenge to get the real picture on the ground. Even though our survey does point towards some level of stress, the jury is still out and it would be quite a while before one can say with complete certainty whether or not the currency jerk was good or bad for the economy," Assocham Secretary General D.S. Rawat said.

"For the present, the impact is seen on certain sectors, while others escaped," he added.

On the sectoral impact of demonetisation, the survey said agriculture, cement, fertilizers, automobile, textiles, real estate and retail will have negative impact while power, oil and gas, pharmaceuticals, IT and electronics, and infrastructure will see a positive impact.

source ndtv profit

Saturday, January 21, 2017

From Bank FDs To Cash Deposits, How Income Tax Department Is Tracking Your Transactions

From bank deposits to credit card bill payments to property transactions, financial institutions and other entities have to report transactions above a certain threshold to the income tax department. A January 17 notification from the tax department lists the financial transactions that have to be reported. Income tax authorities have set up an e-platform through which banks and other institutions can report the transactions to them. 

Here are 10 key things to know:

1) Banks have to report cash deposits aggregating to Rs 10 lakh or more in a financial year, in one or more accounts (other than a current account and fixed deposit) of a person. 

2) Fixed deposits other than renewals of a person aggregating to Rs 10 lakh or more of a person in a financial year have to be also reported.

3) Cash payments of Rs 1 lakh or more for credit card bills have to be reported. Also to be reported is payment of Rs 10 lakh or more made by any mode (including cheque or wire transfer) to settle credit card dues in a financial year.

4) The tax department also reiterated its November 2016 instruction asking banks to report all cash deposits of Rs 2.5 lakh or more made in one or more accounts of a person during November 9 to December 30, 2016.

5) For current accounts, banks have to report deposits of Rs 12.5 lakh or more during the period. After demonetisation of old 500 and 1,000 rupee notes, the government had allowed the junked currency to be deposited in bank accounts during a 50-day window ending December 30, 2016.

6) Cash deposits during April 1, 2016, to November 9, 2016 in any account that are reportable should also be intimated to the tax authorities by January 31, 2017, the notification said.

7) Companies or institutions have to report receipt from any person an amount aggregating to Rs 10 lakh or more in a financial year for acquiring bonds or debentures.

8) A similar limit is also set for reporting purchase of mutual funds units or buyback of shares.

9) Purchase of foreign exchange including travellers cheque and a forex card aggregating to Rs 10 lakh will have to be reported to tax authorities.

10) Property registrars will have to report to tax authorities purchase or sale by any person of immovable property for an amount of Rs 30 lakh or more.

Canara Bank Q3 profit up 3-fold at Rs 322 crore

State-owned on Friday reported nearly 3-fold jump in net to Rs 321.8 crore for the third quarter of 2016-17 even though doubled.

The Bangalore-based lender had a net of Rs 84.9 crore for the October-December quarter of FY16.

The bank's total income rose marginally to Rs 12,079.3 crore for the quarter under review, from Rs 12,050.6 crore in the year-ago period, said in a regulatory filing to exchanges.

The bank's gross Non-Performing Assets (NPAs) or as a percentage of total advances rose to 9.97% from 5.84% in the same quarter a year ago.

Its net went up to 6.72% from 2.42% at the end of December 2015.

Gross in absolute terms rose significantly to Rs 34,338.65 crore as compared to Rs 19,813.44 crore at the end of December 2015.

However, total provisions, excluding for income tax, made during the third quarter rose marginally to Rs 1,484.57 crore as against Rs 1,428.85 crore in the year-ago period.

For the first three-quarters of 2016-17, posted 17% decline in at Rs 907.74 crore, as compared to Rs 1,092.67 crore in the year-ago period.

The bank's total income for the nine month period in the current fiscal stood at Rs 36,052.84 crore as compared to Rs 36,781.22 crore in the same period of previous financial year.

Thursday, January 19, 2017

Fund transfer is a routine work of bankers but we must be very cautious while transferring funds. Please read the thumb rules below

*Vigilance Update on Fund Transfer*
Please read carefully
Dear colleagues,
Fund transfer is a routine work of bankers but we must be very cautious while transferring funds. Please read the thumb rules below
*Deviation from any of the banks rules may cause employee to disciplinary action or even termination from the service*
1. Transaction slips/vouchers are not authorised means for transferring funds except for loan disbursement and recovery purposes. For such loan disbursement and recovery purposes the transaction slips/vouchers must be authorised by branch manager's full signature (not initials)
2. Loan disbursement transfer transactions must be signed by borrower/s overleaf.
3. Cheques are the authorised means for transferring funds subject to tallying of drawers signature/s with the banks records. No other verbal or written instructions are considered for funds transfer. Such instructions can be only considered for transferring funds into customers (other)own account if the given mandate has minor signature difference.
*Branch managers are also not authorised to authenticate such transactions where the drawer's signature does not tally with the bank's records.*
4. As per revised banking norms overwriting and modifications on instruments by giving additional signatures on instrument like cheques are also not acceptable except on date modification when the date of instrument has crossed its validity period that is 90 days even if the customer himself is present to execute the transaction
5. NEFT and RTGS transactions vouchers slip must also be signed by the account holder hence no other person is authorised to sign on the Rtgs or NEFT slips
6. Fund transfers must not be initiated without customers proper written mandate hence no other verbal or email instructions must be considered for transferring funds
*Hence straightaway refuse to initiate/authorise such transactions for your own safety.*
Remember one wrongly/illegally initiated/completed transaction is sufficient for bank to proceed against employee.
*Pay due diligence..*
*Protect yourself*

Axis Bank Q3 Net Profit Plunges 73% To Rs 580 Crore

Axis Bank Q3 Net Profit Plunges 73% To Rs 580 Crore
Private lender Axis Bank on Thursday reported a whopping 73 per cent decline in net profit at Rs 580 crore for the October-December quarter on account of rise in bad loans.
Net profit for the same quarter in the last fiscal stood at Rs 2,175 crore.
However, total income of the bank rose to Rs 14,501 crore, from Rs 12,531 crore in the year-ago period.
Other income (comprising fee, trading profit and miscellaneous income) rose to Rs 3,400 crore as against Rs 2,338 crore during the same period last year.
Axis Bank's portfolio quality deteriorated, with gross non-performing assets (NPAs) rising to 5.22 per cent of gross advances as against 1.68 per cent in the same quarter of the previous fiscal.
Its net non-performing assets also jumped to 2.18 per cent, from the earlier 0.75 per cent.
For the first nine months of 2016-17, the bank's net profit also declined by 60 per cent to Rs 2,454 crore as against Rs 6,069 crore a year earlier.