SBBJ cuts lending rate by 0.5 per cent
EPF interest rate retained at 8.5 pc for 2009-10
Saturday 04 July, 2009: Over 4.5 crore subscribers will get 8.5 per cent return for 2009-10 on their provident fund deposits at a time when banks are lowering the deposit rates across the board.
Two days before the budget, the Employees' Provident Fund Organisation (EPFO) decided to retain the interest rate at 8.5 per cent for the fifth consecutive year.
The decision to retain the interest rate was taken by EPFO's policy-making body, Central Board of Trustees (CBT) which was chaired by Labour Minister M Mallikarjun Kharge.
The decision will now go to the Finance Ministry for ratification.
The payment of 8.5 per cent interest rate on provident fund deposits, which are of the order of Rs 1.82 lakh crore,
is expected to leave a surplus of Rs 6.4 crore during the current fiscal.
The EPFO has decided to retain the interest rate even as the interest being paid by the banks has been coming down in the recent past.
The country's largest bank SBI recently decided to cut deposit rates by 25 to 50 basis points in May, while several others followed suit.
The decision to pay 8.5 per cent interest rate was on expected lines as payment of a higher amount would result in a deficit in the EPFO's account.
For, sources said, the EPFO has no reserves left to pay a higher interest rate than 8.5 per cent this fiscal as it had suffered a Rs 139-crore deficit during 2008-09 for maintaining the same rate of interest on deposits.
RIL moves SC against Bombay HC order on gas pricing
NEW DELHI: Mukesh Ambani-run Reliance Industries on Saturday moved the Supreme Court challenging the Bombay High Court judgement that asked it to
supply gas to Anil Ambani Group's firm RNRL at a price of $2.34 per mmbtu.
It alleged that the high court erred in deciding the three terms as to quantity, tenure and price of gas supply to power plants of RNRL affiliate.
"The high court as a company court exercising jurisdiction under section 392 of the Company Act, 1956, had no power to modify the scheme of reconstruction of a company by demerger as approved almost unanimously by 99.9998% shareholders and creditors and sanctioned by the court..." RIL said in appeal.
Bank unions defer July 6 strike over SBI merger
NEW DELHI: Bank unions have deferred their nation-wide strike called to protest the proposed merger of State Bank of Indore with State Bank of
India following the advice of the deputy chief labour commissioner that both the management and unions should discuss and sort issues out.
The decision to defer the strike was reached after a meeting yesterday with the deputy chief labour commissioner, said the All India Banks' Empolyees Association (AIBEA) general secretary, C H Venkatachalam.
"We strongly opposed the closure of any of Associate Banks and their merger with SBI," he said. After hearing both sides, he said, the deputy chief commissioner felt that in such a complex issue like merger, both the parties should sit across the table and hold meaningful discussions to find an acceptable solution.
“Accordingly, the managements of SBI and State Bank of Indore were asked to invite the union for discussion,” he added. The deputy chief labour commissioner further advised them not to pursue the merger issue with the RBI and th government, Venkatachalam said.
Other associations which were part of the meeting included NCBE, AIBOA, BEFI and INBOC. At the same time representatives of Indian Banks' Association, SBI, State Bank of Indore, and other associates were present from the management side.
Air India won't sack employees: Praful Patel
Chennai, July 04: Cash-strapped public carrier Air India would not sack employees but financial and organisational restructuring was on the cards, Union Minister of State for Civil Aviation, Praful Patel, said ON Saturday.
"There is no question of sacking; employees will be protected," Patel said. Patel, however, said it was time for everyone -- management and staff -- to introspect.
AI to draw up comprehensive short turnaround strategy "It is a tough time and we have to cooperate. We will have to go through financial and organisational restructuring to bring back the airlines on a healthy track," Patel said.
He was speaking to reporters on his way to Chennai airport, where he had gone to inaugurate a desalination plant by Chennai Petroleum Corporation Limited and also the Manali-Chennai Aviation Turbine Fuel Pipeline by Indian Oil Corporation.
On wage restructuring, a decision on which is pending, Patel said, "We have sat and agreed on a formula for wages to be paid in a particular fashion," but did not elaborate.
On the two-hour walkout by Air India employees on Friday, which the management had declared illegal, to protest delayed payment in June salary, he said it was a token strike and flight operations were not affected.
SBBJ cuts lending rate by 0.5 per cent
Mumbai, July 04: State Bank of Bikaner and Jaipur (SBBJ), the largest associate bank of State Bank of India today slashed its benchmark lending rate by 0.5 per cent to 12.25 per cent.
The Benchmark Prime Lending Rate (BPLR) of the bank has been revised from 12.75 per cent to 12.25 per cent with effect from July 6, SBBJ informed the Bombay Stock Exchange.
The revised BPLR would be applicable to all existing and new accounts where the floating interest rate is linked to BPLR.
Last month, the country's largest lender SBI reduced slashed its benchmark lending rate by half a percentage point to 11.75 per cent effective June 29.
SBI last reduced the BPLR by 75 basis points with effect from January 1, 2009.
Following the decision of SBI many other public sector lender including Allahabad Bank too reduced BPLR by 50 basis points.
Union Bank of India and IDBI Bank also softened its benchmark prime lending rate by 0.25 per cent effective July 1.
State Bank of Mysore, an associate of SBI slashed its lending rate by 50 basis points to 12.25 per cent while deposit rates were cut by 25 basis points.
