What if we were a mutual fund company and launched a new scheme in a bullish market? That...
About 40 lakh cheques worth about Rs25,000 crore could not be processed today in various clearing houses due to the two-day strike call given by trade unions to protest against the anti-people and anti-labour policies of the union government
Central Trade unions and the United Forum of Bank Unions (UFBU), which have given a call for a 48-hour strike, on Wednesday, claimed that the strike was successful across the country. However, with railway, bus services, taxis and autos remaining on road, the effect was less in Mumbai, the financial capital of the country.
In a press release, CH Venkatachalam, general secretary of All India Bank Employees’ Association (AIBEA) said, "As per reports reaching us from various states, the strike has been observed very successfully in all banks across the country. Employees and officers from all banks including Reserve Bank of India (RBI), State Bank of India (SBI) and other public sector banks, old generation private banks, foreign banks, regional rural banks, and Cooperative banks participated in the strike.”
He said, “About 40 lakh cheques worth about Rs25,000 crore could not be processed today in various clearing houses of National Payment Corporation, RBI and SBI. Clearing operations were totally affected in all the district and town centres also.”
The strike will continue tomorrow. "If the government will not come forward to retrace their wrong policies and resolve our demands and if the managements of SBI and RBI do not stop their anti-trade union approaches, the struggle in the banking sector will be further intensified with more and more strike actions,” the union leader said.
Here are the demands of the trade unions…
1) Concrete measures to contain price rise,
2) Concrete measures for employment generation,
3) Strict enforcement of labour laws,
4) Universal social security cover for organized and unorganized workers and creation of a National Social Security Fund and
5) Stoppage of disinvestment in Central and state PSUs/undertakings,
6) No contractorisation of work of permanent/perennial nature and payment of wages and benefits to the contract workers at the same rate as available to the regular workers of the industry/establishment,
7) Amendment of the Minimum Wages Act to ensure universal coverage irrespective of the schedules and fixation of statutory minimum wage at not less than Rs10,000 linked with cost price index,
8) Remove all ceilings on payment and eligibility of Bonus, Provident Fund; Increase the quantum of gratuity,
9) Assured Pension for all,
10) Compulsory registration of trade unions within a period of 45 days and immediate ratification of the ILO Conventions Nos. 87 and 98.
Edelweiss said while net profits of companies it tracks grew by just 2.7%, revenues increased 11.7% during the December quarter as against its expectations of 10.4%, which came as a positive surprise
The December quarter for Indian companies, excluding oil marketing companies, proved to be lacklustre with net profits growing merely 2.7% compared with the year-ago period. This was due to increase in interest cost. However, the encouraging factor during the quarter was the 2% beat on earnings before interest, taxes, depreciation, and amortization (EBITDA) front for our coverage universe, says Edelweiss Securities, in a report.
“Net profit for Sensex companies grew 4% on year-on-year (YoY) basis, higher than 3.3% estimated. The big misses in Bharti Airtel (Bharti), Tata Steel and Tata Motors were offset by positive surprises in GAIL, NTPC and Hindalco Industries. EBITDA margin for Sensex companies expanded 24 basis points (bps) quarter-on-quarter (QoQ) against expectation of 14bps QoQ decline. Revenue of Sensex companies surged 9.6%YoY against the estimate of 8.9%,” the brokerage said.
According to Edelweiss, higher interest costs are hurting profitability of companies. “The difference between the positive EBITDA surprise and negative surprise in PAT is the surge in interest costs. Interest costs, as percentage of sales for our coverage universe (ex-OMCs), jumped 40bps QoQ to 3%, highest in the last three years. With the RBI in easing mode, this component should decline going forward and could act as a tailwind,” it added.
On the sectoral front, according to Edelweiss, infrastructure issues continue to plague the economy with capital goods and construction sectors facing execution delays. While higher ad spends dented auto margins, IT and energy were the bright spots. The divergence between PSU banks and their private sector counterparts continued in Q3FY13 as well. PSU banks’ results were characterised by weak asset quality, moderating loan growth and higher provisioning on restructured assets. Private banks, meanwhile, showed little stress on asset quality, it added.
Given the slowing momentum in economic growth, Edelweiss said, discretionary demand took a hit with categories like food and certain personal products posting a slowdown; however, non-discretionary items were impervious. Consumer companies surprised positively in terms of volume growth with 10 out of 14 companies growing in line/better than expectations. Premiumisation trend continues with no major signs of down trading and rural demand remained healthy while gross margins for the sector also improved.
Coal and gas supply issues continued to loom over the utilities sector. Slowdown in volume growth was also observed in a few discretionary categories. Improvements in discretionary spending and in realisations were the primary positives for IT. For energy, the improvement in gross refining margins (GRMs) of complex refiners was positive, but upstream continues to remain a concern, Edelweiss said.