Money & Banking
Bank strike to hit operations on Friday
Banking operations will be impacted across the country on Friday with around 10 lakh bankers of 40 private and state-run banks striking work in protest against the central government's banking policies, a union leader said on Thursday.
 
"The strike is on. We are not aware of any case filed by the banks or the Indian Banks Association (IBA) to restrain the nine unions of UFBU (United Forum of Bank Unions) from striking," C.H. Venkatachalam, General Secretary of the All India Bank Employees Association (AIBEA), told IANS.
 
Earlier this month, major bank unions deferred a two-day strike call for July 12 and 13 following a restraint order by the Delhi High Court.
 
The unions in the banking sector had given the strike call protesting against the merger of the five associate banks of the State Bank of India (SBI) with SBI and the privatisation of IDBI Bank.
 
The union is opposed to the government's decision to merge the State Bank of Bikaner and Jaipur (SBBJ), State Bank of Travancore (SBT), State Bank of Patiala (SBP), State Bank of Mysore (SBM) and State Bank of Hyderabad (SBH) with the SBI.
 
"The strike will involve employees and officers of public sector banks, old generation private banks and foreign banks with a total of more than 80,000 branches," he said.
 
According to him, the banks may be filling up the automatic teller machines (ATM) numbering around 200,000 in the country to facilitate cash withdrawals.
 
"We wanted to strike when Parliament is in session. Though the strike is on a Friday, the next day is a full working day for the banks. There will be no bunching of holidays," he said.
 
Venkatachalam said the strike was against the unwarranted banking reform measures.
 
The nine constituent units of UFBU are: AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, INBOC, NOBW and NOBO.
 
According to Venkatachalam, unmindful of the adverse implications, the government was pursuing the reform measures in the banking sector like inadequate infusion of capital in public sector banks which will result in reduction of government's equity capital and create compulsion for higher extent of private capital leading to privatisation of banks.
 
He said the unions also opposed the decision to privatise IDBI Bank by reducing the government capital to less than 49 per cent, proposals of consolidation for public sector banks but expansion for private sector banks, giving licences to corporate houses to start banks, ineffective steps to recover the bulging bad loans in the banks, and rather showering concessions to the defaulters and others.
 
"We demand that willful and deliberate defaulters should be declared as criminal offenders and punished," he said.
 
Venkatachalam said the total bank loans wilfully defaulted by borrowers was Rs 58,792 crore.
 
He said the total quantum of bad loans of the government owned banks stood at Rs 539,995 crore as on March 31, 2016.
 
"But the government and the RBI (Reserve Bank of India) are not taking tough measures to recover the bad loans. Even the (defaulters') names are not being published," he said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Equity MF folios continue to rise as the market moves higher
Retail investors continue to flock to equity mutual fund schemes. According to CRISIL Research, equity-oriented mutual funds constitute 76% of the total retail portfolio. As the Nifty went up by 7% over the past quarter, retail equity folios too, increased for the seventh quarter in a row. As many as 0.58 million equity-oriented mutual fund folios were added in the June quarter, taking the total tally of equity folios to a high of 35.4 million. Balanced schemes, with higher orientation towards equity, too continued to ride the equity wave. The category added 109 thousand retail folios in the June quarter to push the total to 2.45 million.
 
High net-worth individuals (HNIs) added 105 thousand folios in the June quarter. AMFI identifies HNIs as those investing Rs5 lakh or more. HNIs preferred to invest mostly in equity, debt and balanced funds. Though equity funds dominated the segment with 49% share (9.31 lakh folios), debt fund folios have increased in the past four quarters. The debt category added 42,000 folios to stand at 0.73 million folios in the latest quarter against 26,000 folios added in the previous quarter. The equity category added as many as 36,000 HNI folios, while the balanced scheme category added 18,000 folios.
 
Just a little of over 53.20% of retail AUM stayed in equity mutual schemes for more than two years, albeit higher than 52.94% in the preceding quarter. Of the Rs2.45 lakh crore of retail investments in equity-oriented mutual fund schemes, Rs1.30 lakh crore was held for over 24 months. In comparison, about 26.48% of HNI AUM stayed invested in equity mutual funds for more than two years, higher than 23.96% in the previous quarter.
 
The total number of mutual fund folios touched 4.89 crore as on 30 June 2016, as per data from the Association of Mutual Funds in India (AMFI). As many as 1.3 million folios were added in the June quarter, up 2.65% sequentially. Retail folios constitute as much as 95% of total mutual fund folios. In the June quarter, 114 thousand folios were added, as compared to 170 thousand folios in the March quarter. Retail folios touched a six-year high of 46 million.
 
Meanwhile, the liquid retail category added 0.19 million folios to touch a record high of 0.47 million. The debt category added 0.27 million retail folios in the latest quarter compared with 0.33 million added in the preceding quarter. Moving towards the 50 million milestone mutual funds added 12.61 lakh folios, up 2.65% sequentially, in the June quarter to take the tally to a record high of 4.89 crore, according to the data disclosed by the Association of Mutual Funds in India (AMFI). 
 
Corporates continued to dominate mutual fund assets under management (AUM) with 46% share in the June quarter against 47% in the March quarter. HNIs were the second biggest contributor with 28% share. The retail segment’s share was steady at 22%.
 

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COMMENTS

nagaraju lanka

4 months ago

i want to have your advice on my investments.and i am retiring in 10 months.how to contact you online .please let me know about your online information for such advise

Ramesh Poapt

4 months ago

Lack of alternative saving/ investment avenues, incentives for T15 cities, Govt/media's aggressive 'posative' views of the economy did the trick. If proper asset allocation not in place, future will not be as bright as it seems today. The party may go on for quite sometime though....on account of great global liquidity flood. rally in mid/smallcapsmay suggest that we are in the last lag of the bull cycle, which may go on further...

Suketu Shah

4 months ago

The no of folios is only high as they never remove folios of people who have died or not invested in mfunds for 5 yrs or more.

Natraj Jayaraman

4 months ago

There's a tendency to invest more in equities as valuations rise and become progressively more expensive even as actual earnings remain a hit-or-miss. Rarely anyone in the retail segment buys when the market is at the bottom when valuations are relatively cheap. The herd mentality prevails either way. So I wonder how much of this money flow into equities is akin to buying at the top of a bull market cycle.

Rahul Pande

4 months ago

Do the investors have any choice.With FDs and postal investments being unremunarative and real estate and chit funds cheating investors.Stock market is not lay investors cup of tea.At least mutual fund houses are their saviours.

SAT allows SEBI Member to hear Adventz Finance case after apology
The Securities Appellate Tribunal (SAT), following unconditional apology and review application from Securities and Exchange Board of India (SEBI), has allowed the Whole Time Member (WTM) of SEBI to pass an appropriate order within a week in the Adventz Finance Pvt Ltd case. The Tribunal also agreed not to levy a penalty of Rs1 lakh, it has imposed on the market regulator, for the WTMs apathy and giving a run around to the appellant.
 
The SAT in its latest order says, "Along with the Review Application, SEBI has filed an affidavit of the Chief General Manager and affidavit of the WTM of SEBI, wherein unconditional apology is tendered and it is inter alia requested that the WTM of SEBI who had heard the matter on 21 June 2016 be permitted to pass an order within such time as this Tribunal deems fit and that the costs awarded be waived." 
 
"In view of the assurance given to the effect that appropriate orders would be passed in accordance with law, we modify our order dated 15 July 2016 and permit the WTM of SEBI, who had heard the appellant on 21 June 2016, to pass an appropriate order in accordance with law within one week after giving an opportunity of hearing to the appellant," the SAT Bench headed by Justice JP Devadhar said.
 
Although the SAT order does not mention the WTM's name, it is clear that the order was that of Rajeev Kumar Agarwal. He is one of the two WTMs at SEBI. "This appeal reveals the shoddy manner in which the directions of this Tribunal are dealt with by the WTM of SEBI," the Bench had said in its previous order.
 
In its order on 15 July 2016, the Bench had said, “If for any administrative constraints it was not possible to pass an order within the stipulated time, then the WTM of SEBI ought to have sought extension of time, which the WTM of SEBI has failed to do. Instead, the WTM of SEBI resorted to a totally impermissible mode of representing that an order has been passed when in fact no order was passed by him. In such a case, informing the party that an order disposing of the representation is already passed, without actually passing an order, is nothing but an attempt to mislead in the matter. We strongly condemn the irresponsible approach adopted in the matter”. 
 
Kolkata-based Adventz Finance had filed a fresh appeal before the SAT, after being made to run around by SEBI and for not following directions from the Tribunal. 
 
During the hearing on 15th July, the counsel for the market regulator submitted an affidavit filed by the Chief General Manager (CGM) of SEBI. In the affidavit, the CGM stated, "...the WTM had instructed that a note be prepared and accordingly, a note was prepared and put up for approval of WTM on 23 June 2016. Along with the said note, draft letters to be sent out to the appellant were also placed before the WTM of SEBI. The note, as also draft letters, was approved by the WTM on 27 June 2016 and, accordingly, letter dated 8 July 2016 was issued to the appellant, thereby communicating the decision of the WTM of SEBI disposing off the representation of the appellant."
 
When asked by the SAT, the counsel for SEBI admitted that there was no order passed by the WTM in this matter. The Bench said, "Thus, it is evident that the WTM of SEBI permitted the Chief General Manager to issue a letter to the appellant that the representation made by the appellant has already been disposed off by the WTM of SEBI, when in fact no order was passed by the WTM of SEBI. Since the WTM of SEBI has not passed any order, we would have directed the WTM of SEBI who had heard the appellant on 21 June 2016 to pass an order immediately.  However, we are informed that the said WTM of SEBI is travelling."
 
"In these circumstances, we quash the letter issued by the CGM on 8 July 2016 and direct SEBI to assign the matter to any other responsible WTM of SEBI who shall pass an order on the representation of the appellant within two weeks from today after giving an opportunity of hearing to the appellant. It would be open for such WTM of SEBI to hear the representation of the appellant as also the representation made by the Respondent No2 (Jai Annanya Investments Pvt Ltd) together and pass appropriate order," the SAT says.    
 
The Tribunal further said, "Since we are distressed with the manner in which the WTM of SEBI has discharged his quasi-judicial duties which is highly detrimental to the interests of the securities market, we direct the registry to forward a copy of this order to the Finance Minister and also to the Chairman of SEBI for information."
 

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COMMENTS

Vaibhav Dhoka

4 months ago

How apologies suffices by government officials in judiciary and quasi judicial bodies why punishment is not given for officers defying and arrogance is question in public mind.

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