Those in high demand include government and regulatory officials with expertise in areas like competition law, investigations, security services and financial markets
New Delhi: India Inc seems to be tapping a new set of talent pool, the retired personnel who bring with them years of expertise for managerial and specialised roles, in sectors ranging from banking, energy and infrastructure to technology, reports PTI.
As per the human resources industry experts, those in high demand include government and regulatory officials with expertise in areas like competition law, investigations, security services and financial markets.
The growing demand for retired personnel at corporate organisations also comes at a time when the country's demographic profile is highly tilted towards the youth, but concerns are being raised about their employability.
In order to bridge the talent gap, organisations are recruiting retirees who want an active lifestyle and are eager to utilise their time and skills for a meaningful use so that they have post retirement financial security.
According to FLEXI Careers India, which works extensively in the area of diversity and inclusion, there are 2.6 million retirees in India who can be employed.
Explaining the reason behind hiring of these specialised section of people FLEXI Careers India AVP (Consulting Services) Karthik Ekambaram said, “They offer organisations luxury of a trained and experienced talent that can be used for operational, managerial and specialised roles.”
Companies from varied sectors such as banks, financial services, oil and gas, infrastructure, IT and ITES industries are hiring retired experts from areas like competition law, security and investigations, in addition to those having worked in their respective sectors.
HDFC Standard Life Insurance, Goldman Sachs, ICICI Bank, KEC International are among the companies having treaded this path.
Experts say that those having worked in areas like competition law are in higher demand, as there are very limited number of people with expertise in such areas.
The demand for retired personnel also helps these people resume their career on a new track.
For example, former chief of fair trade regulator Competition Commission of India (CCI), Vinod Dhall, started consulting practices through his own firm, Dhall Law Chambers, after his retirement.
Another notable example is that of Amitabh Kumar, the former Director General of Investigation, who is now working as a partner with J Sagar Associates.
Dhall, a former IAS officer, said that if ex-CCI persons enters into consultation, “then it becomes easy for the regulator to dispose of the application as they are aware of its requirement.”
According to BofA-ML India chief economist Indranil Sen Gupta, inflation should persist around 7% in the March quarter, which will then likely go back up to 7.5-8% in second half of 2013
Mumbai: Bank of America-Merrill Lynch (BofA-ML) has said the recent partial diesel price hike will inflict a 1.20% burden on the already sticky inflation and that the price index will remain elevated throughout the next fiscal, reports PTI.
“The bottomline is that inflation will follow an inverted U in FY14, after last week’s diesel price hikes that will add 120 basis points (bps) to FY14 inflation.”
“Inflation should persist around 7% in the March quarter, which will then likely go back up to 7.5-8% in second half of 2013. But it should abate to 6.5-7% by March 2014,” BofA-ML India chief economist Indranil Sen Gupta said in a note.
However, the American brokerage said it continues to expect the Reserve Bank of India (RBI) to cut policy rates by 25 bps on 29th January. It is likely to be cut by 75 bps by June, then pause in the second half as inflation picks up and cut another 50 bps again in the March 2014 quarter as inflation subsides.
The government allowed oil marketing companies to increase the retail price of the fuel by 50 paise per every month and ended subsidy on bulk and institutional diesel consumers like railways, state road transport corporations and to power plants. The current subsidy on diesel stands at Rs 9.50 to a litre.
Gupta said, “We expect inflation to persist at 7%-7.5% in the March quarter after the diesel price hike. And accordingly we hike our March 2013 inflation forecast to 7.3% from 7.1%.”
On the impact of the staggered diesel price hike, it said the move will add about 120 bps to FY14 inflation if crude remains at $110 per barrel.
However, on the positive side, Gupta said, the price hike will help the government trim its oil subsidy by Rs20,000 crore to Rs67,300 crore (assuming a rupee value of 54 to the dollar).
Stating that the long tightening by the RBI has begun to turn counter-productive, he said “We cannot deny that the RBI tightening is increasingly turning counter-productive in hurting growth rather than denting an inflation that is largely ‘imported’.”
Finance Ministry has said that real estate companies and broking firms can be allowed to open new bank, but there should be complete ban on taking exposure in the group companies or entities related to promoters
New Delhi: The Finance Ministry has expressed the view that the Reserve Bank of India (RBI) should allow real estate companies and broking firms to set up banks as adequate safeguards will be there to prevent exposure of promoters to related entities, reports PTI.
In its comments to RBI on the giving out new bank licences, the ministry has said that such entities can be allowed, but there should be complete ban on taking exposure in the group companies or entities related to promoters, sources said.
Even the vendor and large customers of such promoters can't get loan from the new bank, sources said, adding that this move will minimise accumulation of risk.
So, the firewall has been proposed to avoid undue influence of bank CEO to lend to the group companies, they added.
As per the RBI's draft norms for licensing of new banks in the private sector released in 2011, "entities or groups having significant (10% or more) income or assets or both from real estate construction and or broking activities individually or taken together in the last three years will not be eligible".
Explaining rationale for not permitting such entities, the RBI's draft guidelines said, there are certain activities, such as real estate and capital market activities, in particular broking activities which, apart from being inherently riskier, represent a business model and business culture which are quite misaligned with a banking model.
Post-crisis, it said, there are concerted moves even internationally to separate banking from proprietary trading.
"More importantly, in India, past experience with brokers on the boards of banks has not been satisfactory. It will therefore be necessary to ensure that any entity/ group undertaking such activities on a significant scale is not considered for a bank licence," the guidelines added.
The Finance Ministry has also suggested that the non-operative holding company (NOHC) may be substituted by the non-operative financial holding company (NOFHC) to signify that only financial sector entities are part of the NOFHC.
RBI will regulated financial holding company and different entities under the holding company will be regulated as per the business they carry out, sources said.
In its recommendations, the ministry has also proposed to lift the ban on setting up of new financial services entities under the NOFHC for at least three years from the date of commencement.
It has also favoured RBI's proposal of opening 25% of branches in unbanked areas of the country.
"The bank shall open at least 25% of its branches in unbanked rural centres (population up to 9,999 as per 2001 census) to avoid over concentration of their branches in metropolitan areas and cities which are already having adequate banking presence," the draft guidelines had said.