Companies & Sectors
IDBI Bank: Employees, officers oppose proposed move of privatisation
IDBI has been exploited by the Centre which has resulted in burgeoning bad loans for the Bank, allege employees’ and officers’ unions 
Bank employees and officers are making full preparations to defeat the government’s move to privatise IDBI Bank. "Arun Jaitley, Finance Minister made a statement that IDBI Bank will be modelled on Axis Bank Ltd an outright privatisation of IDBI Bank. We will write to all Members of Parliament (MPs) and all political parties to save this important institution to be hijacked by corporate in India," says S Nagrajan, General Secretary, All India Bank Officers Association (AIBOA). 
"Our organisation has come across the oft repeated message of the Finance Minister of reduction of capital in IDBI Bank and attempting to experiment the model of the erstwhile UTI Bank and now Axis Bank. IDBI has been utilised to experiment all sorts of expressions at different points of time by the owners at the centre it is not on excessive expressions. The result is burgeoning bad loans in the books of the Bank at this point of time," Nagrajan said in a statement.
In 1964, Industrial Development Bank of India (IDBI) was set up as developmental financial institution [DFI] and the capital was fully subscribed by the Government of India. Subsequently, it became a subsidiary of Reserve Bank of India (RBI). Later in April 2005, RBI sanctioned a scheme of amalgamation of IDBI Bank Ltd with IDBI Ltd as a legal entity. The Central government had a stake of 51% in the entity at that time.
Next year, an order of amalgamation of United Western Bank Ltd [UWB] was issued, which became effective from 3 October 2006. In the present structure, there are three entities, IDBI, a subsidiary of RBI, IDBI Bank Ltd and UWB, the old generation private sector bank.
"In these circumstances, the statement from Mr Jaitley is bolt from blue, says Nagrajan, adding, "Instead of expeditious steps to recover the bad loans, the Finance Minister, unmindful of the assurances given in the floor of Parliament in 2003 by his seniors to have the Government stake of not less than 51% in the capital, repeatedly reiterates to push IDBI to AXIS Bank model."
"In the event of non-responsiveness of the Government, AIBOA will roll out plan of actions to halt the moves along with the operating trade unions in IDBI," he added.




2 years ago

If IDBI Bank has been exploited by Centre, as alleged by the Employees' and Officers' Unions, should they not welcome the move to liberate the Bank from the control of Centre?

India's domestic passenger demand up 18 percent, fastest in the world: IATA

Leading international aviation body IATA on Thursday reported that India's domestic passenger demand grew by 18.3 percent in August, 2015.

Though August's demand was weaker in comparison to the 28 percent spike in July, nevertheless, it was the fastest amongst the major aviation markets of the world.

According to the International Air Transport Association (IATA), India's passenger traffic demand grew the fastest amongst the seven major aviation markets of the world -- Australia, Brazil, China, Japan, Russian Federation and the US.

India's traffic demand growth was followed by China at 13.6 percent and the Russian Federation at 10.9 percent.

The country's domestic traffic had spiked by 28 percent in July, 16.3 percent in June, 18.2 percent in May, 20.7 percent in April and 17.9 percent in March 2015. 

India's domestic capacity in the month under review rose by 8.4 percent when compared to August 2014.

As per IATA, India’s domestic demand soared owing to significant increases in service frequencies and improvements in economic growth.

"India’s domestic demand surged 18.3 percent in August compared to a year ago, largely reflecting increases in service frequencies and economic strength," IATA said in its global passenger traffic results for August.

India's growth is also significant contributor for the expansion of Asia-Pacific carriers. The domestic markets in India, China and Japan accounts for 44 percent of the region’s operations.

On global-basis total passenger traffic demand rose 7.1 percent in August 2015, with the strongest growth occurring in India, China and the Russian Federation. 

The global passenger traffic results, showed a 5.9 percent increase in capacity during the month under review, with a load factor of 84.7 percent.

“August results continue the trend of strong demand for air travel, despite some softening in global economic growth, particularly in emerging markets,” said Tony Tyler, director general and chief executive of IATA.

Earlier, data furnished by the civil aviation ministry showed that domestic air passenger traffic increased by 18.66 percent in August, which stood at 67.60 lakh passengers -- up from 56.97 lakh in the corresponding month last year.

The data also showed that low-cost carrier IndiGo achieved the highest market share at 35.8 percent followed by Jet Airways (19.8), Air India (16.2), SpiceJet (12.3), GoAir (8.4) and JetLite (3 percent).

AirAsia India had a market share of 1.9 percent, followed by Vistara at 1.4 percent, Air Costa's at 1.00 percent and Air Pegasus at 0.2 percent.


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.



Opposing toll system, truckers go on nationwide strike
Lakhs of trucks kept off the roads on Thursday as transporters went on a nationwide strike called by the All India Motor Transport Congress (AIMTC) to oppose the toll system.
Delivery of goods was affected in most states. Delivery of essential commodities like milk, vegetables and medicines, however, were exempted from the strike.
Trade insiders told IANS that the strike could lead to losses running into hundreds of crores of rupees to the trading community, truckers and even the government.
Talks between the AIMTC and the transport ministry failed after truckers rejected the government's offer of implementing an e-toll (electronic toll) system by December.
The government has ruled out scrapping of the toll system.
The AIMTC has claimed that toll barriers have become dens of corruption, harassment and extortion.
About 16 lakh trucks went off the roads in Telangana and Andhra Pradesh on Thursday as part of the indefinite strike by the truckers to protest against the present toll system.
Movement of goods to Hyderabad, Visakhapatnam, Vijayawada, Guntur and other major towns was affected severely by the strike.
The truckers' body is demanding one-time payment of taxes besides simplification of Tax Deducted at Source (TDS).
The truck operators in the two Telugu states are also seeking a single-permit system in view of the bifurcation of undivided Andhra Pradesh. They want Telangana and Andhra Pradesh to have single-permit agreement so that vehicles can play between the two states on payment of a fixed tax.
Truck operators in Punjab, Haryana and Himachal Pradesh also joined the strike, affecting the movement of goods.
In Madhya Pradesh, supplies of essential goods to the state were hit.
Truckers' association president Paramvir Singh told IANS: "We demand the scrapping of the toll system, and changes in the road pollution and safety 2015 regulations. The state has more than 40,000 trucks and they will not run until our demands are met."
"The strike is likely to cause Rs.1,500 crore-worth of losses to truckers and over Rs.10,000 crore of loss to the government on a daily basis," AIMTC president Bhim Wadhwa said.
The AIMTC claims that it represents about 87 lakh trucks, and 20 lakh buses and tempos.
Another truckers' body, All India Transport Welfare Association (AITWA), has not joined the strike.
Around 1.70 lakh truckers from Odisha on Thursday joined the nationwide indefinite strike called by the All India Motor Transport Congress (AIMTC) demanding scrapping of the present toll system.
The truckers' body is also demanding one-time payment of taxes besides simplification of tax deducted at source (TDS).
As the trucks remained off the road, transportation of goods to various places in the state was badly affected.
However, essential commodities and perishable goods have been kept out of the purview of the strike.
"We were forced to go on strike after several unsuccessful discussions with the central government. We have no option left but to go on strike," said Odisha Truck Owners' Federation general secretary Rabinarayan Satpathy.
He said the central government has increased the number of toll gates following which truckers were facing numerous problems including wastage of fuel due to standing and idling trucks and delayed deliveries.
The truckers' body in Odisha is also demanding non-implementation of green tax proposed by the state government. The government has announced that a green tax would be imposed on vehicles older than 15 years to discourage such vehicles from plying.
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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