India to see robust hiring in the next three months: survey

‘India's net employment outlook - an indicator of recruitment intentions - rose to 44% for the second quarter of 2012’: quarterly Employment Outlook Survey.

Indian companies are lining up robust hiring plans for the next quarter, beginning 1 April 2012, making India the most optimistic country in terms of job creation, a survey said. A dynamic pace of hiring is expected across all the regions in the country during April to June period of 2012, while services and financial sectors could see the maximum job creation activities, HR consultancy major Manpower said in its quarterly Employment Outlook Survey.

As per the survey, which covered 4,992 employers across India, the country's net employment outlook - an indicator of recruitment intentions - rose to 44% for the second quarter of 2012, up from 41% in the first quarter. HR consultancy major Manpower says a dynamic pace of hiring is expected in the country during April to June 2012.

India has been the most optimistic nation worldwide in terms of hiring intentions and creating jobs for the last five years, except for the fourth quarter of 2011 when it had slipped to second position below Taiwan.

In terms of strongest hiring expectations of employers, India is followed by Brazil, Taiwan, Peru and Turkey. The hiring plans have been found to be weakest in Greece, Spain and Czech Republic and a greater percentage of employers are planning to trim payrolls, than hire staff in these places.

Job seekers can expect the maximum opportunities in the services sector (59%), followed by finance, insurance and real estate sectors. The weakest job outlook has been reported by the employers in the public administration and education space (38%).

"The outlook in the services sector is being fuelled by IT industry's highly optimistic hiring plans. Similarly, PSU banks are also expected to hire thousands to support expansion plans further boosting the sector's outlook," Manpower India managing director Sanjay Pandit said.

Employers in all four regions of the country anticipate a dynamic hiring pace in the next three months and the outlook for all of them has improved since the last quarter.

Manpower Group India associate director Kishore said that employers are optimistic, but at the same time they are also cautious amid a global economic uncertainty. If the economic scenario worsens, employers could hit the pause button, he said, while adding that the uncertainty worldwide has although helped Indian economy to some extent. Though the business coming from European markets has been impacted, a lot of business that could have gone from the US or other regions to Europe, are coming to India and creating more jobs here, he said. Kishore further said that Indian employers are looking forward to the government to take further measures in the upcoming budget to boost the economy. Growth is badly needed to create more jobs, he noted.

"If the budget is progressive and government shows certain measures to boost the economy, one can expect the employment outlook further improving in the next quarter further," Kishore added.


PNB to undertake Rs2,360 crore capital infusion

PNB CMD Kamath said that the capital infusion would impart flexibility in its operations, by adding to the bank's financial strength.

Punjab National Bank (PNB) plans to undertake capital infusion to the tune of Rs2,360 crore to maintain the financial strength of the bank.

While the bank would go for capital infusion of Rs1,075 crore from LIC of India, an amount of Rs1,285 crore has been sought from the government, chairman and managing director of PNB, K R Kamath told reporters.

Stating that the bank continues to hold its leadership position in business, network and technology adoption, Kamath said the capital infusion would impart flexibility in its operations by adding to the bank's financial strength. The PNB CMD ruled out any adverse impact of telecom scam on the bank.

Highlighting the performance of the bank during the first nine months of the current fiscal, he said total business of PNB crossed Rs6,00,000 crore milestone to reach Rs6,19,122 crore, recording a growth of 21.4%.

Net profit for nine months ended December, 2011 amounted to Rs3,460 crore, registering a y-o-y growth of 7%, Kamath said adding net profit of the bank for the third quarter of 2011-12 recorded a growth of 5.5% to reach Rs1,150 crore.

Similarly, operating profit grew by 17.3% to reach Rs7,678 crore during first nine months of current fiscal. Core operating profit excluding trading profit rose by 18.9% to Rs7,490 crore during the period, he said.

While deposits at the end of December 2011 amounted to Rs3,56,517 crore, exhibiting a growth of 23.4%, total income for the nine month period increased by more than 30%, Kamath said.

Referring to financial inclusion, the CMD said that PNB would cover 4,588 villages with population of over 2,000 by the end of this month. Out of these, 4,084 villages have been covered by 31 December 2011.

In the late afternoon, PNB was trading at around Rs975.20 per share on the Bombay Stock Exchange, 0.47% up from the previous close.


SBI has no plan to give fresh loans to Kingfisher: FM

“SBI has informed that currently there is no such plan to provide additional loan to Kingfisher Airlines,” the finance minister said in the Rajya Sabha to a question as to whether the SBI had initiated a proposal to bail out the airline by sanctioning fresh loan of Rs1,500 crore

New Delhi: State Bank of India (SBI) has no plan to provide fresh loans to the cash-strapped Kingfisher Airlines, reports PTI quoting finance minister Pranab Mukherjee.

“SBI has informed that currently there is no such plan to provide additional loan to Kingfisher Airlines,” he said in the Rajya Sabha to a question as to whether the SBI had initiated a proposal to bail out the airline by sanctioning fresh loan of Rs1,500 crore.

Kingfisher Airlines has a debt of Rs7,057.08 crore and the financial crunch has hit its operations with dozens of flights being either cancelled or clubbed.

Tax authorities have added to its woes by freezing its bank accounts for non-payment of taxes.

Asked about total exposure of SBI and other banks to the Vijay Mallya-promoted airlines at the end of the current fiscal, Mr Mukherjee said “since the accounts as on 31 March 2012 are to be finalised, it is not possible to ascertain the outstanding of KFA”.
He also said that SBI, leader of consortium of lenders to the air-carrier, has informed that the account of the airline is ‘sub-standard’ with eight public sector banks (PSBs) and ‘standard’ with five PSBs as on February 2012.

“Consortium agreed to ‘holding on operations’ whereby a portion of the credits into the account are appropriated for reducing irregularities in the accounts of banks,” he said.

However, all interest and dues up to August 2011 have been paid, he said.

The consortium of the lending banks has been meeting regularly to deliberate and decide upon the course of steps to be taken. The last such meeting was held on 17th February.

Badgered from all sides, Kingfisher Airlines was last week suspended for non-payment of dues from three IATA platforms affecting its passenger and cargo bookings through agents.

Kingfisher’s suspension from the IATA Clearing House (ICH) implied that it would not be able to settle accounts for services provided to them by other airlines or related companies.

The airline was hit hard on Saturday when state-run HPCL stopped jet fuel supplies, causing some cancellations and delays to some other flights. Fuel supplies were, however, resumed on Sunday. Kingfisher owes Rs515-Rs520 crore in fuel bills along with interest.

Kingfisher, which reported a net loss of Rs444.26 crore in the December quarter, has never made a profit since inception in May 2005. It suffered a loss of Rs1,027 crore in 2010-11 and has a debt of Rs7,057.08 crore.


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