Stocks
Nifty, Sensex undergoing the expected short bounce: Tuesday Market Report

The medium-term trend remains down. A 3-4 day rally may be met with renewed selling
 

The market settled higher despite the dismal macro-economic numbers released today, with the Sensex snapping its eight-day losing streak. However, the medium-term trend remains down. A 3-4 day rally may be met with renewed selling. The National Stock Exchange (NSE) reported a volume of 75.64 crore shares and advance-decline ratio of 573:919.

 

The market opened mixed despite lacklustre global cues. The US markets closed with minor losses on Monday even as Federal Reserve vice-chairperson Jannet Yellen said the central bank’s ongoing easy monetary policy would continue as the labour market is yet to show some progress. The few Asian markets which were open today were trading higher in morning trade.

 

 The Nifty opened down four points to 5894 while the Sensex resumed trade at 19,490, up 29 points over its previous close. The market remained choppy in early trade ahead of the release of the industrial output figures and retail inflation data. PSU, oil & oil, banking stocks were trading higher while IT and power sectors were in the negative.

 

However, the contraction of IIP for December to a three-month low of 0.6% and retail inflation for January rising to 10.79% saw the benchmarks dipping into the red and touching their intraday lows in late morning trade. The Nifty fell to 5,886 and the Sensex went back to 19,439 at their respective lows.

 

Brushing aside the negative indicators, the market soon picked up momentum as buying activity resumed, pushing the indices into the green. Gains in oil & gas, healthcare, PSU and consumer goods sectors kept the benchmarks firm in post-noon trade.

 

Firm trade continued in the late session, as well, on buying in market heavy-weights. The benchmarks hit their intraday highs towards the end of trade with the Nifty rising to 5,928 and the Sensex climbing to 19,584.

 

The market closed in the green as investors ignored weak macro-economic indicators, ending the eight-day losing streak on the Sensex. The Nifty gained 25 points (0.42%) to 5,923 and the Sensex climbed 100 points (0.52%) to settle at 19,561.

 

The broader indices underperformed the Sensex, as the BSE Mid-cap index fell 0.31% and the BSE Small-cap index dropped 0.51%.

 

The top sectoral gainers were BSE Oil & Gas (up 1.52%); BSE Healthcare (up 1.19%); BSE PSU (up 1.15%); BSE Auto (up 0.94%) and BSE Bankex (up 0.63%). The main losers were BSE Realty (down 3.96%); BSE IT (down 0.63%); BSE Metal (down 0.35%); BSE TECk (down 0.33%) and BSE Power (down 0.28%).

 

Seventeen of the 30 stocks on the Sensex closed in the positive. The chief gainers were ONGC (up 3.81%); Sun Pharmaceutical Industries (up 2.84%); Tata Motors (up 2.65%); Coal India (up 1.85%) and Bharti Airtel (up 1.79%). The major losers were Jindal Steel & Power (down 3.35%); Sterlite Industries (down 1.31%); Infosys (down 1.29%); Tata Power (down 0.77%) and Cipla (down 0.48%).

 

The top two A Group gainers on the BSE were—AstraZeneca Pharma India (up 10.06%) and Strides Arcolab (up 7.56%).

The top two A Group losers on the BSE were—Unitech (down 17.86%) and Hindustan Copper (down 4.45%).

 

The top two B Group gainers on the BSE were—Quintegra Solutions (up 20%) and Baba Arts (up 15.47%).

The top two B Group losers on the BSE were—Softech Infinium Solutions (down 19.93%) and Govind Rubber (down 19.78%).

 

Out of the 50 stocks listed on the Nifty, 31 stocks settled in the positive. The major gainers were ONGC (up 3.62%); Sun Pharma (up 3.29%); HCL Technologies (up 3.16%); Tata Motors (up 2.46%) and Coal India (up 1.94%). The key losers were JSPL (down 3.39%); ACC (down 1.52%); IDFC (down 1.49%); Infosys and DLF (down 1.27% each).

 

In Asian trade, Japan’s Nikkei 225 surged 1.94% as reports indicated that the Japanese government would continue with monetary easing to spur growth. The Seoul Composite fell 0.26% on political concerns after North Korea carried out a nuclear test. The Jakarta Composite gained 1% in trade today. Markets in China, Hong Kong, Malaysia and Singapore remain closed for the Lunar New Year holidays.

 

At the time of writing, two of the three the key European indices were in the green. At the same time, the US stock futures were mixed with a positive bias.

 

Back home, foreign institutional investors were net buyers of shares totalling Rs995.83 crore on Monday while domestic institutional investors were net sellers of equities amounting to Rs940.89 crore.

 

IT services exporter Zensar Technologies has signed a five-year pact with Assurant Health, a US-based provider of health insurance products, to provide information technology support. The deal includes development, testing, maintenance, enhancement and IT support for suite of business applications used by Assurant Health for policy administration, underwriting and claims. The stock fell 0.44% to close at Rs239 on the NSE.

 

Infrastructure major Punj Lloyd has reported more than 87% plunge in consolidated net profit at Rs8.77 crore for the quarter ended 31 December 2012, mainly due to muted sales growth and higher interest burden. Net profit for the corresponding previous period was Rs70.35 crore. Net sales rose 3.68% to Rs 2,775.29 crore from Rs2,676.81 crore earlier. The stock tanked 5.47% to close at Rs49.25 on the NSE.

User

IRDA’s consumer redress system -1: Lot of scope for improvement?

IRDA came out with many initiatives last year including the integrated grievance management system (IGMS). Still, given the amount of mis-selling and fraud, a lot needs to change to improve customer satisfaction including empowering the insurance ombudsman to levy penalty on insurers

The Insurance Regulatory and Development Authority (IRDA) launched new system “Integrated Grievance Management System (IGMS)” to help with consumer redressal. It facilitates online registration of policyholders’ complaints and track the status of their complaints. It gives insurance regulator a tool to monitor the effectiveness of the grievance redressal system of insurers. IRDA can have real-time monitoring and tracking details of all grievances lodged with all insurers, along with their disposal status. It gives mirroring of the complaints database of the insurers through the IRDA portal.
 

However, customer grievance redressal has not drastically improved even after introduction of new system. There is a need for proactive action against insurers and for IRDA to stop being just a facilitator. IRDA should institute senior citizen-centric nodal officers at the director-level, and also at insurance companies, to specifically address all elder-related issues.

 

Part of the solution would also be a changed stance from IRDA. At the Moneylife Foundation seminar on 16 May 2012, IRDA chairman J Hari Narayan clarified that IRDA’s job is not to focus on individual complaints; but it does take up such cases on a random basis and investigates insurance companies to protect the insured. IRDA’s approach is to put systems in place and see how they work and the corrections that need to be done in the processes, he added.

 

It means individual complaints may not get solved by IRDA’s IGMS. Consumers still have to go to the insurance ombudsman, consumer court or civil court. The advantages of ombudsman are no cost to the insured and binding decision on insurance companies. While the insurance ombudsman is good option, there is often a delay in getting a hearing. It can range from six months to one year after making a complaint. In some places the ombudsman’s post gets filled after being vacant for over nine months. This increases the backlog of complaints.  The Mumbai ombudsman’s post is currently vacant since October 2012. 
 

In June 2011 we had written about the post of the Ahmedabad insurance ombudsman lying vacant for the past nine months. () The post has since been filled, but the backlog of complaints has increased.

 

Last month, the Bombay High Court suggested that IRDA should empower the insurance ombudsman to levy compensatory or penal costs on insurance companies for repudiating medical insurance claims on flimsy grounds. It is now up to IRDA to issue guidelines on it.
 

In the second part of the article we will discuss pending issues that IRDA needs to address to improve customer satisfaction.

 

User

COMMENTS

Baldev Raj Khanna

4 years ago

IRDA framed IRDA (Protection of Policyholder's Interests) Regulations, 2002 Which in most of the cases is not complied by officers of insurance companies for the reasons known to them thereby customers are harassed. If action is taken on erring officers by way of imposing penalty, the number of complaints will automatically reduce to some extent.


A K Dasgupta

4 years ago

IRDA is responsible for healthy development of Insurance business where the customers get their due share .Sadly, there are areas where the customer is in the receiving end.It is extremely difficult to justify the reasons for the same particularly with IRDA members having so much of interactions with these insurers by participation at every conceivable events and venues sponsored by these companies to promote their cause.
Coming to Motor claim insurance IRDA has increased the depreciation to 50% even for a brand new car,which is not customer friendly and defies all logic. Has anybody thought to seek a public opinion. Whether our public representatives were aware. Again, there is a clause of 'Negligence and Consequential damages' in Motor Insurance under which insurers particularly one from the Private sector has been consistently denying genuine claims as IRDA has failed to define what constitute negligence, Their is enough decisions available from International juries /ombudsmen on the subject but who has the time to read and implement. My earnest plea to Chairman IRDA is to ensure that proper checks and controls are put in place to protect the Indian consumer. Even a letter written to CEO, remains unanswered . Why can't IRDA put a system of public accountability . Why are we silent ,are we obliged in any way to help these companies? They do it because they believe am-admi does not have power and can not face their lawyers or contacts but the country is rising today against corruption . Let there be transparency in every aspect so that at the end people get justice, otherwise these companies will continue to under deliver. Till then 'Insure at your own peril'.

REPLY

Baldev Raj Khanna

In Reply to A K Dasgupta 4 years ago

I fully agree with the comments of Sh. A.K.Dasgupta. I further add that depreciation on the cost of paint introduced recently by IRDA is not justified. The ratio of labour and cost of paint is not correct. Instead of increasing depreciation, and new depreciation introduced on cast of paint, the IRDA should not allow discounts on OD premium by insurance companies on tariff rates. By doing so, there will be no need to increase depreciation or introduce new depreciation. This will also reduce losses in motor pool and also avoid unhealthy competition among companies.Further for cashless service by motor workshops, the price schedule of labour and parts should be discussed with motor manufacturers before signing cashless agreements and insurance companies should not come under their pressure for sake of premium.

deepaksb

4 years ago

Insurance ombudsman from Mumbai and Goa at LIC complex,Santacruz(west) is vacant since oct 2012.This office of ombudsman receives on an average 15 complains per day. Imagine volume of backlog till date .

My complain against New India Assurance/MD India for a pending health claim since dec 2011 - IS NOT EVEN TAKEN UP by ombudsman for scrutiny till date-( 12-Feb-2013).

IRDA's IGMS has taken side of New India Assurance and MD India without going into merits of the case from policy holders and logical perspective.

If IRDA takes sides of Insurance cos and TPA (which is also true by most of cases handled by Ombudsman) - how a policy holder is COMFORTABLE with such an exercise of providing transparency in Insurance cos. functioning.

aps babu

4 years ago

This is a very useful and informative article. Recently I logged into IRDA's IGMS to post a complaint/suggestion. It seems either my complaint is not accepted or the software is erratic. What is the use of such a system, if it is not working. In fact, I wanted to make a suggestion regarding PNB-Oriental Mediclaim. This is to incorporate a provision in the policy to enable son/daughter to pay the Mediclaim premium for their Sr.Citizen parents, so that they(son/daughter) can avail IT exemption under 80D(Rs 20,000/- additional exemption for Sr.Citizen parents). This mediclaim plan will be more attractive, if such a provision is incorporated.

RAMESH VASWANI

4 years ago

MY EXPERIENCE IS THAT IRDA DOES NOT TAKE UP ANY INDIVIDUAL CASE AT ALL, UNLESS YOU HAVE SOME ONE CONNECTED IN ITS OFFICE. MY OWN COMPLAINTS AGAINST LIC FOR NON PAYMENT OF RIGHTFUL DUES IS STILL PENDING WITH LIC AND OMBUDSMAN, WHERE IRDA HAS WASHED OFF ITS HANDS.

REPLY

Baldev Raj Khanna

In Reply to RAMESH VASWANI 4 years ago

I agree with Ramesh Vaswani

Cutting bank interest for senior citizens: Can the FM cut the extra 1% given to bank employees?

Senior citizens, who have no voice, are the soft target for the government. However, the government is not bold enough to withdraw the extra interest of 1% given by banks to their present and past employees, as they have the capacity to shut the doors of banks through agitation and strikes

As per the Business Standard report dated 1 February 2013, the finance ministry has sent a missive to public sector banks (PSBs) to withdraw the additional interest of half a per cent paid to senior citizens on fixed deposits to reduce the cost of funds of banks. This, the ministry feels, will help the banks to reduce their lending rates, as the Reserve Bank of India’s (RBI) decision last month to reduce repo rates by 0.25% has apparently not gone well with the ministry, which expected a bigger cut to spur growth.
 

The directive from the finance ministry to PSBs is nothing short of robbing Paul to pay Peter. If the intention of the finance ministry is to cut the interest cost of banks by withdrawing the additional half a percent interest paid to senior citizens by public sector banks, and pass on the benefit to borrowers by reducing the lending rates, the whole approach is not only ill-conceived but also a retrograde step affecting PSBs very badly in their future growth.
 

Read: RBI’s revised directive on bulk deposits does not help the large number of bank depositors
 

Here are a few reasons why ministry should reconsider its decision and withdraw the directive not only in the interest of regaining the trust and confidence of the banking public, but also to retain the sanctity of independence of the RBI in matters of deciding interest rates in the country.
 

1. As these instructions of the ministry apply only to PSBs and the RBI is not a party to this decision, private banks that are not bound by this directive of the government, hopefully will continue to pay the preferential interest to senior citizens as hitherto. This will result in shifting of deposits of senior citizens into private banks, which will be too happy to continue this small benefit to senior citizens who have a record of locking their deposits for long periods, helping these banks to reduce maturity mismatch in their assets and liabilities position.
 

2. Bank deposits as of now generate negative returns to the depositors because of the high inflation existing in the economy. The interest earned on bank deposits is fully taxable, not adjusted for inflation even for tax purposes, and the agony of tax deduction at source on bank interest is the added pain, making it virtually the most unattractive investment destination for the common man. Now that senior citizens, who depend on bank interest for their daily life, have to forgo this small additional interest, will also be tempted to shift their deposits into other investments like mutual funds, or gold ETFs, which will only worsen the deposit growth in banks, affecting their lending capacity and in turn profitability too.
 

3. As per the RBI report, deposit growth in the last few years has been lower than credit growth, thereby containing the capacity of banks to lend in a growing economy. In the current financial year, deposit growth during the first nine months has been said to be 13.3% year-on-year, which is lower than 16.7% recorded last year for the corresponding period.  But the credit growth continues to outpace deposit growth and said to be 16.3% during the first nine months of this fiscal. Therefore, the present step of the government to reduce interest rates given to senior citizens will have a negative impact on the progress of banks, adding fuel to fire so far as deposit growth is concerned.
 

4. As per the latest statistics, India’s gross domestic savings has fallen from 34% to 30.8% of GDP in 2011-12 and the biggest percentage fall has been in household savings, which has fallen from 10.4% to 8%. The government should have first arrested this fall by giving tax incentives to savers; instead, cutting interest rates on deposits selectively would be suicidal to banks as well as the economy as a whole. Any diversion of deposits into investment in gold, which is considered as hedge against inflation, will only worsen the trade deficit of the country, which has been a cause of concern both for the government and the RBI.
 

5. Good corporate governance requires the government to give total autonomy to the boards of banks to decide what rate of interest to offer to depositors, what rate of interest to charge to borrowers, and how to manage their income and expenditure portfolio within the guidelines of the RBI, if any, to achieve the annual business plan approved by it. Issuing of piecemeal instructions on the normal banking functions is not only an avoidable interference in the day-to-day functioning, it also robs the banks’ autonomy to function as independent institutions taking care of the interest of all their stake holders.
 

6. This is the third time in the last six months that the finance ministry has stepped on the toes of the RBI by giving directives to PSBs on issues that is mainly the prerogative of the RBI. While RBI is keeping a steady silence, what is not desirable is dual control of banks, as this will only weaken the powers of the RBI and serve neither the interest of banks nor of the economy.
 

Considered from all angles, the proposal of the ministry to withdraw the extra interest of a paltry half a per cent is most uncharitable to the senior citizens, who do not have any welfare schemes of the government to depend on during the sunshine years of their life. Moreover, the government is not bold enough to withdraw the extra interest of 1% given by banks to their present and past employees, as they have the capacity to shut the doors of banks through agitation and strikes, whereas the senior citizens who have no voice, are the soft target for the government, which appears to be in a tearing hurry to appease the big wigs of industry, at the cost of the ordinary citizens of this country, even before bringing down inflation to a comfort level of the RBI to bring down interest rates further.
 

Click here for other stories by Gurpur
 

(The author is a banking professional and writes for Moneylife under the pen-name ‘Gurpur’)

User

COMMENTS

kaushikkumar

4 years ago

yes it is indeed true that the retirees and senior citizens are the soft targets and they cannot fight for eg revision of gratuity wef 1/1/6, benefits havenot been extended to non govt organisations and they are alllowed to pay revised gratuity wef 24/5/10 this is a discrimination,only barring a few exceptions eg. rbi/lic etc, will some one from media will highlight our anomoly. as a matter of gesture of goodwill govt should pay as honor and respect to senior citizens

Amit Sengupta

4 years ago

The Govt has no care for the Sr. Citizens. They don't care for the future citizens either- going by the way they keep expanding the borrowings to fund today's, so called socio-economic needs. The Indian polity as with many other parts of the world are at its lowest of any credibility.

Sabapathy Narayanan

4 years ago

Of late, your articles are highly ridiculous in the name of social service.
Please work for senior citizen and fight to get the justice.
Do not pull out the Bank employees unnecessarily.
It is the privilege for their work with Banking Industry.

Each and every industry gives privileges for their employees like Railway passes. It is a mere example.

Please fight for good things and not for unnecessay things.

Regarding Strike, everybody is doing and do not pin point Bank employees alone.

Regards,
Sabapathy Narayanan

REPLY

MK Gupta

In Reply to Sabapathy Narayanan 4 years ago

For information of Mr. Sabapathy Narayanan, officials working in the Income Tax Deptt. DO NOT GET ANY EXEMPTION OR REBATE on account of income tax liability!

Ubaldo C DSouza

In Reply to Sabapathy Narayanan 4 years ago

You must be a bank employee to write what you have written. And you probably care only about today only and have not visualised Senior Citizenship!

nagesh kini

In Reply to Ubaldo C DSouza 4 years ago

What makes Mr. Narayanan think that writers are not bank employees and also not senior citizens?
Will his attitude change for the better if he is proved otherwise!

nagesh kini

In Reply to Ubaldo C DSouza 4 years ago

What makes Mr. Narayanan think that writers are not bank employees and also not senior citizens?
Will his attitude change for the better if he is proved otherwise!

nagesh kini

In Reply to Ubaldo C DSouza 4 years ago

What makes Mr. Narayanan think that writers are not bank employees and also not senior citizens?
Will his attitude change for the better if he is proved otherwise!

nagesh kini

In Reply to Sabapathy Narayanan 4 years ago

Mr.Narayanan, I wonder what makes you allege "articles are highly ridiculous in the name of social service...." Please mind your language before you write such stuff, suggest you re-read the matter before jumping the gun. There is no 'pulling up bank employees' whatsoever!
Why do you justify strikes by bank employees? Remember they too render essential services.

hasmukh

4 years ago

It is a shame that the Govt. asks banks to cut interest paid to senior citizen, who are undoubtably hit the most by inflation. Govt. is fully responsible for not being able to control inflation. Also, Govt. is not able to prevent leakage of crores of Rupees, lost due scams and corruption.
Further, why favour bank employees by paying them higher int. of addl one pc.? even at junior most level, they already draw salaries, which could be much above the average income of Indian people.

REPLY

nagesh kini

In Reply to hasmukh 4 years ago

Our senior citizen neta-gan Prez,PM don't seem to be affected by interest rates? Why should they ? For them everything is paid for.
God help the general public elders!

M G WARRIER

In Reply to nagesh kini 4 years ago

You are right. Politicians have ‘lifetime’ paid jobs. Even the bureaucrats who reach the level high enough to participate in policy formulation can continue to manage positions which will take care of their ‘lifestyle’ needs.

MK Gupta

4 years ago

I just came to know of a more striking fact. A friend of mine was compelled to take around Rs. 3.5 lakhs as loan from Bank of Baroda for his daughter’s education.. The moment she was confirmed in her job in a company, the father decided to start repayment of the principal amount of the loan in installments as per the terms & conditions of the loan. Until then they have been paying regular monthly installments. In response to the letter of my friend’s, intimating the Bank that he intended to start repayment of theprincipal amount, the Bank rather said that there was no hurry at all and that he could start repaying the loan after one more year and till then they would deduct the interest only. My friend insisted for immediate repayment but, in reply, the Bank informed him curtly that, in that case, he would not get the 1% rebate to which he was entitled as per terms, possibly as the beneficiary was a girl student . This is simply unbelievable as the borrower was being punished for prepayment of the loan!. And, there is no way out, while the FM is busy working out the ways and means to penalize senior citizens!

REPLY

nagesh kini

In Reply to MK Gupta 4 years ago

A fit case for the Bank's grievance committee and RBI Customers Service Dept. GM DG Kale.

MK Gupta

In Reply to nagesh kini 4 years ago

No, RBI hardly listens. Has anyone ever heard of a public domain grievances portal of RBI?

arun adalja

4 years ago

whenever there is a rate cut senior citizens interest rates can be excluded to solve the problem and every three years review the rates and i think minimum 10% must be kept.

REPLY

nagesh kini

In Reply to arun adalja 4 years ago

Hi look who's doing the "bank employees bashing"?
Have the numbers been crunched as to how much of interest goes to the bank employees - possibly peanuts!

Ubaldo C DSouza

In Reply to arun adalja 4 years ago

Arun Adalja's seems to be a viabble and equitable solution if the Government has the will, no vested interest and until scamsters from within the system do not find a loophole!

Krishnaswami CVR

4 years ago

Gurpur, has indicated that ministry should not usurp the powers of RBI. Probably, he is under the false impression that it is the duty of RBI to fix the rate of deposits and advances. As a liberlisation process, RBI has already left it to market forces. Hence the action of finance ministry is only an advisory from owner and it is within the rights of the owner. ( I do not say whether the advisory is right or wrong.)

Secondly, the headline of the story is "glamorous." ( True, such headline only made me to read the article.) Mr. Gurpur should not have taken the bank employee bashing attitude. Does he have any statistics to prove that cutting down the additional 1% to employees would increase the profitability to a great extent? The deposits of senior citizens is sizable. Reduction in interest rates would mean something to the profitability. Mr. Gurpur should have also noticed that despite the higher interest rates offered by the private sector banks, senior citizens still prefer Public sector banks, due to the ownership factor and confidence.

Mr. Gurpur while bashing the bank employees, should have also noticed, that other Government undertakings such as railway provide free passes to their employees, which is certainly a drain on their income, as the employee force in Railways is larger. Does he recommend withdrawal of such passes?

The only Government employees who do not enjoy additional incentive on the products is postal employees. They are not eligible for postal services at subsidised rates.

REPLY

Ubaldo C DSouza

In Reply to Krishnaswami CVR 4 years ago

At the moment, we are discussing interest rates and not railway passes,etc. Withdrawal of the 1% to serving employees will not do them any disservice - they have their increments and bonuses. Senior citizens have only the interest on deposits and there is nothing here to compensate them for inflation. Is Mr. Gurpur a Senior Citizen to know how and where it hurts.

Krishnaswami CVR

In Reply to Ubaldo C DSouza 4 years ago

ubaldo and mr.kini

i have only highlighted the inaccuracies of the article and has not commented upon the desirability of continuing the higher interest to senior citizens.

nagesh kini

In Reply to Krishnaswami CVR 4 years ago

I fail to see where there is "bashing" of bank employees as wrongly perceived by Mr. Krishnaswami.Can he clarify where his numbers of "sizable" senior citizens' deposits came from.They may be substantial when compared with those of other categories of individuals, of course Public Sector Banks are preferred essentially because the perceived 'sovereign guarantee' that back them.
No doubt the higher rate of interest for employees tantamounts to a perk a la discounted rail/road/air ticket for employee and even Mr. Gurpur,the writer, doesn't grudge it.
The MOF, and not the Regulator, the RBI directing only the PSBs is not fair.
If all employers have to give concessions to employees like postal employees, it will give rise to demands galore.

jaideep shirali

4 years ago

This attitude of the government is expected, the UPA lives in a world where the 'aam admi' does not exist. Earlier, PPF rates came down, supposedly because it was unaffordable for the Govt, yet there has always been money for DA hikes and Pay Commission awards. The Railways seemingly operates for the benefit of its staff, with operating costs above 90% of revenues and no funds for safety or expansion. The time has come for citizens to challenge these policies that milk the taxpayer, to benefit the favoured few. As far as the Govt is concerned, there is no conflict of interest when babus decide their pay & expenses, only the citizen is shown the "conflict of interest" red flag throughout his life.

Krishnan

4 years ago

Finance Ministry is headed by a bunch of persons servile to foreign interest and that of the MPs .God help the senior citizens.

REPLY

nagesh kini

In Reply to Krishnan 4 years ago

I doubt whether God almighty will be in a position to do anything, we need to take care of ourselves, come what may!

arun adalja

4 years ago

extra rate given to bank employees must be withdraw and it is to be added to rates for senior citi zens as their income is only interest and they cannot cope up with inflation.

REPLY

R K Jain

In Reply to arun adalja 4 years ago

By withdrawing 1% extra from Bank employees(15Lacs approximately) whether working or retired employees of the Banks will not serve the purpose.The retired employees of the Banks are also Sr.Citizen and we should not ask for that.I may advise you that most of the bank employees after retirement do not get medical treatment or reimbursement or there is no Medical aid Scheme like CGHS and they have to bear their medical expenses themselves. Is there any Govt. Semi Govt. PSU (including State Govts.)which don't have any medical Scheme after retirement.Sr.Citizens of the country should unite and resist the move of the Govt.rather asking the withdrawl of 1% extra to Bank Employees, retired or working.Even after paying income tax whole life while serving what these sr.citizen get from the Govt.

Ubaldo C DSouza

In Reply to R K Jain 4 years ago

If it is cut from the Bank employees and given to Senior Citizens, it will still go to Senior Citizens but not to serving employees.

Ubaldo C DSouza

4 years ago

Senior Citizens are like chaff in the wind, even sweepings, for the powers that be whose 'senior citizens' are comfortably provided for through the perks of the office of their political progeny. The treatment meted out to Senior Citizens today amounts to disowning them after their usefulness is expended and this is not only at official and Government level but also at the individual level. You said it all when you said that the Government dare not ignore the workforce because of the gun of agitation and strikes that they can hold to the head. The Seniors have no such gun or even the strength in their hands to hold and wield one.

REPLY

R K Jain

In Reply to Ubaldo C DSouza 4 years ago

Rightly said Sir.

vns

4 years ago

The UPA Govt led by an Academic Finance expert is working on expected lines-looking at the graphs and plots of the economic activities and matching with the Economics and Commerce books. So after the weaker sections of the society now it is the turn of the Sr. Citizens - the weakest of all - to be under the gullotine. In stead of taxing the reach in the richer world Manmohan and Chidambaram are out to squeeze the Sr. Citizens and the weak ones.

nagesh kini

4 years ago

Pray who is the Banking Regulator in India - the North Block, New Delhi based MOF or the Mint Road, Mumbai located RBI.
That the MOF have the cheek to only direct the PSBs leaves others free to do as they please. It is time the PSBs are taken off the MOF radar. Just because the GOI has got majority holdings in PSBs they should remember that there are substantial private individual and institutional stakes too. A British stakeholder rightly hauled Coal India.
The Elders, after the gen-next kids in the block, will be next largest constituency turning out in large numbers to vote in 2014.
God help UPA2 if it chooses to antagonize either or both!

M G WARRIER

4 years ago

Hopefully, in the coming days, there will be more debate on this issue. The motive of the finance ministry being betrayed in the way in which the instructions have been issued only to Public Sector Bank, calls for an immediate response. Propriety demands that such instructions with industry and social implications should have been issued through Reserve Bank of India after due deliberations. This does not appear to be the case here.

Those who are in the North Block now must be young and unaware of how interest rates evolved to the present stage. At the time of retirement in the early 1990's the retirement benefits deposited in banks or Post Office gave a return of around 12% p.a. Now the return has come down by 20 to 30% and inflation had its impact on cost of living. The 50 to 100 basis point additional interest on deposits of senior citizens, allowed to be paid by banks by Reserve Bank of India, has this background. A Senior Citizens Savings Scheme with higher than market-related interest rate and tax benefits also was introduced more than a decade back. The pressures on senior citizen’s personal budget have only increased on account of negative returns on his savings and escalation in costs owing to inflation.

Finance Ministry's present advice will have no impact on PSB profitability as the deposits already contracted may not get affected and senior citizens will move their deposits to other institutions/avenues giving better return, which could be unsafe making his plight worse in the coming days.

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The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)