Bank employee unions, AIBEA and BEFI are saying that the amendment to the banking laws will dilute the interest of public sector banks
New Delhi: Two major bank employee unions -- All India Bank Employees Association (AIBEA) and Bank Employees Federation of India (BEFI) -- have threatened to go on strike on 20th December to protest against the proposed Banking Laws (Amendment) Bill, reports PTI.
"The two unions have threatened to go on strike on December 20. Negotiations are going on with the government," a functionary from AIBEA said.
The unions claimed that about five lakh employees of various public sector banks would participate in the strike.
The employees unions are saying that the amendment to the banking laws will dilute the interest of public sector banks.
The Banking Laws (Amendment) Bill, 2011, was taken up in the Lok Sabha on Monday, but no discussion could take place in view of protest by the opposition.
Among other things, the Bill seeks to increase the cap on voting rights of private investors in public sector banks to 10%, from 1%.
Finance Minister P Chidambaram has ruled out the possibility of referring the Bill for the second time to the Standing Committee on Finance for further scrutiny as has been demanded by Opposition parties.
Earlier in August, employees of public sector banks had gone on two-day nationwide strike opposing banking sector reforms and outsourcing of non-core activities.
Punjab National Bank, Bank of Baroda and Canara Bank, all the three state-run banks are particularly challenged by the prevailing operating environment, characterised by high inflation and high interest rates, says the ratings agency
New Delhi: Credit ratings agency Moody's has lowered the rating outlook of Punjab National Bank (PNB), Bank of Baroda (BoB) and Canara Bank from stable to negative on account of rising bad loans, reports PTI.
"These Indian banks are particularly challenged by the prevailing operating environment, characterised by high inflation and high interest rates," Moody's said in a statement.
The revision in rating outlook, it said, "reflects the increased risk posed by current trends in asset quality, with continuing rise in gross non-performing loans and restructured loans pressuring profits and capital".
The prevailing economic conditions will reduce the repayment ability of some corporate borrowers and impact the banks, it said.
"Moody's analysis takes into account these bank's comparatively low provisioning, exposing their capital buffers to the risk of erosion in the event that those difficult conditions persist," the statement added.
The agency, however, has kept the foreign currency long term rating of the three PSU banks unchanged at 'Baa2' is a medium grade rating which reflects moderate credit risk.
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