CBI had registered a case against Acharya, the deputy MD of SBI as well as KK Kumarah, former additional general manager at SBI and Piyoosh Goyal, chairman of Worlds Window Group for alleged graft in disbursing loan of above Rs100 crore
State Bank of India (SBI), the country's largest lender said it has asked one of its deputy managing directors, Shyamal Acharya to go on leave and also constituted an internal panel for probing the graft charges against him. The Central Bureau of Investigation (CBI) raided Acharya's residence in a case of alleged graft in disbursing loan of above Rs100 crore.
In a statement, SBI said, “We have been informed by the CBI that Shyamal Acharya, deputy managing director and group executive (mid corporate groups) of our bank, is being investigated. Acharya has been asked to proceed on leave.”
“We have also constituted an internal committee comprising two senior managing directors to investigate internally,” the statement said.
Yesterday, the CBI registered a case against Acharya as well as KK Kumarah, former additional general manager at SBI and Piyoosh Goyal, chairman of Worlds Window Group for alleged graft in disbursing loan of above Rs100 crore.
According to the CBI, a team of its economic offences wing (EOW) in Mumbai has registered a case against them for alleged graft.
The agency sources said Goyal wanted a loan of over Rs100 crore from SBI for his firm when Kumarah got involved. They said Kumarah assured him of his contacts in the bank through which he could get that loan passed.
Sources said an arrangement was reached between Kumarah and Goyal under which he had to get Rs25 lakh for his services and Rs15 lakh for Acharya.
Kumarah allegedly purchased two high-end Rolex watches worth about Rs8 lakh to be given to Acharya for his alleged favours. Meanwhile, the CBI came to know about this deal and laid a trap.
Kumarah, who was coming out from the residence of Acharya after allegedly giving him watches, was nabbed by the CBI team.
The remaining cash of around Rs7 lakh was also recovered from him, the sources claimed.
The CBI teams carried out searches at the residences of Acharya, Kumarah and Goyal in Mumbai and Kolkata.
SBI said it stands committed to probity in its dealings and assured that it will continue to hold highest standards of honesty and transparency in its operations. The statement also said the bank is cooperating with the investigating agency in the probe.
The bargaining power of Indian IT companies with respect to entry-level employees is at its peak with real wages at their lowest in more than 15 years
Indian information technology (IT) companies are witnessing improved demand without much pressure on wages due to significantly better supply of engineering students coupled with changes in business model. "This time the usual acceleration in wage pressure that accompanies improving demand seems absent. Attrition has remained low and wage inflation remains in single digits. We note the bargaining power of companies with respect to entry-level employees is at its peak with real wages at their lowest in more than 15 years. While some of the reasons for this may be cyclical and could reverse, we believe that part of the reason is structural, too," says Credit Suisse in a research note.
According to the report, a number of markers point to the lack of this pressure on IT companies. For instance, mid-sized companies such as Tech Mahindra and Hexaware have been able to postpone wage hikes without any significant increase in attrition. Tata Consultancy Services (TCS)'s guidance of entry-level hires is the same as FY09 despite twice the overall employee base and a vastly different outlook (more positive) on the demand environment. The necessity to hire from campuses 18 months in advance, as has been the case historically, seems lower now, it said.
An improving demand environment has not caused a spike in attrition this time
Significant improvement in supply of engineering talent
According to Credit Suisse, the capacity at engineering colleges in India has seen growth of over 20% CAGR over the past six years. While the quality of some of the colleges may be varied and the graduation rates may also vary, supply has increased over the past few years.
Intake capacity of engineering colleges saw an over 20% CAGR over the past six years
Given the significant oversupply, engineering colleges are now focusing on forging close relationships with the top-tier Indian IT companies. Industry efforts to incorporate their training programmes in the regular engineering degree curriculum are gaining traction. This can help companies reduce their cost of training employees and the time to ‘on board’ them, the report added.
Changes in the business model
Given the larger scale of Indian IT companies, Credit Suisse said, the higher proportion of fixed price work and some amount of automation, it believes that companies can continue to improve utilisation even beyond historical highs.
The companies are also focused on ‘non-linear’ avenues of revenue where revenue can grow much faster than headcount. Platforms are one such avenue. Also, the faster growing service lines such as infrastructure services are much less linear compared with traditional application development and maintenance, and package implementation. Further, the process of software development has become less complex in certain areas due to the reusability of code, and the development of tools and platforms. As a result, a number of positions can be filled potentially with non-engineering graduates, the research note said.
According to Credit Suisse, Indian IT companies have also stepped up overseas hiring. It said, the companies have entered new areas of IT services where local talent and expertise become important. Also, given potential immigration issues and the difficulty in getting visas, companies have ramped up hiring onsite at the cost of local hires. While this may create margin issues, it does ease the pressure on wages domestically, it concluded.