Subbarao for higher compensatory packages to PSB officials

Mumbai: Amidst debate over high compensations offered to bank executives, Reserve Bank of India (RBI) governor D Subbarao today made a strong case for increasing the compensatory packages of public sector bank (PSB) officials, reports PTI.

"There is a good reason to revise their (PSB executives) compensatory packages. If they are required to compete with private banks, we have to increase the pay packages," Mr Subbarao said at a banking conference organised by the Indian Banks Association and Federation of Indian Chambers of Commerce and Industry (FICCI) here.

Mr Subbarao also warned of attrition in PSBs, saying, "PSBs will lose talent to the private sector."

In the aftermath of the financial crisis, the issue of compensation and specifically the variable pays offered to financial sector executives has been a matter of keen debate.

According to one view, the high variable pays resulted in the engineering of derivative products and their mid-selling which culminated in the crisis.

In his speech, Mr Subbarao also spoke about the proposed Basel-III norms and said the Indian banking system is better-placed to adhere to the norms which will soon come into effect internationally.


India to see strong hiring trend in next 3 months: Survey

New Delhi, Sep 7 (PTI) Employers in India are planning to hire at a robust pace in the next three months and public administration, education and services sectors are expected to see strong recruitment trends, reports PTI.

Globally, India is the most optimistic in terms of recruitment intentions for the fourth quarter, after China and Taiwan, according to staffing services firm Manpower's Employment Outlook Survey released today.

The job market remains robust in India as a result of strong domestic growth and recovery from key global markets.

But employers in other countries are reporting strong hiring forecasts, as well," Manpower India's managing director Sanjay Pandit told PTI.

India's net employment outlook - an indicator of employers' hiring intentions - stood at 38% on a seasonally-adjusted basis, for the next three months. For the third quarter, the outlook stood a little higher at 41%.

The outlook fell slightly for the next three months as recruitment activities are relatively less in this period, mainly on account of festival season, Mr Pandit noted.

For the fourth quarter, China has the highest outlook of 47% and is followed by Taiwan (40%).

Interestingly, for the 2010 third quarter, India was the most optimistic when it came to hiring intentions.

Of the total of 36 countries surveyed by Manpower, 28 showed positive hiring trends for the next three months. As many as 5,395 employers in India participated in the survey.

In terms of sectors in India, public administration & education has the highest net employment outlook of 45%, followed by services (40%) and finance, insurance and real estate (34%).

As per the report, transportation and utilities, and wholesale and retail trade sectors, each have an outlook of 22%.

"Once you combine strong domestic hiring along with improved International opportunities, we see one of the best scenarios that Indian job seekers could have imagined," he said.

With an employment outlook of 41%, employers in the south have strong hiring plans for the fourth quarter of this year. The northern region has an outlook of 37%, followed by the east (36%) and west (32%).

Going by the survey, the weakest hiring plans for the upcoming quarter were reported from Greece, Italy, the Czech Republic, Spain and Ireland.


SFIO gets extension to probe into alleged Austral Coke fraud

Kolkata: The investigation by the Serious Fraud Investigation Office (SFIO) into the alleged financial irregularities to the tune of Rs1,000 crore by metallurgical coking coal producer Austral Coke and Projects is likely to be completed by January, 2011, reports PTI.

"The investigation is still going on and we will take some more time. We had got an extension for another six months and we hope to complete the case and submit report by January, 2011," SFIO joint director Rajesh Sharma told PTI.

Mr Sharma, however, declined to throw light on the ongoing investigation, saying it could get longer if cross-border transactions were involved.

The government has ordered an enquiry by the SFIO into the alleged financial irregularities by the city-headquartered coking coal company, in January, 2010. SFIO was supposed to submit investigation report to the government in six months.

Attempts to contact Austral Coke management turned futile.

A corporate affairs ministry official had said they found 'prima facie' evidences of fund diversion, manipulation of accounts and tax evasion by the company.

The Securities and Exchange Board of India (SEBI) in September, 2009 had barred Austral Coke from raising fresh equity after the Income Tax (I-T) department unearthed an alleged over Rs1,000 crore fraud in the company's transactions.

The I-T department had observed that a part of the Rs142.29 crore fund raised by the company last year through an initial public offer (IPO) had been used in a fraudulent manner.

"Such purchases identified so far by the I-T Department totalled up to Rs553 crore. The company has also shown sales of around Rs495 crore, which apparently were bogus," the SEBI order had said.

The SEBI order had come ahead of Austral Coke's board meeting on September three to consider raising about Rs960.22 crore through private placements with institutions.

The market regulator had said the I-T department in June had conducted raids at the business and residential premises of Austral Coke and found 'bogus' transactions to the tune of Rs1,048 crore.

The SFIO probe is carried out under Section 235 of the Companies Act under which the investigating agency can call for information or explanation from the company.


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