LEVY ON SALARY

Deutsche Bank CEO Anshu Jain misled Bundesbank

Deutsche Bank's co-chief executive Anshu Jain may have "knowingly made inaccurate statements" to Germany's Bundesbank during investigations into manipulation of the inter-bank rate setting process, the Financial Times reported online, citing a confidential report from German regulator BaFin. BaFin declined to comment. Deutsche Bank told agency it disputed the allegation that Anshu Jain misled the Bundesbank. Earlier this month, a source told agency that Germany's financial watchdog Bafin heavily criticised Deutsche Bank in its report investigating attempts to manipulate inter-bank interest rates such as Libor. The German regulator has been investigating Deutsche Bank and the role it played during the financial crisis when a global inter-bank lending rate mechanism was being manipulated. BaFin recommends that Deutsche Bank should face "special banking supervisory measures" as a result, the Financial Times reported, quoting the BaFin report. Jain, who resigned his position as CEO effective June 30, is accused of having "knowingly made inaccurate statements" in a 2012 interview with the German central bank, the Financial Times said. Germany's central bank, which is known as the Bundesbank, could not be reached for comment. Jain is alleged to have told the central bank he had no knowledge of rumours of possible rigging in 2008, but contemporaneous e-mails about a meeting on the subject were forwarded to him at the time, the Financial Times said. Deutsche Bank on Friday said, "The BaFin report confirms our findings that no present or former member of Deutsche Bank's Management Board or Group Executive Committee instructed employees to manipulate intra-bank offered rates (IBOR) submissions or was aware of any attempted manipulations prior to June 2011 when certain misconduct first came to light during the Bank's investigation of this matter." In a statement, Deutsche Bank said, "Mr Jain disputes as baseless the allegation that he misled the Bundesbank in his 2012 interview. He understood Bundesbank’s question about when he first learned of rumours of possible IBOR rigging to mean rigging at Deutsche Bank itself which he learned of in 2011, not rigging in the marketplace which was publicly reported on in 2008." Deutsche further said that report also addresses concerns about control related issues, a number of which have since been rectified and others of which the bank was still working to improve. "As we have not yet responded to the BaFin report as part of the regulatory process, we believe it would be inappropriate to comment further publicly at this time," Deutsche Bank said. From the report, the Financial Times quotes BaFin's lead banking supervisor who is quoted Frauke Menke, lead banking supervisory as saying, "I have been astonished to learn that the suggestion is that the audit by BaFin supposedly resulted in clearing the senior management of DB, especially Mr Jain, and that supposedly no banking supervisory measures are expected," Menke was quoted as saying in the report. "I expressly want to point out that this is not correct," the Financial Times said, quoting Menke in the report.

RBI wants public sector banks to improve efficiency

 

RBI wants public sector banks to improve efficiency -Business Line 25.06.2015

As capital infusion for public sector banks (PSBs) by the government is also about committing tax payers’ money, the RBI said this calls for enhanced efficiency and capital conservation rather than an equitable distribution of scarce capital.

 

On the other hand, while there is no dispute over the need for buffering banks with adequate capital, this may not ensure asset quality and hence the overall strength of the balance sheet.

The RBI’s observation comes in the backdrop of the government capitalising only nine out of 22 PSBs in FY2015 on the basis of their return on assets and return of equity.

 

Chiefs of PSBs, which did not receive capital, termed this select infusion as a bolt from the blue. Given that their share valuations are currently not attractive for them to tap the equity market, the government now seems to be having a re-think on its strategy of select capital infusion.

The Financial Stability Report (FSR) observed that a reorientation of the performance evaluation of the top management (chief executives) of PSBs to specifically incorporate stock market valuations will reduce ‘principal-agent’ problems inherent in such a relationship and will also reflect the true marginal cost of capital relevant for recapitalisation.

 

The ‘principal-agent’ problems occur when one person/ entity (the agent) makes decision on behalf of or that impact another person/ entity (the principal).

The report pointed out that in terms of public perception PSBs, with implicit government support, are considered to be relatively immune to destabilising impact though it has an efficiency imperative, when judged by their returns on asset or capital employed.

 

However, the same sense of safety eludes PSBs when it comes to their valuations.

“With the government thinking of new performance-based norms for capital infusion, this disconnect is sought to be addressed.

“There may be a notion, albeit an incomplete one, that with the government deciding on performance-based parameters for identifying banks which deserve fiscal support, those that are not up to the mark might find it even more difficult to raise capital,” the FSR said.

News On Saturday Off

News On Saturday Off

The first Saturday off for banks in India will kick in from July 25, a fourth Saturday.

This is as per a government notification declaring second and fourth Saturdays closed for banks

 

RBI has cleared and sent their approval for implentation of 2nd and 4th saturday off to IBA from 15th July. IBA is vigorously following up for issuance of notification to this effect. It may take time as DFS will have to get the notification vetted from Law Ministry. In all probabilities 4th saturday of July will be off in the Banking Industry. Harvinder Singh, General Secretary,AIBOC

BEFI oppose IBA

BEFI oppose IBA

Regarding 6th stagnation and 8th stagnation increments:

IBA has issued a clarification regarding the above subject last week.
i.e those who got 6th increment on or after 01.11.2012 will be getting their 7th and 8th stagnation increments on revised dates.
However financial benefit will be from 01.05.2015 only.

Yesterday AIBEA has issued a circular endorsing IBA circular with examples and explanations.

BEFI issued a circular dt. 24.06.2015 objecting IBA circular and said it is a deviation from what was said in 10th B.P.S.

All you wanted to know about Atal Pesion Yojana

All you wanted to know about Atal Pesion Yojana

Details and Frequently asked question about the Atal Pension Yojana.

Atal Pension Yojana (APY), which will provide a defined pension, depending on the contribution, and its period.

 The APY will be focussed on all citizens in the unorganised sector, who join the National
Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA).

Under the APY, the subscribers would receive the fixed minimum pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per
month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would be based on the age of joining the APY

 The minimum age of joining APY is 18 years and maximum age is 40 years. 

 Mainly targeted at unorganised sector workers. 


All bank account holders under the eligible category may join APY with autodebit facility to accounts

 The subscribers are required to opt for a monthly pension from Rs. 1000 - Rs. 5000 and ensure payment of stipulated monthly contribution
regularly.

Government would provide (i) fixed pension guarantee for the subscribers; (ii) would co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever
is lower, to eligible subscribers;

Charges for Non Contribution
• Rs. 1 per month for contribution upto Rs. 100 per month.
• Rs. 2 per month for contribution upto Rs. 101 to 500/- per month.
• Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.
• Rs. 10 per month for contribution beyond Rs 1001/- per month. 

 Discontinuation of payments of contribution amount shall lead to following:
• After 6 months account will be frozen.
• After 12 months account will be deactivated.
• After 24 months account will be closed. 


 Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed monthly pension.

 Exit before 60 years of age is not permitted, however, it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal
disease.

Government co-contribution is 50% of the total contribution amount or Rs. 1000 per annum, whichever is lower, for a period of 5 years. Government co-contribution is
available for those who are not covered by any Statutory Social Security Schemes and are not income tax payers. 


Following are the indicative charts which shows how much one needs to contribute an how much one shall get the pension based upon that.

DNS Bank, Dombivli Nagari Sahakari Bank Job Opening IT & Legal Head

DNS Bank, Dombivli Nagari Sahakari Bank Job Opening IT & Legal Head

"Madhukunj" Plot No P-52, MIDC

Phase II, Kalyan Shil Road, Dombivli ( East ) - 421 204

DNS Bank has come out with the vacancy for the following two posts 

I. T. Department Head

Experience: 15 to 20 yrs out of which 5 years in banking industry as Head or Deputy Head of IT Department.

Job Description

* Design and Develop IT strategy.
* Responsible for quality and security with certifications like ISO 9001 and ISO 27000.
* Implement and manage Core Banking system. Candidate having exposure in ORACLE’s FLEXCUBE platform will be preferred.
* Manage activities of Data Center and DR site. Ensure smoother operations and controls round the clock. Exposure to Database Management.
* Manage change and work closely with business requirements vs. IT services to create value. Create Business Process Reengineering as per business requirements.
* Identify opportunities to support business requirements with IT.
* IT Budgeting and Planning.
* Recommend to Board and CEO appropriate hardware/software and technology solutions to business issues and enhancements.
* Designing, implementing and managing large local area and wide area networks and other IT infrastructure components.
* Sourcing software packages and vendors, and evaluating products for potential purchase.
* Monitor and ensure vendors slated SLA's are met. Liaison with vendors and apply strict process guidelines & measurement.
* Ensure the safety of the data flow and secure the server, conduct system audits to identify, resolve and provide timely alerts and corrective measures.
* Define and adhere to Information security practices, guidelines and standards.
* Maintain change management process and up-to-date documentation.
* Manage a team of 30 IT professionals including banking domain executives and engineers.

Education: Any Graduate – Specialization in IT, PG: Any Postgraduate – Specialization in IT/Computer, MCA - Computers, M. Tech - Any Specialization, Computers.

Desired Candidate Profile: Minimum 15 years out of which minimum 3 to 5 years in senior position in IT department of Banking Industry.

**Salary will not be a constraint for the suitable candidate.

Legal Department Head

Experience: 10 to 15 yrs. in the Legal Department of a Public Sector/Commercial/Co-operative Bank .
Practicing lawyer in Cooperative/ Civil/ High court can also apply.
Preference will be given to those who are having experience in banking industry/ or matters /litigation pertaining to banking have been handled in various courts.

Job Description 

* To lead the team of law officers to guide, advice and support all the branches and departments on any issue involving any point of law
* To provide guidance, support required in various legal issues relating to banking and non banking sector; to the branches & various departments
* To finalize legal Opinions on Title verification of the immovable properties offered as security to secure Advances and to finalize draft of Mortgage/Extension of Mortgage
(both equitable and registered/Simple Mortgages), to spur Advances being lent by the bank
* To finalize legal opinion on title verification of the properties proposed to be acquired on Ownership/Lease basis for the bank’s own use and
to finalize the sale/Conveyance Deeds and Memorandum of Understanding (MOU), Leave & License Agreements, Lease Agreement and renewals thereof.
* Recommending appointments for Empanelment of Advocates and liasoning with them.
* Brief the cases to advocate on record, senior counselors in the various matters under litigation and if required represent the cases on behalf of the Bank.
* To give on the job training and share test judgments / notifications / orders / awards with the Officers/Employees in the Legal Department for their better
performances and quality work and personal developments in the field and exercise administrative powers within the Department.

Education: (LLB - Law) OR (PG- LLM - Law) OR (Doctorate- with Law Specialization) of any recognized University in Maharashtra

Desired Candidate Profile:To lead a result oriented team of legal experts and monitor the performance of all legal functions to ensure smooth functioning and timely disposal of opinions and drafts. Further, he/she will be responsible to provide continuous support and guidance to Branches & Departments in Legal Matters.

**Salary will not be a constraint for the suitable candidate.