MillenniumPost
Business

Bank officers’ union sets up private sector wing

The officials from the private banks have also decided to join an <g data-gr-id="30">all India</g> general strike on September 2, it said.

“The growing concern of the existing workforce is hovering around <g data-gr-id="49">host</g> of issues viz. <g data-gr-id="32">contractualisation</g> of permanent jobs, compulsory conversion of Scale III officers under C2C concept, outsourcing of the banking functions, discrimination in performance linked bonus, <g data-gr-id="34">non recruitment</g> of staff against permanent vacancies, tax exemption in the matter pension,” the <g data-gr-id="33">AIBOA</g> said in a statement.

The <g data-gr-id="28">AIBOA</g>, which claims to be the second largest union of banking officials, said the new wing called the Private Sector Bank Officers’ Forum was launched in Bengaluru. Kotak Mahindra Bank’s Venkatesh Babu will be the chairman of the forum.

It can be noted that a majority of the well-performing private banks do not have employees unions, which is a common sight in the state-run lenders. The recently concluded Rs 15,000 crore merger between the city-based Kotak <g data-gr-id="35">Mahinrda</g> Bank and the unionised ING Vysya <g data-gr-id="46">Bank,</g> had faced opposition from the employees. Meanwhile, Mutual Fund managers seem to be bullish on bank shares as they raised their allocation in the sector to an <g data-gr-id="36">all time-high</g> of over Rs 85,000 crore in July anticipating a rate cut by the Reserve Bank.

In comparison, equity fund managers’ deployment in banking stocks stood at Rs 55,086 crore in July 2014. Industry experts said that fund managers raised their allocation to bank stocks expecting a rate cut by the Reserve Bank.

They added that fund managers can not take a bearish call on banking stocks, given the high <g data-gr-id="37">weightage</g> attached to the index. As per the data available with Securities and Exchange Board of India (Sebi), overall deployment of equity funds in bank stocks stood at Rs 85,329 crore in July compared with Rs 78,582 crore in the previous month. The previous high was in <g data-gr-id="52">May,</g> when allocation of funds in the banking shares was at Rs 79,215 crore. Besides, exposure to bank stocks was at 20.88 per cent against 20.54 per cent in the preceding month. The BSE <g data-gr-id="38">bankex</g> index inched up 2.46 <g data-gr-id="39">per cent</g> in <g data-gr-id="51">July,</g> while BSE Sensex witnessed a growth of 1.2 <g data-gr-id="40">per cent</g>.

Besides, IT was the second-most preferred sector with fund <g data-gr-id="31">mangers</g> after banks with an exposure of Rs 38,404 crore, followed by pharma (Rs 31,246 crore), auto (Rs 28,761 crore) and finance (Rs 24,953 crore).MFs are investment vehicles made up of a pool of funds collected from a large number of investors and invest in stocks, bonds and money market instruments, among others. 

PSU bank scrips roar; BoB surges by 15%
Bank stocks were in huge demand on Monday, surging up to 15 <g data-gr-id="95">per cent</g>, following a slew of reforms announced in order to revive the fortunes of the public sector lenders. Shares of Bank of Baroda surged 15 per cent, Canara Bank climbed 10.27 per cent, Bank of India jumped 9.42 per cent, Union Bank of India (5.79 per cent) and State Bank of India (SBI) (4.22 per cent) on the Bombay Stock Exchange (BSE). To revive the fortunes of public sector banks, <g data-gr-id="84">government</g> on Friday unveiled a seven-point plan encompassing Rs 20,000 crore immediate fund infusion, <g data-gr-id="85">creation</g> of a single holding company and minimising political interference.
Next Story
Share it