Indian Holocaust My Father`s Life and Time -Two Hundred SIXTEEN
Palash Biswas
http://indianholocaustmyfatherslifeandtime.blogspot.com/
| The split reality |
| Adivasis, Salva Judm and the State: who is provoking whom? |
| Some news is considered more worth publicizing than some other news. This is part of an essential discipline, for otherwise we will remain perennially buried under an avalanche of data, information and gossip. The wheat, never mind the change of meta... | Read.. http://www.telegraphindia.com/1091120/jsp/opinion/index.jsp |
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Banking & Finance
FM suggests merger plans for banks
NEW DELHI: The Finance Minister, Mr Pranab Mukherjee on Wednesday said bank managements should come forward with proposals for mergers to facilitate consolidation in the banking sector.
"The initiatives for consolidation in the banking sector have to come from the management of banks themselves," he told a meeting of the heads of state-run banks and financial institutions.
As regards the role of the government in the merger of banks, the Minister said, "The government would only play a supportive role as a common shareholder."
The process of consolidation of banks, Mr Mukherjee added, "may be necessary to improve the state of competitiveness of Indian banks globally and also to reduce the risk to financial stability".
Replying to questions from media on the issue of consolidation of public sector banks, Finance Secretary, Mr Ashok Chawla said, "There is scope for consolidation of public sector banks... the initiatives must be from the bank managements."
The government, Mr Chawla added, "will be happy to facilitate" merger of public sector banks. Besides State Bank of India (SBI) and its six associate banks, there are 20 nationalised banks in the country.
Large nationalised banks include Punjab National Bank, Canara Bank, Bank of Baroda and Bank of India. - PTI
Call to resist merger of public sector banks
THIRUVANANTHAPURAM: Law Minister M. Vijayakumar has called upon the bank employees to resist the Central Government move to merge public sector banks as it would destroy the banking sector. Inaugurating the `Navagatha sanghom' of the State Banks' Staff Union here on Sunday, he said that this policy went against the basic concept of bank nationalisation. The present move for merger of banks was part of implementing the hidden agenda in league with international agencies, he alleged Union president A.Jayakumar presided over the function. Union general secretary K. Raja Kurup and assistant general secretaries Jyothikumar and S.S. Thampi spoke at the function. C.Rajendran and M. Raghavan took classes.
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Article: Banking regulation: an overall perspective. (Research Rap).
Article from:Business Review (Federal Reserve Bank of Philadelphia) Article date:September 22, 2002CopyrightCOPYRIGHT 2002 Federal Reserve Bank of Philadelphia. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Ads by Google
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In this paper, Xavier Freixas and Anthony M. Santomero explore the important changes taking place in banking regulation as a result of ongoing financial innovation and the evolution of a more sophisticated system of regulation. They apply asymmetric information theory--a paradigm in which economic agents are presumed to operate in a world of incomplete, and sometimes biased, information--to issues central to the theory of banking.
The authors review the impact of such imperfect information on our ...
BANKING REGULATION BILL INTRODUCED (to give more operational flexibility to the RBI in the conduct of monetary policy).
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The Government of India has introduced a bill seeking to give more operational flexibility to the Reserve Bank of India (RBI) in the conduct of monetary policy.
The Banking Regulation (Amendment) ...
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 | | Cabinet approves changes in Banking Regulation and RBI Bill. News Wire article from: PTI - The Press Trust of India Ltd. ...approves changes in Banking Regulation and RBI Bill New...amendments to the Banking Regulation (Amendment...to give greater operational flexibility and regulatory...meeting. The Banking Regulation (Amendment... |
 | | CABINET GIVES NOD TO AMEND BANKING REGULATION BILL News Wire article from: The Hindustan Times ...amendments to the Banking Regulation (Amendment...accord greater operational flexibility and regulatory...of India. The Banking Regulation (Amendment...provisions in the Banking Regulation Act, 1949 have... |
| | | Banking Regulation Bill introduced. News Wire article from: PTI - The Press Trust of India Ltd. Banking Regulation Bill introduced...seeking to give more operational flexibility to the Reserve Bank...Chidambaram. The Banking Regulation (Amendment) Bill...section 24 of the Banking Regulation Act, 1949 to enable... |
| | | Banking Regulation Bill gets LS nod. News Wire article from: PTI - The Press Trust of India Ltd. Banking Regulation Bill gets...give more operational flexibility to the Reserve...today. The Banking Regulation (Amendment...would give operational flexibility to RBI in...amendments in the Banking Regulation Act, 1949... |
 | | The Future of Banking Regulation: The Basel II Accord - Get Answers To The Mounting Questions About The Future Of International Banking Regulation. M2 Presswire ...Research and Markets: The Future of Banking Regulation: The Basel II Accord - Get Answers...About The Future Of International Banking Regulation(C)1994-2009 M2 COMMUNICATIONS...Ltd's new report "The Future of Banking Regulation: The Basel II Accord" to their... |
 | | Greater international links in banking--challenges for banking regulation. Magazine article from: Economic Papers - Economic Society of Australia ...as a primarily domestic activity. Banking regulation for the most part also grew with...can arise when integrating their banking regulation. Hopefully, these issues can stimulate...Short History of Modern Australian Banking Regulation Modern banking regulation in ... |
 | | The creation of homeownership: how new deal changes in banking regulation simultaneously made homeownership accessible to whites and out of reach for blacks. Magazine article from: Yale Law Journal ...MORTGAGES A. Why FHA-Insured Loans Were Illegal B. Federal Banking Regulation: National Banks C. Federal Banking Regulation: Access to Credit for Thrifts D. State Banking Regulation E. How Changing Banking Regulation Transformed the National... |
 | | The Future of Banking Regulation: the Basel II Accord - Get Answers to the Mounting Questions about the Future of International Banking Regulation.(Report) Newspaper article from: Investment Weekly News ...John Wiley and Sons Ltd's new report "The Future of Banking Regulation: The Basel II Accord" to their offering. This up...the mounting questions about the future of international banking regulation. The Basel II Accord is a new system designed to determine... |
 | | Research and Markets: The Future of Banking Regulation: the Basel II Accord - Get Answers to the Mounting Questions about the Future of International Banking Regulation. Business Wire ...John Wiley and Sons Ltd's new report "The Future of Banking Regulation: The Basel II Accord" to their offering. This up...the mounting questions about the future of international banking regulation. * The Basel II Accord is a new system designed to determine... |
 | | CHINA, RUSSIA SIGN MEMO ON COOPERATION IN BANKING REGULATION News Wire article from: AsiaInfo Services ...Russia Sign Memo on Cooperation in Banking Regulation BEIJING, Nov 09, 2005 (SinoCast...understanding on the cross-border banking regulation on November 3, 2005, expanding...China has signed cross-border banking regulation with the US, UK, Canada, Germany... |
Banking Regulation Bill introduced
A bill seeking to give more operational flexibility to the Reserve Bank of India in the conduct of monetary policy was introduced in Lok Sabha on 9th March 2007 by the finance minister, P Chidambaram.
The Banking Regulation (Amendment) Bill proposes to replace an ordinance promulgated on January 23 this year. The ordinance seeks to amend section 24 of the Banking Regulation Act, 1949 to enable the RBI to specify the Statutory Liquidity Ratio without any floor rate.
Changes proposed in section 53 of the Act will make it mandatory to present draft notification before both Houses of Parliament in cases of exemptions being granted to institutions, banks or branches located in Special Economic Zones (SEZs).
Chidambaram said it was necessary that the RBI, as the regulator and the authority vested with the powers to conduct monetary policy, has the necessary flexibility regarding stipulation of holding of liquid instruments by banks.
Floor limit on SLR of banks was removed in January 2007, by an presidential decree and the government was required to move a bill within six months under the law ... Read more.
http://www.banknetindia.com/banking/70314.htm
Financial sector bills to be priority agenda for new govt
Tags : Financial sector bills to be priority agenda for new govt Posted: Tuesday , May 05, 2009 at 0120 hrs Suneeti Ahuja & Gunjan Pradhan SinhaThe department of banking and insurance in the ministry of finance has drawn out a list of pending reforms to be submitted to Cabinet Secretary KM Chandrashekhar later this month. Most of these involve legislative action and perhaps call for changes depending on the nature of the coalition at the Centre.
The Micro-finance Development and Regulation Bill, Banking Regulation (Amendment) Bill and the State Bank of India (Amendment) Bill need to be re-introduced in Parliament once the new government assumes power. The Insurance Development and Regulation Bill may, however, retain its original form. The UPA government introduced it in the Rajya Sabha last December to prevent it from lapsing.
All these bills hold great significance and take forward India's unilateral commitment to pursuing financial sector reforms.
The Micro-finance Development and Regulation Bill seeks to facilitate universal access to integrated financial services in rural and urban areas that lack banking facilities. It also seeks to regulate micro finance organisations (MFO) that are not regulated. It also aims to bring under its purview societies, trusts and cooperatives.
http://www.indianexpress.com/news/financial-sector-bills-to-be-priority-agenda/454574/Results 1 - 10 of about 169,000 for nationalised banks. (0.14 seconds)
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Nationalised in 1980, Corporation Bank was the forerunner when it came to evolving and adapting to the financial sector reforms. ...
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Directory of Public Sector Banks- Links to all Nationalised Bank Websites 1. Allahabad Bank - Click here 2. Andhra Bank - Click here ...
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Govt kicks off talks on bank consolidation - 1 day ago
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18 PSU banks seek capital infusion
13 Oct 2009 ... 18 PSU banks seek capital infusion. Press Trust of India / New Delhi ... Almost all the nationalised banks are seeking fresh infusion of ...
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Banks tweak ATM strategies. State-owned banking sector comprises 20 nationalised banks, State Bank of India and its six subsidiaries. ...
sify.com/.../18-psu-banks-seek-capital-infusion-news-bank-jkoivOjhjij.html - Cached -The Hindu Business Line : More car makers partner PSU banks for ...
13 Feb 2009 ... Hyundai Motor India too has getting into such arrangements with the nationalised banks, even as private sector banks have slowed down on car ...
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1 Feb 2009 ... IT majors trust PSU banks for their Rs20,000 cr cash, TCS, Infosys, ... in nationalised banks in India," Infosys CFO V Balakrishnan said. ...
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21 Sep 2009 ... Related to : Bank Branch, Banks, Private Banks, PSU Banks, Foreign Banks, Nationalised Banks, Branches Contact : K. Amit ...
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22 Aug 2009 ... Banks in India are classified into four categories by the Reserve Bank of India (RBI) --- nationalised, private, foreign and the State Bank ...
article.wn.com/.../Every_second_loans_from_a_nationalised_bank/ - Cached -PSU banks shy away from funding, sans collateral
Mumbai, Dec 30: Despite the phenomenal growth in the country's retail sector, India's nationalised banks continue to shy away from funding the retail ...
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IT majors trust PSU banks more for their Rs 20000 crore cash. ... of our portfolio is kept in nationalised banks in India," Infosys CFO V Balakrishnan said. ...
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Nationalised Banks Face Tougher Challenges
17 Jun 2001 ... THE public sector banks in India today are in deep trouble as their .... most conveniently want to use to privatise the nationalised banks. ...
pd.cpim.org/2001/june17/june17_banks.htm -'India survived slowdown because of banks nationalisation' news
'India survived slowdown because of banks nationalisation'. ... Finance Minister Pranab Mukherjee Sunday ruled out privatisation of state-run banks and said ...
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29 Jun 2009 ... The Nationalisation to Privatisation quagmire! ... In the U.K., Northern Rock, a mortgage lender, has been under public control since 2007 as well as the Royal Bank of Scotland (RBS), .... India dumping claims on China. ...
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26 Jul 2009 ... 'India survived slowdown because of banks nationalisation' ... Pranab Mukherjee ruled out privatisation of state-run banks & said mkt ...
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20/11/2009
Shiv Sena attacks IBN offices in Mumbai, Pune
Mumbai: A group of men suspected to be Shiv Sena activists attacked journalists and damaged property at the offices of IBN7 and IBN Lokmat, the Hindi and Marathi news channels of the IBN Network, in Mumbai and attacked the OB van of the channel in Pune on Friday afternoon.
According to reports, IBN Network journalists and other employees were beaten up and their clothes torn by the group. Attackers shouted slogans against the television channel broke the window panes and attacked the staff. The attackets were armed with iron rodes, baseball bats and cricket stumps.
Seven persons were arrested in connection with the attack on the Mumbai office of the channel and a couple of others were booked for the vandalism against the channel in Pune.
"We had no idea that such a thing was going to happen. Whoever is responsible for this will be severely dealt with. Nobody has the right to assault journalists," said Maharashtra Chief Minister Ashok Chavan.
Source: India-Syndicate
20/11/2009
Ram temple symbol of Sena's sacrifice for Hindutva: Thackeray
Mumbai: Ram temple at Ayodhya is a symbol of Sena's sacrifice for Hindutva and the party would fulfil the promise of constructing it fully, Shiv Sena chief Bal Thackeray has said.
"Ram temple is a symbol of Sena's sacrifice for Hindutva," an editorial in party mouthpiece `Saamana' said yesterday. Thackeray is the newspaper's editor.
Crediting Sena for bringing down the Masjid, Thackeray said, "Kothari brothers, who demolished the domes of Masjid and hosted a saffron flag there were Shiv Sainiks and I am proud of them."
Referring to SP MLA Abu Asim Azmi's announcement to rebuild Babri Masjid at Ayodhya, Thackeray said, "if someone is dreaming of rebuilding Babri Masjid, Sena has the power to shatter those dreams."
Thackeray described the assault on Azmi in Maharashtra Assembly by MLAs belonging to MNS as a "mild slap".
Source: PTI
Mamata to take up Railway Safety issue with Chidambaram
New Delhi, Nov 20 : Railway Minister Mamata Banerjee will take up the Railway safety issue with Union Home Minister P Chidambaram as it was an easy target for any miscreant group.
She said this against the backdrop of the naxalite attack which resulted in the derailment of eight bogies of the Tata-Bilaspur passenger train in Jharkhand's west Champaram district last night.
One person died while 25 were injured in the incident.
Talking to newspersons here today outside Parliament, Ms Banerjee said the Railway Ministry will take up the issue with the Home Minister, as every day there are kidnappings, obstractions and bomb blasts.
The Railway Minister said these issues should be resolved through talks.
Responding to questions, Ms Banerjee said security and law and order was a State subject. She said the Railway Protection Force (RPF) cannot even file an FIR. These are carried out by the Government Railway Police (GRP) where the Railways bear fifty per cent of their salaries and the balance is provided by the respective State Governments.
In response to another question, she said the prima facie evidence suggested that last night's attack was carried out by the naxalites.
The Railway Minister further disclosed that earlier it was feared that two person died in this attack but it has now been found that one of them is alive. The condition of three injured persons were critical.
The Railway Minister said railway property should not be damaged as the Railways cater to lakhs of people across the country.
--UNI
Sugar prices force three adjournments of Rajya Sabha
New Delhi
, Nov 20 : A united opposition forced three adjournments of the Rajya Sabha Friday, the last one for the day, as it vociferously protested the United Progressive Alliance's new sugar pricing policy.
However, Chairman Hamid Ansari managed to push through the business listed for the day before adjourning the house to meet at 11 a.m. on Monday.
Friday was the first full working day of the Rajya Sabha's winter session, having adjourned on the opening day Thursday after obituary references to three former members and late Andhra Pradesh chief minister Y.S. Rajasekhara Reddy.
The trouble began immediately after the house assembled Friday when Samajwadi Party MPs raised slogans against the new sugarcane pricing policy with party leader Amar Singh advancing to the well of the house.
However, Bharatiya Janata Party (BJP) MP S.S. Ahluwalia prevailed upon them to let nominated member H.K. Dua take his oath of office.
The MPs resumed their protest thereafter, refusing to heed to Ansari's appeals for calm. At 11.04 a.m., Ansari adjourned the house for 15 minutes.
Attendance on the treasury benches at the time was extremely thin, with only Agriculture Minister Sharad Pawar and Sports Minister M.S. Gill being the only ministers present.
Minister of State in the Prime Minister's Office Prithviraj Chavan and his counterpart in the railway minister E. Ahamed walked in just before the house resumed at 11.19 a.m. with the opposition protests continuing.
An exasperated Ansari said: "Please let me speak for two minutes. I have received a notice from the leader of the opposition that the question hour be suspended. The issue (sugar prices) is listed for a short duration discussion. We will take it up at the appropriate time."
This did not satisfy the opposition, which continued with its slogan shouting and Ansari, at 11.21 a.m., adjourned the house till 12 noon.
By that time, both Pawar and Gill had left the house and ministers of state Chavan, as also P. Purandeshwari (human resource development), Ajay Maken (home) and V. Narayanswamy (parliamentary affairs) were the only government representatives on the treasury benches.
In the midst of continuing protests, Ansari called for papers to be laid and 10 minutes later, adjourned the house for the day.
The central government has announced a price of Rs.129.85 per quintal for sugarcane during the 2009-10 crushing season under the Fair and Remunerative Price (FRP) system, while the Uttar Pradesh State Advisory Price (SAP) has been set between Rs.165 and Rs.170 per quintal.
In case a state government fixes SAP higher than the FRP, it will have to pay the difference.
Farmers want Rs.280 per quintal for their produce.
On Thursday, cane farmers from Uttaar Pradesh had marched from the Ramlila Ground to parliament to protest the new pricing policy.
Their leader, Rashtriya Lok Dal MP Ajit Singh, said: "Sugarcane farming in Uttar Pradesh is dependent totally on diesel and the price of diesel is touching the sky. In such a scenario if the farmers do not get an adequate price for their produce, the agitation is completely justified."
"Uttar Pradesh provides 40 percent of the total sugar in the country," he added.
--IANS
Privatisation of tax administration
Nov 20, 2009 Government Policy
In the present scenario, tax is a burden imposed by law. Since our present state rest on the Principles of Rule of Law, the tax administration does not remain a mere revenue collection exercise, it take the shape of administration of a branch of law. Thus the ideal taxation is execution of a well defined law with defined burden, legal-procedural-financial,on the subjects. When such law is administered by an inefficient and corrupt institution, it does not result in merely less collection of revenue but erosion of subject's faith in the existence of Rule of Law.
The taxation law affects the economic interest of the nation. When such laws is inefficiently administered, when such laws are administered by corrupt bureaucracy, when the drastic nature of such laws threat the liberty of businessmen; it results in lower business confidence, less investment, inefficient use of capital and ultimately result in lowering the growth rate of the nation. Numerous studies has been conducted and it has been found conclusively that institutional factors like Rule if Law, personal liberty, absence of corruption, efficientadministration propels the growth rate of any nation.
Thus on theoretical, moral and economic ground- there is a case for efficient and honest tax administration. We will not require any independent proof that our tax administration is neither efficient nor honest. This paper is an attempt to examine the possibility of private sector participation in the taxadministration so as to make is efficient and honest- and more so to inculcate the spirit that tax administration exist for the people.
PRIVATE COLLECTION OF TAXES:
Under Article 265 of the Constitution of India, the taxes are to be levied as per expressed provision of law. However, the machinery of taxcollection is based on convenience- there is no bar that private persons cannot collect taxes. On smaller taxes, like toll tax imposed by Municipality, at various places it is collected by private parties. Excise duty on country liquor is collected by private parties. In approximately 80 countries of the world, custom duty is privately collected. Thus it is perfectly legal if tax collection is privatized. However, for the purposes of this paper, the author is confining itself to certain processes which can be easily privatized, without unduly affecting the present tax structure.
Receipt of Communication:
A tax payer is required to give certain communication to the department like application of registration, periodical returns, intimations, reply to departmental communications etc. Any person who visits the departmental office has a horrowing experience in getting a receipt of the communication. Citizen's Charter says that communications shall be acknowledgedon the spot. However, every assessee knows that how difficult is to get a receipt of communication. I feel that certain private agencies, like post office, or banks or even private companies can be authorized to receive such communication on behalf ofthe department. Thus the department will be saved of many visitors in the office, the assessee will be saved from undue harassment, interface of tax payer and taxmen will be reduced leading to reduced corruption, more accountability ofthe department etc. Further, the scheme can be self financing as a user fee can be imposed, like Rs. 50 per communication.
Another problem is with E-Mail communication. The supplementary instruction of the department says that communication can be sent via E-Mail. However, the departmental officers never reply to the mail. Whether, they reply or not, it is there problem. The assessee must get an acknowledgement of the sent mail. The official mail boxes of the officers can be given a facility of auto reply of acknowledgment.
Registration Certificate:
Registration of unit is a first point where an assessee meets the department, and this meeting ordinarily not very pleasant. As per the departmental instructions, the registration certificate is required to be issued immediately and verification is done after registration. There are well defined documents which are required at the time of registration. This process may be privatized, and private persons can be empowered to issueregistration certificate. After such registration, the department can do the verification and if any anomaly is found, appropriate action can be taken.
Thus we can examine various processes, which are simple and does not have revenue amplifications which can easily be privatized. Even other processes like dispute settlement, adjudication, audit etc. can also be privatized without much difficulty, but examination of those processes are beyond the purview of this paper. A beginning can be made with simple processes. If the government of the day is really a government of common man, and interested in transparent governance it will certainly take some positive steps in the direction.
Written by:- Advocate Rajesh Kumar. The author can be contacted on The author can be contacted on custom.excise@gmail.com , Web: www.rajeshkumar.co.in
Insurance Law Amendment Bill and Banking Regulation Amendment Bill unlikely to taken up in the winter session of Parliament. Banks are all set for Disinvestment and Merger. But the Government of India Incs seem to bypass the parliament as they had been to hand over Indian Economy to the FIIs abolishing the FDI cap keeping the Cabinet in dark.Privatisation of tax administration is also on cards!
http://www.taxguru.in/government-policy/privatisation-of-tax-administration.html
Sources said finance ministry officials met the chairmen of the five largest nationalised banks — Punjab National Bank, Canara Bank, Bank of Baroda, Bank of India and Union Bank of India — to help the government prepare a roadmap. Nationalised banks refer to private banks that the government took over.
Bankers told the finance ministry officials that as the majority owner, the government should consider issues such as geographical synergy, culture and a technological fit before deciding on alliance partners.
Although the government has been talking of bank consolidation for over half-a-decade, the earlier Manmohan Singh-led alliance could not go ahead with the move, owing to opposition from the Left parties.
Trade unions are Silent and play the most Proactive Role to Push for Economic reforms as Communist leaders from around the world met in New Delhi Friday to discuss how to "intensify popular struggles".The 11th International Meeting of the Communist and Workers Parties is jointly hosted by the Communist Party of India-Marxist (CPI-M) and the Communist Party of India (CPI).Among those attending the gathering are Oscar Martinez Cordoves of Cuba, Scott Marshll of the US, Manzurul Ahsan Khan of Bangladesh and Ai Ping of China.CPI-M politburo member Sitaram Yechury spoke on the occasion. General secretaries Prakash Karat (CPI-M) and A.B. Bardhan (CPI) were present. Meanwhile, Emphasising the threat of civil war in Afghanistan if the US withdrew its forces, Prime Minister Manmohan Singh has warned of 'catastrophic consequences for the world, particularly for South Asia' if the Taliban triumphed.The Supreme Court Friday dismissed a plea to ban idol immersions in water bodies across the country, saying restrictions would militate against the fundamental right of a section of citizens to profess and practice the religion of their choice.Suggesting a trade-off between the western world's demand for opening of trade in farm and industrial products and the developing countries' demand on labour migration towards concluding a global agreement under the World Trade Organisation, an industry chamber today said this and other measures could help India plan for an ambitious target of 300 billion dollar export by 2014.
Major financial sector bills such as the Insurance Law Amendment Bill seeking to increase the FDI cap in private insurance firms and the Banking Regulation Amendment Bill to raise the voting rights of foreign entities in private sector banks are unlikely to be taken up in the Winter session of Parliament that begins tomorrow.
However, the Constitutional Amendment Bill seek to roll out Goods and Services Tax (GST) and the Direct Taxes Code Bill may be tabled in the session that ends on December 21. The government will reintroduce the Pension Reforms Bill which seeks to give statutory powers to the interim sectoral regulator PFRDA and open up the sector, Parliamentary Affairs Minister PK Bansal told.
He said the Banking Regulation Amendment Bill and the Insurance Law Amendment Bill are unlikely to come up for consideration in the Winter session as they are still with the respective standing committees. However, a Constitution amendment Bill is likely to be presented for launching GST that will replace most indirect taxes at Center and states level, sources said. The Bill seeks to empower the Centre to tax goods beyond the stage of manufacturing. At present, this is entrusted with states. The legislation will also empower states to tax services. The Empowered Committee of State Finance Ministers has already come out with a discussion paper on the broad contours of GST which is scheduled to be implemented from the next fiscal.
Sources also said a separate Bill would be presented to replace the archaic Income Tax Act with the Direct Taxes Code. The Direct Taxes Code will replace Income Tax Act of 1961, but its draft has evoked sharp reaction for certain provisions like taxing withdrawals from long-term savings and minimum alternate tax. Finance Minister Pranab Mukherjee has assured a Parliamentary panel that concerns raised by corporates and other tax payers will be addressed before any further steps are taken on the Direct Taxes Code.
The Fair and Remunerative Price (FRP) for sugar was fixed at Rupees 129 a quintal for 2009-10 season, working out 44 per cent higher than cost of production of sugarcane, including the cost of transportation to the millgate, the Rajya Sabha was informed today.Mind you, Bowing to angry protests from opposition parties and farmers, the government Friday agreed to restore the earlier sugarcane prices.Ahead of his landmark visit to the United States, the Prime Minister, Manmohan Singh, has asserted that India wants the US to use all of its influence with Pakistan to stop it from sponsoring terrorism.Moving beyond the transformational nuclear deal, India and the US are set to unveil a new template for deepening strategic partnership on key global challenges, ranging from counter-terrorism to non-proliferation and climate change, when Prime Minister Manmohan Singh meets US President Barack Obama in Washington Tuesday.Gold zoomed to a fresh record high of Rs 17,295 per ten gm after gaining Rs 105 per ten gm today on the Bullion market on brisk demand from stockists along with encouraging global advice, traders at the Bombay Bullion Association (BBA) said.
The Sensex of Bombay Stock Exchange (BSE) today ended at 17,021.85 with a smart recovery of 236.20 points, as against its overnight finish at 16,785.65 points.
Ironically, Indian Political Parties including the Communists and Marxists do Ensure how to KILL the Popular Struggles!A day after the capital's heart was vandalised by over 40,000 protesting sugarcane farmers, police Friday said they could only do so much to prevent the situation from spinning out of control. For the first time in Madhya Pradesh, a clutch of children released the Unicef State of the World Children Report 2009 here Friday, praising the efforts of the government for their survival, care and protection but also calling for more focus.Children like Pappi Khan, Madhu, Aashi, Shivani Sen, Aarti, and Sunil - from Bhopal and Hoshangabad - were delighted to get a platform to speak out. They called on the state and society to speak out against female foeticide, child abuse and provide quality education and care to all children.Poor monsoon in the country led to the fall in agricultural production in the Kharif season this year to 96.63 million tonnes compared to 117.70 million tonnes in 2008-09, the Rajya Sabha was informed today.
"What's needed is a supportive environment that respects women's rights. Educating women and girls is pivotal to creating such an environment," said one of the children.
"Most of all, saving women and children's lives requires the concerted efforts of government leaders, health specialists, civil society, communities and families", said another.
"There has been considerable progress since the Convention on the Rights of the Child was opened for signature nearly 20 years ago though the rights of millions of children are still not respected or protected," said Manish Mathur, officer in charge of Unicef.
Twenty years after the UN adopted the treaty guaranteeing children's rights, fewer youngsters are dying and more are going to school, says Unicef's report.
Don't be surprised if your bank vanishes overnight to re-emerge with a new name.meanwhile, in a bid to check proliferation of counterfeit currency notes and make bank notes last longer, India's central bank will introduce 100 crore polymer notes of Rs.10 denomination on a trial basis soon, it said Friday.
Parliament Session begins with SUBVERSION with excellent Floofr adjustment of Ruling calss Political Parties belonging to NDA, Left and UPA. It heralds DISASTER and NEVER mind the Concern and commitment showcased to arouse Nationalism, Ethnonationalism and Sugar cane famrmers cause Upheld together.It is going to prove an illusion.The month-long winter session of parliament begins this Thursday, presenting the government with an opportunity to further its reform agenda. There has been much talk of reforms in higher educationand judiciary and second generation reforms in the financial sector. The government would need to introduce bills to address these issues.Meanwhile, Some 3,000 Indians, mostly in Jammu and Kashmir, have been killed in landmine explosions over the past 10 years, according to an NGO working for a world free of antipersonnel landmines and cluster munitions.On the other hand, With less than a week to go before the first anniversary of the 26/11 Mumbai terror attack, Defence Minister A.K. Antony reviewed the security scenario in the country in a high level meeting here on Friday.
Our maoist Friends are angry with me as I challenged their strategy to defend the Corporate and MNC interest in Got Up games with ruling Hegemony. They have written letters to Samayantar and raised the issue on different forum.I have got a letter from rajasthan which alleges that I stand to defend the Revisionist Marxists. Latest Maoist action to blow up a passenger train itself justifies that the Maoist leadership is not at all CONERNED with the Masses as it tries DIE Hard to showcase. It is as projected as any NGO. Let me see that the Maoists strike against Corporate and MNC nterest anywhere in those Maoist Frontiers captured by Corporates. Economic Times has published a story today, BRAND Final and analysed that the companies which focused on Local marketing, have gained more. RIL leading. It proves that Rural strategic marketing has paid DVIVIDENTS most and Maoists Never did try to stop this MOW menace. The Richest Peasantry based state remains Haryana, where no less than One Hundred SEZ have been proposed. One Crore Strength Kisan Sabha is silent. Vidarbha crisis is subverted by False Ethnonationalism called Maratha Manush.While Shetkari kamgar Union leader sharad Joshi has joined shivsena.
"In the last 10 years, around 3,000 Indians died due to landmines and over 2,000 were injured. Most casualties occurred in Jammu and Kashmir, followed by Manipur," according to Landmine Monitor Report 2009, which will be released Saturday.
Among the Indian states affected by landmines are Rajasthan, Punjab, Sikkim and areas affected by Maoist insurgency.
Landmine Monitor is the research and monitoring programme of the Nobel Peace Prize-winning International Campaign to Ban Landmines (ICBL).
Urging the government to sign the disarmament Mine Ban Treaty, the ICBL said India's antipersonnel stockpile is estimated to be between four and five million - the fifth largest in the world.
It said India's last major use of antipersonnel mines took place between December 2001 and July 2002, when the Indian Army deployed an estimated two million mines along its 2,880 km northern and western border with Pakistan during Operation Parakram. The operation directly affected more than 6,000 families across 21 villages in India.
Indian Army units have sustained heavy casualties in the course of demining operations, notably since the start of mine-laying on the Pakistan border in December 2001, the report said.
Some 39 countries, including India, China, Pakistan, Russia, and the US, have not signed the treaty.
According to Binalakshmi Nepram of Control Arms Foundation of India, the global use, production, and trade of antipersonnel mines have dramatically reduced and casualties have declined.
"But serious challenges still remain, with more than 70 states still mine-affected today," she said.
Major Barve from Mumbai confiremd that the Demonstration against SEZ led by Woman is all set to put Mumbai on standstill on 22nd November, But Medha Patkar has ultimaely planned to protest against SEZ on 25 , 26 Novemeber while Navi Mumbai is given away with the false movement.The Government Employees are sleeping and Twenty percent disinvestment targeted in 1009 itself in all profitable PSUs would not awakent them. They still depend on Marxist led trade Unions.On the other hand, The Congress is campaigning hard in Jharkhand for the coming assembly polls, with party chief Sonia Gandhi addressing two rallies in the state Friday and party general secretary Rahul Gandhi set to address four meetings Saturday.
The Supreme Court Friday suspended a Madhya Pradesh High Court order directing the state government to give land to the adult children of those displaced by the Indira Sagar dam project on Narmada river.Blood tests to detect diabetes are likely to be made compulsory at health centres across India following the internationally followed "opportunistic screening" norm. The scheme was in its pilot stage in 10 states, Health Minister Ghulam Nabi Azad said Friday.The central government has committed Rs.332.92 crore in various health measures to check the spread of Influenza A (H1N1), more commonly known as swine flu, Health Minister Ghulam Nabi Azad said Friday.The health ministry will spend Rs.9.2 billion this financial year for promoting Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) - the Indian systems of medicine - in the country, Minister of State for Health S. Gandhiselvan told parliament Friday.
This morning APDR Activist and leader Dr Manas Joardar called me and we had a good chat. Dr, Joardar informed me that BANDI Mukti committee would have a meeting i HB Town this Eevning. I had to miss as I had prior engagement. But we discussed the Issues raised by Kabir Suman and he agreed that the issues are genuine.
I aske him if we Oppose the Economic reforms, Monopolistic aggression and Chidambaram`s war against the masses , why should we tag us with the Ruling Hegemony as it is quite Clear that the marxist would not Return to Writers in 2011 ? Why do we support Dr. manmohan singh and his Mass destruction Agenda supporting Mamata Banerjee, the scond partner in UPA?
He calrified that only a faction of the Intelligentsia and civil Society support Mamata!
But other are SILENT and waiting for Oppotune tie to respond suitably. I said,` Civil Society and Intelligentsia are replicating the World bank agenda only and represent the Market Dominating communities in the Free Market democracy!
DR Joardar agreed to discus it some time!
This morning, I woke up with the news breaking that the seniomost person in my locality, Chitya Guha was dead. I had to join the Funeral party. I just informed my young IT Wizard Son Tusu and requested him to let me sit on the PC as I had to write on Palestine and I would not get time later.
`So What if the Old man has departed,' he asked.
I smiled and said,` When your parents would die, the Neighbourhood may respond the Ditto'.
`Then?'He asked.
His mother also tried to convince that provided we are detached with the neighbourhood, who would come out to help us when we would need most!'
Tusu, I don`t know whether he was convinced but he allowed me to sit and work on the PC.
I see similarity striking in the behaviour of the Govyt. employees as they would never respond untiil they smeel some benefit. They are not INFORMED, Not Concerned. Their daily job is regular harrasment for the public. Recntly, a young Businessman did kill four Bank employees just indulging in REVENGE!
Thus, Don't be surprised if your bank vanishes overnight to re-emerge with a new name.And mind you it is delayed action as tyhe bank rec gulation bill is pending.The government should sell off half its public sector undertakings and use the 200 billion dollars it will thus make to build environmental assets, 13th Finance Commission Chairman Vijay Kelkar said here Friday.The finance ministry thus wanted right in 2004 that the country's nationalised banks to develop better brand equity, and become stronger and smarter.The ministry believed and has not chaged the strategy even after FIVE years that the merger of existing nationalised banks that will create a stronger identity can help win the confidence of depositors more than any of the mushrooming private banks.
"India built physical assets by setting up public sector undertakings when that was needed. Now private firms are able and willing to buy these assets. But they are not willing to build natural resource assets, which is what India needs now. That is what the government should build," the noted economist said.
Kelkar was speaking at the release of a report by the think tank The Energy and Resources Institute (TERI) on what India should look like in 2047, a hundred years after independence.
With just about a month left before the 13th Finance Commission submits its report, Kelkar said there were three inter-state issues "where we need to shift from negative to positive externalities through transfers -- forests, green energy and water". Externalities are the unintended consequences of an action.
Releasing the report, Environment Minister Jairam Ramesh predicted that by 2015, India would include environmental resources in its economic accounting and planning.
While commending TERI for providing a blueprint
for India's growth without damaging the environment, Ramesh pointed out that the country had excellent laws to protect nature, but they were not being implemented.
"Environmental governance is the key," the minister said, pointing to his plans to start a national environment protection authority and a national green tribunal as steps in this direction.
Presenting the highlights of the report, TERI Director General Rajendra K. Pachauri said land and water constraints would impede India's growth unless these issues were addressed and the question of social justice was addressed.
Pachauri also spoke of the need for states and local governments to take over environmental governance. "We need this," he said, "but efforts at decentralisation first need to address issues of capacity and accountability".
While addressing the urgent need to add to natural assets such as water, land or forests, Pachauri sought "renewed emphasis on efficiency and equity" in the use of these resources. The report also had concrete proposals on how to build India while taking care of biodiversity, minimising air pollution, handling municipal solid waste and so on.
Already there was talk of a possible merger of the Bank of India and the Union Bank of India . If it goes through it will create the second largest bank in India after the State Bank of India
But the Left dominated Trade Unions sat IDLE for FIVE years and have not responded as yet.
However, to merge the banks need the approval of their respective boards of directors and the final nod from the Reserve Bank of India, it was the original plan which may be modified.
The government has indicated some items on its legislative agenda. The Equal Opportunities Bill was recommended by the Sachar Commission to enforce affirmative action -- in both the public and private sectors. The law minister has indicated that he may introduce bills to codify accountability of judges and declaration of their assets and take measures to improve delivery of justice.
The human resource development minister has also indicated the possibility of legislation to reform the higher education sector, including a new regulatory structure and permission for foreign universities.
The government will introduce bills to replace four ordinances that have been promulgated since the last session. The Essential Commodities Act was amended to provide that the price fixed by the central government for sugarcane shall be taken into account while calculating the price paid to sugar mills for levy sugar. This has become a controversial issue as the minimum sugarcane price fixed by state governments is often significantly higher than the central government pricing.
The Central Universities Act was amended to bifurcate the Jammu and Kashmir University. The Competition Act was amended for immediate closure of the MRTPC; earlier a two-year time frame was fixed for the purpose. And the Jharkhand Contingency Fund (with the state being under President's rule) was enhanced from Rs.150 crore to Rs.500 crore. It is likely that the last three bills will be passed with broad agreement from most parties.
Thirty-six bills are pending in the Rajya Sabha from earlier sessions. These include the seeds bill, the communal violence bill, the women's reservation bill and amendments to the insurance act.
Some of these bills have not been taken up for discussion as they face strong opposition from some political parties. For example, the seeds bill that regulates the manufacture, distribution and sale of seeds also requires inter-farmer sale of seeds to conform to quality tests and norms. The standing committee has recommended deletion of this requirement; it will be interesting to see whether the government proposes any amendments.
The communal violence bill doubles the punishment for certain crimes if they are committed as part of communal riots. This has been criticised as ineffective on account of the low conviction rate in such cases.
The women's reservation bill has been referred again to the standing committee, as the earlier committee was not able to arrive at a consensus.
The insurance bill raises the foreign investment limit to 49 percent (currently 26 percent) and allows nationalised general insurance companies to raise funds from the capital markets. This bill is pending with the standing committee, and could see opposition from the Left parties.
Some of the bills that lapsed with the dissolution of the last Lok Sabha could be re-introduced. The president's address in June signalled urgency over the land acquisition amendment and the rehabilitation bills. However, some cabinet ministers have reportedly objected to these bills.
The bill to amend the Forward Contracts Regulation Act was stalled last year due to opposition from the Left. Given the current position of the UPA government, this bill could be revived. The case of the pension regulatory bill is similar; indeed this bill has been publicly supported by the Bharatiya Janata Party.
A set of bills could be introduced related to the State Bank of India (SBI) group -- reducing the minimum government shareholding in SBI to 51 percent (from 55 percent), merger of the State Bank of Saurashtra into SBI, and transfer of some powers regarding these banks from the Reserve Bank of India to the central government.
Of the bills introduced last session, 10 are pending. The Rubber Amendment Bill was taken up on the last day of the last session but was not discussed as the opposition objected to the absence of the ministers concerned. This bill delicenses planting and replanting of rubber, amends the powers of the Rubber Board, and enables the revocation and refund of excise on rubber manufactured for export between 1961 and 2003.
The Land Ports Authority Bill establishes an authority for managing the movement of people and goods across land borders; the bill is being scrutinised by the standing committee. The workmen's compensation amendment enhances the amount of compensation to be paid in case of death or permanent disability.
The UPA-I government was unable to conclude several of its legislative initiatives. The president's address as well as subsequent announcements by various ministers indicate the resolve to carry forward much of that agenda. It would be interesting to see to what extent the government succeeds in this regard during the winter session.
The finance ministry had already forwarded the merger plan to the RBI for its approval in 2004 which is to be IMPLEMENTED once the Parliament passes the Bill.
As both were leading banks, discussions was focused on what name the new 'merged identity' should have. The Bank of India was insisting on retaining its brand name on the ground that it was bigger in terms of assets, net worth and profits. The Union Bank of India, meanwhile, pointed out that it had higher market capitalization -- Rs 4,279 crore (Rs 42.79 billion) as against BoI's Rs 3,438 crore (Rs 34.38 billion).
Reportedly, Andhra Bank [ Get Quote ], Indian Bank [ Get Quote ] and Vijaya Bank [ Get Quote ] constitute the other lot of the nationalised banks that had informed the government about their intent to merge and form the leading bank in the southern states.
Together, they would have a spread of 3,400 branches across the country, majority of them in the southern region.
Canara Bank [ Get Quote ] and United Commercial Bank too were learnt to have sent proposals to the finance ministry for their merger, while Indian Overseas Bank [ Get Quote ] with Punjab National Bank [ Get Quote ] too were considering the possibility of a merger.
Way back on 10th september, 2004, then Finance minister P Chidambaram, had said that the government would encourage consolidation within public sector banks and would help bring about a favourable legislative framework that would facilitate mergers.
However, he said that the decision on the actual process of mergers would be left to the boards of the banks. "We are not going to push for consolidation. However, if banks want to consolidate we will not come in the way," Chidambaram said after a meeting with chief executives of public sector banks.
He said that legal amendments, including minor ones required in the Income-Tax Act, would be brought about to remove any hurdles in consolidation. "We need a small amendment in the I-T Act which would be carried out in February next," Chidambaram said.
Chidambaram also said that the government would encourage banks to raise further capital by way of public issues. "I have encouraged them to go to the capital market," he said.
On the interest rate movement, Chidambaram said that he expected stability in interest rates in the medium term. "In the medium term, interest rates are expected to be stable. That is my assessment," he said. The finance minister said that there was excess liquidity in the market and banks would be encouraged to lend.
Bank staff against merger of nationalised banks
Staff Reporter
TUTICORIN: Bank employees will resort to agitations in short notices, if the centre decides to implement merger of various nationalised banks with the objective of going `global', C.H. Venkatachalam, General Secretary, All India Bank Employees Association, has said.
Speaking to media persons here, he said the merger of banks would not strengthen the financial institutions' pursuit to enter the global trade and fight the multinational banks as envisaged by the Finance Minister, P. Chidambaram, but rather it would have a cascading effect on domestic development in the long run.
The Finance Ministry should understand that nationalised banks were formed not for venturing into global competitions, but aimed at catering to the needs of the public, especially rural masses, he said.
Mr. Venkatachalam said the Centre should not go ahead with its decision to sell 49 per cent of shares in the nationalised banks to private parties, as it could lead to the dilution of objectives of nationalisation of banks.
So far, only the nationalised banks were found to have been involved in priority sector lending and poverty alleviation, complying with RBI norms, and hence any move to disinvest the shares further would turn the `mass' banking concept into `class' banking concept, thus, benefiting only a certain class of the society, he said.
On Foreign Direct Investment in private banking sector, he said if 74 per cent of FDI was allowed in the private financial institutions, foreign players would have a final say in the daily activities of banks much against the interests of the nation.
Mr. Venkatachalam said bank employees across the country would observe a one-day strike on September 29 to protest "anti-labour and anti-public" sector undertakings' policies of the Centre.
http://www.hindu.com/2005/09/03/stories/2005090302020300.htm
Merger of banks opposed
By Our Staff Correspondent
MANGALORE, AUG. 22. The All India Bank Officers' Confederation (AIBOC) opposes any proposal for the merger and amalgamation of nationalised banks, a move first mooted by the Narasimhmam Committee, the Joint General Secretary of the confederation, T.R. Bhat, has said.
Addressing presspersons here on Sunday, Mr. Bhat said there were 19 nationalised banks and eight under the control of the State Bank of India. These banks were functioning efficiently and there was no need to merge them with others.
Noting that the Union Government was thinking on these lines, he said the Indian Banks' Association had formed a sub-committee for the purpose. The move to merge and amalgamate banks could be welcomed if it promoted efficiency as was expected by planners. But the previous experience on such moves had not yielded the desired results even in the West, he added.
http://www.hindu.com/2004/08/23/stories/2004082302650500.htm
Strategic buyouts in banks imminent
March 11, 2004
A few months ago, banking secretary N S Sisodia held a high-level meeting with a few public sector bank CEOs in Jaipur. At the meeting, the CEOs were asked to offer their views on consolidation in Indian banking.
But with routine topics -- priority sector lending and kisan credit cards -- dominating the discussions, no chairman really touched on the issue seriously. Besides, most of them felt that should the mergers & acquisitions (M&A) scene hot up, they could only be the acquirers.
What Sisodia could not do, the finance ministry notification -- giving foreign banks the green signal to increase their presence in India -- has successfully done. They are crawling out of the cocoon of complacency and taking a hard look at their balance sheets.
The ministry has permitted foreign banks to set up 100 per cent subsidiaries in India and allowed them to acquire up to 74 per cent equity in existing private banks.
Theoretically, only the private banks should feel threatened. But the public sector banks seem to be more concerned because they feel the seeds for a shakeout are being sown and the state-run banking industry will not be left out of the consolidation drive.
In fact, the chiefs of some of public sector banks that are relatively small and do not have a national presence are eagerly looking forward to the shakeout. Says one such CEO: "Everything is possible. I can be an acquirer or be acquired. One thing is for sure, the industry cannot escape consolidation."
Until recently, this bank chief used to be answerable only to the government, and whenever there was a crisis, he knew that he could get fresh capital to wipe off the red from his balance sheet. Now, lakhs of investors, analysts and foreign institutional investors, besides the government (which still holds a substantial chunk in his bank), scrutinise his performance while his eyes constantly follow the price movement of his bank's stock on the bourses.
In the recent past, Punjab National Bank took over private sector Nedungadi Bank. It is now in the process of acquiring IFCI, too. But both these cases were forced mergers, a rescue operation initiated by the government.
Bank of Baroda's acquisition of Benaras State Bank two years ago and a local area bank in south Gujarat now fall in the same category. But the next round of M&As in banking will have a different dimension. The guiding principal will be strategic importance.
State Bank of India is set to kick off the trend by buying out the government's stake in the Infrastructure Development Finance Corporation and converting it into an SBI subsidiary.
The next player could be the Industrial Development Bank of India, although nobody has a clear idea about the government's plan for IDBI.
Last year, the finance ministry bounced the idea of merging IDBI with SBI but did not get a positive response from the bank management. Now, it may revive the plan. Alternatively, one or more banks may be merged with IDBI.
Industrial Investment Bank of India, a puny, Kolkata-based financial institution, is also up for grabs. It can be merged with IDBI or even gobbled up by a local bank.
Once the repositioning of the three institutions -- IDBI, IDFC and IIBI -- is taken care of, the real M&A game will see some of the big players like SBI, PNB, Bank of Baroda, Bank of India and Canara Bank getting bigger, and relatively small public sector banks that are still regional players being merged with others.
The seven associate banks of SBI can also play a big role in this game. At the moment, there are 19 nationalised banks, besides the SBI and its seven associate banks, taking the number of state-run banks to 27. An internal finance ministry study, which has not been made public, is believed to have envisaged a smaller pack with a pan-Indian presence.
It has even asked the Reserve Bank of India to set up a committee to look closely at the consolidation issue. Overall, the number of scheduled commercial banks is bound to shrink as some of the private sector banks will be taken over by foreign players.
To ensure a smooth passage to the new zone, the government needs to amend the Banking Regulation Act and drop its stake below 51 per cent, which was proposed a few years ago but has not occurred owing to political compulsions. It also needs to take a relook at the norms that govern M&As in the banking sector.
Currently, the merger of two nationalised banks is governed by the Banks Companies (Acquisition & Transfer of Undertaking) Act, 1970, which calls for submitting the scheme of merger to both houses of Parliament. This procedure was followed when New Bank of India was merged with PNB -- the only instance of merger of two nationalised banks.
In the case of private banks, the M&A rules are laid down in the Banking Regulation Act, where the scheme of amalgamation is approved by the RBI. If a listed entity is involved in the deal, the scheme also needs court and shareholder approval. There are no rules for the merger of a bank with a non-banking entity.
Once the regulatory issues are in place, some Indian banks could also emulate the examples of Reliance Infocomm and Tata Motors, and look for overseas acquisitions.
In fact, over the past year, some big banks (big, that is, in the Indian context) have been aggressively focussing on their overseas operations. SBI now has 48 overseas offices spread over 28 countries covering all the time zones.
Last year, SBI closed its Jakarta and Sao Paulo representative offices as part of an exercise to restructure its representative office network, but upgraded its representative office in Moscow.
It is in the process of upgrading the Sydney and Shanghai representative offices to full-fledged branches and opening branches in Chittagong in Bangladesh and Cape Town and Port Elizabeth in South Africa.
SBI also has two wholly-owned subsidiaries (SBI Canada and SBI California), two subsidiaries (Indo-Nigerian Merchant Bank Ltd and SBI International Mauritius Ltd) and two joint ventures (Nepal SBI Bank Ltd and Bank of Bhutan).
Bank of Baroda is present in 16 countries with 61 offices, besides a subsidiary in Tanzania and a representative office in China. It has six subsidiaries in the UK, Hong Kong, Guyana, Botswana, Uganda and Kenya and an associate in Lusaka -- Indo-Zambia Bank Ltd.
Bank of India has 18 branches and three representative offices spread across four continents with presence in all major financial centres -- London, New York, Paris, Tokyo, Singapore and Hong Kong. Last year, it opened two new representative offices at Shenzhen (China) and Ho Chi Minh City (Vietnam). It has two subsidiaries and one associate outfit in Hong Kong, where it also manages a deposit-taking company.
At least some of these banks do not have any capital constraint for acquisitions. They are believed to be seriously exploring options abroad.
The obstacle is World Trade Organisation norms, which do not allow them to pick up any financial player in any country unless they have the most favoured nation (MFN) status. This forbids any acquisition bid in neighbouring countries like Sri Lanka.
However, they can set their eyes on some of the para-banking outfits in the United States or building societies in the United Kingdom. Some banks are actually looking at these possibilities to prop up their foreign operations, which at present do not account for more than 20 per cent of total business for any Indian bank.
The sooner that happens, the better. Let the local banks join hands with the manufacturing sector to take the India story abroad.
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Condemn Maoist violence, government tells civil society
A day after a passenger was killed and 40 others were injured in a train derailment after Maoist guerrillas blew up a track in Jharkhand, the government Friday asked the civil society to condemn such 'wanton acts of violence' meant to sabotage polls in the state.
Since the Jharkhand stater assembly elections were announced, the Communist Party of India (CPI)-Maoist has unleashed a reign of terror in the state by "killing innocent persons and labelling them as informers" and targeting public properties, the union home ministry said.
"They (the rebels) seem determined to carry out the threat to disrupt the polls," a statement from the ministry said.
The five-phase state assembly polls in Jharkhand begin Nov 25.
The home ministry "thinks that civil society organisations should also play their part and condemn the wanton acts of violence and ask the CPI-Maoist not to disrupt elections".
Three school buildings were damaged in Latehar district in separate acts of violence Nov 6 and 10, the ministry said, adding an under-construction Panchayat Bhavan was blasted in West Singhbhum Nov 15.
"The CPI-Maoist exploded a bomb on a railway track between Manoharpur and Pusaita railway stations (Thursday); two bogies were blown up and six derailed. One passenger was killed and 40 were injured," the statement said.
It said the rebels "have also issued a call to the people to boycott the elections".
"The government condemns these acts of violence. The Jharkhand government will continue to take pre-emptive action against the CPI-Maoist in order to maintain law and order and to facilitate free and fair elections," it added.
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Banking reforms: more threat than promise
Sucheta Dalal
Posted online: Jan 03, 2005 at 0000 hrs
When the search committee to select the next chairman for the capital market watchdog met last week, people were surprised that M Damodaran was one of the names on the shortlist of five. The question is; why would Mr Damodaran be considered for another job when he has just taken on a fairly gigantic one of turning around IDBI? The answer probably lies in the fact that a turnaround in the nationalised banking sector is rather more difficult than working magic at India's largest mutual fund.
Public sector bank chairmen are forced to operate within the framework of conflicting pulls and pressures from the finance ministry and RBI, and suffer their slow decisionmaking and interference—all this at salaries that are a fraction of those earned by senior executives in private banks.
Consider this. For the last five months, the government has frequently repeated its resolve to permit 74% foreign direct investment (FDI) in private banks. Yet, the RBI hasn't budged from its draft guidelines that say—no single entity (unless it is widely held) can hold more than 10% of the equity of a private bank. Yet, the RBI itself had shown no consistency in its past clearances of FDI in private banks.
Similarly, the government's avowed support for consolidation and merger of nationalised banks caused a flutter in the stockmarket, but has made little progress on the ground. So far, Bank of Baroda is wooing Dena Bank and Bank of India has announced an alliance with Union Bank of India. State Bank of India and IDBI have declared that they are seeking interesting partners.
These announcements caused the BSE bank index (Bankex) to shoot up 31% in six weeks from 2,660 on October 15 to 3,495 on December 9. It rose another 8% after a small lull to 3,722 on December 31. This is merely based on speculation and hope. There are far too many structural issues that need to be addressed before banks can truly turn into attractive investments.
| • Govt's resolve on FDI in banking conflicts with RBI's draft guidelines • Govt claims to support consolidation but is reluctant to give autonomy • Reform in 2005 must give aim at giving more space to nationalised banks |
The government's belated action to ensure the continuance of PJ Nayak as chairman and managing director was welcome. But there is still no clarity over whether government entities want to hang on to a majority stake in UTI Bank or are willing to let it go.
If they choose the latter, then an exit strategy must be decided before government holding is diluted further, in order to get the best price for UTI-I's shareholding. Already Hongkong Bank (HSBC) and Barclays are waiting in the wings with a 15 and 5% stake respectively. A slow consolidation of their holdings will kill the prospect of competitive bidding and lead to a lower realisation for UTI-I if it chooses to sell out.
There is similar confusion about PSU bank mergers. On the one hand, the government claims to support consolidation, and has allowed all banks to be publicly listed; but it refuses to allow even basic operational autonomy to nationalised banks. The finance ministry insists on banks seeking specific approval of simple decisions such as raising fresh capital, declaration of dividends and branch expansion, inspite of having a representative on the board who acts like a super-chairman.
Banking reform in 2005 must aim at giving up this obsessive control and unshackling nationalised banks, giving them procedural autonomy and allowing them the space to be more competitive through quick decisionmaking.
Mr Damodaran, who has worked in the finance ministry, the RBI and is now a bank chairman had a clear and succinct list of reforms that are necessary to for PSU banks to be in a position to compete equally with foreign banks. It is only fair that these reforms are in place before the government exposes the banking sector to foreign competition by permitting 74% FDI and removing the cap on voting right. Mr Damodaran's prescriptions are as follows:
o Structural issues cannot be add-ressed incrementally and the country will be better served by setting up a banking commission. The commission will discuss issues through wide consultations and adopt a more holistic approach to reform, instead of allowing banks to be buffeted between the finance ministry and RBI. This is long overdue.
o The government must make a distinction between regulation and control by formalising its intervention in the working of nationalised banks. As the majority shareholder, it does have the right to decide broad policy issues and direction, but this must be conveyed through its nominee on the board of directors rather than a series of directives issued to the chairman. The board comprises eminent people from different disciplines who bring in diverse skills and knowledge. A board discussion may refine an idea and find better ways of implementing the government's decision rather than a unilateral directive to the chairman.
o As a corollary, decisions such as declaration of dividend, raising fresh capital, or opening new branches should not require separate approval from the finance ministry, once it is okayed by the board.
o Identifying the right people for senior management functions, which provide appropriate leadership for specific banks. Instead of mechanically appointing bank chairmen and moving them from one bank to another, there has to be an effort to marry specific skills with the growth needs of each bank. For instance, one bank may need a chairman skilled in personnel management, while another may need a banking whiz to steer operations. It is important to choose correctly, rather than to adopt a lottery approach.
Finally, the government must play a bigger role in directing the consolidation and merger of banks, in order to iron out ego hassles and culture clashes. It must also pay some attention to compensation packages in order to help banks attract the right talent at all levels of operation. Until some of these issues are addressed urgently, the opening up of the banking sector sounds more like a threat than a promise for a better future.http://www.financialexpress.com/printer/news/126103/
Nationalised banks' employees go on strike
New Delhi: Employees of nationalised banks on Friday went on a day-long nationwide strike to oppose the proposed merger of associate banks with the State Bank of India disrupting normal function of the banking sector.
United Forum of Bank Unions (UFBU), apex union of bank employees, claimed that over 10 lakh employees and officers are observing strike to press their demands.
"Normal banking transactions have been disrupted across 50,000 branches all over the country," UFBU General Secretary V K Gupta told reporters.
UFBU, comprising nine all-India unions and organisation, has been opposing merger of SBI's associate banks with the parent financial lender and outsourcing of work.
• Quarterly results of corporates: Check out
Earlier during the week, the conciliation meeting held in the office of Chief Labour Commission between Indian Banks Association and the employee association failed to yield any positive result.
Besides, the union has been demanding second pension option, appointment on compassionate ground and early settlement on wage revision.
Nationalised Banks in India
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However, the major nationalisation of banks happened in 1969 by the then-Prime Minister Indira Gandhi. The major objective behind nationalisation was to spread banking infrastructure in rural areas and make cheap finance available to Indian farmers. The nationalised 14 major commercial banks were Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce (OBC), Punjab and Sind Bank, Punjab National Bank (PNB), Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India (UBI), and Vijaya Bank.
In the year 1980, the second phase of nationalisation of Indian banks took place, in which 7 more banks were nationalised with deposits over 200 crores. With this, the Government of India held a control over 91% of the banking industry in India. After the nationalisation of banks there was a huge jump in the deposits and advances with the banks. At present, the State Bank of India is the largest commercial bank of India and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches.
List of Public Sector Banks in India is as follows:
- Allahabad Bank
- Andhra Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Corporation Bank
- Dena Bank
- Indian Bank
- Indian Overseas Bank
- Oriental Bank of Commerce
- Punjab and Sind Bank
- Punjab National Bank
- State Bank of Bikaner & Jaipur
- State Bank of Hyderabad
- State Bank of India (SBI)
- State Bank of Indore
- State Bank of Mysore
- State Bank of Patiala
- State Bank of Saurashtra
- State Bank of Travancore
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
- IDBI Bank
Allahabad BankAndhra BankBank of BarodaBank of IndiaBank of MaharashtraCanara BankCentral Bank of IndiaCorporation BankDena BankIndian BankIndian Overseas BankOriental Bank of CommercePunjab & Sind BankPunjab National BankState Bank of Bikaner & JaipurState Bank of HyderabadState Bank of India (SBI)State Bank of IndoreState Bank of MysoreState Bank of PatialaState Bank of SaurashtraState Bank of TravancoreSyndicate BankUCO BankUnion Bank of IndiaUnited Bank of IndiaVijaya BankIDBI Bank
Banks in IndiaForeign Banks in IndiaNationalised BanksPrivate Banks in IndiaBombay Stock ExchangeEncyclopediaInsuranceInternational MarketsDoing Business in IndiaLoans in IndiaMutual Funds in IndiaTop Indian Mutual FundsNational Stock ExchangePostal Services in IndiaBudget 2008-2009Budget 07-08Union Budget 06-07Indian Economyhttp://www.iloveindia.com/finance/bank/nationalised-banks/index.html
Nationalization
From Wikipedia, the free encyclopedia
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Nationalization, also spelled nationalisation, is the act of taking an industry or assets into the public ownership of a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being state operated or owned by the state. The opposite of nationalization is usually privatization or de-nationalisation, but may also be municipalization. A renationalization occurs when state-owned assets are privatized and later nationalized again, often when a different political party or faction is in power. A renationalization process may also be called reverse privatization.
The motives for nationalization are political as well as economic. It is a central theme of certain brands of 'state socialist' policy that the means of production, distribution and exchange, should be owned by the state on behalf of the people to allow for rational allocation and operation, and rational planning or control of the economy. Many socialists believe that public ownership enables people to exercise full democratic control over the means whereby they earn their living and provides an effective means of redistributing wealth and income more equitably.
Nationalized industries, charged with operating in the public interest, may be under strong political and social pressures to give much more attention to externalities. They may be obliged to operate some loss making activities where social benefits are clearly greater than social costs - for example, rural, postal and transport services. As an instance, the United States Postal Service is guaranteed its nationalised status by the Constitution. The government has recognized these social obligations and, in some cases, provides subsidies for such non-commercial operations.
Since the nationalised industries are state owned, the government is responsible for meeting any debts incurred by these industries. The nationalized industries do not normally borrow from the domestic market other than for short-term borrowing. However, if profitable, the profit is often used as a means to finance other state services such as social programs and government research which can help lower the tax burden.
Nationalization may occur with or without compensation to the former owners. If it takes place without compensation it is a case of expropriation. Nationalization is distinguished from property redistribution in that the government retains control of nationalized property. Some nationalizations take place when a government seizes property acquired illegally. For example, the French government seized the car-makers Renault because its owners had collaborated with the Nazi occupiers of France.
[edit] Compensation
A key issue in nationalization is payment of compensation to the former owner. The most controversial nationalizations, known as expropriations, are those where no compensation, or an amount far below the likely market value of the nationalized assets, is paid. Many nationalizations through expropriation have come after revolutions.
The traditional Western stance on compensation was expressed by United States Secretary of State Cordell Hull, during the 1938 Mexican nationalization of the petroleum industry, that compensation should be "prompt, effective and adequate." According to this view, the nationalizing state is obligated under international law to pay the deprived party the full value of the property taken. The opposing position has been taken mainly by developing countries, claiming that the question of compensation should be left entirely up to the sovereign state, in line with the Calvo Doctrine. Communist states have held that no compensation is due, based on socialist notions of private properties.
In 1962, the United Nations General Assembly adopted Resolution 1803, "Permanent Sovereignty over National Resources", which states that in the event of nationalization, the owner "shall be paid appropriate compensation in accordance with international law." In doing so, the UN rejected both the traditional Calvo-doctrinist view and the Communist view. The term "appropriate compensation" represents a compromise between the traditional views, taking into account the need of developing countries to pursue reform even without the ability to pay full compensation, and the Western concern for protection of private property.
When nationalizing a large business, the cost of compensation is so great that many legal nationalizations have happened when firms of national importance run close to bankruptcy and can be acquired by the government for little or no money. A classic example is the UK nationalization of the British Leyland Motor Corporation. At other times, governments have considered it important to gain control of institutions of strategic economic importance, such as banks or railways, or of important industries struggling economically. The case of Rolls-Royce plc, nationalized in 1971, is an interesting blend of these two arguments. This policy was sometimes known as ensuring government control of the "commanding heights" of the economy, to enable it to manage the economy better in terms of long-term development and medium-term stability. The extent of this policy declined in the 1980s and 1990s as governments increasingly privatized industries that had been nationalized, replacing their strategic economic influence with use of the tax system and of interest rates.
Nonetheless, national and local governments have seen the advantage of keeping key strategic assets in institutions that are not strongly profit-driven and can raise funds outside the public-sector constraints, but still retain some public accountability. Examples from the last five years in the United Kingdom include the vesting of the British railway infrastructure firm Railtrack in the not-for-profit company Network Rail, and the divestment of much council housing stock to "arms-length management companies", often with mutual status.
[edit] Notable nationalizations by country
[edit] Argentina
- 1918 University Revolution and university nationalization
[edit] Australia
- 1947 Nationalization of Qantas, the leading airline of Australia.
- 1948 The Australian government attempted to nationalize the banks, but the act was declared unconstitutional by the High Court of Australia in the case Bank of New South Wales v Commonwealth.[1]
[edit] Bolivia
- 2006 On May 1, 2006, newly elected Bolivian president Evo Morales announces plans to nationalize the country's natural gas industry; foreign-based companies are given six months to renegotiate their existing contracts.
[edit] Canada
- 1918 Canadian National Railways, created from several systems nationwide following their bankruptcy during and after World War I, and since privatized. (Air Canada, Canadian Broadcasting Corporation, Marine Atlantic and VIA Rail were all subsidiaries of the company at one time)
- 1944 Hydro-Québec, first created through partial nationalization of electricity concerns around Montreal in Quebec by the Liberal government of Adélard Godbout. During the Quiet Revolution of the early 1960s, the remaining 11 privately owned electricity companies in Quebec were nationalized by the Liberal government of Jean Lesage.
- 1975 Potash Corporation of Saskatchewan, Province of Saskatchewan nationalized part of the potash industry. Many potash producers agreed to sell to the government instead of being nationalized.
[edit] Channel Islands
- 2003 Aurigny Airlines was bought by the States of Guernsey.
[edit] Chile
- 1972 Chilean nationalization of copper mining industry by the government of Salvador Allende.
[edit] Cuba
The Castro government gradually expropriated all foreign-owned private companies after the Cuban Revolution of 1959. Most of these companies were owned by U.S. corporations and individuals. Bonds at 4.5% interest over twenty years were offered to U.S. companies, but the offer was rejected by U.S. ambassador Philip Bonsal, who requested the compensation up front.[2] Only a minor amount, $1.3 million, was paid to U.S. interests before deteriorating relations ended all cooperation between the two governments.[2] The United States established a registry of claims against the Cuban government, ultimately developing files on 5,911 specific companies. The Cuban government has refused to discuss the effective and adequate compensation of U.S. claims. The United States government continues to insist on compensation for U.S. companies. In 1966-68, the Castro government nationalized all remaining privately owned business entities in Cuba, down to the level of street vendors.
[edit] Czechoslovakia
- 1948-1990 All manufacturing enterprises.
[edit] Egypt
- 1956 On July 26, 1956 Egyptian President Gamal Abdel Nasser nationalized the Suez Canal Company, provoking the United Kingdom, France and Israel to launch a combined attack on Egypt that was stopped by the U.S. and the Soviet Union.
[edit] France
Nationalization in France dates back to the 'regies' or state monopolies first organized under the Ancien Régime, for example, the monopoly on tobacco sales. Communications companies France Telecom and La Poste are relics of the state postal and telecommunications monopolies.
There was a major expansion of the nationalised sector following World War II.[3] A second wave followed in 1982.
- 1938 Societe Nationale des Chemins de Fer Francais (SNCF) (originally a 51% State holding, increased to 100% in 1982)[3]
- 1945 Several nationalizations in France, including most important banks and Renault.[3] The firm was seized for Louis Renault's alleged collaboration with Nazi Germany, although this condemnation was without judgement and after his death, making this case remarkable and rare. A later judgement (1949) admitted that Renault's plant never collaborated. Renault was successful but unprofitable whilst nationalised and remains successful today, after having been privatized in 1996.
- 1946 Charbonnages de France, Electricite de France (EdF), Gaz de France (GdF)
- 1982 A large part of the banking sector and industries of strategic importance to the state were nationalized under the new president François Mitterrand and the PS-led government. Many of those companies were privatized again after 1986.
The Paris regional transport operator, Regie Autonome des Transports Parisiens (RATP), can also be counted as a nationalised industry.
[edit] Germany
The German railways were nationalised after World War I. Partial privatisation of Deutsche Bahn is currently underway, as of 2008.
Most enterprises in East Germany were nationalised following World War II. After reunification, an agency, Treuhand, was established to return them to private ownership. However, due to structural and economic problems inherent in the previous regime, many of these had to be liquidated.
- 2008 Renationalization of the "Bundesdruckerei" (Federal Print Office), which had been privatized in 2001.
[edit] Greece
- 1974 Nationalization of Olympic Airlines, main airline of Greece. The company was bought out by its founder, Aristotle Onassis.
[edit] Iceland
- 2008 Renationalization of Iceland's largest commercial banks: Kaupþing, Landsbanki, Glitnir and Icebank.
- 2009 Nationalization of Straumur Investment Bank and the savings bank SPRON.
[edit] India
The nationalised banks were credited by some, including Home minister P. Chidambaram, to have helped the Indian economy withstand the global financial crisis of 2007-2009.[4][5]
- 1949 (1 January) Reserve Bank of India nationalised (Ref.- Reserve Bank of India chronology of events). The Reserve Bank of India was state-owned at the time of Indian independence.
- 1953 Air India under the Air Corporations Act 1953.
- 1955 Imperial Bank of India and its subsidiaries (State Bank of India and its subsidiaries)
- 1969 Nationalization of 14 Indian banks.
- 1973 Coal industry and Oil companies
- 1980 Another six banks nationalized
[edit] Iran
- 1953 Iranian Prime Minister Mohammed Mossadegh nationalized the Anglo-Persian Oil Company in Iran.
- Since the 1979 Iranian Revolution, 80% companies based in Iran have been nationalized, and so far only 15% of the 80% of all companies have been privatized, the rest are still nationalized.
[edit] Ireland
Railways in the Republic of Ireland were nationalised in the 1940s as Coras Iompair Eireann.
- 2007 On August 3, 2007, the Irish government were offered a stake in Eircom's copper network infrastructure[6]. Ireland's telephone networks were privatised in 1999.
- 2009 On January 15, 2009, the Irish Government announced plans to nationalise Anglo Irish Bank in order to secure the bank's viability.
[edit] Israel
- 1983 Nationalization of the major Israeli banks: Bank Hapoalim, Bank Leumi, Discount Bank, Mezrachi bank due to the Bank stock crisis that struck Israel in 1983.
[edit] Italy
- 1905 The Italian railways were nationalised as Ferrovie dello Stato.
The regime of Benito Mussolini extended nationalisation, creating the Istituto per la Ricostruzione Industriale (IRI) as a State holding company for struggling firms, including the car maker Alfa Romeo. A parallel body, Ente Nazionale Idrocarburi (Eni) was set up to manage State oil and gas interests.
[edit] Japan
- 1906 Railway Nationalization Act of Japan nationalized 17 railway companies to form the nationwide railway network that was later called Japanese National Railways.
[edit] Malta
- 1974 Bank of Valletta is founded following nationalisation of the Central Bank of Malta
[edit] Mexico
- 1938 The Expropriation of the Petroleum Industry of Mexico: President Lázaro Cárdenas issued a decree that the petroleum companies were in rebellion against the government of Mexico and under the powers granted him under the Expropriation Act passed by the Congress of Mexico in late 1936 expropriated them. March 19, 1938 union personnel took conrol of the properties.[7]
- 1982 The nationalization of the Mexican banking system made by President José López Portillo, later in the Carlos Salinas de Gortari presidency (1988-1994) a large number of banks were privatized.
[edit] The Netherlands
- 2008 The Dutch State nationalizes the Dutch activities of Belgian-Dutch banking and insurance company Fortis, which had come in solvability problems due to the international financial crisis.
[edit] New Zealand
- 2001 Central government purchased the Auckland railway network from TranzRail.
- 2003 The Labour Government of New Zealand took an 80% stake in near-bankrupt national air carrier Air New Zealand in exchange for a large financial infusion.
- 2004 The rest of the country's rail network is purchased from Toll New Zealand, formerly known as TranzRail. A new state owned enterprise, ONTRACK, was established to maintain the rail infrastructure.
- 2008 The rolling stock of Toll New Zealand was purchased by central government, bringing the rail system under total state ownership and renamed as KiwiRail.
[edit] Pakistan
- 1972 On January 2, 1972, Zulfiqar Ali Bhutto, after the fall of East Pakistan, announced the nationalisation of all major industries, including iron and steel, heavy engineering, heavy electricals, petrochemicals, cement and public utilities.[8]
[edit] Philippines
During the administration of Ferdinand Marcos, important companies such as PLDT, Philippine Airlines, Meralco and the Manila Hotel were nationalized. Other companies were sometimes absorbed into these government-owned corporations, as well as other companies, such as Napocor and the Philippine National Railways, which in their own right are monopolies (exceptions are Meralco and the Manila Hotel). Today, these companies have been reprivatized and some, such as PLDT and Philippine Airlines, have been de-monopolized. Others, like government-formed and owned Napocor, are in the process of privatization.
[edit] Poland
- 1946 Following World War II the People's Republic of Poland nationalized all enterprises with over 50 employees.
[edit] Portugal
After the Carnation Revolution, the Junta de Salvação Nacional (temporary government) nationalized all the banking, insurance, petrol and industrial companies. Along with the telecommunications companies, which were state-owned even before the Revolution, all the nationalized companies were reprivatized.
2008: BPN - Banco Português de Negócios bank nationalised to prevent its collapse.
[edit] Romania
- 1948 With the Decree 119 June 1948 the new Romanian communist regime nationalised all the existing private companies and their assets in Romania leading to the transformation of the Romanian economy from a market economy to a planned economy.
[edit] Russia
 | This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (September 2008) |
- 1998 The Yeltsin government began seizing Gazprom assets, claiming that the company owed back taxes. Privatization of Gazprom from the mid 1990's had been reduced to 38.37% with the intention of achieving full privatization. However, the stake of the Russian Government in Gazprom has since been increased to 50% with Vladimir Putin's plan to increase the stake to a controlling position. Gazprom is also buying up both Russian and other international Utility companies.
[edit] South Korea
- 1946 USAMGIK nationalized all South Korean private railroad companies and made Department of Transportation. This now becomes Korail.
[edit] Soviet Union
- 1918 All manufacturing enterprises and many retailing enterprises.
[edit] Spain
- 1941 Spain's railways were nationalised, as RENFE, in the aftermath of the Spanish Civil War.
- 1983 Nationalization without compensation of the Spanish Rumasa. Separate business were later privatized.
[edit] Sri Lanka
- 1958 The Government nationalised Bus transport (creating the Ceylon Transport Board). The Colombo Port was also nationalised the same year.
- 1961 The local subsidiaries of the foreign owned petroleum companies, Caltex, Esso and Shell had formed a cartel, in order to break which they were nationalised. The Insurance companies and the Bank of Ceylon were also nationalised in the same year.
- 1971 Graphite mines nationalised.
- 1972 Locally owned Tea and Rubber plantations were nationalised under the Land Reform law.
- 1975 Sterling plantation companies (owned by British plantation companies) were nationalised.
- 2009 Seylan Bank nationalised to prevent its collapse.
[edit] Sweden
- 1939-1948 Nationalisation of most of the private Railway companies.
- 1957 The mining company LKAB is nationalized. The state had owned 50% of the corporation's shares, with options to buy the remainder, since 1907.[9]
- 1992 A large part of Sweden's banking sector is nationalized.[10]
[edit] United Kingdom
The following companies/industries were the subject of nationalisation in the given year:
- 1868 Nationalisation of inland telegraphs under the GPO[11]
- 1875 Suez Canal Company - The Egyptian share in the company was bought out by the British Government.
- 1912 Nationalisation of inland telephone services under the GPO, apart from Portsmouth, Hull, Guernsey, and Jersey. The Portsmouth telephone service was nationalised the following year.
- 1916 Liquor Trade - The nationalisation of pubs and breweries in Carlisle, Gretna, Cromarty and Enfield under the State Management Scheme; mainly an attempt to restricting alcohol consumption by armaments factory workers. The scheme was privatised by asset transfer in 1973.[12]
- 1926 Central Electricity Board introduced under The Electricity (Supply) Act 1926 established the National Grid and set up a national standard for electricity supply in the UK.
- 1927 British Broadcasting Company (a privately owned company) became British Broadcasting Corporation (BBC), a public corporation operating under a Royal Charter.
- 1933 London Transport
- 1938 Nationalisation of UK Coal Royalties under the Coal Commission[13]
- 1939 British Overseas Airways Corporation (BOAC) later to become British Airways (BA) - combining the private British Airways Ltd. and the state owned Imperial Airways
- 1939 At the outset of World War II, much of British industry was subjected to State regulation or control, although not nationalised as such.
- 1943 North of Scotland Hydro-Electricity Board
- 1946 Coal industry under the National Coal Board (later British Coal); Bank of England - the latter had had private shareholders who were bought out by the state.
- 1947 Central Electricity Generating Board and area electricity boards, Cable & Wireless Ltd - the latter had had private shareholders who were bought out by the state.
- 1948 National rail, water transport, some road haulage, road passenger transport and Thomas Cook & Son under the British Transport Commission. Separate elements operated as British Railways, British Road Services, and British Waterways, also national health services created (for England and Wales, for Scotland and for Northern Ireland) taking over a mixture of previously Local Authority, private commercial and charitable organisations.
- 1949 Local authority gas supply undertakings in England, Scotland and Wales
- 1951 Iron and Steel Industry (denationalised by the following Conservative Government)[14]
- 1967 British Steel
- 1969 National Bus Company, combining former interests of the British Transport Commission with others acquired from the British Electric Traction group.
- 1969 Post Office Corporation created
- 1971 Rolls-Royce (1971) Ltd - The strategically-important aero-engine part of the recently-bankrupt Rolls Royce Limited.
- 1973 Local authority water supply undertakings in England and Wales
- 1973 British Gas Corporation created, replacing regional gas boards.
- 1974 British Petroleum - the combination of a 50% stake bought by Winston Churchill as First Lord of the Admiralty after World War I with around a 25% stake acquired by the Bank of England from Burmah Oil made the UK Government directly or indirectly BP's majority shareholder, though commercial independence was maintained. The shares were all sold during the 1980s.
- 1975 National Enterprise Board - a State holding company for full or partial ownership of industrial undertakings
- 1976 British Leyland Motor Corporation - became British Leyland upon nationalization. Privatized in 1986 to British Aerospace.
- 1977 British Aerospace - combining the major aircraft companies British Aircraft Corporation, Hawker Siddeley and others. British Shipbuilders - combining the major shipbuilding companies including Cammell Laird, Govan Shipbuilders, Swan Hunter, Yarrow Shipbuilders
- 1981 British Telecom created, taking control of telecommunications services from the Post Office
- 1984 Johnson Matthey - purchased for a nominal sum of £1 by the Thatcher government [15]
- 1997 Docklands Light Railway - John Prescott announced to the 1997 Labour Party Conference that he had nationalised this.[15]
- 2001 Railtrack - although not nationalised as such, the takeover by Network Rail of the railway infrastructure in 2002 following the liquidation of Railtrack, whilst not a state owned company, has no shareholders (company limited by guarantee) and is underwritten by the State. In addition prior to this the government began to make use of a residual shareholding of 0.2% (including voting rights) in Railtrack Group Plc leftover from the original sale.[16]
- 2008 Northern Rock - announced by Alistair Darling, Chancellor of the Exchequer on 17 February 2008 as 'a temporary measure'. The bank will be run at 'arms length' as a commercial business and sold to a private buyer in the future.[17]
- 2008 Bradford & Bingley (mortgage book only) - announced by Alistair Darling, Chancellor of the Exchequer on 29 September 2008. The loans part of the company was nationalised, while the commercial bank was sold off.[18]
- 2008 In October, the Royal Bank of Scotland, and the newly merged HBOS-Lloyds TSB was partly nationalised. The Government took over approximately 60% of RBS and 40% of HBOS-Lloyds TSB. This is part of the £500bn bank rescue package.
[edit] British assets nationalised by other countries
- 1940s Argentine railways
- 1953 British Petroleum's Iranian assets by their government (actually a nationalisation of part of a part-nationalised company)
- 1956 The Egyptian Government nationalised the Suez Canal, owned by the Suez Canal Company which was part owned by the British State.
- 1962 The Sri Lanka Government nationalised the assets in the country of the partly British-owned Royal Dutch Shell company.
- 1975 The Sri Lanka Government nationalised the assets in the country of the British-owned plantation companies.
[edit] United States
- 1917: All U.S. railroads were nationalized as the Railroad Administration during World War I as a wartime measure, but were returned to their private owners almost immediately after the war.
- 1939: Organization of the Tennessee Valley Authority entailed the nationalization of the facilities of the former Tennessee Electric Power Company.
- 1971: The National Railroad Passenger Corporation (Amtrak) is a government-owned corporation created in 1971 for the express purpose of relieving American railroads of their legal obligation to provide inter-city passenger rail service. The (primarily) freight railroads had petitioned to abandon passenger service repeatedly in the decades leading up to Amtrak's formation.
- 1976: The Consolidated Rail Corporation (Conrail), another government corporation, was created to take over the operations of six bankrupt rail lines operating primarily in the Northeast; Conrail was privatized in 1987. Initial plans for Conrail would have made it a truly nationalized system like that during World War I, but an alternate proposal by the Association of American Railroads won out.
- 1980s: Resolution Trust Corporation seized control of hundreds of failed S&L.
- 2001: In response to the September 11 attacks, the then-private airport security industry was nationalized and put under the authority of the Transportation Security Administration.
- 2008: Some economists consider the U.S. government's takeover of the Federal Home Loan Mortgage Corporation and Federal National Mortgage Association to have been nationalization.[19][20] The conservatorship model used with Fannie Mae and Freddie Mac is looser and more temporary than nationalization.[21]
- 2009: Some economists consider the U.S. government's actions with regards to Citigroup to have been a partial nationalization.[22] Proposal made that banks like Citigroup be brought under a conservatorship model similar to Fannie Mae and Freddie Mac, that some of their "good assets" be dropped into newly created "good bank" subsidiaries (presumably under new management), and the remaining "bad assets" be left to be managed under the supervision of a conservatorship structure.[21] The U.S. government's actions with regard to General Motors in replacing the CEO with a government approved CEO is likewise being considered as nationalization. [23][24] On June 1, 2009, General Motors filed for bankruptcy, with the United States investing up to $50 billion and taking 60% ownership in the company. President Obama stated that the nationalization was temporary, saying, "We are acting as reluctant shareholders because that is the only way to help GM succeed"[25]
[edit] Venezuela
- 2007 On May 1, 2007, Venezuela stripped the world's biggest oil companies of operational control over massive Orinoco Belt crude projects, a controversial component in President Hugo Chavez's nationalization drive.
- 2008 On April 3, 2008, President Hugo Chavez ordered the nationalization of the cement industry.[26]
- 2008 On April 9, 2008, Hugo Chavez ordered the nationalization of Venezuelan steel mill Sidor, in which Luxembourg-based Ternium currently holds a 60% stake. Sidor employees and the Government hold a 20% stake respectively.[27]
- 2008 On August 19, 2008, Hugo Chavez ordered the take-over of a cement plant owned and operated by Cemex, an international cement producer. While shares of Cemex fell on the New York Stock Exchange, the cement plant comprises only about 5% of the company's business, and is not expected to adversely affect the company's ability to produce in other markets. Chavez has been looking to nationalize the concrete and steel industries of his country to meet home building and infrastructure goals.[28]
- 2009 On February 28, 2009, Hugo Chavez ordered the army to take over all rice processing and packaging plants. [29]
[edit] Zimbabwe
- Zimbabwe has nationalized its food distribution infrastructure.
[edit] Other countries
- Nationalization of the oil industry in numerous countries, including Libya, Kuwait, Mexico, Nigeria, Saudi Arabia, and Venezuela.
[edit] See also
 | Look up nationalization in Wiktionary, the free dictionary. |
- Compulsory purchase
- Eminent domain
- Expropriation
- Planned economy
- Privatization - the reverse process
- Public ownership
- Railway nationalization
- Reprivatization
- Sequestration
[edit] References
- ^ The Constitutional Centre of Western Australia | The Role of The High Court
- ^ a b Thomas, Hugh (March 1971). Cuba; the Pursuit of Freedom. New York: Harper & Row. pp. 224, p252. ISBN 0060142596.
- ^ a b c Myers (1949)
- ^ PSU banks' policies saved India from financial blushes: Chidambaram
- ^ The importance of public banking
- ^ Eircom and State in broadband swap?
- ^ The Expropriation of the Petroleum Industry of Mexico in 1938
- ^ US Country Studies. "Zulfikar Ali Bhutto" (PHP). http://countrystudies.us/pakistan/20.htm. Retrieved 2006-11-07.
- ^ A Historic Journey Luossavaara-Kiirunavaara Aktiebolag, April 2006
- ^ Stopping a Financial Crisis, the Swedish Way
- ^ http://news.bbc.co.uk/1/hi/business/7250252.stm
- ^ http://www.historytoday.com/dt_main_allatonce.asp?gid=9859&g9859=x&g9857=x&g30026=x&g20991=x&g21010=x&g19965=x&g19963=x&amid=9859
- ^ http://www.data-archive.ac.uk/findingData/snDescription.asp?sn=1825
- ^ http://www.uksteel.org.uk/history.htm
- ^ a b "What was the last nationalisation?", BBC News, 18 February 2008
- ^ http://www.publications.parliament.uk/pa/cm200102/cmhansrd/vo020212/text/20212w16.htm
- ^ http://news.bbc.co.uk/1/hi/business/7249575.stm
- ^ http://www.reuters.com/article/economicNews/idUSBINGLEY20080929
- ^ US rescue of Fannie, Freddie poses taxpayer risks
- ^ Diamond and Kashyap on the Recent Financial Upheavals
- ^ a b Baxter, Lawrence; Brown, Bill; Cox, Jim (February 27 2009), "Finally, A Bridge to Somewhere", Huffington Post, http://www.huffingtonpost.com/lawrence-baxter-bill-brown-and-james-cox/finally-a-bridge-to-somew_b_170688.html
- ^ Nature of Citi stake debatable
- ^ http://www.usnews.com/blogs/mary-kate-cary/2009/03/30/am-i-the-last-capitalist-obama-falters-on-rick-wagoner-gm-and-the-auto-industry-.html
- ^ "If, in fact, Wagoner resigned because somebody in government said, 'You have to resign,' then I think we have nationalized the auto industry, at least GM, and I think that's bad to have the government have a socialized car industry," -Sen. Chuck Grassley (R-Iowa)
- ^ http://www.washingtonpost.com/wp-dyn/content/article/2009/06/01/AR2009060101480.html
- ^ http://english.aljazeera.net/NR/exeres/78BD5E2C-6A4B-4787-BAF7-7F764A8BF7A0.htm
- ^ http://www.reuters.com/article/worldNews/idUSN0942912020080409?feedType=RSS&feedName=worldNews
- ^ http://www.forbes.com/markets/2008/08/19/cemex-venezuela-chavez-markets-equity-cx_ra_0819markets41.html
- ^ http://news.bbc.co.uk/2/hi/americas/7917176.stm
[edit] Bibliography
[edit] On banks nationalization
- Dougherty, Carter, Stopping a Financial Crisis, the Swedish Way, The New York Times," September 23, 2008.
- Hilferding, Rudolf (1981) Finance Capital: A Study of the Latest Phase of Capitalist Development (London: Routledge & Kegan Paul), p. 234. ISBN 0710006187, 9780710006189
- La Porta, Rafael, Florencio Lopez-de-Silanes, Andrei Shleifer, Government Ownership of Banks, The Journal of Finance, vol. 57, No. 1 (Feb. 2002), 265-301.
- La Botz, Dan (2008) The Financial Crisis: Will the U.S. Nationalize the Banks? Monthly Review 28 September 2008
- Lohr, Steve, From Japan's Slump in 1990s, Lessons for U.S., The New York Times, February 9, 2008.
- Maxfield, Sylvia, The International Political Economy of Bank Nationalization: Mexico in Comparative Perspective, Latin American Research Review, Vol. 27, No. 1 (1992), pp. 75–103.
- Myers, Margaret G., The Nationalization of Banks in France, Political Science Quarterly, Vol. 64, No. 2 (June, 1949), pp. 189–210.
[edit] External links
- The importance of public banking - article on Indian public sector banks
- Time for Permanent Nationalization by economist Fred Moseley in Dollars & Sense magazine, January/February 2009
- The Corporate Governance of Banks - a concise discussion of concepts and evidence
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| Related topics | Autogestion · Class struggle · Democracy · Dictatorship of the proletariat · Egalitarianism · Equality of outcome · Impossibilism · Internationalism · Left-wing politics · Marxism · Mixed economy · Nationalization · Proletarian revolution · Reformism · Socialism in one country · Socialist market economy · Trade union |
Nationalisation of Banks in India
The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalised 14 banks then. These banks were mostly owned by businessmen and even managed by them.- Central Bank of India
- Bank of Maharashtra
- Dena Bank
- Punjab National Bank
- Syndicate Bank
- Canara Bank
- Indian Bank
- Indian Overseas Bank
- Bank of Baroda
- Union Bank
- Allahabad Bank
- United Bank of India
- UCO Bank
- Bank of India
Befor the steps of nationalisation of Indian banks, only State Bank of India (SBI) was nationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of Seven State Banks of India (formed subsidiary) took place on 19th July, 1960.
The State Bank of India is India's largest commercial bank and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches and it offers -- either directly or through subsidiaries -- a wide range of banking services.
The second phase of nationalisation of Indian banks took place in the year 1980. Seven more banks were nationalised with deposits over 200 crores. Till this year, approximately 80% of the banking segment in India were under Government ownership.
After the nationalisation of banks in India, the branches of the public sector banks rose to approximately 800% in deposits and advances took a huge jump by 11,000%.
- 1955 : Nationalisation of State Bank of India.
- 1959 : Nationalisation of SBI subsidiaries.
- 1969 : Nationalisation of 14 major banks.
- 1980 : Nationalisation of seven banks with deposits over 200 crores.
Banking in India
From Wikipedia, the free encyclopedia
Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively
Contents[hide] |
[edit] Early history
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India.
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla.
When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India.
Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities.
The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments."
The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.
The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".
[edit] From World War I to Independence
The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:
| Years | Number of banks that failed | Authorised capital (Rs. Lakhs) | Paid-up Capital (Rs. Lakhs) |
|---|---|---|---|
| 1913 | 12 | 274 | 35 |
| 1914 | 42 | 710 | 109 |
| 1915 | 11 | 56 | 5 |
| 1916 | 13 | 231 | 4 |
| 1917 | 9 | 76 | 25 |
| 1918 | 7 | 209 | 1 |
[edit] Post-independence
The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:
- In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.
- In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."
- The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.
However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalisation of major banks in India on 19 July, 1969.
[edit] Nationalisation
By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the possibility to nationalise the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August, 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.
The nationalised banks were credited by some, including Home minister P. Chidambaram, to have helped the Indian economy withstand the global financial crisis of 2007-2009.[1][2]
[edit] Liberalisation
In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.All this led to the retail boom in India. People not just demanded more from their banks but also received more.
Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true.
With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.
In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide. [3] [4][5]
[edit] Further reading
- The Evolution of the State Bank of India (The Era of the Imperial Bank of India, 1921-1955) (Volume III)
- Banking Frontiers - a monthly magazine, published by Mumbai based Glocal Infomart. Editor - Manoj Agrawal
[edit] Notes
- ^ PSU banks' policies saved India from financial blushes: Chidambaram
- ^ The importance of public banking
- ^ http://www.parinda.com/news/crime/20070918/2025/icici-personal-loan-customer-commits-suicide-after-alleged-harassment-recov
- ^ http://www.hindu.com/2008/06/30/stories/2008063057470300.htm
- ^ http://www.indiatime.com/2007/11/07/icicis-third-eye/
[edit] See also
[edit] External links
- Private banks score over public sector banks
- The importance of public banking
- Brief profiles, 2008-09 performance, and 2009-10 outlook on 10 leading Indian banks
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Department of disinvestment to have a greater say in process
 |
Posted: Saturday, Nov 07, 2009 at 0048 hrs IST
Updated: Saturday, Nov 07, 2009 at 0048 hrs IST
Department of disinvestment to have a greater say in process
| |
Posted: Saturday, Nov 07, 2009 at 0048 hrs IST
Updated: Saturday, Nov 07, 2009 at 0048 hrs IST
New Delhi: To translate the Manmohan Singh administration's disinvestment policy announced on Thursday into action, the Centre will set up a core group of secretaries to chalk out the procedures to be followed for stake sales in profitable PSUs. More importantly, the department of disinvestment, which has been in a slumber of sorts since the end of the NDA government, will enjoy greater powers vis-à-vis the administrative ministries of PSUs.
As many as 32 central ministries control 220-odd functional PSUs in different sectors. The highest number of PSUs—51—falls under the ministry of heavy industries. Prior to the new policy, the disinvestment department came into the picture only if administrative ministries approached it for stake sales in their PSUs. Now, the disinvestment department will call the shots.
"There will be a core group of secretaries on disinvestment that will take policy decisions on the procedures to be followed. The disinvestment department will identify PSUs that qualify for listing under the policy and work with administrative ministries to prepare them to hit the markets," a senior government official told FE.
The group of secretaries will include secretary (coordination & public grievances) in the Cabinet secretariat, Ajit Kumar Seth, disinvestment secretary Sunil Mitra and finance secretary Ashok Chawla, among others. Taking an unlisted PSU to the market takes at least six months of paperwork and clearances, which includes appointing merchant bankers, setting valuations and drawing up a draft red herring prospectus.
"Once the disinvestment department and the administrative ministry complete their formalities, the former will submit stake sale proposals to the Cabinet Committee on Economic Affairs for approval. Transaction advisors will be appointed thereafter and the timing of the issues will be approved by the finance ministry," the official said.
Ironically, the new disinvestment policy does not mark a dramatic departure from its first innings diktat drafted with the Left parties--it simply puts thresholds and criteria where there were none before. UPA-I's National Common Minimum Programme promised that "public sector companies and nationalised banks will be encouraged to enter the capital market to raise resources and offer new investment avenues to retail investors".
But since the decision to list was left to administrative ministries, only a handful of PSUs such as Power Finance Corporation, Power Grid Corporation of India and Rural Electrification Corporation were listed. IPOs of NHPC and OIL were cleared by UPA-I, but only listed in August-September. NTPC was listed...
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