Bankers set to deliver rate cuts; SBI takes lead

September 29, 2015

Mumbai, Sep 29: Within couple of hours of rate cut by the Reserve Bank, country's largest lender SBI slashed its lending rate by 0.40 per cent, while the largest private sector lender ICICI Bank hinted at cutting its base rate by at least 0.25 per cent.SBI

"Clearly, interest rates will come down, base rates will come down. A large part of the cut will get transmitted. When I say a large part of the thing (repo rate) will get transmitted, it should mean more than half," ICICI Bank's managing director and chief executive Chanda Kochhar told reporters at the RBI headquarter

SBI chairman Arundhati Bhattacharya was not present at the customary post-policy press conference organised by banking industry lobby grouping IBA, but her bank announced a 0.40 per cent cut in its lending rates to 9.30 per cent from October 5 onward, right afterwards.

She said on a TV channel that she expects a hit of up to 0.11 per cent due to the rate cut and it may also cut its deposit rate by 0.25 per cent.

Drawing attention to statements by RBI Governor Raghuram Rajan on reviewing small saving rates, which was followed by one from Finance Minister Arun Jaitley declaring a cut, Dena Bank chief and IBA's newly elected chairman Ashwani Kumar said it is clear that factors beyond cost of deposits govern the bank's rate strategies.

He added that the interest rates from the small saving schemes like PPF, NSC etc is one of the major impediments for the rates being higher.

Uday Kotak of Kotak Mahindra Bank said he would welcome if the small saving rates are cut by a similar measure of 0.50 per cent to around 8.25 per cent level.

"Saver has a psychological issue if it goes below 8 per cent. It starts getting tougher to get money unless he is made to understand that inflation rates are dropping significantly," he told a news channel.

He added that it's a matter of days before his bank, the fourth largest from the private sector, announces a rate cut.

"Of the 75 per cent cut that has happened (before today's cut), about half has been transmitted, this half will get transmitted soon," private sector lender Axis Bank's head Shikha Sharma said on the channel.

Kochhar said the reduction in base rates always happens with a lag and added that her bank already uses the marginal cost of funding formula for deciding its rates.

She also welcomed other initiatives announced in the policy like increasing the FPI limits and other decisions in the run-up like having an empowered committee among joint lenders forum.

Kochhar pitched to ensure this does not make the JLF or joint lenders forums more bureaucratic in their functioning and decisions get taken fast.

HDFC Bank's Aditya Puri, who had the most aggressive rate offering before SBI's cut, said the positive side of the policy is that rates will come down more, and also welcomed other facets of the policy which make recovery easier and the clarity on liquidity.

"Rajan has frontloaded the rate cut and committed to continue with an accommodative monetary policy. This will certainly work as a booster dose for economic growth," founder and managing director of Bandhan Bank, C S Ghosh said.

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News Network
February 14,2020

New Delhi, Feb 14: Senior Congress leader P Chidambaram on Thursday said there must be a "huge mass movement" if any Muslim was sent to detention camps in case the Supreme Court upheld the validity of the Citizenship Amendment Act (CAA).

Speaking at the JNU campus, the former Union minister said the CAA was an outcome of the "NRC fiasco" in Assam that left 19 lakh people out of the document.

The CAA was brought to accommodate the 12 lakh Hindus among the 19 lakh people who could not be included in the National Register of Citizens (NRC) in Assam, he claimed.

Replying to a question by a student on the best course of action if the CAA was upheld by the apex court, Chidambaram said, "When they touch the excluded...they will only be Muslims, to identify and throw them out, declare them stateless, there must be a huge mass movement, resisting any Muslim being thrown out or kept in detention camps."

He also said the Congress believed that the CAA must be repealed and there should be a political struggle so that the National Population Register (NPR) was pushed beyond 2024.

Claiming that the NRC, CAA and NPR were "closely connected" to each other, Chidambaram said, "The CAA was brought due to the NRC fiasco in Assam and the opposition to the CAA gave way to the NPR."

He asserted that the Congress was protesting against the CAA and the NRC across the country, but had consciously avoided going to Shaheen Bagh, as in that case, the ruling Bharatiya Janata Party (BJP) would brand the demonstration against the amended citizenship law as a "political" one.

"See, we are not going to Shaheen Bagh because that would be falling into the BJP's trap. If we go there, they (BJP) will say it is political," the senior Congress leader said.

Slamming the CAA and the NRC as instruments undermining the very basis of the formation of India, he said the country, instead, needed a "broad law" on refugees.

Speaking at an event against the NRC, CAA and NPR hosted by the Congress's student wing, NSUI, at the Jawaharlal Nehru University (JNU), Chidambaram accused the BJP of spreading lies against Opposition parties.

"The BJP says the Congress, the Left and other liberal parties are against citizenship to persecuted Hindus, Sikhs from Pakistan, Bangladesh. But we are not against those included, our opposition is against exclusion," he said.

Questioning the rationale behind the CAA, the former finance minister said it excluded people on the basis of religion.

"Why only three countries, what about other neighbouring countries — Nepal, Bhutan, China? What about others treated much worse? The Ahmadiyas and Shias of Pakistan, the Rohingyas of Myanmar, Tamil Hindus are equally persecuted, why are they left out?" he questioned.

Chidambaram also said the CAA did not cover persecution based on language, political ideology and economic deprivation.

Slamming the NRC, he wondered which country would accept those left out of the document.

"Which country is going to accept them? How will they go? Where will you send them? (Home Minister) Amit Shah saying that they are termites and he will throw them out by 2024 is talking through his hat," the senior Congress leader said.

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News Network
February 21,2020

Thiruvananthapuram, Feb 21: Hindu temples, dedicated to Lord Shiva, witnessed heavy rush on Friday as devotees celebrated Maha Shivratri festival with traditional zeal and religious fervour across Kerala.

Cutting across age barriers, devotees, including women and children, thronged small and big shrines since early morning to offer prayers and take part in special poojas and rituals on the occasion.

Devotees used to mark the auspicious occasion by observing 'orikkal' (fasting), dedicating the leaves of Koovalam plant, which is considered holy according to Hindu tradition, to the Lord and by abandoning their sleep chanting 'Om Nama Shivaya' mantras.

Ardent devotees even remain awake throughout the night and spend their whole day in temples.

The Sreekandeswaram Mahadeva Temple here, Vadakkunnathan temple in Thrissur and Maha Deva temple in Vaikom were among the major shrines which witnessed heavy rush since early morning.

Temple authorities, especially Devaswom Boards which manage many major shrines in the state, have made elaborate arrangements in Shiva temples to ensure smooth darshan for devotees.

All arrangements have been put in place on the banks of River Periyar in Aluva in Ernakulam for 'Balitharppanam', a ritual in which people pay obeisance to their ancestors.

Performing the ritual on the midnight of Shivratri is considered auspicious by devotees.

Hundreds of 'bali taras' (specially erected platforms) have been set up on the banks of the river to perform the ritual and a large number of priests have been deployed to assist devotees.

Thousands of police personnel were deployed in view of the large turnout of devotees.

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Agencies
June 4,2020

New Delhi, Jan 4: The Supreme Court on Thursday extended till June 12 its earlier order of May 15 asking the government not to take any coercive action against companies and employers for violation of Centre's March 29 circular for payment of full wages to employees for the lockdown period.

A bench of Justices Ashok Bhushan, S K Kaul and M R Shah reserved the verdict on a batch of petitions filed by various companies challenging the circular of the Ministry of Home Affairs issued on March 29 asking the employers to pay full wages to the employees during the nationwide lockdown due to the coronavirus pandemic.

In the proceedings conducted through video conferencing, the top court said there was a concern that workmen should not be left without pay, but there may be a situation where the industry may not have money to pay and hence, the balancing has to be done.

Meanwhile, the apex court asked the parties to file their written submissions in support of their claims.

The top court on May 15 had asked the government not to take any coercive action against the companies and employers who are unable to pay full wages to their employees during the nationwide lockdown due to the coronavirus pandemic.

The Centre also filed an affidavit justifying its March 29 direction saying that the employers claiming incapacity in paying salaries must be directed to furnish their audited balance sheets and accounts in the court.

The government has said that the March 29 directive was a "temporary measure to mitigate the financial hardship" of employees and workers, specially contractual and casual, during the lockdown period and the directions have been revoked by the authority with effect from May 18.

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