Mangaluru: Empathizing with flood survivors Muslims observe Eid Al Adha as rain gives a break

Bengaluru, Jul 3: Karnataka Health Department on Thursday permitted District Health Departments to appoint doctors with MBBS, on a contractual basis with permission of concerned District Health Officers and Commissioners, a statement said.

The state government has also hiked the salary of contractual doctors from Rs 45000 to Rs 60000 per month.

Earlier in the day, Karnataka Health Minister B Sriramulu urged contract doctors to continue offering their services amid their demand for regularisation of services.

"I request the contract doctors with folded hands to continue offering their services. With regard to their two demands, one of salary hike and the other being permanency, I assure all of them that I stand with them and their requests will definitely be fulfilled," said Mr Sriramulu.

The Chief Minister had also discussed about the two issues yesterday and agreed to facilitate the pay hike, he added.

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

Bengaluru, Feb 24: Census authorities in Karnataka have requested deputy commissioners in the state’s districts to hold outreach and awareness campaigns about the National Population Register (NPR), as they fear misgivings about the exercise could hurt the forthcoming enumeration of population.

The house-listing phase of the Census and updating of NPR will be rolled out simultaneously by mid-April in the BJP-ruled state.

About 1,50,000 enumerators will handle the massive exercise.

Officials believe widespread awareness will help address concerns about the NPR data-gathering process and make people cooperate with enumerators when they visit houses for both NPR and census work.

“Sensing the kind of questions that enumerators may face when they do house visits, in all video conferences with deputy commissioners of districts, we have requested to establish contact with local representatives,” SB Vijay Kumar, director of Census Operations in Karnataka told news agency. “We have asked them to organise outreach programmes to ensure that people’s doubts are resolved before the information gathering work begins,” he added.

Census operations are handled by the Union home ministry. Several district officials are said to have raised concerns about the possibility of people refusing to share information when the work on the census and NPR begins in two months. This would affect the quality of the census work, making the exercise incomplete.

news channel earlier reported that people in parts of Karnataka had declined to share personal information with officials visiting households in connection with government programmes, suspecting them of gathering data for the yet-to-be unveiled National Register of Citizens, following enactment of the Citizenship Amendment Act (CAA) recently.

Kumar said district authorities will train and sensitise enumerators to tread carefully while gathering information. Enumerators will be told not to demand information but seek it gently.

“We will tell enumerators to proactively engage with people. For instance, if an old man in a village does not know his exact date or place of birth, the enumerator may engage in a conversation with the person that may elicit some anecdotes and roughly establish the year and the place of birth,” the census director said.

As of now, the NPR questionnaire has 21queries, but officials say it has not yet been finalised.

With most of the census and NPR data gathering and storage happening digitally this time, the challenge before census officials is to convince people that the data would remain safe.

“Individual data is sealed and all that we can see is collective data. The information is consolidated and tailor-made. We are telling district officials to create awareness about data safety as well,” Kumar said.