Page 11 - Banking Finance October 017

BANK UPDATE

Paytm Payments Bank 'No Work No Pay' pushed by PSUs
to spread larger wings Due to severe asset quality stress and losing business to their rivals in the pri-
vate sector, public sector banks (PSBs) are increasing
pressure on employees to remain competitive.
A Syndicate Bank notice issued on August 30 said, "The
principle of no work-no pay takes effect automatically"
in case an employee does not report to work or does
not work during any part of office hours. The bank had
also said it would treat this as a breach of contract and that the employee would
not earn salary for the day.

Paytm's parent company One97 Sources in the bank said the top management withdrew the notice immediately,
Communications along with the on grounds that the regional manager had no authority to issue it. "The notice
founder Vijay Shekhar Sharma has was unwarranted and unethical," said Suresh Kumar Sangtani, general secre-
invested Rs 60 crores or more into tary, Syndicate Bank Employees' Union. "We are happy that our MD has with-
the Paytm Payments Bank. Sharma drawn it."
invested Rs. 30 crores, while One97 The Syndicate Bank faced net loss of Rs 263 crore in the June quarter on ac-
Communications had put in Rs. 23 count of high provisions to cover the rise in gross non-performing assets ratio to
crores, whereas the remaining was 9.96 %. Its cost-to-income ratio was as high as 57.17 % at end of June, com-
invested by a subsidiary of One97, as pared to the private ICICI Bank`s 42.3 %. Staff costs account for a substantial
confirmed with the Registrar of part of PSB cost of operation.
Companies records.
Charter to increase climate awareness
The new allotment resulted in an
authorised capital of the bank to Rs. Indian Institute of Management Lucknow (IIM-L) and Yes Bank have recently
400 crore and the paid up capital to signed a charter to help spread 'Climate Literacy,' to
achieve sustainable development through shared learn-
Rs 278 crore.
ing. The bank will support IIM-L in updating its two-
The Paytm Payments Bank was year course curriculum.
launched in May with a branch in "Sustainability has become integral to corporate strat-
Noida, and the company had said it egy and towards achieving holistic growth," said Ajit
will expand to 31 branches and 3,000
Prasad, Director of IIM-Lucknow. "Our collaboration
customer service points in the first
will enable our students to understand the perspective of corporates and ad-
year. It offers an interest of 4% per dress environmental and social issues in accordance with the economic chal-
annum for savings accounts, which
lenges."
is lower than what Airtel and India
The partnership with IIM-Lucknow would mould leaders focused on adopting the
Post are offering. Airtel offers the
highest interest rates of 7.25%, current best practices in environmental risks and financing environment-friendly
sustainable growth, said Rana Kapoor, MD of Yes Bank.
while India Post is offering interest
rates between 4.5% and 5.5%. Fino Record profit of over Rs. 150-cr by 2 regional rural
Payments Bank, which started op-
erations last month, is also offering banks
4% interest rate on savings ac- Two of the 56 Regional Rural Banks in the country notched up net profit of over
counts. Rs. 150 crores each in FY 2016-17. As per RBI's 'Report
on Trend and Progress of Banking in India', 45 of the 56
The Paytm Payments Bank is looking
forward to partner with universal RRBs earned profits without carrying any accumulated
losses during 2015-16. At the end-March 2017, RRBs had
banks to offer a host of financial ser-
21,398 branches spread across 676 districts and 28
vices to customers.
States.
10 | 2017 | OCTOBER | BANKING FINANCE

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