Page 12 - Banking Finance June 2019

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INDUSTRY

Sanjiv Puri appointed as Fin min approves 8.65% interest rate on EPF for 2018-19
Keeping the benefits of more than 6 crore formal sector workers in view, the
new ITC Chairman & MD
finance ministry has approved 8.65 per cent rate
The Board of Directors of ITC has
of interest on Employees' Provident Fund (EPF) for
appointed the
2018-19 as decided by retirement fund body EPFO.
Managing Direc-
tor of the com- "The Department of Financial Services (DFS), a wing
pany as the of finance ministry, has given its concurrence to
chairman. He Employees Provident Fund Organisation's (EPFO)
will be now des- decision to provide 8.65 per cent rate of interest
ignated as Chair- for 2018-19 to its subscribers," a source informed.
man and Man-
"The DFS has approved the proposal subject to fulfilment of certain conditions
aging Director, the company said in
related to efficient management of the retirement fund," the source said fur-
a stock exchange filing.
ther.
Yogesh Chander Deveshwar, the
Previously in the month of February, headed by labour minister Santosh Gangwar,
former chairman of the company,
the EPFO's apex decision making body central board of trustees had decided to
passed away on May 11. Mr Puri (56)
increase the interest rate on EPF to 8.65 per cent for 2018-19, which was the
has been holding responsibility of the
first increase in the past three years.
position of Managing Director since
2018. He was appointed on the The interest rate on EPF was hiked to 8.65 per cent for the last fiscal from 8.55
board in December 2015 and desig- per cent provided in 2017-18. The EPFO had earlier reduced the interest rate in
nated as CEO in February 2017.
2016-17 to 8.65 per cent from 8.8 per cent in 2015-16.
He is an alumnus of IIT Kanpur and
After the concurrence of finance ministry, the Income Tax department and the
the Wharton School of Business. He
labour ministry would notify the rate of interest for 2018-19. Therefore, the
joined the ITC in 1986 and has taken
EPFO would give directions to its more 120 field offices in order to credit the
charge of various responsibilities, in-
rate of interest into subscribers' account and settle their claims accordingly.
cluding as chief of FMCG business
that consists of cigarettes, foods, According to the EPFO estimates, there would be a surplus of Rs 151.67 crore
personal care education and statio- after providing 8.65 per cent rate of interest for 2018-19 on EPF. There would
nery and matches and agarbathies. have been a deficit of Rs 158 crore on providing 8.7 per cent rate of interest in
EPF for last fiscal. That is why the body decided to provide 8.65 per cent rate of
Mr Puri has also led ITC Infotech and
interest for 2018-19. The EPFO had provided a five-year low interest rate of
served as managing director of Surya
8.55 per cent to its subscribers for 2017-18.
Nepal Private Ltd., a subsidiary of ITC.

12 | 2019 | JUNE | BANKING FINANCE