The banking sector plays a crucial role in the growth and development of any economy. In India, the banking sector has significantly evolved over the past decade, with a tech-savvy population and a booming economy. As of 2024, the top banks in India, based on market capitalization, are also among the top banks globally.HDFC Bankholds the position of the largest bank in India in terms of market capitalization. Let’s have a look at the Top 10 Banks in India as per Mcap.
Top 10 Banks in India as per Market Cap (as on 12.04.2024)
The Finance Ministry has instructed five public sector banks in India to increase their minimum public shareholding to 25% by August 1, in line with regulatory requirements. This directive is part of the Securities Contract (Regulation) Rules, which mandate all listed companies, including public sector entities, to maintain a minimum public shareholding of 25%.
Sources familiar with the matter suggest that the Securities and Exchange Board of India (SEBI) may consider granting exemptions to some public sector banks and other public sector undertakings (PSUs) to gradually achieve compliance with the 25% minimum public shareholding norms by August 2024. State-run lenders are reportedly raising capital through Qualified Institutional Placement (QIP), which leads to a dilution of the government’s stake. However, there are currently no plans for a direct share sale in any public sector bank.
It is worth noting that the government’s stake in the five state-run banks exceeds 75%, resulting in unsold government stakes valued at over Rs 65,000 crore at current market prices. Additionally, several other government enterprises, including IRFC and SJVN, also have government stakes exceeding 75%.
In related developments, the central government has divested its holdings in six public sector units (PSUs) over the past year. These include Hindustan Aeronautics Ltd., RVNL, SJVN, Coal India, HUDCO, and NHPC. The shares of four of these companies have already doubled from their Offer for Sale (OFS) floor price.
It is important to note that the Finance Ministry has recently amended the Securities Contracts (Regulation) Rules, 1957 to exempt listed public sector companies from the minimum public shareholding norm. This exemption comes ahead of the three-year timeframe given to listed PSUs to conform to the norm. The amendment allows listed entities to have at least 25% public shareholding, which can be held by anyone other than a promoter, including institutions or individuals.
These recent developments highlight the government’s efforts to ensure compliance with minimum public shareholding requirements and promote transparency in the functioning of listed companies in India.
A tragic tragedy happened at Chakradharpur , a city in the West Singhbhum district of Jharkhand. Geeta Pradhan, a female bank(Bank of India Jharkhand) employee, hanged herself to end her life. She held a position at Bank of India. Geeta Pradhan was transferred from Chakradharpur to Koderma, which appears to have contributed to her depressive episode. Ashish Kumar Pradhan, her spouse, is employed with the Chakradharpur railway division in Tatanagar in the electrical department. Her two sons are five years old and twelve years old, respectively. See the government's instructions for assigning and reassigning female bank employees.
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The event happened in Harijan Basti, Chakradharpur, on Tuesday morning at around ten in the morning. Geeta Pradhan had fed her two sons breakfast and sent them to school before making this dramatic decision. She went to the room under construction on their house's upper level after they left. She is thought to have killed herself by hanging herself with a rope fastened to the room's door frame.
Her husband, Ashish Pradhan, went upstairs to find his wife hanging after failing to locate her within the home. He reported the event right away to the Chakradharpur police station. After the police arrived, they freed Geeta Pradhan from the rope and took her to the hospital in the Chakradharpur subdivision. Sadly, the medical professionals pronounced her dead.
The news of this tragic incident has left the residents of Harijan Basti mourning. Upon hearing about the incident, a gathering of bank employees and railway workers assembled outside Geeta Pradhan’s house. The police are now taking legal action after gathering information about the entire incident.
Sanjeev Jindal, the Chairman of the Consumer Disputes Redressal Commission, recently issued an order directing Axis Bank to reimburse Mukta Malhotra, the account holder, for the value of Rs 51 lakh. This decision was made in response to the discovery that Mukta Malhotra's account manager, Rajiv Sharma, had forgeried her signature in order to fraudulently take money from her account.
The Consumer Disputes Redressal Commission has mandated that Axis Bank pay nine percent interest on the withdrawn cash in addition to the principal amount of Rs 51 lakh. Additionally, Mukta Malhotra has been awarded Rs 2 lakh by the bank as compensation for the psychological distress she endured as a result of the occurrence, along with Rs 22,000 for legal fees she incurred during the court proceedings.
The owner of South Asian Apparel Resource on Khandsa Road, Mukta Malhotra, filed a case with the Consumer Disputes Redressal Commission detailing her account manager Rajiv Sharma's illegal conduct. Rajiv, who was in charge of overseeing the business's Axis Bank account, moved a total of Rs 51.75 lakh from the account to his wife's company, Prinyanka Design.
Mukta Malhotra learned of the illicit withdrawals on April 15, 2019, after receiving a notification from Axis Bank regarding the activities. It was discovered that Rajiv had been using forged checks to take money out of the account over time.
The Police Commissioner opened an inquiry after receiving the complaint, and on July 9, 2019, a case was filed under several legal headings at the Sector-10 police station. The investigating officer seized cheques from Axis Bank and Bank of Baroda with forged signatures and served Axis Bank with a notice inviting them to cooperate with the inquiry.
Nevertheless, Axis Bank did not assist with the inquiry and did not offer any written correspondence, including emails or messages, to back up their assertion that they had alerted Mukta Malhotra to the fraudulent activity.
Following an evaluation of the available data and hearings from both sides, the Consumer Disputes Redressal Commission determined that Axis Bank was at fault in this instance. The complainant's signature did not match those on the fake checks, according to a handwriting expert's assessment of the signatures on the checks, which the court had mandated.
As a result, the Commission found in Mukta Malhotra's favor and directed Axis Bank to reimburse her for the Rs. 51.75 lakh principal plus 9% interest. In addition, the bank was ordered to reimburse Rs 2 lakh for emotional distress brought on by the event and Rs 22,000 for legal costs.
India’s economy has been experiencing exponential growth, and many people are curious about the wealthiest individuals in the country. According to Forbes’ Real-Time Billionaires rankings, here is a list of the top 10 richest people in India as of March 8, 2024:
Mukesh Ambani is the Chairman and Managing Director of Reliance Industries, which has a revenue of over Rs 9.03 lakh crore ($109.4 billion). Reliance Industries is involved in diverse sectors such as petrochemicals, oil and gas, retail, and telecom. Ambani’s three children, Akash, Anant, and Isha, are actively involved in managing different divisions of the conglomerate.
Gautam Adani
Age: 61 Years
Source of Wealth: Adani Group
Gautam Adani is the founder and chairman of the Adani Group, a multinational conglomerate involved in port operations and development within India. The Adani Group has business interests in various sectors, including ports, airports, power generation and transmission, and green energy. Adani is recognized as India’s largest airport operator and also controls Gujarat’s Mundra Port, the country’s largest.
Shiv Nadar
Age: 78 Years
Source of Wealth: HCL Enterprise
Shiv Nadar is the proprietor of the HCL group, which serves renowned clients such as Cisco, Microsoft, and Boeing. He is a highly respected philanthropist and was awarded the Padma Bhushan, India’s esteemed third-highest civilian distinction, in 2008. In late 2023, Nadar donated Rs 2,042 crore for philanthropic causes.
Savitri Jindal & family
Age: 74 Years
Source of Wealth: O.P. Jindal Group
Savitri Jindal is an Indian politician and entrepreneur who holds the esteemed position of emeritus chair at the O.P. Jindal Group. The various divisions of the business are run by her four sons: Prithviraj, Sajjan, Ratan, and Naveen Jindal. The Jindal Group has business interests in India, the USA, South America, Europe, and Africa. Savitri Jindal is the richest woman in India.
Dilip Shanghvi
Age: 68 Years
Source of Wealth: Sun Pharmaceuticals
Dilip Shanghvi is a prominent Indian business tycoon and the visionary behind Sun Pharmaceutical Industries, the first Indian pharma company with a $5 billion valuation. Sun Pharma grew through a series of acquisitions, including the 2014 purchase of scandal-tainted rival Ranbaxy Laboratories for $4 billion.
Cyrus Poonawalla
Age: 82 Years
Source of Wealth: Serum Institute of India
Cyrus Poonawalla is the primary beneficiary of the privately held Serum Institute of India, the world’s largest vaccine manufacturer. The institute, headquartered in Pune, has played a crucial role in the development and distribution of Covid-19 vaccines. Poonawalla’s wealth has increased due to the widespread utilization of the vaccines developed by the Serum Institute.
Kushal Pal Singh
Age: 92 Years
Source of Wealth: DLF Limited
Kushal Pal Singh is the chairman emeritus of DLF Limited, India’s biggest listed real estate firm by market cap. Singh joined DLF, a company started by his father-in-law, in 1961 and served as chairman for more than five decades.
Kumar Birla
Age: 56 Years
Source of Wealth: Hindalco Industries
Kumar Birla is the leader of the Aditya Birla Group, which is involved in various sectors, including aluminum, cement, and financial services. Birla was also the non-executive chairman of Vodafone Idea, a telecommunications company, until 2021. As of 2024, he serves as a non-executive director of the company.
Radhakishan Shivkishan Damani
Age: 69 Years
Source of Wealth: Avenue Supermarts Limited
Radhakishan Shivkishan Damani is the founder of Avenue Supermarts Limited, which operates more than 300 DMart stores in India. He also controls his investment ventures through his company, Bright Star Investments Limited.
Lakshmi Mittal
Age: 73 Years
Source of Wealth: ArcelorMittal
Lakshmi Mittal is the Chairman and CEO of ArcelorMittal, the largest global steel manufacturer. Mittal passed on the CEO role to his son, Aditya Mittal, in 2021 but continues to serve as the executive chairman of the company. ArcelorMittal recently faced production stoppage at its Kryvyi Rih facility in Ukraine due to Russia’s invasion of Ukraine.
In
a landmark decision, the Indian Banks’ Association (IBA) and workers’ unions
recently inked an agreement to enhance the salaries of employees in public sector banks by a substantial 17%, totaling a staggering Rs 12,449 crore. This
momentous decision, affecting approximately nine lakh employees, including 3.8
lakh officers in PSU banks like SBI, marks a significant leap in the financial
well-being of the banking sector workforce. The agreement, reached on December
7, 2023, through detailed discussions, promises a positive change in the lives
of countless bank employees. According
to the press release: “The joint note declares all Saturdays
as public holidays until the government announces. The
revised working hours will come into effect after the announcement. The Indian Bankers Association(IBA) and the Bank Officers’ Associations. The staff and the
employees’ unions successfully reached a major wage agreement that
will ensure a significant 17 percent increase
in wages for officers and employees wage revision
and a total of 12.589 billion across 12
public banks participating in the 12th Bipartite Settlement.
This move, subject to necessary
approvals from the Centre and the Reserve Bank of India, aims to enhance the
work-life balance of bank employees.
Bank Employees Salary Revision Latest News:
After a prolonged wait, the IBA and bank unions have settled
on a 17% annual salary increase for five years, commencing from the fiscal year
2021-22. This eagerly anticipated wage revision will be effective from November
1, 2022. However, the prospect of a 5-day work week remains uncertain, as
unions advocate for the declaration of all Saturdays as public holidays for
banks. The distribution of annual wage increases for bank employees will be
meticulously calculated, taking into account the fiscal year 2021-22
expenditures.
Bank Employees Salary Hike:
Both parties are committed to finalizing a detailed
agreement within 180 days from the signing of the Memorandum of Understanding
(MoU). The IBA has recommended declaring all Saturdays as holidays for the
banking industry under the NI Act, a proposal currently awaiting clarity. The
ongoing negotiations encompass various issues, including the implementation of
this recommendation before signing the final agreement.
Key Points on the 12th Bipartite settlement
1. * The new pay rates commence from November 1, 2022, and will
remain in effect for five years.
2. * A substantial 17% increase in salary and allowances,
amounting to Rs 12,449 crore for all public sector banks, including the State
Bank of India.
3. * The calculation of the new pay involves merging Dearness
Allowance points up to 8088 with the basic pay as of October 31, 2022, plus an
additional 3%, totaling Rs 1795 crore.
4. * Annual wage increases for workers and officers will be
determined separately based on the fiscal year 2021-22 expenditure breakdown.
5. * Ongoing discussions regarding pension updates for retirees,
with a one-time ex-gratia amount agreed upon for pensioners and family
pensioners as of October 31, 2022.
6. * Applicability of the ex-gratia for retirees of the current
settlement period to be discussed later, unaffected by other allowances.
7. * Recommendation to declare all Saturdays as holidays for the
banking industry under the NI Act, with an unclear status.
8.Resolution of all matters raised during negotiations,
including ex-gratia payments for pensioners of private sector banks and foreign
banks.
Bank Employees Salary Hike Calculator:
With the 12th Bipartite settlement for bank employees
finalized, employees are eager to calculate their new pay. The 17% salary hike,
including a 3% load factor, will result in a comprehensive increase on the
payslip. The Dearness Allowance is merged with the current basic pay, and the
Special Allowance is pending as of 7/12/2023.
Here’s
a breakdown of the 12th
BPS salary calculation with a 17% hike:
Load
Factor Explained: The load factor, considered in the 12th BPS, benefits
bank staff by taking into account both BASIC and DA. This load factor of
3% is applied to both BASIC
AND DA.
Total
Salary Increase: The total salary increase is exactly 17% as
per the 12th BPS settlement. For example, the gross salary before
the 12th BPS
was Rs. 74,125, and after the 12th BPS, it becomes Rs. 89,601, resulting
in a 17% increase on the payslip, as stated in the 12BPS final negotiating
committee.
Calculation
for Officers’ Salaries: A salary chart is provided for an
employee who joined the bank in 2021 with a basic pay of Rs. 36,000 in the
11th BPS. The employee, having completed JAIIB and CAIIB certification
courses, receives 1 increment for each. With two yearly increments in 2022
and 2023, the total
increments are 4 (1+1+1+1). Each increment is Rs.
1490 in BASIC PAY for officers. The chart shows the salary calculation for
an Officer employee with CAIIB qualification and 2 yearly increments.
1
Lakh Plus Salary in Banks: An officer in banks with CAIIB
qualification and 2 years of experience will receive a gross salary of 89k. With
additional allowances like rent and petrol, the gross salary of an officer
employee in banks can exceed 1 lakh, which is good news for bank staff.
Salary
Slip Components Load Factor: The components of the payslip for
an officer employee in banks are BASIC, DA, SPECIAL ALLOWANCE, and LOAD FACTOR. The
chart shows the load factor of 3%, calculated for the new basic pay of the
12th BPS and new DA, i.e., 3%
of (56212+10286) = 1994.
Bank
New Salary After Wage Revision
Good
news for public sector bank employees! A 17% wage hike is on the way,
following the agreement between Indian Banks’ Association (IBA) and
bank unions on the 12th bipartite settlement.
The
total annual salary for all banks, including the State Bank of India, is
set at Rs
12,449 crore.
The
revision will be effective from November 1, 2022, for five years. New pay
scales will consider a 17% increase in salary and allowances, with the
Dearness Allowance and a 3%
loading factor.
IBA recommends a five-day
work week, and unions want its implementation before the final agreement,
expected in the next 180 days. This follows a 15% hike in July 2020 for
around 850,000 bank
employees.
FAQ
How much salary will increase after the 12th Bipartite Settlement?
The salary increase after the 12th
Bipartite Settlement is a substantial 17%, totaling Rs 12,449 crore for all
public sector banks, including the State Bank of India.
What
is the period of the 12th Bipartite Settlement?
The 12th Bipartite Settlement is
effective for five years, starting from November 1, 2022.
What
is the salary revision in banks?
The salary revision in banks, as per
the 12th Bipartite Settlement, involves a 17% increase in salary and allowances
for a period of five years.
What
is the load factor in salary?
The load factor in the salary
calculation for the 12th Bipartite Settlement is 3%. This factor is applied to
both Basic and Dearness Allowance, contributing to the overall salary increase.