Showing posts with label news. Show all posts
Showing posts with label news. Show all posts

Thursday, December 18, 2014

SBI's Work-From-Home Option for Women, How Feasible is the Move?

SBI Chairman Arundhati Bhattacharya’s novel idea of providing women employees of SBI with a work-from-home option is sure to stir up a hornet’s nest in the coming days.

Arundhati Bhattacharya, the first woman to head the bank ever, has said that she would be looking at ways to increase retention of women staff. While 38-40% of recruits were women, their high dropout rate and absenteeism resulted in women accounting for just of 20% of the workforce.

At present, the strength of women employees in the total workforce of the bank is 45,132, which constitutes slightly more than 20% of the total staff strength of 2,22,033. Bhattacharya said that the dropouts were for various reasons, including looking after children, to relocate or to look after the elderly.

After she took charge, the bank announced that it would allow women to take a two-year sabbatical from work in case they want it for children's education or taking care of parents.

Maybe Ms. Bhattacharya’s initiative doesn’t stem from a modern-day compulsion alone. In fact, in the late 18th and early 19th century, around the same time SBI was founded, working women, especially mothers, in Europe increasingly found it difficult to combine paid labour with familial responsibilities due to the demanding nature of the new industrial job in textile and clothing factories.

As their contribution to the aforementioned industries couldn’t be underplayed, the concept of ‘separation of workplace from home’ was done away with in order to accommodate their twin roles. Thus, working mothers found solace by engaging with home-based work through the setting up of small-scale workshops.

Though the Industrial Revolution redefined the spheres of ‘domesticity’ and ‘home’ as exclusively feminine, it also brought about a transformation of workplace and newer representations of gender.

Thus male workers/employees came to be solely engaged in economic activity while staying aloof from child-raising and household chores. Women, on the other hand, had to constantly concern themselves with maternity and motherhood.

A lot of what sexual division of labour at the professional level shows us from the past continues to impact working women of the present. Of course, the ‘natural’ order of things cannot be compromised for any revolutionary change in gender functions thereby work-from-home option ‘has’ to be a convenience only for working mothers.

Over the years, feminist groups have been calling for equal pay and status for women in the professional sphere. At the same time, there has been an outcry over the reservation tactic employed to ‘privilege’ women, as achieving equality through a social transformation is a long-drawn process.

The SBI initiative makes sense only in case of maternity leave and not for any other reason, like child’s education and taking care of parents as cited by the company, which could be carried out by a working father as well. Why does such a facility favour only women when it should ideally be granted on the nature of given work irrespective of gender considerations?

So, a more comprehensive solution would be to extend this benefit even to male employees who, albeit in minority cases, would want to stay on at home for the same purpose.

The doubts over technological feasibility can wait. What demands far greater attention is the gender disparity it creates in the quest for a diluting a patriarchal setup, both in the domestic and professional spheres.

Apart from this flaw on the gender front, the move has been tried and tested by American multinational company, Yahoo whose CEO Marissa Mayer decided on the ban on work-from-home after spending months frustrated at how empty Yahoo parking lots were and after consulting Yahoo's VPN logs to see if remote employees were checking in enough.

Her argument was quite logical, "People are more productive when they're alone, but they're more collaborative and innovative when they're together. Some of the best ideas come from pulling two different ideas together."

Lots of people around the country and world work from home these days, and many of them - particularly mothers - seemed to view Mayer's ban as a threat on their way of working.

But productivity would take a huge hit due to the lack of a monitoring system and a phenomenal risk of many employees availing the benefit as opposed to an office desk job. Instead, a more plausible solution would be to limit the period of work-from home duties to a maximum of 2-3 years in the case of employees who’ve applied for leave owing to secondary domestic responsibilities.

Another way to prevent many employees from availing this benefit would be to introduce a pay-cut of 20-30%. This is to be done keeping in mind the ‘additional advantages’ enjoyed by work-from employees as they wouldn’t incur either travel (thereby saving time) or overhead expenses (like fuel and maintenance). On the flip side, it could create more job opportunities in any sector providing the work-from home option.

There is also an environmental good, though small: resultant reduction in the use of private/company vehicles brings down pollution levels.

There has to be a complete overhaul of the labour laws allowing paid and casual leave in the event of an employee already benefiting from the work-from home scheme. In extremely veritable cases, the remote employees could be allowed flexible working hours depending on the time they would have to invest for other purposes.

However, as of now, the idea appears too far-fetched and unattainable. Perhaps, the single-most impediment would be on the technical feasibility considering the geographical spread of the SBI’s branches.

Instead, why not devise a system by which employees aren’t subjected to regular transfers far from their hometown? Or maybe even setup crèche facilities for a temporary period?

It is, therefore not at all surprising that modern private banking institutions like HDFC and ICICI haven’t mulled over such innovations precisely due to the fallout in productive capacity of the company.

Thus, the scheme is beset with a two-fold complication: Firstly, the need to extend the option to all employees if introduced as a company policy and secondly, to develop suitable technology to oversee the work done by them.

Ultimately, the wisdom of the primary stakeholders, i.e. the employees and industry experts have to be consulted before any fast-track measure is in the offing. Like Margaret Heffernan once said, “For good ideas and true innovation, you need human interaction, conflict, argument, debate”.

Written by Carl Jaison on The Seasonal Magazine, Published on December 16, 2014

Monday, July 30, 2012

State Bank of India's asset quality improving: Chairman


Mumbai, July 27 (Reuters) - State Bank of India's asset quality is improving compared to last year, Chairman Pratip Chaudhuri said on the sidelines of a news conference after announcing its $1.25 billion bond issue. He did not give any further details citing a silent period ahead of the earnings. India's biggest lender will post April-June quarterly results on Aug. 8, Chaudhuri added.
The comments came after SBI shares slumped as much as 3.8 percent on Friday as a rise in non-performing assets at Punjab National Bank and Union Bank sparked concerns about asset quality in the government-run banking sector.

SBI Chief Pratip Chaudhuri says repo rate cut won’t be sufficient


Mumbai, July 27:  A cut in the cash reserve ratio (CRR) could serve as a mood elevator for the markets, according to the State Bank of India Chairman, Mr Pratip Chaudhuri. CRR, currently at 4.75 per cent, is the slice of deposits that banks have to maintain with the Reserve Bank of India (RBI). “Perhaps there should be a 50 basis points CRR cut (to 4.25 per cent). I don’t know what kind of liquidity signals are being looked at.
“I do not agree with this that the total borrowing under the LAF (liquidity adjustment facility) is a ‘measure of the street’. The ‘measure of the street’ is at what price banks are issuing certificates of deposits (CDs),” said Mr Chaudhuri at a press meet to announce the conclusion of the bank’s $1.25-billion five-year overseas bond offering. LAF is a facility extended by the RBI to banks to avail themselves of liquidity in case they face deficit or park funds with the RBI in case they have surplus funds on an overnight basis against the collateral of government securities.
Mr Chaudhuri said that if banks are continuing to issue CDs at 9 per cent and 9.2 per cent, it obviously indicates that the liquidity situation is not comfortable.

‘Strong case for rate cut’
“Last time they (the RBI) skipped CRR cut. So, there is a strong case for it now. Globally, the monetary authorities have taken upon themselves the task of rejuvenating the economy. One thing that they can contribute is by moderating the interest rates,” reasoned the SBI chief.
The interest rate differential between Indian and overseas markets opens up carry trade. “Rupee is a good currency for deposits but not-so-good currency for bonds. We think there is case for bringing down the CRR and that will have a cooling effect on interest rates, especially for customers,” said Mr Chaudhuri.
In case of a repo rate cut, the benefits (for banks) are little. If there is no benefit, then banks cannot pass on any interest rate cut, he explained.

Disadvantage India
“Interest rate acts as a signal. It is a necessary but not a sufficient condition (for growth). It is a mood elevator. If interest rate comes down, it will trigger enthusiasm (among various participants in the economy). To some extent, most markets are a function of sentiments. Market sentiment will turn positive if there is a reduction in interest rates,” said Mr Chaudhuri.
Pointing out that Indian companies were at a disadvantage vis-à-vis their foreign competitors, the SBI chief said if the promoter of a power plant buys capital equipment from an Indian manufacturer, then he has to take rupee loan, which will come at 10-11 per cent. If the promoter were to go for foreign gear, say, Chinese equipment, which is very common, the interest cost is 4 per cent.

Low-cost Deposits up
According to Mr Chaudhuri, SBI’s retail deposit growth has been quiet good in the first four months of the current financial year. Low-cost deposits in current accounts and savings bank accounts increased by about Rs 30,000 crore in those first four months. However, loan growth has been muted.
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