Amaravati, July 3 (IANS) Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy on Friday launched the Andhra Pradesh Corporation for Outsourced Services (APCOS) to recruit employees for various government departments in the state.
The establishment of a separate department for this purpose is expected to eliminate contractors and middlemen who used to control outsourcing for government services.
APCOS will handle processes such as recruitment and salaries, including the ESI and PF benefits. The processes will factor in the state government's policy of providing 50 per cent reservation to the SCs, STs, BCs, minorities and women.
A state government official said that the move is part of the reforms undertaken by the state government to usher transparency in governance.
After launching APCOS from his camp office here, the Chief Minister handed over appointment letters to the outsourcing staff working with the General Administration Department (GAD) at the Secretariat. APCOS will hand over 50,449 appointment letters to the employees working in various departments across Andhra Pradesh.
The APCOS is one more poll promises of Jagan Reddy. "During my 3,648 km padayatra, people working as outsourcing employees had come to me with many complaints about the recruitment process, delay in salaries, the bribes they have to pay for getting the job, the commissions they have to give for getting their pay and the likes," he recalled.
"By setting up APCOS, we will be putting an end to all such corruption and nepotism. All recruitments and salaries will be done online on time and under the supervision of the concerned district collector. The in-charge minister will also be in the committee, which will ensure that 50 per cent reservation is provided to the weaker sections and women," the Chief Minister said.
Some of the outsourcing employees who interacted with the Chief Minister through video conference expressed happiness with the setting up of APCOS and thanked him for keeping up his poll promise.
New Delhi, Aug 8 (IANS) Public sector banks would need to increase their provisioning buffer factoring in the incremental provisioning requirement on restructured loans and potential NPAs, a report said.
To discourage rampant and unviable restructuring, the RBI has now mandated that banks will be required to make high provisions at 10 per cent on restructured retail/corporate loans (20 per cent on corp loans for banks outside inter-creditor agreement).
According to analysts, higher provisioning cost would deter unwarranted restructuring. But, this would put pressure on the PSBs to accelerate the pace of increasing their provisioning buffer or disallow restructuring, even in genuine case of stress due to the Covid-19 pandemic.
"Assuming Covid-19-induced stressed loans at 10-15 per cent and at least 50 per cent restructured in the worst case, our rough calculations show systemic level immediate additional provisioning cost at 10 per cent could be 50-75 bps," Emkay Global Financial Services said in a report.
This would mean certain banks would fare better while restructuring loans under stress owing to the pandemic. While ICICI/Axis carry contingent provisions of 125-130 bps, HDFCB/KMB/IIB/RBL have around 60 bps. But large PSBs have contingent provisions of just 10-15 bps.
"Thus, we believe that some banks may have to further accelerate their provisioning buffer, factoring in the incremental provisioning requirement on restructured loans and potential NPAs," Emkay said in its report.
The provision required for restructured loans, however, provides for reversal of 50 per cent of provisioning on retail loans in case the borrower pays 20 per cent residual debt, and the balance 50 per cent on payment of another 10 per cent without slipping into NPA.