State Bank of India
Amidst the global tension, the government has started preparations to implement a policy to reduce expenses for public sector banks, insurance companies and financial institutions. The Department of Financial Services of the Finance Ministry has issued instructions to all government institutions to reduce expenditure. This may impact institutions like the country’s largest public sector bank, State Bank of India (SBI), Bank of Baroda and Life Insurance Corporation of India (LIC). To deal with the energy crisis arising out of tension in Hormuz, these institutions have also been asked to shift towards EV.
According to Reuters report, according to the order issued by the government, now most of the meetings and reviews will be conducted through video conferencing only. Officials will be allowed to hold physical meetings only in extremely urgent cases. Along with this, it has also been asked to control the foreign trips of Chairman, Managing Director and CEO level officials. The government wants officials to participate in foreign programs and meetings in a virtual manner as much as possible.
Under the cost cutting campaign, emphasis has also been laid on adopting electric vehicles instead of petrol and diesel vehicles. The ministry has asked the institutions to replace conventional rented vehicles with electric cars in a phased manner. This process can be implemented in head offices as well as branch offices.
Decision taken amid global tension
This step of the government has come at a time when economic uncertainty is increasing at the global level. The ongoing tension in the Middle East and rising crude oil prices have increased the pressure on India’s economy. In view of challenges like rising inflation, slowing economic growth and pressure on the current account, the government is focusing on controlling expenditure.
Meanwhile, the Indian rupee is also under constant pressure and has been among the weak currencies of Asia this year. In such a situation, the government wants to reduce expenditure through financial discipline. Many states have already started taking steps like implementing work from home for employees two days a week.
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