&w=3840&q=100)
Trade union strike: Daily life unaffected, sporadic violence in West Bengal
However, the trade unions claimed that the strike was successful, and a large number of workers abstained from work, impacting the postal, banking, insurance, and mining sectors.
Although the agitation remained by and large peaceful, reports of violence were received from pockets of West Bengal after Left-wing activists clashed with police and TMC supporters in various districts.
In a statement, a forum of 10 trade unions said there was a bandh-like situation in many areas of the country, like Puducherry, Assam, Bihar, Jharkhand, Tamil Nadu, Punjab, Kerala, West Bengal, Odisha, Karnataka, Goa, Meghalaya, and Manipur etc. Reports of partial bandhs were also received in many segments of Rajasthan, Haryana, Telangana, and Andhra Pradesh, among others.
There were industrial and sectoral strikes held in Madhya Pradesh, Maharashtra, Uttar Pradesh, Uttarakhand and Gujarat, it added.
They have called the one-day strike in support of their demand for doing away with four labour codes, contractualisation, privatisation of PSUs, increasing minimum wages to Rs 26,000 per month, as well as the demands of farmer organisations for minimum support price for crops based on Swaminathan commission's formula of C2 plus 50 per cent, and loan waiver for farmers.
The forum had last year submitted a 17-point demand to Labour Minister Mansukh Mandaviya.
The government has not been conducting the annual labour conference for the last 10 years, the forum claimed.
In the national capital, the markets across the national capital remained open on Wednesday, and the bandh had no impact on Delhi's commercial activity, said the Confederation of All India Traders (CAIT).
"All 700 markets and 56 industrial areas in Delhi are functioning as usual," said CTI chairman Brijesh Goyal.
The forum said the unions in Delhi, after taking out a procession in industrial areas, held a public rally at Jantar Mantar, which was addressed by national leaders.
There were reports of the strike impacting a few select services in Kerala, Jharkhand, and Puducherry.
The general strike was initially called for May 20 but was rescheduled, following the Pahalgam terror strike and subsequent Operation Sindoor. The ten trade unions are INTUC, AITUC, HMS, CITU, AIUTUC, TUCC, SEWA, AICCTU, LPF and UTUC.
The forum had claimed that more than 25 crore workers are being mobilised for the "general strike" in protest against the new labour codes, along with other issues.
Many parts of Kerala, ruled by the CPI(M), came to a standstill due to the strike. The strike has received strong support from trade unions and Left-leaning organisations in the state.
In Puducherry, privately operated buses, autos and tempos were off the roads due to the strike. The management of private schools declared a holiday as a precautionary measure, according to sources. Shops, establishments, vegetable and fish markets remained closed.
Vehicular movement in different parts of Odisha, including in the capital city of Bhubaneswar, has been affected on Wednesday due to the strike by trade unions and drivers' associations.
Commercial vehicles remained off the roads in Assam on Wednesday as members of several unions, including tea garden workers, staged demonstrations across the state.
Tourist taxi services between Assam and Meghalaya were suspended on Wednesday as part of a nationwide 'chakka jam' called by central trade unions and national federations.
The agitation impacted the normal movement of Haryana Roadways buses at some places.
In places like Hisar, Bhiwani, Kaithal and Kurukshetra, the normal movement of the state transport was impacted.
The roadway employees staged a sit-in protest at the bus terminals in support of the demands.
Normal life remained largely unaffected in Karnataka on Wednesday, though protests were held in various places in the wake of the strike.
All India Power Engineers Federation claimed that over 27 lakh power sector workers hit the road across the country to protest against privatisation.
The opposition CPI(M) on Wednesday claimed that the general strike called by 10 central trade unions and supported by the Left parties received an overwhelming response from the working classes in West Bengal.
State CPI(M) secretary Mohammed Salim claimed that the banking, insurance, transportation sectors and factory workers overwhelmingly participated in the strike.
Madhya Pradesh Bank Employees Association (MPBEA) chairman Mohankrishna Shukla claimed that around 40,000 employees in about 8,700 bank branches across the state joined the strike. They include staff of 11 public sector banks and some regional rural banks (RRBs).
Left-leaning bank unions -- All India Bank Employees Association, All India Bank Officers Association and Bank Employees Federation of India ( AIBEA, AIBOA and BEFI ) also supported the all-India strike, leading to disruption in services in some parts of the country.
However, there was no impact on private sector banks and many large public sector banks like SBI, PNB and BoB. Receipts and payment of cash, sending cheques for clearance, and all other routine work in the branches, where these unions had a strong presence.
"As per our information, clearing of cheques in the National Grids will be affected today due to the strike. About 4 crore cheques for about Rs 20 lakh crore were delayed by one day for clearance," AIBEA general secretary CH Vekatachalam told PTI.
As far as the insurance sector is concerned, the All India LIC Employees' Federation and All India Insurance Employees Association participated in the strike.
The impact was visible in three areas as far as LIC's operations were concerned due to the strike call, All India LIC Employees' Federation Joint Secretary P Vijay Kumar said.
Premium collections, claims settlement and policy servicing were impacted due to the strike, he added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Hans India
27 minutes ago
- Hans India
Ensure transparency in excise policy: CM
Vijayawada: Chief Minister N Chandrababu Naidu said that transparency will be the cornerstone of Andhra Pradesh's new excise policy. In a review meeting with excise department officials on Tuesday, he stressed zero tolerance for substandard or illicit liquor and ordered a complete ban on suspicious brands. Only national and international high-quality labels should be sold, he said, adding that public health was the top priority. Naidu criticised the previous government for allowing fake brands and linked the spread of drugs and ganja to politically backed 'J brands.' These brands, he noted, have now largely disappeared. Officials informed him that 68 per cent of the liquor market was once dominated by such anonymous brands, but the new policy has nearly wiped them out. Under the current liquor policy, state revenue has improved, and cross-border purchases have declined. Liquor prices in AP have also dropped for the first time — by Rs 10 to Rs 100 per bottle—saving consumers around Rs 116 crore monthly. The Chief Minister directed officials to integrate advanced technologies such as Artificial Intelligence and GPS to track liquor movement in real time from distilleries to retail outlets. He called for full digitalisation of transactions, a strict trace-and-track system, and analytics-based audits of inventories. Naidu also stressed the need to eradicate illegal outlets and monitor activities like ginger ale extractions and natu sara (illicit liquor) production using drones. The review meeting was attended by Excise Principal Secretary Mukesh Kumar Meena and other senior officials.


Hans India
28 minutes ago
- Hans India
Congress will rule TG until 2034: Revanth
Hyderabad: In a veiled attack against BRS president K Chandrashekar Rao and former minister G Jagadishwar Reddy, Chief Minister A Revanth Reddy said that bringing Godavari waters to Thungathurti was not as simple as 'pouring soda in a glass'. He took a swipe at the two leaders' claim of achieving that within three days. Revanth Reddy was talking after launching distribution of food security cards in Suryapet district's Tirumalagiri on Monday. He wondered why the BRS had failed to achieve the feat while being in power for close to a decade. 'That three-feet guy (Suryapet MLA Jagadishwar Reddy) is jumping six-feet to stop the Chief Minister from visiting Thungathurti. He is claiming that if given a chance they would bring Godavari waters to Thungathurti within three days. It is ironic that when people had given them 10 years, they were unable to bring water from Devadula?' he said. While cautioning Jagadishwar Reddy that in the next Assembly elections, BRS would face a complete rout in the erstwhile Nalgonda district, a similar fate awaits them in their last remaining bastion-Suryapet. 'Bringing water is not like pouring soda in a glass. You know only one skill, pouring soda in the master's (KCR) glass. You have managed to get your village the status of a mandal but failed to bring suitable offices. There is not even an MRO or a police station in this mandal,' Revanth Reddy said. Revanth Reddy underlined that the Congress party would remain in power until 2034 and make Telangana a $1- trillion economy. Countering the Opposition narrative that people were struggling in long queues to receive 'sanna biyyam', the Chief Minister emphasised that since the present government was providing ample supply of rice to beneficiaries, there was massive response and as a result there were long queues. 'Why didn't the BRS provide ration cards? Why was there no thought of offering a morsel to the poor? Our government is giving ration cards to three crore people. If there were belt shops in villages during the BRS regime, now people would line up for ration cards,' he asserted. He said that the present government had granted 5.6 lakh ration cards to new beneficiaries. 'We have registered the names of 26 lakh people in new ration cards. We have distributed rice to 3.10 crore people,' he explained. Over the government's commitment to women empowerment, the Chief Minister reiterated that women of Self Help Groups (SHG) were contributing to TGSRTC through their 'rental' initiative and the government was supporting them with Rs 21,000 crore by way of loans, through various banks. He announced that the 65 lakh women of SHGs would be receiving two saris each in the upcoming distribution programme. 'After 100 years following British enumeration, we conducted a caste census in Telangana and set an example for the country. Our agitations forced Prime Minister Narendra Modi to incorporate caste enumeration in the census,' he said.


Indian Express
41 minutes ago
- Indian Express
The MSME financier that delivered 40% stock returns: Can SBFC keep winning?
In India, millions of small business owners run shops, workshops, and tiny factories that keep local economies alive. These entrepreneurs often need quick, reliable funding to add inventory before a festival, fix a shopfront, or expand to a nearby town. But getting a loan from a big bank is rarely easy. Strict paperwork, rigid rules, and long approval times leave many of them stuck. This funding gap created a huge opportunity. SBFC Finance saw it early and built a business focused on these small business owners, offering simple, secured loans against property or gold. In the past year, SBFC's share price jumped 46%. With over Rs 8,700 crore in assets under management and a growing branch network, SBFC now stands out as a growth-focused lender. The big question is clear: can this careful, grassroots approach keep delivering, or is the easy growth already done? Understanding SBFC's business model At its core, SBFC Finance focuses on secured loans to micro, small, and medium enterprises (MSMEs). It works with small business owners in the Rs 5 lakh to Rs 30 lakh loan segment. This segment is estimated to have a market size of Rs 3.2 lakh crore and is growing at about 24% every year. By focusing on this niche, SBFC caters to traders, shopkeepers, and service providers in smaller cities who often lack formal income proof but have reliable local businesses. Strong growth in AUM and profits In FY25, SBFC's assets under management (AUM) grew 28% year-on-year to Rs 8,747 crore, up from Rs 6,822 crore in FY24. The secured MSME loan book, which forms approximately 83% of the total AUM, increased by 27% to Rs 7,249 crore. The gold loan segment makes up around 15-17% of the portfolio, offering another steady source of growth. Total income rose 28% to Rs 1,306 crore in FY25, led by higher interest income. Profit after tax grew even faster at 46%, reaching Rs 345 crore. Pre-provisioning operating profit also saw a strong 47% jump to Rs 532 crore. Efficiency and cost control SBFC's cost-to-AUM ratio improved from 5.34% in FY24 to 4.65% in FY25, showing better operating efficiency as the company scaled. The steady expansion of branches did not push up costs disproportionately. Instead, better productivity across branches helped maintain a lean cost structure. The company also maintained stable yields at around 17.8% while keeping the cost of funds at about 9.3%, resulting in a healthy spread of 8.4%. Controlled credit risk On the asset quality front, SBFC kept its gross non-performing assets (GNPA) ratio nearly stable at 2.74% in FY25, compared to 2.43% the year before. Net NPA was 1.51%, supported by a provision coverage ratio (PCR) of 45.7%. Moreover, over 85% of MSME borrowers had credit scores above 700. All loans had co-borrowers, usually a spouse or parent, which adds an extra layer of repayment responsibility and helps lower default risk. Branch expansion SBFC added 22 branches in FY25, taking its total count to 205 across 164 cities. This expansion helped the company reach deeper into Tier 2 and Tier 3 markets, where demand for small business credit remains strong. Despite this growth, SBFC kept operating expenses flat on a quarterly basis, signaling effective cost discipline. The average ticket size stayed around Rs 9.5 lakh for MSME loans and under Rs 1 lakh for gold loans. This ensures a granular, diversified loan book and avoids excessive exposure to any single large borrower. Why SBFC's strategy makes sense In banking and lending, the ultimate goal is to balance yield (the return you get from loans) against risk (the chance of losing money due to defaults). SBFC's focus on secured lending helps it achieve an attractive risk-adjusted return. By keeping the entire book secured, whether by property or gold, SBFC reduces the probability of loss given default (LGD). The loan-to-value (LTV) ratios, at about 43% for property-backed MSME loans and 62% for gold loans, provide substantial collateral buffers. Even if a borrower defaults, the company can typically recover most, if not all, of the principal by liquidating the collateral. In contrast, unsecured lenders face higher LGD and must rely heavily on borrower cash flows and good behaviour, which can be unpredictable. The secured structure directly lowers credit costs, as evident in SBFC's FY25 credit cost of around 0.97%, well within its guided range of 1% plus or minus 10 basis points. Healthy spread and strong profitability For any lender, the spread, the difference between the yield on loans and the cost of funds, is a key profit driver. In FY25, SBFC maintained a spread of about 8.4% (17.8% average yield minus 9.3% average cost of funds). This spread is higher than what many traditional banks or large housing finance companies achieve, often because they operate in lower-yield segments or face stiff pricing competition. SBFC's ability to hold this spread reflects its strong pricing power in the MSME secured segment, where formal credit options are limited and borrowers value quick, collateral-backed access. This healthy spread flowed directly into operating metrics: SBFC's return on average AUM was 4.5%, and return on tangible equity improved to 13.1% by the end of FY25. These figures suggest that the business model generates growth and converts it efficiently into shareholder value. Conservative underwriting without compromising growth More than 85% of MSME borrowers have credit scores above 700, an indicator that the company continues to prioritise borrower quality even as it scales. Further, every loan requires a co-borrower, often a spouse or close family member, which strengthens repayment incentives. This structure ensures moral pressure at the household level, which is a powerful risk mitigant in the Indian context where family reputation matters. Moreover, by focusing on small ticket sizes (average MSME loan of Rs 9.5 lakh and gold loans under Rs 1 lakh), SBFC avoids excessive exposure to any single borrower. This granular approach reduces concentration risk and protects the overall loan book from idiosyncratic shocks. Operating leverage playing out SBFC entered the public markets with a fully built-out cost structure, covering 16 states and 2 union territories. This upfront investment means that much of its fixed operational cost was already absorbed, allowing new branches and AUM growth to feed directly into profitability. The result? The cost-to-AUM ratio fell from 5.34% in FY24 to 4.65% in FY25, while operating expenses remained largely flat quarter-on-quarter despite branch additions. As the loan book grows, each incremental rupee of revenue carries a higher margin, thanks to this operating leverage. This trend is essential for investors seeking sustainable profit growth beyond just headline AUM expansion. Collections and asset quality control In FY25, many lenders across India, especially those with heavy exposure to unsecured personal loans or small-ticket consumer credit, saw a noticeable rise in non-performing assets (NPAs). Rising household leverage, local economic stress in certain states, and stricter regulatory scrutiny led to higher delinquencies. Several NBFCs and fintech lenders reported a sharp uptick in early-stage defaults (1+ DPD) and final slippages into GNPA buckets. Against this backdrop, SBFC's asset quality performance stands out. Despite expanding its loan book by 28% year-on-year, SBFC kept its gross NPA ratio largely stable at 2.74%, only slightly higher than 2.43% in the previous year. The net NPA figure also stayed comfortable at 1.51%, supported by an improved provision coverage ratio of 45.7%. The company combines technology tools like daily delinquency tracking, automated reminders, and account aggregator data with a robust in-person follow-up system. If a payment is missed, the process moves quickly from calls to field visits to legal escalation when required. While there was a slight increase in the 1+ day past due bucket (in part due to temporary stress in regions like Karnataka), management indicated these early delinquencies were being resolved and did not materially flow into final NPAs. Diversified funding and strengthening the balance sheet On the liability side, SBFC has a diversified borrowing mix, including public and private sector banks, financial institutions, and non-convertible debentures. Its improved credit ratings (AA–stable) and inclusion in the MSCI Global Small Cap Index signal enhanced credibility and investor confidence. A strong capital adequacy ratio (CRAR) of 36.1% gives SBFC a comfortable cushion to support future growth without immediate need for dilution or excessive leverage. Technology as a scalable enabler Banking parlance often refers to the 'cost-to-serve' metric, the expense involved in originating, processing, and servicing a loan. By heavily investing in technology (like APIs, account aggregator integration, and fully digital gold loans), SBFC has reduced its cost-to-serve and improved turnaround times. For example, the fully digital gold loan process allows disbursal to be completed within minutes, reducing manual intervention and human error, while freeing up staff capacity. Over time, these efficiencies contribute directly to margin expansion and enable rapid scaling without proportionate headcount or cost increases. Valuation: stretch or opportunity? On one hand, the 40% stock rally has pushed valuation multiples up, suggesting that the easy gains may be behind. At elevated valuations, execution risk becomes more closely watched. Any slip in asset quality, slower branch productivity ramp-up, or macro disruptions could affect market confidence and lead to corrections. On the other hand, if SBFC can maintain 25-30% annual AUM growth and continue to improve profitability metrics, current valuations can look reasonable in hindsight. Many niche lenders in India have historically commanded premium multiples for long periods, provided they showed consistent execution and conservative risk management. For retail investors, SBFC represents a story of disciplined growth in a large, underserved market. However, it is important to remember that lending is a cyclical business and is always vulnerable to local economic or policy changes. Investors should continue to watch asset quality metrics, branch-level profitability, and how effectively SBFC manages credit costs as it scales. In summary, while the stock may no longer be the hidden gem it once was, SBFC's approach suggests it can still deliver steady value over the long term if it stays true to its disciplined strategy. Note: This article relies on data from annual and industry reports. We have used our assumptions for forecasting. Parth Parikh has over a decade of experience in finance and research and currently heads the growth and content vertical at Finsire. He holds an FRM Charter and an MBA in Finance from Narsee Monjee Institute of Management Studies. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.