Volume XXXI Number 46 August 15, 2016

Weeklies

BI – Business India

BusW – Business World

BusT – Business Today

CMar – Capital Market

EPW – Economic and Political Weekly

SE – Southern Economist

Eco – Economist

For(Asia) – Fortune AsiaCI – Corporate India

Newspapers

BS – Business Standard

ET – Economic Times

FE – Financial Express

FT – Financial Times

H – Hindu

HBL – Hindu Business Line

HT – Hindustan Times

IE – Indian Express

TI – Times of India

Mint – Mint

Classifications

Economy Banking Agriculture & Rural Development Industry Small Scale Industry

International Economics Labour & Personnel Management Management Miscellaneous Books

CONTENTS

A. ECONOMY 1

B. BANKING 3

C. AGRICULTURE & RURAL DEVELOPMENT 21

D. INDUSTRY 21

E. SMALL SCALE INDUSTRY 22

F. INTERNATIONAL ECONOMICS 23

G. MANAGEMENT 23

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BANKERS' BRIEF Vol. XXXI No. 46August 15, 2016

ECONOMY"Financial conditions show healthy rise in Q1: survey: Banks, financial institutions expect cost of

funds to fall, liquidity index to rise" – A survey of banks and financial institutions has pointed to a healthyimprovement in the country's financial conditions in April-June quarter, with its index rising to 61.1 from 47.8in the previous quarter. A report. – (HBL Aug 8, 2016 p 16)

"GST will boost growth: Kaushik Basu: Urges govt to make sure trucks have uninterrupted runacross States" – GST will be the biggest benefit for Indian growth and it will help cut down transactioncosts, according to Kaushik Basu, Chief Economist and Senior Vice-President, World Bank. He urged thegovernment to seize this opportunity to make truck movement faster. A report. – (HBL Aug 6, 2016 p 4)

"Statsguru: Economic indicators suggest a mixed picture" – While headline gross domestic productnumbers suggest a recovery is underway, other macroeconomic indicators paint a mixed picture. A graphicalreport. – (BS Aug 8, 2016 p 4)

"We could have done better had we changed course earlier: C Rangarajan" – Excerpts from an interviewwith former RBI governor, Dr C Rangarajan. – (HBL Aug 10, 2016 p 4)

Acharya, Shankar – "One-eyed king?" – India lags behind major economies on several factor. The recentreforms are only the beginning of a long road to prosperity. An article. – (BS Aug 11, 2016 p 9)

Balakrishnan, Ajit – "Indian salaryman: Changing times" – The middle class has subtly maneuveredwithout any strikes or protests for a share of the economic pie. Will this change soon? An article. – (BS Aug9, 2016 p 11)

Edwin, Tina – "India's reinvention is a work in progress" – There is much to be proud of about theevolution of the economy. But, it's time for policymakers to up their game. An article. – (HBL Aug 10, 2016 p 4)

FEMAZaveri, Bhargavi and Pandey, Radhika – "Treat the disease, not just the symptoms" – Easing the

Reserve Bank of India regulation on put options would be a quick hack to solve a temporary problem. Whatneeds to be fixed is the fundamental design of the Foreign Exchange Management Act. An article.– (BS Aug 11, 2016 p 8)

FOREIGN EXCHANGE RATE"FCNR deposit redemption next month will go smoothly" – FCNR (B) deposits, taken by banks in 2013

under a special scheme, maturing from September, the RBI once again reiterated that it will be monitoring themarkets and do what is necessary to minimise volatility in the exchange rate. A report. – (HBL Aug 10, 2016 p 8)

FOREIGN EXCHANGE RESERVES"Forex reserves hit life-time high at $365.49 billion" – Country's foreign exchange reserves rose by

$2.81 billion to reach a life-time high of $365.49 billion in the week to July 29, helped by rise in foreigncurrency assets, according to the Reserve Bank. Foreign currency assets (FCAs), a major component of theoverall reserves, rose $2.79 billion to $341.04 billion in the reporting week, RBI data showed. – (IE Aug 6,2016 p 13)

GST"April 2017 deadline for GST can be met" – Edited excerpts from an interview with Shaktikanta Das,

Secretary, Economic Affairs. – (Mint Aug 5, 2016 p 28)

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"Demand for a cap on the GST rate is a red herring: Rajeev Chandrasekhar" – An exclusive interviewwith Rajeev Chandrasekhar, Member of the Rajya Sabha's Select Committee on GST. – (HBL Aug 5, 2016 p 6)

"Don't kill GST with many exemptions: Exemptions raise the rate and break the chain" – An editorial.– (ET Aug 9, 2016 p 20)

"From govt's side, I am confident... but difficult to give guarantee on deadline" – Excerpts from aninterview with Hasmukh Adhia, Revenue Secretary. – (HT Aug 5, 2016 p 16)

"A giant step to transform India" – A gamechanger or a millstone? Will GST propel India to a new era ofhigh growth or will it suffocate ease of doing business through cumbersome rules? A special session of ETMarkets Roundtable saw six experts laud GST as a gamechanger but many were sceptical about implementationfrom April 2017. The Govt should do more to clarify the rules and bring the industry on board. A roundtablediscussion. – (ET Aug 11, 2016 p 9)

"GST a big win for 'Team India', will end tax terrorism: Modi: Both Houses give nod to ConstitutionalAmendment Bill; action shifts to States" – The historic constitutional amendment that would pave theway for a common goods and services tax (GST) system got Parliament's nod after the Lok Sabha agreed tothe amendments moved to the Bill in the Rajya Sabha last week. AIADMK, the only party to oppose the Bill,staged a walk-out. With this, the action now shifts to the States, as the Constitutional Amendment Bill requiresthe nod of at least 50 per cent of State assemblies for it to become law. A report. – (HBL Aug 9, 2016 p 1)

"GST may burn hole in middle class' pocket" – Much of the discussion on the potential impact of the goodsand services tax (GST) on inflation has tended to focus on the rise in headline Consumer Price Index (CPI).But, as the increase in tax rates will vary across product categories, the actual impact on the end-consumerwill depend on the composition of his consumption basket. Assuming the revenue neutral rate (RNR) worksto be around 17-18 per cent, a standard rate of 22 per cent, with a lower rate of 12 per cent for some itemsand a higher rate of 35 per cent for others, the sharpest tax increases are expected in categories such ashealth, clothing and footwear, medicines and electricity, according to the report on RNR, prepared by theChief Economic Advisor (CEA). – (BS Aug 9, 2016 p 4)

"GST regime to boost GDP by 2%" – Excerpts from an interview with Adi Godrej, Chairman, Godrej Group.– (HBL Aug 5, 2016 p 6)

"A higher rate will be inflationary: P Chidambaram explains why the GST rate should not exceed 18 percent" – Excerpts from an interview with P Chidambaram, Former Finance Minister. – (H Aug 8, 2016 p 11)

"Indian business hails approval of long-awaited national tax system" – India's parliament has approveda long-awaited overhaul of the country fragmented tax system to create a genuine single market in one of themost significant reforms to the Indian economy since liberalisation began 25 years ago. The bill, debated inNew Delhi for almost a decade, will amend the constitution to permit replacing the current patchwork ofnational, state and local levies with a single, unified value added tax system. Economists believe modernisingIndia's existing antiquated, inefficient tax system will significantly stimulate the economy, potentially adding1.5 to 2 percentage points to GDP growth a year.A report. – (FT Aug 4, 2016 p 1)

"Let the GST Bills come and we'll tell you what bargaining power we have" – Excerpts from an interviewwith P Chidambaram, former Finance Minister. – (HT Aug 5, 2016 p 15)

"Lower the GST rate, lower will be the inflation: CEA" – An interview with Arvind Subramanian, ChiefEconomic Adviser. He said there is no perfect system of GST. It evolves over time. – (HBL Aug 5, 2016 p 4)

"Onus of GST implementation will be on entire political system" – Edited excerpts from an interviewwith Arun Jaitley, Finance Minister. – (Mint Aug 6, 2015 pp 1, 2)

"We can avoid inflationary pressure from GST" – An interview with Hasmukh Adhia, Revenue Secretary.– (FE Aug 6, 2016 p 2)

"Will try to meet targeted date on GST: Meghwal" – Minister of State for Finance, Arjun Meghwal re-iterated the government's intention to introduce the GST from April, 2017. The roadmap has been announced,meetings will be held across the country with industry and small traders to clarify their doubts on GST.– (HBL Aug 10, 2016 p 5)

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Jethmalani, Harsha – "What will be the impact of GST on inflation?" – An article. – (Mint Aug 5, 2016 p 18)

Kapoor, Rana – "GST: Lubricating India's economic gears: It will also reduce the compliance scrutinyfor inter-state movement of goods, which is currently a major source of concern" – A centralisedand standardised GST registration would help in creation of an ecosystem conducive to start-ups. An article.– (FE Aug 6, 2016 p 8)

Shroff, Shardul – "Making GST work for India Inc" – Businesses have only 240 days to realign theirsystems and processes in line with the new indirect tax regime in the country. Experts share their views onthe steps that will help them become GST-ready. An article. – (BS Aug 8, 2016 Supl. p 3)

INFLATION"How the inflation threshold formula was arrived at: The true inflation-target bullseye" – India's

inflation target of four per cent (plus/minus two per cent) might look minuscule for a country that has battleddouble-digit inflation not too far back. Most countries - both developed and emerging markets - that haveadopted inflation targeting have a similar benchmark. A report. – (BS Aug 11, 20169 p 4)

BANKING

GENERALShastri, Paromita – "King's sermons: Former Bank of England governor gives sensible advice on

how to end the alchemy of money and banking" – The End of Alchemy: Money, Banking, and the Futureof the Global Economy by Mervyn King. A book review. – (FE Aug 7, 2016 p 5)

ANDHRA BANK"Andhra Bank net dives 85% in Q1 on higher provisions" – Andhra Bank's net profit decreased 84.7 per

cent at Rs.31 crore in the first quarter ended June 30, 2016, against Rs.203 crore in the corresponding quarterof the previous financial year. The net profit came down largely on account of steep rise in non-performingassets (NPAs) and subsequent provisions, according to Suresh N Patel, MD & CEO, Andhra Bank. The netand gross NPAs increased to 6.21 per cent (2.99 per cent) and 10.30 per cent (5.75 per cent), respectively.The total income grew by 7.2 per cent at Rs.4,855 crore (Rs.4,529 crore), while net interest income increased9.7 per cent at Rs.1,269 crore. A report. – (HBL Aug 8, 2016 p 13)

AXIS BANK"Axis Bank ties up with Freecharge for unified payments app" – Axis Bank said it is ready with a Unified

Payments Interface (UPI) app, while it also announced a tie-up with digital payments company Freechargefor it. A report. – (HBL Aug 6, 2016 p 10)

BANDHAN BANK"Bandhan Bank opens eight branches; keen on expansion" – Bandhan Bank, which commenced operations

as a universal bank in August last year, opened eight new branches, taking its branch network to 700. Of theeight newly-opened bank branches, seven are in West Bengal and one is in Uttar Pradesh. Since its launch,the bank has mobilised close to Rs.15,000 crore in deposits and its loan book currently stands at Rs.16,000crore. A report. – (FE Aug 9, 2016 p 10)

BANK OF BARODA"Bank of Baroda celebrates 109th Foundation Day" – Bank of Baroda celebrated its 109th Foundation

Day on July 20, 2016. As part of the celebrations, staff members of the Bank had a walkathon in Marina,starting from light House, highlighting 'Financial Inclusion to All'. The theme contains the focus of the Nation- Banking accounts to all, Insurance facility to all and Pension to all. P Narasimha Rao, General Manager ofthe Bank's Tamil Nadu & Kerala Zone, flagged off the walkathon. – (H Aug 7, 2016 p 9)

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"BOB inaugurates e-Lobby at Hyderabad" – Bank of Baroda's K Venkateswarlu GM, Zonal Head -Karnataka, AP & Telangana inaugurated the e-Iobby in Hyderabad. E Lobby provides the facilities of cashwithdrawal, cash deposit, passbook printing, bill/utility payments, printing of mini statements, cheque depositsunder CTS etc. – (ET Aug 8, 2016 p 6)

CENTRAL BANK OF INDIA– INTEREST RATES

"Central Bank revises interest rates on FCNR-B deposits" – The Bank now offers interest of 2.18percent for USD Deposit of 5 Years, 1.62 percent for GBP Deposit, 0.95 percent for Euro deposit, 2.07percent for Canadian dollar deposit & 3.00 percent for Australian dollar deposit. These rates are revisedbased on the rates announced by FEDAI on 29th July and is valid till 31st August, 2016. – (ET Aug 8, 2016 p 6)

CITY UNION BANK"City Union Bank Ltd.: Reviewed financial results for the quarter ended 30th June, 2016" – An

advertisement feature. – (HBL Aug 11, 2016 p 20)

"City Union Bank profit grows 11% to Rs.124 crore" – City Union Bank (CUB) reported 11 per cent risein its net profit at Rs.124 crore for the quarter ended June 30, 2016 compared to Rs.112 crore in the year-agoperiod, on the back of 20 per cent growth in operating profit. CUB operating profit grew 20 per cent atRs.234 crore compared with Rs.197 crore earlier, aided by rise in net interest income, which went up 25 percent at Rs.280 crore from Rs.224 crore in Q1 of the previous fiscal. Net interest margin (NIM) stood at 4.07per cent compared with 3.95 per cent. Advances grew 19 per cent to Rs.21,216 crore (Rs.17,901 crore),while total deposits went up 11 per cent to Rs.27,936 crore (Rs.25,111 crore). Its net NPAs went up to 1.59per cent as of June this year from 1.53 per cent in the March quarter and 1.32 per cent a year-ago. Theprovision coverage ratio stood at 60.23 per cent as on June 30, 2016. – (HBL Aug 11, 2016 p 10)

CORPORATION BANK"Corp Bank's new insurance scheme" – Jai Kumar Garg, Managing Director and Chief Executive Officer

of Corporation Bank, launched 'group credit life insurance scheme' of LIC of India. – (HBL Aug 6, 2016 p 10)

"Corporation Bank Q1 net down 82%: Rising NPAs and provisioning weigh on performance" –Corporation Bank registered a net profit of Rs.35.92 crore in the first quarter of 2016-17 against a profit ofRs.204.26 crore in the corresponding period of the previous fiscal, a decline of 82.41 per cent. The gross andnet NPAs of the bank stood at 11.52 per cent (5.43 per cent) and 7.22 per cent (3.55 per cent), respectively,during the period. He said that total provision was Rs.761.28 crore and operating profit was Rs.797.20 croreduring the quarter. – (HBL Aug 11, 2016 p 10)

DHANLAXMI BANK"Care Ratings downgrades Dhanlaxmi Bank's upper tier II bond to default" – In a first for any bank in

India, domestic rating agency Credit Analysis and Research Ltd, or CARE Ratings, downgraded some bondsof Dhanlaxmi Bank Ltd to default category. – (Mint Aug 6, 2016 p 3)

"Dhanlaxmi Bank says it expects Rs.120 cr equity infusion this week" – Dhanlaxmi Bank Ltd is expectingRs.120 crore in equity infusion from its existing shareholders this week to help bolster its weak capitalposition, according to two people in the know. – (Mint Aug 9, 2016 p 22)

ICICI BANK"ICICI Bank reports 25% surge in total stressed loans for FY16: Worries continue slow economic

recovery & new defaulting accounts take stressed assets to Rs.39,190 crore last fiscal, fromRs.31,103 crore a year earlier" – ICICI Bank's total stressed loans rose 26% last fiscal amid sloweconomic recovery and fresh additions to defaulters' list of accounts on the Reserve Bank of India's orderwhich were earlier recognised as standard accounts. Stressed assets, the aggregate of defaulters and

– 5 –

restructured loans, rose to Rs.39,190 crore last fiscal, from Rs.31,103 crore a year earlier. After provisioningfor potential losses it rose 20% from a year earlier, filing with the US regulators show. These numbers arehigher than the annual presentation made by the bank while declaring their results in May. A report.– (ET Aug 5, 2016 p 11)

"ICICI Bank's loan quality will remain under pressure over next one year: S&P" – S&P GlobalRatings lowered ICICI Bank's standalone credit profile to 'BBB'- from 'BBB' saying the private bank's assetquality will remain under pressure over the next one year. It also affirmed 'BBB'- long-term and 'A-3' short-term foreign currency issuer credit ratings with stable outlook. Issue rating on the bank's outstanding seniorunsecured notes and Basel-II compliant Tier-II hybrid notes was also affirmed. A report. – (HBL Aug 6,2016 p 10)

IDFC BANK"Former RBI deputy governor Sinha joins IDFC Bank board" – IDFC Bank former deputy governor of

Reserve Bank of India Anand Sinha has joined its board as an independent director, while Vinod Rai hasstepped down because of his appointment as chief of Banks Board Bureau. – (FE Aug 6, 2016 p 10)

"Vinod Rai steps down from IDFC Bank's board" – Former Comptroller and Auditor General (CAG) ofIndia Vinod Rai has stepped down from private sector lender IDFC Bank's board from August 1. Thedecision is to avoid conflict of interest. A report. – (H Aug 5, 2016 p 15)

INDIAN BANK"Indian Bank conducts Intensive Recovery campaign" – Indian Bank is conducting Intensive Recovery

Campaign and as a part of it, Bank is planning to conduct recovery Rally. Employees of all cadre, fromBranches, Zonal Offices and Corporate office will be converging at a vantage point and proceed to thedefaulting borrower's place with Banners and Placards. The entire programme was conducted in a verypeaceful and orderly manner. Bank has decided to adopt this Gandhian way to create awareness in thesociety. This Mega Recovery Campaign was scheduled fora fortnight from July 30 to August 12, 2016, onesuch Rally was organised at various centres in Tamil Nadu on July 31, 2016. The rally was headed by SeniorExecutives of the Bank. – (H Aug 7, 2016 p 9)

"Indian Bank in pact with Staragri for farm loan" – Indian Bank has entered into an agreement with StarAgriwarehousing and Collateral Management Ltd. (Staragri) for extending produce marketing loan to thefarmers. – (FE Aug 6, 2016 p 11)

"Indian Bank launches customer friendly new tech products" – Staff of Indian Bank have launched theCustomer-friendly 5 new tech products at Corporate Office, Chennai. The Five Tech products are 'IBCustomer App', 'M-Passbook', 'Statement of account through e-mail', 'Value added services through ATMs'and 'Value added services through Mobile application (IndPay)'. – (HBL Aug 5, 2016 p 2)

INDIAN OVERSEAS BANK"IOB reports Rs1,450 cr loss in first quarter" – IOB has reported a net loss of Rs.1,450 crore for the

quarter ended June 30, 2016. However, the bank's operating profit was 24 per cent higher at Rs.690 crore. Areport. – (HBL Aug 10, 2016 p 9)

JAMMU & KASHMIR BANK"J&K Bank Q1 profit down 86% at Rs.23 cr" – Jammu & Kashmir Bank has reported a 85.6% plunge in

net profit at Rs.22.88 crore for the first quarter ended June 30. – (FE Aug 11, 2016 p 10)

"J&K Bank: Extract of standalone reviewed financial results for the quarter ended 30th June, 2016"– An advertisement feature. – (FE Aug 11, 2016 p 24)

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KARNATAKA BANK"Karnataka Bank launches new app" – Karnataka Bank has launched mobile app 'KBL POS Manager' for

its point-of-sale (POS) merchant establishments. – (HBL Aug 5, 2016 p 10)

PUNJAB & SIND BANK"Punjab & Sind Bank posts Rs.53.35-crore profit in Q1" – Punjab & Sind Bank reported a 23.60 per cent

increase in net profit at Rs.53.35 crore in the first quarter ended June 30, as against Rs.43.16 crore in theyear-ago quarter. Net interest income was up 8.52 per cent year-on-year in the reporting quarter at Rs.561.13crore. Other income rose 9 per cent to Rs.121.59 crore. Provisions towards bad loans increased to Rs.207crore (Rs.199 crore in the year-ago quarter). Gross non-performing assets (GNPAs) jumped to Rs.4,566crore (Rs.3,300 crore). In percentage terms, GNPAs rose to 7.23 per cent of total loans (5.17 per cent in theyear-ago quarter). – (HBL Aug 11, 2016 p 10)

"Punjab & Sind Bank: Reviewed un-audited financial results for the quarter ended 30th June, 2016"– An advertisement feature. – (FE Aug 11, 2016 p 24)

PUNJAB NATIONAL BANK"Debt recast scheme not a tablet to cure aches" – Edited excerpts from an interview with Usha

Ananthasubramanian, MD & CEO, Punjab National Bank. – (ET Aug 11, 2016 p 15)

"Peaceful NPA Recovery Activity by PNB" – Punjab National Bank - the largest nationalized bank in Indiaa one of its kind Peaceful NPA Recovery Activity in Chennai on July 23, 2016 at the residence of various highticket defaulting borrowers requesting them to clear dues payable to the bank in order to safe guard depositors'money. Nasim Ahmad, Circle Head of the Bank in Chennai Circle and P C Bansal, Deputy Zonal Head, PNBSouth Zone along with other senior officers of the bank participated in the programme. – (H Aug 7, 2016 p 9)

RBL BANK (RATNAKAR BANK)"Early investment in MSME should help us: RBL Bank" – An interview with Rajeev Ahuja, Head -

Strategy, Retail and Financial Inclusion, RBL Bank. – (ET Aug 11, 2016 p 10)

"RBL Bank looks to raise Rs.1,211 cr through IPO" – RBL Bank, which will be the first private lender togo public in a decade, has set a price band of Rs.224-225 for the issue. – (Mint Aug 11, 2016 p 7)

SOUTH INDIAN BANK"South Indian Bank to raise Rs.500 cr to augment biz capital" – South Indian Bank will raise Rs.500

crore by issuing debt securities, long-term infrastructure bonds on a private placement basis to augmentbusiness requirements. – (FE Aug 5, 2016 p 12)

STATE BANK OF BIKANER AND JAIPUR"SBBJ and Banasthali University jointly launch Navjyoti" – The State Bank of Bikaner and Jaipur (SBBJ)

and Banasthali University have jointly launched 'Navjyoti', the first of its kind of project to promoteentrepreneurship revolution in India. The bank has donated a generous amount Rs.135 lakh to the Universityunder its corporate social responsibility. – (ET Aug 8, 2016 p 6)

STATE BANK OF HYDERABAD"SBH reports 89% decline in net profit" – State Bank of Hyderabad (SBH) has posted an 89% decline in

its net profit for the quarter ended June to Rs.28 crore, compared with Rs.251 crore in the year-ago period.The total provisioning stood at Rs.882 crore from Rs.461 crore. The bank said the operating profit showed agrowth of 27.62% on a year-on-year basis to reach Rs.910 crore. – (FE Aug 9, 2016 p 10)

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STATE BANK OF INDIA"SBI enlightens BRICS Nations bankers on financing in India" – Strategic Training Unit of State Bank

of India, (STU) played host to delegates from BRICS Nations as part of 'Skill Development and OrientationProgramme' for developed banks of BRICS Nations. The visit was jointly organized by Exim Bank of India& Centre for Advanced Financial Research and Learning (CAFRAL). – (ET Aug 8, 2016 p 6)

"SBl launches home loan products" – Continuing with the long standing tradition of introducing innovativeHome Loan products, State Bank of India has introduced two new Home Loan products 'SBI PrivilegeHome Loan' for Government Employees and 'SBI Shaurya Home Loan' for Defence Personnel. Under thenew schemes, employees of Central/State Governments, Defense Forces, PSBs, PSUs of Central Governmentand other individuals) with pensionable service will be offered schemes tailored to their specific needs whichhelp them to purchase a spacious / luxurious home without stretching their post-retirement finances.– (H Aug 7, 2016 p 9)

"State Bank of India and Oracle India Collaborate on Digital Skills Programme" – State Bank of India(SBI) and Oracle India have launched the 'D-Change' programme. The initiative supports Prime MinisterNarendra Modi's 'Skill India' and 'Digital India' plan and furthers Oracle's commitment to expand within theregion. – (FE Aug 5, 20166 p 5)

"Wherever there is backwardness, we have the responsibility" – Excerpts from an interview with ArundhatiBhattacharya, Chairman, State Bank of India. When the bank was made into the SBI, the idea was verysimple: we needed to expand the reach of the bank so as to include the very many segments that were notincluded. And I think the SBI has done a good job. – (HBL Aug 11, 2016 p 4)

Law, Abhishek – "Tales from the vaults" – An article. – (HBL Aug 11, 2016 p 4)

Merwin, Radhika – "For SBI, big is bountiful" – With a rich 200-year legacy, India's biggest bank maps thecountry financial history, serving erstwhile princes and plebeians alike. An article. – (HBL Aug 11, 2016 p 4)

SYNDICATE BANK"Syndicate Bank organises analysts meet" – Arun Shrivastava, MD & CEO of Syndicate Bank addressed

the analysts on the occasion of Analysts' Meet held at Mumbai on deliberation of financial results of the Bankfor quarter ended June 2016, on 29th July. – (ET Aug 8, 2016 p 6)

"Syndicate Bank's new products" – Syndicate Bank has launched new products to ease customer transactions.Arun Shrivastava, MD & CEO, Syndicate Bank, launched fund transfer based on 'Aadhaar Number throughNUUP', using an ordinary mobile phone without internet connection. The bank also launched 'Fund Transferthrough IMPS' at any branch for instantaneous credit to any bank account. – (HBL Aug 9, 2016 p 10)

UCO BANK"UCO Bank hopes to halt fresh NPA slippages from Q4" – An interview with Ravi Krishan Takkar, MD

and CEO, UCO Bank. UCO Bank reported yet another dismal quarter with a net loss of Rs.440.57 crore inApril-June, as asset quality continues to deteriorate even though losses have narrowed on a quarterly basis.Gross NPAs have gone up to 17.2 per cent of advance and touched Rs.22,000 crore in Q1. Similar is thepicture for net NPAs. He expects the industrial scenario to improve from the third quarter and NPA situationto improve. Also he said monetary transmission will also improve as banks lower their cost of funds. Thedecline in MCLR has contributed to better transmission. But we are waiting for our cost of funds to comedown. – (HBL Aug 11, 2016 p 6)

"UCO Bank puts 22 NPA a/cs up for sale" – UCO Bank has put non-performing assets (NPAs) with a totaloutstanding amount Rs.1,767 crore up for sale to clean up its balance sheet. The bank invited expression ofinterests (EOIs) from asset reconstruction companies (ARCs), banks, financial institutions and eligible NBFCsfor the proposed sale of its 22 NPA accounts. A report. – (FE Aug 9, 2016 p 10)

"UCO Bank reports Rs.441 crore loss on higher provisioning" – Increased slippages and higherprovisioning saw UCO Bank report a loss of Rs.441 crore for quarter ended June 2016. Fresh slippages shotup nearly 150 per cent to Rs.3,316 crore in the first quarter of the fiscal. A report. – (HBL Aug 10, 2016 p 9)

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UNION BANK OF INDIA"UBI Q1 net dips 68% to Rs.167 cr" – Union Bank of India (UBI) reported 68 per cent fall in net profit to

Rs.167 crore in the first quarter ended June 30, on higher provisions for bad loans. The bank had reported aprofit after tax of Rs.519 crore in the same period last year. 'The de-growth in profit was on account ofincrease in provisions,' according to the bank's chairman and managing director Arun Tiwari. The provisionfor bad loans increased to Rs.1,347 crore in the quarter from Rs.479 crore in the same period last year.– (IE Aug 7, 2016 p 15)

YES BANK"YES Bank reinventing workspace for millennials" – YES Bank is designing its upcoming facility in

Chennai to encourage more collaboration among its growing millennial workforce. With the average age ofemployees at 30-31 years, Yes Bank claims to have one of the youngest workforce in the sector today. Withthat in mind, it wants to renew its focus on operations and service delivery, starting with the new facility inChennai, where it expects millennials to form a significant portion of its employee base. A report. – (ET Aug5, 2016 p 10)

"Yes Bank to tank up on $1 b via rights issue for growth drive" – Yes Bank is set to launch a $1-billionshare sale to institutional investors in what would be the biggest such exercise this year to support its expansionand take advantage of an expected economic revival in India. A report. – (ET Aug 11, 2016 p 1)

"YES Bank: Conferred best bank award for cyber defence among mid-sized banks at the IDRBTBanking Technology Excellence Awards 2016" – An advertisement feature. – (HBL Aug 5, 2016 p 1)

BALTIC COUNTRIESMilne, Richard – "Baltic banking sector frets about reliance on Nordic ownership" – An article.

– (FT Aug 4, 2016 p 12)

CHINA"Beijing regulator warns groups not to misuse the word 'bank'" – China's banking regulator has warned

companies not to use the word 'bank' in their names following a series of scandals and multibillion-dollarinvestment scams. A report. – (FT Aug 5, 2016 p 4)

EUROPE"European banks suffer fresh beating" – Shares in Europe's big banks suffered further heavy reverses as

investor confidence was drained by the strain of negative interest rates and the lingering crisis in Italybanking sector. A report. – (FT Aug 3, 2016 p 1)

"ING leads European bank rebound" – Dutch lender ING soared 8.2 per cent after quarterly results smashedexpectations. The UK's Standard Chartered rose 4.2 per cent after making good progress on costs andrevenues. A report. – (FT Aug 4, 2016 p 11)

GERMANY"German banks suffer chronic lack of profitability" – In Europe's latest set of stress tests, German lenders

posted four of the 10 biggest falls in capital strength in the adverse scenario modelled as part of the exercise.Unlike in Italy, the big issue for German banks is not bad loans. Some, such as the Landesbanken, HSHNordbank and NordLB, are battling with exposure to the shipping industry. But for the sector as a whole, theratio of non-performing loans to total loans was just 3.1 per cent in March, below the EU average of 5.7 percent, and a far cry from Italy's ratio of 16.6 per cent, according to the European Banking Authority. A report.– (FT Aug 4, 2016 p 14)

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JAPAN– BANK OF JAPAN

"BOJ board divided on scope of monetary easing" – Stark divisions in the views of Bank of Japan (BoJ)board members were highlighted, with some defending unlimited easing of monetary policy and others arguingthe BoJ had done enough - to the point of driving big market swings and sapping bond market liquidity. Thedebate underscores the challenges the central bank face as it attempts to address stagnant price growth andentrenched economic weakness with a dwindling set of policy tools. A report. – (BS Aug 9, 2016 p 6)

UK"BoE uses stimulus to beat Brexit blues" – The Bank of England swung into action against the economic

shock from Britain's vote to leave the EU, cutting interest rates to near nothing and unleashing billions ofpounds to cushion the Brexit blow. In what one bank dubbed a 'sledgehammer stimulus', the BoE cut interestrates 25 basis points to 0.25% and said it would buy Pound 60 billion of government bonds with newly createdmoney over the next six months. The central bank also launched two schemes, one to buy Pound 10 billion ofhigh-grade corporate debt and another - potentially worth up to Pound 100 billion - to ensure banks keeplending even after the rate cut. A report. – (Mint Aug 5, 2016 p 3)

"Britain counting on financial tech for banking revolution" – British banks will from 2018 have to sharecustomers' data with third parties who can then show how much could be saved by using other lenders,according to the competition watchdog. Fintech companies are expected to offer smartphone apps that usecustomers' info to enable them to compare bank charges. A report. – (HT Aug 10, 2016 p 16)

– BANK OF ENGLAND

"The BoE has delivered: Now for a fiscal response" – Monetary stimulus can only cushion the adjustmentto a new reality. An editorial. – (FT Aug 5, 2016 p 8)

"Carney issues stark warning with package to ease Brexit downturn" – The Bank of England launchedits biggest stimulus package since the financial crisis on Thursday and said it stood ready to make furtherinterest rate cuts this year in an attempt to cushion a looming Brexit-induced downturn. Mr Carney warnedthat despite the central bank's 'exceptional package of measures' - which included its first rate cut in morethan seven years and a new £70bn bond-buying programme - a quarter of a million people were set to losetheir jobs because of the economic shock. A report. – (FT Aug 5, 2016 p 1)

"Monetary policy: BoE stimulus triggers swift reaction" – Gilts fall to record low and pound drops ascentral bank uses 'all tools thought possible'. A report. – (FT Aug 5, 2016 p 22)

USA"US credit push stokes fears of a house of cards" – The increase in loans to consumers and industry has

raised questions about the risks that groups are taking on. A report. – (FT Aug 5, 2016 p 13)

– FEDERAL RESERVE

"Federal Reserve adds $36m to Goldman fines over abuse of confidential data" – The Federal Reservehas slapped a fine on Goldman Sachs and ordered it to tighten its internal procedures, putting the seal on acase centred on the theft of secret supervisory information. A report. – (FT Aug 4, 2016 p 11)

ALL-WOMEN BRANCHES"Banks planning more all-women branches, House panel told" – Public sector banks (PSBs) are exploring

the feasibility of opening more all-women branches, the Finance Ministry has informed a Parliamentarypanel, which noted in its report that 'not a single public sector bank' had so far designated 15 per cent of itsbranches as all-women branches, as recommended by it last year. – (HBL Aug 11, 2016 p 21)

– 10 –

ASSET RECONSTRUCTION COMPANIES– NON-PERFORMING ASSETS

Dugal, Ira – "How sound are the stressed asset ventures of bank?" – There is some irony in the factthat banks, some of whom have a large chunk of bad loans on their own books, are now rushing to set upstressed asset ventures. We don't really know what the thinking behind this is, but it would be reasonable toguess that they either see an opportunity in investing in stressed assets (which they partly helped create), orthey think that they are best placed to resolve these stressed assets given adequate availability of capital andthe correct structures. An article. – (Mint Aug 5, 2016 p 21)

BANK CONSOLIDATION– SBI / ASSOCIATES

"SBI asks five banks to clean their books ahead of merger" – State Bank of India has directed fiveassociate banks to clean their books as a prelude to the proposed merger - the Rs.2,018 crore move that hasled to a combined loss of associate banks in the first quarter ending June this year. Senior officials from theState Bank group told ET that associate banks were asked to align the classification of loans with the parentbank, even if it requires them to take a hit on the bottomline. Post-merger, an account can't be classified asstandard in the books of one associate bank and sub-standard for another associate bank or parent bank.Therefore, there is a need that all associate banks align their accounts prior to the merger. A report.– (ET Aug 9, 2016 p 23)

– SBI/ASSOCIATES/BMB

"Giving India a global-scale bank" – An editorial. – (H Aug 5, 2016 p 10)

"SBI's assets will almost double in four years: Chairman: Says handling excess staff will not be anissue post-merger of six banks" – State Bank of India's assets will jump to about Rs.40-lakh crore in fouryears from Rs.22.59-lakh crore as at March-end 2016, propelled by the proposed amalgamation of six bankswith it and the growth in the Indian economy, according to Chairman Arundhati Bhattacharya. I am told byrevenues probably we will be 45th amongst the top 50 banks in the world. But hopefully, this will go up furtheras the Indian economy grows. If you look at the top 10 banks today, there are three Chinese banks. Thereason for this is mainly because of the growth of the Chinese economy. A report. – (HBL Aug 5, 2016 p 10)

BANK LENDING"Banks tighten lending standards" – Banks have tightened their lending standards to borrowers due to

higher provisioning towards non-performing assets (NPAs) and higher sector-specific risk prevailing in theeconomy during January-June 2016, according to a survey by FICCI and Indian Banks Association. A report.– (IE Aug 9, 2016 p 15)

BANK LICENSING"Icra: On-tap banking licences will up competition, hit PSBs" – RBI's move to make new bank licences

available on tap will encourage non-bank lenders to apply for access to cheaper public deposits, and theincreased competition may dent state-run lenders' market share, according to ratings agency Icra. Coupledwith the capital constraints of public sector banks (PSBs) owing to non-performing assets, their market sharecan go down by up to 10 percentage points in the next five years from the present 70 per cent, it warned. Theexpected rise in the number of private sector banks over the medium term could result in a decline in theshare of public sector banks, which held more than 70 per cent of the market. The RBI, which has so fargranted new bank licences once every decade, last month issued the final guidelines for the new system oflicensing. A report. – (FE Aug 8, 2016 p 17)

"On-tap bank licences in place, NBFCs gear up for second attempt: Lending a hand rejected in2013, Muthoot, Mannapuram, UAE Exchange to apply once again" – Barely a week after the ReserveBank of India released norms for 'on-tap' bank licences, non-banking finance companies are gearing up toconvert themselves into full-fledged lenders. The list of hopefuls include UAE Exchange, Manappuram,

– 11 –

Muthoot and banking veterans Deutsche Bank co-head Anshu Jain and former Citibank global CEO VikramPandit. This would be the second time that UAE Exchange, a money transfer and payment solutions firm,will be applying. – (HT Aug 8, 2016 p 13)

"Transforming bank licensing: Raghuram Rajan completes a revolution" – An editorial. – (BS Aug 8,2016 p 9)

Sabnavis, Madan – "Do we need more commercial banks?" – Having more banks just for the sake ofhaving them may not look convincing from either the business angle or from the point of view of society. Wemay not really need more commercial banks. There are incentives for existing institutions to convert tobanks, which makes sense, but for a new entity coming in afresh, the challenges are immense. An article.– (FE Aug 11, 2016 p 9)

– NBFCs

"On-tap bank licensing is 'credit positive' for NBFCs: Moody's" – Non-banking finance companies willbenefit from the RBI decision to herald 'on tap' universal banking licence regime, according to Moody'sInvestors Service. It cautioned however that more bank licences will be 'credit negative for existing banks' asit would increase competition. A report. – (HBL Aug 9, 2016 p 10)

– PRIVATE SECTOR BANKS

"Welcome policy on new bank licences" – The Reserve Bank of India (RBI) guidelines for licensing fullservice universal banks are path-breaking. The licences would be available for the asking 'on tap' -providedthe norms on asset requirements, capital structure, stakeholding, etc, are met -rather than once in a decade orso, as has been the norm for over two decades, and worse, with the number of licences granted in the lowsingle digits. An editorial. – (ET Aug 5, 2016 p 14)

BANKING REGULATOR"Differences between RBI, govt contribute to improving policies: Subbarao" – Former Reserve Bank

Governor D Subbarao has said the differences between the central bank and the government are not bad inthemselves but contribute to improving public policies. Both the central government and the central bank arebound to have differences, but they are not bad in themselves. In fact I will go even further to say that havingdifferences will contribute to improve public policies. A report. – (HBL Aug 9, 2016 p 10)

"My tenure has been fantastic" – A report. – (ET Aug 10, 2016 p 16)

"Raghuram Rajan's game-changing tenure: the new monetary policy framework caps his impressivelegacy" – The new framework will not only make monetary policy more credible but also predictable. Anarticle. – (Mint Aug 10, 2016 p 30)

– MONETARY POLICY

"Raghuram Rajan's last hurrah: The government needs to plug the institutional gaps" – An editorial.– (BS Aug 5, 2016 p 9)

– RESERVE BANK OF INDIA

"Dialogue with the govt didn't reach a place where we could agree that I would stay on" – Editedexcerpts from an interview with Raghuram Rajan, Governor, Reserve Bank of India. He said no, it's notcrony capitalists that got him. But yes, the dialogue with the government didn't reach a place where bothparties could agree he would stay on. Raghuram Rajan speaks on a range of issues, including his early daysat the central bank, regulating non-banking finance companies, loan against property, monetary policycommittee, and many more. – (Mint Aug 11, 2016 p 20)

"Here's how key parameters changed during Rajan's tenure at Reserve Bank" – RBI governorRaghuram Rajan's tenure is nearing its end. Here's how Dr Rajan fared on key parameters during histenure. A report. – (ET Aug 10, 2016 p 12)

"It has been a fantastic journey... have enjoyed every minute of it" – Rajan speaks on his tenure, critics.A report. – (HBL Aug 10, 2016 p 8)

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"Rajan on controversial speeches: they were perfectly ligitimate" – In none of those speeches that havemade has there been an explicit criticism or an implicit criticism of the government. There are people whoread the interpretation of what is the speech I have given. A report. – (IE Aug 10, 2016 p 15)

"RBI governor should have five year, non-renewable term.... public interest above government'sview" – Edited excerpts from an interview with Dr D Subbarao, former Governor, RBI. – (TI Aug 10, 2016p 16)

"Speculation Rife over Gokarn as new RBI Guv" – Speculation about Subir Gokarn as the next Governorof the Reserve Bank of India gathered momentum after he supposedly met incumbent Raghuram Rajan,according to two people. – (ET Aug 6, 2016 p 6)

Sampathkumar, D – "RBI's frozen assets" – Provisions in excess of actual requirements should be writtenback and the excess given to the Government of India. An article. – (HBL Aug 9, 2016 p 8)

BANKING TECHNOLOGY / INNOVATION"Disruption will change banking significantly: Nandan Nilekani" – With the emergence of technologies

such as automated teller machines, Internet and mobile transactions, banking in India catapulted to a differentorbit in the last decade. But the future will bring even more change. Banking as we know it will stand on itshead in the next 10 years, going by Nandan Nilekani's prediction, as 'disruption is waiting to happen'. Nilekani,co-founder of Infosys and former chairman of the Unique Identification Authority of India (UIDAI), believesniche banks and financial technology providers mean banking is going to be much more personalised andstructured. A report. – (BS Aug 8, 2016 p 4)

BANKRUPTCY BOARD"Govt notifies select provisions under the new insolvency law: To pave way for selection of bankruptcy

board chief" – Moving ahead with the selection process for chairman and members of the Insolvency andBankruptcy Board, the government has notified certain provisions of the new law that aims at making thedebt recovery process stronger. The Insolvency and Bankruptcy Code, 2016 - notified by the government inMay - seeks to consolidate and amend laws relating to reorganisation and insolvency resolution of corporatepersons, partnership firms and individuals in a time-bound manner. A report. – (HBL Aug 9, 2016 p 10)

BANKS BOARD BUREAU– NPAs / BANK CONSOLIDATION

"Rai: Stressed assets government's top priority" – The government's utmost priority is the resolution ofstressed assets before it intends to bring about some consolidation in public sector banks (PSBs), accordingto Banks Board Bureau (BBB) chairman Vinod Rai. BBB does not want to burden the banks with consolidationat a time when they are engaged in resolution of stressed assets. Consolidation is not a small issue, it requiresa huge amount of resources in terms of human resources. It will come by and work is in progress and we willfigure out some methods by which it is done but in due course .A report. – (FE Aug 5, 2016 p 4)

COOPERATIVE BANKS– DISTRICT CENTRAL COOPERATIVE BANKS

"NPAs rising in DCC banks" – 31 district central cooperative banks have written off Rs 278.54 cr bad loansin last 2 fiscals: data from NABARD. A report. – (IE Aug 10, 2016 p 5)

– SVC BANK

"SVC Bank organises its 110th AGM" – SVC Bank conducted its 110th Annual General Meeting whichinvolved discussions between the SVC Bank Board of Directors and the Bank's members. The meeting wasled by Chairman Udaykumar P Gurkar and Vice Chairman Vinod G Yennemadi in the presence of otherDirectors including the MD Suhas Sahakari on the panel. – (ET Aug 8, 2016 p 6)

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CREDIT RATING AGENCIESKapoor, Gunja – "Credit rating: The agency problem" – Rating agencies need to work towards reducing

information asymmetry between the issuer and investor. An article. – (Mint Aug 5, 2016 p 31)

CREDIT SCORE"Private agencies devise new credit score models for first-time loans: With older methods falling

short in case of new borrowers, firms eye Internet footprint, social media behaviour" – The inabilityof traditional credit bureaus to assign credit scores to many loan applicants who haven borrowed earlier hasspawned a variety of private agencies using novel techniques to fill the gap. A report. – (Mint Aug 9, 2016 p 22)

CUSTOMER SERVICE– KYC NORMS

"Better customer service, now in your hands" – KYC norms simplified, show unaware banks RBI's FAOpage. A report. – (ET Aug 10, 2016 p 16)

CYBER SECURITY"Banks still don't buy cyber fraud covers" – Despite a spate of ATM and card frauds, several banks still

don't insure themselves against data breaches and cyber security attacks. Lenders like the State Bank ofIndia (SBI), Indian Overseas Bank (IOB) and Indian Bank have seen attacks on their ATMs since January.But according to sources, while all three banks have taken the mandatory 'bankers indemnity' insurancecover, they have not insured themselves against data breaches and cyber security attacks. A report.– (TI Aug 11, 2016 p 15)

"Finmin asks state-run banks to strengthen cyber security: Red alert Intelligence Bureau says banksneed to have a robust crisis management system" – The finance ministry has asked state-run banks tostrengthen their information technology systems after security agencies warned they were vulnerable tocyber attacks. Security agencies are on a strict vigil against such attacks on the country's banking system andare working closely with the regulator, the Reserve Bank of India, according to a senior government official.A report. – (ET Aug 9, 2016 p 22)

DEBT RECOVERY– NPAs

"Why are bankers struggling to find buyers for stressed assets?: Afraid of vigilance probes, publicsector banks are unwilling to take a haircut, resulting in prices that deter buyers" – Debt recoverythrough sale of assets remains an exercise in futility for banks, when it comes to large accounts. The repeatedfailure of bankers to find bidders for some assets of debt-ridden Kingfisher Airlines is a case in point. Unlikeretail loans, where banks repossess a defaulter's car or house and auction them off to recover their advance,data shows that banks have found it difficult to find buyers for large assets like factories and offices. Areport. – (Mint Aug 5, 2016 p 13)

DEBT RECOVERY LAWS– RECOVERY OF LOANS, NPAs

"Parliament nod to amendments in Sarfaesi, DRT Acts" – The Parliament passed a bill to amend debtrecovery laws and make them more time-bound and effective in yet another step to address the problem ofrising bad loans. Along with the new bankruptcy law, these amendments will put in place an enablinginfrastructure to effectively deal with NPAs in the Indian banking system. A report. – (Mint Aug 10, 2016 p 5)

– 14 –

DEPOSITS– RECURRING

Nalinakanthi V – "Flex your recurring deposit: The scheme allows you to invest variable sums everymonth" – Restrictions: Some banks have caps on the maximum amount that can be invested in flexi RDs.Penalties for: * Failure to meet minimum investment criteria; * Delayed payment of core instalment; *Premature closure. An article. – (HBL Aug 8, 2016 p 7)

DIGITAL BANKING"Future of banking in today's digital world" – Expert view from Olivier Crespin, Managing Director and

Group Head (Digibank) at DBS Bank Ltd. Bill Gates's now famous statement that 'people need banking, notbanks' lays down the gauntlet to the financial services industry heavyweights and is a call-to-action to legionsof fintech start-ups. The notion that customers need to go to their banks to do banking is rapidly beingchallenged. Increasingly, digitally-savvy customers are expecting to avail themselves of financial servicesseamlessly as they navigate through their progressively digitized lives. For banks this has led to a rethink ofhow they interact with their customers. – (Mint Aug 5, 2016 p 15)

DIGITAL CURRENCY"Bitcoin not money, rules court in US" – Bitcoin, a Florida judge says, is not real money. Ironically, that

could provide a boost to use of the crypto-currency which has remained in the shadows of the financialsystem. The July 22 ruling by Miami-Dade circuit judge means that no specific licence is needed to buy andsell bitcoins. – (TI Aug 7, 2016 p 17)

DISHONOUR OF CHEQUES"RBI eases norms in cheque dishonour cases of Rs.1 cr, more" – Relaxing chequebook norms, the

Reserve Bank left it to the lender's discretion on whether to issue fresh chequebooks or not in cases ofdishonour of Rs.1 crore and above. – (FE Aug 5, 2016 p 12)

EXECUTIVE APPOINTMENTS– PUBLIC SECTOR BAN KS

"New heads for United Bank, BoM" – United Bank of India has a new MD and CEO in Pawan KumarBajaj, who is currently ED at Indian Overseas Bank, has been appointed to the post till September 20, 2018.The Centre has also appointed Ravindra Prabhakar Marathe as MD and CEO of Bank of Maharashtra, andwill remain in the post till November 30, 2019. – (HBL Aug 10, 2016 p 8)

FINANCIAL INCLUSIONAdams, Tim – "Banks are driving financial inclusion" – An article. – (Mint Aug 5, 2016 p 31)

FINANCIAL RESULTS– PUBLIC SECTOR BANKS

"Bad loan woes continue for state-run banks" – Three more state-owned banks reported troubling news onthe bad loan front, adding to uncertainty on whether the worst is over yet for the country's lenders. Whileboth IOB and UCO reported losses in the June quarter, profit of United Bank of India fell. GNPA ratios roseat all three. A report. – (Mint Aug 10, 2016 pp 1,4)

FOREIGN BANKS– DBS BANK

"DBS profit drops 6% in second quarter: Bad debt charges more than double on Swiber loan exposure"– DBS Group Holdings, Singapore's biggest lender, reported a 6 per cent drop in second-quarter profit, hit bya sharp jump in provisions for bad loans as firms in the oil and gas services sector struggle to service debt. Areport. – (HBL Aug 9, 2016 p 10)

– 15 –

– ROYAL BANK OF SCOTLAND

"RBS posts $1.43-billion loss in Q2 as litigation costs balloon" – The Royal Bank of Scotland said thatit posted a large loss in the second quarter on ballooning litigation costs, as it grappled with restructuring toshift away from being a lender with global ambitions. A report. – (FE Aug 6, 2016 p 16)

GOLD BOND SCHEME"Gold bond scheme: Govt realises record Rs.919 cr in 4th tranche" – The Government has garnered

Rs.919 crore under the fourth tranche of the Sovereign Gold Bond scheme, the highest ever collections so farunder the scheme. The amount realised through the fourth tranche, at around Rs.919 crore, is the highestachieved as yet. The previous highest was Rs.746 crore in the second tranche, when the issue price was onlyRs.2,600 per gram of gold. This was mobilised through over 1.95 lakh applications representing around 2.95tonnes of gold, according to finance ministry statement. A report. – (IE Jul 31, 2016 p 15)

HOUSEHOLD FINANCE"RBI panel to study household finance" – The Reserve Bank of India has formed a committee to study the

state of household finance in India to evaluate future demand for financial products. – (Mint Aug 5, 2016 p 8)

ILLEGAL DEPOSIT TAKING"Fly-by-night problems: Better regulation of deposit schemes a must" – An editorial. – (BS Aug 9, 2016

p 11)

"Need to rein in illegal money-pooling: Rajan: Outgoing RBI governor says regulators, enforcementagencies must come together to act against fly-by-night operators" – Regulators and law enforcementagencies need to deal with fly-by-night operators who dupe people by promising a large sum of money inexchange of a small fee, according to RBI governor Raghuram Rajan. Launching the portal - sachet.rbi.org.in- which will help people obtain information about entities allowed to collect deposits. A report. – (FE Aug 5,2016 p 12)

"Ponzi schemes not under our purview: SEBI" – The Securities and Exchange Board of India (SEBI)denied any regulatory purview over ponzi schemes, squarely placing the responsibility of protecting investorson State governments. SEBI was responding to the Supreme Court's poser as to what the government andthe market regulator were doing to check the 'menace' of schemes running across the country in variousforms which robbed the poor and small investors of their hard-earned money. – (H Aug 9, 2016 p 13)

INDUSTRIAL RELATIONS"Bank officers' union to protest against govt policies" – A section of officers of the public sector banks

(PSBs) under AIBOC will hold a 'March-to- Parliament' protest tomorrow against a move to consolidatestate-owned lenders and other 'anti-worker' decisions of the government. – (HBL Aug 9, 2016 p 10)

INTEREST RATESThakkar, Rajeev – "Living in a world of negative interest rates" – An article. – (Mint Aug 10, 2016 p 20)

IRREGULARITIES– STATE BANK OF INDIA

"CBI institutes enquiry into Rs.570 crore transfer: Case to be registered if cognisable offence ismade out: Spokesperson" – Pursuant to a recent directive of the Madras High Court, the Central Bureauof Investigation has instituted a preliminary enquiry into alleged irregularities in the transport of Rs.570 crorefrom Coimbatore to Visakhapatnam by the State Bank of India (SBI) ahead of the Tamil Nadu Assemblyelections. An Election Commission flying squad had seized the cash from three containers near Tirupur onMay 14, two days before the Tamil Nadu polls. Soon thereafter, the SBI issued a statement stressing that themovement of currency was duly authorised by the Reserve Bank of India and had all necessary approvals.– (H Aug 9, 2016 p 9)

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KYC NORMS"Know how RBI has simplified your KYC" – From updating contact details with banks to eKYC, RBI has

eased the processes but more work needs to be done. A report. – (Mint Aug 11, 2016 p 16)

LEGAL DECISIONS– STANDARD CHARTERED BANK

"Firm fined Rs 10,000 for filing frivolous plaint against bank" – The district consumer court has orderedan architectural planning firm in the city to pay Rs.10,000 compensatory cost to the Consumer Legal AidService for initiating a speculative and vexatious litigation against a multinational bank. The three-memberbench of VP Utpat, O G Patil and Kshitija Kulkarni described the litigation as 'nothing but abuse of processof law', while dismissing the complaint of the firm -Meta Arch Private Limited -against the Standard Charteredbank's move to levy a 1% penalty on the foreclosure of a Rs.3.11 crore term loan. – (TI Aug 9, 2016 p 5)

LOAN PRICING"Revision in MCLR mechanism on cards: RBI has mandated banks to announce marginal cost of

funds-based lending rate of at least five tenures" – RBI governor Raghuram Rajan said the centralbank will soon revise the MCLR mechanism. Disappointed that banks had not passed on the benefits oflower policy rates to borrowers, the governor said the cuts had been modest. A report. – (FE Aug 10, 2016p 12)

LOAN RESTRUCTURING"JSPL to recast Rs.7,500-crore loan" – Naveen Jindal-controlled Jindal Steel & Power Ltd (JSPL) is likely

to shortly finalise an agreement with its lenders for bringing Rs.7,200-7,500 crore loan out of its steel portfoliounder the 5x25 scheme of the Reserve Bank of India. The company with Rs.44,140 crore consolidated debton its books as on March 31, 2016 had last year brought around Rs.3,000 crore loan from its power portfoliounder the scheme. The scheme allows banks to recast long-term loan for infrastructure and core industriesthrough periodic release of funding along with initial moratorium on debt repayment. A report. – (BS Aug 9,2016 p 1)

MONETARY POLICY"The battle against inflation is on" – An editorial. – (HT Aug 10, 2016 p 12)

"BS poll: Rajan may opt for status quo on rate" – The Reserve Bank of India (RBI) is likely to maintainstatus quo in its third bi-monthly monetary policy, considering the recent flare up in inflation, said all the 10economists polled by Business Standard. Most economists said policy, also the last by current governorRaghuram Rajan, could remain silent on important reforms measures but may reaffirm issues like the needfor continued liquidity and RBI's preparedness to meet the redemptions of foreign currency non-resident(FCNR-B) deposits worth $20 billion. A report. – (BS Aug 5, 2016 p 1, Pt.II p 3)

"Focus on price stability" – An editorial. – (H Aug 10, 2016 p 10)

"Inflation fears do not dam liquidity" – Rajan holds rates but continues accommodation. An editorial.– (ET Aug 10, 2016 p 14)

"The last review says that all is well" – Rajan changed little in his last review. Given the direction he put thecentral bank on, maybe he did not need to. A report. – (Mint Aug 10, 2016 p 20)

"A moment in history" – Rajan's last credit policy was also the last by an RBI governor. The transition to acommittee raises concerns. An editorial. – (HBL Aug 10, 2016 p 6)

"The monetary policy backdrop" – Reserve Bank of India (RBI) governor Raghuram Rajan will reviewpolicy rates and stance against a backdrop that is worrisome on the inflation front but better than before ongrowth and interest rate transmission. With retail inflation coming uncomfortably close to the upper tolerance

– 17 –

threshold of the inflation target range of 2-6%, now formally mandated by the government, Rajan is mostlikely to keep rates unchanged, as indicated by most of the 10 economists Mint surveyed. Out of the severalupside risks that the RBI listed in its last policy, barring the favourable monsoon, most are yet to emerge. Thismay keep the RBI from cutting rates in its August policy. A graphical report. – (Mint Aug 8, 2016 p 10)

"Monetary policy: RBI seen maintaining status quo" – Nine of 10 economists and bankers surveyedexpect RBI to hold repo rate at 6.5% in Rajan last policy review. A report. – (Mint Aug 8, 2016 p 1)

"Mr Rajan's swansong" – His last policy review raises hope for continuity in RBI's action. An editorial.– (BS Aug 10, 2016 p 9)

"Post Rajan: Next rate cut may happen after his exit from RBI. It is to his credit that markets havesettled down to life beyond him" – An editorial. – (IE Aug 9, 2016 p 10)

"Rajan may unveil P2P norms as parting shot" – As Reserve Bank of India governor Raghuram Rajanprepares to deliver what would be his last monetary policy speech, speculations are rife that he will announceregulations for peer-to-peer (P2P) lending. P2P lending - a booming online service globally where individualsand businesses borrow directly from lenders, or investors, with the help of P2P platforms that play matchmakers- is currently unregulated in the country. – (ET Aug 9, 2016 p 6)

"Rajan's swan song ends on a flat note: keeps repo rate unchanged at 6.5%; culture of clean-upseems well-embedded, says RBI chief" – RBI governor, Raghuram Rajan delivered his last MonetaryPolicy on 9th Aug. The latest policy continued to stress liquidity management, a systemic clean-up of thebanking sector, and the fight against inflation, which were the hallmarks of Rajan's tenure. A report.– (HBL Aug 10, 2016 p 1)

"RBI's decision to hold rates on expected lines: bankers, experts" – Reactions by leading bankers,economists and market experts. A report. – (HBL Aug 10, 2016 p 8)

"We moved needle forward everyday: leaving office with sense of satisfaction: Rajan" – In his lastpolicy statement, RBI governor Raghuram Rajan dwelt on various topics: from inflation-targeting and GST tocriticism of policy decisions, Edited excerpts. – (ET Aug 10, 2016 p 16)

Bandyopadhyay, Tamal – "Markets looking beyond Rajan August policy" – An article. – (Mint Aug 8,2016 pp 1, 2)

Bandyopadhyay, Tamal – "Rajan is not done yet" – An article. – (Mint Aug 10, 2016 p 8)

Bhardwaj, Upasna – "RBI delivers as expected" – An article. – (Mint Aug 10, 2016 p 8)

Bhattacharya, Arundhati – "Monetary policy fosters optimism: it reinforces RBI's commitment towardsan accommodative monetary policy and comfortable liquidity conditions" – An article. – (FE Aug 10,2016 p 10)

Bhattacharya, Saugata – "An emphatic continuity" – An article. – (BS Aug 10, 2016 p 6)

Chakraborty, Samiran – "Look beyond a status quo August policy" – An article. – (Mint Aug 5, 2016 p 13)

Chakraborty, Samiran and Jha, Anurag – "Status quo on interest rates, but still accommodative atmargin" – An article. – (FE Aug 10, 2016 p 13)

Datta, Devangshu – "RBI policy mildly positive, but here are 3 key issues to monitor" – An article.– (BS Aug 10, 2016 Sec II p 2)

Ghosh, Soumya Kanti – "Is liquidity the new signalling device?" – An article. – (Mint Aug 10, 2016 p 9)

Iley, Richard – "Space for the final rate cut this cycle should open up in October" – An article.– (FE Aug 10, 2016 p 13)

Joshi, Dharmakirti – "Focus back on fiscal rectitude" – An article. – (Mint Aug 10, 2016 p 8)

– 18 –

Pan, Indranil – "RBI monetary policy: August likely to see no change" – While it remains difficult toassess the situation immediately, any chance of further rate easing by the RBI could open up much later inthe calendar year though the incremental space of easing would remain extremely restrictive. An article.– (FE Aug 5, 2016 p 12)

Rao, Shubhada – "Status quo before the next big change" – An article. – (FE Aug 10, 2016 p 12)

Sahay, Anubhuti – "Rajan unlikely to surprise at his final policy meeting" – An article. – (BS Aug 6, 2016p 6)

Seshan, A – "A status quo policy for stability: The RBI pins its hopes on a good monsoon and increasedconsumption demand in light of the 7th pay commission" – An article. – (HBL Aug 10, 2016 p 6)

Shashidhar, Karthik – "The trouble with inflation expectations" – The inflation forecast plays a key rolein determining monetary policy, but is derived from a flawed survey. An article. – (Mint Aug 10, 2016 p 28)

Thakkar, Naresh – "Policy statement signals continuity" – No change in growth or inflation targets, policyrate, accommodative stance of monetary policy and strategy to reduce structural liquidity deficit. An article.– (FE Aug 10, 2016 p 11)

Thorat, Usha – "Required: a wider corridor for repos?" – The evening out of surpluses and shortages doesnot happen seamlessly. There is volatility in the overnight call market. An article. – (HBL Aug 10, 2016 p 7)

Varma, Sonal – "In for the long haul" – An article. – (BS Aug 10, 2016 p 6)

– INFLATION TARGETING

"Govt sets inflation target at 4%: New monetary policy framework abides by 'Rajan rekha'" – Justdays ahead of the Reserve Bank of India's bi-monthly monetary policy review, which will be RaghuramRajan's last as Governor, the Finance Ministry has notified an inflation target of 4 per cent with a range of 2per cent for the next five years. Rajan has all along been a strident advocate of inflation targeting. With thisnotification, the Centre has also moved ahead with its plans for the new Monetary Policy Framework. Areport. – (HBL Aug 6, 2016 p 1)

"Inflation targeting monetary policy credit positive for India: Moody's" – The shift in monetary policystance to target inflation is 'credit positive' for India's sovereign rating as it will help keep price rise pressuresunder check, according to Moody's Investors Service. – (FE Aug 8, 2016 p 18)

"The RBI should seek price stability: But macro stability is more than a tame CPI" – An editorial.– (ET Aug 8, 2016 p 16)

"With retail inflation at 5.7%, RBI likely to hold rates" – With retail inflation ruling above the ReserveBank of India's (RBI) projection of around 5 per cent for FY2017, outgoing Governor Raghuram Rajan isunlikely to give a parting gift in the form of a repo rate cut at the third bi-monthly monetary policy review onAugust 9. Going by the latest government data, the year-on-year retail (consumer price index-based) inflationreading came in higher at 5.77 per cent in June 2016 as against 5.40 per cent in June 2015. CPI is used by thecentral bank as a nominal anchor in formulating monetary policy. A report. – (HBL Aug 8, 2016 p 1)

Balakrishnan, Pulapre – "Retrofitting the Reserve Bank" – By suggesting that inflation targeting be thesole objective of monetary policy in India, the government has also shut out of the reckoning an assault onIndia's weak agricultural supply-side. It also ignores a serious lesson from the recent global financial crisis,which is that an inflation-targeting central bank can lose control of the financial system. An article. – (H Aug6, 2016 p 10)

Chakravarty, Manas – "When is a 4% inflation target really 4%?" – An article. – (Mint Aug 8, 2016 p 15)

MONETARY POLICY COMMITTEE"Rajan names RBI team for monetary policy panel" – ED Michael Patra and Dy Guv Urjit Patel, who take

care of monetary policy, to be part of committee besides Guv. The move comes even as the government isyet to nominate the next governor or its own nominees on the MPC. A report. – (TI Aug 10, 2016 p 20)

– 19 –

MONETARY POLICY TRANSMISSION"Cheaper money still some time away, say bankers" – Ruling out any immediate transmission of rates

despite RBI chief blaming them of passing benefits only modestly bankers said interest rates will fall oncecredit growth picks up. A report. – (FE Aug 10, 2016 p 12)

"RBI expects further rate cut transmission into lending rates" – Outgoing RBI governor RaghuramRajan said the central bank expects further transmission of policy rate cuts into lending rates as balancesheets of banks are being cleaned up. However, substantial pass through will only happen when corporatecredit demand picks up and as public sector banks, strengthened by clean balance sheets, compete forcorporate business. A report. – (FE Aug 10, 2016 p 12)

Merwin, Radhika – "Lending rates to fall gradually" – With the RBI choosing to hold rates yet again,borrowers can expect only modest cuts in lending rates from here on, mostly leftovers of the pass through ofthe policy rate cut thus far. While the slew of measures by the RBI has improved the liquidity situation - keyfor smooth transmission of rate cuts- weak investment activity and the niggling bad loan concerns havereduced banks' leeway to lower lending rates. An article. – (HBL Aug 10, 2016 p 8)

NON-PERFORMING ASSETS"85% banks' NPA levels rise in Jan-June: Survey" – An overwhelming majority of banks reported rise in

non-performing assets during the first six months of the year and their profitability took a dip due to higherprovisioning for NPAs. 'Majority of the participating banks i.e. 85 per cent reported an increase in their NPAlevels, amongst which all the public sectors banks reported a rise in their NPAs,' according to FICCI-IBABankers survey. A report. – (FE Aug 9, 2016 p 10)

"Guv's exit unlikely to dilute NPA drive" – Whether it is Raghuram Rajan or someone else heading theRBI, one thing seems to be certain there won't be any letup in the banks' clean-up process. The way banksare chasing defaulters is unlikely to change either. A report. – (ET Aug 10, 2016 p 16)

"RBI is comfortable with bad loans clean-up by banks: Rajan" – RBI is comfortable with the bad loansrecognition process by banks and there would be no backtracking on steps for NPA recognition. A report.– (HBL Aug 10, 2016 p 8)

"Top 100 borrowers owe PSBs Rs.13.71 lakh crore" – The government said the top 100 borrowers ofPSBs owe nearly Rs.14 lakh crore to them. The amount outstanding for top 100 borrowers of PSBs as onMarch 31, 2016 was Rs.13,71,885 crore, minister of state for finance Santosh Kumar Gangwar said in awritten reply to the Rajya Sabha. – (FE Aug 10, 2016 p 4)

Murty, M Sitarama – "NPAs: Banks alone are not to blame" – The convoluted workings of the bureaucracy,delays in land acquisition and politically inspired agitations have played a part. An article. – (HBL Aug 8, 2016p 14)

– PUBLIC SECTOR BANKS

"NPAs for 9 state-owned banks cross Rs.2 lakh cr in Q1" – Gross non performing assets (NPAs) for aclutch of nine public sector banks have increased by over Rs.14,000 crore to over Rs.2 lakh crore in the threemonths to June. Their combined losses, however, have narrowed significantly compared with the Marchquarter. A report. – (FE Aug 11, 2016 p 10)

ONE-TIME SETTLEMENT"PSBs make one-time settlement of Rs.3,445-cr loans" – Public sector banks have settled loans worth

Rs.3,445 crore through one-time settlement mechanism in the current financial year till June, according to thegovernment. Reserve Bank of India (RBI) has provided the framework under which banks can have theirown board approved policy for One Time Settlement (OTS) or compromise settlements. A report. – (FE Aug6, 2016 p 10)

– 20 –

PRIVATE SECTOR BANKS– INDUSIND BANK / YES BANK

"IndusInd, Yes Bank may need consumption focus: Retail dividend how the banks shape up coreconsumer-driven segments may impact the valuations they command" – ET Intelligence Group:Besides superior asset quality, growth potential of their retail book was a factor that led to the re-rating ofsome of the smaller sized private sector banks in the last one year. A closer look at the retail businesses ofYes Bank and IndusInd Bank reveals that core consumer-driven segments still account for a relatively smallportion of their respective retail books. As these banks aim for an equal distribution of their loan bookbetween retail and corporate segments over the next few years, how the consumption part of the retail booksshapes up may impact the valuations they currently command. A report. – (ET Aug 8, 2016 p 10)

RECOVERY OF LOANS, NPAs"Banks go all out to recover loans, analysts still cautious: Focus on recovery While PNB recovered

cash worth Rs.4,830 cr, Canara Bank's recoveries stood at Rs.918 cr; other public & pvt banksalso stepped up efforts to recover bad loans" – Banks are pulling out all the stops in recovery fromdefaulters with both public and private lenders corralling at least Rs.10,000 crore in the last quarter alone andthe lenders' aggression, combined with an increasing feeling that the system could only get tougher withInsolvency and Bankruptcy Act, promoters have been more forthcoming. The Insolvency and BankruptcyAct was passed in May this year. Punjab National Bank improved its cash recovery to Rs.4,830 crore andrecovery from written-off accounts stood at Rs.727 crore. It also upgraded Rs.1,181-crore accounts duringthe June quarter. A report. – (ET Aug 8, 2016 p 10)

"Lenders initiate recovery process against Surana Ind" – Following promoters' inability to bring an investoron board, lenders to Surana Industries have initiated recovery actions including approaching the debt recoverytribunal (DRT) and evoking the Securitisation and Reconstruction of Financial Assets and Enforcement ofSecurity Interest Act, 2002, also known as the Sarfaesi Act. – (FE Aug 9, 2016 p 10)

– PUBLIC SECTOR BANKS

"PSBs write-off Rs.2.51 lakh crore of loans in 11 years: Recovery rate, amount recovered as apercentage of additional write-offs, also low at around 10-15%" – Public sector banks have written offloans totalling Rs.2.51 lakh crore in the past eleven years since 2006, according to finance ministry data.Loans write-offs jumped sharply in recent years, with the state-owned banks writing off the highest-everamount of Rs.59,547 crore in the year ended March 2016. In the past four years, the PSBs have written-offloans of Rs.1.73 lakh crore. A report. – (IE Aug 11, 2016 p 15)

TRAIN ROBBERY– RESERVE BANK OF INDIA

"Robbers cut roof of moving train, steal RBI money in TN" – Robbers cut through the roof of a railwaycoach booked by the RBI to transport money from Salem in TN, and escaped with an undisclosed sum ofmoney. The train was carrying 228 trunks packed with Rs.342 crore in bank notes. The money weighedaround 23 tonnes. A report. – (HT Aug 10, 2016 p 8)

RBI CIRCULARS"Auction of Government of India Dated Securities" – (RBI Circular RBI/2016-2017/35 Ref.No.IDMD/

305/08.02.032/2016-17 dated 08.08.2016)

"Capacity Building in Banks and AIFIs" – (RBI Circular RBI/2016-2017/36 DBR.No.BP.BC.4/21.03.009/2016-17 dated 11.08.2016)

"Priority Sector Lending status for Factoring Transactions" – (RBI Circular RBI/2016-2017/37FIDD.CO.Plan.BC.10/04.09.01/2016-17 dated 11.08.2016)

– 21 –

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTURAL FINANCE"Farmers to get short-term crop loans at lower rate" – In line with the government policy decision. RBI

said farmers can avail short-term crop loans of up to Rs.3 lakh at subsidised interest rate of 7 per cent and therate could go down to 4 per cent if they repay promptly. A subvention of 2% per annum will be made availableto... for short-term crop loans up to Rs.3,00,000 per farmer, provided the lending institutions make availableshort-term credit at the ground level at 7 per cent per annum to farmers, RBI said in a notification. – (ET Aug5, 2016 p 7)

RURAL EMPLOYMENT– MGNREGS

"Govt raises budget for rural jobs scheme by Rs.5,000 crore: Fresh fund infusion means the overallbudget allocation for MGNREGS in 2016-17 will be Rs.43,500 crore" – The Narendra Modi-ledNational Democratic Alliance government has increased the budget for the national rural employment guaranteescheme by Rs.5,000 crore to Rs.43,500 crore for 2016-17, according to the minister of state for ruraldevelopment Ram Kripal Yadav. A report. – (Mint Aug 9, 2016 p 7)

INDUSTRY"FMCG, auto companies want old sops to stay in new regime" – Many companies, especially in the fast

moving consumer goods (FMCG) and auto sectors, are reaching out to state and central governments seekingclarity on whether there could be a way to grandfather tax incentives by state governments because underthe goods and services tax (GST) regime, the ongoing tax holidays for investing in underdeveloped areaswould mean little. 'This is not just a tax issue; it is a very sensitive political issue. While many companies thathad invested in these areas due to lower taxation will see rising costs, state governments may not be able toabide by the MoUs they had signed with these companies,' said a person close to the development. A report.– (ET Aug 9, 2016 p 9)

AUTOMOBILE INDUSTRY"Hot wheels" – A look at the factors driving the automobile sector - and the challenges ahead, given recent

developments. A report. – (HBL Aug 8, 2016 p 2)

E-COMMERCE"Policy rejig likely to restock Ecomm cart" – The government is looking at liberalising the ecommerce

policy to give a further boost to the sector, suggesting a possible rethink of online marketplace rules that wereissued in March. If adopted, such a move could provide a boost for ecommerce leaders Amazon, Flipkart,Snapdeal and their smaller rivals. A high-level committee has been set up under Niti Aayog CEO AmitabhKant to look into ecommerce, including issues related to FDI. A report. – (ET Aug 10, 2016 p 1)

– FOREIGN DIRECT INVESTMENT

"Use FDI in e-commerce infra upgrade, not discounts: DIPP" – The FDI in the e-commerce sectorshould be used for the betterment of infrastructure and not be used to subsidise their products, according toSanjeev Gupta, Additional Secretary, DIPP. A report. – (HBL Aug 10, 2016 p 13)

HDFC"Demand for money from corporate sector to pick up over next 3 quarters" – Edited excerpts from an

interview with Keki Mistry, vice-chairman of HDFC Ltd. – (Mint Aug 10, 2016 p 29)

– 22 –

MUTUAL FUNDS"In a first, mutual fund assets base crosses Rs.15 lakh-cr mark" – The mutual fund industry for the first

time, crossed the Rs.15 lakh crore mark in July. The surge in assets under management was largely due tothe Rs.1.02 lakh-crore of net inflows into mutual fund industry during the month. A report. – (FE Aug 10,2016 p 13)

NON-BANKING FINANCE COMPANIES– FOREIGN DIRECT INVESTMENT

"Cabinet approves liberalization of FDI norms for NBFCs" – The Cabinet approved liberalization offoreign investment norms for the non-banking finance companies (NBFCs), in yet another measure aimed atimproving the ease of doing business. A report. – (Mint Aug 11, 2016 p 5)

STOCK MARKET"Masala bonds launch: Other firms to follow in footsteps of HDFC, NTPC: More investor demand

seen; issuers to tap offshore capital markets for funds: Fitch" – The recent issue of offshore masalabonds by Indian companies could pave the way for a broader opening and development of the market,according to Fitch Ratings. This will be positive for the better-quality issuers who will be able to take advantageof offshore capital markets to diversify their funding sources without assuming currency risk. A report.– (HBL Aug 9, 2016 p 10)

"The Sensex story in the 25-year reform period: Only seven of the 30 stocks in the 1992 Sensex arestill a part of the index" – Twenty-five years have been completed since economic reforms were set inmotion by the Narasimha Rao government, and guided by then Finance Minister Manmohan Singh. Thesefar-reaching reforms transformed the economy and set it firmly on the growth path. The stock market, whichis called the barometer of the economy, also underwent a sea-change during this quarter century. We analysedthe constituents of the Sensex in 1992, based on data provided by Capitaline Database, and their financialparameters then, to highlight how the Indian stock market has changed with the economy. Of the 30 stocksthat are part of the Sensex today, only seven were in the Sensex in 1992. Banking stocks, which currentlydominate the Sensex, had zero presence 25 years ago. A report. – (HBL Aug 8, 2016 p 1)

Yoganand D – "All eyes on Rajan: The Nifty and Sensex bounced back strongly on Friday, but facestiff barriers ahead" – What to look for: * RBI monetary policy; * Corporate earnings; * US crude oilinventories. An article. – (HBL Aug 8, 2016 p 9)

– NBFCs

"Masala bonds to help NBFCs more: Fitch" – With two companies raising Rs.5,000 crore via offshoremasala bonds in July, global ratings agency Fitch has said it will help diversify funding for India Inc, especiallynon-banking finance companies. The recent issuance of the first offshore masala bonds by domestic companiescould pave the way for a broader opening and development of the market. – (FE Aug 9, 2016 p 10)

SMALL SCALE INDUSTRY

ENTREPRENEURSHIPRaja, Atul – "Professional courses need to get more professional" – The importance of including

entrepreneurship as part of standard curricula cannot be undermined. We can begin by creating a formalculture of entrepreneurship in classrooms. An article. – (FE Aug 8, 2016 p 12)

– WOMEN ENTREPRENEURS

Banduni, Rajeev – "Womentrepreneurship: Why the country needs more women entrepreneurs" –Even though the gender gap in the start-up arena is reducing, the pace at which it is happening is very slow.According to Nasscom, there are only 9% women in entrepreneurship. An article. – (FE Aug 8, 2016 p 12)

– 23 –

SMEs"Loan offtake by medium, small industries declines further" – India Inc, especially medium and small

industries, is yet to show any improvement in new investments and expansion if bank credit offtake is anyindication. Loans to medium and micro & small industries declined 9.5 per cent and 3.8 per cent respectivelyduring the quarter ended June, according to the Reserve Bank of India. However, credit offtake by largecorporate s grew two per cent year-on-year (y-o-y). Indicating the muted corporate loan growth figures thatare being reported by individual banks in the quarter ended June, outstanding bank credit to all the industriesrecorded just a 0.6 per cent (y-o-y) growth to Rs.26.5 lakh crore in June, according to the RBI data. A report.– (IE Jul 31, 2016 p 15)

INTERNATIONAL ECONOMICS

JAPANPosen, Adam – "Abe's stimulus is a lesson for the world" – What is promising about Mr Abe's latest

stimulus package is not its size - the real amount spent will certainly be less than half of the announced Yen28.1tn ($276bn) - but its ties to labour market reforms. Eurozone governments should use expansionary fiscalpolicy to promote structural reform. An article. – (FT Aug 3, 2016 p 9)

USA"US economy suffering from same old problem - slugish productivity" – A pair of better than expected

non-farm payrolls reports affirms that the US economy doesn't have a new problem, that is, a rapid slowdownin job growth- just the same old one, sluggish productivity. A report. – (FE Aug 10, 2016 p 17)

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Aug 8, 2016 Supl. pp 1-16)

WORLD BANK"World Bank draws ire with rule changes: Institution accused by activists of betraying the world's

poorest countries" – The World Bank is pushing through the biggest changes in decades to the social andenvironmental rules that cover its lending, drawing fire from activists who accuse it of betraying vulnerablepopulations in the world poorest countries. A report. – (FT Aug 5, 2016 p 2)

MANAGEMENT

CORPORATE GOVERNANCEBhattacharyya, Asish K – "Boards should focus on disclosures, auditors' independence" – Investors

and other stakeholders are not so concerned about what happens within the board. They evaluate the qualityof corporate governance by tracking signals. An article. – (BS Aug 8, 2016 Supl. p 3)

LEADERSHIP"B-schools can learn about leadership, the Tata way: Tata Sons' Harish Bhat speaks about the 'four

Ps' at 7th Indian Management Conclave at IIM-A" – The Tata group has four distinguishingcharacteristics that mark out the 'Tata way'. The four Ps are pioneering, principled, purposive and (not)perfect. I think everyone wishing to establish institutional leadership would do well to consider these four Psand their relevance to each of our worlds, according to Harish Bhat, Member, Group Executive Council, TataSons. A report. – (HBL Aug 6, 2016 p 5)

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