Volume XXXIV Number 23 March 04, 2019

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 2

C. AGRICULTURE & RURAL DEVELOPMENT 14

D. INDUSTRY 14

E. SMALL SCALE INDUSTRY 15

F. INTERNATIONAL ECONOMICS 15

G. LABOUR & PERSONNEL MANAGEMENT 15

H. MANAGEMENT 16

I. MISCELLANEOUS 16

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BANKERS' BRIEF Vol. XXXIV No. 23March 04, 2019

ECONOMY"China & India: The threat of populist nationalism: An exclusive excerpt from former RBI governor

Raghuram Rajan's latest book" – 'The Third Pillar: How the Markets and State Leave the CommunityBehind' by Raghuram Rajan. – (BS Feb 27, 2019 p 8)

"Economy's financial condition brightening up: CII-IBA The Cost of Funds Index improved by 35.7points quarter-on-quarter to 58.5" – The CII-IBA Financial Conditions Index (FCI) for Q4 (January-March) FY2018-19 has recorded a staggering rise, vaulting above the 60-mark for the first time in threequarters, on expectation of an improvement in the overall economy on account of all factors - ExternalFinancial Linkages, Funding Liquidity Index, Economic Activity Index and Cost of Funds Index. The FCI inthe fourth quarter of 2018-19 jumped to 62.9 from 37.1 in the preceding (Q3) quarter. An FCI reading below50 is considered sub-optimistic; 50 is optimistic; and above 50 is considered largely optimistic. A report.– (HBL Feb 25, 2019 p 17)

"Fiscal deficit at 121.5% of RE in April-January" – With slower-than-projected growth in tax receipts, theCentre's fiscal deficit in the first ten months of the current fiscal stood at Rs.7.71 lakh crore or 121.5% of thefull-year target (revised estimate), according to data released by the Controller General of Accounts. In thecorresponding period last year, the deficit was 113.7% of the relevant annual target. – (FE Feb 27, 2019 p 2)

"GDP may grow by 6.7-6.9% in Q3: Economists" – The GDP growth rate is likely to further decelerate inthe third quarter of the current financial year, as compared to the first two quarters. Economists with independentagencies have pegged it at 6.7-6.9% against 8.2% for the first quarter and 7.1% for the sec-ond. Only EYIndia pegged it at 7.3-7.4%. The growth rate, along with the second advance estimates for FY19, are set tobe released by the Central Statistics Office. A report. – (BS Feb 26, 2019 p 4)

"Global business summit 2019: RBI's autonomy meant to further liquidity, credit" – Edited excerptsfrom an interview with Arun Jaitley, Finance Ministry. Finance Minister says the govt used every method atits disposal, statutory and non-statutory, in larger public interest to boost credit with India's growth in mind.He adds no institution is bigger than country. – (ET Feb 25, 2019 p 12)

"How markets can work for community benefit" – 'The Third Pillar: How Markets and the State Leave theCommunity Behind' by Raghuram Rajan. A book excerpt. – (HT Feb 26, 2019 p 11)

"India's economy losing momentum, data shows: With eight of the 16 high-frequency macroeconomicindicators in the red and only four in green, the Indian economy continues to remain weak, MintMacro Tracker shows" – The Indian economy's momentum continues to slow, shows the latest update ofthe Mint Macro Tracker, launched in October last year to provide a state-of-the-economy report each monthbased on trends across 16 high-frequency economic indicators. A report. – (Mint Feb 28, 2019 p 2)

"Pvt sector, media overly dependent on govt. It takes away checks and balances" – The search foranswers to public dissatisfaction and the rise of populism led Raghuram G Rajan to write The Third Pillar,which explores imbalances between state, markets and local communities. The economist and former RBIgovernor talks about society's contemporary challenges. Edited excerpts. – (TI Feb 24, 2019 p 21)

EMPLOYMENTMaira, Arun – "Good jobs, not UBI, are needed for a good society" – A good job implies a worker-

society contract, such that the workers are treated with dignity. An article. – (Mint Feb 27, 2019 p 15)

Sarkar, Avik – "The real reason behind low employment numbers" – It would be proper to wait for thenext round of the PLFS (2018-19) that is under progress and compare its findings with the results of thePLFS (2017-18) to make a more correct assessment of the employment rate in the country. An article.– (FE Feb 28, 2019 p 9)

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Singh, Devender – "Need to create jobs, here and now" – Demographic trends tell us that the working agepopulation will continue to rise till 2040. An article. – (HBL Feb 28, 2019 p 6)

FISCAL MANAGEMENT– RBI's SURPLUS

Sabnavis, Madan – "RBI transfers are crucial for fiscal management" – With expenditure commitmentsof the government increasing and the focus on welfare, revenue generation is a challenge, given the reformsbeing undertaken like GST or may be even the DTC at a later date. In such a situation, transferring higheramounts of RBI surpluses is a useful way of managing the Budget. An article. – (FE Feb 22, 2019 p 9)

INFLATION"Changing inflation dynamics" – In the recent past, economists struggled to decipher the changing inflation

dynamics in India. The pre-2013 period was characterized by core inflation converging to headline inflation.But, post 2013, this changed with headline inflation converging to the core. However, this hasn't been thecase past year. A graphical report. – (BS Feb 25, 2019 p 4)

INFLATION MEASUREMENTJayakumar, Tulsi – "India needs more accurate inflation measurement" – A better and more realistic

measure than the current headline inflation is needed to improve monetary policy. An article.– (Mint Feb 22, 2019 p 15)

UNIVERSAL BASIC INCOME SCHEMEBhoi, Barendra Kumar – "Towards a sustainable UBI" – Can PM-KISAN surmount implementation

hurdles? An article. – (FE Feb 28, 2019 p 9)

BANKING"Has NDA fixed India's banking woes?" – The NDA government has had success in increasing banking

coverage, but its record in repairing bank balance sheets has been a mixed one. A graphical report.– (Mint Feb 25, 2019 p 2)

ALLAHABAD BANK"Allahabad Bank is confident gross NPAs will come down in Q4: CEO" – Edited excerpts from an

interview with S S Mallikarjuna Rao, Managing Director and Chief Executive Officer, Allahabad Bank. Hesays that lender has targeted recovery and upgradation of Rs.2,000 crore in the fourth quarter of the currentfiscal year. – (Mint Feb 28, 2019 p 10)

"Allahabad Bank to cut MCLR by 10 bps across tenures" – A day after the Reserve Bank of Indiaremoved it from the list of lenders placed under the Prompt Corrective Action (PCA) framework, AllahabadBank said it will cut marginal cost of funds-based lending rates (MCLR) by 10 basis points for all the tenuresup to three years with effect from March 1. – (FE Feb 28, 2019 p 10)

AXIS BANK"Axis Bank likely to acquire a PSB if the 'right one comes about at the right price'" – Excerpts from

an interview with Amitabh Chaudhry, MD & CEO, Axis Bank. Chaudhry observed that there are somespaces, including consumer durables and two-wheeler financing, where the bank does not have a presence,and will look to fill these gaps. Mindful of the RBI recently imposing monetary penalties, including on hisbank, the Axis Bank honcho said the board and management do not want to see even a rupee as fine becauseit indicates something has gone wrong. He underscored that the bank is serious about complying with theRBI's rules and regulations. A report. – (HBL Feb 26, 2019 p 8)

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"Axis Bank plans organisational recast, synergy with subsidiaries" – Axis Bank's newly inducted ChiefExecutive and Managing Director Amitabh Chaudhry is reworking the organisation's structure, adding newroles as part of its larger growth strategy. With a plank of "One Axis", to project a combined offering fromparent (bank) and its subsidiaries, it is giving a thrust on synergy to get more share in customer wallet. Thebank will announce restructuring of its retail and wholesale segments, effective April 1, to avoid existingoverlaps and clarifying the organisational structure. The bank's wholesale structure will be divided betweencoverage and products and it also plans to relook at its retail structure and customer segments. A report.– (BS Feb 25, 2019 p 8)

"Axis Bank plans to take the acquisition route to insurance: Private sector bank aims to pick upstake in an insurer this year: CEO Amitabh Chaudhry" – After weathering storms of bad loans andprofitability, Axis Bank, under new Managing Director and Chief Executive Officer Amitabh Chaudhry, hasset its sights on entering the insurance business in a year's time via acquisition. A report.– (HBL Feb 22, 2019 p 8)

BANK OF BARODA"Bank of Baroda bags CSR Excellence Award" – Bank of Baroda has been awarded CSR Excellence a

prestigious award of TV9 held in Ahmedabad on February 16, 2019. – (HBL Feb 22, 2019 p 4)

– SALE OF NPAs

"Bank of Baroda to sell NPAs to raise Rs.5,929 crore" – State-owned Bank of Baroda (BoB) plans to sella series of non-performing assets (NPAs) totalling Rs.5,929 crore, including Rs.1,839 crore owed by debt-ridden telecom company Reliance Communications, on cash basis. Rs.262-crore NPA in Asian Colour CoatedIspat, Rs.200 crore in Monnet Power, Rs.143 crore in Sinhgad Technical Education Society, and Rs.266crore in GVK Power Goindwal Sahib, are among the others. – (HBL Feb 28, 2019 p 9)

BANK OF INDIA"BoI issues new shares for capital infusion" – Bank of India board approved issuance of fresh preferential

shares against Rs.4,638 crore received from the government, part of which the state-owned lender expectsto use as the capital for growth. The lender's capital as of December 31, 2018 was at Rs.1,743.72 crore ascompared to Rs.1,185.29 crore as of December 31, 2017. The bank reported a capital adequacy ratio as perBasel-III norms at 12.47% in Q3FY19, as against 12.05% in Q3FY18. – (FE Feb 27, 2019 p 8)

DCB BANK"DCB Bank introduces Open Banking platform" – DCB Bank announced the launch of its Open Banking

Platform, a significant step towards creating a collaborative ecosystem with enterprises, fintechs and appdevelopers, and enhancing customer-service delivery. – (HBL Feb 28, 2019 p 12)

FEDERAL BANK"Federal Bank awarded best tech bank of 2017-18" – Federal Bank was awarded the title of the Best

Technology Bank of the Year 2017-18 and the Bank has been adjudged runner up under the category of theMost Customer Centric Bank using Technology among small banks. The awards are presented to FederalBank in recognition to its innovative digital initiatives, adoption of green technologies and commitment inproviding high quality and consistent customer experience. – (FE Feb 27, 2019 p 8)

ICICI BANK"CBI issues look out circular against Kochhar" – After charging her for corruption and cheating last

month, the Central Bureau of Investigation (CBI) has alerted the immigration authorities at all the airportsand entry-exit points across the country to inform it if former ICICI Bank CEO Chanda Kochhar tries toleave the country. Highly placed sources said that a lookout circular (LoC) has been issued against ChandaKochhar. – (TI Feb 22, 2019 p 11)

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IDBI BANKBandyopadhyay, Tamal – "Corporate governance key to IDBI Bank's future" – In medical parlance,

IDBI Bank is probably being shifted from ICU (intensive care unit) to HDU (high dependency unit). Anarticle. – (BS Feb 25, 2019 p 10)

– LIC

"IDBI Bank, LIC ink bancassurance pact: The lender will now have to offer LIC's insurance productsat its branches" – IDBI Bank and Life Insurance Corporation of India have signed a bancassuranceagreement under which the lender will offer LIC's insurance products at its branches. "IDBI Bank as acorporate agent of LIC would get a window to provide LIC's entire gamut of insurance offerings to thebank's 1.80-crore customer base spread over 1,800 branches across the country," according to the bankstatement. – (HBL Feb 28, 2019 p 12)

INDIAN OVERSEAS BANK (IOB)"IOB board clears preferential issue" – The board of directors of Indian Overseas Bank approved the issue

of equity shares on preferential basis to Government of India towards the capital infusion of Rs.3,806 croreit had received for the financial year 2018-19. The bank said the board approved issue of 269.54 crore equityshares at a issue price of Rs.14.12 (including premium of Rs.4.12 an equity share). Last week, the Centrehad approved capital infusion of Rs.48,239 crore in 12 public sector banks in the current financial year toensure the lenders to be able to maintain regulatory capital requirements. – (HBL Feb 27, 2019 p 10)

"IOB won the IBA-Banking Technology Award" – Indian Overseas Bank has been adjudged the 'Winner'in the category of the Best Use of Data and Analytics for Business Outcome amongst Medium Banks byIndian Banks' Association in the much awaited IBA 14th Banking technology Conference 2018-19, Expo &Awards 2017-18 held in Mumbai. The Award was received by R Suresh, Zonal Manager of Indian OverseasBank Mumbai Zone on behalf of the MD & CEO of the Bank, R Subramaniakumar. – (BS Feb 28, 2019 p 6)

KOTAK MAHINDRA BANK"Foreign shareholding in Kotak Mahindra Bank capped at 45%" – Kotak Mahindra Bank has raised the

shareholding limit of FPIs to 45 per cent, from the current 43 per cent. RBI had earlier asked the lender topare promoter Uday Kotak's shareholding down gradually to 15 percent by 31 March, 2020.– (FE Feb 27, 2019 p 8)

"ING Group exits Kotak Mahindra Bank" – Kotak Mahindra Bank said that ING Group has exited asinvestor by selling its entire stake in the bank. ING Group had around 1.20 per cent stake in Kotak MahindraBank. – (IE Feb 23, 2019 p 15)

"PE funds have real opportunity: Kotak Mahindra's Manian" – Edited excerpts from an interview with KV S Manian, President Corporate, Institutional and Investment Banking, Kotak Mahindra Bank. He shareshis views on mergers and acquisition-led activities at the recently concluded Kotak Institutional Equities'Event-10th Chasing Growth. – (Mint Feb 22, 2019 p 13)

PUNJAB NATIONAL BANK"PNB board gives nod to Centre's Rs.5,908-crore capital infusion" – Punjab National Bank's board has

approved the proposed capital infusion of Rs.5,908 crore by the Central government. This will be donethrough the preferential allotment route, and the extraordinary general meeting (EGM) for shareholders'approval will be held on March 28. – (HBL Feb 28, 2019 p 9)

"PNB to slash MCLR by 10 bps from March 1" – Punjab National Bank (PNB) said it will reduce theMCLR by 0.10 percentage point for various tenor loans from March 1. There is a reduction in the marginalcost of funds based lending rate (MCLR) with effect from March 1, 2019, PNB said in a regulatory filing.– (IE Feb 28, 2019 p 14)

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RBL BANKMerwin, Radhika – "RBL Bank: Lending comfort: Good asset quality and aggressive lending have

been behind the bank's steady growth" – RBL Bank that hit the primary market in 2016, has put up ahealthy show over the past two to three years. Strong traction in loans, stable asset quality, steady improvementin net interest margins - leading to better return ratios - are positives for the stock. The shares of RBL Bankhave more than doubled since listing. An article. – (HBL Feb 25, 2019 p 7)

STATE BANK OF INDIA"SBI launches 'Numero YONO' - India's biggest inter-college quiz competition" – In an endeavour to

get the digital service platform YONO closer to India's youth, State Bank of India (SBI) announced thelaunch of India's biggest quiz contest - 'Numero YONO'. The competition, which is targeted to all the UnderGraduate (UG) and Post Graduate (PG) students between 18-30 years of age, will be conducted across all17 cities where SBI Local Head Offices are located. The winner of 'Numero YONO' would be conferredwith an annual scholarship of up to Rs.5.76 lakh. – (BS Feb 26, 2019 p 6)

"SBI: A steady climber" – The surge in debt inflows and EPFO money has catapulted SBI MF to the podium.Can it bag the top spot? An article. – (BS Feb 26, 2019 p 8)

– JET AIRWAYS

"SBI to hold 'urgent' meeting today with Jet, Etihad, other lenders" – In a bid to resolve various issuesbetween Jet Airways, Etihad Airways and lenders, State Bank of India has called for an urgent meeting. SBIis the lead lender of a consortium that has extended loans to Jet Airways. – (HBL Feb 27, 2019 p 3)

– PUNJAB NATIONAL BANK

"SBI, PNB ready to pump in Jet Fuel" – Government-owned State Bank of India (SBI) and Punjab NationalBank (PNB) have agreed to provide Rs.500 crore emergency funding for Jet Airways, subject to others inthe consortium of lenders not objecting, said people with knowledge of the matter. – (ET Feb 22, 2019 p 1)

– SALE OF NPAs

"SBI to sell NPAs worth more than Rs.1,000 crore" – State Bank of India (SBI) has decided to sell 487bad loans worth over Rs.1,000 crore in corporate, small and medium enterprise (SME) and housing segmentsto asset reconstruction companies (ARCs), other banks and financial institutions, according to a bank noticeseeking bids. The biggest chunk of such bad loans, 155, have been listed from SBI's New Delhi stressedasset branch. – (Mint Feb 26, 2019 p 7)

SYNDICATE BANK"Deposit rates likely to go up in short term" – Edited excerpts from an interview with Mrutyunjay Mahapatra,

Managing Director and CEO of Syndicate Bank. The Reserve Bank of India is keen on banks passing onlower interest rates down the line. He expects deposit rates to go up in the near future.– (Mint Feb 25, 2019 p 14)

– EMPLOYEE SHARE PURCHASE SCHEME

"Syndicate Bank to offer shares to employees at discounted rates" – Public sector lender SyndicateBank has proposed to launch Employee Share Purchase Scheme (ESPS) in the first week of March atdiscounted rates. Discounts will range from 23 to 25 per cent, based on the employee status in the staffhierarchy, with lower-grade employees getting the maximum discount. The bank hopes to mop up Rs.500-600 crore through the scheme, according to Mrutyunjay Mahapatra, Managing Director and CEO of thebank. – (HBL Feb 28, 2019 p 9)

– SREI EQUIPMENT FINANCE LTD

"Srei equipment finance to co-lend with Syndicate Bank" – Srei Equipment Finance Limited, a whollyowned subsidiary of Srei Infrastructure Finance has tied up with state-owned Syndicate Bank to jointlyprovide financing for construction and farm equipment. Under the arrangement, Syndicate Bank wouldleverage on its low-cost funds and co-lend equipment loans with Srei Equipment at a mutually agreed rate,according to a company statement. – (FE Feb 22, 2019 p 10)

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UCO BANK"US sanctions on Iran a boon for UCO Bank" – Renewed US sanctions on Iran's oil exports are giving a

boost to the profits of one of India's smaller state-owned banks, which has been struggling under the weightof a mountain of bad loans. Kolkata-based UCO Bank expects its privileged status processing refiners'payments for Iranian oil shipments to add more than $110 million to annual earnings, according to ChiefExecutive Officer Atul Kumar Goel. – (HBL Feb 23, 2019 p 5)

– FRAUDS

"CBI files case of loan fraud in UCO Bank" – The CBI has registered a case of fraud in UCO bank,wherein loans worth over Rs.21 crore were allegedly granted by a bank official in collusion with privatepersons on the basis of fake papers. It is alleged then Branch Manager of Jayanagar branch of the bank inBengaluru, sanctioned and disbursed home loans and property loans worth Rs.21.86 crore to 23 borrowersbetween 2013 and 2016. – (FE Feb 28, 2019 p 10)

UNION BANK OF INDIA"Union Bank of India wins global training and development leadership awards" – Union Bank of India

won the Global Training & Development Leadership Award announced by World HRD Congress, presentedby ET Now at the glittering function held at Hotel Taj Lands End, Mumbai. Union Bank of India won Awardsin following three categories namely, a) Excellence in Training & Development Award (Overall Award forBest Results based Training). b) Best use of Technology for Training. c) Best Development Program inPublic Sector for Top Management. – (BS Feb 28, 2019 p 6)

"Union Bank to use Rs.4,112-crore capital infusion to improve PCR" – Union Bank of India plans to usethe Rs.4,112-crore capital infusion from the government to improve its provision coverage ratio (PCR) towardsloan losses and step up credit. Rajkiran Rai G, MD and CEO, said the bank will make judicious use ofresources (as well as recoveries from stressed assets) to ensure that PCR goes up from 58.84 per cent in theDecember 2018 quarter to 70 per cent over the next 2-3 quarters and that the advances portfolio expands.– (HBL Feb 23, 2019 p 5)

UNITED BANK OF INDIA"United Bank of India ties up with Bajaj Allianz to provide General Insurance Solutions" – United

Bank of India has entered a tie-up under Corporate Agency Arrangement with Bajaj Allianz General InsuranceCo. Ltd. Together, they will provide General Insurance Solutions to their valued customers.– (Mint Feb 28, 2019 p 11)

GULF COUNTRIES– BANK CONSOLIDATION

"Bank mergers in the Gulf: Three's company" – An overbanked region sees some welcome consolidation.An article. – (Eco 430(9128) Feb 2-8, 2019 p 64)

BANK EXPOSURES– NBFCs

"RBI eases risk weights for some NBFC loans" – The Reserve Bank of India (RBI) on Friday allowedbank exposures to all non-banking financial companies (NBFCs), excluding core investment companies (CICs),to be risk weighted according to the ratings assigned by the rating agencies. Exposures to all NBFCs, excludingcore investment firms, will be risk weighted as per ratings assigned by rating agencies. A report.– (Mint Feb 23, 2019 p 20)

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BANK LENDING– USE OF TECHNOLOGY

"Banks must leverage technology while making lending decisions" – Banks must depend more ontechnology to screen borrowers and to monitor them, according to a top Finance Ministry official. This is notto substitute the "soft information" (like character of borrower) that a loan officer gathers, but to complementand, thereby, empower the loan officer to be able to screen and monitor the borrower better, KrishnamurthySubramanian, Chief Economic Advisor in the Finance Ministry, said at a NITI Aayog banking conference inthe Capital. A report. – (HBL Feb 23, 2019 p 5)

BANK RECAPITALISATION"Banking on capital" – A quick edit. – (Mint Feb 22, 2019 p 1)

"Funds infusion in PSBs not enough to support lending growth: Fitch" – Fitch Ratings on Wednesdaysaid government's $7 billion (around Rs.48,000 crore) funds infusion into public sector banks (PSBs) wouldnot be sufficient to support significantly stronger lending growth. Fitch estimates that banks will need anadditional $23 billion (around Rs.1.6 lakh crore) in 2019, after these latest injections, to sufficiently meetminimum capital standards. – (FE Feb 28, 2019 p 10)

Acharya, Namrata – "Still far from hitting the right note: Bulk of the recap funds to banks will gotowards provisioning, and it will take time before it leads to acceleration of credit growth" – NorthBlock's infusion of an additional Rs.48,239 crore in state-run banks last week brought the curtains down ona 2-year recapitalisation plan set in motion in October 2017; it adds up to a tidy Rs.1.96 trillion. You have fuelin the tanks for sure, but is it a journey towards a mirage? An article. – (BS Feb 28, 2019 p 14)

Iyer, Aparna – "Recapitalization of govt banks and a perfect lesson in burning capital" – Where has allthe money poured by the government into its weakest banks gone? If the stock market's collective wisdom isused as a fair measure, it looks like the majority of it is being seen as money down the drain. An article.– (Mint Feb 28, 2019 p 4)

Sree Ram, R – "Bank recap: Govt throwing good money after bad?" – The government's latest capitalinfusion into public sector banks has taken its total aid to over Rs.1 trillion for FY19, and nearly Rs.2 trillionfor the past two fiscal years. When the bank recapitalisation plan was first announced, the government hadtalked of an infusion of about Rs.1.55 trillion over a two-year period. An article. – (Mint Feb 22, 2019 p 4)

BANKING REFORMS"CEA bats for Nayak panel suggestions: Says institutionalising reforms will improve corporate

governance in the banking sector" – Chief Economic Advisor (CEA) Krishnamurthy Subramanianadvocated taking forward the P J Nayak committee's recommendations on governance reforms in publicsector banks (PSBs), saying until these reforms were institutionalised, the risk in the sector would persist.The government has shown the political will to let PSBs run independently without interference in theircommercial decisions. But let's also take a step back to do a reality check. A report.– (BS Feb 23, 2019 pp 1, 10)

"More bank reforms needed to support economic growth: NITI Aayog chief: Need 'glide path' toBasel III levels, says Rajiv Kumar" – NITI Aayog Vice-Chairman Rajiv Kumar has pushed for furtherbanking reforms, including spelling out a "glide path" for bringing down the country's bank capital adequacynorms to the level of Basel norms, or even lower, as is the case with China. A report.– (HBL Feb 23, 2019 p 5)

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BANKING REGULATOR - RBI– HARASSMENT COMPLAINTS

"At RBI, employees filed 50 harassment complaints over 20 years: The central bank had set up acommittee to deal with sexual harassment in 1998" – The Reserve Bank of India has seen 50 sexualharassment complaints over 20 years. The number was revealed following an application filed by BusinessStandard under the Right to Information Act. The central bank did not reveal a year-wise break-up on thesecomplaints, which is as of June 2018. However, an analysis of annual reports over the last five years showstwo complaints. One was recorded for 2017, the other in 2016. A report. – (BS Feb 23/24, 2019 p 6)

– STANDSTILL AGREEMENTS

"Central bank taking close look at 'standstill agreements': RBI plans to tighten norms on such dealsbetween promoters, lenders" – The Reserve Bank of India (RBI) has taken a serious view of the recentcases of 'standstill agreements' by companies with lenders to delay selling pledged shares. RBI sources saidthe central bank was closely monitoring the situation and, if necessary, would tighten norms to dissuadelenders from entering into such agreements with companies. – (BS Feb 22, 2019 pp 1, 13)

COOPERATIVE BANKS– RUPEE COOPERATIVE BANK

"RBI grants Pune's Rupee Cooperative Bank another 3-month extension" – Pune-based RupeeCooperative Bank has been granted a further three-month extension by the Reserve Bank of India (RBI) tillMay 30, 2019. The bank was put under directions by the Reserve Bank of India (RBI) over its deterioratingfinancial health in February 2013. When under directions, the bank will continue to undertake banking businesswith restrictions till its financial position improves. – (FE Feb 28, 2019 p 10)

CURRENCY NOTES"RBI to issue new Rs.100 notes soon" – The Reserve Bank of India (RBI) said it would shortly put into

circulation new-series Rs.100 denomination bank notes bearing the signature of its Governor ShaktikantaDas. The RBI will shortly issue Rs.100 denomination bank notes in Mahatma Gandhi (new) series bearingthe signature of Das, the central bank said. – (FE Feb 27, 2019 p 8)

DIGITAL PAYMENTS– CUSTOMER GRIEVANCES

"RBI's measures will make digital payments safer" – Regulation of payment gateways will lead to tightercontrol of frauds, while setting up ombudsman will mean faster resolution of consumer complaint. A report.– (BS Feb 27, 2019 p 11)

EXECUTIVE COMPENSATION"Compensation: RBI proposes guidelines for top-level officers of private, foreign lenders" – Come

FY2020, private sector banks and foreign banks in India may have to realign their compensation schemes fortheir top brass and key managerial personnel to reduce incentives towards excessive risk-taking, going by theReserve Bank of India's proposed compensation guidelines. These banks may be required to incorporatemalus (financial penalty) / clawback (taking back already disbursed money) clause in deferred compensationin the event of negative contributions of the bank in any year, give joining / sign-on bonus only in the form ofEmployee Stock Option Plan (ESOP), and make disclosure on remuneration in annual financial statements.– (HBL Feb 27, 2019 p 5)

"RBI pay norms may make private bank CEOs more accountable: Proposals to help improvetransparency in banking system" – The norms proposed by the RBI for compensation of chief executivesand board members of private sector banks has been viewed as an effort to improve transparency andaccountability of the banking system. – (H Feb 28, 2019 p 13)

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"RBI plan to cap CEO pay gets mixed reactions" – A Reserve Bank of India (RBI) proposal to prescribea threshold for variable compensation for private and foreign bank chief executives and whole-time directorshas evoked mixed reactions from experts and industry watchers. While some said putting a cap on variablepay should not deter executives from performing, others felt it would affect bankers' attitude towards risk-taking. – (Mint Feb 27, 2019 p 6)

– PRIVATE SECTOR BANKS

"RBI keeps bank CEOs on wait for FY18 bonus" – The Reserve Bank of India (RBI) is yet to clear thebonuses and stock options of the chief executive officers (CEOs) of private sector banks for 2017-18, evenas the curtains are set to come down on fiscal 2018-19. The logjam is due to the variable pay component ofa new compensation policy in the works, even as the financials of these banks are being gone over with a finetooth-comb. A report. – (BS Feb 25, 2019 pp 1, 8)

INSOLVENCY AND BANKRUPTCY CODE"Block insiders in credit committees" – Edited excerpts from an interview with Bryan Marsal, CO-CEO,

Alvarez & Marsal. Indian bankruptcy law is facing criticism as well as kudos depending on whom you talk to.He says it is evolving and is good for other emerging markets to emulate. – (ET Feb 27, 2019 p 14)

"IBC cases to get a boost after SC clears air on tax" – Many companies are coming forward to bid forbankrupt firms after the Supreme Court (SC) has removed a major deterrent in relation to tax demands madeby the tax department vis-à-vis write-back of loan waivers or haircuts. Lenders said more companies wereenquiring about bidding for stressed assets since the SC has made it clear in January that tax is not payableon haircut taken by lenders, which was considered as an income in the hands of the borrower company aftertakeover. While the Minimum Alternate Tax (MAT) is payable, the SC order has helped to clarify on thewrite back of loan waivers. The bidders had also sought waiver from the MAT, but this has not been granted.A report. – (BS Feb 25, 2019 p 3)

"IBC reigns supreme over other civil laws: Delhi HC: Observations come as it rejects Liberty'splea to stop SBI from invoking bank guarantee" – The Delhi High Court upheld the supremacy ofInsolvency and Bankruptcy Code (IBC) over other civil laws such as those of contracts and guarantees andsaid that only the National Company Law Tribunal (NCLT) or similar adjudicating authorities should dealwith the cases falling under the code. A report. – (BS Feb 23/24, 2019 p 3)

"IBC to play vital role in taking India's economy to greater heights: Official" – The Insolvency andBankruptcy Code (IBC) will play a significant role in India realising its dream of evolving into a $10-trillioneconomy in the foreseeable future, according to a top Government official. "This law (IBC) has come to stayand will take Indian economy to greater heights by promoting entrepreneurship and ensuring effective use ofcapital," according to Injeti Srinivas, Secretary, Ministry of Corporate Affairs. – (HBL Feb 27, 2019 p 4)

Merwin, Radhika – "The big picture on IBC" – The much-touted IBC is struggling to make significantheadway in hastening recovery and unlocking value of assets of defaulting companies. The slow pace ofresolution under the IBC, even two years after the Code was implemented, is a growing cause for concern.For most of the big cases and many more, the extended 270-day deadline has lapsed. A statistical report.– (HBL Feb 27, 2019 p 7)

– TAKEOVER REGULATIONS

"Sebi to tighten takeover regulations for IBC buys: Decision likely at Friday's board meeting" –New rules in the offing: * Sebi may do away with the provision that allowed a 'competent authority' to exemptan acquirer from the requirement of an open offer. * Only a court or a tribunal would be allowed to providesuch exemptions. * Experts said the move was aimed at reducing ambiguity and curbing the misuse of theregulations. * Sebi will change the wordings to ensure the exemptions are given only to lenders, and not anyother entity. A report. – (BS Feb 28, 2019 pp 1, 13)

– 10 –

INSOLVENCY RESOLUTION PROCESS"Lenders expect 2 more resolutions by end of March" – By the end of next month, lenders expect to

close the resolution of at least two names in the Reserve Bank of India's (RBI's) first list of major non-performing assets. These two are Essar Steel and Bhushan Power & Steel. Not enough to fulfill the centralgovernment's earlier target of closing the remaining eight cases on the list by March; however, some are inthe final stages. Alok Industries' resolution plan is being heard, Jyoti Structures' final leg of hearing on itsresolution plan is expected to start and bids have been received for Jaypee Infratech. A report.– (BS Feb 26, 2019 p 2)

"Lenders realise Rs.44,500 cr from insolvency resolution of steel assets: ICRA" – Of the 11 steelmaking entities named in the Reserve Bank of India's list of large corporate defaulters, four have completedtheir corporate insolvency resolution process (CIRP), with the lenders realising claims to the tune of Rs.44,500crore with an average haircut of 47 per cent. Rating agency Icra says that with Essar Steel and BhushanPower and Steel attracting interest from domestic and foreign investors, the financial creditors could realiseat least Rs.60,000 crore more as the resolution process of these entities is completed.– (BS Feb 26, 2019 p 2)

INTEREST RATES"Simply not in banks' interest" – Reserve Bank of India's rate cuts are proving to be ineffective in lowering

rates. A report. – (BS Feb 28, 2019 p 14)

LIQUIDITY CONSTRAINTS– REFINANCING LOANS AGAINST SHARES

"Market moved towards NBFC because banks cannot refinance loans against share pledges" –Edited excerpts from discussion with Jayesh Mehta, Managing Director & Country Treasurer at Bank ofAmerica; Somasekhar Vemuri, Senior Director at CRISIL Ratings and Ananth Narayan, Professor at SPJIMR.– (Mint Feb 25, 2019 p 14)

LOAN PRICING"Banks may set repo rate as benchmark: New loan pricing regime from April 1" – Most commercial

banks in India are likely to select RBI's repo rate as the external benchmark to decide their lending rates,from April 1. The repo rate is the key policy rate of the Reserve Bank of India (RBI).– (H Feb 26, 2019 p 13)

"Look at new external benchmarks for floating rate loans: RBI to IBA: The move acknowledgesbanks' contention that RBI's new benchmarks may lead to volatility in lending rates" – The ReserveBank of India (RBI) has asked the Indian Banks' Association (IBA), the representative body of commercialbanks, to look at new external benchmarks for floating rate loans. This, in a sense, acknowledges the bankingsector's contention that the central bank's prescribed menu of benchmarks will create volatility in lendingrates, leading to frequent changes in equated monthly instalments (EMIs). A Ficci-IBA survey of bankersfound that both the 91-day and 182-day treasury bills were highly volatile. A report. – (Mint Feb 22, 2019 p 8)

MICROFINANCE"How microfinance may lead to indebtedness" – In India, where access to the formal banking system is

restricted, microfinance emerged as an important and popular alternative in the 2000s. However, the 2010microfinance crisis in Andhra Pradesh, which saw a spate of suicides among over-indebted clients, exposedthe vulnerabilities in the microfinance model. – (Mint Feb 26, 2019 p 2)

"MFIs' loan book grows 43% to Rs.1.6L cr in Q3" – The microfinance loan book across lenders grew by43% year-on-year (y-o-y) to Rs.1.6 lakh crore in Q3FY19, led by the growth in the loan book of non-bankingfinancial companies listed as microfinance institutions (NBFC-MFIs). The loan book of NBFC-MFIs grewby 44% y-o-y to Rs.60,631 crore for the quarter ended December 2018, from Rs.42,137 crore, being able toshed the liquidity crunch in the system. A report – (FE Feb 26, 2019 p 10)

– 11 –

MOBILE WALLETS"Can't access your e-wallet? Here are some alternatives for making digital payments" – Several

consumers will not be able to use e-wallets such as Paytm, PhonePe, Mobikwik and Oxigen, among others,if they do not complete the KYC (Know-Your-Customer) procedure. While many are rushing to get theirKYC done, some are worried about making digital payments. For such worried users, BusinessLine hascollated a few options that they could consider for making mobile payments. A report.– (HBL Feb 26, 2019 p 8)

"Digital wallet players in danger of losing 80% of business with KYC deadline a week away" – Inwhat could hamper the Centre's efforts to encourage digital payments, mobile wallets in the country are likelyto witness a nearly 80 per cent decline in their user base post the February 28 deadline set by the RBI to meetKYC requirements. According to industry experts, the drop in user base is inevitable despite companiestrying their best to get 'full KYC' done for all their users through push notifications urging them to visitneighbourhood partner retail outlets with documents. A report. – (HBL Feb 22, 2019 p 1)

"RBI extends KYC deadline for e-wallets by 6 months" – In a major relief to consumers as well as mobilewallet companies, the RBI has extended the deadline for full know-your-customer (KYC) compliance by sixmonths. The deadline was supposed to end on February 28. The extension comes after intense lobbying bymobile wallet players and domestic internet groups with the central bank over the past few months.– (TI Feb 26, 2019 p 17)

MONETARY POLICY"Benign inflation, risks to growth led MPC to cut rate, change stance" – Benign inflation and possible

downside risk to growth due to continued global growth slowdown prompted the Reserve Bank of India tocut the policy repo rate to 6.25 per cent from 6.50 per cent and change the monetary policy stance to 'neutral'from 'calibrated tightening', indicate the minutes of the Monetary Policy Committee (MPC) meeting, whichtook place earlier this month. A report. – (HBL Feb 22, 2019 p 8)

Iyer, Aparna – "Why RBI panel took off its helmet and stepped out of the crease" – What made aninflation-worried monetary policy committee (MPC) turn into a growth benefactor in under two months? Abig surprise was that long-standing hawk Michael Patra voted for an interest rate cut at the meeting earlierthis month. An article. – (Mint Feb 22, 2019 pp 1, 6)

Nageswaran, V Anantha – "Two monetary policy meetings and one important message" – Both theFed and the RBI have forgotten the lesson of risk management in policymaking. An article.– (Mint Feb 26, 2019 p 14)

MONETARY POLICY TRANSMISSION"RBI top brass urges bank CEOs to lower lending rates" – The top brass at the Reserve Bank of India,

on Thursday, impressed upon top bankers the need for the recent cut in policy repo rate to translate into lowerlending rates. Bankers, however, emphasised that in the backdrop of the Employees' Provident FundOrganisation upping the interest on PF deposits from 8.55 per cent (in FY2018) to 8.65 per cent (in FY2019)and small savings rates continuing to remain relatively higher, they may have to up deposit rates. Hence,there is little scope for cutting lending rates. A report. – (HBL Feb 22, 2019 p 8)

MSME LENDING"Govt urges lenders to extend collateral-free credit to MSMEs" – Union Minister for MSME Giriraj

Singh on Monday urged banks to extend collateral free credit to MSMEs to create entrepreneurs who willthen be able to generate greater employment opportunities. Corpus of the Credit Guarantee Fund Trust forMicro and Small Enterprises (CGTMSE) scheme has been raised from Rs.2,500 crore to Rs.7,500 crore.– (FE Feb 26, 2019 p 10)

– 12 –

NATIONAL PAYMENTS CORPORATION OF INDIA (NPCI)Gopakumar, Gopika – "NPCI appoints Praveena Rai as COO, Arif Khan as CDO" – The National

Payments Corp. of India (NPCI) has announced the appointments of Praveena Rai as the chief operatingofficer (COO) and Arif Khan as the chief digital officer (CDO) with effect from 20 February and 18February, respectively. Rai, who was earlier in charge of the cash management portfolio at Kotak MahindraBank Ltd, will be in charge of marketing and business development. – (Mint Feb 22, 2019 p 17)

NIBM"Couple set record by earning PhD together" – A city-based couple entered the record books by earning

doctorates on the same day. National Institute of Bank Management (NIBM) director K L Dhingra and hiswife Neelam had registered for a PhD the same day and appeared for the entrance exam too on the sameday "K L Dhingra, along with his wife, is now included in the India Book of Records and the World Book ofRecords," NIBM said in a statement. The institute added that the Dhingras were the first couple to beawarded a doctorate the same day "The couple received their PhD degrees on November 16, 2018, fromAnil Sahasrabudhe, chairman of All India Council for Technical Education," according to NIBM. Dhingra didhis doctorate on "corporate governance in central public sector enterprise", Neelam did hers on "corporatesocial responsibility in central public sector enterprises". – (TI Feb 27, 2019 p 6)

PROMPT CORRECTIVE ACTION"Another three govt banks to be out of PCA soon" – The list of public sector banks exiting the RBI's

Prompt Corrective Action framework could increase to six as the government expects Corporation Bank,Allahabad Bank and Dena Bank to soon come out of the PCA net. This would lead to six out of eleven banksbeing out of the PCA. A report. – (IE Feb 22, 2019 p 15)

"Capital support: Corp Bank, AllBank out of PCA framework" – The Reserve Bank of India (RBI) tookAllahabad Bank, Corporation Bank and Dhanlaxmi Bank out of the prompt corrective action (PCA) framework,following an improvement in the two public-sector banks' (PSBs) financial ratios after a fresh round ofcapital infusion in them. Dhanlaxmi Bank also out of PCA; United Bank of India, UCO Bank, Dena Bank,IDBI Bank and Central Bank of India continue to be under RBI watch. – (FE Feb 27, 2019 pp 1, 2)

"FinMin expects 3-4 more banks to come out of RBI's PCA framework this year" – The FinanceMinistry expects 3-4 more lenders to come out of weak bank list of the Reserve Bank in the next 6-8 monthson account of improvement in financial health amid capital infusion and falling bad loans. The RBI may, in thenext few weeks, take a decision to remove Corporation Bank and Allahabad Bank out of PCA supervision asthey had done in the case of Bank of India, Bank of Maharashtra and Oriental Bank of Commerce lastmonth. A report. – (HBL Feb 25, 2019 p 13)

PUBLIC CREDIT REGISTRYVora, Harsh – "Why India needs to set up a public credit registry" – It will ensure higher disbursement of

credit to MSME sector, help contain non-performing assets. An article. – (Mint Feb 22, 2019 p 14)

PUBLIC SECTOR BANKS"Beyond PCA: Public sector banks need a new governance structure" – An editorial.

– (BS Feb 28, 2019 p 9)

– HOUSING FINANCE

"PSU banks step up to wrest away mortgages from NBFCs" – State-run lenders are stepping up theirloans to home buyers armed with better liquidity and lower rates. Large public sector lenders such as StateBank of India and Bank of Baroda have launched special schemes to wrest market share away from privatebanks and home finance companies that are facing a liquidity squeeze and higher cost of funds. A report.– (ET Feb 26, 2019 p 12)

– 13 –

– SALE OF NPAs

"Under scanner: Finance ministry asks PSBs to submit asset sale details to ARCs" – The financeministry has asked public-sector banks (PSBs) to submit details of their sales of stressed assets to assetreconstruction companies (ARCs) between FY12 and FY18 to scan for potential irregularities. Bankers saidthe move came amid suspicion that some bad assets could have fetched more but were sold to ARCs belowmarket value due to potential collusion of bankers and promoters of the stressed firms.– (FE Feb 27, 2019 p 2)

– SHARES

"PSBs surge on govt's capital infusion announcement: Stocks of 12 public sector banks, which willget fresh capital from centre, rose 2-19%" – Shares of public sector banks (PSBs) surged after thegovernment announced fresh capital infusion of Rs.48,239 crore in state-run banks to help them meet stricterregulatory requirements and boost credit growth. The benchmark index Sensex gained 0.40% to close at35,898.35 points, while Bankex gained 0.23% to close at 30,222.59 points. A report.– (Mint Feb 22, 2019 p 7)

PURCHASES OF COMMERCIAL PAPERS"Commercial paper buys by banks fall 28%" – Bank purchases of commercial papers (CP) plunged 28 per

cent between mid-September and early February as para banks, hitherto the primary issuers of such short-term debt securities, switched to long-term bonds and bank loans after infrastructure financier IL&FS defaultedon scheduled repayments. A report. – (ET Feb 23, 2019 p 11)

RETAIL LENDING"Off PCA hook, banks betting on retail loans" – Exiting the Reserve Bank of India's (RBI's) prompt

corrective action (PCA) framework may not exactly be a lease of life for banks. However, it certainly pavesthe way for them to scale up their loan book, especially to retail, micro, small & medium enterprises (MSME)and the agriculture sector. Senior executives of banks that have come out of the PCA said lenders wereengaged in improving credit underwriting standards under the framework. A report. – (BS Feb 28, 2019 p 4)

WAGE NEGOTIATIONS"Bank staff wage negotiations with IBA hit a roadblock: Two officers' associations strike a discordant

note" – The 11th round of wage negotiations between United Forum of Bank Unions (UFBU) and theIndian Banks' Association (IBA) has hit an impasse with two officers' associations in the UFBU refusing tobe a part of the deliberations. – (H Feb 23, 2019 p 14)

WILFUL DEFAULTERS"13 banks seek details on Mallya's UK assets" – The 13 state-owned Indian banks which are trying to

claw back the Rs.10,000 crore that Vijay Mallya owes them by legally seizing assets he owns in England arefacing delays as many of the assets they were hoping to get their hands on are not in his name. A report.– (TI Feb 23, 2019 pp 1, 12)

"Wilful defaults are rising despite threat of insolvency action" – Despite lenders using the Insolvency andBankruptcy Code (IBC) and other means to recover loans and check defaults, most of them have seen asubstantial jump in wilful defaults in 2018, shows data from Cibil. 1,484 cases have been admitted to thebankruptcy court between January 2017 and December 2018. A report. – (Mint Feb 23, 2019 pp 22, 21)

RBI CIRCULAR"Auction of Government of India Dated Securities" – (RBI Circulars RBI/2018-2019/131 Ref.No.IDMD/

2394/08.02.032/2018-19 dated 25.08.2019)

"Establishment of Branch Office (BO) / Liaison Office (LO) / Project Office (PO) or any other placeof business in India by foreign entities" – (RBI Circulars RBI/2018-2019/132 A.P. (DIR Series) CircularNo. 20 dated 27.08.2019)

– 14 –

"Harmonisation of different categories of NBFCs" – (RBI Circulars RBI/2018-2019/130 DNBR (PD)CC.No.097/03.10.001/2018-19 dated 22.08.2019)

"Interest Subvention Scheme for MSMEs" – (RBI Circulars RBI/2018-2019/129 DNBR (PD) CC.No.096/03.10.001/2018-19 dated 22.08.2019)

"Micro, Small and Medium Enterprises (MSME) sector- Restructuring of Advances" – (RBI CircularsRBI/2018-2019/127 DBR.No.BP.BC.26/21.04.048/2018-19 dated 22.08.2019)

"Review of Instructions on Bulk Deposit" – (RBI Circulars RBI/2018-2019/128 DBR.DIR.BC.No.27/13.03.00/2018-19 dated 22.08.2019)

"Risk Weights for exposures to NBFCs" – (RBI Circulars RBI/2018-2019/126 DBR.BP.BC.No.25/21.06.001/2018-19 dated 22.08.2019)

"Storage of Notes and Coins" – (RBI Circulars RBI/2018-2019/133 DCM (Plg.) No.2128/10.25.007/2018-19 dated 28.08.2019)

AGRICULTURE & RURAL DEVELOPMENT

REGIONAL RURAL BANKS"Merger of regional rural banks within same state likely" – The government is looking at the possibility of

merging regional rural banks (RRBs) operating within the same state and has urged the state-owned banksto explore such options, as it wants further consolidation among RRBs. It eventually wants to bring themdown to a more manageable number of 10-15. There are 56 RRBs functioning in the country, and State Bankof India, the largest bank, is the biggest sponsor with 14 RRBs. Already, around 10 have been merged whichwill be effective from April 1 this year. – (ET Feb 27, 2019 p 11)

INDUSTRY

INDUSTRIAL POLICYSingh, Nirvikar – "Industrial policy for India" – Indian policymakers just do not seem able to make a clear

enough assessment of where growth will occur, where India's opportunities are, and how to create a playingfield in which the most dynamic and well-run Indian firms can grow and prosper. An article.– (FE Feb 25, 2019 p 7)

INFRASTRUCTURE LEASING & FINANCIAL SERVICES"NCLAT's order on IL&FS rewards imprudence and ignorance at banks" – As court orders go, the

latest by National Company Law Appellate? Tribunal (NCLAT) on Infrastructure Leasing and FinancialServices Ltd (IL&FS) was bizarre. It ruled that all IL&FS loans should not be tagged as non-performingassets (NPAs) by banks, unless the court permits them to do so. This begs the question as to whetherNCLAT has acted beyond its authority. – (Mint Feb 27, 2019 p 4)

"No NPA tag for IL&FS accounts without our nod, says NCLAT" – No bank or financial institution candeclare the accounts of debt-ridden IL&FS and its group companies as non-performing assets without theNCLAT's permission, according to the appellate tribunal. A report. – (HBL Feb 26, 2019 p 1)

Mukherjee, Andy – "An intruder undermines the Reserve Bank" – The NCLT ruling erodes RBI'spowers over banks and non-bank finance firms. An article. – (Mint Feb 27, 2019 p 6)

– 15 –

NON-BANKING FINANCE COMPANIES"Have fund-raising concerns for NBFCs eased?" – The fund-raising challenges of non-banking financial

companies (NBFCs) because of asset-liability mismatch seem to have eased marginally. In January, therewas an uptick in the share of corporate bond issuances by the NBFC sector, reflecting renewed confidenceamong issuers and investors. In fact, the proportion of fresh corporate bond issuances by NBFCs saw anotable decline from 71.6% in July last year 64.6% in August. In January, according to a CARE Ratingsstudy, it rose to 82.2% of the corporate bond issuances. A graphical report. – (FE Feb 23, 2019 p 9)

Nandakumar, V P – "Harmonising NBFCs: Needed, a new risk-weight mechanism" – An article.– (HBL Feb 25, 2019 p 15)

Sinha, Shilpy – "Dealing with NBFC risks: Loosen the bank strings" – Since the IL&FS implosion,shadow banking has been the talk of the town. You can't wish them away, so the RBI should help theirconversion into banks. An article. – (ET Feb 27, 2019 p 14)

SMALL SCALE INDUSTRY

MSMEs"Optimism grows among MSEs in Q3" – Micro and small enterprises (MSEs) are becoming more optimistic

about their business prospects, shows the latest round of the CriSidEx survey. The CriSidEx index rose to 128in Q3FY19, the highest score since its inception. In comparison, the index was at 107 in Q3FY18. Theimprovement in the index over the previous quarter was on account of an improvement "in the order booksize and employee base for manufacturing MSEs and an increase in profit after tax margin and employeebase for services MSEs," states the report prepared by Crisil and Sidbi. A report. – (BS Feb 22, 2019 p 6)

INTERNATIONAL ECONOMICS

GERMANY"Germany's economy: Time to worry" – An economic golden age in Germany could be coming to an end.

An article. – (Eco 430(9129) Feb 9-15, 2019 p 8)

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Feb 18, 2019 Supl. pp 1-16)

WORLD BANK"A new boss for the World Bank: A qualified pass" – David Malpass is America's candidate to lead the

World Bank. He should get the job. An article. – (Eco 430(9129) Feb 9-15, 2019 p 10)

LABOUR & PERSONNEL MANAGEMENT

EMPLOYEES PROVIDENT FUND"EPF interest rate hiked to 8.65% ahead of polls" – The Employees' Provident Fund Organisation (EPFO),

the retirement fund manager under the union labour ministry, raised interest rate on deposits for its 60 millionsubscribers to 8.65% for 2018-19, paring its reserves to the lowest level in three years. The retirement fundmanager's reserves will fall to the lowest level in three years following the rate revision. A report.– (Mint Feb 22, 2019 pp 1, 6)

– 16 –

MANAGEMENT

LEADERSHIPNayar, Vineet – "From people manager to thought leader" – As routine tasks are automated, humans will

have to learn the art of inspiring others around them. An article. – (Mint Feb 22, 2019 p 11)

MANAGEMENT EDUCATIONGogate, Kanchan – "Boosting their business acumen" – With evolving market dynamics, academicians

feel that B-schools in the country should be instrumental in helping students understand a changing businessscenario and mould entrepreneurial mindset to bridge the skill gap. An article. – (ET Feb 22, 2019 p 9)

MISCELLANEOUS"Mukesh Ambani is first Indian in top 10 rich list: Net worth estimated at $54 billion; Amazon's Jeff

Bezos retains top slot with $147 billion" – Indian's richest individual Mukesh Ambani, CMD of RelianceIndustries, figures in the top 10 richest individuals globally as per the 'Loong Palace Hurun Global Rich List2019. Coming in at position eight globally, he is the first Indian to achieve this position as also the only Asianin this year's list. – (H Feb 27, 2019 p 13)

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