Volume XXXI Number 13 December 28, 2015

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 14

D. INDUSTRY 15

E. SMALL SCALE INDUSTRY 16

F. INTERNATIONAL ECONOMICS 16

G. LABOUR & PERSONNEL MANAGEMENT 16

H. MANAGEMENT 17

– 1 –

BANKERS' BRIEF Vol. XXXI No. 13December 28, 2015

ECONOMY"CEA for wider tax base, better quality spending in FY17" – Nominal GDP growth in the next fiscal

'might not be significantly greater' than the sharply reduced estimate of 8.2% for the current year, accordingto the government's chief economic adviser, Arvind Subramanian. Also he said expanding the tax base has tobe the central medium-term objective as we have such few taxpayers relative to voters. A report. – (FE Dec23, 2015 pp 1, 2)

"Economic complexity" – One more study - released this week by the Center for International Developmentat Harvard University - confirms that India will remain the fastest growing economy in the world. Accordingto the growth projections based on economic complexity, India will grow at an annual pace of 7% in thecoming decade. Economic complexity looks at productive capacity of the economy in terms of diversity andsophistication in its exports. A quick edit. – (Mint Dec 23, 2015 p 1)

"Economic growth in India actually isn't that bad: The challenge is earnings growth, says SaurabhMukherjea of Ambit Capital" – Life (after Fed hike) will be very similar over the next year and year-and-a-half, similar to what it has been over the past year, year-and-a-half, according to Saurabh Mukherjea, CEO,Institutional Equities at Ambit Capital. An interview. – (HBL Dec 18, 2015 p 6)

"Economists against deferring fiscal deficit target dates" – Economists have cautioned that any defermentof the government's fiscal goals would prove counter-productive and raise the interest payment burden. Thecomments came as Chief Economic Advisor (CEA) Arvind Subramanian recommended re-assessment ofthe fiscal consolidation road map on account of declining nominal economic growth. A report. – (BS Dec 19,2015 p 3)

"A few silver linings" – At 7.5%, India's growth is better than many EU nations, but with timely reforms it canbe pushed above 9%. An editorial. – (HT Dec 21, 2015 p 10)

"Govt pares outlook for growth in this fiscal year" – In a candid assessment, the finance ministry saidwhile the going has been good for the economy so far, tough times lie ahead. In the mid-year economicreview released, it scaled down the growth projection of the economy to 7-7.5% in the current fiscal, asopposed to 8-8.5% forecast in February. The review cited weak demand as the central challenge facing theIndian economy; it also pointed out that macroeconomic cushions, such as falling international oil prices,would no longer be available. Given the additional expenditure on account of the Seventh Pay Commission'srecommendations, the finance ministry made out a case for relaxing fiscal deficit targets for next year. Areport. – (Mint Dec 19, 2015 pp 1, 2)

"Indian economy to more than double in 10 years, says Sinha" – The size of the Indian economy willmore than double to $5 trillion if 7 per cent growth rate is sustained for next 10 years, according to JayantSinha, Minister of State for Finance. A report. – (FE Dec 20, 2015 p 3)

"Mid-year economic review has presented a very realistic picture" – Edited excerpts from an interviewwith Shaktikanta Das, Economic Affairs Secretary. – (Mint Dec 21, 2015 p 21)

"Who's afraid of the Fed?" – Unlike mid-2013, India is well placed to weather bouts of volatility. An editorial.– (HBL Dec 18, 2015 p 8)

Bhalla, Surjit S – "Jaago - aur jaagte raho: The GDP price deflator is negative, personal consumptiondeflator at a record low. Yet, pulses don't allow a rate cut" – What can one do for stressed assets, andlack of demand (low capacity utilisation) and declining prices, and low animal spirits? One can cut interestrates. An article. – (FE Dec 19, 2015 p 6)

Chakravarty, Manas – "Why does the world's fastest growing economy need a stimulus?" – Thegovernment needs to make up its mind. It has been shouting from the rooftops about India being the fastestgrowing major economy. Where then is the crying need, as the mid-year review of the economy advocatesso strongly, for monetary and fiscal stimulus? Or does the government, like many of us, have this naggingfeeling that it really doesn't feel like 7% growth? An article. – (Mint Dec 22, 2015 pp 3, 4)

– 2 –

CAPITAL OUTFLOWS"India can see some capital outflow post Fed hike: Former RBI governor C Rangarajan says the

negative impact is not expected to be severe" – The country may see some capital outflow and weaknessin stocks following the rate hike by US Federal Reserve, but the negative impact is not expected to be severe,according to the Dr C Rangarajan, former RBI Governor. – (FE Dec 18, 2015 p 8)

CURRENT ACCOUNT DEFICIT"Cad dips to $8.2 billion in September quarter" – India's current account deficit (CAD) narrowed to $8.2

billion (1.6% of gross domestic product) in the September 2015 quarter from $10.9 billion (2.2% of GDP) inthe year-ago quarter. However, CAD was up on a sequential basis from $6.2 billion (1.2% of GDP) in theJune 2015 quarter. – (BS Dec 23, 2015 p 1)

FOREIGN DIRECT INVESTMENT"Government targeting 30% increase in FDI" – The government is targeting a 30% rise in the inflows of

foreign direct investment (FDI) annually in the coming years, aided by the government's Make in Indiaprogramme, according to Amitabh Kant, Secretary, Department of Industrial Policy and Promotion (DIPP).A report. – (FE Dec 18, 2015 p 3)

FOREIGN EXCHANGE RESERVES"Forex reserves grow $407.9 mn to $352.5 bn" – Foreign exchange reserves as on December 4 rose by

$407.90 million from a week ago to $352.50 billion, according to data from the Reserve Bank of India.Foreign currency assets (FCA) which forms a key component of the reserves rose by $387.70 million fromthe previous week to $329.63 billion. Gold reserves, however, have remained stable at $17.54 billion. Thecountry reserve position in the IMF stood at $1.30 billion, up $4.9 million from the previous week. – (FE Dec19, 2015 p 8)

GST"Remove additional tax in GST, says Rangarajan" – The proposed 1 per cent additional tax on inter-state

sales is against the spirit of Goods and Services Tax (GST) and that should not be implemented, according toformer RBI Governor Dr C Rangarajan. I think GST is a good measure. Certainly that 1 per cent tax, thatwas contemplated, goes against the spirit of GST, and that should not be implemented. – (BS Dec 22, 2015 p 4)

NITI A AYOG"Poverty has fallen in every state (as) economy has grown faster than at any time post-1947" – NITI

Aayog vice-chairman Arvind Panagariya insists that growth rate will touch the 8% mark soon, claims thatIndia will rank even better in ease of doing business once new changes are taken into account, and saysstates have a more relationship with NITI Aayog as compared to the Planning Commission. An interview.– (FE Dec 20, 2015 p 4)

PUBLIC DEBT MANAGEMENT"Govt to set up debt management agency through executive order" – The government will set up a

Public Debt Management Agency (PDMA) through an executive order, according to the finance ministry.The agency will be non-statutory and an interim arrangement till the time the government introduces legislationin this connection and secures Parliament's nod. – (Mint Dec 19, 2015 p 2)

– 3 –

BANKING

GENERALAnand, Rajiv – "Banking: Future of banking lies in wearables" – An article. – (ET Wealth Dec 21, 2015 p 27)

Shukla, Saloni – "When banks became Kirana shops" – It has been a tough year for banks. In a bid to makethemselves more relevant, they chased customers with apps & wallets, selling everything from coriander todinner tables. Hopefully, they won't drift far from their core function. An article. – (ET Dec 23, 2015 p 18)

ALLAHABAD BANK

– BANK CAPITAL

"Allahabad Bank raises Rs.1,000 crore" – Allahabad Bank has raised Rs.1,000 crore by issuing tier-IIbonds on a private placement basis. The Bank has successfully raised Basel III compliant Tier-II bondsaggregating to Rs.1,000 crore through private placement. The Tier-II bonds are eligible for inclusion in Tier -II capital of the bank. – (Mint Dec 22, 2015 p 15)

ANDHRA BANK"Andhra Bank launches digital wallet" – Andhra Bank launched Andhra Bank Cube a Digital Wallet in

association with CITRUS. – (ET Dec 21, 2015 p 4)

AXIS BANK"Axis Bank to offer electronic signature facility now" – Axis Bank has teamed up with a digital security

company, e-Mudra, to offer digital signature facility to its customers, a service that will facilitate an Aadhaarholder to digitally sign a document within seconds. – (ET Dec 19, 2015 p 6)

"Future retail signs bond deal with Axis Bank" – Future Retail, India's largest modern retailer, has signeda unique bond deal with Axis Bank, from which it raised Rs 300 crore recently. The company will reward thebank for holding the bond till maturity by paying a higher premium on the principal amount. – (ET Dec 23,2015 p 10)

BANDHAN BANK"Bandhan Bank plans to fund small MFIs, home-grown start-ups" – Bandhan Bank, which remains

cautious about growing its loan portfolio in general banking space, is planning to support small microfinanceinstitutions (MFIs) and homegrown startups by funding them. A report. – (FE Dec 22, 2015 p 10)

"IFC, GIC representatives may join bank board by fiscal end" – Representatives from the InternationalFinance Corporation (IFC), a member of the World Bank Group, and Singapore's sovereign wealth fund GICmay join Bandhan Bank's board by this fiscal-end. By March, we expect both GIC and IFC to join the board.It will be good for the bank, if they join the board, according to Chandra Shekhar Ghosh, MD & CEO,Bandhan Bank. – (FE Dec 22, 2015 p 10)

BANK OF BARODAMerwin, Radhika – "BOB: Banking on its new Chief" – An article. – (HBL Dec 21, 2015 p 2)

BANK OF INDIA"BoI bags prestigious award" – Bank of India has been conferred with IWP (Inspiring Work Places 2015) &

'Best HR Technology Award' by banking frontiers at Mumbai on 15th December 2015. – (ET Dec 21, 2015 p 4)

– 4 –

CANARA BANK"Canara Bank to raise Rs.2,400 cr through bonds" – Canara Bank said it plans to raise Rs.2,400 crore

from bonds to fund business growth. It has received 'IND AAA' rating with stable outlook to the proposedTier II bond issuance programme. – (FE Dec 23, 2015 p 10)

DENA BANK"Dena Bank, SBI Life tie up for group life insurance" – Dena Bank has tied up with SBI Life Insurance

Company to provide Group Life Insurance coverage to its housing loan borrowers under the 'Dena GrihaswamiSuraksha Yojana'. – (FE Dec 19, 2015 p 8)

IDBI BANK

– DISINVESTMENT PROGRAMME

"IDBI Bank may be first on the block when strategic sale process is ready: FinMin to come up withwater-tight norms next fiscal to allay fears of officials" – The government's disinvestment programmeappears to have come undone due to lacklustre market conditions and the reluctance of the bureaucracy topush strategic sale of public sector units for fear of enquiry. Budget 2015-16 had targeted raising Rs.69,500crore from PSU stake sale (Rs.41,000 crore from minority stake sale and Rs.28,500 crore from strategicsale), but the Centre has been able to mop up Rs.12,701 crore via the first route. IDBI Bank will be first upfor strategic sale. The proposal is in final stages but market valuations have to be right, according to aFinance Ministry official, adding that it could be on the lines of Axis Bank, which was formerly UTI Bank.The Centre holds 76.50 per cent in IDBI Bank and, according to officials, it may not fully exit the bank evenafter a strategic sale of its equity, but become a minority stakeholder. A report. – (HBL Dec 23, 2015 p 4)

INDIAN OVERSEAS BANK"We are focusing on retail lending for a turnaround: IOB Chief" – Edited excerpts from an interview

with R Koteeswaran, Chief Executive Officer, Indian Overseas Bank. RBI instruction to us is to improve ourCASA, prune administrative costs, reduce NPAs and do more recoveries. – (ET Dec 21, 2015 p 14)

INDUSIND BANKMerwin, Radhika – "IndusInd Bank: Performing under pressure" – The bank has done well in tough

times and is well-poised to ride the revival. An article. – (HBL Dec 21, 2015 p 4)

KOTAK MAHINDRA BANK"Don't privatise banks, broad base shareholding below 50%" – An interview with Uday Kotak, Chief,

Kotak Mahindra Group. – (IE Dec 22, 2015 p 13)

LAKSHMI VILAS BANK"Lakshmi Vilas Bank gets new MD" – Lakshmi Vilas Bank said Parthasarathi Mukherjee will be its new

managing director (MD) and Chief Executive Officer (CEO). The Reserve Bank has given its approval forappointment of Mukherjee as new MD and CEO of the bank for three years from the date of taking charge.– (HBL Dec 22, 2015 p 10)

RBL BANK (RATNAKAR BANK)"Pre-IPO placement: RBL Bank raises Rs.488 crore: Investors include ADB, CDC Group" – Private

lender RBL Bank has raised Rs.488 crore via pre-IPO preferential placement to international investorsAsian Development Bank, CDC Group Plc, family offices and long-only funds such as DVI Fund (Mauritius)Ltd and Rimco (Mauritius) Ltd. – (ET Dec 21, 2015 p 1)

– 5 –

STATE BANK OF INDIA"State Bank of India expects credit growth below target this year: The target for this year was 14 per

cent; a credit growth of 16 per cent is expected in 2016" – The State Bank of India is expected to seea credit growth of 16 per cent in 2016, owing to the growth in gross domestic product (GDP), though it isexpecting a lower growth than that of the current fiscal year. A report. – (BS Dec 18, 2015 p 5)

– BANK CAPITAL

"SBI gets nod to raise Rs.12 k cr via Basel-III compliant bonds" – State Bank of India (SBI) said in anexchange filing that the bank has received authorisation from its committee of directors, authorised by theboard, to raise up to Rs.12,000 crore through bonds. SBI said that the approval has been received to raisefunds through Basel-III compliant Tier-II bonds through the private placement route. – (FE Dec 22, 2015 p 10)

– BANK CHARGES

"To shore up fee income, SBI set to increase service charges from Jan 1" – Come New Year, and StateBank of India will hike charges on a range of services, including safe deposit lockers, transactions declined atATMs due to insufficient balance, select debit card issuances, and also re-introduce processing fees forhome and car loans. A report. – (HBL Dec 21, 2015 p 15)

STATE BANK OF TRAVANCORE

– BANK CAPITAL

"SBT plans to raise Rs.1,250 cr via Basel III-compliant bonds" – State Bank of Travancore said in anexchange filing that the executive committee of the board of directors is scheduled to meet on December 28to consider and approve raising of up to Rs.1,250 crore through Basel III-compliant Tier-II bonds. – (FE Dec22, 2015 p 10)

SYNDICATE BANK

– BANK CAPITAL

"Syndicate Bank raises Rs.750 crore" – Syndicate Bank Ltd. has raised Rs.750 crore by issuing bonds. Thebank has issued unsecured redeemable non-convertible Basel III Compliant 10-year tier-II bonds in thenature of debentures (bonds) for inclusion in tier-II capital aggregating to Rs.750 crore. The issue is fullysubscribed. – (Mint Dec 19, 2015 p 8)

UCO BANK"Ashish Jha, UCO Bank bags National Award" – Ashish Jha joined UCO Bank as Probationary Officer in

May 2014 and is presently posted at Salt Lake Zonal Office, under Kolkata Circle. He has been conferredwith National Award under Role Model category for Empowerment of Person with Disabilities on 3rdDecember 2015 by Union Finance Minister Arun Jaitley. – (ET Dec 21, 2015 p 4)

UNION BANK OF INDIA

– CENTRAL BANK OF INDIA

"Moody's retains ratings of Union Bank, Central Bank" – Moody's affirmed the local and foreign currencydeposit ratings of state-run lenders, Union Bank of India and Central Bank of India. The global agency hasalso kept the rating outlook for Union Bank at positive and changed the same for Central Bank to stable fromnegative. – (FE Dec 22, 2015 p 10)

– 6 –

UNITED BANK OF INDIA

– BANK CAPITAL

"United Bank gets board nod to raise Rs.1,500 crore" – United Bank of India is planning to raise Rs.1,500crore through preferential allotment of shares. The Board of Directors at its meeting approved to raise equitycapital, the bank said in a BSE filing. – (FE Dec 19, 2015 p 8)

YES BANK"YES Bank makes three key hires" – YES Bank has decided to appoint three key officials, two of them

from other private sector banks. The bank has appointed Neeraj Dhawan as Group President and Chief RiskOfficer - Retail & Business Banking. Mr Dhawan comes from ICICI Bank, where he was working asGeneral Manager & Head - Retail Risk. Rajan Pental has been appointed as Group Head - Retail Lending,Retail Banking Assets group. Mr Pental was with HDFC Bank where he was designated as Business Head- Secured Loans & Rural Sales at a national level. – (H Dec 23, 2015 p 7)

CHINA"China to make monetary policy more flexible in 2016: Xinhua" – China will make its monetary policy

more flexible next year to create conditions for structural reforms, while expanding its budget deficit. Xinhuanews agency said citing decisions made at a top-level meeting. A report. – (ET Dec 22, 2015 p 9)

USA"Top US banks raise prime rates after Fed rate hike" – Major U.S. banks raised their prime rates, a

benchmark for a wide range of consumer and commercial loans, for the first time since 2006, following a ratehike from the Federal Reserve. Banks including Wells Fargo & Co, JPMorgan Chase & Co and Bank ofAmerica Corp raised their prime rates to 3.5 percent from 3.25 percent. – (FE Dec 18, 2015 p 15)

– FEDERAL RESERVE

"Advice from RBI" – Quick edit. – (Mint Dec 18, 2015 p 1)

"The anomaly behind the Fed's rate hike" – The US Federal Reserve expectedly raised interest rates,adopting the raise and reassure approach which undoubtedly calmed investors' nerves. But consider thestrange timing of it all. The Fed's projections of both economic growth and core inflation are materially lowerfrom a year ago. Growth projections for 2016, for instance, now stand at 2.3-2.5%, compared with 2.5-3% ayear ago. Core inflation is expected to fall between 1.5% and 1.7%, compared with 1.7-2% a year ago. If theFed thinks it is appropriate time to raise rates now, there were far greater reasons a year ago. Yet, it dithered.About the only economic indicator that supports the move now is the decline in estimates on unemployment- from 5-5.2% a year ago to 4.6-4.8%. As pointed out in an earlier Mark to Market column, if the Fed hadcontinued to procrastinate, the message the markets would have taken is that it thinks US growth is stillfragile. Ironically, the Fed's projections for 2016 and 2017 underline that assumption. – (Mint Dec 18, 2015 p 1)

"Fed harmony belies tricky path ahead on timing of next increase: Divide also exists between thecentral bank's policy expectations and those of financial markets" – The Federal Reserve presentedan impressively united front as Janet Yellen pushed through the first increase in the federal funds rate fornearly a decade without a single dissenting voice. A report. – (FT Dec 18, 2015 p 4)

"Fed rate rise threatens to hurt emerging markets" – Companies face a credit squeeze and a reverse ofcapital inflows. An editorial. – (FT Dec 18, 2015 p 8)

"Fed's lift off ends uncertainty" – An editorial. – (H Dec 18, 2015 p 10)

"Fed's tentative start towards normalization: Indian policy establishment did learn the hard lessonsfrom the taper tantrum" – Market moves in the next year will depend on how well expectations arealigned to policy. A n article.. – (Mint Dec 18, 2015 p 30)

– 7 –

"The Federal Reserve may be jumping the gun" – The argument for an interest-rate rise now is not acompelling one. An editorial. – (FT Dec 16, 2015 p 8)

"Next Fed rate rise tipped for March" – The Federal Reserve is expected to follow this week's historic firstpost-crisis rate rise by lifting US borrowing costs again in March, according to a Financial Times survey ofleading economists. More than two-thirds of the 42 top economists polled by the FT expect another 25 basispoint increase in the central bank's benchmark rate in three months. A report. – (FT Dec 19, 2015 p 1)

Barua, Abheek – "The Fed's move and India" – After the Fed's hike, depreciation pressure could build upfor the rupee, which could spill over to other markets. An article. – (BS Dec 18, 2015 p 9)

Bhattacharya, Gopal – "Decoding the Fed move" – Lending margins for commercial banks may improvebut benefits to savers may be slow. An article. – (HBL Dec 21, 2015 p 11)

Ghosh, Soymya Kanti – "The positive side of Fed rate hike" – It is unlikely to hurt stock markets, andbased on past evidence, India will do well out of any resultant volatility. An article. – (Mint Dec 23, 2015 p 31)

Grant, James – "One tiny step on rates highlights America's hidden weaknesses" – Janet Yellen, theFederal Reserve chair, characterised Wednesday's long-awaited interest-rate rise as a show of confidence inthe US economy. Are things really so fragile that an $18tn economy needs a chuck under the chin? Seems so.An article. – (FT Dec 19, 2015 p 9)

Krishnan, Aarati – "The Fed and your finances" – With the Fed rate hike behind, what can investors indifferent asset classes expect? An article. – (HBL Dec 21, 2015 p 3)

Merchant, Krishna and Pjilipose, Mobis – "Fed interest rate hike: one uncertainty over, many remain"– An article. – (Mint Dec 18, 2015 p 18)

Smith, Noah – "The Fed wants a world that makes sense again: If needs to have room for a rate cutto prompt growth or a rate hike to curb inflation" – The Fed seems to have decided that the chance ofreturning to normalcy is worth the risk that a small rate hike might impair the recovery. An article. – (FE Dec19, 2015 p 6)

ASSET RECONSTRUCTION COMPANY (ARCIL)

– NPAs

"Charge right prices for selling NPAs: Arcil" – Asset reconstruction company Arcil said banks shouldcharge the right price for selling their bad assets. The banks should charge the right price for selling their badassets to us. We are answerable to our shareholders, according to Arcil CEO and MD Vinayak Bahugunatold reporters on the sidelines of ICC banking summit in Kolkata. – (FE Dec 18, 2015 p 8)

ATMs

– MOBILE BANKING

"ATM mobile banking registration" – The RBI has said all banks should carry out necessary changes intheir respective ATM switches to enable customer registration for mobile banking, latest by March 31. Thisdirective has been issued to all banks participating in National Financial Switch (NFS). – (HBL Dec 18, 2015p 10)

BANK CAPITAL

– SYNDICATE BANK / ANDHRA BANK

"Syndicate, Andhra Bank Raise Funds via Bonds" – Syndicate Bank and Andhra Bank have raised 10-years bond from the market to boost its capital adequacy ratio, reports Our Bureau. Syndicate Bank raisedRs.750 crore at 8.62% and Andhra Bank raised Rs.500 crore at 8.63%. – (ET Dec 19, 2015 p 6)

– 8 –

BANK CHARGESShetty, Adhil – "A little care can save you from paying multiple bank charges" – The first step is

awareness of all the bank fees that you are paying. With a little care and disciplined action, you can avoidmany miscellaneous banking charges or penalties. An article. – (FE Dec 22, 2015 p 13)

BANK FRAUDS"861 bank fraud cases reported in first half: Sinha" – As many as 861 bank advance related fraud cases of

Rs.1 lakh and more, involving Rs.4,920 crore, were reported in the first half of the current fiscal. In the lastfiscal, 1,651 such cases were reported that involved an amount of Rs.11,083.11 crore, according to Ministerof State for Finance Jayant Sinha. – (HBL Dec 19, 2015 p 4)

"CVC alerts banks to fake CA certificates from borrowers: Firms submit bogus papers to get loansapproved" – The Central Vigilance Commission has asked public sector banks to put in place a system tocheck the rising instances of fake Chartered Accountant certificates being submitted by borrowers to getloans. While studying banks' lending process, the Commission stumbled on instances of loans being given onthe basis of bogus CA certificates. Such loans eventually turned bad. A report. – (HBL Dec 19, 2015 p 1)

BANK LENDING

– TAMIL NADU

"Banks to reschedule loans in flood - hit Tamil Nadu" – In a move to help the flood-affected people ofTamil Nadu, banks have come up with a series of relief measures. The decision was taken at a meeting,chaired by Arun Jaitley, Union Finance Minister, who visited Chennai. He was here to oversee the efforts ofbanks and insurance companies in mitigating the problems arising out of the floods in and around Chennai.Agricultural loans, including short-term production credit (crop loans), will be converted into term loan repayablein 2-5 years, moratorium of one year and fresh crop loans will also be extended to the same borrowers.Banks have also decided to rescheduling of installments and offer fresh loans to the farmers, where assetshave been affected by the floods for replacement or repairing. As a relief to MSME units and MUDRAloans, banks had decided to reschedule the installments with a moratorium period of two years. A report.– (BS Dec 23, 2015 p 5)

"Banks told to grant loans on 'mission mode' in TN" – Union finance minister Arun Jaitley asked bankersto go 'almost on a mission mode' to extend soft loans to people in the flood-affected districts of Tamil Nadu.– (TI Dec 21, 2015 p 8)

BANKING OMBUDSMAN SCHEME

– CUSTOMER SERVICE

"RBI: No deadline for resolving complaints by banking ombudsman" – There is no time limit for resolutionof complaints under Banking Ombudsman scheme, aimed at seeking redressal of customers' commoncomplaints against banks, according to the Reserve Bank of India (RBI). Over 9,500 such complaints werepending against various banks. A report. – (FE Dec 23, 2015 p 10)

BANKING REFORMS - INDRADHANUSH

– PUBLIC SECTOR BANKS

Mehta, Sangita – "Here's hoping Indradhanush won't vanish" – This year the government reached out tobanks and initiated a two-way conversation and introduced some positive measures. An article. – (ET Dec23, 2015 p 18)

– 9 –

BANKING TECHNOLOGY"Banks focus on tech as online banking picks up" – Banks are witnessing a sharp growth in electronic

transactions, prompting them to invest in technology rather than spend on new brick-and-mortar branches.The top three private banks said that digital channels now account for more than 60% of their total transactions.While conventional transactions grew in single digits in the past two years, the digital channels saw a neardoubling of transactions. We have seen the power of digital impacting branches, according to Rajeev Sabharwal,ICICI Bank's executive director. Nitin Chugh, head-digital banking at HDFC Bank said the bank's transactionsthrough internet and mobile phones have grown to nearly 63% from 44% two years ago. Now, to that if youadd ATM and phone banking, then we are left with only 12% transactions that are done in branches rightnow, which at some point of time used to be 30%. Axis Bank recently set up express branches that areconveniently located in either a mall or office complex to provide 24x7 customer service. The expressbranches offer facilities for instant cash and cheque deposits, instant account opening and online purchase ofinsurance and advisory services. The percentage of transactions that happen via branches has drastically comedown, according to Sohini Rajola, head-electronic banking at Axis Bank. A report. – (ET Dec 19, 2015 p 6)

– FINANCIAL INCLUSION

Dharmarajan, Krishnan – "India on the cusp of a revolution as the poor get ready to go cashless" –The near future is likely to see the emergence of new forms of technologically-driven banking - institutionstargeting the excluded, like payments banks or small finance banks. But the cash-out story is unlikely tochange. Commercial banks, whatever be their avatar, are unlikely to offer adequate cash withdrawal servicesto the poor. Returning the 'favour', the poor will likely maintain their collective tally of zero bank balances.The crores of accounts might just remain what they are - rarely accessed database records in a sophisticatedbanking system. An article. – (Mint Dec 22, 2015 p 27)

BANKRUPTCY CODE"Bankruptcy code will change how business is done" – Edited excerpts from an interview with T K

Vishwanathan, Author of India's bankruptcy code. – (Mint Dec 22, 2015 p 11)

"Govt to introduce bankruptcy Bill in Parliament today" – The government will introduce a comprehensivebankruptcy Bill in Parliament, a move that could allow faster unlocking of stressed corporate assets andboost creditors' ability to recover debts. The Bankruptcy Law Reforms Commission has proposed ways tocheck the delaying tactics of corporate borrowers and help lenders to take management decisions in defaultingcompanies to trigger business recovery and in cases where it is not possible, liquidation. A report. – (FE Dec21, 2015 p 2)

Burman, Anirudh and Sinha, Suharsh – "Creating a competent insolvency professionals' pool" – Thedraft Insolvency and Bankruptcy Code must go further in equipping Insolvency Professional Agencies tocomplement the other reforms envisaged. The Indian approach towards regulating professionals has been torecognise certain professions as special, and to grant recognition to one national SRO (Medical Council, BarCouncil, etc). This SRO has monopoly power to set and enforce standards of conduct for all concernedprofessionals. However, Indian SROs have paid inadequate attention to the protection of consumers. Anarticle. – (FE Dec 21, 2015 p 7)

Merwin, Radhika – "A robust insolvency resolution system can speed up loan recovery for banks:The main reason for delay in bankruptcy process has been existence of multiple laws" – Theproposed legislation which fixes a time limit of 180 days for completion of the insolvency-resolution process,can be a positive for the banking sector. An article. – (HBL Dec 23, 2015 p 10)

BANKS PROFITABILITY"Banking on commissions: Why banks resort to misselling" – Commissions from sale of third-party

products are important for banks profitability. Hence, the strong sales push. A report. – (Mint Dec 21, 2015p 14)

– 10 –

COMPUTATION OF BASE RATES"New base rate rules may draw firms to bank loans: MCLR could reverse the trend of firms borrowing

from the commercial paper market to meet their working capital needs" – The marginal cost offunds-based lending rate (MCLR), once implemented from 1 April, could reverse the growing trend ofcompanies borrowing from the commercial paper (CP) market to meet their working capital requirements,instead of approaching banks. Last week, the Reserve Bank of India (RBI) introduced the MCLR guidelines,which mandate that banks shift to the marginal cost of funds to arrive at lending rates. A report. – (Mint Dec22, 2015 p 27)

"New base rate system will help banks margins: Moody Rating agency says interval between rateresets will add flexibility into the system" – The Reserve Bank of India's new guidelines for banks tocalculate their lending rates will reduce pressure on their net interest margins (NIMs), which is credit-positive, according to global credit rating agency Moody's Investors Service. Moody's said the new calculationmethodology will apply only to new loans after April 1, 2016 instead of all existing loans, and banks will havea tenor-based benchmark instead of a single base rate. A report. – (HBL Dec 22, 2015 p 10)

Vishwanathan, Vivina – "What the lending rate math means for you: New borrowers are likely to getthe benefit of the change in the lending rate calculation if RBI cuts rates" – An article. – (Mint Dec22, 2015 p 20)

– BANK LENDING

Bandyopadhyay, Tamal – "Will banks cut loan rates now?" – Bankers have many arguments on why theycannot pare their base rate. An article. – (Mint Dec 21, 2015 p 8)

– MONETARY POLICY TRANSMISSION

"Banks to go by marginal cost of funds to set base rate: RBI: Certain govt schemes exempted;aimed at improving monetary transmission" – The Reserve Bank of India said banks, with effect fromApril 1, will move to the marginal cost of funds-based lending approach for determining their respective baserates. Base rate is the minimum lending rate below which banks are not allowed to lend. All rupee loanssanctioned and credit limits renewed with effect from April 1 will be priced with reference to the marginalcost of funds-based lending rate (MCLR), comprising marginal cost of funds, negative carry on account ofcash reserve ratio, operating costs and tenor premium. A report. – (HBL Dec 18, 2015 p 10)

Merwin, Radhika – "Reduced flexibility, increased operational challenges" – With the RBI issuingguidelines to calculate base rates using the marginal cost of funds, commercial banks are now left with lesserflexibility while fixing lending rates. All loans sanctioned after April 1 will be priced with reference to themarginal cost of funds-based lending rate (MCLR). An article. – (HBL Dec 18, 2015 p 10)

CORPORATE DEBTSingh, Nirvikar – "India's credit boom, and bust: Banks need to have some way to avoid the drag on

new lending created by existing bad loans" – There is the threat of 'Japanisation' of India - years of slowgrowth coming from failure to clean up firms' and banks' balance sheets. Japan was already rich when thathappened to it. India is poor, and has a working age population bulge. An article. – (FE Dec 23, 2015 p 8)

CREDIT MONITORING

– NON-PERFORMING ASSETS - PSBs

"Banks to now monitor all loans above Rs.10 lacs: Move comes as public sector banks look to closeall gaps to rein in rising non-performing assets" – Public sector banks are looking to close all gaps torein in rising non-performing assets - loans that do not yield returns. Lenders will soon begin monitoring theperformance of small-ticket loans starting from Rs.10 lakh. Banks have already set up special committeescomprising senior officials to keep a close watch on such loans. Till now, loans of over Rs.1 crore were beingmonitored on a regular basis. A report. – (HT Dec 23, 2015 p 16)

– 11 –

CUSTOMER SERVICE"How vigilant are our bank account holders" – It is a kind of a paradox. Even as the eastern part of the

country is underbanked, the zone has seen a maximum rise in consumer complaints with the banking ombudsmanin FY15. Likewise though rural India is underbanked, it has seen a higher rise in complaints than theircounterparts in metropolitan areas. However, the North, with Delhi accounting for the largest complaints, stillis a cause of concern with highest number of complaints received by the ombudsman in 2014-15. A graphicalreport. – (ET Dec 19, 2015 p 6)

Kulkarni, Preeti – "Is it time to sack your bank?" – A recent survey shows that one out of three customersis not happy with his bank. An article. – (TI Dec 21, 2015 p 16)

DIGITAL BANKING"IDRBT to develop framework for digital banking solutions: Says it will roll out a post-grad diploma

course in banking technology" – The Institute for Development and Research in Banking Technology(IDRBT) has outlined its plans to launch a Digital Banking Framework within the next few months, aimed atmaking digital banking versatile by incorporating new channels of payments, according to A S Ramasastri,Director of IDRBT. A report. – (HBL Dec 19, 2015 p 5)

FINANCIAL LITERACY"Lessons on literacy" – It is disturbing that we fare so poorly on financial literacy despite the fat coffers of

many investor protection and education funds. An editorial. – (HBL Dec 21, 2015 p 16)

Halan, Monika – "Finlit is the escape door for regulators and big finance" – An article. – (Mint Dec 23,2015 p 21)

FINANCIAL SECTOR

– DIGITAL TECHNOLOGY

Abrar, Peerzada and Vijayakumar, Sanjay – "Fintech startups disrupt mammoth banks" – Firms areemerging in areas such as building financial products, distribution, payment and analytics. Helping banksdetect fraud and money laundering using artificial intelligence and machine learning. Banks and financialinstitutions are now constantly under attack from a new breed of financial sector startups, according to Y MDeosthalee, Chairman and Managing Director of L&T Finance Holdings. An article. – (H Dec 21, 2015 p 16)

FOREIGN BANKING

– HSBC

"HSBC appoints advisers over rejig of private banking arm: Portfolios of riskier clients to be soldwhile global footprint faces shrinkage" – HSBC has appointed advisers to spur the final phase of itsprivate banking restructure, after its Swiss unit came under heavy fire earlier this year for helping richcustomers dodge taxes. Europe's biggest bank has appointed Rothschild to help manage the restructure,which involves selling off portfolios of riskier clients and shrinking its global footprint, according to peoplefamiliar with the process. A report. – (FT Dec 21, 2015 p 13)

– STANDARD CHARTERED BANK

"Takeover threat looms at StanChart; DBS likely buyer" – Standard Chartered Plc, the UK bank whoseshare price has more than halved in the past two years, may attract takeover offers should it struggle to turnitself around, according to CLSA Ltd. The most likely acquirer for the lender is Singapore's DBS GroupHoldings. A report. – (HBL Dec 19, 2015 p 10)

– 12 –

GOLD BOND SCHEME"RBI may revise Gold Bonds' pricing mechanism to boost demand" – The Reserve Bank of India is

looking at revising the pricing mechanism of gold bonds in a bid to improve investor appetite for such bonds,market sources familiar with the matter. The government had launched the Sovereign Gold Bond (SGB)scheme, which allows people to invest in gold without physically owning the metal, last month in a bid toreduce gold imports and keep fiscal deficit under control. Maiden sales of the bonds, however, have collecteda paltry Rs.246 crore from 63,000 applications representing 917 kg of gold. A report. – (ET Dec 23, 2015 p 13)

MICROFINANCE

– JANALAKSHMI FINANCIAL SERVICES - SMALL FINANCE BANK

"Janalakshmi Financial to restructure itself to comply with RBI norms" – Microfinance firm JanalakshmiFinancial Services Ltd, which received an initial approval to become a small bank from the Reserve Bank ofIndia (RBI) in September, is not planning an initial public offering (IPO) immediately to reduce foreignshareholding in the company. A report. – (Mint Dec 22, 2015 p 14)

– SURYODAY MICRO FINANCE - SMALL FINANCE BANK

"The bank of small things" – Suryoday Micro Finance, the sole holder of a small finance bank licence in thestate, seeks to give loans to people like drivers, labourers. A report. – (H Dec 21, 2015 p 7)

– UJJIVAN FINANCIAL SERVICES - SMALL FINANCE BANK

"Ujjivan slows MFI business as it readies for switch to banking: In next three years, microfinancefirm will look to grow its loan book at 25%, as against around 99% last fiscal" – Ujjivan FinancialServices Pvt. Ltd will go slow on microfinance as it prepares to transform into a small finance bank, a topexecutive said. In the next three years, Ujjivan - one of India 10 small finance bank licencees - will look togrow its loan book at 25%, as against around 99% in the last fiscal year. A report. – (Mint Dec 23, 2015 p 24)

MONETARY POLICY"RBI may cut rates by 50 bps in 2016" – When the Federal Reserve sneezes, global markets, especially

emerging markets such as India, catch a cold. This time it's different. The Fed had prepared markets well,and India is in a better shape than in 2013 when the rupee collapsed. With Fed expected to keep raising ratesnext year - twice or four times depending on whom you speak to - the rupee could fall as much as 5% toRs.70 to the US dollar. Higher US rates could reduce the room for RBI Governor Raghuram Rajan to cutinterest rates. Instead of the 125 basis points this year, it could be just about 50 basis points in 2016, a poll byET's Saikat Das and Atmadip shows. – (ET Dec 18, 2015 p 9)

MONETARY POLICY COMMITTEE"Monetary policy panel enters final leg, draft Cabinet note moved" – Plans to set up a monetary policy

committee (MPC) under the Reserve Bank of India (RBI), which will be empowered to set interest rates,has entered the final leg. The finance ministry said that it has moved a draft Cabinet note seeking commentsfrom all stakeholders including other ministries. A report. – (HT Dec 19, 2015 p 18)

Khan, M Y – "The politicisation of monetary policy" – When the monetary policy committee takes overfrom the RBI, the consequences could be high money supply and inflation. An article. – (HBL Dec 21, 2015p 16)

MONETARY POLICY TRANSMISSION"Sending mixed signals: RBI must provide clearer guidance to banks about rates" – An editorial.

– (BS Dec 23, 2015 p 9)

– 13 –

NATIONAL PAYMENTS CORPORATION OF INDIA"Govt backed RyPay because of its intrinsic value: AP Hota" – Edited excerpts from an interview with A

P Hota, Chief executive and managing director, The National Payment Corp. of India (NPCI). He said TheNational Payment Corp. of India (NPCI) was envisaged as a domestic power house to develop the paymentssystem in India. It has introduced systems such as Immediate Payment Service (IMPS), which have completelychanged the way payments are made in the country. In terms of issuing cards through its RuPay product, thebeginning remained tepid, but once Pradhan Mantri Jan Dhan Yojana (PMJDY), government's financialinclusion scheme, was awarded to it, the numbers boomed. This, however, didn't go down well with othercard issuers who lost on a huge market. He rebuts some of the reservations expressed by competitors andother stakeholders. – (Mint Dec 18, 2015 p 14)

NON-PERFORMING ASSETS"FinMin mulls major steps to deal with stressed assets of banks" – Amid concerns over stressed assets

in the banking sector, the Finance Ministry said some 'major decisions' will be taken to tackle the issue.Stressed assets of banks is an area of concern. In the coming few months, some major decisions will betaken to deal with that, according to Economic affairs Secretary Shaktikanta Das. – (HBL Dec 19, 2015 p 5)

"One bank's NPA may hurt others, too: New plan may hit earnings of many banks as standard loanson their books may be 'sticky' on some other lender's portfolio" – One bank will have to pay for asticky loan of another bank if they have lent to the same company. A new rule, that is believed to be underway,will force a bank to take a knock on earnings even if the corporate borrower is paying on time but isblacklisted as 'nonperforming asset' (NPA) by any other lender. A report. – (ET Dec 21, 2015 p 14)

– ASSET RECONSTRUCTION COMPANIES

"Distressed loan buyers muddy India's bad debt picture" – Set up over a decade ago to absorb India'smountain of distressed loans, asset reconstruction companies have done little to recover cash or relieve adebt-choked banking system. Instead, at a time when regulators are pressing the banking sector to clean upbalance sheets, the so-called ARCs are striking mostly paper deals that help lenders extend provisioning byyears, camouflaging the scale of their woes. RBI has set a clean-up target for the banking sector of March2017, and has already started cutting off what it calls 'forbearance', a sort of benevolent regulatory tolerance,when it comes to bad debts and provisioning. A report. – (FE Dec 23, 2015 p 10)

PAYMENTS BANKS

– WEST BENGAL

"Payments banks can leverage mobile user base in Bengal: Finance Minister Amit Mitra wantsbanks to reach out to the masses" – West Bengal Finance, Commerce and Industry Minister, Amit Mitra,urged banks to embrace technology to reach out to those 'at the bottom of the pyramid'. According to him,technologies like mobile wallets and new age banks like payments banks open new opportunities. Paymentsbanks, he said, can leverage the huge mobile user base in West Bengal, including those in rural areas toprovide services. There are 69 million mobile users in West Bengal - 36 million are in urban areas and theremaining in rural areas. The Reserve Bank of India has given licences for 11 payments banks. A report.– (HBL Dec 18, 2015 p 17)

PAYMENTS SYSTEMS"Vision document on payment systems soon, says RBI: Share of e-payments rising both in volume,

value terms" – The Reserve Bank of India will soon come out with a fresh vision document for thedevelopment of payment systems in the country as the current document is valid only till 2015, according toR Gandhi, Deputy Governor, RBI . He said the new document will delineate the direction of the regulation. Itwill cover the developmental initiatives that the RBI will encourage the industry to take up. The validity of thenew document could be from three-five years. A report. – (HBL Dec 23, 2015 p 10)

– 14 –

PEER-TO-PEER LENDING"Central bank to put out discussion paper on peer-to-peer lending" – The Reserve Bank of India (RBI)

is actively studying peer-to-peer (P2P) lending arrangements being offered by online firms and will sooncome out with a discussion paper on the issue, according to R Gandhi, deputy governor, RBI. The RBIscrutiny of P2P lending platforms comes as the number of firms offering such services is on the rise, eventhough they are not regulated. A report. – (Mint Dec 22, 2015 p 27)

PUBLIC SECTOR BANKS"Public sector banks losing market share: Brickwork" – Private sector banks are gradually gaining

market share at the expense of public sector banks, according to Bengaluru-based credit rating agencyBrickwork Ratings. The agency, in its first Bank Book, estimated that public sector banks (PSBs) have lostmarket share by about two per cent and the same has been gained by private sector banks in FY15. A report.– (HBL Dec 23, 2015 p 10)

STRATEGIC DEBT RESTRUCTURING"Converting some liabilities into assets" – The Reserve Bank of India has said it is open to tweaking rules

related to strategic debt restructuring. What is debt restructuring and why is it important? HT explains.– (HT Dec 23, 2015 p 16)

"Lenders invoke SDR rules to take control of Ankit Metal & Power" – Lenders to Kolkata-based steelmaker Ankit Metal and Power Ltd have decided to convert the company's outstanding debt into majorityequity and take control of the company under the so-called strategic debt restructuring (SDR). The 14-member consortium of lenders to the company include State Bank of India (SBI), IDBI Bank, Andhra Bank,Syndicate Bank and Indian Overseas Bank. A report. – (Mint Dec 18, 2015 p 14)

– NPAs

"Rajan's crackdown on $59-bn bad loans means M&As surge" – Reserve Bank of India (RBI) governorRaghuram Rajan's war on bad loans is set to spur a slew of mergers and acquisitions (M&As) after heallowed lenders to take control of defaulting companies and sell those assets to recover dues. The volume ofdeals in India will jump from a five-year high as banks, racing to meet a 2017 deadline to tidy up books, seekto dispose of their holdings in distressed companies, M&A advisers say. Lenders have already started convertingdebt owed by 10 firms into equity since Rajan introduced the strategic debt recovery (SDR) mechanism inJune and they have 18 months to find suitors and sign sale deeds. A report. – (FE Dec 19, 2015 p 8)

– PRIVATE EQUITY FIRMS

"Banks pitch SDR assets to PE firms: Lenders to nine firms, including SBI and ICICI Bank, are intalks with PE firms such as TPG Capital and KKR and Co." – Banks that have decided to take majorityequity control in nine defaulting companies through the strategic debt restructuring (SDR) scheme havestarted pitching assets of these firms to private equity (PE) firms, according to four people familiar with thematter. Under the SDR scheme, banks are allowed to convert their loans into a majority equity holding,following which they will have only 18 months to find a buyer for these assets. A report. – (Mint Dec 22, 2015pp 3, 4)

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTURE"Crop sowing down 5.5%, may hit output" – India's parched farms have pushed back the sowing of main

crops such as wheat and rapeseed, the main winter oilseed, raising fears of lower output and higher vegetableoil imports by the world's biggest buyer of the cooking ingredient. As planting of major crops continues to lagnormal progress, India cut its economic growth target to 7-7.5% for the fiscal year to March 2016 against itsprevious forecast of 8.1-8.5%. – (Mint Dec 19, 2015 p 8)

– 15 –

CROP INSURANCESingh, Sukhpal – "Crop insurance or deficiency payments?" – The most glaring implication of the proposed

deficiency payments is that it makes the state give up its responsibility of intervening in markets. An article.– (Mint Dec 21, 2015 p 6)

INDUSTRY

CURRENCY DERIVATIVESChakravarty, Praveen – "Why RBI is watching currency derivatives" – It is prompted by speculation

concerns rather than intention to reduce volatility. An article. – (HBL Dec 21, 2015 p 11)

Jain, Anshul and Biswal, P C – "A welcome step by the Reserve Bank" – Research suggests thatvolumes in the futures markets do have an impact on prices in the cash market. An article. – (Mint Dec 22,2015 p 31)

INFRASTRUCTURE FINANCE"Infra needs Rs.31 lakh crore investment in 5 years" – The investment requirement in infrastructure over

the next five years (between 2015-16 and 2019-20) is estimated to be about Rs.31,00,000 crore, says a Crisilstudy. A graphical report. – (IE Dec 21, 2015 p 13)

"Need Rs.31 lakh cr for infra sector over five yrs: Crisil" – India needs Rs.31 lakh crore in the next fiveyears for building its infrastructure, according to a report by Crisil Ratings and industry body Assocham. Thistranslates into over Rs.6 lakh crore of investments every year or around Rs.1,700 crore every day from April2015 to March 2020. – (FE Dec 18, 2015 p 1)

MANUFACTURING SECTOR"Rise of manufacturing sector" – 'Make in India' has tremendous potential and with a collective focus India

can become a major player in manufacturing area. We need to improve its employment and employability ofpeople to make India a global manufacturing hub. A report. – (ET Dec 23, 2015 p 15)

"Taking stock of the state of the country's manufacturing industry" – A graphical report. – (BS Dec 21,2015 p 4)

– INVESTMENT

"'Make in India' looks at $120-bn investment from 10 companies" – The government is expecting its'Make in India' programme to be a major success, with a report by the Department of Industrial Policy andPromotion (DIPP) revealing that 10 companies have either committed or indicated investments worth $120billion, mostly over a period of five to 10 years. A report. – (FE Dec 19, 2015 p 3)

NON-BANKING FINANCE COMPANIES"RBI keeping close watch on systemically important NBFCs: In 2014-15, these NBFCs showed

strong credit growth while banks slowed down: R Gandhi" – The Reserve Bank of India is keeping aclose watch on non-banking finance companies following robust credit growth in 2014-15, even as bankswitnessed a slowdown in credit offtake, according to a top official. According to R Gandhi, Deputy Governor,continuous monitoring of NBFCs is still required in order to detect any increase in systemic risks that couldarise from the rapid expansion of credit provided by them. A report. – (HBL Dec 22, 2015 p 10)

– 16 –

SMALL SCALE INDUSTRY

MSMEs"Financial inclusion key to growth of micro enterprises" – CRISIL in association with Associated Chambers

of Commerce and Industry of India (Assocham), analysed 12,000 micro enterprises (rated between January2010 and September 2015) to understand the scenario with regard to financial inclusion among micro enterprises- those with annual turnover of less than Rs.1 crore. A CRISIL SME Tracker. – (BS Dec 22, 2015 p 16)

INTERNATIONAL ECONOMICS

CAPITALSanyal, Sanjeev – "Will US Fed hike make global capital expensive?" – An article. – (ET Dec 18, 2015

p 13)

IMF"US steps closer to approving IMF reform: China set to gain bigger voice as stalled 2010 quota

changes return to agenda" – The US Congress has taken a step closer to granting long-awaited approvalto reforms of the International Monetary Fund which would give China and other emerging economies agreater voice in shaping the institution's policies. A report. – (FT Dec 17, 2015 p 2)

INTERNATIONAL RESERVE CURRENCY

– YUAN / RENMINBI

Jun, Zhang – "Great expectations for the renminbi" – China must prove that it can manage dramaticcurrency depreciation and continue towards internationalization. An article. – (Mint Dec 21, 2015 p 23)

WTO"Developing and developed countries in a deadlock at WTO" – Developing countries, led by India,

pushed back at attempts at the World Trade Organization (WTO) to smother their central concerns onensuring food security and provision of special safeguards to protect domestic farmers from a surge inimports. A report. – (Mint Dec 18, 2015 pp 1, 2)

LABOUR & PERSONNEL MANAGEMENT

MANAGERIAL EFFICENCY"How new managers under-estimate their role: Managers should learn to build a team, embrace

change: Harvard's Linda Hill" – Excerpts from an interview with Linda Hill, the Wallace Brett DonhamProfessor of Business Administration, Harvard Business School. She said managing change is very difficult.My colleague, Michael Beer, says in his research that one of the primary reasons people don't change is thatthey are not dissatisfied with themselves. – (HBL Dec 23, 2015 p 12)

Adhikari, Sachin – "Manager turned coach: You cannot be a great manager without being a goodcoach" – It's important for every manager to be a good coach, because coaching is a special art form thatencourages ordinary people to achieve extraordinary things. An article. – (ET Dec 22, 2015 p 8)

SEVENTH PAY COMMISSION"There is a lot of angst against the IAS" – Edited excerpts from an interview with Justice Ashok Kumar

Mathur, chairman of the Seventh Pay Commission. He was up against various demands from all the services.And that he tried hard but couldn't succeed in bringing Commission member Vivek Rae on board beforerecommending an end of IAS supremacy. – (ET Dec 20, 2015 p 5)

– 17 –

Singh, N K – "Hopefully the last pay panel" – The Seventh Pay Commission falls short on discussing issuesconcerning meritocracy and productivity-linked wages. An article. – (HT Dec 23, 2015 p 14)

MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITY"Firms' CSR panels see few meetings in FY15: CSR committees at some of the top 100 firms,

including TCS, HUL and Maruti Suzuki, met only once" – The new companies law of 2013 tookcorporate social responsibility (CSR) from being a goodwill initiative to a boardroom staple, requiring firms tohave a policy and strategy shaped by a CSR committee. Yet, according to a KPMG India CSR survey, inmany of the top 100 companies by market capitalization, CSR committees met only once in the fiscal yearended March. Of the 100, annual reports of 92 companies were available. A report. – (Mint Dec 23, 2015 p22)

MANAGEMENT EDUCATION"Companies are welcome to set up B-schools" – An exclusive interview with Anil D Sahasrabudhe,

Chairman, All India Council for Technical education (AICTE). – (BusW 35(8) Dec 1, 2015 pp 148-151)

"More centres of excellence are needed" – Excerpts from an interview with Pritam Singh, Eminenteducationist, academic administrator and former director of IIM Lucknow and MDI Gurgaon. – (BusW35(8) Dec 1, 2015 pp 138-139)

Bhandarker, Asha – "What would it take to top the list of B-schools" – An article. – (BusW 35(8) Dec1, 2015 pp 128-130)

Mithas, Sunil and Lucas, Henry – "What will it take to create a world-class B-school in India?" – Anarticle. – (BusW 35(8) Dec 1, 2015 pp 106-108)

Reddy, Ashok – "What makes a B-school tick" – An article. – (BusW 35(8) Dec 1, 2015 pp 136-137)

– LEADERSHIP

Chattopadhyay, Ishani – "Developing future leaders" – rather than creating smart leaders, the B-schoolcurriculum should focus more on creating healthy leaders. An article. – (BusW 35(8) Dec 1, 2015pp 116-117)

BANKERS' BRIEFAn Online Weekly News and Views Digest

Subscription / Renewal Form

Annual Subscription Rates

Individual : Rs. 375.00 Institutional Rs : 500.00

I wish to subscribe/renew for Bankers' Brief (An Online Service) as per your terms andconditions for the following period: to

My Mailing Address:

Name :

Address :

City : State : Pin:

Mobile : Email :

Kindly remit/send subscription amount by ECS/Demand Draft/at par cheque. Pleasefind enclosed/remitted DD/at par Cheque/UTR No.dated drawn onin favour of "National Institute of Bank Management", and payable at Pune.

Mode of Subscribing/Renewing

The subscription amount may preferably be transferred by RTGS/NEFT/ECS to ourCurrent A/c No.20002400021 with Bank of Maharashtra, NIBM Branch, Pune(IFSC Code MAHB0001124)

For all electronic remittances, kindly send a confirmatory e-mail at: john@nibmindia.org giving transaction UTR No. and other details of the payments.

In case the amount is remitted by Demand Draft or at par cheque, it should be drawnin favour of "National Institute of Bank Management", and payable at Pune.

Please remember to mention your old subscription number for renewal.

Address all your Subscription related communication to:

Publications OfficerNational Institute of Bank Management

NIBM PO, Kondhwe Khurd, Pune 411 048 (India)Telephone: 0091-20-26716000 (EPABX) Direct: 26716526

Fax: 0091-20-26834478 Email: huned.contractor@nibmindia.org Website: www.nibmindia.org

NIBM Journals and Publications

PrajnanJournal of Social and Management Sciences

Annual Subscription Rate : One year Rs.300.00 Two years Rs. 550.00 Three years Rs. 825.00

VinimayaPresents Conceptual and Practical Viewpoints of both

Bankers and Management Educationist

Annual Subscription Rate : One year Rs.225.00 Two years Rs.375.00 Three years Rs. 550.00

Areas of Publications Agricultural & Rural Development International Finance

Banking Management, Planning and Control

Computer & Systems Monetary Economics

Foreign Trade Operational Banking

Human Resource Management/HRD

(For details visit NIBM Website : http://www.nibmindia.org)

Enquiries may be mailed to :Publications Officer

National Institute of Bank ManagementNIBM Post Office, Kondhwe Khurd, Pune 411 048

Telephone : 0091-20-26716000 (EPABX) Direct: 26716526 Fax : 0091-20-26834478E-mail : hunde.contractor@nibmindia.org

Website : http://www.nibmindia.org

Edited by Library Team and Published Online by National Institute of Bank Management, NIBM Post Office, Kondhwe Khurd, Pune 411 048 INDIA

(Registered with the Registrar of Newspaper for India under Registration No. G 165.238/1984 of 20-6-84)