Volume XXXIII Number 42 July 16, 2018

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 18

D. INDUSTRY 18

E. SMALL SCALE INDUSTRY 21

F. INTERNATIONAL ECONOMICS 21

G. LABOUR & PERSONNEL MANAGEMENT 22

H. MANAGEMENT 22

I. MISCELLANEOUS 22

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BANKERS' BRIEF Vol. XXXIII No. 42July 16, 2018

ECONOMY"Economic picture blurred as data shows divergence" – While purchasing managers' index shows

expansionary trend, the data on new investment announcements continue to disappoint. Two sets of statisticreleased last week paint divergent pictures about the Indian economy. Nikkei India purchasing managers'index (PMI) for manufacturing and services in the month of June was valued at 53.1 and 52.6, respectively.A value above 50 shows an expansionary trend in the economy. June PMI values for both manufacturing andservices are the highest in 2018. These trends stand in sharp contrast to the statistics from Centre forMonitoring Indian Economy's (CMIE) capex database which shows a continuous fall in value of new projectannouncements. These numbers are widely used as a measure of investment sentiment in the economy. Thisvalue has been witnessing a decline for the past eight quarters. A report. – (HT Jul 11, 2018 p 8)

"HSBC expects inflation to move up sharply: RBI may hike rates two more times this fiscal, sayschief economist" – Inflation could move up to 5.2 per cent this fiscal against 3.6 per cent last year, HSBC'schief economist Pranjul Bhandari said in a report to clients. She has advanced her expectation of a 25 bpsrepo hike by the RBI from October to August. She has also pencilled in another hike of 25 bps in the fourthquarter, which will take the repo rate to 6.75 per cent. She said that the minimum support price announcementearlier this week was the final piece in India's inflation jigsaw. A report. – (HBL Jul 10, 2018 p 6)

"India scores over France in GDP: Becomes sixth largest economy; may pip Britain, too, this year"– India has become the world's sixth-biggest economy, pushing France into seventh place, according toupdated World Bank figures for 2017. India's gross domestic product (GDP) amounted to $2.597 trillion atthe end of last year, against $2.582 trillion for France. India's economy rebounded strongly from July 2017,after several quarters of slowdown, blamed on policies pursued by Prime Minister Narendra Modi'sgovernment. A report. – (HBL Jul 12, 2018 p 1)

"Macroeconomic story is quite good" – Edited excerpts from an interview with Subhash Chandra Garg,Economic Affairs Secretary. He said India's macroeconomic story is quite good. He added that the risks tothe macro story and stability are far more manageable than ever. – (ET Jul 9, 2018 p 9)

"National policy on official statistics soon: Minister" – The government will soon come out with a NationalPolicy on Official Statistics to bring the Indian system in line with the fundamental principles for officialstatistics adopted by the United Nations in 2014, according to the Statistics and Programme ImplementationMinister Sadananda Gowda. The new policy will help enhance people's faith official data and prevent thekind of recent controversies over the country's gross domestic product (GDP) figures and other data. Areport. – (HBL Jul 10, 2018 p 4)

"Rising fuel prices may lead to CV loan defaults: Fitch" – Fitch Ratings said continued rise in fuel pricescould impact commercial vehicle operators in the country, leading to auto loan defaults. The rating agency,however, said global monetary tightening and trade protectionism is likely to impact the economic outlook. Areport. – (FE Jul 7, 2018 p 11)

"We should not take eyes off IBC" – Excerpts from an interview with Arvind Subramanian, Chief EconomicAdviser. He has had an eventful tenure, with the Centre firefighting with the drastic reform measures thatcreated disruptions in the economy. Before embarking on a new journey of academics, he shares his learningsabout economic ideas that he proposed and how the economist in him has learnt to deal with the politicalclass. – (BS Jul 6, 2018 p 1)

Acharya, Shankar – "Macro stability at risk" – Govt should let the rupee depreciate, speed up GST refunds,maintain fiscal prudence, persevere with IBC and avoid policy mistakes. An article. – (BS Jul 12, 2018 p 9)

Kishore, Roshan – "India's growth challenge beyond polemics" – If India has to place itself into a longterm double digit growth trajectory, the country needs to boost farm incomes and reduce income inequality.An article. – (HT Jul 12, 2018 p 11)

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Rajaraman, Indira – "The growth and inflation prospects for the current year" – It seems possible thatgrowth in the current year could clock in at 7.4%, with headline inflation below the 6% upper bound of theinflation target but most likely not below 5%. An article. – (Mint Jul 6, 2018 p 15)

Subramanian, Arvind – "Rythu Bandhu can be the social & agri policy template" – Replacing currentfarm schemes with a modified Telangana-like UBI scheme would yield critical efficiency and income-boostingbenefits. Eliminating the fertiliser and power subsidy in Punjab would finance an annual transfer of aboutRs.92,000 to every cultivator or Rs.50,000 to every agricultural worker. An article. – (FE Jul 11, 2018 p 10)

CURRENCY MARKETPrasanna, B – "Policy intervention should ensure rupee depreciation in a less disruptive way" – An

article. – (ET Jul 11, 2018 p 14)

– EXCHANGE RATE

C, Parvatha Vardhini – "How a weak rupee will impact India Inc" – IT and pharma will gain while PSUoil marketing companies and aviation lose. With increasing globalisation leading to Indian companies expandingtheir global footprint, their fortunes have become entwined with the rupee's movement. Here's a closer lookat some of the key sectors that have been impacted by the weak rupee. An article. – (HBL Jul 9, 2018 p 2)

Lokeshwarri S K – "Red alert on the rupee" – Inadequate forex reserves, growing pile of external debt andtightening global liquidity can exert pressure on the currency. What does this mean for India Inc? An article.– (HBL Jul 9, 2018 p 2)

DIRECT BENEFIT TRANSFER"Cash transfers more effective than PDS, says ICRIER-OECD report: Direct bank transfers plug

leakages in food distribution, ensure better nutritional security" – A study, recently published by theIndian Council on Research on International Economic Relations (ICRIER) and the Organisation of EconomicCooperation and Development (OECD), said direct bank transfers (DBT) would work better than the existingtargeted Public Distribution Scheme (tPDS) as the former not only plugs the leakages, but also helps inensuring better nutritional security. – (HBL Jul 11, 2018 p 4)

FOREIGN EXCHANGE RESERVES"Forex reserves up by $24.34 bn in H2 FY18" – India's forex reserves increased by $24.34 billion to

$424.55 billion as of March 2018, from $400.21 billion as of end September 2017. During September 2017and March 2018, reserves decreased to $399.23 billion as of end October 2017, increased to $401.94 billionas at end November 2017, $409.07 billion as of end December 2017, $422.37 billion as of end January 2018and $420.96 billion as of end February 2018. At the end of December 2017, the import cover decreased to10.8 months from 11.3 months at end March 2017. RBI said in its half yearly report on management offoreign exchange reserves released. – (BS Jul 7, 2018 p 4)

INFLATIONBhandari, Pranjul – "Storm before the lull: Inflation will surge in FY19, cool off the year after" – RBI

may hike rates as soon as August as FY19 inflation rises, on the back of MSP-hikes, rising crude prices, etc.the case for further hikes in FY20 is weak as the pressures abate. An article. – (FE Jul 12, 2018 p 8)

BANKING"Bank credit grows at 12.84%, deposits at 7.59%" – Bank credit grew by 12.84 per cent to Rs.86,16

trillion in the fortnight ended June 22, according to RBI data. In the year-ago fortnight, bank loans stood atRs.76,35 trillion. The growth in advances was slightly higher than the growth registered in the previousfortnight ended Jun 8. It had risen by 12.67 per cent to Rs.85,98 trillion. During the fortnight ended June 22,bank deposits had risen by 7.59 per cent to Rs.113,53 trillion, compared with Rs.105,51 trillion in the periodended June 23, 2017. A report. – (BS Jul 6, 2018 p 4)

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"There is more freedom and flexibility given to bank boards now" – Edited excerpts from an interviewwith Ravi Venkatesan, former head of Microsoft India. He is one of the few private sector professionals tohead a public sector bank like Bank of Baroda as its non-executive chairman. This was part of the broaderreform agenda of the government to induct talent from private sector into public sector banks. As Venkatesanis all set to hang up his boots after completion of a three-year term next month, he speaks on the state ofaffairs at state-owned banks, challenges faced by the banking system and steps required for improvement.– (BS Jul 10, 2018 p 4)

Mulraj, J – "Dereliction of duty" – The next round of cases to be referred to the NCLT would include stalledpower projects and the NPA situation would further worsen. An article. – (HBL Jul 7, 2018 p 9)

AXIS BANK"Axis Bank shortlists three candidates to succeed Shikha Sharma as CEO: Bank of Baroda chief P S

Jayakumar seen as the top contender" – Private sector lender Axis Bank, said it has shortlisted threecandidates to possibly succeed its Managing Director and CEO Shikha Sharma who retires at the end of thisyear. In terms of extant Reserve Bank of India norms and the Succession Planning Process of the bank, theboard of directors of the bank, at its meeting held on July 9, has recommended the names of three candidatesin order of preference for the approval of the RBI. The candidate approved by the RBI will succeed Sharma,whose term expires on December 31, 2018. A report. – (HBL Jul 11, 2018 p 6)

BANDHAN BANK"Bandhan's Ghosh gets RBI nod for new term" – Bandhan Bank, the newest private sector lender said it

has received Reserve Bank of India (RBI) approval for the re-appointment of current managing director(MD) and chief executive officer (CEO), Chandra Shekhar Ghosh, for three years. – (Mint Jul 6, 2018 p 2)

BANK OF BARODA"Bank of Baroda invites applications for post of CFO" – Bank of Baroda (BoB), the country's third-

largest public-sector bank (PSB) by assets, sought applications for the post of chief financial officer (CFO).The last date for sending in applications is July 31. The appointment will be for a period of three years withyearly performance reviews. The term of engagement may be extended at the option of the bank. Theprimary responsibility of the CFO will be accounting, budget planning and control, cash management, strategicplanning, treasury, asset liability management (ALM) and tax handling functions. – (FE Jul 11, 2018 p 12)

"Bank of Baroda to sell Rs.1,200 cr exposure in Essar Steel to Hong Kong's SC Lowy" – State-ownedBank of Baroda (BoB) is in the process of selling its domestic loan exposure in Essar Steel Ltd worth ?1,200crore to Hong Kong-based loan and bond trading firm SC Lowy. SC Lowy, in turn, is in talks with local assetreconstruction companies (ARCs) such as Edelweiss Asset Reconstruction Co. Ltd to structure the deal asforeign funds are not allowed to directly acquire domestic assets, these people said on condition of anonymity.– (Mint Jul 9, 2018 p 6)

"Bank of Baroda ups MCLR by 5 bps" – Bank of Baroda has upped its marginal cost of funds-basedlending rate (MCLR) by 5 basis points across the board. The new rates will be effective from July 7.Following the hike3, the benchmark one-year MCLR will be 8.50 per cent against 8.45 per cent now. Allrupee loans sanctioned and credit limits renewed with effect from April 1, 2016, are priced with reference tothe MCLR, which is the internal benchmark for such purposes. – (HBL Jul 6, 2018 p 9)

"BoB, Korea's KB Financial Group ink MoU to set up finance corridor" – Public sector lender Bank ofBaroda said it has inked an agreement with South Korea's KB Financial Group to set-up financing corridorand development of digital payment ecosystem. In line with India's vision of look east and digital India, theproposed In-Ko corridor will have two legs - corporate and retail. A report. – (FE Jun 12, 2018 p 10)

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BANK OF MAHARASHTRA"HC directs notice over petition on Marathe's bail" – The Bombay high court on Monday directed a

notice to be issued to Ravindra Marathe, the Bank of Maharashtra (BoM) MD and CEO, in response to awrit petition challenging the ball granted to him by a special court in Pune in the case of disbursal of crores ofrupees worth of loans to D S Kulkarni |Developers Ltd without following proper procedure and in violation ofRBI guidelines. The notice is returnable within four weeks (by August 3) when the petition -m filed byPradnya Samant, a Mumbai-based depositor with the DSK group - is likely to be heard next. A report.– (TI Jul 10, 2018 p 3)

"Restore powers of bank MD, ED; quash FIRs, says BoM union" – The United Forum of MahabankUnions, a group of all the employee associations and labour unions of the Bank of Maharashtra, demandedthat the functional powers of BoM's MD & CEO, Ravindra Marathe, and ED, R K Gupta, be restored andthe names of all four bank officials be dropped from the FIR. – (FE Jul 7, 2018 p 10)

HDFC BANK"Govt policies to ensure growth for next 10 yrs" – Edited excerpts from an interview with Ashok Khanna,

Group Head - Vehicle Loans, HDFC Bank. He said bank is built on lending to consumers and the mostimportant segment is automobiles. When income are stagnating and the space is getting crowded, how doesit plan to conduct the business? – (ET Jul 11, 2018 p 14)

"HDFC Bank most valuable EM lender" – HDFC Bank has gone past Russia's Sberbank to become themost valuable bank in the emerging market outside China. HDFC Bank's current market capitalisation is$78.4 billion against Sberbank's $74.4 billion. A report. – (BS Jul 6, 2018 pp 1, 6)

"Loans, deposits up 20% at HDFC Bank" – Indicating a robust growth in its balance sheet, private sectorlender HDFC Bank said that its loan advances have risen 22 per cent and deposits 20 per cent in the firstquarter of this fiscal. In a regulatory filing, the lender also informed the bourses that it has purchased loans ofRs.9,700 crore through the direct assignment route, under the home loan arrangement with HDFC. A report.– (HBL Jul 10, 2018 p 6)

ICICI BANK"1,000 bad loan accounts under lens in ICICI probe: List of cases that may involve breach of norms

being prepared" – ICICI Bank Ltd is preparing to submit details of at least 1,000 loan accounts that turnedsour since April 2010 to an independent panel, as part of a board-instituted probe into alleged wrongdoings bythe lender's top executives, including its off-duty CEO Chanda Kochhar, according to two people aware ofthe development. – (HT Jul 12, 2018 p 13)

"ICICI Bank, Westpac join hands to facilitate students' online fee payment" – ICICI Bank has tied-upwith Austrialia's Westpac Banking Corporation (Westpac) to facilitate online fee payments by Indian students.The online payment of the fees will be routed through outward remittance platform Money2World (M2W).With this, Indian residents, who are customers of any bank in India, can initiate an online remittance to makefee payments to an Australian university at a fixed exchange rate from the comfort of their homes, any time.The lender said it is the first bank in the country to tie-up with an Australian bank to allow Indian students payfee online. – (FE Jul 11, 2018 p 12)

IDBI BANK"IDBI Bank owed Rs.5,372 crore" – More than 120 wilful defaulters owe public sector lender IDBI Bank

Rs.5,372 crore as on May 16, 2018. Of this, the top 10 have unpaid loans of Rs.3,717 crore or around 70% ofthe amount. In December 2017, such entities numbered 85 and owed the lender Rs.4,154 crore. According todata from the bank, the biggest such default is by S Kumars Nationwide which owes the bank Rs.834 crore.– (FE Jul 12, 2018 pp 1, 2)

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"IDBI Bank raises one-year MCLR to 8.75%" – IDBI Bank has decided to up its benchmark one-yearmarginal cost of funds-based lending rate (MCLR) to 8.75 per cent from 8.65 per cent. Simultaneously,barring two maturity buckets (three months and three years), the public sector bank has rejigged the MCLRin all other buckets with effect from July 12. While the overnight MCLR has been pared to 7.95 per cent(currently 8 per cent), the six-months MCLR has been upped to 8.50 per cent (8.45 per cent).– (HBL Jul 12, 2018 p 7)

"IDBI Bank: Chequered past, troubled present" – The financial institution that became a bank has ahistory that would have made it awkward for the government to sell stake to a non-government entity. Areport. – (BS Jul 10, 2018 p 15)

IDFC BANK"IDFC Bank aiming to sustain addition of 1 lakh new customers a month" – IDFC Bank has said that it

is adding one lakh new customers per month, and is confident of maintaining the run-rate in the near term.'Our customer acquisition has been the backbone of our growth. We now service 27 lakh customers andcontinue to add over a lakh customers a month to the IDFC Bank family,' according to Rajiv Lall, FounderManaging Director & CEO, in the bank's latest annual report. A report. – (HBL Jul 11, 2018 p 6)

INDIAN BANK"Indian Bank: Balance Sheet as on 31st March, 2018 and Profit & Loss Account for the year ended

31st March, 2018" – An advertisement feature. – (HBL Jul 6, 2018 pp 6-8)

INDUSIND BANK"IndusInd Bank posts 24% jump in Q1 profit: Overall asset quality improves; merger with BFIL to

be completed in three months" – Private sector lender IndusInd Bank, registered a 23.7 per cent increasein net profit in the first quarter of the fiscal at Rs.1,036 crore. It had registered a net profit of Rs.837 crore inthe first quarter of 2017-18 and Rs.953 crore in the fourth quarter of last fiscal. Total income grew toRs.6,369.75 crore in the reported quarter, compared to Rs.5,302.77 crore in the year-ago period.– (HBL Jul 11, 2018 p 6)

"IndusInd Bank: Unaudited financial results for the quarter ended June 30, 2018" – An advertisementfeature. – (HBL Jul 11, 2018 p 15)

Merwin,Radhika – "Starts year on a positive note: Core performance healthy despite slight dip inmargins" – A loan growth above industry average, healthy growth in fee income and steady asset qualityhave helped private lender IndusInd Bank kick off the earnings season on an upbeat note. The concern overbad loan divergence that had weighed on the bank in the March quarter appears to have abated for now. Thebank's gross non-performing assets stood at a comfortable 1.15 per cent of loans in the June 2018 quarter.After clocking a robust 28 per cent growth in loans in FY18, the bank began the current fiscal too on a strongfooting. An article. – (HBL Jul 11, 2018 p 6)

KARNATAKA BANK"Karnataka Bank launches facility to withdraw cash from PoS terminals" – Karnataka Bank has introduced

'Cash@PoS' facility through its network of 13,100-plus Point of Sale (PoS) terminals installed at variousmerchant establishments. A press release by the bank said here on Monday that it is a facility through whichcustomers of any bank can withdraw cash using debit cards or open system prepaid cards (issued by banksin India) at the PoS terminals of the bank. In accordance with the guidelines of the Reserve Bank of India,customers can withdraw up to Rs.1,000 a day per card in tier-I and tier-II cities, and Rs.2,000 a card per dayin tier-III to tier-VI centres. A report. – (HBL Jul 10, 2018 p 6)

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PUNJAB NATIONAL BANK"PNB eyes Nirav Modi's collection of 125 paintings by Indian masters" – The Punjab National Bank is

not only keen on attaching all of diamantaire Nirav Modi's assets - flats in Pune, Dubai, Singapore and HongKong, a motorboat, and Rs.5.5 crore worth of jewellery - but also his collection of 125 paintings of celebratedartists such as V S Gaitonde, M F Husain, K K Hebbar, Anjolie Ela Menon, Vishwanath Bose and VivanSundaram. – (TI Jul 8, 2018 p 13)

"PNB hires Credit Suisse to exit its hsg fin arm" – Punjab National Bank has hired Credit Suisse to helpsell its stake in PNB Housing Finance as the state-run lender continues to sell non-core assets to strengthenits capital position after being hit by the Nirav Modi scandal, according to a person close to the development.Its 33 per cent stake in the listed housing finance company is expected to fetch Punjab National Bank (PNB)about Rs.6,600 crore, going by the firm's market capitalisation of Rs.19,619 crore. – (ET Jul 9, 2018 p 15)

"PNB invites bids for three NPA accounts" – Punjab National Bank (PNB) has put on sale three non-performing assets to recover Rs.136 crore dues from the borrowers. We intend to place these accounts forsale to ARCs/ NBFCs/other banks/FIs on the terms and conditions stipulated in the bank's policy, in line withthe regulatory guidelines, PNB said in the invite for expression. – (Mint Jul 7, 2018 p 22)

"PNB, Carlyle Group to offload 51% stake in PNB Housing Finance" – PNB Housing Finance Ltd saidPunjab National Bank and US private equity investor the Carlyle Group are in the process of selling at least51% stake in the mortgage lender. 'As on date, Punjab National Bank owns 32.79% and Quality InvestmentHoldings owns 32.36% of the paid-up equity share capital of the company,' PNB Housing Finance said in astock exchange filing. Selling the entire stake will fetch Punjab National Bank a little over Rs.6,500 crore,going by PNB Housing's market capitalization of Rs.19,957 crore. A report. – (Mint Jul 11, 2018 p 3)

– PANEL ON STRESSED ASSET RESOLUTION

"The bank-stress buster: Newsmaker: Sunil Mehta, Chairman, Panel on Stressed Asset Resolution"– After coming up with a plan to fight stressed assets in double-quick time, Mehta's job has only just begun,A report. – (BS Jul 6, 2018 p 15)

STATE BANK OF INDIA"21 PSBs cloning each other not the way to do business" – Edited excerpts from an interview with

Rajnish Kumar, Chairman, State Bank of India. He spoke about corruption allegations against bankers andthe banks-led resolution plan announced. – (ET Jul 6, 2018 p 7)

"Pains will be taken first, so gains can come later: SBI chief" – Edited excerpts from an interview withRajnish Kumar, Chairman, State Bank of India. He is confident that the bank will come out of the bad loanproblem with a stronger balance sheet in a year's time. There will be more upfronting of provisions so that thepains are taken first, with gains coming in later. India's largest bank, which had deposits of Rs.27,06,343crore, advances of Rs.20,48,387 crore, 22,414 branches and 59,541 ATMs as of March-end 2018, is lookingto optimise its balance sheet and increase the return on assets and pre-provision operating profit by growingits interest income, treasury returns, fee income and by reducing interest expense. Kumar, who took chargeof the bank in October 2017, emphatically stated that 'in (FY) 2019, we will have profits for sure, 100 percent. There is no doubt'. – (HBL Jul 6, 2018 p 9)

"SBI orders recovery of overtime pay from staff of associate banks: Says money for extra workduring note-ban window only for its employees" – State Bank of India has instructed its various zonesto recover the 'compensation' given to officers of its erstwhile associate banks for over-time work during thedemonetisation days in late 2016. According to the SBI communication, seen by BusinessLine, the compensationwas meant for those working in SBI's branches, and related to the period when the five associate banksfunctioned on their own. A report. – (HBL Jul 10, 2018 p 1)

"State Bank to issue maiden green bonds" – State Bank of India (SBI) is in the international market to raisedollar funds through its maiden issuance of green bonds. According to people with knowledge of the matter,the bank was engaged in investor calls throughout Monday, and will decide on the issue size and likely pricingonly after getting a commitment. – (BS Jul 10, 2018 p 3)

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UNITED BANK OF INDIA"United Bank of India aims to be back in black by FY19-end: Turnaround plan to focus on retail,

agriculture and MSME sectors" – United Bank of India, which posted a net loss of Rs.1,454 crore in2017-18, is expecting to turn profitable by the end of this fiscal. According to Pawan Bajaj, MD & CEO, thebank expects to come out of the Prompt Corrective Action (PCA) framework of the Reserve Bank of Indiaby the end of FY19. A report. – (HBL Jul 7, 2018 p 6)

YES BANK"Care lifts Yes Bank rating, stock rellies by 4%" – Midsize private sector lender Yes Bank said Care

Ratings has upgraded its ratings on multiple instruments. Ratings on infrastructure bonds and tier II bonds hasbeen upgraded to 'AAA' from 'AA+', and for perpetual and additional tier I Bonds has been upgraded to'AA+' from 'AA'. Outlook on both the ratings is stable. – (TI Jul 6, 2018 p 16)

"Yes Bank forays into mutual fund business" – Yes Bank has announced that it has received the finalregulatory approval (Certificate of Registration) from the SEBI to commence its mutual fund business. Thisapproval is subsequent to the RBI's approval granted to Yes Bank to sponsor a mutual fund followed bySebi's in-principle approval received subsequently. – (ET Wealth Jul 9-15, 2018 p 7)

CHINA"China's banks face capital hit from bad debt rule change" – New rules for recognising bad loans in China

are set to obliterate regulatory capital at several banks and are expected to lead to a 14 per cent rise in non-performing loans across the sector this year. A report. – (FT Jul 6, 2018 p 14)

UK

– BANK OF ENGLAND

"Bank of England on course for a rate hike in August" – A report. – (HBL Jul 10, 2018 p 6)

USA

"Top US banks relying on tax cuts to deliver profits boost" – Big US banks are counting on a tax cutswindfall to deliver a profit surge, as world trade jitters threaten demand for corporate loans and a slowdownin the domestic mortgage market puts revenues under further pressure. The extent to which the sector isrelying on tax reforms to boost bottom lines will be laid bare on Friday, when JPMorgan Chase, Citigroup andWells Fargo kick off second-quarter results season. A report. – (FT Jul 9, 2018 p 13)

– FEDERAL RESERVE

"Capital markets: Calls for Fed to rethink monetary policy framework as it unwinds balance sheet"– The Federal Reserve needs to reassess the technical implementation of monetary policy 'before too long',several officials said at the central bank's most recent meeting. A report. – (FT Jul 7/8, 2018 p 13)

ASSET RECONSTRUCTION COMPANY

– ALCHEMIST

"Financial creditors must balance the needs of other stakeholders" – Excerpts from an interview withSrishti Dhir, President, Alchemist Asset Reconstruction Company. She believes that the Insolvency andBankruptcy Code is a game-changer for the industry. Following some big restructuring deals and managinga slew of successful exits under the Insolvency and Bankruptcy Code, the Delhi-based company is expandingin a significant way. In a financially-stressed company, the creditors' lending is at risk, and it is fair to givethem some control over decision-making. – (HBL Jul 11, 2018 p 6)

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ATMs"RBI's networth criteria may hit ATM operations" – Banks have flagged the possibility of ATM operations

getting impacted, transaction costs going up and cash-management business getting concentrated in thehands of a few players following the Reserve Bank of India tightening norms for engaging service providersfor cash-management activities. Implementation of the networth criteria (Rs.100 crore to be maintained at alltimes) will create a situation where there will be very few players in the market, and those players will not beable to cater to the requirements of all banks, affecting customer service and resulting in cost escalation, saida senior banker. Banks have requested the regulator to give more time to service providers to meet thenetworth criteria. – (HBL Jul 10, 2018 p 6)

BAD BANKDas, Santosh Kumar – "'Bad bank' can help improve NPA resolution" – Separating bad assets from good

ones and maximum recovery at the lowest cost are the tenets on which the 'bank' must be built. An article.– (H Jul 9, 2018 p 14)

BANK AUDIT"Develops software to allot CAs for bank audits" – To ensure transparency in the allotment of chartered

accountants (CAs) for bank audits, the Institute of Chartered Accountants of India (ICAI) has developed asoftware that randomly selects the auditors and allots them to banks. – (HBL Jul 7, 2018 p 4)

BANK CAPITAL"Provisioning requirements are eating into existing capital of banks: SBI's Gupta" – Edited excerpts

from discussion with P K Gupta, managing director, retail and digital banking, State Bank of India; S SMundra, former deputy governor, RBI; G Mahalingam, whole-time member, SEBI; SubramanianKrishnamurthy, associate professor, Indian School of Business; Joydeep Sengupta, senior partner, McKinseyand Company, on the impact of changing regulations on Indian banking. – (Mint Jul 6, 2018 p 12)

BANK LENDING

– UNSECURED LOANS

"Unsecured loans growth rate four times the bank credit in last 4 years: Banks to maintain sharpfocus on the segment as yields are more attractive" – Banks' unsecured loans - where money is lentwithout the backing of any collateral - clocked a CAGR of 27 per cent, or almost four times the growth inbank credit between FY15 and FY18, according to Crisil Research. As of March 2018, outstanding unsecuredloans stood at Rs.5-lakh crore, accounting for 26 per cent of retail lending, compared to 21 per cent threeyears ago. A report. – (HBL Jul 6, 2018 p 9)

BANKERS' INVESTIGATIONS"CBI arrests two retired BoI officials in Rs.2,654-cr Diamond Power fraud case" – The CBI arrested

two senior retired officers of Bank of India in connection with alleged loan fraud of Rs.2,654 crore byVadodara-based Diamond Power Infrastructure Ltd. (DPIL) in the bank. V V Agnihotri and P K Shrivastava,retired GM and DGM respectively, had allegedly granted undue favours to the company in granting creditlimits. A report. – (FE Jul 7, 2018 p 2)

– CREDIT DECISIONS

"Fearing probe, best bankers avoiding credit dept: Panel: Suggests revamp of lending practices,hiring of specialists" – A committee of bankers on resolution of stressed assets has said that the fear ofinvestigation has resulted in the best people in the banks preferring to avoid credit roles, while calling for arevamp of governance and credit structures in state-run lenders. Members of the panel headed by SunilMehta, however; said that the idea of the comment was not meant in a negative sense as banks now needed

– 9 –

to rebuild and move on. While Bank of Maharashtra MD Ravindra Marathe's arrest in an alleged cheatingcase galvanised lenders to publicly air their concerns, in private, they have been complaining about decision-making getting affected ever since former IDBI Bank chairman and MD Yogesh Aggarwal and the bank'sex-deputy MD S K Batra were arrested in the Kingfisher case. A report. – (TI Jul 9, 2018 p 13)

BANKING REGULATOR-RBI"RBI raises Centre's WMA advances to Rs.70,000 cr for Q2" – The Reserve Bank has set the 'ways

and means advances' (WMA) limit at Rs.70,000 crore for the central government for the July-Septemberquarter, up from Rs.60,000 crore in the previous quarter. 'WMA' are temporary advances given by the RBIto the government to tide over any mismatch in receipts and payments. A report. – (HBL Jul 10, 2018 p 6)

"RBI's net dollar sales in May hit highest level in 5 years" – Net sales of dollar reserves by the centralbank in May have been the highest in almost five years, the Reserve Bank of India's (RBI) monthly bulletinfor July indicated. The last time the central bank sold dollars close to this amount was in July 2013. DuringMay, the net sell-off of dollars by the RBI amounted to $5.7 billion. It sold dollars worth $9.8 billion andpurchased worth $4.1 billion. On May 31, the rupee was trading at 67.4100 against the dollar. Earlier on May16, the Indian currency was ruling at 67.7962 against the greenback. A report. – (FE Jul 12, 2018 p 10)

Patel, Urjit R – "Banking regulatory powers should be ownership neutral" – Excerpts of the inaugurallecture by Shri Urjit R Patel, Governor, RBI at Centre for Law & Economics, Centre for Banking & FinancialLaws, Gujarat National Law University, Gandhinagar, on March 14th, 2018.– (SE 57(5) Jul 1, 2018 pp 44-49)

Saha, Manojit – "Viral Acharya, banking on reforms" – The RBI's Deputy governor in charge of monetarypolicy, Viral Acharya, recently surprised many with his candid remarks that reforms of PSBs have taken aback seat. An article. – (H Jul 8, 2018 p 12)

CASH MANAGEMENT SERVICES"RBI's new cash mgmt norms hike banks' costs" – With the Reserve Bank of India's (RBI's) new standards

for cash logistics companies kicking in from July 6, some lenders are raising the issue of higher costs and aremaking a case for higher inter-bank payments for use of automated teller machines (ATMs). A report.– (TI Jul 12, 2018 p 15)

COOPERATIVE BANKS

– ALWAR URBAN CO-OPERATIVE BANK

"RBI cancels licence of Alwar Urban Co-operative Bank" – The Reserve Bank of India (RBI) said thelicence of Alwar Urban Co-operative Bank in Alwar, Rajasthan has been cancelled as it is not in a position topay its depositors in full as and when their claims accrue, among other reasons. The present financial positionof the bank leaves no scope for its revival. – (FE Jul 7, 2018 p 10)

CORPORATE BOND REPOS"Repo in corporate bonds likely to improve liquidity, investor appetite: Crisil Ratings" – Banks and

insurers can use corporate bond repos to manage liquidity, asset-liability mismatches. A report.– (HBL Jul 12, 2018 p 7)

CORPORATE GOVERNANCESinghal, Rajrishi – "The financial sector's corporate governance stumble" – An article.

– (Mint Jul 9, 2018 p 15)

– 10 –

CORPORATE INSOLVENCY RESOLUTION PROCESS"Insolvency: Mechanism specified for home buyers' representation in CoC: IBBI makes changes to

Corporate Insolvency Resolution Process regulations" – The long wait is finally over. More than amonth after classifying 'home buyers' as 'financial creditors', the insolvency regulator IBBI has now spelt outthe mechanism, albeit indirectly, through which these home buyers' voice would be heard in the 'committee ofcreditors'. The Insolvency and Bankruptcy Board of India (IBBI) has made changes to the CorporateInsolvency Resolution Process (CIRP) regulations to provide this new mechanism. With instances of severalhundreds of home buyers getting aggrieved over non delivery of flats by developers within stipulated timecoming to the fore, a mechanism was needed for their representation in CoC under the corporate insolvencyprocess. This problem now stands resolved. A report. – (HBL Jul 10, 2018 p 7)

CREDIT/DEBIT CARD TRANSACTIONS"Value of card usage at PoS nears Rs.1 lakh cr in May: Card transactions worth Rs 93,860 cr were

recorded at PoS terminals, while the volume of such transactions was 466 million" – The monthlyvalue of debit and credit card transactions at point of sale (PoS) terminals inched closer to Rs.1 lakh crore inMay, showed data released by the Reserve Bank of India (RBI) in its monthly bulletin for July 2018. Cardtransactions worth Rs.93,860 crore were recorded during May at PoS terminals, while the volume of suchtransactions during the month was 466 million. If card-based payments at PoS terminals cross the Rs.1 lakhcrore-mark, it will be a significant milestone for digital transactions at physical stores and other merchantoutlets. Though debit and credit cards are also used while making online payments to e-commerce platforms,RBI does not release data on that channel of card-based payments. A report. – (FE Jul 12, 2018 p 10)

CURRENCY DERIVATIVESRukhaiyar, Ashish – "Get to know currency derivatives" – Currency derivatives are considered to be one

of the best options to manage any risk against foreign currency exchange rate volatility. An article.– (H Jul 9, 2018 p 14)

DIGITAL BANKING"Enabling frictionless digital banking" – Today, banking may well be considered a growing space, where

non-banking players or fintech companies are proving to be stiff competition for the incumbents. Going digitalis a reality today and providing a differentiated digital experience for customers across segments is the norm,not an exception. After all, experience is the key. Of course, several elements need to be pieced together, toenable a successful digital banking platform. A report. – (Mint Jul 6, 2018 p 5)

DIGITAL CURRENCIES"Bitcoin may replace currency soon: Study" – Bitcoin and other cryptocurrencies are the logical 'next step'

for money and are close to becoming a mainstream form of payment, showed a new study. Researchersfrom Imperial College London and the trading platform eToro assessed the roles of traditional currency andmeasured how close cryptocurrency had come to fulfilling these. They list the three criteria as being able toact as a store of value, a medium of exchange and a unit of account. A report. – (TI Jul 11, 2018 p 21)

DIGITAL CURRENCY EXCHANGE PLATFORM

– KOINEX

"Panic selling post RBI ban opens door for crypto arbitrage" – Amid the panic induced by the freezing ofbank accounts run by cryptocurrency exchanges in line with the Reserve Bank of India's (RBI's) direction inApril, traders in India found a lucrative arbitrage opportunity to mint money like never before. It all transpiredon a cryptocurrency exchange platform Koinex, which had announced that it will not be accepting any morecash deposits in its digital wallet after July 6 and will not provide a cash-out facility for cryptocurrencyholdings after 2 pm on Monday, July 9. As the deadline approached, people sold their holdings in large enoughvolumes on Koinex that it resulted in a huge drop in prices for bitcoins, ethereum, and ripple, among othervirtual currencies. – (BS Jul 10, 2018 pp 1, 6)

– 11 –

DIGITAL FINANCIAL SERVICES

– MOBIKWIK

"MobiKwik launches instant loan transfer facility" – MobiKwik, a leading digital financial services platform,has announced the launch of instant loan transfer of Rs.5,000 on its app, in partnership with Bajaj Finserv, adiversified NBFC. This is the first-of-its-kind credit disbursal product, in line with MobiKwik's objective ofproviding easy and instant credit to customers. This product is designed to target millions of new creditcustomers as well as small business owners in the country. – (HBL Jul 12, 2018 p 7)

DIGITAL PAYMENTS

– GST

"GST discount on digital payments deferred: Ministers' group also recommends provision relatingto reverse charge mechanism be deleted" – A Group of States' Finance Ministers on Sunday reached aconsensus on putting off a GST discount on digital payments for the time being. It also decided to suggestempowering the GST Council to finalise goods for applicability of the Reverse Charge Mechanism (RCM).These two recommendations - deferment of the GST discount on digital payment and RCM - will be placedbefore the 28th meeting of the GST Council, scheduled for July 21. A report. – (HBL Jul 9, 2018 p 1)

DISCIPLINARY ACTION"PM calls for action against bankers involved in frauds" – Prime Minister Narendra Modi last week

called for "strict action" against bank officials who indulge in corruption, frauds or criminal conspiracy, accordingto the minutes of the meeting of the multi-modal platform PRAGATI (proactive governance and timelyimplementation), underlining the government's zero tolerance for any such activity. A report.– (ET Jul 6, 2018 p 8)

EDUCATION LOANSMani, Sriram – "Banks or NBFCs: Where should you take your education loan from?" – While you

may get cheaper education loans from banks, NBFCs usually take much less time to process loans. Anarticle. – (Mint Jul 9, 2018 p 13)

EXECUTIVE COMPENSATIONGapper, John – "It is a mystery why bankers earn so much" – An article. – (FT Jul 5, 2018 p 9)

FINANCIAL RESULTS"Banks stare at muted earnings, but there's a silver lining: Lenders to report low earnings or losses

in bond portfolios, higher provisions; Moderation in slippages & NCLT-led recoveries bring somehope" – The June quarter performance at Indian lenders could be tepid due to low earnings or losses in bondportfolios, higher provisions because of the ageing in bad loans, and low capital positions that continue tostraitjacket growth at PSU banks. Still, analysts expect slippages to moderate and NCLT led recoveries tolend a dash of colour to bank balance sheets. For Q1FY19, we expect the addition to NPAs to slow down asa large part of the troubled pool was recognised during the previous quarter," said Siddharth Purohit, researchanalyst at SMC Institutional Equities. "While incremental NPA additions would cool off during the quarter,the ageing-related provisions and elevated bond yields will keep provisions higher for most PSU banks and,hence, we don't expect improvement on the bottom-line front. A report. – (ET Jul 9, 2018 p 7)

"Q1 results of stressed-out private lenders, PSBs may remain muted: May pick up after a few quarters,say analysts" – Most banks are likely to post muted results for the first quarter of the fiscal as the turnaroundin their balance sheet and improvement in lending capacity could be some time away. Private sector banks,starting with IndusInd Bank, will begin to report their results for the quarter ended June 30 from Tuesday. Areport. – (HBL Jul 10, 2018 p 6)

– 12 –

FOREIGN BANKS IN INDIA

– INDUSTRIAL AND COMMERCIAL BANK OF CHINA

"Home Ministry flags Chinese bank eyeing second branch in India" – At a time when the Centre hascleared the decks for the maiden Bank of China branch in India, the Ministry of Home Affairs is learnt tohave raised objections to a proposal by the Industrial and Commercial Bank of China (ICBC) to open asecond branch in India. Sources said the MHA has voiced concerns that ICBC - the world's largest bank bytotal assets - has employed more than the authorised number of Chinese nationals at its existing Mumbaibranch. While the ICBC Mumbai branch is authorised to employ a total of 3-4 Chinese nationals, it is beingstaffed by around 11-12 Chinese nationals, the MHA has communicated to the Finance Ministry while vettingthe ICBC proposal to open a second branch in New Delhi. A report. – (IE Jul 9, 2018 pp 1, 2)

FOREIGN BANKS

– CREDIT SUISSE

"Credit Suisse fined in US over jobs for princelings" – Credit Suisse has been fined $77m by US authoritiesfor hiring the friends and family of Chinese government officials as part of a 'corrupt scheme' to win bankingbusiness. A report. – (FT Jul 6, 2018 p 12)

INFORMATION SECURITY AUDIT"Banks question UIDAI diktat on audit: Appointment of Deloitte alone for audits will create a monopoly

situation, say bankers" – The decision of the Unique Identification Authority of India (UIDAI) to appointDeloitte as the only agency to do mandatory audits of Information Security (IS) in banks, financial institutionsand telcos using the Aadhaar-based authentication regime, has attracted flak from bankers. A report.– (H Jul 12, 2018 p 11)

INFRASTRUCTURE FINANCE"Lending to infrastructure sector saw negative growth in the last two fiscals: Developers facing

difficulties completing projects turning to NBFCs for funding" – Despite efforts by the government torevive private investments, bank credit growth for infrastructure projects has been in the negative for twoconsecutive years, according to data compiled by Crisil. 'In the last two fiscals, credit growth to the infrasector slowed down due to the deterioration in the outlook on credit quality for entities in the sector, whichmade banks averse to lend in the segment,' according to a Crisil analyst. A report. – (HBL Jul 12, 2018 p 7)

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA"Agreement with builders to decide secured status of homebuyers" – Edited excerpts from an interview

with M S Sahoo, the chairman of the Insolvency and Bankruptcy Board of India. He said that the latestOrdinance on the Insolvency and Bankruptcy Code (IBC) has, for the first time, recognised home-buyers asfinancial creditors but whether they are secured or unsecured financial creditors hinges on the nature of theiragreements with realty developers. He said that notified regulations for corporate resolution process lastweek, also says an insolvency case can be withdrawn from the NCLT with the approval of 90% of lendersonly before any bidder/applicant submits his resolution plan. He says the latest Ordinance promotes resolutionrather than liquidation of stressed assets, streamlines the ineligibility criteria to enhance the number of biddersand balances the interests of various stakeholders, including home buyers and MSMEs.– (FE Jul 12, 2018 p 2)

INSOLVENCY PROFESSIONALS"IBBI insists on independence of resolution professionals: Bars IPEs from joining any panel of

market participants" – Insolvency regulator IBBI has directed Insolvency Professional Entities (IPEs) torefrain from joining any panel of any market participant. A report. – (HBL Jul 7, 2018 p 4)

– 13 –

INSOLVENCY RESOLUTION PROCESS"Lenders may be allowed to switch NCLT benches: MCA working on plan to cut prolonged delays in

insolvency resolution cases" – Lenders may be allowed to change National Company Law Tribunalbenches if they face prolonged delays in insolvency resolution cases, according to a proposal being workedout by the ministry of corporate affairs. About 90% of the cases referred to the tribunal under Insolvency andBankruptcy Code are being handled by benches in New Delhi and Mumbai, which has caused the process toslow down. The ministry proposes to allow banks to make a request to shift a case from one bench to anotherafter getting the consent of all involved parties. A report. – (ET Jul 12, 2018 p 11)

"We Will need more appellate tribunals and NCLT benches to avoid delays: AZB's Vakil" – Editedexcerpts from a discussion with M S Sahoo, chairperson, Insolvency and Bankruptcy Board of India (IBBI);Bahram Vakil, founding partner, AZB and Partners; Abizer Diwanji, national leader, financial services, EYIndia; Sumant Batra, managing partner, Kesar Dass B and Associates; Rajnish Kumar, chairman, State Bankof India; T N Manoharan, chairman, Canara Bank, on the insolvency and bankruptcy process, and the wayforward. – (Mint Jul 9, 2018 p 10)

INTER-CREDITOR AGREEMENT"Banks agree not to undercut each other on loans: Goyal meets heads of private, public lenders to

arrive at a model for 'inter-creditor' pact" – Public and private sector banks brainstormed to firm up amodel 'inter-creditor agreement' (ICA) that would set the ground rules under which consortium lending andmultiple-banking arrangements will be managed in the coming days. The boards of banks are likely to considerthe model agreement for adoption in the next few days, and it is expected to go 'live' in the banking system bythe month-end, according to Sunil Mehta, Non-Executive Chairman, PNB. – (HBL Jul 6, 2018 p 1)

LOAN PRICING"Despite hike in MCLR, average lending rate declines for PSBs" – Banks have been hiking deposit and

lending rates since the beginning of this year. Interestingly, the weighted average lending rate for publicsector banks (on fresh loans) during the March quarter has fallen by a tidy 30 basis points over the Decemberquarter, despite hikes in the marginal cost of funds-based lending rate (MCLR). Market players suggest thatPSBs turning risk-averse towards lending - focusing more on less-risky credit with lower yields - appears tohave dragged down the overall weighted lending rate. This partial freezing of lending on the part of PSBs isa cause for concern, say industry players. A report. – (HBL Jul 11, 2018 p 6)

MONETARY POLICY COMMITTEE"Three-day format for MPC meeting to continue, says RBI" – The Reserve Bank of India said it will

continue with the three-day meeting format of the Monetary Policy Committee (MPC) which decides on thekey interest rate. The MPC, headed by RBI Governor Urjit Patel, used to meet for two-days, but last themeeting was stretched to three days owing to 'certain administrative exigencies'. – (FE Jul 11, 2018 p 12)

MONETARY POLICYKumaraswamy, V – "A 'poor' understanding of monetary policy" – Before trying to establish the suzerainty

of its policies over the rural and poor India, RBI should first establish the hold of our currency, the rupee, onthe poor. An article. – (FE Jul 7, 2018 p 9)

NATIONAL CENTRE FOR FINANCIAL EDUCATION"RBI invites applications for NCFE CEO's post" – The Reserve Bank of India has invited application for

the post of CEO of the National Centre for Financial Education (NCFE), an institution set up in collaborationwith other financial regulators. NCFE is a joint initiative of all financial sector regulators - RBI, Sebi, Irdai andPfrda - for the implementation of the National Strategy for Financial Education (NSFE).– (FE Jul 11, 2018 p 12)

– 14 –

NON-CASH TRANSACTIONS"Govt, RBI mull database to track non-cash transactions" – The government and the RBI have begun

discussions to put in place a 'search engine' or a database of all payment transactions in the country as theystep up efforts to track black money and establish a money trail to probe money laundering cases andoperations of shell companies. Preliminary discussions on the issue have been held with the RBI after thefinance ministry, I-T department and some probe agencies deliberated on the issue in the wake of a series ofsteps to crack down on shell companies and money laundering. A report. – (TI Jul 9, 2018 p 1)

NON-PERFORMING ASSETS

– PORTS SECTOR

"Will ports create the next wave of NPAs?" – Even as the country's banking system is weighed down bystressed assets, the fear that the next round of non-performing assets (NPAs) could emerge from the portssector is getting real by the day. Large port capacities, especially in the private sector, are not seeing enoughdemand, causing a significant under-utilisation of assets. A report. – (HBL Jul 10, 2018 p 1)

– POWER SECTOR

"Stressed power assets: Impractical to comply with RBI circular, say banks" – Senior bankers apprisedthe parliamentary committee on energy of the enormous impact and 'practical difficulty' of implementing theReserve Bank of India's circular regarding power assets within a six-month time frame. A report.– (FE Jul 6, 2018 p 2)

NPA RESOLUTION"Unsure if NPA issue will be resolved in 1-2 years: Ex-CEA" – Outgoing chief economic adviser (CEA)

Arvind Subramanian on Wednesday expressed scepticism over the handling of the mounting nonperformingassets' (NPAs') crisis as he praised former RBI governor Raghuram Rajan for identifying the lacuna andtrying to resolve it. Subramanian, who appeared before Parliament's committee on estimates headed byveteran BJP leader Murli Manohar Joshi, was not convinced that the NPA issue would be resolved within ayear or two, as claimed by the bankers. He raised apprehensions about the handling of the rising NPAs andindicated that a lot needed to be done, a member who was present in the meeting said on the condition ofanonymity. A report. – (TI Jun 12, 2018 p 15)

– AIFs-PROJECT SASHAKT

"Banks to ask Sebi, RBI to ease norms for AIFs" – Banks will seek relaxation in regulatory norms foralternative investment funds (AIF) to be set up under the proposed loan resolution framework - ProjectSashakt. Banks plan to ask the Securities and Exchange Board of India to allow AIFs to own more than 51per cent in listed securities. They will also ask the Reserve Bank of India to treat the risk weight of theirinvestments in AIFs as determined by credit rating agencies, according to a bank executive aware of thedevelopments. If the norms are eased, banks will save about Rs.5,000 crore, speed up the loan resolutionprocess and get more capital for lending. A report. – (ET Jul 11, 2018 p 1)

– AMCs - PROJECT SASHAKT

"How will Project Sashakt help fix NPA problem?" – The centre last week accepted Project Sashakt, afive-pronged strategy to resolve toxic loans, with the larger ones going to an asset management company(AMC) or an alternative investment fund (AIF). Mint takes a look at how it will work. A report.– (Mint Jul 9, 2018 p 1)

"Not so 'Sashakt': New scheme for NPA resolution detracts from the IBC" – An editorial.– (BS Jul 6, 2018 p 9)

"Old wine, new bottle" – The Sunil Mehta panel's proposals on banks' NPA problem are anything but original.An editorial. – (HBL Jul 9, 2018 p 14)

– 15 –

"The debate over bad loan resolution continues" – The government has adopted a five-pronged strategyto clean up the banking system of toxic loans. Under Sashakt initiative, banks will create focused verticals tomanage stressed assets of up to Rs.50 crore owed, which they will seek to resolve within 90 days. For badloans between Rs.50 crore and Rs.500 crore, banks will enter into inter-creditor agreements where the leadbank in a consortium of lenders will hammer out a resolution plan within 180 days. For loans aboveRs.500crore, the government proposes to set up an Asset Management company (AMC) or Alternate InvestmentFund (AIF). The option referring bigger toxic loans to the National Company Law Tribunal (NCLT) andinvoking the Insolvency and Bankruptcy Code remains. A report. – (HT Jul 6, 2018 p 8)

Basu, Debashis – "Project Sashakt: Several steps backward" – An article. – (BS Jul 9, 2018 p 9)

Batra, Sumant – "For tackling NPAs, lean on IBC, not AMC" – There is no empirical evidence fromacross the globe that a public sector AMC is an effective or sustainable solution for tackling the problem ofNPAs. The emphasis should be on sustaining the impressive momentum IBC has gathered. Informalrestructuring framework should be strengthened. An article. – (FE Jul 6, 2018 p 9)

Jha, Ashok – "A solution for non-performing assets?" – The main criticism of the AMC proposal relatesto the source of funding: Why would any private institution, propelled by the principles of profit maximisation,fund such a venture? An article. – (FE Jul 6, 2018 p 8)

– AMCs/AIFs - PROJECT SASHAKT

Madhavankutty, G – "Will Sashakt render the insolvency code redundant?" – The new alternativestrategy is aimed at offering banks a breather. As well-intentioned that may be, it could widen the rift betweenthe government, the RBI, and the banks. An article. – (ET Jul 12, 2018 p 14)

– HAIRCUTS

"Why haircuts matter in dealing with bad loans" – As the government looks to reel in the likes of NiravModi and Vijay Mallya, who have sought shelter on foreign shores after leaving behind huge outstandingloans in India, a panel has come up with recommendations to help state-run banks achieve faster resolutionof their non-performing assets. A look at these bad loans and how deep the problem is... A report.– (TI Jul 9, 2018 p 6)

– SALE OF ARC RECEIPTS

"Sale of ARC receipts on bourses faces RBI hurdle" – The markets regulator's proposal to permit the saleof receipts issued by asset reconstruction companies (ARCs) on exchanges as one of the means to resolvethe problem of bad loans in the banking system has been delayed as the Reserve Bank of India has reservationsabout the type of investors who can be allowed to buy these instruments, according to two people directlyaware of the matter. 'The board of the markets regulator (Securities and Exchange Board of India) hadapproved the proposal in its board meeting in December but the norms for selling these assets on exchangeshave not yet been notified owing to lack of clarity from RBI,' according to the first of the two people. Areport. – (Mint Jul 11, 2018 p 5)

NPCI"NPCI may launch UPI 2.0 this week" – The National Payments Corporation of India (NPCI) is likely to

launch UPI (Unified Payments Interface) 2.0- the second version of the account-to-account money transferplatform that was launched in August 2016- this week. While the current UPI is structured largely for peer-to-peer payments, the revised version will have many features that will promote merchant transactions. Onekey feature is that transaction limits in UPI 2.0 are set to double to Rs.2 lakh from the earlier version. Also,payments can soon be made out of an overdraft account as against only a cash account at present. Under thenew version, merchants can block a certain amount in a customer's account as security and debit it at afuture date without additional authentication. According to banks, the facility will be useful in transactionssuch as booking hot rooms and airline tickets. A report. – (TI Jul 10, 2018 p 14)

– 16 –

PAYMENTS PLAYER

– PAYTM

"Paytm claims to hit 5-b transactions in a year" – India's largest payments player Paytm has claimed tohave reached a run rate of 5 billion transactions in a year with $50 billion of transactions value flowingthrough the platform annually. In terms of UPI payments, Paytm claims to have processed more than 400million transactions since January when it launched the product on its platform. – (ET Jul 9, 2018 p 14)

PUBLIC SECTOR BANKS"PSBs may need Rs.1.3L cr for loan recast plan over 2 yrs: Most funds needed to rejig debt above

Rs.500 cr in 200 cos" – The committee on stressed assets has estimated that public sector lenders willneed Rs.1.1-1.3 lakh crore over a two-year period to deal with resolution of ailing companies, includingfunding of the proposed asset management company (AMC) and the stressed asset fund. A report.– (TI Jul 7, 2018 p 15)

– BANK CAPITAL - ESOPs

"Banks' fundraising plans via ESOPs face hurdles: Uncertainty over staff participation, lack of clearstructure key obstacles" – The plans of public sector banks to tap their employee base to raise capitalthrough employee stock purchase schemes (ESPS) are likely to be a non-starter owing to uncertainty overstaff participation and lack of clarity on structure of the offer. Moreover, analysts are of opinion that theamount of capital planned to be raised by banks is way less than their overall requirement, making this routeineffective. In March last year, the government allowed PSBs to offer stock options to their employees. Themove was aimed at retaining experienced hands as well as attracting top talent from the private sector,besides using it as a means of raising capital. A report. – (BS Jul 12, 2018 p 4)

– BANK CAPITAL

"PSBs plan to raise Rs.50K cr this fiscal" – Public sector banks (PSBs) are planning to tap the markets toraise more than Rs.50,000 crore this fiscal to shore up their capital base for business growth and meetingregulatory global risk norms. Capital is very much required for these banks as they are saddled with non-performing assets (NPAs) of about Rs.10 lakh crore. A report. – (TI Jul 9, 2018 p 13)

RECOVERY OF NPAs

– WILFUL DEFAULTERS

"Mallya case: Fugitive law may put lenders at a disadvantage: Bankers worried that ED could stakeclaim on Mallya's overseas assets, delaying their efforts to recover dues" – The EnforcementDirectorate (ED) may use the latest weapon in its armoury - the Fugitive Economic Offenders Ordinance -to deal with Vijay Mallya, a move that could hurt lenders' efforts to recover dues from the businessman whofled the country more than two years ago. ED sources said the new fugitive law gives precedence to statedues over any claims under civil cases, including Mallya's application to the Karnataka High Court seekingpermission to repay banks by selling his assets seized by the agency that probes money-laundering cases.Indian banks are working closely with UK authorities to recover the maximum out of the assets owned byMallya, after a British court allowed them to search and seize his properties. They are worried because theED could stake claim on Mallya's overseas assets, delaying their efforts to recover the arrears. A report.– (ET Jul 9, 2018 p 5)

"Mallya's 'assets in UK' giving Indian banks sleepless nights" – As high court docket enforcementofficers are given permission to seize up to Rs.10,499 crore (£1.14 billion) of fugitive Indian tycoon VijayMallya's assets in England and Wales, there is still a lot of uncertainty about what he actually owns inLondon. The high court gave permission on Might 8 for the Bengaluru DRT judgment to be registered inEnglish courts, paving the way for British enforcement officers to seize Mallya's assets so that 13 Indianbanks can recover the loans he borrowed. But Mallya, team principal at Sahara Force India, said at Silverstonethat there was not much he owned here 'apart from a few cars and items of jewellery' as his Tewin estatebelonged to his children and his London town house to his mother. A report. – (TI Jul 11, 2018 p 13)

– 17 –

"SBI: Trying to recover maximum from Mallya" – Indian banks are working very closely with variousagencies, including in the UK, to recover maximum out of assets owned by Vijay Mallya after a British courtallowed them to search and seize properties of the fugitive liquor baron, according to SBI MD Arijit Basu.We have been able to come this far because of efforts that was taken in a very coordinated manner by allagencies including the government. We are very happy with the court order and with this kind of order wehave we should be able to go after those assets. – (Mint Jul 7, 2018 p 22)

STATE COOPERATIVE BANKS

– MAHARASHTRA STATE CO-OPERATIVE BANK

"Maha coop bank to lease out sugar mills to recover loans" – The Maharashtra State Cooperative(MSC) Bank has decided to lease out defaulting sugar mills to recover pending loans instead of going foroutright sale of these mills. The bank's board of administrators issued a statement, saying henceforth they willnot issue tenders for outright sales of such sugar mills. They would invite tenders from interested parties tolease out such mills for 20 years, the statement said. The lease would help the bank recover the pending loansand also enable farmers get their cane bill dues. A report. – (FE Jul 11, 2018 p 14)

UNIFIED PAYMENTS INTERFACE"With RBI holding back recurring payments feature, UPI 2.0 seen as 'Missed Opportunity'" – The

upgraded Unified Payments Interface, popularly called UPI 2.0, is mere weeks away from a formal launch,but with the Reserve Bank of India holding back the recurring payments feature on the platform, industryinsiders are calling it a missed opportunity. Multiple bankers and top executives of payment companies ETspoke to said that while the upgraded version of UPI would enable multiple new use-cases, recurring paymentson UPI through 'standing instructions' could have been a game-changer. A report. – (ET Jul 11, 2018 p 8)

RBI CIRCULARS"Auction of Government of India Dated Securities" – (RBI Circular RBI/2018-2019/13 Ref.No.IDMD/

76/08.02.032/2018-19 dated 09.07.2018)

"Exim Bank's Government of India supported Line of Credit of USD 17.50 million to the Governmentof the Cooperative Republic of Guyana" – (RBI Circular RBI/2018-2019/19 A.P. (DIR Series) CircularNo. 3 dated 12.07.2018)

"Exim Bank's Government of India supported Line of Credit of USD 18 million to the Governmentof the Republic of Zambia" – (RBI Circular RBI/2018-2019/20 A.P. (DIR Series) Circular No. 4 dated12.07.2018)

"Exim Bank's Government of India supported Line of Credit of USD 36.92 million to the Governmentof Cambodia" – (RBI Circular RBI/2018-2019/18 A.P. (DIR Series) Circular No.2 dated 12.07.2018)

"Exim Bank's Government of India supported Line of Credit of USD 45.27 million to the Governmentof Sri Lanka" – (RBI Circular RBI/2018-2019/17 A.P. (DIR Series) Circular No.1 dated 12.07.2018)

"Incorporation of Name of the Purchaser on the Face of the Demand Draft" – (RBI Circular RBI/2018-2019/14 DBR.AML.BC.No.210/14.01.001/2018-19 dated 12.07.2018)

"Period for Submission of Agency Commission Claims" – (RBI Circular RBI/2018-2019/16DGBA.GBD.No.87/31.02.007/2018-19 dated 12.07.2018)

"Priority Sector Lending - Targets and Classification: Lending to non-corporate farmers - Systemwide average of last three years" – (RBI Circular RBI/2018-2019/15 FIDD.CO.Plan.BC 07/04.09.01/2018-19 dated 12.07.2018)

"Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks - Spreadingof MTM losses and creation of Investment Fluctuation Reserve (IFR) by Co-operative banks" –(RBI Circular RBI/2018-2019/12 DCBR.BPD.(PCB/RCB)Cir.No.1/16.20.000/2018-19 dated 06.07.2018)

– 18 –

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTURAL ECONOMICSMokkapati, Sathya Raghu V – "MSP and loan waivers: Historic or rhetoric?" – India should make agri

economics work for the neglected small-holder farmers. An article. – (HBL Jul 9, 2018 p 8)

AGRICULTURAL MARKETSGulati, Ashoka – "From plate to plough: India must get its agri-markets right" – Input subsidies should

be phased out and the savings should be channelled towards agri-R&D, extension services, and building ruralinfrastructure. An article. – (FE Jul 9, 2018 p 6)

AGRICULTURAL SECTOR"Farm policies off target: Study: Report says it's consumers who benefit from them more than farmers"

– Despite the general perception that Indian farmers are beneficiaries of major subsidies, a new report saysthe overall effect of policy interventions between 2014 and 2016 is, in fact, a 6% annual reduction of grossfarm revenues. Consumers, on the other hand, pay an average 25% less for commodities as a result of policyinterventions. According to researchers at the Organisation for Economic Cooperation and Development(OECD) - an intergovernmental body of 36 developed countries - and the Indian think tank ICRIER, whoanalysed policies that affected the agricultural sector over the two-year period, government interventionswere more consumer-centric than producer-centric. A report. – (H Jul 8, 2018 p 10)

DEBT WAIVER SCHEME"No farmer will be left out of loan waiver" – Cooperative Minister Subhash Deshmukh said that the State

government will make every effort to provide loan waiver benefits to farmers. Mr Deskhmukh expressed hiswillingness to set up a helpline for farmers in cases where their names are in the beneficiaries' list, but bankstell them they are not eligible. – (H Jul 11, 2018 p 4)

– KARNATAKA"Karnataka farm loan waiver a sign of the next fiscal blow to bond market" – Karnataka took the

expected populist turn in its state budget to announce that loans to farmers would be waived and the governmentwill foot the bill - Rs.34,000 crore, to be precise. Bank of America Merrill Lynch expects farm loan waiversto balloon to roughly Rs.2 trillion by the time national elections begin. The benchmark 10-year bond yield isjust shy of 8% now mainly because the other big news of minimum support prices largely met with marketexpectations. – (Mint Jul 9, 2018 p 4)

– MAHARASHTRA"Loan waiver fails to bring down farmer suicides in Maha" – Maharashtra has recorded 1307 farmer

suicides till the end of June this year, despite a loan waiver declared by the state government last year. Thestate has recorded only 91 fewer cases than 2017. Last year, 1398 farmer suicides were reported fromJanuary to June. – (TI Jun 12, 2018 p 7)

INDUSTRY

BOND MARKET

– CORPORATE BONDS"Repo platform can deepen corp bond market" – Repo platforms launched by leading bourses for tripartite

repurchase of corporate bonds is expected to improve liquidity and investor appetite for these securities,which in turn will boost the corporate debt market. The domestic corporate bonds market is worth $287billon, which is around 14% of GDP only, way lower than the equity markets that is around 80% of GDP.Recently, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) launched an electronicplatform for repos (repurchase agreements) which will provide much-needed liquidity, according to the Crisilreport. A report. – (FE Jun 12, 2018 p 11)

– 19 –

COMMODITY RISK DISCLOSUREShunmugam, V and Shukla, Ruchi – "Commodity risk disclosures: A move towards greater uniformity

and transparency" – Complete disclosure of various risks that companies face is a key element in encouragingtransparency, promoting risk-management culture and thereby enhancing shareholder value and the processof price discovery in equity markets. An article. – (FE Jun 12, 2018 p 9)

HOUSING FINANCE"Customer poaching among HFCs hits profits, home buyers to feel the pinch" – A sharp headline

growth in home loans hides a vital aspect that is harming the industry - takeover of home loans from one bythe other - which is estimated to have jumped to as much as 20% of all mortgages sanctioned. The takeoverof loans by luring existing customers of banks and home finance companies has led to even chairman ofHousing Development Finance Corp Deepak Parekh calling for a kind of regulations, at least in early yearsof the loan's duration. An indiscriminate poaching of customers of one company by the other erodes theprofitability and eventually will lead to higher costs for customers as lenders at the first stage would begin tofactor in the charges and recover them early in the loan's tenure instead of spreading it out over 15 years.– (ET Jul 11, 2018 p 9)

IFCI"IFCI frames turnaround strategy, higher disbursement under new business plan: To double cash

recovery from NPAs; will sell non-core real estate assets this fiscal" – IFCI, a government company,has devised a multi-pronged turnaround strategy to tackle the current weak asset quality issues and strengthenits balance sheet. The strategy comprises focussed efforts to double cash recovery to Rs.2,000 crore thisfiscal, sale of investments in certain projects and realise Rs.250 crore by selling non-core real-estate assetsacross the country, according to Emandi Sankara Rao, Managing Director & CEO, IFCI. A report.– (HBL Jul 11, 2018 p 5)

INFRASTRUCTURE FINANCE"Long-term bonds will ensure more funds for infra projects: Goyal" – Interim Finance Minister Piyush

Goyal said long-term bonds could be considered to ensure better cash flow for infrastructure projects. Accordingto Goyal, long- term infrastructure bonds of 20-25 years tenure with fixed coupon rate, will ensure bettercash flow to projects without additional risks to the financial sector. Banks currently lend to infra projects for10-15-year tenure on an average. A report. – (HBL Jul 10, 2018 p 4)

LIC

– IDBI BANK

"Irda nod to LIC-IDBI deal based on merit, says official" – The Insurance Regulatory DevelopmentAuthority of India (Irda), has defended the exemption given to Life Insurance Corporation for acquiring up to51 per cent in the state-owned IDBI Bank, saying the decision was based purely on merits of the case.Speaking to ET NOW, Nilesh Sathe, whole-time member of Irda, said LIC had sought an exemption to investin the debt-ridden bank purely as an investment and added that the state-owned insurer was given at leastthree such exemptions in the past. A report. – (ET Jul 11, 2018 p 15)

"Unions oppose LIC's proposed acquisition of IDBI Bank" – LIC employee unions have said that theyare against the proposal for the insurer to acquire 51 per cent stake in IDBI Bank as it would hurt the interestof policyholders and their premium money. Citing past performance of the investments made in the publicsector banks (PSBs), Federation of LIC Class-I Officers Association said: "There is considerable erosion inthe share value of these banks which may affect our profitability also. In a way, we are forced to participatein the bank recapitalisation programme. The acquisition of a major stake in IDBI has to be viewed withconcern in this context. A report. – (FE Jul 11, 2018 p 12)

– 20 –

"Will LIC follow the Corp Bank template to pare stake in IDBI?" – One of the sweeteners to comfortthe policy holders in the LIC-IDBI Bank deal is that the insurer would bring down its stake in future, thoughno time frame is specified. If history is any indication, it may take more than 15 years for LIC to pare its stakein IDBI Bank to meet regulatory requirements. LIC owned 27 per cent of Corporation Bank in 2002 with anintention to take over the lender. But the regulators then rejected the plan. And it had taken 16 years for LICbring its stake down to 13.5 per cent, regulatory filings show. The reduction happened with Corporation Bankselling more shares rather than LIC selling them down. A report. – (ET July 12, 2018 p 9)

NATIONAL INVESTMENT AND INFRASTRUCTURE FUND"NIIF may move to acquire stressed infra projects" – India's stressed infrastructure assets could get a

lifeline from the National Investment and Infrastructure Fund (NIIF) which may set up a platform to acquirethem, department of economic affairs secretary Subhash Chandra Garg. He said however the NIIF's mandateis to stick to infrastructure and it's not likely to join the asset management company (AMC) proposed bybanks to deal with bad loans. "In that sense, it makes no right connection to join the bank AMC which is beingtalked about. "The other shareholders would not allow it." Garg said NIIF is meant to generate profit forowners. A report. – (ET Jul 10, 2018 p 11)

REAL ESTATE FUNDS"New real estate funds focusing on stressed assets, affordable housing" – Many new real estate funds

are eyeing stressed assets and mid-income or affordable housing projects as the underlying theme for theirinvestments. Private equity inflows in real estate rose 15% year-on-year to $2.6 billion in the January-Marchquarter, eclipsing the first quarter of the past 11 years, said property consultancy Cushman and Wakefield.The residential sector gained prominence with the highest inflows in 10 quarters, as investors looked to gainfrom government incentives in affordable housing. – (Mint Jul 10, 2018 p 5)

SEBI"FPIs from high-risk countries may face greater regulator scrutiny" – The Securities and Exchange

Board of India or Sebi is considering implementing foreign fund or investor segregation based on the riskprofile of the countries where the funds come from, said two people with direct knowledge of the matter.This segregation would be for monitoring and scrutiny purposes rather than entry barriers. The countries inhigh risk jurisdiction will face more due diligence, more scrutiny on ultimate beneficiary ownership (UBO),frequent KYC (know your clients) documentation by custodians. Low-risk jurisdictions will face minimalscrutiny as these flows are coming from highly regulated countries. – (Mint Jul 10, 2018 p 6)

"SEBI may require firms to raise 25% of financing needs from bond market: Regulator to issueconsultation paper; norms will apply to large corporates" – SEBI Chairman Ajay Tyagi said the regulatorwould soon issue a consultation paper on making it mandatory for large corporates to meet a fourth of theirfinancing needs through the bond market. This was first proposed in the Union Budget this year. Tyagibelieves the current NPA crisis, which has hit the lending activity of banks, could provide an opportunity forfund-raising from the bond market. A report. – (HBL Jul 12, 2018 p 1)

STOCK EXCHANGES"India loses to China in Asian bourse battle" – Chinese stock exchanges are stamping their authority on

the Asian financial space by picking up stake in stock exchanges across the continent. Meanwhile, India'sattempts to thwart China's charge have proved toothless. In May, a consortium of Chinese stock exchangesbeat a bid by the National Stock Exchange to acquire a stake in Bangladesh's Dhaka Stock Exchange. Thiswas not a one-off event. – (BS Jul 10, 2018 pp 1, 10)

– 21 –

SMALL SCALE INDUSTRY

SMEsChaudhari, Pramod – "Pune's SMEs must adapt to sustainable manufacturing" – Manufacturing

companies are now readying to use artificial intelligence (AI), Internet of things (IoT), data analytics and soon. To keep growing, SMEs will have to adapt to these changes. The ones who understand this and invest insuch technologies will be the ones who will continue to grow. An article. – (HT Jul 8, 2018 p 5)

INTERNATIONAL ECONOMICS"World Bank CEO warns of global debt pile-up" – Global debt is becoming a bigger worry as the global

policy tightening cycle takes hold. 'After a decade of low interest rates, the corporate and public debt in manyplaces has ballooned to a staggering $164 trillion,' according to Kristalina Georgieva, chief executive officerof the World Bank. With interest rates going up, that attention on debt sustainability has to be stronger.– (HBL Jul 10, 2018 p 6)

Plender, John – "Investors are right to worry about global growth threats - and hedging is hard" –The flight to quality has caused the dollar to appreciate as capital flees from emerging markets. An article.– (FT Jul 4, 2018 p 20)

Prakash, Akash – "Trouble in emerging markets" – A strengthening dollar, rising interest rates, tighteningliquidity and a surge in oil prices - all are combining to create a toxic atmosphere for EM assets. An article.– (BS Jul 10, 2018 p 9)

FOREIGN EXCHANGE MARKET"Falling renminbi provokes renewed global anxiety over forex wars" – China is now more willing to let

the exchange rate be guided by market forces, analysts say. A report. – (FT Jul 4, 2018 p 19)

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Jul 9, 2018 Supl. pp 1-16)

INTERNATIONAL TRADE"Emerging-market carry trade makes comeback as trade war fears wane" – While most carry trades

for major emerging currencies are still loss-making this year, their recovery in the past week could be a signalthat fears over trade wars are ebbing and that central banks in developing nations are winning back theconfidence of investors. Mexico raised its key interest rate to the highest level since 2009 on June 21,following similarly hawkish moves from Argentina, India, Indonesia, Philippines and turkey. Others, includingSouth Africa, Brazil and Russia, have signaled that they're ending rate-cutting cycles or are prepared to hikerates if their currencies come under more pressure. – (FE Jul 10, 2018 p 10)

Mishra, Abhishek – "US-China trade war: A new phase of global recession?" – This trade war will hurtnot only both the economies, but will also disturb global trade and may begin a new phase of global recession.The German central bank has slashed growth rate owing to the hovering 'global trade disputes,' and the EU,Canada, India and Mexico have gradually started hitting back with retaliatory tariffs on US imports. Anarticle. – (FE Jul 9, 2018 p 7)

S, Pritam – "Global village: The future of international trade" – Countries may go beyond neoclassicaltheories to one-on-one partnership models. An article. – (FE Jul 9, 2018 p 7)

PAYMENTS INDUSTRY"Global payments deals surge to record level" – Rapid growth driven by a transformation in the way

consumers pay for products has pushed deal making in the global payments industry to record heights, with2018 already the biggest year ever for acquisitions in the sector. A report. – (FT Jul 9, 2018 p 14)

– 22 –

LABOUR & PERSONNEL MANAGEMENT

SOCIAL SECURITY SCHEMES"Social security code may let workers choose pension, PF & health schemes: Plans could be run by

govt or private players; to cover self-employed, agri workers" – The government is mulling a bouquetof schemes to deliver pension, provident fund and health insurance benefits for all workers in the country -including self-employed and agricultural workers - to choose from, under the social security code beingfinalised by the labour ministry. These schemes could either be government run or have private playersoperating in areas of pension, insurance and provident fund, a senior government official told ET. Under theproposed scheme, all subscribers under universal social security will have to mandatorily choose at least onefrom multiple schemes on offer on the three benefits that labour ministry plans to cover in the first phase, theofficial said, requesting not to be identified. A report. – (ET Jul 10, 2018 p 11)

TALENT MANAGEMENTThomas, Liffy – "How to make exit interviews count" – Honest feedback from departing employees can

help companies weed out flaws in the system. We help companies understand why employees leave andwhat they can do to check attrition. An article. – (H Jul 11, 2018 p 2)

MANAGEMENT

COMPANY DIRECTORS

– E-KYC

"New e-KYC form for company directors; Rs.5,000 fine for late filing" – Company directors who fail tofile their annual e-KYC form will now have to pay Rs.5,000 fees, the Corporate Affairs Ministry (MCA)said. The MCA, notified the new annual form - DIR-3 KYC - and also specified late fee of Rs.5,000 fordelayed forms. In the case of current financial year, no fee would be charged till August 31, and fee ofRs.5,000 would be payable on or after September 1, according to the MCA. – (HBL Jul 11, 2018 p 5)

DIGITAL LEADERSHIPJayaraman, Rajiv – "HiPPO is out. Data analytics can now help you come up with game-changing

results" – In an era of limitless digitization, leaders must become adept at sense-making. An article.– (Mint Jul 11, 2018 p 9)

MISCELLANEOUS"A data breach now costs nearly Rs.12 crore in India: IBM study" – The estimated average cost of a

data breach in India went up to Rs.11.9 crore in 2017 - a nearly eight per cent increase from 2016. Maliciousor criminal attacks were the root cause for 42 per cent of data breaches, according to the 2018 edition of the'Cost of a Data Breach' study conducted by US-based Ponemon Institute on behalf of IBM Security. Anestimated per capita cost per lost or stolen records reported last year was Rs.4,552 - a 7.8 per cent increasefrom the previous report. – (HBL Jul 12, 2018 p 2)

"Recover your lost and forgotten investments" – If you are recovering money from deceased parent'saccount, succession certificate, NoC from other heirs, and KYC documents come in handy. A report.– (BS Jul 12, 2018 Supl. p 3)

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