Volume XXXI Number 9 November 30, 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 13

D. INDUSTRY 14

E. SMALL SCALE INDUSTRY 15

F. INTERNATIONAL ECONOMICS 15

G. LABOUR & PERSONNEL MANAGEMENT 15

H. MANAGEMENT 16

I. MISCELLANEOUS 16

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BANKERS' BRIEF Vol. XXXI No. 9November 30, 2015

ECONOMY"Can govt balance wage rise with infra spending?: Roadmap is ready and targets will be achieved,

says Economic Affairs Secretary Shaktikanta Das" – An interview with Shaktikanta Das, EconomicAffairs Secretary. With regards to the salary and other aspects, the government will take a view on theimplementation and time of adoption. But with regards to the infrastructure side, in the current Budget, thegovernment has taken a slight fiscal expansion. – (HBL Nov 21, 2015 p 6)

"China's slowdown adversely affected India, says Rajan" – China's pain of economic slowdown is India'spain too, RBI Governor Raghuram Rajan said contradicting government assertions that India will not beaffected by deceleration of Chinese economy. The Chinese slowdown is a concern for the whole world. Areport. – (FE Nov 22, 2015 p 1)

"Economy poised to grow faster than 7.5%: PM" – Development in India was 'gathering speed now' amidthe global slowdown and the country was growing at 7.5% with faster growth expected in the coming years,according to Narendra Modi, Prime Minister. We are changing the way government and citizens interactwith each other. States compete with one another now. That is healthy. A report. – (FE Nov 23, 2015 pp 3, 4)

"Failure on reforms front may hamper investments: Moody's cautions on corporate sector facingpotential headwinds" – International rating agency Moody's Investors Service has said potential headwindsloom over Indian companies from a loss of reform momentum and cautioned that failure to implement reformscould hamper investment amid weak global growth. A report. – (ET Nov 26, 2015 p 11)

"Falling investments hurting economy: Rajan: RBI Governor hopes FDI flows will help spark privateinvestment activity" – RBI Governor Raghuram Rajan said India is being hampered by a drop in publicand private investments, but held out hope that strong foreign capital flows will help rectify this weakness.Weak capital investment has been a hurdle in India's quest to realise its growth potential and with factoriesrunning 30 per cent below capacity, private companies are in no rush to invest in new projects. On the growthfront, the central concern is with investments. A report. – (HBL Nov 21, 2015 p 1)

"In policy making we have to balance things" – Excerpts from an interview with Jayant Sinha, Minister ofState for Finance. – (HT Nov 26, 2015 p 14)

"Manufacturing sector growth improving in Nov: SBI Index: 7th Pay Commission will have positiveimpact on steel, cement industries" – Indicating a pick-up in the economy, SBI Composite Index hit asix-month high in November. The index, which captures growth in manufacturing cycle, was at 54.5 comparedto 53.5 in October. Our internal prognosis suggests that credit growth is likely to grow in infrastructuresectors such as power and roads. We also expect a smart growth in personal loan segment especially inhousing. As our SBI index predicts the industrial growth two-months in advance, our index numbers indicateacceleration in industrial production in coming months, according to SBI statement. A report. – (HBL Nov 25,2015 p 4)

"Wage bill may delay India's rating upgrade, says S&P: But the nation does have its strengths:Kyran Curry" – An interview with Kyran Curry, Director, Standard & Poor's. We observe that the governmentis already running fairly sizeable fiscal deficits. Over the course of many years it has led to relatively highlevel of borrowings. – (HBL Nov 21, 2015 p 6)

Chinoy, Sajjid Z – "India's growth windfall from oil" – Lower oil prices have boosted growth by more thanone percentage point; but that may soon go away. An article. – (BS Nov 25, 2015 p 8)

Sastry, V V L N – "Macro-economy: Delayed economic recovery" – An article. – (CI 8(18) Nov 30, 2015 p 6)

ECONOMIC REFORMS"Despite strong GDP numbers, macro conditions are not as strong: While reforms are in the right

direction, a lot more needs to be done, say analysts" – A panel comprising Sanjay Mathur, Head of

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Economics Research for Asia Pacific Ex-Japan at Royal Bank of Scotland; Rana Gupta, MD for IndiaEquities at Manulife Asset Management; Sanjay Guglani, CEO of Silverdale Capital; and Vishal Kumar, MD,Investment Management, shared their views on the pace of reforms and the India growth story. A paneldiscussion. – (HBL Nov 26, 2015 p 6)

"S&P warns on ratings if reforms stall" – Expressing concern over slow-down in pace of reforms, Standardand Poor's has said India's rating could come under stress if government falls to pursue its reforms agendaand over-shoots the fiscal deficit target. It ruled out a ratings upgrade for the country in the next 12-18months but said that in case the government is able to get the goods and services tax (GST) bill passed in theforthcoming Winter Session of Parliament, it would be a credit positive. A report. – (Mint Nov 23, 2015 p 7)

EXPORTS"India's exports to grow faster than China's from 2015 to 2050" – India's exports will likely grow at an

average of 6% annually between 2025 and 2050, outpacing an almost 5% expansion in China's during thisperiod, according to a report by HSBC. China will still be the world's leading exporter, and Asia is poised tobe the starting point for a quadrupling of global exports to an estimated $68.5 trillion by 2050, according to thereport. A report. – (FE Nov 25, 2015 p 8)

FOREIGN EXCHANGE RESERVES"Forex reserves swell to $352.51 bn as on Nov 13: Reserve position in the IMF stood at $1.296 bn,

down $3.1 million from the previous week" – Foreign exchange reserves as on November 13 rose by$780.90 million from a week ago to $352.51 billion, according to data from the Reserve Bank of India.Foreign currency assets (FCA), which form a key component of reserves, rose by $793.50 million in theprevious week to $328.52 billion. – (FE Nov 21, 2015 p 8)

– GOLD RESERVES

"Should RBI worry about the fall in value of its gold holdings?: The fall in valuation has brought downthe share of gold reserves in RBI's overall forex reserves to 5.3% from 9.2% in 2011" – Gold'sfreefall to a near six-year low has eroded the value of the Reserve Bank of India's (RBI's) gold holdings by35% from a peak of $28.66 billion in October 2011, when the yellow metal touched an all-time high. Butshould it perturb the country central bank? A report. – (Mint Nov 26, 20145 p 10)

GST"GST will ease issues of tax buoyancy, revenues" – Edited excerpts from an interview with Jayant Sinha,

Minister of State for Finance. – (Mint Nov 25, 2015 p 29)

"Panel calls for standard GST rate of 23-25%: NIPFP's calculations provide an important input intodeliberations of committee headed by chief economic advisor Arvind Subramanian" – India moveda step closer to introducing the goods and services tax (GST), the nation's biggest tax reform, after a panelproposed that the standard revenue-neutral GST rate could be in the range of 23-25%. A report. – (Mint Nov23, 2015 pp 3, 4)

NITI AAYOG"We are creating NITI as a repository of data" – Edited excerpts from an interview with Bibek Debroy,

Member, NITI Aayog. – (ET Nov 22, 2015 p 9)

Sharma, Shantanu Nandan – "Niti Aayog: Work in progress" – The Planning Commission may no longerexist but, in the first year of the newly-constituted Niti Aayog, its hangover sure does. An article. – (ET Nov22, 2015 p 8)

– AGRICULTURAL FINANCE

"Cooperatives should push farm credit" – Excerpts from an interview with Ramesh Chand, Member, NITIAayog. States with high concentration of institutional credit normally don't see much discrimination between

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high and low class farmers. But, for those who have tenants, who are leasing the land, something needs to bedone for them. We are debating it in NITI Aayog. A Working Group has been constituted. – (HBL Nov 24,2015 p 12)

TAXATION

– CORPORATE TAX

"Most corporate tax breaks to go from April 1, 2017: Finmin signal of no change in sunset date endsambiguity" – Finance minister Arun Jaitley, who is planning cut the corporate tax rate to 25% from thecurrent 30% over the next four years, has chosen to remove in one go most of the tax exemptions contributingto a substantial part of the government tax expenditure (revenue forgone due to incentives) from April 1,2017, itself. The roadmap for phasing out corporate tax incentives released by the tax department on Fridayhowever, has suggested withdrawal of major tax breaks from April 1, 2017, rather than from next fiscal. Areport. – (FE Nov 21, 2015 pp 1, 2)

BANKING

GENERAL"Infrastructure to get lower contributions from banks: Less-than-favourable outlook on economic

viability of some infrastructure projects may keep banks away" – Edited excerpts from a reportnamed Banking & Financial Services: A long and arduous wait for recovery, stay selective, by Emkay GlobalFinancial Services Ltd. – (Mint Nov 26, 2015 p 16)

AXIS BANK"Axis Bank, 2 others get RBI nod to set up TReDS" – The Reserve Board of India (RBI) gave in-

principle approval to three applicants to set up and operate Trade Receivables Discounting System (TReDS).The in-principle approvals have been given to NSE Strategic Investment Corporation Limited (NSICL) andSmall Industries Development Bank of India (SIDBI), Axis Bank and Mynd Solutions. – (FE Nov 25, 2015 p 8)

"Axis Bank, Vistara team up" – Axis Bank announced a tie up with Vistara, Tata-Singapore Airlines jointventure to launch three travel credit cards next year. – (HBL Nov 25, 2015 p 10)

Rangan, M C Govardhana – "The banker to beat: The navigator gets closer to the wheel" – It is hardto stereotype V Srinivasan. The second-in-command at Axis Bank, who started out as a hardware researchengineer, has aced many roles he has played over the years -bond trader, corporate banker, even a cricketeronce. And it is a career that still has a long way to go. An article. – (ET Nov 25, 2015 p 14)

– BANKING ABROAD

"Axis Bank opens office in Dhaka: Lender seeks to tap into opportunities rising from Indo-Banglatrade" – Axis Bank has set up a representative office in Dhaka to tap into the opportunities arising from theimproving ties between India and Bangladesh. – (ET Nov 23, 2015 p 6)

BANDHAN BANK"Bandhan Bank starts lending as deposits flow in: All loans linked to the base rate, which is set at

12%, much higher than other banks" – Chandra Shekhar Ghosh, Chairman and Managing Director,Bandhan Bank has started disbursing regular loans, although at a muted pace, on steady deposit mobilisation.The bank is offering retail, small and medium enterprises, and agriculture loans. Housing loans have beencapped at Rs.1,500,000 commercial vehicle loans at Rs.1,000,000 and loans to small and medium enterprisesat Rs.2,500,000. All loans are linked to the base rate, which is set at 12 per cent, much higher than mostbanks. A report. – (BS Nov 26, 2015 p 7)

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CANARA BANK"Canara Bank to raise Rs.2,400 crore" – Canara Bank said it will raise an additional capital of Rs.2400

crore by issuing bonds on Private Placement basis to support its asset growth. The decision to raise theadditional capital was taken at board meeting of the bank. The board of the bank... has permitted to raise anadditional capital of Rs.2,400 crore through issue of Basel-III compliant tier II bonds by way of privateplacement. – (Mint Nov 20, 2015 p 12)

DCB BANK"DCB Bank ties up with TVS Credit Services" – DCB Bank has tied up with TVS Credit Services for

retail loans. The effort is aimed at entering newer markets in partnership with a reputed entity, according toPraveen Kutty, Head (Retail and SME Banking), DCB Bank. The bank has a network of over 160 branchesin 109 locations across 17 States and two Union Territories. TVS Credit Services (CS), a five-year-oldNBFC, on the other hand has established its presence across 1,000 locations in the country. TVS CreditServices, which is primarily in the two-wheeler financing space, would enter the new car financing arena,following this tie-up. – (HBL Nov 23, 2015 p 13)

DENA BANK"CARE downgrades ratings on Dena Bank's bonds" – CARE Ratings revised ratings on Dena Bank

various debt instruments worth Rs.3,325 crore, according to a report on the rating agency's website. – (FENov 21, 2015 p 8)

FEDERAL BANK"Federal Bank, Edelweiss arm tie up" – Federal Bank said that it has entered into a tie-up with Edelweiss

Integrated Commodity Management (EICML) for extending collateral management in commodity financing.The tie-up is expected to benefit farmers, traders and processors who are in need of finance. – (HBL Nov25, 2015 p 10)

HDFC BANK"HDFC Bank, NPCI launch system to trace card fraud" – HDFC Bank along with National Payments

Corporation of India (NPCI) launched a new system, which will be able to track fraudulent use of your creditor debit card and cancel the transaction if needed. The application called Zumigo Assure helps in identifyingthe location of the HDFC Bank credit or debit card at the time of the transaction. – (HT Nov 20, 2015 p 16)

ICICI BANK"Purpose of stake sales is to establish right value of business" – Edited excerpts from an interview with

Chanda Kochhar, Managing Director and Chief Executive Officer, ICICI Bank. – (Mint Nov 20, 2015 p 29)

IDBI BANK"IDBI Bank to raise $350 million via $-denominated green bonds: Initial price guidance for issue

stands at 270 bps over the treasury yield, sources say" – IDBI Bank has priced its dollar-denominatedgreen bond at 255 basis points over the five-year US treasury yield, according to information provided bysources till the time of going to the press. The bank is set to raise $350 million through the five-year issue.Fitch Ratings has assigned the bank's proposed senior unsecured debt an expected rating of 'BBB-(EXP)'.The notes are to be issued by IDBI Bank's Dubai International Financial Centre branch. A report. – (FE Nov24, 2015 p 8)

LAKSHMI VILAS BANK"Axis Bank's P Mukherjee in race for LVB top job" – Axis Bank group executive Parthasarathi Mukherjee,

who had put in his papers a few weeks ago, is believed to be in the reckoning for the top job at Lakshmi VilasBank (LVB). The Chennai-based private lender will have its third chief executive in four years as it aims to

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find its feet in a market that is getting fiercely competitive with the proliferation of new banks. The bank hadreceived over 160 applications for the post, but Mukherjee's experience in managing large corporates andtreasury seems to be working in his favour, people familiar with the matter. – (ET Nov 26, 2015 p 6)

RESERVE BANK OF INDIA"Banking services partially hit as RBI staff go on protest leave: G-Sec, rupee-dollar trade volumes

also decline a tad" – Banking services, including the clearing and payment system of the central bank,were hit for about five hours after employees of the RBI went on mass leave seeking wage increase andupdation in pension to keep up with rising living costs. The labour union leaders said the stir was also toprotest against the government move to take away the central bank role in public debt management, besidesseeking a strong role in the proposed monetary policy committee. A report. – (HBL Nov 20, 2015 p 5)

– BOARD APPOINTMENTS

"Board appointments: Central bank to take up issue with government" – Seven of the 17 members ofthe RBI board completed their term in the last couple of months. The central board of RBI consists ofeminent personalities from various fields and its role is to provide a broader vision. A report. – (H Nov 22,2015 p 15)

STATE BANK OF MYSORE"SBM launches soft loan for affordable housing" – The State Bank of Mysore (SBM) has launched a new

home loan scheme aimed at promoting affordable housing among the economically weaker sections (EWS)and the low-income group (LIG) customers. – (HBL Nov 26, 2015 p 10)

STATE BANK OF TRAVANCORE"SBT files winding up petition against Monnet Ispat" – A winding up petition has been filed against

Monnet Ispat and Energy after the company defaulted on a loan account and refused to act on a demandnotice. The company should be declared insolvent, State Bank of Travancore (SBT), a member of a lendingconsortium that has provided loan to the company, said in a petition filed in the Bilaspur High Court onNovember 3. A report. – (HBL Nov 21, 2015 p 5)

TAMILNAD MERCANTILE BANK"TMB's 777-day deposit scheme" – The Tamilnad Mercantile Bank (TMB) has introduced a 777-day

deposit scheme beginning Wednesday. Under the scheme, the bank offers 8.10 per cent interest a year forthe general public - 50 basis points more for senior citizens at 8.60 per cent - for deposits up to Rs.15 lakh.– (HBL Nov 26, 2015 p 10)

UCO BANK"UCO Bank files recovery suit in DRT against REI Agro" – UCO Bank, which leads a consortium of

lenders to Basmati rice exporter REI Agro, has filed a recovery suit in the debt-recovery tribunal (DRT) onbehalf of the group banks to recover unpaid debt. The 20-lender consortium has earlier alleged that thecompany had defrauded it to the extent of Rs.3,815 crore since 2013 through conspiracy, cheating andforgery. A report. – (FE Nov 21, 2015 p 5)

VIJAYA BANK

– BANK CAPITAL

"Vijaya Bank seeks Rs.5,000 cr capital infusion from Centre" – Vijaya Bank has sought Rs.5,000 crorecapital from the Centre. We have submitted a proposal to the Union Finance Ministry seeking Rs.5,000 croreunder capital infusion, according to Kishore Sansi, Managing Director and Chief Executive, Vijaya Bank.The bank will also issue bonds worth Rs.3,000 crore to prop up Tier 2 capital. – (HBL Nov 25, 2015 p 10)

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YES BANK"Yes Bank to issue credit card by June" – Yes Bank Ltd said it will issue its first credit card by June in a bid

to strengthen its retail banking business over a period of 12 to 18 months. It will offer the cards to bothcustomers within and outside the bank. The technology we have in place today allows us to assess customerrisk better and take more exposures to customers outside the bank. So far, we have been working on growingthe bank's liabilities book, but now the focus is on retail assets, according to Pralay Mondal, senior grouppresident, retail and business banking. – (Mint Nov 24, 2015 p 11)

CHINA"China banks turn blind eye to soaring overdue loans" – Some Chinese banks, hit by a surge of troubled

borrowing in a weakening economy, are increasingly failing to recognise loans gone sour on their books toavoid having to stump up capital. Loans to borrowers that have missed a payment are growing three timesfaster than loans the banks recognise as non performing, according to their regulatory filings. A report.– (FE Nov 20, 2015 p 19)

EURO-ZONE

– EUROPEAN CENTRAL BANK

"ECB ready to delve deeper into negative rates" – The European Central Bank is willing to break anearlier promise and delve deeper into the world of negative interest rates. The uncertainties of this topsyturvy universe are numerous, but economists believe there is plenty of room for the eurozone central bankersto cut rates further. A report. – (FT Nov 19, 2015 p 2)

"ECB will do what it must to spur price gains: Draghi" – European Central Bank President Mario Draghiset the scene for further stimulus in two weeks' time, saying the institution will do what necessary to reach itsinflation goal rapidly. A report. – (FE Nov 21, 2015 p 12)

EUROPE

– EUROPEAN CENTRAL BANK

"Draghi prepares for further monetary easing" – The ECB should give QE more time and more firepowerto work. An editorial. – (FT Nov 25, 2015 p 8)

JAPAN"BoJ keeps policy unchanged: Due to recession & weak inflation" – The Bank of Japan left its monetary

stimulus unchanged, indicating that the second recession since Prime Minister Shinzo Abe took office isn'tenough to alter Governor Haruhiko Kuroda's view that the inflationary trend is improving. A report. – (BSNov 20, 2015 p 6)

UK"Better late then never for banking discipline" – The report into the collapse of HBOS is right to seek

punishment. An editorial. – (FT Nov 20, 2015 p 8)

USA"Fed official expects test for big banks to be stricter" – Every year, the largest banks have to undergo a

theoretical test to assess how they might fare in a period of extreme stress in the markets and the economy.Now, that test may become substantially tougher. A senior official at the Federal Reserve, the bank regulatorthat administers the so-called stress tests, said on Monday that the Fed was discussing changes to the testthat could make it harder for banks to pass. A report. – (ET Nov 25, 2015 p 8)

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– FEDERAL RESERVE

"Fed door open to December move if data improvement continues" – The Federal Reserve minutesfrom its meeting last month showed that most members thought it might be appropriate to lift rates in Decemberprovided economic data continued to improve and there were no 'unanticipated shocks'. Most members ofthe US central bank's rate-setting body said at their October 27-28 meeting that conditions for an increase inshort-term interest rates 'could well be met' by the next gathering on December 16, as the central bankprepares for the possibility for the first upward move since 2006. A report. – (FT Nov 19, 2015 p 1)

"Fed's Williams sees 'Strong Case' for Dec increase if data holds up" – There's a 'strong case' for aFederal Reserve interest rate increase in December assuming US economic data continues to be encouraging,San Francisco Fed President John Williams said, adding that the slope of increases after an initial move is'most important.' The US central bank's policy-setting Federal Open Market Committee will convene inWashington on December 15-16 to discuss a possible policy move. Most economists in a Bloomberg surveyand traders of federal funds futures expect lift-off from near-zero, where the bank's key lending rate hasbeen since 2008, at that meeting. A report. – (ET Nov 23, 2015 p 7)

Singh, Manmohan – "Fed must pay attention to financial plumbing as rates lift-off looms" – The reporate is a vital signal and should move in tandem with the Fed funds rate. An article. – (FT Nov 24, 2015 p 26)

BANKING TECHNOLOGY"Taking banking to a whole new level" – India has an unbanked population of over 233 million. There have

been more than 182 million Jan-Dhan accounts that have been opened. Bank deposit penetration is 68%while bank credit penetration is 52%. Cash transactions comprise 97% of the total percentage of transactions.Technology will be a game-changer in the banking sector. Statistics show that more than 117 million Indiansuse smartphones and over 160 million Indians use Internet regularly. About 20% of the rural areas in Indiawill be covered by 3G/4G networks soon. A report. – (ET Nov 25, 2015 p 14)

BANKRUPTCY CODE"Why India's bankruptcy laws are such a mess" – India does not have a single bankruptcy code but an

assortment of laws that govern insolvency. India's contemporary bankruptcy procedures are not so brutal,but they are not so efficient, either. The system operates at a painfully slow pace as courts try to interpret avariety of conflicting laws that cover insolvency. An article. – (FE Nov 24, 2015 p 7)

Dey, Sudipto – "Fixing bankruptcy, insolvency laws: To arrive at a unified code, many existing lawswould need to be amended, repealed or overridden" – An article. – (BS Nov 23, 2015 p 13)

Mahajan, Rohit and Paranjpe, Samir – "Virtues of a strong bankruptcy law" – Speedy liquidation notonly helps creditors and shareholders, but also frees up capital for more productive use. An article. – (HBLNov 21, 2015 p 8)

Sengupta, Rajeswari and Roy, Richa – "From non-performing to performing" – A well-functioninginsolvency resolution framework is fundamental for dealing with business failures. An article. – (Mint Nov26, 2015 p 23)

CREDIT SCORE"PaisaBazaar, Equifax join hands to offer free credit scores: Retail borrowers to get more bargaining

power on rates: Like cos with triple-A rating, individuals with high scores will be able to get thebest rates" – Retail borrowers have often felt short-changed by banks in the absence of any lever tonegotiate interest rates. This may be about to change, with PaisaBazaar and Equifax tying up to offer freecredit scores. Although individual scores have been available for a fee, borrowers hardly utilised it. Now, justlike corporate borrowers, individuals will be able to go to banks and negotiate interest rates on the basis oftheir credit scores. Like companies with triple-A ratings, individuals with high scores will be able to get thebest rates. A report. – (ET Nov 25, 2015 p 9)

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– HOUSING FINANCE

Singh, Sanjay Kumar – "Improve your credit score before applying for a home loan: If it doesn't meeta bank's cut-off limit, you could be denied a loan. Here are ways to improve this vital number" –Correcting credit report errors: * Get in touch with the customer care department of the lending institutionand register a complaint. Note the complaint number; * Send an e-mail, quoting the complaint number anddetails of the issue, to the grievance redressal officer of the lending institution; * Send a copy of this mail tothe credit bureau; * The bank or HFC should reply within 30 days, stating the correction has been made; *Forward the response to the credit bureau; * If you don't hear from the bank within 30 days or the problemisn't rectified to your satisfaction, complain to the ombudsman; * If the ombudsman doesn't solve yourproblem, appeal to the RBI deputy governor; * Finally, you could approach a consumer court. An article.– (BS Nov 23, 2015 p 11)

CUSTOMER SERVICERaju, B Yerram – "Banks have no time for customer service: What you get instead are hidden costs

for supposedly myriad services, most of which don't seem to exist" – An article. – (HBL Nov 25,2015 p 8)

DEPOSITS (NRI)"NRI bank deposits surge $10 bn in first half: A weak rupee and rate spread push April-Sept deposits

up 55% from year-earlier period Total NRI deposits in Indian banks reach $121.8 b" – What ifforeign funds are pulling out expecting the US Federal Reserve to change its zero-rate monetary policy?Deposits by the Indian diaspora in local banks swelled by $10 billion in the first six months of the current fiscalyear, as they looked to seize the advantage of a weak rupee and the interest rate differential betweenadvanced economies and India. Inflows into NRI deposits between April and September were 55% higherthan in the year-earlier period, according to latest data from the Reserve Bank of India. As of September 30,NRI deposits in Indian banks totaled $121.8 billion. A report. – (ET Nov 21, 2015 p 6)

EDUCATION LOANS"Banks were given a target of 20 per cent growth in disbursements: Student loans dry up as bad

debts climb at banks" – An increase in non-performing assets have led several public sector banks to goslow on educational loans, latest data compiled by the Finance Ministry shows. A report. – (H Nov 25, 2015 p 16)

EXPORT CREDITMerwin, Radhika – "Providing cheaper credit to exporters for 5 years is a bold move" – In a big relief

to exporters, the Centre approved an Interest Equalisation Scheme, allowing exporters, mostly in the labour-intensive and small and medium sectors, to avail themselves of bank loans at a 3 per cent lower rate. Thescheme, applicable from April 1, 2015, would be available to all exports of Micro, Small and Medium Enterprises(MSME) and 416 tariff lines, but will not be available to merchant exporters. An article. – (HBL Nov 20,2015 p 4)

FACTORING"RBI allows banks to fix value for factoring business: Lenders can decide on percentage of the

invoice to be paid upfront" – The Reserve Bank of India has allowed banks to carry out the business offactoring without any restrictions on the pre-payment amount offered by banks for the receivables. A report.– (HBL Nov 20, 2015 p 5)

FINANCIAL INCLUSION"Financial inclusion doesn't make business sense for banks: Kidwai" – Financial inclusion does not

make business sense for commercial banks, according to Naina Lal Kidwai, Chairperson of HSBC India andExecutive Director on the board of HSBC Asia Pacific. I am a big supporter of financial inclusion, but rightnow it does not make business sense for banks. Some of the banks who have been pushed into it are stressedbanks. To make it work, it is critical to have direct benefits transfer pushed through the banking system. Areport. – (HBL Nov 21, 2015 p 5)

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"Financial inclusion will ensure opportunities for growth" – ICICI Bank chief Chanda Kochhar saidgovernment's financial inclusion schemes will bring crores of people into the mainstream and ensure inclusivegrowth opportunities. – (FE Nov 20, 2015 p 10)

FINANCIAL STABILITY"ECB warns Asia risks rising as Fed liftoff tests stability" – The European Central Bank warned of a

rapid repricing of global risk premia, focused on emerging markets, especially if the U.S. Federal Reserveincreases interest rates faster than expected. 'Highly indebted foreign-currency borrowers may be vulnerableto a prospective normalization of financial conditions in the U.S. and other advanced economies,' the ECBsaid in its twice-yearly Financial Stability Review. A report. – (FE Nov 26, 2015 p 8)

FOREIGN BANKING"Foreign banks buy up bulk of State govt debt: Rs.30,000 cr of the Rs.35,000 cr bonds on offer in

October, picked up by 3 banks" – Three banks snapped up almost 90 percent of bonds sold by Indianstates to foreigners, and turned them into derivatives, raising the prospect of more volatility in one of Asia'sbest performing debt markets. – (HBL Nov 25, 2015 p 10)

Raghav, Devendra – "Easing subsidiarisation of foreign banks in India" – Question facing foreign banksis dilution of stake in WOS in phased manner on completion of a minimum period of operation. An article.– (ET Nov 25, 2015 p 14)

– ABN AMRO

"How ABN Amro got bought, bailed out and sold again" – When a group of three banks bought ABNAmro for 71.9 billion euros ($77 billion) in 2007, it was the biggest financial-services takeover ever. A yearlater, the Dutch government stepped in to rescue the troubled lender, spending almost 22 billion euros on theasset. The initial public offering raised 3.3 billion euros for the government, with shares priced at 17.75 euroseach. Here are some of the highlights of the bank tumultuous history - from attempts to crack into the bigleague of global banking to being bailed out by the Dutch state. A report. – (ET Nov 21, 2015 p 11)

– DEUTSCHE BANK

"Deutsche Bank in mobile security push: Account login combines high-tech features to lift limits ontransactions" – Deutsche Bank is looking to introduce mobile phone technology that analyses the waypeople touch and handle their devices as a security check. The bank hopes the system will free customersfrom passwords and allow it to lift limits on mobile transactions. The technology analyses about 50 differentfactors to build a picture of a user from pressure applied to the pin-pad to how the phone is held, location,facial recognition and thumbprint. A report. – (FT Nov 23, 2015 p 16)

"Deutsche Bank plans job cuts at German unit" – Deutsche Bank AG plans to eliminate jobs at its Germanpower-trading business as Co-Chief Executive Officer John Cryan seeks to cut costs across Europe's largestinvestment bank, according to a person with knowledge of the matter. – (FE Nov 26, 2015 p 8)

– HSBC - MONEY LAUNDERING

"Money laundering: probed HSBC India's preventive processes in March-April, says RBI: Findingscannot be disclosed, says apex bank in response to BusinessLine RTI query" – While the RBI hadearlier said that it was only keeping a close watch on probes being conducted against HSBC in other countries,its response to a Right to Information (RTI) query filed by BusinessLine reveals that the central bank hadconducted its own probe into HSBC India unit, between March and April this year. A report. – (HBL Nov 23,2015 p 1)

– STANDARD CHARTERED

"StanChart reopens its Japan desk in Chennai" – Standard Chartered, the largest foreign bank in thecountry, reopened its Japan desk in Chennai. Standard Chartered is one of the few foreign banks to have adesk dedicated to focusing on the interests and banking requirements of Japanese companies in the region.This will help deepen the bank's relationship with the senior management teams of Japanese companiesbased in Chennai. A report. – (FE Nov 24, 2015 p 8)

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Roy, Anup – "Ready to ride out the storn: Zarin Daruwala / CEO-designate, Stanchart" – Maintainingrelationships is Daruwala's strong suit, and she is known to keep strong ties with her clients through theyears. An article. – (BS Nov 20, 2015 p 15)

GOLD MONETISATION SCHEME"Two weeks on, Govt. gets just 400 gm yellow metal: According to estimates, around 20,000 tonnes

of the metal worth over Rs.52 lakh crore is lying idle with households and temples in the country"– If the 13,000 BIS-certified jewellers are allowed to act as collection agents, then I am hopeful that thescheme will take off in a good way, according to Anil Sankhwal, Northern Region Chairman, Gem andJewellery Export Promotion Council's (GJEPC). According to a ministry official, 55 gold purity testing centreswould come up by December, up from 29, at present. A report. – (H Nov 20, 2015 p 15)

INDUSTRIAL RELATIONS"Bank employees defer Dec strike post talks" – All India Bank Employees Association (AIBEA) said it

has deferred the proposed nationwide bank strike on December 1-2, 2015. – (FE Nov 26, 2015 p 2)

MONETARY POLICY"RBI to hold rates on December 1: BS poll: Market players see no change in CRR either, expect

RBI to wait for Fed move" – Bankers, economists and market participants expect the Reserve Bank ofIndia (RBI) to maintain status quo in its fifth bi-monthly policy review for 2015-16, scheduled on December1. All 12 participants in a BS poll said RBI Governor Raghuram Rajan would be in no mood to tinker with theinterest rate or even the cash reserve ratio. He would ideally wait to see the impact of a possible rate hike bythe US Federal Reserve on December 15-16, possibly the first by the world largest economy since June2006. A report. – (BS Nov 26, 2015 pp 1, 7)

Rao, Radhika – "Central bank's hands are tied" – An article. – (Mint Nov 25, 2015 p 22)

Saha, Manojit – "Monetary Policy: RBI likely to keep interest rate unchanged in December: Inflationtarget set to be met; next rate cut seen in February" – We expect the RBI to pause in the Decemberpolicy and cut 25 bps in the February policy once there is clarity that retail inflation will achieve the January2015 mandate of 6 per cent, according to Indranil Sen Gupta, Chief Economist, Bank of America MerrillLynch. An article. – (H Nov 23, 2015 p 15)

Sen Gupta, Indranil – "RBI: Permanent liquidity key" – An article. – (Mint Nov 26, 2015 p 10)

– FOOD INFLATION

"RBI weighing food Inflation impacts before rate review: Rajan says challenge is to avoid a 'wagehike spiral' stemming from higher food costs" – India's central bank is looking to contain the broadereffects of a surge in food prices, Governor Raghuram Rajan said less than two weeks before his final policyreview for 2015. The challenge is to avoid a 'wage hike spiral' that would result from higher food costs, whichmake up about half of India consumer prices basket, he said in remarks in Hong Kong. Other prices have toadjust to avoid that situation, even if that means curbing growth. A report. – (ET Nov 21, 2015 p 11)

NON-PERFORMING ASSETS"Sector-specific panels to nudge loan recovery: A one-size-fits-all formula for recovery of NPAs will

not work, says IBA head Ashwani Kumar" – The Indian Banks Association (IBA) has set up sector-specific committees to expedite recovery and reduction of bad loans. The move would also help banks to dealwith the unique pro0blems faced by various sectors and thereby work on the recovery process. A report.– (HT Nov 26, 2015 p 15)

"Stress on bank loans reduced in first half FY16: ICRA: Troubled loans remained at the same levelbetween March and September" – The banking sector saw a moderation in the pace of stressed assetformation from around 5.6 per cent in FY15 to 3.3 per cent in the first half of FY16, according to a report by

– 11 –

ratings agency ICRA. Including the exposure refinanced under 5/25 scheme, however, stressed assets formationremained high at about 5.5-6 per cent during the period. Banks credit growth dropped to a multi-year low of8.8 per cent and overall systemic credit growth, including corporate bonds and commercial paper, was higherat 11.6 per cent. A report. – (HBL Nov 24, 2015 p 10)

– EUROPE / USA

"Bad loans burden heavier in Europe than in US" – Bad loans are twice as big a problem for Europeanbanks as they are for banks in the US, despite lenders' efforts to clean up balance sheets in Eurozonehotspots from Spain to Ireland to Greece. Figures show that almost 6 per cent of European banks' loan booksare impaired, compared with 3 per cent in the US. A report. – (FT Nov 25, 2015 p 14)

– PUBLIC SECTOR BANKS

"Bad loans by public sector banks soar 27 pc in a year" – Already burdened by bad loans, 37 banks, led bypublic sector ones, have reported a 26.8 per cent rise in non-performing assets (NPAs) over the 12-monthperiod ending September this year. This is a nearly 10 per cent rise from the 16.9 per cent growth in bad loansover the same period a year ago, with several projects, especially those in the infrastructure sector, stuck.While the overall NPAs now amount to Rs.3,36,685 crore, the rise in the last 12 months ended September2015 was Rs.71,000 crore, according to figures compiled by credit rating CARE. A report. – (IE Nov 25,2015 pp 1, 2)

PAYMENTS MARKET

– PAYUMONEY

"SMEs need simple products to transact online: Our focus has been on building trust, saysPayUmoney" – An interview with Paritosh Sharma, Head, Channel Partnerships at PayUmoney. PayUmoney,an online payments solution, claims to be the number one player in the e-commerce category and the second-largest in the overall payments industry. He spoke about the payments market and the need to simplify it, thecompany's move to reduce discounts and strategy for growth. Discounts have been the hallmark of the e-commerce industry in India. And we have been very critical of the fact. – (HBL Nov 23, 2015 p 16)

PMJDY

– FINANCIAL INCLUSION

"Financial inclusion: Visa, MasterCard scramble to get a slice of payments bank pie" – Card issuersVisa and MasterCard are squaring off against the homegrown RuPay in the race to partner with paymentsbanks. Visa and MasterCard missed the chance to reach out to millions of customers when the governmentdecided that bank accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), a financial inclusionprogramme, would be powered by RuPay, the domestic card issued by the National Payments Corp. of India(NPCI). Till date, 192.7 million such bank accounts have been opened and cards issued. Now, card issuersare zeroing in on payments banks. A report. – (Mint Nov 25, 2015 p 22)

"Jan Dhan: UP, Delhi top list of zero-balance a/cs: 65% of 19.27-crore accounts have money inthem" – Uttar Pradesh and Delhi topped the list of States with the highest number of zero-balance accountsin the Prime Minister's Jan Dhan Yojana (PMJDY). As per government data updated up to end of last week,Madhya Pradesh, Bihar and Rajasthan are the others in the top five. The number of accounts opened so farstood at 19.27 crore with 65 per cent having balances aggregating almost Rs.27,000 crore. A report. – (HBLNov 24, 2015 p 1)

"Why government's financial inclusion plans are floundering" – When Prime Minister Narendra Modiproclaimed the launch of Jan Dhan Yojna, a financial inclusion scheme, on August 15, 2014, another similarinitiative called Swabhimaan, started by the government in 2011, was dying a silent death. For close to fiveyears, financial inclusion has been on the top of the agenda of the central government. Yet, the results are justthe opposite. Data shows the rural credit-deposit ratio dropped from 92 per cent in 2010 to 72 per cent in2014. A report. – (BS Nov 24, 2015 p 17)

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PRIVATE SECTOR BANKS"RBI nod must for investors picking up more than 5% stake in a private bank" – In a bid to have

greater scrutiny over banking ownership, the Reserve Bank of India said that new investors who buy over 5per cent shares or convertible debt of a private sector bank will have to get the central bank's approval. Theshareholders having 5 per cent or more of the paid-up share capital of a bank would have to give an annualdeclaration on their 'fit and proper' status. A report. – (HBL Nov 20, 2015 p 5)

PUBLIC SECTOR BANKS"FM Arun Jaitley to meet PSB heads today; NPAs, rate cut likely on agenda" – Finance minister Arun

Jaitley will review state-owned banks' performance in bad loan reduction, priority sector lending and in thefinancial inclusion schemes in pension and insurance sectors at a meeting of PSU bank chiefs here onMonday. An official statement from the finance ministry said that lending to micro, small and medium enterprises(MSMEs) and the status of funding commitments made by banks for renewable energy projects for the nextfive years would also be discussed at the meeting, which would be attended by the top brass in the ministryas well as by representatives of the RBI and other departments. A report. – (FE Nov 23, 2015 p 4)

"Jaitley promises succour for more sectors to help banks: In PSBs meeting, Arun Jaitley outlinedplan to boost credit quality, offtake" – Having come out with a new plan for debt-hit power distributioncompanies and taken a slew of steps to salvage languishing road projects, finance minister Arun Jaitleypromised more sector-specific steps to boost banks confidence and accelerate credit offtake by industry. Areport. – (FE Nov 24, 2015 pp 1, 2)

"PSBs: Review & tough questions" – The second quarter review of performance of state-run banks showsvery few areas of improvement. Ahead of FM's review quarterly review, ET takes a look at the governmentcompiled report card. – (ET Nov 23, 2015 p 9)

RECOVERY OF LOANS

– DEFAULTERS

"Lenders to sell KFA's assets in e-auction on December 7" – The 17 lenders to the grounded KingfisherAirlines, led by State Bank of India, decided to auction assets of the defunct carrier in their latest bid torecover part of their dues of about Rs.8,000 crore, which have not been serviced since January 2013. Theassets to be e-auctioned on December 7 include the equipment and movable assets of the grounded airlineand not bigger properties like the Kingfisher House in Mumbai and the Kingfisher Villa in Goa. Both havebeen taken over by the lenders in recent past. A report. – (FE Nov 22, 20158 p 11)

"Mallya ready to smoke the peace pipe with banks" – In a major relief for Indian banks, Vijay Mallya,chairman of the beleaguered UB group, wants to settle his dues with banks and plans to initiate formalnegotiations in the next few weeks. Mallya's willingness to settle the dues comes after the Central Bureau ofInvestigation (CBI) stepped up efforts to investigate a Rs.950-crore loan given by IDBI Bank to the now-collapsed Kingfisher Airlines. The airline, which shut shop in 2012, owed Indian banks Rs.7,000 crore as ofJanuary this year. A source close to the UB group said Mallya was willing to settle with the public-sectorbanks by selling part of his stake in various companies and assets based in India and abroad. A report. – (BSNov 23, 2015 p 1)

RETAIL LENDINGRaghu, S A – "Why are banks in love with retail?: They are now driven by risk aversion and short-

term profitability" – An article. – (HBL Nov 23, 2015 p 11)

STRATEGIC DEBT RESTRUCTURING"Banks convert loans worth Rs.40k cr to equity" – Banks have converted close to Rs.40,000 crore worth

of corporate loans into equity under the strategic debt restructuring (SDR) route. According to a report, byrating agency ICRA, close to 0.5% of bank loans have been reworked through SDR - a process whichallows lenders to take control of a business by converting debt into shares. A report. – (TI Nov 25, 2015 p 22)

– 13 –

"Banks to take control of Gammon India" – Lenders have decided to take over the management control ofinfrastructure developer Gammon India under the strategic debt recast scheme, according to a filing by thecompany to the exchanges. Gammon India, in which the promoter holds 34 per cent, has a debt of Rs.14,500crore. Its market cap is Rs.175 crore. – (H Nov 24, 2015 p 15)

Dugal, Ira – "Strategic debt restructuring: banks should tread with caution" – An article. – (Mint Nov20, 2015 p 21)

RBI CIRCULARS"Advance Remittance for Import of aircrafts /helicopters / other aviation related purchases" – (RBI

Circular RBI/2015-2016/249 A.P. (DIR Series) Circular No.30 dated 26.11.2015)

"Auction of Government of India Dated Securities" – (RBI Circular RBI/2015-2016/244 Ref. No. IDMD/1130/08.02.032/2015-16 dated 23.11.2015)

"Bank Finance to Factoring Companies" – (RBI Circular RBI/2015-2016/247 DBR.BP.BC.No.55/21.04.172/2015-16 dated 26.11.2015)

"Central KYC Records Registry (CKYCR) - template for Know Your Customer (KYC) and reportingrequirements under Foreign Account Tax Compliance Act (FATCA)/ Common Reporting Standards(CRS)" – (RBI Circular RBI/2015-2016/251 DBR.AML.BC.No.60/14.01.001/2015-16 dated 26.11.2015)

"Engagement of Services of Expatriate Officers in Indian Offices of Foreign Banks" – (RBI CircularRBI/2015-2016/252 DBR.IBD.BC. 61/23.07.001/2015-16 dated 26.11.2015)

"Implementation of UNSCR 2140(2014) and 2216(2015) pertaining to Yemen" – (RBI Circular RBI/2015-2016/243 DBR.AML.No.6912/14.06.001/2015-16 dated 20.11.2015)

"Import of Goods into India - Evidence of Import" – (RBI Circular RBI/2015-2016/248 A.P. (DIR Series)Circular No.29 dated 26.11.2015)

"Investment by Foreign Portfolio Investors (FPI) in Corporate Bonds" – (RBI Circular RBI/2015-2016/253 A.P. (DIR Series) Circular No.31 dated 26.11.2015)

"Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) - DirectionsDNBS.PD.No. 234/CGM (US)-2011 dated December 2, 2011 and DNBR.CC.PD.No. 027/03.10.01/2014-15 dated April 08, 2015 - Revision of the loan amount with tenure not less than 24" – (RBICircular RBI/2015-2016/250 DNBR.CC.PD.No. 071/03.10.038/2015-16 dated 26.11.2015)

"Online Returns to be submitted by NBFCs- Revised" – (RBI Circular RBI/2014-2015/246 DNBS(PD).CC.No.03/03.02.02/2015-16 dated 26.11.2015)

"Sovereign Gold Bonds, 2015-16" – (RBI Circular RBI/2015-2016/245 IDMD.CDD.No.1157/14.04.050/2015-16 dated 24.11.2015)

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTURAL EXPORTS

Sharma, Prerna – "What's holding up India farm exports?" – A mixed bag of factors - tariff and non-tariffbarriers, high logistics costs, and skewed procurement policies. An article. – (HBL Nov 26, 2015 p 8)

AGRICULTURAL FINANCE"C.bank sets farm lending target at 11.57%" – The Reserve Bank of India directed banks that they should

lend at least 11.57% of their funds directly to non-corporate farmers in the fiscal 2015-16. The central bankset the target for direct lending by banks to agriculture under priority sector at 11.57%, which is based on thesystem-wide average of the last three years' achievement with regard to overall direct lending to non-corporate farmers. – (FE Nov 20, 2015 p 10)

– 14 –

REGIONAL RURAL BANKS"RRBs can provide internet facility" – Regional Rural Banks (RRBs) will be allowed to provide basic

Internet banking facilities to its customers. At present, RRBs are not permitted to provide such facilities. TheRBI guidelines has suggested that Internet banking facility is strictly for non-transactional services, such asbalance enquiry, balance viewing, account statement download, request for supply of cheque books, etc. andno online fund-based transactions are allowed. RRBs providing such facilities must have a capital of over 10per cent and networth of Rs.100 crore as on March 31 of the immediate preceding financial year and musthave no accumulated losses. The gross NPAs must be less than 7 per cent and net NPAs not more than 3 percent, among other requirements. – (HBL Nov 20, 2015 p 5)

INDUSTRY

INFRASTRUCTURE SECTOR

– PPP MODEL

"Kelkar panel suggests new ways to fund PPP projects: Both Govt & panel tight-lipped on therecommendations" – The Vijay Kelkar committee, which was reviewing the public-private partnershipmodel of infrastructure development, has made recommendations to improve the financing of such projects.The committee has analysed the risks involved and the existing framework of risk-sharing between theproject developer and the government and given its recommendations. A report. – (HBL Nov 20, 2015 p 1)

LIC"LIC employees agree on 15% salary hike, five-day week" – The management of Life Insurance

Corporation (LIC) and the unions representing around 1 lakh employees of the company have agreed on a15% wage hike, effective from August, 2012. The new wage package does not cap an increase in the basicsalary unlike in the case of bank employees, who also sealed a wage hike package in May with a similar hike.– (IE Nov 26, 2015 p 15)

MANUFACTURINGLokeshwarri S K – "Turnaround in manufacturing?" – The RBI's survey of order books, inventory and

capacity utilisation shows that the slowdown in manufacturing could be bottoming. Capacity utilisation ratesare stable and order books grew a tad in the June quarter. But higher finished goods inventory is a concern asit signals weak demand. A graphical report. – (HBL Nov 20, 2015 p 9)

MUTUAL FUNDS"How mutual funds fared in 2015" – Equity market was lacklustre this year but most mutual funds have

managed to better their benchmarks. Here are the themes that clicked. A report. – (HBL Nov 23, 2015 p 2)

NON-BANKING FINANCE COMPANIES"RBI must hold dialogue with NBFCs: A formalised arrangement for interaction will help develop

the sector, says FIDC chief" – The Reserve Bank of India must put in place a 'formalised arrangement'for holding periodical dialogues with non-banking finance companies. Having a formalised arrangement ofdialogue will help in the development of the NBFC sector, an aspect that policymakers and the regulator mustpay attention to, Raman Aggarwal, Chairman, Finance Industry Development Council (FIDC). A report.– (HBL Nov 25, 2015 p 10)

– 15 –

SMALL SCALE INDUSTRY

ENTREPRENEURSHIPAcharya, Anu and Lingareddy, Subash – "A culture pitted against entrepreneurship" – If India wants

to improve its 'ease of doing business', its society and institutions should not frown upon risk-taking. Anarticle. – (HBL Nov 21, 2015 p 8)

INTERNATIONAL ECONOMICS

FINANCIAL CRISISPrasad, Bandi Ram – "Is another financial crisis looming?: The levels of corporate debt, along with

falling market capitalisation, mark a disturbing throwback to 2008" – An article. – (HBL Nov 25,2015 p 8)

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Nov 23, 2015 Supl. pp 1-18)

INTERNATIONAL RESERVE CURRENCY

– YUAN

Narasimhan, C R L – "Implications of yuan's rise" – The expectation that the yuan will acquire reservecurrency status is no longer a pipe dream. An article. – (H Nov 23, 2015 p 16)

LABOUR & PERSONNEL MANAGEMENT

LABOUR REFORMS

Butani, Mukesh – "Labour reforms in the pipeline?: While labour has been a key competitiveadvantage, we need to simplify laws to maintain the edge..." – An article. – (FE Nov 25, 2015 p 6)

MANPOWER"Union govt has 729,000 vacancies: report" – Central government departments had a 19% manpower

shortage as of January 2014, possibly affecting their productivity and efficiency. The ministry of finance andthe ministry of science and technology were the worst hit, with a shortage in excess of 45%. Together, the 56ministries and departments had a staff shortage of around 728,870 as of January 2014, according to datafrom the Seventh Pay Commission's report. Of the 3,890,112 sanctioned posts, 3,161,242 had been filled, thereport shows. A report. – (Mint Nov 24, 2015 p 9)

SEVENTH PAY COMMISSION"Confident of Rs.1-lakh cr payout: Pay panel won't put finances in a squeeze: govt: As rating agencies

raise red flag, officials say govt could delay allowances if need be" – The government said the SeventhCentral Pay Commission's recommendations won't throw its finances off kilter and that it will stay the courseon fiscal consolidation, responding to concerns over the impact of Rs.1.02 lakh crore due to salary increasesin FY17. While rating agencies have warned of the consequences on India's grading, brokerages said highersalaries could have an inflationary impact and delay further monetary easing. A report. – (ET Nov 21, 2015 p 1)

"Seventh Pay Commission Report: 23.55% bonanza for Central staff: Will cost exchequer Rs.1,02,000cr; benefit 47 lakh staff, 52 lakh pensioners" – The pay back: * Of the overall 23.55% hike, pay toaccount for 16%, allowances 63%, and pension 24%; * The minimum pay is Rs.18,000/month; * Maximumpay will be Rs.2,25,000/month for apex scale and Rs.2,50,000/month for Cabinet Secretary level posts; *Financial impact in FY17: Rs.1,02,100 crore over the expenditure under the 'business as usual' scenario; *Rs.73,650 crore will be borne by the Union Budget, and Rs.28,450 crore by the Railway Budget; * Grade paysubsumed in the new pay matrix; * 52 allowances may go. A report. – (HBL Nov 20, 2015 p 1)

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MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITY

– RESPONSIBILITY REPORTING

"Corporate responsibility: Responsibility reporting on the rise, finds survey" – India steals the show when itcomes to responsibility reporting, suggests the 9th edition of a survey on corporate responsibility reporting byKPMG International Cooperative. The Swiss company, in partnership with its affiliate KPMG across 45countries, including India, covered 4,500 companies in the survey, the results of which were released. Indiahas seen the biggest jump in overall reporting - from 20% in 2011 to 100% in 2015. A report. – (Mint Nov 26,2015 p 8)

LEADERSHIPAnderson, Bob and Adams, Bill – "Reactive leadership: Three different types" – An article. – (Mint

Nov 25, 2015 p 15)

ORGANIZATIONAL EFFECTIVENESSAnderson, Bob and Adams, Bill – "The six systems of organizational effectiveness" – An article.

– (Mint Nov 20, 2015 p 13)

MISCELLANEOUS"Seven Indians on BBC 100 Women list" – Making a mark on the global map, seven Indian personalities

have made it to BBC list of 100 most aspirational women. They are singer Asha Bhosle, tennis star SaniaMirza, veteran actor Kamini Kaushal, Rimppi Kumari, farmer, Smriti Nagpal, entrepreneur, Mumtaz Shaikh,campaigner, and Kanika Tekriwal, entrepreneur. A report. – (H Nov 19, 2015 p 20)

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