Volume XXXII Number 16 January 16, 2017

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 15

D. INDUSTRY 15

E. SMALL SCALE INDUSTRY 16

F. INTERNATIONAL ECONOMICS 16

G. LABOUR & PERSONNEL MANAGEMENT 17

H. MANAGEMENT 17

– 1 –

BANKERS' BRIEF Vol. XXXII No. 16 January 16, 2017

ECONOMY"CSO estimates economy to grow 7.1% in 2016-17: Has not factored in November deposits surge in

banking system" – The Indian economy is expected to grow 7.1 per cent in 2016-17, the Central StatisticsOffice (CSO) said, in its advance estimates for fiscal 2017. Economists were unsurprised by the estimation.Soumya Kanti Ghosh, Chief Economic Advisor, SBI Group, said in a research note that the estimate was onexpected lines. TCA Anant, Chief Statistician, said this was the 'best effort estimate' for the full financialyear of 2016-17. He made it clear that the CSO had not factored in deposits into the banking system inNovember 2016, the first month of demonetisation. A report. – (HBL Jan 7, 2017 p 1)

"Economy may hit a happy note soon as cash crunch eases: SBI" – Says 67% of cancelled currencylikely to get replaced by month-end, 80-89% by Feb-end. A report. – (ET Jan 6, 2017 p 1)

"Eliminating shadow economy to have positive impact on GDP: FM: Country better placed withimproved macro-economic fundamentals, finance minister tells financial sector regulators" –Government's measures to eliminate the shadow economy and tax evasion are expected to have a positiveimpact on the country's gross domestic product and fiscal consolidation in the long run, according to thefinance minister Arun Jaitley. The country appeared to be much better placed with improved macro-economicfundamentals, Jaitley said while chairing a meeting of the Financial Sector Development Council (FSDC). Areport. – (ET Jan 6, 2017 p 13)

"Fitch cuts India's growth outlook to 6.9% for FY17 on currency ban" – Fitch Ratings has downgradedIndia's growth outlook to 6.9% for 2016-17 from the earlier 7.4% due to 'uncertainty' over the benefits ofdemonetisation. The demonetisation of large denomination bank notes has caused short term disruption inIndia's economy and led us to downgrade our growth forecasts for 2017, according to Fitch Ratings said in itslatest bi-monthly newsletter. – (ET Jan 12, 2017 p 13)

"Growth to be below 7.1% estimate, say economists: CSO has underestimated decline in economicactivity" – Economists' are sceptical about the Central Statistics Office's 2016-17 advance estimate of 7.1per cent GDP growth, with some contending that the deceleration forecast in economic activity is possiblyunderstated even without accounting for effects of demonetisation. They see downside risk of at least 20-30basis points to the CSO's annual GDP estimate for 2016-17, with the second reading out on February 28 andfinal on May 30. Given the unfolding trends, we expect actual 2016-17 growth to be lower than the AdvanceEstimates for sub-sectors such as manufacturing, agriculture, electricity and construction. A report. – (HBLJan 10, 2017 p 4)

"I have no basis to estimate GDP growth different from 7.1%" – Edited excerpts from an interview withTCA Anant, Chief Statistician. He said the effect of demonetisation on economic growth in the currentfinancial year is very complicated and there is not enough evidence so far to gauge it. – (BS Jan 9, 2017 p 4)

"India at exciting but challenging time, says Viral Acharya" – India is at an 'exciting but challenging time'and has massive potential to become an 'economic powerhouse', according to newly-appointed Deputy Governorof the RBI and noted economist Viral Acharya. – (FE Jan 11, 2017 p 10)

"Not enough data to figure out demonetisation impact on GDP" – Excerpts from an interview with TCAAnant, chief statistician of India and secretary to the ministry of statistics and programme implementation.He said that it's not easy and prudent to make a categorical statement that demonetisation will result in an Xpercentage point drop in GDP; former PM Manmohan Singh had asserted that India will lose 2 percentagepoints in GDP because of the November 8 decision. – (ET Jan 8, 2017 p 5)

"Reigniting the economy: Govt should cut taxes and abolish exemptions" – An editorial. – (BS Jan 6,2017 p 9)

"The slowing economy" – An editorial. – (H Jan 9, 2017 p 10)

– 2 –

"We expect 7.5% GDP growth in fiscal 2018: Deutsche Bank India" – Edited excerpts of a conversationwith Deutsche Bank India Ravneet Gill, chief executive officer; Rahul Chawla, head, global markets (debt)and Pratik Gupta, head-equities. – (Mint Jan 10, 2017 p 12)

"World Bank cuts India's GDP growth forecast to 7% for FY17" – The World Bank has sharply cut itseconomic growth forecast for India to 7 per cent in 2016-17 after taking into account the impact ofdemonetisation and the fall in private investments. This growth forecast is lower than the 7.6 per cent growthprojected in the middle of last year. – (HBL Jan 12, 2017 p 1)

Chakraborty, Samiran – "Repair, reform and rebound" – Demonetisation holds out the prospect of long-term gains, but the economy might need some succour now to boost sentiment. An article. – (Mint Jan 11,2017 p 17)

Chakravarty, Manas – "Economic growth is much weaker than what the headline numbers show" –An article. – (Mint Jan 10, 2017 p 7)

Kapoor, Rana – "Leaping from a strong foundation" – In 2017, the economy will see the benefits of thereforms from the previous year. An article. – (IE Jan 7, 2017 p 9)

Sabnavis, Madan – "What the GDP numbers do not say" – For one, government consumption expenditurehas to increase by 38 per cent in the second half to enable growth. An article. – (HBL Jan 11, 2017 p 8)

BASIC INCOME SCHEME"UBI versus DBT: Universal Basic Income works only if all sops removed" – An editorial. – (FE Jan

12, 2017 p 8)

Bhalla, Surjit S – "Basic income for bottom 50%" – The Budget having such a scheme for the poor andlower middle-class will be a political & economic master-stroke. An article. – (FE Jan 7, 2017 p 8)

CASHLESS ECONOMY"Cashless economy is a boon" – Cashless economy is a boon, Muhammad Yunus, founder of Grameen Bank

and Nobel Peace Prize winner. He said demonetisation had to come someday. What is needed is to addincentives to the cashless model to make it successful. Most important, demonetisation has brought the ruraland unorganised sectors into the banking fold. A report. – (H Jan 6, 2017 p 9)

EMPLOYMENT"Employment in eight key sectors estimated at 205.22 lakh: 81.6% are regular employees, 13.3%

contractual and 5.06% casual" – The total estimated employment in eight selected sectors stood at 205.22lakh, as per the new series of the draft Quarterly Employment Survey by the Labour Bureau. A report.– (HBL Jan 11, 2017 p 4)

FOREIGN EXCHANGE RATERajwade, A V – "Financial stability, capital flows and rupee" – What is needed is a globally competitive

exchange rate with the objective of balancing the external account, net of secondary income, to help supportgrowth and employment. An article. – (BS Jan 12, 2017 p 10)

FOREIGN EXCHANGE RESERVES"Forex reserves rise by $625 mn" – Forex reserves rose by $625.5 million to $360.3 billion in the week

ended December 30, according to the RBI data released. Foreign exchange reserves had touched a recordhigh of $371.99 billion at the end of September last year, but have been steadily declining since then. The risewas primarily due to depreciating foreign currency assets recouping some losses over the previous fortnight.– (FE Jan 7, 2017 p 10)

– 3 –

GOVERNMENT BORROWINGS"Urjit Patel urges government to cut borrowing: Calls for caution in providing govt-backed credit

guarantees" – Reserve Bank of India Governor Urjit Patel urged the government to show some progress incutting high Central and State government borrowing, just weeks before Prime Minister Narendra Modi'sadministration is due to unveil its annual budget. The government debt to gross domestic product ratio wasalso taking its toll on the country's sovereign ratings. A report. – (HBL Jan 12, 2017 p 1)

GSTRenavikar, Rahul – "Goods & services tax: So near... Yet so far: Uncertainty on GST, on top of the

demonetisation uncertainty, isn't good for doing business" – Unless consensus on critical GST issuesemerges between the states and the Union governments, all preparations made by all stakeholders could befutile. An article. – (FE Jan 6, 2017 p 8)

NITI AAYOG"Wait for numbers to assess demonetisation impact: In the Budget, we need to increase both capital

and social expenditure: Panagariya" – Excerpts from an interview with Arvind Panagariya, Vice-Chairman,NITI Aayog. He said there had been complaints that the Prime Minister had not done enough to curb blackmoney as was promised in his party manifesto. Now demonetisation has cleared those doubts in no uncertainterms. – (HBL Jan 11, 2017 p 4)

RURAL INFLATIONLingareddy, Tulsi – "What is driving rural inflation at a higher rate?" – Consumer price inflation in rural

areas has been persisting at a higher rate than that in urban areas and the gap between the two has stood at1.5 percentage points in May 2016. Inflation of both series slowed considerably during the last two years orso, the moderation in rural areas has been slower than in urban areas. This was partly due to compositionaldifferences accompanied by divergent price movements and partly due to higher marketing costs and trademargins resulting from the prevailing rural-urban divide in terms of infrastructure bottlenecks, inadequatelogistics support, etc. An article. – (EPW 51(44&45) Nov 5, 2016 pp 117-122)

BANKING

GENERAL"Asset deterioration a challenge for banks: Moody's" – Lenders to focus on resolving large problem

accounts but will be limited by their weak reserves & continued pressure on profitability. Subdued prospects:* Pressure on asset quality largely reflects the system legacy problems; * Underlying asset trend for bankswill be stable because of a generally supportive operating environment; * The 'true' level of impaired loanswill be around 1-1.5 percentage points higher than the latest reported numbers; * A muted level of creditofftake will continue to exert downward pressure on lending rates. A report. – (HBL Jan 10, 2017 p 10)

"Govt asks banks to obtain PAN/ Form 60 from all account holders" – The Centre has asked banks toobtain and link permanent account number (PAN) or Form 60 (where PAN is not available) in all existingbank accounts by February 28 this year. The income tax rules have been amended for the purpose. – (HBLJan 9, 2017 p 13)

"With digital, perceived risk comes down and spreads can decrease" – Edited excerpts from an interviewwith Anup Bagchi, Head-Retail Banking, ICICI Bank. – (Mint Jan 10, 2017 p 15)

Raghu, S A – "Banks search for revival in 2017" – Problems of non-performing assets and failing corporatecredit growth to continue. Stockpiling loans: The real problem will be of unlocking cash flows from the non-performing assets. Burden of debt: * Gross NPAs increase to Rs.6.5 lakh crore in September 2016; * Marketborrowing challenging for Indradhanush programme; * Banks piling large retail exposures. An article.– (HBL Jan 9, 2017 p 11)

– 4 –

Sukumar, R – "Reform the system, don't blame the bankers" – India's banking sector, warts and all,remains safer and better run than similar systems in many other countries. An article. – (HT Jan 9, 2017 p 10)

AXIS BANK"Axis Bank becomes third lender to offer block chain service" – Axis Bank became the third lender in

the country to announce usage of block chain solutions for its operations, after its peers ICICI Bank and YesBank. – (FE Jan 10, 2017 p 10)

– INVESTMENT BANKING

"Axis Bank retains top slot in investment banking" – Axis Bank has left behind large foreign banks,known for their investment banking skills, as it has retained the top investment banking rank in the past 10consecutive years. A report. – (ET Jan 7, 2017 p 6)

BANK OF BARODA

– LOAN PRICING

"Bank of Baroda to offer lowest home loan rate at 8.35%" – Bank of Baroda has decided to give peerlenders in the housing finance space, such as State Bank of India and HDFC, a run for their money. Thepublic sector lender will now offer home loans starting from 8.35 per cent, which is its one-year marginal costof funds-based lending rate (MCLR). – (HBL Jan 10, 2017 p 10)

BANK OF BARODA / UNITED BANK OF INDIA

– LOAN PRICING

"Bank of Baroda, United Bank join MCLR cut bandwagon" – Bank of Baroda and United Bank of Indiareduced their marginal cost of funds-based lending rates (MCLRs). While BoB reduced it by 55-75 basispoints across tenures, United Bank cut the rate by up to 90 basis points across tenures. After revision, BoBone-year MCLR now stands at 8.35%, while the same is 8.8% for UBI. – (FE Jan 6, 2017 p 10)

DCB BANK"DCB Bank launches 16-currency travel card" – DCB Bank, announced the launch of its multi-currency

foreign exchange card for resident Indians travelling abroad. DCB TravelSmart card can be loaded with 16currencies, each of which have a digital wallet or section on the card. The card can be used at 20 lakh ATMsacross the world which accept Visa cards. – (FE Jan 12, 2017 p 10)

DENA BANK"Dena Bank to raise share capital through equities" – Dena Bank said its board has approved raising of

share capital by up to Rs.360 crore through issue of equity shares. – (FE Jan 10, 2017 p 10)

HDFC BANK"HDFC Bank to deploy human-sized robot 'Ira' in 2 weeks in Mumbai" – HDFC Bank Ltd launched

what it claimed to be the first 'humanoid' in the domestic banking space, and also said it is looking to partnerwith start-ups having technological solutions for rural operations. The bank showcased human-sized robotIra, developed in association with Kochi-based Asimov Robotics Pvt. Ltd, and said it will be deployed at acity branch within a fortnight. A report. – (Mint Jan 10, 2017 p 5)

– INTEREST RATES / DEPOSITS

"HDFC Bank slashes rates on bulk deposit by 125 bps to 5%" – HDFC Bank slashed interest rates ondeposits of over Rs.5 crore with maturities of one year and more by 125 basis points (bps) to 5%. With thelatest cut, the differential between the bank's bulk deposit rate on one-year money and that of State Bank ofIndia has narrowed to 75 bps from 200 bps. – (FE Jan 7, 2017 p 10)

– 5 –

IDFC BANK"Within a fortnight, 800 merchants roped in for IDFC Aadhaar Pay: Bank aspires to have 30,000

points by October 2018, says MD Rajiv Lall" – Within just a fortnight of rolling out the country's firstAadhaar-linked solution for cashless payments to merchants, IDFC Bank has roped in 800 merchants in 16States to adopt the unique payments facility. A report. – (HBL Jan 12, 2017 p 5)

INDIAN OVERSEAS BANK / SYNDICATE BANK

– LOAN PRICING

"IOB, Syndicate Bank cut MCLR" – Indian Overseas Bank has reduced its MCLR (marginal cost of fund-based lending rate) by 85 basis points over the October 2016 levels across all the tenors. The new MCLR willbe 8.65 per cent for one year. Syndicate Bank has also announced a reduction in its MCLR) by 70-100 basispoints across various tenors. The changes come into effect from January 10. – (HBL Jan 7, 2017 p 5)

INDUSIND BANK"Delinquencies & slippages actually improved over the quarter" – Edited excerpts from an interview

with Romesh Sobti, MD & CEO, IndusInd Bank. – (FE Jan 11, 2017 p 10)

"IndusInd Bank net up 29% on higher interest income: Bank well placed as 70% of loan book is atfixed rates in a falling rate regime, says MD" – IndusInd Bank's net profit grew 29 per cent to Rs.751crore in the third quarter ended December 31, on the back of higher net interest income and other income.This was despite the banking sector being pre-occupied with demonetisation woes. A report. – (HBL Jan 11,2017 p 10)

"IndusInd Bank: Unaudited financial results for the quarter/nine months ended December 31, 2016"– An advertisement feature. – (BS Jan 11, 2017 p 5)

"Jan has seen good pick-up in loan growth: IndusInd Bank" – Edited excerpts from an interview withRomesh Sobti, MD & CEO, IndusInd Bank. – (Mint Jan 12, 2017 p 16)

Merwin, Radhika – "The good show continues" – An article. – (HBL Jan 11, 2017 p 10)

Nayak, Mahesh – "The innovator" – In the past eight years, Romesh Sobti used innovation to transformIndusInd Bank into a strong universal bank. An article. – (BusT 25(26) Dec 19, 2017 pp 66-68)

KARNATAKA BANK"Karnataka Bank revamps mobile app" – Karnataka Bank has launched a new version of its mobile app

'KBL Mobile'. It is a complete makeover compared to the earlier platforms and has many new features andenhancements. 'KBL Mobile' app is available in Android, Windows and iOS platforms and customers candownload it free of cost. – (HBL Jan 7, 2017 p 5)

KOTAK MAHINDRA BANK"KMB says demand for cheque books jumps five times" – Kotak Mahindra Bank has seen a five-times

surge in the demand for cheque books post-demonetisation. – (FE Jan 6, 2017 p 10)

– LOAN PRICING

"Kotak Mahindra Bank reduces base rate" – After reducing its marginal cost of funds-based lending rate,Kotak Mahindra Bank announced a 0.10% cut for loans under the older base rate system. KMB has revisedits base rate downward by 0.10% to 9.30% per annum. The bank had announced a cut of up to 0.45% in itsMCLRs across tenures earlier this week. – (FE Jan 7, 2017 p 10)

– 6 –

LAKSHMI VILAS BANK"Lakshmi Vilas Bank raises Rs.168 crore through QIP" – Lakshmi Vilas Bank has raised Rs.168 crore

via Qualified Institutional Placement. Equity shares were priced at Rs.140 (including premium of Rs.130 perequity share). The issue opened on December 28, 2016 and was closed on December 31, 2016. – (FE Jan 6,2017 p 10)

"Lakshmi Vilas Bank to lend more to retail, SME, farm sectors" – Lakshmi Vilas Bank (LVB) willrevamp its loan policy to increase the share of its core business segments to three-fourth of the loan book by2019. Its key segments - retail, SME and agriculture - had a combined share of about 55 per cent in its loanbook of Rs.20,069 crore (as of September 30, 2016), while corporate segment accounted for the rest. WhileLakshmi Vilas Bank will continue to offer corporate loans, it will focus mostly on those with ratings of A+ andabove. A report. – (HBL Jan 12, 2017 p 5)

"RBI imposes Rs.3 crore penalty on LVB" – The Reserve Bank said it has imposed a penalty of Rs.3 croreon Lakshmi Vilas Bank for contravention of instructions on opening and operation of current accounts,among others. – (HBL Jan 7, 2017 p 5)

SOUTH INDIAN BANK"South Indian Bank posts 9.5% growth in Q3 net: Focus on retail lending, CASA contributed to

good numbers" – South Indian Bank registered a 9.59 per cent growth in its net profit at Rs.111.38 crore inthe third quarter ended December 31. The realignment of business strategies with emphasis on retail lendingand CASA contributed to the good performance in a challenging environment, according to V G Mathew,Managing Director and CEO of the bank. Total advances increased by Rs.4,633 crore to Rs.45,234 crore, acredit growth of 11.41 per cent. Total business increased by Rs.14,786 crore to Rs.1,08,829 crore, a growthof 15.72 per cent. Deposits grew 19 per cent to Rs.63,595 crore. CASA expanded 34 per cent to Rs.16,486crore. CASA now stands at around 25.92 per cent of total deposits. A report. – (HBL Jan 12, 2017 p 5)

STATE BANK OF INDIA"SBI ringing in new business plan: Aiming at 15-17% growth, the bank is targeting an ROA of 2% &

ROE of 20% over the next few years" – State Bank of India is working on a '2 by 20' plan to growbusiness under its own steam. Over the next few years, bank will seek to attain return on assets (ROA) of 2per cent and return on equity (ROE) of 20 per cent in a bid to become independent for capital, generatingenough surplus to be able to clock an annual growth of 15-17 per cent, according to a senior official. SBI willbank on plough-back of profits and make continuous efforts at optimising capital, including through sale ofnon-core assets and strategic investments. A report. – (HBL Jan 12, 2017 p 1)

"SBI waives MDR charges for small merchants for 1 yr" – State Bank of India has waived MerchantDiscount Rate (MDR) on debit card transactions for all small merchants with annual turnover of up to Rs.20lakh for one year. – (FE Jan 10, 2017 p 11)

– HDFC BANK

"SBI, HDFC Bank spar over M-wallet fee: The banks are yet to agree on how much State Bank willhave to pay HDFC for a transaction" – If you have a savings account with HDFC Bank and you want totransfer funds from that account to State Bank of India's mobile wallet, you won't be able to do so as of now.This is because SBI and HDFC Bank are yet to reach an agreement on how much the former will pay thelatter for such a transfer. – (H Jan 7, 2017 p 15)

– HOUSING FINANCE

"SBI says home-loan queries jump 3-times since rate cut" – State Bank of India (SBI) is leaving nostones unturned to kick-start the credit offtake, and last week's steep 0.90 bps lending rate cut has resultedin a huge number of enquiries, especially for home loans. A report. – (FE Jan 8, 2017 p 3)

– 7 –

UCO BANK"UCO Bank rolls out prepaid card" – UCO Bank has launched its 'UCO Suvidha (e) Prepaid Card'. The

card was launched earlier this month by R K Takkar, MD & CEO, UCO Bank, and Executive Directors,Charan Singh and G Subramania Iyer. According to a release by the bank, the prepaid card is 'a hassle-free'alternative to cash, which can be used for cash withdrawals, purchase at Points of Sale (POS) or, over theInternet. The bank's own customers as well as walk-in customers can avail of the card from all branches ofthe bank. The prepaid card offers the flexibility to load/ reload amount as and when required and is targetedat corporates, government departments, institutions and other organisations. – (HBL Jan 7, 2017 p 5)

– LOAN PRICING

"UCO Bank cuts lending rate by up to 0.8%" – UCO Bank slashed its benchmark lending rate by up to 0.8per cent in line with market competition. The bank has reduced marginal cost of funds based lending rate(MCLR) by 0.7 per cent to 8.60 per cent for 1 year tenure. – (FE Jan 11, 2017 p 10)

YES BANK"Yes Bank expected to beat loan growth of rivals" – Earnings Preview: Limited impact of demonetisation,

likely stable asset quality give hope; impact from slowdown in MSMEs, lower retail fee income key risks. Areport. – (ET Jan 12, 2017 p 12)

Merwin, Radhika – "YES Bank: Beating the odds: Despite challenges in the sector, the bank continuesto deliver on growth" – Did you know?: The bank CASA currently constitutes 30 per cent of total deposits,a sharp jump from 10 per cent levels five years back. Why: * Healthy uptick in loans; * Strong internalaccruals; * Low delinquency. An article. – (HBL Jan 9, 2017 p 4)

ACCOUNTING STANDARDSLavi, Mohan R – "Change they must: Why banks must run IndAS on time" – An article. – (HBL Jan 11,

2017 p 9)

BANK CAPITAL

– PUBLIC SECTOR BANKS

"Govt may decide on next tranche of bank recapitalisation in 2-3 weeks" – The government will take adecision on the next tranche of capital infusion in State-owned banks in two or three weeks, according to asenior Finance Ministry official. A report. – (HBL Jan 6, 2017 p 10)

BANK LENDING

– INTEREST RATES

Merwin, Radhika – "Good tidings for new borrowers" – 2016 was marked by a sharp fall in interest rates,particularly on deposits and small savings schemes. Borrowers, however, had little to cheer, with lendingrates moving down by a meagre 25-30 basis points. But thanks to SBI sharp cut in its lending rate last week,good times are set to roll for borrowers, as other banks follow suit. An article. – (HBL Jan 6, 2017 p 9)

BANK SUPERVISION"Bank supervision: Small overdraft in Chile" – Revisions to the Basel 3 standards remain incomplete. An

article. – (Eco 421(9018) Dec 3, 2016 p 62)

– 8 –

BANKING REGULATOR

– DEMONETISATION

"Explain demonetisation, your role, flip-flops, secrecy: Parliament panel to RBI Governor" – ThePublic Accounts Committee (PAC) headed by senior Congress leader K V Thomas, which has asked ReserveBank of India (RBI) Governor Urjit Patel to appear before it on January 28, has asked him 10 probingquestions on the demonetisation issue - from the decision-making process to the level of RBI's involvement,impact on the economy, and 'flip-flops' in RBI regulations over the last two months. A report. – (IE Jan 8,2017 pp 1, 2)

– RESERVE BANK OF INDIA

"RBI to give Nepal Rs.1 bn in Rs.100 notes" – The RBI has agreed to provide Rs.1 billion in Rs.100denomination notes to Nepal Rastra Bank (NRB) to ease the acute shortage of Rs.100 notes faced by theHimalayan nation, according to a media report. – (FE Jan 7, 2017 p 10)

– RESERVE BANK OF INDIA - AUTONOMY

"An autonomy policy" – Demonetisation process raises troubling questions over the way government hastreated RBI. Central bank needs to assert. An editorial. – (IE Jan 11, 2017 p 10)

"For a central bank, reputational risk is the worst risk: Y V Reddy" – Edited excerpts from an interviewwith Y V Reddy, former Governor, Reserve Bank of India. – (Mint Jan 10, 2017 p 12)

"Former guv Reddy says RBI facing 'reputational' risk" – Former governor Y V Reddy said that theReserve Bank of India (RBI) is facing 'reputational' risk and its identity as an institution has been damaged.He also said that the problem of black money cannot be eliminated only by destroying cash throughdemonetisation. – (FE Jan 10, 2017 p 10)

"RBI's autonomy is fundamental and must be maintained: Bimal Jalan" – A day after former RBIGovernor Y V Reddy flagged 'reputational risk' being faced by the central bank, another former Governor,Bimal Jalan, said its autonomy is fundamental and needs to be maintained. A report. – (HBL Jan 11, 2017 p 10)

"We have to maintain the autonomy of RBI: Jalan" – Edited excerpts from an interview with Bimal Jalan,former Governor, Reserve Bank of India. – (Mint Jan 11, 2017 p 18)

Chidambaram, P – "Whither RBI's autonomy?" – The RBI has come under severe criticism both withinIndia and abroad. I would like to believe that the RBI has not fallen victim to 'institutional capture' by thecurrent regime. I would like to believe that years of nurturing the autonomy of the RBI have not gone towaste. An article. – (FE Jan 8, 2017 p 2)

Gopinath, Gita – "The RBI's bounty and its independence" – The rush to transfer the bonus from reducedRBI liabilities to the government does not come for free. It is imperative that the RBI wades into this muchtouted bonus-transfer scheme with care. An article. – (Mint Jan 9, 2017 p 14)

BANKRUPTCY CODEMehta, Sangita – "Bankruptcy code: It's too early to party" – Lenders are discovering hurdles that can

come up in their way as they go ahead and invoke the Insolvency and Bankruptcy Code which is widelyperceived as a tool to end banks' bad loan woes. An article. – (ET Jan 11, 2017 p 16)

BANKS BOARD BUREAU"Bank employees' pay to be far more attractive from April 1: Vinod Rai: Banks Board Bureau to bat

for longer minimum tenure for top appointments" – Call this a New Year gift from the Banks BoardBureau (BBB) to public sector bank (PSB) employees. As part of the efforts to attract more professionalsinto the PSB space, the BBB will revamp the compensation package of employees and introduce bonuses,employee stock options (ESOPs) and performance-linked incentives from April 1 this year, according toVinod Rai, Chairman. The BBB is also toying with the idea of ensuring a longer tenure for those appointed asexecutive directors and chief executive officers. A report. – (HBL Jan 6, 2017 p 10)

– 9 –

BLOCKCHAIN TECHNOLOGY

– DIGITAL PAYMENTS

Kurmanath, K V – "RBI arm to test blockchain tech for digital transactions" – Will roll out apps forbanking sector using the new tamper-proof tech. An article. – (HBL Jan 6, 2017 p 10)

BRAND IMAGE"BFSI firms eye sporting events for brand building: Some banks have set up specialised sports

verticals to aid sponsorship" – Banking and insurance firms are shifting their focus to sports sponsorshipfrom traditional events, such as festivals, to build their brand appeal among next generation consumers. Whilebanks have always endorsed individual sports personalities, now companies in the banking, financial servicesand insurance (BFSI) sector are looking to leverage on the popularity of sporting events, such as badminton,football, wrestling and even cricket for the blind to build a connect with consumers. A report. – (HBL Jan 7,2017 p 5)

COOPERATIVE BANKS

– DEPOSITS

"Cooperative bank deposits rose 6-fold in 4 days after note ban" – Cash deposits in 285 district cooperativebanks (DCBs) across India surged six fold in the first four working days after the recall of high-valuecurrency on November 8, as compared to reserves a day before the announcement, HT has found. A report.– (HT Jan 6, 2017 p 1)

– KALUPUR COMMERCIAL COOPERATIVE BANK – (GUJARAT)

Patel, Navnitbhai – "Kalupur Bank bets big on next gen banking" – The Kalupur Commercial Co-operative Bank is a top multi scheduled urban bank of the country and occupies the numero uno position inGujarat through its 52 modern branches. An article. – (BS Jan 10, 2017 Supl. p 2)

CORPORATE DEBT RESTRUCTURING"Total CDR cell failures hit Rs.1.2 lakh crore" – The aggregate value of recast loans that have failed since

the corporate debt restructuring cell (CDR) was set up in 2001 has hit Rs.1.2 lakh crore following the failureof three loan restructurings worth Rs.4,100 crore in November. This is more than a fourth of the value ofloans that have been recast by the cell. Over the past year alone, approximately Rs.32,000 crore worth ofdebt recast via the cell has turned into non-performing assets (NPAs). A report. – (FE Jan 12, 2017 pp 1, 2)

CORPORATE FINANCE"In November, banks' exposure in all major industries shrank" – In November, banks shrank their credit

base to various industries, data from the Reserve Bank of India showed. The infrastructure sector saw a dipof 6.7 per cent in the year to November 25. Part of the reason could be that banks have become risk-aversein lending and, at the same time, companies are not borrowing owing to the huge unutilised capacity. Anancillary reason for other industries could be that after the demonetisation exercise, companies paid banks in cashthrough their stock of old notes, thereby reducing dues, say economists. A report. – (BS Jan 12, 2017 p 13)

CURRENCY NOTES

– DEMONETISATION

"Dealing with demonetisation" – Now that 50 days are over since demonetisation, it's time to take a closelook at how it has impacted different aspects of the Indian economy. The Purchasing Managers' Indices formanufacturing and services, to that effect, are key indicators to gauge the performance of the economy.Unfortunately, both the PMls contracted-the services PMl for December 2016 was at 46.8 while manufacturingPMl was at 49.6 for December 2016-and were lowest for the year. But, new investment proposals at

– 10 –

Rs.1.25 lakh crore in December 2016 were marginally better than Rs.1.18 lakh crore last year. However,sales of both two-wheelers and cars by the top three companies are down. Despite these issues, there aresome gains for the common man who has stood in lines to get cash. As more money has flowed into banks,the big banks have cut lending rates with State Bank of India lowering it by 90 basis points to 8%. All eyeswill now be on the Budget, which will be presented in less than a month's time. Whether the sops, if anyannounced, are enough to kickstart growth and alleviate this pain is something that remains to be seen. Agraphical report. – (FE Jan 7, 2017 p 9)

"House panel grills RBI top brass" – The Parliamentary Committee on Subordinate Legislation grilled topofficials of the Reserve Bank of India, including Governor Urjit Patel, and top banks about the demonetisationof Rs.500 and Rs.1000 notes, especially the problems faced by people and its implementation. Apart fromPatel, RBI Deputy Governors, N S Vishwanathan and R Gandhi and top bankers including SBI chairmanArundhati Bhattacharya and ICICI Bank MD & CEO Chanda Kochhar were present in the first meeting ofa parliamentary panel on the issue. 'It was confrontational but still it was constructive,' according to a sourcewho attended the meeting. A report. – (IE Jan 7, 2017 p 11)

"How much effect will the note ban have on growth?" – Edited excerpts of a conversation with DeepaliBhargava, Asia Economist, Credit Suisse; M Govinda Rao, Emeritus Professor, National Institute of PublicFinance and Policy; and Arvind Virmani, former Chief Economic Advisor. – (Mint Jan 9, 2017 p 16)

"Not RBI's job to oppose government: Policy is government's domain, execution RBI's" – An editorial.– (ET Jan 11, 2017 p 14)

"Notes scrapped on govt prod, Reserve Bank tells house panel" – The Reserve Bank of India (RBI)has told a parliamentary panel that it recommended the scrapping of Rs.500 and Rs.1,000 notes on November8 after a prod from the Centre a day before. The response is part of a 7-page note the central bank has sentto Parliament's standing committee on finance. A report. – (TI Jan 12, 2017 pp 1, 9)

"People might prefer to keep more cash due to trust deficit" – Edited excerpts from an interview with KC Chakrabarty, former Deputy Governor, Reserve Bank of India. It is 60 days and counting since thedemonetisation of Rs.500 and Rs.1,000 notes was announced by Prime Minister Narendra Modi on November8. During this period, the Reserve Bank of India's (RBI) role and certain flip-flops have been questioned. Hesaid that the focus of the apex bank should have been on keeping more Rs.500 notes in circulation asRs.2,000 were rendered completely useless for millions of transactions that take place every day. – (BS Jan12, 2017 p 4)

"Prez: Note ban will lead to temporary slowdown" – President Pranab Mukherjee issued a note of cautionthat the Narendra Modi government's demonetisation decision could likely lead to a temporary slowdown inthe economy and hurt the poor. The President called for policymaking that would reduce the suffering of thepoor. A report. – (BS Jan 6, 2017 pp 1, 14)

"RBI reworking demonetisation numbers" – The Reserve Bank of India clarified it is still counting howmany old notes have been returned to the banking system, to eliminate double counting. Therefore, it said thenumbers being quoted should not be construed as verified. A report. – (BS Jan 6, 2017 pp 1, 14)

"RBI stance on introduction of new series of notes: A very rare opportunity to tackle fake notes,terrorist financing and black money" – In a 7-page note submitted on December 22 to the DepartmentRelated Committee of Finance, the RBI said its Central Board that met on November 8 noted that theproposal to withdraw the legal tender status of high-denomination bank notes could not have come at 'a moreopportune time'. Edited excerpts – (IE Jan 10, 2017 p 13)

"Rs.25,000 crore revenue loss due to demonetisation likely" – The near-term decline in economicactivity post demonetisation poses some tax revenue challenges for the government in FY17, says Citi Researchin a report. – (IE Jan 10, 2017 p 11)

Balakrishnan, Pulapre – "When banks are awash with cash" – In an environment characterised by slowinggrowth, poor investor sentiment and NPA-strapped banks, the government has its task cut out. When privateinvestment is skittish, public investment must step in. Unless firms are so impressed with the potential of thedemonetisation, they are unlikely to unburden the banks of the deposits that have so copiously flowed intothem since. An article. – (H Jan 7, 2017 p 10)

– 11 –

Bandyopadhyay, Tamal – "50 days in the life of a bank's branch manager" – An article. – (Mint Jan 9,2017 p 9)

Basu, Debashis – "Seven note ban tricks and one lesson" – An article. – (BS Jan 9, 2017 p 11)

Goswami, Omkar – "The economics of demonetisation" – Instead of instant damnation or heavenly praise,analyse the data and see how this gamble is playing out. The game has just begun. An article. – (BS Jan 10,2017 p 10)

Sabnavis, Madan – "The social cost of demonetisation" – To check a new black economy, we mustspruce up our systems and reduce human interface with regulation. An article. – (FE Jan 9, 2017 p 6)

CYBER CRIME"Banks and cybercrime: Online checkout" – Theft strikes a British lender. An article. – (Eco 421(9015)

Nov 12, 2016 p 64)

DEPOSITS"I-T asks banks to report Apr 1-Nov 9 cash deposits" – Seeking to analyse the banking transactions in

months before the demonetisation, the Income Tax Department has asked banks to report cash deposits insavings accounts between April 1 to November 9, 2016. A report. – (FE Jan 9, 2017 p 2)

DIGITAL PAYMENTS"Rs.25,000-cr cash deals move to digital mode post note ban" – Post demonetisation, cash-based

transactions worth Rs.25,000 crore have moved to the digital mode, says a survey. The Economic ResearchDepartment of State Bank of India carried out the survey from December 30, 2016 to January 3, 2017 so asto understand the nuances of demonetisation. It showed that 15 per cent of transactions moved to electronicpayments such as m-wallets and Point of Sale machines. 'This means that Rs.25,000 crore of cash basedtransactions have moved to digital in the last two months. If this is so, this is a good beginning,' SBI Researchsaid in its Ecowrap report. – (FE Jan 11, 2017 p 10)

DIGITAL TECHNOLOGYMahapatra, Mrutyunjay – "Are Indian banks digital ready? Here's a step test" – An article. – (ET Jan

11, 2017 p 16)

FINANCIAL RESULTS"Banks may report tough Q3 on low loan growth: Earnings Preview: Demonetisation could have had

a positive impact too, with recovery of overdue loans" – Banks are expected to show strain onprofitability from a slump in loans business and deluge of deposits in the December quarter, a period whenthey were overwhelmed by the task of managing demonetisation. These will add to the twin problems of badloans and loss provisions that have been squeezing their margins for some time now, according to the analysts.A report. – (ET Jan 9, 2017 p 10)

– PRIVATE SECTOR BANKS

Nayak, Gayatri – "Private banks record better returns" – Banking sector asset growth has slowed downin the past few years as bankers have turned cautious on asset quality concerns. But among various bankgroups, private sector banks have managed to earn better returns on assets and equity compared to theirpublic sector peers. An analysis of various parameters indicates that private sector banks have been moresuccessful in raising low-cost funds that is demand deposits in their current and savings accounts, or CASA.Private Banks CASA has gone up by close to 20% in the last two years, while that of public sector banksrose by less than 10%. Besides, they have been more successful in deploying the funds in more profitablelending activities. While the credit-deposit ratio of public sector banks was around 75% in the last two year,for private sector peers it was close to 85%. As a result, while public sector banks posted a negative returnon assets and equity, the same for private banks was in double digits. A graphical report. – (ET Jan 11, 2017p 16)

– 12 –

FINANCIAL SERVICES SECTORSrinivasan, Ajay – "Adjusting to a new normal: For those who can move fast to emerge with a customer-

centric engagement strategy, the potential to develop a winning model is enormous" – The year,2016, has been full of rapid and unexpected changes. The financial services sector witnessed its fair share.An article. – (FE Jan 6, 2017 p 9)

FINANCIAL STABILITY"Revival of demand is key" – Besides demand, RBI report flags weak provisioning even as it deems satisfactory

the capital position of the banking system. A report. – (FE Jan 7, 2017 p 15)

FINANCIAL TECHNOLOGY

– DIGITAL PAYMENTS

"ATM, credit cards will become irrelevant by 2020, says Kant: Every Indian will be able to transactjust by using thumb and mobile phone" – With the adoption of technology and the kind of disruptionhappening in the digital payments space, ATM cards and POS would become redundant by 2020, accordingto Amitabh Kant, CEO, NITI Ayog. A report. – (H Jan 8, 2017 p 15)

FINANCIAL TECHNOLOGY FIRMSSingh, Manavjeet – "Fintech start-ups can lead the way to India's financial inclusion" – With the maturity

of the ecosystem, fintech start-ups will lead the way to India's financial inclusion. With almost a billion mobilesubscriptions and a billion Aadhaar IDs created, financial services through mobiles are being foreseen todominate all other channels. The success factors for fintech players in India will be the usability, affordability,reliability, and ubiquity of their services. An article. – (FE Jan 9, 2017 p 9)

– DEMONETISATION

"Demonetisation, a creative disruption: Subbarao: Former Governor of RBI asks banks to wake upto the challenges posed by fintech firms" – Duvvuri Subbarao, former governor of the Reserve Bank ofIndia, has described demonetisation as creative disruption that attempted to destroy black money, which is adestructive creation. A report. – (HBL Jan 6, 2017 p 10)

FOREIGN BANKS OPERATING IN INDIA

– CITI BANK

"Citi India cuts lending rate by 0.7% to 8.8%" – Joining the lending rate cut spree, Citi India reduced itshome loan rate by 0.7, it will reduce the interest rate to 8.80% from 9.50%, effective January 9. – (FE Jan 7,2017 p 10)

"Citi India launches voice biometrics authentication" – Citi India launched voice biometrics authenticationthat would replace the current practice of interactive voice response (IVR) for its customers. The newtechnology allows clients to use their voiceprints for authentication rather than having to remember multiplePINs or respond to questions used for verifying their identities. – (FE Jan 11, 2017 p 10)

INDUSTRIAL RELATIONS

– PUBLIC SECTOR BANKS

"Employee unions contest proposal for performance-linked pay" – Bank employee unions have expressedtheir stiff opposition to any move to introduce performance linked incentive for public sector banks as proposedby Banks Board Bureau (BBB) chief Vinod Rai. – (HBL Jan 11, 2017 p 10)

– 13 –

INTEREST RATES

– LOAN PRICING

"Up to sixfold savings from base rate switch" – The savings from a switchover to the marginal cost offunds-based lending rate (MCLR) are now so large - almost sixfold, in some cases - after this month's ratecuts that more customers might migrate to it. For a Rs.50-lakh loan from State Bank of India (SBI) with atenure of 20 years, the savings now are nearly Rs.6 lakh. A report. – (FE Jan 7, 2017 pp 1, 2)

INTERNATIONAL FINANCIAL CENTRE

– GIFT CITY

"Urjit Patel bats for unified IFSC regulator" – Reserve Bank of India (RBI) governor Urjit Patel said thata unified financial regulatory framework providing for a single regulator could contribute to better supervisionof financial entities in Gujarat International Finance Tec-City (GIFT City). – (Mint Jan 12, 2017 p 7)

MALPRACTICES

– DEMONETISATION

"Banks train their guns on employees after note ban" – Lenders rope in forensic experts, background-screening firms, other verification procedures to prevent wrongdoing by staff in the exchange procedure. Areport. – (ET Jan 10, 2017 p 1)

MICROFINANCE SECTOR"Microfinance entities hit by demonetisation" – Microfinance institutions which use cash in their lending

and recovery operations are finding it difficult as borrowers are not in a position to service loans which led todelay and drop in collection rates due to cash crunch post demonetisation, according to a Care Rating study.– (IE Jan 7, 2017 p 11)

MOBILE BANKING"It's a gold rush for mobile banking" – Mobile banking has turned out to be the real winner so far among all

digital payment options as Prime Minister Narendra Modi demonetised old Rs.500 and Rs.1,000 currencynotes, according to RBI's data. Banks have recorded 9.4% month-on-month rise in the number of mobilebanking transactions with the value growing 20.9% in November. A report. – (ET Jan 12, 2017 p 17)

MONETARY POLICY"RBI to go for 25-bps rate cut in 2017, Citigroup" – The Reserve Bank of India is expected to go for only

a 25 bps rate cut this year and the likelihood of an easing in April is more than in February, according to aCitigroup report. – (FE Jan 11, 2017 p 10)

– DEMONETISATION

Sheel, Alok – "Demonetization and monetary policy" – India's currency swap is yet another example ofhow the powerful monetary policy tool is a victim of its own success. An article. – (Mint Jan 12, 2017 p 15)

NPCI"Our focus is to take people from ATMs to PoS channels" – Edited excerpts from an interview with A P

Hota, Chairman, National Payments Corporation of India. – (Mint Jan 7, 2017 p 19)

– 14 –

PAYMENTS BANKS

– FINO PAYTECH

"FINO Paytech raises Rs.400 cr for payments bank: Reduces foreign shareholding to less than50%" – Payments technology firm FINO Paytech has raised about Rs.400 crore for its soon-to-be-launchedpayments bank. The Mumbai-based company said in a statement that it has complied with the RBI's guidelineson having majority domestic shareholding. A report. – (HBL Jan 12, 2017 p 6)

– PAYTM

"Paytm hustles to be on the driver seat post demonetisation" – Recruitment, security, digital divide, rivalspose challenges. A report. – (HBL Jan 11, 2017 p 6)

POINT OF SALE TERMINALS

– CREDIT / DEBIT CARDS

"POS deals post massive jump" – With cash in short supply following the withdrawal of high-value currencynotes on November 8, card transactions are seeing a steady increase. Transactions via credit and debit cardsat point-of-sale (PoS) terminals rose to Rs.40,160. 43 crore in December from Rs.35,240 crore in November- for four banks - data from the Reserve Bank of India (RBI) shows. The value of transactions in October -for all banks - was Rs.51,121 crore. State Bank of India (SBI) plans to install 2.5 lakh PoS terminals byMarch; the lender already has rolled out 3.85 lakh machines. A report. – (FE Jan 6, 2017 pp 1, 2)

RETAIL LENDING"Retail loans may slip to single digits in Q3 FY17: Tough Times: Banks were busy containing fallout

of demonetisation in Nov and Dec" – Retail loans, that saved the day for several banks in the absence ofgrowth in corporate credit, may also have been subdued in the third quarter of the current financial year asbanks had to focus all their energy to contain the fallout of demonetisation for most part of November andDecember last year. Banks and analysts that ET spoke with said that retail loans, which were growingupwards of 15-20%, may have fallen to single digits. A report. – (ET Jan 7, 2017 p 6)

– DEMONETISATION

"Two-wheeler, durables loans most hit by demonetisation" – Consumer loan demand for two-wheelersand consumer durables dropped 43% and 60%, respectively, below the expected levels during Novemberand December, credit information company TransUnion Cibil said in a note. While the number of applicationsfor two-wheeler loans stood at 8 lakh, 12 lakh applications were made for consumer durables during the two-month period. The drop came in the wake of the government decision to demonetise Rs.500 and Rs.1,000currency notes, announced on November 8. A report. – (FE Jan 12, 2017 p 10)

TRANSFERS

– CUSTOMER SERVICE

Rao, Raj Kamal – "Stop transferring bank employees" – The practice is an anachronism. It has no spacein modern banking where customer relations hold the key to growth. An article. – (HBL Jan 12, 2017 p 8)

RBI CIRCULARS"Auction of Government of India Dated Securities" – (RBI Circular RBI/2016-2017/210 Ref. No. IDMD/

1731/08.02.032/2016-17 dated 09.01.2017)

"Evidence of Import under Import Data Processing and Monitoring System (IDPMS)" – (RBI CircularRBI/2016-2017/212 A.P. (DIR Series) Circular No. 27 dated 12.01.2017)

"Exim Bank's GoI supported Line of Credit of USD 0.17 million to the Government of the Republicof Burundi" – (RBI Circular RBI/2016-2017/211 A.P. (DIR Series) Circular No. 26 dated 12.01.2017)

– 15 –

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTUREGulati, Ashok – "A glimmer of hope in agriculture" – Policy makers must remove all restrictions on free

functioning of markets and exports for agri-produce. An article. – (FE Jan 10, 2017 p 8)

AGRICULTURE FINANCE"Bank credit to agri sector grows to 12.1% in Sept qtr" – Banks loans to agriculture sector rose marginally

to 12.1 per cent in the quarter ended September as compared to 11.9 per cent in the first quarter of thefinancial year 2016-17, according to Reserve Bank. – (FE Jan 6, 2017 p 10)

"Govt may raise farm credit target to Rs.10-12 L cr in FY18" – The government may announce increasein agri-credit target to Rs.10-12 lakh crore in the 2017-18 Budget and even reduce the interest rates consideringexcessive cash flow in banks after demonetisation, according to the consulting and accounting firm PwCIndia. – (FE Jan 6, 2017 p 10)

NABARD"Wage revision: Nabard staff plan march to Parliament" – Employees of the National Bank for Agriculture

and Rural Development (Nabard) are planning a march to Parliament and hold a spate of strikes during theBudget session of Parliament over the pending wage revision issue. The relevant file has been awaitingclearance by the Finance Ministry even after six months of signing a draft agreement on July 5, 2016, saysthe employees association – (HBL Jan 10, 2017 p 10)

INDUSTRY

FICCI"Post demonetisation, money with banks should be used for infra projects: Short-time pain will lead

to long-term gain, says FICCI President Pankaj Patel" – Excerpts from an interview with PankajPatel, President, FICCI. He said companies should be able to give political funding to parties but asking themto disclose which political party got what is not correct. – (HBL Jan 6, 2017 p 3)

FOREIGN BORROWINGS"Easing tax burden on interest payments: RBI seeks to make India Inc's foreign debt cheaper:

Central bank moots uniform rate of withholding tax for overseas borrowings" – The Reserve Bankof India has suggested a uniform rate of withholding tax for overseas borrowings, irrespective of type andcurrency. If the government agrees, this could lower the cost of overseas borrowing for Indian companies.Simplifying the levy will improve the ability of Indian companies to raise money, given that funds are expectedto flow back to the US as interest rates rise there. A report. – (ET Jan 12, 2017 p 1)

HOUSING FINANCE"Reduction in home loan rates will spur competition: ICRA" – The ongoing reduction in lending rates

could lead to increased competition and balance transfers in the highly competitive housing loan market,especially in the prime salaried segment, according to credit rating agency ICRA. – (HBL Jan 11, 2017 p 10)

MUTUAL FUNDS"MF assets see highest growth in seven years to touch Rs.17 trillion" – The country's mutual fund

(MF) assets logged the highest growth in seven years to reach a total corpus of around Rs.17 trillion in 2016,despite lacklustre equity markets and challenging economic conditions due to demonetization and a surge inglobal oil prices. In the year ended December 2016, asset management companies, or AMCs, grew theiraverage assets by around 30% by adding investments worth at least Rs.3.71 trillion to their MF portfolios -the highest ever in absolute terms and the highest since December 2009 in percentage terms. A report.– (Mint Jan 6, 2017 p 5)

– 16 –

SEBI"Sebi Chief may appoint 3 EDs soon" – The Securities and Exchange Board of India is likely to appoint two

external candidates and one internal employee as its executive directors (EDs) shortly. According to sources,Gyan Bhushan, a 1993-batch Indian Economic Service officer, R S Srivastav, an Indian Revenue Serviceofficer, and Amarjeet Singh, an executive assistant to the chairman, are seen as frontrunners to be appointedas EDs for a term of three years. Sources said that shortlisted candidates are likely to be interviewed nextweek. – (ET Jan 7, 2017 p 6)

SMALL SCALE INDUSTRY

MSMEs"Despite growth pangs, 41% MSMEs report surge in cheque, e-payments: Crisil survey: With funds

drying up, 3 out of 4 enterprises plan to approach banks for loans" – Micro, small and mediumenterprises (MSMEs), which are largely cash-dependent, have reported a substantial shift away from cashtransactions following the government's demonetisation move, with 41 per cent units saying their clients hadshifted to cheque or electronic payments, according to a recent survey by Crisil. However, the note-ban hadmuted growth and dried up funds, with three out of four MSMEs saying they plan to approach banks forloans, the survey pointed out. A report. – (HBL Jan 6, 2017 p 4)

MUDRA YOJANA"MUDRA loan disbursals take a hit due to demonetisation" – Loan disbursals by Micro Units Development

and Refinance Agency (MUDRA) slowed down in the third quarter of current financial year following thedemonetisation of high-value currencies. We have disbursed Rs.80,000 crore (from April 1 to December 31,2016). There have been some lull during the last two months because of currency exchanges and those kindof things, according to Jiji Mammen, CEO of MUDRA – (FE Jan 8, 2017 p 3)

INTERNATIONAL ECONOMICS"Growth risk" – One of the reasons for slower economic growth in India is weak investment demand. But as

the World Bank's new Global Economic Prospects report highlights, India is not an exception. Investmentshave slowed in general in emerging markets and developing countries in recent years. Slower investmentgrowth will have a bearing on future potential as developing countries have vast investment needs. A quickedit. – (Mint Jan 12, 2017 p 1)

"World Bank projects global growth at 2.7% in 2017: But warns of another difficult year ahead" – Inan encouraging sign, the World Bank projected a global growth of 2.7 per cent in 2017, even as it observedthat stagnant global trade, subdued investment and heightened policy uncertainty marked another difficultyear for the world economy. A report. – (HBL Jan 12, 2017 p 4)

CHINA"China's growth: The greatest moderation" – Has any country ever grown as repetitively as China? An

article. – (Eco 421(9013) Oct 29, 2016 p 66)

USA"The American economy: Full speed a-Fed" – The Federal Reserve spent 2016 deferring rate rises. It

might now speed them up. An article. – (Eco 421(9019) Dec 10, 2016 pp 65-66)

"US jobless claims fall to near 43-year low" – The number of Americans filing for unemployment benefitsfell to near a 43 year-low last week, pointing to further tightening in the labour market. – (IE Jan 6, 2017 p 13)

– 17 –

LABOUR & PERSONNEL MANAGEMENT

HUMAN RESOURCESBhaduri, Abhijit – "HR has an expertise problem" – An article. – (Mint Jan 10, 2017 p 11)

Sen, Sohini – "The HR trends of 2017" – A diverse workforce, new office 'spaces' and data analytics aresome of them. An article. – (Mint Jan 9, 2017 p 10)

MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITYBali, Vinita – "A different paradigm for CSR" – Companies can contribute to social progress more effectively

if they embed social issues in the business models. An article. – (HBL Jan 10, 2017 p 9)

LEADERSHIPDhir, Samir – "Leadership in a digital world" – It's imperative that leaders become the change agents for

their organisations. An article. – (BS Jan 12, 2017 p 9)

MANAGEMENT EDUCATIONBawa, R S and Khosla, Rajiv – "How to create an Indian management model" – Business schools need

to shun the age-old curricula, and rather focus on the practical aspects of teaching and learning, with agreater emphasis on India-centric studies. A lot of our management research is being tested only in labs(computers). Professors seldom visit the markets or meet people. They make alternate arrangements togather information, customise it as per the need, develop the hypothesis, and using statistical tools change itinto a model fit for publishing in top journals. It not research. An article. – (FE Jan 9, 2017 p 12)

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