Volume XXXI Number 12 December 21, 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 14

F. INTERNATIONAL ECONOMICS 15

G. LABOUR & PERSONNEL MANAGEMENT 16

H. MANAGEMENT 16

I. MISCELLANEOUS 17

– 1 –

BANKERS' BRIEF Vol. XXXI No. 12December 21, 2015

ECONOMY"Fitch retains India's rating, says growth will continue" – India will continue to post good growth despite

subdued prospect for the Asia Pacific region amid expected rise in US rates, dollar strength, and lowercommodity prices, Fitch said while retaining India's rating. – (FE Dec 15, 2015 p 2)

"I don't think the hike will have much impact" – Excerpts from an interview with Jamal Mecklai, CEO,Mecklai Financial Services. With the Fed rate hike drawing closer, the rupee has been getting quite volatile.But, he thinks that short-term risk is not too great for the rupee. In his usual tongue-in-cheek style hediscusses the way ahead for the Indian currency. – (HBL Dec 14, 2015 p 2)

"Nomura sees India GDP growth at 7.8% in 2016" – India is in the initial stages of a business cyclerecovery with Gross Domestic Growth expected at 7.8% in 2016 and 8 per cent in 2017, up from 7.3%expectation for this year, Japanese financial group Nomura forecast. Under the new GDP series, we estimateIndia's potential ground at around 8 per cent, which implies that the output gap will gradually narrow over thecourse of 2016, before closing fully by Q1 2017, according to Nomura in its Asian Economic Outlook presentedto media in Singapore. – (FE Dec 12, 2015 p 2)

"Weak fiscal settings weigh on India ratings: However, the growth story remains promising, saysStandard & Poor Director Kyran Curry" – An interview with Kyran Curry, Director, Standard & Poor's.– (HBL Dec 11, 2015 p 6)

CURRENCY MARKETDugal, Ira – "Is the Reserve Bank of India bracing for currency volatility?" – To make the point that the

RBI is watching and won't hesitate to step in if it feels that there is a speculative attack on the currency in thecoming weeks. An article. – (Mint Dec 11, 2015 p 21)

FOREIGN DIRECT INVESTMENT

– MANUFACTURING

Dhoot, Vikas – "Latest FDI reforms could hit Make in India: The FDI policy announced by thegovernment ahead of PM visit to U.K. entailed liberalising norms for 15 sectors" – The latestchanges to the country foreign direct investment or FDI policy could end up hurting the government's ambitionto make India a global manufacturing hub, as they have introduced an element of uncertainty over manufacturinginvestments where none existed before. The new FDI policy announced by the government ahead of PrimeMinister Narendra Modi's visit to the United Kingdom and the G20 summit in Turkey last month, entailedliberalising norms for 15 sectors, including defence, construction, civil aviation, FM radio, single brand retail,private banks and manufacturing. An article. – (H Dec 13, 2015 p 15)

– SERVICES SECTOR

"FDI in services rises 20%" – With the government taking steps to improve ease of doing business andattract investments, FDI inflows into the services sector grew by about 20 per cent to $1.46 billion (Rs.9,404crore) in the first six months of the current fiscal. The services sector, which includes banking, insurance,outsourcing, R&D, courier and technology testing, had received foreign direct investment (FDI) worth $1.22billion (Rs.7,366 crore) in the same period last fiscal, according to the Department of Industrial Policy andPromotion (DIPP) data. – (FE Dec 14, 2015 p 3)

FOREIGN ECONOMIC RELATIONS

– JAPAN

"India-Japan" – A special report on PM Shinjo Abe's visit to India. – (ET Dec 11, 2015 pp 15-19)

– 2 –

FOREIGN EXCHANGE RESERVES"Forex reserves rise $483.20 m to $352.09 bn" – Foreign exchange reserves as on December 4 rose by

$483.20 million from a week ago to $352.09 billion, according to data from the Reserve Bank of India.Foreign currency assets (FCAs), which form a key component of the reserves, rose by $1.58 billion from theprevious week to $329.24 billion. Gold reserves, however, have fallen by $1.14 billion from a week ago to$17.54 billion. The country reserve position in the IMF stood at $1.29 billion, up $12.3 million from theprevious week. – (FE Dec 12, 2015 p 8)

FOREIGN TRADE"Exports fall 24% in November: Sharp dip in imports narrows trade deficit" – Exports fell 24.43 per

cent in November from the same month a year ago, capping off a year in the red. Total exports stood at$20.01 billion against $26.48 billion in November 2014, according to data released by the Ministry of Commerce& Industry. Imports stood at $29.79 billion in November 2015 ($42.72 billion). Of this, crude oil imports wereat $6.43 billion, a year-on-year decline of 45 per cent. A report. – (HBL Dec 16, 2015 p 1)

GST"GST rollout will unify the country: Rajan" – The goods and service tax (GST) is 'absolutely a good thing'

for the country, according to RBI Governor Raghuram Rajan. According to him, imposition of GST wouldlead to an increase in the tax net. Interestingly, he pointed out that this would not necessarily mean higher taxrates. More people coming under the tax ambit would mean more revenues and people sharing the revenueburden; which, he maintained, was a good thing for the country. If you ask for my opinion, GST is absolutelya good thing for the country. There are two big effects.... increase in tax net; while not increasing the taxrate. The other would be reducing barriers between States. A report. – (HBL Dec 11, 2015 p 5)

Mahure, Pritam – "What is the 'draft GST law' all about?: A sneak preview into the new tax regimefor businesses as well as consumers" – GST would be payable on the 'transaction value' - the priceactually paid or payable. It is also said to include all expenses in relation to sale, such as packing and commission.An article. – (HBL Dec 12, 2015 p 6)

– MANUFACTURING

Jain, Sunil – "GST critical for Make-in-India" – And the more the duty exemptions, the worse it gets forthose producing here - that's the real lesson. An article. – (FE Dec 11, 2015 p 6)

INFLATION"Food push: retail inflation rises to 5.41% in November" – Led by a spike in food prices, especially

pulses, consumer price index (CPI)-based inflation for November rose to 5.41 per cent, from 5 per cent inOctober. Consumer food price inflation, which has a weightage of about 47 per cent in the retail inflationindex, spiked to 6.07 per cent in November from a level of 1.13 per cent in November 2014. It was at 5.25per cent in October. The Reserve Bank of India, which is now only guided by the CPI in its monetary policydecisions, should take notice of this food inflation reading before resorting to further policy rate cuts nextyear, said economists. A report. – (HBL Dec 15, 2015 p 1)

NITI AAYOG"NITI Aayog to unveil policy on critical sectors soon: Readies White Paper on agriculture,

infrastructure, energy, manufacturing and social development" – Taking forward its project of creatinga national agenda in consultation with the states, the NITI Aayog will soon come out with policy papers oncritical sectors such as agriculture, infrastructure, energy, manufacturing and social development. A report.– (BS Dec 14, 2015 p 17)

POVERTYRangarajan, C and Dev S Mahendra – "How deep is India's poverty?" – India's poor are closely bunched

up near the poverty line. This could make poverty alleviation more manageable. An article. – (IE Dec 15,2015 p 11)

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BANKING

GENERAL"'When Issued' market: banks allowed to take short positions" – The RBI has decided to permit scheduled

commercial banks to take short positions in the 'When Issued' (WI) market for both new and reissuedsecurities. – (HBL Dec 11, 2015 p 10)

"The future of banking" – A special report. – (FT Dec 14, 2015 Supl. pp 1-4)

"Indian banks to be more resilient despite bad debt" – Growth in the Indian banking system, which hasbeen under pressure in recent years, according to Moody's Investors Service. – (FE Dec 15, 2015 p 8)

"LCR to impact banks' profitability" – The introduction to liquidity coverage ratio (LCR) is a positive stepfor banks but the transition will be costly and is likely to impact profitability and credit growth of the lenders,according to India Rating and Research. – (FE Dec 12, 2015 p 8)

BANK OF INDIA"Bank of India: Continues to hold its pivotal position" – Bank of India (BoI) has emerged 2nd most

trusted public sector banks in the country by the Economic Times's Brand Equity's Most Trusted Brands forthe year 2015, in Survey Conducted by Nielsen, Most Trusted Brand. This is 5th consecutive years for theBank of India to hold the position as amongst the top two most trusted banks in India. – (FE Dec 12, 2015 p 3)

BHARATIYA MAHILA BANK"Mahila Bank's business plan" – Bharatiya Mahila Bank will soon firm up a medium-term business plan

spanning the next five years, according to S M Swathi, Executive Director of the bank. Till date, the bank hasnotched up business of about Rs.1,280 crore, Swathi also dismissed media reports of a possible merger ofBMB with a larger bank, stating that no merger proposal was on the table. – (HBL Dec 12, 2015 p 5)

CORPORATION BANK"Corpn Bank to aggressively focus on containing bad loans: Plans to sell Rs.1,800 cr of NPAs to an

asset reconstruction firm" – Corporation Bank, which is making an all-out effort to contain non-performingassets (NPA), is hopeful of achieving the target of recovering Rs.1,000 crore by the end of December. Weare aggressively targeting NPAs and want to contain slippages. The net NPA is currently hovering at 3.24per cent, and 5.43 per cent at the gross level, according to S R Bansal, Chairman and Managing Director. Areport. – (HBL Dec 12, 2015 p 5)

DCB BANK

– BASE RATE

"DCB Bank cuts base rate by 15 bps" – DCB Bank cut its base rate or minimum lending rate by 0.15 percent to 10.70 per cent. The bank also revised downwards its benchmark prime lending rate (BPLR) by asimilar margin to17.95 per cent. – (IE Dec 15, 2015 p 13)

DENA BANK"Dena Bank organize 'Financial Literacy' program for secondary and higher secondary school

students" – Department of Financial Services under Ministry of Finance, Government of India New Delhihas initiated 'Financial Literacy' pilot project for student of secondary and higher secondary school in threestates namely Gujarat, Madhya Pradesh and Maharashtra. The concern SLBC is shouldering the responsibilitiesin each state and it is decided that with the help of various banks the financial literacy program would beconducted for school and higher secondary school students. – (HBL Dec 11, 2015 p 2)

"Dena Bank ties up with JCB India Ltd." – Dena Bank entered into tie-up arrangement with JCB India Ltdfor Equipment Financing business. The tie-up is expected to boost the Banks growth under MSME Portfolio.– (ET Dec 14, 2015 p 10)

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FEDERAL BANK"Federal Bank sells stressed loans of GOL Offshore" – Federal Bank, which has been battling high non-

performing assets (NPAs), has sold the loans of GOL Offshore (formerly Great Offshore) to assetreconstruction companies (ARCs). 'The account was standard in our book, but we could foresee troublebrewing. We sold it to ARCs for Rs.140 crore in the October-December quarter. We got the right price forit,' according to a source from the bank. – (BS Dec 12, 2015 p 3)

"Federal Bank's special housing loan for Chennai" – Federal Bank has launched a special housing loantop-up facility in Chennai for houses that have been damaged in the recent floods. The existing home loanborrowers of the bank in Chennai region can avail themselves of top-up loans up to 50 per cent of theirhousing loan limits subject to a maximum of Rs.25 lakh. Other bank customers can get the top-up facility ifthey shift their housing loans to Federal Bank. – (HBL Dec 17, 2015 p 10)

IDFC BANK"Rajan Anandan on IDFC Bank board" – The IDFC Bank's board has announced the appointment of Rajan

Anandan, Vice-President and Managing Director of Google South East Asia and India, as independent Directorof the bank. – (HBL Dec 12, 2015 p 5)

– DBS BANK

"DBS, IDFC in race for RBS assets" – DBS Group Holdings Ltd, Southeast Asia's largest bank, and IDFCBank Ltd are among suitors preparing final bids for Royal Bank of Scotland Group Plc's Indian onshoreassets, according to the people familiar with the matter. – (Mint Dec 17, 2015 p 10)

INDIAN BANK"Indian Bank: Reaching out the needy with the banking services" – Indian Bank offered complete

Banking Services on December 6, 2015 SUNDAY in the flood affected regions of Tamil Nadu to helpgeneral public. The Bank operated its branches, ATMs and deployed the Banking Correspondents to reach-out to the flood victims in the state. – (HBL Dec 11, 2015 p 2)

INDIAN OVERSEAS BANK"IOB to raise Rs.1,570 cr through public offer" – Indian Overseas Bank (IOB) said it proposes to raise up

to Rs.1,570 crore at the current market price from the public offer to fund its growth plan. The bank plans toraise capital by issue of equity shares to the public not exceeding 51.79 crore shares of face value of Rs.10each at appropriate premium. – (FE Dec 13, 2015 p 3)

INDUSIND BANK"IndusInd Bank eyes deal market with new advisory division" – IndusInd Bank Ltd is expanding its

investment banking division with a focus on private equity and mergers and acquisition advisory, as the 21-year-old private sector lender tries its luck in India's deal street. The bank is in early talks with several globalfirms for potential tie-ups to expand outbound advisory activities, according to Roopa Satish, country head(corporate, institutions, investment banking) at IndusInd Bank. A report. – (Mint Dec 15, 2015 p 12)

"IndusInd Bank: Premium valuation to continue" – Given the lender's consistent performance, assetquality and strong prospects, analysts remain bullish on the stock. A report. – (BS Dec 11, 2015 p 13)

KARNATAKA BANK"Karnataka Bank: Unveils its Vision 2020 document" – Karnataka Bank has unveiled its ambitious VISION

2020 document, a Business Plan for tile next 5 years and adopted a Vision Statement - 'To be a progressive,prosperous and well governed Bank'. The KBL VISION 2020 which was recently approved by the Board ofDirectors of the Bank was unveiled by Shri P Jayarama Bhat, MD & CEO of the Bank, in the Bank's HeadOffice. – (FE Dec 12, 2015 p 3)

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ORIENTAL BANK OF COMMERCE"Oriental Bank of Commerce launched 'Oriental Salute Salary Account'" – On the occasion of Armed

Forces Flag Day, Oriental Bank of Commerce launched 'Oriental Salute Salary Account' - A Special Accountfor Defence Personnel. – (HBL Dec 11, 2015 p 2)

RESERVE BANK OF INDIA"Take permission before joining private sector, RBI tells staff" – The Reserve Bank of India (RBI) has

asked its senior officials, especially deputy governors, to take permission before taking up assignments in theprivate sector after retirement or quitting from the central bank. The RBI move came after a deputy governorjoined a private sector group soon after leaving the RBI, without waiting for the cooling period. This did notgo down well with the RBI which asked explanation from the official. While a high level committee decidesabout the post-retirement movements of senior officials, officers should take permission during a period oftwo years from the date of cessation of their service. A report. – (IE Dec 16, 2015 p 13)

– EXECUTIVE APPOINTMENTS

"Urjit Patel set to get another three year term as RBI dy guv" – Reserve Bank Deputy Governor, UrjitPatel is set to get another three-year term at the RBI. A selection panel headed by RBI Governor RaghuramRajan interviewed a few candidates last week. The formal announcement about the selection of Patel, whoheaded the committee to revise and strengthen the monetary policy framework, is expected to be made later.– (IE Dec 17, 2015 p 13)

– RIGHT TO INFORMATION

"RBI cannot deny information sought under RTI, rules SC: The central bank can't deny informationby citing economic interest, fiduciary ties with banks, says apex court" – The Supreme Court hassaid the Reserve Bank of India (RBI) cannot deny information sought under the right to information (RTI)law merely by citing economic interest and the central bank's fiduciary relationship with banks, bolstering thecause for transparency. The ruling says that information is an empowering tool which could foster nationalinterest. A report. – (Mint Dec 17, 2015 p 5)

SOUTH INDIAN BANK"South Indian Bank has a new V-P" – South Indian Bank has appointed Thomas Joseph K as Executive

Vice-President for administration. Joseph, who was the bank head of credit, will now be responsible for HR,vigilance, technology, risk management, marketing and corporate financial management. – (HBL Dec 17,2015 p 10)

STATE BANK OF INDIA"SBI debit cards to have EMV chip" – State Bank of India will issue EMV chip and pin based debit cards

to its new customers to ensure enhanced secure transactions. EMV chip and pin feature protects againstskimming and card transaction frauds. All SBI customers opening accounts with the bank hence forth willreceive this EMV chip and pin-based debit cards. Existing customers can also request for upgrading theircard. – (IE Dec 13, 2015 p 15)

"SBI to audit its HR systems practices" – To stay ahead in the digital banking space, State Bank of India(SBI) is buttressing its human resources (HR) systems and practices. The bank will take steps such as auditof its HR systems and practices. For this, it will rope in a consultant. SBI will also conduct, for the first time,an employee engagement survey to get feedback on the effectiveness of HR practices and policies that arein vogue, according to Ashwini Mehra, deputy managing director and corporate development officer at SBI.A report. – (BS Dec 14, 2015 p 7)

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– BANK CAPITAL

"SBI to seek shareholder nod for raising equity capital: Board to meet on December 21 to discussmodalities" – State Bank of India said a meeting of its Committee of Directors is scheduled on December21 to discuss the modalities of raising equity capital, either in the domestic or overseas markets or both, andalso for mopping up additional non-equity capital by way of bonds denominated either in dollars or rupees.– (HBL Dec 17, 2015 p 10)

-CYBER CRIME"Cops, SBI join hands to curb cyber-crime" – The Mumbai Police and the State Bank of India jointly

launched a cyber-crime awareness campaign. 'We do believe that unless we work jointly in this area, it willbe extremely difficult to ensure security for all,' SBI chairman Arundhati Bhattacharya said launching thecampaign, along with Mumbai's top cop Ahmad Javed. – (H Dec 15, 2015 p 3)

UCO BANK"UCO Bank takes special measures for the aid of flood affected people in Tamil Nadu" – Overcoming

all odds, employees of UCO Bank rose to the occasion to come to the rescue of their brothers and sisters inthe state of Tamil Nadu that has been ravaged by unprecedented rain during the past few weeks leavingpeople without food, water, money, electricity, and means of communication. – (HBL Dec 11, 2015 p 2)

EUROPE

– EUROPEAN CENTRAL BANK

"Draghi reassures markets on stimulus boost: ECB chief says further measures possible to aidfragile eurozone economy" – Mario Draghi has insisted that additional monetary stimulus is still on thetable and the European Central Bank stands ready to act should a strong recovery continue to elude the euro-zone's fragile economy. A report. – (FT Dec 15, 2015 p 4)

"ECB ready to act as Fed prepares to consider rate rise: Chief economist says bank instruments areflexible enough to face outcome" – The European Central Bank's chief economist has signalled eurozonepolicymakers stand ready to act, should rate increases in the US trigger a rise in global borrowing costs. Areport. – (FT Dec 14, 2015 p 4)

UK"UK banks need capital boost to meet crisis rules" – UK banks will need to fortify their capital to comply

with new rules intended to ensure they can be wound down without resorting to a taxpayer-funded bailout orhalting services crucial to the economy. The Prudential Regulation Authority said that lenders shouldn't beable to count common equity Tier 1 capital, a measured of financial strength, both toward EU resolution rulesand the risk-weighted capital and leverage buffers set by regulators. – (FE Dec 12, 2015 p 12)

USA

– FEDERAL RESERVE

"Armed with new tools, Fed aims to avoid bumpy rates lift-off" – After more than two years of dailytesting and regular meetings with Wall Street traders and investors, the Federal Reserve's market specialistsare still not sure how smoothly they will be able to lift interest rates after seven years at zero. The US centralbank is expected to raise its policy rates by a quarter of a percentage point. A report. – (Mint Dec 12, 2015pp 1, 2)

"Economists see up to 4 more Fed rises following Wednesday's expected move" – The Federal Reserveis set to follow a much-anticipated interest rate rise this week with two to four more increases next year,according to leading economists. A report. – (FT Dec 14, 2015 p 1)

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"Fed hikes rate 0.25% after almost a decade" – The US Federal Reserve ended months of speculation byhiking interest rates for the first time since June 2006, signaling faith that the US economy had largelyovercome the wounds of the 2007-2009 financial crisis. The central bank raised the range of its benchmarkinterest rate by a quarter of a percentage point to 0.25-0.5%. It said the hike was a tentative beginning to a'gradual' tightening cycle. The move is expected to suck money -constantly in search of higher returns andsafety -out of emerging markets and into the US. – (TI Dec 17, 2015 p 1)

"Interest rates in America: Buckle up" – The first of three pieces on the Federal Reserve imminentinterest-rate decision looks at whether America is ready for lift-off. An article. – (Eco 417(8968) Dec 12,2015 pp 60-61)

"Monetary policy: After lift-off" – The Federal Reserve is set to raise interest rates for the first time since2006. Its next step matters more. An article. – (Eco 417(8968) Dec 12, 2015 pp 12-13)

"New problems but old tools at Federal Reserve" – The monetary policy frameworks of central banks hasevolved little. An editorial. – (FT Dec 12, 2015 p 8)

"RBI expects US Fed to hike rate by up to 25 basis points: Markets have already factored in thepossibility of a rate hike: Governor Rajan" – The Reserve Bank of India is expecting the US Fed to hikeits policy rate by up to 25 basis points and is prepared to meet any eventuality arising out of the decision,according to Governor, Raghuram Rajan. An upward revision of rates by the Fed is being anticipated in theupcoming December 15-16 meeting. A report. – (HBL Dec 12, 2015 p 5)

Lokeshwarri S K – "The Fed can take a Hike" – The US Federal Reserve is almost certain to make its firstmove towards monetary policy normalisation this week. There have been enough hints from Janet Yellen andother Fed officials about this. Stock markets have typically thrived in phases when the Fed aggressivelyraised rates. An article. – (HBL Dec 14, 2015 p 2)

Rajwade, A V – "The end of the 2007-08 crisis?" – Economists warn of the impact that a Fed rate rise couldhave on emerging economies. An article. – (BS Dec 17, 2015 p 10)

Saha, Manojit – "5 reasons why markets are resilient now: With the US Federal Reserve likely tohike interest rates, RBI chief says India is doing better than before" – The Fed has prepared theground and we are expecting it will raise rates between one and 25 basis points... Whatever decision the Fedtakes, we are prepared for any eventually, according to Raghuram Rajan, Governor, Reserve Bank of India.An article. – (H Dec 16, 2015 p 7)

Sinha, Dhananjay – "Federal Reserve set for the lift-off" – Further delaying the start of the normalizationprocess is seen as increasing the risk of abrupt tightening later. An article. – (Mint Dec 14, 2015 p 23)

BANCASSURANCENeogi, Saikat – "Banks in Insurance: Bancassurance enables banks to offer their customers various

financial products through a single-window service" – An article. – (FE Dec 11, 2015 p 11)

BANK CAPITAL"Govt capital may not be enough for banks to support credit growth: Fitch: Fresh NPA growth has

started to slow down across many banks" – The government's expected capital injection of around $11billion (about Rs.70,000 crore) into its banks is critical but may be insufficient to support sustainable lendinggrowth, achieve Basel III norms and cushion balance sheet stress - all at the same time, according to FitchRatings. A report. – (HBL Dec 11, 2015 p 10)

– PUBLIC SECTOR BANKS

"Finmin to infuse Rs.5,000 cr into PSBs: Drive to raise capital eight lenders may benefit from themove in the current fiscal year" – The finance ministry will inject Rs.5,000 crore in public sector banks(PSBs) to boost their capital but this will depend on improvements in performance and efficiency. Eightlenders are expected to benefit from this last round of capitalisation in the current fiscal year, including VijayaBank, Indian Bank and Syndicate Bank. The other parameters on which banks will be assessed include badloans and growth in low-cost deposits. A report. – (ET Dec 15, 2015 p 11)

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BANK LENDINGShetty, Adhil – "5 reasons lenders can withhold loan disbursement after sanctioning" – While a loan

sanction letter is a significant milestone, it is by no means the final word on loan disbursement. An article.– (FE Dec 15, 2015 p 11)

BANKING REGULATOR"RBI has enough tools to fight Fed-induced volatility" – Reserve Bank of India Governor Raghuram

Rajan's assertion that the central bank was prepared to fight any eventuality arising out of a US FederalReserve interest rate decision has soothed the market but investors are not sure how much volatility toexpect. Everyone agrees, though, that RBI will not have to resort to sudden control measures, like thosetaken in 2013, to force bond yields to come down. Regulator in action: * RBI has forex reserves of $352billion; * Regularly intervenes in spot and forwards markets and has started intervening in the futures market;* Can use OMO to bring down bond yields; * Can also open liquidity facilities for banks to borrow money; *RBI might go for further rate cuts once volatility settles. A report. – (BS Dec 17, 2015 p 12)

BANKRUPTCY CODERay, Atmadip and Rebello, Joel – "Cheques & balances: Insolvency made easy" – The proposed

bankruptcy law will likely put an end to years of corruption in the system, while creating a level playing field.In the process, the 3 key players - borrowers, banks and courts - will have to set their house in order. Anarticle. – (ET Dec 16, 2015 p 14)

Sharma, Anjali and Tyagi, Shivangi and Others – "Ensuring information access during financial distress:The draft Insolvency and Bankruptcy Code contains provisions for the creation of an industry ofentities called the Information Utilities" – An Information Utility is a data warehouse where informationabout assets and liabilities of a debtor, along with defaults and discharges, will be stored. An article.– (FE Dec 17, 2015 p 7)

CREDIT RISK

– BANK CAPITAL

"Lenders win Basel U-turn on assessing risk: Committee drops plan to ban use of rating agencies inportfolio calculations" – The banking lobby has beaten back a global reform plan that it claimed wouldresult in a 'substantial' increase in capital. The Basel Committee on Banking Supervision said that it hasdropped a plan to ban banks from relying on rating agencies when they calculate risks in their portfolio. TheUS already has such a rule in place, so the global change of heart could make it harder to compare theriskiness of American banks with that of their rivals elsewhere in the world. The U-turn comes after intenselobbying from banks and the rating agencies themselves, which argued that forcing them out of calculationswould mean a cruder measure of credit riskiness - and one that would drive up the amount of capital banksmust hold. A report. – (FT Dec 11, 2015 p 17)

CREDIT RISK MANAGEMENTSingh, Nirvikar – "Banking on better credit risk management" – Emphasis on quality rankings at the

time of entry could put pressure on banks to improve CRM. An article. – (FE Dec 11, 2015 p 6)

DEFAULTERS"Bank chiefs want RBI to delay recognising defaulters" – Bank chiefs lobbied the RBI to defer the

deadline of March 2016 to recognise the 150 biggest borrowers who have missed payments as defaulterssince such a move would dent their financials and raise the need for more capital, according to two peoplefamiliar with development. But the central bank doesn't appear to have committed itself to any such action,according to those people who did not want to be identified. – (ET Dec 16, 2015 p 15)

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DIGITAL BANKINGVishwanathan, Vivina – "Small-sized banks take the digital route" – Smaller banks are investing in technology

and product innovation in a bid to stay in the race to digitise. An article. – (Mint Dec 15, 2015 p 20)

DISCLOSING DEFAULTERS

– RIGHT TO INFORMATION

"Heat on RBI, banks to reveal defaulters names" – The Reserve Bank of India (RBI) and the bankingsector may soon have to disclose the name of defaulters to people seeking such data under the Right toInformation (RTI) Act. The Supreme Court (SC), ruled that bankers cannot deny information on defaultersand irregularities on grounds of 'economic interest, commercial confidence, and fiduciary relationship.' TheSC dismissed a large number of appeals moved by Reserve Bank of India, ICICI Bank and National Bank ofAgricultural and Rural Development (NABARD), invoking banking rules and confidentiality to deny theinformation. The appeals came against orders of the Central Information Commissioner (CIC) in variouscases. A report. – (BS Dec 17, 2015 pp 1, 6)

EDUCATION LOANS"Study loans: southern States claim maximum interest subsidy: No more claims pending under the

now closed Central scheme, reveals RTI response" – The southern States of Tamil Nadu, Kerala,Karnataka and Andhra Pradesh have made the most of the new Central scheme of interest subsidy oneducation loans. A perusal of the statistics provided reveal that Tamil Nadu topped the list of States andUnion Territories (UTs), having received claims worth Rs.589.47 crore across 1.33 lakh student loan accounts.It was followed by Kerala (Rs.342.31 crore; 55,280 loan accounts); Karnataka (Rs.158.51 crore; 31,354accounts); Andhra Pradesh (Rs.119.53 crore; 32,220 accounts); and Bihar (Rs.107.58 crore; 14,401 accounts).A report. – (HBL Dec 15, 2015 p 10)

FINANCIAL INCLUSION

– BUSINESS CORRESPONDENTS

Jhabvala, Renana – "Cash gets stuck in that last mile: Banks need to focus on getting the bankingcorrespondent model right" – In a survey, 46% BCs reported problems in receiving monthly paymentsfrom the bank. With low income realisations, not many want it as a career option. An article. – (FE Dec 14,2015 p 8)

FINANCIAL LITERACY"Three out of four Indians are not financially literate: India ranks below global average, but on par

with BRICS: S&P survey" – Indians can surely explain what 'inflation' means in a financial literacy quiz.But a recent survey found that we know little about other key financial concepts, such as knowledge ofinterest rates, the effects of compounding and risk diversification. In fact, three out of every four Indianadults are not financially literate, according to a survey by Standard & Poor's Ratings Services. A report.– (HBL Dec 16, 2015 p 1)

– FINANCIAL INCLUSION

"India's financial literacy, lower than the world average, will impede its financial inclusion efforts"– An editorial. – (FE Dec 17, 2015 p 6)

FINANCIAL MARKETS – INTERNATIONALNageswaran, V Anantha – "Financial markets at fault" – By a rate hike, the Federal Reserve will merely

ring the bell on a farcical play that should not have been allowed to commence. An article. – (Mint Dec 15,2015 p 30)

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FOREIGN BANKING

– CITIBANK

"Citibank offers loans at 9.25% to Chennai staff" – Citibank has reached out to its 2,700 employees inChennai, offering those who were affected by the recent floods special personal and emergency loans at9.25% per annum to help rebuild houses, besides giving them up to three months of salary in advance.– (ET Dec 14, 2015 p 16)

– DBS BANK

"Sengupta is DBS India consumer banking head" – DBS Bank announced Shantanu Sengupta as the headof consumer banking group in India. – (FE Dec 16, 2015 p 8)

– STANDARD CHARTERED BANK

"StanC names Barclays man as pvt bank head" – Standard Chartered has named former Barclays Plcbanker Didier von Daeniken as its global head of private banking and wealth management. – (FE Dec 16,2015 p 15)

GOLD BOND SCHEME

– GOLD MONETISATION SCHEME

Ranade, Ajit – "Tweaking the gold schemes" – The gold bond scheme and gold monetization scheme canhelp deepen the financial sector. We can't afford these to fail. An article. – (Mint Dec 16, 2015 p 30)

HOUSING FINANCE"You may now get a Rs.1-cr home loan: With falling rates and rising earning power, banks push

bigger loans" – For the first time since the 2008 financial crisis, banks are now actively offering home loansfor as long as 30 years in a bid to revive demand for high-end homes, which were finding few takers in the topsix cities, said two people familiar with the development. This may turn out to be a lifeline for the strugglingreal estate developers saddled with high unsold inventories - despite freebies such as free registration, carpark, gadgets such as television sets and part-furnishing. Two largest mortgage lenders, State Bank of Indiaand HDFC, are leading the push. A report. – (ET Dec 17, 2015 p 1)

MICROFINANCE"MFIN revises code of conduct, asks cos to adopt robust norms" – Microfinance Institutions Network

(MFIN) has launched a revised code of conduct for microfinance institutions (MFIs). The salient features ofthe revised code emphasise more robust standards on corporate governance, measures to reduce clientoverindebtendess, mandating use of Aadhaar over a period of two years, and strengthening grievance redressalmanagement. All the changes will focus on the fundamental aspects of responsible business and enhancedclient protection. A report. – (FE Dec 11, 2015 p 8)

Thiagarajan, Tara – "Microfinance: How to exclude less" – If we want to see income growth in thecountry's middle classes, shouldn't we simply provide loans to all of our freshly minted college grads to startbusinesses? An article. – (ET Dec 16, 2015 p 12)

– SMALL FINANCE BANK

"Suryoday Microfinance to focus on 'one-minute banking'" – Excerpts from an interview with BaskarBabu, CEO and Co-Founder, Suryoday Microfinance. 'One-minute banking' will be Suryoday Microfinance'sunique selling proposition once it converts itself into a small finance bank (SFB) in August. The criticalsuccess factor is in terms of how strong the BC network can be and the service quality at the BC outletshould be as good as what you get in the bank branch. – (HBL Dec 14, 2015 p 18)

– 11 –

MONETARY POLICY"Banks' SLR under HTM category to come down to 20.5% by March 2017: The ceiling will be

reduced 0.25% every quarter" – The Reserve Bank of India said the statutory liquidity ratio (SLR) ofbanks will come down 0.25 per cent every quarter, from 21.5 per cent of their deposits now to 20.50 per centin the March 2017 quarter, as announced in the fourth bi-monetary policy in September. SLR is the portion ofdeposits that banks have to necessarily maintain in assets, such as cash, gold valued at a price not exceedingthe current market price, dated securities and treasury bills issued by the Government of India and Statedevelopment loans of State Governments. A report. – (HBL Dec 11, 2015 p 10)

Tarapore, S S – "There's more to banking than repo rate" – Banks have a point in objecting to themarginal costing method to determine lending rates. But why penalise savers? An article. – (HBL Dec 11,2015 p 8)

– INFLATION TARGETING

"Keeping a beady eye on inflation" – Despite signs of growth, expect RBI to be wary of the unintendedconsequences of its rate cuts. An editorial. – (HT Dec 16, 2015 p 12)

NON-PERFORMING ASSETS"Help with NPA clean-up: Govt must not add to banks' problems of stressed assets" – An editorial.

– (BS Dec 17, 2015 p 11)

"RBI governor meets bank chiefs to take stock of asset quality" – Reserve Bank of India (RBI) governorRaghuram Rajan met with heads of top banks to discuss various issues including asset quality concerns. Themeeting was intended to take stock of the asset quality of banks. 'During the meeting, RBI and the bankersdiscussed various issues including the asset quality of banks and the way forward on improving the quality ofbank balance sheets,' the central bank said in a statement on its website. A report. – (Mint Dec 15, 2015 p 5)

Krishnan, Ravi – "Bad loan problem: More skeletons in the closet?" – An article. – (Mint Dec 14, 2015 p 18)

– DEFAULTERS

"Zoom developers: Banks issued guarantees worth Rs.3,000 cr against collateral of just Rs.150 cr"– Zoom Developers Ltd, which figures prominently on the willful defaulters list, owes Rs.3,002 crore collectivelyto 26 state-owned banks. According to an investigative audit conducted by the lenders, Zoom has allegedlydiverted funds borrowed from these banks to 350-odd subsidiaries, related parties based in India and abroad,and to purchase jewellery for the wife of its promoter, Vijay Chaudhary. At the same time, however, severalof these lenders also issued bank guarantees to the company without due diligence and allowed it to roll overbank guarantees for four years till 2009-10, according to four people familiar with the case. A report.– (IE Dec 16, 2015 p 13)

PAYMENTS BANKS

– PAYTM

"Vikas Purohit to head Paytm's Payments Bank" – Mobile payments and commerce platform Paytm hasroped in former Amazon India executive Vikas Purohit to lead its payments bank business. Purohit, an IIM-Bangalore alumnus who till recently headed the fashion and lifestyle category at Amazon, joins Paytm asvice-president. – (ET Dec 15, 2015 p 7)

PMJDY

– RUPAY CARDS

"Over 19 cr A/Cs opened under Jan Dhan: RuPay cards issued to 16.51 crore customers and twolakh accounts are opened every day" – As on November 2015, the gross enrolment under PMSBY is9.16 crore, while that under PMJJBY is 2.86 crore, according to the finance ministry. A report. – (ET Dec 16,2015 p 11)

– 12 –

"RBI-backed card grabs 35% share: RuPay gaining currency irks Visa and MasterCard" – US cardcompanies MasterCard and Visa have complained of an invisible mandate to keep them out of Jan DhanYojana, the government's financial inclusion programme, and demanded a level playing field with government-backed card issuer RuPay. Stung by a sharp rise in cards issued by RuPay, thanks to Jan Dhan, MasterCardand Visa say they have asked Reserve Bank and the government to consider their services, which arecheaper than that of the local card issuer. A report. – (ET Dec 16, 2015 p 1)

PRIORITY SECTOR LENDINGSabnavis, Madan – "There is a need to tone down priority sector lending" – An article. – (ET Dec 16,

2015 p 14)

RECOVERY OF LOANS"Big promoters can impede loan recovery, says Rajan" – Large promoters have the strength to 'impede

any action' taken by banks to recover stressed assets, according to Reserve Bank of India governor RaghuramRajan. He emphasised that banks need to quicken the pace of recovery process and not postpone it. In somecases, banks have been late in taking action. There are also many impediments as well and large promotersare strong enough to impede any action. A report. – (FE Dec 12, 2015 p 8)

REMITTANCE MONITORING"Now, banks set to monitor remittance accounts closely" – The banking industry hit by rising number of

fraud cases and mounting level of bad assets, has decided to strengthen its compliance by keeping a closewatch on accounts registering sudden remittances - inward and outward - as well as new ones. The moveaims to prevent cases similar to the Rs.6,000 crore foreign exchange scam at Bank of Baroda. – (HT Dec14, 2015 p 13)

RETAIL LENDING"Excess focus on retail loans can create problems: Mundra: RBI Deputy Governor also asks banks

to clean up their books as soon as possible" – Excessive focus on retail lending by banks has comeunder the notice of the RBI with Deputy Governor S S Mundra saying that such a trend could be a source ofproblems. Because of whatever has happened in the corporate financial world in the last couple of years,probably now everyone is moving towards retail. Retail cannot be an unblended panacea. A report. – (HBLDec 15, 2015 p 10)

STRATEGIC DEBT RESTRUCTURING"Lenders to take control of Rohit Ferro-Tech under SDR" – Lenders to Rohit Ferro-Tech Ltd, a ferro

alloy manufacturing firm, have invoked the Reserve Bank of India's (RBI) strategic debt restructuring (SDR)rule to take majority equity control in the company. According to a notice to the stock exchanges, State Bankof India (SBI), the leader of the lending consortium to Rohit Ferro-Tech, informed the company about themove. For purposes of conversion of debt to equity, lenders have decided to take 30 November as thereference date. The company's total stand-alone debt was at Rs.2,279.54 crore as of September. A report.– (Mint Dec 16, 2015 p 10)

"RBI to meet bank chiefs on SDR, 5/25 refinancing: Meeting comes in the wake of worries thatschemes to manage stressed assets are not being used as intended" – Top officials at the ReserveBank of India (RBI), including governor Raghuram Rajan, will meet with bank chiefs to assess the progressand implementation of recently introduced stressed-asset management schemes, said two bankers aware ofthe meeting. While there is no formal agenda for the meeting, they expect it to be a stocktaking exercise oncases where strategic debt restructuring (SDR) and 5/25 refinancing have been invoked over the past fewquarters. Lenders may ask the regulator to form a central mechanism to help with asset sales under the SDRscheme. A report. – (Mint Dec 11, 2015 p 11)

– 13 –

– CREDIT MONITORING

Bandyopadhyay, Tamal – "Banks and the bloated debt of Amtek Auto: Part II" – An article.– (Mint Dec 14, 2015 p 11)

STRESS TESTSShah, Rashesh – "Stress tests for Indian banks" – Specific numbers are crucial given the wide divergence

in stressed asset estimates within each bank category. An article. – (Mint Dec 16, 2015 p 31)

WILFUL DEFAULTERS"1,624 FIRs against wilful defaulters" – Public sector banks have filed FIRs in about 22 per cent cases of

wilful defaults numbering 7,265 as of September 30, 2015. As many as 1,624 First Information Reports(FIRs) have been filed with regard to wilful defaults owing money to the tune of Rs.16,601.90 crore.– (IE Dec 14, 2015 p 13)

"Wilful defaulters owe Rs.64,335 cr to banks" – Wilful defaulters owe more than Rs.64,000 crore to banks,almost one-fifth of the bad debts in the stressed banking system, according to the government. It also admittedthat in some of these cases, the defaulters had colluded with bankers and were facing scrutiny. A report.– (Mint Dec 12, 2015 p 2)

RBI CIRCULARS"Exim Bank's GoI supported Line of Credit of USD 109.942 million to the Government of the

Democratic Republic of Congo" – (RBI Circular RBI/2015-2016/272 A.P. (DIR Series) Circular No. 38dated 17.12.2015)

"Exim Bank's GoI supported Line of Credit of USD 34.50 million to the Government of the DemocraticRepublic of Congo" – (RBI Circular RBI/2015-2016/271 A.P. (DIR Series) Circular No. 37 dated 17.12.2015)

"Exim Bank's GoI supported Line of Credit of USD 5.38 million to the Fiji Sugar Corporation Limited"– (RBI Circular RBI/2015-2016/270 A.P. (DIR Series) Circular No. 36 dated 17.12.2015)

"Implementation of Section 51-A of Unlawful Activities Prevention Act (UAPA), 1967- Updates toAl-Qaida Sanctions List" – (RBI Circular RBI/2015-2016/268 DBR.AML.No.7835/14.06.001/2015-16dated 15.12.2015)

"Interest Rates on Advances" – (RBI Circular RBI/2015-2016/273 DBR.No.Dir.BC.67/13.03.00/2015-16dated 17.12.2015)

"Mobile Banking Transactions in India - Operative Guidelines for Banks - Customer Registrationfor Mobile Banking" – (RBI Circular RBI/2015-2016/269 DPSS.CO.PD.No./1265/02.23.001/2015-2016dated 17.12.2015)

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTUREMehta, Pradeep S – "What about ease of doing farming?" – Promoting investment, innovation and skills,

safeguarding intellectual property can help agriculture go a long way. An article. – (HBL Dec 11, 2015 p 9)

NABARD"Nabard needs long-term funds to boost capital formation in agriculture sector: Employees body

also wants institution to be exempt from income-tax" – The National Bank for Agriculture and RuralDevelopment (Nabard) needs long-term finance to ensure flow of adequate funds to cooperatives and boostcapital formation in agriculture. Full-fledged funding of the National Rural Credit Long-Term OperationsFund and the National Rural Credit Stabilisation Fund are available options, says All-India Nabard EmployeesAssociation. A report. – (HBL Dec 16, 2015 p 10)

– 14 –

INDUSTRY"Oct factory output at 5-year high: Index of industrial production up 9.8%, but analysts says high

pace of growth may not be sustained in future" – India's factory output surged dramatically to a five-year high in October, driven by double-digit growth in manufacturing, robust festive demand and a favourablebase effect. The Index of Industrial Production (IIP) rose 9.8% in the month. A year ago, the index hadcontracted 2.7%. A report. – (Mint Dec 12, 2015 pp 1, 2)

CORPORATE BORROWINGS"Debt is like 'Dynamite' which can harm with its 'explosive' nature: Rajan to India Inc" – Warning

corporates against ill-effects of over-borrowing. RBI Governor Raghuram Rajan said debt is like 'dynamite'which can harm at times with its 'explosive' nature. Rajan also said that RBI is maintaining a database whichis being shared among banks to avoid over-borrowing by large corporate houses. Debt is very much like adynamite. It is an instrument which is very useful in right places and explosive in others. A report. – (IE Dec11, 2015 p 15)

EXCHANGE TRADED CROSS-CURRENCY DERIVATIVES"RBI introduces cross-currency futures norms" – The Reserve Bank of India (RBI) has issued guidelines

for introduction of cross currency futures and exchange traded cross-currency option contracts in the currencypairs of Euro-US Dollar, Pound Sterling-US Dollar and US Dollar-Japanese Yen. A report. – (FE Dec 11,2015 p 8)

UNHEDGED FOREX EXPOSURES"Unhedged forex exposures worrisome, says S S Mundra: RBI deputy governor supports consolidation

in banking sector" – The Reserve Bank of India (RBI) deputy governor S S Mundra indicated that with aturnaround in the interest rate cycle in developed economies, unhedged forex exposures of Indian companiesis a matter of concern. Because of the quantitative easing and easy monetary policy which was beingpursued by the developed economies in the last two years, there was abundance of cheap credit available,and I think many corporates have moved to convert their domestic currency borrowing into forex borrowingwithout caring to really hedge for it. A report. – (FE Dec 15, 2015 p 8)

SMALL SCALE INDUSTRY

ENTREPRENEURSHIP"Don't overreact in the other direction" – Edited excerpts from a conversation with Nexus' five managing

directors--Naren Gupta, Suvir Sujan, Sandeep Singhal, Anup Gupta and Jishnu Bhattacharjee - spoke aboutthe need for investors and boards to be more involved, the pitfalls of hyperfunding startups, and why Housing'sousted cofounder Rahul Yadav, for all his faults, is good for Indian entrepreneurship. – (ET Dec 11, 2015 p 14)

MSMEs

– MANUFACTURING

"Push to make in India campaign: Plan to Include MSMEs in startup definition: DIPP's move willhelp govt decide which companies can draw benefits of any scheme for startups and pushmanufacturing to create more jobs" – The government is considering a proposal to include micro, smalland medium enterprises (MSMEs) in its definition of startups to help boost the Make in India campaign. Areport. – (ET Dec 15, 2015 p 11)

MUDRA YOJANA"Mudra yojana: Loan disbursement target at Rs.1.22 L cr" – The Finance Ministry said banks will

disburse credit to tune of Rs.1.22 lakh crore to small and marginal entrepreneurs during the current fiscal

– 15 –

under the Pradhan Mantri Mudra Yojana (PMMY). Public sector banks are expected to disburse Rs.70,000crore and private sector and foreign banks Rs.30,000 crore, while the regional rural banks have a target todisburse Rs.22,000 crore. All together, the target for loan disbursement under the PMMY for 2015-16 is fixedat 1,22,000 crore, according to a finance ministry statement. – (IE Dec 16, 2015 p 14)

SMEs

– FINTECH START-UPS

"Now, fintech start-ups to provide capital to SMEs: Using big data analytics, these entities disburseloans in less than 48 hours" – New entrepreneurs and small enterprises, which have typically been lockedout of the financial system and ignored by big banks and other financial institutions, have found solace in abreed of new financial technology start-ups. In the last 12-18 months, about three dozen start-ups such asIndifi Technologies, CapitalFloat, Aye Finance, Origa Leasing, Faircent and Lendingkart have emergedto provide fast, easy and collateral-free loans to small businesses. The loans, mostly short term, are inthe range of Rs.3 lakh to Rs.1 crore but with an interest rate as high as 15-22 per cent. A report.– (HBL Dec 11, 2015 p 7)

START-UPS"Sebi asks bankers to promote start-up listing in India" – U K Sinha, chairman of the Securities and

Exchange Board of India (Sebi), asked investment bankers to promote the new platform to list start-upswithin India and sought suggestions to make listings easier for early-stage companies. A report. – (Mint Dec16, 2015 p 12)

INTERNATIONAL ECONOMICSBhattacharjee, Subhomoy – "A banker's take on sustainability" – The Age of Stagnation: Why Perpetual

Growth is Unattainable and the Global Economy is in Peril' by Satyajit Das. A book review. – (BS Dec 17,2015 p 11)

CHINA"China economy shows signs of steadying: Factory output growth picks up to 5-month high" – China's

activity data was stronger than expected in November, with factory output growth picking up to a five-monthhigh, signaling that a flurry of stimulus measures from Beijing may have put a floor under a fragile economy.A report. – (FE Dec 13, 2015 p 11)

ENVIRONMENT

– ASIA

Mahindra, Anand G and Kurien, T K and Others – "Economic growth and climate change: Businessleaders from India and China outline why climate action matters for businesses in both Asiangiants" – Taking action on climate change is important for businesses in India, China and emerging markets,because with the right direction from government, our countries can be the global engines of low-carbongrowth. Over the next 15 years, most of the world's economic growth will come from emerging markets.According to the World Bank, the Chinese and Indian economies both grew at 7.4 per cent in 2014 while theeconomies of the US and the UK grew at just 2.4 per cent and 2.6 per cent respectively. An article. – (HBLDec 14, 2015 p 16)

– CLIMATE CHANGE

"World gets together one last time in Paris to save the earth: France's Fabius presents 'ambitious,balanced' climate deal for approval" – What the draft proposes: A more ambitious goal for limiting rise inglobal temperatures to less than 2 degrees Celsius; $100 billion a year floor for funding developing nationsbeyond 2020; Five-year cycle for reviewing national pledges to take action on green-house gas emissions. Areport. – (FE Dec 13, 2015 pp 1, 12)

– 16 –

"The world, together, will fight climate change" – A framework for confronting the challenge of globalwarming. An editorial. – (FT Dec 14, 2015 p 8)

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Dec 14, 2015 Supl. pp 1-20)

POVERTY"Extreme poverty: Leaving it behind" – How to rescue people from deep poverty - and why the best

methods work. An article. – (Eco 417(8968) Dec 12, 2015 pp 52-53)

WORLD BANK"World Bank approves $1.5-billion loan for Swachh Bharat" – The World Bank has approved a $1.5-

billion loan for the Swachh Bharat Mission (SBM) to support India's efforts to ensure all citizens in ruralareas have access to improved sanitation such as a toilet with a focus on changing behaviors in ending thepractice of open defecation by 2019. The loan, with a maturity of 18 years, including a grace period of fiveyears, would help more than 500 million rural people to gain access to toilets and other sanitation facilitieswith a focus on behavior change, the multilateral agency said in a statement. A report. – (FE Dec 17, 2015 p 2)

LABOUR & PERSONNEL MANAGEMENT

HUMAN RESOURCE MANAGEMENT"National HRM summit: HR practices revisited" – At the 13th National HRM Summit of AIMA

educationists and corporate leaders gave a new perspective to human resource management in changingtimes. An advertorial. – (ET Dec 11, 2015 p 7)

MANPOWER OUTSOURCING"Manpower outsourcing: Evolution of staffing" – The rise of new business models and changes in workers'

expectations require a realignment of the manpower outsourcing paradigm in the near future. A report. – (ETDec 16, 2015 p 15)

WORKPLACEBasu, Sreeradha – "5 ways to a happier workplace" – Happy workers tend to work smarter, work harder

and be better engaged. Not surprising then that happy workplaces are usually more productive ones. Anarticle. – (ET Dec 17, 2015 p 8)

MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITY"The big picture on CSR spends by companies is far from gloomy: Firms have spent 80% of the

required amount of Rs.5,000 crore in 2014-15" – A parliamentary panel's recommendation that penaltiesbe levied on companies that failed to spend the mandatory 2 per cent of their net profit on CSR activities hasraised, if only obliquely, the possibility of substantial non-compliance. But, how big is this problem? An analysisof the 2014-15 annual reports of the 50 Nifty companies reveals a mixed bag. Yes, only 15 companies - orfewer than a third - have spent the mandated amount on CSR. But the overall figures on CSR suggest thatthe shortfall is not a big as it may appear on the face of it. Together, Nifty companies were required to spendRs.5,000-odd crore in 2014-15, of which they have spent a little over Rs.4,000 crore. A report. – (HBL Dec14, 2015 p 1)

"Don't tinker with CSR" – With CSR being made mandatory only a year ago, the Centre needs to givecompanies time to get this initiative off the ground. An editorial. – (HBL Dec 11, 2015 p 8)

– 17 –

"Mandatory CSR spend a boon: Sudha Murty: The other side Ratan Tata recently said compulsoryspending was like a tax" – Sudha Murty, chairperson of Infosys Foundation, told that it was a blessing andnot a financial burden. Narayana Murthy, said that the 2% rule has increased the foundation ability to reachout to the needy by almost 10 times, from Rs.20-30 crore to Rs.260-280 crore. A report. – (HT Dec 12, 2015p 16)

LEADERSHIPYe, Kenny – "Engage with not just the employees, but the country, the culture" – Kenny Ye, Managing

Director, UCWEB, India talks about 5 leadership traits that will work in the Indian workplace. An article.– (TI Dec 16, 2015 p 17)

MANAGEMENT EDUCATION

– IIM - LUCKNOW

"IIM-L forges alliance with Harvard" – Indian Institute of Management, Lucknow (IIM-L) has entered intoan institutional alliance with the reputed Harvard Business School (HBS), Boston, USA. As part of theaffiliate network of the Institute of Strategy and Competitiveness (ISC) at HBS, IIM-L would be able toaccess the updated Microeconomics of Competitiveness (MoC) pedagogy of the prestigious US University.Elective course on MoC would be offered to students of different programmes at IIM-L from next year.– (BS Dec 16, 2015 p 7)

MISCELLANEOUS"2016 will be the year of financial inclusion: Bill Gates" – Edited excerpts from an interview with Bill

Gates. Bill Gates describes himself as a technologist, business leader, and philanthropist. More recently, hewas called the most generous man in the world. According to the Forbes magazine, Bill and Melinda Gateshave given away more money - over $29 billion - than anyone; they co-chair a charitable foundation. Gateswas in India recently to lend support to the new focus of the foundation in India: financial inclusion. He tooksome time off to speak to Mint on this and more. – (Mint Dec 14, 2015 pp 3, 4)

"India ranks 130th in Human Development Index: UNDP: The index is an average measure of basichuman development achievements" – India continued to rank low in the Human Development Index(HDI), but climbed five notches to the 130th rank in the latest UNDP report on account of rise in lifeexpectancy and per capita income. India ranked 130 among 188 countries in 2014 in Human DevelopmentReport 2015. A report. – (HBL Dec 15, 2015 p 4)

"Number of women billionaires up sevenfold in 20 years" – The number of women billionaires has grownat a faster clip than men billionaires, multiplying by 6.6 times over the last two decades compared to 5.2 timesfor men, with Asian female entrepreneurs standing out as the main driver of this development, says a latestreport by UBS Group AG and PwC. The changing faces of billionaires. A report. – (BS Dec 16, 2015 p 6)

"UGC to rank all univs, irks watchdogs: Even private colleges to come under its ambit" – TheUniversity Grants Commission (UGC) has said it will rank all institutions across the country, including collegesfor the study of engineering and medicine, in a move that has been panned as 'overreach' by many watchdogs.Private colleges and universities will also come under the ratings' ambit. It will announce the rankings in April2016. A report. – (TI Dec 17, 2015 p 7)

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