Volume XXXII Number 1 October 3, 2016

Weeklies

BI – Business India

BusW – Business World

BusT – Business Today

CMar – Capital Market

EPW – Economic and Political Weekly

SE – Southern Economist

Eco – Economist

For(Asia) – Fortune AsiaCI – Corporate India

Newspapers

BS – Business Standard

ET – Economic Times

FE – Financial Express

FT – Financial Times

H – Hindu

HBL – Hindu Business Line

HT – Hindustan Times

IE – Indian Express

TI – Times of India

Mint – Mint

Classifications

Economy Banking Agriculture & Rural Development Industry Small Scale Industry

International Economics Labour & Personnel Management Management Miscellaneous Books

CONTENTS

A. ECONOMY 1

B. BANKING 2

C. INDUSTRY 13

D. SMALL SCALE INDUSTRY 14

E. INTERNATIONAL ECONOMICS 14

F. MANAGEMENT 16

G. MISCELLANEOUS 16

– 1 –

BANKERS' BRIEF Vol. XXXII No. 1October 3, 2016

ECONOMY"GDP growth to top 8% on rains, reforms: Panagaria" – A good monsoon, reforms and timely decision

making at the Centre will definitely push India's growth beyond the 8 per cent mark in subsequent quarters ofthis financial year, according to Arvind Panagariya, Vice-Chairman, NITI Aayog. – (BS Sep 26, 2016 p 9)

"India races up 16 rungs on global competitiveness index: Improved fiscal, monetary policies creditedfor fastest movement among 138 nations" – The Narendra Modi government initiatives to improve thebusiness and policy environment received thunderous validation from the World Economic Forum, whichrecorded India ascendance by 16 ranks to the 39th spot in the Global Competitiveness Index in 2016-17.India, which ranked 55th last year, registered the sharpest improvement among 138 countries assessed.'India's competitiveness has improved across the board, in particular in goods market e business sophistication,and innovation,' said the report, prepared by the WEF. India is now the second-most competitive countryamongst the five-nation BRICS bloc, behind China, which is at the 28th spot. A report. – (HBL Sep 28, 2016 p 1)

"With inflation slowing, there is space for monetary easing" – Edited excerpts from an interview withArvind Subramanian, Chief Economic Advisor. The Economic Survey for 2016-17 will be a completelychanged exercise. The one on the eve of the Union Budget will be forward-looking, and there will be anotherset of documents in July to review the past-year. He hopes GDP growth will be at the upper end of the 7-7.5per cent range. – (BS Sep 29, 2016 pp 1, 16)

Sabnavis, Madan – "Our external account looks gloomy" – A near-zero Q1 current account deficit indicatessluggish investment. The CAD may rise with capital outlaws in the near future. An article. – (HBL Sep 26,2016 p 16)

DEVELOPMENT FINANCE INSTITUTIONSGhosh, D N – "Lend aggressively but responsibly" – We must have special institutions with the mandate

to assess projects and provide critical financial assistance. An article. – (Mint Sep 23, 2016 p 20)

DIGITAL FINANCE"Digital finance to help India add $700 bn to GDP: report" – Digital finance could boost India gross

domestic product (GDP) by $700 billion by 2025 and create 21 million new jobs across sectors, according tothe latest McKinsey Global Institute (MGI) report. The report, titled 'Digital finance for all: Powering InclusiveGrowth in Emerging Economies', estimates that digital finance is expected to boost the GDP of all emergingeconomies by as much as $3.7 trillion by 2025, an increase of 6% from current levels. A report. – (Mint Sep23, 2016 p 8)

"Why India must leverage digital finance tech" – It could have significant benefits for inclusive growth, butmany challenges remain. An article. – (Mint Sep 26, 2016 p 20)

EMPLOYMENT"Unemployment rate highest in five years in 2015-16: Govt data" – The country's unemployment rate

went up to its highest in five years to 5% in 2015-16, the labour ministry's annual employment-unemploymentsurvey (EUS) for persons aged 15 years and above has revealed. The unemployment rate for 2013-14 was4.9%, in 2012-13 it was 4.7% and in 2011-12, 3.8%. A report. – (FE Sep 29, 2016 p 2)

FOREIGN EXCHANGE RESERVES"Forex reserves down by $1.67 billion to $369.6 billion" – After touching a record high, the country's

forex reserves declined by $1.679 billion to $369.6 billion in the week to September 16, according to the RBIdata. The reserves had touched a record high of $371.279 billion after it increased by $3.513 billion in theprevious week. – (IE Sep 24, 2016 p 11)

– 2 –

GST"Deadlock on GST broken; threshold set at Rs.20 lakh, rates to be discussed in October: Control of

small businesses with States; service tax to remain with Centre" – In a major breakthrough thatpaves the way for the rollout of the Goods and Services Tax (GST) from April 1, 2017, the Centre and theStates agreed to set an annual turnover limit for exemption from GST at Rs.20 lakh, and reached a broadconsensus on issues relating to dual control as well as compensation. Consensus on key issues: * Threshold:Annual turnover up to Rs.20 lakh for most States; Rs.1 0 lakh for hilly and NE States; * Control: Annualturnover up to Rs.1.5 crore with States; over Rs.1.5 crore with Centre and States; 11 lakh existing servicetax assesses with Centre; * Compensation: Regular payments, cesses to be included in revenue; base yearfor projections to be 2015-16; * Exemption list: To be decided on September 30; * Revenue-neutral rates andtax slabs: To be decided at October 17-19 meeting. A report. – (HBL Sep 24, 2016 p 1)

Mishra, Neelkanth – "Fools rush in" – GST is a reform long delayed. But there may be good reason not tohurry it through now. It is clear the choice is between time and perfection. There is very little time left: Clarityon rates must emerge in the next few months for the next year budgets. Moreover, the rollout cannot be tooclose to the 2019 elections: Economic disruption due to the GST can be minimised, but not obviated. Further,prices of some items may rise, and for others, may fall: The items that see increases could become pollissues. It is tempting to think of the process as an incremental one: Get the economy into the GST mode first,and later simplify the tax rates and ease the compliance burden. However, the best time to make structuralchanges is when a new system is starting. An article. – (IE Sep 23, 2016 p 10)

BANKING

GENERAL"Are Indian banks overvalued?" – Last week, global investment bank Morgan Stanley raised concerns over

the valuation of Indian bank shares. The investment bank pruned its weight as it didn't feel justified to haveone-third of its portfolio in bank shares, given that most of them have risen by 30% in the last six months. Agraphical report. – (Mint Sep 29, 2016 p 4)

"Non-food credit of banks rises to 11.04%" – The growth rate of non-food credit of banks increased to11.04% (y-o-y) during the fortnight ended September 16, as compared to 9.91% in the previous fortnight,data released by the Reserve Bank of India. On the other hand, the rate of growth in deposits improvedslightly to 9.87%. A report. – (FE Sep 27, 2016 p 10)

ANDHRA BANK"Andhra Bank ties up with 2 insurers" – Andhra Bank has entered into a partnership with two insurance

companies for distributing their products. It linked two separate corporate agency agreements with CignaTTK Company Ltd, a standalone health insurer, and Reliance General Insurance Company Ltd. – (HBL Sep24, 2016 p 10)

AXIS BANK"Axis Bank cuts deposit rates" – Axis Bank has reduced interest rates on some of its retail term deposits by

25-30 basis points. – (HBL Sep 24, 2016 p 10)

"Axis Bank shares fall 6% on SUUTI stake sale buzz: Schedule of Hong Kong conference confusedmany as a roadshow for SUUTI's stake sale" – Shares of Axis Bank fell nearly 6%, the most in 11months, on market buzz that Specified Undertaking of Unit Trust of India (SUUTI) may announce the sale ofits stake in the lender at any time. However, bankers said they are yet to start the groundwork and the AxisBank offer for sale will not happen soon. – (ET Sep 24, 2016 p 6)

BANK OF INDIA"Bank of India cuts base rate by 0.05% to 9.65%" – Bank of India has cut the base or the minimum

lending rate by 0.05 per cent to 9.65 per cent with effect from September 30. – (FE Sep 29, 2016 p 10)

– 3 –

"BoI sells 18% stake in insurance venture to partner Dai-ichi Life" – Bank of India (BOI) has sold 18per cent stake in the insurance joint venture Star Union Dai-ichi Life Insurance Company Ltd (SUD) to itsJapanese partner. 'Upon change in law, Bank of India has sold its 18 per cent stake in Star Union Dai-ichiLife Insurance Company Ltd (SUD) to Dai-ichi Life Insurance Company Limited (DILIC),' the lender saidin a regulatory filing. With this, the shareholding of BOI has come down to 30 per cent from 48 per cent inSUD. While, Union Bank of India will continue to hold 26 per cent. – (HBL Sep 27, 2016 p 10)

BANK OF MAHARASHTRA"BoM unveils unified payments interface" – Bank of Maharashtra (BoM) has unveiled its unified payments

interface (UPI) to allow its customers to transfer money to another account without keying in details likeaccount number, IFSC Code, branch details among others. To avail the benefit, its customers will have toregister with bank's UPI. The other account, where the money is to be transferred, will also be required toregister on the bank's or one of the other participating bank's UPI. – (TI Sep 24, 2016 p 20)

"Centre sacks Bank of Maharashtra CMD: Sushil Muhnot alleged to have misused powers; RavindraMarathe takes over" – In an unprecedented move, the Centre removed Sushil Muhnot from the post ofChairman and Managing Director of Bank of Maharashtra with immediate effect. This action comes fourdays before Muhnot was to superannuate. The move has been taken under legal powers vested with theCentre under the Nationalised Banks (Management and Miscellaneous Provisions) Scheme 1970/1980. Areport. – (HBL Sep 27, 2016 p 1)

CANARA BANK"Canara Bank to raise Rs.1,128 crore via rights issue" – Canara Bank said it will raise additional equity share

capital not exceeding Rs.1,128 crore, including premium, by way of rights issue. – (HBL Sep 24, 2016 p 10)

CATHOLIC SYRIAN BANK"Catholic Syrian Bank revives share sale plan" – Catholic Syrian Bank Ltd., a 96-year-old Indian lender,

plans to revive its initial public offering proposal to bolster loan growth in the world fastest growing majoreconomy. The Kerala-based lender, which had scrapped its listing plan last year, needs to raise Rs.1,000crore over the next three years, of which Rs.400 crore will come from the proposed IPO in 2017, accordingto S Santhanakrishnan, chairman of the bank. – (Mint Sep 28, 2016 p 8)

"Catholic Syrian Bank to raise Rs.130 cr via preferential shares" – Reliance Capital, HDFC StandardLife, ICICI Prudential Life and Bajaj Allianz are among seven firms set to collectively invest Rs.130 crore inthe Catholic Syrian Bank through a preferential issue of shares. – (TI Sep 25, 2016 p 14)

CORPORATION BANK"Corp Bank allots pref shares to Govt" – Corporation Bank has informed the BSE that the securities

allotment committee of the board of the bank, at its meeting, has allotted 12,45,70,868 equity shares of Rs.2each at a premium of Rs.38.78 per share - that is at an issue price of Rs.40.78 per share - to the Governmentof India on a preferential basis. On September 15, the extraordinary general meeting of the shareholders ofthe bank approved a special resolution in this regard to infuse funds up to Rs.507.99 crore into the capital ofthe bank. Consequent to the allotment of shares, the Government's holding in the bank gets increased from67.20 per cent to 70.76 per cent. – (HBL Sep 29, 2016 p 10)

HDFC BANK"Expunge remarks against HDFC Bank: SC orders consumer body" – Expressing its displeasure at the

choice of words by the National Consumer Commission (NCC), the Supreme Court has ordered removal ofall the remarks against the HDFC Bank, which was reproached by the consumer body for putting Indiareputation at stake by not activating the debit card of a couple travelling abroad. A report. – (IE Sep 29, 2016p 16)

– 4 –

"HDFC Bank raises Rs.6,700 crore" – HDFC Bank has raised Rs.6,700 crore by issuing bonds via privateplacement. – (HBL Sep 23, 25016 p 10)

ICICI BANK"ICICI Bank to funnel overseas capital to boost domestic focus" – ICICI Bank Ltd will continue to bring

back capital from its overseas subsidiaries as its international business stagnates, according to a top executive.According to N S Kannan, an executive director at India's second largest private sector lender, business at itswholly-owned subsidiaries has not been growing because Indian companies are not enthusiastically goingabroad and seeking to acquire capacities. This means they don't require much funding from the bank'sinternational offices. A report. – (Mint Sep 23, 2016 p 6)

– UNIFIED PAYMENTS INTERFACE

"UPI: ICICI Bank crosses 1 lakh Virtual Payment Addresses: Will explore more partnerships topopularise usage, says Chanda Kochhar" – ICICI Bank said that it has crossed the milestone of 1 lakhVirtual Payment Addresses (VPA) on payments interface (UPI) within three weeks of its launch. This bankis the first-to-do-so. – (HBL Sep 28, 2016 p 10)

IDFC BANK– BRAND EQUITY

Balakrishnan, Ravi – "Talk less bank more: Why be a friend, when you can be a banker, asks IDFCin its latest campaign" – To get more people to sign up. Lall says the bank has been picking up 25,000customers a month. The proof of whether IDFC can live up to its own Banking Nibhao tagline will be if itachieves its stated goal of one and a half million customers by the end of the fiscal. And that -Lall's protestationsnotwithstanding -with a target painted on it, thanks to its aggressively drawing attention to the polite hypocrisiesof the industry it operates in. An article. – (ET Sep 28, 2016 Supl. p 2)

LAKSHMI VILAS BANK"Lakshmi Vilas Bank on the lookout for investors to sell 23.5 per cent stake" – Excerpts from an

interview with Parthasarathi Mukherjee, MD and CEO, Lakshmi Vilas Bank. He says the bank is yet todecide on the exact route, investors or the extent of capital that needs to be raised. But the lender is certainlyon the lookout, says the veteran banker who has worked with Axis Bank and State Bank of India. The fund-raising process could be in tranches, but the bank hopes to shore up its CAR to 11 per cent by the end ofFY17. A report. – (HBL Sep 24, 2016 p 6)

PUNJAB NATIONAL BANK"PNB bags Rajbhasha Kirti Shield" – Punjab National Bank has been awarded with First Prize in Rajbhasha

Kirti award competition for the outstanding performance in implementation of Official Language Policy inBank for the financial year 2015-16 under the category of Nationalized Banks and Financial Institutions inRegion 'A'. – (HBL Sep 23, 2016 p 2)

RBL BANK (RATNAKAR BANK)"RBL Bank raises Rs.330 cr from UK's CDC Group: Funds will strengthen capital base, support

business activities" – Private lender RBL Bank Ltd has raised Rs.330 crore from the UK-based developmentfinance institution CDC Group through Basel III compliant Tier-II capital. – (HBL Sep 28, 2016 p 10)

RESERVE BANK OF INDIA– EXECUTIVE APPOINTMENTS

"Search on for new RBI deputy governor" – The government has initiated the process to fill the vacancycreated by the elevation of Urjit Patel as governor of the Reserve Bank of India (RBI). Applications for thepost of the deputy governor, a position which has been typically filled by economists, have been invited frompeople who have at least 25 years of experience in public administration at the level of secretary or in a publicfinance institution or those with an exceptional track record in the relevant field. – (Mint Sep 29, 2016 p 1)

– 5 –

STATE BANK OF INDIA"SBI raises Rs.2,500 cr" – State Bank of India said it has issued and allotted 25,000 AT 1 Basel III compliant

non-convertible debentures (NCDs) of face value Rs.10,00,000 each at par through private placement bearingcoupon of 8.75% aggregating to Rs.2,500 crore in second tranche. – (FE Sep 28, 2016 p 6)

UNITED BANK OF INDIA"United Bank of India receives Rs.608-cr capital from Centre" – United Bank of India said that it has

received Rs.608 crore capital infusion from the government. The bank has received Rs.608 crore from theCentral Government towards preferential allotment of 26,74,87,901 equity shares of Rs.10 each at a price ofRs.22.73 per share. – (HBL Sep 24, 2016 p 10)

YES BANK"YES Bank to raise Rs.330 cr via green infra bonds" – YES Bank said it will raise Rs.330 crore by issuing

a seven-year term green infrastructure bond to FMO, the Dutch Development Bank, on a private placementbasis. – (HBL Sep 28, 2016 p 10)

JAPAN– BANK OF JAPAN

"BoJ's new monetary tool signals determination to beat deflation" – Central bank pledges to overshootinflation goal but analysts are sceptical. A report. – (FT Sep 22, 2016 p 3)

Sender, Henny – "BoJ wakes up to the pain of negative rates felt by Japanese banks" – The manyvictims include pension funds, insurers and asset managers. An article. – (FT Sep 27, 2016 p 24)

USA– FEDERAL RESERVE

"Deeply split Fed holds rates but signals rise likely before year's end" – Three policymakers vote forimmediate lift. Decision follows renewed BoJ inflation push. The decision marks another chapter in the mostglacial rate-raising cycle in recent times. A report. – (FT Sep 22, 2016 p 1)

"Global stocks rise as fed stands pat: Yellen's status quo effect on markets" – Indian equities rose, thecurrency strengthened and government bond yields slid after the US Federal Reserve stood pat on interestrates, reflecting a relief rally that propped up markets the world over. The Fed signalled that rates could behiked in December, if the labour market showed signs of recovery, and that rate hikes were needed to keepthe economy from overheating. A report. – (BS Sep 23, 2016 pp 1, 11)

BANK CAPITAL– PUBLIC SECTOR BANKS

Kohli, Renu – "Tardy bank recap may hit growth: Did the government err in focusing too much onpublic capex?" – RBI's recent efforts to stimulate the corporate bond market by pushing large, riskyborrowers out of the banking system are steps for the future only; they cannot help banks in the immediatepresent. An article. – (FE Sep 29, 2016 p 8)

BANK CONSOLIDATION– SBI / ASSOCIATES

"SBI associates to soon submit report on amalgamation" – As part of the consolidation process within theSBI Group, its five associate banks including State Bank of Bikaner and Jaipur (SBBJ) will soon submit to theReserve Bank the scheme of acquisition as ratified by shareholders. A report. – (HBL Sep 27, 2016 p 10)

– 6 –

– SBI / BMB

"IT integration issues may delay SBI-Bharatiya Mahila Bank merger: Merger likely to take placeonly by end of this fiscal, says official" – The proposed merger of Bharatiya Mahila Bank with State Bankof India is likely to be delayed by a few months due to issues related to the integration of the informationtechnology platforms used by the two banks, according to official involved in the merger. A report. – (HBLSep 23, 2016 p 10)

BANK LENDING– NEIN DATABASE

"PSBs asked to tread carefully on promoters with poor report card: State-run lenders told to useNEIN database to check antecedents of economic offenders" – Promoters with a questionable financialtrack record may find it difficult to get credit from state-run lenders as the banks are being encouraged toaccess a database of offenders while assessing applications as part of a strategy to prevent bad loans frompiling up. Public sector lenders have been asked to use the National Economic Intelligence Network (NEIN)database to check the antecedents of borrowers and to inform the authorities about financial irregularities,according to a senior government official. A report. – (ET Sep 28, 2016 p 21)

BANKING REGULATOR– RESERVE BANK OF INDIA

"Guv Patel hints inflation a lesser risk, harps on growth: New RBI boss interacts with half-a-dozeneconomists to chat about economy and more" – In his first interaction with 'outsiders' as the governor ofReserve Bank, Urjit Patel has downplayed the risk of inflation and harped on the focus on growth. WhatPatel said: * GST regime would not harden inflation: Prices of many items would fall, which will partiallyoffset rise in prices of other items; * Keeping in mind growth objective part of MPC's mandate; * OK withnew GDP data: GDP based on new series need explanation, but old series was even worse; * Weightassigned to public sector housing and rent in calculation of CPI should be lowered. Even if interest rates arenot lowered in Oct, RBI may maintain dovish and accommodative stance on interest rates and liquidity. Areport. – (ET Sep 26, 2016 p 1)

"Urjit Patel's challenge of currency and inflation" – The RBI is legally committed to an inflation target. Itcannot aggressively intervene in the foreign exchange market to keep the rupee down. An article. – (MintSep 23, 2016 p 20)

CENTRAL BANKSChakravarty, Manas – "Central banks have a tiger by the tail" – An article. – (Mint Sep 26, 2016 p 4)

Prasad, Eswar – "A clear message that central banks are not all-powerful" – Credibility is as muchabout managing expectations as direct effects on the economy. An article. – (FT Sep 21, 2016 p 11)

CONSORTIUM LENDING– TELANGANA

"Banks consortium to lend Rs.6,750 cr to Mission Bhagiradha" – Telangana government will get a loanbonanza of Rs.6,750 crore from a consortium of banks on September 29, 2016 for Mission Bhagiradha, aflagship programme to provide drinking water. A report. – (HBL Sep 24, 2016 p 17)

CORRUPTIONBandyopadhyay, Tamal – "How corrupt are our bankers?" – An article. – (Mint Sep 26, 2016 p 8)

– 7 –

CUSTOMER SERVICESaleena A S and Dileep A S – "Service quality in commercial banks: An analysis" – Excellent customer

service requires competent, swift and gracious service, building burly interactions with customers, solution togrievances speedily and responses to customers' concern on time. Excellent customer service is the paramountway to retain the existing customers and new customers, thus guaranteeing the long-term triumph. Banksmust endeavour to attract new customers and keep current customers. Providing quality customer service isone convinced way of accomplishing this. Considerate customers' desires and satisfy them is extremelycritical. Superior method and quality product plan is also significant facet of customer service. In this articlean attempt has been done to articulate the existing level of customer service quality practices being followedby the Commercial banks in Kerala. Primary data was collected through structured questionnaire. Theresults points out that majority of bank customers frequently visits branch counter. Email is the best source ofinformation about the new products and services offered to customers. Customer redressal grievance cell isthe best mode of complaint registration against poor banking services. Insufficient front office staff is themajor impediments towards the service quality of bank. An article. – (SE 55(10) Sep 15, 2016 pp 32-35)

DEPOSITS"As bank deposit rates fall, savers are diversifying their investments" – Share of bank deposits in

household sector's investment in financial assets has declined to 41% in FY16 from 54% in FY14, show RBIdata. A report. – (HBL Sep 24, 2016 p 10)

DIGITAL CURRENCYVishwanathan, Vivina – "Are crypto-currencies worth your while?" – While the number of companies

related to crypto currencies has increased to 20 from just four, usage in India is limited, and mostly only inbitcoins. An article. – (Mint Sep 26, 2016 p 18)

Vishwanathan, Vivina – "Crypto-currencies: Are they safe to use?" – Bitcoins have been around since2009 and are still far from the financial mainstream. There is a need to clear the regulatory and security hazearound them. An article. – (Mint Sep 27, 2016 p 18)

– BLOCKCHAIN TECHNOLOGY

"Bitcoin and blockchain: The future of money or just hype?" – The debate. – (FT Sep 22, 2016 Supl. p 1)

DIGITAL PAYMENTS"W3C preps a new standard for one-click payments: Web's governing body joins hands with Internet

giants to devise a system similar to Amazon's" – Paying for things online can be cumbersome. Even theman who invented the Web, Tim Berners-Lee, says he frequently throws up his hands. A report. – (Mint Sep27, 2016 p 10)

EXECUTIVE APPOINTMENTS– PUBLIC SECTOR BANKS

"Banks Board Bureau suggests nine names for EDs at PSBs" – The Banks Board Bureau (BBB) said ithave recommended to the government names of nine candidates for the post of Executive Directors in publicsector banks. The government will now subject these candidates to a due diligence process before the finaldecision on appointments. The recommended candidates are Fareed Ahmed, Mrinal Kanti Bhattacharya,Atanu Kumar Das, P Ramana Murthy, Damodharan Neelam, Ashok Kumar Pradhan, A C Rout, S HariSankar and Swaminathan K. A report. – (FE Sep 27, 2016 p 10)

"Nothing wrong in recruiting outsiders as public sector bank chiefs: apex court" – Rejects PIL challengingthe Centre' policy of allowing private bank officials to be appointed to the top posts. A report. – (HBL Sep 24,2016 p 10)

– 8 –

FINANCIAL CRISISMulraj, J – "It's the too-big-to-fail banks that are likely to trigger the next crisis" – Chinese banks are

also candidates for another global financial crisis, given the fact that debt to GDP ratio in China is anunsustainable 255%. An article. – (HBL Sep 24, 2016 p 12)

FINANCIAL TECHNOLOGYVishwanathan, Vivina – "Banks are looking to raise their game using technology" – As fintech disrupts

the banking industry, Indian lenders have been quick to embrace new ideas. In the artificial intelligencespace, chatbots seem to have more takers when it comes to banking. An article. – (Mint Sep 26, 2016 p 11)

FOREIGN BANKS IN INDIA– BANK OF AMERICA

"Bank of America to cut senior positions in Asia" – Bank of America Corp. plans to eliminate about adozen senior positions at its corporate and investment banking operations in Asia, the second time the USbank cuts jobs in the region this year, according to people with knowledge of the matter. A report. – (HBLSep 27, 2016 p 10)

– CITIGROUP

"Citigroup may shut 10% of branches in India: Fallout of customers switching over to digital banking"– Citigroup Inc., the largest foreign lender in India by assets, plans to shut about 10 per cent of its branchesin the nation as more customers switch to the firm's digital platforms to conduct their banking transactions,according to the people familiar with the matter. – (HBL Sep 28, 2016 p 10)

– DBS BANK

"DBS Bank set to lease 100,000 sq. ft. in Mumbai" – Singapore's DBS Bank Ltd is close to leasing nearly100,000 sq. ft at Express Towers, a 25-storeyed building in Mumbai's Nariman Point, in one of the biggestoffice space deals in the business district since the 2008 global financial crisis that prompted many corporatesto leave the locality. – (Mint Sep 29, 2016 p 6)

– STANDARD CHARTERED

"India is among top four markets for standard chartered" – Edited excerpts from an interview with ZarinDaruwala, CEO, Standard Chartered, India. – (ET Sep 26, 2016 p 9)

INSOLVENCY ISSUES– RESOLUTION CORPORATION

"Govt panel proposes Resolution Corp for banks, financial firms" – A Finance Ministry-appointedcommittee proposed to set up a Resolution Corporation to expeditiously deal with issues concerning insolvencyof financial institutions, including banks and insurers. The suggestion to set up a Resolution Corporation,which will also be responsible for providing deposit insurance, was made by Finance Ministry's committee setup to draft a Code on Resolution of Financial Firms. A report. – (FE Sep 29, 2016 p 10)

INTEREST RATES"The fall in interest rates: Low pressure" – Interest rates are persistently low. In our first article we ask

who or what is to blame. In the second we look at one outcome: a looming pensions crisis. An article.– (Eco 420(9008) Sep 24, 2016 pp 17-20)

INVESTMENT"Banks' investments in corp bonds, CPs cross Rs.2.5 lakh cr" – Banks' investments in commercial

papers (CPs) and bonds issued by the private corporate sector crossed the Rs.2.5 lakh crore mark during thefortnight ended September 16, according to Reserve Bank of India (RBI) data. – (FE Sep 28, 2016 p 10)

– 9 –

INVESTMENT BANKS"JP Morgan tops investment bank rankings in first half" – Top five are all US banks; Deutsche Bank

skids to sixth place from third. A report. – (HBL Sep 24, 2016 p 10)

– GOLDMAN SACHS

"Goldman Sachs axing 30% of Asian investment banking jobs" – Goldman Sachs is cutting almost 30percent of its 300 investment banking jobs in Asia outside Japan in response to a slowdown in activity in theregion. A report. – (FE Sep 25, 2016 p 3)

LEADERSHIP– PUBLIC SECTOR BANKS

"Mundra flags possible leadership vacuum in public sector banks: Most bank chiefs due to retire inthe next couple of years, says RBI Deputy Governor" – Flagging the possibility of a leadership vacuumat the top in public sector banks due to loss of experienced hands on account of retirements, Reserve Bankof India Deputy Governor S S Mundra emphasised on the need to build capacity as banks cannot be 'leaderless'.Public sector banks are staring at a retirement decade. While recruitments are happening at the junior levels,there would be a virtual vacuum at the middle and senior level for some time to come. A report. – (HBL Sep29, 2016 p 10)

LOAN RESTRUCTURING– PUNJAB

"Foodgrain procurement: Punjab asks banks to restructure Rs.21,000 cr debt" – The Punjab governmenthas asked the SBI-Ied consortium of banks, which advances it a cash credit limit (CCL) every harvest forfoodgrain procurement, to restructure an accumulated outstanding of Rs.21,000 crore. Separately, the ReserveBank of India Monday approved the release of Rs.26,000 crore ca for paddy procurement in Punjab, whichcommences in less than a week on October 1. – (IE Sep 27, 2016 p 6)

MICROFINANCESatish, P – "An urban surge in microfinance" – Addition of 3 million clients shows that the sector, having

reached its inflection point, is growing steadfastly. An article. – (FE Sep 28, 2016 p 9)

MONETARY POLICIESDehejia, Vivek – "No exit: unconventional monetary policies" – An article. – (Mint Sep 26, 2016 p 20)

Smith, Noah – "Monetarists are out of ideas" – Policymakers will continue to believe that low interest ratesencourage both inflation and growth. An article. – (Mint Sep 23, 2016 p 21)

MONETARY POLICY"RBI may pause this time, but rate cut likely in Dec" – A majority of bankers and economists expect the

Reserve Bank of India (RBI) to keep key policy rates on hold in its bi-monthly monetary policy review onOctober 4, according to a Business Standard poll. The central bank might cut rates by at least 25 basis pointsin its December review, since, by then, a clearer picture would emerge on the inflation as well as the economicgrowth trends. Top bankers, economists, rating agency executives and bond market players participated inthe poll, where four out of 10 said there could be a rate cut in October. A report. – (BS Sep 26, 2016 pp 1, 4)

"RBI may wait till December for rate cut, says Ind-Ra" – Central bank to have better clarity on retailinflation; US electoral results will be out by then. A report. – (HBL Sep 27, 2016 p 10)

"The RBI remains in charge of policy: What macroprudential concerns will MPC address?"– An editorial. – (ET Sep 23, 2016 p 14)

– 10 –

Rege Nitsure, Rupa – "Reserve Bank to rely more on liquidity than rates" – An article. – (BS Sep 29,2016 p 4)

Sahay, Anubhuti – "Future direction of monetary policy will be keenly watched" – An article.– (Mint Sep 28, 2016 p 8)

– INFLATION TARGETING

"The problem is that the market still does not understand what inflation-targeting is" – Edited excerptsfrom an interview with Jahangir Aziz, Head, Emerging Market Research, JP Morgan. – (ET Sep 28, 2016 p 20)

Malik, Rajeev – "'Mission 4%' for lower trend inflation" – Launch 'Mission 4%' to achieve a new low andstable normal for trend inflation. An article. – (Mint Sep 27, 2016 p 21)

MONETARY POLICY COMMITTEE"Collective wisdom: What India can learn from other central banks" – Welcome to the club. India is

joining a group of countries that rely on collective wisdom to conduct monetary policy, taking the weight ofresponsibility off the sole shoulders of the governor. A report. – (FE Sep 27, 2016 p 10)

"How monetary policy committees function" – A graphical report. – (Mint Sep 26, 2016 p 8)

"How to make the monetary policy committee work" – What needs to be done now is to nurture theconditions for an independent MPC. A view. – (Mint Sep 27, 2016 p 20)

"The mechanics of monetary policy committees" – With the appointment of government nominees, thecommittee that will decide India's monetary policy is in place. Now, the spotlight shifts to how exactly thispanel will work. – (Mint Sep 26, 2016 p 8)

"The MPC six" – A quick edit. – (Mint Sep 23, 2016 p 1)

"Six wise persons" – Constitution of monetary policy committee promises an institutional arrangement moretransparent, accountable. An editorial. – (IE Sep 24, 2016 p 8)

"There will be no tug of war in MPC" – Edited excerpts from an interview with Ravindra Dholakia, RenownedEconomist and a Faculty Member at the Indian Institute of Management, Ahmedabad (IIM-A). – (BS Sep26, 2016 pp 1, 4)

"Three outside experts named to RBI's MPC" – The government has named three outside experts asmembers of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), moving to a modelfollowed in the developed world. The six-member MPC - the other three members are from RBI - willconduct its first monetary policy review on 4 October, Urjit Patel's first as RBI governor. The AppointmentsCommittee of the Cabinet on Thursday approved the names of Chetan Ghate, a professor at Indian StatisticalInstitute; Pami Dua, director at Delhi School of Economics (DSE); and Ravindra Dholakia, professor atIndian Institute of Management, Ahmedabad, as MPC members. A report. – (Mint Sep 23, 2016 p 1)

Mecklai, Jamal – "October 4, here we come" – The real question will be whether RBI's independence hasbeen enhanced by the MPC or has it been made pliant. An article. – (FE Sep 27, 2016 p 8)

Rangan, M C Govardhana – "MPC: Transparency should trump consensus" – The Monetary PolicyCommittee will enrich the policy debate by making public the reasons behind a decision. The biggest challengefor members, however, may not be economics but communicating that the very purpose of the body is toensure differing views so that a decision doesn't fall prey to one man's opinion. An article. – (ET Sep 28, 2016p 20)

Rao, Shubhada – "Over to you, MPC" – An article. – (Mint Sep 29, 2016 p 9)

Subramanian, Krishnamurthy – "Monetary Policy Committee: Snap out of that sluggishness" – Thenew six-member Monetary Policy Committee (MPC) was announced. Enduring relationships between banksand their borrowers and the associated lack of competition have led to sluggish transmission of monetarypolicy. The MPC would do well to settle down and focus on tackling this on a priority basis. An article.– (ET Sep 23, 2016 p 14)

Venkatesh, Latha – "Monetary policy committee: A job well begun" – An article. – (Mint Sep 26, 2016 p 16)

– 11 –

NON-PERFORMING ASSETS"Bad loans: Back to the drawing board" – The current bad loan problem is becoming a difficult learning

experience for RBI. A view. – (Mint Sep 29, 2016 p 20)

"Banks sit on Rs.3,30,000 cr unrecognised stressed loans" – Overleveraged corporates are set to givemore headache to the banks. While banks have reported huge loan slippages in the last three quarters, thesector is sitting on Rs.3,30,000 crore of unrecognised stressed loans. A report. – (IE Sep 29, 2016 p 16)

– PUBLIC SECTOR BANKS

"IBA's panel to look at all loans, Centre to PSBs: Bad loans apart from cases under S4A scheme willalso be vetted by the overseeing committee" – The government has asked all state-run lenders toapproach the newly constituted overseeing committee to look at all their loans and not just the accounts underthe scheme for sustainable structuring of stressed assets, or S4A, in a move aimed at widening the processof resolving bad loans. The two-member committee has been set up by the Indian Banks' Association inconsultation with the Reserve Bank of India as well as vigilance and investigating agencies to provide comfortto banks to take measures to address bad loans. A report. – (ET Sep 26, 2016 p 11)

"RBI approach to bad loans likely to change" – After over two years of pushing bankers to aggressivelytackle NPAs and chase defaulters, RBI under Urjit Patel may opt for a conciliatory path. A report.– (Mint Sep 27, 2016 p 1)

ONLINE BANKING"The scope of online banking" – According to a report by the Boston Consulting Group in collaboration with

FICCI and the Indian Banks' Association (IBA), India has around 470 million banking customers. Among thisdemographic, 60 million of them, amounting to 13% of the total users, use online banking. And within thiscategory, 10% prefer the hybrid model of regular online and offline banking. About 1% of users primarilyprefer the online channels for all their banking needs. In comparison, online banking is the primary channel ofinteraction for around 20% of customers in economies like the UK and the US. A graphical report.– (Mint Sep 26, 2016 p 10)

ONLINE BANKING FRAUDSSarwanan, P – "Protecting yourself from online bank fraud" – From card clones to skimmers in ATM

slots, scamsters are using a variety of tricks to siphon off your money. An article. – (FE Sep 28, 2016 p 15)

PAYMENTS BANKS– INDIA POST

"Application sought for India Post payments bank CEO post" – The government set into motion theprocess to select the CEO for India Post Payments Bank (IPDB). IPDB has invited applications for the postof chief executive officer/managing director from eligible candidates. A report. – (FE Sep 23, 2016 p 10)

PAYMENTS FIRMS– DIGITAL PAYMENTS

"The reality of payments firms is, we are relevant to urban and rural" – An interview with NaveenSurya, Managing director, ItzCash. He said the digitally-savvy Indian uses physical cash for 30-40 per cent ofher spending. So you can see the opportunity for a differentiated service. – (BS Sep 29, 2016 p 9)

PREVENTION OF CORRUPTION ACT– PUBLIC SECTOR BANKS

"Law to empower PSU bankers in final stages: Draft law before standing committee, will reachParliament shortly, says Jaitley" – A law which will empower bankers at state-owned lenders to take

– 12 –

decisions without fear of consequences (including the threat of investigation by federal agencies) is currentlyin its final stages of drafting and will reach Parliament shortly, according to the finance minister Arun Jaitley.'The law is in its last phases and is in front of the standing committee. We should see it happen soon,' Jaitleysaid while speaking at State Bank of India (SBI) third banking and economics conclave. A report.– (Mint Sep 28, 2016 p 8)

PROVISIONING– NPAs

"Banks may have to increase provisioning for bad loans" – As bad loans age, banks will have to factor inadditional provisioning requirements, which will have implications on their profitability and capital, accordingto S S Mundra, Deputy Governor, RBI. Unless and until recovery and upgradation overtakes the additionalaccumulation of bad loans, the provisioning requirement would be enhanced. A report. – (HBL Sep 29, 2016p 10)

PUBLIC SECTOR BANKS"Bond yields continue to fall ahead of RBI policy meet on Oct 4 - PSU banks gain most as receding

inflation kindles rate-cut hopes" – Public sector bank shares were among the biggest gainers as hopes ofa rate cut in the monetary policy meeting in October triggered liquidation of bearish bets. The Nifty PSUBank index was the top gainer among the Nifty sectoral indices, rising almost 3%. A report. – (ET Sep 29,2016 p 11)

"Focus on PSBs' health to be crucial for growth: FM" – Focusing on the health of public sector banks aswell as channelising more investment in infrastructure and rural India will be crucial for the country's growthin the coming years, finance minister Arun Jaitley said at the State Bank of India Banking and EconomicsConclave. A report. – (FE Sep 28, 2016 p 10)

SARFAESI ACT– RECOVERY OF LOANS / NPAs

"Recovery of banks has become easier" – Due to increasing NPA of Banks the government has changedthe laws of Recovery under securitization and reconstruction of financial assets and enforcement of securityenforcement act (sarfaesi) and recovery act (RDDBFI) for loan payable to Bank and Financial institution.All changes effected from 1 September due to these changes the recovery of banks will become so easierand banks and public will be rescue from fraud. As explained Mr Satyendra Khorania Expert Advocate fromJaipur addressing in the regional seminar conducted on Sarfaesi act and recovery. He explained that it hasbeen arranged in Sarfaesi act that all the information's are getting online regarding legal debtors, loan, orderof seize, taxes. Through this the bank will be saved from legal hurdles in recovery and the purchaser will getall information regarding the property being sold. A report. – (BS Sep 27, 2016 p 8)

SCHEME FOR SUSTAINABLE STRUCTURING OF STRESSED ASSETS"S4A scheme takes off with HCC, Adhunik power" – Lenders to Hindustan Construction Company (HCC)

have decided to recast the company's debt obligations of Rs.4,904 crore via the sustainable structuring ofstressed assets (S4A) scheme, senior bankers confirmed to FE. Bankers also plan to restructure loans toAdhunik Alloys & Power (AAPL) and Adhunik Power and Natural Resources (APNRL) so as to make iteasier for them to repay their combined loans of Rs.3,616 crore. Lenders are also hoping to be able to initiatean S4A scheme for Asian Colour Coated Ispat (ACCIL) which owes them Rs.3,019 crore. A report.– (FE Sep 26, 2016 p 1)

SMALL FINANCE BANKS"Small finance banks see spurt in valuations" – Valuation of the proposed small finance banks have gone

up by almost 50-60 per cent in the past year. The recent success of two listed entities - Ujiivan, which is yetto start operations as a bank, and Equitas, which is already operating as bank - has also helped pushed upvaluations. A report. – (BS Sep 26, 2016 p 9)

– 13 –

STRATEGIC DEBT RESTRUCTURING"GTL Infra lenders agree to invoke SDR" – Lenders to GTL Infrastructure have accepted the company's

proposal to convert some part of the debt into equity under the strategic debt restructuring (SDR) scheme,according to the bankers privy to the matter. Fact sheet: * The decision was taken at the meeting of a jointlenders forum held, bankers said. * GTL Infrastructure has, till now, serviced its debt on time and is considereda 'standard' asset. * Firm had a total debt of Rs.4,826.2 crore as of March 2015, and had incurred a loss ofRs.546.3 crore on revenue of Rs.619.3 crore in FY16. A report. – (FE Sep 23, 2016 p 10)

UNETHICAL BEHAVIOR– PUBLIC SECTOR BANKS

"Govt to take tough action against erring PSB, financial institution chiefs: Former chairman of SBIand 2 serving EDs are now being investigated for various violations, say officials" – The governmentis cracking down hard on the heads of public sector banks and other state-run financial institutions for acts ofwrongdoing, clearly signaling that there will be no leniency in such matters as lenders struggle with bad loans.A former State Bank of India chairman and two serving executive directors at other lenders are beinginvestigated for various violations. A report. – (ET Sep 29, 2016 p 10)

RBI CIRCULARS"'Doubling Farmers' Income by 2022' - Measures" – (RBI Circular RBI/2016-2017/66

FIDD.CO.LBS.BC.No.16 /02.01.001/2016-17 dated 29.09.2016)

"Aadhaar-based Authentication for Card Present Transactions" – (RBI Circular RBI/2016-2017/70DPSS.CO.PD No.892/02.14.003/2016-17 dated 29.09.2016)

"Auction of Government of India Dated Securities" – (RBI Circular RBI/2016-17/65 Ref.No.IDMD/683/08.02.032/2016-17 dated 26.09.2016)

"Exim Bank's GoI supported Line of Credit of USD 87.00 million to the Government of the Republicof Zimbabwe" – (RBI Circular RBI/2016-2017/68 A.P. (DIR Series) Circular No. 03 dated 29.09.2016)

"Grant of 'Certificate of Registration' - For carrying on the business of Credit Information - TransunionCIBIL Limited" – (RBI Circular RBI/2016-2017/69 DBR.CID.BC.16/20.16.040/2016-17 dated 29.09.2016)

"Master Circular- Credit Facilities to Minority Communities - Modification" – (RBI Circular RBI/2016-2017/67 FIDD.GSSD.BC.No.15/09.10.01/2016-17 dated 29.09.2016)

"Publishing of photographs of Wilful defaulters" – (RBI Circular RBI/2016-2017/71 DBR.CID. BC. No.17/20.16.003/2016-17 dated 29.09.2016)

INDUSTRY

COMMODITIES MARKET"Open sesame: SEBI unveils options trading in commodities: FinMin lists 91 commodities for trading;

will be a game-changer for farmers, says NCDEX" – Market regulator SEBI allowed commodityderivative exchanges to introduce trading in 'options', unveiling a historic step that is expected to deepen thecommodities market, expand the product basket and draw new participants. A report. – (HBL Sep 29, 2016 p 1)

CORPORATE BOND MARKET"Corporate bond market goals should be realistic, says RBI deputy governor" – A month after the

Reserve Bank of India (RBI) floated a draft regulation that seeks to push corporates towards the bondmarket and away from banks, a deputy governor warned that goals to develop the corporate bond marketshould be 'realistic'. 'We must not be blinkered in squeezing bank finance to forcibly take up corporate bondmarket. We would do well and act wisely if we keep our efforts in this direction,' according to R Gandhi,deputy governor, RBI. A report. – (Mint Sep 28, 2016 p 8)

– 14 –

"Indian market worth $1.1 trillion: Deepening corporate bond market a top priority: FM: Khanpanel recommendations to be implemented fully in next 6-8 months" – Finance Minister Arun Jaitleysaid the recommendations of the HR Khan Committee for the development of the bond market would befully implemented in the next 6-8 months. Deepening the bond market particularly on the retail side has beenthe top priority as far as India is concerned in the last few years. Pointing that banks' resources are constrainedby the impact of slowdown in various sectors, Jaitley said the government has accepted almost all therecommendations made by the Khan panel. A report. – (IE Sep 28, 2016 p 13)

MANUFACTURING"Manufacturing slowing in September, reveals SBI Composite Index: Banks loan books not showing

significant traction" – State Bank of India said its yearly Composite Index, which is a leading indicator ofmanufacturing activity in the Indian economy, for September 2016, is indicating a downward momentum andis in a growth phase compared to the previous month's 'moderate growth' phase. A report. – (HBL Sep 23,2016 p 10)

SMALL SCALE INDUSTRY

MSMEs"CRISIL SME TRACKER: Automation spurs growth for manufacturing MSMEs" – Micro, small and

medium enterprises (MSMEs) with automated manufacturing facilities have a distinct edge over their semi-automated counterparts which have a higher share of employee-oriented operations. CRISIL analysed 3,200MSMEs in the manufacturing sector during the period 2011-13 to 2014-15. The MSMEs with automatedfacilities clocked a compound annual growth rate (CAGR) of 18 per cent, compared with 12 per cent forthose with semi-automated facilities. – (BS Sep 27, 2016 p 16)

– LABOUR LAW REFORMS

Arora, Sonal – "Giving MSMEs room to breathe: Labour law reform will mean little if MSMEs aretreated the same way as larger enterprises" – A varying, simplified and minimalistic set of regulationsshould be designed for this sector. The proposed Small Factories Bill recognises some of the requirements,but there is a need to see this through in terms of implementation. An article. – (FE Sep 28, 2016 p 8)

INTERNATIONAL ECONOMICS"Half of world's economies have inflation below 2%; almost a fifth below zero" – The International

Monetary Fund's (IMF's) World Economic Outlook has an entire chapter on disinflation throughout theworld. The chart shows the share of countries with zero inflation, inflation below 1% and inflation below 2%.The proportion of countries having very low inflation has gone up sharply due to the slack in the worldeconomy, and low commodity and oil prices. More importantly, the chapter concludes that the perceivedability of monetary policy to combat persistent disinflation may be diminishing in some economies. That tiesin with the markets' recent bout of questioning the efficacy of monetary policy in the developed economies tostave off deflation. A graphical report. – (Mint Sep 29, 2016 p 4)

CHINA"China at the doorstep of crisis, says Bank of America: BlackRock says only bumps in road, government

has room to move cautiously" – A financial crisis may happen in China at any time because of the nation'sdebt woes, according to Bank of America, while BlackRock's head of Chinese equities said the governmenthas room to move and cautioned only of financial 'bumps along the way.' A report. – (BS Sep 29, 2016 p 6)

"China's economy shows fresh signs of strength" – China's economy is showing fresh signs of strength,from increased business confidence to an expansionary factory gauge reading, according to the earliestprivate indicators for September. Most private gauges showed improvement and a proxy for factory activityjumped to the strongest level in almost two years, suggesting better readings in August data have beenfollowed up this month. Standard Chartered Plc's Small and Medium Enterprises Confidence Index rose to

– 15 –

56 this month from 54.9 in August. The China Satellite Manufacturing Index jumped to 50.2 in the first weeksof September. The Market News International China Business Sentiment Indicator surged to a 13-monthhigh of 55.8 from a revised 54.1 in August as new orders helped to offset a softening in output. The S&PGlobal Platts China Steel Sentiment Index climbed to 74.43, the second highest reading this year, from 62.68in August. A graphical report. – (Mint Sep 28, 2016 p 2)

FINANCIAL CRISIS"BIS: An early warning indicator of financial crises" – The Bank for International Settlements (BIS) has

started publishing a new set of data-credit-to-GDP (gross domestic product) gaps of economies. 'It is definedas the difference between the credit-to-GDP ratio and its long-run trend, and it has been found to be a usefulearly warning indicator of financial crises,' says BIS of this new measure. The gap identifies any build-up ofexcessive credit and the Basel committee guideline on the counter cyclical capital buffer for banks suggestslooking at this yardstick. The chart shows that India runs a negative credit-to-GDP gap, which means itscredit-to-GDP ratio is lower than its long-term trend. On the other hand, China's credit gap is as high as 30%of GDP, indicating a massive risk of a financial crisis there. Indeed, as the chart shows, several other Asiancountries also show indications of overheating. India stands out as a beacon of stability among them. Agraphical report. – (Mint Sep 26, 2016 p 4)

FISCAL POLICYRoubini, Nouriel – "The return of fiscal policy" – If below-trend growth continues, monetary policy may

well lack the tools to address it. An article. – (Mint Sep 28, 2016 p 21)

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Sep 26, 2016 Supl. pp 1-16)

INTERNATIONAL RESERVE CURRENCY– YUAN

"Explained: Why China's yuan is set to join IMF's elite club" – From Oct. 1, China's yuan gains a newstatus as a member of the International Monetary Fund's Special Drawing Rights (SDR) basket. That makesit part of one of the global economy most exclusive, if esoteric, clubs. A report. – (BS Sep 28, 2016 p 6)

"Will yuan become the world's go-to currency?" – China's long-held desire to provide an alternative to theU.S. dollar will get a boost on October 1, when the yuan enters the International Monetary Fund's basket ofreserve currencies, placing it alongside the pound, euro, yen and dollar. The yuan's ascent is a validation ofthe importance of the world's second-biggest economy and the work policy makers have done to allow freeraccess to the nation's markets. A report. – (Mint Sep 29, 2016 p 2)

INTERNATIONAL TRADE"IMF sounds warning on slowdown in global trade" – The International Monetary Fund (IMF's) latest

World Economic Outlook has devoted an entire chapter to the slowdown in global trade. The IMF reportfinds that overall weakness in global economic activity, in particular investment, has been the primary restrainton trade growth, accounting for up to three-fourths of the slowdown. – (Mint Sep 29, 2016 p 4)

"WTO cuts global trade growth to 1.7% in 2016" – Global trade is expected to grow at its slowest pace in2016 since the 2009 financial crisis gripped the world, according to the World Trade Organization. Theintergovernmental organisation revised its estimates for global trade growth, saying it would expand by just1.7 per cent. A report. – (BS Sep 28, 2016 p 14)

Chakravarty, Manas – "Is inequality at the bottom of the slowdown in world trade?" – An article.– (Mint Sep 27, 2016 p 9)

– 16 –

WORLD BANK"Another term for World Bank chief" – Jim Yong Kim has been re-appointed for a second five-year term as

World Bank president, beginning July 1, next year, the bank announced. – (HBL Sep 29, 2016 p 4)

MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITY"Firms ramp up CSR focus on healthcare, poverty, hunger: The areas - lumped together as a single

cause in CSR Rules - got Rs.2,105 cr or 35% of all CSR spending" – Companies and sectors with thelargest revenues and profits accounted for the highest corporate social responsibility (CSR) spending in thesecond year of CSR Rules. Increases in CSR spending are being fuelled by industries such as automotive,chemicals, infrastructure, construction and energy that have stepped up their game much more than othersectors. A report. – (Mint Sep 23, 2016 p 12)

Srinivasan, Sudha – "CSR has to be made more meaningful" – The feedback on CSR is not inspiring.Since each industry has a distinct social impact, industry-specific CSR projects will help. An article.– (HBL Sep 26, 2016 p 16)

Vaidyanathan, Meena – "Building effective and efficient CSR" – An article. – (Mint Sep 23, 2016 p 12)

WOMEN DIRECTORS– WOMEN EXECUTIVES

"Number of women on Indian boards doubles in 5 years" – 'Gender diversity in both board and particularlysenior management positions is a tremendous benefit to companies and their shareholders. To understand theimpact of gender diversity, we need to focus on management,' according to Stefano Natella, Head of GlobalMarkets Research. Natella said data show there is a strong correlation between companies with high levelsof diversity in management and their performance. The report said the higher the percentage of women in topmanagement positions, the greater the excess returns for shareholders. A report. – (BS Sep 27, 2016 p 16)

MISCELLANEOUS"Mumbai wealthiest city in India with total wealth of $820 bn" – India's financial capital Mumbai, home to

45,000 millionaires and 28 billionaires, is the wealthiest city in the country with total wealth of $820 billion,according to a report. – (FE Sep 29, 2016 p 2)

"Oxford ranked world's top university: Record 31 Indian varsities find place in the list" – India hasimproved its position in the global higher education, with a record 31 educational institutions making it to anew list of the world's top varsities topped by the University of Oxford. The Indian Institute of Science(IISc), Bangalore is India's top institution in the 'Times Higher Education (THE) world University Rankings2016-17' list released, up nearly 50 T places from its last year's rank. Only two Indian universities have madeit to the top 400 universities' list. IISc (201-250 group), up from last year's 251-300 group, is accompanied bythe Indian Institute of Technology (lIT), Bombay (351-400 cohort) in the top 400 table. A report. – (HBL Sep23, 2016 p 3)

"Patanjali's Balkrishna in Forbes rich list with $2.5bn" – Yoga guru Ramdev's close associate AcharyaBalkrishna has entered the annual Forbes list of India's 100 Richest People at the 48th position with a networth of $2.5 billion. The Forbes list named industrialist Mukesh Ambani as India's richest person for theninth year in a row with a sharp increase in his net worth to $22.7 billion, while Sun Pharma's Dilip Shanghviwas ranked a distant second with a wealth of $16.9 billion. Mukesh's younger brother Anil Ambani wasranked 32nd with a net worth of $3.4 billion, down from 29th spot last year. A report. – (TI Sep 23, 2016 p 16)

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