Volume XXX Number 46 August 17, 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 2

C. AGRICULTURE & RURAL DEVELOPMENT 13

D. INDUSTRY 13

E. INTERNATIONAL ECONOMICS 14

F. LABOUR & PERSONNEL MANAGEMENT 15

G. MANAGEMENT 16

H. MISCELLANEOUS 16

– 1 –

BANKERS' BRIEF Vol. XXX No. 46 August 17, 2015

ECONOMY"Conditions favourable for another rate cut" – Edited excerpts from an interview with Arun Jaitley, Union

Finance Minister. – (Mint Aug 7, 2015 p 29)

"Economy showing signs of recovery: CII survey" – There is reason for cheer as there are green shootsof recovery taking shape in the economy, according to a new survey by the Confederation of Indian Industry.The CII ASCON industry survey for the April-June period reveals a slight improvement in growth trends interms of production over the corresponding quarter a year ago. A report. – (HBL Aug 10, 2015 p 14)

"Moody's flags drought risks for Indian economy: Monsoon may be good this year, but sovereigncredit profile more vulnerable to drought than similar countries" – India's economy remains vulnerableto droughts and fluctuations in rainfall in the coming years although the country may avoid a drought this year,according to Moody's Investors Services. Moody's warned that India's sovereign credit profile is more vulnerableto drought than other countries that are similarly rated. India is rated Baa3-the lowest investment grade-witha positive outlook. A report. – (Mint Aug 12, 2015 p 32)

Vijayakumar, V K – "Will India withstand the inevitable Fed rate hike?" – An article. – (Mint Aug 11,2015 p 20)

FOREIGN ECONOMIC RELATIONS

– SINGAPORE

"Singapore" – A commercial feature. – (BS Aug 10, 2015 pp 12-13)

FOREIGN EXCHANGE MARKET"Forwards is RBI's choice for forex market intervention" – The Reserve Bank of India (RBI) seems to

have changed its foreign exchange intervention strategy to more of net purchases of dollars from the forwardsroute than spot interventions. A report. – (BS Aug 11, 2015 p 6)

FOREIGN EXCHANGE RESERVES"Gold reserves down, forex kitty at $353 bn" – Gold reserves fell sharply by $824.2 million as the metal's

prices weakened globally, but gains in currency assets limited the dip in overall forex reserves, which weredown $187.6 million at $353.46 billion for the week ended July 31. The overall reserves had risen by $321.7million to $353.648 billion in the previous reporting week. – (FE Aug 8, 2015 p 10)

INFLATION"Inflation in India is falling, not rising" – A statement. – (IE Aug 8, 2015 p 11)

"Retail inflation down to sub-4% in July" – Retail inflation fell to multi-year low of 3.78 per cent in July onaccount of cheaper food prices, including of vegetables, fruits and cereals. The retail inflation based onConsumer Price Index was at 5.40 per cent in June 2015. In July 2014. CPI-based retail inflation was as highas 7.39 per cent. A report. – (BS Aug 13, 2015 p 4)

Nirmal, Rajalakshmi – "Inflation is down? Really?" – The numbers may look good but the consumermonthly budget hasn't eased up. Here are four reasons why the common man has no respite from inflation.An article. – (HBL Aug 10, 2015 p 2)

– 2 –

BANKING

GENERALKrishnan, Hema A – "All in a day's work" – How a visit to a bank branch in India could turn out to be an

entertaining and culturally insightful experience for a newcomer to the scene. I have concluded that theemployees I watched have advanced degrees in multitasking and patience, doing their work despite a numberof constraints. My biggest takeaway from this experience was that despite the many interruptions and thehuge volume of work handled in the branch, customers received very good service. My second takeawaywas that a visit to a bank in India can be truly entertaining. An article. – (H Aug 11, 2015 p 16)

KARNATAKA"Bankers to hold counselling for distressed farmers" – As the spate of farmers suicides continued in the

State owing to debt and other reasons, bankers have decided to organise counselling camps for farmers indistress. They have also decided to enrol farmers under social security schemes. A report. – (H Aug 10,2015 p 7)

TAMIL NADURavindranath, Sushila – "Banking for the underbanked" – Global Analytics is eyeing the Indian market

because it has considerable mobile internet penetration, growing consumption which is fuelling demand forcredit, and a large segment of population which has no access to credit. An article. – (FE Aug 10, 2015 p 7)

ANDHRA BANK"Andhra Bank's new deposit scheme" – Andhra Bank has launched two new deposit-cum-insurance schemes

as a social security measure on the eve of Raksha bandhan. The two schemes, Suraksha Bima Deposit andJeevan Suraksha Bhima Deposit are available to customers in the 18-70 and 18-50 age groups, respectively.The deposits can be subscribed by way of gift cheques. – (HBL Aug 11, 2015 p 6)

AXIS BANK"We have done reasonably well in a tough environment" – Edited excerpts from an interview with Shikha

Sharma, MD and CEO, Axis Bank Ltd. – (Mint Aug 11, 2015 p 29)

CANARA BANK"Canara Bank to increase stake in Can Fin Homes by up to 5% each year: Robust loan book, low

NPA of latterkey factors for move" – Attracted by associate company Can Fin Homes' robust top0lineand bottom-line growth as well as the rising dividend trajectory, Canara Bank is planning to up its stake in thecompany by up to 5 per cent every year over the next few years. – (HBL Aug 7, 2015 p 6)

CENTRAL BANK OF INDIA"Central Bank of India Q1 net profit rises 5.7% to Rs.203 crore" – Central Bank of India reported a net

profit of Rs.203 crore in the June quarter of FY16, up 5.7% year-on-year (y-o-y) owing to a dip in provisions.Net profit in Q1 was aided by a 12% y-o-y decrease in provisions made in the quarter at Rs.690 crore. Itsbad loan provisions stood at Rs.576 crore in Q1 and was Rs.87 crore lower than the same quarter last year.A report. – (FE Aug 9, 2015 p 12)

"Central Bank of India: Reviewed financial results for the quarter ended June 30, 2015" – Anadvertisement feature. – (BS Aug 10, 2015 Pt. II p 7)

CITY UNION BANK"Citi Union Bank Ltd.: Unaudited financial results for the quarter ended 30th June, 2015" – An

advertisement feature. – (HBL Aug 13, 2015 p 21)

– 3 –

"City Union Bank net up 12% in Q1" – City Union Bank reported a 12 per cent growth in net profit atRs.111.55 crore in the first quarter of this fiscal against Rs.99.49 crore in the corresponding year-ago quarter.A report. – (HBL Aug 13, 2015 p 6)

CORPORATION BANK"Corporation Bank Q1 profit declines 12%: Rise in provisions for bad loans weighs on performance"

– An increase in provisions for non-performing assets (NPAs) brought down Corporation Bank's net profitby 11.75 per cent during the first quarter of 2015-16. The bank registered a net profit of Rs.204.26 crore inthe quarter against Rs.231.47 crore in the corresponding quarter of the previous fiscal. The net provisions forNPAs stood at Rs.604.23 crore against Rs.466.08 crore, an increase of 29.64 per cent. The gross and netNPAs stood at 5.43 per cent (3.96 per cent) and 3.55 per cent (2.71 per cent) respectively. The net interestincome of the bank increased to Rs.1,080.72 crore (Rs.944.24 crore), and non-interest income to Rs.401.83crore (Rs.361.60 crore) during the period. A report. – (HBL Aug 8, 2015 p 14)

"Corporation Bank: Reviewed financial results for the quarter ended 30th June 2015" – Anadvertisement feature. – (HBL Aug 8, 2015 p 3)

– AGRICULTURAL FINANCE

"Corporation Bank offers instant loan facility" – At a time when farmers across the country are underdistress, Corporation Bank has come forward to offer them easy loans (farm or non-farm), including thosetowards repaying debts of moneylenders. Corporation Bank Executive Director A K Srivastav told that afarmer in need of the loan has to simply approach any branch of the Bank and instant loan up to Rs.1 lakhwould be offered. Except due to crop failure following vagaries in climate, farmers are not wilful defaulters.– (H Aug 8, 2015 p 15)

DHANLAXMI BANK"Dhanlaxmi Bank: Unaudited financial results for the quarter ended June 30, 2015" – An advertisement

feature. – (FE Aug 13, 2015 p 19)

FEDERAL BANK"Federal Bank rolls out e-loans" – Federal Bank launched Fed-E-Credit, its digital loan facility and issued

the first online loan. Through this facility, customers can apply for loans against their fixed deposits usingFedNet, the bank's Internet banking facility. The loans taken under Fed-E-Credit can be closed online throughFedNet. The first 1,000 customers taking E-Credit will get interest rate concessions, according to the bankstatement. – (HBL Aug 11, 2015 p 6)

HDFC BANK"HDFC Bank unveils 'Dhanchayat'" – HDFC Bank launched an awareness initiative Dhanchayat - an

educational film made by the bank to raise awareness on the dangers of borrowing money from the unorganisedsector, particularly in rural areas. – (FE Aug 12, 2015 p 10)

Merwin, Radhika – "HDFC Bank: Winner all the way" – Even under tough market conditions, the bankcontinues to perform very well. An article. – (HBL Aug 10, 2015 p 4)

ICICI BANK"Asset quality worries: ICICI Bank's at higher risk of bad loans" – As per a SEC filing by bank, its

delinquency (31-90 days due) breakup has almost doubled to 6.4% of loans in FY15, says Ambit Capital. Areport. – (ET Aug 7, 2015 p 10)

"ICICI extends base rate advantage" – ICICI Bank said it will offer loans of up to Rs.15 lakh at base rate- the minimum lending rate - in rural areas. The bank already lends to women at base rate, which currentlystands at 9.70 per cent. – (BS Aug 11, 2015 p 6)

– 4 –

IDBI BANK"IDBI Bank launches processing system for education loans" – IDBI Bank launched a loan application

processing system for education loan, personal loan and auto loan, the bank said in a statement. This is inaddition to the existing loan processing system for home loans and loan against property. Thus, all loans havebeen digitised with the facility being made available online. – (FE Aug 7, 2015 p 10)

"IDBI Bank launches self-service Mini Branch Kiosk" – IDBI Bank launched its first self service MiniBranch Kiosk at its Cuffe Parade, Mumbai Branch which will address the customer's request of personalizedcheque leaves dispensation and issue of Demand Draft & Pay Order on 24x7 bases. IDBI Bank would bethe first bank in the country to make available these services. – (ET Aug 10, 2015 p 4)

"IDBI Bank Ltd.: Unaudited financial results for the quarter ended June 30, 2015" – An advertisementfeature. – (HBL Aug 13, 2015 p 17)

"IDBI Bank Q1 net rises 27% as non-interest income jumps: Rebalancing of loan portfolio towardsretail also helped boost profits, says CFO" – Healthy growth in net interest income and other incomehelped IDBI Bank log a 27 per cent increase in net profit in the first quarter ended June 30, 2015. Net profitof the public sector bank in the reporting quarter stood at Rs.135 crore, against Rs.106 crore in the year-agoperiod. A report. – (HBL Aug 13, 2015 p 6)

INDIAN OVERSEAS BANK"Indian Overseas Bank: In a consolidation phase" – Excerpts from an interview with R Koteeswaran,

MD and CEO, Indian Overseas Bank. – (CI 8(11) Aug 1, 2015 pp 66-67)

INDUSIND BANK"IndusInd Bank allots shares worth Rs.753 cr" – IndusInd Bank has approved an allotment of nearly 88

lakh equity shares valued at around Rs.753 crore to IndusInd International Holdings Limited and others. TheFinance Committee of the bank has approved the allotment of equity shares at a meeting, IndusInd Bank saidin a Bombay Stock Exchange (BSE) filing. – (FE Aug 7, 2015 p 10)

"IndusInd Bank raises Rs.5,081 cr via QIP, pref issue" – IndusInd Bank raised Rs.753 crore via preferentialallotment this month. Earlier in July, the bank had mopped up Rs.4,328 crore through qualified institutionalplacement of shares. – (HBL Aug 13, 2015 p 13)

JAMMU AND KASHMIR BANK"J&K Bank net rises 22% in Q1" – Despite an increase in bad loans, Jammu and Kashmir Bank reported

a 22 per cent rise in net profit for the June quarter at Rs.159 crore driven by lower provisions and healthyinterest margins. Net profit for the year-ago quarter was Rs.130 crore. During the quarter, provisions andcontingencies fell 14 per cent from a year ago to Rs.213 crore even as bad loans rose. – (HBL Aug 11, 2015 p 6)

"J&K Bank: Financial results for the quarter ended 30th June, 2015" – An advertisement feature.– (BS Aug 11, 2015 p 3)

KARUR VYSYA BANK"Karur Vysya Bank to focus on SMEs" – Karur Vysya Bank, which will turn 100 in July next, is looking to

emerge as a strong SME bank. Chief Executive K Venkataraman told that efforts are on to position thisnearly-century old bank for the next level of growth, as a specialised institution for the SMEs. A report.– (HBL Aug 7, 2015 p 6)

PUNJAB & SIND BANK"PSB Q1 net more than doubles to Rs.43 crore" – Punjab & Sind Bank ( PSB) said its net profit for the

first quarter of 2015-16 more than doubled to Rs.43.16 crore from a year ago. The bank's net profit in theJune quarter of 2014-15 stood at Rs.21.43 crore. Higher earnings from corporate, wholesale and retailbanking contributed to the profit rise. – (FE Aug 9, 2015 p 12)

– 5 –

"Punjab & Sind Bank: Revised un-audited financial results for the quarter ended 30th June 2015" –An advertisement feature. – (FE Aug 9, 2015 p 18)

PUNJAB NATIONAL BANK"PNB launches savings fund campaign" – Punjab National Bank is offering saving fund account with a host

of Technology based facilities such as mobile banking, SMS alerts, ASBA, debit card with free AccidentalInsurance, etc. which adds a lot of value to the customer. – (ET Aug 10, 2015 p 4)

RESERVE BANK OF INDIA"Big brother cloud over RBI" – The Modi government will be doing a disservice to the nation if it continues

on the path of turning an autonomous RBI into its handmaiden with a view to serving its short-term politicalagenda. An editorial. – (CI 8(11) Aug 1, 2015 p 3)

"Stop meddling" – The Reserve Bank of India needs to remain autonomous and independent. An editorial.– (BI (976) Aug 3, 2015 p 8)

"Testing new waters: Reserve Bank hires ex-nomura algo trader as consultant: Gangadhar Darbhawill help develop financial and derivatives markets" – The Reserve Bank of India (RBI), which frownsat algorithm trades and is averse to sophisticated financial products, has hired an algorithmic trader fromNomura Securities to spearhead the development of Indian financial markets with derivatives. GangadharDarbha, a 45-year old executive director at Nomura Securities designing trading models for the Japaneseinvestment bank for trading across markets, is being hired as a consultant to the central bank. – (ET Aug 12,2015 p 12)

Mehta, Sangita – "RBI's road runner" – By day, Prachi Mishra collates hard, data-driven numbers for thecentral bank. By evening, she lets her hair down and tucks into street food or indulges in a movie at amultiplex. Sangita Mehta profiles the woman who has the unenviable task of inculcating a research focus inthe central bank functioning. An article. – (ET Aug 12, 2015 p 16)

Rangarajan, C – "Accountability with autonomy" – By clarifying the objective of the Reserve Bank ofIndia, the monetary policy framework has enhanced its autonomy. Nothing should be done to dilute theauthority that goes with this responsibility. The Reserve Bank of India is not an insular institution. It keeps itsears open. Before any major policy decision is taken, it holds extensive consultations with banks, industryassociations, economists and various market participants. An article. – (H Aug 12, 2015 p 10)

Srinivasa-Raghavan, T C A – "RBI: A fly in the bottle" – The Reserve Bank of India is not a free agent. Itnever has been, nor should it ever be. An article. – (BS Aug 7, 2015 p 9)

SOUTH INDIAN BANK"Growth push: South Indian Bank to focus on retail loans, savings a/cs: Will open centralised marketing

and processing centre" – South Indian Bank plans to focus on retail loans as well as improve its share oflow-cost savings accounts. Identifying the need to provide a full suite of products for retail customers or runthe risk of losing them to other banks, V G Mathew, MD and CEO, said the bank was gearing towardsimproving its performance on these parameters. A report. – (HBL Aug 11, 2015 p 6)

"South Indian Bank to focus more on retail loans, says MD: Targeting 20% growth in gold loans thisfiscal, says V G Mathew" – Excerpts from an interview with V G Mathew took over as MD and CEO ofSouth Indian Bank. – (HBL Aug 13, 2015 p 6)

"South Indian Bank to raise FII money soon" – South Indian Bank will soon be raising fresh equity fromforeign institutional investors. Foreign holding in the bank {including foreign institutional investors (FIIs), non-institutional holders and non-resident Indians (NRIs)} is presently 46 per cent of the share capital and closeto the 49 per cent limit on their holding. The bank has recently secured approval from the board andshareholders to raise the limit on foreign share holding to 59 per cent. – (HBL Aug 10, 2015 p 18)

– 6 –

STATE BANK OF INDIA"Credit growth tepid due to slack corp demand" – Excerpts from an interview with Arundhati Bhattacharya,

Chairman, State Bank of India. – (FE Aug 12, 2015 p 10)

"No plan to merge credit card arm: SBI" – State Bank of India has ruled out merging its credit cardsubsidiary into the bank or buying out its partner GE that has decided to exit the joint venture. We are notlooking at buying out GE Capital from our credit card JV nor merging it with the bank. We are scouting for anew partner, who can buy their 40 per cent stake in SBI Card, according to V G Kannan, managing directorand group executive for associate & subsidiaries, SBI. A report. – (FE Aug 13, 2015 p 10)

"SBI Q1 net rises 10% on healthy growth in non-interest income: Bad loans decline to Rs.56,420 crfrom Rs.60,434 cr a year ago" – Healthy fee income and a drop in bad loans helped the State Bank ofIndia, to post a 10 per cent rise in net profit in the April-June quarter at Rs.3,692 crore. Net interest income,the difference between interest earned and interest expended, increased marginally by 4 per cent, while non-interest income (including income from trading profits and fees) rose 19 per cent to Rs.5,088 crore. A report.– (HBL Aug 12, 2015 p 6)

"Slippages have come down substantially year-on-year: Arundhati Bhattacharya" – SBI chief saysSME is the only segment where bad loans have risen .State Bank of India Chairperson Arundhati Bhattacharyasaid the economy is slowly recovering and this is clear from the bank loan slippage numbers, which havebeen coming down over the last few quarters. A report. – (HBL Aug 12, 2015 p 6)

"State Bank of India: Unaudited financial results for the quarter ended 30th June 2015" – Anadvertisement feature. – (FE Aug 12, 2015 p 24)

Aggarwal, Sheetal – "SBI: Some surprises in the June quarter" – Management and analysts believegrowth in the near term will remain soft. An article. – (BS Aug 12, 2015 p 12)

Krishnan, Ravi – "SBI's June quarter results show economy hasn't turned the corner" – If State Bankof India (SBI) is a proxy for the Indian economy, then its June quarter results show that the economicrecovery still doesn't have legs. Loan growth at the nation's largest bank is tepid and asset quality is stillshaky. An article. – (Mint Aug 12, 2015 p 18)

– DATA MINING

"SBI uses big data mining to check defaults" – When State Bank of India (SBI) ran its newly acquireddata-mining software recently to check for purity of data, it made an interesting find -close to one croreaccountholders have not provided any nomination for their savings accounts. What is worse, over half ofthem are senior citizens. A report. – (TI Aug 8, 2015 p 18)

SYNDICATE BANK"Syndicate Bank appoints K R Murthy as CCSO" – Syndicate Bank has appointed K Rama Murthy as

chief customer service officer (Internal Ombudsman) for the Bank for a period of two years. He has assumedcharge on August 1 at Corporate Office in Bengaluru. – (FE Aug 7, 2015 p 10)

UCO BANK"UCO Bank's Q1 net slumps 51% to Rs.257 crore" – UCO Bank announced that its net profit for the

quarter ended June 30 more than halved to Rs.256.70 crore from Rs.521.40 for the year-ago period due to afall in its interest income and a steep rise in provisions as the lender asset quality deteriorated sharply. Thebank amount of gross non-performing assets (NPA) in absolute term rose to Rs.10,894.41 crore during theJune quarter from Rs.6,346.32 crore in the same period last fiscal. A report. – (FE Aug 9, 2015 p 12)

"UCO Bank: Reviewed financial results for the quarter ended 30th June 2015" – An advertisementfeature. – (BS Aug 10, 2015 p 14)

– 7 –

GREECEDixon, Hugo – "How to fix Greece's banks: The best option is for the European Stability Mechanism

to take direct stakes in the banks" – A direct recapitalisation would be preferable because it would cutthe link between the government and the country's lenders. Athens would no longer be able to meddle withtheir management. An article. – (FE Aug 13, 2015 p 8)

UK

– BANK OF ENGLAND

"The Bank of England signals no rises for now" – The monetary policy committee must focus on themedium term. An editorial. – (FT Aug 7, 2015 p 8)

USA

– INVESTMENT BANKS

Silverman, Gary – "Pain and suffering help US bankers rise above foreign rivals" – An article. – (FTAug 11, 2015 p 14)

BANK BOARD BUREAU"Banks Board Bureau to be set up soon" – The government will soon set up a body, Banks Board Bureau

(BBB), to recommend appointment of directors in public sector banks and advise on ways for raising fundsand mergers and acquisitions to the lenders. We are working all the things, Bank Board Bureau, appointmentof MD and CEO, all these things we are working on. Things will happen soon, according to Financial ServicesSecretary Hasmukh Adhia. – (IE Aug 10, 2015 p 13)

BANK BRANCHES"RBI allows banks to shift, merge or shut urban branches" – The Reserve Bank of India (RBI) allowed

banks to shift, merge or close branches in urban areas without seeking its prior permission. In a notificationon its website, RBI said banks can 'shift, merge or close all branches except rural branches and sole semi-urban branches at their discretion'. A report. – (Mint Aug 7, 2015 p 12)

BANK CAPITAL"Indian banks may have to raise capital to tackle bad loans: India ratings says Rs.93,000 cr required"

– The stress in the banking sector may require banks to raise up to Rs.1 lakh crore ($15.7 billion) of capitalover and above the Basel III requirement to manage the risks from their loan exposure to debt-laden companies,according to India Ratings and Research. Of that, public sector banks, which dominate India's banking sectorwith more than 70 per cent market share, will need Rs. 93,000 crore to deal with stressed loans, the creditagency said in a report. A report. – (HBL Aug 7, 2015 p 6)

– PUBLIC SECTOR BANKS

"Govt fund infusion in PSBs credit positive: Moody's" – The government's decision to infuse Rs.70,000crore in PSBs is a credit positive but a gamechanger as the amount is relatively small and they will have toaccess capital from markets to meet their needs, according to Moody's. – (FE Aug 7, 2015 p 10)

"Will govt funding turn things around for banks?" – The govt has agreed to infuse Rs.70,000 crore overfour years, but that may not be enough. Banks will have to fall back on the equity market for meeting theircapital requirements. A report. – (BS Aug 12, 2015 p 9)

Bandyopadhyay, Tamal – "Capital infusion a band-aid solution" – An article. – (Mint Aug 10, 2015 p 11)

Narasimhan, C R L – "Capitalising banks not enough" – Most of the NPAs have been caused byinfrastructure projects. These require a special package to come out of the woods. Normal turns in businesscycles are not going to help them. An article. – (H Aug 10, 2015 p 16)

– 8 –

BANK LENDING

– MSMEs

"Improve lending to MSMEs: RBI to banks" – Urging the banks to boost lending to small businesses, theReserve Bank of India said the micro, small and medium enterprises (MSME) segment was a safer bet thanlarge companies. RBI also said it has received seven applications for setting up the Trade ReceivablesDiscounting System and has started the due diligence process. – (Mint Aug 8, 2015 p 13)

– STEEL SECTOR

"Banks' loan exposure to stressed steel sector worrisome, says RBI Deputy Governor" – At Rs.3-lakh cr. it is the same as net sales of companies in the sector: S S Mundra. The problem often begins withbanks taking excessive exposure to a particular sector, and corporates increasing their leverage manifold andinvesting in creating excess capacities, according to S S Mundra. A report. – (HBL Aug 12, 2015 p 6)

BANKING TRANSACTIONS"Dual-authentication technology a boon for self-help groups" – A small tweak in technology has changed

the way women members of self-help groups (SHGs) in 50 villages of two blocks in Unnao district of UttarPradesh carry out banking transactions. Now, SHG members and joint signatories do not need to visit a bankbranch every time they need to deposit or withdraw cash. Under a pilot project of the National Bank forAgriculture and Rural Development (Nabard) in the district, women SHG members were appointed asbusiness correspondents or Bank Sakhis, armed with micro automated teller machines (ATMs) that weredual authentication-enabled. A report. – (Mint Aug 11, 2015 p 24)

CENTRAL BANKING"New headache for central bankers" – Just as Asia's central banks were bracing for an expected increase

in U.S. interest rates, China has given them another headache to deal with. The decision by the People'sBank of China to let its yuan weaken by the most in two decades is creating a bind for policy makersgrappling with slowing growth and sluggish exports. If they let their currencies follow to stay competitive,they risk reviving inflation and a rush of money exiting to the U.S. dollar. A report. – (FE Aug 13, 2015 p 10)

CUSTOMER COMPLAINTS

– KERALA

"SBI, associate banks top customer complaint chart in Kerala" – Top public sector lender SBI and itsassociate banks have topped the list of banks against whom maximum customer complaints have been filedwith the Banking Ombudsman in Kerala. Majority of complaints were filed against SBI group at 42.8 percent, followed by private sector banks (26.4 per cent), nationalised banks (23.5 per cent) and foreign banks(1 per cent), according to Banking Ombudsman for Kerala, Lakshadweep and Mahe, Uma Sankar. A report.– (FE Aug 13, 2015 p 3)

DIGITAL BANKINGBapat, Dhananjay – "Curbing cash in retail payments" – Electronic transactions will become popular if

consumers are made aware of the costs of cash payments. An article. – (Mint Jul 25, 2015 p 31)

FINANCIAL INCLUSION"Financial inclusion: A business proposition" – For financial inclusion to succeed, it must be a business

proposition for everyone involved and cannot be achieved by expecting the banking system to cross-subsidizeit, according to Usha Thorat, former deputy governor, Reserve Bank of India (RBI). In her speech, theformer RBI deputy governor pointed out that another important aspect of furthering financial inclusion wouldbe to bring in more competition in the space. The attention of the huge banks is not focused because there isso much else they have to do., RBI's effort to bring in small finance banks and payments banks also focuses

– 9 –

on competition in this space. Following Thorat's keynote address, a panel discussion took place among sevenprominent financial services experts at the Mint financial inclusion conclave 2015. Edited excerpts from thediscussion. – (Mint Jul 25, 2015 p 22)

FINANCIAL SECTOR LEGISLATIVE REFORMS"Can't run F1 with an ambassador; need a ferrari" – Edited excerpts from an interview with Justice B N

Srikrishna. – (ET Aug 12, 2015 p 16)

FOREIGN BANKING

– DEUTSCHE BANK

"Deutsche leads way in gender diversity here: Bank has effectively addressed the diversity issue byinducting six women in its executive committee" – Three years ago, Deutsche Bank India CEO RavneetGill faced the diversity challenge that haunts most Indian companies. About 48% of Deutsche Bank's global107,000 strong workforce were female, but there was only one woman in the India executive committee, thetop decision making body in the bank. Since then, Gill has managed to do what hardly any Indian companyhas done. Get five more top-notch women leaders onto the executive committee, raising top managementdiversity to 40% women. Other banks, even those led by Chanda Kochhar and Shikha Sharma, lag behind inthis. At Axis Bank for example, Sharma is the only woman on the executive committee. Similarly, Kochhar isthe only woman on the ICICI Bank board. A report. – (ET Aug 8, 2015 p 5)

– DOHA BANK

"Doha Bank plans to increase exposure in India" – Doha Bank is looking at increasing its exposure in theIndian market. The bank, which has got an exposure of $2.4 billion, is planning to take it to $5 billion in 2-3years, mostly in real estate, manufacturing, infrastructure and the service sector, according to R Seetharaman,Group CEO of the bank. – (H Aug 8, 2015 p 15)

– FIRSTRAND BANK

"FirstRand Bank sets sights on wholly owned India subsidiary" – FirstRand Bank Ltd, South Africalargest lender by market capitalization, is building a base to eventually start a wholly owned subsidiary inIndia, as it sees the country as a perfect hedge for its commodity-dependent home market. A report. – (MintAug 11, 2015 p 24)

INDIAN FINANCIAL CODEMehta, Pradeep S – "A financial idea whose time has come" – The Indian Financial Code has the potential

to modernise finance regulation in India; status-quoism shouldn't spoil it. An article. – (HBL Aug 7, 2015 p 9)

Tarapore, S S – "Murder in the cathedral" – In the drama surrounding financial sector legislation, thefinance ministry's all at sixes and sevens. An article. – (HBL Aug 7, 2015 p 8)

INTEREST RATES

– DEPOSITS

"RBI to banks: scrap additional interest on armed forces' deposits" – The Reserve Bank has directedbanks to withdraw the additional interest rate of 1.28 per cent they pay against armed forces' insurancedeposits. – (HBL Aug 7, 2015 p 6)

LOAN RESTRUCTURING

– RAJASTHAN STATE ELECTRICITY BOARD

"Govt, bankers conclude talks on debt recast for Rajasthan SEB" – The finance ministry and largebankers ended two days of discussions on a second debt restructuring package for the Rajasthan stateelectricity board (SEB) to cover short-term liabilities worth Rs.50,000 crore, according to two bankers withknowledge of the matter. A report. – (Mint Jul 25, 2015 p 10)

– 10 –

MOBILE BANKING"Coming soon: A Jurassic Park for banks that Ain't mobile enough: In India and China, 60-70% of

clients use m-banking: Report" – Driven by significantly high growth in mobile banking in developingnations such as India and China, a report published by consultancy agency KPMG in association with UBSEvidence Lab has claimed that mobile banking users would double globally in the next four years. The reportstates that banks which do not have a competitive mobile banking platform stand the risk of losing out itscustomers. By the term mobile banking, KPMG clarified that it does not only mean application-based bankingin smart phones, but message alerts as well. The report warns banks of malware and hacking. Hence, allbanks need to invest heavily in security of all mobile transactions. They need to strike a fine balance betweensecurity and a seamless user experience. A report. – (ET Aug 11, 2015 p 10)

"Global mobile banking users may double to 1.8 billion in four years" – The number of mobile bankingusers globally is forecasted to double to1.8 billion, over 25% of the world's population, in the next four years,according to research by KPMG using primary survey data supplied by UBS Evidence Lab. The GlobalMobile Banking Report stated that mobile banking users in India account for over 50% of its population atpresent. A report. – (BS Aug 11, 2015 p 6)

MONETARY POLICY"C Rangarajan favours RBI majority in MPC" – Joining the debate over the powers of Reserve Bank of

India (RBI) Governor in setting policy rate, bank's former head Dr C Rangarajan said the government can doaway with the veto power of Governor but the majority of members in the Monetary Policy Committeeshould be from the apex bank. – (IE Aug 10, 2015 p 13)

Bhalla, Surjit S – "Deconstructing RBI & CPI inflation" – RBI faults in using y-o-y data for predicting thecourse of inflation. An article. – (FE Aug 8, 2015 p 8)

Jha, Prem Shankar – "Forget inflation targeting: It has only managed to kill manufacturing andemployment growth" – The reason, as Stiglitz warned in 2008, is that in India, as in most developingcountries, inflation in both 2006-08 and 2009-11 came through international trade because of huge global oil,food and commodity price increases triggered by China voracious demand. By the same token, inflationmeasured by every price index except the cost of living, disappeared rapidly in the second half of 2014because of the severe, and deepening, slump in the Chinese economy. An article. – (IE Aug 11, 2015 p 10)

Pant, Devendra Kumar – "Expect at least one more rate cut this fiscal" – But that will depend on marketbehaviour post-US monetary tightening. Loosening purse: Private final consumption expenditure may grow12 per cent in 2015-16, according to an RBI survey. An article. – (HBL Aug 10, 2015 p 11)

Persaud, Avinash – "The myths of inflation targeting" – India needs a seven-person monetary policycommittee that sets rates without adhering to an inflation target. An article. – (Mint Aug 11, 2015 p 31)

Rajadhyaksha, Niranjan – "Rate setting by committee" – How different would Indian monetary policyhave been if it had been set by an MPC since 2011? An article. – (Mint Aug 12, 2015 p 30)

– CENTRAL BANKING

Eichengreen, Barry – "Limits of macroprudential policy" – Adjusting interest rate should not jeopardize acentral bank's other key objective: achieving its inflation target. An article. – (Mint Aug 13, 2015 p 23)

– INDIAN FINANCIAL CODE

"Composition of monetary policy panel important" – Edited excerpts from a panel discussion withDr D Subbarao, former RBI Governor and Usha Thorat, former RBI Deputy Governor. – (Mint Aug 10,2015 p 21)

"Deal sealed with Reserve Bank: Finmin to seek cabinet nod for monetary panel: MPC expected tohave balanced representation from RBI and govt; no veto power for governor" – No veto, but acasting vote. That's what the Reserve Bank of India governor could have on the Monetary Policy Committee,according to the proposal that the finance ministry is readying to present to the Cabinet. This is based on an

– 11 –

understanding that the finance ministry has reached with RBI on the contours of the committee. OnceCabinet approves the plan, the government will move legislation in Parliament to amend the RBI Act to pavethe ground for the creation of the committee, setting in motion a key reform that was in Finance MinisterArun Jaitley's February Budget. A report. – (ET Aug 7, 2015 p 1)

"Monetary policy committee: Govt, RBI may settle on casting vote for Guv, 6-member panel" – TheCentre and the RBI are close to an agreement on the broad contours of the Monetary Policy Committee(MPC) - which will provide a leeway for the governor of the central bank to take a final call on settinginterest rates. According to officials aware of the latest round of talks between the finance ministry and theRBI, the proposal now being considered is to have three members from the central bank and three externalmembers with a casting vote for the governor in case there is a tie. A report. – (IE Aug 8, 2015 p 14)

Desai, Meghnad – "Getting monetary policy right: The vital thing is to have first-rate outsiders inthe MPC who can establish its reputation for rigorous work" – The British MPC has justified itsindependence by the quality of its work. It is the outcome which matters, not the rules and regulations of thestructure. An article. – (FE Aug 10, 2015 p 6)

Sharad Raghavan, T C A – "New financial commission: a faulty road map" – While countries in the Westare giving their central banks more authority and regulatory powers, India is proposing a system to reduce theRBI to a shadow of itself. Why destabilise a well-functioning system by sidelining an institution that has heldits own over 80 years? An article. – (H Aug 10, 2015 p 11)

MONETARY POLICY TOOL"Plans to use gold deposits as part of CRR, SLR shelved" – The government has dropped plans to utilise

gold mobilised under the proposed monetisation scheme for meeting the mandatory liquidity requirements forbanks, as it wants to avoid another confrontation with the Reserve Bank of India (RBI). A report. – (BS Aug11, 2015 p 6)

PAYMENTS BANKS"Lenders eye payments banks to reach remote areas: Commercial banks hope to use wide network

of payments banks such as telcos to offer services, products in remote areas" – Commercial banksare hoping to ride the coat tails of payments banks, which are expected to get permits to operate by the endof this month. While State Bank of India has tied up with Reliance Jio and Kotak Mahindra Bank Ltd withBharti Airtel Ltd, IndusInd Bank Ltd and IDBI Bank Ltd are talking to other firms that have applied tobecome payments banks. A report. – (Mint Aug 11, 2015 p 24)

PMJDY"Jan Dhan scheme: LPG subsidy transfer sees zero-balance a/cs drop below 50%: Of the 17.29

crore accounts opened since last August, 8 cr have no money" – The number of accounts with zerobalance under the Prime Minister's Jan Dhan Yojana (PMJDY) has dropped below 50 per cent, nearly a yearsince its launch. Bankers claim that the rollout of the Direct Benefit Transfer (DBT) scheme for LPG -where subsidies are directly paid into consumer bank accounts - have had a positive impact. According todata available on the PMJDY website, of the total number of accounts opened under the scheme, zero-balance accounts have declined to 46.48 per cent as on July 29 from 76.02 per cent as on September-end2014. A report. – (HBL Aug 11, 2015 p 6)

– CORPORATION BANK

"Jan Dhan: number of zero-balance a/cs has come down" – The percentage of zero-balance accountsopened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) is coming down in Corporation Bank, accordingto S R Bansal, Chairman and Managing Director of the bank. He said that the percentage of zero balanceaccounts has come down from 31.89 per cent in the fourth quarter of 2014-15 to 27.76 per cent in the firstquarter of 2015-16. A report. – (HBL Aug 8, 2015 p 14)

– 12 –

PUBLIC SECTOR BANKS"With backs to the Great Wall, PSBs have no place to hide" – Indian banks fear the devaluation of

Chinese yuan by 3.5% could aggravate their already bruised balance sheets as the most fragile of thesectors, iron and steel, could be worst hit with dumping from China even though the government has raisedimport duty. While imports get cheaper, India's exporters, already grappling with an overvalued rupee, willattract more competition in global markets. In terms of the real effective exchange rate, the rupee is overvaluedabout 10%. – (ET Aug 13, 2015 p 9)

Rodrigues, Ryan Maxim – "Transform them" – With rising NPAs, public sector banks remain starved forcapital. Instead of continuously eroding the value of our PSU banks, the government ought to let its holdingdrop steadily, in the process transforming our legacy banks into world class institutions. An article. – (BI(976) Aug 3, 2015 p 65)

RECOVERY OF LOANS

– NON-PERFORMING ASSETS

"Banks for asset sale at Adhunik Power: Ask it to dispose of Jharkhand thermal unit" – Bankers arepushing the debt-laden Adhunik Power and Natural Resources to sell its 540 MW thermal power plant inJharkhand, a senior banker with knowledge of the discussions. We have asked the management of AdhunikPower to look for a buyer for the plant since the firm's financials are very weak, according to the banker. Areport. – (FE Aug 11, 2015 pp 1, 2)

STRATEGIC DEBT RESTRUCTURING"Move aimed at reducing bad loans: Debt to equity: Lanco lenders to take over teesta: Bankers to

convert part of the Rs.2,400-cr dues of hydro power unit to 51% equity" – Lenders to Lanco TeestaHydro Power will convert part of their Rs.2,400-crore outstanding loans to the company into 51% equity inthe most significant such takeover since the Reserve Bank of India allowed lenders to do so when borrowersfall behind on repayments. The measure, which gives bankers an upper hand against truant borrowers, isaimed at helping lenders find buyers for stressed assets. A report. – (ET Aug 10, 2015 p 1)

TRADE RECEIVABLES DISCOUNTING SYSTEM"Seven banks apply for TReDS: RBI" – The Reserve Bank of India said that it has received seven applications

from banks for a Trade Receivables Discounting System (TReDS). We are setting up an exchange-basedtrading platform to facilitate financing of bills raised by such small entities to corporate and other buyers,including government departments and PSUs, according to S S Mundra, Deputy Governor, RBI. – (BS Aug8, 2015 p 3)

RBI CIRCULARS"Auction of Government of India Dated Securities" – (RBI Circular RBI/2015-2016/150 Ref. No. IDMD/

280/08.02.032/2015-16 dated 10.08.2015)

"Conduct of Government Business by Agency Banks - Payment of Agency Commission" – (RBICircular RBI/2015-2016/153 DGBA.GAD.No. 617/31.12.010(C)/2015-16 dated 13.08.2015)

"Exim Bank's GoI supported Line of Credit of $6.20 million to Myanma Foreign Trade Bank" – (RBICircular RBI/2015-2016/151 A.P.(DIR Series) Circular No.8 dated 13.08.2015)

"Union Budget - 2015-16 Interest Subvention Scheme" – (RBI Circular RBI/2015-2016/152FIDD.No.FSD.BC.59/05.04.02/2015-16 dated 13.08.2015)

– 13 –

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTURAL EXPORTS"Agri exports up, realisation down" – The fall in global commodity prices may have helped ease the pressure

on government finances, but it has taken a toll on the country's exports, shipments of farm items and processedfoods not excluded. Export of agricultural produce and processed foods, which had seen a phenomenal risefor a few years to FY14, shrank 4% in FY15 thanks to huge declines reported in the third and fourth quartersof the year and plunged even more sharply (23%) in the first quarter of this fiscal. A report. – (FE Aug 7,2015 pp 1, 2)

AGRICULTURAL PRICE POLICYTripathi, Ashutosh Kumar – "A policy failure in pulses: The criteria for fixing MSP of pulses should

be sensitive to prevailing market prices" – The agricultural price policy, which aimed at providing aremunerative and stable price environment to farmers through MSPs and obligatory procurement bygovernment agencies, has helped India overcome massive food shortages to emerge as a net exporter offood. An article. – (FE Aug 7, 2015 p 9)

RURAL ECONOMY

– FOREIGN EXCHANGE RATESingh, Sandeep – "Currency effect on rural economy: exchange rates and the rural economy" – Does

the ongoing turbulence in global currency markets matter to the lay folk in Tinsukia, Chikmagalur orMuzaffarnagar? Well, they do, more so in a context where Indian agri-exports are already taking a huge hit,thanks to the currencies of major competitors falling much more against the US dollar than the rupee, allowingthem to quote lower prices for everything from sugar and wheat to beef and dairy products. The rupee'srelative strength vis-à-vis the dollar has eroded India's price competitiveness, reflected in farm exports registeringa 24 per cent drop during April-June over the same quarter of last year. It translates into loss of rural incomes,including through lower price realisations on account of reduced export demand and also increased vulnerabilityto imports. These effects could be magnified in the coming days, following China's move to devalue the Yuan,setting the stage for competitive currency depreciations - a path India cannot easily embark upon. An article.– (IE Aug 13, 2015 p 7)

RURAL EMPLOYMENT

– MGNREGATiwari, Ruhi – "MGNREGA reduces poverty, finds new study" – MGNREGA has contributed to almost

a third of the poverty reduction in India between 2004-05 and 2011-12. About 14 million persons would havebecame poor if the programme, which promises 100 days of wage employment every year to each ruralhousehold, was not there, says a new study. An article. – (IE Aug 13, 2015 p 7)

RURAL YOUTHSud, Surinder – "Bringing the youth back into agriculture" – It is a matter of worry that in a farm-based

economy like India, rural youth are shirking agriculture to migrate to cities for better career opportunities. Anew scheme, if implemented properly, can arrest this trend. An article. – (BS Aug 11, 2015 p 8)

INDUSTRY"Industrial output rose at 4-month high rate of 3.8% in June: growth not broad-based, economists

caution against any celebration yet" – Industrial production in June rose 3.8 per cent over a year ago - thehighest rate in four months - mainly pushed by the manufacturing sector. A recovery in the mining andelectricity sectors, though, remained elusive, showed official data released. Outlook: * Manufacturing PMIrose to a six-month high of 52.7 points in July, from 51.3 the previous month; * Indirect tax collections jumped39.1% in July; part of that came from a hike in excise duty on oil last year and a withdrawal of sops onautomobile and other companies from January this year. A report. – (BS Aug 13, 2015 pp 1, 4)

– 14 –

"Yuan & Angst: How 'currency wars IV' will impact Indian firms" – Mobiles and laptops could getcheaper but shareholders in public sector bank or metal company would be in for a rough ride. The yuandevaluation is a hammer blow for metal and commodity companies and which have funded most of theprojects as cheap Chinese imports will continue to flood the market and increase pressure on cash-strapped,debt-laden metal firms. Margins at Jaguar Land Rover, a Tata Motors subsidiary and major contributor to theIndian firm's revenue and profits, could fall as the ongoing Chinese slowdown crimps spending by consumers.Chinese tyre firms are already undercutting Indian tyre producers and that could continue as the yuan fallsagainst the dollar and the rupee making imports cheaper. A report. – (ET Aug 13, 2015 p 9)

BONDS MARKETIyer, Aparna – "Bonds Market: Not the first choice just yet The biggest stumbling block to boosting

liquidity is that insurance companies and pension funds hold on till maturity" – An article. – (FE Aug10, 2015 p 11)

MUTUAL FUNDS"Simpler KYC can help create an equity culture: Mutual funds say more skin in the game and greater

investor engagement is the way forward" – The past year has been good for the mutual fund (MF)sector, with equity folios regaining the 40 million mark and assets under management (AUM) at a recordRs.13 lakh crore. Can it continue the growth spiral? A panel of chief executives from seven leading fundhouses that got together, at the Business Standard Fund Cafe 2015, were confident the growth could besustained. In fact, they were unanimous that assets would grow to Rs.20 lakh crore in the next three years .Areport. – (BS Aug 13, 2015 Pt. II p 2)

NATIONAL HOUSING BANK"National Housing Bank: Financial results for the year ended 30th June, 2015" – An advertisement

feature. – (BS Aug 13, 2015 p 3)

INTERNATIONAL ECONOMICS"OECD projects stable growth path for India: China, Brazil to see a slowdown" – India is expected to

witness 'stable growth momentum' while mixed trends are anticipated in other major developing and developedcountries, according to the Paris-based think tank OECD. China as well as Brazil are projected to see a lossin growth momentum, according to the Organisation for Economic Cooperation and Development (OECD).A report. – (HBL Aug 11, 2015 p 4)

CHINA"China under pressure to stimulate its economy: Producer prices hit near six-year low in July, exports

tumble 8.3%" – In line with the sluggish economy, annual consumer inflation remained muted at 1.6%despite surging pork prices, in line with forecasts and slightly higher than June's 1.4%. A report. – (FE Aug10, 2015 p 4)

– CURRENCY DEVALUATION

"China devalues its currency due to economic slowdown" – As China contends with an economic slowdownand a stock market slump, the authorities sharply devalued the country's currency, the renminbi, a move thatcould raise geopolitical tensions and weigh on growth elsewhere. The central bank set the official value ofthe renminbi nearly 2 per cent weaker against the dollar. The devaluation is the largest since China's modernexchange-rate system was introduced at the start of 1994. A report. – (BS Aug 12, 2015 p 6)

– RENMINBI

"China devaluation raises spectre of currency wars" – Beijing's attempt to deal with a slowdown mayhave a spillover effect. An editorial. – (FT Aug 12, 2015 p 8)

– 15 –

"China seeks to calm global nerves over renminbi fall" – The People's Bank of China sought to dispelfears of a prolonged fall in the renminbi. The currency fell sharply for a second consecutive day, spreadingalarm in global markets. The renminbi decline to a four-year low weighed on equities and commodities, asfears grew that it could presage a global economic slowdown. The S&P 500 dropped 1 per cent to brieflyturn negative for the year before steadying, while the FTSE Eurofirst 300 fell 2.7 per cent and stock marketsslid across Asia. China decision to tolerate a weaker currency has fanned fears that its economy, long anengine of global growth, is slowing much faster than thought. A report. – (FT Aug 13, 2015 p 1)

"IMF cautiously welcomes China currency move: Renminbi pricing regime endorsed but alert flaggedover implementation" – The International Monetary Fund has offered a cautious endorsement of China'smove to let the market play a greater role in setting the value of its currency, signalling the step could helpBeijing bid to win much-prized reserve currency status for the renminbi alongside the dollar, euro, yen andsterling. A report. – (FT Aug 13, 2015 p 3)

"Yuan wildfire singes rupee and markets: Re plummets to 2-yr low & stocks tumble as China'scentral bank pushes yuan further down, triggering fears of a selloff" – The rupee slid to its weakest intwo years as Asian currencies were dragged down by China's central bank pushing the yuan down evenfurther overnight after its surprise devaluation. Indian stocks fell in concert with global markets as China'sefforts to shore up its faltering economy inflicted widespread damage. A report. – (ET Aug 13, 2015 p 1)

CURRENCY WARSRangan, M C Govardhana – "Whose war is it anyway? Dollar Vs Yuan Vs Euro..." – China's devaluation

of its currency Yuan by 3.5% in two days brings to fore the 'Currency Wars' theory put forth by Americanlawyer James Rickards in a 2011 book. 'Three super currencies the dollar, the euro, and the yuan issued bythe three largest economies in the world are the superpowers in a new currency war, Currency War III,which began in 2010 as a consequence of the 2007 depression. The main battle lines being drawn are adollar-yuan theatre across the Pacific, a dollar-euro theatre across the Atlantic, and a euro-yuan theatre inthe Eurasian landmass,' wrote Rickards. ET looks at all the three wars in the past century. An article.– (ET Aug 13, 2015 p 9)

FOREIGN DIRECT INVESTMENT"India among top 10 in FDI inflows" – India, however, fell one place to 7th in a survey for the most promising

investment destinations for the period 2014-16 according to the World Investment Report 2015 released bythe UNCTAD. A report. – (Mint Jul 25, 2015 p 6)

FUND MANAGEMENT"Global fund management" – A weekly review. – (FT Aug 10, 2015 Supl. pp 1-20)

INTERNATIONAL RESERVE CURRENCY

– RENMINBI

"A middle way to manage the renminbi's rise" – The decision on China's reserve currency status shouldnot be fudged. An editorial. – (FT Aug 6, 2015 p 8)

LABOUR & PERSONNEL MANAGEMENT

HUMAN RESOURCE MANAGEMENTUshasri, T S – "HR: The dual burden" – How does HR manage to be an ally of the business as well as a

champion of the people? An article. – (ET Aug 11, 2015 p 7)

– 16 –

PROVIDENT FUND"PF body to invest Rs.5,000 cr in equity market via SBI MF: Returns will be higher than the current

8.5%, says Labour Minister" – For the first time in its 64-year history, the Employees Provident FundOrganisation will invest in the equity market by putting in Rs.5,000 crore in the Nifty and Sensex ETFs(Exchange Traded Fund) of SBI Mutual Fund. Starting with an initial allocation of five per cent of its annualincremental flow of Rs.1-1.5 lakh crore, the EPFO will invest more into equity if the returns are satisfactory.A report. – (HBL Aug 7, 2015 p 1)

MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITYRangan, Kasturi and Chase, Lisa and Others – "The truth about CSR: Most of these programmes

aren't strategic - and that's OK" – Most companies have long practiced some form of corporate socialand environmental responsibility with the broad goal, simply, of contributing to the well-being of the communitiesand society they affect and on which they depend. But there is increasing pressure to dress up CSR as abusiness discipline and demand that every initiative deliver business results. That is asking too much of CSRand distracts from what must be its main goal: to align a company social and environmental activities with itsbusiness purpose and values. An article. – (BusT 24(16) Aug 3, 2015 pp 100-108)

LEADERSHIP"Leaders do not look back, only ahead" – Excerpts from an interview with Eddie Chandhok, President,

Global Delivery Organisation, Infogain. Great leaders take risks and do not care about the consequences....They need to create an environment where folks can afford to set ambitious goals without worrying about theconsequences of failure. – (HT Aug 13, 2015 p 17)

MISCELLANEOUS"Super-rich population in India rises 17% in FY15" – Growing opportunities in e-commerce, a rising stock

market and an optimistic economic outlook have helped the number of ultra-high networth households (UHNHs)in India grow 17 per cent in FY15. In the current financial year, the number of families with net assets(excluding residence) of more than Rs.25 crore was around 137,100, against 117,000 a year back, accordingto Kotak Wealth Management's annual wealth report. By 2020, there will be 3.48 lakh families with netassets of over Rs.25 crore, says Kotak Wealth Management's annual wealth survey. A report. – (BS Aug 12,2015 p 20)

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