Volume XXX Number 52 September 28, 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 14

D. INDUSTRY 15

E. SMALL SCALE INDUSTRY 15

F. INTERNATIONAL ECONOMICS 16

G. LABOUR & PERSONNEL MANAGEMENT 16

H. MANAGEMENT 17

I. MISCELLANEOUS 17

– 1 –

BANKERS' BRIEF Vol. XXX No. 52September 28, 2015

ECONOMY"ADB lowers FY16 growth forecast to 7.4%: Slashes FY17 forecast to 7.8%" – The Asian Development

Bank (ADB) lowered India's economic growth forecast to 7.4% for the current fiscal from its earlier estimateof 7.8%, citing weak demand and reform delays. Economic slowdown in industrial countries, weak monsoon,and stalled action on some key structural reforms will see India's growth for the current fiscal year fall shortof earlier estimates, ADB said in a report. – (FE Sep 23, 2015 p 2)

"CAD to be around 1.5% of GDP this fiscal: RBI" – The RBI Deputy Governor Urjit Patel said the centralbank expects current account deficit around 1.5 per cent of GDP in the current fiscal. This year, our currentaccount deficit would be in the region of 1.5 per cent of GDP. A report. – (FE Sep 18, 2015 p 3)

"Economy doesn't need another stimulus, says CEA Subramanian: Despite poor rainfall, export slump,growth pegged at over 8%" – India does not need further fiscal stimulus to revive the economy, despiterecord low inflation and growth seen at the lower end of an 8.1-8.5 per cent target this financial year,according to Arvind Subramanian, Chief Economic Advisor. A report. – (HBL Sep 24, 2015 p 1)

"Going beyond quick fixes: RBI governor's reminder appropriate and timely" – An editorial.– (BS Sep 21, 2015 p 9)

"India needs investment in infrastructure" – Edited excerpts from an interview with Arun Jaitley, FinanceMinister. – (Mint Sep 21, 2015 p 11)

"SBI Composite Index hints at pick-up in growth; optimistic on road sector: Ends at 4-month high of53.9; suggests moderate growth" – The yearly SBI Composite Index reading for September 2015 hascome in at a four-month high of 53.9, suggesting continued pick-up in economic momentum going forward.Last month, the index was at 53.4. – (HBL Sep 23, 2015 p 10)

Bhanumurthy, N R – "Is India staring at deflation?" – India is experiencing disinflation, not deflation. It istime to replace the wholesale price index with a producer price index to avoid further confusion. An article.– (IE Sep 24, 2015 p 11)

Bijal, Pradip – "Moving towards the 8%-plus growth era" – If India has to grow at a faster pace, we haveto break into the ongoing and disruptive changes in a globalised and interconnected world. We have correctlyidentified the initiatives for growth - such as Digital India, Smart Cities, changes in labour legislation etc. - andif these steps are implemented anywhere near the projected targets, India would be the fastest growing largeemerging market in 2015 itself. An article. – (FE Sep 22, 2015 p 7)

Chibber, Ajay – "Opportunity to make up for lost time" – India's economic team must get less conservativeand improve co-ordination. An article. – (BS Sep 23, 2015 p 9)

Kapoor, Rana – "Re-energising the India growth story" – Right balance of fiscal and monetary policymeasures with sustained economic reforms can make it happen. Here is a guide. An article. – (HBL Sep 19,2015 p 8)

Kohli, Renu – "India's investment slowdown: Fresh RBI data on private corporate investment raisesquestions on potential output" – The advent of the global financial crisis in 2008 has seen the reductionof potential output in many countries and from diverse sources, including increase in unemployment levelsand demographic changes (aging populations). It appears that India remained fairly immune to this trend untilFY11, but has probably suffered a similar reduction in its potential growth capacity. An article. – (FE Sep 18,2015 p 6)

Sinha, Sumant – "Three steps to firewall the Indian economy from Fed rate hikes and the comingglobal storm" – It is best not to delude ourselves into believing our growth numbers of 7% or thereabouts.Large tracts of the economy are in very poor shape. More needs to be done faster. An article. – (TI Sep 22,2015 p 12)

– 2 –

COMPETITION COMMISSION OF INDIA"PSU banks have stuck to the same deposit rate" – An interview with Ashok Chawla, Chairman, Competition

Commission of India. Flat rate despite deregulation, state-owned lenders continue to offer identical returnson savings accounts. – (HT Sep 21, 2015 p 12)

EMPLOYMENT"Hiring activity up 13% in August: survey: Banking, financial services sector logs highest growth;

Hyderabad tops cities" – In what can be seen as a reason for optimism among job seekers, hiring activityin August increased 13 per cent over the year-ago period, a survey by Naukri.com shows. According to theNaukri Job Speak Index for last month, banking and financial services recorded the maximum increase, of 26per cent, in hiring activity, followed by healthcare, pharmaceuticals, software, telecom, and media &entertainment. A report. – (HBL Sep 22, 2015 p 4)

FINANCIAL DEVELOPMENTSingh, Nirvikar – "Benchmarking India's financial development" – India's failure to create effective

markets for short-term financing of its SMEs stands out as a major barrier to growth. An article. – (FE Sep23, 2015 p 6)

FOREIGN EXCHANGE RESERVES"Forex reserves go up by $2.35 billion in Sept" – After falling for two straight weeks, India's foreign

exchange reserves rose by $2.35 billion in the week ended September 11 to $351.38 billion, data from theReserve Bank of India showed. RBI's dollar purchases from the spot market too have reduced off late as itsbulletin showed that the central bank bought only $149 million in July, far lower than previous months.– (FE Sep 19, 2015 p 8)

GSTDatar, Arvind and Vaitheeswaran, K – "GST's seven deadly defects: Government should abandon it,

work towards a unified Central levy instead" – The proposed GST will make imports more competitive.The complex regulatory and tax laws and rampant corruption at each stage make manufacturing in India anactivity only for the brave. If IGST on imports is available as a credit to a trader as against the existingsystem, which does not allow countervailing duty and special additional duty credits, imported goods will geta competitive advantage, seriously sabotaging the Make in India initiative. An article. – (ÏE Sep 19, 2015 p 10)

PUBLIC DEBT"Public debt rises 3.5% in April-June quarter" – Government's total debt increased by 3.5 per cent in the

April-June period of current fiscal compared to the preceding quarter. The public debt (excluding liabilitiesunder the 'Public Account') of the central government provisionally increased by 3.5 per cent in the firstquarter of FY 2016 on quarter-on- quarter basis, according to a Finance Ministry statement. – (ET Sep 18,2015 p 9)

BANKING

GENERAL"New paradigms in banking: challenges & opportunities" – A commercial feature. – (BS Sep 24,

2015 p 17)

Merchant, Krishna – "Is there more pain for the banking sector?" – An article. – (Mint Sep 22,2015 p 18)

– 3 –

AXIS BANK

– CORPORATE SOCIAL RESPONSIBILITY"Axis fixes focus on livelihoods" – Edited excerpts from an interview with Shikha Sharma, MD and CEO of

Axis Bank. – (Mint Sep 22, 2015 p 14)

BANDHAN BANK"Bandhan adds 500,000 new customers since start" – Less than a month after converting into a universal

bank from a microfinance institution, Bandhan Bank has got about 500,000 new customers. It began operationsas a bank on August 23, with a customer base of 7.8 million (mn). This is now 8.3 mn. A report. – (BS Sep19, 2015 p 3)

BANK OF BARODA"BoB bags First Prize under Rajbhasha Kirti Puraskar Scheme" – Bank of Baroda has been awarded

with the First Prize under All India Rajbhasha Kirti Puraskar Scheme of Govt. of India for outstandingperformance in Official Language Implementation under the category of nationalized banks in linguisticregion 'B', for the year 2014-15. – (ET Sep 21, 2015 p 4)

BANK OF MAHARASHTRA"Bank of Maharashtra keen to expand operations in North India: Sees demand for credit picking up

soon" – Bank of Maharashtra wants to expand its business in the North, according to its Executive DirectorR K Gupta. We already have a pan-India presence. We have a branch in every State. However, in the Northwe are not that active as we could have been. We now want to expand in the North and grow. A report.– (HBL Sep 19, 2015 p 5)

CANARA BANK"Canara Bank gets 2nd prize for Rajbhasha Kirti Pursakar" – Canara Bank has been awarded 2nd prize

in region 'C' under Rajbhasha Kirti Pursakar2014-15. – (ET Sep 21, 2015 p 4)

DENA BANK"Dena Bank extends loan coverage" – Dena Bank has extended the loans, which are essentially meant for

funding the unfunded, to 9,128 borrowers amounting to Rs.166.54 crore since the scheme was launched inApril 2015, according to Ashwani Kumar, Chairman and Managing Director. Also he said the bank plans toarrange Special Credit Camps all over India from September 25 to October 2 to extend Mudra loans. It hasbeen assigned a target of Rs.605 crore by the Centre for financing under the Pradhan Mantri MUDRAYojana. – (HBL Sep 22, 2015 p 10)

FEDERAL BANK"Appointment: Ganesh Sankaran appointed Executive Director of Federal Bank" – Ganesh Sankaran

has taken charge as the ED in charge of Wholesale Banking of Federal Bank on 16th September 2015.– (ET Sep 21, 2015 p 4)

"Federal Bank bets big on network expansion, localised services: CASA share has improved to26% from 22%, supported by loyalty rewards on debit card" – Federal Bank's growing physicalpresence, away from its homeground in Kerala, has translated into more business from branches outside theState. The bank expanded its presence outside Kerala to 52 per cent of branches opened currently, from 42per cent in 2012. At present, 41 per cent of the total business comes from outside Kerala and the aim is todouble the market share in these geographies, according to K A Babu, Head - Retail Business. A report.– (HBL Sep 23, 2015 p 10)

"Federal Bank halves home, auto loan processing fees" – Federal Bank has announced a limited periodoffer to halve the processing fees for applications in the competitive home and car loans segments. Under thescheme, all the home and auto loan applications made till December 31 are being given a concession of 50per cent on the processing fee, the bank said in a statement. – (FE Sep 22, 2015 p 8)

– 4 –

HDFC BANK"HDFC Bank wants to find the right causes" – Edited excerpts from an interview with Paresh Sukthankar,

deputy managing director of HDFC Bank. He has a lot on his plate - one of the key items being corporatesocial responsibility (CSR) claiming its share of equal importance alongside other revenue-driven functions.– (Mint Sep 23, 2015 p 23)

ICICI BANK"Got an idea, but still a student? ICICI can help you start up" – Bank, which has tied up with 22 institutes

to fund student ideas, will own IPR for 3 years. A report. – (ET Sep 21, 2015 p 10)

IDBI BANK"IDBI Bank eyes development finance space in Africa, Gulf" – In what should further consolidate its

position as a development finance institution (DFI), public sector lender IDBI Bank is focusing on projectappraisal and advisory services, mainly for upcoming public-private partnership (PPP) projects. The bankwants to enter markets in African and Gulf countries by opening branches for its development financebusiness. We plan to grow on two pillars, development finance and commercial banking. Development financewill continue to have 70 per cent share in our business, while commercial banking is 30 per cent, according toKishor Kharat, MD and CEO, IDBI Bank. – (HBL Sep 22, 2015 p 10)

"IDBI Bank soars as Jaitley drops privatisation hint" – IDBI Bank rallied more than 16% on the back ofUnion finance minister Arun Jaitley comments in a television interview that the government was consideringprivatisation of the state-owned lender on the lines of Axis Bank. Unlike other PSUs, IDBI Bank came intoexistence through IDBI Act, 1964 (which was repealed in 2003). Hence, there is no obligation on govt to holda minimum of 51% stake specified for the PSU banks under the Banking Regulation Act. – (FE Sep 22, 2015 p 9)

"lDBI Bank bags Rajbhasha Kirti Puraskar" – Kishor Kharat, MD & CEO, lDBI Bank received theRajbhasha Kirti Puraskar from President of India Pranab Mukherjee. – (ET Sep 21, 2015 p 4)

IDFC BANK"IDFC Bank's senior bonds get AAA rating: Ind-Ra: rating reflects the new bank's 'robust credit

buffers'" – IDFC Bank's (IDFCB) Rs.42,200-crore senior bonds (to be transferred from IDFC) and theproposed Rs.10,000-crore senior infrastructure bonds have been assigned a 'Provisional IND AAA' rating,with a stable outlook, by India Ratings and Research (Ind-Ra). – (HBL Sep 22, 2015 p 10)

KARNATAKA BANK"Karnataka Bank Chairman to stay" – Ananthakrishna has been re-appointed non-executive Chairman of

Karnataka Bank. – (HBL Sep 23, 2015 p 10)

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

Kirti Shield competition for the outstanding performance in implementation of Official Language Policy inBank for the financial year 2014. – (ET Sep 21, 20145 p 4)

RESERVE BANK OF INDIA"Centre wants to tap central bank surplus to cover outgo" – Given the likely additional expenditure of

Rs.50,000-70,000 crore on salaries and pensions in FY17, the finance ministry wants the Reserve Bank ofIndia to transfer a record Rs.1 lakh crore from its surplus to the central exchequer. This would require theRBI to dip into its accumulated internal reserves for the first time, besides shifting the entire surplus incomein the current accounting year (July-June) to the Centre. A report. – (FE Sep 24, 2015 pp 1, 2)

– 5 –

STATE BANK OF INDIA"State Bank of India: Inaugurates official pages on Pinterest and Instagram" – Arundhati Bhattacharya,

Chairman, State Bank of India (SBI) inaugurated SBI's official pages on two new social media platforms,Pinterest and Instagram to connect and reach out to its valued customers. The function was also graced bythe senior management of SBI, comprising of MDs, DMDs and CGMs. – (FE Sep 22, 2015 p 17)

SYNDICATE BANK"Syndicate Bank gets 1st prize in Rajbhasha Kirti Puraskar" – Syndicate Bank adjudged first for receiving

Rajbhasha Kirti Puraskar for the Financial Year 2014-15 among nationalized banks and Financial Institutionsof Region 'C' for outstanding implementation in Official Language. – (ET Sep 21, 2015 p 4)

TAMILNAD MERCANTILE BANK"Even in tough times, we can grow at 14-15%" – Excerpts from an interview with Upendra Kamath, MD

& CEO of Tamilnad Mercantile Bank (TMB). – (HBL Sep 23, 2015 p 10)

UCO BANK"UCO Bank launches Mudra Card" – UCO Bank has launched the Mudra Card to meet the credit

requirements of micro and small enterprises. The card can be used for cash withdrawals from any ATM.Merchandise can also be purchased using POS machines. – (HBL Sep 22, 2015 p 10)

UNITED BANK OF INDIA"United Bank to raise Rs.200 cr by issuing Tier-I bonds" – United Bank of India has announced its plan

to mobilise Rs.200 crore via issue of additional Tier-I bonds. The bank will issue and allot via private placementrated, unsecured, non-convertible, perpetual, listed Basel-III compliant additional Tier-I bonds of face valueRs10 lakh each totalling to Rs.200 crore including oversubscription. The issue will open on 23 Sep and closeon 28 Sep 2015. – (FE Sep 22, 2015 p 9)

ASIA

– FINANCIAL ARCHITECTUREGokarn, Subir – "Shaping the Asian financial architecture: To make this initiative work, a genuine

sense of collective ownership is necessary" – An article. – (BS Sep 21, 2015 p 9)

USA

– FEDERAL RESERVE"Fed holds rates as global worries trump strengthening US growth" – The Federal Reserve held interest

rates at historic lows as concerns for an increasingly brittle global economy overshadowed evidence of aresilient US recovery. The US central bank maintained its 0 to 0.25 per cent target range for the federalfunds rate, ending weeks of feverish speculation over whether it would raise rates for the first time sincebefore the financial crisis. A report. – (FT Sep 18, 2015 p 1)

"Fed policy raised questions about its own reaction function: Jahangir Aziz" – An interview with JahangirAziz, Asia Economic Research, JP Morgan. He talks about the impact of the US Federal Reserve move onemerging markets. China will slow down the economy. That is what it has been doing for the past threeyears. – (HBL Sep 19, 2015 p 6)

Chakravarty, Manas – "Which message will markets take from Fed?" – An article. – (Mint Sep 21, 2015pp 1, 2)

Crook, Clive – "The Fed should raise its inflation target: Delaying the first interest-rate increase toolong would force the Fed to tighten more sharply later on" – If the Fed doesn't want to publish aforecast showing inflation rising above 2 percent, it should perhaps acknowledge that its target is indeed aceiling. And then, having done that, it should perhaps raise the ceiling to 3 percent. An article. – (FE Sep 22,2015 p 6)

– 6 –

Desai, Meghnad – "Risk aversion is risky: By postponing the rate hike, the Fed has enhanced thedangers of another crash" – In the long-run, we may all be better off but there is no doubt that the short-run prospect is one of recession. If the Fed continues to be risk averse, it may drag other central banks withit. An article. – (FE Sep 21, 2015 p 6)

Krishnan, Aarati – "When Fed plays the waiting game" – With the Fed shifting goalposts, financial marketsare likely to factor in the rate hike risk and move on. It time India did too. An article. – (HBL Sep 19, 2015 p 8)

Luce, Edward – "The Fed's big messaging problem" – An article. – (FT Sep 21, 2015 p 11)

Narasimhan, C R L – "Federal Reserve's inaction is big news" – It is certainly an unprecedented situation;one the U.S. policy makers have wanted to begin unwinding just as soon as they are satisfied that theeconomy is strong enough. An article. – (H Sep 21, 2015 p 16)

ASSET RECONSTRUCTION COMPANIES"ARCs to play limited role in clearing banks bad loans: India Ratings says rising acquisition cost,

capital constraints are key factors" – Due to rising acquisition costs and capital constraints, assetreconstruction companies (ARCs) will at best have the ability to purchase non-performing assets (NPAs)worth around Rs.1.20 lakh crore, which is a mere 17 per cent of the total stressed assets in the system,according to India Ratings and Research (Ind-Ra). The rating agency observed that ARCs will play a limitedrole in absorbing NPAs of banks. Banks' stressed loans (NPAs + restructured assets) as of March-end 2015stood at 11.1 per cent of the outstanding credit of Rs.65.25 lakh crore, while all ARCs put together have acapital base of just Rs.4,000 crore. A report. – (HBL Sep 24, 2015 p 10)

– EDELWEISS ARC

"Subordinate debt should be treated as Tier-2 capital: Raising funds a big challenge, cash flow mismatchcommon: Edelweiss ARC chief" – Excerpts from an interview with Siby Antony, MD & CEO, EdelweissARC. He says that even normal delinquency levels of 1-2 per cent of loans will itself provide enough businessfor ARCs in future. Providing sufficient capital for this will be a challenge until all ARCs develop a trackrecord and are able to tap the market. It true that banks know the customers better. But the difference is infocus. For banks, NPA is a by-product of their normal business. They should not use their bandwidth for this.They should sell it to a specialised agency that deals with it in a focused way. – (HBL Sep 24, 2015 p 10)

BANK CONSOLIDATION

– PUBLIC SECTOR BANKS

"Finmin seeks RBI view on road map for PSBs merger" – Heading for consolidation lack of enthusiasmon the part of banks may prompt govt to push for mergers as it looks to create stronger and specialized publicsector lenders. A report. – (ET Sep 21, 2015 p 11)

BANK FRAUDS

– CREDIT CARDS

"New system to counter credit card fraud" – US researchers develop method to read card informationusing magnetic field. Researchers have developed an inexpensive and secure method to prevent mass creditcard fraud, using existing magnetic card readers. A report. – (HBL Sep 23, 2015 p 10)

BANK LENDING

– USA

"Consumer lending: All credit to them" – Cheaper funding is not enough to induce banks to lend more. Anarticle. – (Eco 416(8957) Sep 26, 2015 p 67)

– 7 –

BANKING REGULATOR"Bad bank a bad idea for India, says Rajan" – Reserve Bank of India (RBI) governor Raghuram Rajan said

the concept of a good bank and bad bank may not be relevant for India since much of the assets backing thebanks loans are viable or can be made viable. The central bank governor also assuaged concerns the entry ofnew niche lenders such as payments and small finance banks would create unfair competition saying thesewere unfounded as the playing field for both new entrants and incumbents was level. A report. – (FE Sep 19,2015 pp 1, 2)

BANKS' VALUATIONS"Banks' slowing credit growth may not influence valuations" – In this analysis of banks' valuations versus

growth and profitability, large-cap banks have been considered - State Bank of India (SBI), ICICI Bank Ltd,HDFC Bank Ltd, Axis Bank Ltd, Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank,Union Bank of India, IndusInd Bank Ltd and Yes Bank Ltd. There are five private-sector banks and sixpublic sector banks in this sample. These banks accounted for about 64% of the banking sector's credit infinancial year (FY) 2015. These 11 banks have an 89% weightage in the CNX Bank Nifty. A report. – (MintSep 21, 2015 p 16)

BASE RATES

– STATE BANK OF MYSORE

"State Bank of Mysore cuts base rate by 0.10%" – State Bank of Mysore (SBM), an associate of SBI, cutthe minimum lending rate by 0.10 per cent to 9.90 per cent. The bank has revised downward the base ratefrom 10 per cent to 9.90 per cent to be effective from today, SBM said in a BSE filing. – (FE Sep 22,2015 p 9)

CENTRAL BANKING"Breaking free from the Federal Reserve's spell" – The world's central banks should not wait for cues

from the US. An editorial. – (FT Sep 19, 2015 p 8)

COOPERATIVE BANKING

– BHARAT CO-OPERATIVE BANK

"Bharat Co-op bank bags prestigious award" – The Bharat Co-operative Bank (Mumbai) Ltd has been conferredwith 1st prize from 'The Brihan Mumbai Nagari Sahakari Bank's Association Ltd.' Mumbai for its overallBest Performance in the category of Co-operative banks having deposits over Rs.1500 Crore continuouslyfor the third time and also for presenting an excellent Annual Report. – (ET Sep 21, 2015 p 4)

– MAHARASHTRA

"Maharashtra govt orders probe into books of 30 coop banks" – The Maharashtra government hasordered a probe into alleged financial mismanagement over the last 15 years at 30 cooperative banks in thestate. The government has also sought to fix responsibility for the financial losses incurred by these banks. Areport. – (FE Sep 18, 2015 p 2)

CURRENCY NOTES"RBI dispatches Rs. 1 notes to public sector banks: But there aren't many of them" – The much-

awaited new Rs.1 notes have finally reached banks for distribution. The Reserve Bank of India (RBI) sentthe notes to various public sector banks a couple of days ago through its various regional offices. – (HBL Sep22, 2015 p 10)

"RBI introduces new features in Rs.500, Rs.1,000 notes" – The new features will not only aid visuallyimpaired people in easy identification of banknotes but also secure these against counterfeiting. A report.– (FE Sep 23, 2015 p 8)

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CUSTOMERS' IDENTITY"RBI to seek clarification from Supreme Court on usage of Aadhaar" – The Reserve Bank of India

(RBI) is planning to seek a clarification from the Supreme Court on whether banks can use customers'Aadhaar numbers as an acceptable form of identity. – (Mint Sep 23, 2015 p 5)

DIGITAL CURRENCYThomas, Tanya – "What is a bitcoin, after all?" – An article. – (HBL Sep 24, 2015 p 9)

DIGITAL WALLETSAnand, Nupur – "Cashing in on virtual wallets" – Armed with cutting-edge technology, these are changing

the way you transact; banks are trying to catch up. An article. – (BS Sep 18, 2015 p 8)Sharma, Vijay Shekhar – "Digital wallets have overtaken use of credit cards online" – Today, a mobile

wallet can be used to pay for a cab to work, buy coffee, pick up a quick lunch or shop for clothes. The entireambit of offline and online transactions which one needs to make in a regular week can now be coveredunder this cashless form of payment. An article. – (BS Sep 18, 2015 p 8)

EDUCATION LOANS

– KARNATAKA"Banks disburse only 4 p.c. of educational loans" – Higher education may be getting pricier by the year

and the number of students seeking educational loans on the rise. But banks in Karnataka have disbursed just4 per cent of educational loans targeted for this financial year. Disbursement to the education sector is justRs.142 crore in the first quarter, against the annual target of Rs.2,989 crore. Out of the 4,034 educational loanapplications, banks have cleared only 134. The remaining applications are pending with the banks, accordingto Chief Minister Siddaramaiah. – (H Sep 19, 2015 p 7)

FINANCIAL INCLUSION"New-age banking increases the ambit of financial inclusion" – View of CII and Deloitte. A report.

– (Mint Sep 22, 2015 p 20)Venkatesh, Latha – "Inclusion puzzle set to be cracked soon" – An article. – (Mint Sep 23, 2015 p 29)

– INTERNATIONAL FINANCE CORPORATION"IFC has stakes in over half the small finance banks" – The World Bank's investment arm International

Finance Corporation (IFC) has invested $145 million (around Rs.950 crore) in six of the 10 companies thathave been granted small finance bank licences with a collective client base of nine million. IFC said smallfinance banks were a major step to promoting financial inclusion and it saw the initiative as part of concertedpolicy efforts to meet the needs of small businesses, the unorganised sector, low income households, farmers,and the migrant workforce. A report. – (BS Sep 22, 2015 p 4)

FINANCIAL SECTORSahay, Ratna – "Throwing sand in the wheels of finance" – With sensible regulation, financial development

can spur growth without compromising stability. An article. – (HBL Sep 23, 2015 p 8)

FOREIGN BANKING

– CITIBANK"Citibank platform for 'financially progressive': The banking platform called 'Citi Priority' is designed

for customers that have a relationship value of Rs.15 lakh with Citibank" – Citibank India launcheda new retail banking platform called 'Citi Priority' that aims to cater to the financially progressive consumersin the country. The bank said the platform is designed for customers that have a relationship value of Rs.15lakh with Citibank. This would include the overall relationship that a customer has with the bank, includingloans, investments, bank balances etc., it said. A report. – (FE Sep 24, 2015 p 8)

– 9 –

– STANDARD CHARTERED

"Weather-beaten StanChart to sell Iconic Kolkata office for Rs.110 cr: Bank to sell more primeproperties in the city" – It is when the banker comes calling, that people decide to sell off their familysilver to pay off debt. But here is a bank that is putting its crown jewel on the bloc, along with several othermeasures, to pull itself out of the financial mess it has fallen into. The oldest foreign bank in India, StandardChartered Bank, has decided to sell its 19 Netaji Subhas Road office, a veritable 80,000 sq ft space built in the19th century, for about Rs.110 crore and move to a cheaper location to rationalise cost as it battles a difficulttime. A report. – (ET Sep 23, 2015 p 14)

GENDER BALANCE"Women would prove to be better CFOs, says RBI Dy Guv" – Men may dominate the world of finance

and hold the key to treasury in the corporate world, but women are more suited for the job than men,according to S S Mundra, deputy governor at the Reserve Bank of India. Despite their stellar academicperformances, women CFOs are missing from action. Men are result oriented while women are processoriented. Truth is process is as important as the result. Hence, I believe, women would prove to be betterCFOs. The stamp of approval by a top executive from the regulator should enhance the case of those whopitch for better gender balance in work place. A report. – (ET Sep 24, 2015 p 12)

GOLD MONETISATION SCHEME"Gold deposits without known income sources will attract tax: Govt says existing tax regulations for

gold holdings will apply to the gold monetization scheme as well" – Gold deposits over 500gm, notexplained by known source of income, will attract income tax under the gold monetization scheme, thegovernment in an internal note dated 15 September that was released on September 18, 2015. – (Mint Sep19, 2015 p 3)

– GOLD DEPOSIT SCHEME

Bandyopadhyay, Tamal – "Will the gold schemes glitter?" – An article. – (Mint Sep 21, 2015 p 6)

IIBF"Knowledge is power in the banking sector: Dr J N Misra" – Indian Institute of Banking and Finance

(IIBF) came into existence on 30th April 1928 and was set up primarily for the purpose of educating Indianbankers joining the banking industry. Dr J N Misra, CEO discusses the role of IIBF in developing competentprofessionals in the banking and finance field. An advertorial. – (BS Sep 23, 2015 p 3)

INVESTMENTS"Banks can buy up to 10% equity without prior RBI approval" – Banks having a capital adequacy ratio

of at least 10 per cent, besides being profitable in the last fiscal, do not require prior approval from theReserve Bank of India (RBI) for equity investments in financial institutions, stock exchanges, depositoriesand the like in case the investment is less than 10 per cent of the investee company equity. A report. – (HBLSep 22, 2015 p 10)

JOINT LENDERS' FORUM"RBI: JLF to be streamlined further" – Reserve Bank Deputy Governor S S Mundra has reiterated the

central bank's resolve to further fine-tune the recently-introduced Joint Lenders Forum (JLF) to make themechanism more effective and transparent. – (HBL Sep 24, 2015 p 10)

LOAN RESTRUCTURING"Rs.2,400-cr loan recast of 2 firms fails: Hanung Toys & Textiles and Core Education Technologies

fail to meet restructuring conditions" – Loan recast of two companies - Hanung Toys & Textiles andCore Education Technologies - worth Rs.2,400 crore has failed, bankers aware of the development told FE.While Hanung Toys' debt restructuring package was worth Rs.1,800 crore, Core Education's package wasworth Rs.600 crore. A report. – (FE Sep 23, 2015 p 8)

– 10 –

MICROFINANCE"Micro lenders turn the page with banking licences" – Five years after microfinance groups faced a crisis

of confidence, their business model is seen as strong enough by RBI to grant banking licences to nine ofthem. A report. – (BS Sep 24, 2015 p 9)

"Small finance banks will primarily focus on financial literacy" – Edited excerpts from an interview withRatna Vishwanathan, Chief executive officer, Microfinance Institutions Network. She said while mostmicrofinance institutions (MFIs) with foreign equity holding are confident of reducing it to 40 per cent in thenext 18 months as asked by the Reserve Bank of India, thinks it still remains a challenge. She says MFIN willbring all regulated institutions in the microfinance eco-system onto a single platform. – (BS Sep 22, 2015 p 4)

– SKS MICROFINANCE

"Not getting a small finance bank licence is not a setback" – Edited excerpts from an interview with DilliRaj, President of SKS Microfinance. – (Mint Sep 24, 2015 p 21)

MOBILE BANKING

– FINANCIAL INCLUSION

"Mobile banking can push forward financial inclusion" – View of Bank of America Merrill Lynch. Mobilephone and Internet penetration is set to grow manifold across the world. Especially in India, this presents anopportunity for the banking sector in the country to expand, besides giving a push to financial inclusion,according to a report by Bank of America Merrill Lynch, Mobile Banking: Explosive growth to change India'spayments markets. A report. – (Mint Sep 23, 2015 p 20)

MONETARY POLICY"Amber light for the RBI" – The U.S. Federal Reserve's decision last week to leave interest rates unchanged

offers an amber signal for Reserve Bank of India Governor Raghuram Rajan as he prepares to make thefourth bi-monthly monetary policy statement for the fiscal year on September 29. An editorial. – (H Sep 21,2015 p 10)

"A blessing from the Fed" – The road's clear for the RBI to reduce interest rates. An editorial. – (HBL Sep19, 2015 p 8)

"Conditions favourable for rate cut, but it's RBI's call: Sinha" – Ball in Rajan's court as global economytries to find a balance between slowdown in China and growth picking up in US, it's for the RBI to analysethe factors and decide on the policy: Minister. A report. – (ET Sep 19, 2015 p 4)

"Fed move opens up possibilities of an Indian rate cut: RBI can now gain assurance, says ManishiRaychaudhuri of BNP Paribas" – An interview with Manishi Raychaudhuri, Asia Pacific Equity Strategistat BNP Paribas. He said our estimate is that the Fed rate lift up will begin sometime in December. – (HBLSep 19, 2015 p 6)

"Fed status quo good move, RBI to take call on rate cut: Das: Yellen's decision to hold rates givespolicy adjustment room to EMs" – With the US Fed's decision to maintain status quo in monetary policycreating the buzz that the Reserve Bank of India would indeed cut rates later this month, economic affairssecretary Shaktikanta Das said the Fed's move was positive for India, adding that RBI will take a consideredview on whether to lower interest rates or not. US has taken note of the global concern that these are volatiletimes and there should be coordinated action with regard to monetary policy. A report. – (FE Sep 19, 2015 p 2)

"FM: Won't influence RBI for low rates" – Pitching for an interest rate cut to boost growth, finance ministerArun Jaitley said everyone - including policy planners - wants lower rates, but emphasised he would not liketo influence RBI's decision on the issue. A report. – (TI Sep 19, 2015 p 17)

"Growth will be short-lived if it too fast: Rajan: Improving business environment through reforms isthe key, says RBI Governor" – With the US Federal Reserve holding interest rates, India Inc and theCentre have increased pressure on the Reserve Bank of India to cut rates. RBI Governor Raghuram Rajan

– 11 –

sought to stave off the same by saying that the focus should be on improving the business environment as away to drive growth rather than extending stimulus and rate cuts. While our policy will accommodate, substantialreforms are needed to create an environment for businesses. We want to keep inflation low even in thefuture. We need moderate nominal interest rates that satisfy not just the vocal borrowers but also the silentsavers. A report. – (HBL Sep 19, 2015 p 1)

"More room for RBI to cut policy rate, says D&B" – Weak demand and low inflation levels have providedmore room to the Reserve Bank of India (RBI) to cut the key rate further in the upcoming monetary policyreview later this month according to a report by Research firm Dun & Bradstreet. – (ET Sep 18, 2015 p 9)

"RBI might cut repo by 25 bps this month: Poll: Easing inflation, Fed's decision to hold rate pavesway" – With the US Federal Reserve deciding to keep interest rates unchanged, quite a few feel the stage isset for Reserve Bank of India to reduce the repo rate by at least 25 basis points in the next monetary policyreview. According to a Business Standard poll of 10 experts, nine felt the central bank would cut the rate by25 bps in the review slated for September 29. Bankers and economists said three conditions set by RBI in theearlier review for a further cut had largely been met. A report. – (BS Sep 19, 2015 p 3)

"RBI thinks long term, stays cautious despite growing rate-cut clamour" – Though the Reserve Bankof India is expected to cut interest rates next week by a quarter percent to a four-year low, officials sayconcerns over prices make it likely to resist political pressure for significant easing in the coming months.Policy fix: * RBI expected to cut rates by 25 basis points on Tuesday; * Govt, business fear real interest ratesstill too high; * RBI wants stable inflation before significant easing; * RBI also anxious to avoid boom-bustover-reactions; * Rajan last week said he intended to control inflation 'not just today, but well into the future'.A report. – (FE Sep 24, 2015 p 8)

"SBI, YES Bank expect 25-bp rate cut in next policy review" – With the US central bank (FederalReserve) keeping status quo on interest rates, at least two major banks expect the Indian central bank(Reserve Bank of India, RBI) to cut interest rate by 25 basis points (bps) in its policy review meeting onSeptember 29. I believe the RBI would reduce rate in the coming monetary policy. The expectation is a 25-basis-point cut, according to Rajnish Kumar, managing director (compliance and risk) at the State Bank ofIndia. YES Bank also expects a similar rate cut in the upcoming RBI policy. A report. – (BS Sep 19, 2015 p 3)

Chinoy, Sajjid – "The Fed, RBI and duck hunting" – An article. – (Mint Sep 23, 2015 p 13)

Datta, Devangshu – "Rate cut on the anvil?" – Debt funds might be back in focus once the cycle of ratecuts resumes. An article. – (BS Sep 21, 2015 p 11)

Oswal, Motilal – "Done with Fed, over to RBI!" – An article. – (ET Sep 19, 2015 p 6)

Rao, Radhika – "Why RBI has good reasons to cut rates" – Easing inflation and abating external risksprovide enough headroom. An article. – (HBL Sep 21, 2015 p 11)

Roy, Siddhartha – "A rate for revival" – An article. – (Mint Sep 24, 2015 p 6)

Takkar, Naresh – "Anticipated CPI inflation trajectory supports case for repo rate cut" – An article.– (BS Sep 23, 2015 p 4)

– UK

"Monetary policy: Repeat prescription: Weighing the economic benefits of low interest rates againstthe financial risks" – This was supposed to be the year when the Federal Reserve would raise interestrates, which have sat between zero and 0.25% since late 2008. Shortly after the Fed allowed rates to lift off,pundits presumed that the Bank of England, which since March 2009 has held its base rate at 0.5%, a three-century low, would follow. But on September 17th the Fed balked. Andrew Haldane, the Bank of Englandchief economist, has meanwhile been airing the prospect of a further cut instead of a rise. An article. – (Eco416(8957) Sep 26, 2015 pp 67-68)

– 12 –

MONETARY POLICY TRANSMISSION"Debt markets are eating your lunch, Rajan cautions banks: Nudges them to cut lending rates" –

Reserve Bank of India Governor Raghuram Rajan has asked banks to cut lending rates to prevent debtmarkets from eating into their business. The longer you (banks) stay with your current lending rates, the morethe markets are eating your lunch because more and more large corporations are borrowing from the market,issuing commercial paper rather than borrowing from the banks. A report. – (HBL Sep 19, 2015 p 5)

NON-PERFORMING ASSETS"Govt to tackle NPAs: Shaktikanta Das" – Expressing concern over mounting bad loans in the banking

sector, Economic Affairs Secretary Shaktikanta Das said the government is 'fully engaged' in resolving theissue. Some challenges still remain. The banking sector and NPAs are the challenges and government is fullyengaged on those issues. Gross Non Performing Assets (NPAs) of state-owned banks at the end of Marchquarter stood at 5.20 per cent. A report. – (Mint Sep 19, 2015 p 10)

– STATE BANK OF INDIA

"Stressed assets likely to come down: SBI" – State Bank of India (SBI) said stressed assets in the systemare likely to see a decline due to reforms in power distribution companies and pick up in rural power demand.With reforms initiated in the power distribution companies and pick up in the rural power demand, stressedassets in the system are likely to come down, according to Rajnish Kumar, MD (compliance and risk) of SBI.SBI also expects that asset quality in terms of slippages and recoveries in the current quarter ending September30 to be better than last quarter. A report. – (FE Sep 19, 2015 p 9)

PAYMENTS BANKS"Payments banks: It's no small change" – Payments banks will alter the way transactions are carried out

but they will complement banks, not compete with them. A report. – (FE Sep 21, 2015 p 11)

– PAYTM

"Paytm's payments bank by March" – Mobile payments and commerce company Paytm, which has receivedin-principle nod from the RBI to set up a payments bank, is planning to start the bank this fiscal year itself,according to founder and CEO Vijay Shekhar Sharma. – (HBL Sep 24, 2015 p 10)

– SMALL FINANCE BANKS

Bhakta, Pratik and Bhattacharya, Arka – "Payments and small banks: Greed & fear at play" – Financialinclusion may be the avowed intent, but enterprise and valuations will leave the lesser players nursing theirwounds. Old-world banks are worried about the latest onslaught even as those with deep pockets surgeahead. An article. – (ET Sep 23, 2015 p 14)

PUBLIC SECTOR BANKS"PSU banks lose ground in low-cost deposits: SBI sees 4-percentage point dip over2005-14 decade"

– Public sector banks have always enjoyed the people's trust. But going by data put out by the RBI, thisappears to be gradually changing. Their share of total deposits in the banking sector has dropped by 2percentage points over the last 10 years. And the bulk of this loss has been in low-cost demand deposits.While PSU banks still hold about three-fourth of all deposits, private sector banks have slowly gained marketshare thanks to their efficiency, service quality, retail push and use of technology. A report. – (HBL Sep 21,2015 p 1)

SMALL FINANCE BANKS"Banking on diversification: Small finance banks should help financial inclusion" – An editorial. – (BS

Sep 18, 2015 p 11)

"Big leap with small banks" – By granting a chunk of the small bank licences to microfinance players, theRBI has taken the Centre's financial inclusion drive a step further. An editorial. – (HBL Sep 21, 2015 p 14)

– 13 –

"Microfinance body hails nod for small finance banks: Eight out of 10 entities approved are microfinanceinstitutions" – The Microfinance Institutions Network (MFIN) has welcomed the RBI move to grant in-principle approval to 10 entities to start small finance banks. The self-regulatory organisation is particularlyenthused over the RBI move as eight of the 10 entities approved are microfinance institutions. – (HBL Sep21, 2015 p 16)

"Small banks mark big step for inclusion: The RBI must iron out regulatory wrinkles" – An editorial.– (ET Sep 18, 2015 p 10)

"Small banks, big change" – Niche and differentiated banking is the way ahead to deliver financial inclusion.An editorial. – (IE Sep 18, 2015 p 8)

Basu, Debashis – "Small banks, big legacy issues" – An article. – (BS Sep 21, 2015 p 9)

Roy, Subir – "Small banks can make history" – An article. – (BS Sep 23, 2015 p 9)

Titus, Mathew – "Let the branches bloom" – An article. – (ET Sep 18, 2015 p 10)

– EQUITAS HOLDINGS

"To run small bank, Equitas looks to pare foreign holding from 93% to below 50%" – Equitas Holdings,a Chennai-based micro-finance institution (MFI) that recently got an in-principle nod from the RBI to set upa small finance bank, will have to pare down foreign investment to less than 50% from 93%. To begin with,Equitas will merge its three subsidiaries - micro-finance, housing finance and non-banking finance company- into one entity. – (FE Sep 22, 2015 p 8)

– PAYMENTS BANKS

"Banking on inclusion: Unbanked at centre of RBI's new licensing regime" – An editorial. – (FE Sep18, 2015 p 6)

Sabnavis, Madan – "Advantage small banks" – While the concept of both payments banks and small bankswill be tested over time, the small banks, being already in the business of lending, would have a distinctcertainty in their operations. However, the fact that the small banks will now be regulated and have to lend tothe more vulnerable sections will ensure that they have to constantly be on guard when balancing their loanportfolios. An article. – (FE Sep 23, 2015 p 7)

STRATEGIC DEBT RESTRUCTURING"Banks take over Visa Steel by invoking SDR rules" – Visa Steel Ltd said that its lenders had decided to

convert debt into equity by invoking strategic debt restructuring (SDR) rules. Visa Steel Ltd has informedBSE that the lenders of the company, in its Joint Lenders Forum (JLF) meeting held on 22 September 2015,have decided to invoke strategic debt restructuring (SDR) pursuant to RBI (Reserve Bank of India) in circulardated 8 June 2015, according to the firm in a notice to the exchanges. A report. – (Mint Sep 24, 2015 p 8)

WILFUL DEFAULTER

– STATE BANK OF INDIA

"Wilful default: Blow to SBI as SC gives breather to KFA" – In a setback to the largest public sectorlender SBI, the Supreme Court allowed defunct Kingfisher Airlines (KFA) to make a representation beforethe bank's Grievance Redressal Committee through its lawyer in a Rs.2,290 crore wilful default case. SCallows KFA to make a representation before the bank's Grievance Redressal Committee in Rs.2,290 crorewilful default case. A report. – (FE Sep 19, 2015 p 9)

RBI CIRCULARS"Auction of Government of India Dated Securities" – (RBI Circular RBI/2015-2016/180 Ref. No.IDMD/

561/08.02.032/2015-16 dated 21.09.2015)

"Banknotes with new numbering pattern and special features for the visually impaired" – (RBI CircularRBI/2015-2016/188 DCM (Plg) No.G-6/1128/10.01.24/2015-16 dated 24.09.2015)

– 14 –

"Constitution of the Audit Committee of the Board" – (RBI Circular RBI/2015-2016/181 DBS.ARS.BC4/08.91.020/2015-16 dated 24.09.2015)

"Framework for Revitalising Distressed Assets in the Economy - Review of the Guidelines on JointLenders' Forum (JLF) and Corrective Action Plan (CAP)" – (RBI Circular RBI/2015-2016/182DBR.BP.BC.No.39/21.04.132/2015-16 dated 24.09.2015)

"Half yearly/Quarterly Review of Accounts of Public Sector Banks" – (RBI Circular RBI/2015-2016/186DBS. ARS.No. BC. 5/08.91.001/2015-16 dated 24.09.2015)

"Implementation of Section 51-A of Unlawful Activities Prevention Act (UAPA), 1967- Update datedSeptember 9, 2015 of Al-Qaida Sanctions List" – (RBI Circular RBI/2015-2016/179 DBR. AML. No.3906/14.06.001/2015-16 dated 18.09.2015)

"Opening of foreign currency accounts in India by ship-manning / crew-management agencies" –(RBI Circular RBI/2015-2016/184 A.P. (DIR Series) Circular No.15 dated 24.09.2015)

"Partial Credit Enhancement to Corporate Bonds" – (RBI Circular RBI/2015-2016/183 DBR.BP.BC.No.40/21.04.142/2015-16 dated 24.09.2015)

"Processing and settlement of import and export related payments facilitated by Online PaymentGateway Service Providers" – (RBI Circular RBI/2015-2016/185 A.P. (DIR Series) Circular No.16 dated24.09.2015)

"Prudential Norms on Change in Ownership of Borrowing Entities (Outside Strategic DebtRestructuring Scheme)" – (RBI Circular RBI/2015-2016/187 DBR.BP.BC.No.41/21.04.048/2015-16 dated24.09.2015)

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTURAL FINANCE

– KARNATAKA

"Fresh RBI guidelines on rescheduling of farm loans" – Reserve Bank of India has said farmers areeligible for rescheduling of loans in cases where crop loss is more than 33 per cent. It was 50 p.c. earlier. Therepayment period of restructured loans may vary depending on severity of calamity and its recurrence,extent of loss of economic assets and distress caused. Banks may allow a maximum repayment period of upto two years, including the moratorium period of 1 year, if the crop loss is between 33 p.c. and 50 p.c. If theloss is more, it may be extended to a maximum of 5 years, including moratorium period of 1 year. RBIregional director Eugene E. Karthak said RBI issued the fresh guidelines last month. Banks had beenempowered to decide on rescheduling. – (H Sep 19, 2015 p 7)

REGIONAL RURAL BANKS"Can RRBs stand up to their new rivals?: To assess their efficacy, RBI sends the Regional Rural

Banks a questionnaire" – The Reserve Bank of India (RBI) is examining the efficacy of Regional RuralBanks (RRBs), which will be up against tough competition from 23 new banks - two new private sectorbanks, 11 payments banks and 10 small finance banks - in a year or two. Expecting competition in the bankingspace to intensify further, the RBI has asked RRBs 18 questions. A report. – (HBL Sep 22, 2015 p 10)

RURAL DEVELOPMENTShukla, Rajesh – "Shrinking Bharat needs a new approach" – A multi-sectoral strategy would go a long

way in building bridges to the poorest rural communities in the remotest parts of the country. An article. – (FESep 18, 2015 p 7)

– 15 –

INDUSTRY

FINANCIAL MARKET

– REGULATORY CONVERGENCE

Ghosh, Nilanjan and Dey, Kushankur – "Opportunities and challenges of regulatory convergence inIndia's financial sector: The case of the SEBI-FMC merger" – Various opportunities accompany themerger of the Securities Exchange Board of India with the Forward Markets Commission, as announced inthe 2015-16 union budget. At the same time, important regulatory and developmental challenges have to beovercome for instilling efficiency in the market, along with promoting investor protection. Whether the mergeris the beginning of financial market regulatory convergence or merely a 'one-off' incident can only be knownwith developments over time. Similar types of opportunities and challenges may arise in generally adoptingregulatory convergence in India. An article. – (EPW 50(36) Sep 5, 2015 pp 64-70)

FOREIGN BORROWINGS"RBI to make it easy for firms to borrow long-term funds: List of recognised lenders to be expanded"

– The Reserve Bank of India is planning to ease norms for long-term borrowings in foreign currency forIndian companies. This could include allowing them to incur higher outgo by way of fee and interest forraising the funds. Opening up: * Firms to be allowed to incur higher interest in raising funds; * Real EstateInvestment Trusts will also be allowed to tap rupee-denominated ECBs; * Funds can be raise through ECBsfor all purposes except for a small negative list; * The lenders list will be expanded to include overseasregulated financial entities and pension funds, among others; * Participation of Indian banks as ECB lenderswill be subject to RBI norms. A report. – (HBL Sep 24, 2015 p 1)

INFRASTRUCTURE FINANCERoy, Subhasish – "Fuelling infra-led growth" – To remove India's economy from the cobweb of lower

growth path, there is a need for driving higher investment in the sector. We can set up an InfrastructureDevelopment Fund, where the corpus can be raised from disinvestments, taxing the agricultural income ofrich farmers, raising more tax revenues from the services sector and floating long-term infrastructure bondsby offering a low coupon rate of, say, 5% per annum with no upper limit for investment or disclosure ofsources of income. An article. – (FE Sep 22, 2015 p 7)

SMALL SCALE INDUSTRY

ENTREPRENEURSHIP"Fostering entrepreneurship" – A report. – (ET Sep 23, 2015 p 7)

Siddhu, Rahul – "Rise of India startups" – Despite all odds, Indians startup companies are not far behindtheir Western counterparts. A study has revealed that IITians are among the leading founders of startups inthe US. An article. – (ET Sep 23, 2015 p 7)

MSMEs"Norms for MSMEs to be eased" – The Ministry for Micro, Small and Medium Enterprises (MSME) plans

to introduce a single page registration form and do away with the experience clause under the CompulsoryPublic Procurement Order for the sector. Speaking at the an event organised by the Federation of IndianChambers of Commerce and Industry, Anup Pujari, Secretary, Ministry of MSME, said the move will easenorms for doing business for the MSME sector. A report. – (HBL Sep 19, 2015 p 4)

"Small businesses are central to India's growth story" – Excerpts from an interview with Kalraj Mishra,Union Minister, MSME. – (HT Sep 22, 2015 p 13)

– 16 –

– FINANCE

"Lending to MSMEs makes strong biz sense, says Rajan" – RBI Governor Raghuram Rajan said lendingto Micro Small and Medium Enterprises (MSME) entrepreneurs particularly in the e-commerce space makesa strong business sense for the banks given the changing dynamics of the economy. A report. – (IE Sep 23,2015 p 14)

– MUDRA

"Mudra to get a push from PM: Modi is scheduled to launch a mega credit campaign from Jharkhandon October 2" – Mudra Yojana, implemented early this year to help small business units, will soon get a leg-up from Prime Minister Narendra Modi, who is scheduled to launch a mega credit campaign to promote theinitiative. He will launch the state-level campaign in Dumka, Jharkhand, on October 2. So far, as per thegovernment data, against a target of Rs.1,22,118 crore for fiscal 2015-16, Rs.22,572 crore has been disbursedas on September 15 to 33.90 lakh borrowers. A report. – (IE Sep 24, 2015 p 14)

SIDBI"SIDBI receives Rajbhasha Kirti Puraskar from the President" – SIDBI won a second prize under

Rajbhasha Kirti Puraskar scheme for outstanding implementation of the Official Language Policy of theGovt. of India during 2014-15. – (ET Sep 21, 2015 p 4)

INTERNATIONAL ECONOMICS

CHINA"China PMI slumps to six and a half year low...: Hobbled by excess capacity, weak demand" – A

private Chinese manufacturing gauge fell to the lowest in six and a half years, underscoring challenges facingthe economy as its old growth engines splutter. A report. – (FE Sep 24, 2015 pp 1, 2)

Pilling, David – "China's economic facts and fakes can be hard to tell apart" – An article. – (FT Sep 17,2015 p 9)

Wolf, Martin – "A new Chinese export - recession risk" – An article. – (FT Sep 16, 2015 p 9)

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Sep 21, 2015 Supl. pp 1-20)

LABOUR & PERSONNEL MANAGEMENT

HUMAN RESOURCE MANAGEMENT"Employer brand courtesy: HR" – Employer branding is the buzzword in organisations these days and has

caught significant momentum since it first emerged as a recognisable term in the early 1990s. For manyyears, it was largely restricted to recruitment advertising. Over time, this consistent management of thecompany's employer brand image has extended well beyond paid advertising to a much wider range ofcommunication content. Developing a strong employer brand may require compelling communication, but itultimately depends on the quality of the employment experience. This means that leading companies pay asmuch attention to ensuring their people management practices align with their employer brand proposition astheir recruitment marketing. At Ascent Transformation Series, we sought some answers from experts on therole HR plays in creating an employer brand. – (TI Sep 23, 2015 p 13)

Tanwar, Sangeeta – "Welcome back" – Faced with a smaller talent pool and high cost of hiring, organisationsare throwing their doors open to boomerang employees - those who left the company and now want to comeback. An article. – (BS Sep 21, 2015 p 14)

– 17 –

NEGOTIATION SKILLSShonk, Katie – "Negotiation training that unites heart and mind" – We can get beyond simply focusing on

what we're going to say next. An article. – (H Sep 23, 2015 p 19)

MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITY"Corporate social responsibility" – A commercial feature. – (BS Sep 23, 2015 p 11)

"Education, poverty eradication draw most firms' CSR funds: Apart from these, ensuringenvironmental sustainability is another cause that firms have focused on" – The government's effortsto reduce illiteracy, poverty and environmental damage have received a shot in the arm with companiesfocusing their corporate social responsibility (CSR) spending on similar activities. A report. – (Mint Sep 24,2015 p 20)

"Mahindra rides the CSR route to better communities" – Edited excerpts from an interview with RajeevDubey, group president (human resources and corporate services) and CEO (after-market sector) at Mahindraand Mahindra Ltd. – (Mint Sep 22, 2015 p 15)

"Social development: Energy sector is the highest spender on CSR" – The energy sector was followed byfinancial services and IT when it came to firms that committed to CSR. A report. – (Mint Sep 22, 2015 p 15)

"Year one of CSR decoded" – From sectors which spent the most, to companies that came out on the top - adata-led analysis of how companies responded to new rules for disbursing their corporate social responsibilityfunds. A report. – (Mint Sep 22, 2015 p 14)

– MAHARASHTRA

"Maharashtra emerges as CSR hub" – Strong presence of manufacturing units and company HQs see mostfirms deploying CSR funds in the state. A report. – (Mint Sep 23, 2015 p 22)

LEADERSHIP"Make mistakes, but learn from them" – Excerpts from an interview with Pavel Maco, CEO, Home Credit

India Finance Pvt. Ltd. – (HT Sep 24, 2015 p 16)

Banerjee, Sujaya – "Developing effective leaders" – Building robust leadership pipelines involves solvingthe succession management dilemma. An article. – (ET Sep 22, 2015 p 6)

MISCELLANEOUS"Basu proves Pythagorean Theorem: Economist finds another way to prove what's known for 2,600

yrs" – World Bank economist Kaushik Basu has proved that when it comes to right triangles, a2 + b2 =c2.This merits the brie fest of footnotes in the annals of mathematics, because the Greek mathematician Pythagorasproved the same theorem around 500 B.C. Every kid in geometry class learns that the sum of the squares ofthe lengths of the sides of a right triangle equals the square of the length of the hypotenuse. This is noFermat's Last Theorem. Basu, a Cornell University economist, demonstrated his proof in a paper entitled 'ANew and Very Long Proof of the Pythagoras Theorem By Way of a Proposition on Isosceles Triangles.' Areport. – (TI Sep 19, 2015 p 17)

"Global innovation index 2015 report: India ranks 81 among 141 countries: Behind Brazil, Chinaand South Africa; Switzerland tops the list" – India ranks 81 out of 141 countries on the Global InnovationIndex (GII) 2015, well behind middle income countries such as Brazil, China and South Africa. But, in theCentral and Southern Asia region, it retains its top stop in the regional ranking, followed by Kazakhstan andSri Lanka. Globally, Switzerland, followed by the United Kingdom, Sweden, Netherlands and the US areranked as the most innovative countries in the world. A report. – (BS Sep 18, 2015 p 9)

– 18 –

"If the Richest person gave their money to the poor" – The index shows how the net worth of eachcountry's wealthiest person compares to the livelihood of his fellow countrymen by calculating the lumpsumin dollars each person living in poverty would get if the assets of the richest citizen were liquidated andredistributed. The Bloomberg Billionaire Index and the CIA World Factbook were the reference points. Thenet worth of Bill Gates would turn into a one-off payment of $1,736 if distributed to the neediest 15 per centof Americans. But India's large population means Mukesh Ambani's $19.2-billion net worth amounts to thesmallest payout to the poor of any other country analysed. His net worth is 13.6 million times more than thegross domestic product of his fellow Indians. Still, with 30 per cent of the country destitute, his riches wouldresult in each poor person getting $59, enough for 118 basic meals priced at Rs.35 (50 cents) and consistingof rice, dal, two vegetables, one pickle and three chapattis. A report. – (ET Sep 23, 2015 p 13)

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