Volume XXXII Number 20 February 13, 2017

Weeklies

BI – Business India

BusW – Business World

BusT – Business Today

CMar – Capital Market

EPW – Economic and Political Weekly

SE – Southern Economist

Eco – Economist

For(Asia) – Fortune AsiaCI – Corporate India

Newspapers

BS – Business Standard

ET – Economic Times

FE – Financial Express

FT – Financial Times

H – Hindu

HBL – Hindu Business Line

HT – Hindustan Times

IE – Indian Express

TI – Times of India

Mint – Mint

Classifications

Economy Banking Agriculture & Rural Development Industry Small Scale Industry

International Economics Labour & Personnel Management Management Miscellaneous Books

CONTENTS

A. ECONOMY 1

B. BANKING 4

C. INDUSTRY 17

D. INTERNATIONAL ECONOMICS 17

E. LABOUR & PERSONNEL MANAGEMENT 17

– 1 –

BANKERS' BRIEF Vol. XXXII No. 20 February 13, 2017

ECONOMY"Economy to grow more than 7% next fiscal: Das" – Stepping up the growth pitch, economic affairs

secretary Shaktikanta Das expressed confidence that the economy will grow upwards of 7 per cent nextfiscal. For this year's GDP growth, we have to wait till March-end. But next year, it will be upwards of 7 percent. A report. – (FE Feb 5, 2017 p 3)

"India economy could pip U.S. on PPP by 2040" – The global economic order is expected to shift fromadvanced to emerging economies over the next few decades, and by 2040 India could edge past the U.S. tobecome the world's second largest economy in purchasing power parity (PPP) terms, according to a report.China has already overtaken the U.S. to become the world largest economy in PPP terms, while Indiacurrently stands in third place and is projected to overtake the U.S. by 2040 in PPP terms, according to PwC.– (H Feb 8, 2017 p 16)

"India's GDP growth likely at 7.1% in 2017-18: HSBC" – India is expected to clock a GDP growth of 7.1per cent in 2017-18 as the country gets sufficiently remonetised and the schemes in the Budget play asupportive role, according to a HSBC report. – (FE Feb 3, 2017 p 4)

"The RBI stands diminished after demonetisation: Former finance minister P Chidambaram says theModi government virtually directed the central bank to accept its hasty suggestion to ban high-value notes" – Excerpts from an interview with P Chidambaram, former Finance Minister. How do theyempower the poor? Close to 15 crore people are casual, manual labourers. About 25 crore people are self-employed and depend on a daily income. They have impoverished 40 crore people in those six weeks followingdemonetisation. – (HBL Feb 9, 2017 p 9)

"Sanyal is principal economic adviser" – The Appointments Committee of the Cabinet (ACC) has appointedSanjeev Sanyal, noted economist and former managing director and global strategist at Deutsche Bank, asthe principal economic adviser in the department of economic affairs in the finance ministry. Sanyal is likelyto serve as the second in command in the economic division of the finance ministry currently led by the chiefeconomic adviser in the finance ministry Arvind Subramanian. Subramanian's three-year term expires inOctober this year. – (Mint Feb 4, 2017 p 2)

BUDGET 2017-18"Budget aims at fiscal improvement; debt a rating constraint: S&P" – Union Budget 2017-18 shows

India's commitment to improve fiscal performance but heavy debt burden and weak public finances remainkey rating constraints, according to S&P Global Ratings. A report. – (FE Feb 3, 2017 p 4)

"Budget focus is on consolidating schemes, investing in infra: New classifications to improve efficiencyand transparency of spending: Lavasa" – Excerpts from an interview with Ashok Lavasa, FinanceSecretary. – (HBL Feb 7, 2017 p 4)

"Budget projections are not over-optimistic: Economy set to grow upwards of 7% next fiscal, saysShaktikanta Das" – Excerpts from an interview with Shaktikanta Das, Economic Affairs Secretary. Hesaid our approach for food and fertiliser subsidies is to use DBT, make the disbursement more targeted andcut down the leakage. – (HBL Feb 3, 2017 p 6)

"Fiscal deficit kept at 3.2% considering needs for development" – Excerpts from an interview withAshok Lavasa, Finance Secretary. – (IE Feb 8, 2017 p 13)

"Govt committed to fiscal prudence, no giveaways bordering on populism" – Edited excerpts from aninterview with Shaktikanta Das, Economic Affairs Secretary. – (ET Feb 3, 2017 p 13)

"How many people withdraw Rs.1 lakh a month from savings accounts?" – Edited excerpts from aninterview with Shaktikanta Das, Economic Affairs Secretary. – (H Feb 4, 2017 p 15)

– 2 –

"Limited time window will keep electoral bonds from becoming a parallel currency" – Edited excerptsfrom an interview with Shaktikanta Das, Economic Affairs Secretary. – (IE Feb 7, 2017 p 13)

"Substantial number of schemes will be under DBT by FY18-end" – Edited excerpts from an interviewwith Ashok Lavasa, Finance Secretary. – (FE Feb 4, 2017 p 2)

"Survey has a bad bank idea, Govt may consider it: FM" – Finance Minister Arun Jaitley said that settingup a 'bad bank' could be one of the possible solutions to tackle the twin balance sheet problem of over-indebted corporates and banks laden with non-performing assets. The government, Jaitley said in a post-Budget interaction with industry chambers, will consider a suggestion in this year's Economic Survey to setup a Public Sector Asset Rehabilitation Agency (PARA) to deal with bad debts. He said the government willprovide banks more money if needed over and above Rs.10,000 crore provided in the Budget for 2017-18,which is in line with the Indradhanush roadmap for improving the health of public sector banks. A report.– (IE Feb 4, 2017 p 13)

"There has to be political will to tackle the NPA issue" – Edited excerpts from an interview with ArvindSubrahmanian, Chief Economic Adviser. – (BS Feb 4, 2017 p 4)

"We haven't factored note ban dividend in budget" – Edited excerpts from an interview with ShaktikantaDas, Economic Affairs Secretary. – (Mint Feb 3, 2017 p 7)

Acharya, Shankar – "A good Budget in difficult times" – Against a turbulent and uncertain background,the Budget 2017-18 hewed a steady, forward-looking course. An article. – (BS Feb 9, 2017 p 9)

Ahluwalia, Montek S – "Budget 2017: Hits and misses" – An article. – (Mint Feb 3, 2017 p 9)

Bhalla, Surjit S – "Budget 2017: Not business as usual" – The Budget has been extra-careful andconservative about the impact of DeMo on the economy. It is very likely that GDP growth for FY17 willclose in on a number above 7%. An article. – (FE Feb 4, 2017 p 8)

Ghosh, Chandra Shekhar – "A fine balance between fiscal discipline & inclusive growth" – Budget hasemphasised greater tax compliance and tax collection by bringing in more people in the tax net. An article.– (FE Feb 3, 2017 p 14)

Kapoor, Rana – "Budget will serve well to make growth recovery more sustainable" – An article.– (IE Feb 4, 2017 p 13)

Lokeshwarri S K – "Budget 2017: Sectors that standout: Consumption and infrastructure are thewinners" – An article. – (HBL Feb 6, 2017 p 2)

Nandi, Aurodeep – "Budget 2017: On the Edge with the Centre" – Is it a raw deal for states at a timethey may need fiscal support the most? An article. – (ET Feb 9, 2017 p 14)

Raj, Ganesh – "Budget 2017: A balancing act without straying from path of fiscal consolidation"– An article. – (FE Feb 4, 2017 p 15)

Rangarajan, C – "A well-intentioned Budget" – The Budget, based on credible revenue estimates, seeks toboost investment and demand. But implementation is the key. An article. – (HBL Feb 6, 2017 p 14)

Rao, M Govinda – "Budget 2017: Reforms take a back seat: It has done precious little to rationaliseexplicit subsidies" – It is in allocating resources for public investment where the finance minister has beenstingy. Increase in public spending on infrastructure would have helped to crowd in private investment. Anarticle. – (FE Feb 7, 2017 p 8)

Rastogi, Anita – "A balanced bag with no big announcements" – An article. – (FE Feb 4, 2017 p 15)

Vanvari, Girish – "Union Budget 2017 positive and progressive" – An article. – (FE Feb 4, 2017 p 15)

– BANK CAPITAL

Sabnavis, Madan – "The Budget is not really very different from last year's" – It has been silent in away on further bank capitalisation as the PSBs are still trying to get back on their feet. An article. – (FE Feb9, 2017 p 9)

– 3 –

Vageesh, N S – "Budget keeps a tight leash on capital allocation: The strategy seems to be that ofmaking banks work for their capital" – An article. – (HBL Feb 3, 2017 p 10)

– DIGITAL ECONOMY

Reddy, R Shashank – "A credible digital push by Arun Jaitley" – The 2017 budget signifies a concertedeffort to strengthen the structural underpinnings of the digital economy. An article. – (Mint Feb 3, 25017 p 15)

– NPAs

"Failing the bank" – Union budget has underlined government listlessness and lack of urgency in addressingcrisis of bad loans. An editorial. – (IE Feb 6, 2017 p 10)

– STRUCTURAL REFORMS

Rajaraman, Indira – "The Union Budget and the need for structural reforms" – The budget has donesome things right but there is a limit to what can be achieved through stroke-of-the-pen reforms. An article.– (Mint Feb 3, 2017 p 16)

ECONOMIC SURVEY 2016-17Jaffrelot, Christophe – "Looking after leaping" – Economic Survey's hesitations are both refreshing and

disturbing. An article. – (IE Feb 9, 2017 p 12)

FINANCIAL YEAR"No need to change financial year: Acharya panel" – A panel constituted to examine the feasibility of

changing the starting date of financial year (FY) in India has recommended continuance of the current April-March format, as a change could lead to avoidable 'uncertainties' without much gain. – (FE Feb 9, 2017 p 1)

FOREIGN EXCHANGE RESERVES"Forex reserves up $782.7 mn to $361.5bn" – India's foreign exchange reserves rose by $782.7 million to

$361.557 billion in the week to January 27, helped by increase in foreign currency assets the Reserve Banksaid. In the previous week, the reserves had surged by $932.4 million to $360.775 billion. Foreign currencyassets a major component of the overall reserves, increased by $776.9 million to $339.211 billion in thereporting week. – (IE Feb 4, 2017 p 13)

GST"Low-rate GST. Parenting and punishment" – Vijay Kelkar, one of India most eminent economist and

policymaker, delivered the fifth C D Deshmukh Lecture organized by National Council of Applied EconomicResearch. Vijay Kelkar on why India should begin with a single low rate GST; why economic empowermentof mothers leads to children getting more rewards. A report. – (Mint Feb 4, 2017 p 6)

NRIs

– INVESTMENTS

"RBI allows NRIs to invest in exchange-traded derivatives" – Reserve Bank of India (RBI) allowednon-resident Indians (NRIs) to invest in exchange-traded currency derivatives (ETCD). A report. – (MintFeb 3, 2017 p 5)

SERVICES SECTOR"Services activity contracts for third straight month in Jan" – The services sector contracted for the third

consecutive month in January, as business flow failed to recover from the demonetisation impact, even asmuted inflationary pressure raised hopes for RBI remaining 'accommodative' in its rate review next week,

– 4 –

according to a monthly survey. The Nikkei India Services Purchasing Managers' Index (PMI), which tracksservices sector firms on a monthly basis, stood as 48.7 in January, as against 46.8 in December 2016. A scoreabove 50 denotes expansion and one below this level means contraction. A report. – (FE Feb 4, 2017 p 2)

TAXATION"Enforcing Rs.15-lakh cap on cash holding difficult; idea still being examined" – Edited excerpts from

an interview with Hasmukh Adhia, Revenue Secretary. – (IE Feb 3, 2017 p 13)

"We will look at the idea of cash transaction tax: Revenue secy" – Edited excerpts from an interviewwith Hasmukh Adhia, Revenue Secretary. – (ET Feb 4, 2017 p 7)

"With GST roll-out, we are cautious of indirect tax forecast for FY18: Services are likely to be taxedat a single rate, except some like transport: Revenue Secretary" – Excerpts from an interview withHasmukh Adhia, Revenue Secretary. He said the reason for projecting low growth rate in the indirect taxcollections for fiscal 2017-18 are three fold - transformational change to Goods & Services Tax (GST),sharing of Central cesses with States, and uncertainty over compliance level in the first year of GST. Thebanking cash transaction tax, suggested by the committee of Chief Ministers on demonetisation, will have tobe studied. We will have to see whether the BCTT, in its earlier implementation, discouraged people fromwithdrawing cash or did it result in more people keeping cash at home to avoid the tax? – (HBL Feb 4, 2017 p 6)

UNIVERSAL BASIC INCOME SCHEME"The Indian economy: Rupees for nothing" – India is taking the idea of a universal basic income seriously,

if not literally. An article. – (Eco 422(9026) Feb 4, 2017 pp 59-60)

BANKING

GENERAL"Bank deposits slump by Rs.90,000 cr in fortnight ended January 20: Banks expect 70% of deposits

mobilised during demonetisation period to flow out" – After the spurt in deposits during the demonetisationperiod (November 8 to December 30), banks now seem to be witnessing a reversal. Bank deposits declinedby a whopping Rs.90,169 crore in the fortnight ended January 20, 2017, according to Reserve Bank of Indiadata. Despite the lending rate cuts, credit growth for the banking system as a whole has been sluggish. In thereporting fortnight, credit given by the banking system nudged up by only Rs.5,890 crore. Comes in thebackdrop of the daily withdrawal limit from ATMs being increased to Rs.10,000 per day per card, and fromcurrent, overdraft and cash-credit accounts to Rs.1 lakh per week. A report. – (HBL Feb 4, 2017 p 5)

AXIS BANK"Axis Bank to raise $10 million via bonds" – Axis Bank will raise $10 million (about Rs.67 crore) by issuing

floating rate bonds from its Dubai International financial Centre (DIFC) branch. – (FE Feb 3, 2017 p 15)

"Axis Bank to sell 14 mn Experian shares" – Axis Bank Ltd said in a statement that it has signed anagreement to sell 14 million equity shares in Mumbai-based Experian Credit Information Co. of India Ltd fora total cash consideration of Rs.64 crore. – (Mint Feb 8, 2017 p 2)

BANK OF BARODA"BoB, IFFCO launch debit card" – Bank of Baroda has tied up with IFFCO, a cooperative, to provide co-

branded debit cards with inbuilt overdraft facilities to farmers. – (HBL Feb 8, 2017 p 10)

BANK OF MAHARASHTRA"BoM, Cigna TTK Health ink pact" – Bank of Maharashtra has entered into a corporate agency agreement

with Cigna TTK Health for distribution of the latter's products in the bank's branches. – (HBL Feb 7, 2017 p 10)

– 5 –

CENTRAL BANK OF INDIA"Central Bank narrows Q3 net loss at Rs.605.7 crore" – Central Bank of India reported a net loss of

Rs.605.70 crore for the third quarter ended December 31, 2016, on persisting bad loans. The bank trimmedits losses for the quarter against a Rs.836.62 crore loss it posted in the corresponding October- Decemberquarter of the previous fiscal. – (FE Feb 5, 2017 p 3)

CITY UNION BANK"City Union Bank Q3 net up 12% on increase in operating profit" – City Union Bank (CUB) has

reported 12 per cent growth in net profit at Rs.127 crore for the quarter ended December 31, 2016 as againstRs.113 crore in a year-ago period, on the back of robust growth in operating profit. A report. – (HBL Feb 9,2017 p 13)

"City Union Bank: Reviewed financial results for the quarter/nine months ended 30th September,2016" – An advertisement feature. – (HBL Feb 9, 2017 p 19)

FEDERAL BANK"Federal Bank market share set to go up this quarter, says MD" – With a 32 per cent growth in net

advances in the third quarter of the current fiscal, Federal Bank is on the verge of gaining adequate share inthe domestic lending business. 'For long, we were in the 0.7-0.8 per cent range. Now, we have crossed 0.9per cent. We hope to cross 1 per cent during this quarter,' according to Shyam Srinivasan, Managing Directorand CEO, Federal Bank. A report. – (HBL Feb 3, 2017 p 10)

HDFC BANK"HDFC Bank increases cash transaction fees on savings a/cs" – In a bid to discourage cash transactions,

HDFC Bank has decided to steeply increase the fees for savings account holders on a slew of activitiesinvolving cash. The bank has capped third-party transactions at Rs.25,000 a day, reduced the number of freecash transactions at branches, and also raised the fee for non-free transactions. – (HBL Feb 4, 2017 p 5)

IDBI BANK"IDBI Bank's Q3 loss widens to Rs.2,255 crore: A result of higher provisioning for bad loans,

depreciation" – Higher provision towards bad loans and depreciation on investments widened IDBI Bank'snet loss in the third quarter. It reported a net loss of Rs.2,255 crore in the reporting quarter ended December31, 2016, as against Rs.2,184 crore in the year-ago period. A report. – (HBL Feb 8, 2017 p 10)

"IDBI Bank: Unaudited financial results for the quarter and nine months period ended December31, 2016" – An advertisement feature. – (HBL Feb 8, 2017 p 5)

– LOAN PRICING

"IDBI Bank cuts MCLR by 30 bps" – IDBI Bank has slashed its marginal cost of funds-based lending rate(MCLR) by 30 to 35 basis points across various tenors with effect from February 1. Following this cut, thebenchmark one-year MCLR now stands at 8.80 per cent. – (HBL Feb 7, 2017 p 10)

IDFC BANK"IDFC Bank picks up 5% stake in IIFL for Rs.502 cr" – IDFC Bank picked up a 5% stake in financial

services major IIFL Holdings for more than Rs.502 crore through an open market transaction. – (FE Feb 7,2017 p 10)

"IDFC Bank, IndiaLends tie up for loan services to first-timers" – IDFC Bank has collaborated withfintech startup IndiaLends to enable first time borrowers who do not have a credit history to take loans.– (FE Feb 8, 2017 p 10)

– 6 –

"New govt nominee on IDFC Bank board" – The department of financial services director Anindita Sinharaywas appointed as government's nominee director on the board of IDFC Bank. – (FE Feb 3, 2017 p 15)

INDIAN BANK"Indian Bank shuns peers to become top Asian bank stock" – Indian Bank, a century-old state-owned

lender based in the country's south, has emerged as Asia's top-performing bank stock in the past year, drivenby a focus on consumer loans that are less likely to sour than corporate advances. Indian Bank is consideredas the best bet among public sector banks right now due to their strong consumer-assets book and fallingconcerns on asset quality. A report. – (FE Feb 8, 2017 p 11)

INDIAN OVERSEAS BANK"IOB keen to ramp up retail book: Aims to grow retail portfolio to 20%of overall lending by March

2018,says ED Subramania Kumar" – Indian Overseas Bank (IOB) is striving to improve its retail bookand is focussing energies on growing it even as the bank is on a consolidation phase. A report. – (HBL Feb6, 2017 p 16)

INDUSIND BANK"IndusInd revives merger talks with Bharat financial" – Hinduja group controlled IndusInd Bank is in

preliminary talks to explore a buyout of Bharat Financial Inclusion (formerly S K S Microfinance), thecountry's second-largest micro lender in terms of loans outstanding, according to the three sources close tothe matter. – (ET Feb 3, 2017 p 11)

JAMMU AND KASHMIR BANK"J&K Bank posts Q3 loss at Rs.498 cr" – Jammu and Kashmir Bank reported a net loss at Rs.498.47 crore

for the third quarter ended December 2016, mainly due to sharp jump in provisions for bad loans. The bankhad reported a net profit of Rs.117.68 crore in October-December quarter of 2015-16. – (FE Feb 5, 2017 p 3)

"J&K Bank: Extract of standalone reviewed financial results for the quarter & nine months ended31st December, 2016" – An advertisement feature. – (FE Feb 5, 2017 p 12)

KOTAK MAHINDRA BANK

– AXIS BANK

"Kotak, Axis deny merger rumours" – Kotak Mahindra and Axis Bank have strongly denied rumours thatthe biggest consolidation in banking space is in the works. – (TI Feb 9, 2017 p 18)

ORIENTAL BANK OF COMMERCE"Oriental Bank of Commerce: Extract of reviewed financial results for the quarter/nine months

ended 31st December, 2016" – An advertisement feature. – (BS Feb 6, 2017 p 12)

"Oriental Bank's Q3 loss at Rs.130 cr" – Oriental Bank of Commerce net loss for the December quarternarrowed to Rs.1.30 crore from Rs.424.70 crore in the year ago period. Total income has increased toRs.5,415.97 crore during the quarter ended December 31, 2016 crore Rs.5,350.48 crore in the same quartera year ago. – (FE Feb 5, 2017 p 3)

PUNJAB & SIND BANK"Punjab & Sind Bank: Reviewed un-audited financial results for the quarter and nine months ended

31st December, 2016" – An advertisement feature. – (FE Feb 9, 2017 p 24)

– 7 –

PUNJAB NATIONAL BANK"PNB loan quality hit by note ban" – Loans worth between Rs.8,000 crore and Rs.10,000 crore that were

being serviced regularly have turned into special mention accounts 2 (SMA2) - loans on which repaymentsare overdue for between 61 and 90 days - at Punjab National Bank (PNB) as a result of demonetisation,according to the senior bank executives. A report. – (FE Feb 9, 2017 pp 1, 2)

"PNB Q3 net up 4-fold as low-cost deposits surge post-demonetisation: Focus on resolution of stressedassets also helps shore up bottomline, says MD" – The post-demonetisation surge in low-cost CASAdeposits has helped Punjab National Bank record more than a four-fold jump in third quarter profit to Rs.207crore, from the Rs.51 crore recorded in the year-ago period. However, the December quarter bottomlineperformance was lower than the Rs.549 crore recorded in the previous quarter. A report. – (HBL Feb 8,2017 p 10)

"PNB targeting Rs.5,000 cr of loan recovery in Q4: MD" – Edited excerpts from an interview with UshaAnanthasubramanian, Managing Director and Chief Executive Officer of Punjab National Bank. – (MintFeb 8, 2017 p 18)

"Punjab National Bank: Reviewed financial results for the quarter/nine months ended 31st December2016 (Standalone)" – An advertisement feature. – (FE Feb 8, 2017 p 1)

Iyer, Aparna – "Has PNB begun to justify Virat Kohli style run-up in its stock price?" – An article.– (Mint Feb 8, 2017 p 4)

Merwin, Radhika – "Core performance continues to be weak" – The existing large bad loan book couldresult in provisioning going up in the coming quarters. An article. – (HBL Feb 8, 2017 p 10)

STATE BANK OF INDIA

– SME FINANCE

"Post-budget tax cut: State Bank plans scheme to revive SMEs" – Close on the heels of the UnionBudget proposal on a five percentage point cut in corporate tax to 25 per cent for businesses with a turnoverof up to Rs.50 crore, State Bank of India (SBI), which accounts for almost half of the banking sector's SMEportfolio, said it is working on a scheme to bail out good small and medium units (SMEs) which are facingissues relating to demonetisation and slowdown in the economy. A report. – (IE Feb 3, 2017 p 13)

STATE BANK OF TRAVANCORE"SBT posts Rs.67.76-cr loss in Q3: Performance hit by higher provisioning for NPAs" – State Bank of

Travancore (SBT) has posted a net loss of Rs.67.76 crore for the third quarter ending December 31, 2016.The bank blamed higher provisions for non-performing assets (including additional prudential provisions andtaxation for the below-par performance. A report. – (HBL Feb 4, 2017 p 5)

"State Bank of Travancore: Unaudited (Reviewed) financial results for the nine months ended 31stDecember, 2016" – An advertisement feature. – (HBL Feb 3, 2017 p 22)

UNION BANK OF INDIA"Union Bank of India net up 32.4% at Rs.104 cr" – Union Bank of India reported a 32.4% year-on-year

(y-o-y) rise in net profit at Rs.104 crore for the December quarter, owing to a 50% y-o-y jump in otherincome to Rs.1,339.67 crore. A report. – (FE Feb 9, 2017 p 19)

UNITED BANK OF INDIA"UBI net zooms in Q3" – United Bank of India (UBI), reported a 276 per cent jump in net profit to Rs.64

crore for the quarter ending December 31, 2016. The net profit in the corresponding quarter last fiscal stoodat Rs.17 crore. The profit came on account of a tax expense of Rs.122 crore that was written back duringthe quarter. A report. – (HBL Feb 8, 2017 p 10)

– 8 –

"United Bank of India: Reviewed financial results for the quarter and nine months ended December31, 2016" – An advertisement feature. – (BS Feb 8, 2017 p 3)

VIJAYA BANK"Vijaya Bank profit zooms in third quarter: Aided by reduction in bulk deposits, rise in treasury

income and recoveries: MD" – Vijaya Bank has posted a 337.71 per cent rise in profit to Rs.230.28 crorefor the third quarter (Q3) of this fiscal (FY17) from Rs.52.61 crore in the same period last year. Total incomeof the bank rose 14.74 per cent to Rs.3,714.37 crore from Rs.3,237.02 crore in the same quarter last year. Areport. – (HBL Feb 3, 2017 p 10)

"Vijaya Bank: Reviewed financial results for the quarter/nine months ended 31st December, 2016"– An advertisement feature. – (HBL Feb 3, 2017 p 22)

CHINA

– BRAND IMAGE

"Chinese banks outpace US banks" – A view of brand finance. – (Mint Feb 6, 2017 p 15)

ITALY

– UNICREDIT

Sanderson, Rachel and Arnold, Martin and Others – "Bridging the loans gap" – Italy's largest lender byassets is seeking to restore confidence with a Euro 13 bn share sale. Many hope a successful offering will lifta troubled banking sector but fears about bad loans are likely to persist. An article. – (FT Feb 7, 2017 p 7)

ATMs"Banks taking steps to upgrade ATM software: Govt" – The government informed the Lok Sabha that

banks are taking steps to upgrade software of ATMs. RBI has informed that banks have been taking steps toupgrade the software based on the agreements/contracts with their vendors. – (FE Feb 4, 2017 p 10)

BANK CAPITAL

– PUBLIC SECTOR BANKS

"Final call on PSBs funds infusion after Q3 results" – The government will finalise the second and finaltranche of capital infusion for public sector banks (PSBs) for 2016-17 once all of them have declared resultsfor the third quarter of the current financial year, according to a senior Finance Ministry official. A report.– (FE Feb 6, 2017 p 2)

"Is Rs.10k crore allocation to recapitalise PSBs enough?" – A report. – (BS Feb 9, 2017 Pt. II p 2)

Ray, Atmadip – "Jaitley throws ball into banks' court: No pain, no gain PSU Banks' moment of truth"– With a meagre Rs.10k cr allocation, lenders are in for a tough time as asset quality is on a steady declineand mitigating factors like Sarfaesi, loan rejig, securitisation fail to fire up. Public sector banks need at leastRs.75,000 crore in the next two years, according to an estimate by ratings company India ratings. An article.– (ET Feb 8, 2017 p 16)

BANK DEPOSITS

– DEMONETISATION

"Rs.4.17L-cr suspicious deposits by 18 lakh people post note ban" – As much as Rs.4.17 lakh crore ofsuspicious cash was deposited by about 18 lakh people post demonetisation of high value currency notes,according to Sushil Chandra, Chairman, CBDT. A report. – (FE Feb 3, 2017 p 4)

– 9 –

BANK LENDING"Retail loans growth in Dec weakest in 18 months: Bank credit to industry contracts for third straight

month" – Bank credit to the industry contracted on a year-on-year (y-o-y) basis in December for the thirdstraight month, falling 4.3% to Rs.25.79 lakh crore. A report. – (FE Feb 3, 2017 p 14)

– DATA ANALYTICS

Raj, Rajiv – "Moving toward one-click loans for all" – As India moves towards becoming a data-richenvironment, the day is not far when alternative data analytics and machine learning will make one-click loanapprovals a reality. An article. – (Mint Feb 6, 2017 p 15)

– JEWELLERY INDUSTRY

"Banks ask jewellery industry to improve transparency, governance: Say payments discipline washigh 10 years ago, but many defaulted after the global financial crisis" – Turning cautious from manyloans going bad, banks are seeking more transparency and better corporate governance in the jewelleryindustry. Reflecting the slowdown in jewellery exports, credit to the industry remained stagnant in 2015 andoutstanding loans declined next year to Rs.68,600 crore, according to Reserve Bank of India data. A report.– (BS Feb 7, 2017 p 16)

– KOTAK MAHINDRA BANK / IDFC BANK

"Banks' daredevilry: Loans without credit scores: Kotak, IDFC Bank turn to digital algo to pick upgood borrowers" – Kotak Mahindra Bank and IDFC Bank have forayed into a space where most bankshitherto feared to tread - lending to people without credit score. 'We are trying to address needs of customerswho do not have a credit history and this base is much bigger than people who avail credit,' according to BijuPillai, head, personal lending at IDFC Bank. A report. – (ET Feb 6, 2017 p 14)

BANKING REFORMS

– GYAN SANGAM

"Banks' 'Gyan Sangam' to discuss digitisation, consolidation at PSBs" – The push for digitisation in thewake of demonetisation and the proposal for public sector bank (PSB) consolidation are likely to top theagenda for Gyan Sangam which is the retreat for PSBs, government-owned Financial Institutions (FI) andinsurance companies, slated for March. A report. – (H Jan 31, 2017 p 15)

BANKING REGULATOR

– RESERVE BANK OF INDIA

"RBI to set up unit to monitor violation of rules by banks" – The RBI will set up an enforcementdepartment to monitor banks that violate regulations. The enforcement department will start operations fromApril 1, 2017, the bank said in a statement issued with its bi-monthly policy. RBI now proposes to have itcentralised in one department. This will help RBI follow up and maintain a record on banks performance. Areport. – (ET Feb 9, 2017 p 17)

Nangia, Meera – "Don't speak, don't tell" – The RBI's continuance of the cash withdrawal limits, alongwith the thrust on digital banking, is aimed at averting the possibility of a bank run. Quantitative tests indicatethat the banking system is apparently not even prepared for the withdrawal of 10% of depositors funds. Anarticle. – (H Jan 31, 2017 p 11)

BANKING TRANSACTION TAX

– FINANCIAL INCLUSION

"Nip it in the bud" – A banking cash transaction tax will be counter-productive to financial inclusion. Anarticle. – (BI (1012) Jan 16, 2017 p 8)

– 10 –

BASEL III

– AT-1 BONDS

"RBI amends AT-1 bonds framework on coupon payments" – The Reserve Bank amended regulationsgoverning AT-1 bonds under the Basel-III framework, wherein it allowed lenders to pay coupons from profitsand reserves. – (FE Feb 3, 2017 p 5)

BHARAT BILL PAYMENT SYSTEM

– HDFC BANK / KOTAK MAHINDRA BANK

"HDFC Bank, KMB go live with Bharat Bill Payment System" – HDFC Bank and Kotak MahindraBank said they are live with the Bharat Bill Payment System (BBPS) that is aimed at easing utility and otherrepetitive bill payments for consumers. A report. – (FE Feb 8, 2017 p 10)

CASH WITHDRAWALS"Happy Holi: curbs on cash withdrawal to go on March 13: Limit will be hiked to Rs.50,000 per week

from Feb 20" – The Reserve Bank of India will bring some festive cheer to consumers on 'Holi'. Allrestrictions imposed on cash withdrawals for savings bank account holders, including those opened under thePradhan Mantri Jan Dhan Yojana (PMJDY), will be removed from March 13. Customers can freely go to bankbranches or ATMs and withdraw money as they did pre-demonetisation. A report. – (HBL Feb 9, 2017 p 1)

CORPORATE DEBT RESTRUCTURING"After 2 years, CDR cell gets fresh loan recast proposal" – In what could signal the revival of loan recasts

through the corporate debt restructuring (CDR) cell, lenders to Gangakhed Sugar & Energy have referred itsloans worth Rs.350 crore to the cell in January, adding that this was the first case in almost two years. Areport. – (FE Feb 7, 2017 p 10)

CURRENCY NOTES

– DEMONETISATION

"Data on junked notes to be revealed after June: RBI" – Over a month after the end of 50-daydemonetisation period, the RBI today said it is reconciling data on junked 500 and 1,000 rupee notes withphysical cash and the 'final numbers' will be divulged after June 30, the day when all windows for depositingold notes will be closed. A report. – (HBL Feb 9, 2017 p 12)

"No statistics on impact of demonetisation: DEA Secretary Das says govt also does not have exactdata to assess windfall" – The government does not have any exact data to show the 'windfall' from thedemonetisation of high-value notes, according to the Economic Affairs Secretary Shaktikanta Das. But theNovember 8 decision to replace old Rs.500 notes with new ones and scrap Rs.1,000 notes has resulted inbanks having enough low-cost deposits to give loans at lower interest rates. A report. – (HBL Feb 3, 2017 p 1)

"You can't diet for a few days and quit... demonetisation needs policy follow-up" – Edited excerpts ofconversation with Ila Patnaik, Economist, Macroeconomy Expert described several aspects of demonetisation.With many ATMs loaded again, the immediate blow of demonetisation has begun to ease. This week, thePrime Minister defended his November 8, 2016 decision in Parliament. But the debate remains open, and thefull impact of the move will unfold over the rest of the year. – (IE Feb 9, 2017 p 11)

CYBER SECURITY"Big gaps in cyber security preparedness in banks" – The assessment of gaps in banks' cyber security

preparedness reveals that barring a few banks the gaps are significant, more so in respect of public sectorbanks, according to the RBI. This warrants immediate and continued attention of the boards and seniormanagement of banks, according to Deputy Governor S S Mundra. Having a thorough plan of action withclearly identified roles and responsibilities in the event of cyber incidents is a must in today's environment. Areport. – (HBL Feb 3, 2017 p 10)

– 11 –

"RBI to form inter-disciplinary committee on cyber security" – In its monetary policy announcement onWednesday, the Reserve Bank of India (RBI) announced a directive for banks and financial services companiesstruggling with cyber security concerns. The central bank said it will form an inter-disciplinary standingcommittee on cyber security. A report. – (Mint Feb 9, 2017 p 7)

DIGITAL PAYMENTS (BHIM) APP

– PUBLIC SECTOR BANKS

"PSU banks to join BHIM by February-end" – All Public Sector Banks are expected to join the BharatInterface for Money (BHIM) app for digital payments by the end of February, according to the NationalPayments Corporation of India. – (H Feb 8, 2017 p 15)

DISCIPLINARY ACTION

– DEMONETISATION

"Demonetisation irregularities: 156 senior public sector bank officials suspended" – As many as 156senior officials of various state-owned banks have been suspended and 41 transferred after they were foundinvolved in irregularities related to demonetisation, Parliament was informed. A report. – (HBL Feb 4, 2017 p 5)

FAKE CURRENCY NOTES"Post note ban: Banks, RBI detect fake currency worth Rs.19.54 crore" – The Reserve Bank of India

and banks have detected Fake Indian Currency Notes (FICN) worth Rs.19.54 crore so far in exchange/deposit of scrapped currency notes of Rs.500 and Rs.1000. – (IE Feb 4, 2017 p 13)

FOREIGN BANKS

– ABN AMRO

"ABN Amro to cut 60 top execs jobs" – ABN Amro NV plans to cut 60 of its 100 senior management jobsand reduce the number of top executives by more than half in a revamp that reflects the bank's shrinking size.A new management board will include the heads of retail, commercial, corporate and institutional, and privatebanking, the Amsterdam-based lender said in a statement on. – (HBL Feb 7, 2017 p 10)

– DEUTSCHE BANK

"Deutsche Bank to cut 17% of equities staff" – Deutsche Bank is about to eliminate staff at its tradingbusiness, according to a person familiar with the matter, a day after reporting results for the unit that missedanalysts' expectations. The bank will cut as much as 17 percent of staff globally in its equities unit and reducefixed-income headcount by as much as 6 percent, with notices to be served to employees soon. – (FE Feb 4,2017 p 16)

INDUSTRIAL RELATIONS"Bank unions call for strike on February 28: Huge costs incurred on demonetisation, Jan Dhan &

Aadhaar, says UFBU Convener" – The United Forum of Bank Unions (UFBU) has given a call to itsmembers to strike work on February 28. The strike call, according to Thomas Franco, UFBU Convener andSenior Vice-President of the All India Bank Officers' Confederation (AIBOC), is to voice their displeasureover the government indifference to their issues, which they contend 'have accumulated and remainunaddressed.' A report. – (HBL Feb 8, 2017 p 10)

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA"Three whole-time IBBI members appointed" – Former Deputy CAG Suman Saxena and two others

have been appointed as whole-time members in Insolvency and Bankruptcy Board of India (IBBI). BesidesSaxena, Mukulita Vijaywargiya and Navrang Saini have also been appointed as the new members. – (FE Feb4, 2017 p 2)

– 12 –

INTEREST RATE RISK IN BANKING BOOK- IRRBB"RBI releases draft guidelines on interest rate risk banking book" – Reserve Bank of India (RBI)

released draft guidelines on interest rate risk on banking book (IRRBB), seeking public comments on thesame, by 3 March. IRRBB refers to the current or prospective risk to a bank's capital and earnings arisingfrom adverse movements in interest rates that affect banking book positions. When interest rates change, thepresent value and timing of future cash flows change. – (Mint Feb 3, 2017 p 5)

LOAN DEFAULTS

– FRAUDS

"RBI to banks: Be quick to identify and declare fraudulent borrowers: Loans get seasoned as NPAsfor 3-4 years before being reported as fraudulent, says S S Mundra" – Flagging instances of loanexposures getting seasoned as non-performing assets (NPAs) for three to four years before borrowers weredeclared as fraudulent, the Reserve Bank of India has called upon bankers to identify and declare loanaccounts as fraud without wasting time. A report. – (HBL Feb 3, 2017 p 10)

LOAN PRICING"Major banks cut lending rates by 60-115 bps since June" – Leading banks have lowered their incremental

lending rates by between 60 and 115 basis points (bps) since June, even as the Reserve Bank of India (RBI)lowered the repo rate by only 25 bps during the period. A report. – (FE Feb 7, 2017 p 10)

– UNION BANK OF INDIA / KOTAK MAHINDRA BANK

"Union Bank of India, Kotak cut MCLRs" – Union Bank of India and Kotak Mahindra Bank have reducedtheir marginal cost of funds-based lending rates (MCLR), effective February 1. While Union Bank's one-year MCLR now stands 15 basis points (bps) lower at 8.5%, the corresponding figure for Kotak MahindraBank came down 15 bps to 8.85%. – (FE Feb 4, 2017 p 10)

MICROFINANCE SECTOR"MFIs on consolidation path: Competition rises as banks get into the segment and new small finance

banks become operational" – While microfinance institutions are yet to tide over the impact of currencydemonetisation, intense competition and reports of over-borrowing have surfaced as new grey areas. Atleast two recent reports, one by CRIF High Mark and another by ICRA, say MFIs are showing signs ofover-leveraging. A report. – (BS Feb 6, 2017 Pt. II p 2)

MONETARY POLICY"BS poll: Majority see rate cut by RBI: 11 of 17 economists say 25 bps reduction possible on

Wednesday" – The Reserve Bank of India's (RBI) sixth bi-monthly monetary policy could be a close call,as the case for a rate cut or pause are equally strong. Indeed, most of the 17 economists polled by BusinessStandard were hesitant to give a clear call on the possible policy outcome. While six economists expectedRBI to pause on Wednesday, 11 said the chances of RBI cutting rates by 25 basis points (bps) were a bit onthe higher side. A report. – (BS Feb 6, 2017 pp 1, 4)

"Economists expect RBI to cut repo rate by 25 bps" – Economists think that the RBI will deliver a 25basis points cut in repo rate in its sixth bimonthly policy review tomorrow. The repo rate is currently at 6.25per cent. Biswa Swarup Misra, Chief Economist, Bank of Baroda, said the macro configuration is just rightfor a 25 bps cut in the policy rates as risks to stability have temporarily moderated. The reduction in policyrate should be seen as a strategy to achieve the growth-inflation rhythm over the medium term. Specifically,the RBI would like to endow itself with greater ammunition in terms of creating more room for manoeuvrebefore both inflation and exchange rate come under pressure. A report. – (HBL Feb 8, 2017 p 10)

– 13 –

"Expect a 25 bps rate cut this Wednesday: Fiscal discipline, inflation data give RBI room for easingthe repo rate" – The Centre's commitment to fiscal consolidation and to borrow less in the next fiscal,coupled with the lower retail inflation data in December may give the Reserve Bank wiggle room enough tocut the policy rate by 25 basis points on Wednesday, in the last bi-monthly monetary policy review of thecurrent fiscal. A report. – (HBL Feb 6, 2017 p 1)

"Neutral stance reduces scope for rate cuts, say bankers" – Excerpts from leading bankers' reactions. Areport. – (HBL Feb 9, 2017 p 12)

"RBI Monetary Policy" – Reactions from leading bankers'. A report. – (FE Feb 9, 2017 pp 10-11)

"RBI stuns all by keeping repo rate unchanged: Signals the end of rate-cut cycle with shift in policystance" – The Reserve Bank of India unexpectedly left its key policy rates unchanged and signalled the endof its rate-cut cycle as it moved to keep inflation under check. The RBI has been keeping a close watch onthe increasing prices of global commodities, such as crude oil and base metals, and a strengthening dollar.The central bank said this could trigger inflationary conditions in the domestic economy. RBI Governor UrjitPatel said 'clouded' data after demonetisation had also made it difficult to have a clear assessment of themacroeconomic situation. The apex bank shifted its monetary policy stance from 'accommodative' to 'neutral'.All six members of the rate-setting monetary policy committee (MPC) voted in favour of leaving the policyrepo rate unchanged at 6.25 per cent. In the previous policy review too, the rate was kept on hold. A report.– (HBL Feb 9, 2017 p 1)

"Status quo surprise: No point lowering rates, if transmission is weak" – An editorial – (HBL Feb 9,2017 p 8)

"There is scope for lending rates to come down further" – Edited excerpts from an interaction with UrjitPatel, Governor and other Deputy Governors of Reserve Bank of India. – (BS Feb 9, 201 p 10)

"Will RBI go for a rate cut?" – Edited excerpts from a panel discussion Soumya Kanti Ghosh, Chief Economist,SBI; Sonal Varma, India Economist, Nomura; Samiran Chakraborty, Economist, Citi India; Sajjid Chinoy,Chief India Economist, JP Morgan; Pronob Sen, former Chief Statistician. – (Mint Feb 6, 2017 p 18)

"Wise caution: RBI shifts stance, mindful of uncertainty" – An editorial. – (BS Feb 9, 2017 p 9)

Bandyopadhyay, Tamal – "RBI restores its credibility" – An article. – (Mint Feb 9, 2017 p 8)

Ghosh, Soumya Kanti – "RBI's shift in policy stance puzzling" – An article. – (Mint Feb 9, 2017 p 8)

Iyer, Aparna – "RBI rediscovers its spine" – An article. – (Mint Feb 9, 2017 p 4)

Iyer, Aparna – "Will a rate cut be a wasted action by RBI?" – An article. – (Mint Feb 7, 2017 p 4)

Kapur, Gaurav – "MPC takes a cautious stance" – An article. – (Mint Feb 9, 2017 p 8)

Malik, Rajeev – "The MPC: Lost in translation" – An article. – (Mint Feb 7, 2017 p 17)

Merwin, Radhika – "Lending rates unlikely to fall sharply from here on: Reduction in deposit ratesand MCLR post-demonetisation indicates that transmission has happened almost entirely" – TheRBI staying pat on policy rate did not go down well with the market, as expectations ran high on a 25 basispoint rate-cut. More importantly, the RBI has now shifted its policy stance from accommodative to neutral,citing upside risks to inflation. Working with a real interest rate target of 125 basis points and inflationestimate of 4.5-5 per cent for the latter part of the next fiscal, the RBI has discreetly indicated that there'slittle scope for further rate cuts. An article. – (HBL Feb 9, 2017 p 12)

Niyogi, Soumyajit – "MPC delivers reasonably pragmatic policy" – An article. – (Mint Feb 9, 2017 p 8)

Pan, Indranil – "Is RBI better placed now?" – An article. – (Mint Feb 6, 2017 p 7)

Parthasarathy, V S – "Hit, miss or well left?" – An article. – (FE Feb 9, 2017 p 11)

Rao, Shubhada – "Making the case for an RBI rate cut" – An article. – (Mint Feb 7, 2017 p 6)

– 14 –

Rao, Shubhada – "Recalibrating monetary policy towards 4% inflation target" – An article. – (FE Feb9, 2017 p 10)

Rege-Nitsure, Rupa – "Time ripe for RBI to front-load rate cuts" – An article. – (BS Feb 6, 2017 p 4)

Sahay, Anubhuti – "More rate cuts seem likely" – An article. – (BS Feb 9, 2017 p 10)

Seshan, A – "RBI rightly displays caution, prudence" – To be content with moderate inflation rates ismisleading, when demand is hit by the high absolute level of prices. An article. – (HBL Feb 9, 2017 p 8)

– BANK OF BARODA

"Further reduction in interest rates seems less likely: P S Jayakumar" – Excerpts from an interviewwith P S Jayakumar, Managing Director and CEO of Bank of Baroda. – (Mint Feb 7, 2017 p 12)

– ICICI BANK

"Banks have preceded monetary policy cuts: Chanda Kochhar" – Edited excerpts from an interviewwith Chanda Kochhar, Managing Director and Chief Executive of ICICI Bank. – (Mint Feb 7, 2017 p 12)

– IDBI BANK

"Repo rate not big factor in banks' rate decisions" – Edited excerpts from an interview with R K Bansal,ED, IDBI Bank. – (Mint Feb 9, 2017 p 12)

MONETARY POLICY TRANSMISSION"Banks have space for more rate cuts, says Patel" – While most banks have aggressively been cutting

lending rates since demonetisation in November, the Reserve Bank of India (RBI) governor Urjit Patelbelieves that lenders have space for more cuts in future. Patel told that there is still room for lending rates tocome down as RBI's policy rates have come down by 175 basis points, and in comparison, the weightedaverage lending rate (WALR) has come down at the most by about 85-90 bps. A report. – (FE Feb 9, 2017p 10)

NON-PERFORMING ASSETS"Banks can't escape from controlling NPAs: Budget is well intentioned, and actions must match

intentions: Rangarajan" – Former Reserve Bank of India Governor Dr C Rangarajan said banks cannotescape from the responsibility of controlling Non-Performing Assets (NPA) in their balance sheets. I thinkthat the general scene is that the capital provided is not adequate. I think this cannot let the banks escape theresponsibility for the non-performing assets that they have in their asset portfolio. It is best to take steps toensure that they collect as much as possible from the non-performing assets. A report. – (HBL Feb 7, 2017p 10)

– BAD BANK

"RBI says open to bad bank option for NPAs: Need to remain open to all solutions because problemis large: Acharya" – The Reserve Bank of India (RBI) will look at all options, including setting up a so-called bad bank, for resolving the banking industry's bad loans, according to Viral Acharya, the newly appointeddeputy governor in charge of monetary policy. A report. – (Mint Feb 9, 2017 p 7)

– LOAN RESTRUCTURING

Ahamed, M Mostak and Mallick, Sushanta – "Effects of regulatory intervention in banking" – Therestructuring mechanism cannot be a permanent solution to non-performing assets. An article. – (Mint Feb 6,20147 p 17)

– 15 –

– PUBLIC SECTOR BANKS"PSBs' gross NPA hits 9.83% in FY16; rises to 11.82% by Sept '16" – Bad loans of public sector banks

stood as high as 9.83% of gross advances in previous fiscal. For fiscal 2015-16, public sector banks had grossadvances of Rs.51,04,915 crore, of which Rs.5,02,068 crore (9.83%) was categorised as gross non-performingassets (GNPA), according to the Minister of State for Finance Santosh Gangwar informed the Lok Sabha.– (FE Feb 4, 2017 p 10)

PAYMENTS BANKS

– AIRTEL PAYMENTS BANK"Airtel Payments Bank opens 1 lakh accounts in UP" – Airtel Payments Bank said it has opened more

than one lakh savings accounts in Uttar Pradesh within the first two weeks of its launch in the state.– (FE Feb 3, 2017 p 14)

– PAYTM"Payments bank of Paytm gets Rs.218cr infusion" – Paytm Payments Bank has received Rs.218 crore in

fresh capital as it prepares to start operations this month from Uttar Pradesh. Vijay Shekhar Sharma, founderand CEO of Paytm who holds the payments bank licence has infused Rs.111 crore, while One97Communications and One97 India Communications, the parent of Paytm, put in the rest of the amount, as perlatest regulatory filings sourced via business research platform Tofler. – (TI Feb 4, 2017 p 17)

PEER-TO-PEER LENDINGJoseph, Lancelot – "Innovative platform" – Peer-to-peer helps investors earn better returns, while borrowers

find the cost of credit reduced. An article. – (BI (1012) Jan 16, 2017 pp 67-68)

PMJDY"Over 2 cr Jan Dhan accounts since Nov 8" – More than 2 crore zero balance savings bank accounts have

been opened under the Pradhan Mantri Jan Dhan Yojana since the government announced its demonetisationmove on November 8. The number of Jan Dhan bank accounts in August stood at over 23 crore while inNovember it surged to 25.68 crore. A report. – (HT Feb 9, 2017 p 11)

POINT OF SALE TERMINALS"Note this: Jan PoS transactions drop after peaking in December" – The value of transactions at point-

of-sale (PoS) machines dropped over 25% in January after peaking in December in the wake of demonetisation.The aggregate value of credit and debit card transactions between January 1 and 30 was Rs.41,748.43 crore,as against Rs.52,223.84 crore for December, data released by the Reserve Bank of India (RBI) showed. Areport. – (FE Feb 3, 2017 p 14)

PROVISIONING

– NPAs"NPA norms to keep exerting pressure on banks' profit" – Reserve Bank guidelines on providing adequate

provisioning to cover bad loans would continue to put pressure on banks' profitability for some time, eventhough some banks are witnessing reduction in proportion of NPAs, according to S S Mundra, DeputyGovernor, Reserve Bank of India. – (FE Feb 9, 2017 p 10)

PUBLIC SECTOR ASSET REHABILITATION AGENCY (PARA)

– NPAsFelman, Joshua and Ghosh, Rangeet and Others – "The festering twin balance-sheet problem: Why a

PARA is paramount" – Other efforts haven't worked - and won't work. Time India considered publicsector asset rehabilitation agency. It could solve the coordination problem, since debts would be centralised inone agency. It could be given the mandate of maximising recoveries within a defined time-period. An article.– (FE Feb 8, 2017 p 8)

– 16 –

PUBLIC SECTOR BANKS"Budget allocation for bank recapitalisation not enough, says UBI CEO: Doesn't rule out possibility

of merger of weak banks in the run-up to meeting Basel-III norms" – The Rs.10,000 crore that hasbeen allotted in the Budget for recapitalisation of banks is not enough, according to Pawan Bajaj, MD andCEO, United Bank of India. According to him, the Indian banking system is still under stress, especially fromsectors such as steel, power, infrastructure and coal. A report. – (HBL Feb 4, 2017 p 5)

RECOVERY OF LOANS, NPAs, DEFAULTERS

– KERALA

"Kerala banks' novel initiative to recover dues from corporate defaulters: Federal Bank beginsattaching properties, CSB employees to hold protest at defaulters' premises" – Sending a strongsignal against Kerala's corporate defaulters, old generation private sector banks in the State are taking thelead to recover dues under the provisions of the Sarfaesi Act. While Kochi-based Federal Bank has startedattaching properties by taking over possession of a three-star hotel - The Pepper Vine at Thekkady - theemployees and retirees of the Thrissur-based Catholic Syrian Bank have launched an initiative to carry outvarious forms of protest before the premises of several defaulters requesting them to repay the dues. Areport. – (HBL Feb 9, 2017 p 13)

SMALL FINANCE BANKS"Small finance banks and what you get from them" – Ujjivan Small Finance Bank Ltd is the latest small

finance bank to start operation. There are five small finance banks - Capital Small Finance Bank Ltd, SuryodaySmall Finance Bank Ltd, Equitas Small Finance Bank Ltd, Utkarsh Small Finance Bank Ltd and UjjivanSmall Finance Bank Ltd. A look at what's on offer. – (HT Feb 8, 2017 p 15)

Bandyopadhyay, Tamal – "Big challenges before small finance banks" – An article. – (Mint Feb 6, 2017 p 6)

– UJJIVAN SMALL FINANCE BANK

"75% of our customers will be from MFI client base" – Edited excerpts from an interview with IttiraDavis, Chief Operating Officer, Ujjivan Small Finance Bank. – (FE Feb 7, 2017 p 10)

"Ujjivan SFB plans Rs.400-cr tech spend to offer better services: Launches full-fledged operationson pilot basis in Bengaluru" – Ujjivan Small Finance Bank (Ujjivan SFB) rolled out full-fledged bankingoperations with five pilot branches in Bengaluru. The bank plans to be tech-driven for its pan-India roll-outand also to boost its day-to-day business. A report. – (HBL Feb 7, 2017 p 10)

"Ujjivan SFB to start branch ops today" – Ujjivan Small Finance Bank will open its first set of branches forpublic transaction on Monday, and start expanding the network across India from the next fiscal year.– (ET Feb 6, 2017 p 14)

– UTKARSH SMALL FINANCE BANK

"Being a new bank, we will focus on mid- and lower-income segments" – Edited excerpts from aninterview with Govind Singh, Managing Director and CEO, Utkarsh Small Finance Bank Ltd. – (Mint Feb 7,2017 p 15)

STATUTORY RESERVES"Use of statutory reserves allowed: RBI tweaks rules to avoid bond coupon defaults by banks:

Decision avoids potential damage to sentiment in AT1 bond market" – In a step aimed at preventingloss-making banks from defaulting on coupon payments on bonds, the Reserve Bank of India (RBI) hasdecided to allow them to use their statutory reserves to pay coupons on Basel-III Additional Tier-I (AT1)instruments. A report. – (IE Feb 4, 2017 p 14)

– 17 –

WILFUL DEFAULTERS

– KINGFISHER AIRLINES

"KFA loan case: CBI probe may widen to more banks" – The Central Bureau of Investigation's probe intothe loan default by Vijay Mallya's now grounded Kingfisher Airlines may extend from IDBI Bank to abouttwo dozen lenders over alleged irregularities in grant of funds to the beleaguered company. A report. – (ETFeb 3, 2017 p 8)

RBI CIRCULARS"Auction of Government of India Dated Securities" – (RBI Circular RBI/2016-2017/223 Ref. No. IDMD/

2024/08.02.032/2016-17 dated 06.02.2017)

"Interest rates for Small Savings Schemes" – (RBI Circular RBI/2016-2017/225 DGBA.GAD.2012/15.02.005/2016-17 dated 09.02.2017)

"Removal of limits on withdrawal of cash from Saving Bank Accounts" – (RBI Circular RBI/2016-2017/224 DCM (Plg) 3107/10.27.00/2016-17 dated 08.02.2017)

INDUSTRYKaushik, Manu – "Business confidence index: Taking a knock" – Business confidence has plunged to its

lowest level in six years on concerns of a likely fall in consumption and poor economic growth afterdemonetisation, finds the latest Business Today-C fore Business Confidence Survey. An article. – (BusT26(3) Jan 30, 2017 pp 30-34)

COMMERCIAL PAPER"RBI issues revised rules on commercial paper issuance" – The Reserve Bank of India (RBI) issued

revised guidelines for commercial papers, including mandating that the issuer must disclose the end-use ofsuch funds and that it cannot buy back its securities before 60 days from the sale to investors. A report.– (Mint Feb 3, 2017 p 5)

MUTUAL FUNDS"MF assets rise to all-time high of Rs.17.37L cr in Jan" – Mutual fund industry's asset base rose to all-

time high of Rs.17.37 lakh crore at the end of January primarily on account of strong inflows in equity, incomeand money market segments. A report. – (FE Feb 8, 2017 p 11)

INTERNATIONAL ECONOMICS

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Feb 6, 2017 Supl. pp 1-16)

LABOUR & PERSONNEL MANAGEMENT

LABOUR REFORMS"Labour reforms to ease layoff for employers with 300 workers" – While labour reforms have not made

much progress so far, the government may move quickly to enable establishments employing up to 300workers to lay off employees without government approval. Currently, this is permitted for establishmentswith up to 100 workers. A report. – (FE Feb 3, 2017 p 4)

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