Volume XXXIII Number 5 October 30, 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 2

C. AGRICULTURE & RURAL DEVELOPMENT 15

D. INDUSTRY 15

E. SMALL SCALE INDUSTRY 15

F. INTERNATIONAL ECONOMICS 16

G. LABOUR & PERSONNEL MANAGEMENT 16

H. MANAGEMENT 16

– 1 –

BANKERS' BRIEF Vol. XXXIII No. 5October 30, 2017

ECONOMY"Centre likely to achieve 3.2% fiscal deficit target: SBI report: Govt may cut capital expenditure by

Rs.70,000 crore to meet the target" – The government is likely to achieve its fiscal deficit target of 3.2per cent of GDP for the first time in about seven years, but may cut its capital expenditure by Rs.70,000 croreto meet the goal, according to a report by SBI Research. – (HBL Oct 24, 2017 p 4)

"Economy could rebound in July-Sept.: GVA to grow at 6.3%, says Nomura" – The economy is expectedto see a rebound in the July-September quarter of this year with a GVA (Gross Value Added) growth rate of6.3%, according to a Nomura report. Nomura's proprietary indices suggest growth bottomed out in thesecond quarter and a recovery is underway in the third quarter, largely because consumption and investmentindicators have improved in the third quarter. A report. – (H Oct 23, 2017 p 13)

"The economy debate" – An interview with P Chidambaram, former Finance Minister and Rajiv Kumar,Vice-Chairman, Niti Aayog. – (BusT 26(22) Oct 23-Nov 05, 2017 pp 64-69)

"Is the worst over for the Indian economy?" – Edited excerpts from discussion with Sanjeev Sanyal,formerly with Deutsche Bank and currently principal economic adviser to the finance ministry; AshimaGoyal, professor of economics, Indira Gandhi Institute of Development Research and former member of themonetary policy advisory committee and now member of the Prime Minister's economic advisory council;and Chetan Ahya, managing director and chief economist (Asia Pacific), Morgan Stanley, comment on theseissues. – (Mint Oct 23, 2017 p 10)

"NDA's mid-year booster shot for the economy" – The National Democratic Alliance (NDA) governmentunveiled a package of measures to accelerate economic growth, but made it clear that this would not be atthe expense of fiscal prudence. Besides the largest investment ever proposed to connect India through roads,the government announced a promised recapitalization package to fix the bad-loan problem of public sectorbanks, promised focused bank lending to the employment-friendly small-scale sector and, in a separatedecision, raised the minimum support price (MSP) for wheat by 6.8%, the biggest increase in six years Areport.. – (Mint Oct 25, 2017 pp 1, 10)

"The state of the economy" – The government maintains that macroeconomic fundamentals of the economyare robust and that the deceleration in the growth rate seen in the June quarter due to the impact of structuralreforms has bottomed out. Multilateral agencies like the IMF have endorsed the view that there is a solidtrack ahead for the Indian economy. Policymakers have therefore, chosen to stick to fiscal prudence whileboosting infrastructure spending and strengthening bank balance sheets. A graphical report.– (Mint Oct 25, 2017 p 10)

Venkatachalam, L – "Economic growth: An alternative view" – The current method of GDP calculationtreats environmental damage costs as income. An article. – (H Oct 24, 2017 p 9)

UNIVERSAL BASIC INCOME SCHEME"Decision on universal basic income depends on social, political preferences in India: IMF" – The

International Monetary Fund (IMF) has said that it has not advocated for or against any proposal for aUniversal Basic Income (UBI). The decision to consider a UBI or a variant of it solely depends on the socialand political preferences in India. Stressing that its recent Fiscal Monitor did not advocate for or against theUBI, the IMF has said that the report found that the UBI has the potential for having a significant impact oninequality and poverty, as it covers all individuals at the bottom of the income distribution. A report.– (HBL Oct 25, 2017 p 4)

– 2 –

BANKING

GENERAL"Before consolidation, provide equity to banks that are healthier" – Edited excerpts from an interview

with Dipak Gupta, Joint MD, Kotak Mahindra Bank. – (ET Oct 25, 2017 p 16)

"Indian finance: The round-trip rupee trick" – Banks in India will finance their own bail-out, apparently. Anarticle. – (Eco 425(9064) Oct 28-Nov 03, 2017 p 65)

"Non-food credit growth improves to 8.42%" – Growth in non-food bank credit improved to 8.42% year-on-year (y-o-y) during the fortnight ended October 13 from 7.46% in the previous fortnight. The correspondingfigure in the year-ago period was 9.01%. According to provisional data released by the Reserve Bank ofIndia (RBI), outstanding loans to companies and individuals fell to Rs.78.52 lakh crore from Rs.79.62 lakhcrore a fortnight ago. Aggregate deposits with the banking system grew 9.77% y-o-y to Rs.108.79 lakhcrore. A report. – (FE Oct 26, 2017 p 10)

"Public sector banks' consolidation will follow recapitalization: Jaitley" – Edited excerpts from an interviewwith Arun Jaitley, Finance Minister. – (Mint Oct 26, 2017 p 18)

BANK OF INDIA"New Executive Director in Bank of India" – Chintapalli Gayatri Chaitanya has been appointed as an

Executive Director in Bank of India. Prior to his elevation, Chaitanya was Chief Executive of Bank of IndiaSingapore Centre, covering Singapore, Cambodia, Vietnam, Indonesia & Myanmar. In Singapore, he initiatedvarious measures very effectively, including regulatory compliances, AML/CFT. – (BS Oct 24, 2017 p 9)

CANARA BANK"Canara Bank to hire i-bankers for sale of non-core assets: The idea behind sale of assets is to

unlock the value of strategic investments, says bank's lender notice" – Canara Bank Ltd plans tohire investment bankers to help it sell stakes in some assets that are unrelated to its main lending business.The idea behind the sale of its so-called non-core assets is to unlock the value of its strategic investments,according to a tender notice on the bank's website. – (Mint Oct 24, 2017 p 3)

CATHOLIC SYRIAN BANK"Catholic Syrian Bank expects to raise funds by December" – Catholic Syrian Bank (CSB) hopes to

conclude its fundraising exercise by December. T S Anantharaman, chairman, said the second half of theexercise would be concluded by then. CSB needs Rs.400-600 crore. Sources say SSG Capital Management,InCred Finance, Aion Capital, JM Financial and Everstone-backed IndoStar Capital are among the investorswhich have shown interest. – (BS Oct 24, 2017 p 16)

"Catholic Syrian Bank logs Rs.95 lakh profit: Recovers from a net loss of Rs.14 cr recorded in Q1"– The turnaround strategy seems to be working well for Catholic Syrian Bank, as it bounced back with a netprofit of Rs.95 lakh in the second quarter, after posting a net loss of Rs.14 crore in the first quarter of FY18.A report. – (HBL Oct 25, 2017 p 6)

FEDERAL BANK"Bright future seems to await the bank" – Q2 in line with estimates; loan growth and improvement in

leverage and loan mix should push profitability. A report. – (FE Oct 24, 2017 p 15)

"Going branch-light is the new mantra in banking: With tech, there's an opportunity to launch brancheswith only 2 people" – Edited excerpts from an interview with Shyam Srinivasan, MD & CEO, FederalBank. – (ET Oct 23, 2017 p 13)

– 3 –

HDFC BANK"Almost 95-96% of our floating-rate loans are linked to MCLR" – Excerpts from an interview with

Paresh Sukthankar, Deputy Managing Director, HDFC Bank. – (FE Oct 25, 2017 p 10)

"HDFC Bank Q2 net up 20%, provisions jump to Rs.1,476 cr" – HDFC Bank reported a 20% year-on-year (y-o-y) growth in net profit for the quarter ended September to Rs.4,151.03 crore on the back of a 22%growth in net interest income (NII) to Rs.9,752.1 crore, even as the flexible structuring of a project loan inwhich the bank had participated weighed on asset quality. NII is the difference between interest earned andinterest paid by a bank. The net interest margin (NIM) fell marginally quarter-on-quarter (q-o-q) to 4.3%from 4.4% at the end of June. A report. – (FE Oct 25, 2017 p 10)

"HDFC Bank recasts a loan a/c as NPA" – HDFC Bank said the Reserve Bank has asked it to classify acontentious loan, which had led to a jump in its provisions in the September quarter results, as a non-performingasset (NPA). The bank has received communication from the regulator advising it to classify the said accountas a non-performing asset. The same has been duly complied with. – (HBL Oct 26, 2017 p 6)

"HDFC Bank: Is the bad loan spell catching up?" – Provisioning almost doubled to Rs.1,476 crore. Areport. – (BS Oct 25, 2017 Pt. II p 1)

Iyer, Aparna – "HDFC Bank's rising NPAs are a smudge on an otherwise stellar record" – An article.– (Mint Oct 25, 2017 p 4)

Merwin, Radhika – "Strong core performance, but loan loss provisions spike" – The bank has madesignificant contingent provisions for one account under regulatory observation. An article.– (HBL Oct 25, 2017 p 6)

IDFC BANK"IDFC Bank Ltd.: Statement of unaudited financial results for the quarter and half year ended

September 30, 2017 (Standalone)" – An advertisement feature. – (HBL Oct 26, 2017 p 7)

"IDFC Bank Q2 net falls 39.7% to Rs.234 crore" – IDFC Bank, a subsidiary of IDFC Ltd, reported a39.7% year-on-year drop in its second quarter net profit at Rs.233.66 crore, hurt by higher provisioning andlower income. On a sequential basis, net profit fell 46.6% from Rs.437.59 crore in the April-June quarter.Total income fell 5.1% from the year-ago period to Rs.2,365.06 crore in the July-September quarter, the banksaid in a notification to the stock exchanges. In the previous quarter, the total income was Rs.2,793.98 crore.A report. – (FE Oct 26, 2017 p 10)

INDIAN OVERSEAS BANK"IOB will turn around in 2018-19 and it will be sustained thereafter" – Edited excerpts from an interview

with R Subramaniakumar, MD & CEO, Indian Overseas Bank. – (BS Oct 23, 2017 p 8)

INDUSIND BANK"IndusInd Bank, Mobikwik tie up" – IndusInd Bank and digital financial services company Mobikwik have

together launched payments wallet 'IndusInd Mobikwik', the lender said in a release. The application's 'directdebit feature' enables the bank's account-holders to link their accounts to the payment wallet, facilitating easypayments. – (HBL Oct 24, 2017 p 6)

– BHARAT FINANCIAL INCLUSION

Bandyopadhyay, Tamal – "The untold story behind IndusInd-Bharat Financial merger" – An article.– (Mint Oct 23, 2017 p 6)

Ghutukade, Vijay – "IndusInd Bank-Bharat Financial Inclusion merger: Win-win for both" – The dealis margins-, capital-, return-on-asset-, and return-on-equity-accretive for the merged entity. An article.– (Cmar 32(16) Sep 25-Oct 8, 2017 p 15)

– 4 –

KARNATAKA BANK"3 new GMs for Karnataka Bank" – Karnataka Bank has promoted three of its Deputy General Managers

as General Managers. A press release gave the names of the new General Managers as Gokuldas Pai,Manjunatha Bhat B K and Mahalingeshwara K. Prior to the elevation, Pai was heading the Bengaluru regionof the bank, Bhat the human resources and industrial relations department, and Mahalingeshwara the creditdepartment of the bank. – (HBL Oct 25, 2017 p 6)

"Karnataka Bank to focus on credit quality" – Quality credit growth will be one of the focus areas ofKarnataka Bank during the current financial year, according to Mahabaleshwara M S, Managing Directorand Chief Executive Officer of the bank A report. – (HBL Oct 24, 2017 p 6)

KOTAK MAHINDRA BANK"Kotak Mahindra Bank Q2 net profit rises to Rs.994 cr on higher interest income" – Kotak Mahindra

Bank Ltd reported a 22.26% rise in its September quarter net profit, beating analyst estimates, due to highernet interest income and other income. The private lender reported standalone net profit of Rs.994.31 crore inthe quarter, against Rs.813.29 crore in the last fiscal. A report. – (Mint Oct 26, 2017 p 6)

"Recapitalisation will boost lending" – Edited excerpts from an interview with Dipak Gupta, Joint ManagingDirector and Jaimin Bhatt, President & Group CFO, Kotak Mahindra Bank. – (FE Oct 26, 2017 p 10)

PUNJAB NATIONAL BANK"EEPC inks MoU with Punjab National Bank" – The Engineering Export Promotion Council (EEPC) of

India has signed a memorandum of understanding with Punjab National Bank to provide easy access tofinance for the SMEs and merchant exporters of the council. PNB will provide finances with assurance thatloans up to Rs.10 crore will be provided within six to seven weeks at competitive rates, said a press statementissued by EEPC India. – (HBL Oct 25, 2017 p 4)

RBL BANK (RATNAKAR BANK)"RBL Bank profit jumps 68% in Q2" – RBL Bank reported a 68 per cent jump in second quarter net profit

at Rs.151 crore against Rs.90 crore in the year-ago period. Net interest income (interest earned less interestexpended) was up 39 per cent year-on-year (y-o-y) at Rs.420 crore. A report. – (HBL Oct 26, 2017 p 6)

STATE BANK OF INDIA"Fire guts SBI office in Kolkata: Blaze broke out at building which also houses offices of LIC, other

financial firms" – A massive fire broke out on the 16th floor of a commercial building in central Kolkata,gutting the global market office of the State Bank of India (SBI). – (H Oct 20, 2017 p 5)

"Investments not contingent upon rates" – Edited excerpts from an interview with Rajnish Kumar, Chairman,State Bank of India. – (ET Oct 23, 2017 pp 1, 12)

"RERA has revived home sector demand" – Excerpts from an interview with Rajnish Kumar, Chairman,State Bank of India. – (TI Oct 26, 2017 pp 15, 16)

"SBI looking to sell non-core assets" – SBI has invited fresh bids from investment or merchant bankers byNovember 7 to enable sale of its non-core assets. – (HBL Oct 24, 2017 p 6)

"SBI, Escorts in pact for tractor finance" – State Bank of India has signed an agreement with Escorts tofinance farmers for purchase of Escorts tractors. The aim of the tie-up is to promote, market and makeaccessible, organised finance facility at competitive interest rates to farmers, who wish to purchase tractorsmanufactured by Escorts. – (HBL Oct 24, 2017 p 6)

"We are well capitalized: SBI" – Edited excerpts from an interview with Rajnish Kumar, Chairman, StateBank of India. – (Mint Oct 26, 2017 p 18)

– 5 –

– DEBIT CARDS

"SBI loses share in spends" – Canara Bank and Kotak Mahindra Bank were the gainers as State Bank ofIndia (SBI) lost market share in debit card spends between April and August, slipping to below its pre-demonetisation level. According to data released by the Reserve Bank of India (RBI), SBI's share in debitcard spends slipped to 29.88% in August from 31.27% in April. This is below the bank's October 2016 shareof 29.96%. SBI clocked debit card spends worth Rs.10,582.86 crore in August, down from Rs.11,720.73crore in April. Interestingly, the gainers over the four-month period were not the usual suspects - HDFCBank, ICICI Bank and Axis Bank. A report. – (FE Oct 23, 2017 pp 1, 2)

– MICROFINANCE - SHGs

"SBI to step up lending to self-help groups" – State Bank of India will be focusing on extending micro-finance to self-help groups (SHGs) through the Pradhan Mantri Mudra Yojana (PMMY).– (HBL Oct 24, 2017 p 6)

UNION BANK OF INDIA"Union Bank of India launches Union Sahyog App for its customers" – Driving the rollercoaster wave of

India's Digital transformation, Union Bank of India has launched trailblazing innovation with the big launch ofits app Union Sahyog, which will bring entire customer facing banking on the mobile. The Union Sahyog Appfacilitates easy viewing of the bank extensive product offerings in both English and Hindi language; seekingto serve hands-on convenience to Union Bank customers and others on their mobile devices. While UnionSahyog is downloadable from Play Store and operable for android phones; it will be available soon in iOS too.– (HBL Oct 20, 2017 p 3)

CHINA"China's central bank warns of 'Minsky Moment' as economy powers ahead" – China's central bank

chief issued a stark warning about asset bubbles in the world second-largest economy, which looks set toclock its first acceleration in annual growth since 2010, driven by public spending and record bank lending.Governor Zhou Xiaochuan spoke of the risks of a 'Minsky moment' in the economy, referring to a suddencollapse in asset prices after long periods of growth, sparked by debt or currency pressures. A report.– (ET Oct 20, 2017 p 5)

JAPANCurran, Enda and Fujioka, Toru – "BoJ's monetary experiment is set to continue" – Shinzo Abe's solid

election win greenlights a continuation of the Bank of Japan's (BoJ's) massive economic stimulus, entrenchinga divide with global peers who are either heading in the opposite direction or mulling moves to do so. Anarticle. – (Mint Oct 24, 2017 p 1)

UK"The Bank of England: Grant me tighter policy...but not yet" – Britain's central bank has already waited

a decade before raising rates. It should wait a few months longer. An article.– (Eco 425(9064) Oct 28-Nov 03, 2017 p 14)

"Interest rates: What goes down..." – Rates are due to rise. The economy may be more vulnerable than itseems. An article. – (Eco 425(9064) Oct 28-Nov 03, 2017 pp 47-48)

USA"End of the crisis-era growth taboo at US banks" – Positive noises heard from lenders on new businesses

and top-line expansion amid hope for gentler ride from regulators. A report. – (FT Oct 19, 2017 p 13)

– BANK REGULATION

Mohan, T T Ram – "Revamping bank regulation: Trump proposals" – An article.– (EPW 52(41) Oct 14, 2017 pp 10-11)

– 6 –

– FEDERAL RESERVE

"Trump considers Fed's Powell, economist Taylor to lead central bank" – President Donald Trump isconsidering nominating Federal Reserve Governor Jerome Powell and Stanford University economist JohnTaylor for the central bank's top two jobs, in an apparent bid to reassure markets and appease conservativeshungry for change. Under that scenario, either Powell or Taylor would take the reins from Fed Chair JanetYellen when her term expires in early February, and the other would fill the vice chair position left vacantwhen Stanley Fischer retired this month. A report. – (IE Oct 22, 2017 p 17)

AADHAAR LINKAGE PROGRAMME"Do not force bankers to do Aadhaar seeding: Officers' body: AIBOC questions legality of mandating

UID linking of accounts" – The All India Bank Officers' Confederation (AIBOC) wants Aadhaar seedingof accounts put on hold till the Supreme Court comes out with a clear directive. 'The government shouldmake it clear to the people that the seeding of Aadhaar is voluntary and not mandatory,' according to DThomas Franco, General Secretary, AIBOC. A report. – (HBL Oct 23, 2017 p 17)

"RBI underlines: must link all bank accounts with Aadhaar" – Millions of bank account holders acrossthe country will have to compulsorily link their accounts to their Aadhaar number by December 31, 2017. TheReserve Bank of India (RBI) clarified that linking Aadhaar to bank accounts is mandatory. Clarificationcomes ahead of Supreme Court hearing on Aadhaar petitions invoking right to privacy next month. A report.– (IE Oct 22, 2017 pp 1, 2)

ANTI-MONEY LAUNDERING"Banks mandated to check original ID proofs for certain cash dealings" – The government has made it

mandatory for banks and financial institutions to check the original identification documents of individualsdealing in cash above the prescribed threshold, to weed out the use of forged or fake copies. A report.– (ET Oct 23, 2017 p 12)

ARTIFICIAL INTELLIGENCE– UNEMPLOYMENT

"Bankers are embracing robots but fear job cuts" – A top executive at a major Wall Street bank is deepinto his spiel on how artificial intelligence will make the firm smarter and leaner when he pauses to take aquestion: What does this mean for young people entering the business? The silence grows. 'It's, um,' he says,shifting tone and making clear he can't speak publicly. That question is gnawing at him, he confides, becausehe has kids. 'I would want them to pick their careers very carefully. I think AI is going to eliminate most jobs.That's a private view. I think we're just starting to feel that.' A report. – (BS Oct 20, 2017 p 16)

ATMs– POINT-OF-SALE TERMINALS

"Banks prefer to increase PoS machines than ATMs" – Banks are now more keen on expanding theirpoints of sale (PoS) network than ATMs due to the government's focus on digital transactions afterdemonetisation and lower amounts of cash in circulations. According to RBI data, banks have increased PoSmachines by 95% this August to nearly 29 lakh from last year. In comparison, the number of ATMs has onlyincreased 2.5% to 2.2 lakh machines. A report. – (TI Oct 24, 2017 p 17)

BANK CAPITAL– PUBLIC SECTOR BANKS

"Bankers, credit rating agencies upbeat" – Will help banks lend to crucial sectors of the economy, clean upbalance sheet. These funds will also help in efficiently managing risk and credit capital-related requirementsof the banks, according to Rajnish Kumar, Chairman, State Bank of India. A report.– (HBL Oct 25, 2017 p 6)

– 7 –

"The big bailout" – Recap bonds offer a pragmatic solution to bank debt, but there could be long-termimplications. An editorial. – (HBL Oct 26, 2017 p 8)

"Capital infusion isn't a solution, but is unavoidable" – Edited excerpts from an interview with UshaThorat, former deputy governor, Reserve Bank of India. With the government announcing a mega bankrecapitalisation package of Rs.2.11 lakh crore, many public sector banks (PSBs) starved of cash wouldbreathe more easily. She says this capital infusion will help banks withstand the write-offs needed for resolutionof non-performing assets (NPAs). Thorat tells Joydeep Ghosh the government should quickly follow up withprofessional management, autonomy and more accountability in these lenders. – (BS Oct 26, 2017 p 10)

"Economic ambition not beyond reach" – Ball-in bonds could be part of banks' capital. An editorial.– (ET Oct 25, 2017 p 14)

"Finally, a stimulus package: PSBs get Rs.2.11 lakh cr recap" – Union Cabinet approved a $32.43 billion(Rs.2.11 lakh crore) plan to recapitalise state banks over the next two years, in a bid by Prime MinisterNarendra Modi to tackle a major drag on the economy that has frustrated his attempts to boost growth. Thedecision to recapitalise public sector banks with Rs.2.11 trillion will address the bank balance sheet problemand push growth forward. By some estimates, banks need as much as $65 billion in additional capital byMarch 2019 to fill the hole left by soured loans and to meet new regulatory capital requirements. A report.– (BS Oct 25, 2017 pp 1, 12)

"Govt may follow 1990s strategy to sell recapitalization bonds: analysts" – The finance ministry is likelyto repeat the 1990s strategy for selling recapitalisation bonds as it is considered less disruptive for governmentfinances even as the bond market is expected to be the biggest casualty irrespective of the route that is finallychosen, say experts. – (Mint Oct 26, 2017 p 8)

"How the bank recap will play out" – Prime Minister Narendra Modi administration will inject an unprecedentedRs.2.11 lakh crore into struggling state-run banks over the next two years, his biggest attempt to revivegrowth. Morgan Stanley is calling this India TARP - a reference to the US Troubled Asset Relief Programimplemented in the throes of the financial crisis - and Indian stock markets welcomed the decision but bondinvestors were more circumspect. A report. – (BS Oct 26, 2017 p 10)

"PSB capital infusion plan gets IMF thumbs-up" – Stressing that India will have to reform continuously toaccelerate growth, the International Monetary Fund (IMF) welcomed the government announcement to upthe recapitalisation of state-run banks as a 'positive'. 'We have a long view that more resources are neededfor recapitalisation and from that sense, the plans put out is a positive step,' according to Andreas Bauer,senior resident representative for the Fund, at an event in Mumbai. Stating that there is no dearth of reformagenda needed, he said a series of reforms is needed to achieve the 8% GDP growth aspiration. A report.– (FE Oct 25, 2017 p 2)

"Pursuit of growth" – Recapitalisation of public sector banks should set the sector well on the path to recovery.An editorial. – (H Oct 26, 2017 p 8)

"Recapitalisation will restore the health of banking system, says RBI chief: Healthy banks that lendto sound firms create a virtuous cycle of investment and jobs: Urjit Patel" – Raising a toast to thegovernment Rs.2.11-lakh crore recapitalisation plan for public sector banks, Reserve Bank of India GovernorUrjit Patel said it is a decisive package to restore the health of the Indian banking system and a monumentalstep forward in safeguarding the country economic future. For the first time in the last decade, we now havea real chance that all the policy pieces of the jigsaw puzzle will be in place for a comprehensive and coherent,rather than piecemeal, strategy to address the banking sector challenges. It bodes us well that this step hasbeen taken in a time of sound macroeconomic conditions for the economy on other fronts. A report.– (HBL Oct 26, 2017 p 6)

"What analysts say about the capital infusion into PSU banks" – The government's plan to issue Rs.1.35trillion worth of recapitalization bonds is likely to bolster India economic growth in the medium to long term asit will help public sector banks clean up their books and get back in the game. Some analysts, however, feelthat in the short-term there could be negative implications for the fiscal deficit. A report.– (Mint Oct 26, 2017 p 8)

– 8 –

Aurodeep – "Jugaad of bank recapitalisation: How finance ministers adhere to fiscal deficit targetswhile increasing borrowings" – More immediate collateral damage comes in the form of the governmenthaving to spend some 90% of its fiscal deficit every year just paying interest on past debt. An article.– (TI Oct 26, 2017 p 12)

Gupta, Ashish and Shah, Kush and Others – "Recapitalisation could prove credibly efficacious" – Withthe capital infusion from the government, banks would increase provisioning on their stressed loans, whichwill result in book value and adjusted book value converging. An article. – (FE Oct 26, 2017 p 9)

Iyer, Aparna – "Is the government's bank recapitalization plan a bailout?" – An article.– (Mint Oct 26, 2017 p 4)

Mehta, Pratap Bhanu – "Bowing to necessity" – The bank recapitalisation scheme reflects governmentfailure to transform state-capital relations. The recapitalisation should leave us uneasy about how much thebalance of power in Indian society is still skewed in favour of big capital, not the small entrepreneur orordinary investor. This is underscored in two symbolic dimensions of the measures announced. When banksand big capital mis-price risk or engage in cronyism, the problem can be fixed by 'accounting' tricks. Butwhen it comes to protecting ordinary people, especially farmers, from risk or investing in health and education,it leads to worries about fiscal deficit and sovereign downgrading. The resentment this contradiction generateswill be sharpened. An article. – (IE Oct 26, 2017 p 12)

Mukherjee, Andy – "$32-b shot in the arm: Time to give India some credit" – After three years of hand-wringing, India has finally done the right thing by its struggling banks. An article. – (ET Oct 26, 2017 p 11)

Sabnavis, Madan – "Bonds are the best solution" – The government will have to decide the exact mode ofissue of the bonds and how this will be spread over the years. This cannot be a one-time exercise and has tobe spread over one-two years, depending on how the PSBs shape up. Also, it has to cherry-pick the banksthat should be capitalised through this route. An article. – (FE Oct 25, 2017 p 8)

Vageesh, N S – "Capital infusion plan - a belated fix" – To get economic growth back on track, govt musthelp revive bank lending, investments. During the last three years, the government has been making measlyallocations in the Budget and rationing capital. An article. – (HBL Oct 25, 2017 p 6)

BANK LENDING"Led by CPs, credit offtake grows 14.6% to Rs.80 L Cr till Sept" – Driven by commercial papers, the

record low credit growth, it seems, has turned around, as outstanding credit till the end of September rose14.3% to Rs.80.09 lakh crore, against 13.6% a year ago, according to RBI and Sebi data. At a paltry 5.08%,fiscal 2017 was the worst year in over six decades for bank credit - lowest since fiscal 1953, when it grew ata much lower 1.8%. But this growth is not led by bank credit but by commercial papers. The year-on-yearbank credit growth as of September 15 stood lower at 7.5% as against a deposit growth of 10%, accordingto RBI fortnightly data. A report. – (ET Oct 20, 2017 p 7)

Panagariya, Arvind – "How to revive bank credit: Government should, to begin with, offer PSBsbonds in return for equivalent equity" – To date, not a single public sector enterprise has been sold. It istime that the government directed the Department of Investment and Public Asset Management to translatethe CCEA resolution into action. An article. – (TI Oct 23, 2017 p 12)

BANKING REFORMS– BANK CAPITAL

"Banks recapitalization must come with governance reforms" – The government's plan to recapitalisepublic sector banks (PSBs) is a commendable one. Both the amount and the timing are appropriate. TheRs.2.11 lakh crore amount is the best possible number that experts have put on the table as required bybanks. None expected the government will actually cough up so much. It takes care of all loan losses so far,a good 50 percent of the provisioning that may be needed for known cases of stress and enough growthcapital to fund at least 10 percent loan growth for the next two years. A report. – (Mint Oct 26, 2017 p 18)

– 9 –

"The big bang the economy needed" – Recapitalization will be a big relief for PSBs, but real thing is thepromise of sweeping banking reforms. An editorial. – (FE Oct 25, 2017 p 8)

"CEA backs selective capital infusion, bank privatization" – Reforms soon to limit moral hazard of protectingbanks from outcome of bad decisions in past: Subramanian. A report. – (Mint Oct 26, 2017 p 8)

"Help is on the way" – Centre's recapitalisation plan must be backed by effective reforms in bank governance.An editorial. – (TI Oct 26, 2017 p 12)

"Necessary, not sufficient" – Governance reforms must follow bank recapitalisation. An editorial.– (BS Oct 26, 2017 p 9)

"Reforms needed to back bank recapitalization" – Aggressive capital infusion by the government shouldnot become an alternative for better governance. An article. – (Mint Oct 26, 2017 p 16)

Subramanian, Arvind – "Recapitalisation success depends on future reforms" – Public-to-private lendinghas proved toxic. It may be better to have more private-to-private lending and private-to-public lending. Anarticle. – (FE Oct 26, 2017 p 8)

BANKING REGULATOR - RBI– RECRUITMENT

"RBI to recruit 623 'Assistants'" – The Reserve Bank of India is recruiting 'Assistants' for its variousoffices in the country. A total of 623 such vacancies are open and the bank has invited applications fromIndian citizens who are graduates and who are in the age group of 20 to 28 (as on October 1, 2017). Thegross monthly emoluments for the post is Rs.32,528 per month. – (HBL Oct 26, 2017 p 6)

BANKS BOARD BUREAU"BBB makes public suggestions made to govt during April-Sept" – The Banks Board Bureau (BBB)

made public some of the recommendations it had made to the government between April 2017 and September2017. Among these were recommendations for the vacancies in public sector banks (PSBs) for FY18. 'Thishas made it possible to ensure that the final decision on appointments are made by the government before thevacancy arises,' the bureau said in a statement on its website, adding that it has also been makingrecommendations for appointment of non-executive chairmen in PSBs. A report. – (FE Oct 25, 2017 p 10)

BLOCKCHAIN TECHNOLOGYHackett, Robert – "Blockchain mania!" – An article. – (For(Asia) 178(3) Sep 1, 2017 pp 26-33)

Wieczner, Jen – "The 21st-century bank robbery" – An article. – (For(Asia) 178(3) Sep 1, 2017 pp 34-41)

CENTRAL BANKS"Central banks' balance sheets don't need to shrink" – The major central banks of the world do not need

to reduce their balance sheets as inflation is not a concern at the moment, according to Adair Turner, chairmanof the Institute for New Economic Thinking. '..to stop the inflation from going too high, they have to sell someof their bonds with the deliberate aim of increasing long term interest rates. Then they should shrink balancesheets. If that is not needed, they shouldn't shrink it'. A report. – (IE Oct 22, 2017 p 17)

Basu, Kaushik – "To central banks: Work together or suffer alone" – Each central bank stands to gain bykeeping interest rates low, but, collectively, their approach constitutes a trap. Perhaps a new grouping of themajor economies needs to step up, before it is too late. An article. – (Mint Oct 24, 2017 p 15)

– 10 –

CONSUMER FINANCE PROVIDER– ONLINE LENDING

Verma, Smitha – "Tapping the untapped" – For a country with a large unbanked population, the alternativefinancial services ecosystem has come as a big boon. Customers, who were mostly shown the door bytraditional banks, now have an instant, hassle-free and accessible solution at the tap of a key. An article.– (FE Oct 22, 2017 p 7)

CORPORATE DEBT RESTRUCTURING"Lenders exit IVRCL's corporate debt package" – The consortium of lenders, which had approved a

Corporate Debt Restructure package for IVRCL, has decided to exit the CDR mechanism. The Hyderabad-based construction and infrastructure company received a communication from the Corporate DebtRestructuring Cell informing that the lenders have decided to exit the CDR mechanism, which was extendedto the company to facilitate its turnaround, by bringing down the interest rate and extending moratorium onloans. A report. – (HBL Oct 25, 2017 p 3)

CORPORATE FINANCE"Corporate loan pick-up could fizzle out: Analysts" – Signs of credit revival in the books of private lenders

might not be an indication of investment revival, analysts have cautioned. The corporate loan books of AxisBank and IndusInd Bank had shown good signs. These could be essentially working capital loan extensionsdue to a pullback by public sector banks (PSBs). Such a rise in the loan books could be tricky for privatebanks, as a system-wide credit revival would put PSBs back in the game. The business opportunity couldthen again swing away from private lenders, say analysts. A report. – (BS Oct 20, 2017 p 4)

– LEGAL ENTITY IDENTIFIER

"RBI to make LEI must for cos with over Rs.5 crore exposure" – Move to help in preventing multipleloans to firms against the same collateral. After making Legal Entity Identifier (LEI) mandatory for transactionsin interest rate, forex and credit derivative market, the Reserve Bank of India (RBI) is set to make LEIcompulsory for companies having aggregate fund-based and non-fund based exposure over Rs.5 crore. LEIis a unique 20 digit alphanumeric code that will be assigned to corporate borrowers. Banks will be required tocapture this number in the Central Repository of Information on Large Credits (CRILC) database thatcaptures details of loan above Rs.5 crore. A report. – (IE Oct 23, 2017 p 11)

CURRENCY SWAPS"Monetary apartheid?" – Urjit Patel's argument on currency swaps should be heard. An editorial.

– (BS Oct 20, 2017 p 9)

DIGITAL BANKINGSinghi, Mahesh – "Digitisation is changing banks" – Corporate banks are streamlining transaction-banking

teams in favour of payment and mobile-wallet platforms. An article. – (FE Oct 26, 2017 p 9)

DIGITAL CURRENCIESJinoy Jose P – "Why we can't ignore cryptocurrencies anymore" – An article. – (HBL Oct 26, 2017 p 9)

DIGITAL PAYMENTSRebello, Joel and Shukla, Saloni – "No more wallet parking: The empire strikes back" – Fintech firms,

which shook the banking industry with their innovative payments solutions about two years ago, are no longerthe challengers we knew them to be. Traditional banks have hit back and are now at the forefront of thebusiness. An article. – (ET Oct 25, 2017 p 16)

– 11 –

– CHINA

"On digital payments" – Four hundred and sixty-nine million people made online payments in China in 2016.A larger number used phones to pay in offline retail stores. Citings from Why China is leading the FintechRace. – (ET Oct 23, 2017 p 10)

DIGITAL- ONLY BRANCHES– E-LOBBIES

"Bank branches make way for e-Lobbies" – Indian banks are increasingly pruning their physical brancheswith a good number of them shifting to digital-only formats. SBI, Kotak Mahindra Bank, Axis Bank, andBank of Baroda, which are seeing a growing proclivity among their clients to opt for digital banking at theirpilot branches, are raising the number of digital-only branches or e-lobbies which meet nearly half the functionsof manned branches. Most banks have plans to automate over 90% of their banking transactions at branchesand divert their staff towards a more retail-centric approach which involves more customer engagement. Areport. – (ET Oct 24, 2017 p 17)

FAKE CURRENCY NOTES"RBI declines info on fake notes, printing defects" – The Reserve Bank of India (RBI) said it has

processed 9,711.62 million demonetized notes of Rs 500 denomination and 4,709.72 million Rs.1,000 notes tillAugust this year, but claims to have no information about counterfeit notes yet. This was in response to anRTI application filed by TOI. The RBI's response to the RTI query, seeking information on the fake currencydetected post demonetization, said: 'Processing of notes is in progress.' A report. – (TI Oct 20, 2017 p 7)

FINTECH START-UPS"Banks back start-ups, eye access to tech solutions in return" – Banks are fast emerging as accelerators

for financial technology startups, offering them opportunities to build proof of concept and scale in return fortheir products or technology solutions. Some lenders also provide the start-ups platforms to secure venturecapital finance and allow them to co-develop solutions under their guidance. State Bank of India (SBI), YesBank Ltd, Kotak Mahindra Bank Ltd, RBL Bank Ltd, HDFC Bank Ltd and ICICI Bank Ltd are among thetop lenders supporting early stage fintech start-ups through mentoring and collaboration, by organizinghackathons or through programmes that offer early finance to start-ups that suit their requirements. A report.– (Mint Oct 25, 2017 p 6)

FOREIGN BANKS– DEUTSCHE BANK

"We're insourcing: Deutsche Bank COO" – Excerpts from an exclusive interview with Kim Hammonds, isa mechanical engineer by training. She spent 16 years with Ford, and then a few years with Dell and Boeing.Since 2013, she has been with Deutsche Bank, and is currently the bank's chief operating officer (COO)responsible for technology and operations. She was recently in Bengaluru, which hosts one of the bank'smajor global technology and operations centres. The bank has about 8,500 employees in these centres inIndia across Mumbai, Jaipur, Bengaluru and Pune. – (TI Oct 20, 2017 p 14)

FOREIGN BANKS IN INDIA– HSBC

"Jayant Rikhye named HSBC India CEO" – HSBC has named company veteran Jayant Rikhye as the newchief executive of its India operations, effective Dec. 1. Rikhye, who has been with the bank for 28 years invarious roles, will replace Stuart Milne who will move to a new role after leading India operations for fiveyears, according to the company. – (HBL Oct 24, 2017 p 6)

– 12 –

GOVERNMENT STAKE– PUBLIC SECTOR BANKS

"Eight banks on govt's first list" – The government is considering diluting its stake on a priority basis in thosebanks where its shareholding is above 75%, as it mulls ways to gather resources to boost the capital base ofpublic sector banks (PSBs) struggling with massive bad assets. While market conditions will play a crucialrole in the stake sale plan, the government would first like to see its share trimmed below 75% in certainPSBs to achieve the twin goals of raising funds for recapitalisation and complying with the minimum (25%)public-float norm, according to a senior government official. As of end-September, the government held morethan 75% in eight PSBs - United Bank of India, Indian Bank, Bank of Maharashtra, Central Bank of India,Punjab and Sind Bank, Indian Overseas Bank, UCO Bank and Bank of India. – (FE Oct 23, 2017 pp 1, 2)

INSOLVENCY AND BANKRUPTCY CODE– NPA RESOLUTION

"Bankers divided on selection criteria for new investors" – In June, the central bank had identified 12large accounts which banks referred to the NCLT. Lenders are divided on the criteria to select new investorsfor companies which have been admitted to the National Company Law Tribunal (NCLT) under the Insolvencyand Bankruptcy Code (IBC), senior bankers said, adding that talks held by the Indian Banks' Association(IBA) have been inconclusive so far. A report. – (FE Oct 24, 2017 p 10)

– PERSONAL GUARANTEES

Bhageria, Anand – "Dealing with promoters' guarantees" – An article. – (Mint Oct 23, 2017 p 5)

LOAN REPAYMENTSingh, Sanjay Kumar – "Loan repayment difficulties? Unlock value of other assets: Other options for

businessmen include loan restructuring and consolidation" – With the economy slowing down, anddemonetisation and the goods and services tax (GST) dealing sharp blows in quick succession to smallerbusinesses, many business owners have got into difficulties. This is reflected in the rising non-performingasset (NPA) levels in commercial vehicle loans and loans against property (see table), two borrowing facilitiesutilised widely by businessmen. An article. – (BS Oct 20, 2017 p 11)

MONETARY POLICY"MPC minutes suggest RBI to tread cautious path" – The minutes of the recent Monetary Policy Committee

(MPC) meeting suggest that the Reserve Bank is likely to tread a cautious path and there is little chance ofa rate cut in the near term as inflation is expected to inch upwards, according to a Kotak Economic Researchreport. – (IE Oct 22, 2017 p 17)

"RBI simply doesn't get it" – That an MPC member is talking of a rate-hike says it all. An editorial.– (FE Oct 23, 2017 p 6)

Rajadhyaksha, Niranjan – "Making sense of interest rate policy" – An article. – (Mint Oct 25, 2017 p 18)

– INTEREST RATES - DEPOSITS

Kalyanasundaram, S – "Forgotten depositors" – Spare a thought, before arguing for rate cut. An article.– (HBL Oct 26, 2017 p 9)

MONETARY POLICY TRANSMISSIONBakshi, Ishan – "Improving monetary transmission" – A graphical report. – (BS Oct 23, 2017 p 4)

– 13 –

NON-PERFORMING ASSETS"Axis Bank's eight NPA assets to be identified by other lenders too" – The eight consortium accounts

that were classified as non-performing assets by Axis Bank last week after a directive from the ReserveBank of India will have to be classified as NPAs by the other lenders who are part of the consortium, bankerssaid. The banking sector exposure to these accounts would be close to Rs.40,000 crores, Axis Bank toldanalysts at its recently-held second quarter post-earning call. – (FE Oct 24, 2017 p 10)

"Banking sector stares at Rs.40,000 cr more NPAs" – The banking sector fears accretion of more thanRs.40,000 crore of bad loans to its books following recent classification of eight consortium accounts of AxisBank as non-performing assets by the RBI. The Reserve Bank has directed certain reclassifications in theprivate sector lender's asset classification and provisioning as on March 2017, subsequent to the annual RiskBased Supervision (RBS) exercise conducted for 2016-17. A report. – (HBL Oct 23, 2017 p 13)

– MUDRA LOANS

"Rising bad loans from MSMEs also a concern, says expert: Gross NPAs from Mudra loans varybetween 10 and 15%, especially in some pockets" – When it comes to bad loans, it is not just largecorporates that banks are worried about. Banking industry estimates suggest a steady rise in bad loans fromlending to MSMEs (micro, small and medium enterprises), now re-classified as Mudra loans. According toindustry estimates, gross non-performing assets arising out of Mudra loans vary between 10 and 15 per cent,especially in some pockets. A report. – (HBL Oct 20, 2017 p 4)

NPA RESOLUTIONGhutukade, Vijay – "Banks: Pain to lead to gain" – The speedy resolution of the large NPA accounts to

help unlock existing provisions and release risk weight assets. An article.– (Cmar 32(14) Aug 28-Sep 10, 2017 pp 18-20)

– ONE-TIME SETTLEMENT SCHEME

"Lenders see one-time settlements boosting pace of NPA resolution: SBI, PNB, others seeimprovement in loan recovery through one-time settlement route" – Banks are betting on one-timesettlements (OTSs) to boost bad loan recoveries as cleaning up their balance sheets through modes such assale of bad loans and restructuring are not yielding anticipated results. State Bank of India (SBI), PunjabNational Bank and smaller lenders such as Bank of Maharashtra, among others, have seen improvement inrecoveries through OTS, according to senior officials of these banks. A report. – (Mint Oct 23, 2017 p 7)

– WILFUL DEFAULTERS

"'Target defaulters' yachts and villas for loan recovery" – Indian banks are lagging in loan recoverybecause they are reluctant to go all out against wilful defaulters in identifying their personal assets. In additionto going after money hidden in subsidiaries and shell companies, banks should pressurise defaulters by targetingtheir 'toys' like yachts and expensive cars and villas. This is the suggestion from Kroll, a corporate investigationand risk consulting firm. A report. – (TI Oct 23, 2017 p 15)

PAYMENTS BANKS– INDIA POST PAYMENTS BANK

"India Post Payments Bank gets private-sector stamp: Vodafone M-Pesa's ex-boss Suresh Sethiappointed MD & CEO" – India Post Payments Bank (IPPB) appointed Suresh Sethi as its ManagingDirector and Chief Executive Officer. Sethi had been selected by the Banks Board Bureau from top contendersfor the post, including public and private sector banking and fintech professionals, according to the companystatement. – (HBL Oct 24, 2017 p 1)

– 14 –

– PAYTM PAYMENTS BANK

"Paytm bank eyes digital wallets: To comply with new RBI norms, it will invest $500 mn in KYCinfrastructure" – Paytm Payments Bank expects the new stricter Know Your Customer (KYC) norms, setby the Reserve Bank of India (RBI) for digital wallets, to boost customer acquisition process for its bankingoperations, according to a top company official. 'A single KYC done by us will be valid for wallet, bank aswell as other financial services,' according to Renu Satti, MD and CEO, Paytm Payments Bank.– (H Oct 23, 2017 p 13)

PMJDY"Jan Dhan accounts see surge in cash inflows in past 3 months: 1 crore new accounts have been

opened" – There has been a spurt in cash flows into Prime Minister Jan Dhan Yojana (PMJDY) bankaccounts in the past three months. The period between July and October witnessed a steep rise in thecumulative balances, of the order of Rs.2,554 crore, substantially higher than the Rs.400 crore or so betweenmid-May and mid-July. The total balance in these accounts now stands at Rs.67,330 crore.– (HBL Oct 24, 2017 p 1)

PRIORITY SECTOR LENDING"Agri, education pangs for priority sector lending" – Meeting priority sector lending targets could be

challenging for banks this year as at least two sectors - agriculture and education - are topping the list ofstressed assets on the retail side. While growth in loans for agriculture and allied activities is at a five-yearlow, that for education has slipped into negative territory. A report. – (BS Oct 20, 2017 p 3)

PRIVATE SECTOR BANKS"Gross NPAs of private lenders up 55% in Sept qtr" – Gross NPAs for seven private banks which have

declared their quarterly results so far rose 55 per cent over a year before to Rs.35,772 crore by end-September. A report. – (BS Oct 20, 2017 p 5)

"Old pvt-sector banks' provisions see sharp rise in Sept quarter" – Asset quality of old private-sectorbanks worsened in the September quarter of FY18 along with a sharp rise in provisions. The spike in provisionsalso led to fall in net profit for most of these banks, data compiled by FE showed. South Indian Bank reporteda 144% year-on-year (y-o-y) rise in provisions to Rs.455.9 crore in Q2 FY18 which led to a 96% y-o-y fallin net profit to Rs.4 crore. Karnataka Bank's provisions rose 73% y-o-y in the September quarter of FY18 toRs.225.9 crore and resulted in a 24.5% fall in net profit in the same period. The bank's net profit fell toRs.93.3 crore in Q2 FY18 from Rs.123.8 crore in the same quarter last year. Lakshmi Vilas Bank reporteda rise in provisions in the quarter. Its provisions rose 67% y-o-y to Rs.187.3 crore in Q2FY18 and leading toa 83% y-o-y fall in net profit to Rs.10.5 crore. A report. – (FE Oct 20, 2017 p 5)

PUBLIC CREDIT REGISTRY"RBI sets up task force on 'Public Credit Registry'" – The Reserve Bank of India has constituted a 10-

member Level Task Force on Public Credit Registry (PCR) for India which will, among other things, suggesta roadmap for developing a transparent, comprehensive and near-real-time PCR for India. Headed by Y MDeosthalee, ex-CMD, L&T Finance Holdings, the task force includes Sekar Karnam, DMD & Chief CreditOfficer, SBI; Vishaka Mulye, ED, ICICI Bank; Rashesh Shah, Chairman and CEO, Edelweiss Group; andSriram Kalyanaraman, MD and CEO, National Housing Bank. – (HBL Oct 24, 2017 p 6)

PUBLIC SECTOR BANKS– STOCKS

"PSB Shares surge up to 7%" – Public sector bank stocks have been battered in the wake of a surge in non-performing assets and poor credit offtake in the last two years. Bank stocks surged up to 7 per cent on thestock exchanges with the market seemingly getting wind of the bank recapitalisation package before theofficial announcement. – (IE Oct 25, 2017 p 15)

– 15 –

SMALL FINANCE BANKS– ESAF SMALL FINANCE BANK

"Customer response to higher deposit rates has been encouraging, says ESAF Bank MD: Bank hasmobilised over Rs.1,000 crore in deposits in the first seven months of operations" – Excerpts froman interview with Paul Thomas, Managing Director and CEO, ESAF Small Finance Bank.– (HBL Oct 24, 2017 p 6)

VIOLATION OF REGULATORY INSTRUCTIONS– YES BANK / IDFC BANK

"RBI slaps penalty on YES Bank, IDFC Bank" – The Reserve Bank of India (RBI) has slapped a penaltyof Rs.6 crore on Yes Bank and Rs.2 crore on IDFC Bank. According to the RBI, it slapped a penalty on YesBank for non-compliance with the directions issued by RBI on Income Recognition Asset Classification(IRAC) norms and delayed reporting of information security incident involving ATMs of the bank. The RBIimposed a penalty of Rs.2 crore on IDFC Bank for contravention of regulatory restrictions pertaining to loansand advances. – (IE Oct 25, 2017 p 15)

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTUREChandrasekhar, C P and Ghosh, Jayati – "The viability crisis in Indian agriculture" – The dilution of

government intervention in the form of minimum support prices, procurement and public distribution isundermining agricultural production in the country. An article. – (HBL Oct 24, 2017 p 9)

RURAL WAGESBasole, Amit – "Long-run trends in rural wages" – The collapse and stagnation of rural wages over the past

few years deserves a closer look than it has received thus far. An article. – (Mint Oct 24, 2017 p 15)

INDUSTRY

INDUSTRIAL POLICYSingh, Harsha Vardhana – "Putting industrial policy experience to use" – Several specific insights since

the 1980s are available and could be an important part of any large-scale industrial policy initiative. Any singleindustrial policy package doesn't remain relevant as economies evolve. An article. – (Mint Oct 25, 2017 p 18)

SMALL SCALE INDUSTRY

MSMEsMazumdar, Rahul – "MSMEs need liberal investment limits" – The investment ceiling is too low and

should be revised. Besides, additional metrics should be used to define MSMEs. An article.– (HBL Oct 20, 2017 p 7)

– SOUTH INDIA

"Southern SMEs score over others" – MSMEs in Andhra Pradesh and Tamil Nadu posted 21 per cent and18 per cent growth respectively, being key contributors to the growth in this region. A report.– (BS Oct 24, 2017 Supl. p 4)

– 16 –

INTERNATIONAL ECONOMICS

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Oct 23, 2017 Supl. pp 1-16)

LABOUR & PERSONNEL MANAGEMENT

RECRUITMENT"Large companies cut hiring by 45%: Net staff addition at BSE 500 firms at 66,000 in FY17 vs

120,000 in FY16" – The increase in net employees at Indi's largest companies slowed down to 66,000people in the 2016-17 financial year compared with 123,000 people a year earlier. At the end of FY17, a totalof 3.25 million people were on the rolls of 241 companies of the BSE 500 index versus 3.19 million at the endof FY16. Data on employee strength was not available for the rest of the BSE 500 index companies. TataConsultancy Services, Tech Mahindra, ICICI Bank and Axis Bank were the large employers to lead freshhiring during FY17. A report. – (BS Oct 23, 2017 pp 1, 8)

MANAGEMENT

CORPORATE GOVERNANCEGupta, Neeraj and Kirti, Vishwas – "Kotak Committee Report: Inside job for India Inc" – An article.

– (ET Oct 24, 2017 p 14)

Muneer, M and Ward, Ralph – "Clear the boardroom jungle" – The Kotak panel report should bringreforms that will strengthen India's corporate governance. An article. – (ET Oct 20, 2017 p 8)

Tandon, Amit – "Pressing ahead for change" – The Kotak Committee has made wide-rangingrecommendations and sees the boards and auditors as the two critical gatekeepers. An article.– (BS Oct 26, 2017 p 8)

CORPORATE SOCIAL RESPONSIBILITY"Indian firms lead the world in disclosing CSR spends: Study" – India has witnessed a marginal dip in

corporate responsibility-related reporting by the top- 100 companies, but continues to be among the best inthe world in this aspect, a 49-country study has found. It also tops in the list of countries with highest rate ofcorporate responsibility (CR) related information in annual reports, it said, adding 98 per cent of the top 100companies have the details. – (FE Oct 24, 2017 p 11)

INSOLVENCY AND BANKRUPTCY CODEDey, Sudipto – "Insolvency and bankruptcy code: Why directors should be wary of the code"

– An article. – (BS Oct 23, 2017 p 12)

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