Volume XXXI Number 14 January 4, 2016

Classifications     

Economy Banking Agriculture & Rural Development Industry Small Scale Industry

    

International Economics Labour & Personnel Management Management Miscellaneous Books

Newspapers

Weeklies

BS

– Business Standard

BI

– Business India

ET

– Economic Times

BusW

– Business World

FE

– Financial Express

BusT

– Business Today

FT

– Financial Times

CMar

– Capital Market

H

– Hindu

EPW

– Economic and Political Weekly

HBL – Hindu Business Line

SE

– Southern Economist

HT

– Hindustan Times

Eco

– Economist

IE

– Indian Express

For(Asia) – Fortune Asia

TI

– Times of India

CI

Mint – Mint

– Corporate India

CONTENTS

A.

ECONOMY

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B.

BANKING

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C.

AGRICULTURE & RURAL DEVELOPMENT

17

D.

INDUSTRY

18

E.

SMALL SCALE INDUSTRY

20

F.

INTERNATIONAL ECONOMICS

21

G.

LABOUR & PERSONNEL MANAGEMENT

22

H.

MANAGEMENT

22

I.

MISCELLANEOUS

23

BANKERS' BRIEF

Vol. XXXI No. 14 January 4, 2016

ECONOMY "CEA: Growth will recover, but how fast is not certain: We have to do the numbers carefully, especially on fiscal deficit, says Chief Economic Advisor Arvind Subramanian" – Excerpts from an interview with Arvind Subramanian, Chief Economic Advisor. He feels that to move India towards its medium-term growth trajectory both supply-side reforms and demand management are required. – (HBL Dec 24, 2015 p 1) "Global economy, private investment, agriculture main challenges: Jaitley" – Subdued global economy and moderate private sector investment will continue to pose challenge in the next year, according to the finance minister Arun Jaitley. As I speak at the end of the year, the current engines, which are driving the economy will continue, and beyond that the three downsides are global economy, a moderate private sector and agriculture. The finance ministry in its mid-year economic analysis earlier this month lowered the GDP growth forecast to 7-7.5% from 8.1-8.5% projected in the Economic Survey. – (HT Dec 31, 2015 p 14) "India stands out in emerging markets" – The country's equity markets, currency as well as bonds felt the heat due to the worries emanating from the expected US Fed rate hike and Chinese slowdown, but they fared better when compared to most of their emerging market peers. A report. – (BS Dec 31, 2015 p 10) "Relax the deficit target: The economy needs an investment stimulus, as the CEC points out" – An editorial. – (HBL Dec 25, 2015 p 8) "This '16 may not be so sweet" – Stocks to stay volatile, but jump in for long term as India is poised for big leap: Market experts. A report. – (TI Dec 31, 2015 p 16) Ninan, T N – "Ready for a slowdown?" – An article. – (BS Dec 26, 2015 p 9) Shome, Parthasarathi – "2016 through a looking glass: Ten thoughts on the coming year" – An article. – (BS Dec 24, 2015 p 11)

DEFLATION Datta, Devangshu – "When muddling along is strategy" – India is facing deflationary conditions and that changes the paradigms for both lenders and borrowers. Neither India Inc nor the government has much idea how to deal with them. An article. – (BS Dec 28, 2015 p 8)

DIGITAL DISRUPTION Malkani, Dinesh – "Digital disruption is a reality today" – The government understands that digitisation can address the expectations of citizens and be a powerful engine of growth for India's economy. An article. – (FE Dec 31, 2015 p 8)

ECONOMIC CONDITIONS Shah, Ajay – "Preventing a zombie economy" – Stopping India's economic landscape from being littered with zombie firms is essential for recovery. An article. – (BS Dec 28, 2015 p 9)

ECONOMIC GROWTH "Growth challenges" – The mid-year economic review has lowered GDP projection for FY16 to 7-7.5% from 8.1-8.5%, as the economy is riding on just private consumption and public spending, with private investment yet to gather momentum. However, inflation has moderated and government tax collections have been buoyant in the first half of this fiscal as compared to the previous three years. The improvement in tax buoyancy clearly reflects the efficiency in tax administration and the impact of budget proposals especially in indirect taxes. On the external front, exports have contracted close to 19% in the eight months till November and the current account deficit has grown to 1.6% of GDP in Q2FY16 from 0.2% of GDP in Q4FY15. The growth

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in capital formation or investment has been gradually increasing since Q3FY15. The growth contribution of gross fixed capital formation has increased more than 10 percentage points, indicating that growth will have to be more investment-driven and the reliance of economic growth on consumption buoyancy may gradually taper-off. The fiscal outlook for FY17 looks challenging because of the 7th Pay Commission and OROP payouts. A graphical report. – (FE Dec 26, 2015 p 7) "India did well in year of global economic turmoil, says Jaitley" – Looking back at 2015, Jaitley said India has been the bright spot with growth prospects of 7-7.5 per cent despite global slowdown and adversities, and expressed optimism that the growth rate which is 'quite good' would improve further in the months to come. India has responded well to the challenge posed by the slowdown in global economy, he said, but acknowledged that 'there are areas (in which) we have to respond faster'. – (FE Dec 28, 2015 p 2) "India likely to grow at 7-7.5% in 2016, says Kaushik Basu" – The Indian economy is expected to grow at 7-7.5% in 2016, according to the World Bank chief economist Kaushik Basu. Roughly it is in a ballpark of the kind of figure. We (World Bank) have given over 7% or somewhere between 7% and 7.5%, which no matter whether the top-end of it or bottom end of it. India will still be the leader among major economies. Not only in 2015, but we expect India to lead that chart in 2016 as well. – (HBL Dec 30, 2015 p 5) "India may be third-largest economy after 2030: Study" – India could become the world's third largest economy after 2030 and its ascension could see France and Italy kicked out of the exclusive G8 group or its membership increased to 10 to accommodate India and Brazil, according to a new study. According to a report by the UK think tank Centre for Economics Business and Research (CEBR), China will overtake the US as the largest economy in the world in 2029 with the US slipping to second place and India close behind at third. India's projected GDP in 2030 was $10,133 billion, behind America's $32,996 billion and China at the top with a projected GDP of $34,338 billion. – (HBL Dec 28, 2015 p 1) "World Bank may revise India's growth projection: Basu" – World Bank chief economist Kaushik Basu indicated that the bank may revise its GDP (Gross Domestic Product) growth projection for India after it goes for a stock-taking in a few months. There could be some changes in the January review of India's growth forecast. – (IE Dec 27, 2015 p 15) Chinoy, Sajjid Z – "Don't go broke for growth" – Preserving macro stability in emerging markets may entail living with lower growth in 2016. An article. – (FE Dec 31, 2015 p 5) Kohli, Renu – "A weak growth impulse" – Recovery remains nebulous despite the exceptional terms of trade gains and other positives. An article. – (FE Dec 31, 2015 p 6)

FOREIGN DIRECT INVESTMENT "Dipp Secy made Niti Aayog CEO: Kant: FDI inflows increased 35% in last 17 months" – Foreign direct investment into India has grown 35% in the last 17 months even as across the world it has fallen by 16%, according to the Department of Industrial Policy and Promotion secretary Amitabh Kant. He said Make in India was launched in September last year and since then FDI has grown by 40% as compared to the previous year, 'but if you look at the last 17 months of this government, FDI has grown 35% as compared to the previous 17 months.' FDI has come into manufacturing, consumer goods, logistics and food processing sectors. – (ET Dec 30, 2015 p 13)

FOREIGN EXCHANGE RESERVES "Forex reserves down $1.4 bn to $351 bn" – India's total reserves, as on December 18, stood at about $351.1 billion, down from $352.5 billion a week before that, data showed. The rupee saw volatility in the week ended December 18. The currency had dropped to about 67 to a dollar. The rupee saw volatility in the week ended Dec 18. The currency had dropped to about 67 to a dollar. – (BS Dec 26, 2015 p 3)

FOREIGN TRADE Baru, Sanjaya – "The big deal about WTO" – India did not get everything it wanted at Nairobi. But like everyone else, it got some and gave some. India should re-examine its approach to external trade, its domestic policy priorities and what it hopes to get out of the WTO and the various plurilateral, regional and bilateral pacts. An article. – (ET Dec 25, 2015 p 12) Contents

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INVESTMENTS "ICRA: Only some sectors driving India investments: Ratings agency also expects the fiscal situation to weigh on project execution" – The recovery in Indian economic activity remains tentative and narrowly focused in sectors such as roads, railways, power transmission and passenger vehicles, ratings agency ICRA report. The report on the Indian economy says the consumption boost from the Seventh Pay Commission award is unlikely to lead to an immediate investment in capacity expansion, as utilisation is still low at 71.5% in first quarter of current fiscal though up marginally from 70.2% in the corresponding quarter last fiscal. – (ET Dec 30, 2015 p 13) Bhandari, Pranjul – "How to revive investment" – Govt capex and growth in consumption together could revive India's investment cycle - eventually. An article. – (FE Dec 31, 2015 p 7)

REMITTANCES "Remittances match IT exports at $72b, but diaspora needs attention" – Edited excerpts from an interview with Dilip Ratha, Head, Migration and Remittances Unit, World Bank. – (ET Dec 26, 2015 p 6)

BANKING GENERAL "AIBEA calls for one-day bank strike on Jan 8" – The All India Bank Employees' Association (AIBEA) has called for a one-day nationwide strike on January 8 to protest against violation of employees service agreements by the five associate banks of State Bank. – (FE Dec 29, 2015 p 10) "Banks' non-food credit grows in double digits after 7 months" – After a gap of seven months, non-food credit grew in double digits, reaching 11.13% year-on-year for the fortnight ended December 11, according to RBI data. Outstanding loans in the banking system stood at Rs.69.66 lakh crore as on December 11 compared to Rs.68.68 lakh crore in the previous fortnight - a rise of Rs.98,184 crore. The rise in non-food credit growth is in line with bankers' expectations of a pick up in credit offtake in the second half of the current financial year. Deposits too have picked up pace, growing at a better 11.46% year-on-year compared with the previous fortnight's rise of 10.42% y-o-y as on November 27. – (FE Dec 24, 2015 p 8) "New banks, bad loans, rate cuts in 2015; will 2016 be equally eventful?" – 23 new banks; project Indradhanush (which means the rainbow); Jan Dhan and interest rate cuts on one hand. Rising levels of bad assets and a foreign exchange scam that rocked one of the country's biggest lenders on the other. 2015 is the year of banking, one that has been a roller-coaster ride for the sector. A report. – (HT Dec 28, 2015 p 13) "Stress tests show banking system vulnerable: FSR" – Although stress tests conducted on the banking system reveal resilience, a sharp deterioration of macroeconomic conditions could make the system vulnerable, the Financial Stability Report (FSR) indicated. FSR reflects the collective assessment of the sub-committee of the Financial Stability and Development Council (FSDC) which is chaired by the governor of the Reserve Bank of India (RBI) Raghuram Rajan. Report points out failure of the top net lender bank could result in a loss of 35.3% of Tier-I capital of the banking system, subject to certain assumptions. – (FE Dec 24, 2015 p 8) Merchant, Krishna – "Another sluggish quarter for banks?" – An article. – (Mint Dec 30, 2015 p 14)

BANDHAN BANK "Bandhan sells Rs.500-cr loans from priority sector portfolio" – Microlender-turned-universal bank Bandhan said it has sold Rs.500 crore of its loans qualifying as priority sector lending (PSL) to different banks wanting to meet the mandatory 40 per cent target. We have also been doing IBPC (interbank participation certificates). This is alternative to securitisation... We have done Rs.500 crore till now, according to the newly started bank's managing director and chief executive C S Ghosh. – (FE Dec 31, 2015 p 3)

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BANK OF BARODA "Bank of Baroda picks E&Y to review its KYC system: Appoints strategic advisor to help improve profitability" – Bank of Baroda has appointed Ernst & Young to look into any gaps in its Know Your Customer (KYC) norms especially in international transactions side. The need for review arose after an alleged violation of anti-money laundering (AML) norms was unearthed at the bank's branch at Ashok Vihar, New Delhi. KEY TAKEAWAYS: * Need for review arose after alleged violation of anti-money laundering norms at the bank Ashok Vihar branch in New Delhi; * Review to examine if issue was restricted to one branch or was a systemic problem; * The bank has appointed Deepa P S as strategic advisor to help focus on developing business plans and procedures for corporate restructurings and joint ventures; * Bank to also hire advisors for risk function and business development. – (BS Dec 25, 2015 p 5) – MSME Sridharan, S – "MSME sector vital for the socio-economic development of India" – Bank of Baroda has designed specialised products which cater to the specific needs of borrowers in the MSME segment. An article. – (FE Dec 28, 2015 Supl. p 2)

BANK OF INDIA "BoI plans to raise up to Rs.3,000 crore via Tier-II bonds" – Bank of India said it will raise up to Rs.3,000 crore by issuing Tier-II bonds. The bank intends to issue unsecured, non-convertible, redeemable, Basel IIIcompliant Tier-II bonds for an amount of Rs.1,500 crore with a green-shoe option of Rs.1,500 crore at an appropriate time. – (FE Dec 24, 2015 p 8)

CENTRAL BANK OF INDIA "Central Bank celebrates 105th Foundation Day" – Central Bank of India celebrated its 105th Foundation Day in Mumbai. Rajeev Rishi, CMD in his keynote address expressed the commitment of the Bank to introduce new services for the benefit of customers. Platinum Rupay Debit Card was launched on the occasion. – (ET Dec 28, 2015 p 6)

HDFC BANK "HDFC Bank cuts base rate to 9.3%, levels up with SBI: Going ahead, the bank does not expect deposit rates to be repriced" – HDFC Bank has reduced its base rate by 5 basis points to 9.3 per cent with effect from December 28. With this cut, the private sector lender matches SBI's base ate. In October, SBI had reduced its base rate by 40 basis points to 9.3 per cent, in response to the RBI's policy rate cut of 50 basis points. – (H Dec 30, 2015 p 7)

ICICI BANK "ICICI Bank to sell railway tickets on its website" – ICICI Bank tied up with the Railway's e-ticketing platform IRCTC to sell rail tickets through its website. The largest private sector lender will soon introduce the facility to book rail tickets on its mobile banking application and prepaid digital wallet. Users will have to first register on the website of the IRCTC, where it primarily sells rail tickets, and then do a one-time registration on the bank's website to avail of the facility. – (FE Dec 24, 2015 p 8)

IDBI BANK "Centre may divest up to 52% in IDBI Bank" – The United Forum of IDBI Bank Officers and Employees 'has noted with caution' the Centre's latest stated position on diluting its stake in the bank. On its part, the Centre has made it clear that public sector banks, including IDBI Bank, have been allowed to raise capital by diluting the Centre's holding by up to 52 per cent. – (HBL Dec 28, 2015 p 15) "IDBI Bank gets Rs.2,229-crore capital infusion from Centre" – IDBI Bank said the government has infused Rs.2,229 crore into the bank in lieu of preferential allotment of shares. Receipt of consideration amount of Rs.2,229 crore from government towards preferential allotment of equity shares. – (HBL Dec 30, 2015 p 8) –

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IDFC BANK "IDFC Bank to turn Rs.350-cr Lanco Infra loans to CCDs" – Lanco Infrastructure Ltd approved a move to issue Compulsorily Convertible Debentures (CCDs) on preferential basis to IDFC Bank, worth about Rs.350 crore. The board of directors of the diversified infrastructure company, which met, decided to issue CCDs of face value of Rs.10 each at par on preferential basis to IDFC Bank. This is subject to necessary approvals. – (HBL Dec 31, 2015 p 2)

KARNATAKABANK "Karnataka Bank opens 700th branch" – Karnataka Bank Ltd opened its 700th branch in the country and the 16th in West Bengal. P Jayarama Bhat, Managing Director and Chief Executive Officer, who presided over the inaugural function at Howrah in Kolkata, said that as envisaged in the bank's 'KBL Vision 2020' document, the bank plans to increase the number of branches to 1,000 and ATMs to 2,500 by March 2020. The bank has set a business turnover target of Rs.1.8 lakh crore by then. – (HBL Dec 31, 2015 p 19) "Karnataka Bank's accident cover" – Karnataka Bank Ltd, in association with Universal Sompo General Insurance Company, has launched a group personal accident insurance scheme named 'KBL Suraksha'. Quoting P Jayarama Bhat, Managing Director and Chief Executive Officer of the bank said that all the SB (savings bank) account customers of the bank in the age group of 18-70 years can subscribe to this scheme by paying an annual premium of Rs.100 for Rs.10 lakh and Rs.50 for Rs.5 lakh coverage. – (HBL Dec 24, 2015 p 5)

KARUR VYSYA BANK "Seamless banking with digital touch" – Views of Shri K Venkataraman, MD & CEO, Karur Vysya Bank. – (Mint Dec 24, 2015 p 9)

PUNJAB AND SIND BANK "Appointment: New Executive Director Joins Punjab & Sind Bank" – Arvind Kumar Jain joined Punjab & Sind Bank as Executive Director (ED). Prior to joining Punjab & Sind Bank as ED, Jain was the CGM at Oriental Bank of Commerce (OBC). He has an experience of over 33 years in banking both at operational & administrative level at different departments of OBC. – (ET Dec 28, 2015 p 6)

PUNJAB NATIONAL BANK "PNB wins The Banking Frontiers - Inspiring work place Awards 2015" – Punjab National Bank has won 'Inspiring Work Places Award 2015' under the category 'Best HR and Talent Practices' in the ceremony held on December 15th in Mumbai. The Award function was organised by the 'Banking Frontiers'. – (ET Dec 28, 2015 p 6)

SIDBI "SIDBI: Addressing the gaps" – A report. – (FE Dec 28, 2015 Supl. p 2)

STATE BANK OF INDIA "SBI Launches 'State Bank Samadhaan'" – State Bank of India (SBI) launched a Mobile App 'State Bank Samadhaan' on Google Play Store. This is a Self-Service App and will enable SBI customers to avail a range of services and obtain commonly sought information, without visiting the branch. Customers will also be able to lodge and track their complaints through the APP. – (ET Dec 28, 2015 p 6) "SBI raises Rs.4,000 cr via Tier-II bonds" – State Bank of India said it has raised Rs.4,000 crore by issuing Basel-III compliant, tier-II bonds in the nature of debentures on private placement basis. India's largest bank issued 40,000 debentures of 10-year tenure of face value Rs.10 lakh each at par. The instruments carry a coupon rate of 8.33 per cent and have a call option after five years. – (HBL Dec 25, 2015 p 5) Contents

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"State Bank of India: Donates Speciallzed MobiIe Cancer Detection van" – SBI Foundation, a subsidiary of the State Bank of India and implementing agency for the Corporate Social Responsibility (CSR) activities of the State Bank Group, along with SBICAPs, another subsidiary of SBI, donated a Specialized Mobile Cancer Detection Van to the Indian Cancer Society (ICS). The Van was flagged-off by the SBI Chairman, Ms Arundhati Bhattacharya in the presence of Managing Directors of the Bank Mr B Sriram and Mr V G Kannan, DMD & CDO Mr A Mehra and MD of SBICAPs Ms. Varsha Purandhare, MD & CEO of SBI Foundation, Ms Sanjukta Raiguru and other top executives of the two donor institutions and Indian Cancer Society were also present. – (FE Dec 30, 2015 p 3) "State Bank of India: SBI supports Mumbai Police 'Cyber Crime Awareness Campaign'" – SBI has partnered with Mumbai police for 'Cyber Crime Awareness Campaign' Mumbai in the presence of Smt. Arundhati Bhattacharya, Chairman, State Bank of India and Shri Ahmed Javed, Commissioner of Police, Mumbai. On the occasion, Smt. Arundhati Bhattacharya said are very happy to support Mumbai Police 'Cyber Crime Awareness Campaign 2015'. – (FE Dec 30, 2015 p 3) Vishwanathan, Vivina – "State Bank of India's Samadhaan app" – An article. – (Mint Dec 25, 2015 p 17)

TAMILNAD MERCANTILE BANK "TMB to hold 6 annual general meetings on January 29" – Tamilnad Mercantile Bank (TMB) is preparing to hold its Annual General Meetings on January 29, after a gap of five years. The bank held its 87th AGM on January 6, 2010. – (HBL Dec 24, 2015 p 5)

UNION BANK OF INDIA "CCI okays Union Bank's 49% stake buy in Union KBC AMC" – The Competition Commission has approved the state-run Union Bank of India's proposed acquisition of 49 per cent stake in Union KBC Asset Management Company (AMC). The fair trade regulator, which keeps a tab on unfair business practices across sectors, has approved the acquisition as the deal may not have an adverse impact on competition in the country. Following the transaction, KBC Asset Management of Belgium has exited the Indian asset management business by selling its 49 percent stake in mutual fund joint venture Union KBC AMC to Union Bank of India. – (FE Dec 31, 2015 p 15)

YES BANK "Yes Bank: Signs agreement with ISPIRT to tap the financial technology space" – Yes Bank, India's fifth largest private sector bank, in association with iSPIRT, a software product think-tank organization launches the first of its kind 'Fintech App store' for Indian start-ups in the Financial Technology space. The Fintech App store will hold a governance structure making it easy for any start-up to access it. The mutual understanding will enable both the entities to utilize each other's strengths and willingness to support startups. Established to transform India into a hub for new generation software products, iSPIRT will work towards mentoring Indian Fin-Tech start-ups and guide them through a partnership with Yes Bank. In addition, Yes Bank will offer its various products and payment gateways to assist the on-boarded start-ups to commence operations effortlessly. – (FE Dec 30, 2015 p 3)

CHINA "Will focus on credit growth, stable yuan, says China's central bank: Pledges to flexibly use various policy tools" – China's central bank said that it would 'flexibly' use various policy tools to maintain appropriate liquidity and reasonable growth in credit and social financing. The People's Bank of China will keep the yuan basically stable while forging ahead with reforms to help improve its currency regime, it said in a statement summarizing the fourth-quarter monetary policy committee meeting. The PBOC has cut interest rates six times since November 2014 and lowered banks' reserve requirements. – (HBL Dec 29, 2015 p 10)

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EUROPE "ECB says euro zone lending improves further in November" – Lending to companies and households across the euro zone picked up again in November, recording year-on-year growth of 0.9 percent and 1.4 percent respectively, the European Central Bank. The development is positive news for the euro zone's economy, which has long struggled with slack credit, and indicates some success for the ECB's moneyprinting scheme to buy chiefly government bonds. – (FE Dec 31, 2015 p 14) "A strong eurozone needs a full banking union: Common deposit insurance will reduce the risk of future crises" – An editorial. – (FT Dec 28, 2015 p 8)

IRAN "Expanding ties, India and Iran agree to open bank branches" – In a step that would facilitate expansion of trade and investment partnership including oil payments amid the easing of international sanctions from Iran, Delhi and Tehran have decided to open branches of each other's banks in each other's country. Iran's Pasargad and Parsian banks will open branches in Mumbai and Delhi and Saman Bank will also do banking activity in India independently. An Indian bank will also open a branch in Iran. This was decided at the recently concluded Joint Commission Meeting (JCM) here that also decided to explore partnership in the fields of insurance and tourism sectors besides the sectors of energy, infrastructure, ports, railways, trade and consular matters, official sources informed. – (ET Dec 31, 2015 p 4)

JAPAN "BoJ still has room to maintain easing: Suga" – The Bank of Japan still has policy options to continue its unprecedented monetary easing, Chief Cabinet Secretary Yoshihide Suga said in an interview days after the central bank announced it wouldn't expand its main stimulus target. I think they still have policies they can pursue, Suga said. – (FE Dec 25, 2015 p 10)

SWEDEN Alderman, Liz – "Plastic convenience: In Sweden, even banks don't accept cash anymore" – An article. – (Mint Dec 28, 2015 p 24)

USA "Divergence: US rate rise offers mixed blessings for eurozone" – Interest rate rises by the US Federal Reserve could provide mixed fortunes for the eurozone economy as an expected boost to the region's exports and inflation risks being offset by increased global volatility and monetary tightening. A report. – (FT Dec 28, 2015 p 2) "Trump's attacks on bankers raise eyebrows on Wall Street: US Republican frontrunner has relied on lenders to shore up his businesses" – As Donald Trump has barnstormed his way across America in recent months stirring up the Republican heartland with populist invective, it is not just immigrants the billionaire property tycoon has had in his sights. The frontrunner for the Republican presidential nomination has also waged a vituperative campaign against Wall Street, accusing hedge funds of 'getting away with murder' somewhat to the entertainment of the bankers who helped finance the rise of his business empire. – (FT Dec 28, 2015 p 3) "US banks hit by cheap oil as Opec warns of long-term low" – US banks face the prospect of tougher stress tests next year because of their exposure to oil in a sign of how the falling price of crude is transforming the outlook not just for energy companies but the financial sector. The US Federal Reserve subjects banks with at least $50bn in assets, including the US arms of foreign banks, to an annual stress test, that is designed to ensure they could keep trading through a deep recession and a big shock to the financial system. Today's oil prices are about 55 per cent below their level when the Fed set last year's stress test scenarios in October 2014. That test included looking at how banks' trading books would fare if there was a one-off 68 per cent fall in oil prices sometime before the end of 2017. Banks loan books were not tested against falls in oil prices. – (FT Dec 24, 2015 p 1) Contents

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– FEDERAL RESERVE "Interest rate hikes are just going to prevent higher inflation" – Edited excerpts from an interview with Martin Feldstein, professor, Harvard University. He talks about the US economy and the Fed hike trajectory. – (ET Dec 24, 2015 p 9) Rajwade, A V – "A week after the Fed rate rise: Bringing inflation, interest rates and the size of the Fed's balance sheet to normal levels is a complex task" – An article. – (BS Dec 24, 2015 p 10) Roach, Stephen S – "The perils of Fed gradualism: Today's Fed inherits the deeply entrenched moral hazard of the asset economy" – A steeper normalisation path would produce an outcry. But that would be far preferable to another devastating crisis. An article. – (FE Dec 26, 2015 p 6) Sivkumar, R – "What Fed rate hike means for India" – An article. – (H Dec 25, 2015 p 7)

BANK AUTOMATION "Banking gets 'app' solutely friendly" – At a click, you can transfer money to friends, pay utility bills and even split dinner bills. Last-minute breather: You will be levied a penalty for late credit card payments by your bank only if the payment has been due for more than three days. Transparency in loans: * Interest rates to be displayed on bank website; * Annual fee and charges to be disclosed; * One-page factsheet to be provided to borrower. – (HBL Dec 28, 2015 p 3) Vishwanathan, Vivina – "Small steps towards banking for everyone: Digital innovation in retail banking through products such as apps and wallets were the year's flavour" – An article. – (Mint Dec 28, 2015 p 16) – ATMs "Use Rs.2,000-cr financial inclusion fund to set up more ATMs, says RBI panel: Finds significant element of regional exclusion in banking access" – In view of the low penetration of ATMs in rural and semi-urban centres, a Reserve Bank of India panel has recommended that the Rs.2,000 crore Financial Inclusion Fund should be utilised to encourage installation of ATMs in these centres. The RBI's committee on medium-term path on financial inclusion observed that as of 2014 there were only 18 ATMs per one lakh adult population in India against over 65 in South Africa and over 180 in Russia. – (HBL Dec 31, 2015 p 6)

BANK LENDING "Green shoots in bank credit growth?" – Bank credit growth seems to be finally picking up. As on 11 December, growth in bank credit from a year ago was 11%, well above the average rate of growth this fiscal year. The chart shows the sudden jump in credit. Of course, a fortnight's data does not a trend make and the sudden spurt may well be a one-off affair. But growth in bank credit is usually a harbinger of economic growth. It remains to be seen though whether this green shoot thrives or withers away. – (Mint Dec 24, 2015 p 14)

BANKING TECHNOLOGY "On the fast track from bricks to clicks" – The concept of brick-and-mortar branches is fading fast, with consumers increasingly embracing technology for their basic banking needs. KEY SHIFTS: * Long, serpentine queues for even basic banking activities are now a story of the past; today's banks reside in customers pockets, on their mobile phones; * Bankers see a future where the entire payment system will be built around the mobile phone architecture; * Digital wallets have already become popular, and all banks are launching their own versions; * Financial inclusion is a $380-billion opportunity in Africa and India; * With banking moving into the virtual world, embracing technology seems to be the only option with the existing banks, too. – (BS Dec 26, 2015 p 7)

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BANKRUPTCY BILL "Pass bankruptcy bill" – A modern code can rescue us from bankruptcy on job creation. An editorial. – (TI Dec 28, 2015 p 12) Diwanji, Abizer – "A critical building block for a mature market economy: How can the proposed code lead towards a robust bankruptcy framework" – An article. – (FE Dec 29, 2015 p 9) Gopalan, Radhakrishnan – "Working through the bankruptcy maze" – The Bankruptcy Bill, as introduced in the Lok Sabha in the winter session, is a significant step in the right direction and should be welcomed. An article. – (H Dec 29, 2015 p 11)

BANKRUPTCY CODE "Bankruptcy code referred to joint panel" – The Insolvency and Bankruptcy Code 2015, which seeks to provide an easy exit option for insolvent and sick companies, was referred to a 30-member joint committee of the Members of Parliament for further scrutiny. – (HT Dec 24, 2015 p 17) "Welcome step forward: But declaring Bankruptcy Code a Money Bill is problematic" – An editorial. – (BS Dec 24, 2015 p 11)

CAPITAL REQUIREMENT "Banks rush to raise capital from domestic bond market" – Indian banks are queueing up to raise funds through the issue of domestic bonds as they anticipate a pickup in credit demand between January and March. A fall in corporate bond yields this year has also made such fund-raising viable. So far this month, Canara Bank and Bank of India have already announced plans to raise capital through Tier II bonds. State Bank of Hyderabad is said to have asked for bids from investors for a Tier II bond issue, according to two bond arrangers. State Bank of India (SBI), has already raised Rs.4,000 crore through such bonds earlier this month and plans to raise Rs.12,000 crore in tranches. – (Mint Dec 29, 2015 p 10)

CENTRAL BANKS – MONETARY POLICY "Foreign exchange run ragged by central banks" – A report. – (FT Dec 22, 2015 p 22) – TREASURIES "Treasuries draw weakest demand since '09 as central banks unload" – Demand at U.S. Treasury auctions fell this year to the lowest since 2009 as Wall Street dealers and central banks pulled back. Investors submitted bids for 2.8 times the almost $2 trillion of notes and bonds that the U.S. has offered, down from 2.99 in 2014, data compiled by Bloomberg show. A $26 billion sale of two-year notes Monday drew the weakest demand since August 2009. A report. – (FE Dec 29, 2015 p 11)

COMMERCIAL BANKING "Banks to be Spared RBI stick for higher provisions: RBI assures commercial banks it won't carry out corrective action for at least one year if banks bleed as a result of cleaning up of their books" – The Reserve Bank of India has given an informal assurance to commercial banks that it will not place restrictions against these lenders if their stressed loans increase sharply on account of cleaning up their books as it has directed. This comes as a relief to the banks that were worried that RBI's mandate to downgrade a chunk of loans given to errant borrowers would impact their earnings and result in prompt corrective action, said two senior bankers, who did not want to be named. The RBI had earlier this month identified a list of 150 truant borrowers and directed banks to downgrade these companies by the end of this financial year. The directive implied that the banks would have to classify some standard loans as substandard loans and make higher provisions on them. – (ET Dec 28, 2015 p 14)

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COOPERATIVE BANKING "Co-op Banks to get note-sorting machines: Govt is keen on curbing rising cases of fake currency being routed via them" – The government will push regional rural and urban cooperative banks to get note-sorting machines in all branches amidst rising cases of fake currency notes being routed through these entities. In a meeting between banks, finance ministry and intelligence agencies, it was observed that a large number of branches of such banks do not have such machines and are therefore more susceptible to accepting fake currency. Till September this year, the government had seized and recovered fake Indian currency notes (FICN) worth Rs.30.88 crore. Last year, it was Rs.42.91 crore, with most cases being registered in Maharashtra. – (ET Dec 30, 2015 p 13) – RUPEE BANK "Rupee Co-op Bank a/c holders can withdraw Rs.50k in one go" – Senior citizens holding accounts in the ailing Rupee Co-operative Bank will be allowed to withdraw Rs.50,000 in a single installment from January 1. The bank received the Reserve Bank of India's permission for the same. At present, account holders above 60 years of age are allowed to withdraw money from the bank only in small installments of up to Rs.5,000 per month. – (TI Dec 31, 2015 p 3)

CORPORATE DEBT "A fifth of corporate debt in troubled waters: 67 companies with total debt of Rs.5.65 lakh cr were either loss-making or didn't generate enough profit to cover interest cost in FY15" – Reserve Bank of India Governor Raghuram Rajan is correct in flagging concerns about the high level of corporate debt and India Inc's ability to service it, due to declining growth and profitability. This could result in more pain for banks, as bad loans could rise further. – (BS Dec 25, 2015 pp 1, 14) Dugal, Ira – "Corporate debt: How deep does the rot run?" – An article. – (Mint Dec 25, 2015 p 17) – NPAs "Stressed corporates can strain banks, warns RBI: Bank bad loans rise to 5.1% in first half of the fiscal" – Corporate sector vulnerabilities and the impact of companies' weak balance-sheets on the financial system need close monitoring, cautions the Reserve Bank of India's latest Financial Stability Report. In the corporate sector, the level of profitability, leverage and debt servicing capacity continue to cause concern with their attendant adverse impact on the industrial sector. The report cautioned that companies with lower debt-servicing capacity and high leverage may put pressure on the already deteriorating asset quality of bank loans in adverse situations. – (HBL Dec 24, 2015 p 1)

CURRENCY NOTES "RBI grants more time to exchange pre-2005 currency" – The Reserve Bank of India has extended the date for the public to exchange their pre-2005 banknotes by six months till June 30, 2016. – (HBL Dec 24, 2015 p 5)

DEBT RECOVERY "Banks' recovery up fivefold to Rs.1.15 lakh cr" – Banks recovered a total of Rs.1.15 lakh crore in FY15, an increase of nearly 5 times from the amount recovered in the previous fiscal, RBI data revealed. The primary reason for such a rise was a six-times jump in the number of cases filed and the total amount claimed rose almost five times to Rs.4.70 lakh crore. Cases filed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act and those filed with the Debt Recovery Tribunal (DRT) rose over six times each year on year. Cases filed with Lok Adalats increased more than five times. Gross non-performing assets (NPA) continued to rise, with gross NPA ratio rising 50 basis points year on year to 4.60% in FY15. – (FE Dec 30, 2015 p 8) "SICA ... Sarfaesi ... NCLT: Insolvency Bill offers new hope, will Parliament?" – An editorial. – (FE Dec 28, 2015 p 6) Contents

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DEBT RECOVERY TRIBUNALS "Debt recovery tribunals' overhaul on the cards to tackle pendency: Digitising the system, adequate staffing, presence in every district are among the proposed measures" – The government is planning an overhaul of debt recovery tribunals (DRTs) as they are set to become the backbone of insolvency proceedings for individuals and partnership firms in the proposed bankruptcy code. – (Mint Dec 24, 2015 p 7)

DEPOSIT INSURANCE "Deposit insurance system could be linked to risk profile of banks: RBI mulls differential deposit insurance" – Reserve Bank of India is weighing a differential deposit insurance system which will be linked to the risk profile of banks on the lines of recommendations by various national committees and international experience, the central bank said in its bi-annual Financial Stability Report (FSR). – (ET Dec 24, 2015 p 11)

DIGITAL CURRENCY "Record highs predicted for bitcoin in 2016 as new supply halves" – The coin is used to move money around quickly and anonymously with no need for a central authority. A report. – (H Dec 28, 2015 p 16) "Tech behind bitcoin can help check counterfeiting: RBI: Blockchain ensures records of transactions can't be altered" – Exactly two years after it issued a caution against use of virtual currency bitcoin, the Reserve Bank of India has come around to appreciate the strengths of the underlying 'blockchain' technology. Blockchain is a digital platform which records all bitcoin transactions in a way that cannot be altered. – (TI Dec 26, 2015 p 15)

DIGITAL LENDING "Digital credit - the next step towards a cash-lite economy: E-commerce firms such as Flipkart, Snapdeal and Paytm are aggressively looking to provide credit digitally to its vendors" – According to a document prepared by it, building a cash-lite economy will require a massive expansion in the number of merchants who accept digital payments as cash comes with tremendous cost. According to estimates, the total cost of storing, transporting and processing cash is Rs.22,000 crore annually. The iSPIRT paper advocates that it is to the country advantage to digitize cash flows, saving the huge cost associated. – (Mint Dec 26, 2015 p 4)

DIGITAL PAYMENT SYSTEM "Tech Mahindra launches 'MoboMoney': Digital payment platform targets1 million points of acceptance in 5 years" – Tech Mahindra has announced the launch of 'MoboMoney', a first of its kind 'Tap N Pay' contactless digital payment solution. MoboMoney is a prepaid wallet, issued in the form of a NFC (Near Field Communication) contactless tag, which could be used to 'Tap N Pay' for goods and services. – (HBL Dec 24, 2015 p 7) Rao, Rajkamal – "The RBI should relax mobile money rules" – Innovative digital payment systems can enhance and expedite financial inclusion in ways the government can't imagine. An article. – (HBL Dec 24, 2015 p 9)

DIGITAL TECHNOLOGY – FINANCIAL INCLUSION Sriram, M S – "Cashless transactions and the poor" – An article. – (Mint Dec 26, 2015 p 4)

ELECTRONIC PAYMENTS "Share of electronic payments in India witnessing sharp increase, says Reserve Bank" – According to the RBI data, the share of electronic payments is continuously on the rise in India, both in volume and value terms. Several payment channels viz., cards (including credit, debit and prepaid varieties), near field and cardless, electronic, internet and mobile based, are growing in big proportions. ATMs and POS (Point of Service) machines have also witnessed proliferation. A graphical report. – (IE Dec 26, 2015 p 14) –

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FINANCIAL INCLUSION "Link all credit accounts to biometric identifier: RBI" – A committee set up by the Reserve Bank of India (RBI) to prepare a five-year financial inclusion strategy has suggested that all credit accounts be linked to a unique biometric identifier such as the Aadhaar unique identity number to help identify multiple loan accounts and prevent borrowers from becoming over-indebted. – (Mint Dec 29, 2015 pp 1, 2) "RBI for direct transfer of cash, abolishing subsidy" – A Reserve Bank of India (RBI) committee on financial inclusion has suggested that the government should transfer cash directly to persons instead of giving subsidies, and should replace interest subvention on agriculture loans with affordable universal crop insurance scheme. The committee on medium-term path on financial inclusion, headed by RBI executive director Deepak Mohanty, also recommended linking credit accounts with unique identification number, or Aadhaar number, and share information with credit information companies to enhance stability of the credit system and improve access. – (BS Dec 29, 2015 p 4) "RBI takes woman, girl-child route to financial inclusion: Deepak Mohanty panel recommends govtto-people cash transfers and interest-free banking" – In a bid to push financial inclusion, an RBI panel has recommended a slew of measures, including a special deposit scheme for the girl child, government-toperson social cash transfer, and opening interest-free windows (Islamic banking) by banks. To address the problem of a large number of women being left out of the financial system, the committee on medium-term path on financial inclusion chaired by RBI Executive Director Deepak Mohanty said banks have to step up account opening for women. The committee suggested that the government consider a welfare scheme Sukanya Shiksha - that can be jointly funded by the Central and State governments. – (HBL Dec 29, 2015 p 1) "RBI's financial stability report: Too much of financial inclusion push can hurt banking sector" – The Reserve Bank of India and the Union government have been encouraging banks to expand their reach to the unbankable population in recent years. However, says a report from the Financial Stability and Development Council (FSDC), if banks aren't adequately compensated for the exercise, it would become unprofitable for the sector. – (BS Dec 24, 2015 p 7) "Sense on financial inclusion from RBI: The Mohanty committee offers good advice" – An editorial. – (ET Dec 31, 2015 p 12)

FINANCIAL TECHNOLOGY Vishwanathan, Vivina – "Fintech: redefining money transactions" – Wallets, apps, credit scores, crowdsourcing, banking, investments - there's a lot that changed in 2015. An article. – (Mint Dec 31, 2015 p 16)

FIXED DEPOSITS "India on path to gradual, uneven recovery: Morgan Stanley: Bank deposits perform better than stocks in 2015" – Bank fixed deposit was the best performing asset in India, Morgan Stanley said in a research note, adding that the country is on a path to 'gradual and uneven' recovery. According to the global financial services firm, even as 2015 was a good year for the Indian macro economy, as measured by the four key parameters of GDP growth, inflation, current account balance and fiscal balance, this did not translate into 'spectacular returns' for the stock markets. – (HBL Dec 30, 2015 p 5) Shetty, Adhil – "Take a call on non-callable FDs: The higher rates can make a difference" – Bigger sums: Non-callable FDs make sense for bigger amounts, as the slight interest variations can make a substantial difference. Features: * High minimum deposit amount; * Interest rate better than usual FDs; * Cannot be liquidated before maturity; * No auto renewal facility. An article. – (HBL Dec 28, 2015 p 7)

FOREIGN BANKING "A year of downsizing for foreign banks: Slowdown in corporate lending and the high cost of doing business in India are forcing a rethink" – Last month, HSBC announced it was shutting its private banking operations in India. It followed the lead of RBS and Standard Chartered, which earlier this year decided to slim down their India business. It is believed that Germany's largest lender, Deutsche Bank, which –

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is reviewing its position globally, could be the next to trim its retail operations. Drawn by the growing ranks of India's rich and the banking potential the country presented, foreign banks had India on the top of their mind for expanding their business until a few year years ago. Now they appear to be seeking an exit from the country. Competition from local private and public sector banks, which enjoy a large share of the market with no limit on the number of branches they can have, has made India a tough market. Foreign banks need the Reserve Bank of India's (RBI) permission to open more branches, which local banks do not. – (BS Dec 31, 2015 p 7)

INDIA POST – PAYMENTS BANK "India Post payment bank to be operational by March 2017" – India Post, which was among the eleven applicants to have received approval from RBI for payment banks in August, will start its service by March 2017, according to the Telecom Minister Ravi Shankar Prasad. About 40 international financial conglomerates including World Bank, Barclays and ICICI have shown interest to partner with the Postal Department for the payment bank. The Department has 1,55,015 post offices across the country, of which 1,39,144 are in rural areas. – (H Dec 29, 2015 p 15) "World Bank offers to support India Post's payments bank: 17 other financial institutions eyeing tieup with proposed bank" – The World Bank has shown interest to financially support the proposed India Post Payment Bank, having approached the department of posts (DoP). The Reserve Bank of India (RBI) had in October approved the proposals of 11 applicants, including the DoP, to start a payments bank. These entities may offer most of the services offered by commercial banks, except for loans and credit card products. – (BS Dec 24, 2015 p 7)

INTEREST RATES "Interest subvention should be phased out: central bank panel" – The government must do away with the interest subvention scheme and plough back the subsidy into a universal crop insurance scheme for small and marginal farmers, according to a recommendation from a panel constituted by the Reserve Bank of India (RBI). Financial exclusion continue to persists in India's eastern, north-eastern, and central states. A report. – (H Dec 29, 2015 p 15) – DEPOSITS "Disburse 8.7% interest on SDS for 2015: RBI" – The Reserve Bank of India has asked public sector banks and government accounts department to disburse interest of 8.7 per cent to account holders of Special Deposit Scheme (SDS) 1975 for calendar year 2015. – (FE Dec 24, 2015 p 8)

ISLAMIC BANKING "Islamic banking could be on its way in: Banks may be allowed to open specialised interest-free windows for simple products" – Interest-free banking, also known as Islamic banking, could become a reality if the Reserve Bank of India accepts the recommendations of its panel that banks in the country may be enabled to open specialised interest-free windows with simple products. The panel has suggested that the specialised interest-free windows at banks could deal in products such as demand deposits, agency and participation securities on their liability side, and offer products based on cost-plus financing and deferred payment, deferred delivery contracts on the asset side. – (HBL Dec 29, 2015 p 10)

LENDING "Banks should fund first generation entrepreneurs: Government is committed to facilitating skills and finance for Dalit youth to become job creators" – Banks should finance more greenfield projects by first generation entrepreneurs instead of being 'over-enthusiastic' about extending loans for expansion projects of established firms, according to the Prime Minister Narendra Modi. Citing Dr B R Ambedkar's belief in industrialisation as a means for uplifting the backward classes from a vicious circle of poverty, Mr Modi said that the NDA government is committed to facilitating skills and finance for Dalit youth to become job creators instead of job seekers. – (H Dec 30, 2015 p 16) Contents

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"Do or die: The RBI's new lending norms will force banks to either shape up or ship out" – An editorial. – (HBL Dec 30, 2015 p 10) "NCR realty turns to NBFCs: With sales stuck and liquidity issues, and less onerous borrowing conditions on this route, realtors borrowed a combined Rs.6,000 cr this year" – Non-banking finance companies (NBFCs) are cashing on the liquidity crunch faced by property developers in the National Capital Region (NCR). Piramal Group, L&T Finance, Edelweiss and some others have done a number of lending deals with private developers in the region this year, amounting to around Rs.6,000 crore, according to Sway Financial Advisors, a business advisory. The latter's managing director, Parveen Kumar Khera, said there had been 18-20 per cent growth in credit from 2014. – (BS Dec 28, 2015 p 3) "New lending norms: banks will need to tackle loan-deposit mismatches more diligently: Banks will have to ensure that deposits get re-priced faster than loans to maintain margins" – With the Reserve Bank of India issuing guidelines for banks to calculate the base rate based on the marginal cost of funds, commercial banks will have to work harder on their asset-liability management (ALM). This means that banks will have to create a portfolio of deposits and loans with a balanced mix across tenors such that the overall asset-liability gaps are managed well not only to reduce liquidity mismatches but also to mitigate earnings volatility. According to the new guidelines, all loans sanctioned after April 1, 2016, will be priced with reference to the marginal cost of funds-based lending rate (MCLR). Banks will have to ensure that loan contracts are spread out in a manner that reflects the way deposits are bucketed. – (HBL Dec 30, 2015 p 8)

LOAN RESTRUCTURING "Lenders convert debt into equity in Adhunik Power" – Lenders to Adhunik Power and Natural Resources Ltd (APNRL) have decided to convert a large portion of their loans to equity using the Reserve Bank of India's (RBI) strategic debt restructuring (SDR) scheme, bankers aware of the development. Adhunik Power reported a net loss of Rs.151.08 crore in FY14 (latest data available) and its gross debt stood at Rs.3,116 crore, of which Rs.2,474 crore were project loans and working capital limits comprised Rs.694 crore. – (FE Dec 28, 2015 pp 1, 2)

MICROFINANCE – UJJIVAN-SMALL FINANCE BANK "Ujjivan looking to file IPO papers before new year" – Ujjivan Financial Services Pvt. Ltd, the microfinance lender that was granted a provisional licence to convert into a small finance bank, is looking to file its draft share sale prospectus with the capital markets regulator before December-end, according to two people aware of the development. – (Mint Dec 25, 2015 p 24)

MOBILE PAYMENTS "$500m in eWallets by '16? Paytm feels it's doable: As the mobile payments market heats up, Paytm looks to increase its wallet tenfold in the coming year, in an attempt to compete with credit cards" – Mobile payments and commerce firm Paytm expects customers to add about $500 million in their wallets in 2016, a tenfold increase over this year, according to its founder Vijay Shekhar Sharma. In 2015, we saw wallets become mainstream. Next year, as more and more businesses push marketing dollar spends to cashbacks and wallets, the recharge value and frequency will steadily increase. The projection of $500 million does not include cashbacks that the company offers its customers on ecommerce transactions. – (ET Dec 29, 2015 p 9)

MONETARY POLICY Tarapore, S S – "Interest rates - time to change course" – We can't ask for both a strong Rupee and low interest rates, without risking massive outflows of portfolio investments. An article. – (HBL Dec 25, 2015 p 8)

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NEW BASE RATE Kulkarni, Preeti – "Will RBI's new base rate guidelines help borrowers?" – The RBI has come up with a new lending rate formula to make banks pass on policy rate changes to borrowers promptly. Here's how effective it can be for you. An article. – (ET Wealth Dec 28, 2015 p 10)

NON-PERFORMING ASSETS "Bad loans are like cancer, says Mundra" – Edited excerpts from an interview with S S Mundra, Deputy Governor, Reserve Bank of India. He said bad loans are like cancer and can be cured if treated in the early stages. Also he said banks must not 'extend and pretend' or seek divine intervention to solve the issue of nonperforming assets (NPAs). Mundra cautioned against the excessive focus on retail lending. – (Mint Dec 24, 2015 pp 1, 11) "NPAs could reach 5.4% by September 2016, says RBI" – The gross non-performing assets (NPAs) ratio - bad loans as a percentage of total loans - of the Indian banking system could reach 5.4% by September 2016, according to the Reserve Bank of India's (RBI) financial stability report (FSR). The gross NPA ratio stood at 5.1% in September 2015. – (FE Dec 24, 2015 p 8) "RBI nudging banks to furnish potential NPAs" – Banks may soon be asked to provide - set aside funds for potential non-performing assets (NPAs) and weak assets, according to the sources aware of the development. Sources said that banks could be asked to provide for potential weak assets which, although require standard asset provisioning as per IRAC norms, could burden banks' balance sheets in the future. According to income recognition and asset classification norms (IRAC), a standard asset entails a 0.4% provision, whereas an NPA needs at least 15% provision. This, people said, is part of the central bank's plan to urge banks clean up balance sheets by March 2017. – (FE Dec 29, 2015 p 10) "Six CDR failures add Rs.3,000 cr NPAs" – Non-performing assets (NPAs) for a clutch of banks is set to go up by close to Rs.3,000 crore in the current quarter solely on account of six failures in the corporate debt restructuring (CDR) cell. The total value of failures for the first eight months of FY16 has risen to Rs.22,303 crore. Reserve Bank of India data showed NPAs in the banking system had risen to 5.1% of total assets from 4.6% in March. Among the main reasons for debt restructurings not working out are the inability of promoters to infuse the requisite equity capital into the company in the defined period and a delay in repayments post the moratorium. Restructuring schemes also often fail because promoters are unable to sell non-core assets to mobilise resources as promised. – (FE Dec 31, 2015 pp 1, 2) "Stressed out: The RBI's stress tests show that bad loans by banks are not ring-fenced from the rest of the economy" – An editorial. – (HBL Dec 26, 2015 p 8) Nathan, Narendra – "Banking sector: Is there light at the end of tunnel?" – Though non-performing assets will continue to increase in the coming quarters, the market may soon start discounting the expected improvement in fundamentals. An article. – (ET Wealth Dec 28, 2015 pp 8-9)

ONLINE BANKING "New System for more secure online banking: Using a one-time password and graphics, GOTPass protects personal information" – A new system that uses images and a one-time numerical code may provide a secure, inexpensive and easy-to-use alternative to current password systems used in online banking and other such services, a new study suggests. – (HBL Dec 24, 2015 p 5)

PAYMENTS BANKS "Paytm learning payments bank biz from Alibaba" – It is at Alibaba's boot camp in China that the top brass of Indian digital wallet-turned-e-commerce firm Paytm is learning the finer points of how to set up and run a successful payments bank. According to Vijay Shekhar Sharma, founder and CEO of One97 Communications, the Chinese e-commerce giant is training the top executives of Paytm ahead of its much-awaited payments bank launch in India. Alibaba Group is the largest shareholder in Paytm's parent company, One97 Communications, with investments worth $680 million. – (BS Dec 30, 2015 pp 1, 16) Contents

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– SMALL FINANCE BANKS "Payment, small finance banks to open 3,584 branches in first year: To bring fresh capital of Rs.7,356 crore" – Payment and small finance banks propose to bring fresh capital aggregating Rs.7,356 crore to the banking system and will collectively open 3,584 branches in their first year of operation, according to the Reserve Bank of India. – (HBL Dec 24, 2015 p 5)

PROFITABILITY "Profitability of banks fell 4.4% in H12016" – The economy grew at 7.4% in Q2 and the mid-year economic analysis 2015-16 has projected the GDP to expand 7-7.5%, but a similar uptick in the banking sector is missing. The data on profitability of scheduled commercial banks released by the Reserve Bank of India shows that the profitability of the banks fell 4.4% in the first half ended September 2015. – (IE Dec 24, 2015 p 15)

PUBLIC SECTOR BANKS "Central bank calls for review of PSU banksˆ dividend policy" – The dividend policy of public sector banks, which pay hefty dividend to the shareholders irrespective of the quality of the balance sheet, must be reviewed, according to a Reserve Bank of India (RBI) report. Public sector banks recorded the highest level of stressed assets at 14.1 per cent. – (H Dec 24, 2015 p 15) – DIVIDEND "Govt may receive Rs.64,477 crore dividend from public sector banks" – In its Financial Stability Report, the RBI has observed that PSU banks pay out significant amounts as dividend to the government and other shareholders which have no relevance to their balance sheet strengths and capital planning. In FY16, the government is expected to receive Rs.64,477 crore as dividend from national banks and financial institutions and surplus transfer from the RBI. A graphical report. – (IE Dec 25, 2015 p 13) – SOCIAL SECURITY SCHEME "State-run banks asked to help achieve Atal Pension Yojana target" – Concerned over the apathetic response to the government's flagship social security scheme, the Pension Fund Regulatory and Development Authority has asked all state-run banks to organize a two-day camp to increase enrolment. The Atal Pension Yojana aims to provide old-age pensions to a majority of the people. It is a fixed benefit scheme, promising subscribers a monthly income between Rs.1,000 and Rs.5,000. Since the scheme was launched in May, the banks have enrolled around 1.53 million subscribers, just 8% of the 20 million they had targeted by 31 December. – (Mint Dec 25, 2015 p 7)

STOCK PERFORMANCE "Banking trio seek clean sweep with investors" – Shareholders set to decide fate of new chiefs grappling with problems at Barclays, Deutsche Bank and Credit Suisse. A report. – (FT Dec 28, 2015 p 15)

SUCCESSION PLANNING Jenkins, Patrick – "Savvy bank chiefs put succession on their new year to-do list" – An article. – (FT Dec 28, 2015 p 12)

RBI CIRCULARS "Auction of Government of India Dated Securities" – (RBI Circular RBI/2015-16/276 Ref. No. IDMD/ 1425/08.02.032/2015-16 dated 28.12.2015) "Discontinuation of the requirement for Paper to Follow (P2F) for Central Government cheques under Cheque Truncation System" – (RBI Circular RBI/2015-2016/278 DGBA.GAD.No. 2036/42.01.035/ 2015-16 dated 31.12.2015) Contents

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"Extension of Credit Facilities to Overseas Step-down Subsidiaries of Indian Corporates" – (RBI Circular RBI/2015-2016/279 DBR.IBD.BC.No.68/23.37.001/2015-16 dated 31.12.2015) "Roadmap for opening brick and mortar branches in villages with population more than 5000 without a bank branch of a scheduled commercial bank" – (RBI Circular RBI/2015-2016/277 FIDD.CO.LBS.BC.No. 82/02.01.001/2015-16 dated 31.12.2015) "Special Deposit Scheme 1975 - Payment of interest for the calendar year 2015" – (RBI Circular RBI/ 2015-2016/274 DGBA.GAD. No. 2023/15.01.001/2015-16 dated 23.12.2015) "Withdrawal of all old series of Banknotes issued prior to 2005" – (RBI Circular RBI/2015-2016/275 DCM (Plg) No.G-8/2331/10.27.00/2015-16 dated 23.12.2015)

AGRICULTURE & RURAL DEVELOPMENT AGRICULTURAL REFORM "Reforming agriculture: NITI Aayog's ideas on farm sector reforms deserve a fair trial" – An editorial. – (BS Dec 29, 2015 p 9)

AGRICULTURE – RURAL DEVELOPMENT "Rural development, agri spending rises by 10%" – Contrary to the general impression that social sectors are suffering under the Prime Minister Narendra Modi-led NDA government, latest official data show a nearly 10 per cent increase in real expenditure on agriculture and rural development in the first six months of this year over the corresponding period last year. – (H Dec 24, 2015 p 13)

CROP INSURANCE "Centre to launch new crop insurance scheme next month: To have low premiums, early settlement of claims, says Agriculture Minister" – The Union government will launch a new crop insurance scheme next month, which aims to keep the premium burden on farmers below 3 per cent, according to Radha Mohan Singh, Agriculture Minister. – (HBL Dec 24, 2015 p 17)

CULTIVATION "How much land is cultivated in India?: Divergence between NSSO and agri census estimates indicates participation in farming declining, say analysts" – How much land is actually cultivated in India? Depending on the data source, you might have to give or take the total area of France. Consider this: The latest National Sample Survey Organization (NSSO) report on land and livestock holdings estimates that around 95 million hectares of land was classified as operational holdings in 2012-13. Operational holdings are land that was used wholly or partly for agricultural production. While this includes land being used as kitchen garden or livestock growing, it leaves out cooperative farming and institutional/government ownership. A report. – (Mint Dec 31, 2015 p 5)

FARM LOAN "Farm loans: Interest subsidy scheme distorting the credit system: RBI panel for ending the scheme; also wants universal crop insurance for small farmers, digitisation of land records" – To alleviate agricultural distress, a Reserve Bank of India panel has recommended a slew of measures, including doing away with the current interest subsidy scheme, instituting a universal crop insurance scheme for small and marginal farmers, and digitisation of land records. The committee on medium-term path on financial inclusion, headed by Deepak Mohanty, Executive Director, RBI, suggested that the Centre should come up with universal crop insurance for small and marginal farmers at a heavily subsidised rate, the money for which can be funded by doing away with the current interest subsidy scheme. – (HBL Dec 29, 2015 p 10) Contents

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LIVESTOCK Bhanwala, Harsh Kumar – "Livestock, a lifeline for small farmers" – A fifth of landless and nearly 10 per cent of marginal farmers depend on livestock. This share can be increased. An article. – (HBL Dec 31, 2015 p 9)

INDUSTRY E-COMMERCE Kumar, Shailender – "Coming of age of Indian e-commerce" – Current industry efforts as well as government initiatives like digital India are expanding the reach of internet connectivity beyond urban and suburban centres. An article. – (FE Dec 31, 2015 p 9)

ENERGY SECTOR Mishra, Rajiv – "Mapping India's energy sector: Choosing the right fuel mix without affecting affordability of electricity is crucial" – An article. – (FE Dec 30, 2015 p 7)

HOUSING FINANCE COMPANIES "Housing Fin Cos record robust asset growth" – Investors can expect 20-22% returns from housing finance co shares in the next one year, feel analysts. A report. – (ET Dec 31, 2015 p 9)

INFRASTRUCTURE SECTOR "First, create capacity: Caution on reviving PPP model is warranted" – An editorial. – (BS Dec 31, 2015 p 9) "Foreign funds plan share in India's infrastructure corpus" – Sovereign and pension funds from Russia, Singapore, the U.K. and the UAE are among those to express interest in the Rs. 40,000-crore National Investment and Infrastructure Fund, according to the Union Finance Minister Arun Jaitley. The government will invest Rs.20,000 crore in the Fund that will build greenfield and brownfield projects and revive stalled projects. The remaining Rs.20,000 crore is expected to come from private investors. The government share in the corpus will not exceed 49 per cent. – (H Dec 30, 2015 pp 1, 12)

INSURANCE "Insurance as an estate planning tool" – Nomination is critical, as it cannot be disputed. The biggest benefit is the tax advantage. Since life insurance is one of the few financial products that are long-term, it would be a good idea to include a component in succession planning. A report. – (BS Dec 28, 2015 p 12) "Insurers to return Rs.3,000 crore in suspended Ulips from next month" – Insurance companies will start returning money from suspended insurance-plus-investment plans, or Ulips, of about Rs.3,000 crore from January along with annualised returns of around 8% on the investment. But, these investors would have earned as high as 18% returns if they had continued with the policies due to a surge in stocks, according to insurers. Guidelines for unit-linked insurance plans (Ulips) were revised in 2010 when the regulator capped the overall charges, introduced a lock-in period of five years and a minimum premium paying term, and lowered commissions. Five years later, large insurers have a combined discontinuance fund size of about Rs.3,000 crore. – (ET Dec 28, 2015 p 1)

MANUFACTURING SECTOR "Manufacturing sector on wane in December quarter: Ficci" – The revival prospects for India's manufacturing sector in the October-December quarter seem to be weakening mainly due to a sluggish exports scenario, according to Ficci. The industry chamber in a survey had earlier indicated a revival in the manufacturing activity in the second quarter of the ongoing fiscal, which seems to be slowing down little bit in the October-December period, as a lesser percentage of respondents expect high growth to continue in the quarter under review. – (BS Dec 28, 2015 p 3) Contents

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PHARMACEUTICALS INDUSTRY "Pharma industry may touch $55 bn by 2020" – Country's pharma sector is likely to grow over three-fold to hit $55 billion in the next five years, even as exports from the sector may slow down to grow at a CAGR of 7.98 per cent owing to stricter regulations in markets such as the US, Russia and Africa, according to a report. – (H Dec 29, 2015 p 6)

REAL ESTATE Basu, Debashis – "Real estate Bill: no pressure on officials?" – An article. – (BS Dec 28, 2015 p 9)

TEXTILE INDUSTRY "Govt OKs Amended TUF Scheme for textile sector: Allocates Rs 17,822 cr to clear pending claims as well as roll out the scheme" – The government decided to introduce the Amended Technology Upgradation Fund Scheme (ATUFS) for the textile and garment sector and approved a total allocation of Rs.17,822 crore to clear pending claims as well as roll out the new scheme. – (FE Dec 31, 2015 p 2)

CORPORATE BOND MARKET "FinMin, RBI plan to put curbs on capital funds, term loans for firms" – In order to develop the corporate bond market, the finance ministry and the Reserve Bank of India are planning to restrict the amount of working capital funds and term loans that companies can borrow from banks. The ministry and the regulator plan to encourage companies to meet a portion of their funding requirements by raising funds in the corporate debt market and through commercial papers. Another measure on the cards is to lower the transaction in corporate bonds for all category of investors, and reserve a specific portion of the bonds for retail investors, just as it is done in case of share sale during initial public offers by companies, according to a finance ministry official. – (IE Dec 26, 2015 p 13) Ramadorai, Tarun – "Why no corporate bond market?" – In the short run, enabling a vibrant corporate bond market will result in losses to the banking sector. An article. – (Mint Dec 24, 2015 p 23)

HOUSING FINANCE "41 more housing finance firms allowed to use SARFAESI law: Move will facilitate quicker recovery of dues and encourage companies to lend more" – Call this a New Year gift from the Narendra Modi government to the housing finance sector. The Finance Ministry has allowed 41 more housing finance companies (HFCs) to use the SARFAESI law, bolstering their efforts in recovery of dues and thereby reducing their non-performing assets. This move of the Department of Financial Services (DFS) is also expected to build confidence among the HFCs to lend more to the vulnerable section of society, thereby aiding financial inclusion. – (HBL Dec 26, 2015 p 7)

INFRASTRUCTURE DEVELOPMENT "Tweak anti-graft law to get PPPs going: panel: Kelkar committee also calls for easier ways to fund projects" – Easier funding and amending the anti-corruption law to make allowances for genuine errors by officials topped the recommendations of an expert panel looking at ways to revitalise the public-private partnership (PPP) model of infrastructure development. The committee, led by Vijay Kelkar, a former Finance Secretary, called for moving away from a transaction-based relationship to one focussed on improved service delivery and suggested Deep Discount or Zero Coupon Bonds for low-cost and long-term funding. – (HBL Dec 29, 2015 p 1)

INFRASTRUCTURE FINANCE "NPAs will start moving down from next fiscal: Srei Infra CMD: We are optimistic on investments in the infrastructure sector, says Hemant Kanoria" – Edited excerpts from an interview with Hemant Kanoria, Chairman and Managing Director, Srei Infra. Srei Infrastructure Finance expects improvement in business from 'next year onwards' with NPAs moving down. It also hopes concerns of the infrastructure –

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sector will be addressed. Proceeds from the stake sale in Viom are likely to bring down interest cost and expand disbursals. The company's consolidated profit dipped 62 per cent in the first half of this fiscal to Rs.35 crore. The asset under management (consolidated) stood at Rs.36,246 crore till September 30, 2015. We are not into acquiring stressed assets. However, we have invested in a road and a power company that may look at acquisition. – (HBL Dec 26, 2015 p 7)

MANUFACTURING SECTOR "Opportunities unlimited: Putting manufacturing sector on a fast track is challenging but rewarding" – India manufacturing excellence awards 2015. – (ET Dec 24, 2015 p 13) Mehta, Pradeep S – "Indian industry's fundamental flaw" – The absence of innovation, across the spectrum. Only the assembly lines are powering away and that just won't do. An article. – (HBL Dec 25, 2015 p 9)

TRADE CREDIT – INSURANCE "Irdai proposes changes in trade credit insurance norms" – Seeking to give a fillip to the MSME sector, insurance regulator Insurance Regulatory and Development Authority of India (Irdai) has proposed changes in guidelines on trade credit insurance. In an exposure draft on 'Amendment to Guidelines on Trade Credit Insurance', the sectoral regulator said changes in the economy, especially in micro, small, medium enterprises (MSME) sector, has increased the need for trade credit and has enhanced the scope for the credit insurance sector manifold. Therefore, in order to give a fillip to the growth of the credit insurance market, it is felt necessary to revisit the guidelines which regulate the credit insurance business in India. – (FE Dec 26, 2015 p 3)

SMALL SCALE INDUSTRY ENTREPRENEURSHIP "Action plan for 'Start-up India' on Jan 16: PM" – Seeking to boost entrepreneurship at the grassroots level, PM Narendra Modi said the action plan for the 'Startup India, Stand-up India' programme would be unveiled on January 16 and urged states to help spread the campaign to every part of the country. – (TI Dec 28, 2015 p 1)

MSME "MSMEs enter reform mode in 2015, but road ahead is long and winding" – Micro, small and medium enterprises (MSMEs) contribute nearly 38%to India's GDP and manufacturing output and 40%to the country's exports. But they also have the highest non-performing asset ratio - the ratio of bad loans to total loansamong all sectors at almost 7.7%. Thus, of all sectors that require reforms, MSME sector figures among the top and 2015 proved to be decent for the 'backbone' of Indian economy. The government introduced a onepage online registration process called the Udyog Aadbar Memorandum to formalise more MSMEs. The platform saw more than 100,000 enterprises registering themselves till the last week of December, taking the total number of registered MSMEs to 3.87 million, which is still a small percentage of the almost 49 million MSME units in the country as of 2013-14. – (HT Dec 30, 2015 p 15) Praveen William A – "With GST on its way, MSMEs need to start thinking big" – The MSME sector needs to be prepared for change and look at GST as a business transformation exercise rather than just a tax rate change. An article. – (FE Dec 28, 2015 Supl. p 3)

SME "It's time to log in to e-commerce" – Given the scale at which trade through the Internet is growing, SMEs in India must make the most of the opportunities it offers. A report. – (FE Dec 28, 2015 Supl. p 4)

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INTERNATIONAL ECONOMICS "Learning from the old masters of economics: A new, innovative and flawed thinking gathered strength after 1975" – Being less dismissive of what the central bank has called the old wisdom would be welcome. An article. – (Mint Dec 25, 2015 p 22)

CHINA "New Chinese policy a bigger risk for Asian currencies" – An interview with Frank Benzimra, Head, Asia Equity Strategy, Societe Generale. – (ET Dec 28, 2015 p 14)

USA "Q3 estimate shows US economy growing at 2%" – The government revised its estimate of economic growth in the third quarter down slightly, as consumer spending helped sustain a modest growth rate despite a dip in net exports caused in part by the stronger dollar. – (BS Dec 24, 2015 p 6) "US jobless claims near 42-year low as labour market tightens" – The number of Americans filing for unemployment benefits fell more than expected last week, nearing a 42-year low as labor market conditions continued to tighten. – (FE Dec 25, 2015 p 10)

ZIMBABWE "Zimbabwe turns to Chinese currency in bid to revive its battered economy" – Zimbabwe has found a new way to try to boost its embattled economy - and curry favour with one of its few international backers. It is encouraging people to pay for things, from groceries to souvenirs, with Chinese currency. After announcing that China had agreed to cancel $40m of debt due this year, Patrick Chinamasa, Zimbabwe's finance minister, said he hoped that boosting the use of the renminbi would bolster bilateral trade between the countries. – (FT Dec 23, 2015 p 1)

ASIAN INFRASTRUCTURE INVESTMENT BANK "Asian infra bank formally set up in Beijing" – China-backed Asian Infrastructure Investment Bank (AIIB) in which India is a founder member along with other 56 countries was today formally established here and expected to start operations next month. – (HBL Dec 26, 2015 p 5)

DEBT MARKETS "The risks from increasing debt in emerging markets" – The proportion of bad loans held by large borrowers in India rose to 87.4% in September from 78.2% in March. An article. – (Mint Dec 28, 2015 p 18)

GLOBAL ECONOMIC ISSUES Sharma, Ruchir – "Economy: Watch out for a 'Made in China' global recession" – Global GDP will likely contract by about 5% this year, just the third time it has shrunk in nominal GDP terms since 1980. It's best hope now is for China to escape a deeper slowdown. Outside of China, overall growth in the emerging world fell below 2% in 2015. The China slowdown is hitting countries in the developing world the hardest. Although barely 5% of India's exports head to the dragon nation, the slump in global trade partly induced by China's travails is hurting the Indian economy as well. An article. – (TI Dec 27, 2015 p 16)

GLOBAL GROWTH "Lagarde says global growth will be disappointing in 2016: Says rates hike in US & China slowdown are contributing to uncertainty" – Global economic growth will be disappointing next year and the outlook for the medium-term has also deteriorated, the head of the International Monetary Fund said in a guest article for German newspaper Handelsblatt published. IMF managing director Christine Lagarde said the prospect of rising interest rates in the United States and an economic slowdown in China were contributing to uncertainty and a higher risk of economic vulnerability worldwide. – (FE Dec 31, 2015 p 14) –

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INTERNATIONALTRADE Bown, Chad P – "Emerging economies and WTO tariff liberalisation after Doha: WTO members must decide how to proceed with unfinished business and new issues" – An article. – (FE Dec 26, 2015 p 7)

LABOUR & PERSONNEL MANAGEMENT HUMAN RESOURCES Johri, Vikram – "Inside HR: Eye culture" – An article. – (BS Dec 26, 2015 p 9)

LABOUR LAWS "Inter-ministerial committee working on wages code, small factory bill: BURNING MIDNIGHT OIL PMO wants labour ministry to finalise the details of the labour code on wages as well as the Small Factory Bill, 2014, at the inter-ministerial level as the govt faces a tough battle in Parliament on reforms" – An inter-ministerial committee on labour; headed by finance minister Arun Jaitley will meet to firm up the Labour Code on Wages as well as the Small Factories Bill, 2014 before moving it to the Cabinet for approval. A senior government official told that the Prime Minister's Office wants the labour ministry to finalise the details of the two important legislations at the inter-ministerial level before taking it up to the Cabinet. While the wage code bill aims to amalgamate four labour laws related to wages under one code, the Small Factories Bill seeks to exempt units employing less than 40 workers from 14 labour laws. – (ET Dec 30, 2015 p 13)

MATERNITY BENEFIT ACT "Creches must in offices now: Ministry to amend law making it mandatory for offices with 50 staff" – Employers in both government and private sectors will soon be required to provide crèche facilities for employees, either on the office premises or within a 500-metre distance. The Ministry of Labour is expected to introduce a new provision in the Maternity Benefit Act, 1961, which will mandate all establishments with 30 women or 50 employees, whichever is less, to ensure employees have access to crèches in the vicinity. The Maternity Benefit Act states that every woman who returns to work post-delivery should be allowed two breaks in the course of her day for nursing her child until he or she is 15 months old. – (IE Dec 30, 2015 p 5)

TALENT MANAGEMENT – RECRUITMENT "Cos get innovative to attract right talent" – Ahead of placements Cos make promises of funding startup ideas, use live projects to identify & pick up candidates at B-schools. – (ET Dec 26, 2015 p 4)

MANAGEMENT BUSINESS DEVELOPMENT Aggarwal, Sanjay – "Strategy and planning is critical for growth of promoter-led and family businesses" – An article. – (FE Dec 28, 2015 Supl. p 2)

CORPORATE SOCIAL RESPONSIBILITY (CSR) Nanda, S K – "Strategising CSR - concepts and practices" – An article. – (FE Dec 31, 2015 p 21)

EMPLOYEE MANAGEMENT Mathur, Arpit Prakash – "Managing employees effectively: The skill-will matrix" – Placing employees on the four quadrants of 'high skill-high will'; 'high skill-low will'; 'low skill-high will'; and 'low skill-low will' can help determine the right management approach for given staff members. An article. – (FE Dec 28, 2015 p 12) Contents

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LEADERSHIP "Leadership led by personal example is most effective" – An interview with Swati Bhargava, Cofounder, CashKaro.com – (ET Dec 25, 2015 p 8) Ravichandar, Hema – "Why companies fail to train future leaders" – A lack of real commitment and an entitlement culture are some of the reasons firms are unable to develop a leadership pipeline. An article. – (Mint Dec 28, 2015 p 12)

SKILL DEVELOPMENT "Tax incentives on the cards for skill training institutes in '16-17" – Moving towards a common goal: Both income and service tax benefits have been recommended for 'A category' of project implementing institutes as the govt gears up for kickstarting Skill India Mission. A report. – (ET Dec 28, 2015 p 11)

MISCELLANEOUS TECHNOLOGY TRENDS Bagchi, Shrabonti and Shetty, Mayur – "Trends: Dhobi went online & wallets became mobile" – From carpooling apps to original webshows, a look at the ways tech changed your life this year. An article. – (TI Dec 27, 2015 p 20)

MOBILE USERS "India's mobile subscribers cross 1 billion" – India's number of mobile-phone subscribers topped 1 billion, becoming the only country after China to cross that milestone. The number of subscribers in October reached 1.03 billion, up 0.7% from the preceding month, the Telecom Regulatory Authority of India (Trai). Though phone bills in the country are among the cheapest in the world, India's subscriber base has surged over the years to a size that's more than triple the US population, underscoring the country's growing economic influence. – (Mint Dec 31, 2015 p 2)

NEGOTIATIONS "Is it a good idea to show your hand?" – Book extract: 'Getting (More Of) What You Want' by Margaret A Neale and Thomas Z Lys. – (Mint Dec 28, 2015 p 12)

ONLINE EDUCATION "Trends that will shape online education in India in 2016" – Four Digital Trends: * Online education certificates will become common on resumes. * Recruiters will seek out online education certificates that demonstrate mastery of skills. * Mobile phones will become the adults classroom. * Big data will enable educators to deliver the optimal learning experience. – (FE Dec 28, 2015 p 12)

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