Volume XXX Number 27 April 06, 2015

Weeklies

BI – Business India

BusW – Business World

BusT – Business Today

CMar – Capital Market

EPW – Economic and Political Weekly

SE – Southern Economist

Eco – Economist

For(Asia) – Fortune AsiaCI – Corporate India

Newspapers

BS – Business Standard

ET – Economic Times

FE – Financial Express

FT – Financial Times

H – Hindu

HBL – Hindu Business Line

HT – Hindustan Times

IE – Indian Express

TI – Times of India

Mint – Mint

Classifications

Economy Banking Agriculture & Rural Development Industry Small Scale Industry

International Economics Labour & Personnel Management Management Miscellaneous Books

CONTENTS

A. ECONOMY 1

B. BANKING 2

C. AGRICULTURE & RURAL DEVELOPMENT 15

D. INDUSTRY 15

E. SMALL SCALE INDUSTRY 17

F. INTERNATIONAL ECONOMICS 17

G. LABOUR & PERSONNEL MANAGEMENT 17

H. MANAGEMENT 18

– 1 –

BANKERS' BRIEF Vol. XXX No. 27April 06, 2015

ECONOMY"Macroeconomic snapshot" – A graphical report. – (Mint Mar 30, 2015 p 6)

Kohli, Renu – "FY15: A year of growth enigma: there shouldn't be surprise if the CSO were to reviseits estimates significantly downward" – The evidences favouring subdued economic activity areoverwhelming, which makes the 'gradual but steady recovery' story seem far-fetched. An article. – (FE Mar31, 2015 p 6)

BLACK MONEY"Black money Bill: short disclosure window likely : govt might give 3-6 months time before

enforcement on foreign assets and income" – The government is likely to give a compliance window ofthree to six months for those having unaccounted foreign income and assets, to escape prosecution under theproposed law in this regard. We want to make sure that from the next year onwards, tax payers are disclosingtheir foreign assets. Last week, the government had introduced the Undisclosed Foreign Income and Assets(Imposition of Tax) Bill (black money Bill in popular parlance) in the Lok Sabha. It applies to both undisclosedforeign income and assets. – (BS Mar 28, 2015 p 4)

"Use cheques, plastic currency to tackle black money: Jaitley: Govt taking steps to incentivisecredit, debit card use" – In an effort to curb black money generated through domestic sources, FinanceMinister Arun Jaitley has again pitched for using plastic currency and cheques. As the economy grows, thereis a roadmap, and the roadmap is that more and more people start discarding the use of currency and switchover to either cheques or plastic currency. A report. – (HBL Mar 28, 2015 p 4)

EXTERNAL DEBT"External debt at $461.9 bn" – India's external debt stood at $461.9 billion as of end-December, up 3.5%

from end-March 2014, according to the government. India's external debt-to-gross domestic product (GDP)ratio stood at 23.2% as of end-December, compared with 23.7% as of end-March 2014. – (Mint Apr 1, 2015 p 7)

FOREIGN DIRECT INVESTMENT"India can attract significant FDI if it sorts out tax issues" – Japanese investors remain 'very positive'

about India, saying there is a big opportunity for placing 'significant' FDI if the country can sort out some ofits tax issues, according to a top official of Japan's financial services major Nomura. A report. – (FE Mar 29,2015 p 3)

FOREIGN TRADE POLICY"A bold initiative and an inclusive policy, says India Inc: Welcomes proposals on ease of doing business,

speedy approvals" – India Inc has lauded the new Foreign Trade Policy and believes it could achieve thestated export target of $900 billion by 2020. The policy is inclusive, having spoken about job creation, agriculture,and even mobilising waste for exports. It the first time a trade policy has included subjects like the ease ofdoing business, transaction simplification, speed of approvals etc. so it a positive, according to Ajay Shriram,President, Confederation of Indian Industry (CII). A report. – (HBL Apr 2, 2015 p 4)

"Exports to see 14% CAGR in next 5 years" – An interview with Rajeev Kher, Commerce Secretary.– (Mint Apr 2, 2015 p 29)

"FTP driven by structural, systematic, systemic reforms" – Edited excerpts from an interview with NirmalaSitharaman, Union Commerce Minister. – (Mint Apr 2, 2015 p 29)

"New Foreign Trade Policy on April 1" – The Centre will unveil the new Foreign Trade Policy (FTP) onApril 1, aimed at giving fillip to exports with an objective to drive economic growth and create more employmentopportunities. Foreign Trade Policy 2015-20 to be unveiled on April 1, 2015, according to Commerce and

– 2 –

Industry Minister Nirmala Sitharaman in a tweet. The FTP will be aligned with Make In India, Digital India,ease of doing business and India's free trade pacts with its partner countries. The much-delayed FTP mayinclude sops for labour incentive sectors like leather and handicraft. – (HBL Mar 28, 2015 p 4)

"New trade policy aims to double exports to $900 b: five-year policy streamlines incentives; Centreopts for mid-term review" – The long-awaited five-year Foreign Trade Policy (FTP) announced onWednesday unrolled two new incentive schemes for goods and services exports with a focus on labour-intensive and high-potential sectors. To ensure stability in the policy regime, the Centre has opted for a mid-term review instead of an annual one. A report. – (HBL Apr 2, 2015 p 1)

GOLD IMPORTNarang, Tejinder – "Leveraging gold import" – Let bullion importers buy dollars from exporters at a

premium. An article. – (FE Mar 28, 2015 p 6)

INFLATION"StatsGuru: Behind the worrying uptick in food inflation" – For much of the recent past, high food

inflation has driven all-round price increases. But, food inflation trended downwards in the first months ofNarendra Modi's prime ministership, whether measured in wholesale or retail terms. But, worryingly, it hasgone up again more recently. A report. – (BS Mar 30, 2015 p 4)

POVERTY ALLEVIATION"Defeating poverty: issues & challenges" – Excerpted from RBI, Deputy Governor, S S Mundra's address

during 39th Skoch Summit. – (BS Apr 2, 2015 p 5)

BANKING

GENERAL"2015 edition: Yes Bank challenge: the top 10 teams" – A case study challenge for business schools, held

as part of the third edition of the Yes Bank Transformation Series was attended by over 3,000 teams. Wepresent the profiles of the top ten teams. A report. – (Mint Mar 27, 2015 p 22)

"Bank holidays may hit salary payments" – Noting with concern the number of bank holidays betweenMarch 28 and April 5, industry body Assocham sought the intervention of the Reserve Bank of India (RBI)as well as the government to make 'some arrangements' to avoid inconvenience to customers. The holidayswill disrupt financial transactions in the stock markets, normal commercial deals, export shipments, importconsignments and salary payments, according to Assocham. – (H Mar 27, 2015 p 4)

"FinMin asks banks to deposit March TDS by month-end: wary of shortfall in overall direct taxcollection" – Worried over the shortfall in the overall direct tax collection kitty, the government has askedbanks, both public and private, to not delay remitting of TDS funds of the current month into state coffers anddo the same within the current financial year ending in March. – (HBL Mar 30, 2015 p 13)

"Indian Banks' Association: Banking Technology Awards 2015" – A commercial feature. – (BS Apr 2,2015 Supl. pp 1-4)

"New RBI norms on capital, liquidity" – The Reserve Bank of India (RBI) announced amendments toregulations on capital adequacy and liquidity for banks operating in the country, in order to more closely alignthem with the standards set by Basel III rules. – (Mint Apr 2, 2015 p 9)

"RBI intervention sought on series of bank holidays" – Noting with concern the number of bank holidaysbetween March 28 and April 5, industry body Assocham sought the intervention of RBI as well as thegovernment to make 'some arrangements' to avoid inconvenience to customers. – (FE Mar 27, 2015 p 8)

– 3 –

BIHAR"A bank run by beggars, for beggars in Bihar town" – A group of beggars in this Bihar town has opened

their own bank, which they run and manage to provide financial security in times of crisis. Dozens of beggars,who have been depending for their survival on alms from hundreds of Hindu devotees at the gate of 'MaaManglagauri Mandir' (temple) in Gaya town for years, have started the bank. The beggars call it MangalaBank. It is true that we have established a bank for ourselves, according to Raj Kumar Manjhi, one of the 40beggars who are members of this unique 'bank'. – (HBL Mar 28, 2015 p 14)

KARNATAKA

– KARNATAKA VIKAS GRAMEENA BANK

"Banking on wheels to be launched on March 30" – For the first time in north Karnataka, the KarnatakaVikas Grameena Bank will launch the 'Banking on wheels' facility here on March 30. Bank chairman NAshok Reddy said that under this new scheme, a vehicle installed with an ATM will tour the remote villagesand help the people to operate their bank accounts. It would help beneficiaries of the social security pensionschemes and those receiving wages under the Mahatma Gandhi National Rural Employment Guarantee Actschemes. Their money is deposited in the bank accounts. They need not go to nearby town for withdrawaland can get their money at the time of need. – (H Mar 28, 2015 p 7)

AXIS BANK"Axis Bank's derisking efforts yielding results" – Maintain 'outperform' on Axis Bank with a target of

Rs.680 per share. Management believes that corporate loan demand is unlikely to come back in a hurry andthe recent pick-up for the bank has been driven by takeover and re-financing. The bank has gained marketshare taking advantage of the opportunities in the segment and management believes that opportunities formarket share gains remain over the next few quarters. Loan growth will also be therefore more balancedacross both corporate and retail segments. – (FE Mar 31, 2015 p 9)

BANK OF BARODA"Conferred Most Efficient Public Sector Bank'" – Bank of Baroda has been conferred 'The Most Efficient

Public Sector Bank' of the year 2014 in the Dalal Street Investment Journal (DSIJ) Best PSUs of IndiaAwards at a function recently held at New Delhi. Shri Ranjan Dhawan, Managing Director & CEO, Bank ofBaroda accepted the award. – (FE Mar 31, 2015 p 18)

"Launches Baroda mPassbook" – Bank of Baroda, as part of new customer centric IT initiatives haslaunched Baroda mPassbook on 13th March 2015, a mobile app on Android platform to view account andtransactions related information on a mobile phone. Online credit to PPF account and PPF account statementthrough Bank's Internet Banking - Baroda connect was also launched. – (FE Mar 31, 2015 p 18)

BANK OF INDIA

– BANK CAPITAL

"Bank of India raises Rs.642 cr capital" – Bank of India (BOI) has raised Rs.641.99 crore through the issueof equity shares to Life Insurance Corporation and New India Assurance Company. – (H Mar 26, 2015 p 16)

CANARA BANK"Canara Bank to raise funds from LIC" – Canara Bank is planning to raise funds, through a preferential

allotment, from the Life Insurance Corporation of India (LIC). LIC has informed that it is willing to subscribeup to 40 million equity shares, at a price to be determined according to Sebi ICDR regulations, subject to thetotal exposure not exceeding 15 per cent of post issue capital. – (BS Apr 1, 2015 p 6)

– 4 –

CATHOLIC SYRIAN BANK"Catholic Syrian Bank files papers for Rs.400-cr IPO" – Catholic Syrian Bank has filed draft papers with

capital markets regulator Sebi to raise up to Rs.400 crore through an initial public offer to shore up its capitalbase. – (FE Apr 2, 2015 p 8)

"Catholic Syrian Bank to file for IPO in April" – India's Catholic Syrian Bank Ltd will file a draft listingprospectus by the end of April, paving the way for an initial public offering to raise nearly $80 million, twosources involved in the process told Reuters. Kotak Investment Banking and ICICI Securities are advisingthe bank on the listing. An ICICI Securities spokeswoman declined to comment, while officials at Kotak andCatholic Syrian were not immediately reachable for comment. – (FE Mar 28, 2015 p 8)

ICICI BANK"ICICI Bank to sell infra bonds, raise Rs.2,400 crore" – ICICI Bank Ltd, India largest private bank by

assets, is planning to raise Rs.2,400 crore from domestic investors through a sale of infrastructure bonds, twopeople familiar with the deal said. The issue is likely to open and close on Monday, one of the two people said.The ground work for the issue is done and the bank will look to close it before the end of the fiscal year whichis Tuesday, the second person said. Both persons declined to be named. – (Mint Mar 28, 2015 p 9)

– BANK CAPITAL

"ICICI Bank repatriates capital from UK, Canadian arms" – ICICI Bank has commenced efforts torepatriate capital from its overseas banking subsidiaries (UK and Canada) in order to optimise capital for theICICI Group and improve its return on equity. The country's largest private bank had received approvals forand repatriated $100 million of capital from its wholly owned subsidiary in the UK (ICICI Bank UK) inMarch 2013 and CA$75 million from its wholly owned subsidiary in Canada (ICICI Bank Canada) in May2013. – (HBL Mar 31, 2015 p 6)

INDIAN BANK"Govt extends Indian Bank CEO Bhasin's term" – T M Bhasin, chairman and managing director (CMD)

of Indian Bank, has been given a one-year two-month extension to serve in the Chennai-based lender.However, according to the recent practice set by the government, Bhasin will be the chief executive officerand managing director, and not CMD - till May 2016 - when he turns 60. Bhasin was appointed as CMD ofIndian Bank of April 1, 2010, and was given a five-year term, which will end on March 31. He was also thechairman of the Indian Banks' Association. In October last year, the government declined to extend PunjabNational Bank (PNB) CMD K R Kamath's term even though he had one year of service left. Like Bhasin,Kamath was given a five-year term in PNB when he was appointed on October 28, 2009. – (BS Mar 28,2015 p 3)

KARNATAKA BANK"Karnataka Bank's 'Vision 2020' soon" – Karnataka Bank Ltd is targeting business turnover of Rs.91,000

crore for 2015-16. This includes deposits of Rs.53,500 crore and advances of Rs.37,500 crore. Rolling outthe business agenda for the current fiscal, P Jayarama Bhat, Managing Director and Chief Executive Officer,envisaged an overall growth of 17 per cent in business. – (HBL Apr 2, 2015 p 6)

KOTAK MAHINDRA BANK"Integrating people, technology are main challenges, says Kotak Mahindra CFO" – Excerpts from an

interview with Jaimin Bhatt, President and Group CFO, Kotak Mahindra Bank. – (HBL Apr 2, 2015 p 6)

"Kotak Mahindra, ING Vysya merger gets RBI approval" – Kotak Mahindra Bank has received theReserve Bank of India's approval for acquiring ING Vysya Bank, making Kotak the fourth largest privatelender in the country. – (HBL Apr 2, 2015 p 6)

"You have to be at the cutting edge of tech" – An interview with Uday Kotak, executive vice chairman andmanaging director, Kotak Mahindra Bank. – (FE Mar 28, 2015 pp 1, 2)

– 5 –

LAKSHMI VILAS BANK

– BANCASSURANCE

"Max Life Insurance ties up with Lakshmi Vilas Bank" – Max Life Insurance and Lakshmi Vilas Bank(LVB) have entered into a five-year strategic alliance for distribution of the former's products through 400branches of the private sector bank. Under the bancassurance deal, LVB has become a corporate agent forMax Life Insurance and will offer a bouquet of life insurance solutions and after-sales services to its customers.Max Life Insurance already has tie-ups with Axis Bank, YES Bank and 10 urban co-operative banks.– (HBL Mar 31, 2015 p 6)

PUNJAB NATIONAL BANK"Punjab National Bank launches PNB Rewardz mobile app" – Punjab National Bank one of the premier

nationalized bank with a customer base of 9.24 crore, 8200 ATMs and debit card base of 3.30 crore haslaunched a 'PNB Rewardz Mobile App'. The app was launched by MD & CEO of PNB Shri Gauri Shankarat New Delhi. PNB Debit Card holders can earn and accumulate reward points for all their spends at Pointof Sales and online purchases, (e-commerce). – (HBL Mar 27, 2015 p 2)

RESERVE BANK OF INDIA"A new milestone at Mint Road" – The Reserve Bank of India (RBI), established through the Reserve Bank

of India Act, 1934, commenced operations in 1935. Unlike many other central banks, with a sole mandate ofinflation targeting, RBI wears many hats - monetary policy authority, supervisor and regulator of the financialsystem, manager of foreign exchange and issuer of currencies, among others. On Thursday, Prime MinisterNarendra Modi will be in Mumbai to commemorate the central bank turning 80. Business Standard takes alook at RBI's 80-year journey. – (BS Apr 2, 2015 Sec. II p 3)

Gokarn, Subir – "Constancy and change" – An article. – (BS Apr 2, 2015 Sec. II p 3)

Srinivasa-Raghavan, TCA – "The uneasy relationship" – An article. – (BS Apr 2, 2015 Sec. II p 3)

STATE BANK OF INDIA"SBI dilutes stake in non-life insurance venture: Australian partner will now own 49%" – State Bank

of India has decided to dilute its stake in SBI General Insurance from 74 per cent to 51 per cent in favour ofjoint venture partner Insurance Australia Group. – (HBL Mar 27, 2015 p 1)

"SBI set to buy AI properties in Mumbai" – State Bank of India has received all necessary approvals tobuy residential properties of cash-starved national carrier Air India, in south Mumbai for Rs.90 crore.– (TI Mar 30, 2015 p 13)

"SBI to cut lending rate after funding cost & provisioning requirement fall" – State Bank of India (SBI)chairman Arundhati Bhattacharya has said the bank will cut lending rates when the credit cost and amount ofprovisioning requirement comes down. Speaking to a private news channel, she said as of now she does notsee more than half-a-per cent rate cut across the year, but that would also depend on how other banks decideto go ahead with the rate cut. – (FE Apr 2, 2015 p 8)

"SBI to divest up to 10% stake in life insurance venture" – State Bank of India (SBI) said it has receivedboard approval to divest up to 10% stake in SBI Life Insurance. This comes days after the bank announcedthat Insurance Australia Group (IAG) would increase its stake in their general insurance joint venture SBIGeneral from 26% to 49%. – (FE Apr 1, 2015 p 8)

"State Bank of India: ' Brand of the Year'" – State Bank of India won the 'Brand of the Year' award inbanking in India at The World Branding Awards that took place In Paris, France on March 25th, 2015. Theglittering ceremony at the iconic Hilton Paris Opera honoured 50 brands from 22 countries. The secondinstallment of the World Branding Awards 2014-2015 had an emphasis on food, beverage, luxury, fashion,lifestyle, hospitality, and service brands. The premiere Awards was held in London last year. The Awards isorganised by the World Branding Forum (WBF), a global non-profit organisation dedicated to advancingbranding standards for the good of the branding community as well as consumers. – (FE Mar 31, 2015 p 18)

– 6 –

"State Bank TLCs demystify tech-channels of banking" – TLC is a unique initiative launched by SBI toempower its customers through technology and awareness. 385 State Bank Tech Learning Centres (TLCs)across the length and breadth of the country have started holding interactive learning sessions and demos ofthe bank's tech-channels for thousands of customers every month since November 2014. – (ET Mar 30,2015 p 10)

"We have completely redefined our business process: SBI MD Sriram" – Excerpts from an interviewwith B Sriram, Managing Director and Group Executive (National Banking), SBI. During Q3, we haverecovered Rs.602 cr against Rs.360 cr in the same quarter last year. – (HBL Mar 31, 2015 p 6)

– HUMAN RESOURCE MANAGEMENT

"SBI mulls stock options, faster promotions for staff" – State Bank of India is likely to offer employeeshare options, recruit specialists and faster promotions - radical changes that promise to shake up a debt-heavy sector. A report. – (HT Apr 2, 2015 pp 13, 14)

STATE BANK OF MYSORE"Launch of new deposit card-State Bank SMNE Insta Deposit Card" – State Bank of Mysore, a premier

Scheduled Commercial Bank in Karnataka, established in 1913, with Pan India presence of 1000+branchesand a total Business level Rs.1,15,000 crore, launched a new Deposit Card viz., State Bank SME IndiaDeposit Card. – (HBL Mar 27, 2015 p 2)

TAMILNAD MERCANTILE BANK"CCI dismisses case against Tamilnad Mercantile Bank" – Competition Commission has dismissed a

complaint which alleged that private sector lender Tamilnad Mercantile Bank indulged in unfair businesspractices while providing banking services. A complaint filed by timber firm Matha Timbers had alleged thatTamilnad Mercantile Bank had abused its dominant position in Tamil Nadu by imposing unfair terms andconditions in its loan agreements and sanction letters. In a recent order, the Competition Commission of India(CCI) said that the alleged dominant position of the opposite party (Tamilnad Mercantile Bank) is not establishedin the present case. – (FE Mar 28, 2015 p 8)

UNITED BANK OF INDIA

– BANK LENDING

"RBI removes curbs on UBI" – The Reserve Bank of India has removed the restriction imposed on UnitedBank of India for sanction of credit and participation in restructuring proposals. This is significant in view offresh slippage by corporate borrowers, including some restructured loans. – (HBL Mar 27, 2015 p 6)

"UBI won't lend aggressively despite removal of lending restriction: CEO: The bank will continueto focus on lending to retail and SME sectors" – United Bank of India (UBI) will not lend aggressively,despite the Reserve Bank of India (RBI) deciding to remove the lending restriction imposed on the bank. Areport. – (BS Mar 27, 2015 p 6)

– RECOVERY OF LOANS

"A 'silent reminder' to wilful defaulters" – Officials and staff of United Bank of India, Gokul Road,experimented with a new method recently and it seems to have made an impact. Holding placards that said'please pay our dues', bank manager Durjoy Rabha, his deputy and other staff stood before the building whichhoused a play home at Keshwapur in Hubballi. They stood there silently for some time, in a bid to 'remind' a'wilful defaulter couple' to pay their dues. A report. – (H Mar 26, 2015 p 3)

"United Bank of India stir against defaulters to continue" – United Bank of India employees wouldcontinue to hit the streets and protest at the residence and workplaces of defaulters to recover bad loans untilthe bank's asset quality improves, according to a senior official. – (FE Apr 2, 2015 p 8)

– 7 –

VIJAYA BANK

– BANK CAPITAL

"Vijaya Bank raises Rs.400 cr" – Vijaya Bank has augmented its Tier-I Capital by raising Rs.400 croresthrough an issue of unsecured, subordinated, non-convertible, perpetual Basel-III compliant additional Tier-Ibonds with a coupon rate of 10.40 per cent per annum. The issue was fully subscribed and allotment wasmade on 27-03-2015. – (BS Mar 28, 2015 p 3)

CHINA"China's central bank chief wary of growth slowdown: as country faces risk of both deflation and

recession, PBOC may have to lower lending rates and cash reserve ratio again" – China's centralbank chief said that the nation's growth rate has tumbled 'a bit' too much and that policy makers have scopeto respond, underscoring forecasts for further monetary easing in the world second-largest economy. Areport. – (FE Mar 30, 2015 p 4)

EUROPE"European bank mergers: Passport check" – Banking union or no, an integrated European market is still

some way off. An article. – (FE Mar 28, 2015 p 12)

USA

– EUROPE

"Top US, European banks axed 59,000 jobs last year, more cuts to come" – Top European and U.S.banks axed 59,000 jobs last year as they restructured and cut costs, with headcount expected to shrinkfurther in Europe as bosses strive to improve profitability that has been hit hard by tougher regulation.Lenders have also sold or shut businesses to narrow their focus to avoid falling foul of regulators concernedthat some have become too big and complex. Analysts said that European banks, especially those in the eurozone, are likely to wield the knife again because they remain the most unprofitable in the world. A report.– (HBL Mar 31, 2015 p 6)

– FEDERAL RESERVE

"Monetary policy and the markets: a leap in the dark" – How will investors react to America's first rateincrease in nine years? An article. – (Eco 414(8930) Mar 21, 2015 pp 56-58)

AADHAAR-ENABLED PAYMENT SYSTEMSingh, Ashok Pal – "The made-in-India cashless wonder" – With over 5 crore successful payment

transactions and 15 crore bank accounts linked to Aadhaar, AEPS is an idea whose time has come. Anarticle. – (FE Mar 31, 2015 p 7)

ANNUAL CREDIT PLAN"Koppal gets Rs.1,478.97-crore annual credit plan for 2015-16: the outlay has increased by Rs.305.01

crore from last year" – Krishna Udupudi, Chief Executive Officer, Koppal Zilla Panchayat, released theRs.1,478.97-crore annual credit plan, prepared by the State Bank of Hyderabad, the lead bank of Koppaldistrict, for 2015-16. The outlay has increased by Rs.305.01 crore registering an increase of 26 percent fromthe previous year. Agriculture sector gets the lion's share with Rs.950.86 crore. For industrial developmentRs.183.88 crore had been set aside. A report. – (H Mar 27, 2015 p 3)

ASSET RECONSTRUCTION COMPANIESNayak, Mahesh – "Opening the floodgates" – Private equity funding of asset reconstruction companies will

transform the bad loan market, but for that complete control over the acquired assets is a necessity. Anarticle. – (BusT 24(6) Mar 16, 2015 pp 52-58)

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BANK CAPITAL

– PUBLIC SECTOR BANKS

"Bid to sort out capital issues: PSBs may present separate plans to Finmin: Govt has infused Rs.6,990crore in only nine of the 27 PSBs this fiscal against Rs.14,000 crore in 20 banks in previous year"– Public sector banks are likely to make individual presentations to the finance ministry on their capitalrequirements and business plans. The move comes days after some of these banks raised concerns overtheir funding requirements. If banks find it difficult to raise capital for whatever reason, we will encouragethem to look at the possibility of restructuring their business portfolio, according to Hasmukh Adhia, FinancialServices Secretary. A report. – (ET Mar 27, 2015 p 11)

BANK CHARGES"Pay more for bank services from today" – From Wednesday, private sector bank customers will now have

to shell out more for financial services, especially for non-maintenance of minimum balance in accounts, asbanks including ICICI Bank and HDFC Bank have hiked service charges and penalties. The revised charges,among others, are for non-maintenance of average monthly balance, cash deposit at branches, internet orphone banking pin, and issuance of cheque books. A report. – (HBL Apr 1, 2015 p 6)

BANK FRAUDS"Fraud: RBI may take action on banks" – The Reserve Bank of India said the central bank may initiate

supervisory action if a bank falls to report a fraud beyond a prescribed period and the bank will have to makefull provisions at one go if the delay in reporting happened. – (Mint Apr 2, 2015 p 9)

– CREDIT CARDS

"2 held for cheating 40 credit card holders" – The Mumbai crime branch busted a racket of credit cardfraudsters and arrested two men from Delhi, who allegedly cheated at least 40 people in the city to the tuneof Rs.2.20 lakh between April 2014 and January 2015. The crime branch's property cell said the two, formercall centre employees, would secure basic information about credit card holders of two private banks fromtheir call centres. They would then call the people and make them divulge their personal identification number(PIN), card verification code (CVC) and similar information. Apart from Mumbai, the duo has targetedpeople in various other states. A report. – (HT Mar 29, 2015 p 3)

BANK LENDING"At 9.75%, non-food credit grows lowest in a decade on slowdown" – Banks' non-food credit grew at the

lowest pace in a decade in fiscal year 2014-15 as a slowdown in the economy crimped fresh loan demandfrom corporates and a sharp fall in bond yields drove companies to take recourse to the bond market. Non-food credit rose 9.75% to an outstanding Rs.64.70 lakh crore as of March 20, data from the Reserve Bankof India showed. A report. – (FE Apr 2, 2015 p 8)

"RBI moves to restrict bank exposure to corporate loans" – The Reserve Bank of India has proposedthat banks must bring down their exposure to large borrowers to 25% of Tier-I capital over the next threeyears from as high as 55% of capital funds allowed now. A discussion paper by the central bank moots thisalong with various other recommendations which would help channel banking credit to more productive andvaried sectors and also reduce concentration risk for the banks. Also, the RBI wants large corporates toaccess capital markets more for funds rather than depend on the banking industry. A report. – (FE Mar 29,2015 p 3)

Sabnavis, Madan – "Bank on the bank credit growth" – It should be used as the leading indicator of non-agricultural growth. It can also be used as a basis for policy formulation as it captures both current and capitalaccounts of industry. An article. – (FE Mar 30, 2015 p 7)

– 9 –

BANK SCAM

– MUMBAI DISTRICT COOPERATIVE BANK

"Case against BJP's Darekar in Rs.123-cr bank scam in state" – The police have registered a caseagainst Pravin Darekar, BJP leader and chairman of the Mumbai District Central Cooperative Bank Ltd.,and three other office bearers, including its former chairman Shivajirao Nalawade, for misappropriation offunds and embezzlement amounting to Rs.123 crore. The complainant, Vivekanand Gupta, a lawyer, allegedthe accused misused their official positions in the bank. A report. – (HT Mar 29, 2015 pp 1, 6)

BANKING REGULATOR

– MONEY MARKET

"Policy freedom shrinks for a hamstrung RBI: The process to clip the central bank's wings, whichhad started during the previous government's rule, is now picking up pace" – Taking away moneymarket operations from RBI could adversely impact monetary transmission. A report. – (BS Apr 1, 2015Sec. II p 6)

BANKING REGULATORS"Bank resolution: pre-empting the next crisis" – Regulators' desire to make banks easy to kill is determining

how they live. An article. – (Eco 414(8931) Mar 28, 2015 pp 67-68)

BANKING TECHNOLOGY"The awards reward banks for effectively leveraging technology" – The IBA Banking Technology Awards

have over the years, acted as catalysts by recognizing and rewarding the efforts of banks aiming to makebetter use of technology, accelerate levels of technology absorption and improve levels of customer serviceand satisfaction. T M Bhasin, Chairman, IBA and CMD, Indian Bank speaks on the various aspects of theawards. – (BS Apr 2, 2015 Supl. p 1)

"Technology - the path to new age banking" – The captains of the banking industry echoed the role oftechnology in the overall development and a looking at large investments to upgrade their technologies to beat par with the standards of the banking sector globally. – (BS Apr 2, 2015 Supl. p 3)

Anand, Rajiv – "The tectonic shift: technology is changing the way we bank... for the better" – Anarticle. – (BS Apr 2, 2015 Supl. p 1)

Krishnakumar, V S – "Moving towards a cashless society" – An article. – (BS Apr 2, 2015 Supl. p 4)

Ramasastri, A S – "A win-win for banks and customers" – An article. – (BS Apr 2, 2015 Supl. p 3)

Sriram, B – "Technology is all encompassing" – An article. – (BS Apr 2, 2015 Supl. p 4)

Tanksale, M V – "Use of technology has enabled move from class to mass banking" – An article.– (BS Apr 2, 2015 Supl. p 4)

Tiwari, Arun – "Technology is a cost saver" – An article. – (BS Apr 2, 2015 Supl. p 4)

CONVERTING DEBT INTO EQUITY"Drowning in debt: speeding up court decisions must be a priority" – The Securities and Exchange

Board of India, or Sebi, has liberalised the norms for banks to convert their holding of companies' debt intoequity. Earlier, there was a 10 per cent cap on the conversion and the market regulator had laid down theformula for the price: the average share price of the previous 30 days or the previous six months, whicheverwas higher. By doing away with these two restrictions, it is assumed that the banks will be able to converttheir stressed debt into equity more easily and fairly. An editorial. – (BS Mar 27, 2015 p 9)

"How new debt norms will ease banks' pain" – Banks can now convert any amount of debt into equity, butmany believe the relief will be short-lived. A report. – (BS Mar 27, 2015 Sec. II p 5)

– 10 –

"Swachh bank abhiyan: end of forbearance by RBI is a good thing" – An editorial. – (FE Apr 1, 2015 p 6)

COOPERATIVE BANKING

– SHAMRAO VITHAL COOPERATIVE BANK

"SVC Bank adds 6 new branches, total crosses 175 branches" – SVC Bank which was recently in thenews for the launch of 12 branches, has launched another 6 branches in a single day thus surpassing the 175branches milestone. – (ET Mar 30, 20158 p 10)

CORPORATE DEBT RESTRUCTURING"...but new norms may dilute cell NPA recast powers" – After almost a decade and a half of restructuring

large-sized corporate loans, the corporate debt restructuring (CDR) cell will lose its prominence as thepreferred set up to deal with reviving stressed assets. A report. – (FE Apr 1, 2015 p 8)

"CDR cell recasts Concast Rs.7,500-cr debt..." – A day before the regulatory forbearance on restructuredassets ends, lenders to Kolkata-based Concast Group led by State Bank of India have agreed to a Rs.7,500-crore debt recast package via the corporate debt restructuring cell. A report. – (FE Apr 1, 2015 p 8)

"Concast recast latest in rush to redo debt" – Led by State Bank of India, lenders to Kolkata-basedConcast Group have given informal consent to restructure Rs.5,000 crore debt of eight of the group companiesvia the corporate debt restructuring cell. Sources privy to the development told FE that the plan is to mergethe eight companies into one entity. Between April 2014 and February 2015, the CDR cell okayed recastsworth Rs.51,250 crore. That compares favourably with the Rs.1.01 lakh crore restructured in FY14 andRs.78,000 crore in FY13 but bankers say many mid-sized and small companies are in trouble. A report.– (FE Mar 28, 2015 pp 1, 2)

"Pipavav lenders clear debt revamp package" – Lenders have finally approved a much-delayed CDR(corporate debt restructuring) package for Pipavav Defence & Offshore Engineering. They have a loanexposure of close to Rs.7,500 crore in the company. A report. – (HBL Mar 27, 2015 p 1)

CORPORATE FINANCE"Corporate loan books shrink on muted project finance demand" – With virtually no demand for project

finance, corporate loan books at most banks have barely grown in the first nine months of FY16 with theportfolio shrinking for a couple of top players. Companies have preferred to access the commercial paper(CP) market for their short-term needs and banks seem to have lent more via the CP route than through theloan market. A report. – (FE Apr 1, 2015 p 8)

CUSTOMER SERVICEBunet, Raja Amarjeet – "What sets your bank apart" – Banks in India need to ensure that service is

delivered the way the customers want and not how banks can deliver. An article. – (HBL Mar 27, 2015 Supl.P 2)

DIRECT BENEFIT TRANSFER"Data Drive: DBT: The successes and pitfalls" – The NDA government has lapped up the UPA game-

changer direct benefit transfers (DBT) scheme to ensure that subsidies reach the targeted audience, but it isyet to take off in a big way. It has been a mixed bag, with great success in the case of liquefied petroleum gas(LPG) where close to 12 crore subscribers have opted for the scheme. A graphical report. – (FE Mar 28,2015 p 7)

EXECUTIVE APPOINTMENTS"Govt tightens rules for appointing bank directors" – The government on Wednesday tightened rules for

the appointment of independent directors on the boards of state-run banks, insurance companies, other financialcompanies and the Reserve Bank of India, seeking to improve standards of corporate governance at suchinstitutions. – (Mint Apr 2, 2015 p 3)

– 11 –

FINANCIAL INCLUSION

– PMJDY

"Banks turn to biz correspondents to make Jan Dhan accounts operational" – After the rush of openingbasic savings bank accounts under the mission-mode financial inclusion project, Prime Minister's Jan DhanYojana (PMJDY), banks are trying to make these accounts operational. As of February, 2015, about 13.68crore accounts were opened by public sector banks, regional rural banks and private sector banks. However,out of these, about 8.60 crore accounts have zero balance and the Indian Banks Association (IBA) is nowworking on making them operational. A report. – (HBL Apr 1, 2015 p 6)

FOREIGN BANKING

– HSBC

"We have a particular focus on digital" – Excerpts from an interview with Stuart Milne, CEO, HSBC India.HSBC has done well in India over the years thanks to the bouquet of services it offers across the corporateand retail channels. – (FE Mar 27, 2015 p 8)

INTEREST RATESShah, Nimesh – "The interest rate reduction cycle has only just begun" – An article. – (Mint Apr 2, 2015

p 20)

– BANK LENDING

"Reluctant banks may be forced to scissor rates: Cheaper credit on the way surplus liquidity in newfiscal on increased govt spending and corporates' refusal to take costly loans may finally forcelenders' hand" – A two-year wait for cheaper credit may end in the next few weeks as banks across theboard are poised to lower lending rates since surplus liquidity and low credit demand are likely to force theirhand. The country's top bankers -be it State Bank of India, or IDBI Bank, or Axis Bank - seem to be on thesame page now on interest rate direction and the need to lower rates to push credit demand. Companiesturned their backs on banks that were reluctant to lower rates despite market rates headed down withcomfortable liquidity. With increased government spending, the liquidity is likely to be abundant at the beginningof new fiscal. This would lead to bank base rate cuts in April-June quarter, according to N S Venkatesh, IDBIBank's executive director & chief financial officer. – (ET Mar 31, 2015 p 1)

Bandyopadhyay, Tamal – "Why aren't banks cutting loan rates?" – An article. – (Mint Mar 30, 2015 p 11)

– ICICI BANK/ HDFC BANK

"ICICI, HDFC Bank cut bulk deposit rates by up to 25 bps" – Top private lenders ICICI Bank andHDFC Bank have cut deposit rates by up to 0.25 per cent (25 basis points) on high value fixed deposit onselect maturities, a move cited as a precursor to cut lending rates for borrowers. The interest rates have beenrevised downwards for deposits over Rs.1 crore by 25 bps by ICICI Bank effective March 30. – (HBL Mar31, 2015 p 6)

– INDIAN BANK

"Indian Bank revises interest rates" – Indian Bank has revised the foreign currency non-resident bankingterm deposits interest rates with immediate effect. – (FE Apr 2, 2015 p 8)

INTERNATIONAL FINANCIAL CENTRE"RBI sets rules on banking units in international financial centres: Central bank allows local and

foreign banks that are authorized to deal in foreign exchange to set up units" – The Reserve Bankof India (RBI) allowed public and private sector banks in India that are authorized to deal in foreign exchangeto set up banking units in the proposed international finance service centres (IFSC). Each eligible bank wouldbe permitted to establish only one banking unit in each IFSC, guidelines for which were issued by the Securitiesand Exchanges Board of India (Sebi) on 22 March. – (Mint Apr 2, 2015 p 7)

– 12 –

LOAN RESTRUCTURING"Banks rush to restructure bad loans before rule change" – Bankers moved to recast bulky loans in the

January-March quarter ahead of a change in rules which will lead to restructured loans being categorized asbad loans, attracting a minimum provision of 15%. A report. – (Mint Apr 1, 2015 p 14)

"Loan restructuring shifts to joint lenders' fora: In July-Feb, commercial banks formed 355 such fora for stressed assets" – The fact that the corporate debt restructuring (CDR) forum has received onlyeight cases, worth Rs.15,000 crore, so far this year might give the impression that pressure from stressedassets is on the decline. However, dig deeper and one realises loan/debt recasts are alive and kicking, albeitunder joint lenders' forums (JLFs). Between July 2014 and February this year, commercial banks formed 355JLFs for troubled cases. In keeping with their share of overall loans, public sector banks accounted for 254such cases. The country's largest lender, State Bank of India, was handling 107 cases, as head of a consortium,according to finance ministry data. A report. – (BS Apr 1, 2015 p 1)

MICROFINANCE"Base rate for MFIs fixed at 10.09%" – The Reserve Bank of India said the average base rate applicable

for lending by microlenders for the quarter beginning April 1 should be 10.09 per cent. – (IE Apr 1, 2015 p 13)

MOBILE PAYMENTS"Mobile payments: unfriending cash" – Facebook enters the booming market for mobile payments. An

article. – (Eco 414(8930) Mar 21, 2015 p 59)

MONETARY POLICY"A fine balance" – The differences over the constitution of the Monetary Policy Committee should be ironed

out by providing the Centre with a voice and the RBI governor with a veto. An editorial. – (HBL Apr 1, 2015 p 8)

"RBI may keep interest rate steady till 2016: Nomura" – With rural wages growth likely stabilising retailinflation around 5.5%, the Reserve Bank of India may keep interest rate steady till 2016-end, according toresearch firm Nomura. A report. – (FE Mar 27, 2015 p 8)

"RBI wants more say in setting up of Monetary Policy Committee: Concern that FinMin, centralbank standoff will delay panel formation" – The Finance Ministry is unlikely to accept the Reserve Bankof India stance that it should have complete say in the constitution of the Monetary Policy Committee (MPC).The RBI has argued that since the primary responsibility of achieving inflation as targeted lies with it, itshould be empowered to constitute the committee. A report. – (HBL Mar 30, 2015 p 13)

"A recurring dilemma: RBI must respond to sluggish growth" – An editorial. – (BS Apr 1, 2015 p 9)

Chakraborty, Samiran – "Pause before easing further" – An article. – (Mint Apr 2, 2015 p 8)

Rajadhyaksha, Niranjan – "RBI's policy predictability" – Our interest rate policy is far from predictablenow. This is ironic as RBI has moved to a new monetary policy framework that seeks to be predictable. Anarticle. – (Mint Apr 1, 2015 p 30)

Raman, R Shankar – "Run-up to the monetary policy: Fuelling growth, a national priority" – Anarticle. – (BS Apr 1, 2015 p 6)

Rao, Radhika – "RBI: rate cuts not a given" – An article. – (Mint Apr 1, 2015 p 8)

Srinivasan, V – "The transmission conundrum" – There are ways to ensure that policy rate cuts trickledown into the loan markets. RBI needs to articulate a stance ensuring liquidity price is synchronised with theeasing phase of the cycle. An article. – (ET Apr 1, 2015 p 14)

NON-PERFORMING ASSETSSundaresan, B – "Coming down on non-performing assets" – The Reserve Bank has modified norms

relating to bad loans, a constant worry for banks/ HT simplifies it. An article. – (HT Apr 1, 2015 p 13)

– 13 –

– LOAN RESTRUCTURING

"RBI directive to reclassify restructured loans as NPAs will hurt small units, says SBT official: FromApril 1, banks have to also set aside 15% of loan value to cover risk" – RBI guidelines seeking toqualify any restructuring of business loan as a non-performing account from next month could spell disasterfor the micro, small and medium enterprises (MSMEs). A report. – (HBL Mar 27, 2015 p 6)

PRIORITY SECTOR LENDINGMehta, Sangita – "Priority sector lending returns to haunt banks" – The RBI Working Group's insistence

that banks fund the priority sector may increase the shortage of such loans in the system and distort markets.The rule hasn't worked before and may not again. An article. – (ET Apr 1, 2015 p 14)

PROVISIONING

– NON-PERFORMING ASSETS

"RBI eases bad loan provisioning norms" – The Reserve Bank of India has relaxed the countercyclicalprovisioning rules against bad loans by allowing banks to set aside up to 50 per cent of floating provisions, upfrom 33 per cent earlier. Countercyclical provisioning refers to the specific amount that banks need to setaside in good times above the mandatory provisioning requirement as prescribed by the RBI. These are usedonly in contingencies or extraordinary times of economic or system-wide downturns. A report. – (HBL Mar31, 2015 pp 1,6)

PUBLIC SECTOR BANKS

– BANK CAPITAL

"FinMin to PSBs: consider selling non-core biz" – Banks told to work on capital raising plans by tappingequity, non-equity routes. A report. – (HBL Apr 1, 2015 p 6)

– SALARY STRUCTURE

"Govt banks eye CTC pay structure: Discuss possibility of doing away with industry-wide wage pact"– If the state-run banks have their way, the just concluded wage settlement for close to one million employeesmay be the last such exercise. Public sector players and the government have held preliminary talks on theissue of moving to a new system under which each bank will work out its own salary structure and simultaneouslymove to the cost-to-company (CTC) system that is the norm across the corporate sector. – (TI Mar 30, 2015p 13)

REGIONAL RURAL BANKS

– PAYMENT SYSTEM

"Regional banks come under RuPay cards" – National Payments Corporation of India (NPCI), the umbrellaorganisation for all retail payments system in the country, has enabled all 56 regional rural banks (RRBs)under its central payment systems network with RuPay cards and access to NACH (National AutomatedClearing House) service. With this engagement, 120 million customers at 19,000 bank branches of all RRBsare now part of the national network of electronic payment systems. – (HBL Mar 28, 2015 p 4)

RBI CIRCULARS"Exim Bank's Line of Credit of USD 2.712 million to the Banco Exterior De Cuba" – (RBI Circular

RBI//2014-2015/518 A.P. (DIR Series) Circular No. 89 dated 27.03.2015)

"Export of Goods and Services - Project Exports" – (RBI Circular RBI/2014-2015/534 A.P. (DIR Series)Circular No. 93 dated 01.04.2015)

"Filing of 'Nil' CTR / NTR" – (RBI Circular RBI/2014-2015/523 DCBR.BPD (PCB/RCB) Cir. No. 22/14.01.062/2014-15 dated 31.03.2015)

– 14 –

"Implementation of Section 51-A of UAPA, 1967 - Updates of the UNSCR 1267(1999) /1989(2011)Committeeˆs Al-Qaida Sanctions List - Primary (Urban) Co-operative Banks (UCBs)/State andCentral Co-operative Banks" – (RBI Circular RBI/2014-2015/524 DCBR.BPD (PCB/RCB) Cir. No.23/14.01.062/2014-15 dated 31.03.2015)

"Implementation of Section 51-A of UAPA, 1967- Updates of the UNSCR 1267(1999) / 1989(2011)Committee's Al Qaida Sanctions List" – (RBI Circular RBI/2014-2015/528 DBR.AML.No.14529/14.06.001/2014-15 dated 31.03.2015)

"Implementation of Section 51-A of UAPA, 1967-UNSCR 1267(1999)/1989(2011) Committee Al QaidaSanctions List and UNSCR 1988 (2011) Taliban Sanctions List- Modification in the Listing Format"– (RBI Circular RBI/2014-2015/519 DNBR (PD).CC.No 024/03.10.042 /2014-15 dated 27.03.2015)

"Inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 - Himachal Pradesh StateCooperative Bank Ltd., Shimla" – (RBI Circular RBI/2014-2015/525 DCBR CO.RCBD.BC.No.21/19.51.025/2014-15 dated 31.03.2015)

"Inclusion in/exclusion from the Second Schedule to the Reserve Bank of India Act, 1934- RegionalRural Banks (RRBs)" – (RBI Circular RBI/2014-2015/531 DBR.RRB.BC.No.82/31.04.002/2014 -15dated 01.04.2015)

"Know Your Customer (KYC) Guidelines - Accounts of Proprietary Concerns" – (RBI Circular RBI/2014-2015/532 DCBR.BPD (PCB/RCB) Cir.No.24/14.01.062/2014-15 dated 01.04.2015)

"Operational guidelines on International Financial Services Centre (IFSC)" – (RBI Circular RBI/2014-2015/530 A.P. (DIR Series) Circular No. 92 dated 31.03.2015)

"Provisioning pertaining to Fraud Accounts" – (RBI Circular RBI/2014-2015/535 DBR.No.BP.BC.83/21.04.048/2014-15 dated 01.04.2015)

"Prudential Guidelines on Capital Adequacy and Liquidity Standards - Amendments" – (RBI CircularRBI/2014-2015/529 DBR.No.BP.BC.80/21.06.201/2014-15 dated 31.03.2015)

"Revised Regulatory Framework for NBFCs" – (RBI Circular DNBR (PD) CC.No.024/ 03.10.001/2014-15RBI/2014-2015/520 dated 27.03.2015)

"Revision of interest rates for Small Savings Schemes" – (RBI Circular RBI/2014-2015/536 IDMD(DGBA).CDD.No.4521/15.02.001/2014-15 dated 01.04.2015)

"Risk Management and Inter-bank Dealings: Revised Guidelines relating to participation of Residentsin the Exchange Traded Currency Derivatives (ETCD) market" – (RBI Circular RBI/2014-2015/526A.P. (DIR Series) Circular No. 90 dated 31.03.2015)

"Risk Management and Inter-bank Dealings: Revised Position Limits for Foreign Portfolio Investors(FPIs) in the Exchange Traded Currency Derivatives (ETCD) market" – (RBI Circular RBI/2014-2015/527 A.P. (DIR Series) Circular No. 91 dated 31.03.2015)

"Scheme for Collection of Dues of (i) Central Board of Direct Taxes (ii) Central Board of Excise andCustoms (iii) Departmentalised Ministries Account - Furnishing of Statement of Residualtransactions - Financial Year 2014-15" – (RBI Circular RBI/2014-2015/521 DGBA.GAD.No.4407/42.01.029/2014-15 dated 27.03.2015)

"Setting up of IFSC Banking Units (IBUs)" – (RBI Circular RBI/2014-2015/533 DBR.IBD.BC. 14570/23.13.004/2014-15 dated 01.04.2015)

"Utilisation of Floating Provisions/Counter Cyclical Provisioning Buffer" – (RBI Circular RBI/2014-2015/522 DBR.No.BP.BC.79/21.04.048/2014-15 dated 30.03.2015)

– 15 –

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTURAL FINANCE"Alone, with the mounting loan: Farmers across Uttar Pradesh and Punjab lament weather woes and

lack of social security" – Farmers across UP and Punjab, among the 13 States affected, were doubtfulwhether the Centre or State governments would help repay their debts. 'Paying back loans is problematicduring such times. This is the biggest reason why suicides begin or people turn to crime,' said ShobharamThakur (62), who lost nearly half of the standing wheat in four bighas at his eight-bigha farm in eastern UP'sBasti district. State BJP chief Laxmikant Bajpai claimed last week that nearly 25 farmers had killed themselvesafter adverse weather damaged their produce. A report. – (HBL Mar 28, 2015 p 2)

"Tiny farmers don't get government credit" – Government credit for agriculture sector is not reaching thetiny and small farmers, and, as a result of which, they are caught in a debt trap, claimed an Assocham study.Describing the plight of small farmers as 'alarming', it stated that over two/thirds of farm land holders had lessthan one hectare and the agricultural credit that the government had provided for hardly went to them. Forsmall landholders, the source of farm credit was still the traditional moneylenders despite the active presenceof banks and co-operative credit institutions. Their debts carried high interest rates, and in many cases asmuch as 25 per cent or more. Andhra (including Telengana) farmers have had the highest rate of suicideswithin the country for quite some decades. A report. – (H Mar 28, 2015 p 15)

AGRICULTURE"Agrarian distress: NDA seeks framework to revive agriculture: a national task force on agriculture

will recommend ways to reinvigorate agriculture, strategies for reforms" – The National DemocraticAlliance (NDA) government has formed a task force to suggest ways to boost agriculture, demonstrating itscommitment to farmers in a year when rural incomes have been hit by freak weather and a slump in theprices of key crops. The task force, under the aegis of NITI Aayog, the successor to the Planning Commission,will recommend ways to reinvigorate agriculture, strategies for reforms and identify successful experimentsfrom which all states can learn. A report. – (Mint Mar 27, 2015 p 3)

Lele, Uma – "India's unfinished agricultural and rural revolution" – The ministry of agriculture or thenew planning unit must focus on the reform of the entire gamut of public policies towards agriculture. Anarticle. – (FE Mar 27, 2015 p 7)

CROP INSURANCE"Give genuine crop insurance a chance" – An editorial. – (ET Mar 28, 2015 p 8)

INDUSTRY"Core industries growth falls to 1.4% in February: Fallout of dip in steel output, lower power

generation" – Growth in eight core industries fell to 1.4 per cent in February, against 6.1 per cent in samemonth last year. This was lower than the 1.8 per cent growth seen in January. Sharp contraction in steeloutput and lower growth in electricity generation weighed down on performance in February. A report.– (HBL Apr 1, 2015 p 4)

BOND MARKET"Infrastructure bond issuances may rise in FY16 as rates fall" – Excerpts from an interview with Shashikant

Rathi, senior vice-president and head, investments, ALM and capital markets at Axis Bank. – (FE Mar 31,2015 p 8)

CAPITAL MARKET"SEBI releases discussion paper on alternative capital raising avenues: For firms in the software

product development, e-commerce space" – In a bid to address the funding requirement of upcoming e-commerce and software related companies, the Securities and Exchange Board of India released a discussion

– 16 –

paper on alternative capital raising platform and the review of the related regulatory requirements. The paperdeals with offering the alternative capital-raising avenue initially for software product development, e-commerceand new-age companies having innovative business model, according to SEBI. – (HBL Mar 31, 2015 p 4)

"SEBI to make it easier for start-ups to list: regulator feels that if capital-raising is not relaxedfurther, companies may list abroad" – The Securities and Exchange Board of India is likely to come outwith special concessions as early as June for new age technology start-ups to list in the country. This includeseasing norms on profitability track record, definition of promoter, objective of the issue and lock-in period forpromoters. – (HBL Mar 31, 2015 p 1)

CURRENCY DERIVATIVES"Currency derivatives norms" – The Reserve Bank of India (RBI) said both foreign and domestic investors

can now buy exchange traded currency derivatives of up to $15 million, up from $10 million, without havingany underlying exposure, even as the central bank also allowed importers to hedge 100% of their exposure bybuying such derivatives instruments. Earlier, importers were allowed to hedge up to 50% of their exposure,while exporters were allowed to hedge fully. – (Mint Apr 1, 2015 p 7)

E-VOTING

– SHAREHOLDERS

"Sebi looks into complaints related to e-voting facility" – Sebi is looking into complaints pertaining tolapses by some listed companies in providing e-voting facility to shareholders. In recent times, there havebeen instances where e-voting or electronic voting facility was not made available to shareholders. Sourcessaid that complaints have been received by Sebi in this regard and the regulator is looking into them.– (FE Mar 28, 2015 p 8)

EXTERNAL COMMERCIAL BORROWINGS"Curbs on ECBs could be removed but firms must hedge forex exposure" – The government and the

Reserve Bank of India (RBI) will remove a complicated web of restrictions on external commercial borrowings(ECBs) by Corporate India and use the sole tool of mandatory hedging of currency risks to regulate the firmsaccess to these funds, if the duo accepts the recommendations of a panel that reviewed the relevant policy aspart of a larger mandate. – (FE Mar 31, 2015 pp 1, 2)

HOUSING"Prime Minister wants housing target met" – Prime Minister Narendra Modi does not want one of his pet

projects - 'Housing for All by 2022' - to miss its target. Mr Modi has asked for a fresh survey to ascertain theexact housing shortfall in urban areas. The government has announced construction of two crore housesannually to meet the target, but Mr Modi, who is monitoring the scheme, has instructed the Urban Developmentand the Housing and Urban Poverty Alleviation Ministries to verify if more houses should be built. – (H Mar30, 2015 p 11)

INSURANCE"Digitised policies to be must for coverage with premium of more than Rs.50,000" – Digitised policies

might soon be mandated for insurance policies with a premium of above Rs.50,000. Sector sources aidrevised guidelines are soon to be brought out by the insurance regulator that will make it compulsory to haveinsurance only in an electronic format from June-July. Insurance repositories will be involved in the processof maintaining these policies in a digital format. It is being proposed that all companies would have to offerthese policies to the said customers above the certain premium. – (BS Mar 28, 2015 p 3)

NON-BANKING FINANCE COMPANIES"NBFCs asked to give public notice prior to merger and acquisition deals" – Non-banking financial

companies will need to give 30 days prior public notice before making any acquisition or takeover in addition

– 17 –

to taking the RBI's permission, according to the central bank. A public notice of at least 30 days shall be givenbefore effecting the sale of, or transfer of the ownership by sale of shares, or transfer of control, whetherwith or without sale of shares. Such public notice shall be given by the NBFCs and also by the other party orjointly by the parties concerned, after obtaining the prior permission of the Reserve Bank, according to theRBI draft guideline. – (HBL Mar 31, 2015 p 6)

REALTY SECTORSingh, Sandeep – "After being ignored in the Budget, realty sector to see delayed recovery" – The

government's target of 'housing for all' by 2022 can't be achieved unless the centre and the states take stepsto facilitate development of new projects, say experts. An article. – (IE Mar 28, 2015 p 15)

SMALL SCALE INDUSTRY"Sidbi, German Bank to invest in clean tech" – Small Industries Development Bank of India (Sidbi) and

German development bank Kreditanstalt fur Wiederaufbau (KfW) plan to allocate over Rs.100 crore toclean technology-focused start-ups in 2015-16 as both agencies look to ramp up their support for early-stageventures operating in this sector. The allocations will be structured in the form of debt and mezzanine financerather than pure equity and will focus on micro, small and medium enterprises (MSMEs) involved specificallyin the supply side of clean technology including renewable energy, energy efficiency, buildings, water, wastemanagement and pollution control, among others. – (ET Mar 31, 2015 p 7)

MSMEs"Skill development for MSMEs" – National Small Industries Corporation (NSIC) has signed a pact with the

government for promotion of innovation and entrepreneurship to give a fillip to the MSME sector in thecountry. – (HBL Mar 31, 2015 p 4)

INTERNATIONAL ECONOMICSGilbert, Mark – "Global economy is now a Rorschach Test: The Fed shouldn't be in too much of a

hurry to achieve the so-called policy normalisation" – If the Bank of England's soothsayers see threedifferent monetary-policy prescriptions looking at the same data, policy makers everywhere should be morecareful than usual. An article. – (FE Mar 31, 2015 p 6)

EURO-ZONERoubini, Nouriel – "Signs of life in the euro zone" – Euro zone growth has resumed, but a more robust and

sustained recovery still faces several challenges. An article. – (Mint Apr 2, 2015 p 31)

ASIAN INFRASTRUCTURE INVESTMENT BANK"30 countries to join AIIB as founding members" – China said 30 countries, including India, have been

appointed as prospective founding members of the Asian Infrastructure Investment Bank (AIIB) even as itindicated that arch-rival Taiwan's surprise bid to join the Beijing-based institution may not be approved. – (IEApr 1, 2015 p 14)

LABOUR & PERSONNEL MANAGEMENT

EMPLOYEES PROVIDENT FUNDS SCHEME

– STOCK MARKET

"EPFO to invest 5% of its corpus in stock market: EPFO will invest over Rs.8,000 crore in ETFsthat reflect the Indian economy by the end of 31 March 2016" – Ending years of doubt and scepticism,the labour ministry decided to invest a portion of the Employees' Provident Fund (EPF) corpus in the equitymarket, likely giving the stock market a boost in the new fiscal year beginning Wednesday. The ministry saidit will adhere to the finance ministry suggestion to enter the equity market. A report. – (Mint Apr 1, 2015 p 3)

– 18 –

RECRUITMENTPisupati, Balakrishna – "Selecting the right candidate" – Building a team or an institution requires both

courtesy and common sense. An article. – (HBL Apr 1, 2015 p 2)

MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITYParekh, Anushree and Prakash, Poorvaja – "Why companies prefer CSR in education" – While learning

outcomes continue to disappoint, there appears to be more appropriate and better strategic planning. Anarticle. – (HBL Mar 28, 2015 p 6)

– COMPANIES ACT

"Companies Act, an enabler of CSR" – A commercial feature. – (BS Mar 27, 2015 p 5)

LEADERSHIP"Leaders inspire people to go the extra mile" – Excerpts from an interview with Nigel Eastwood, Group

CEO, New Call Telecom. – (HT Apr 2, 2015 p 14)

– DECISION MAKING

Zenger, Jack and Folkman, Joseph – "9 habits that lead to terrible decisions" – What causes well-meaning people to make poor decisions? Here's a list of most common paths to poor decision-making. Anarticle. – (Mint Apr 1, 2015 p 22)

– WOMEN LEADERS

"India Inc's 25 rising women leaders: Leadership factory FMCG cos account for a third of ETCorporate Dossier-Spencer Stuart list" – Move over, banks. Consumer businesses are the new breedingground for the next generation of women business leaders in India. Over a third of the 25 women in the ETCorporate Dossier - Spencer Stuart listing of India Inc's Rising Women Leaders 2015 work in the consumersector. A report. – (ET Mar 27, 2015 p 1)

WOMEN DIRECTORS"Family women join boards to meet Sebi norms" – In a last-minute rush, wives and daughters have come

to the rescue of the listed companies to ensure compliance with a new norm for having at least one womandirector on their boards that have been so far dominated by fathers and sons. A report. – (FE Apr 1, 2015 p 8)

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NIBM Journals and Publications

PrajnanJournal of Social and Management Sciences

Annual Subscription Rate : One year Rs.300.00 Two years Rs. 550.00 Three years Rs. 825.00

VinimayaPresents Conceptual and Practical Viewpoints of both

Bankers and Management Educationist

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Areas of Publications Agricultural & Rural Development International Finance

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Enquiries may be mailed to :Publications Officer

National Institute of Bank ManagementNIBM Post Office, Kondhwe Khurd, Pune 411 048

Telephone : 0091-20-26716000 (EPABX) Direct: 26716525 Fax : 0091-20-26834478E-mail : john@nibmindia.org

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Edited by Library Team and Published Online by National Institute of Bank Management, NIBM Post Office, Kondhwe Khurd, Pune 411 048 INDIA

(Registered with the Registrar of Newspaper for India under Registration No. G 165.238/1984 of 20-6-84)