Volume XXXII Number 29 April 17, 2017

Weeklies

BI – Business India

BusW – Business World

BusT – Business Today

CMar – Capital Market

EPW – Economic and Political Weekly

SE – Southern Economist

Eco – Economist

For(Asia) – Fortune AsiaCI – Corporate India

Newspapers

BS – Business Standard

ET – Economic Times

FE – Financial Express

FT – Financial Times

H – Hindu

HBL – Hindu Business Line

HT – Hindustan Times

IE – Indian Express

TI – Times of India

Mint – Mint

Classifications

Economy Banking Agriculture & Rural Development Industry Small Scale Industry

International Economics Labour & Personnel Management Management Miscellaneous Books

CONTENTS

A. ECONOMY 1

B. BANKING 2

C. AGRICULTURE & RURAL DEVELOPMENT 13

D. INDUSTRY 14

E. SMALL SCALE INDUSTRY 15

F. INTERNATIONAL ECONOMICS 15

G. LABOUR & PERSONNEL MANAGEMENT 16

H. MANAGEMENT 16

– 1 –

BANKERS' BRIEF Vol. XXXII No. 29April 17, 2017

ECONOMY"Business confidence at all-time high: Index at 64.1 in Jan-March" – India's business sentiment is bullish

and expectations from the economy are at an all-time high, a business outlook survey carried out by theConfederation of Indian Industry has revealed. The CII Business Confidence Index (BCI) for the quarter toMarch has surged to a record high of 64.1as against 56.5 recorded in the previous quarter. A report.– (ET Apr 10, 2017 p 9)

"Economy will rebound next year" – Excerpts from an interview with Ashok Lavasa, Union government'sfinance secretary. – (BusW 36(12) Feb 6, 2017 pp 84-85)

"With note ban blues over, ADB pegs growth at 7.4% this fiscal year: Consumption demand, reformsto boost growth" – Shrugging off the impact of demonetisation, the economy is expected to grow by 7.4 percent in 2017-18 and 7.6 per cent in the next fiscal, according to the latest report by the Asian DevelopmentBank (ADB). A report. – (HBL Apr 7, 2017 p 4)

Acharya, Shankar – "Can India sustain growth at 7-8%?" – To do so, the government will have to tacklea number of broad development challenges successfully. An article. – (BS Apr 13, 2017 p 11)

Desai, Meghnad – "Great economists failed economy" – Despite the frequent assertion of unity, when itcomes to rational economic decisions, the most divisive local interests are given front-stage. Indian economistswill do fantastic work in measuring poverty and income distribution. The task of reducing poverty is somethingelse. An article. – (FE Apr 10, 2017 p 8)

Nandi, Aurodeep – "This glass is half-empty: With investments comatose, NPAs high and exportslow, any recovery is statistical, not economic" – Investments have shrunk from 35% of GDP to below30%, NPAs remain at an uncomfortable high of 8%, while exports have fallen from 25% to 21%. An article.– (ET Apr 12, 2017 p 12)

BLACK MONEY"The government's drive against black money" – The ruling National Democratic Alliance government

has pursued an aggressive drive against black money since it came to power in May 2014. Besides demonetisinghigh-value banknotes as part of the effort, the government has taken a number of steps to curb black money,including stepping up search-and-survey operations to unearth concealed wealth, cracking down on shellcompanies and implementing the benami law, which provides for confiscation of assets held in the name ofanother person or under a fictitious name to avoid taxation. A report. – (Mint Apr 8, 2017 p 24)

EMPLOYMENTMuthukumar K and Seetharaman R – "In search of a job" – Prime Minister Narendra Modi promised one

crore jobs during the 2014 elections. At the present rate of job creation, this will take 30 years. Authors reporton the employment crisis. An article. – (HBL Apr 11, 2017 p 2)

FOREIGN EXCHANGE RESERVES"Forex reserves up $2 bn to $369.95 bn" – India's forex reserves went up by $2.02 billion to $369.95 billion

in the week to March 31 on a huge jump in currency assets, according to the Reserve Bank. The forex kittyhad increased by $1.15 billion to $367.93 billion in the previous week. – (IE Apr 8, 2017 p 11)

– 2 –

FRBM PANEL

– FISCAL MANAGEMENT

"N K Singh committee recommends 2.5% fiscal deficit target by FY2023" – The N K Singh panel toreview India's fiscal discipline rules has recommended a debt-to-GDP ratio of 38.7% for the central government,20% for the state governments together and a fiscal deficit of 2.5% of GDP (gross domestic product), bothby financial year 2022-23. A report. – (Mint Apr 13, 2017 p 1)

"We proposed a paradigm shift in fiscal management" – Edited excerpts from an interview with NandaKishore Singh, Chairman, Fiscal Responsibility and Budget Management (FRBM) Committee. – (Mint Apr13, 2017 p 19)

GST"Parliament passes Bills to pave way for GST: States have to pass legislation to meet roll-out deadline"

– Parliament passed four legislations to pave the way for roll out of the historic Goods and Services Tax(GST) from the target date of July 1.A report. – (BS Apr 7, 2017 p 1)

INEQUALITY"Income disparity in India worse than BRICS peers: IMF" – The regional disparity in India in terms of

per capita income is the worst among the BRICS grouping, according to a report by the International MonetaryFund (IMF). Real per capita incomes in India are 10 times higher in the richest than in the poorest province,followed by seven times in Russia, roughly four times in Brazil and China and two-and-a-half times in SouthAfrica. This suggests the world fastest-growing major economy has witnessed uneven growth across states,leading to the disparity in the income levels. A report. – (FE Apr 11, 2017 p 3)

INFLATION"Retail inflation at 5-month high" – Retail inflation rose to a five-month high of 3.81% in March on costlier

protein items, edible oils and non-food products like fuel and light. Inflation based on Consumer Price Index(CPI) was at 3.65% in February. Protein rich items such as milk & products and eggs were costlier duringthe month with inflation prints of 4.69% and 3.21%, respectively. – (FE Apr 13, 2017 p 2)

NITI AAYOG"Problem is under-employment not unemployment: Panagariya" – Excerpts from an interview with

Arvind Panagariya, Vice Chairman, NITI Aayog. Often we say we are having jobless growth but there areno definitive data or estimates to backup such assertions. – (HBL Apr 11, 2017 p 2)

SERVICES SECTOR"Services growth at 5-month high: PMI" – The services sector expanded for a second consecutive month

in March, indicating that the predominant sector of the economy has recovered from the demonetisationsetback, according to a private survey. The widely tracked Nikkei Services Purchasing Managers' Index(PMI) for services rose to a five-month high of 51.5 points in March, compared to 50.3 in the previous month.A reading above 50 signifies expansion, while one below that shows contraction. – (BS Apr 7, 2017 p 4)

BANKING

GENERALGoyal, Ashima – "Indian banking: Perception and reality" – This paper overviews the issues of non-

performing assets held by banks; slowdown in credit growth; corporate debt; absence of modern risk-basedapproaches to management and regulation; the poor record of banks in transmitting monetary policy impulses;and their contributions to financial inclusion. It attempts to show that reality is more nuanced than the standardperspective that blames public ownership or a failure to modernise for the stresses public sector banks face.An article. – (EPW 52(12) Mar 25, 2017 pp 77-84)

– 3 –

AXIS BANK"Following peers: Axis Bank cuts base rate by 10 bps: Despite recent cuts, the lowest base rate -

HDFC Bank 9% - is equivalent to the highest MCLR" – Axis Bank trimmed its base rate by 10 basispoints (bps) to 9.15%. The cut follows those by State Bank of India (SBI), which dropped its base rate by 15bps to 9.1%, and HDFC Bank that lowered the benchmark rate by 25 bps to 9%. Despite the recent seriesof cuts, the lowest base rate in the system - HDFC Bank 9% - is equivalent to highest one-year marginal costof funds-based lending rate (MCLR). – (FE Apr 11, 2017 p 10)

Alvares, Clifford – "India's most valuable CEOs: Shikha Sharma, CEO, Axis Bank: Doing what ittakes" – Against rising NPAs and all other odds, the bank's market value has risen substantially since 2014.It stands at nearly Rs.1.26 lakh crore today. An article. – (BusW 36(13) Mar 8, 2017 pp 66-67)

BANK OF INDIA"BoI cuts base rate by 10 bps" – Bank of India has cut its base rate by 10 basis points to 9.55 per cent,

effective March 31. – (HBL Apr 12, 2017 p 10)

BHARATIYA MAHILA BANK"BMB proved 'costly' to run" – Bharatiya Mahila Bank that served only women customers turned out to be

a 'costly' affair in view of its limited outreach, but now its merger with SBI will help it reach out to a widerclientele at the same cost. – (HBL Apr 12, 2017 p 10)

DCB BANK"DCB bank looks to raise Rs.400 crore via QIP" – DCB Bank Ltd is looking to raise as much as Rs.400

crore through a qualified institutional placement (QIP) in the later half of the current quarter, according totwo people aware of the development. – (Mint Apr 7, 2017 p 3)

FEDERAL BANK"Federal Bank crosses $200-m biz at IFSC" – Federal Bank has crossed $200 million in total business at its

IFSC Banking Unit in Gift City, Gujarat, according to the bank. – (FE Apr 12, 2017 p 10)

HDFC BANK"Banks are using advanced analytics, chat bots and even robotics to enhance customer experience"

– Edited excerpts from an interview with Arvind Kapil, Country head-unsecured loans, home & mortgageloans, HDFC Bank Ltd. – (Mint Apr 7, 2017 p 14)

"HDFC Bank to raise Rs.50,000 cr in 12 months" – HDFC Bank said it will raise Rs.50,000 crore withina year by issuing debt instruments. – (FE Apr 11, 2017 p 10)

"HDFC Bank UPI on Chillr app" – HDFC Bank said its Unified Payments Interface (UPI) will also beavailable on Chillr, a multi-bank mobile payments app. Currently, UPI is available on HDFC Bank's ownmobile banking app. – (HBL Apr 8, 2017 p 9)

ICICI BANKAlvares, Clifford – "Harbinger of change: K V Kamath" – An article. – (BusW 36(11) Jan 23, 2017 pp 92-94)

IDBI BANK"Can a new CEO end IDBI Bank's woes?: The lender is one of 10 state-owned banks identified as

requiring a turnaround" – The Centre recently chose to swap CEOs of IDBI Bank and Indian Bank. Boththe CEOs have since taken charge of their new assignments. While Indian Bank is one of the better performersamong public sector banks, the financial health of IDBI Bank has weakened in the last two years due to asharp rise in bad loans. The question is: will Mahesh Kumar Jain be able turn around the fortunes of IDBIBank? A report. – (H Apr 12, 2017 p 13)

– 4 –

KARNATAKA BANK"Top-deck rejig: Mahabaleshwara is MD & CEO of Karnataka Bank: Jayarama Bhat appointed non-

exec Chairman" – Karnataka Bank announced top-level management changes with the present ManagingDirector and CEO, P Jayarama Bhat, assuming charge as part-time non-executive Chairman of the bank.The Chief General Manager of the bank, Mahabaleshwara M S, has been appointed MD & CEO and willassume office on April 15. A report. – (HBL Apr 13, 2017 p 6)

KOTAK MAHINDRA BANK

– HDFC BANK

Layak, Suman – "Face off Different strokes for different folks" – Uday Kotak is gung-ho on free mobilebanking and Aditya Puri is counting on customer charges. Are Kotak Mahindra Bank and HDFC Bankfollowing divergent strategies or are they similar at their core? Different strokes for different folks...: KotakBank: * Started in 2003, converting an NBFC to a bank; * Led by an entrepreneur, Uday Kotak, with abackground in financing; * Disruptor, offers high savings account interest rate; * Mobile banking is a newoffering that could change its dynamics; * Focused on being profitable with every customer. HDFC Bank: *Started in 1994, as a Greenfield operation started by HDFC; * Led by a professional banker, Aditya Puri, ex-Citibank; * Growth focused on deposits, current and savings accounts; * Leader in salary accounts, brokerfinancing; * Focused on growth, profitability follows. The good news for both Kotak and Puri is that there ishuge growth awaiting banks, especially those from the private sector that are not burdened with nonperformingassets. An article. – (ET Apr 9, 2017 pp 8-10)

PUNJAB NATIONAL BANK"PNB moves CBI against Kudos Chemie" – Punjab National Bank (PNB) has filed a complaint with the

Central Bureau of Investigation against Chandigarh-based Kudos Chemie which has defaulted to a loan ofRs.1,300 crore. – (BS Apr 11, 2017 p 3)

SOUTH INDIAN BANK"South Indian Bank, Flyworld Money in pact for remittances" – South Indian Bank has entered into an

agreement with Flyworld Money Exchange for facilitating remittances of Indian expatriates in Australia.– (HBL Apr 8, 2017 p 9)

STATE BANK OF INDIA"Flip side: Arundhati Bhattacharya, Chairman, State Bank of India" – (ET Apr 12, 2017 p 14)

"SBI looking into Odisha ATM case, Suspects malware attack: Report by month end on cash spewingdispensers" – State Bank of India has ordered a forensic audit into an automated teller machine in Odishathat spewed out cash without any card being swiped. It's one of about 10 cash dispensers around the countrybelonging to various banks that have behaved in this manner. The suspicion is that these are localised hackson machines running outdated software but don't involve any wider network infections. A report. – (ET Apr8, 2017 p 7)

"State Bank looking to scale up merchant acquiring business: Seeking to almost double PoS terminalsto 10 lakh in 2-3 years" – State Bank of India is planning to form a joint venture company to ramp up itsmerchant acquiring business. This comes in the backdrop of the bank setting an ambitious target of scaling upits point-of-sale (PoS) terminal network from over 5.50 lakh now to 10 lakh in the next two-three years.– (HBL Apr 11, 2017 p 10)

Merwin, Radhika – "SBI: Big leap forward: The big bang merger may entail short-term pain butshould aid long-term gains" – On April 1, India's largest bank - SBI - got bigger and widened its lead overits peers. Given the bank's size and reach, post-merger, it is perhaps the best play on the recovery in theeconomy. Did you know?: The roots of SBI go back to the first decade of the 19th century when the first'Presidency bank', the Bank of Calcutta, was established in 180. Why: * Size helps compete better with largepeers; * Long-term synergies to drive earnings; * Value unlocking in subsidiaries. An article. – (HBL Apr 10,2017 p 4)

– 5 –

– NON-PERFORMING ASSETS

"State Bank's bad loans soar; post-merger provisioning set to rise" – State Bank of India's bad loanshave ballooned approximately 50 per cent in the span of a year and those of its five associate banks by 170per cent. The bank will likely have to increase its provisioning for bad loans - setting aside money to partlycover the non-performing assets (NPAs) following its merger with five subsidiaries. A report. – (HBL Apr 8,2017 p 9)

STATE BANK OF INDIA ASSOCIATES"IFSC of SBI associates may change from Q2: For corporate customers, all Net banking services to

continue unchanged post-merger" – The Indian Financial System Code, or IFSC, of all associate banksthat merged with State Bank of India (SBI) are likely to change from the second quarter of 2017-18. – (HBLApr 11, 2017 p 10)

– CUSTOMER SERVICE

"Net banking user of associate bank need not register afresh with Online SBI" – A customer and netbanking user of an associate bank need not register afresh for availing the net banking services of State Bankof India (SBI) with which it has merged. The customer can log in with the same username and login passwordinto Online SBI. The website address of the associate bank after merger will be https://www.onlinesbi.com.Customers of associate banks can use their ATM/debit cards as usual at all SBI Group ATMs. Applicablecharges will be the same as in the case of SBI ATM/debit card charges. – (HBL Apr 8, 2017 p 9)

SYNDICATE BANK"Syndicate Bank cuts base rate" – Syndicate Bank has reduced its base rate by 10 bps from 9.60 per cent

to 9.50 per cent effective from April 10. However, the bank made no changes in the marginal cost-basedlending rate (MCLR) and BPLR. The benchmark one-year lending MCLR stands at 8.75 per cent andBPLR at 13.85 per cent. – (HBL Apr 8, 2017 p 9)

VIJAYA BANK"Vijaya Bank signs MoU for empowering their specially abled employees" – Vijaya Bank a premier

nationalised bank has signed a MoU on March 20, 2017 with EnAble India Solutions Pvt. Ltd., for enhancingthe competency of the specially abled employees of the bank. – (HBL Apr 7, 2017 p 4)

YES BANKAlvares, Clifford – "India's most valuable CEOs: Rana Kapoor, Founder & CEO, YES Bank Ltd.:

The man with a mission" – Steadily steering the bank, Rana Kapoor is now eyeing top-quartile statusamong the country's banks. An article. – (BusW 36(13) Mar 8, 2017 pp 80-81)

CHINAChandrasekhar, C P and Ghosh, Jayati – "Significance of the State in Chinese banking" – After four

decades of financial reform, China's banking sector is still dominated by publicly owned institutions. But it's astory of change amidst continuity. An article. – (HBL Apr 11, 2017 p 9)

USASingh, Anoop – "Risk and regulation in the US financial system" – How the US adjusts its regulatory

regime will have global implications for Basel III standards and international financial cooperation. An article.– (Mint Apr 11, 2017 p 15)

– 6 –

ASSET RECONSTRUCTION COMPANIES"With rules tightened, further consolidation seen in ARC space: Larger ARCs, especially those

backed by strong promoter groups, will be on firmer footing, says Crisil" – The market share of topfive asset reconstruction companies (ARCs) will consolidate further and smaller ARCs may merge withlarger rivals, or they could become takeover targets for large private equity investors following tightening ofregulations, said credit rating agency Crisil. The top five players account for around 90 per cent of totalassets under management. A report. – (HBL Apr 13, 2017 p 6)

– SALE OF NPAs

"Enhanced amount needed to buy bad loans: ARC funds cap hiked to drive cash sales of NPAs" –The Reserve Bank of India (RBI) has hiked the minimum net owned funds for asset reconstruction companies(ARCs) to Rs.100 crore from Rs.2 crore in yet another move to push more cash-based sales of non-performingassets (NPAs). A report. – (ET Apr 7, 2017 p 9)

ATMsSeetharaman, G – "50 years of ATMs" – The ubiquitous automated teller machine (ATM) is turning 50 this

year. It was on June 27, 1967, that the first ATM was opened to the public at a Barclays branch in a suburbof London. ET Magazine takes you through the history of a utilitarian and time-saving invention and ATMstatistics around the world at a time when digital transactions seem to be growing rapidly. An article.– (ET Apr 9, 2017 pp 14-15)

BAD BANK

– NON-PERFORMING ASSETS

Mukherjee, Deep – "No real roadblock in proposed 'Bad Bank' frameworks" – Any scheme relating toimplementation of a 'bad bank' need to minimise the impact on government finances. An article. – (ET Apr12, 2017 p 14)

BANK CAPITAL

– PUBLIC SECTOR BANKS

"Protection of perks paves way for bank turnaround" – The government has agreed not to reduce anyemployee benefits as part of a bank turnaround plan, without consulting with staff associations. This assuranceby the government has paved the way for employee associations signing a contract, where they have agreedto work with banks and government on a recapitalisation plan. The Centre had insisted on employees signingthis memorandum of understanding (MoU) with the government and bank management as a precondition forinfusing capital into weak banks. – (TI Apr 13, 2017 p 15)

BANK CONSOLIDATION

– SBI / ASSOCIATES

Datta, Devangshu – "SBI merger: A test case" – Without a hands-offs approach, PSU mergers won'twork. An article. – (BS Apr 10, 2017 p 8)

BANKING REFORMS - INDRADHANUSH

– PUBLIC SECTOR BANKS

"Capital infusion not the last step in supporting public sector banks: Jaitley: PSBs have importantrole in aiding social programmes, infrastructure, says Finance Minister" – Mission Indradhanush toinfuse capital in public sector banks is not the last step as far as their recapitalisation is concerned, FinanceMinister Arun Jaitley said asserting that the government was fully supporting them. A report. – (HBL Apr 12,2017 p 10)

– 7 –

BANKING REGULATOR

– RESERVE BANK OF INDIA

"Restoring credibility" – New team at RBI comes up with sound, consistent guidance. An editorial. – (BSApr 13, 2017 p 11)

Alvares, Clifford – "No second guessing here" – The Central Banker's tough stance on inflation lays to restthe questions on its autonomy. An article. – (BusW 36(12) Feb 6, 2017 pp 44-46)

BRANCHES"RBI plans to move away from brick and mortar units: Branches to make way for cost-effective

banking" – The Reserve Bank of India is planning to move away from brick and mortar based branches andenable cost effective banking to drive financial inclusion in rural areas, specially keeping in mind small financeand payment banks to expand their branch networks easily. – (ET Apr 7, 2017 p 15)

CENTRAL BANKS

– MONETARY POLICY

"Central bank must prepare for policy normalisation: BIS" – Major central banks should prepare tonormalise monetary policy as deflation risks have mostly disappeared from their economies and growth ispicking up, the head of the Bank for International Settlements. A report. – (HBL Apr 12, 2017 p 10)

COOPERATIVE BANKSGaurav, Sarthak and Krishnan, Jisha – "How efficient are India cooperative banks?" – In spite of their

distinct organisational structure and banking philosophy based on mutuality, there is scant evidence on efficiencyof cooperative banks. The efficiency of district central cooperative banks in India is investigated by constructinga panel of 297 cooperative banks over the period 2002-14. Using parametric and non-parametric frontieranalysis, it is found that efficiency estimates vary depending upon whether advances or investments ofDCCBs are used as output. The efficiency of cooperative banking is mapped, and shows considerablevariation in efficiency of DCCBs across states. The findings suggest the need for innovative strategies toimprove cooperative banking efficiency in the country. An article. – (EPW 52(12) Mar 25, 2017 pp 115-124)

– SARASWAT COOPERATIVE BANK

"Saraswat Bank gets new chief" – Saraswat Bank has appointed Smita Sandhane as its Managing Director.Sandhane was serving as the chief financial officer, and takes over from S K Banerji who retired recently.– (IE Apr 9, 2017 p 15)

CURRENCY NOTES

– DEMONETISATION

"Every 5-7 years we must bring in new notes" – Edited excerpts from an interview with R Gandhi, formerDeputy Governor, Reserve Bank of India. Technology is a double-edged weapon, it is available not only tobankers but also to counterfeiters. – (H Apr 10, 2017 p 13)

"Post note-ban, SBI branch opened 2,000 accounts: New, reactivated accounts in UP used to channelblack money, says CBI probe" – Over 2,000 fresh accounts were opened in a Bareilly branch of StateBank of India post-demonetisation till December 31 to allegedly channelise black money in which at leastRs.8 crore were deposited in old notes, a CBI probe has found. A report. – (HBL Apr 10, 2017 p 18)

Rajaraman, Indira – "Working out the true impact of demonetization" – To get an effective handle ongrowth, it is best not to go by the reported headline number, but to go back to estimating real growth from thegross value added, as we have traditionally done. An article. – (Mint Apr 7, 2017 p 17)

– 8 –

CYBER SECURITY"Cyber theft attempt on Indian bank resembles Bangladesh heist: Similarities between hacks

underscore concerns about rash of recent cyberattacks on financial institutions world-wide" –Cyber thieves who attempted to steal $170 million from an Indian bank last July used methods that stronglyresemble those of an earlier, successful $81 million heist targeting Bangladesh's central bank, according topeople familiar with the matter. The similarities between the Indian and Bangladeshi hacks underscore concernsabout a rash of cyberattacks in recent months on financial institutions around the world, including banks in theU.S., Mexico, Poland and the U.K. Some of these hacks have been linked to groups affiliated with NorthKorea, cybersecurity specialists said earlier this year. – (BS Apr 11, 2017 pp 1, 14)

DIGITAL CURRENCY"FinMin panel to examine virtual currencies" – Finance Ministry today constituted an inter-disciplinary

committee to examine the existing framework for virtual currencies, including bitcoins, and suggest measuresto deal with issues like money laundering. The committee, to be chaired by Special Secretary (EconomicAffairs), will submit its report within three months, according to a finance ministry statement. – (IE Apr 13,2017 p 14)

DIGITAL ECOSYSTEMBhoi, Barendra Kumar – "Greater policy push required to go cashless" – The challenges are cyber

security, cost to users, logistics, and creating awareness to build a strong digital ecosystem. An article.– (HBL Apr 8, 2017 p 8)

ELECTRONIC FUND TRANSFER

– NEFT

"NEFT fund transfer to get a lot faster: Half hourly settlements allowed instead of hourly ones" – TheReserve Bank of India has enabled faster settlement of the process of NEFT (National Electronic FundTransfer) by increasing the settlement half hourly settlements instead of the hourly settlement system practisednow. – (ET Apr 7, 2017 p 15)

EXECUTIVE APPOINTMENTS

– PUBLIC SECTOR BANKS

Bandyopadhyay, Tamal – "How public sector bank CEOs are selected" – An article. – (Mint Apr 10,2017 p 6)

FINANCIAL TECHNOLOGY

– FINANCIAL INCLUSION

Ranade, Ajit – "Role of 'Fintech' in financial inclusion and new business models" – The convergence offinance and technology to provide financial services by non-financial institutions, popularly known as 'fintech,'has come to dominate the financial landscape. Taking stock of this development, its impact and implicationsfor new products, processes and services, including for financial inclusion are examined. The Jan Dhan-Aadhaar-mobile phones trinity provides fertile ground for fintech to permeate to the 'last mile.' Notwithstandingits manifold benefits, there is a need to exercise caution in areas such as privacy and ownership of data. In afast-paced world of rapidly evolving technology and related financial services, regulators have new paradigmsto grapple with and therefore, need to be proactive so as to not stifle the growth of this nascent sector. Anarticle. – (EPW 52(12) Mar 25, 2017 pp 125-128)

– 9 –

FOREIGN BANKS

– CITI BANK

"Citi is world's No.1 'transaction' bank: This business is more resilient than investment banking,says analytics firm Coalition" – Citi was the top bank last year in transaction banking, a segment comprisingtrade finance and cash management services, rankings compiled by industry analytics firm Coalition showed.– (HBL Apr 12, 2017 p 10)

INTEREST RATES

– DEPOSITS

"Banks line up offers to lure depositors: NEW PAYMENT BANKS, small-finance banks now offeringsavings interest rates as high as 7.25%" – The Indian consumer is the current king of banking - anindustry least likely to favour individuals when borrowing isn't cheap and savings rates trail headline inflation.But competition has made new banks generous with deposit rates, although the longevity of these offeringsis in doubt. New payment banks (PBs) and small-finance banks (SFBs) are offering savings interest rates ashigh as 7.25%, more than 300 basis points higher than what universal banks usually offer - 4%. While suchfreebies may help acquire customers, will the trend last? Industry experts liken the initial offers to appetizers,saying rates will fall as the market evolves. A report. – (ET Apr 11, 2017 p 9)

INVESTMENTS"RBI permits banks to invest in InvITs and REITs" – The Reserve Bank today allowed banks to invest

in Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InvITs), a move that will helprevive the cash-starved infrastructure sector. – (FE Apr 10, 2017 p 13)

MONETARY POLICIESChandrasekhar, C P – "Negative interest rates: Symptom of crisis or instrument for recovery" – A

near-unprecedented turn to negative interest rates to trigger a recovery has characterised the monetarypolicy in several developed countries and in Europe. This is the result of a shift away from fiscal policy to analmost exclusive reliance on monetary policy, involving quantitative easing and low interest rates, inmacroeconomic interventions across the globe. The failure of this macroeconomic stance has led to thephenomenon of negative rates in countries other than the United States, and the first sign of even a partialrecovery in that country has been enough to set off a reversal. An article. – (EPW 52(12) Mar 25, 2017pp 53-60)

MONETARY POLICY"Madras School of Economics team wins RBI policy challenge" – A team from the Madras School of

Economics has won the national level round of the RBI Policy Challenge'17 organised by the Reserve Bankof India. The RBI conducts the competition nationally to spread knowledge about the framework of themonetary policy and other related monetary and banking issues among students. It was started in 2016 byRaghuram Rajan when he was RBI Governor. A report. – (HBL Apr 12, 2017 p 5)

"Policy in 2 minutes" – A report. – (BS Apr 7, 2017 p 16)

"Rate-cut cycle over, what happens to growth?" – The economy remains weak, so it is not clear how arecovery will take place with interest rates quite high. An editorial. – (FE Apr 10, 2017 p 8)

"RBI keeps repo rate on hold, shifts focus to excess liquidity: Raises reverse repo rate by 25 bps;Patel says taxpayers end up paying for loan waivers" – The Reserve Bank of India (RBI) decided tokeep its policy rate on hold in its first bi-monthly monetary policy review for 2017-18, citing the challenginginflation outlook. The apex bank, however, proposed a mechanism to resolve the weakest bank balancesheets under a revised 'prompt corrective action' framework. The central bank also allowed banks to investin Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in a bid to spurinvestments in core infrastructure sectors. A report. – (HBL Apr 7, 2017 p 1)

– 10 –

"RBI monetary policy" – Experts views. – (FE Apr 7, 2017 p 10)

"Too cautious" – It is hard to fathom why the RBI has continued with its neutral stance, despite growthconcerns. An editorial. – (HBL Apr 7, 2017 p 8)

Bandyopadhyay, Tamal – "Why this is Urjit Patel's smartest policy" – An article. – (Mint Apr 7, 2017 p 8)

Bhattacharya, Himadri – "No major ripples in the RBI pond" – While the policy rate remains unchanged, UrjitPatel makes a splash of sorts with his comment on farm loan waivers. An article. – (HBL Apr 7, 2017 p 8)

Ghosh, Soumya Kanti – "RBI delivers no surprise" – Narrowing of LAF corridor indicates RBI may notallow interest rates' term structure to decline against the backdrop of abundant liquidity. An article. – (FE Apr7, 2017 p 8)

Jethmalani, Harsha – "RBI policy: optimistic on growth, pessimistic on inflation" – An article.– (Mint Apr 7, 2017 p 4)

Nayar, Aditi – "Repo rate likely to be kept on hold during 2017" – An article. – (Mint Apr 7, 2017 p 8)

Rao, Subhada – "Monetary policy: Walking the talk towards neutral stance" – RBI, in my opinion, hasresorted to extracting the best out of the available toolkit by reducing the policy rate corridor. This will lowerthe extent of undue volatility in a structural manner. This will be followed by long term variable rate reverserepo auctions. An article. – (FE Apr 7, 2017 p 10)

Sanyal, Siddhartha – "RBI prefers to stay cautious" – An article. – (BS Apr 7, 2017 p 16)

Sen Gupta, Indranil – "Why output gap may not close soon" – All related macro variables are well belowmedium-term averages; lending-rate cuts will likely take 6-9 months to push up demand. An article.– (FE Apr 12, 2017 p 8)

Vasudevan, A – "Reflections on analytical issues in monetary policy: The Indian economic realities"– Analytical issues have arisen in the conduct of flexible inflation targeting as the framework of monetarypolicy, adopted formally by India in 2016, despite the noticeable downward drift in the inflation rate andconcerns of many economists about its relevance in the light of the global financial crisis. Issues such as theframework's rationale, the medium-term inflation target, the meaning of real interest rate in the Indian context,the realism in respect of inflation expectations and of the inferred logic of the yield curve, and the implicationsfor economic inequalities have been pointed out. An article. – (EPW 52(12) Mar 25, 2017 pp 45-52)

Venkatesh, Latha – "Policy perfect: A tough road lies ahead" – An article. – (Mint Apr 7, 2017 p 18)

MONETARY POLICY COMMITTEE"RBI defends monetary policy committee's unanimous voting record" – The Reserve Bank of India

(RBI) has defended its monetary policy committee's (MPC) unanimous voting record by arguing that thiswas the norm across many countries. Monetary policy review was the fourth under the new frameworkwhere rate decisions are decided by a committee; it was also the fourth straight instance of unanimousvoting. – (Mint Apr 8, 2017 p 23)

MONETARY POLICY TRANSMISSION"Monetary policy report April 2017: Rate cut transmission bypasses old loans: RBI: 69 bps fall in

MCLR-based new loans; Base Rate linked old loans see 13 bps decline" – The decline in interestrates on old loans has failed to match the transmission in rate reduction in fresh loans after demonetisation,according to a Reserve Bank report. This means as much as 67 per cent of the existing credit portfolio hasnot benefitted much from the interest rate decline witnessed after demonetisation. During November 2016 -February 2017, the weighted average lending rate (WALR) of banks in respect of fresh rupee loans declinedby 69 bps, whereas the WALR on outstanding rupee loans declined by 13 bps only over the same period, theRBI said in 'Monetary Policy Report April 2017'. A report. – (IE Apr 9, 2017 p 15)

– 11 –

NON-PERFORMING ASSETS"For banks, asset quality pressure likely to continue this fiscal: ICRA" – Asset quality woes of the

banking sector are likely to continue this fiscal (FY18) even as fresh non-performing asset (NPA) generationrate continues to show signs of moderation, said credit rating agency ICRA in a report. The agency seesadvances under strategic debt restructuring (SDR) to remain a risk to the asset quality in FY18. A report.– (HBL Apr 13, 2017 p 6)

"LBO guru feels time is ripe for Indian bad bank: For KKR's Henry Kravis, India's bankruptcy codeis darn good'" – Henry Kravis, one of the stars of the 1980s leveraged buyout boom, said the Indianbanking system's bad-loan problem needs to be sorted out quickly and he knows how it can be done. 'I'm abig believer of a good bank and a bad bank,' according to the co-chairman of investment firm KohlbergKravis Roberts. 'The problem of bad loans will never get smaller, so the more you delay, the hole will just getdeeper. It's already late and you can't wait any longer.' A report. – (ET Apr 13, 2017 p 1)

"NPA policy: Govt to help banks to speed up decisions: Lenders' consortia can take a call based onsimple majority" – The Narendra Modi government's new policy to deal with non-performing assets (NPAs)is likely to be centred around consortia of banks. It is planning a framework which will enable a consortiumto deal more effectively with NPAs. For this, the new policy would possibly tweak the current guidelines andreduce the threshold in terms of exposure as well as the number of banks within a joint lending forum (JLF)for taking a decision on NPAs. To empower bankers in state-owned banks, the Centre may finally bring inthe long-anticipated amendments to Prevention of Corruption Act in the Monsoon Session of Parliament. Areport. – (BS Apr 12, 2017 pp 1, 16)

"Yet another panel to tackle bad loan menace" – The government is learnt to have set up a panel underCabinet secretary P K Sinha to review the resolution plan for the vexed bad loan crisis, including the feasibilityof a one-time settlement of stressed accounts. The panel is expected to suggest rules for taking haircuts insome stressed accounts apart from exploring the possibility of more loan recasts in stressed sectors like steeland textiles, according to a senior government official. A report. – (FE Apr 12, 2017 pp 1, 2)

Sabnavis, Madan – "Growth and asset failure" – Tackling some nagging issues beyond the mundane. Anarticle. – (FE Apr 13, 2017 p 9)

Sengupta, Rajeswari and Vardhan, Harsh – "Non-performing assets in Indian banks: This time it isdifferent" – Growing non-performing assets is a recurrent problem in the Indian banking sector. Over thepast two decades, there have been two such episodes when the banking sector was severely impaired bybalance sheet problems. A comparative analysis of two banking crisis episodes - one in the late 1990s, andanother that started in the aftermath of the 2008 Global Financial Crisis and is yet to be resolved - is presented.Taking note of the macroeconomic and banking environment preceding these episodes, and the degree andnature of crises, policy responses undertaken are discussed. Policy lessons are explored with suggestions formeasures to adapt to a future balance sheet-related crisis in the banking sector such that the impact on thereal economy is minimal. An article. – (EPW 52(12) Mar 25, 2017 pp 85-95)

NPAs VALUATIONVaidyanathan, K – "True valuation of an NPA" – In the case of Deccan Chronicle, for instance, only 37

paisa can be recovered per Rupee of the Loan - mapping theoretical & actual past recovery values isCrucial. Neither a model-nor a data-driven approach may eventually prove perfect. But, as they say, allmodels are wrong but some are useful. The point is to use both approaches. An article. – (FE Apr 11, 2017 p 8)

PAYMENTS BANKS

– AIRTEL

Sinha, Ashish – "In the 'payment banking' way" – How will Airtel's new innings in the payments bankingbusiness help customers? An article. – (BusW 36(11) Jan 23, 2017 pp 146-148)

– 12 –

– FINO PAYTECH

"Fino Paytech plans to launch payments bank within 2 months" – Fino Paytech is seeking help fromICICI Bank to set up its payments bank venture and is aiming to launch the new entity within two months.– (FE Apr 11, 2017 p 11)

PMJDY"Mysterious rise of Jan Dhan a/cs after note ban period" – Taxman suspicious as 1.1 cr accounts opened

between Dec 28 and Jan 25, more than double the monthly average previously. During the demonetisationperiod between November 9-December 31, 2016, deposits in Jan Dhan accounts had surged, evidentlybecause of their misuse for parking black money. But in the subsequent month, while the deposits in these no-frills accounts inevitably shrank, their number saw an inexplicable jump. And the taxman is curious. A report.– (FE Apr 10, 2017 pp 3, 4)

PUBLIC SECTOR BANKS"Finmin may seek relaxation of public float deadline for PSBs" – The Finance Ministry may request

capital market regulator Sebi to extend the August deadline for PSBs to meet 25 per cent public float norm asit mulls various options to pare government stake in state-run banks. There are seven public sector banks(PSBs), including United Bank of India, Indian Bank, Bank of Maharashtra and Central Bank of India, wherethe government holding is above 75 per cent. A report. – (FE Apr 10, 2017 p 4)

– ASSET QUALITY REVIEW

Basu, Shubhabrata and Moovendhan V – "Were public sector banks victimised through AQR?: Astrategic orientation perspective" – An inadvertent consequence of asset quality review by the ReserveBank of India is that it portrayed public sector banks as inefficient managers of the burgeoning non-performingasset crisis relative to their private sector peers. A study, which used panel data regression to investigate theNPAs of 46 scheduled commercial banks between 2007 and 2016, has explored the myth by adopting astrategic orientation perspective to look into the antecedent periods of high uncertainties and jolts, leading tothe build-up of NPAs, the changes in banks strategic orientations, and their effects on provisioning and NPAreduction. But no evidence was found to support the myth and to suggest that banks, across ownership, areincrementally exposing their NPAs ex post, subject to provisioning ex ante and that a moderate approachduring periods of high uncertainty is most effective in managing NPAs. The study questions the receivedwisdom regarding the nature of risk-free sovereign debts and their impact on the NPA problem. An article.– (EPW 52(12) Mar 25, 2017 pp 97-105)

– EXECUTIVE COMPENSATION

"Align bank pay to that in CPSEs: BBB" – The Bank Board Bureau (BBB) has recommended that thegovernment bring in reforms in the compensation process in public sector banks on the lines of Central PublicSector Enterprises (CPSEs). BBB has suggested compensation reforms in PSBs so that best practices canbe introduced 'on the lines already prevalent in Central Public Sector Enterprises.' To attract high-qualitytalent for non-executive directors and chairmen, BBB suggested a level-playing field with the private sectorwith respect to role, responsibility and remuneration. – (H Apr 12, 2017 p 13)

– WAGE REVISION

"PSBs told to finalise next wage revision" – The finance ministry has asked the heads of public sectorbanks to finalise the modalities for timely implementation of the next pay revision from November. – (IE Apr10, 2017 p 13)

SPECIALISED BANKS"RBI proposes wholesale, long-term finance banks: Discussion paper fixes Rs.1,000 cr as minimum

capital for these specialised banks" – The Reserve Bank of India (RBI) proposed to float wholesale andlong-term finance (WLTF) banks that would fund long-term high-value projects - something similar to thedevelopment finance institutions (DFIs) of the past. NEW BANKS IN THE MAKING: * Wholesale and

– 13 –

long-term finance (WLTF) banks will fund the infrastructure sector and corporate businesses; * To raisefunds through bonds, current accounts and minimum term loan off Rs.10 crore; * Licence would be on-tapand eligible promoters would be same as commercial banks; * Currently, industrial houses and corporategroups are not allowed to float full commercial banks; * WLTF will be required to maintain CRR, not SLR.A report. – (BS Apr 8, 2017 pp 1, 3)

Bapat, Dhananjay – "Can long-term banks be a long-term solution?" – An article. – (FE Aug 13, 2017 p 9)

Rangarajan, C and Sridhar, S – "We need a bank just for long-term credit" – Constrained by NPAs,banks are unable to extend long-term loans. It now seems that shutting pre-reform DFIs was premature. Anarticle. – (HBL Apr 10, 2017 p 14)

RBI CIRCULARS"Auction of Government of India Dated Securities" – (RBI Circular RBI/2016-2017/272 Ref. No. IDMD/

2635/08.02.032/2016-17 dated 10.04.2017)

"Change in Bank Rate" – (RBI Circular RBI/2016-2017/270 DBR.No.Ret.BC.58/12.01.001/2016-17 dated06.04.2017)

"Exim Bank's Government of India supported Line of Credit of USD 31.29 million to the Governmentof the Republic of Nicaragua" – (RBI Circular RBI/2016-2017/278 A.P. (DIR Series) Circular No. 44dated 13.04.2017)

"Financial Literacy Week" – (RBI Circular RBI/2016-2017/275 FIDD.FLC.BC.No.27/12.01.018/2016-17dated 13.04.2017)

"Grant of 'Certificate of Registration' - For carrying on the business of credit information - TransunionCIBIL Limited" – (RBI Circular RBI/2016-2017/277 DBR.CID.BC. 60/20.16.040/2016-17 dated13.04.2017)

"Interest rates for Small Savings Schemes" – (RBI Circular RBI/2016-2017/267 DGBA.GAD.2618/15.02.005/2016-17 dated 06.04.2017)

"Liquidity Adjustment Facility - Repo and Reverse Repo Rates" – (RBI Circular RBI/2016-2017/268FMOD.MAOG. No. 118 /01.01.001/2016-17 dated 06.04.2017)

"Marginal Standing Facility" – (RBI Circular RBI/2016-2017/269 FMOD.MAOG.No.119/01.18.001/2016-17 dated 06.04.2017)

"Revised Prompt Corrective Action (PCA) framework for banks" – (RBI Circular RBI/2016-2017/276DBS.CO.PPD. BC.No.8/11.01.005/2016-17 dated 13.04.2017)

"Security Substitution Facility for term repos conducted by Reserve Bank of India under the LiquidityAdjustment Facility" – (RBI Circular RBI/2016-2017/274 FMOD.MAOG.No.120/01.01.001/2016-17 dated12.04.2017)

"Setting up of IFSC Banking Units (IBUs) - Permissible activities" – (RBI Circular RBI/2016-2017/273DBR.IBD.BC.59/23.13.004/2016-17 dated 10.04.2017)

"Systems and Controls for conduct of government banking" – (RBI Circular RBI/2016-2017/271DGBA.GAD.No.2646/31.02.007/2016-17 dated 07.04.2017)

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTURAL FINANCE"Rs.7.57L-cr farm credit disbursed in April-Dec of FY16" – Farm credit worth Rs.7.57 lakh crore was

disbursed by during the first nine months (Apr-Dec) of the 2016-17 fiscal which is likely to surpass the target,Parliament was informed. The agri-credit target for 2016-17 fiscal is Rs.9 lakh crore, while for the currentyear it is Rs.10 lakh crore. – (FE Apr 12, 2017 p 2)

– 14 –

FARM LOAN WAIVER SCHEME"Urjit Patel slams loan waivers" – RBI Governor Urjit Patel expressed displeasure over the current spate of

farm loan waivers and said these adversely affect the culture of repayments as well as put a severe burdenon the exchequer. I think it (loan waiver schemes) undermines an honest credit culture. It impacts creditdiscipline. It (impacts) incentives for future borrowers to repay. In other words, waivers engender moralhazard. – (BS Apr 7, 2017 pp 1, 6)

NABARD"Loan waivers should be targeted only at needy, says Nabard chief: Bank to raise Rs.50,000 cr this

fiscal to fund growth" – Omnibus loan waivers create a 'moral hazard' and they should be targeted only atthe needy, according to Harsh Kumar Bhanwala, Chairman, National Bank for Agriculture and RuralDevelopment. Loan waivers are not viewed favourably by banks and Nabard is no exception to that....Nabard is expecting capital infusion of Rs.3,500 crore in FY18 compared to Rs.1,400 crore in the previousyear. – (HBL Apr 12, 2017 p 10)

RURAL EMPLOYMENT

– MGNREGS

Ghosh, Saibal – "Did MGNREGS improve financial inclusion?" – Utilising household-level data, this paperinvestigates the impact of Mahatma Gandhi National Rural Employment Guarantee Scheme on financialinclusion. Exploiting the staggered timing of the roll-out of the programme across districts, while controllingfor its non-random implementation, it is found that MGNREGS improves financial access. This is confirmedin simple univariate tests as well as in multivariate regressions that take into account several district- andhousehold-level controls. The evidence, however, is less compelling when the use of finance is examined,although there is a differential impact for districts with higher proportion of women. The magnitudes in mostcases are quite large and suggest that public works programme can positively influence financial inclusion.An article. – (EPW 52(12) Mar 25, 2017 pp 106-114)

RURAL HOUSING"Nabard to raise Rs.7,000 crore to help fund rural housing: The money will be lent to an SPV which

will undertake the projects" – To give a fillip to affordable rural housing, the National Bank for Agricultureand Rural Development (Nabard) is planning to raise Rs.7,000 crore, which in turn will be deployed with aMinistry of Rural Development (MoRD) special purpose vehicle (SPV) that will undertake projects underthe aegis of the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G). – (HBL Apr 12, 2017 p 10)

INDUSTRY"Factory output slows, IIP dips to 1.2%" – The decline in the IIP in February is mainly on account of 2 per

cent contraction in manufacturing sector, which constitutes over 75 per cent of the index. Industrial outputslipped to 4-month low, contracting 1.2 per cent in February, mainly on account on decline in the manufacturingsector and lower offtake of capital as well as consumer goods. A report. – (FE Apr 13, 2017 p 2)

INFRASTRUCTURESlater, Richard – "Decoding India's infrastructure" – Unleashing the dynamism that Indian cities possess

will be critical to the country's growth and development. It is crucial that India promotes innovative approachesto urban development that reflect good and promising practices in urban management and progress. Anarticle. – (FE Apr 11, 2017 p 9)

INFRASTRUCTURE FINANCE COMPANIES

– NON-PERFORMING ASSETS

"Infra financiers' NPAs up, credit growth to be subdued: Icra" – There has been a spurt in infrastructurefinanciers' bad assets in the six months to September 2016 and the book of such companies is expected to be

– 15 –

subdued in the near future, according to a report. The gross non-performing assets of the infrastructurefinance companies (IFCs) shot up to 3.4 per cent in September 2016 from 2.8 per cent in March 2016 and 1.6per cent in September 2015, said the report by ratings agency Icra. A report. – (FE Apr 8, 2017 p 11)

LIC"Govt appoints two more MDs at LIC" – The government appointed another two managing directors to the

nation's largest financial powerhouse, LIC, - B Venugopal and Sunita Sharma - for a period of nearly twoyears. – (FE Apr 11, 2017 p 10)

NON-BANKING FINANCE COMPANIESChoudhary, Shrimi – "NBFCs to get greater role in IPOs" – Non-banking finance companies (NBFCs)

may soon enjoy institutional buyer status, reserved for foreign investors and mutual funds, while investing ininitial public offerings (IPO). Sources say the market regulator is likely to classify NBFCs, with net worthmore than Rs.500 crore, as institutional buyers, in order to give them a greater role to play in IPOs. An article.– (BS Apr 12, 2017 pp 1, 12)

REAL ESTATE INVESTMENT TRUSTS"RBI nod for banks to invest in REITs hailed: Will provide liquidity, additional assets for banks, say

analysts" – Real estate developers said the RBI's proposal to allow banks to invest in REITs would usher ina large number of listings in the country. As of now, no real estate player has floated a REIT though companiessuch as DLF and Blackstone have been talking about it. The RBI move comes after a SEBI proposalrequested the banking regulator to allow banks to participate in these schemes. A report. – (HBL Apr 7, 2017p 10)

SMALL SCALE INDUSTRY

MSMEs"Banks responsible for ailing MSMEs, says RBI deputy guv" – Reserve Bank of India deputy governor

S S Mundra held the banking system responsible for the growing sickness of the country's medium and smallenterprises. 'A large number of MSMEs are getting sick and the responsibility of this lies squarely with thebanks. Banks are the reason for a large number of MSME units falling sick. We have given several tools toencourage banks to give automatic enhancement in credit, all kinds of facilities have been provided, but theyhave not been used to the extent they should have been done,' he said, adding, 'At the RBI, we feel dismayedthat the sector is not getting the kind of attention that it needs to get.' A report. – (FE Apr 9, 2017 p 3)

INTERNATIONAL ECONOMICS"Macroeconomic snapshot" – Indicators across the US, euro zone and China suggest that a fragile global

recovery is still under way. The global economy, however, is not without risks. A graphical report.– (Mint Apr 8, 2017 p 23)

"OECD's leading indicator shows growth momentum easing in India" – The Organisation for EconomicCo-operation and Development's (OECD's) composite leading indicators (CLIs), designed to anticipate turningpoints in economic activity relative to trend, point to easing growth momentum in India (see chart). The datafor February 2017 shows that among major economies, only India shows easing growth momentum. CLIsshow growth momentum picking up in China, Russia, Brazil, the US, Canada, Germany and the UK, andstable growth momentum in France, Italy and Japan. A graphical report. – (Mint Apr 11, 2017 p 4)

"The strengthening global economic recovery" – The outlook for emerging markets has also improvedand fears related to China have receded for now. An article. – (Mint Apr 10, 2017 p 14)

– 16 –

Singh, Bhupal and Jain, Rajeev – "Vulnerability of emerging market economies to exogenous shocks"– The transmission of global demand, oil supply and monetary policy shocks on the Indian economy areempirically examined using a parsimonious structural vector auto regression model for the period 1996 to2016. Global demand shocks exert the most dominant effect causing fluctuations in various macroeconomicvariables, whereas global monetary policy spill overs play an important role in affecting domestic short-terminterest rates and financial asset prices. Global oil supply shocks, given its relative weightage as an intermediateinput, have a greater impact on wholesale price index inflation than on consumer price index inflation. Giventhe rising trade and financial integration of the Indian economy, a quantitative impact analysis of these globalshocks assumes importance for macroeconomic and monetary policy frameworks. An article.– (EPW 52(12) Mar 25, 2017 pp 61-76)

ASIAN COUNTRIES"Asian nations swimming in debt are at risk" – Twenty years after the Asian financial crisis and a decade

since the global credit crunch, the region is swimming in debt. The debt binge is spread across companies,banks, governments and households and is inflating bubbles in everything from the price of steel rebar inShanghai to property prices in Sydney. As the US Federal Reserve raises borrowing costs, that means debtis again a concern. A graphical report. – (Mint Apr 12, 2017 p 1)

USA"The economy: Eyes bigger than their wallets" – Consumers and firms think the economy is booming.

Most forecasters disagree. An article. – (Eco 423(9035) Apr 8, 2017 pp 27-28)

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Apr 10, 2017 Supl. pp 1-16)

LABOUR & PERSONNEL MANAGEMENT

HUMAN RESOURCESBhattacharya, Avijit – "The future is digital: How digital disruption will impact human resources" –

HR must continually embrace and build on technological advancements to meet both employee expectationsand business needs. An article. – (TI Apr 12, 2017 p 13)

MANAGEMENT

CORPORATE GOVERNANCESrinivasan, Raghavan – "Right reasons, wrong fights" – Lack of governance in Indian corporates deserves

wider debate. An article. – (H Apr 9, 2017 p 13)

CORPORATE SOCIAL RESPONSIBILITYSahu, Maheshwar – "Results-based management for CSR is important" – An article. – (FE Apr 12, 2017 p 9)

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