Volume XXXI Number 40 July 4, 2016

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 1

C. AGRICULTURE & RURAL DEVELOPMENT 15

D. INDUSTRY 15

E. SMALL SCALE INDUSTRY 15

F. INTERNATIONAL ECONOMICS 16

G. LABOUR & PERSONNEL MANAGEMENT 17

H. MANAGEMENT 17

– 1 –

BANKERS' BRIEF Vol. XXXI No. 40July 4, 2016

ECONOMY"Brexit unlikely to derail India's growth story: Crisil" – Britain's decision to exit the European Union

(EU) and the resultant uncertainties are unlikely to derail India's growth story or its inflation trajectory, but thecountry's current account deficit (CAD) could worsen a tad to 1.3% of its gross domestic product (GDP),according to a report by Crisil Research. Also, information technology (IT) and certain other consumer-oriented sectors like auto components, textiles, leather, footwear, precious stones and metals could face someheat, it adds. A report. – (FE Jun 28, 2016 p 2)

"I don't think there is a cause for worry now" – As a commodity exporter, India may even benefit fromBrexit, says RBI Governor. I think at these times it is important to remember that India is less exposed to theexternal sector than many other countries. A report. – (HBL Jun 25, 2016 p 5)

"Reforms focus, Corp topline will keep India growth story intact" – Excerpts from an interview withSanjay Chatterjee, chairman of Goldman Sachs (India) – (ET Jun 30, 2016 p 14)

"Two stumbles forward, one back" – The government takes a long, winding path towards reform. An article.– (Eco 419 (8995) Jun 25, 2016 pp 55-56)

FOREIGN EXCHANGE RESERVES"Forex reserves hit record high amid market turmoil" – India's foreign exchange reserves hit a record

high of $363.83 billion as of the week ended June 17, shoring up the country's defences just as investorsbrace for continued volatility after Britain voted to leave the European Union. Analysts said FX reserves rosemainly on currency valuations. India's strong reserves position is an important buffer against volatility in theseuncertain times, according to A Prasanna, economist, ICICI Securities Primary Dealership Ltd. – (FE Jun 25,2016 p 12)

INFLATION"Inflation target is flexible" – Important to keep in mind inflation can go up to 6%. An editorial. – (FE Jun 30,

2016 p 8)

MONEYThomas, Shiby M – "Post-Keynesian supply of money theory: An empirical verification in Indian

economy" – 'Money is what money does' is the famous statement on money put forwarded by Prof Walker.Why and how money arises, its importance and role are some questions that haunts the minds of economistssince the very ancient times. The idea that money arises because of the inconveniences of barter seems to beprimitive now. Not only in exchange, but also in other spheres of micro and macro economic activity moneybecomes an important variable. The quantity money affects consumption, production, financial stability of theeconomy. It is a catalyst that affects the development and growth process of the economy. The variousschools of thought have provided various models that discuss the determinants of demand and supply ofmoney. An article. – (SE 55(4) Jun 15, 2016 pp 43-45)

BANKING

GENERAL"Risk management has to move from compliance to understanding the risk" – Edited excerpts from an

interview with S S Mundra, Deputy Governor, RBI. He said recapitalisation bonds may be one of severalidea on the table. While appreciating banks for getting proactive on stressed assets, he assures that there isno further asset quality review on the cards. – (Mint Jun 24, 2016 p 29)

Dugal, Ira – "Do not let the days of crony banking make a comeback" – An article. – (Mint Jun 24, 2016 p 21)

– 2 –

ALLAHABAD BANK"Allahabad Bank: Balance Sheet as on 31st March 2016 and Profit and Loss Account for the year

ended 31st March 2016" – An advertisement feature. – (FE Jun 24, 2016 pp 4-6)

ANDHRA BANK"Andhra Bank: Balance Sheet as on 31st March, 2016 and Profit and Loss Account for the year

ended 31st March, 2016" – An advertisement feature. – (FE Jun 25, 2016 pp 4-7)

AXIS BANK"Axis Bank launches microfinance product for urban poor sans collaterals" – Axis Bank has launched

a microfinance lending product for the unbanked urban poor. This will be a paperless, real-time retail loanwithout collateral. The company launched this urban micro lending initiative in Pune with the first disbursementof loans to low income women's group at the bank's Hadapsar branch. A report. – (FE Jun 29, 2016 p 24)

"Axis Bank to open innovation lab to work with start-ups" – Axis Bank announced that it is in the processof setting up an innovation laboratory in Bengaluru where it would collaborate or work with multiple start-upsto develop customer focused banking solutions and other disruptive technologies, according to ED RajivAnand. A report. – (FE Jun 30, 2016 p 10)

BANK OF BARODA"BoB to sell non-core assets" – Bank of Baroda has undertaken a comprehensive review of its business and

has finalized a detailed set of plans to fundamentally reposition it for future, according to Ravi Venkatesan,chairman of the bank. The lender has reported its worst year in 2015-16. These plans are intended to createa more agile and capable organisation with better controls and compliance. To raise capital, the bank will beselling its non-core assets gradually. Venkatesan said the management has conducted a detailed review of itsbusiness portfolio and intends to gradually exit unprofitable businesses and segments to improve margins andfree up capital. A report. – (Mint Jun 27, 2016 p 8)

Shukla, Saloni and Mehta, Sangita – "BoB is gearing up to make a new bank statement" – CEO PSJayakumar, aided by a team of board headed by the tech-savvy Ravi Venkatesan, is chanting the mantra ofdifferentiation as he aims to rid the 108 year old bank of the image that it is no different from other PSUlenders. An article. – (ET Jun 29, 2016 p 12)

BANK OF INDIA"Bank of India raises Rs.1,000 crore via Basel-III bonds" – Bank of India said it has raised Rs.1,000

crore through bonds that comply with Basel-III norms for capital adequacy. – (FE Jun 24, 2016 p 10)

BANK OF MAHARASHTRA"Bank of Maharashtra to raise Rs1,000 crore via QIP/rights issue" – Bank of Maharashtra will raise

Rs.1,000 crore to fund future opportunities. The bank sought shareholder approval to raise these funds byway of FPOs/rights issue/QIP at its AGM. – (FE Jun 30, 2016 p 10)

"BoM raises Rs.500 cr by issuing Basel III bonds" – Bank of Maharashtra has raised Rs.500 crore byissuing bonds that are compliant with global capital adequacy norms. – (FE Jun 29, 2016 p 10)

CANARA BANK"Canara Bank to seek nod to raise Rs 2,000 crore" – Canara Bank will seek shareholders approval in the

AGM in July to raise Rs 2,000 crore to create capital buffer. A report. – (FE Jun 29, 2016 p 10)

"Canara Bank: Balance Sheet & Profit and Loss Account for the year ended 31st March 2016" – Anadvertisement feature. – (BS Jun 29, 2016 Pt II pp 6-9)

– 3 –

CITY UNION BANK"City Union Bank Ltd: Balance Sheet and Profit & Loss Account for the year ended 31st March,

2016." – An advertisement feature. – (HBL Jun 30, 2016 pp17-19)

CORPORATION BANK"Corporation Bank" – Speech delivered by Shri Jai Kumar Garg, MD & CEO, Corporation Bank at the 19th

AGM. – (HBL Jun 30, 2016 p 3)

"Corporation Bank focusing on recoveries, credit growth: MD" – Corporation Bank is focusing onrecovery, prevention of delinquencies and healthy credit growth for better management of NPAs, accordingto Jai Kumar Garg, MD & CEO of the bank. A report. – (HBL Jun 30, 2016 p 10)

"Corporation Bank: Balance Sheet as on 31st March, 2016 and Profit and Loss Account for the yearended 31st March, 2016" – An advertisement feature. – (FE Jun 28, 2016 pp 4-6)

FEDERAL BANK"Federal Bank: Balance Sheet as at 31st March 2016" – An advertisement feature – (FE Jun 29, 2016 pp

18-23)

ICICI BANK"ICICI Bank to offload stakes" – ICICI Bank will further dilute stake in its subsidiaries to unlock their value,

according to Chanda Kochhar, Managing Director of the bank. The bank, will focus on capital efficiency andfurther unlocking of value in subsidiaries. During 2015-16, the bank offloaded part of its stake in both life andnon-life insurance arms. – (H Jun 25, 2016 p 16)

"TPG to buy ICICI home finance arm: The Rs.2,100 crore deal, expected to close in 3-4 weeks,came about after ICICI Bank decided to lower the valuation" – ICICI Bank Ltd has agreed to sell itsmortgage lending unit to American private equity firm TPG Capital for Rs.2,100 crore, according to a persondirectly familiar with the development. A report. – (Mint Jun 24, 2016 pp 1, 2)

IDBI BANK"Top-level talent crunch hits IDBI Bank" – A talent crunch seems to be getting acute at the top level in

public-sector lender, IDBI Bank, as a deputy managing director (MD) and three executive directors (EDs)are ending their stints in the next 40 days. Manpower crunch: * A deputy managing director and threeexecutive directors are ending their stints in next 40 days; * B K Batra, deputy MD, will hang up his boots atthe end of July; * A senior executive of the bank said the process of selecting a deputy MD is still at thepreliminary stage; * G M Yadwadkar, P Sitaram and K P Nair are seen to be in the fray for the post of DMD;* In FY 2015-16, the bank's net loss was Rs.3,665 crore as against a net profit of Rs.873 crore in 2014-15; *N S Venkatesh, ED and CFO, has put in his papers and is serving his notice period till the end of this month.A report. – (BS Jun 25, 2016 p 4)

INDIAN BANK"Indian Bank" – Speech delivered by Shri Mahesh Kumar Jain, MD & CEO, and Speech delivered by Shri T

C Venkat Subramanian, Non-executive Chairman at the 10th AGM. – (HBL Jun 30, 2016 p 24)

"Indian Bank: Balance Sheet as on 31st March, 2016 and Profit and Loss Account for the year ended31st March, 2016" – An advertisement feature. – (BS Jun 25, 2016 pp 14-16)

INDIAN OVERSEAS BANK"Indian Overseas Bank: Balance Sheet & Profit & Loss Account for the year ended 31st March

2016" – An advertisement feature. – (BS Jun 30, 2016 Pt.II pp 6-8)

– 4 –

KARNATAKA BANK"Karnataka Bank Ltd.: Balance Sheet as on 31st March, 2016 and Profit and Loss Account for the

year ended 31st March, 2016" – An advertisement feature. – (HBL Jun 29, 2016 pp 16-18)

KARUR VYSYA BANK"Karur Vysya Bank: Balance Sheet & Profit & Loss Account for the year ended 31st March 2016" –

An advertisement feature. – (BS Jun 30, 2016 pp 10-11)

KOTAK MAHINDRA BANK"Soon, Kotak Bank to open accounts via tablet: Test runs on in select cities, says top official" –

Kotak Mahindra Bank is all set to roll out account opening through computer tablets. The bank, according toits Senior Executive Vice-President Ambuj Chandna, is in the midst of a pilot run, trying out the processacross select cities, such as Mumbai, Pune and Bangalore. The pan-India rollout will happen soon.– (HBL Jun 29, 2016 p 10)

ORIENTAL BANK OF COMMERCE"OBC gets shareholders' nod to raise Rs.1,500 cr" – Oriental Bank of Commerce said its shareholders

have approved the bank's plan to raise Rs.1,500 crore by way of various instruments. – (FE Jun 24, 2016 p 11)

PUNJAB AND SIND BANK"Punjab and Sind Bank: Balance Sheet as on 31st March, 2016 and Profit and Loss Account for the

year ended 31st March, 2016" – An advertisement feature. – (FE Jun 27, 2016 pp 16-18)

PUNJAB NATIONAL BANK"Punjab National Bank: Balance Sheet as on 31st March, 2016 and Profit and Loss Account for the

year ended 31st March, 2016" – An advertisement feature. – (BS Jun 28, 2016 Pt.II pp 6-10)

– INTEREST RATES

"PNB cuts fixed deposit rates" – PNB has slashed fixed deposits rates by 0.25 per cent on select maturities.The bank has reduced interest rates on retail term deposits by 0.05-0.25 per cent in maturity bucket of 1 yearand above. – (IE Jun 29, 2016 p 13)

RESERVE BANK OF INDIA– EXECUTIVE APPOINTMENTS

"New RBI deputy governor named" – N S Vishwanathan has been appointed as deputy governor of theRBI, replacing H R Khan who will retire next week. Vishwanathan, currently executive director at thecentral bank, was chosen by a search committee headed by the Cabinet secretary, the first appointment to bedone through this panel. – (FE Jun 29, 2016 p 1)

STATE BANK OF INDIA"No law broken in funding cluster bomb maker: SBI" – The State Bank of India (SBI) has defended

financing a U.S. cluster bomb manufacturer, saying its investments were legal, after being put in a 'Hall ofShame' along with several other major banks by a Dutch campaign group. A report. – (FE Jun 24, 2016 p 10)

"SBI plans to raise $1.5 billion from overseas bonds" – State Bank of India said it plans to raise $1.5billion from overseas markets via bonds during the current financial year to fund its expansion. The bank'sboard is meeting on June 29 to take a decision in this regard. – (FE Jun 24, 2016 p 1)

– 5 –

"SBI to divest non-core assets to rake in Rs 3 cr" – Faced with rising bad assets, SBI will divest non-coreinvestments of around Rs 3,000 crore to shore up capital. Despite the challenges that SBI faced last fiscal,the bank, however, is well capitalised to absorb future shocks and maintain future growth trajectory, accordingto its annual report for 2015-16. A report. – (FE Jun 29, 2016 p 10)

"SBI to raise $1.5 bn in FY17 by issuing bonds" – Fund raising to take place through public offer and/orprivate placement of senior unsecured notes. A report. – (FE Jun 30, 2016 p 10)

"SBI's Arundhati may get 1-year extension: MoF wants continuity in leadership as SBI absorbs 5associate units and Bharatiya Mahila Bank while cleaning up its books" – The government isconsidering a proposal to extend Arundhati Bhattacharya's term as chairman of State Bank of India by atleast a year, according to senior officials. The finance ministry wants continuity in leadership as state-run SBIabsorbs five associate units and Bharatiya Mahila Bank while cleaning up its books of bad loans, they said,adding that the government may fix SBI chairman's tenure at five years, up from three now. An extensionwould rule her out as a contender to succeed Reserve Bank of India Governor Raghuram Rajan, whocompletes his term in September. A report. – (ET Jun 27, 2016 p 9)

– EXECUTIVE APPOINTMENTS

"3 candidates interviewed for SBI MD post" – Three candidates were interviewed for the post of amanaging director (MD) of the State Bank of India. The interview was conducted by the Bank BoardBureau. The interviews were held to replace V G Kannan, who looks after associates and subsidiaries at thebank and retires on June 30. – (HBL Jun 28, 2016 p 10)

STATE BANK OF PATIALA"State Bank of Patiala: Balance Sheet and Profit and Loss Account for the year ended 31st March

2016" – An advertisement feature. – (BS Jun 29, 2016 pp 10-12)

SYNDICATE BANK"Syndicate Bank" – Speech delivered by Sri Arun Shrivastava, MD & CEO's statement at the 17th Annual

General Meeting of the bank held on 24.06.2016 at Manipal. – (HBL Jun 25, 2016 p 18)

TAMILNAD MERCANTILE BANK"Tamilnad Mercantile Bank Ltd.: Balance Sheet as on 31st March 2016 and Profit and Loss Account

for the year ended 31st March 2016" – An advertisement feature. – (HBL Jun 24, 2016 pp 18-20)

UCO BANK"UCO Bank expects to make profits by FY18" – UCO Bank which slipped into the red last fiscal on

account of high provisions to cover huge surge in bad loans, is expected to return to profitability by the nextfiscal, according to bank's MD and CEO RK Thakkar. The bank plans to sell 20 loan accounts, with loansworth around Rs 2,000 crore to ARCs in the next few quarters. A report. – (FE Jun 30, 2016 p 10)

"UCO Bank stops lending to large companies on mounting NPAs" – UCO Bank has stopped lending tolarge firms as stressed assets mount, according to its MD & CEO Ravi Krishan Takkar. It is a decision takenvoluntarily by the bank's management as part of its turnaround strategy. Commitments already made are tobe honoured, but no fresh exposure is to be taken, he added. A report. – (Mint Jun 30, 2016 p 18)

"UCO Bank: Balance Sheet as on 31st March, 2016 and Profit and Loss Account for the year ended31st March, 2016" – An advertisement feature. – (FE Jun 27, 2016 pp 20-22)

UNITED BANK OF INDIA"United Bank eyes 30% retail loan growth in current fiscal" – United Bank of India is aiming to grow its

retail credit portfolio by 30% for this fiscal as it remains cautious on lending to corporate sector. The bank iseyeing a 10-12% business growth in this financial year. A report. – (FE Jun 30, 2016 p 10)

– 6 –

"United Bank of India: Balance Sheet as on 31st March, 2016 and Profit and Loss Account for theyear ended 31st March, 2016" – An advertisement feature. – (FE Jun 29, 2016 pp 4-6)

CHINA"Bad loans: Chinese banks write offs $300 b over 3 years" – A result of Beijing making credit cheap in an

effort to boost slowing growth. China's total debt hit 168.48 trillion yuan at the end of last year, equivalent to249 percent of the national GDP. A report. – (HBL Jun 24, 2016 p 10)

– PEOPLE'S BANK OF CHINA

"China central bank chief sees 'dynamic' monetary policy adjustments" – A more flexible yuan currencyis important for China's development and reforms and monetary policy will be adjusted 'in a dynamic way' tomeet those goals, according to Zhou Xiaochuan, Governor, People's Bank of China. A report. – (FE Jun 26,2016 p 11)

GERMANY"German banks: turn of the screw" – Ultra-low interest rates are slowly squeezing Germany's banks. An

article. – (Eco 419(8995) Jun 25, 2016 p 59)

UK"British banks plunge after mass downgrades" – Analysts slash earnings estimates as UK votes to leave

EU. Trading in Barclays and RBS briefly halted after 10% drop. The UK's largest lenders accelerated thebiggest fall since 2000 after the nation vote to leave the European Union sparked fears about political andeconomic risks and the sharpest negative shift in analyst sentiment on record. Analysts downgraded BarclaysPlc. Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc enmasse, cutting their earningsoutlooks as investors seek to comprehend the fallout from Brexit. A report. – (ET Jun 28, 2016 p 11)

USA"Foreign banks spend billions to comply with new Fed rule: effective July 1, foreign banks need to

have holding companies and take part in US central bank's stress tests" – Deutsche Bank AG,Barclays Plc and 11 other foreign banks have spent several billion dollars in the past three years complyingwith a new Federal Reserve rule that will trap capital in the US and boost costs. A report. – (HBL Jun 30,2016 p 10)

– BANK REGULATIONS

"Regulating banks: Capital hill" – Republicans offer an alternative to America's convoluted bank regulations.– (Eco 419 (8995) Jun 25, 2016 pp 58-59)

– FEDERAL RESERVE

"US lenders face higher stress test hurdle" – The message from the US Federal Reserve was clear: the biggestbanks in America have enough capital to withstand the most terrible of scenarios. A report. – (FT Jun 25,2016 p 17)

ACCOUNTING STANDARDSDilip, K – "Banks' migration to IND AS - an assessment" – All scheduled commercial banks have to adopt

Indian Accounting Standards (Ind AS) in the preparation of consolidated and individual financial statementsfor accounting periods commencing from April 1, 2018. Notably, the scheduled commercial banks can applyInd AS only if they meet the specified criteria. They cannot voluntarily adopt Ind AS, in other words. Ananalysis of the primary data collected from the respondents has convinced the researcher that banks have towilly-nilly apply Ind AS retrospectively, which, frankly speaking, is a daunting task in the Indian milieu. Inparticular, the application of Ind AS 109 will turn out to be a tough nut to crack given the provisions of the IndAS 109, at least from the Indian perspective. An article. – (SE 55(4) Jun 15, 2016 pp 31-35)

– 7 –

BANK CAPITAL"30 of 50 banks may not meet capital adequacy norms: RBI" – The RBI has raised concern over the

capital adequacy ratio of many lenders (30 of 50), saying they might not be able to meet the norms underextreme scenarios. In its Financial Stability Report, it said this ratio doesn't seem threatened for now butcould slip below the required level if there is a surge in bad loans. A report. – (BS Jun 29, 2016 p 4)

BANK CONSOLIDATION– PUBLIC SECTOR BANKS

"Not an opportune time for consolidation of public sector banks, says Moody Cites increased stressedassets, employee resistance among current challenges" – The risks of consolidation of public sectorbanks under the current economic circumstances could offset the potential long-term benefits, cautionedMoody's Investors Service. In this regard, the global credit rating agency underscored that India's bankingsystem has witnessed an increase in stressed assets since 2012, with many public sector banks (PSBs)having suffered significant deterioration in their balance sheets as demonstrated by their asset quality metricsand capitalisation profiles. The current proposed merger put forward by SBI, which has already met oppositionfrom employee unions, has estimated that the merger of the associate banks would cost it up to Rs.3,000crore due to differences in employee benefit schemes. A report. – (HBL Jun 29, 2016 p 10)

– SBI / ASSOCIATES / BMB

"SBI, associates to merge in 9 months" – The merger of SBI with its five associate banks and BharatiyaMahila Bank will be fast tracked so that the process is completed within the next nine months, according toa government official. A report. – (FE Jun 29, 2016 p 10)

BANK LENDINGMohan, Raghu – "Playing blind: as lines between consortium and multiple banking blur, bankers are

blind-sided even as dud-loans continue to haunt them" – An article. – (BusW 35(22) Jun 14, 2016 pp74-77)

BANKING REGULATOR"Govt narrows shortlist for new RBI governor down to four" – The government has narrowed its list of

candidates to become the next governor of the Reserve Bank of India to four, according to a senior official,as it set in motion the process of naming a new Monetary Policy Committee (MPC). A report. – (Mint Jun 28,2016 p 3)

"A host of challenges for Rajan's successor: Continuing the incumbent's good work will require deftfootwork" – Dealing with New Delhi without changing the course RBI has taken in the past few years willbe a challenge. An article. – (Mint Jun 28, 2016 p 30)

"Rajan's exit raises doubts about reforms in India" – Without its central banking talisman, Modi's drivemay lose impetus. An editorial. – (FT Jun 21, 2016 p 8)

"Rajan's successor may be an economist: Government feels move will send strong signal tointernational community" – The government is likely to appoint an economist to succeed Raghuram Rajanas governor of the Reserve Bank of India rather than a bureaucrat. Former Reserve Bank deputy governorsRakesh Mohan and Subir Gokarn, and current deputy governor Urjit Patel are under consideration as candidatesfor the post. Others in the reckoning are World Bank Chief Economist Kaushik Basu and former chiefeconomic adviser Ashok Lahiri. A report. – (ET Jun 27, 2016 p 1)

Kishore, Priyanka – "Rajan's successor must be chosen to favour investors not politics" – Mr Rajan'sdeparture has raised concerns about a political appointment. An article. – (FT Jun 23, 2016 p 22)

Mulraj, J – "Rajan's exit marks major setback to independence of Indian institutions" – It is a sad dayfor India that a competent person such as Raghuram Rajan is edged out for petty reasons. The main chargeagainst him was his reluctance to lower interest rates, thus, ostensibly, sacrificing growth. This is balderdash!An article. – (HBL Jun 25, 2016 p 12)

– 8 –

Ribeiro, Julio – "Disarmed by Rajan" – He is the first RBI governor to come out openly to explain hisdecisions to the general public. An article. – (IE Jun 24, 2016 p 11)

Thaper, Karan – "Rajan's departure is hardly a surprise" – An article. – (HT Jun 26, 2016 p 16)

– BANK CAPITAL

"Rajan resists plan to fund banks from RBI coffers: Arvind Subramanian's plan to pare bad loansusing RBI funds will shrink central bank's balance sheet by Rs.4 tn" – Using RBI as a piggy bankwould avoid a deterioration in the budget deficit. The risk is that the central bank would be seen as agovernment tool, and as a part owner of lenders have mixed objectives as it conducts monetary policy. Rajanhas sought to strengthen RBI's independence, in part through setting an inflation target. A report. – (Mint Jun30, 2016 p 8)

BANKING REGULATORS"Brexit may imply some monetary policy reaction" – An interview with Raghuram Rajan, Governor,

Reserve Bank of India. He spoke about the fallout of Brexit from Basel, Switzerland, where he is for ameeting of central bank governors. – (ET Jun 25, 2016 p 6)

"Central banks to cooperate closely to deal with Brexit" – Central bankers from across the world,including RBI Governor Raghuram Rajan, discussed implications of Britain's decision to leave the EuropeanUnion on financial markets and agreed to work closely to ensure stability. GEM comprises governors of 30BIS member central banks in major advanced and emerging market economies, including from India. Areport. – (IE Jun 26, 2016 p 15)

"Central banks to reassess policies" – Major central banks are likely to undertake policy accommodationsto pacify the adverse macro implications and financial disruptions in the wake of Brexit, according to a reportby Kotak Economic Research. – (IE Jun 26, 2016 p 15)

"Rajan in 'Basel huddle' of central banks as Brexit roils markets" – RBI Governor Raghuram Rajan andheads of central banks from across the world got into a huddle in this Swiss town as Britain's vote to exit theEuropean Union gave an early morning shock to the financial markets across the globe. Rajan, who has beenpitching for greater coordination among central banks to deal with such situations, was expected to reiteratethis point amid fears that Europe may slip into recession and many more countries may call for similarreferendums, posing a huge risk to recovery in world economy. A report. – (FE Jun 25, 2016 p 12)

Rangan, M C Govardhana – "The skeptic: Central banks' invincibility on test now" – An article.– (ET Jun 25, 2016 p 11)

– MONETARY POLICY

"Policy advice: In the face of turmoil, BIS warns against overreacting to Brexit" – Instead of rampingup QE, focus on integrating financial sector, tackling bad loans, normalizing rates, BIS recommends. Monetarypolicy is so stretched worldwide that a radical rethink about how support is provided to the economy isneeded, even at a time when the UK's exit from the European Union (EU) risks placing fresh demands oncentral banks. A report. – (Mint Jun 27, 2016 p 7)

BANKING TECHNOLOGY– BLOCKCHAIN TECHNOLOGY

"Lenders claim blockchain breakthrough" – Seven institutions transfer real money across borders usingdigital asset system. A group of seven banks including Santander, CIBC and UniCredit is claiming abreakthrough, ranking among the first financial institutions to move real money across borders using blockchainbased technology. A report. – (FT Jun 23, 2016 p 14)

Kishore, N Raghu – "Financial world rapidly adopting blockchain technology" – An article. – (BS Jun24, 2016 Supl. p 2)

– 9 –

BANKRUPTCY CODEMondal, Dipak – "Going for broke" – Bankruptcy law is ambitious in its scope. But stretched infrastructure,

slow judicial processes and some ambiguities may limit its effectiveness. An article. – (BusT 25(13) Jun 20,pp 28-34)

BHARAT BILL PAYMENT SYSTEM"Bharat bill payment system" – A report. – (BS Jun 24, 2016 Supl. p 4)

COOPERATIVE BANKING– SVC BANK

"SVC Bank maintains profitability track record" – SVC Bank Ltd. has announced financial results for theyear 2015-16. The overall business grew by over 10 per cent. The bank, clocked more than Rs.22,500 crs. ofbusiness and net profit of Rs.119 crs. showcased its skills in a challenging fiscal with three consecutive yearsof net profit above Rs.100 crs. – (ET Jun 27, 2016 p 4)

CREDIT CARDS"Banks look to tie up with online players to offer credit cards based on spending patterns" – In a bid

to capture first-time credit card users, banks are looking at tying up with e-commerce and other digitalentities to offer instant credit cards to customers, based on their spending patterns. HDFC Bank, which hasthe country's largest credit card base, is one of the players mulling such tie-ups. RBL Bank (formerly RatnakarBank) is also mulling at tying up with an online spending aggregator which can keep track of consumers'spending patterns and give a credit card based on it. YES Bank, set to launch its credit card next month, islooking at increasingly offering credit cards for customers it doesn't have a prior banking relationship with. Areport. – (BS Jun 24, 2016 p 4)

CYBER CRIME– CYBER SECURITY

"Banks can do a lot to curb cybercrime" – An interview with Vijay Mukhi, cyber expert. – (HT Jun 29, 2016p 2)

DEPOSITS"Commercial banks' deposits doubled to Rs.89.22-lakh cr during 2010-15: RBI" – Deposits with

commercial banks almost doubled during 2010-2015 to Rs.89.22 lakh crore while their credit rose twofold toRs.68.78 lakh crore during the same period, RBI data showed. Deposit-wise, the western region witnessedthe highest amount mobilised by banks at Rs.26.85 lakh crore witnessed in 2015 as against Rs.14.49 lakhcrore in 2010. A report. – (HBL Jun 28, 2016 p 10)

DERVIATIVES RISK"RBI draft norms for derivatives risk" – The Reserve Bank of India (RBI) released draft guidelines for

computing exposure for counterparty credit risk (CCR) arising from derivative transactions and capitalrequirements for bank exposures to central counterparties (CCPs). A report. – (Mint Jun 24, 2016 p 6)

DIGITAL BANKING"Digital banking 2.0" – From using Aadhaar cards for withdrawals to mobile-only solutions, new offerings by

banks are changing the way you transact. A report. – (BS Jun 27, 2016 p 11)

Rao, Rajkamal – "Indian banks must share digital dividend" – They have saved crores by going digital,but instead of passing a part of that to users, the banks are overcharging them. An article. – (HBL Jun 29,2016 p 9)

– 10 –

DIGITAL PAYMENTS"Electronic money: The digital age commerce catalyst" – A commercial feature. – (BS Jun 24, 2016 Supl.

pp 1-4)

Kishore, N Raghu – "Significant security aspects of electronic money and payment solutions" – Anarticle. – (BS Jun 24, 2016 Supl. p 2)

Surya, Naveen – "There is a paradigm shift in the digital payment sector over the years" – An article.– (BS Jun 24, 2016 Supl. p 4)

– PAYMENT AND SETTLEMENT SYSTEMS

"Banking on future" – The government needs to build on the RBI's roadmap for a cashless economy. Aneditorial. – (IE Jun 27, 2016 p 8)

"A revolution in the works" – The RBI's paper on payment and settlement systems speaks of a flexibleapproach to embrace emerging tech. An editorial. – (HT Jun 27, 2016 p 10)

DIGITAL TECHNOLOGY"Banks get tech savvy to simplify services" – Technology has become synonymous with banking and

Indian banks have put in place a fairly strong infrastructure to leverage its benefits. A commercial feature.– (BS Jun 30, 2016 p 5)

EXECUTIVE COMPENSATION"Rich banker, poor banker" – HDFC Bank's Managing Director Aditya Puri earned Rs.9.73 crore in the

financial year ended March 2016. Even if Arundhati Bhattacharya, chief of State Bank of India (India'slargest public sector bank), serves for another 30 years, she cannot match what Puri earned in one year. Areport. – (BS Jun 24, 2016 Pt.II p 2)

FINANCIAL STABILITY– NPAs

"Banking risks mount: govt has to move quickly on removing promoters" – An editorial. – (FE Jun 30,2016 p 8)

"Banking stress" – A quick edit. – (Mint Jun 29, 2016 p 1)

"End this drift on bad loans: India cannot afford a slow-motion recovery" – We need an action plan torescue companies and revive credit growth. An editorial. – (HT Jun 30, 2016 p 12)

"RBI fears credit tightening as banks clean up balance-sheets: Financial Stability Report sees sectorremaining risk-averse as loan book worsens" – Flagging the risk of more pain ahead for the bankingsector, the Reserve Bank of India said it feared that more serious impairment of loan books would inducegreater risk-aversion and slower credit growth, as banks focus on strengthening their balance sheets. TheRBI's Financial Stability Report, warned that stability conditions in the banking sector, which started deterioratingin 2010, have worsened significantly. According to the RBI banking stability indicator, which maps fivedimensions - soundness, asset quality, profitability, liquidity and efficiency - risks to the sector increasedsignificantly during the second half of 2015-16 due to deteriorating asset quality and lower profitability. Whilestress tests reveal resilience, the report cautioned that the system could become vulnerable if macroeconomicconditions deteriorate sharply. A report. – (HBL Jun 29, 2016 p 1)

"RBI's warning signal: stressed assets still a big problem for banks" – An editorial. – (BS Jun 30, 2016p 9)

"The right remedy: the NPA disease cannot be cured by killing investment altogether" – An editorial.– (HBL Jun 30, 2016 p 8)

– 11 –

"Saving Indian banking from the capitalists" – Call it crony capitalism or any other term you want. Largeborrowers- and significantly the top 100 largest debtors - are primarily responsible for the bad loan problemin Indian banks. That's the inescapable conclusion from the RBI's June financial stability report. A graphicalreport. – (Mint Jun 30, 2016 pp1-2)

"Sombre message from Reserve Bank: Financial stability permits little fiscal leeway" – An editorial.– (ET Jun 30, 2016 p 12)

FOREIGN BANKS OPERATING IN INDIA– STANDARD CHARTERED

"StanChart Touch ID innovation on mobile banking platform" – Standard Chartered launched its TouchID innovation on its mobile banking platform, SC Mobile. – (FE Jun 30, 2016 p 10)

IDRBT– PAYMENT SYSTEMS

"Electronic Payment Systems in India: Lot has been done and lots more to be done" – Extracts of theinterview with A S Ramasastri, Director, IDRBT. He said set up in 1996, IDRBT has played a momentousrole, emerging as a preferred Research and Development Institution on Financial Sector Technology. – (BSJun 24, 2016 Supl. p 1)

MICROFINANCE"Risky lending: Rapid growth of MFIs' gross loan portfolio sets alarm bells ringing" – Data from

Microfinance Institutions Network shows 84% rise in loans against a modest 44% rise in number of clients.Microfinance companies extended heavier loans to their customers in the last financial year, data showed,raising concerns the sector that emerged from a crisis not far ago may be growing too fast yet again for itsown good. The loan portfolio of microfinance institutions (MFIs) stood at Rs.53,233 crore as of 31 March2016, up from Rs.28,940 crore a year ago, according to data from the Microfinance Institutions Network(MFIN). A report. – (Mint Jun 27, 2016 p 9)

MOBILE WALLETS"Enormous latitude for mobile wallets" – A report. – (BS Jun 24, 2016 Supl. p 4)

MONETARY POLICYNayar, Aditi – "Policy rates may stay put: The recent rise in inflation can limit further monetary

easing" – Little headroom: ICRA expects the additional rate cutting by the RBI in 2016 to be limited to 25basis points. Risks to inflation: * Rise in food prices; * Higher commodity prices; * Pay revision hikes. Anarticle. – (HBL Jun 27, 2016 p 11)

Sengupta, Rajeshwari – "Inflation targeting: A long way to go" – A central feature of a well-functioningmonetary policy is transmission, which is ineffective in India. An article. – (Mint Jun 29, 2016 p 23)

MONETARY POLICY COMMITTEE"FinMin notifies rules for monetary policy panel" – Moving a step closer to setting up the Monetary Policy

Committee (MPC), the Finance Ministry notified the provisions of the amended Reserve Bank of India Act,1934. The statutory basis of the Monetary Policy Committee (MPC) is now made effective. A Committee-based approach will add lot of value and transparency to monetary policy decisions, according to the FinanceMinistry. A report. – (HBL Jun 28, 2016 p 4)

"How the monetary policy panel will work" – The government has initiated the process to establish itsmonetary policy committee. The MPC will be composed of six voting members; three from the RBI andthree government-appointed members. A view of Nomura. – (Mint Jun 30, 2016 p 16)

– 12 –

"Monetary Policy Committee to be in place by Sept: Finance Ministry to begin the process ofnominating three members to the panel" – The Centre is working on setting up a Monetary PolicyCommittee and hopes to have it in place within the next few months. 'This is a work in progress... Our effortis to have the Committee in place by September,' according to Economic Affairs Secretary Shaktikanta Das.A report. – (HBL Jun 24, 2016 p 1)

NON-PERFORMING ASSETS"Banking's 'weak underbelly' exposed: Kotak" – Warning of 'more bad news' on the stressed loans front

in the Indian banking sector, eminent banker Uday Kotak has said its 'weak underbelly' has resurfacedstrongly and the story is not over yet, though lenders have begun cleaning up their books. Kotak also questionedwhether nationalisation of banks served the purpose of checking disproportionate lending to big businesses,as most of the stress on their books is due to loans to big corporates. A report. – (BS Jun 27, 2016 p 4)

"Stressed assets: Raghuram Rajan to brief two Parliamentary panels next week" – Amid complaints bythe Opposition parties that Raghuram Rajan is being denied a second term as the Reserve Bank of IndiaGovernor for his tough stand against 'crony capitalism', two Parliamentary panels will hear his views nextweek on the burgeoning non-performing assets (NPAs) or bad loans. Rajan will brief the Public AccountsCommittee (PAC) and a Joint Committee on the Enforcement of Security Interest and Recovery of DebtsLaws and Miscellaneous Provisions Bill next week. This will be his second meeting with the PAC on theissue of NPAs. While providing written answers to certain queries of members, Rajan reiterated that wilfuldefault, loan frauds and corruption were primary reasons for the spurt in stressed assets in recent times. Areport. – (HBL Jun 25, 2016 p 11)

Adikesavan, S – "For a nuanced policy on bad debts" – In resolving the issue, the government, regulatorand industry should be mindful of the impact on jobs and infrastructure. An article. – (HBL Jun 27, 2016 p 16)

– AUDITING

Shashidharan, K P – "Auditors key to resolving NPA crisis: proper medicine is prescribed for chronicNPA infection, but what is missing is strict implementation" – Auditors must follow auditing standards,applicable accounting standards, rules and the professional code of ethics. The ICAI must fix accountabilityof auditors if they are found lacking in professionalism and ethics. An article. – (FE Jun 30, 2016 p 9)

– PUBLIC SECTOR BANKS

Ahluwalia, Montek S – "Bad loans: Fixing public sector banks" – Banking sector stress in India hasemerged as one of the critical risks which could jeopardize growth. There is good reason to worry. Our banksare saddled with too many non-performing loans and credit expansion has slowed dramatically. Growth inindustrial credit (year on year) has slowed to less than 5% in the first quarter of 2016. This is clearly notconsistent with even 7.5% gross domestic product (GDP) growth, let alone accelerating to 8%. Expert view.– (Mint Jun 24, 2016 p 15)

– RECOVERY OF LOANS

Adhikari, Anand – "Time for a Haircut" – The finance ministry is working on a safeguard mechanism toprotect banks from legal hassles if they take the haircut route to get rid of bad debts. An article. – (BusT25(13) Jun20, 2016 pp 16-17)

NPCI"NPCI's vision to digitise retail payments in India" – NPCI's Immediate Payment Service (IMPS) is

playing a key role in promoting mobile payments. This is being taken to a new level through Unified PaymentsInterface (UPI). Usage of electronic payments system is growing with every passing year and towards thisthe NPCI is developing a metric to assess the extent to which electronic payments have gone universal inIndia. An article. – (BS Jun 24, 2016 Supl. p 1)

– 13 –

PAYMENT AND SETTLEMENT SYSTEMS"RBI's policy stance is towards promoting a less cash/less paper society" – The Vision Statement sets

out the roadmap to ensure benefits of a structured modern payment and settlement systems, including innovativeproducts. A report. – (BS Jun 24, 2016 Supl. pp 1, 3)

"Reserve Bank looking to scale up e-payment system: Review of NEFT, better access to mobilebanking service, among steps envisaged in Vision-2018 document" – In a bid to build best-in-classpayment and settlement systems for a 'less-cash' India, the Reserve Bank of India unveiled a Vision-2018document, which, among others, envisages review of the National Electronic Funds Transfer (NEFT) systemto enable faster payment processing through introduction of more frequent settlement cycles. A report.– (HBL Jun 24, 20169 p 10)

PAYMENTS BANKSGhosh, Soumya Kanti and Mitra, Dipankar – "Does it pay to open payments banks?" – To differentiate

payments banks from existing banking structures, some serious restrictions have been placed. An article.– (Mint Jun 28, 2016 p 31)

– INDIA POST

"India Post looks to appoint board for payments bank in 1-2 months" – It has also approached theappointments committee of the cabinet to appoint CEO and COO for IPPB. A report. – (Mint Jun 30, 2016p 10)

PUBLIC SECTOR BANKS"Lenders look to exit insurance biz as bad loans bite" – Cash-strapped PSBs, including SBI, PNB, BoB,

Andhra Bank, Canara Bank and Oriental Bank of Commerce are re-examining their investments in theinsurance sector. A few of them could even look at exiting the highly capital-intensive space. A report.– (HT Jun 29, 2016 p 15)

– ASSET RECONSTRUCTION COMPANIES

"PSBs told to cut stakes in ARCs: Conflict of interest in such ownership behind govt's move" –State-run banks have been nudged to trim their stakes in asset reconstruction companies (ARCs) because ofthe inherent conflict of interest in such ownerships. This comes at a time when Banks Board Bureau (BBB)is looking to resolve the issue of stressed assets in the banking sector. 'We are encouraging public sectorbanks to withdraw stake in such firms because it will free up more capital (for banks) to end,' according to anofficial aware of the developments. A report. – (ET Jun 24, 2016 p 13)

– GOVERNMENT STAKE

Basu, Debashis – "The 'O' word Mr Rajan won't utter" – PSBs occupy more than 70 per cent of thebanking space and contribute substantially to financial frictions. Customers are unhappy with the servicesthey get and PSBs need periodic recapitalisation because they create huge bad loans through inefficient andcorrupt lending practices. A public intellectual who has spoken his mind about many peripheral issues, wouldhave done us a favour by pointing a finger, backed by data at where the real blame lies for this huge mess:government ownership. An article. – (BS Jun 27, 2016 p 9)

Jethmalani, Harsha – "Public, pvt sector bank values in past five years" – State-owned banks have lostat least Rs.1 trillion in market cap since their 2011 peak. That's in sheer contrast to the Rs.4.6 trillion rise inthe value of 15 private sector banks over the same. Because of this, the government stares at a notional lossof Rs.55,617 crore, which is the diminution in the value of its holding. This is more than double the amount ithas promised to inject as capital in public sector banks this fiscal year. An article. – (Mint Jun 29, 2016 p 14)

SCHEME FOR SUSTAINABLE STRUCTURING STRESSED ASSETSBandyopadhyay, Tamal – "S4A won't solve the bad loans problem" – An article. – (Mint Jun 27, 2016 p 10)

– 14 –

SMALL FINANCE BANKSRaghu, S A – "Banking trends: Is small beautiful?: Funding, credit pricing and business models will

decide small finance banks' success" – Making a shift: The rationale for encouraging MFIs to convert tobanks is to help them get over problems of inadequate finance, unclear regulatory environment, or lowtechnology and management bandwidth. What will change?: * Completely different client segment; * Creditpricing norms under MCLR; * New rules for asset allocation. An article. – (HBL Jun 27, 2016 p 11)

WILFUL DEFAULTER– RECOVERY OF LOANS

"FinMin tells banks to reject Mallya's offer: No settlement ministry confident of extradition, recoveryof full dues" – The finance ministry has asked banks not to consider any settlement offer from Vijay Mallya.Mallya had told the Supreme Court in April that he was prepared to deposit an additional Rs.2,468 crore overand above his earlier offer of Rs.4,400 crore. A consortium of 17 banks led by State Bank of India (SBI) hadlent around Rs.7,000 crore (Rs.9,000 crore with interests and penalties) to Mallya and the now-defunctKingfisher Airlines. 'There was a feeling in some quarters that banks should accept whatever Mallya isagreeing to give. But we are certain we can recover the full amount once we extradite him,' according to atop finance ministry official, who did not wish to be named. A report. – (HT Jun 24, 2016 p 17)

RBI CIRCULARS"Amendment in rules for implementation of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)"

– (RBI Circular RBI/2015-2016/437 DCBR.BPD (PCB) Cir.No.20/12.05.001/2015-16 dated 30.06.2016)

"Auction of Government of India Dated Securities" – (RBI Circular RBI/2015-2016/434 Ref.No.IDMD/2953/08.02.032/2015-16 dated 27.06.2016)

"Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government ofIndia and erstwhile USSR" – (RBI Circular RBI/2015-2016/439 A.P. (DIR Series) Circular No.79 dated30.06.2016)

"External Commercial Borrowings (ECB) - Approval Route cases" – (RBI Circular RBI/2015-2016/440A.P. (DIR Series) Circular No.80 dated 30.06.2016)

"Guidelines for relief measures by banks in areas affected by natural calamities-utilisation of insuranceproceeds" – (RBI Circular RBI/2015-2016/436 FIDD.No.FSD.BC.27/05.10.001/2015-16 dated 30.06.2016)

"Issue of authorization for opening Controlling Offices (Regional/Zonal/Administrative Offices) u/s23 of the Banking Regulation Act, 1949 (AACS)" – (RBI Circular RBI/2015-2016/438 DCBR.CO.LS(PCB) Cir.No.19/07.01.000/2015-16 dated 30.06.2016)

"Performance Audit of Crop Insurance Schemes" – (RBI Circular RBI/2015-2016/442FIDD.No.FSD.BC.28/05.10.007/2015-16 dated 30.06.2016)

"Pre-2005 series of Banknotes - Revision of exchange facility" – (RBI Circular RBI/2015-2016/443DCM (Plg) No.G-12/4297/10.27.00/2015-16 dated 30.06.2016)

"Quarterly reporting system- Foreign branches/ subsidiaries/ joint ventures/ associates of Indianbanks" – (RBI Circular RBI/2015-2016/435 DBS.CO.PPD.15123/11.01.021/2015-16 dated 30.06.2016)

"Settlement System under Asian Clearing Union (ACU)" – (RBI Circular RBI/2015-2016/441 A.P. (DIRSeries) Circular No.81 dated 30.06.2016)

– 15 –

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTURAL FINANCE"32 lakh farmers face uncertainty over crop loans" – The refusal of district cooperative banks to restructure

loans of farmers with more than one-year-old outstanding debts is likely to deprive 32 lakh farmers of freshloans in the ongoing kharif and the upcoming rabi season. There are 28 district co-op banks under the nodalMaharashtra State Cooperative Bank, which account for 60 per cent of the crop loans extended. Theremaining 40 per cent is through national banks. A report. – (IE Jun 30, 2016 p 3)

INDUSTRY

MANUFACTURINGBatavia, Pratish – "Moving towards the vision of Make in India" – An article. – (ET Jun 30, 2016 p 6)

– EMPLOYMENT

Barua, Abheek and Arora, Tushar – "What to Make in India?" – We need to dilute our fetish for growthand look at what it fetches us in terms of job creation. An article. – (BS Jun 24, 20146 p 9)

NON-BANKING FINANCE COMPANIES"NBFCs show improvement in performance" – Non-banking financial companies (NBFCs) improved their

performance on most metrics in the last fiscal year, as the banking industry struggled under the weight of agrowing pile of bad loans. A report. – (Mint Jun 29, 2016 pp 1, 2)

SMALL SCALE INDUSTRY

MSMEs"Making India: 40 million units', 100 million people's big wait for a national policy" – But Govt already

on move to push the sector, crucial for 'Make in India' mission. A report. – (HBL Jun 30, 2016 p 21)

MUDRA YOJANA– MSMEs

"Hassle-free finance turning into a reality" – Under the Pradhan Mantri MUDRA Yojana, banks and MFIstogether surpassed the lending target by Rs.10,767 crore in FY 2016. A report. – (HBL Jun 30, 2016 p 21)

SIDBI"SIDBI targets Rs.1,80,000-cr disbursal under MUDRA scheme" – Central refinance agency Small

Industries Development Bank of India (SIDBI) is targeting total disbursal of Rs.1,80,000 crore under theMicro Units Development and Refinancing Agency (Mudra) ecosystem during 2016-17. A report. – (BS Jun25, 2016 p 4)

SMEs– MANUFACTURING

Sharma, Surender – "SMEs backbone of manufacturing vision" – An article. – (ET Jun 30, 2016 p 6)

– 16 –

INTERNATIONAL ECONOMICS"India is now the most heavily hyped emerging economy" – Ruchir Sharma, Head of Emerging Markets

at Morgan Stanley, chats with presidents as well as villagers to discern the economic future of nations. His2012 book Breakout Nations became a runaway international bestseller, and he offers an updated analysis inhis new book The Rise and Fall of Nations: Ten Rules of Change in the Post-Crisis World. Swagato Gangulyasked him how the 2008 financial crisis shapes the world today, and on India's place in it. – (TI Jun 25, 2016p 16)

Datta, Devangshu – "Repercussions of Brexit and Rexit" – While the UK will possibly go into recession,the bigger fear is copycat referendums from other EU nations. Back home, Raghuram Rajan's successor atMint Road will have his or her work cut out. An article. – (BS Jun 27, 2016 p 8)

UK - BREXIT– EUROPEAN UNION

"BREXIT aftershock: UK vote adds more uncertainty to global economy" – The most immediateeffects will be felt in Britain, but economists say the ripples could be felt much farther afield. A report.– (Mint Jun 25, 2016 p 9)

"Brexit tremors" – Britain has voted to leave the European Union, causing jitters across financial markets.The referendum has put the country's economy into deep uncertainty and its attractiveness to investors underquestion. Britain's economy is likely to be hit as the UK government and the IMF estimate that GDP growthcould be lower by anywhere between 1% to 3% in short term. Given that the EU is the main trading partnerof the UK - 47% of UK exports go to the EU - the immediate impact will be on trade. The bigger hit willcome from a substantial reduction in foreign direct investment as the overall stock of FDI in the UK economyis estimated to be around 50-60% of GDP, according to a HDFC Bank note. The impact of Brexit will not belimited to the UK only. Britain's exit from the EU will also affect the global economy, which is already goingthrough a bad patch. The IMF has already curtailed its global growth forecast this year, projecting 3.2% thisApril, down from 3.8% projected in April last year. A graphical report. – (FE Jun 25, 2016 p 11)

"EU loses 1 GB, Cameron his job, and Sensex 604 pts: But Jaitley says India can fight Brexit fires"– An historic vote for Britain to exit the European Union caused the tectonic plates of the European politicaland financial systems to shift, setting off sharp tremors around the world financial markets, including in India.The 'Brexit' vote, which blind-sided most market analysts and pollsters, sent stock markets from Tokyo all theway around the world to Wall Street plunging; currency markets too were in turmoil, with the pound sterlingcollapsing to a 30-year low against the US dollar. India was not immune to the shock: the Sensex tanked byover 1,000 points in early trade and the rupee touched a low of 68.22 against the dollar. They subsequentlyrecovered, with the Sensex closing 604 points down and the rupee closing at 67.96. A report. – (HBL Jun 25,2016 p 1)

Aiyar, Swaminathan S Anklesaria – "EUOOOOOOOPS - Centre has failed, so bye liberalism & hellojingoism: Brexit may mean end of globalisation. With xenophobes around, stormy days lie ahead"– Brexit heralds not just Britain's exit from the European Union but the decline and maybe fall of the 20thcentury ideal of a liberal, globalised world. It heralds a 21st century ethos based on ultra-nationalism andracist xenophobia, blaming foreigners and minorities for all ills, and claiming against all logic and humanismthat turning your back on the world will somehow bring back a golden past. An article. – (ET Jun 25, 2016 p 1)

Bhandari, Rishabh – "Brexit's aftershocks: EU must confront its failures, far right movements inEurope will become stronger" – The truth is that while Boris Johnson and Michael Gove raised thedreamy prospect of a liberal economic approach and an open outlook unencumbered by Brussels, this idealisticposture wasn't the basis on which the debate turned in their favour. Rather, it was a crude anti-immigrationcampaign that resonated with sections of the electorate that despise globalisation and prefer isolation. Anarticle. – (IE Jun 27, 2016 p 8)

Rachman, Gideon – "The making of a global crisis" – For more than 40 years, British politicians wereinstrumental in shaping a liberal world order. But Britain's exit from the EU now threatens to undermine theglobalised economy it fought to create. An article. – (FT Jun 25, 2016 p 11)

– 17 –

Schuman, Michael – "Who wins from Brexit? China" – An article. – (Mint Jun 28, 2016 p 31)

USA"IMF cuts US growth forecast, urges 'Very Gradual' interest rate hikes: Fund says US to grow 2.2%

this year, down from 2.4% in April" – The International Monetary Fund cut its forecast for U.S. growththis year, urging the Federal Reserve to lean toward modestly overshooting its inflation target in consideringwhether the economy can handle higher interest rates. – (ET Jun 24, 2016 p 11)

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Jun 27, 2016 Supl. pp 1-16)

HUMAN CAPITAL"WEF report: Human capital index: India ranks a low 105th; Finland at the top" – India was today

ranked low at 105th position globally on a worldwide Human Capital Index, which measures countries' abilityto nurture, develop and deploy talent for economic growth and was topped by Finland. India ranks muchbelow China's 71st position while Bangladesh, Bhutan and Sri Lanka are also placed higher on the indexreleased by Geneva-based World Economic Forum (WEF). A report. – (HBL Jun 29, 2016 p 22)

IMFSmith, Noah – "The myth of austerity and growth" – The IMF's policy advice is always one step behind the

pace of global events, it's worth asking whether it should reduce the amount of advice it gives to borrowernations. An article. – (Mint Jun 24, 2016 p 31)

LABOUR & PERSONNEL MANAGEMENT

SEVENTH PAY COMMISSION"Cabinet okays higher pay, pensions: increased allowances suggested by pay panel deferred" – The

Cabinet approved recommendations of the Seventh Pay Commission on pay and pensions in a decision thatwill boost consumption by putting extra disposable income in the hands of the central government's 4.7 millionemployees and 5.3 pensioners. A report. – (BS Jun 30, 2016 p 1)

MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITY"Funding academics: Companies use CSR to promote research" – Apart from funding scholarships, the

idea of promoting centres of excellence is fast gaining traction. A report. – (Mint Jun24, 2016 p 22)

MANAGEMENT EDUCATION– LEADERSHIP

"Rajan's leadership skills to be topic of discussion at Gurgaon B-School MDI" – Raghuram Rajan mayhave decided against seeking a second term as RBI governor but his work has already inspired Gurgaonbased Business School Management Development Institute to introduce discussions on his action-centricand uncompromising leadership for the benefit of students. A report. – (ET Jun 30, 2016 p 5)

BANKERS' BRIEFAn Online Weekly News and Views Digest

Subscription / Renewal Form

Annual Subscription Rates

Individual : Rs. 375.00 Institutional Rs : 500.00

I wish to subscribe/renew for Bankers' Brief (An Online Service) as per your terms andconditions for the following period: to

My Mailing Address:

Name :

Address :

City : State : Pin:

Mobile : Email :

Kindly remit/send subscription amount by ECS/Demand Draft/at par cheque. Pleasefind enclosed/remitted DD/at par Cheque/UTR No.dated drawn onin favour of "National Institute of Bank Management", and payable at Pune.

Mode of Subscribing/Renewing

The subscription amount may preferably be transferred by RTGS/NEFT/ECS to ourCurrent A/c No.20002400021 with Bank of Maharashtra, NIBM Branch, Pune(IFSC Code MAHB0001124)

For all electronic remittances, kindly send a confirmatory e-mail at: john@nibmindia.org giving transaction UTR No. and other details of the payments.

In case the amount is remitted by Demand Draft or at par cheque, it should be drawnin favour of "National Institute of Bank Management", and payable at Pune.

Please remember to mention your old subscription number for renewal.

Address all your Subscription related communication to:

Publications OfficerNational Institute of Bank Management

NIBM PO, Kondhwe Khurd, Pune 411 048 (India)Telephone: 0091-20-26716000 (EPABX) Direct: 26716537

Fax: 0091-20-26834478 Website: www.nibmindia.org

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

Annual Subscription Rate : One year Rs.225.00 Two years Rs.375.00 Three years Rs. 550.00

Areas of Publications Agricultural & Rural Development International Finance

Banking Management, Planning and Control

Computer & Systems Monetary Economics

Foreign Trade Operational Banking

Human Resource Management/HRD

(For details visit NIBM Website : http://www.nibmindia.org)

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: 26716537 Fax : 0091-20-26834478Website : http://www.nibmindia.org

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)