Volume XXXIV Number 19 February 04, 2019

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 3

C. AGRICULTURE & RURAL DEVELOPMENT 13

D. INDUSTRY 14

E. SMALL SCALE INDUSTRY 14

F. INTERNATIONAL ECONOMICS 15

G. MANAGEMENT 15

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BANKERS' BRIEF Vol. XXXIV No. 19February 04, 2019

ECONOMY"Economy is slowing, Mint's Macro Tracker shows: The NDA government's temptation to loosen

its fiscal purse strings in the upcoming Union budget has perhaps never been greater than it istoday" – The Union budget 2019 will be presented at a time when the economy is losing momentum. That'sthe central message from the latest update of the Mint Macro Tracker, launched in October to provide acomprehensive view of 16 high-frequency economic indicators. A report. – (Mint Jan 30, 2019 p 3)

"Govt should find permanent funding for UBI, not one-off financing such as RBI's resources"– Edited excerpts from an interview with Arvind Subramanian, former chief economic adviser. He says thatthe agrarian crisis has created a political opportunity for a quasi universal basic income (UBI).– (Mint Jan 31, 2019 p 19)

"India on way to becoming 5th largest economy in world: Modi" – Prime Minister Narendra Modi saidIndia is on the way to becoming the fifth largest economy in the world and the government is taking reformmeasures on a "daily basis" to further improve investment climate in the country. India is the world's fastest-growing major economy and the government is committed to building a ''New India'' with next generationinfrastructure. A report. – (BS Jan 26, 2019 p 5)

"Needed, a growth obsession" – Excerpts from an interview with Uday Kotak, MD & CEO, Kotak MahindraBank. India can clock 9-10 per cent growth - and needs to for the next 20 years to catch up with China -reckons. Also he said that banking is the most dangerous and toughest of all businesses.– (HBL Jan 28, 2019 Pt. II p 12)

"Reform measures can enhance growth by 1%: PM's Economic Advisory Council" – Reforms designedto address structural problems in the economy can enhance growth rate by one per cent, according to theEconomic Advisory Council to the Prime Minister (EAC-PM). "India's growth is expected to be in the 7-7.5per cent range in the next few years, one of the fastest in the world. However, with reforms designated toaddress structural problems, growth rates can easily be enhanced by at least 1 per cent," an official statementsaid after the EAC-PM met to take stock of the state of the economy. A report. – (HBL Jan 26, 2019 p 5)

"State of growth: Where are the jobs?" – Twelve of the 17 non-special states have managed to buck thetrend of slowdown afflicting the national GDP, registering faster growth in FY18 compared to the fiveprevious years. But, growth hasn't been equitable, a CRISIL analysis notes, given low-income states havenot been able to sustain the momentum to meaningfully bridge the per capita income gap with high-incomeones. In fact, the gap has widened. Growth has also not translated into job creation - 11 of the 17 non-specialcategory states recorded lower job growth than the national average in 'employment-intensive' sectors likemanufacturing, construction and trade. A report. – (FE Jan 26, 2019 p 9)

"The 7% growth that we've achieved" – Excerpts from an interview with Dr Raghuram Rajan, formerGovernor, Reserve Bank of India. Since its inception in 1935, the Reserve Bank of India has been at theforefront of building a robust and reliable financial framework for the country. Over the decades, there havebeen many Governors who have demonstrated sterling leadership and steered the RBI through periods ofeconomic downturns and fiscal crises. Dr Raghuram Rajan was one such Governor under whose stewardshipthe RBI broke new ground. Rajan to get his views on a wide range of issues, including the need for the nextwave of economic reforms, the reality of India's ease of doing business ranking and consolidation in thebanking sector. – (HBL Jan 28, 2019 Pt. II p 9)

"The interim budget should confine itself only to the statement of account, says Rangarajan" – Editedexcerpts from an interview with Dr C Rangarajan, former Governor, Reserve Bank of India. He spoke abouta host of issues, including the excess reserves of the central bank and the possible announcement of a farmpackage at the interim budget. In a sense, a convention has developed over time of limiting the budget tosimple statement of account on revenues and expenditure. The order of magnitude of funds that are requiredfor any universal basic income is very large and without acting on subsidies it would be impossible to introduceany of those schemes. – (Mint Jan 25, 2019 p 12)

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"There'll be a shortfall in overall tax collections this fiscal year, says Citi's Samiran Chakraborty" –Edited excerpts from an interview with Pranjul Bhandari, chief India economist of HSBC, and SamiranChakraborty, chief India economist, Citi, believe that there will be a shortfall of Rs.1 trillion in total indirecttax collection in fiscal 2019. For FY19 we think the fiscal deficit target of 3.3% will be met. For FY20, theywill slip a bit. Instead of 3.1%, we have 3.3% penciled in, says Bhandari. The total spend on rural developmentand agriculture is 1% of GDP; so, even if you have a 25-30% increase, it would be pretty manageable, saysChakraborty. – (Mint Jan 29, 2019 p 10)

Bhargava, R C – "India is an economic powerhouse in the making" – An article.– (HBL Jan 28, 2019 Pt. II p 13)

Bhoi, Barendra Kumar – "Structural reforms must continue" – Though India's macroeconomic indicatorsare fairly sound, progress on the productivity and job fronts are lagging. An article. – (HBL Jan 29, 2019 p 8)

Lokeshwarri, S K – "On the fast lane, but miles to go" – Despite being the sixth largest economy in GDPsize, the country needs to cover a lot of track for a healthier future. An article.– (HBL Jan 28, 2019 Pt. II p 9)

BUDGET 2019-20"Dear finance minister, here is what we want from the budget" – The interim Union budget for 2019-20

is set in very interesting circumstances; some would say exceptional. The politics underlying the budget areas important as the economic blueprint it will unveil. An exceptional panel of economists comprising ArvindVirmani, former chief economic advisor, chairman of EGROW Foundation and the original proponent of theidea of Aadhaar; Indira Rajaraman, economist, former member of the 13th Finance Commission; and Himanshu,assistant professor at Jawaharlal Nehru University (JNU) participated in a discussion. Edited excerpts froma roundtable discussion. – (Mint Jan 31, 2019 pp 14-15)

EMPLOYMENT/UNEMPLOYMENT"Over 18 mn jobs created in 15 mths till Nov 2018: CSO report" – More than 18 million jobs were

generated by the country's formal sector in a 15-month period starting September 2017 and ending November2018, suggests a study based on payroll data of retirement fund body EPFO, PFRDA and Employees' StateInsurance Corporation (ESIC). – (IE Jan 26, 2019 p 12)

"Unemployment rate at five-decade high: NSSO" – The country's unemployment rate stood at a five-decade high of 6.1 per cent in 2017-18, according to the National Sample Survey Office's (NSSO's) periodiclabour force survey (PLFS). The report is at the centre of a controversy after two National StatisticalCommission (NSC) members, including acting chairman, resigned, alleging that the government had withheldits release despite the NSC's approval. A report. – (BS Jan 31, 2019 pp 1, 6)

FIFTEENTH FINANCE COMMISSION"We will reward efficiency while recognising equity" – Edited excerpts from an interview with N K Singh,

Chairman, 15th Finance Commission. – (HT Jan 30, 2019 p 7)

INFLATIONAgarwal, Anuj – "What inflation is RBI impacting?" – Barring food and fuel, some categories of the core

CPI basket may not be responsive to RBI policy. Certain categories within core inflation seem to havedominance of supply-side factors. Demand in such categories is relatively inelastic and fails to respondeffectively to price increases. In other cases, the market structure allows for imperfect competition andarbitrary pricing. Consumers are left with no choice but to pay higher prices. All this makes around 30% ofthe core inflation relatively ineffective to monetary policy. An article. – (FE Jan 28, 2019 p 7)

UNIVERSAL BASIC INCOME SCHEMEMaira, Arun – "Think universal basic capital" – A simplistic universal basic income will not solve the

fundamental problems of the economy. An article. – (H Jan 30, 2019 p 8)

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Mehra, Puja – "The case for minimum basic income" – It will improve equity, address rural distress andcover the urban poor. An article. – (H Jan 31, 2019 p 9)

Rajadhyaksha, Niranjan – "Guaranteed basic income is not a solution to mass poverty" – Let economicgrowth work for the top eight income deciles, and govt welfare spending focus on the bottom two. An article.– (Mint Jan 30, 2019 p 17)

BANKING"FM meets bank chiefs: Govt may infuse Rs.54,000 cr in Feb: Banks to lend support to MSMEs,

housing & agri; RBI guv not for undue conservatism." – The government has indicated to state-runbanks that it will finalise the infusion of over Rs.54,000 crore into public sector banks (PSBs) once theirresults for the December quarter are out in February, according to banking sources. The move is part of thegovernment's proposed Rs.1.06-lakh-crore infusion into capital starved PSBs in FY19, against Rs.88,139crore a year before. It already provided Rs.51,533 crore to a clutch of state-run banks by end-December. Areport. – (FE Jan 29, 2019 pp 1, 2)

Bandyopadhyay, Tamal – "The three musketeers of Indian banking: Both Jayakumar and Vaidyanathanare on the cusp of making history while for Ghosh it is compulsion" – What do P S Jayakumar, VVaidyanathan and Chandra Shekhar Ghosh have in common? Well, the trio is currently anchoring the threemost interesting mergers in Indian banking. Bandhan Bank Ltd, headed by Ghosh, has announced taking overGruh Finance Ltd, a subsidiary of Housing Development Finance Corp Ltd (HDFC), while Vaidyanathan'sCapital First Ltd has already been merged with IDFC Bank Ltd, and two relatively small public sector banks- Dena Bank and Vijaya Bank - are being merged with Jayakumar's Bank of Baroda (BoB). An article.– (BS Jan 28, 2019 p 8)

Bose, Prasenjit – "Banking sector not yet out of the woods" – The NDA regime has been characterisedby a steep rise in NPAs and frauds, and a misguided view of 'corrective action'. An article.– (HBL Jan 25, 2019 p 7)

Kumar, Rajnish – "Bankers ready for the next challenge" – An article. – (HBL Jan 28, 2019 Pt. II p 12)

Merwin, Radhika – "Banks need a lending hand" – A long spell of economic slowdown and stretchedcorporate balance sheets have left the sector weak. An article. – (HBL Jan 28, 2019 Pt. II p 12)

AXIS BANK"Axis Bank Ltd.: Unaudited financial results for the quarter and nine months ended 31st December,

2018" – An advertisement feature. – (ET Jan 30, 2019 p 4)

"Axis Bank net more than doubles on rise in non-interest income" – Private-sector lender Axis Bankreported an impressive 131% year-on-year increase in net profit to Rs.1,681 crore in Q3FY19 despite makinga contingency provision of Rs.600 crore. However, provisions grew 8.64% y-o-y to Rs.3,054 crore on accountof contingent provisions made by the bank. – (FE Jan 30, 2019 p 10)

"We'll have to be conservative on corporate loans" – Edited excerpts from an interview with AmitabhChaudhry, MD and CEO, Axis Bank. – (BS Jan 31, 2019 p 2)

BANK OF BARODA"Bank of Baroda launches new savings products for woman and senior citizens" – Bank of Baroda,

Leading Public Sector Bank has launched two new Savings Bank Schemes namely Baroda Mahila ShaktiSavings Account and Baroda Senior Citizen Privilege Savings Account at the hands of Sri P S Jayakumar,MD & CEO and Sri S L Jain, Executive Director. – (BS Jan 29, 2019 p 6)

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"Bank of Baroda-IIT Bombay partner to set up Innovation Centre at IIT Mumbai campus" – Bank ofBaroda, one of India's most trusted public sector banks has announced collaboration with IIT Bombay forestablishing IIT Bombay - Bank of Baroda Innovation Centre at the IIT, Mumbai campus. In a first of its kindpartnership, Bank of Baroda and IIT Bombay will jointly establish the FINance and TECHnology InnovationCentre with a vision to create an avenue for spurring novel solutions to address the challenges and explorethe opportunities in the BFSI space. – (BS Jan 29, 2019 p 6)

"Bank of Baroda: Unaudited financial results for the quarter/nine months ended 31st December,2018" – An advertisement feature. – (BS Jan 30, 2019 p 5)

"BoB Q3 profit jumps fourfold to Rs.471 cr" – Public sector lender Bank of Baroda (BoB) reported anover four-fold jump in net profit at Rs.471.25 crore for the third quarter ended December 2018. The bank hadlogged a net profit of Rs.111.78 crore in October-December 2017. Total income in the reported quarterincreased at Rs.14,562.85 crore as compared to Rs.12,976.28 crore in the year-ago period.– (FE Jan 30, 2019 p 10)

"Expect to maintain 15-20% loan growth: BoB's Jayakumar" – Edited excerpts from an interview withP S Jayakumar, MD and CEO, Bank of Baroda. He says it can continue to be at the level of 15-20% level ofgrowth in domestic credit. – (Mint Jan 31, 2019 p 19)

"MSE loans: BoB aims to cover every district with specialised branches: Will be offered under StandUp India, Pradhan Mantri Mudra Yojana schemes" – Bank of Baroda (BoB) plans to roll out specialisedbranches in each district of the country to cater to the credit requirements of micro and small enterprises(MSE) under the Pradhan Mantri Mudra Yojana and Stand Up India schemes. – (HBL Jan 26, 2019 p 7)

BANK OF INDIA"Bank of India: Reviewed financial results for the quarter/nine months ended 31st December, 2018"

– An advertisement feature. – (BS Jan 29, 2019 p 13)

"In the Red: BoI's Q3 loss widens as NPA provisioning soars: Net loss touches Rs.4,737.56 crore;bad loan provisions jump almost twofold; gross NPAs drop marginally" – State-owned Bank of Indiareported widening of its net loss to Rs.4,737.56 crore in the third quarter ended December 2018, hit by nearlytwo-fold jump in provisioning for bad loans. Its net loss was Rs.2,341.20 crore in the October-Decemberperiod of 2017-18. Total income of the bank, however, rose to Rs.11,839.53 crore during the reported quarterof 2018-19, as against Rs.10,376.03 crore in the same period a year ago. – (FE Jan 29, 2019 p 10)

CANARA BANK"Canara Bank profit jumps over twofold in third quarter" – Public sector lender Canara Bank Monday

reported over twofold jump in net profit at Rs.317.52 crore for December quarter 2018 as provisioning forbad loans declined. The bank had logged a net profit of Rs.125.75 crore in October-December 2017. Totalincome in the reported quarter stood at Rs.13,513.35 crore as compared to Rs.12,341.09 crore in the year-ago period. The bank's asset quality improved a tad with gross non-performing assets falling to 10.25% ofgross loans. – (FE Jan 29, 2019 p 10)

"Canara Bank: Reviewed financial results for the quarter and nine months ended 31st December,2018" – An advertisement feature. – (BS Jan 29, 2019 p 16)

CITY UNION BANK"City Union Bank Ltd.: Reviewed financial results for the quarter/nine months ended 31st December,

2018" – An advertisement feature. – (HBL Jan 29, 2019 p 3)

"City Union Bank Q3 profit rises 15%" – Net profit of City Union Bank (CUB) rose by 15 per cent toRs.178.10 crore in the third quarter of FY19 against the Rs.154.80 crore the lender recorded in the sameperiod last year. – (HBL Jan 29, 2019 p 6)

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FEDERAL BANK"Sadarangani is new Federal Bank Chairman" – Dilip Sadarangani has been appointed as part-time Chairman

of Federal Bank. The bank has received approval from the RBI for the appointment. He has been on theFederal Bank board since 2013. – (IE Jan 28, 2019 p 12)

ICICI BANK"BN Srikrishna Panel probe: 'Guilty' Chanda Kochhar sacked by ICICI Bank: Bank to revoke future

entitlements, past bonuses of Rs.10 crore" – There's more trouble brewing for former ICICI Bank MDand CEO Chanda Kochhar. The BN Srikrishna enquiry committee, set up by the bank, has said she violatedthe lender's code of conduct and framework on conflict of interest. The committee has also flagged the lackof disclosures on her part, which made the bank's processes ineffective. Following the findings of the committee,the board has decided to treat her resignation as a termination and revoked all her existing and future entitlements.Kochhar had taken an early retirement last October. A report. – (HBL Jan 31, 2019 p 1)

"Cheating, default" – CBI has taken first step in ICICI bank case. Wider implications arising out of this casewill test the agency's mettle. An editorial. – (IE Jan 26, 2019 p 8)

"Earnings call: ICICI Bank Q3 profit falls 2.7% as provisions bite" – ICICI Bank reported a fall in netprofits of 2.7% year-on-year (y-o-y) in Q3FY19, to Rs.1,605 crore, led by an increase in its provisions. Thenet profit in Q3FY18 was Rs.1,650 crore. Operationally, the private-sector lender fared well as the netinterest income (NII) rose 20.5% y-o-y to Rs.6,875. NII is the difference between interest earned andinterest paid by a bank. The net interest margin (NIM) rose 26 basis points (bps) to 3.4%. The lender's pre-provisioning profit grew at a fairly good 21.5% y-o-y to Rs.6,146 crore. A report. – (FE Jan 31, 2019 p 10)

"ICICI Bank loans to Videocon Group: CBI files FIRs against Chanda and Deepak Kochhar,Venugopal Dhoot: Videocon, NuPower offices in Mumbai, Aurangabad searched" – The CBI hasregistered an FIR against several entities and persons, including former ICICI Bank MD and CEO ChandaKochhar, her husband Deepak Kochhar and Videocon Group MD Venugopal Dhoot, for alleged irregularitiesin loans sanctioned in 2012. A report. – (HBL Jan 25, 2019 p 1)

"ICICI Bank now distances itself from Kochhar" – Amid multiple probes against ICICI Bank's formermanaging director and chief executive officer Chanda Kochhar, the private sector lender has urged theSecurities and Exchange Board of India not to club its inquiry against her with that against the bank andsought a separate investigation. On January 10, ICICI Bank wrote to Sebi, seeking 'decoupling of the bank'sproceedings' from hers (Chanda) as the issues were different, said a source privy to the communique. Areport. – (BS Jan 26, 2019 pp 1, 10)

"ICICI Bank: Unconsolidated financial results for the quarter and nine months ended December 31,2018" – An advertisement feature – (BS Jan 31, 2019 p 5)

"Quid pro quo in ICICI Bank issue not established: Bank was part of a lender consortium to Videocon:RBI" – The Central Bureau of Investigation's (CBI) FIR alleging criminal conspiracy and cheating in loansextended by the ICICI Bank to the Videocon Group does not appear to have factored in a key point flaggedby the central bank in its initial probe into the allegations of misdemeanour in extending the loans. A report.– (H Jan 26, 2019 p 13)

Iyer, Aparna – "ICICI Bank not kosher yet, despite good December quarter metrics" – An ongoingprobe by CBI will act as an overhang as it reportedly involves the current leadership as well. An article.– (Mint Jan 31, 2019 p 4)

Sabarinathan, G – "How the mighty have fallen" – The Chanda Kochhar affair should be a wake-up callfor ICICI Bank to do some serious introspection. An article. – (HBL Jan 26, 2019 p 6)

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IDBI BANK"IDBI Bank will remain promoter of IDBI Federal Life Insurance" – Insurance regulator Irdai will allow

IDBI Federal Life Insurance to continue with its existing promoter IDBI Bank even after the Life InsuranceCorporation (LIC) has picked up 51 per cent in the bank. An Irdai official said that LIC, with its higher stakein IDBI Bank, is still an investor and not a promoter of the bank, as the regulator will ask LIC to lower itsstake in IDBI Bank from 51 per cent. – (IE Jan 25, 2019 p 14)

INDIAN BANK"Indian Bank: Reviewed financial results (standalone) for the quarter/nine months ended December

31, 2018" – An advertisement feature. – (BS Jan 26, 2019 p 1)

"Under stress: Indian Bank Q3 net falls 50% on IL&FS exposure" – Bank MD says a Rs.664-crIL&FS loan portion is facing some issues because it is under consideration of the government and RBI.Provisioning for IL&FS loans and other sticky assets has hit the bottom line of Chennai-based Indian Bankwith the public sector lender registering a 49.8% decline in its net profit at Rs.152 crore for the third quarterof FY19 compared to Rs.303 crore in the same quarter previous fiscal. – (FE Jan 26, 2019 p 10)

INDIAN OVERSEAS BANK (IOB)"Indian Overseas Bank: Unaudited (reviewed) financial results for the quarter/nine months ended

31st December 2018" – An advertisement feature. – (BS Jan 26, 2019 p 13)

"IOB pares net loss by 64% at Rs.346 crore" – Bank has recovered Rs.121 cr in NCLT accounts duringQ3. It expects recovery of Rs.988 crore in the current quarter in 8 NCLT accounts. Public sector lenderIndian Overseas Bank (IOB) reported a net loss of Rs.346.02 crore for the third quarter of FY19 comparedto Rs.971.17 crore loss logged in the same quarter of the last fiscal, reducing the loss by 64.37%. Totalincome of the Chennai-based bank registered an increase of 12.39% at Rs.5,689 crore against Rs.5,062crore for the quarter ended December 31, 2017. – (FE Jan 26, 2019 p 10)

JAMMU & KASHMIR BANK"J&K Bank chairman inaugurates one-of-a-kind digital banking lobby" – Chairman and CEO J&K

Bank, Parvez Ahmed inaugurated a one-of-a-kind digital banking lobby- the Apex Digital Lobby in the corporateheadquarters of the Bank at Srinagar. Equipped with state-of-the-art technology, the digital lobby wouldprovide digital products and services at par with the best in the industry and includes sophisticated machineslike Interactive Banking Kiosk for providing comprehensive information about banking products and services,Cash Recycler for accepting and withdrawing cash, Cheque Drop Machine for collection of cheques whichgenerates the image of the cheque along with time stamp, POS Terminals for bill payments, PassbookPrinting Kiosk for swift printing of barcode specific passbooks, Mobile Application, mPay for providingenhanced transactional features and a kiosk with easy collect facility. – (BS Jan 25, 2019 p 6)

KARNATAKA BANK"Karnataka Bank hikes deposit rate" – Karnataka Bank has increased the rate of interest on its 'KBL - Tax

Planner' deposit scheme. A press release said here the rate of interest on KBL - Tax Planner for five yearshas been increased from 7 per cent to 7.5 per cent with effect from January 30. Resident senior citizens areeligible for additional 0.50 per cent interest over the general rate. – (HBL Jan 31, 2019 p 6)

KOTAK MAHINDRA BANK"Kotak Mahindra Bank rating Neutral: Accelerating loan growth drove sound show" – FY19/20e

consol. PAT up 1.4/2.3%; bank is expected to gain market share with improving profitability; TP revised toRs.1,350. A report. – (FE Jan 28, 2019 p 9)

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ORIENTAL BANK OF COMMERCE"Oriental Bank of Commerce: Extracts of reviewed financial results for the quarter/nine months

ended December 31, 2018" – An advertisement feature. – (Mint Jan 30, 2019 p 3)

"Oriental Bank posts Rs.145-cr net in Q3" – State-owned Oriental Bank of Commerce (OBC) reported anet profit of Rs.145 crore for the December 2018 quarter, on improvement in asset quality and increase inbusiness efficiency. It had posted a net loss of Rs.1,985 crore in the corresponding quarter of the previousfinancial year. – (FE Jan 30, 2019 p 10)

PUNJAB NATIONAL BANK"PNB appoints A K Azad as executive director" – Punjab National bank has announced the appointment of

Agyey Kumar Azad as Executive Director of the bank w.e.f. January 22, 2019. A K Azad joins the bank withan experience of over 3 decades in the banking industry and will be leading credit, MSME and Retail portfolioof the bank. – (FE Jan 26, 2019 p 10)

– BANKING ABROAD

"PNB's UK subsidiary loses Rs.320 cr fraud case" – The UK subsidiary of Punjab National Bank (PNB)has lost a Rs.320 crore ($45 million) case in the high court here in which the judge blasted the bank formaking a fraudulent misrepresentation claim against nine recipients of its loans that "was so abstract it wastotally inadequate". A report. – (TI Jan 25, 2019 p 18)

– FRAUDS

Mohan, Raghu – "Tinker, banker, sundry, spy" – A year after the blow-out at PNB, it's still a big blind spoton the country's biggest banking whodunit. An article. – (BS Jan 30, 2019 p 11)

RBL BANK"Higher margins, advances push RBL Bank net up 36% to Rs.225 cr in Dec qtr" – Small-sized private

sector lender RBL Bank reported a 36 per cent growth in the December quarter net at Rs.225.2 crore,helped by margin expansion and also healthy growth in across income lines. The core net interest grew at ahealthy 40 per cent at Rs.655.1 crore, boosted by higher margin which touched 4.12 per cent from 3.89 percent and a 35 per cent loan growth, while other income clipped past 45 per cent to Rs.374.1 crore onimprovement in fee lines. – (FE Jan 29, 2019 p 10)

"RBL Bank Ltd.: Standalone unaudited financial results for the quarter and nine months endedDecember 31, 2018" – An advertisement feature. – (BS Jan 29, 2019 p 5)

"RBL's asset quality is stable, no singular cause for worry" – Edited excerpts from an interview withVishwavir Ahuja, Chief Executive, RBL Bank. He said provision coverage ratio is likely to go up to 65% toensure that the bank is well covered. – (ET Jan 29, 2019 p 14)

STATE BANK OF INDIA– JET AIRWAYS

"Debt-equity swap: SBI set to control 15% of Jet" – Debt-ridden Jet Airways may soon get some respite.State Bank of India is set to swap part of its loans into a stake of at least 15 per cent in the airline, accordingto people with knowledge of the matter. Other creditors to the carrier also plan similar conversions of somedebt into equity to help keep the carrier alive. A report. – (HBL Jan 30, 2019 p 1)

– POWER SECTOR NPAs RESOLUTION

"SAMADHAN inches towards no resolution; assets could land in NCLT" – The reluctance of lendersto approve resolution plans, the lack of a consensus over valuing stressed assets, and the paucity of cash-richbuyers are likely to push close to 15 power assets towards insolvency. Samadhan - the flagship scheme bySBI for resolving stressed assets outside the NCLT - is going into a maze. Some lenders, like state-ownedPower Finance Corporation, say most assets should be sent to the NCLT. A report. – (BS Jan 25, 2019 p 4)

– 8 –

– SALE OF NPAs

"Rs.15,431 all-cash deal: SBI pushes back sale of Essar Steel exposure after NCLAT order" – TheNCLAT has further stated that in case the NCLT bench fails to pass an order by January 31, it would call forthe matter and pass an order accordingly on the next date of hearing, scheduled for February 4. State Bankof India pushed back the sale of its Rs.15,431 crore exposure to Essar Steel India on full-cash basis toFebruary 11, against the earlier scheduled auction date of January 30. – (FE Jan 25, 2019 p 10)

UNION BANK OF INDIA"Union Bank of India opens centralized processing cell" – Union Bank of India opens centralized processing

cell named Union Samriddhi Kendra at Pune for accelerated Credit Flow to Agriculture, MSME and RetailSector with focus on Rural and Semi Urban Areas. – (BS Jan 31, 2019 p 6)

YES BANK"Enthused by Gill's arrival, analysts favour Yes Bank: Overhang could stay because of pending RBI

audit report and likely changes in bank's strategy" – Brokerages gave a thumbs-up to Yes Bank'sappointment of Ravneet Gill as managing director and chief executive officer as it removes uncertainty oversuccession. Almost 70% of the analysts favour the stock, according to Bloomberg consensus ratings butmany believe that overhang on the stock could remain even as the succession overhang is over. A report.– (ET Jan 26, 2019 p 6)

"Ravneet Gill to take over as YES Bank MD & CEO" – Yes Bank announced the appointment of RavneetGill as its new MD and CEO, with effect from March 1. Gill, who will succeed YES Bank founder RanaKapoor, has been the CEO of Deutsche Bank's India operations since 2012. A report.– (HBL Jan 25, 2019 p 1)

"Yes Bank net falls 7% in Q3" – Yes Bank reported a year-on-year dip in net profits to Rs.1001.8 crore forthe quarter that ended December 2018. In Q3FY18, the private sector bank had posted profits of Rs.1,077crore. The muted profits in Q3FY19 were the result in part of accelerated provisioning for the exposure tothe IL&FS Group. The lender also reported a drop in non-interest income. – (FE Jan 25, 2019 p 10)

"Yes Bank's promoters reach truce; to nominate one director each on board: Bank may appoint AjaiKumar as interim MD/CEO" – In a clear signal that YES Bank promoters have buried the hatchet, RanaKapoor and Madhu Kapur have decided to nominate one representative director each on the lender's board.The bank's board, which met on Tuesday to finalise a transition plan for the new MD and CEO Ravneet Gill,also approved and recommended to the RBI a senior board director to temporarily hold office as 'BoardDirector on Interim Special Duty' from February 1 until Gill joins in March. A report.– (HBL Jan 30, 2019 p 6)

"Yes Bank: Unaudited financial results for the quarter and nine months ended December 31, 2018"– An advertisement feature. – (Mint Jan 25, 2019 p 5)

Iyer, Aparna – "Yes Bank stock now gets its Gill to breathe in troubled waters" – The third quartermetrics show that in the absence of Rana Kapoor, Yes Bank's balance sheet growth would be just fine. Anarticle. – (Mint Jan 25, 2019 p 4)

CHINA"Why China's banks are desperate for funds" – In the past decade, China has relied primarily on credit

growth to fund its economic ambitions. The country's banks are now feeling the constraints of this lendingbinge and need to raise a lot of capital over the next couple of years. An analysis. – (HBL Jan 29, 2019 p 6)

USA– FEDERAL RESERVE

"Fed chairman needs to take care with messaging" – Jay Powell's statements have sometimes confusedfinancial markets. An editorial. – (FT Jan 30, 2019 p 8)

– 9 –

BANK LEDNING"Shed excessive conservatism: RBI governor" – The Modi government asked state-run lenders to make

overdraft facility and accident insurance for Jan Dhan accounts more attractive, even as banks promised tostep up lending under the Prime Minister Awas Yojana and to small businesses. Reserve Bank of Indiagovernor Shaktikanta Das too exhorted banks to shed "excessive conservatism", while extending loans withinthe existing prudential norms. – (TI Jan 29, 2019 p 18)

BANKERS' INVESTIGATIONS"Day after FIR against Kochhar, Jaitley slams CBI over 'adventurism'" – Union minister Arun Jaitley

on Friday hit out at the Central Bureau of Investigation (CBI) for its "investigative adventurism", a day afterthe agency booked former ICICI Bank chief executive officer (CEO) Chanda Kochhar for alleged criminalconspiracy and cheating. Is CBI embarking on a journey to nowhere (or everywhere)? asked Jaitley.– (Mint Jan 26, 2019 p 24)

BANKING REGULATOR - RBI"SC issues contempt notice to RBI for RTI non-disclosure" – The Supreme Court issued contempt

notices to the RBI for failing to reveal under the Right to Information Act intelligence received on loandefaulters and details of action taken against banks in connection with fraud. A report.– (ET Jan 26, 2019 p 11)

– AUTONOMY

Gopalan, Radhakrishnan – "The whys and what ifs of central bank autonomy" – An autonomous centralbank can fight the inflationary pressures resulting from deficit spending. An article.– (Mint Jan 25, 2019 p 21)

– BOARD LEVEL COMMITTEES

"Govt may not push for changes in board-level panels of RBI: Also moderates its stance on relaxationof prompt corrective action framework" – The government may not push for changes in board-levelcommittees of the Reserve Bank of India after the recent thaw in relationship between the two, according toa senior government official. The government had made a case for expansion and more active participationin the Board for Financial Supervision (BFS) and the Committee of the Central Board (CCB), the twoimportant committees where there is no government representation. A report. – (ET Jan 31, 2019 p 13)

– DIVIDEND

"Ahead of the presentation of interim budget on February 1: Finance ministry asks RBI: How muchdividend can you transfer?" – Indications are that the Ministry expects RBI to transfer interim surplus ofaround Rs.20,000-25,000 cr. A report. – (IE Jan 26, 2019 p 11)

BLOCKCHAIN TECHNOLOGY– PRIVATE SECTOR BANKS

"ICICI, Kotak, Axis among 11 to launch blockchain - linked funding for SMEs" – ICICI Bank, KotakMahindra Bank, HDFC Bank, and Axis Bank are among the consortium of 11 big lenders set to launch thecountry's first blockchain-linked funding for small and medium enterprises (SMEs), an initiative that is set totransform the face of lending to default-prone tiny firms. Yes Bank, Standard Chartered Bank, RBL Bank,and South Indian Bank are currently part of the consortium. IndusInd Bank, State Bank of India and Bank ofBaroda are now participating in the meetings as outside members. – (ET Jan 30, 2019 p 12)

– 10 –

COOPERATIVE BANKS– RUPEE CO-OPERATIVE BANK

"Coop commissioner writes to RBI, wants partial merger of Rupee Bank's assets" – Instead of the fullmerger, the Rupee Cooperative Bank is exploring partial merger of its assets and liabilities with the ThaneJanata Sahakari Bank (TJSB). A proposal in this regard has been sent to the Reserve Bank of India (RBI) bySatish Soni, the cooperative commissioner of the state. A report. – (IE Jan 25, 2019 Pt. II p 3)

CORPORATE INSOLVENCY RESOLUTION PROCESS"Delay in Essar Steel's resolution is costing PSU banks Rs.17 crore per day: ArcelorMittal" – Edited

excerpts from an interview with Aditya Mittal, president and group chief financial officer (CFO), AreclorMittal.He believes despite the delay, the battle for Essar Steel is headed for a "good conclusion", adding that lendersare losing around Rs.17 crore per say due to the delay in resolution. All promoters have the right to buy backtheir firms by paying back, but not 540 days later. I don't think promoter is acting in creditor's best interest. 'Ifyou look at the rules of IBC, they are very simple. The IBC process is designed to maximise value within therules of the process and that's what we have followed' – (Mint Jan 25, 2019 p 12)

"NCLT Bench rejects Ruias' offer for Essar Steel" – In a major setback for the Ruias, the promoters ofEssar Steel India Ltd (ESIL), the Ahmedabad Bench of the National Company Law Tribunal (NCLT) rejectedtheir plea seeking to be allowed to place an offer for resolution of the beleaguered steel company. A report.– (HBL Jan 30, 2019 p 1)

"Performance security a must for corporate resolution, says IBBI: Supreme Court upholds IBC inits 'entirety'" – The Insolvency and Bankruptcy Board of India (IBBI) has mandated resolution applicantsto furnish performance security in corporate insolvency process. This has been stipulated to ensure thatcorporate resolution plans, once approved, are not withdrawn on a whim. The idea is to encourage only thoseresolution applicants who are genuine, credible, and capable of submitting and implementing the resolutionplans. A report. – (HBL Jan 26, 2019 p 7)

DEPOSITS"Banks must focus on deposit growth to manage liquidity: SBI report" – The widening gap between

deposit and credit growth requires build-up of liquidity by focusing on deposit growth, which in turn could leadto hardening of interest rates next year, according to State Bank of India's research report 'Ecowrap'.– (HBL Jan 31, 2019 p 6)

"Deposits to be key differentiator among banks: Private lenders may have to cede profitability tostrengthen deposit base" – A recent note by JP Morgan stated that for banks, the system constraints shiftfrom non-performing assets to deposits. Deposit franchise will likely re-rate versus asset franchise, accordingto report. – (BS Jan 25, 2019 p 10)

FOREIGN BANKS IN INDIA– STATE BANK OF MAURITIUS

"SBM sets up subsidiary" – SBM Group, a diversified financial services provider and the second largestlisted banking institution on the Stock Exchange of Mauritius, announced the launch of SBM Bank (India)Limited which will operate as a full-fledged universal bank. SBM Bank (India) Limited becomes the firstforeign bank in India to obtain a banking licence from the Reserve Bank of India to operate as a WhollyOwned Subsidiary. – (IE Jan 26, 2019 p 12)

INSOLVENCY AND BANKRUPTCY CODE"A resounding nod: Supreme Court endorses the Insolvency and Bankruptcy Code" – An editorial.

– (BS Jan 29, 2019 p 9)

"No divine right" – Upholding of bankruptcy law by SC is welcome, will help entrench a key structuralreform. An editorial. – (IE Jan 28, 2019 p 10)

– 11 –

"Two years of IBC: Near 52% of cases end in liquidation" – Last quarter marked two years sinceprovisions relating to the corporate insolvency resolution process came into force on December 1, 2016.According to the latest newsletter from the Insolvency and Bankruptcy Board of India, 1,484 corporatedebtors have been admitted, of which 898 cases were ongoing as of the last quarter. From the 586 cases thathave seen closure, almost 302 witnessed commencement of liquidation, while 79 witnessed closure by resolution.A report. – (FE Jan 26, 2019 p 2)

Kant, Amitabh – "No pendency for insolvency: It is critical that cases before the Insolvency andBankruptcy Code don't get mired in delays" – Discretionary review powers and the powers ofinterpretation have impacted the time taken to resolve matters under IBC at the NCLT as well as the apexcourt. An article. – (ET Jan 26, 2019 p 8)

Rangan, M C Govardhana – "Bankruptcy law: It's high time we plug the loopholes" – An article.– (ET Jan 30, 2019 p 7)

Rao, K Srinivasa – "SC upholds IBC spirit: Now, make it resolution-centric instead of liquidation-centric" – Many debtors are now trying to find innovative methods to repay dues or service loans on time oreven earlier to avoid defaults. An article. – (FE Jan 30, 2019 p 9)

– DEFAULTING PROMOTERS

"Defaulters' paradise is lost" – Upholding the IBC in a landmark judgment, the Supreme Court said adistressed company's promoter cannot hid for it under the bankruptcy process. The court also clarified thatthe bar on persons related to the defaulting founders would include only those who are connected to the ailingcompany. – (HBL Jan 26, 2019 p 1)

"Upholding IBC tenets, apex court says promoters can't bid for stressed assets: But there's a ray ofhope for Essar's Ruias" – The Supreme Court on Friday upheld all the contentious provisions of theInsolvency and Bankruptcy Code (IBC) and reaffirmed the spirit of the law to ban defaulting promoters frombidding for their own assets. Delivering the judgment on a petition filed by Bhushan Power and Steel promoterSanjay Singal on Section 29A - which bans defaulting promoters from bidding for their stressed company -and a group of operational creditors, Justices R F Nariman and Navin Sinha said the provision of the bankruptcylaw is legally valid. A report. – (HBL Jan 26, 2019 pp 1,6)

– NPAs RESOLUTION

"SC boost to IBC process will mean faster resolution" – Tightening of rules on wilful defaulters welcome,and SC indicates is may not exempt power firms from Sec 12. An editorial. – (FE Jan 28, 2019 p 6)

– RECOVERY OF NPAs, DEFAULTERS

"IBC should not become another Sarfaesi Act" – Edited excerpts from an interview with Seshagiri Rao MV S, joint managing director and group chief financial officer, JSW Steel Ltd. Cases under the Insolvency andBankruptcy Code (IBC) need to be resolved in a time-bound manner, or it may go the way of the SarfaesiAct. Rao said companies are finding it difficult to access capital both locally and overseas.– (HT Jan 31, 2019 p 13)

"Three years on, bankruptcy reform languishes in courts" – When the new bankruptcy resolution ruleswere introduced in 2016, government officials and investors said they expected debt-burdened state-ownedbanks to clear up some of their bad loans and create a dynamic market in restructured debt. Almost threeyears later, those hopes have been badly dented. Litigation has tied down some big restructuring deals andbankers are starting to sell bad debts at fire sale prices rather than wait for the system to work better. Areport. – (HBL Jan 28, 2019 p 9)

INSOLVENCY RESOLUTION PROCESS"Timely NCLT resolutions can release Rs.67,000 cr to lenders, says Icra" – The number of insolvency

cases are expected to pile up over the next few quarters, timely conclusion of cases within the law mandated180-270 days can free up as much as Rs.67,000 crore to the system, says a report. – (FE Jan 30, 2019 p 11)

– 12 –

NON-PERFORMING ASSETS– NEW NORMS

"RBI may release NPA data to show effect of Feb 12 diktat: To show improvement in default datasince the stricter rule for banks came into effect" – The Reserve Bank of India (RBI) is weighing aplan to release data that would demonstrate that the number of corporates defaulting on bank loans havedipped following the central bank's stern directive on February 12 last year that had rattled large, influentialborrowers and irked many within the government. The regulator is understood to have sounded out thegovernment on the proposed move that could counter arguments of industry lobbies and defend the directiveat a time it has been challenged in the court of law. A report. – (ET Jan 28, 2019 p 7)

PROMPT CORRECTIVE ACTION"PCA norms: FinMin wants RBI to tweak the 'returns' metric: Says moderation will provide

beleaguered PSBs more operational flexibility" – The Finance Ministry has made a case with theReserve Bank of India (RBI) for tweaking the 'Return on Assets' parameter under the Prompt CorrectiveAction (PCA) framework. Any moderation in the RoA parameter could enable at least four public sectorbanks to come out of the PCA framework and allow them more operational flexibility, the Department ofFinancial Services (DFS) has submitted. A report. – (HBL Jan 30, 2019 p 14)

PUBLIC SECTOR BANKS– EMPLOYEE SHARE PURCHASE SCHEME

"Staff fret as banks ask them to buy shares: Employees also told to open demat accounts, offeredpersonal loans to purchase stock" – Several public sector banks that are coming up with EmployeesShare Purchase Schemes (ESPS) are asking their staff to buy a particular amount of shares to ensure thatthe process sails through smoothly. Over half a dozen public sector banks have started the process of employeeshare purchase schemes, while some others have completed it. Some of the banks that have announced orcompleted the process are Indian Overseas Bank, Bank of Maharashtra, Union Bank of India, SyndicateBank, Vijaya Bank, Bank of India, UCO Bank, Andhra Bank among others. A report. – (H Jan 25, 2019 p 13)

– FINANCIAL RESULTS

"Several state-owned banks will be profitable by year-end: Goyal: Stresses on MSME lending atmeeting with PSB heads" – Our Bureau the Centre is confident of several public sector banks (PSBs)turning profitable at the end of the current fiscal, according to Interim Finance Minister Piyush Goyal. All the21 PSBs recorded operating profits at the end of FY18, but due to higher provisioning, all of them, barringVijaya Bank, recorded net losses. At the end of September 2018, the PSBs together recorded an operatingprofit of Rs.36, 757 crore. Many are expected to be back in the black at the end of this fiscal. A report.– (HBL Jan 29, 2019 p 1)

– IL&FS

"PSBs were more prudent lending to IL&FS: Kotak: These entities lent against escrowed cashflows in the operating firms, says head of govt-appointed board" – Public sector banks (PSBs) havebeen far more prudent in their lending to the IL&FS Group as they lent against escrowed cash flows in theoperating companies, according to Uday Kotak, Non-Executive Chairman of the government-appointed nine-member board of directors of the beleaguered infrastructure development and finance company.– (HBL Jan 29, 2019 p 6)

– RECAPITALIZATION

"PSU banks would need another Rs.50,000 cr recapitalisation" – Public sector banks (PSBs) wouldrequire another Rs.50,000 crore fund infusion in 2019-20 to help enable credit growth of 11 per cent. InDecember 2018, the government enhanced bank recapitalisation outlay from Rs.65,000 crore to Rs.1,06,000crore for the current fiscal. As of December 2018, a total amount of Rs.51,513 crore has been infused intoPSBs. A report. – (IE Jan 30, 2019 p 20)

– 13 –

RECOVERY OF NPAs, DEFAULTERS"Banks file over 2,800 suits to recover Rs.1 lakh crore in a year" – Stepping up their battle against bad

loans, banks have filed suits against over 2,800 loan defaulters for recovery of around Rs.1,09,000 croreduring the 12-month period ended September 2018. With this, total suit-filed accounts of banks have gone upto 21,163 for the recovery of Rs.3,97,488 crore as of September 2018 as against 2,816 accounts to recoverRs.2,88,023 crore as of September 2017, according to data available from Transunion Cibil, a credit informationcompany. A report. – (IE Jan 31, 2019 p 11)

REFORMS"Banks need reform, not exhortations" – Ownership and governance must change. An editorial.

– (ET Jan 30, 2019 p 16)

RETAIL PAYMENT SYSTEMS"How RBI's draft norms will affect retail payments" – RBI issued a policy paper on retail payment systems

that proposes to ease norms for the entry of new players in a bid to boost competition and innovation. Mintanalyses its proposals and the retail payment ecosystem in India. A report. – (Mint Jan 25, 2019 p 1)

SMALL FINANCE BANKS– UJJIVAN SMALL FINANCE BANK

"BankBazaar and Ujjivan SFB join hands for personal loans" – BankBazaar, an online marketplace forfinancial products, has partnered with Ujjivan Small Finance Bank for providing personal loans. With thispartnership, the company intends to drive greater financial inclusion, especially among those customers whoare economically active but not adequately served by the formal banking sector. A report.– (HBL Jan 30, 2019 p 6)

RBI CIRCULAR"Auction of Government of India Dated Securities"– (RBI Circulars RBI/2018-2019/111 Ref.No.IDMD/

2050/08.02.032/2018-19 dated 28.01.2019)

AGRICULTURE & RURAL DEVELOPMENT

AGRICULTURE CREDITBhanwala, Harsh Kumar – "Addressing regional imbalances in agriculture credit in India" – Agriculture

credit has in the last few years, won the battle of 'growth' - the cake has grown bigger - but it still has to getthe distribution aspect right. An article. – (FE Jan 25, 2019 p 9)

AGRICULTURE SECTOR"Agri sector should be boosted through credit flows: PM's Economic Advisory Council feels sector

should be supported by schemes such as MGNREGS" – The Prime Minister's Economic AdvisoryCouncil (EAC-PM) on Friday said that the agriculture sector should be bolstered through increased creditflows and schemes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme. TheCouncil also added that it strongly felt that the government should not deviate from its fiscal consolidationpath. A report. – (H Jan 26, 2019 p 13)

QUASI-UNIVERSAL BASIC RURAL INCOMEFelman, Josh and Others – "Quasi-universal basic rural income: The way forward" – The authors

propose an alternative to build a new rural India where a basic income, regardless of agricultural vagaries,will be guaranteed. An article. – (BS Jan 28, 2019 p 8)

– 14 –

RURAL EMPLOYMENT– MGNREGS"MGNREGS has raised welfare, brought down inequality, says study" – At a time when political parties

across the spectrum are searching for ways to provide cash transfers to rural and poor Indians, one suchpolicy, started more than a decade ago, has come in for praise from a new study. The Mahatma GandhiNational Rural Employment Guarantee Scheme (MGNREGS) was launched in 2006 to provide 100 days ofemployment to villagers in the lean season, effectively working as a conditional cash transfer programme.That scheme seems to have improved the well-being of beneficiaries significantly in Andhra Pradesh, aresearch paper by Klaus Deininger of the World Bank and Yanyan Liu of the International Food PolicyResearch Institute (IFPRI) published in the World Development journal shows. – (Mint Jan 30, 2019 p 3)

INDUSTRY

HDFC"Performance report: HDFC Q3 profit falls to Rs.2,114 cr" – Total income rose to Rs.10,569 cr during the

quarter against Rs.8,824 cr in the year-ago period. Housing finance company HDFC reported a net profit ofRs.2,113.80 crore on the standalone basis for the third quarter ended December 2018. The company hadposted a net profit of Rs.5,300 crore in the Oct5ober-December quarter of the last financial year.– (FE Jan 30, 2019 p 10)

INFRASTRUCTURE DEVELOPMENTGadkari, Nitin – "Infrastructure to power India's development" – The lack of good infrastructure has

long impeded the country's growth. The use of alternative fuels... is being pushed actively in both the roadsand shipping sectors. Appropriate rules for their use have been notified. An article.– (HBL Jan 28, 2019 Pt. II p 14)

INFRASTRUCTURE FINANCE"Banks still play key role in infra financing: Ex-RBI deputy guv" – Banks are the most important purveyors

of infrastructure finance in the country and they will conti9nue to play an important role in infrastructurefinancing, according to Anand Sinha, former deputy governor of the RBI. India is a bank-dominated economyand banks are a critical source of funding. Academic literature does suggest that even though banks havetremendous problems in financing infrastructure because of the asset liability questions, but they are perhapsthe best vehicles for infrastructure. – (FE Jan 30, 2019 p 12)

PEER-TO-PEER LENDING– MSMEsGala, Dipal – "P2P: Inclusive financing solutions for the MSME" – Peer-to-peer lending, also known as

P2P lending, is the practice of lending money to individuals or businesses through online services that matchlenders with borrowers. Lower overheads often result in lenders earning higher returns compared to savingsand investment products offered by banks, while borrowers can borrow money at lower interest rates.Driven by technology, policy, and demand, India's lending ecosystem is bringing in new options. A clearbeneficiary will be the MSME sector, wherein millions of companies which have long been denied the accessto credit, now see hope. An article. – (ET Jan 31, 2019 p 11)

SMALL SCALE INDUSTRY

MUDRA YOJANA"MUDRA: Strong start, but needs heavy lifting: Implementation of the micro-units loan scheme has

been patchy and rising NPAs are a major concern" – The intent was noble and promised politicaldividends, but implementation has been somewhat patchy given that nearly four years have lapsed. This ishow an industry veteran described the progress made till date under the Pradhan Mantri MUDRA Yojana,the Modi-led Government's micro-loan scheme. A report. – (HBL Jan 29, 2019 p 4)

– 15 –

INTERNATIONAL ECONOMICSRogoff, Kenneth – "Risks to the global economy in 2019" – The biggest economic risks will emerge in

those areas where investors think recent patterns are unlikely to change. An article. – (BS Jan 31, 2019 p 9)

Wolf, Martin – "The challenge of one world, two systems" – Unbridled strategic competition betweenChina and the west would be a disaster. The accelerating breakdown in relations between China and the USis the most significant current event. How is this to be managed, given today's global interdependence? Anarticle. – (FT Jan 30, 2019 p 9)

CHINA"China certain of 'sustainable growth', says economy chief" – China's top economic official has dismissed

mounting fears that decades of breathtaking expansion was beginning to falter in the face of a US trade war,insisting "sustainable growth" in his country would be maintained. Wang Qishan acknowledged there wererisks facing Beijing as well as other major economies, including "unilateralism, protection and populism", anapparent reference to US President Donald Trump's trade policies. But he insisted China's growth rate in2018 of 6.6 per cent, which slowed to its lowest level in almost three decades at the end of last year, was still"a pretty significant number, not low at all". He added that while "speed does matter", it was the "quality andefficiency" of growth that was more important. – (FT Jan 24, 2019 p 1)

EURO-ZONE"Draghi warns trade war and Brexit set to extend eurozone slowdown" – The European Central Bank

has sounded the alarm over the eurozone economy, warning a slowdown it thought would be temporary wasshowing signs of becoming long-lasting because of global trade tensions, Brexit and financial market volatility.A report. – (FT Jan 25, 2019 p 1)

FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Jan 28, 2019 Supl. pp 1-16)

INTERNATIONAL TRADE"Tough trade: China's economic woes spread across Asia with more pain seen" – China's weakening

economy is roiling export markets in the rest of Asia - and there's more pain to come. From Hong Kong toJapan, exports data for December showed a marked downturn as supply-chain disruptions triggered by US-China tensions and a cyclical slowdown in the world economy, led by China, hit the trade-reliant region. Morebad news is in store for January: Bloomberg Economics' early indicator shows China's economy slowedfurther this month, while purchasing managers index is set to show another decline in factory output. Areport. – (FE Jan 31, 2019 p 24)

MANAGEMENT

MANAGEMENT EDUCATIONGogate, Kanchan – "Redefining management metrics" – As India is a land of opportunities, academicians

feel that B-schools in the country should harness young potential by incorporating best business practices,introducing new-age specialisations and fostering entrepreneurial spirit. An article. – (TI Jan 31, 2019 p 7)

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