Volume XXXII Number 28 April 10, 2017
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Volume XXXII Number 28 April 10, 2017
Weeklies
BI – Business India
BusW – Business World
BusT – Business Today
CMar – Capital Market
EPW – Economic and Political Weekly
SE – Southern Economist
Eco – Economist
For(Asia) – Fortune AsiaCI – Corporate India
Newspapers
BS – Business Standard
ET – Economic Times
FE – Financial Express
FT – Financial Times
H – Hindu
HBL – Hindu Business Line
HT – Hindustan Times
IE – Indian Express
TI – Times of India
Mint – Mint
Classifications
Economy Banking Agriculture & Rural Development Industry Small Scale Industry
International Economics Labour & Personnel Management Management Miscellaneous Books
CONTENTS
A. ECONOMY 1
B. BANKING 2
C. AGRICULTURE & RURAL DEVELOPMENT 15
D. INDUSTRY 15
E. SMALL SCALE INDUSTRY 16
F. INTERNATIONAL ECONOMICS 16
G. MISCELLANEOUS 17
– 1 –
BANKERS' BRIEF Vol. XXXII No. 28April 10, 2017
ECONOMY"Anti-profiteering Clause in GST is Transitory, will Act as Deterrent" – Edited excerpts from an interview
with Hasmukh Adhia, Revenue Secretary. If there's rampant profiteering in certain sectors after GST, govtmay seek explanations but only from oligopolies or in cases of imperfect competition. – (ET Mar 31, 2017p 13)
"Bringing real estate under GST will help curb tax evasion" – An interview with Hasmukh Adhia, RevenueSecretary. – (FE Apr 3, 2017 pp 1, 2)
"GDP to grow at 7.7% in 2018: Jaitley" – Finance Minister Arun Jaitley said global growth was picking upbut emerging economies faced new challenges in terms of inward-looking policies and rising protectionism,and tightening of financial conditions in global markets. Speaking at the annual meeting of the New DevelopmentBank (NDB), a bank promoted by BRICS, Jaitley said Indian economy is pegged to grow 7.2% in 2017 and7.7% in 2018. – (ET Apr 2, 2017 p 3)
"Rate-setting will be a time consuming process: Adhia" – Edited excerpts from an interview with HasmukhAdhia, Revenue Secretary. – (Mint Mar 31, 2017 p 17)
Rangarajan, C – "Sharpen the focus on growth" – If there has to be investment resurgence, it is necessaryto create the climate which promotes this faith. An article. – (H Apr 3, 2017 p 8)
Rao, Radhika – "India: Where to from here?" – An article. – (Mint Apr 5, 2017 p 8)
ECONOMIC REFORMS"The next phase of economic reforms" – The Narendra Modi government now needs to focus on the
economic policy reforms India needs over the next decade. A report. – (Mint Apr 5, 2017 p 14)
FOREIGN EXCHANGE RESERVES"Forex reserves jump $1.1 billion to $368 billion" – India's foreign exchange reserves rose $1.1billion in
the week ended March 24 to almost $368 billion, according to the Reserve Bank of India. Forex reserves hadrisen by more than $2 billion in the week before. – (ET Apr 1, 2017 p 6)
GST"Five things to know about GST" – (1) What is goods and services tax (GST)? (2) How does it work? (3)
Which of the existing taxes are proposed to be subsumed under GST? (4) Who is liable to pay GST? (5)What would be the role of GST Council & GSTN? A report. – (BS Apr 5, 2017 p 15)
Chakravarty, Praveen and Thiagarajan, Palanivel – "The flip side of 'one nation, one tax'" – India isthe only large country in the world that is experiencing subnational income divergence. An article. – (MintApr 4, 2017 p 15)
Jain, Abhishek – "Goods and services tax: On to the last lap" – The GST Bills appear to be a mixed bagwith concerted efforts required to address some of the issues above. The difficulties with these ambiguitieswill be exacerbated by the short implementation timeframe for the GST. An article. – (FE Mar 31, 2017 p 9)
Rao, M Govinda – "The stage is set for implementation" – What is being proposed is a highly complicatedstructure with four tax rates, in addition to exemption, a low rate on bullion and cesses on demerit goods.Multiple rates will create many classification problems and disputes. An article. – (FE Apr 4, 2017 p 8)
Singh, Harpreet – "Goods and Services Tax: Let 'best' not be the enemy of 'good'" – Let's start witha 'good' GST which subsumes multiple taxes, nullifies cascading taxes, etc, and slowly tries and movestowards an 'ideal/best' GST with one rate across goods and services. An article. – (FE Apr 6, 2017 p 9)
– 2 –
Subramanian, Arvind – "The GST's last and critical lap" – It must be accepted that the GST suffers fromweaknesses largely related to the exemption of so many items from its scope: alcohol, petroleum, electricity,land and real estate, health and education. An article. – (FE Apr 4, 2017 p 9)
INFLATION"Inflation to average at 5% in FY18" – CPI inflation is likely to average higher at 5 per cent in the current
fiscal on expectations of increasing pressure on food prices as well as uptick in global oil and commodityrates, says a Crisil report. – (IE Apr 6, 2017 p 15)
BANKING
GENERAL"Capitalization of banks has to be linked to their performance" – Edited excerpts from an interview with
Shaktikanta Das, Economic Affairs Secretary. – (Mint Mar 31, 2017 p 16)
"Centre to ease compliance burden of banks under GST" – To help banks and insurance firms that wouldnot have the benefit of centralised registration under the Goods and Services Tax (GST), the government willtry to solve their problems through simpler audit and valuation rules for inter-State supply. A report. – (HBLApr 1, 2017 p 1)
"Non-food credit grows 5.12%; total bank credit rises 4.36%" – Non-food credit grew 5.12% year-on-year (y-o-y) during the fortnight ended March 17, with outstanding loans to companies and individuals atRs.75.1 lakh crore, according to data released by the Reserve Bank of India (RBI). This is an improvementover the lifetime-low y-o-y growth of 4.34% in non-food credit recorded during the previous fortnight. Totalbank credit rose 4.36% y-o-y to Rs.75.66 lakh crore, as against a 3.68% growth in the previous fortnight, thelowest in at least 58 years. Aggregate deposits with the banking system stood at Rs.105.42 lakh crore, up13.02% y-o-y. While banks had seen a steady rise in deposits since demonetisation, some of these depositshave already begun to flow out of the system. A report. – (FE Mar 31, 2017 p 10)
Krishnan, Aarati – "Far too mollycoddled, frankly" – Why are Indian banks always shielded from theconsequences of bad decisions, and allowed to take consumers for granted? An article. – (HBL Mar 31,2017 p 8)
RAJASTHAN
– POWER DISTRIBUTION COMPANIES
"Banks may cut funding to Rajasthan discoms missing UDAY targets: Utilities have not revisedpower tariffs to improve cash flow" – Lenders are planning to cut working capital finance to Rajasthan'spower distribution companies which have failed to meet the financial targets set under the Ujjwal DiscomAssurance Yojana (UDAY), a discom bailout package. Rajasthan's state-owned utilities have not revisedpower tariffs as previously agreed, according to two bankers aware of the matter. A report. – (Mint Mar 31,2017 p 5)
BANK OF MAHARASHTRA"BoM loses Rs.25 cr in UPI fraud" – Bank of Maharashtra lost Rs.25 crore in one of the biggest Unified
Payments Interface (UPI) frauds till date when a few people moved money illegally, taking advantage of aminor bug. – (Mint Mar 31, 2017 p 6)
FEDERAL BANK"Digital banking will become more intuitive" – Edited excerpts from an interview with Shyam Srinivasan,
Managing Director and Chief Executive Officer, The Federal Bank Ltd. – (Mint Apr 3, 2017 p 13)
– 3 –
IDBI BANK"IDBI Bank cuts deposit rates by up to 75 bps" – With the banking system reeling under surplus liquidity,
IDBI Bank has reduced interest rates, ranging from 50 to 75 basis points, on retail term deposits (RTD) witheffect from April 5. – (HBL Apr 6, 2017 p 6)
"Indian Bank's Mahesh Jain takes charge as IDBI head" – IDBI Bank said Mahesh Kumar Jain assumedcharge as its new managing director and chief executive. Prior to this, Jain, who assumed charge, washeading the Chennai-based Indian Bank since November 2015. – (FE Apr 5, 2017 p 4)
INDIAN BANK"Indian Bank revises FCNR (B) rates" – Indian Bank has revised its interest rates on foreign currency non-
resident (banking) term deposits effective April 1. For FCNR (B) deposits in US dollar terms, the revisedinterest rate has been fixed at 2.40 per cent for deposits of one year and above but less than two years, fromthe existing 2.33 per cent, according to a statement. – (HBL Apr 4, 2017 p 10)
"Kharat is new Indian Bank chief" – Kishor Kharat has assumed charge as the Managing Director andCEO of Indian Bank from Tuesday. Prior to this, he was MD and CEO of IDBI Bank. During the tenure, healso served as the Chairman of IDBI Capital Market Services, IDBI Asset Management and IDBI TrusteeshipServices. Kharat was also on the Board of Directors of IDBI Federal Life Insurance as well as Exim Bank.– (HBL Apr 5, 2017 p 10)
INDIAN OVERSEAS BANK"IOB cuts base rate by 20 bps" – Indian Overseas Bank has cut its base rate by 20 bps effective April 1. The
new base rate is 9.50 per cent. The existing loans linked to the base rate will be revised with effect from April1, according to the bank. – (HBL Apr 5, 2017 p 10)
INDUSIND BANK"IndusInd Bank to raise Rs.1,000 cr via Basel III bonds" – Private player IndusInd Bank plans to raise
Rs.1,000 crore by issuing Basel III compliant bonds. The bank proposes to raise funds by issue and allotmentof rated, listed, non-convertible, perpetual, subordinated and unsecured Basel III compliant Bonds in natureof debentures towards non-equity regulatory additional tier I capital, IndusInd Bank said in a regulatory filing.– (FE Apr 6, 2017 p 10)
KARNATAKA BANK"Karnataka Bank targets Rs.1.10 lakh crore business this fiscal; cuts MCLR by 25-55 bps" – Karnataka
Bank is targeting a business turnover of Rs.1.10 lakh crore for 2017-18. This includes deposits of Rs.64,500crore and advances of Rs.45,500 crore. Rolling out the business agenda for 2017-18 at the head office of thebank in Mangaluru, P Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, said2016-17 was a year of satisfactory growth considering the prevailing economic conditions in the global anddomestic economies and the impact of demonetisation on the banking industry. – (HBL Apr 4, 2017 p 10)
KOTAK MAHINDRA BANK"Eyeing acquisitions across fin biz: Kotak: Savings up as money exits realty, gold" – Excerpts from an
interview with Uday Kotak, Vice-Chairman and MD, Kotak Mahindra Bank. – (TI Apr 5, 2017 p 17)
"Kotak Bank gets nod for Rs.5,000-cr stake-sale: Post-issuance, promoter shareholding likely tocome down by over 1%" – Kotak Mahindra Bank is seeking to kill two birds with one stone - bringingdown promoter shareholding according to RBI requirement and building a war chest for possible acquisitionof either a bank or an NBFC - through the proposed issuance of up to 6.20 crore equity shares aggregatingto over Rs.5,000 crore. A report. – (HBL Mar 31, 2017 p 10)
– 4 –
Subramanian, Shobhana – "Kotak Bank 3.0: Fintech with a bank to back it" – Apart from slashingcosts, the big money has to come from selling loans/products to customers that only banks have. An article.– (FE Mar 31, 2017 p 8)
PUNJAB NATIONAL BANK"Under Gandhigiri, our people offer rosebuds to shame defaulters" – Edited excerpts from an interview
with Usha Ananthasubramanian, managing director and chief executive officer, Punjab National Bank (PNB).– (BS Apr 5, 2017 p 13)
SOUTH INDIAN BANK"Capital-raising a success: SIB" – The recent capital-raising initiative by South Indian Bank to support
business growth has received an overwhelming response from customers. The rights issue of shares for atotal amount of Rs.630.99 crore was subscribed 1.84 times. V G Mathew, MD & CEO, said the capital-raising, together with expected retention of internal capital generation, can support targeted business growthof 20 per cent per annum with a comfortable CRAR position for two years. The bank had a CRAR of 11.05per cent at the end of Q3 and the fresh capital raised will raise CRAR by 160 bps. – (HBL Apr 5, 2017 p 10)
STATE BANK OF INDIA"The quicker we get the stressed assets woes behind us, the better" – Edited excerpts from an interview
with Arundhati Bhattacharya, Chairman, State Bank of India. – (Mint Apr 3, 2017 p 6)
"SBI begins life in the top 50 with a 15 bps base rate cut: Move will ease EMI pressure on existingborrowers" – After the merger of five associate banks and the Bharatiya Mahila Bank with itself, StateBank of India began a new chapter with 50 crore customers, total business worth Rs.44.77 lakh crore and43.55 crore savings bank accounts. One of the first things the banking behemoth did was to cut its base rateby 15 basis points to 9.10 per cent, easing the equated monthly instalment (EMI) of existing borrowers,especially in the retail loan segment. A report. – (HBL Apr 4, 2017 pp 1, 10)
"SBI chief wants to break into top 30 global league: Exhorts employees to deliver customer serviceon par with global standards" – After leapfrogging into the league of top 50 global banks following themerger of five associate banks and Bharatiya Mahila Bank with it, State Bank of India Chairman ArundhatiBhattacharya has set her sights higher, wanting SBI to break into the top 30 global league in the next fewyears. Let us all pledge on this day that we shall continue to be customer-centric with special emphasis ondigital and anytime channel banking. A report. – (HBL Apr 3, 2017 p 13)
"SBI gets Rs.1,400-cr loan from EIB" – The European Investment Bank has approved Rs.1,400 crore loanto State Bank of India to fund solar power projects. The long-term loan will support a total investment of 650million euro in five different large-scale photovoltaic solar power projects, according to EIB statement.– (FE Apr 1, 2017 p 10)
"SBI in global top 50 post merger" – State Bank of India (SBI) which merged five of its associate banksand Bharatiya Mahila Bank, joined the league of top 50 banks globally in terms of assets, according to thebank. The merger of five associate banks, State Bank of Bikaner and Jaipur, State Bank of Mysore, StateBank of Travancore, State Bank of Patiala and State Bank of Hyderabad, with SBI has created a bankwhose size will be four times the second-largest lender of the country. The total business of the five associatebanks, which is about Rs.10 lakh crore, is equal to the second largest lender of the country - Punjab NationalBank. – (H Apr 2, 2017 Sec.II p 10)
"SBI unveils new branding" – State Bank of India (SBI) unveiled its new brand identity, designed to positionthe bank as technology savvy, modern and ready to meet financial needs of all. – (IE Apr 6, 2017 p 16)
"SBI, Cox & Kings tie up for travel prepaid cards sale" – State Bank of India (SBI) announced pilotlaunch of a distribution alliance with Cox & Kings for sale of travel prepaid cards in the country. 'This hasbeen the third alliance SBI has entered in to for travel card business to supplement their distribution reach...,'according to Manju Agarwal, DMD (Digital banking and new business), SBI. – (FE Apr 4, 2017 p 10)
– 5 –
"Signs of change at SBI, associate banks ahead of mega merger" – A report. – (Mint Mar 31, 2017 p 8)
"Two new Circles proposed in SBI structural shake-up" – Will help handle the increased number ofbranches, offices and business levels following merger of associate banks. A report. – (HBL Apr 5, 2017 p 10)
"We cannot delay NPA resolution any longer" – Edited excerpts from an interview with ArundhatiBhattacharya, Chairman, State Bank of India. – (BS Apr 3, 2017 pp 1, 8)
"We must now deliver on our promises: SBI chief" – Excerpts from an interview with ArundhatiBhattacharya, Chairman, State Bank of India. Arundhati Bhattacharya gives a low down on how the bankwent about the merger and what lies ahead. There is a lot of work still to be done, especially the handing over,taking over of documents, records and files. – (HBL Apr 5, 2017 p 10)
Adikesavan, S – "SBI, a synonym for resurgent India" – Among the world's top 50 banks post merger, itwill continue to meet varied domestic needs, while being globally competitive. An article. – (HBL Apr 5, 2017p 8)
Shukla, Saloni – "State Bank of India and Associates' merger: End of history" – SBI Chairman ArundhatiBhattacharya created a banking behemoth India has been aspiring for decades. Author looks at the journeyand what's ahead for the globally ranked bank. An article. – (ET Apr 5, 2017 p 14)
– BANK CHARGES
"SBI customers will have to pay higher service charges from today: Charges for ATM use, non-maintenance of minimum balance and cash-handling increased" – Key charges: * Own-bank ATMcharges doubled from Rs.5 to Rs.10 after mandatory free use; * Minimum balance in metros: Rs.5,000; *Minimum in city/town branches: Rs.3,000; * Minimum balance in semi-urban branches: 2,000; * Minimumbalance in a village branch: Rs.1,000; * If cash deposit exceeds Rs.1 lakh in a month in SB accounts, Rs.1.25per Rs.1,000 will be charged; * Rs.50 per bundle will be recovered as cash handling charges for small-denomination notes; * Debit card charges of Rs.30 per quarter will be levied where the average balance isless than Rs.15,000; * For current accounts with a minimum average balance of Rs.1,000- Rs.5,000 chargesrange from Rs.170 to Rs.190. A report. – (HBL Apr 1, 2017 p 1)
– BRANDING
Balakrishnan, Ravi – "Will SBI's new logo make it cool?" – The oldest bank in India revamps one of thecountry's most identifiable brand identities. An article. – (ET Apr 5, 2017 Supl. pp 1, 4)
STATE BANK OF INDIA ASSOCIATES"To stay or not to stay, that is the dilemma for associate bank employees" – Employees of associate
banks of State Bank of India, who probably wanted to work in the parent organisation, particularly those whohave over 10 years experience, may reconsider their resolve, primarily because their acceptance of the offerto join State Bank of India would be deemed as 'new employment'. A report. – (HBL Apr 4, 2017 p 10)
– VRS
"2,800 employees of SBI associate banks opt for VRS: Scheme open till April 5; 12,500 employeesare eligible, says bank chief" – About 2,800 employees of the erstwhile associate banks of State Bank ofIndia have opted for voluntary retirement so far, according to SBI Chairman Arundhati Bhattacharya. Around12,500 employees (out of the total associate banks employee strength of about 70,000) are eligible for optingfor the voluntary retirement scheme, which was announced in the run-up to the merger of the five associatebanks with State Bank of India. Employees who have opted for VRS at present are around 2,800. Anddefinitely, we will look at their application and if it falls within the norms we will give them VRS. A report.– (HBL Apr 4, 2017 p 10)
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UNION BANK OF INDIA
– BANK CAPITAL
"Union Bank raises Rs.500 crore to augment capital under Basel III" – The Union Bank has raisedRs.500 crore by issuing Basel III compliant bonds on private placement basis. The bank has issued 5,000non-convertible, unsecured subordinated Basel III compliant perpetual debt instruments to be added intoadditional tier I capital, the bank said in a regulatory filing. – (FE Apr 1, 2017 p 6)
YES BANK"Moody's: YES Bank's fundraising credit positive" – YES Bank recent fundraising is credit positive and
will help strengthen its capitalisation that will support credit growth, according to Moody's Investors Service.– (BS Apr 4, 2017 p 4)
"YES Bank QIP raises Rs.4,906 cr" – YES Bank has raised Rs.4,906.65 crore via a qualified institutionalplacement (QIP) by selling 3.27 crore shares at Rs.1,500 per piece. Over 60% of the shares were bought byglobal long- only funds, 20% by domestic long funds and another 20% by international hedge funds, accordingto the bank statement. – (FE Apr 2, 2017 p 1)
"YES Bank unit records $1-b business" – YES Bank said the balance sheet of its IFSC Banking Unit (IBU)in Gujarat International Finance Tec City (GIFT) city recorded $1 billion for the financial year ended March31, 2017. The bank has become the first to achieve the $1 billion milestone at the GIFT City. – (HBL Apr 5,2017 p 10)
"YES Bank's share offer succeeds" – YES Bank Ltd has succeeded on its second attempt to raise capital,as friendlier conditions in financial markets allowed the Indian lender to put last year's failed share offeringbehind it. The successful share offering will allow Yes Bank to continue the rapid recent expansion of its loanbook, the fastest among Indian lenders. – (FE Mar 31, 2017 p 11)
ASIA"Asia troubles deepen for small private lenders" – Private banks are facing an increasingly harsh climate
in Asia as rising costs force smaller participants out of the market, according to Swiss wealth managerLombard Odier. The rapid expansion of entrepreneurial wealth in Asia has attracted many banks, with bigSwiss performers credit Suisse and UBS leading the drive for growth in the region. A report. – (FT Mar 30,2017 p 14)
CHINA"China central bank injects $89.9 bn of liquidity in March" – China's central bank injected 618.99 billion
yuan ($89.93 billion) into the financial system via short- and medium-term liquidity tools in March, up nearly50 percent from the previous month, even as financial markets feared a cash crunch. A report. – (FE Apr 2,2017 p 11)
– NPAs
"Bad loan fears eased in 2016, say China's big banks" – Bad-loan concerns at China's big banks eased in2016 despite flat earnings growth, the companies said this week, but analysts warn asset-quality problems inthe world's second-largest economy could worsen next year. Bank of China, the country's main foreignexchange bank, said its non-performing loans (NPL) came in at 1.46% of total lending, up only slightly from1.43% a year earlier. A report. – (HBL Apr 1, 2017 p 5)
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EUROPE
– EUROPEAN INVESTMENT BANK
"Would have cast doubt on demonetisation earlier" – Excerpts from an interview with Werner Hoyer,President, European Investment Bank. – (FE Apr 5, 2017 p 2)
– EXECUTIVE COMPENSATION
"CEOs of loss-making banks in Europe earn big buck: Mind the gap: High banker pay no guaranteeof success" – Despite caps on bank bonuses introduced across much of Europe after the financial crisis,pay still varies widely. A report. – (FE Apr 1, 2017 p 19)
UK
– BANK OF ENGLAND
"Bank of England to use palm oil for £ 20 note?: Move considered after criticism from Hindus, Sikhsand vegetarians of use of animal fat in plastic £ 5 notes" – The Bank of England is considering usingpalm oil or coconut oil in the production of the new £ 20 note, following criticism from Hindus, Sikhs andvegetarians of the use of animal fat in the plastic £ 5 notes. The new £ 20 note is due to be introduced by2020, but the tender for production has been put on hold, the BBC reported. A report. – (H Apr 1, 2017 p 22)
USA
– FEDERAL RESERVE
"The Federal Reserve: Up, up and away" – As Janet Yellen's Fed raises, political uncertainty hangs over thecentral bank. An article. – (Eco 422(9032) Mar 18, 2017 pp 69-70)
Nageswaran, V Anantha – "Draining the monetary policy swamp" – An article. – (Mint Apr 4, 2017 p 14)
BANK CONSOLIDATION"Large banks" – Starting this fiscal year on 1 April, five associate banks of the State Bank of India (SBI) and
Bharatiya Mahila Bank were merged with SBI. Banker Uday Kotak is of the view that there will be strongconsolidation in the sector and, eventually, only a few large banks will dominate. The government is also keenon further consolidation in the banking sector. A quick edit. – (Mint Apr 4, 2017 p 1)
"Only five large banks can survive in the long term: Uday Kotak" – Banker Uday Kotak feels there willbe strong consolidation in the financial services sector and eventually only five players will dominate thespace just like in the global space. 'Globally, in most countries, there are only three to five large banks whichdominate. This is how the future will be in our country as well,' according to Kotak, vice-chairman of KotakMahindra Bank. – (Mint Apr 3, 2017 p 5)
– AXIS BANK / KOTAK MAHINDRA BANK
"Axis-Kotak merger buzz has no govt backing" – The much-discussed Axis Bank and Kotak MahindraBank merger has no government backing. Senior government officers told TOI that neither bank hasapproached the Centre with a plan and in any case the plan being discussed at length in the analyst communitydoes not make sense. The government is the largest shareholder in private sector lender Axis Bank throughthe Specified Undertakings of the erstwhile Unit Trust of India (SUUTI), which holds a 12% stake. SUUTIis part of the promoter group comprising the five government-owned general insurance companies and theLife Insurance Corporation of India. There is no plan before us and we are not considering any such move.A report. – (TI Apr 6, 2017 p 15)
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– NON-PERFORMING ASSETS
"SBI merger good first step; scope for more consolidation: Kamath" – Veteran banker and NDBPresident K V Kamath has described the merger of SBI's associate banks with the parent a 'good first step',saying there is scope for further consolidation as large banks are needed to cater to the growing economy.Kamath also underlined the need for a bad bank to deal with rising non-performing assets (NPAs) of thebanking sector with a rider that it should be created only after putting in place a proper funding mechanism.A report. – (Mint Apr 3, 2017 p 5)
– SBI / SBBJ / SBT
"It feels like a being sent to in-laws place Staff of associate banks SBB&J and SBT exhibit a tinge ofnervousness as they move under SBI fold today" – 'It feels like beti ki bidaai (daughter being sent to herin-laws place after marriage),' according to a senior State Bank of Bikaner & Jaipur official, referring to themerger of associate banks with parent State Bank of India, which takes effect from April 1. A report.– (HBL Apr 1, 2017 p 5)
– SBI / SBH
"After 75 years, Nizam bank closes its account: Five associate banks to merge with State Bank ofIndia" – As the clock strikes midnight on April 1, the State Bank of Hyderabad (SBH) and its iconicheadquarters in the heart of the city, will shed its 75-year-old history to assume a new identity. As SBH joinsother associate banks to merge with the State Bank of India, the Hyderabadi old-timer will heave a sigh inmemory of what was once the Central Bank of the Nizam. A report. – (HBL Apr 1, 2017 p 1)
– SBI / SBM
"Into the sunset after 104 years" – Staff of iconic State Bank of Mysore turn emotional on the last day. Areport. – (HBL Apr 1, 2017 p 5)
BANK LENDING"The declining importance of bank credit" – The recent surge in bond issuance could be a sign that India's
larger companies are moving away from their heavy dependence on banks. An article. – (Mint Apr 3, 2017p 14)
"Note ban woes over, SME credit growth picks up: BACK IN BUSINESS Small-ticket unsecuredloans growing at around 15-18% now" – Before the note ban in November last year, there was a steadygrowth in loan demand at 20%. A report. – (ET Apr 1, 2017 p 6)
"Weak credit growth: Bank loans to individuals grew at 6-year low in Feb" – Bank loans to individualsrecorded their weakest growth in six years in February, expanding at just 12% year-on-year (y-o-y) toRs.15.4 lakh crore, data released by the Reserve Bank of India showed. In February 2016, retail credit hadgrown at a robust 19.2% over February 2015. Outstanding on credit cards grew the most, 28.2%, acrosscategories. A report. – (FE Apr 1, 2017 p 10)
BANKING REGULATOR
– RESERVE BANK OF INDIA
"RBI lost in transmission" – Indira Gandhi's policy to nationalise 14 banks in 1969 was taken without anyreference to the RBI and marked the beginning of the central bank's disempowerment and dominance by theUnion finance ministry. An edited excerpt from TCA Srinivasa Raghavan's Dialogue of the Deaf; TheGovernment and the RBI. A book review. – (BS Apr 1, 2017 Supl. p 3)
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BANKING SECTOR REFORMSAhluwalia, Montek Singh – "Urgent next steps in banking sector reforms" – We must accelerate
recoveries from non-performing assets, recapitalize public sector banks, and introduce reforms that willincrease the efficiency of these banks. The bad bank will be less vulnerable to the charge of corruption if thepublic interest is clearly spelt out in the mandate of the entity. An article. – (Mint Mar 31, 2017 p 15)
BANKING TECHNOLOGY"No job losses due to chatbots, AI: Banks: Say new tools will complement staff" – The financial sector
in India is driving investments into chatbots and artificial intelligence (AI) to augment customer service, butbankers are convinced that there would not be job losses as these new tools will only complement staff. Areport. – (TI Apr 5, 2017 p 18)
COOPERATIVE BANKS
– G P PARSIK JANATA SAHAKARI BANK
"GP Parsik Bank achieved 'Best Bank' award" – The Maharashtra Urban Co-operative Banks FederationLtd. has awarded First Prize as Best Bank of the year 2016 under the category of banks having Deposits ofabove Rs.1,000/- crore to Rs.3,000/- crore to Gopinath Patil Parsik Janata Sahakari Bank Ltd., Kalwa,Thane. – (BS Apr 6, 2017 p 8)
– KAPOL CO-OPERATIVE BANK
"RBI imposes restrictions on Kapol Co-op Bank" – Depositors cannot withdraw more than Rs.3,000,bank not allowed to grant/renew loans. A report. – (HBL Apr 1, 2017 p 5)
CURRENCY NOTES"RBI clears proposal to issue Rs.200 denomination notes" – The board of the Reserve Bank of India
(RBI) has cleared a proposal to introduce banknotes of Rs.200 denomination, according to two people awareof the development. The decision was taken at the RBI board meeting in March. They didn't want to beidentified as they aren't authorized to speak to the media. The process of printing the new Rs.200 notes islikely to begin after June, once the government officially approves this new denomination, according to one ofthe two people cited earlier. – (Mint Apr 4, 2017 p 1)
– DEMONETISATION
"Normalcy restored after note ban: Gandhi" – Edited excerpts from an interview with R Gandhi, formerDeputy Governor, Reserve Bank of India. Normalcy has returned to the currency system post demonetizationand the pace of cash withdrawals has come down. Calling the note ban a well-thought-out and well-deliberateddecision, he said the only thing he would do differently with the wisdom of hindsight was print more Rs.500notes. – (Mint Apr 5, 2017 p 8)
"Note ban has squeezed timeframe for digitisation: K V Kamath: Says New Development Bank tolend $2.5-3 billion for 15 projects in 2017" – Supporting the government decision to demonetise high-value currency in November last year, former chairman of ICICI Bank and President of the New DevelopmentBank (NDB) KV Kamath said it has not only deterred back money hoarders but has also given a big push toonline transactions. The biggest good that came out of demonetisation is the digital push that it has given tothe country. Suddenly, a seven-year timeframe has been compressed and it has enabled a lot of activities tobe done online. With the remonetisation exercise now almost complete, Kamath said the economy shouldalso be 'back in gear'. Prime Minister Narendra Modi had on November 8 announced withdrawal of the oldcurrency notes of Rs.500 and Rs.1,000 to tackle tax evasion and fake currency. A report. – (HBL Mar 31,2017 p 6)
– 10 –
CUSTOMER SERVICEDwivedi, Nimish – "For old times' sake: Banks have forgotten the 'passbook generation'" – India is
a 'young' country. But there is a different dimension to this 'young demographic' attribute. Census indicatesmore than 104 million people are aged 60 years and above. A segment likely to go up to 300 million by 2050.Banking propositions for this segment do not extend beyond slightly higher rates on deposits with someinsurance covers and free-for-life debit cards. Banking propositions for this segment need to evolve andconsider: (1) Home delivery; (2) Special services; (3) Healthcare cover; (4) Faster clearance; (5) Billmanagement; (6) Money management; (7) Value-added benefits. – (HBL Apr 6, 2017 p 9)
CYBER SECURITY"Mobile apps of 7 Indian banks compromised: FireEye: Names of banks not disclosed; malware has
capability to steal user credentials, says US-based cyber security firm" – The mobile apps of sevenbanks in India were infected with malware that can steal sensitive financial information, a study has revealed.According to US-based cyber security firm FireEye, banking network frauds have spread around the world.The firm has tracked such incidents that affected banks in Ukraine, Ecuador and India, with losses totallingmore than $100 million. A report. – (HBL Apr 6, 2017 p 1)
DEBT RESTRUCTURING"Bankers seek more oversight panels to fast-track loan recast" – With only two people in charge of
vetting all loan recast decisions through the oversight committee (OC), banks believe more such committeeswould hasten the process, thus helping resolve stress. According to some senior bankers FE spoke to, whilebanks have sought inclusion of the OC approval for all types of recasts, a single two-member committeewould not serve the purpose. A report. – (FE Apr 1, 2017 p 10)
DIGITAL BANKINGBasu, Debashis – "Digital banking needs pro-customer default options" – An article. – (BS Apr 3, 2017
p 11)
DIGITAL PAYMENTS
– AADHAAR PAY
"PM to launch Aadhaar Pay platform on Ambedkar's birth anniversary: Finance ministry has askedall PSBs to board Aadhaar Pay by April 14" – Prime Minister Narendra Modi will next week launch thegovernment's new digital payments initiative that aims to make banking accessible to people who could notread or write. A report. – (ET Apr 3, 2017 p 11)
– UNIFIED PAYMENTS INTERFACE
"Payments made via UPI grow 25.7% in March" – The value of transactions made through the UnifiedPayments Interface (UPI) channel in March rose 25.7% over the previous month to Rs.2,390 crore. Accordingto representative data released by the RBI, the volume of such transactions jumped 47.6% to 6.2 million. Thisputs the average value of UPI transactions at around Rs.3,855. A report. – (FE Apr 6, 2017 p 10)
EXECUTIVE APPOINTMENTS
– PUBLIC SECTOR BANKS
"BBB proposes elevation of five EDs" – The Banks Board Bureau (BBB) Chief Vinod Rai has recommendedelevation of five executive directors (EDs) - Sunil Mehta, Dina Bandhu Mohapatra, Rajkiran Rai, R ASankara Narayana and R Subramaniakumar - as managing directors of public sector banks. Vacancies forthe post of managing directors (MDs) in five public sector banks will come up next fiscal. – (Mint Apr 1, 2017p 18)
– 11 –
– RESERVE BANK OF INDIA
"Kanungo takes over as RBI Deputy Governor" – B P Kanungo took over as a deputy governor of theReserve Bank of India and Kanungo replaces retiring deputy governor, R Gandhi and will look after thedepartments of currency management and foreign exchange, among others. – (HBL Apr 4, 2017 p 10)
"Malvika Sinha elevated as RBI ED" – Malvika Sinha has been elevated as the Executive Director of theReserve Bank of India. Sinha, who was earlier principal chief general manager, will handle the department ofgovernment & bank accounts, foreign exchange department and internal debt management department asthe new ED. – (IE Apr 4, 2017 p 13)
EXECUTIVE COMPENSATION
– RESERVE BANK OF INDIA
"Basic pay doubles for Reserve Bank of India governor, deputies" – RBI Governor Urjit Patel and hisdeputies have got a big pay hike with the government more than doubling their basic salary to Rs.2.5 lakh andRs.2.25 lakh per month, respectively. The 'basic pay of the Governor and Deputy Governors' have beenrevised retrospectively with effect from January 1, 2016 and marks a huge jump from Rs.90,000 basic pay sofar drawn by the Governor and Rs.80,000 for his deputies. – (Mint Apr 3, 2017 p 5)
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA"The ecosystem for implementation of the bankruptcy code is in place" – Edited excerpts from an
interview with Madhusudan Sahoo, Chairperson, Insolvency and Bankruptcy Board of India. – (ET Apr 5,2017 p 14)
INTEREST RATES
– DEPOSITS
"Small savers in trouble as rates head south: DOUBLE JEOPARDY Banks flush with funds & lackingcredit demand forced to slash deposit rates; govt too cuts rates on PPF, other schemes" – It'sraining bad news for small savers and depositors as interest rates on savings and bank deposits are set totrend lower in the new fiscal. The government has announced reduction in interest rates on financial savingsfor life after retirement, while banks too have started taking similar steps as they do not see much opportunityin deploying the funds they are sitting on. Entities such as Bank of India and Bandhan Bank have alreadytaken the plunge this week and industry captains believe that it's a matter of time when all lenders slashdeposit rates in the quarters ahead, given the size of liquidity available in the banking system coupled with thelack of credit demand. A report. – (ET Apr 1, 2017 p 6)
MONETARY POLICY"Amid focus on cash control, RBI likely to stay the course" – There is near unanimity that the six
member monetary policy committee of the Reserve Bank of India (RBI) would keep policy rates unchanged,but this being an annual policy, the event promises to discuss many issues that would set the stage for the nextone year, including bad-debt resolution and liquidity management. A report. – (BS Apr 5, 2017 p 13)
"The monetary policy options before RBI" – Nobody expects a rate action when the monetary policycommittee of the Reserve Bank of India (RBI) finishes its two-day review. A majority of the economistspolled by Mint expect RBI to focus on squeezing extra liquidity from the system. A graphical report. – (MintApr 6, 2017 p 1)
"An overdose of inflation targeting" – By taking an exaggerated view of external price and output shocks,monetary policy has stifled demand. An article. – (HBL Apr 3, 2017 p 14)
"RBI may not tinker with policy rate: Fears of pressure on food, commodity prices a key reason, sayexperts" – The Reserve Bank of India is likely to maintain status quo on policy rates in its first bi-monthlymonetary policy review of FY18. The central bank, however, is expected to announce measures to suck outsurplus liquidity amounting to about Rs.4 lakh crore from the markets. A report. – (HBL Apr 6, 2017 p 1)
– 12 –
"Risks remain: Monetary policy committee has good reason to stay cautious" – An editorial.– (BS Mar 31, 2017 p 11)
Bandyopadhyay, Tamal – "Who cares about interest rate, stance of RBI's policy?" – An article.– (Mint Apr 3, 2017 p 6)
Bhusnurmath, Mythili – "Perhaps a little prep talk?" – Unlike the US Fed that takes care to prime markets,RBI seems to enjoy surprising them. A policy that, for instance, fails to appreciate structural impediments inmonetary policy transmission, or the interlinkages between non-performing assets (NPAs) in the bankingsector and credit growth and liquidity, misses the wood for the trees. An article. – (ET Apr 3, 2017 p 12)
Iyer, Aparna – "RBI: Plug the liquidity tap to avoid inflation déjà vu" – The last time the Reserve Bankof India (RBI) restrained itself from acting on excessive liquidity, it had to face a double-digit inflation rate inthe years ahead. An article. – (Mint Apr 4, 2017 p 4)
Kapur, Gaurav – "Policy statement to be more balanced" – RBI is likely to remain cautious and will awaitmore information to decide whether the risks to inflation have indeed dissipated sustainably or not. An article.– (BS Apr 5, 2017 p 13)
Rao, Radhika – "Monetary policy: Where to from here?" – The RBI would be well advised to tread thepath of least resistance by keeping rates on hold this year. An article. – (HBL Apr 4, 2017 p 8)
Rege Nitsure, Rupa – "Why RBI should turn 'accommodative'" – An article. – (Mint Apr 4, 2017 p 7)
Venkatesh, Latha – "A problem of plenty" – An article. – (Mint Apr 6, 2017 p 10)
NON-PERFORMING ASSETS"Gross NPAs of banks will continue to grow in FY18" – While the credit quality of India Inc showed the
first signs of a recovery inFY17, the banking systems gross non-performing assets (GNPAs) will continue torise in FY18, according to rating agencies Crisil and Icra. According to Icra, GNPAs will rise to 9.9-10.3% oftotal advances by the end of FY18. CRISIL, on the other hand, is more pessimistic and expects the same torise to 10.6%. A report. – (FE Apr 4, 2017 p 11)
"Reserve Bank set to get more teeth to chew on stressed assets: Govt plans legislation, may issueordinance as moving amendment through House may take time" – The government plans legislationthat will empower the Reserve Bank of India to deal much more effectively with stressed assets than beforeas part of a broader plan to resolve banks' bad loans, a long-festering issue that's been holding back theeconomy from achieving its full potential. A report. – (ET Apr 4, 2017 p 1)
Mohan, T T Ram – "Finally, action on bad loans?" – Empowering managements and strengthening governanceat public banks can resolve the bad loan problem. An article. – (H Apr 4, 2017 p 6)
Mukherjee, Atanu – "Slaying the NPA dragon" – The first step is to understand the size, extent and depth ofthe NPAs through continuing AQRs and the real value of the assets through sector and company specifictechno-economic assessments. Resolution of the situation requires that we separate the productive from thenon-productive assets and operationally turn them around, so that they become profitable. An article.– (FE Apr 1, 2017 p 9)
Singhal, Rajrishi – "NPAs: The new wedge in Centre-State relations" – An article. – (Mint Apr 5, 2017p 15)
– BAD BANK
Manuj, Hemant – "An argument for a bad bank" – A national asset reconstruction company can be formedto buy a significant part of the stressed assets. An article. – (FE Apr 6, 2017 p 9)
– 13 –
– PUBLIC SECTOR BANKS
"After GST gets a tick, FM looks to fix bad loans: NPAs of public sector banks stood at Rs.6 lakh crin Dec 2016; Jaitley says 20-30 accounts holding up funds, crippling social sector outlay" – Withthe Goods and Services Tax now 'fairly doable', Finance Minister Arun Jaitley said the banking sector will bethe next focus area for his team. The Centre and the Reserve Bank of India will soon announce measures toresolve bad loans. The high non-performing assets (NPAs) in the banking sector is largely because of 20 to30 accounts, Jaitley said at a 'Breakfast with BusinessLine' programme. A report. – (HBL Apr 3, 2017 p 1)
"Banks must devise mechanism to detect bad loans early" – Concerned over high level of bad loans inthe banking system, a parliamentary panel has asked PSU banks to devise a mechanism to detect stressedassets early so that urgent corrective steps can be taken. A report. – (HBL Apr 5, 2017 p 10)
– WILFUL DEFAULTERS
"Govt weighs options to tackle bad loans: Top wilful defaulters may face heat first" – Finmin & RBIstep up efforts as March deadline for completing asset quality review by banks looms. A report. – (FE Mar31, 2017 p 2)
NPCI"New PoS machines should have Aadhaar authentication facility" – Edited excerpts from an interview
with A P Hota, MD & CEO, NPCI. – (FE Apr 1, 2017 p 10)
"PoS machines at merchant outlets: NPCI plans 129% increase in 6 months" – The National PaymentsCorporation (NPCI) is planning to increase the number of point of sale (PoS) machines at merchant outletsto 5.5 million from 2.4 million now in the next six months. A report. – (IE Mar 31, 2017 p 13)
– UNIFIED PAYMENT INTERFACE
"NPCI tightens rules for banks looking to adopt UPI: Move a fallout of recent frauds, especially atBank of Maharashtra, says AP Hota" – Indian banks which have not adopted the Unified PaymentInterface (UPI) yet may henceforth find it difficult to provide their customers this latest payment solution.National Payments Corporation of India (NPCI), which launched UPI last year, is being extra cautious aboutgoing live with smaller banks after the Rs.25-crore fraud at Bank of Maharashtra (BoM) on February 22. Areport. – (HBL Apr 1, 2017 p 5)
PAYMENTS BANKS
– ADITYA BIRLA IDEA PAYMENTS BANK
"Aditya Birla Group gets RBI licence for payments bank" – Aditya Birla Idea Payments Bank Ltdbecomes the seventh entity to receive a final licence from the Reserve Bank of India (RBI) to set up apayments bank, according to a stock exchange notification. Except Vodafone M-Pesa Ltd, all payment banklicence holders have received the final approval. Last week RBI granted a final licence to Fino Pay Tech Ltdand National Securities Depository Ltd. – (Mint Apr 5, 2017 p 6)
– FINO PAYMENTS BANK
"Fino gets final licence for payments bank" – Fino Paytech said it has received the final license from theReserve Bank of India (RBI) to set up Fino Payments Bank. Earlier in January this year, Fino closed itsRs.400 crore domestic fund raising exercise to meet key RBI guidelines, including reducing foreign shareholdingin the company. – (FE Apr 1, 2017 p 10)
PRIORITY SECTOR LENDINGKant, Anshula – "Priority sector lending: Missing the woods for the trees?" – Tweaking existing guidelines
as well as making some policy changes will help align priority sector lending with current realities. An article.– (BS Mar 31, 2017 p 10)
– 14 –
SALE OF NPAs
– ASSET RECONSTRUCTION COMPANIES
"Loan recast: Lenders could sell NPAs worth Rs.35,000 cr to ARCs last fiscal" – Lenders managed tosell Rs.35,000 crore of non-performing assets (NPAs) to asset reconstruction companies (ARCs) in FY17,sources said, adding that banks had put on sale close to Rs.70,000-crore debt. On an average, assets weresold at a 50% discount, and therefore, the aggregate selling price of those assets was Rs.17,000 crore, addingthat Edelweiss ARC bought the largest chunk of bad loans at Rs.21,000 crore and was closely followed byPhoenix ARC and JM Financial ARC. Asset Reconstruction Company India Ltd (ARCIL), which used to bea big buyer of bad debt, has not been bidding for many assets recently. A report. – (FE Apr 6, 2017 p 10)
– BAD BANK / PARA
Vaidyanathan, K – "NPA valuation is key to bad bank/PARA success" – Models that use inputs like stockprice, leverage and volatility are useful to come up with a data-driven value for a potential haircut in any NPAsale. This reduces the element of subjectivity & means bankers have less to fear from vigilance while sellingNPAs. An article. – (FE Apr 5, 2017 p 6)
SMALL FINANCE BANKS
– AU SMALL FINANCE BANK
"Top global lenders pump over Rs.3K cr to AU Small Finance Bank" – Top global investors and lendersare lining up to back AU Small Finance Bank (AUSFB) that is expected to be listed on the stock exchangesbefore June as more and more of them bet on the bottom of Indian economic pyramid. Asian DevelopmentBank, International Finance Corporation, Dutch development bank FMO, Citicorp Finance, Franklin TempletonMF, ICICI Prudential MF have collectively pumped in Rs.3,365 crore in the past two-three months. Growthinvestor Warburg Pincus owns 22% in AUSFB. A report. – (ET Apr 5, 2017 p 10)
SURPLUS LIQUIDITY
– MONETARY POLICY
"Liquidity deluge" – A rate cut in October, a push on the pause button in December and a change in the policystance to neutral in February - the monetary policy committee of the Reserve Bank of India has managed totake the markets by surprise after its first three meetings. The fault is perhaps more with the market consensus- and journalistic commentary - on each of these occasions. A quick edit. – (Mint Apr 3, 2017 p 1)
"RBI may focus on squeezing excess liquidity in the system" – The Reserve Bank of India (RBI) willfocus on squeezing excess liquidity from the banking system in its monetary policy meeting on 5-6 April whilekeeping policy rates unchanged and retaining its neutral stance, according to a Mint survey. A report.– (Mint Apr 3, 2017 p 1)
THUN GROUP OF BANKS
– HUMAN RIGHTS IMPLICATIONS
Chakravarti, Sudeep – "Banks and the human rights shuffle" – An article. – (Mint Mar 31, 2017 p 17)
WILFUL DEFAULTERS"Bank staff plan campaign against wilful defaulters from April 20" – The All India Bank Employees'
Association (AIBEA) plans to unleash a national campaign to demand recovery of bad loans and actionagainst wilful defaulters. The campaign will begin from April 20 and culminate in a massive morcha beforeParliament by 50,000 bank employees in mid-September, according to C H Venkatachalam, General Secretary,AIBEA. A report. – (HBL Mar 31, 2017 p 6)
– 15 –
RBI CIRCULARS"Auction of Government of India Dated Securities" – (RBI Circular RBI/2016-2017/266 Ref. No. IDMD/
2580/08.02.032/2016-17 dated 03.04.2017)
"Investment by Foreign Portfolio Investors in Government Securities" – (RBI Circular RBI/2016-2017/265 A.P.(DIR Series) Circular No. 43 dated 31.03.2017)
AGRICULTURE & RURAL DEVELOPMENT
GRAMEEN BANK
– KERALA GRAMIN BANK - FINANCIAL LITERACY
"Kerala Gramin Bank reaches out to schools with financial literacy agenda" – Kerala Gramin Bank(KGB), owned by governments at the Centre and the State as well as Canara Bank, has launched a financialliteracy programme for school children. Styled FI@School, the programme has been designed to ensure thateach branch of KGB ties up with at least one school in the neighbourhood for imparting financial literacy. Areport. – (HBL Apr 5, 2017 p 13)
RURAL EMPLOYMENT
– MGNREGS
"8 states to get relief under MGNREGS" – A HELPING HAND The Centre declares eight states asdrought affected, makes them eligible to provide 50 days of extra work under the rural job scheme as waterscarcity often hurts demand for manual labour. Kerala, Rajasthan, Madhya Pradesh, Karnataka, Uttarakhand,Uttar Pradesh, Andhra Pradesh and Tamil Nadu would be eligible to provide 150 days of manual work perhousehold under the National Rural Employment Guarantee Scheme (NREGS) in the financial year 2017-18.A report. – (ET Apr 6, 2017 p 11)
INDUSTRY
EXIM BANK"Exim Bank to work with African Development Bank on co-financing of projects" – Export-Import
Bank of India (Exim Bank) plans to work with African Development Bank (AfDB) on co-financing ofprojects in Africa, according to David Rasquinha, Managing Director, Exim Bank. To begin with, both banksare likely to focus on co-financing of projects in power, agriculture and irrigation over the next 2-3 years.– (HBL Apr 3, 2017 p 13)
INFRASTRUCTURE SECTOR"Core sector growth slips to 1-yr low of 1% in Feb" – The growth of eight core sectors slipped to over
one-year low of 1% in February mainly due to decline in output of crude oil, natural gas, refinery products,fertilisers and cement. The growth rate of eight infrastructure sectors of coal, crude oil, natural gas, refineryproducts, fertilisers, steel, cement and electricity was 9.4% in February 2016. The core sectors, whichcontribute 38% to the total industrial production, expanded 4.4% in April-February this fiscal compared to3.5% growth in the same period previous financial year, according to the data released by the commerce andindustry ministry. – (BS Apr 1, 2017 p 3)
INSURANCE INDUSTRY"Business Standard Insurance round table: Licences shouldn't be given for 2-3 years" – Heads of
leading insurance companies came together to discuss the challenges facing the industry. A report.– (BS Mar 31, 2017 p 18)
– 16 –
MANUFACTURING SECTOR"Factory output grows at 5-month high on surge in orders: PMI" – Manufacturing sector grew at its
fastest pace in five months in March, marking the third straight month of expansion, on strong surge indomestic and export orders, according to a monthly survey. The survey also showed that the inflationarypressure eased in the sector as input prices rose at a slower pace and the corresponding easing of outputprices helped boost demand. A report. – (FE Apr 4, 2017 p 2)
MUTUAL FUNDS"MF industry assets grow 35% to Rs.18.3 lakh crore in FY17" – The asset base of mutual fund industry
in India surged 35 per cent to all-time high of Rs.18.3 lakh crore in 2016-17, driven by growing participationfrom retail investors. The assets under management (AUM) were at Rs.13.53 lakh crore at the end of 2015-16, according to the Association of Mutual Funds in India (Amfi). A report. – (FE Apr 6, 2017 p 11)
SMALL SCALE INDUSTRY
MUDRA YOJANAAdhikari, Anand – "Banking micro loans: The 'Mudra' risk" – Rising exposure under the Mudra scheme
can leave banks more vulnerable than before. An article. – (BusT 26(7) Mar 27, 2017 pp 62-67)
INTERNATIONAL ECONOMICS"From deprivation to daffodils" – All around the world, the economy is picking up. An article.
– (Eco 422(9032) Mar 18, 2017 pp 18-20)
"IMF raises fear of slowing productivity" – The world's economy is caught in a productivity trap thanks toan abrupt slowdown caused by the 2008 global financial crisis, which will yield more social turmoil if it is notaddressed, the International Monetary Fund warned. Christine Lagarde, the IMF's managing director, saidthat if productivity growth had followed pre-crisis trends, the output of the world's advanced economieswould be about 5 per cent higher. That would be the equivalent of adding another Japan - and more - to theglobal economy. A report. – (FT Apr 4, 2017 p 2)
"Leaders: On the rise" – A synchronised global upturn is under way. Thank stimulus, not the populists. Anarticle. – (Eco 422(9032) Mar 18, 2017 p 9)
EURO-ZONE"Eurozone jobless rate at 8-year low as economic recovery gathers pace" – More than 1m people have
been lifted out of unemployment in the eurozone during the past year, pushing the jobless rate to the lowest inalmost eight years and underscoring how the economic recovery is gathering pace across the bloc. 'The jobmarket recovery is in full swing and 2017 has started as strongly as 2016 ended', according to Bert Colijn,senior eurozone economist at ING. – (FT Apr 4, 2017 p 1)
"The eurozone recovery stays happily on track" – Governments must aim for dynamic economies andstable politics. An editorial. – (FT Apr 5, 2017 p 8)
FUND MANAGEMENT"Global fund management" – A weekly report. – (FT Apr 3, 2017 Supl. pp 1-16)
NEW DEVELOPMENT BANK"India submits proposals for $2-bn funding by NDB: FM" – India has submitted project proposals worth
$2 billion for funding by the New Development Bank (NDB), according to finance minister Arun Jaitley, asthe government steps up efforts to boost infrastructure for which the country needs investments worth anestimated Rs.43 lakh crore (about $646 billion) over the next five years. – (FE Apr 2, 2017 p 3)
– 17 –
"Will come out with criteria for new membership by June, says Kamath" – The New DevelopmentBank (NDB) is considering expansion of its membership and will announce the criteria for prospective newmembers by June, according to the multilateral agency's president K V Kamath. NDB's board of directorsfrom its member nations approved the terms, conditions and procedures for admission of new members. Areport. – (IE Apr 2, 2017 p 15)
MISCELLANEOUS"Jeff Bezos is now the world's second richest person" – Jeff Bezos has leapt past Amancio Ortega and
Warren Buffett to become the world's second-richest person. Bezos, 53, added $1.5 billion to his fortune asAmazon.com Inc. rose $18.32 on Wednesday, the day after the e-commerce giant said it plans to buy Dubai-based online retailer Souq.com. Bezos has a net worth of $75.6 billion on the Bloomberg Billionaires Index,$700 million more than Berkshire Hathaway Inc. Buffett and $1.3 billion above Ortega, the founder ofInditex S.A. and Europe's richest person. Amazon founder has added $10.2 billion this year to his wealth.Microsoft co-founder Bill Gates remains the world's richest person with $86 billion. A report. – (Mint Mar 31,2017 p 2)
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