Bulletin 16 - 06

Issue 13 by 31
06/02/2016
KURINJI
E - BULLETIN
STAFF TRAINING COLLEGE, CHENNAI
Issue
No:
AN E-COMPILATION OF BANKING
16/06 ARTICLES
Saturday, August 03, 2013
Bank of India Staff Training College, Chennai Issue No.16/06
Phone: 044-28132731, 28130896, 28133815 e- mail Id: stcchennai@bankofindia.co.in (For Private Circulation Only)
Foreword
In the recent times, we have been witnessing manifold challenges emerging

in the arena of banking viz. stressed asset quality, shrinking NIMs, issues
with regard to rebalancing of asset portfolio, managing liabilities with an
eye to increasing the bottom-lines ..etc.
In these fast-changing and challenging times, our team members at all

level are required to have full awareness of the news and happenings in the
areas concerning them.
It is in this context that our training establishments are required to play a

role as facilitators. We as a training college are fully seized of this role
and the instant effort of coming out with this E-Bulletin is our modest but
focussed initiative in the direction of providing our people a ready access
and insight into the critical & topical topics, which have been in the news.
Your feedback & comments on its utility are welcomed and will enable us to
improve upon the publication with the above-referred objective in mind.
K. N. Mann,
DGM & Prinicpal
Staff Training College
Chennai
Saturday, February 06, 2016 Page 2 of 21

E - Bulletin
(For Private Circulation only)
Index
BANKING & FINANCE.................................................................................................................................... 4
PSBS NEED TO LOOK AT INDUCTING FINANCIAL FIRMS AS STRATEGIC INVESTORS..............................................................4
RISE IN NPA, PROVISIONS HURT PRIVATE BANKS; PRESSURE LIKELY TO CONTINUE............................................................5
BANKS TOLD TO CONDUCT INTERNAL AUDIT............................................................................................................. 7
ECONOMY & POLICY..................................................................................................................................... 8
NITI AAYOG TO FINMIN: STAY ON FISCAL CONSOLIDATION ROAD MAP.........................................................................8
INTEREST RATES NOT HOLDING BACK ECONOMY: RAJAN........................................................................................... 10
MISCELLANEOUS........................................................................................................................................ 12
DBT PUSH: BANKS TOLD TO WORK WITH KIRANA, CHEMISTS SHOPS, EX-SERVICEMEN......................................................12
RBI UPDATES NORMS OF FOREIGN EXCHANGE MANAGEMENT ACT.............................................................................13
SBI ROLLS OUT HOLIDAY RD ACCOUNT WITH THOMAS COOK....................................................................................13
INFORMATION TECHNOLOGY..................................................................................................................... 15
HDFC BANK TO MAKE ITS ATMS MINI-BRANCHES.................................................................................................. 15
MIND VOICE............................................................................................................................................... 17
LIFE IS LIKE THAT............................................................................................................................................. 17
HEALTH...................................................................................................................................................... 19
5 TIPS FOR A HEALTHY BRAIN...................................................................................................................... 19
LET US LEARN……........................................................................................................................................ 21

BANKING & FINANCE
PSBs need to look at inducting financial firms as strategic

investors
India needs to examine the feasibility of inducting ‘skilled financial firms’
as strategic investors with say 10 or 15 per cent stake in public sector
banks (PSBs), RBI Governor Raghuram Rajan has said.
The experience of countries like China who inducted such investors is

worth studying, Rajan said in his C.D.Deshmukh lecture in the capital .
Having strategic investors holding say 10-15 per cent stake in PSBs could
drive governance in the PSBs and help them deal with their current
problems.
Experts Take
Many experts reckon that existing bank nationalisation law may have to be
amended if the intent is to allow “non-resident strategic investors” with 10
per cent or 15 per cent stake in PSBs.
This is because the non-resident shareholding in PSBs is currently capped

at 20 per cent by law.
S.N.Ananthasubramanian, an advisor to public sector banks, told Business

Line that many such “trial balloons” have been floated in the past with no
credible steps.
“Unlike private sector banks, the 20 percent limit of non-resident holding

forms part of bank nationalisation Act and this calls for an amendment (if
non-resident strategic investors are to be allowed to take say 10 or 15 per
cent stake in PSBs)”, he said..
This type of amendment is a long way off, he said.
Bank Mergers

Rajan said in his lecture that talking of bank mergers, which take a lot of
management attention, is probably premature.
This is especially so when each bank management is preoccupied with

dealing with stressed assets, he said.
As bank health recovers, the issue of PSB mergers can be addressed,

Rajan said.
Undervalued Assets
Rajan said that RBI is also working on identifying currently “non-

recognizable capital” that is already on bank balance sheets, such as
undervalued assets.
“The RBI could allow some of these to be counted as capital as per Basel
norms, provided a bank meets minimum common equity standards”, Rajan
said.
These remarks meant that RBI may in coming days allow banks’ revalued
assets to be counted as capital
Reacting to Rajan’s remarks on this issue, V Kannan, former Chairman &

Managing Director of Vijaya Bank, said this proposal when implemented
would be a welcome step.
“This will supplement the efforts of banks in mobilising capital. The capital
requirement of PSBs is very high”, Kannan said.
In early nineties too, the RBI had allowed certain revalued assets to be
counted as capital, he said.
Source: Business Line
Rise in NPA, provisions hurt private banks; pressure likely to

continue
Private sector banks continued to outpace system growth in terms of

credit and deposit growth in the October-December quarter; but the rise
in bad loans for some lenders emerged as the biggest worry.

For instance, gross non-performing assets (NPAs) of ICICI Bank soared

33.3 per cent to Rs 21,149 crore compared with Rs 15,858 crore in the
quarter ended September 2015. Gross bad loans as a percentage of total
loans also increased to 4.72 per cent in the December quarter compared
with 3.77 per cent in the quarter ended September. On a sequential basis,
net NPA increased to 2.28 per cent in the quarter ended December from
1.65 per cent in the quarter ended September.
It is because of the increase in provisions with the surge in bad loans that
profits for these lenders also came in lower than the previous quarters. In
the quarter ended December, it was for the first time in the last 23
quarters that ICICI Bank reported net profit of only four per cent. Prior
to this, the bank had been posting net profit of anywhere between 44-12
per cent.
A similar story played out at Axis Bank, which reported only 15 per cent
growth in net profit, first time in the past 11 years. In the last 12
quarters, the lender had managed to always grow its bottom line at an
average of 20 per cent.
Axis Bank also saw pressure on asset quality with gross NPAs increasing to
1.68 per cent against 1.38 per cent in the quarter ended September. Net
NPA also increased to 0.75 per cent from 0.44 per cent in the
corresponding quarter last year.
This spike in NPAs for the lenders occurred after a systemic review
carried out by the Reserve Bank of India (RBI), which has asked banks to
recognise certain assets in the December- and March-ended quarter of
this financial year.
According to a CARE Ratings review, gross NPAs of these 16 banks, which

includes primarily private banks, moved up from 2.21 per cent to 2.29-2.71
per cent in three years.
Going ahead, the management of most banks have guided for a tough
fourth quarter ahead considering that the economic environment

continued to remain benign. Analysts believe the rise in bad loans would
also not be favourable for net interest margin.
Another private sector lender which saw bad loans on its books increase
was Federal Bank. Its gross NPAs rose to 3.15 per cent, from 2.19 per
cent at the end of the third quarter of 2014-15. Net NPAs of the bank
also rose to 1.66 per cent of the total assets, from 0.69 per cent in the
year-ago period. The lender also saw a 38.5 per cent drop in net profit.
Some other lenders such as HDFC Bank, YES Bank and Kotak Mahindra
Bank saw only marginal pressure on asset quality and provisioning. However,
despite this, analysts continue to remain cautious about the outlook of
even these lenders.
“Headline gross NPA (of YES Bank) grew at a relatively lower rate by 13.7
per cent q-o-q (quarter-on-quarter), which is lower compared to peer
banks with higher corporate exposure. We have turned cautious on the
bank’s asset quality due to ongoing RBI’s evaluation as it has comparatively
higher exposure to corporate in their loan as well as bond portfolio,” said a
Reliance Securities report.
Source: Business Standard
Banks told to conduct internal audit
All public sector and private banks have been asked by the RBI to conduct
a “thorough internal audit” and put the report before their respective
audit committees, as part of the central bank’s efforts to check
fraudulent foreign exchange transactions.
The move comes in the wake of irregularities that came to light last year
in ₹6,100 crore import remittances effected by Bank of Baroda’s Ashok
Vihar branch here.
A circular has been issued to all scheduled commercial banks, advising

them to conduct a thorough internal audit and place the report before
audit committee of the board of the respective banks and to forward the
summary of findings to RBI, the central bank said.

ECONOMY & POLICY
NITI Aayog to FinMin: Stay on fiscal consolidation road map
Even as the finance ministry is grappling with the dilemma of whether to

adhere to the path of fiscal consolidation or perk up the economy, the
NITI Aayog has asked the ministry not to defer the fiscal consolidation
road map in Budget 2016-17. The ministry had already postponed the road
map by a year in the 2015-16 Budget.
According to sources, the Aayog was of the view that more space could
have been taken with regard to the fiscal deficit in this year's Budget.
From 2016-17, the commitment to meet the deficit target should be
adhered to, said the body which replaced the Planning Commission in
January 2015.
According to the Aayog, postponement of the road map for two years in a
row would damage the perception of investors about India.
Finance minister Arun Jaitley had received three pieces of advice from
economists and industry about adhering to the fiscal deficit targets.
While some said it should be adhered to, others said it should be
deferred. A third set of people asked the minister not to bind himself
with any deficit target.
"I came across all shades of opinion on the fiscal consolidation road map.
While industry wants more spending, economists are sharply divided," the
finance minister had said at an event recently.
According to him, the target of fiscal deficit depends on the growth

projection and revenue buoyancy.

On Friday, Reserve Bank of India (RBI) Governor Raghuram Rajan had

advised the government not to defer the fiscal consolidation road map. On
the other hand, an overwhelming majority of economists polled by Reuters
had wanted Jaitley to postpone the road map for one more year. "The
consolidated fiscal deficit of the states and the Centre in India is by far
the largest among countries we like to compare ourselves with; at present
only Brazil rivals us on this measure," Rajan had said. He had cited
International Monetary Fund estimates to state the consolidated fiscal
deficit of the Centre and states went up from seven per cent in 2014 to
7.2 per cent in 2015. "So we expanded the aggregate deficit in the last
calendar year. With Ujwal Discom Assurance Yojana, the scheme to revive
state power distribution companies, coming into operation in the next
financial year, it is unlikely that states will be shrinking their deficits,
which puts pressure on the Centre to adjust more," he had said while
adding it is the IMF figures which investors watch.
He had also questioned arguments by those favouring the fiscal expansion

on the grounds that it is necessary to generate the growth needed to put
our debt to gross domestic product (GDP) ratio back on a sustainable path.
"This is a novel argument. Ordinarily, one would think that a government

should borrow less, that is, run lower fiscal deficits, in order to reduce its
debt. But, there is indeed a theoretical possibility that the growth
generated by the fiscal expansion is so great as to outweigh the additional
debt that is taken on. Unfortunately, the growth multipliers on government
spending at this juncture are likely to be much smaller; so more spending
will probably hurt debt dynamics," he said.
Many believe RBI might not cut rates at its policy review on Tuesday. They
said, the central bank would see the government commitment to fiscal
deficit before cutting the policy rate.
On the other hand, the mid-year analysis of the economy for 2015-16
advocated the need to review fiscal consolidation road map due to the one
rank one pension and the implementation of the seventh pay commission,
which will add an additional 0.65 per cent of GDP to expenditure.

The government has already deferred a fiscal consolidation road map for
one year. The ultimate target of reining in the deficit at three per cent of
GDP was to be originally met next year. But, it was deferred to 2017-18.
For the next year, the target was relaxed to 3.5 per cent.
For the current financial year, the target was adjusted to 3.9 per cent of
GDP or Rs 5.5 lakh crore against the original target of 3.6 per cent. As
much as 88 per cent of that target was met by December.
Interest rates not holding back economy: Rajan
A day after leaving interest rates unchanged for the second time in as
many months, Reserve Bank of India (RBI) Governor Raghuram Rajan on
Wednesday said interest rates were not holding back the economy. He also
said RBI’s move to clean up balance sheets of banks is not aimed at
reducing the risk-taking appetite of company owners.
He told told ET Now there was “a time when people said I was nuts to even
think of bringing inflation down below six per cent. They said I was
subjecting the economy to severe stress. But all that is in the background
now.”
In an apparent rejection of theory that slump in oil prices has helped bring
down inflation, he said the government has “kept back” 75 per cent of the
oil price bonanza through higher taxes.
“That means it is not oil prices. Yes, commodities have helped and
government's food management has helped too. But you should be gracious
enough to give some credit where credit is due,” he said.
Inflation, he said, has come down largely according to the path that RBI
set out.

Asked who should get the credit for the fall in inflation - commodity slide,
the government's food management and fiscal responsibility, or monetary
policy, he said, “We can debate on that, too.”
But what is more important lies in borrowing, he said.
“Firms now seem to be very reluctant to take on credit. Banks have not,
therefore, felt the need to pass through rate cuts to them. But savings
also needed a big change. Remember, our household savings had fallen
considerably, and even now they are not at a point where we are
comfortable.” Rajan said RBI uses “appropriate” instruments, including
open market operations to infuse long-term liquidity, whenever needed.
“When there is a need for short-term liquidity — which happens, for

example, when government balances build up — we resort to short-term
instruments,” he said.
Yesterday's government announcement to buy back Rs 20,000 crore worth

of bonds is part of liquidity easing as it would mean money is flowing into
the system on a permanent basis.
“We have no intention of keeping liquidity tighter. In fact, we have

supplied through various instruments whatever the market is looking for.
But our longer-term instruments are not fully subscribed to yet even
though they are available,” he said.

MISCELLANEOUS
DBT push: banks told to work with kirana, chemists shops,

ex-servicemen
To give its ambitious financial inclusion schemes a further push, the

Centre has asked banks to work with local kirana and chemist shops as well
as ex-servicemen as linkages for cash transfers in remote areas.
“We are talking to banks to look at these outlets and also other existing
institutions including post offices and common service centres to further
financial inclusion in far flung areas where banking services are not
available,” Financial Services Secretary Anjuly Chib Duggal on Wednesday
said at a workshop on “Social Security Platform – the Way Forward”.
The Centre plans to rope in gramin dak sewaks, post office, payments
banks and ration shops as well into the financial inclusions architecture. It
has set a target for establishing 20 lakh points of presence across the
country’s six lakh villages by March 31, 2017, said Peeyush Kumar, Joint
Secretary, Direct Benefit Transfer (DBT).
But, noting that these outlets can work as a “cash out” facility or point for
withdrawing DBT, Duggal said the Centre is also working to expand
doorstep banking services such as delivery of old age pensions.
As many as 800 “dark areas” have been identified where banking services
are very poor and the Department is working with banks to improve
internet connectivity and Bank Mitra services in these places, she said.
Additionally, the Department of Financial Services is also working with

banks to provide mobile number seeding with bank accounts so that
beneficiaries can get alerts on DBT transfers, Duggal said.
Former Finance Secretary Sumit Bose said that the Expenditure

Management Commission too has whole-heartedly supported the DBT. “We
have submitted our two-part final report to the Finance Ministry last
month,” said Bose, who is a member of the Commission.

Source: The Business Line
RBI updates norms of Foreign Exchange Management Act
With an aim to promote ease of doing business, the Reserve Bank of India
(RBI) on Thursday came out with nine updated rules under the Foreign
Exchange Management Act (Fema), 1999.
RBI said that respective original notifications and amendments had been
cancelled. "Keeping in view the objective of promoting 'ease of doing
business', a need was felt to consolidate the regulations and rationalise
them in the light of evolving business environment and changing practices
in cross-border transactions relating to external trade and payments,"
RBI said.
Fema, enacted in 1999 with 25 original notifications, came into force with
effect from June 1, 2000. Over the years, the regulations framed under
the Act have had over 330 changes.
SBI rolls out holiday RD account with Thomas Cook

State Bank of India has entered into a partnership with Thomas Cook
India to offer the Thomas Cook Holiday savings account to its customers.
Through this offering, SBI’s online banking customers will be able to pre-
select a holiday from Thomas Cook and save for it through a recurring
deposit with the bank. Those who stay invested will receive a final top-up
from Thomas Cook India.
India’s largest bank, in a statement, said customers will be offered an

inflation-proof holiday as they pay for a future holiday at today’s prices
while earning interest on the linked e-recurring deposit. Should they
change their mind due to a change in circumstances they can always opt
out of the holiday package at any stage at zero cost.

“The HSA involves a simple online process: select the holiday package from
Thomas Cook India’s portal; log-on to www.onlinesbi.com to start a
recurring deposit account with SBI based on the cost of the holiday.
“The cost of the package tour is split into 12 monthly instalments with a
free 13{+t}{+h} instalment via a combination of accrued interest and a top-
up from Thomas Cook India,” the bank said.
Rajnish Kumar, Managing Director (National Banking Group), SBI, said:

“We find that people don’t plan their holidays in advance and end up taking
last minute loans to finance the same.”

INFORMATION TECHNOLOGY
HDFC Bank to make its ATMs mini-branches
HDFC Bank automated teller machines (ATMs) might soon give customers
instant personal credit, top-up loans and approve credit card applications.
The move to make ATMs more than just a cash dispensing tool would help
the lender.
Arvind Kapil, senior executive vice-president (unsecured loans, home and

mortgage loans), HDFC Bank, said making ATMs double up as branches will
lead to cost efficiency.
"There are investments that have already been made by the bank so we
are building up on that. Moreover, for any offering to become successful,
it is important that we build scale, which can be easily achieved over the
widespread ATM network that we have."
At the end of quarter ended December, the bank had 11,843 ATMs and
4,281 branches. The cost of setting up a branch was typically 10 times
more than the cost of setting up an ATM.
In the first phase of the exercise, which starts in February, the bank
would offer loans under 10 seconds across its ATM network. Last year, the
bank had launched a new product using its backend advance analytics that
can disburse personal loans in under 10 seconds. At the end of the third
quarter of this financial year, the size of the bank's personal loan book
stood at Rs 35,494 crore against Rs 24, 988 crore in the same quarter of
the previous financial year.

The second phase, which would begin in April, would have ATMs disbursing
top-up loans, renewing gold loans and approving credit cards. These
services would initially be offered to bank customers. The lender would
use advanced analytics to determine a customer's worthiness.
However, Kapil said these ATMs would now also become an acquisition tool
and would help in reaching out to potential customers. "We have a click-to-
call facility as well which can be used by non-HDFC Bank customers. Once
you see the offers on the ATM and you want to avail of these, we will call
you back in less than two minutes. With this, we can all get past the
barrier of reaching out to customers who are in the do-not-call registry as
they would have authorised us to call them (by using the ATM facility)."
These ATMs would become a convenient touch-point for customers instead

of branches. "In the pilot project that we undertook, we realised that 40-
42 per cent of the customers were using the offers on ATM outside the
branch-hour timing. And out of this 50 per cent were doing it between 5
and 9 am."

MIND VOICE
Life is like that
A minister was talking to press regarding some important issues of the

State. In every sentence he added the words “ As per instructions from
the Honourable Chief Minister “. This reminds me of an incident happened
during my initial days of banking career. In those days, when everything
was manual, we used to write remarks on top of the ledger folio. It is like
what we are entering in the ‘memo pad’ in the system. Suppose we have to
obtain photograph of the customer or the customer has lost his cheque
book , we note them in the ledger. One of the clerks wrote the following
in a ledger folio: “Party reported deceased as per Manager’s instructions”.
I got promoted as an IT Officer and was posted in a branch and another

seven branches were allotted to me to look after any IT related issues. In
those days computerisation was at the initial stage and most of the staff
were not tech-savvy. Maximum I try to solve the problems over phone
itself instead of visiting the branches because I was given an important
assignment at the parent branch.
One evening (normally all the problems will happen only in the evening so
that the day of the IT officer will always end at midnight) I received a
call from one of the branches under my cluster that the officer was
finding it difficult to confirm a Stop Payment Instruction entered by a
clerk in our TBM package (CIBEX). The account was in unconfirmed status
and the confirmation could not be done using the menu option available in
the package. The same can be solved by running a utility file. The CD
containing the utility files were in my personal custody. But I used to keep
the same in a separate directory in each branch.
I was giving instructions step by step to that officer to copy that file in
the CIBEX working directory to solve the problem. The file was copied
and I asked the officer to run the utility by typing the filename in the
command prompt. The system asked to enter the subsystem code ie.
Whether SB or CD or CC or OD. The office typed as “cd” and the system
showed error message “invalid subsystem code”. All my attempts failed
and the Manager of that Branch asked me to rush immediately to solve the
issue so that they can do the day end procedure. The branch was 50 KMs
away and I reached the branch within one hour. The Manager was in a
tensed mood and asked me not to solve the issue on my own and I had to
issue instructions to the same officer to whom I was talking over phone.
Everything was perfect but at the time of entering the subsystem code
the officer was using small letters “cd” instead of Capita letters “CD”.
Had there been video call facility I could have solved the issue over phone
itself. Seeing all these things the Branch Manager got annoyed and
shouted at me “When you are giving instructions over phone you should
remember that you are talking to a fool on the other side”. I saw the face
of the officer becoming reddish. I immediately replied to the Manager
jovially “At that time I was not talking to you, Sir” to ease the situation.
The Manager took it in a lighter vein. A burst of laughter by all the three.
Source: Mr. N. Balasubramanian, Senior Manager, IT Faculty, STC Chennai

HEALTH
5 Tips for a Healthy Brain
1. Engage Yourself in the Complex and Novel
Learning new information and skills across your entire lifespan helps to
keep your brain strong even in the later years of life. Activities that have
the highest value for brain health are those that are novel and complex to
each particular person. What is easy for one person may be challenging for
another, so the things that challenge you the most have the most value for
your brain.
It is the novel and complex that will challenge the brain, stimulate
learning, and promote synaptic density, decreasing the likelihood that
neurodegenerative disease will manifest. With practice of an activity or
skill, your synaptic density increases, and what was once novel and complex
can easily become rote and passive. Therefore, continually learning new
things will ensure your brain is always expanding and staying sharp!
2. Exercise Regularly
Exercise has the positive effect of enhancing successful aging. Exercise

performed on a routine basis may not only reduce the risk of
neurodegenerative disease, but also may help to slow the course of an
existing disease, such as Alzheimer's.
Exercise can improve our energy levels, sense of well-being, sleep, and
brain health. Engaging in regular exercise also reduces the risk of
depression and anxiety. Identifying why we do not exercise permits us to
systematically break down our barriers, and to slowly change our behaviors
towards a healthy lifestyle.
3. Socialize and Have Fun!
Friends provide opportunities to enable the sharing of experiences, new

learning, challenges, emotions, trust, and understanding. Friendship also

provides the necessary motivation towards activity and involvement.

Engaging in new pursuits with friends often helps develop new life roles,
which provide us with an opportunity to feel appreciated, enjoy life, laugh,
and have fun. Parent-teacher organizations, church, sports teams, and
other groups and organizations are great places to develop relationships
with other people.
4. Be Health Conscious
It is important for us to take control of our health and understand that

we are in charge of managing of our bodies. Physicians work for us, and
when it comes to our bodies we are the boss. Once we establish our own
role in the management of our health, the importance of a close and
trusting relationship with our physician becomes apparent.
Open communication can help the physician make sound decisions regarding
our health. A team approach can help establish a united front against
illness, and more importantly, promote our health. To keep yourself at your
healthiest, maintain regular physical examinations, and follow your
physician's advice.
5. Slow Down and Appreciate the Silence
Our society is evolving at an increasing rate, leaving us with little time to

relax and process our environment. Our brains require time to process
information more deeply, in order to gain more benefit from our daily
experiences. The implications of a fast-paced lifestyle are chronic stress
and other negative effects on our health and well being. Reducing demands
we place on ourselves is an important step towards stress reduction, and a
more fulfilling life.
A new field of study referred to as neurotheology has been advancing the

study of the neurophysiological correlation between prayer and subjective
experience. Multiple studies have shown a relationship between spirituality
and the immune system. As we continually learn more about the potential
of positive thoughts influencing health, people are beginning to integrate
these practices more frequently into their daily lives, and experiencing
life-changing results.
LET US LEARN……..

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Issue 13 by 31

STAFF TRAINING COLLEGE, CHENNAI

In the recent times, we have been witnessing manifold challenges emerging

In these fast-changing and challenging times, our team members at all

It is in this context that our training establishments are required to play a

Saturday, February 06, 2016 Page 2 of 21

Saturday, February 06, 2016 Page 3 of 21

BANKING & FINANCE

PSBs need to look at inducting financial firms as strategic

The experience of countries like China who inducted such investors is

This is because the non-resident shareholding in PSBs is currently capped

S.N.Ananthasubramanian, an advisor to public sector banks, told Business

“Unlike private sector banks, the 20 percent limit of non-resident holding

This type of amendment is a long way off, he said.

Saturday, February 06, 2016 Page 4 of 21

This is especially so when each bank management is preoccupied with

As bank health recovers, the issue of PSB mergers can be addressed,

Rajan said that RBI is also working on identifying currently “non-

Reacting to Rajan’s remarks on this issue, V Kannan, former Chairman &

Source: Business Line

Rise in NPA, provisions hurt private banks; pressure likely to

Private sector banks continued to outpace system growth in terms of

Saturday, February 06, 2016 Page 5 of 21

For instance, gross non-performing assets (NPAs) of ICICI Bank soared

According to a CARE Ratings review, gross NPAs of these 16 banks, which

Saturday, February 06, 2016 Page 6 of 21

Source: Business Standard

Banks told to conduct internal audit

A circular has been issued to all scheduled commercial banks, advising

Saturday, February 06, 2016 Page 7 of 21

Source: Business Line

ECONOMY & POLICY

NITI Aayog to FinMin: Stay on fiscal consolidation road map

Even as the finance ministry is grappling with the dilemma of whether to

According to him, the target of fiscal deficit depends on the growth

Saturday, February 06, 2016 Page 8 of 21

On Friday, Reserve Bank of India (RBI) Governor Raghuram Rajan had

He had also questioned arguments by those favouring the fiscal expansion

"This is a novel argument. Ordinarily, one would think that a government

Saturday, February 06, 2016 Page 9 of 21

Source: Business Standard

Interest rates not holding back economy: Rajan

Saturday, February 06, 2016 Page 10 of 21

But what is more important lies in borrowing, he said.

“When there is a need for short-term liquidity — which happens, for

Yesterday's government announcement to buy back Rs 20,000 crore worth

“We have no intention of keeping liquidity tighter. In fact, we have

Source: Business Standard

Saturday, February 06, 2016 Page 11 of 21

DBT push: banks told to work with kirana, chemists shops,

To give its ambitious financial inclusion schemes a further push, the

Additionally, the Department of Financial Services is also working with

Former Finance Secretary Sumit Bose said that the Expenditure

Saturday, February 06, 2016 Page 12 of 21

Source: The Business Line

RBI updates norms of Foreign Exchange Management Act

Source: Business Standard

SBI rolls out holiday RD account with Thomas Cook

India’s largest bank, in a statement, said customers will be offered an

Saturday, February 06, 2016 Page 13 of 21

Rajnish Kumar, Managing Director (National Banking Group), SBI, said:

Source: Business Line