Bulletin 16 - 08

Issue 13 by 31
20/02/2016
KURINJI
E - BULLETIN
STAFF TRAINING COLLEGE, CHENNAI
Issue
No:
AN E-COMPILATION OF BANKING
16/08 ARTICLES
Saturday, August 03, 2013
Bank of India Staff Training College, Chennai Issue No.16/08
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 20, 2016 Page 2 of 23

E - Bulletin
(For Private Circulation only)
Index
BANKING & FINANCE.................................................................................................................................... 4
RBI ASKS BANKS TO SUBMIT PROFORMA IND AS FINANCIAL STATEMENTS FROM SEPT.......................................................4
RBI HOPES TO PUT ON-TAP BANKING LICENSE SOON: RAGHURAM RAJAN.......................................................................5
GOVT CONSIDERS 'BAD BANK' PROPOSAL DESPITE DOUBTS.......................................................................................... 8
ECONOMY & POLICY................................................................................................................................... 10
RAJAN PLAYS LONG GAME BY BUILDING RESERVES CHEST AS RUPEE SLUMPS...............................................................10
DEPOSITORS’ BODY SEEKS ASSURANCE FROM RBI ON BANKS’ FINANCIAL HEALTH...........................................................12
MISCELLANEOUS........................................................................................................................................ 14
PSBS GEARED TO MEET CAPITAL NORMS UNDER BASEL-III: IBA.................................................................................14
RBI TO VISIT BANKS INCOGNITO TO CHECK CUSTOMER DEALINGS................................................................................14
INFORMATION TECHNOLOGY..................................................................................................................... 16
SOON, TRANSFER MONEY FROM MOBILE TO POS WITHOUT USING A CARD...................................................................16
MIND VOICE............................................................................................................................................... 18
STRUGGLE BETWEEN TWO EXTREMES................................................................................................................... 18
HEALTH...................................................................................................................................................... 20
10 SIMPLE AND NATURAL WAYS TO BOOST YOUR IMMUNE SYSTEM..........................................................................20
LET US LEARN……........................................................................................................................................ 22

BANKING & FINANCE
RBI asks banks to submit proforma Ind AS financial

statements from Sept
In a clear pointer to RBI wanting banks to go the IFRS way, the central
bank has issued new directives on the implementation of International
Financial Reporting Standards (IFRS) converged Indian Accounting
Standards (Ind AS) by banks.
Banks have been asked to submit proforma Ind AS financial statements to

the RBI from the half-year ended September 30, 2016, onwards.
The implementation of Ind AS is expected to significantly impact the

financial position of banks, including the adequacy of capital, taking into
account Basel-III capital requirements. Banks have now been advised to
place quarterly progress reports before their boards.
Also, each bank will now be required to set up a steering committee —

headed by an executive director — comprising members from cross-
functional areas of the bank to immediately initiate the implementation
process.
The RBI also wants the audit committee of the bank's board to oversee
the projects of the Ind AS implementation process.
IND AS ROADMAP
According to the roadmap announced by the Government, banks have to

comply with Ind AS for financial statements for the accounting periods
beginning from April 1, 2018.
Ind AS will be applicable to both standalone as well as consolidated

financial statements.
Banks are permitted to adopt Ind AS only as per the specified timelines
and not earlier.

EXPERT TAKE
Commenting on the latest RBI directives, Charanjit Attra, Partner in

member firm of EY Global, said this was definitely a positive move.
"The banking regulator wants banks to gear up for IFRS converged Ind AS
and enable them to become internationally competitive," he said.
Attra, however, noted that the short time period available for providing
proforma financial statements may turn out to be a challenge for banks.
Indian banks are at varying stages of preparedness when it came to

adoption of Ind AS. "Low-to-medium level" is how Attra described the
state of preparedness.
Some private sector banks have reached out to consultants to enable them
to migrate to Ind AS, while public sector banks have so far preferred to
go slow on this front.
Sai Venkateshwaran, Partner and Head of Accounting Advisory Services,

KPMG in India, said that RBI has now gone into detail as to how banks will
need to approach the adoption of Ind AS.
"RBI has now set out its expectations. The central bank wants to use the
two year window to firm its final approach on issues like capital adequacy,
provisioning for loan loss under Ind AS framework", Venkateshwaran said.
Requiring proforma financial statements would ensure that RBI is not

caught napping when the April 2018 implementation date becomes a reality
for banks, he noted.
Source: The Business Line
RBI hopes to put on-tap banking license soon: Raghuram

Rajan
Reserve Bank of India (RBI) Governor Raghuram Rajan said the central
bank wants to put universal bank license on-tap soon and wished to see
different kind of institutions compete with each other and bring
innovation in the process.
As a regulator, the RBI will create “road bumps,” but will not stop the
institutions from doing experimentation. For example, if card issuing
companies are willing to take stand as guarantor against misuse of their
cards, the central bank is ready to allow one-factor authentication, from
the current restricted two-factor norms.
“More participants in the financial system will increase depth. But we have
to be careful that we always move forward step by step,” Rajan said at the
fourteenth K P Hormis Commemorative Lecture, at Kochi. The lecture was
broadcast online.
“As the country develops, we will increasingly be creating supporting

framework so that banks can seek profitability. We will bring more
institutions, not traditional institutions, but many new different kinds of
institutions," he added.
“After a decade or so, we have had two private banks coming up last year,
then this year as well as in the next number of payments banks and small
finance banks will enter and we hope to put the universal bank license back
on-tap soon,” Rajan said.
The RBI governor refused to comment on fiscal deficit so close to the

Union Budget, scheduled for 29 February.
“So close to the Budget, I don’t want to talk about fiscal deficit. But if
there is to be decided that how much to weigh for macroeconomic stability
or for growth, as a central banker, I would definitely like to see more
weight on the macro stability,” Rajan said, replying to a query after the
lecture.
Replying to another question from the audience, Rajan said low credit
growth by public sector banks is actually a good thing for now.
“Sensibly, banks are getting more discriminatory on credit growth.

Actually, it is a good development. That way they will be prepared when
the economy is coming up and need credit,” Rajan said, adding, “ Let us
ensure that we build up capacity before we can fund growth. Currently
private sector banks are funding growth. PSU banks will once again take
over once they are cleaned (of their bad debts).”
Under its asset quality review programme, RBI is egging banks to

recognise their hidden bad debts so that the balance sheets are cleaned
by March 2017. This has caused havoc in bank results and losses reported
in the December quarters were enormous, hammering down the bank
stocks.
In his speech on financial sector reforms, Rajan said the market turmoil
will calm down soon and banks will be better shaped. With the new
entrants like payments banks and small finance banks entering the field,
competition will be immense in the banking system but nobody has added
advantage over the other. While payments banks will ride on telecom
networks to ensure last mile reach and include every Indian in the banking
field, small finance banks, with their limited lending operation of up to Rs
25 lakh, will be of help for the small and medium firms. Large banks,
meanwhile, have the means to fund large corporate and infrastructure
loans and the central bank is in the process of figuring out how to deal
with the risk in this kind of large institutions.
It is important that public sector banks be allowed to develop as individual

organisations, rather than remain homogeneous institutions, but for that
independent bank boards are a necessity. From next financial year, the
bank board bureau will appoint board members of banks in a transparent
manner and that will strengthen the bank boards.
However, adequate compensation is important.
“In trying to attract people of capability, integrity, more of that we will

have to figure out how we pay a decent market compensation to board
members. If we are really trying to get people to work for government
enterprises, we can’t rely only on their patriotism,” Rajan said, adding,
"while there will be some people who would want to come and join because
of their patriotic belief that they want to make a difference, but along
with patriotic we will get those who intend to profit by the board position
in other ways if not directly. So that mix of the patriotic and the
unscrupulous is something that we have to avoid by better pay and decent
compensation to get good people on the board who will run the bank
effectively.”
He also said that the central bank will step up its incognito visits to banks
to inspect if mis-selling of products is going on, as people should be
protected from unfair practices.
Source: Business Standard
Govt considers 'bad bank' proposal despite doubts

The Centre is likely to set up a “bad bank” to take over the non-performing
assets (NPAs) of the country’s financial institutions, and is examining a
policy proposal paper on the matter.
As such, the setting up of an asset reconstruction company backed by the

sovereign is a long-drawn process and these are still early days. Even then,
senior government sources say Finance Minister Arun Jaitley might make
an announcement in the upcoming Union Budget as part of his medium-term
plans for the financial sector. There have been inter-ministerial
discussions on the matter.
Earlier in February, Reserve Bank of India (RBI) Governor Rajan had said
there was “no need” to set up a separate “bad bank” to deal with stressed
assets of public sector (PSU) banks. “PSU banks themselves have the
backing of the government, so there is no need to create a new entity that
has the backing of the government. The issue is now to clean it up,” he had
said at an event in New Delhi.
Rajan had also said the pricing of assets of a government-owned bad bank
could get entangled with the Comptroller and Auditor General or the
Central Vigilance Commissioner.
“The government is examining the proposal of setting up a ‘bad bank’,

which will take over NPAs of public sector lenders and help them clean up
their books. Deliberations with stakeholders are in the initial stages,” said
an official.

The third quarter of financial year 2016 saw a sharp rise in banks’ NPAs
because of stress in sectors like steel, power and infrastructure.
“The (RBI) governor has made valid points, which will be taken on board.
However, there is no rule that says if the regulator is opposed to
something it should not or cannot be done. A decision will be taken
considering all views,” the official added.
The asset reconstruction company would not be RBI's problem as it would

just take over toxic assets of banks, said another official. However,
experts say a bad bank alone will not be a solution, it will have to be
ensured that banks do not fall back and come up with more toxic assets.
Sources said the idea was being drawn from various countries that had set
up such banks, the latest being the Troubled Assets Relief Program
(TARP) by the US Treasury after the collapse of Lehman Brothers in
2008.
However, the aim will be to ensure that the exchequer does not take the
entire financial hit and that banks themselves be asked to pick up the
burden once they have cleaned up their books. Under the Indradhanush
scheme, while the government's promise of recapitalising PSU banks over a
three-year period seems to be on track, it seems inadequate considering
the scale of stress. Of the Rs 25,000 crore meant for 2015-16, the
government has pumped in about Rs 20,000 crore in 13 PSU banks so far.
The government will infuse another Rs 5,000 crore in the current financial
year to strengthen bank balance sheets. PSU banks will get Rs 25,000
crore in the next financial year, followed by Rs 10,000 crore each in 2017-
18 and 2018-19.
For the December quarter, almost all state-owned lenders reported lower
profits or slumped to losses on the back of higher provisioning for NPAs.
State Bank of India Chairman Arundhati Bhattacharya has warned that
the level of NPAs might rise in the March quarter, even as Jaitley
promised further steps to deal with the situation.
Source: Business Standard

ECONOMY & POLICY
Rajan Plays Long Game by Building Reserves Chest as

Rupee Slumps
Reserve Bank of India Governor Raghuram Rajan is rebuilding the country’s

foreign reserves as he sees an unavoidable slide in the rupee until the war
on inflation is won.
The currency stockpile grew by $2.3 billion in the week to Feb. 5, the most
since the period ended Sept. 11, according to central bank data compiled
by Bloomberg. The reserves have risen $4.3 billion in three straight
weeks, the longest run since October, as the rupee fluctuated before
declining to within 0.7 percent of its record low.
Rajan said on Feb. 13 a certain amount of depreciation “is necessary” until

inflation comes down, noting India’s need to keep its competitive edge in
global trade. While the rupee has declined 3.5 percent versus the dollar in
the past three months amid outflows from bonds and stocks, it has
strengthened against some 22 of 31 major currencies in the period. That
leaves the rupee about 24 percent overvalued according to the RBI’s index
of its trade-weighted and inflation-adjusted exchange rate.
“There was a bit of a pause, but they are back to the policy of reserves
accumulation, building up the war chest, and really being able to continue
to be able to dampen the volatility in the currency market,” said Mitul
Kotecha, head of Asian foreign-exchange and interest-rate strategy at
Barclays Plc in Singapore. “Rajan’s comments indicate the RBI is likely to
steer the currency on a fairly steady depreciation path along the lines of
keeping a fairly stable real-effective exchange rate.”
The rupee is Asia’s worst performer after South Korea’s won in the past
three months as overseas funds pulled a net $3 billion from Indian stocks,
and foreign holdings of local debt fell by $1.5 billion amid a global wave of
risk aversion and slowing growth at home. The Indian currency fell 0.5
percent to 68.3825 a dollar on Tuesday. It sank to an unprecedented

68.8250 in August 2013.
“Our intent is not to depreciate the rupee in a steady way or anything of

that sort,” Rajan said in a speech in the southern state of Kerala. “Our
focus is on bringing down inflation so that people will not have to ask why
the rupee is weakening.”
Rajan is accepting a weaker rupee as exports contracted for the 14th

straight month in January. The fastest consumer-price gains in 17 months
has kept him from adding to last year’s four interest-rate cuts. Asia’s
third-largest economy expanded at the slowest pace in three quarters in
the three months ended December.
“Governor Rajan was quite clear in saying that to maintain competitiveness

you either reduce inflation or weaken your currency,” said Nizam Idris,
head of foreign-exchange and fixed-income strategy at Macquarie Bank
Ltd. in Singapore.
Macquarie predicts the rupee will fall to 70 a dollar by end-June, the most
bearish forecast in a Bloomberg survey of 34 analysts, while Barclays sees
a decline to 69 and ING Groep NV to 68.50. The median estimate is for
the currency to strengthen to 68 in the period.
Rajan can afford some depreciation without having an impact on living

costs due to a decline in commodities. While consumer price increases
quickened to 5.69 percent last month, it has halved from its November
2013 peak of 11.5 percent as a slump in crude prices benefits the nation
that imports about 80 percent of its oil. The RBI is targeting a 5 percent
inflation rate by the end of March 2017 and 4 percent the following year.
“Given that commodity import prices are at cyclical lows and not expected
to rebound anytime soon, he’s seen this as an opportunity to take the foot
of the pedal on the currency front,” said Viraj Patel, a London-based
strategist at ING, among the most accurate forecasters of the rupee in
Bloomberg’s rankings. “This confirms an RBI more tolerant of any near-
term rupee downside.”

Source: Economic Times
Depositors’ body seeks assurance from RBI on banks’

financial health
With many public sector banks either reporting huge losses or slide in net
profit in the third quarter due to loan loss provisioning, a bank depositors’
body has urged the Reserve Bank of India to come out with a statement –
reassuring all stakeholders, especially depositors – about the present
state of these banks’ financial health and solvency status to prevent any
crisis of confidence.
Bank deposits (savings, fixed, current, and recurring) up to ₹1 lakh,

including principal and interest, are insured with the Deposit Insurance
and Credit Guarantee Corporation.
Impact of bad loans
All public sector banks are government-owned. The All India Bank
Depositors’ Association (AIBDA), in a statement, said many bank
depositors have been making anxious enquiries with it about the
implications of sharply contracting profitability of banks as well as their
rising bad loans, on safety and security of bank deposits.
It also flagged the issue of adverse impact that growing bad loans tend to
have on the rate of interest payable to depositors on their bank deposits.
The depositors’ body felt this is the most opportune time for the Centre,
as the predominant owner of public sector banks, to formulate a
comprehensive white paper for the benefit of the public, and bank
depositors in particular, about the safety and stability of their bank
deposits.
AIBDA believes there is an implicit sovereign guarantee associated with all

bank deposits held by public sector banks.
The intervention of the Finance Ministry at this stage would also go a long
way in boosting the confidence of depositors.

The Association referred to the fact that in its submissions to the

Reserve Bank of India from time to time, it has raised the issue of
growing incidence of bad loans.
“We have also been confident that through its regulatory supervision and
constant exhortation to banks, the RBI effectively ensures that banks
improve their asset quality, resolve issues of recovery of bad loans,
strengthen their due diligence, credit appraisal, and post-sanction loan
monitoring systems.
“We strongly believe that these are the imperatives for minimising and
mitigating the problems of rising bad loans, and thus sustaining the
confidence of bank depositors,” the statement said.

MISCELLANEOUS
PSBs geared to meet capital norms under Basel-III: IBA

Indian Banks’ Association, the industry body of banks in India, said that
although public sector banks have incurred losses they remain well-
capitalised to meet Basel-III capital requirements.
The banks have incurred losses in the October-December 2015 quarter as

a result of the balance sheet clean-up exercise they are currently
undertaking on RBI’s directive.
IBA, in a statement, said: “Banks are taking necessary measures to handle

their stressed assets….the asset quality has essentially deteriorated on
account of the economic downturn and the banking industry is addressing
the issue related to each project to put it back on track.”
The Association further said public sector banks have been assured of
adequate capital support by the Centre and banks are confident of raising
additional capital to handle the credit needs of a growing economy.
Basel-III capital regulation is based on three mutually reinforcing pillars

— minimum capital requirements, supervisory review of capital adequacy,
and market discipline.
Under Basel-III, the RBI requires banks to maintain minimum total capital
at 9 per cent of their loans. Along with the capital conservation buffer of
2.5 per cent, the total capital requirement goes up to 11.5 per cent.
RBI to visit banks incognito to check customer dealings

The Reserve Bank said it will soon undertake “incognito visits” to bank
branches to check culture towards customer complaints in banks.
It will also undertake a review of how banks have implemented Charter of

Customer Rights, the central bank said in a statement.
“Customers must have the right to access banking services and to the
grievance redressal machinery, as well as the Banking Ombudsman Scheme
of the Reserve Bank, so that they are not ’excluded’ from the banking
fold,” the release quoting Governor Raghuram Rajan said.
Mr. Rajan had inaugurated the Annual Conference of Banking Ombudsmen

2016 held in Thiruvananthapuram on February 15-16, 2016.
He said websites, mobile phones, missed calls, physical places, and

collection points could be some ways to aggregate customer complaints for
redressal. High level of automation would not only allow customers to
access the grievance redressal machinery at anytime from anywhere but
also reduce the cost of grievance redressal.
The RBI had put out a Charter of Customer Rights in public domain and
asked banks to adapt and implement it after their Board’s approval.
He also said that the RBI was exploring ways to resolve customer
complaints across regulators through forums, such as, Financial Stability
and Development Council (FSDC).
The Governor impressed upon banks that the grievance redressal

mechanism “must be integrated” in the business operations of banks.
Grievances are also an important input into regulatory and supervisory
processes, he added.
Explaining the importance of customer awareness, customer protection

and customer literacy, Mr. Rajan stated that a large segment of the
population was not comfortable entering a bank even today.
Moreover, only a fragment of the customer complaints came from rural

areas, he said, adding this clearly showed the urban bias and lack of
awareness among the new entrants about customer grievance redressal
processes.
“We want the new entrant to be comfortable in asking not only for banking
services but also about redressal of grievances,” he exhorted bankers.
The conference was attended by managing directors and senior executives

of major commercial banks, Indian Banks’ Association (IBA), Banking Codes
and Standards Board of India, Banking Ombudsmen and heads of
regulatory and supervisory departments of the Reserve Bank.


INFORMATION TECHNOLOGY
Soon, transfer money from mobile to PoS without using a

card
HDFC Bank, the country’s second largest private sector lender, has tied up
with mobile payments technology firm ToneTag and is testing a new
mechanism that will allow transferring money from a phone to a point of
sales terminal without swiping a debit or credit card.
Using this technology, the PoS terminals can be paired with a mobile phone
and once the transaction is authorised, money will be deducted from
either the customer’s HDFC Bank mobile wallet PayZapp or via the mobile
banking application.
Unlike the old way, where a card was needed to carry out a transaction on
PoS, this technology will allow the customer to complete the transaction
by just using the phone.
In this, the data can be transferred in an encrypted manner, which will
then ensure the money gets deducted either from the account or from the
mobile wallet.
For this, the customer needs to be in the proximity of 15 cm from the
merchant terminal.
With this feature, the lender is looking at opening a new category of
proximity payments in the country.
Experts say considering that HDFC Bank is currently one of the leaders in
PoS terminals, logistically, it would be easy for the lender to add this
software to its existing terminals.
According to Reserve Bank of India data till the month of November, the
bank is the leader in the PoS network with about 276,362 terminals.
Bankers believe considering that a lot of consumers have taken to mobile
banking and mobile wallets, this payment method may take off better than
contactless debit/credit cards.

“Despite the fact that several banks had launched contactless debit and
credit cards, we haven’t seen these take off in a significant way as it is
more cost intensive and requires changes in the terminal,” said a banker.
Such cards work on near-field communication technology, which employs
radio transmission to ascertain contact when a card is tapped or waved
near a terminal.
These enable customers to make payments by waving or tapping the cards
instead of swiping them.
Banks are experimenting more with alternate payment solutions after RBI
last year allowed the lenders to process contactless transactions below Rs
2,000 without a personal identification number.
Bankers believe since about 60 per cent of the transactions at PoS
terminals are below this threshold, these payment solutions will take off.
This is also in line with HDFC Bank’s digital strategy wherein the lender is
focusing on reducing cash transactions and trying to add more consumers
to use digital banking.
According to RBI data, in the month of November, the lender recorded
transactions worth Rs 7,666.34 crore (Rs 76.66 billion) via its mobile
banking application.
Source: The Business Standard

MIND VOICE
Struggle between two extremes
The scenery outside the compartment’s window of the train

enthralled me. The Southern end of the Western Ghats protecting itself
from the chilly weather with white woollen coat (Clouds). On the other
side I could see the sky changing its colour from black to orange indicating
the hills can now remove their coat as the Sun is on its way after taking a
bath in Bay of Bengal.The train dropped me at Nagercoil Station and
continued its journey to Kanyakumari from where you can view Indian
Ocean holding its hands with Bay of Bengal on one side and Arabian sea on
the other side. I was going to my native place, a small village, half an hour
travel by road from the station. I used to wonder how this village is still
surviving with its entire population in a poor condition for so many years.
After finishing my graduation in engineering I got a job in a

nationalised bank and was posted in Chennai 650 KMs away from my native
place. Now the trend is “first you become an Engineer and then decide
your profession”. I used to visit my native p(a)lace once in a month.
Initially it was very difficult for me to adjust with the city environment.
You need lot of energy for travelling itself. My father was eagerly waiting
for my visit. My mother as usual repeating the same dialogue “My dear,
you have become very thin compared to last time. Why don’t you leave
your job and settle with us. Whatever you earn here will be sufficient.
We cannot carry our purse if it is heavier than our body weight”. She
started preparing variety of dishes for the lunch. My adrenal gland will
have to work overtime today. My father was having a different idea. He
was asking me to look for a house on rent at Chennai, of course at a
cheaper rate, so that the entire family can be migrated to Chennai. I was
happy with both the proposals since I would be getting home food
everyday. My father was telling that he could not make both the ends

meet with respect to our farming activities and we should find somebody
to take over our agricultural lands.
After lunch I wanted to visit my close friend who is working in IT

Sector. I was asking about the prospects in his career. He told that he
could hardly find time to go to theatres or malls as he was very busy in his
job. He further told that his Team leader had to resign his job due to
work pressure. Out of curiosity I asked him whether the Team leader got
any better opportunity. He told me that person was not interested to
continue his career in IT field and very much interested in farming. I
asked him to give the contact number of his team leader so that my father
can sell our farm land. The person who is surviving on agriculture wants to
move out of it whereas the person who can earn a lot in his area of
expertise wants to do farming! This gave a flash of thoughts in my mind.
The grass is always greener on the other side!
Article By: Mr. Anbu Bala Thanga Kumar, Staff Clerk, STC Chennai

HEALTH
10 Simple and Natural Ways to Boost Your Immune System

Despite the fact that your world teams with infectious microorganisms,
most of the time, you’re reasonable healthy, right? Thank your immune
system, which defends you from disease-causing microbes. Now, step
beyond gratitude to optimize the function of that system.
1. Get enough sleep and manage stress. Sleep deprivation and stress
overload increase the hormone cortisol, prolonged elevation of which
suppresses immune function.
2. Avoid tobacco smoke. It undermines basic immune defenses and

raises the risk of bronchitis and pneumonia in everyone, and middle
ear infections in kids.
3. Drink less alcohol. Excessive consumption impairs the immune

system and increases vulnerability to lung infections.
4. Eat plenty of vegetables, fruits, nuts, and seeds, which will

provide your body with the nutrients your immune system needs. A
study in older adults showed that boosting fruit and vegetable intake
improved antibody response to the Pneumovax vaccine, which
protects against Streptococcus pneumonia.
5. Consider probiotics. Studies indicate supplements reduce the

incidence of respiratory and gastrointestinal infections. Fermented
milk products have also been shown to reduce respiratory infections
in adults and kids.
6. Catch some rays. Sunlight triggers the skin’s production of vitamin

D. Low vitamin D levels correlate with a greater risk of respiratory
infection.

7. Go for the garlic. Garlic is a broad-spectrum antimicrobial agent

and immune booster. Because heat deactivates a key active
ingredient, add it to foods just before serving.
8. Eat medicinal mushrooms, such as shiitake and maitake (sometimes

sold as “hen of the woods”). A recent study showed that a
concentrated extract of shiitake enhanced immune function in women
with breast cancer.
9. Try immune-supportive herbs. If you get recurrent infections,

consider taking immune-supportive herbs such as eleuthero
(Eleutherococcus senticocus), Asian ginseng (Panax ginseng),
American ginseng (Panax quinquefolius), or astragalus ( A.
membranaceus).
10. Make an echinacea tincture. This is good to have on hand when

respiratory viruses overwhelm your defenses.

LET US LEARN……..

Bulletin 16 - 08

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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 20, 2016 Page 2 of 23

Saturday, February 20, 2016 Page 3 of 23

BANKING & FINANCE

RBI asks banks to submit proforma Ind AS financial

Banks have been asked to submit proforma Ind AS financial statements to

The implementation of Ind AS is expected to significantly impact the

Also, each bank will now be required to set up a steering committee —

According to the roadmap announced by the Government, banks have to

Ind AS will be applicable to both standalone as well as consolidated

Saturday, February 20, 2016 Page 4 of 23

Commenting on the latest RBI directives, Charanjit Attra, Partner in

Indian banks are at varying stages of preparedness when it came to

Sai Venkateshwaran, Partner and Head of Accounting Advisory Services,

Requiring proforma financial statements would ensure that RBI is not

Source: The Business Line

RBI hopes to put on-tap banking license soon: Raghuram

“As the country develops, we will increasingly be creating supporting

The RBI governor refused to comment on fiscal deficit so close to the

“Sensibly, banks are getting more discriminatory on credit growth.

Under its asset quality review programme, RBI is egging banks to

It is important that public sector banks be allowed to develop as individual

However, adequate compensation is important.

“In trying to attract people of capability, integrity, more of that we will

Source: Business Standard

Govt considers 'bad bank' proposal despite doubts

As such, the setting up of an asset reconstruction company backed by the

“The government is examining the proposal of setting up a ‘bad bank’,

Saturday, February 20, 2016 Page 8 of 23

The asset reconstruction company would not be RBI's problem as it would

Source: Business Standard

ECONOMY & POLICY

Rajan Plays Long Game by Building Reserves Chest as

Reserve Bank of India Governor Raghuram Rajan is rebuilding the country’s

Rajan said on Feb. 13 a certain amount of depreciation “is necessary” until

percent to 68.3825 a dollar on Tuesday. It sank to an unprecedented

“Our intent is not to depreciate the rupee in a steady way or anything of

Rajan is accepting a weaker rupee as exports contracted for the 14th

“Governor Rajan was quite clear in saying that to maintain competitiveness

Rajan can afford some depreciation without having an impact on living

Saturday, February 20, 2016 Page 11 of 23

Source: Economic Times

Depositors’ body seeks assurance from RBI on banks’

Bank deposits (savings, fixed, current, and recurring) up to ₹1 lakh,

Impact of bad loans

AIBDA believes there is an implicit sovereign guarantee associated with all

Saturday, February 20, 2016 Page 12 of 23

The Association referred to the fact that in its submissions to the

Source: The Business Line

Saturday, February 20, 2016 Page 13 of 23

PSBs geared to meet capital norms under Basel-III: IBA

The banks have incurred losses in the October-December 2015 quarter as

IBA, in a statement, said: “Banks are taking necessary measures to handle

Basel-III capital regulation is based on three mutually reinforcing pillars

Source: The Business Line

RBI to visit banks incognito to check customer dealings

It will also undertake a review of how banks have implemented Charter of

Mr. Rajan had inaugurated the Annual Conference of Banking Ombudsmen