COMMERCIAL BANK ASSIGNMENT

1. Case discussion: fraud investigation carried out in any one

(Canara Bank) commercial bank operating in India.
2. Detailed analysis of any one (Manappuram Finance)
microfinance company operating in India.
3. Rural banking model of any one Indian commercial bank along
with RBI guidelines for Rural banking. - SBI
 Manappuram Finance

https://www.bankbazaar.com/personal-loan/microfinance-institutions.html

https://www.bbalectures.com/role-of-commercial-banks-in-rural-development/

Overview of the Company

Manappuram Finance Ltd. is one of India’s leading gold loan NBFCs. Promoted by Shri.
V.P. Nandakumar, the current MD & CEO, its origins go back to 1949 when it was founded
in the coastal village of Valapad (Thrissur District) by his late father Mr. V.C. Padmanabhan.
The firm was involved in pawn broking and money lending carried out on a modest scale.
Shri Nandakumar took over the reins in 1986 after his father expired.

Since then, it has been a story of unparalleled growth with many milestones crossed.
Incorporated in 1992, Manappuram Finance Ltd. has grown at a rapid pace. Today, it has
4351 (Includes branches of subsidiary companies) branches across 28 states/UTs with assets
under management (AUM) of Rs. 194.38 billion and a workforce of 25,610.
 South-based gold loan provider Manappuram Finance BSE -4.38 % is on the prowl for
acquisition of microfinance companies as it looks to grow its share of non-gold loans, riding
on the sector's success story.

Manappuram said it is currently in talks with a few entities in the north and east, but is yet to
zero in on its preferred candidates.

"We want to acquire MFIs in the north and east," Manappuram finance managing director VP
Nandakumar told ET over the telephone.

The acquisitions will help Manappuram reduce its share of gold loans, which account for 88
per cent of the consolidated portfolio, and raise priority sector loan books even as it keeps its
eyes firmly on universal banking licence.

Its total assets under management stood at Rs 11,433 crore at the end of March, according to
a recent presentation to investors.
Reserve Bank of India has put up bank licences on-tap, and said that new banks should
maintain 40 per cent priority sector target from the beginning. Gold loans does not come
under priority sector.

"At first, we would like to come as an investor or promoter. And eventually, these entities can
be merged with Asirvad Microfinance to create a bigger one," the chief promoter of
Manappuram said.

"We are looking at MFIs outside south India to eliminate geographic concentration and the
risks associated with it. The risk in MFI business is mainly political," he said.

Manappuram took over south-based Asirvad in February last year and has an 85per cent stake
in it. Nandakumar said that the acquisition has proven to be successful one with the MFI
nearly trebling its loan portfolio to Rs 998 crore at the end of March 2016 from a year ago. Its
net profit also trebled to Rs 14 crore in FY16.

The microfinance sector has come out of the woods since the disastrous 2010, and has been
growing steadily ever since. The aggregate gross loan portfolio of all MFIs stood at Rs
53,233 crore, reflecting an 84 per cent year-on-year growth, with banks and investors
loosening their purse-string.

Manappuram is also planning to enter the micro housing loan segment to grow non-gold loan
business.

"The banking licence guidelines seem to be more positive for us than expected," Nandakumar
said, adding that the company has gone back to the drawing board to examine it thoroughly.
Mumbai: Kerala-based gold loan company Manappuram Finance Ltd, on Friday, said it has
acquired a majority stake in Chennai based micro-finance company Asirvad Micro Finance
Pvt Ltd as it seeks to diversify into different financial businesses.
Manappuram acquired 71.14% stake in Asirvad for ₹ 48.63 crore in an all cash transaction. It
plans to invest a further ₹ 63 crore in into the micro-finance company to take its stake to
84.98%, the company said.
The deal was concluded on Thursday.
“The microfinance sector has made a strong comeback in recent months and, with a stable
regulatory environment in place, prospects for the future are bright. In the coming quarters,
we expect that microfinance will contribute significantly to the growth of our company along
with our other new businesses like housing finance and vehicle finance," said V.P.
Nandakumar, managing director and chief executive officer (MD & CEO) at Manappuram
Finance, in the release.
Asirvad has 115 branches spread across Tamil Nadu, Kerala and Karnataka.
Manappuram Finance had 3,293 branches across 27 states and Union territories with assets
under management (AUM) of ₹ 88.23 billion as on 31 December 2014.
Manappuram shares gained 2.3% to close at ₹ 35.60 per share on Friday on the BSE, while
the benchmark index, Sensex gained 1.01% to close at 29094.93 points.
Canara Bank

http://www.consumereducation.in/monograms/caselaw_banking.pdf

OR

M/s Piara Singh Cold Storage v. Canara Bank and Anothers25 Misuse of Loan by the
borrowers, Dishonour of Cheques, Debt Recovery Tribunal, Constitutional Law. The facts of
the case as under: That M/s Piara Singh Cold Storage was granted an agricultural loan of
Rs.25 lakhs for modernization of cold storage, for which rate of interest was less than the
commercial use of loan for commercial purpose. The debtor was in breach of terms and
conditions of the agriculture loan as the cold storage was converted into marriage palace.
The term loan was granted on 30.3.2000 to be repaid within seven years against mortgage
of 18 Kanal of land Village Rehan Jattan, Phagwara Distt. Kapurthala. He repaid Rs. 6 lac up
to 7.4.01. The respondent Bank started proceeding under D.R.T26 and proceeding were
initiated due to dishonor of cheques27. He applied for one time settlement of Agriculture
loan. The main dispute was that borrower was granted agriculture term loan but the
petitioner stated that there was downfall in market and cold storage was not running in
profit. He had filed no application for diversion of funds. It was held that petitioner is guilty
of breach of terms and conditions of the agriculture term loan. Therefore, he cannot ask for
one time settlement and should not be permitted for equitable relief. The petitioner is
devoid of any merit and is frivolous and deserves to be dismissed out rightly28. Accordingly
petition is dismissed with cost of Rs.5000/- which shall be paid by petitioner to High Court
Legal Services Committee within 15 days. International Journal of Pure and Applied
Mathematics Special Issue 778 8.

Conclusion

The frauds might be principally because of absence of sufficient supervision of best

administration, broken motivating force component set up for workers, intrigue between
the staff, corporate borrowers and outsider offices, frail administrative framework, absence
of suitable instruments and advances set up to identify early cautioning signs of a fake,
absence of attention to bank representatives and clients; and absence of coordination
among various banks crosswise over India and abroad. The brains of officers can't be
perused amid the season of enlistment. Mentality of some private and some open division
bank representatives should be to deliberately cheat the association. What the associations
can do is to build up and recheck frameworks which should raise the auspicious alarm on
deviations. Web based managing an account is the new pattern and it is digging in for the
long haul. Banks must understand that the clients who utilize web based keeping money
administrations is a capable gathering fit for propelling searing assaults utilizing the web-
based social networking, which can hopelessly discolor the notoriety of banks. Banks would
need to continually screen the typology of the fake exercises in such exchanges and
routinely survey and refresh the current security highlights to avoid simple control by
programmers, skimmers, phishes, and so forth. Banks have generally made arrangements
for versatility against physical assaults and catastrophic events; digital flexibility can be dealt
with similarly. Banks ought to consider their general digital flexibility capacities over a few
measurements.
STATE BANK OF INDIA