FINANCE-I RESEARCH

PAPER SYNOPSIS REPORT

PUNJAB NATIONAL BANK SCAM - 2018

SCHOOL OF LAW, HYDERABAD

SUBMITTED TO:
 FINANCE RESEARCH PAPER – SYNOPSIS REPORT

PUNJAB NATIONAL BANK SCAM - 2018

 ABSTRACT

An efficient and good banking is the main requirement for smooth operation of the economy. The Indian
banking system, it has begun to grow rapidly and also faced many challenges. Recent frauds have shown
that the bank is vulnerable to many risks including fraud, embezzlement, scams etc. the research evidence
has shown that growing number of scams have undermined the integrity of financial report. Banking scam is
also known as banking fraud. At a time when the objective of bank is recapitalization, Scams are huge
problem for overall banking sector. A default of Rs 12700 crore were found in PNB, it may be noted that the
public sector bank lost at least 227 billion to bank fraud in last five years. The credibility of third party such
as auditing firm is also questioned in the study. Nirav Modi is an Indian diamond merchant who is the owner
of Geetangali Gems and Firstar diamond, Which was established in 2010 by its founder Nirav Modi. He was
involved in PNB scam through the help of higher official of PNB Mumbai branch. The apex bank of the
country RBI is facing public wrath for not being able to detect the largest banking scam. It is high time that
all PSBs should review their internal process and take appropriate actions. This paper aims to identify and
analyze the factors that led to this massive scam. It uses the quality tool 5Ws & 2Hs for analysis. This paper
also delves into auditing process of the banks and possible loop-holes that led to the fraud. This paper also
summarizes the impact of scam on various banks and the economy as whole.

Keywords - PNB Scam; Nirav Modi; Banking Scam; India; Nationalized Banks; RBI Regulations, Audit,
LOU.

 WHY CHOOSE THIS TOPIC?

The reason why we have chosen to format a research paper for this topic is because it highlights the reality
of banking and financial institutions in India and the loopholes in the banking system and this helps create
awareness in young adult minds about such issues and frauds because it higlights an economic, financial,
ethical and legal scenario in a single case study. It also lets the society be made aware and attentive when
making any finance or bank related matters very carefully. It also promotes fiscal responsibility and delves
further into finance ethics and responsibilities to be followed on both customers and bankers sides. In
conclusion, the main reason is to create awareness, promote audit awareness and fiscal knowledge and throw
light on the banking systems in India and RBI Regualtions.

 INTRODUCTION

World credit market faced a huge turmoil during the financial crisis of 2007 and many big banks and
financial institutions filed for bankruptcy including Lehman brothers. The impact of crisis was profound and
many banks and financial institutions in US faced massive credit crunch. Economists have noted that
recessions accompanied by banking crises tend to be deeper and more difficult to recover from than other
recessions.The Second largest PSU Bank in India on Feb 14th, 2018 reported fraudulent transactions worth
Rs 11,400 crore to stock exchanges and law enforcement agencies. The scam which initially was estimated
to 11,400 crore, now added up to 12,700 crore is nearly one-third of the Net worth of Punjab National
Bank(PNB) is now termed as a country’s biggest banking fraud. The banks are already facing turmoil due to
weak capital management. Eleven of India’s twenty one listed government-owned banks are now under the
Reserve Bank of India’s watch due to large bad loans, weak capital levels and low return on assets. Together
these banks account for over Rs. 3 lakh crore in bad loans of the total of Rs 8.4 lakh crore across India’s
listed banks. When the government is planning to recapitalize the banks the PNB scam comes as a huge
blow.

1
SCHOOL OF LAW, HYDERABAD
 FINANCE RESEARCH PAPER – SYNOPSIS REPORT

 STATE – OF – ART (LITERATURE REVIEW)

Mergers of giants in the banking industry gave birth to the concept of “too big to fail”, which eventually led
to highly risky financial objectives and financial crisis of 2008. In response to the 2008 crisis, Dodd Frank
Act gave birth to various new agencies to help monitor and prevent fraudulent practices. Volcker rule, a part
of DFA, banned banks from engaging in proprietary trading operations for profit.

Indian banking system has already been plagued with growth in NPAs during recent years, which resulted in
a vicious cycle affecting its sustainability. Chakrabarty Deputy Governor of Reserve Bank of India, noted in
his speech that, while most numbers of frauds have been attributed to private and foreign banks, public
sector banks have made the highest contribution towards the amount involved. To maintain uniformity in
fraud reporting, frauds have been classified by RBI based on their types and provisions of the Indian penal
code, and reporting guidelines have been set for those according to RBI & towards monitoring of frauds by
the board of directors by banks of India , A circular was issued as per RBI to cooperative banks to set up a
committee to oversee internal inspection and auditing, and plan on appropriate preventive actions, followed
by review of efficacy of those actions. Key findings in RBI included the stress of asset quality and marginal
capitalization faced by public sector banks, and various recommendations to address these issues. Good
governance and more autonomy to be conferred to public sector banks to increase their competitiveness and
to be able to raise money from markets easily. In response to the common perception that increasingly strict
regulations will make business opportunities take a hit. Basic principles that can go a long way in
preventing fraud, namely the principles of knowing the customer and employees as well as partners. He also
pointed out the significance of a robust appraisal mechanism and continuous monitoring.

Great recession 2007 resulted in bankruptcy of many banks and financial institutions. The Great Recession
which had its impact globally was associated with a severe financial crisis, but depositors were not rushing
to the banks to withdraw their deposits. Banks suffered losses on a scale not witnessed since the Great
Depression. It is precisely this special “risk evaluator” role that makes the banking industry particularly
opaque. The opacity of the sector has probably increased in recent years due to the structural changes
brought about by deregulation and financial innovation; changes that have made the industry significantly
more complex, larger, more global and dependent on financial markets. The bankruptcy of Lehman Brothers
in 2008 sent shockwaves through the entire global banking and financial system across numerous and
unexpected transmission channels when the price bubble in the US housing market tied to the subprime
mortgage market suddenly burst. Bad accounting treatment of financial transactions, loose risk management
policies and strategies led the financial conglomerate to its eventual collapse.

 BACKGROUND

CHRONOLOGY OF THE CASE

1. On 29/1/2018- PNB filed a scam complain against modi group.

2. On 4/2/2018- CBI gives warning to Nirav Modi.
3. On 5/2/2018-PNB informed stock exchange about the 281 crore scam involved in Modi group.
4. On 14/2/2018- PNB informed the stock exchange of the magnitude of the scam.

PNB SCAM – FACTS

Nirav Modi exported rough stone form foreign countries worth crores of rupees.The employees at PNB
Brady House branch fraudently issued a LoU for 365 days without making any provisions for collateral and
bypassing Core Banking System (CBS). The Nirav Modi’s three companies named Diamond R US, Solar
export and Stellar diamond allegedly raised loans from Axis Bank, UCO Bank and Allahabad Bank by

2
SCHOOL OF LAW, HYDERABAD
 FINANCE RESEARCH PAPER – SYNOPSIS REPORT

showing LoU. The firm also raised funds from Indian bank's overseas branch for paying to the suppliers.
Nirav modi’s firm again requested the bank to issue another LoU but the officials refused on ground that the
company has to keep collateral with bank but Modi’s firm argued that no such money was kept on margin
for the previous LoU. After that PNB officials started scanning the records and didn’t find any such
transactions and then filed a complaint with CBI.

 PROBLEM ANALYSIS

HOW IS THE PROBLEM MANIFESTED?

The centre has said the ₹ 11,300 crore fraud at state-run Punjab National Bank was a "manifestation of
supervisory failure" at the country's central bank, according to media reports today. It was mainly – efficacy
of supervision to detect & check systematic failure or either the framework designed by RBI to prevent &
detect such frauds is inadequate or RBI is unable to ensure its effective implementation.

WHO DOES IT AFFECT & INVOLVE?

Persons involved in scam -

1. 1.Nirav Modi – Nirav Modi is the Owner of Nirav Modi firm,Diamond RU.S.,Stellar Diamond and
Solar Exports and the prime accused in this scam.
2. 2.Mehul Choksi – Mehul Choksi is the Owner of Gitanjali Group and the uncle of Nirav Modi.
3. PNB Employees - Gokul Nath Shetty (Retired Deputy Manager), Manoj Kharat (Clerk), Hemant
bhat (Clerk and Authorised Signatory), Bechhu Tiwari (Forex dept.Chief manager),Yaswant joshi,
Praful sawant ( They were trying to shift the blames to their colleagues.)
4. MK Sharma – Internal Auditor and chief manager of PNB.
5. Vipul Ambani – CFO of Nirav Modi Company.
6. 6.Kavita Mankikar - Executive Assistant and Authorized Signatory.
7. 7.Arjun Patil – Senior Executive of Fire Star Group.
8. 8.Kapil Khandelwal - CFO of Nakshtra and Gitanjali Group.
9. Niten Shahi – Manager of Gitanjali Group.
10. Rajesh Jindal: General Manager of PNB . He has headed Brady Branch in between 2009-11.
11. Bishnubrata Mishra: Formar internal auditor of PNB. He was responsible for auditing the
transactions between 2011-15.
12. Miten Anil Pandaya: Financial Manager of Firestar International Ltd.
13. Sanjay Rambiya: CA firm Sampat & Mehta partner.
Parties Affected –
1. Impact on stock market
2. Impact on banks
3. Impact on LIC
4. Impact on jewellery stocks
5. Impact on PNB Rating
6. Impact on customers & staff

REALISTIC SITUATION
1. If the amount was ever intended to be paid back, the rollovers would not have been required. At some
point, things got so out of hand that rollovers were required in order to stay current.
2. Typically this would not be a problem if PNB had donne things right. That is the bank would have had
collateral worth the amount of guarantee, and they would have sold that collateral and paid the foreign
bank when there was a claim on the LoUs.

3
SCHOOL OF LAW, HYDERABAD
 FINANCE RESEARCH PAPER – SYNOPSIS REPORT

3. But, unfortunately, PNB DID NOT HAVE ANY COLLATERAL.

 OBJECTIVES & ISSUES

Objectives of the study include:
1. To analyze the Punjab National Bank scam critically using 5W2H analysis.
2. To study the impact of scam on stock market, banking sector & jewellery sector.
3. To study the impact of scam on PNB rating given by vaeious Indian & global rating agencies.

Issues

1. Why PNB gave guarantee without any collateral.

2. If an ordinary person goes to bank and request for loan then the bank will ask for income proof and
collateral. Only small personal loan and credit card are available without any collateral. Then why was
Nirav Modi not asked for any collateral?

3. Another important thing is that bank offers are of two types of facilities, one is fund based and the other
is non fund based. Fund-based financial service includes loans provided by banks, overdrafts and other
cash transactions. The bank does not deal with money or cash transactions in a non-fund-based financial
service. Several examples of this type of service are bonds, letters of guarantees and letters of credit.

4. Therefore it was clear that PNB assumed that the foreign bank has granted direct loan to Nirav Modi and
that PNB only had to pay in the event that Nirav Modi defaulted, So in the eyes of PNB,it was always
non fund based financial service.

 RESEARCH METHODOLOGY

This paper uses secondary data. The fraud came to light in January 2018. All the Newspaper articles,
national and international periodicals related to scam from January 2018 to March 2018 was reviewed. Bank
stock market data was taken from Sensex and other data was taken from financial information News
Company like Bloomberg. The methodology used for analysis of the scam is 5Ws & 2Hs and an
Empirical/Analytical Research paper format

5W2H stands for 5 Ws and 2Hs or Who, What, When, Where, Why ,How and How much. When working
on improving a process this is a very simple tool to help think thorough improvement opportunities.

1. Who did this? This can lead to, could we do it with less people?

2. What is done at this step? This can lead to, can we eliminate some of the

3. steps?

4. When does this start and finish? This can lead to, can we shorten the time it takes?

5. Where is this work done? This can lead to, can we do this elsewhere or in various locations?

6. Why are we doing this? This can lead to, do we need to do this?

4
SCHOOL OF LAW, HYDERABAD
 FINANCE RESEARCH PAPER – SYNOPSIS REPORT

7. How do we do this? This can lead to, is there another way to do this? How much does this cost? This can
lead to, how much would this cost if we made these changes?

Empirical research is an inquiry that attempts to discover and verify general rules allowing us to understand
why human beings or events behave the way they do. Steps in an Empirical research report are below –

1. Introduction (context and general background)

2. Literature review
3. Statement of research problem.
4. Objectives
5. Hypotheses / research question.
6. Data Collection.
7. Data analysis
8. Discussion (Critical commentary by examining the objectives and hypotheses – this part can be divided
into sections or Chapters)
9. Conclusions/Recommendations
10. References

 THEORITICAL CONTENTS & CONCEPTUAL FRAMEWORK(Chapterisation)

The theoretical contents to be delved into are mentioned below –

1. Abstract & introduction - Effective and good banking is a crucial necessity for the smooth running
of the economy. The Indian banking sector has started to expand steadily and has also faced many
obstacles. Current frauds have showed that the bank is susceptible to multiple threats, including
fraud, misappropriation, scams, etc. Analysis data has shown that an increasing amount of scams
have eroded the credibility of the financial statements. 

2. Literature review - Nirav Modi shipped rough stones from foreign countries worth crores of ropes.
The employees of the GNP Brady House branch fraudfully granted a LoU for 365 days without any
requirement for collateral and bypassing the Central Banking Structure (CBS). The three companies
called Diamond R US, Solar Export and Stellar Diamond are said to have borrowed from Axis Bank,
UCO Bank and Allahabad Bank.

3. Role of auditor – M.K.Sharma the senior internal auditor of PNB Brady Branch was responsible for
auditing the system and practices of Brady Branch and to report any fraud with zonal office.

4. Tackling the 5Ws & 2Hs of PNB scam (Analytical table format) – the analytical table will be
highlighted in the main paper directlty.

5. Letter of undertaking & investigation – A letter of undertaking or LoU is a document issued by a

bank to a person or a firm. This LoU is generally used for international transactions and is issued
keeping pinned in mind the credit history of the party concerned.

6. Legal reasoning – this case comes under cheating under section 420 IPC.

7. Ethical issues involved – There are 4 main ethical issues involved in this case which will be
highlighted in the draft.

5
SCHOOL OF LAW, HYDERABAD
 FINANCE RESEARCH PAPER – SYNOPSIS REPORT

8. Tackling impact on stock market - There are thirty nine listed banks in India. Share prices of the thirty-
four listed banks fell between February 12 and February 15. The sudden volatility in the prices eroded the
market cap of these Thirty four stocks by over Rs 36,380 crores. Benchmark BSE Bankex lost 1.2 per cent.
PNB eroded investor’s wealth worth Rs 8,077 crores and its stock tanked 20.6 per cent between February 12
and February 15 2018.

9. Impact on nifty and sensex – Impact on nifty and sensex is a part of the impact on stock market and
will be in detail specifically elaborated in the final draft.

10. Impact on banks – UCO bank, Union bank of India, Allahbad Bank, Axis Bank, SBI. - The
size of the illegal transactions of GNP is almost 50 times the net profit of the bank Q3FY18 of Rs
230.11 crores. There are five banks that have been specifically impacted by fraudulent
transactions[19] since they have provided credit on the basis of the GNP LoUs. These are UCO
Bank, Allahabad Bank, Axis Bank, Union Bank of India and SBI.

11. Trends on bank stocks Jan – Mar 2018 - the developments in the share prices of bank stocks with
exposure to the GNP fraud, namely SBI, Axis Bank, Allahabad Bank, Union Bank of India, UCO
Bank and Punjab National Bank, for the period from January 2017 to March 2018. It is evident that
all banking stocks are showing a downward trend. Post February 14, 2018.

12. Impact on LIC - The Rs 11,400-crore banking fraud allegedly committed by the Nirav Modi and
Mehul Choksi firms that struck Punjab National Bank, along with other banks, also had an impact on
another state-owned entity: the Life Insurance Corporation. LIC, which is the single largest
institutional investor in all four of these companies, has lost almost Rs 1,400 crore over the last three
trading sessions on its investment.

13. Impact on Jewellery stocks - Shares of Gitanjali Gems plunged up to 19 per cent post Punjab
National Bank’s declaration of nearly Rs 11,400-crore fraud. Meanwhile, some of other jewellery
stocks also witnessed a similar fate with PC Jeweller slumping 19.50 per cent to Rs 303.00,
Tribhovandas Bhimji Zaveri (TBZ) 4.32 per cent to Rs 110.60, and Thangamayil Jewellery 2 per
cent to 558.55 on BSE. Rajesh Exports fell 1.34 per cent to a low of Rs 808.70 on the BSE.

14. Impact on PNB Rating - Global credit rating agencies are evaluating the ratings of the Punjab
National Bank for a potential downgrade in the light of the huge scam on the bank that has come to
light on Wednesday. Moody's and Fitch raised concerns about the creditworthiness of the Punjab
National Bank and put the bank under the oversight of ratings, a kind of inspection before a potential
downgrade of ratings or a cut in outlook.

15. Why & how one of the banking processes(LOU) got converted to scam?

16. BASEL Reporting: No Disclosure

17. Excuses Given by PNB

18. Remedies offered in such situations

19. Will this bring the market down?

20. Addressing the issues

6
SCHOOL OF LAW, HYDERABAD
 FINANCE RESEARCH PAPER – SYNOPSIS REPORT

21. Possible outcomes

22. Conclusion

NOTE: These concepts (15 to 21) requires a background, graphs, tables and specific introductions
which will be explained step wise in detail in the final draft.

The conceptual frame work will throw light on the following factor segments of this case –

1. Personal factors

2. Financial factors

3. Legal factors

4. Technical factors

5. Economic factors

6. Business environment factors

 DATA ANALYSIS & COLLECTION

The data collection will be conducted online and in a quantitative and analytical manner based on graphs
and financial data gathered. So in a Nutshell - PNB filed the complaint on 29th Jan 2018 with CBI telling the
fraudulent transaction with Nirav Modi’s firm along-with related bank official.Further, on 04th Feb 2018,
CBI issued lookout notice against Nirav Modi. PNB informed stock exchanges on 05th Feb 2018 regarding
the fraud and its magnitudewhich is $ 1.77 billion on 14th Feb 2018. (Gayathri & Mangaiyarkarasi,
2018)The fraudulent transactions were “for the benefit of a few select account holders” The note had not
mentioned the name of the Fugitive Diamond merchant but media found out the name and the place which
was the Mumbai branch of PNB where the branch had allegedly issued LOUs for raising the buyer’s credit
for this diamond trader (Bandopadhyay, 2018) The fraudulent transactions or LOU issuance had been taken
place at Mid Corporate Branch Brady House, Mumbai. (Krishna, 2018) (PTI, 2019) .

 CONCLUSION

WHAT IS THE FINAL OUTCOME OF THIS RESEARCH?

1. To address and tackle all the objectives, issues, research questions etc.

2. To give a clear idea about the events of the PNB scam

3. To Have a clear background about the impacts of this scam

4. To throw light on the ethical and fiscal responsibilities of banking sector

5. To show analytical graphs, charts, financial charts, newspaper clippings etc. in light of this case to
understand it better

7
SCHOOL OF LAW, HYDERABAD
 FINANCE RESEARCH PAPER – SYNOPSIS REPORT

6. To promote awareness about such events

7. Addressing the LOU issue

8. To create a better understanding of the banking sector & RBI regualtions and working processes.

9. To address the possible remedies if such a situation arises.

Therefore, in conclusion the collateral free SWIFT transactions were happening not for a year but since last
7 years & these transactions were unidentified. Why the SWIFT bypassed the CBS was also the question of
utmost importance. The SWIFT messaging system was unmonitored. Few employees including Gopalnath
Shetty in mutual agreement with the client led to such big fraud hence the honesty of these officials came
under question.It is important to investigate how the operational risk raised and the process got dirty. There
was no planning in the risk management system. The system was loose. There were rise in operational risk
without any identification of its gradual growth itself suggests that focus on risk management was necessary.
The RBI’s role was also under question. Why did not RBI provide attention during auditing of the
transactions. Where it went wrong while assessing those transaction. Later on RBI took necessary improved
steps that were welcome but the fault in the past made the loss which is unforgettable & difficult to
recovery. The scam impacted the economy in adverse way. Now, there is rise in the need of taking new
decisions, new reforms, autonomy to the banks but at the same time whether the banks are using that
autonomy honestly or not, this watch needs to be kept by RBI.

 REFERENCES/BIBLIOGRAPHY

1. Bandopadhyay, T. (2018, Feb 19). The Anatomy of PNB fraud. Retrieved May 25, 2019, from
www.livemint.com: https://www.livemint.com/Opinion/oiMKS98wBunYNviWCVq6hJ/The-
anatomy-of-the-PNB-fraud.html

2. Bharadwaj, S. (2018, March 22). Nirav Modi case: PNB fraud affects stocks of Union Bank,
Allahabad Bank, SBI, Axis Bank. Retrieved May 26, 2019, from www.businesstoday.in:
https://www.businesstoday.in/markets/stocks/nirav- modi-case-pnb-fraud-affects-stocks-of-union-
bank-allahabad-bank-sbi-axis-bank/story/270786.html

3. Chakrabarty, K. C. (2013). Fraud in the banking sector-causes,concerns and cures. National

Conference on Financial Fraud (pp. 3-8). New Delhi: BIS Central Banker Speeches.

4. Das, S. (2018, Feb 20). Fitch,Moody's place PNB under review for downgrade. Economic Times
Bureau .
Dora, S., Hanumantu, K. U., & Worlikar, V. Examining the impact of political relations in corporate
world: the case of PNB. (2018).

5. How PNB Scam Can Impact The Health Of India’s Economy. (2019, March 25). Retrieved May 29,
2019, from www.eresearchnmarkets.com: https://www.eresearchnmarkets.com/blog/how-pnb-scam-
can-impact-the-health-of- indias-economy.php

6. How will the PNB fiasco impact the equity markets? (n.d.). Retrieved May 29, 2019, from
www.motilaloswal.com: https://www.motilaloswal.com/article.aspx/1665/How-will-the-PNB-fiasco-
impact-the-equity-markets

8
SCHOOL OF LAW, HYDERABAD
 FINANCE RESEARCH PAPER – SYNOPSIS REPORT

7. Iyer, S. (2018, March 21). Nine ways in which the PNB scam will affect India’s economy. Retrieved
May 29, 2019, from www.qz.com: https://qz.com/india/1233666/goldman-sach-says-the-pnb-fraud-
will-make-indias-economy-sputter/

8. Jain, R. (2018, February 26). Effects of Nirav Modi Scam on Indian Economy. Retrieved May 30,
2019, from www.investxp.in: https://www.investxp.in/effects-of-nirav-modi-scam-on-indian-
economy/
9.  Sarkar, A. (2018, March 6). PNB Fraud Case: Axis Bank Discloses Rs 200 Crore Exposure To
Nirav Modi, Gitanjali Gems Accounts. Bloomberg Qunit.
10.  Singh, C. (2016, March). Frauds in the Indian Banking Industry. IIMB-WP N0. 505.
11.  Singh, S. (2018, Feb 17). Fraud effect: LIC, investor in PNB, Gitanjali, loses Rs 1400 crore in three
days. Indian Express.
12. https://www.businesstoday.in/sectors/banks/nirav-modi-case-pnb-fraud-11400- crore-scam-ed-cbi-
raid/story/270708.html.
13. Gems and Jewellery - Shutdown and its impact. (2018, Feb 27). CARE Report.
14. https://economictimes.indiatimes.com/news/politics-and-nation/chronology-of- nirav-modis-
case/articleshow/68636493.cms?from=mdr
15. https://www.businesstoday.in/markets/stocks/nirav-modi-case-pnb-fraud-affects- stocks-of-union-
bank-allahabad-bank-sbi-axis-bank/story/270786.html

16. Bong-Chan Kho, D. L. (2000, May). U.S. Banks, Crises, and Bailouts: From Mexico to LTCM. American
Economic Review, 90(2).

17.  Adu-Gyamfi, M. (2016). The Bankruptcy of Lehman Brothers: Causes, Effects and Lessons Learnt. Journal
of Insurance and Financial Management, 1(4).

18.  Mathiason, N. (2008, Dec 28). Three weeks that changed the world. The Guardian.Sanches, D. (2014, Q2).
Shadow Banking and the Crisis of 2007-08. Business Review.

19.  Sanches, D. (2014, Q2). Shadow Banking and the Crisis of 2007- 08. Business Review.

20. Dugal, I. (2018, January 4). Half Of India’s Listed Government Banks Now Under RBI’s Watch. Bloomberg
Qunit.

21. [6]  Raghavan, T. S. (2018, Jan 24). Govt. unveils details of recapitalisation plan for public sector banks. The
Hindu.

22. (2010, July 21). Dodd-Frank Wall Street Reform And Consumer Protection Act.

23.  (2014). Growing NPAs in Banks: Efficacy of Credit Rating Agencies. PwC and Assocham.

24. Chakrabarty, K. C. (2013). Fraud in the banking sector – causes, concerns and cures. National Conference on
Financial Fraud. New Delhi: BIS central bankers speeches

25. (2014a). Master Circular on Frauds- Classification and Reporting. Reserve Bank of India-RBI circulars.

26. (2015a). Framework for dealing with loan frauds. Reserve Bank of India- RBI Circulars.

27. (2014b). Report of the Committee to the Review Governance of Boards of Banks in India. Reserve Bank of
India, Chairman P.J. Nayak.

9
SCHOOL OF LAW, HYDERABAD
 FINANCE RESEARCH PAPER – SYNOPSIS REPORT

28. (2015b). Monitoring of large value frauds by the Board of Directors. Reserve Bank of India - RBI Circulars.

29. Rajan.R.G. (2014). Competition in the Banking Sector: Opportunities and Challenges. New Delhi.

30. Gandhi.R. (2014). Growing NPAs in Banks: Efficacy of Ratings Accountability &Transparency of credit
rating agencies.

31. Altunbas, Y., Manganelli, S., & Marques-Ibanez, D. (2012, March). Bank Risk during the Great Recession:
Do business models matter?

BY GROUP 4 –

1. Vanshika Rajpal
2. Prashasti Tiwari
3. Aayan Mohapatra

10
SCHOOL OF LAW, HYDERABAD