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The learning outcomes of this study are to gain an understanding of the banking regulations and their impact on banking performance, to understand the intermediation role of banks by channelizing depositors’ savings and providing loans to borrowers, to explain an impact of a recent regulatory change in the Indian banking that directly impacts their financial performance, to critically evaluate the different financial ratios to analyze the performance of a bank and to build a DuPont analysis framework for banks.

The case serves as a primer on banking regulations in India and provides insights into banking performance. Banking regulations play an important role in maintaining financial stability, specifically in emerging economies like India. The protagonist of the case is Salil Kumar who presented his internship project to the review committee of Stock Investment Company on April 16, 2021. However, he had to rework and present his final project within seven days on the basis of the feedback received from the committee. Kumar faced the dilemma of bringing together a comparative study across two banks, namely, Industrial Credit and Investment Corporation of India (ICICI Bank) and State Bank of India (SBI) and building a DuPont framework covering the different aspects of banking performance. The case exemplifies the intricate regulatory landscape in India within which banks operate and highlights the recent alterations introduced by the Reserve Bank of India. For instance, the framework for dealing with domestic systemically important banks (D-SIBs) was introduced in 2014 and subsequently adopted in August 2015. The D-SIB framework provides inherent guarantee to large banks such as ICICI Bank and SBI. This ensures government backup in the event of any failure, thereby securing financial stability. The case study is suitable for banking and financial accounting courses taught in postgraduate management programs. Once the case is studied, the students are expected to understand the basics of banking, regulations, impact of regulations on banking performance and financial measures.

The case provides valuable insights into the intricate dynamics of the banking industry, offering a critical perspective for analysis. A well-structured teaching note would serve as a valuable tool for instructors, allowing them to facilitate engaging classroom discussions and effectively guide students toward achieving the desired teaching objectives.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.

The case deals with an Urban Cooperative Bank situated in Ahmedabad, known as Ahmedabad Peoples Urban Cooperative Bank (APUCB). The bank had come under the scanner of Reserve Bank of India (RBI) during 2009 because of mismanagement. It had failed to resolve its liquidity crisis even after the Reserve Bank of India imposed restrictions. The Government then appointed an external administrator, Hemant J. Rindani, to resolve APUCB's liquidity crisis. The bank had started paying claims but had lost people's trust. The last option for Rindani was to liquidate the bank. Rindani was however contemplating on various other options to come out with amicable solutions like, merge with other branches or pump in fresh capital and restart the business.

The learning outcomes of this paper is as follows: to understand and analyze the turnaround model of Pearce and Robbins (1993); to familiarize with parameters and actions in the Prompt Corrective Action (PCA) framework of Reserve Bank of India (RBI); to comprehend the probable situation warranting turnaround; to identify the key ratios which signal the financial health of a bank; and to understand the applicability of the turnaround model in bank’s revival.

The case explores various challenges faced by Mr Prashant Kumar during the turnaround process of Yes bank. The youngest bank started its operation in 2004, and in the first six years of operations, Yes bank registered a compound annual growth rate of 100% on the balance sheet, becoming the fourth-largest private sector bank in the country. However, the irony is that this shine and glitter was a short-lived phenomenon and after the regulatory inspection of 2016, Yes bank collapsed like a house of cards. This case has incorporated the three major phases of Yes bank i.e. the rise, the fall and the revival. The turnaround process led by Mr Kumar was explained using the turnaround model given by Pearce and Robbins (1993) and the PCA framework of the RBI. The conditions which warranted the need for the turnaround in Yes bank and the factors responsible for the same are discussed. The multiple challenges faced by Mr Kumar and the strategic responses adopted by him were incorporated in great detail. What were the outcomes of those strategic choices? Should he continue with similar approaches? Was he successful in stabilizing the bank which was broken from the core? What next if stability is achieved? How Mr Kumar should lift Yes bank to the recovery zone? And most importantly, will Mr Kumar be able to change the poor public image of Yes bank? The reflections of all the above questions are narrated with the actions of Mr Kumar.

The case is intended to be taught in the class of strategic management for postgraduate-, master- or executive-level participants of business administration. As the case is focused on a banking organization, it also can be taught in banking class.

Teaching Notes are available for educators only.

CSS 1: Accounting and Finance.

This case invites students to evaluate, based on given materials, the causes, consequences, and potential resolutions of the financial crisis of 2007–2009. The premise of a business professor preparing a slide presentation dramatizes an analysis of the financial crisis. Reviewing his data, much of it in graph form, the professor ponders the central role of banks and the impact of risk management, leverage, and incentives. His main thesis is that the fundamental issue surrounding this crisis was the misjudgment of the risks taken, with the result that risk management failed to do its job of curtailing and managing risk as expected.

This public-sourced case describes the latest restructuring efforts by Deutsche Bank (DB) and gives a short history of prior restructuring efforts from the decade before. In July 2019, Christian Sewing, the new CEO of DB, announced a series of measures that included, among others, the elimination of global equity trading, the layoff of 18,000 employees, the creation of a “bad bank” to transfer noncore assets, and the suspension of dividends until 2022. The case describes key decisions a bank CEO makes when a bank needs to change course to return to profitability and growth. The case offers an opportunity to debate these key decisions, as well as discuss some of the prior ones during earlier restructuring efforts, and put the students in the CEO's shoes: What would you do and why? The case also describes key banking performance metrics (e.g., ROE, ROA) and other critical variables such as those reflecting capital health (Tier 1 ratio), as well as gives an overview of the bank business model and factors impacting bank profitability and value.

The learning outcomes are as follows: to be able to evaluate early warning signs/red flags through financial statement analysis; to be able to analyse company’s credit or debt servicing using a thorough process of fundamental analysis; to be able to analyse and decode the financial health of an organization through different financial tools applicable according to the industry such as default probability and financial ratios; and to be able to synthesize credit rating framework and role of credit rating agencies in the bond market.

In late January 2019, the allegation by an online investigative portal about the misuse of the Dewan Housing Finance Corporation Ltd. (DHFL) money by its promoter for buying asset abroad was the start of the fall of the non-banking finance company giant. This was followed by a series of downgrade by credit rating agencies on its debt and eventual default on its interest payment on 4 June 2019 which upset multiple portfolio investors and the regulators. Investors became sceptical about the regulator’s policy and inefficiencies of credit rating agencies in predicting the default along with asset management houses which were expected to guard investors’ interest. One investor, Shikhar Pachori, decided to scrutinize all hidden information on DHFL to investigate if DHFL crisis arises because of unknown factors which was not in control of management or if it a clear negligence on the part of all involved parties. The case tries to emphasize the aspect of Asset-Liability Management and process of credit analysis while looking for red flags which aids in identifying any stress in company’s financial or any potential default by company.

This case can be used in the advance level of post-graduate finance course or MBA program for elective/specialization courses such as Financial Statement Analysis, Financial Institutions and Market and Fixed Income.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance

The learning outcome of this paper is to identify and interpret the risks linked to cyber-security and their impact on the organization. Analyze business management regarding cyber-security and information technology (IT) risk management. Evaluate and propose decision-making strategies for IT projects.

Silver Bank is a financial entity with broad national coverage. Its growth was directly related to its investments in customer service. The entire organization is focused on satisfying its clients’ needs, improving their experience and making them loyal to the company. However, it did not pay enough attention to a threat that, with time, had become more pronounced: cyber-attacks. Its efforts to fight against this threat were only temporary solutions, as gaps in its IT system made it an easy target for criminals until the arrival of Iván Ramírez, who proposes a holistic solution to decrease the probability and severity of these attacks. However, past experiences, ignorance and budget constraints make it a difficult task to convince the bank’s board of directors to implement the proposed solution.

The case can be used as teaching material in upper-level undergraduate and graduate management courses: –undergraduate courses: information technology management, IT project analysis and management – MBA or graduate courses: information technology management, strategic management and security governance.

Teaching notes are available for educators only.

CSS 11: Strategy.

These are the three most important learning outcomes: discuss the relevance of capital asset pricing model (CAPM) as the methodology to estimate the cost of equity for an investment in an emerging market; analyze the different alternatives to estimate country risk discussing the pros and cons of each. Consider the additional complexity in estimating the cost of equity, contrasting the perspective of a local, non-diversified investor with that of a multinational company operating in 39 countries.

The Chief Financial Officer of a business group has to determine the correct discount rate for an investment in a new hotel in Guayaquil, Ecuador. The group has traditionally used the same discount rate for all projects and is now presented with several alternatives by his team. Estimating the correct country risk adjustment for the project is an important challenge. He knows that there is no clear solution to this challenge that is accepted by all practitioners and academics, but he has to present a recommendation to the board.

The case study is designed for corporate finance, appraisal or international finance courses in both MBA and executive training programs. To discuss this case study, students are assumed to have been already exposed to the weighted average cost of capital and the CAPM.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 1: Accounting and finance.

Marketing.

The primary target for this case study is marketing and communications undergraduate students, especially those from emerging countries; the secondary target is MBA students studying principles of marketing, integrated marketing communications.

Turkey probably faced the most severe economic crisis after the Second World War in February 21, 2001, when the Turkish Lira was devalued by 94 percent against US dollar just overnight. Against this volatile business environment, Bank Z as one of the major banks in Turkey, was preparing for the launch of a major new marketing and communication plan. In April 2000 Bank Z had set itself the target of “changing the banking concept in Turkey, accomplishing no other bank was able to realize”. So Bank Z was ready to communicate its new consumer banking products when the country started to face rough times. Especially financial institutions and banks were encountering serious trust issues. Bank Z on the other hand, had grouped its products according to their line of financial expertise in five groups with the aim of having specialized personnel in these different areas, serving clients in the best possible way. Furthermore, the bank was aiming to realize 80 percent of its transactions via telephone and internet banking. Therefore, Bank Z had undertaken major technological investments in order to be able to deliver these services. But under these volatile economic conditions, should they go ahead with the campaign? Or should they postpone the campaign? Or should they realize it with a reduced frequency and budget? What if they postpone and one of the competitors start a new advertising campaign with similar propositions? The case tries to answer these critical questions with the help of market data, showing the likely course of business decisions can take in an emerging country just under 24 hours.

There are two main outcomes: first, to show the importance of consistent, continuous and sustainable communication for brand's marketing activities, especially during times of economic instability. The second outcome is to simulate difficulties of decision making under highly volatile market conditions and in high-risk environments, especially when the business environments can change abruptly.

Teaching notes are available.

Business Management, Global Marketing Strategy, Strategic Management, International Business, International Management.

The case is suitable for undergraduate and post-graduate business and management students. The case is based on secondary data collection and all the facts are real.

The expected learning outcomes include the selection of a foreign market; the determinants of the foreign mode of entry strategy; the process of integrating an internationalization strategy; how to choose the most appropriate partner; and the monitoring of international markets. The case provides a space to think about practice and help learners, therefore, to connect theory and practice.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.