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The case study will help to learn about the importance of pre-sanction precautionary measures before lending to self-help groups (SHGs), to learn about the potential lapses and errors while sanctioning SHG finance and to learn about the importance of bank’s guidelines and compliance before sanctioning loans.

This case study details the tenure of Seema in a rural branch of Safe Bank of India located in Haryana which she joined as a manager in the year 2016. She overachieved the target given by the district collector office, and going by the tide, she kept her reliance on the references provided by non-government organization (NGO) without complying the bank’s instructions. She committed errors while sanctioning the loans, which led towards the upsurge of non-performing assets of the branch. Later on, after investigation it was discovered that she did not follow fundamental bank’s instructions. In wake of those lapses and errors, how she could have avoided those lapses and secure the public money? What were the most important documents while granting agriculture finance and what due diligence she should have taken? How did she treat calls from the government departments? Was she right in trusting the suggestions of the NGO?

This case study caters to students of various streams, namely, management, business administration and law, and can be targeted at both undergraduate and postgraduate students. It could be suitable for several types of courses and students. Furthermore, this case study can also be targeted for various training programmes for bank employees and employees of various lending institutions engaged in agriculture finance and credit linkage programmes.

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.

New entrepreneurial businesses are one of the key drivers of innovation and economic development. However, one of their greatest obstacles is accessing capital, especially since they are often initially unprofitable and lack tangible assets in the first few years of operation. Since debt financing from banks can be difficult for them to obtain, their capacity for growth can be limited. This case introduces students to Kabbage, a company that reduced the barriers associated with start-up and microbusiness lending by using a fully automated, data-driven platform. Kabbage made instant decisions on whether these businesses should qualify for a line of credit by reviewing its clients’ electronic data, analyzed quickly and accurately using specific algorithms.

Given the applied nature of the case, the data were gleaned from a wide range of secondary sources, specifically popular business press which was verified for authenticity.

This case can be used in a variety of undergraduate courses. Some course examples include small business management, introduction to entrepreneurship or entrepreneurial finance.

After reading and analysing the case study, the students would be able to understand the various challenges in terms of credit expansion for a rural co-operative bank, discuss the role of an apex co-operative bank within the three-tier credit structure, understand the co-operative banks’ product offerings in the agribusiness space and understand the various styles of leadership and change management models within a rural bank.

This case study exemplified the enabling role played by a co-operative credit institution, Andhra Pradesh State Co-Operative Bank (APCOB). It discussed the issues and challenges APCOB faced in mainstreaming an unconventional lending process through its lower tiers. Although the three-tier credit structure played a significant role in the disbursal of short-term loan to farmers, the managing director strongly felt the need to reach out to farmer institutions like farmer producers organization through suitable product offering and right processes.

This case study could serve as an introduction to rural credit co-operatives in MBA courses such as bank management, agricultural finance and rural credit and organizational behaviour. The case study could also be administered as a part of training programmes for state co-operative banks, district central co-operative banks and urban co-operative bank that are involved in planning and execution of development strategies in the area of co-operative banking and agribusiness development.

Teaching notes are available for educators only

CSS: 1: Accounting and Finance.

Razorpay is a four-year-old Indian B2B fintech startup in digital payments which is venturing into digital lending. It aims to simplify digital payment flows involved in acceptance, processing, and disbursement of payments through superior technology and automation. This case details how Razorpay creates value for businesses by offering service convenience in B2B space. Razorpay started as a payment solutions provider, primarily known for their payment gateway. Over time the market for digital payment in India has matured, with multiple providers offering similar products making it difficult for Razorpay to sustain its growth by using technological leadership and service differentiation. To maintain its growth trajectory, Razorpay has launched multiple new products in the digital payment space as well as announced a foray into creating a marketplace for digital lending through launch of Razorpay Capital. The case provides details of the growth of Razorpay and its move from its core strength of payment gateway

After discussing this case, the authors expect that the students will have the following learnings: critically analyse the latest Reserve Bank of India (RBI) banking proposal, which was proposed by the Internal Working Group (IWG) in November 2020. Understand concepts such as connected lending, crony capitalism and financial crisis. Have a basic idea about the Banking Regulations Act, 1949 and regulatory framework in the Indian banking sector.

This case is an analysis of the recent RBI proposal on banking regulations in India. The authors have referred secondary data in terms of published papers by stalwarts and experts in the banking and economics field. This case analyses the pros and cons of the IWG proposal to RBI governing body. The case also touches upon interesting banking and macroeconomics concepts. What makes this case interesting is that RBI is open to receive comments from all the stakeholders till January 2021.

Applicable to undergraduate and postgraduate students studying banking and finance specialisation in commerce and business management streams.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.

This case asks students to step into the role of Adalberto Flores, co-founder and CEO of Kueski, one of the first companies to develop a proprietary algorithm for online loan approval in Mexico. Mexico lacks a standardized credit scoring system, making it difficult for many Mexicans to get approved for a loan or credit card. This, together with the fact that Mexicans generally do not trust traditional banks, makes Mexico an attractive opportunity for fintech companies. Growth, however, could require fintech companies to partner with traditional banks. Students assume the role of Flores to think about the benefits and risks associated with a partnership between Kueski and traditional banks. Students are also challenged to compare the structure of U.S. financial services markets with the Mexican structure and consider the implications on the sustainability of fintech companies in the two markets. The teaching note analyzes the Mexican financial market and the benefits and threats it holds for fintech companies, and outlines a framework for evaluating the risk associated with partnerships.

The case is suitable for undergraduate and MBA courses: strategic management, social entrepreneurship.

Masters, Bachelors.

In Fortaleza, January 2008, an urban microfinance manager and the planning committee of Crediamigo, Brazil's largest microfinance institution need to devise an entry strategy to Rio de Janeiro's microfinance market. A part of the Banco do Nordeste, and a regional development bank for ten years, Crediamigo has 400,000 clients in the Northeast of Brazil. Its objective is to double its clients base for 2011; Rio de Janeiro's market was the next priority. Crediamigo has two options. The first consists of partnering with VivaCred, a small experienced microcredit non-governmental organization (NGO) which operates in Rio de Janeiro's slums. VivaCred was a microfinance NGO with relatively low organizational capabilities and with a low performance in terms of loan repayment. Its lending methodologies were different from Crediamigo's experience. The second option was to set up a new branch of Crediamigo in Rio and to shape it in Crediamigo's image. The committee was aware that this, “far away from home”, would be a costly and slow venture.

After using this case, students will: have been exposed to the strategic, managerial and operational challenges of microfinance expansion in an emerging country; understand better the market entry strategy (acquisition/integration of an organization vs green field) in such a context; have discussed the conditions related to the replication of microcredit methodologies (individual, group and village lending methodologies) in their contexts of operations.

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

Zoe Greenwood, vice president at Foundation Investment Advisors, was glancing through the offering memorandum for a new commercial mortgage-backed securities (CMBS) deal on April 1, 2010, a time when the opportunities for commercial mortgage investors had been bleak to the point of comical. This new CMBS deal represented the first opportunity to buy CMBS backed by loans to multiple borrowers since credit markets had shut the securitization pipeline in June 2008.

The offering gave Greenwood a new investment opportunity to suggest to her firm's latest client. She had planned to recommend an expansion in her client's traditional commercial mortgage business, but these new bonds looked intriguing. Could the new CMBS offer her client a superior risk-return tradeoff compared with making individual mortgage loans?

After students have analyzed the case they will be able to:

• –Learn how to construct promised cash flows from both commercial mortgages and commercial mortgage-backed securities

• –Understand the benefits and costs of direct lending versus indirect lending (purchase of mortgage-backed bonds)

• –Underwrite commercial mortgage loans issued by others to identify potentially hidden risks

• –Evaluate at what price a mortgage-bond investment makes financial sense

–Learn how to construct promised cash flows from both commercial mortgages and commercial mortgage-backed securities

–Understand the benefits and costs of direct lending versus indirect lending (purchase of mortgage-backed bonds)

–Underwrite commercial mortgage loans issued by others to identify potentially hidden risks

–Evaluate at what price a mortgage-bond investment makes financial sense

In mid-February 2009, amid the global financial crisis, the news was grim. The U.S. economy had been in recession since December 2007. If the downturn lasted into early spring, it would become America's longest postwar recession. The economy had shed 3.5 million jobs over the previous 12 months, the worst 12-month period on record. Bank lending was plummeting; the few banks with funds available were holding onto them. With this massive shift into liquid assets (cash and cash equivalents) and away from lending of any sort (even for productive uses or, in many cases, the working capital firms needed to survive), the economy would likely grind to a halt. On this brisk mid-February day in Washington, Timothy Geithner and Ben Bernanke rolled up their sleeves and reevaluated their plans to address the nearly impossible task of righting the ship. In terms of monetary and fiscal policy, were they doing all they could to halt this epic slide? Were they doing too much?

Bonnie CLAC (car loans and counseling) is a social entrepreneurship venture whose mission was to help low-to-moderate income consumers purchase new cars. Co-founder and social entrepreneur, Robert Chambers developed a business proposal for the venture. Chambers was struggling to convince banks that the proposal significantly reduced the banks' risks and the proposal provided significant benefits to the banks and community at large. The case begins with another bank rejecting the business proposal, continues with an explanation of the issues sub-prime consumers (generally low-to-moderate income consumers) face when attempting to obtain financing for reliable automobile transportation, and concludes with Chambers beginning to revise his proposal to convince risk averse bankers that Bonnie CLAC's clients were credit worthy and worth the risk. The exhibits for the case are the principal information sources students will use to answer the ice breaker and discussion questions.

The authors developed the case from interviews with Robert Chambers and secondary sources.

Personal finance, Financial management, Financial institutions management

Personal financial planning, Bank lending decisions and Credit scores