Ethical Issues in the Field of Business

Introduction to the case: The case was listed on 28 September 2019 by the Delhi Police’s Economic Offence on the Lakshmi Vilas Bank. According the report the bank has high level of bad loans and low capital to manage risks and negative returns on assets for two consecutive years. According to the Delhi Police’s Economic Offence has said that the board of LVB is cheating and misusing of the funds. The regulatory action may cast doubt over the Indianbulls Housing Finance which proposed the merger with LVB and waiting for the RBI norms. PCA initiated after an on spite inspection, under the risk based supervision which was carried out 31 march 2019. For the fiscal year 2019 the bank net NPA stood at 7.49 percent, capital adequacy ratio was at 7.72 percent and net loss was 894.10 crore. PCA aimed to improve the performance of the bank and will not have any adverse impact on the day to day operations of the bank. Banks currently under PCA are Union Bank Of India, IDBI Bank, Indian...

Today’s World is filled with frauds and scams many people suffer by falling in to this and they don’t know how to overcome from the situations. In the last blog we talk about the PMC Bank and this also related to Banking sector. This case happened in the Karnataka Co-op Bank and in this case we will more concentrated about some ethical issues.   Introduction to the Case Firstly, let me introduce with the case. This is case regarding the Karnataka MLA D K Shivakumar who have involved in money laundering case. The victim has caught on 3 rd September 2019 and has been taken in the custody. Nearly a year ago the D K Shivakumar took loan from Karnataka Co-op Bank for his some of his sugar factories and he had never paid any amount to the bank later they found that he was doing money laundering. The officials have also found out another thing that the president bank K N Rajanna is also involve in this case. As we all know that banks run for the welfare of the societ...

Introduction to the case: As we know the biggest news of 2019, the case of PMC bank. The account holders of PMC bank suffered a lot, but their no help of the Government to the people let’s keep this factor aside and, let's look at how ethical was the management of PMC bank was?   Now let us start with the case of the PMC bank, we know this company or we might HDIL promoter which provide the home loan to people and this company is located in Mumbai, Maharashtra. HDIL promoter have colluded with the management of  PMC  bank to draw loans from the Bhandup branch. Even though they did not make any payment the bank did not consider it has a non-performing asset. The report has been estimated that the amount was around 6500 crore which is 73% of bank advances. In the year 2018-19, the bank showed the net profit of 99 crores and it showed it non-performing assets were 3.76% of its total advances. However, now we concluded that the bank has shown the wron...