Page 7 - Banking Finance October 2019

BANK UPDATE

CVC sets up Advisory Bank of Baroda partners with Hyundai for vehicle fi-
Board to probe bank nance
fraud above Rs. 50 crore Hyundai Motor India Ltd (HMIL) has recently stated that it has entered into an
agreement with Bank of Baroda in order to
The Central Vigilance Commission be the preferred financier for its dealers and
(CVC) has consumers.
constituted
Advisory HMIL stated in a statement that as part of the
agreement, the bank will offer detailed financ-
Board for
ing structure for both dealers and consumers,
BankingFrauds
while enhancing its presence over the network
(ABBF)
headed by former Vigilance Commis- of Hyundai Motor India Ltd. It further added that dealer financing will be done
as per the bank’s existing product program of supply chain finance.
sioner T M Bhasin to examine bank
fraud over Rs 50 crore and recom- “We are sure this alliance will benefit our dealer partners to manage their in-
mend action. ventory funding requirements effectively,” HMIL MD & CEO SS Kim said.
The panel had previously called the Bank of Baroda MD & CEO P S Jayakumar said, “There is a huge potential avail-
Advisory Board on Bank, Commercial able in the auto loan/dealer finance/commercial finance segment, we are hope-
and Financial Frauds. The ABBF ful that this agreement will help increase our market penetration.”
would act as the first level of exami-
nation of all large fraud cases before HDFC to organize 1000 loan fairs
recommendations or references are
made to the investigative agencies After the finance minister directed banks to expand credit through loan melas,
by the respective public sector banks HDFC Bank has planned to organise 1,000 Grameen
(PSBs), CVC said in an order. Loan Melas over the next six months.
The four-member board's jurisdiction The loan fairs will be conducted across more than 300
would be confined to those cases in- districts so that these fairs will cover around 6,000
volving the level of officers of Gen- villages all over the country. “We want to take bank-
eral Manager and above in the PSB ing products to the doorstep of every Indian,” said
in respect of an allegation of a fraud Arvind Vohra, country head of branch banking, HDFC Bank.
in a borrowal account, it said.
He said, “Grameen Loan Melas allow us to do just that, taking HDFC Bank's
Lenders would refer all large fraud entire range of products and services.”
cases above Rs 50 crore to the board
and on receipt of its recommenda- Residents of these rural areas can avail of loans to purchase tractors, vehicles,
tion or advice, the bank concerned two-wheelers and take credit for agriculture purposes. They can also open cur-
would take further action in such rent or savings accounts while opting for consumer durable loans at no extra costs.
matter, it said. "Central Bureau of HDFC Bank will also provide business loans and emerging enterprise loans to
Investigation (CBI) may also refer small traders and shopkeepers. In addition, self help groups (SHGs) can avail of
any case or matter to the board finance through the bank’s Sustainable Livelihood Initiative (SLI). Such village
where it has any issue or difficulty or fairs would also serve as a platform to educate the local people about banking
in technical matters with the PSB services.
concerned," it said.
HDFC bank in release stated, “Services like Missed Call Banking, which allow
Other members of the panel are D K
Pathak - former Director General of customers to complete basic banking transactions such as checking account
the Border Security Force, balance, ordering a cheque book by dialling a toll free number, will be show-
Madhusudan Prasad - former Urban cased at the melas.”
Development Secretary, and Suresh “We believe initiatives such as these will help fulfil the changing aspirations of
N Patel - former MD and CEO of customers in rural India, bring prosperity to their homes and boost the rural
Andhra Bank. economy,” said Vohra.

BANKING FINANCE | OCTOBER | 2019 | 7