You are on page 1of 100

Executive summary

The last decade has seen many positive developments in the Indian banking sector. The
policy makers, which comprise the Reserve Bank Of India (RBI). inistry of finance and
related government and financial sector reg!latory entities, have made several notable
efforts to improve reg!lations in the sector. The sector now compares favo!rably with
banking sectors in the region of metries like growth, profitability and non performing
assets ("#$s). $ few banks have established an o!tstanding track record of innovations,
growth and val!e creation. This is reflected in their market val!ation. %owever
improved reg!lations, innovations growth and val!e creation in the sector remain limited
to a small part of it. The cost of banking intermedation in India is higher and bank
penetration is far lower than in other markets. Indian&s banking ind!stry m!st strengthen
itself significantly if it has to s!pport the modern and vibrant economy which Indian
aspires to be. 'hile the onces for this change lies mainly with bank management can
enabling policy and reg!latory framework will also be critical to their s!ccess.
The st!dy involves the different types of services offered b banks for corporate. The
essence of banking b!siness is the f!nction of accepting deposits from p!blic with the
facility of withdrawal of money by che(!e. Besides from the !s!al services, banks now
have started giving additional services right from working capital needs to investment
banking.'orking capital is the core area of banking ind!stry today.
This pro)ect contains both primary and secondary data
*

1.INTRODUCTON
+orporate banking represents the wide range of banking and financial services provided
to domestic and international operations of large local corporate and local operations of
m!ltinational corporations. ,ervices incl!de access to commercial banking prod!cts,
incl!ding working capital facilities s!ch as domestic and international trade operations
and f!nding channel financing in foreign and overdrafts as well as domestic and
international payments, I"R term loans (incl!ding e-ternal commercial borrowings in
foreign c!rrency), letters of g!arantee etc
+orporate banking services are an integral part of the corporate investment, Banking and
markets (+IB) str!ct!re, which foc!ses on offering a f!ll range of services to
m!ltinational, large domestic corporate and instit!tional clients. The investments banking
and markets division brings together the advisory and financing, e(!ity sec!rities, asset
management, treas!ry and capital markets, and private e(!ity activities of the gro!p to
the complete the +IB str!ct!re and provide a complete range of financial prod!cts to
the clients.
+lients are serviced by sector based clients services teams that combine the relationship
managers, prod!ct specialists and ind!stry specialists to develop c!stomi.ed financial
sol!tions. These form the relationship team along with the Investments banking and
advisory division. /ach team s!pports the client&s worldwide operations, ens!ring a f!ll
!nderstanding of the company&s b!siness and financial needs.
0

1.1OBJECTIVES
 To !nderstand the concept!al framework of corporate banking
 To !nderstand the several areas !nder corporate banking.
 To learn abo!t the lending proced!re of the banks to the corporate.
 To find o!t the vario!s prod!cts and services offered by banks.
 To !nderstand the f!t!re growth prospect!s in corporate banking
1

1.2Research Meth!"#y$
*. #rimary data collected thro!gh 2!estionnaire filled by both bank and corporate.
0. ,econdary data collected from books and websites.
3

2. %RO&I'E O& &EDER(' B(N)
Tho!gh initially it was known as the Travancore 4ederal Bank, it grad!ally transformed
into a f!ll5fledged bank !nder the able leadership of its 4o!nder, r. 6 # %ormis. The
name 4ederal Bank 7imited was officially anno!nced in the year *839 with its
head(!arters nestled on the banks on the river #eriyar..
:

2.1Visi*$
 Become the dominant ;n!mero !no< bank in 6erala and a leading player in target
markets.
 Be the =tr!sted& partner of choice for target (,/, Retail, "RI) c!stomers.
 Be a c!stomer5centric organi.ation setting the benchmarks for service.
 Offer innovative yet simple prod!cts s!pported by the state5of5the art technology.
 %ave a dynamic and energi.ed workforce with a strong sense of belonging.
 >eliver top tier financial performance and s!perior val!e to stakeholders.
 Be a role model for corporate governance and social responsibility
?

2.2Missi*
>evote balanced attention to the interests and e-pectations of stakeholders, and in
partic!lar@
Shareh"!ers$ $chieve a consistent ann!al post5ta- ret!rn of at least 0AB on net worth.
Em+"yees$ >evelop in every employee a high degree of pride and loyalty in serving the
Bank.
Custmers$ eet and even e-ceed e-pectations of target c!stomers by delivering
appropriate prod!cts and services, employing, as far as feasible, the single5window and
035ho!r5seven5day5week concepts, leveraging strengthened branch infrastr!ct!re, $Ts,
and other alternative distrib!tion channels, cross5selling a range of prod!cts and services
to meet c!stomer needs varying over time, and ens!ring the highest standards of service
at all times.
>evelop, adopt, and review a well5conceived b!siness plan for achieving realistic targets
of growth, profitability, and market share over the medi!m term.
Operate within a well5defined, diversified, risk profile and adopt pr!dent risk5
management norms and processes and effective control practices.
/mploy and leverage appropriate modern information technology to@ enhance the (!ality,
speed, and acc!racy of prod!ctCservice deliveryD provide =anytime5anywhere& banking
facilityD strengthen management information and control systems and processesD improve
prod!ctivityD and red!ce costs.
Increase awareness of the E4ederal BankE brand among targeted c!stomer gro!ps thro!gh
cost5effective marketing.
9

$dopt a rob!st corporate governance code emphasi.ing a high degree of professionalism
of the Board and the management, and acco!ntability and disclos!re to shareholders.
>ecentrali.e decision making with acco!ntability for decisions made, and assign
cascading profit responsibilities to middle and )!nior management.>evelop a cond!cive
and transparent work environment that fosters staff commitment, competence, initiative,
innovation, teamwork and service5orientation.
&uture$
'e are the fo!rth largest bank in India in terms of capital base and can easily boast of a
+apital $de(!acy Ratio of *9.01 B, one of the highest in the ind!stry. This along with
the e-istence in a highly reg!lated environment has helped the bank to tide over the
recession with minim!m impact to its financial stability.
In fact we have been e-panding organically over the past few months. 'e believe in
e-tending o!r reach to o!r c!stomers by making o!r services available to all, 03-9. 'e
have Branches and $Ts across India in addition to the Representative Office at $b!
>habi that serves as a nerve centre for the "RI c!stomers in F$/.
'e are transforming o!rselves, keeping o!r principles in tact, into an organisation that
offers service beyond par.Being in the service ind!stry we are conscio!s of o!r
s!rro!ndings and what happens in the society.
O!r 7arge +orporate team offers c!stomi.ed str!ct!red prod!cts to meet the speciali.ed
re(!irements of corporates, instit!tions and b!siness clients. /ach member of o!r
+orporate 4inance team brings with him a wealth of transaction e-perience across
transaction varieties and sectors to cater to yo! better. 'e have emerged as one of the
leading private sector banks in the co!ntry, in providing a gam!t of prod!cts for
ind!stry, trade and infrastr!ct!re sectors. 'e serve a wide range of c!stomers across
varying ind!stries, segments and regions.
G

2., %r!ucts a*! Services
Term 'a*s
'e can str!ct!re credit sol!tions to meet yo!r specific short5term or long term f!nding
re(!irements. 'e provide str!ct!red term financing sol!tions for infrastr!ct!re, pro)ect
f!nding, real estate and other corporate p!rposes. The loans are provided at competitive
rates and are str!ct!red to enhance yo!r profitability by sched!ling the repayment to
match the cash flow available to repay the debt.
Cr+rate 'a*s
4or a variety of b!siness related p!rposes to corporates
-r.i*# ca+ita" /i*a*ce
'e offer working capital finance by way of cash credit, overdraft or working capital
loans s!itably str!ct!red to yo!r needs and yo!r risk profile as a part of consorti!m or as
a sole banker. These prod!cts are designed to ease the li(!idity position of the client.
8

Bi"" &i*a*ce
Trade finance by disco!nting bills
/-portH import finance
#re and post shipment finance, forward covers, b!yer&s credit and finance in foreign
c!rrency.
'etter / Cre!it
'e provide for opening inland and import letter of credit facility to facilitate
proc!rement of inventory and capital goods.
Ba*. 0uara*tees
'e offer to iss!e vario!s types of g!arantees 5 performance, financial, bid bond etc. O!r
g!arantees are well accepted by government agencies, +apital arket $gencies and all
ma)or corporate
*A

2.1 Varius /acets / 2a*.i*#.
(!+t 2est i*!ustry +ractices.
• >evelop, adopt, and review a well5conceived b!siness plan for achieving realistic
targets of growth, profitability, and market share over the medi!m term.
• Operate within a well5defined, diversified, risk profile and adopt pr!dent risk5
management norms and processes and effective control practices.
• /mploy and leverage appropriate modern information technology to@ enhance the
(!ality, speed, and acc!racy of prod!ctCservice deliveryD provide =anytime5
anywhere& banking facilityD strengthen management information and control
systems and processesD improve prod!ctivityD and red!ce costs.
• Increase awareness of the E4ederal BankE brand among targeted c!stomer gro!ps
thro!gh cost5effective marketing.
• $dopt a rob!st corporate governance code emphasi.ing a high degree of
professionalism of the Board and the management, and acco!ntability and
disclos!re to shareholders.
• >ecentralise decision making with acco!ntability for decisions made, and assign
cascading profit responsibilities to middle and )!nior management.
• >evelop a cond!cive and transparent work environment that fosters staff
commitment, competence, initiative, innovation, teamwork and service5
orientation.
**

,.1 Cr+rate Ba*.i*# +erati*s$
The bank mostly lend against appropriate tangible sec!rities s!ch as deposits, shares,
debent!res, proprety,g!arantees, s!pported by tangible sec!rities, life policies, goods,
gold or other precio!s metal. The bank may also lend against intangible sec!rities s!ch as
!ns!pported g!arantees or assignment of s!ms d!e to the borrower by the third parties. It
is essential that the bank follows the proper proced!res in order to obtain good title when
taking a sec!rity. There is a difference between possession and ownership. The vario!s
forms of doc!ments !sed for obtaining different types of sec!rities are also important.
Inade(!ate doc!mentation may well ca!se the losses to the bank and is partic!larly time
for the Trade 4inancing doc!mentation and the sec!rities agreement relating to goods.
>oc!ments are primary evidence. If any laccina is fo!nd in doc!mentation, this will
)eopondi.e the interest of the bank and may even adversely affect the right of recovery of
the doc!ments e-ec!ted properly and correctly. 4!rther, the doc!ments sho!ld be
stamped, wherever re(!ired.
The bank m!st also follow proper proced!res to realise sec!rities otherwise losses may
be inc!rred. The corporate operations divisions are normally responsible for maintaining
sec!rities otherwise losses may be inc!rred. The corporate operations divisions are
normally responsible for maintaining sec!rities doc!mentation and !pdating the
c!stomer&s mandates with fresh acco!nt doc!mentation acco!nt statements, financial
statements and relationship reviews. %andling and treatment of delin(!ent acco!nts is
also an important area of operations. Irading of bad and do!btf!l debts for an effective
delin(!ency policy is essential to avoid !nnecessary financial losses.
*0

,.2C3(N0IN0 &(CTS O& COR%OR(TE B(N)IN0
STR(TE04$
$s a res!lt of the advent of the internet banks and other financial inst!tions are rethinking
their corporate banking strategy. The internet opens a new channel for delivering services
to corporate clients and helps these instit!tions remove c!mbersane and e-pensive paper
process. It is significantly cheaper and m!ch more fle-ible.
'ith the internet, large m!ltinational companies that always !sed />I(/lectronic >ata
Interchange) can save more money by eliminating the old systems, e-pensive private
networks and e-pand reach to incl!de more b!siness on the s!pply chain. ,mall to
medi!m si.e companies, too, can cond!ct b!siness to b!siness transactions. The internet
simply provides a two way electronic linkage that never e-isted before. ,o, banks can
now offer tr!sted sol!tions to their corporate c!stomers via the low cost delievery
channel.
i.e, The I"T/R"/T. $nd corporations will en)oy the ability to manage cash held by their
strategic banking partners in real time. Jia a sec!re, efficient, web5enabled
comm!nication system. The e-pected shift in vol!me from paper5 based transactions to
electronic ones wo!ld determine the path of f!t!re technology investments in banks and
orient it towards electronic payment delivery systems.
This shifts is also driven by ;B$"6,< perceptation that electronic transactions
contrib!te higher
*1

,.,IM%ORT(NCE O& &EE5B(SED SERVICES
>ereg!lation and¬ new technology have eroded banks& comparative advantages and
made it easier for non5bank competitors to enter into hitherto e-cl!sive banks& domains.
In response, banks have shifted their sales mi- toward non5interest income by selling
=non5bank& fee5based financial services by charging e-plicit fees for services.
$ccording to another st!dy titled =4ee5Based 4inancial¬ ,ervices arkets@ "ew
Opport!nities and Threats In the Internet $ge& by 6illen $ssociates again, the market for
retail and commercial fee5based financial services will e-ceed that for interest5based
services by 0AA:, reaching nearly a staggering K:AA billion by 0AA3 globally. Banks
want s!ch services to¬ be their primary profit so!rce for certain reasons. This reven!e is
more stable over time, ass!res a steady income and more importantly, leads to a strong
relationship with the corporate client.
*3

,.1T3E (CCOUNT RE'(TIONS3I% M(N(0EMENT$
ME(NIN0$
The acco!nt relationship managers are those who negotiate with
the targeted corporate c!stomers with the terms acceptable to the banks and ;$cco!nt
Relationship anagement $cceptance +riteriaE or the so called E+redit I!idelines.E It
sho!ld be internally placed and distrib!ted to every credit managerCofficer. These
g!idelines set the minim!m acceptance standards, in simple words, the g!idelines are
aimed to let the acco!nt relationship managersCofficers know e-actly what they sho!ld be
selling, to whom, at what price and !nder which conditions (sec!rities and other terms).
DECISION M()IN0$
aking a so!nd decision to e-tend credit to a corporate c!stomer is a comple- process.
This is beca!se corporate c!stomers are normally engaged in a wide range of activities
and are affected by a host of e-ternal and internal factors that have direct impact on their
ability to meet financial obligations. The credit decision making sho!ld, therefore, be
directed by an internal lending policy that takes into acco!nt s!ch factors and aims to
protect the bankLs assets, preserve its rep!tation and optimi.e the relationship
profitability. Based on the credit g!idelines, the acco!nt relationship e-ec!tive will have
to s!bmit a credit proposal eval!ating the whole relationship. The +redit /val!ation
process m!st be done systematically and within acceptable standards to maintain a high
*:

(!ality credit portfolio. The preparation of the credit proposal m!st be g!ided by
common sense and sensible )!dgement.
The amo!nt of details the proposal sho!ld contain nat!rally depends on several elements,
namely the si.e and strength of the c!stomer, the si.e of the bankLs c!rrent and proposed
e-pos!re, the socio political environment, the economy, the ind!stry and the bankLs
position in relation to other.
CREDIT EV('U(TION$
The bank m!st place a system of credit eval!ation which is based on assessment of
historical, c!rrent and pro)ected elements stated here!nder@
a. &IN(NCI(' (N('4SIS$
,ales, #rofitability, #erformance, 4!nds 4low, working +apital anagement, li(!idity,
balance sheet conditions...etc
2. O%ER(TIN0 (N('4SIS 6O%ER(TIN0 RIS)S7
Owners, anagement, +ompany, Ind!stry, arkets. In s!mmary, the credit proposal
(review) m!st highlight the 4inancial Risks and Operating Risks. It sho!ld state the
magnit!de and likelihood of s!ch risks i.e. E'hat ifE scenarios, and how will they be
managedM ost global banks maintain their credit eval!ating standards in an internal
EInstr!ction an!alE containing the bankLs management instr!ctions regarding each and
every aspect of the credit e-tension or review process. It sets the management standard of
credit eval!ation to eliminate risks and prevent the decline in profit margins on credit
facilities.
*?

,.8 COR%OR(TE SERVICES %ROVIDED B4 INDI(N
B(N)S
ME(NIN0$
+orporations, the world over are )ettisoning anti(!ated cash management practices and
opting to p!t in place sophisticated cash management str!ct!res to garner the associated
economic benefits and d!e to reasons of e-pediency.
+onversely, banks have taken note of the enormo!s reven!e potential in the fee5based
services segment to prop !p their sagging bottom lines. 'hile appreciating the initiatives
taken by the $dministrative ,taff +ollege of India in organi.ing the 'orkshop.
The some of the relevant iss!es, which the banks need to address are as follows.
OBJECTIVE O& C(S3 M(N(0EMENT$
The f!ndamental ob)ective of cash management is =optimi.ation of li(!idity thro!gh an
improved flow of f!nds.& In today&s highly competitive environment, where time is
considered as money, deployment of staff to render basic ro!tine tasks does not make
economic sense. $s a se(!el, cash management today is not what it !sed to be.
/lectronic banking, which began as a passive desktop access to bank balances, is
emerging into comple- processes of li(!idity management thro!gh n!mero!s techni(!es.
$lmost all of the corporations in advanced co!ntries are now planning to !se the services
of banks to help them collect payments on monthly bills they iss!e to cons!mers and
other types of cash management services.
*9

IM%ORT(NCE O& C(S3 M(N(0EMENT &OR ( COR%OR(TE ENTIT4$

Iood cash management is a conscio!s¬ process of knowing when, where, and how a
company&s cash needs will occ!rD knowing what the best so!rces for meeting additional
cash needsD and being prepared to meet these needs when they occ!r by keeping good
relationships with bankers and other creditors. ,cientific cash management res!lts in¬
significant savings in time, decrease in interest costs, less paper work and greater
acco!nting acc!racy. #roper cash management creates more control¬ over time and
f!ndsD provides timely access to informationD enables easy employee related paymentsD
s!pports electronic paymentsD prod!ces faster electronic reconciliationD allows for
detection of bookkeeping errorsD red!ces the n!mber of che(!es iss!ed and earns interest
income or red!ces interest e-pense.
+orporations with s!bsidiaries worldwide, can pool everything¬ internationally so that
the company can offset the debts with the s!rpl!s monies from vario!s s!bsidiaries. The
end res!lt will transform treas!ry f!nction¬ as a profit5centre by optimi.ing cash and p!t
it to good !se.
+reative and¬ pro5active cash management sol!tions can contrib!te dramatically to a
company&s profitability and to its competitive edge. The !ltimate p!rpose of proper¬
management of li(!idity, needless to emphasi.e, is to improve the overall prod!ctivity of
f!nds.
*G

,.9T4%ES O& C(S3 M(N(0EMENT SERVICES$
The men! of cash management services offered by banks abroad is indeed diverse and
tempting. The services broadly fall !nder collection services, >isb!rsement services,
Information and control services, services related to /lectronic data interchange (/>I),
+ommercial web banking services, ,weep services, 4ra!d detection sol!tions, Ilobal
trade sol!tions and Investment sol!tions. +ollection ,ervices accelerate receipt of
payments from sales and (!ickly t!rn them into !sable cash in acco!nts.
>isb!rsement ,ervices make efficient payments by red!cing or eliminating idle balances
in company&s acco!nts. Information and +ontrol ,ervices receive the data and provide
the management capability needed to monitor company cash pict!re, control costs,
reconcile and a!dit bank acco!nts, and red!ce e-pos!re to fra!d.
4inancial /lectronic >ata Interchange (/>I) is a comp!teri.ed e-change of payments
between a company&s b!siness and its c!stomers and vendors.
+ommercial 'eb Banking ,ervices give a wide range of services from any Internet
connection, which can help streamline banking process (!ickly and efficiently. ,weep
,ervices maintain li(!idity and increase earnings witho!t having to actively monitor
acco!nts and move money in and o!t of them
Information reporting sol!tions assist companies, which need to receive acco!nt data
that is timely, precise, and easy to access and interested in initiating online transactions.
Investment sol!tions help to minimi.e e-cess balances and ma-imi.e ret!rn on
*8

C(S3 M(N(0EMENT SERVICES 5 INDI(N SCEN(RIO$
It is apposite to review the Indian scenario in this regard. $s we are well aware, banks&
desire for f!nds has lost !nder the onsla!ght of the c!rrent slowdown. >espite the offer
of very soft terms corporates are ref!sing to borrow, while bank deposits have been
ballooning. +ompelled to service the b!rgeoning liabilities, b!t !nable to lend hastily and
allow their non5performing assets ("#$s) to grow, bankers are forced to compete for the
handf!l of safe bets among their borrowers. Banks chose to !se the opport!nity to
refoc!s their activities, seeking clearly defined identities in terms of services and
c!stomer segments. ost of them concentrated on cleaning !p their books by peeling
down their "#$s. $ll of them attempted free.ing of costs, improving operational
efficiencies, and boosting prod!ctivity.The strategy of the banks, which performed well,
is to !se fee5based services to maintain earnings growth.
'ith interest rates falling, non5interest income was, !ns!rprisingly, the fastest5growing
component of the banks& total income. 4ee5based activities will complement tho!gh not
s!bstit!te the core b!siness of lending .It is gratifying to note that a n!mber of banks in
India are offering wide5ranging cash management services to their corporate clients.
$ll the three categories of banks vi.., nationali.ed banks, private banks, and foreign
banks operating in India are active in the cash management segment.
,BI, #"B, I+I+I Bank, ITB, %>4+ Bank, +ent!rion Bank and Jysya Bank, are some
of the active Indian banks in this segment.
0A

+iti Bank, ,tandard +hartered Bank, $B" $mro Bank, B"#, $"N Irindlays and
%,B+ are the foreign banks operating in India, which are prominent among the cash
management services providers. +!rrently, the t!rnover of cash management services in
Indian market is estimated over Rs.0:, AAA crore per month.
,tate Bank of India alone is estimated to handle over Rs.*0,AAA crore per month thro!gh
its prod!ct called ,BI54$,T. Indian banks are offering services like /lectronic f!nds
transfer services, provision of cash related I, reports, cash pooling services, collection
services, debit transfer services, g!aranteed credit arrangements, sweep prod!cts, ta-
payment services, receivables and payables management. 4oreign banks operating in
India are offering regional and global treas!ry management services, li(!idity
management services, card services, electronic banking services, e5commerce sol!tions,
acco!nt management services, collection management services, cash delivery
management services and investment sol!tions.
The cash management services offered to Indian corporate are comparable to what their
co!nterparts are getting in advanced co!ntries. Banks reali.ed that if they do not offer the
services re(!ired by corporate c!stomers it wo!ld res!lt in a net loss of clientele, ret!rns
and goodwill. Banks in India need to contin!o!sly monitor international trends in
innovations taking place in providing cash management services and swiftly offer similar
services to their corporate clients.
0*

RESERVE B(N)S INITI(TIVE IN C(S3 M(N(0EMENT
The Reserve Bank of India has been taking a n!mber of initiatives, which will facilitate
the active involvement of commercial banks in the sophisticated cash management
segment. One of the pre5re(!isites to ens!re faster and reliable mobility of f!nds in a
co!ntry is to have an efficient payment system.
+onsidering the importance of a rob!st payment system to the economy, the RBI has
taken n!mero!s meas!res since mid /ighties to strengthen the payments mechanism in
the co!ntry.
Introd!ction of comp!teri.ed settlement of clearing transactions, !se of agnetic Ink
+haracter Recognition (I+R) technology, provision of inter5city clearing facilities and
high val!e clearing facilities, /lectronic +learing ,ervice ,cheme (/+,,), /lectronic
4!nds Transfer (/4T) scheme, >elivery vs. #ayment (>v#) for Iovernment sec!rities
transactions, setting !p of Indian 4inancial "etwork (I"4I"/T) are some of the
significant initiatives which highlight the serio!sness with which the Reserve Bank has
taken !p the reforms in #ayment systems. Introd!ction of a +entrali.ed 4!nds
anagement ,ystem (+4,), ,ec!rities ,ervices ,ystem (,,,), Real Time Iross
,ettlement ,ystem (RTI,) and ,tr!ct!red 4inancial essaging ,ystem (,4,) are the
top priority items on the agenda to transform the e-isting systems into a state5of5the5art
payment infrastr!ct!re in India by the Reserve Bank. The c!rrent vision envisaged for
the payment systems reforms is one, which contemplates linking !p of at least all
important bank branches with the domestic payment systems network thereby facilitates
cross boarder connectivity. 'ith the help of the systems already p!t in place in India and
which are coming into being, both banks and corporates can e-ercise effective control
over the cash management.
00

SOURCIN0 C(S3 M(N(0EMENT SERVICES
It is normally the client5bank relationship, which is a main consideration in choosing a
bank for cash management. #ricing, obvio!sly, is a very dominant factor .aking a
choice between the local banks and the more highly priced foreign banks !s!ally
depends on how cost savings are presented by the banks. !ltinational corporates with
comple- treas!ry operations admire their respective banks& e-pertise and ability to offer
creative sol!tions
4le-ibility, reliability, sec!rity and stability have been cited as vital parameters for any
electronic banking system. The systems sho!ld be tailored to provide pertinent reports
and the ability to !pgrade easily in f!t!re.
The technology sho!ld allow real5time cash management with strategic banking
partners. It sho!ld integrate easily with legal framework in place. It sho!ld lower
operating costs and resolve disp!tes (!ickly by providing sec!re and legally enforceable
a!dit trails. It sho!ld be capable of red!cing risk of fra!d in electronic f!nds transfers
and other treas!ry activities. It sho!ld also be able to !se a low5cost p!blic network
infrastr!ct!re like Internet, which eliminates the need for dedicated leased lines.
C3(N0IN0 C(S3 M(N(0EMENT %ROCESSES (ND :E5B(N)IN0;$
I""OJ$TIO",@
The enlightened participants in this 'orkshop are aware that the cash management
techni(!es have been !ndergoing a metamorphosis as a res!lt of the e-tensive
technological advancements. #ositioning finance as a val!able part of a b!siness
organi.ation means re5engineering of b!siness processes.
01

/lectronic Bill #resentment and #ayment (/B##) is now widely accepted in 'estern
co!ntries. It replaces the slow and costly process of preparing and mailing paper bills and
receiving che(!es as payment. +orporations look to electronic bill presentment and
payment as an opport!nity to e-pand marketing and sales efforts, enhance c!stomer care
and increase efficiency, while red!cing costs. $s technologies evolve with ama.ing
speed, the IT choices facing treas!rers are becoming more intricate sim!ltaneo!sly
increasing their e-pectations too. Today, a m!ltinational company has tall demands from
its banker. 'hen the treas!rer sits at his desk, he e-pects that his comp!ter has to
a!tomatically !pdate his files with real5time information on the company&s acco!nt
balances. 'itho!t moving, he wants to mane!ver f!nds between acco!nts to capt!re
more interest from pooled acco!nts, he demands to lag his payments to mak his cash
work to the f!llest and he desires to get an !p5to5date report on the progress of his
collections.
$s the Internet e-plodes into life, companies want to be among the first to !se the
Internet to market their prod!cts, receive orders, deal with s!ppliers and settle
transactions +orporates vis!ali.e technology as a tool to c!t their costs and improve
efficiency.
03

COR%OR(TE C(S3 M(N(0EMENT TO BENE&IT &ROM E'ECTRONIC
%(4MENTS$
The new electronic payment prod!cts and services offer the corporate clients an
improved bottom line by helping manage cash re(!irements. It helps corporate to make
the best !se of their f!nds and provides an effective means of managing their financial
re(!irements
,everal of the trends in cash flow forecasting favor the !se of electronic payment
prod!cts like RTI,, /lectronic 4!nds Transfer (/4T) and card payments.
Improved technology and systems integration makes it more attractive to !se electronic
payment prod!cts beca!se these methods of payment can be incorporated into firm5wide
comp!ting systems.
The new forecasting techni(!es also s!ggest !se of electronic payments, beca!se they
offer disaggregated reven!e and spending data that can easily be categori.ed and st!died.
/lectronic payments and cards provide control over incoming f!nds, and allow
companies to limit access to these f!nds to a!thori.ed parties. In addition, limiting
corporate p!rchases to electronic payments makes it easier for firms to monitor cash
o!tflows and prevent !na!thori.ed e-pendit!res, beca!se these payments are easier to
doc!ment and provide an a!dit trail.
4rom the perspective of a +orporate, the electronic payment systems ens!re speed and
sec!rity of the transaction processing chain, from verification and a!thori.ation to
clearing and settlement. $lso it gives a great deal of freedom from more costly labor,
materials, and acco!nting services that are re(!ired in paper5based processing, better
management of cash flow, inventory, and financial planning d!e to swift bank payments.
0:

C3(''EN0ES TO COM%(NIES IN (V(I'IN0
TEC3NO'O045ORIENTED C(S3 M(N(0EMENT
SERVICES &ROM B(N)S$
a. E"ectr*ic Cmmu*icati* <ith a Ba*.$
The first challenge facing a treas!ry is how to comm!nicate electronically with a bank,
altho!gh this is often dictated by cost limitations, sec!rity concerns and the infrastr!ct!re
pec!liarities of different co!ntries. It is likely that the company itself may be lacking the
necessary e-pertise to choose an appropriate form of comm!nication where the company
needs banker&s advice.
2. Ec*mic C*si!erati*s$
+osts associated with the new services do pose a challenge to small and medi!m
companies. $ host5to5host connection is a sophisticated, direct, two5way link between the
bank&s and the c!stomer&s comp!ters, which is e-pensive to set5!p and maintain.
%owever, it is highly a!tomated and allows the corporate to !se more of the banks&
services. ,mall companies, !nfort!nately, may not be able to afford host5to5host
connection. +oncerns associated with high costs may be effectively addressed once the
Internet&s sec!rity apprehensions have been resolved.
c. Decisi*s Re#ar!i*# Surci*# / S/t<are$
The three so!rces of software applications for on5line banking and on5line cash
management in partic!lar are 7arge banks prefer to b!ild applications in5ho!se owing to
their belief that it provides them with competitive advantage Bo!ght from independent
software vendors@
0?

,.='IMIT(TIONS O& T3E SERVICES$
$ll said and done, the Internet as it operates today has its limitations as a medi!m for
banking and finance. 4or this reason, the conventional means of delivering electronic
banking services will be maintained in parallel with on5line systems at least in the
medi!m term. 'e all agree that the technology is only as good as its !nderlying
services. There is no s!ch thing as one5si.e5fits5all when it comes to electronic banking
prod!cts. "o one prod!ct can provide an absol!te sol!tion to all the c!stomers.
$n electronic banking prod!ct is a means of delivering banking services to the c!stomer
and is only as good as all the operations and processes that !nderpin those services.
1. %rvisi* / CMS 2y Ba*.s 5 Cha""e*#es a*! Issues$
The conventional formal line between treas!ry and control and between cash and
acco!nting strategies is fading. "ow, bankers and controllers are working together
closely in seeking sol!tions in the comple- cash management f!nction.
In today&s world, the key differentiator between a s!ccessf!l bank and other bank is the
stress each lays on technology. $s s!ch, let me t!rn yo!r attention to the n!mero!s
challenges bankers need to address s(!arely, while gearing !p to provide cash
management services in a technology dominated environment.
09

2. %rvisi* / Custmi>e! Services$
One important ingredient of a treas!ry system is =c!stomi.ation&. Bank&s ability to
c!stomi.e a treas!ry system is critical. The =!ser interface& is very personal and !sers
want to be comfortable with the look and feel of the system.
>eployment, config!ration and database options need to be fle-ible. "ew system
sho!ld be capable of easily getting synchroni.ed with enterprise reso!rce planning (/R#)
and other corporate systems.
,. Nee! t Cm+rehe*! the C"ie*t;s 'i*e / (ctivity$
Bankers need to really !nderstand the acco!nting and control side of its client b!siness.
The bankers sho!ld see themselves as strategic partners in company&s growth and need to
spend a lot of time learning abo!t the concerned ind!stry. ' They have to !se that
knowledge to propose sol!tions that never wo!ld have occ!rred to the client
1. %rvisi* / Other (!visry Services t C"ie*ts$
+ompanies wo!ld like to see banks solve certain other related problems.
4or instance, a company may like someone to tell it e-actly what is wrong with their
I, department. +hanging systems is a ma)or initiative with far5reaching implications to
the companies so banker cannot afford to make a mistake. $s the technology changes
almost monthly, companies do e-pect bankers to tell them what to do and where to spend
their money. Bankers cannot b!ild a standard sol!tion always, beca!se the c!stomers do
not pose standard problems
0G

8. Shi/t t -e25e*a2"e! Services$
'eb5enablement may be fashionable, b!t what treas!rers really want is the f!nctionality
in prod!cts that help them perform optimally. $fter all, the web is only a delivery
channel. ost corporate electronic banking systems c!rrently !sed are based on old
technology architect!re.
9. S+ecia" C*si!erati* t Sma"" a*! Me!ium Cm+a*ies$
'hen the corporate scene in India is dominated by a m!ltit!de of small and medi!m
companies, a legitimate (!estion that arises is, are the high5tech banking cash
management services )!st for the large companies or do they have any immediate
practical val!e for smaller companies alsoM
$ltho!gh technology and si.e may not go together banks have to cost5)!stify the cash
management services companies !se. "o do!bt, banks did invest a lot in the technology5
based services. B!t with the advent of the Internet and other tools, banks sho!ld strive to
make accessible cash management services to middle and small companies witho!t
totally phasing o!t their e-isting hardware.
08

=. Nee! t -r. as a Team$
'hen banks develop cash management sol!tions, they have to necessarily work directly
with corporate financial controllers and their staff. 'hen o!tso!rcing is involved, with
something as comple- as payables or receivables the corporate teams get bigger and
more varied. Besides financial controllers, banks have to work with systems people and
sometimes marketing people.
?. Nee! t -r. <ith Tech*"#y Ve*!rs$
$ growing n!mber of non5bank vendors also offer payment5related services to corporate
clients in 'estern co!ntries. Banks bring the strong relationships with c!stomers that
they have b!ilt over time. "o single player can do it alone in the f!t!re beca!se there are
so many dimensions to technology and different ind!stries need different sol!tions.
$lliances will have to be forged, so that vendors with different technological pieces will
work together to provide integrated sol!tions.
1A

,.?-OR)IN0 C(%IT(' &IN(NCE
ME(NIN0$
'orking +apital facility is provided to the ind!stry to finance day5to5day prod!ction O
sales. 4or prod!ctionD f!nds are generally re(!ired for p!rchase of raw materials, stores,
f!el, for payment of labor, power charges, for storing finished goods till they are sold o!t
O for financing the sales by way of s!ndry debtors C receivables.
+ash +redit facility is granted to the c!stomers to bridge working capital gap. The Bank
also provides short term loan facility for a period of !p to * year for the p!rpose of
bridging temporary cash flow mismatches arising d!e to vario!s reasons like non5
reali.ation of receivables in time, ro!tine cape- etc. The finance e-tended !nder this
category wo!ld be for meeting the f!nds re(!irements for day to day operations of the
!nits i.e., to meet rec!rring e-penses s!ch as ac(!isition of raw material, the vario!s
e-penses connected with prod!cts, conversion of raw materials into finished prod!cts,
marketing and administrative e-penses, etc.. The working capital limits wo!ld be
considered only after the pro)ect nearing completion and after ens!ring f!ll tie5!p of the
term loan re(!irements of the borrower. These limits wo!ld be either in the form of fi-ed
loans or r!nning acco!nts and C or bill financing facility.
1*

SECURIT4$
The credit facilities shall be sec!red by inventories and debtors as may be re(!ired
(!ant!m and d!ration of the credit and risk perception.
)E4 BENE&ITS$
4!nded facilities, i.e. the bank provides f!nding and assistance to act!ally p!rchase
b!siness assets or to meet b!siness e-penses. "on54!nded facilities, i.e. the bank can
iss!e letters of credit or can give a g!arantee on behalf of the c!stomer to the s!ppliers,
Iovernment >epartments for the proc!rement of goods and services on credit. It is
$vailable in both Indian as well as 4oreign c!rrency.
'IMIT(TIONS O& -OR)IN0 C(%IT(' &IN(NCE$
The working capital limits wo!ld re(!ire s!ch sec!rity and personalC third party
g!arantees as applicable to general lending norms of the bank and risk perception in
respect of individ!al borrowal acco!nt.
/ligible 'orking +apital 7imits wo!ld be assessed by adopting vario!s methods s!ch as
#ro)ected T!rnover ethod, #ermissible Bank 4inance ethod, +ash B!dget ethod
and "et Owned 4!nds ethod, depending !pon the type of borrower, the aggregate
working capital facility en)oyed from the banking system, the scale of operation, nat!re
of activityCenterprise and the d!rationC length of the prod!ction cycle, etc.
10

RBI 0UIDE'INES ON 'O(N &OR -OR)IN0 C(%IT(' %UR%OSE$
In t!ne with the Reserve Bank of India g!idelines on 7oan ,ystem for delivery of bank
+redit for working capital p!rposes to larger borrowers, the same wo!ld be e-tended in
the form of fi-ed loan (working capital >emand loan) and cash credit (r!nning acco!nt)
in the ratio of ?A@3A in respect of borrowers en)oying aggregate working capital limits of
Rs.*A crore and above from the Banking system.
The working capital demand loan facility shall be for a minim!m fi-ed term of 9 days
s!b)ect to roll over at the option of the borrower concerned
S3ORT TERM COR%OR(TE &IN(NCE MET3ODS O& 'ENDIN0$
7ike many other activities of the banks, method and (!ant!m of short5term finance that
can be granted to a corporate was mandated by the Reserve Bank of India till *883.
This control was e-ercised on the lines s!ggested by the recommendations of a st!dy
gro!p headed by ,hri #rakash Tandon. The st!dy gro!p headed by ,hri #rakash Tandon,
the then +hairman of #!n)ab "ational Bank, was constit!ted by the RBI in P!ly *893
with eminent personalities drawn from leading banks, financial instit!tions and a wide
cross5section of the Ind!stry with a view to st!dy the entire gam!t of BankLs finance for
working capital and s!ggest ways for optim!m !tili.ation of Bank credit. This was the
first elaborate attempt by the central bank to organi.e the Bank credit. The report of this
gro!p is widely known as Tandon +ommittee report. ost banks in India even today
contin!e to look at the needs of the corporates in the light of methodology recommended
11

by the Iro!p. $s per the recommendations of Tandon +ommittee, the corporates sho!ld
be disco!raged from acc!m!lating too m!ch of stocks of c!rrent assets and sho!ld move
towards very lean inventories and receivable levels. The committee even s!ggested the
ma-im!m levels of Raw aterial, ,tock5in5process and 4inished Ioods which a
corporate operating in an ind!stry sho!ld be allowed to acc!m!late.
These levels were termed as inventory and receivable norms. >epending on the si.e of
credit re(!ired, the f!nding of these c!rrent assets (working capital needs) of the
corporates co!ld be met by one of the following methods@
&IRST MET3OD O& 'ENDIN0$
Banks can work o!t the working capital gap, i.e. total c!rrent assets less c!rrent liabilities
other than bank borrowings (called a-im!m #ermissible Bank 4inance or #B4) and
finance a ma-im!m of 9: per cent of the gapD the balance to come o!t of long5term
f!nds, i.e., owned f!nds and term borrowings. This approach was considered s!itable
only for very small borrowers i.e. where the re(!irements of credit were less than Rs.*A
lacs
SECOND MET3OD O& 'ENDIN0$
Fnder this method, it was tho!ght that the borrower sho!ld provide for a minim!m of
0:B of total c!rrent assets o!t of long5term f!nds i.e., owned f!nds pl!s term
borrowings. $ certain level of credit for p!rchases and other c!rrent liabilities will be
available to f!nd the b!ild !p of c!rrent assets and the bank will provide the balance
(#B4). +onse(!ently, total c!rrent liabilities incl!sive of bank borrowings co!ld not
e-ceed 9:B of c!rrent assets. RBI stip!lated that the working capital needs of all
13

borrowers en)oying f!nd based credit facilities of more than Rs.*A lacs sho!ld be
appraised (calc!lated) !nder this method.
T3IRD MET3OD O& 'ENDIN0$
Fnder this method, the borrowerLs contrib!tion from long term f!nds will be to the
e-tent of the entire +OR/ +FRR/"T $,,/T,, which has been defined by the ,t!dy
Iro!p as representing the absol!te minim!m level of raw materials, process stock,
finished goods and stores which are in the pipeline to ens!re contin!ity of prod!ction and
a minim!m of 0:B of the balance c!rrent assets sho!ld be financed o!t of the long term
f!nds pl!s term borrowings. (This method was not accepted for implementation and
hence is of only academic interest)
1:

,.@EAIM B(N)
/-port5Import Bank of India is the premier e-port finance instit!tion of the co!ntry, set
!p in *8G0 !nder the /-port5Import Bank of India $ct *8G*. Iovernment of India
la!nched the instit!tion with a mandate, not )!st to enhance e-ports from India, b!t to
integrate the co!ntry&s foreign trade and investment with the overall economic growth.
,ince its inception, /-im Bank of India has been both a catalyst and a key player in the
promotion of cross border trade and investment. +ommencing operations as a p!rveyor
of e-port credit, like other /-port +redit $gencies in the world, /-im Bank of India has,
over the period, evolved into an instit!tion that plays a ma)or role in partnering Indian
ind!stries, partic!larly the ,mall and edi!m /nterprises, in their globalisation efforts,
thro!gh a wide range of prod!cts and services offered at all stages of the b!siness cycle,
starting from import of technology and e-port prod!ct development to e-port prod!ction,
e-port marketing, pre5shipment and post5shipment and overseas investment.
EAIM &IN(NCE )E4 BENE&ITS$
E//icie*t service t ur im+rterBex+rter c"ie*ts.
+onnectivity with the +!stoms >epartment to facilitate payment of c!stom d!ty and
receipt of d!ty draw back by the importerCe-porter clients thro!gh the electronic media.
Fnder this system of /lectronic >ata Interchange (/>I), +!stom $!thorities process the
shipping bills and also effect on line payment of d!ty drawback for e-porters.
1?

4!rther, they !ndertake processing of Bill of /ntry and deposit of c!stom d!ty for
imports.
EAC3(N0E E(RNERS &OREI0N CURRENC4 6EE&C7 DE%OSITS SC3EME$
The /-change /arners 4oreign +!rrency (//4+) >eposits ,cheme was started by RBI in
the year *880 with the introd!ction of 7iberali.ed /-change Rate anagement ,ystem.
Fnder this scheme, the recipient of inward remittances, e-porters and other eligible
bodies are allowed to keep a portion of their inward remittances C e-port proceeds in
foreign c!rrency with the banks in India which can later be !tili.edfor permissible
p!rposes.
SERVICES O&&ERED TO EA%ORTERS$
#re5shipment finance in foreign c!rrency and Indian r!pees.#ost5shipment finance in
foreign c!rrency and Indian r!pees. %andling e-port bills on collection basis.O!tward
remittances for p!rposes as permitted !nder /-change +ontrol g!idelines. Inward
remittances incl!ding advance payments. 2!oting of competitive rates for transactions.
aintenance of /-change /arners 4oreign +!rrency (//4+) acco!nts.
$ssistance in obtaining credit reports on overseas parties 4orfeiting for medi!m term
e-port receivables.
SERVICES O&&ERED TO IM%ORTERS$
/stablishment of Import 7etters of +redit covering import into India and handling of bills
!nder 7etter of +redit. %andling of import bills on collection basis. Remittance of
19

advance payment against imports. Offering !tili.ation of #+4+ ( pre5shipment credit in
foreign c!rrency) for imports.
,.1C %ROJECT &IN(NCE
ME(NIN0$
#ro)ect finance is the financing of long5term infrastr!ct!re and ind!strial pro)ects based
!pon a comple- financial str!ct!re where pro)ect debt and e(!ity are !sed to finance the
pro)ect. Fs!ally, a pro)ect financing scheme involves a n!mber of e(!ity investors,
known as sponsors, as well as a syndicate of banks which provide loans to the operation.
The loans are most commonly non5reco!rse loans, which are sec!red by the pro)ect itself
and paid entirely from its cash flow, rather than from the general assets or
creditworthiness of the pro)ect sponsors, a decision in part s!pported by financial
modeling. The financing is typically sec!red by all of the pro)ect assets, incl!ding the
reven!e5prod!cing contracts.
#ro)ect lenders are given a lien on all of these assets, and are able to ass!me control of a
pro)ect if the pro)ect company has diffic!lties complying with the loan terms.
SE'ECTION O& ( %ROJECT B4 B(N)$
The proposals for pro)ect finance wo!ld be considered by the bank on a selective basis
in view of the larger o!tlay of f!nds an longer d!ration of credit which may have an
adverse impact on bankLs $sset57iability anagement system and strain on its li(!idity.
Fs!ally s!ch pro)ects wo!ld be operationalised thro!gh consorti!m arrangement along
1G

with the Term 7ending 4inancial Instit!tions and other p!blicC private sector Banks. The
pro)ect wo!ld be appraised by the 7ead Bank of the consorti!m and all other banks
wo!ld accept the appraisal made by the lead bank. Before e-tending finance for #ro)ects,
the economic feasibility and financial viability of the pro)ect in relation to the macro
economic conditions prevailing at the time of concept!ali.ation of the pro)ect and also
the likely scenario that may prevail d!ring the normal life span of the pro)ect sho!ld be
established.
The pro)ect sho!ld be able to withstand reasonable levels of variation in cr!cial
parameters which sho!ld be established by sensitivity analysis of the cash flows.
The means of finance for the pro)ect along with provisions to meet contingencies s!ch as
costC time overr!n sho!ld be established. The entire so!rce of f!nds for the pro)ect from
so!rces other than that by the promoters shall be f!lly tied5!p before sanctionC
disb!rsement of the limits.
'herever the pro)ect is one of !n!s!ally longer d!ration s!ch as infrastr!ct!re
development, the involvement of agencies s!ch as 4inancial Instit!tions and ways of
red!cing the blockage of bankLs f!nd that are so!rced mainly o!t of short term lending
instit!tions, take5o!t financing, sec!riti.ation, Inter5Bank participation +ertificates, etc.
wo!ld be resorted to.
The disb!rsements !nder pro)ect 4inance wo!ld be made strictly in t!ne with the
sanction terms, only after ens!ring the end !se of f!nds already disb!rsed by the
consorti!m, meeting the re(!ired margin at each stage of pro)ect implementation and
certification by the competent cons!ltantsC specialists as per the proced!re in vog!e from
time to time and as decided by the consorti!m.
18

R(TE O& INTEREST$
The rate of interest on s!ch credit facilities wo!ld be determined based on the borrower
gradation and the interest rate policy of the bank from time to time.
SECURIT4$
The credit facilities shall be sec!red by tangible assets and collaterals as may be re(!ired
based on the nat!re of pro)ect, (!ant!m and d!ration of the credit, anticipated ret!rn on
investment and risk perception.
3A

ST(TE B(N) O& INDI(
COR%OR(TE B(N)IN0 O& ST(TE B(N) O& INDI(
INTRODUCTION$
,tate Bank of India (,BI) is the largest bank in India. It is also, meas!red by the n!mber
of branch offices and employees, the largest bank in the world. /stablished in *GA? as
Bank of Bengal, it remains the oldest commercial bank in the Indian ,!bcontinent. It
provides a range of banking prod!cts thro!gh its vast network in India and overseas,
incl!ding prod!cts aimed at "RIs. 'ith an asset base of K*0? billion and its reach, it is a
3*

regional banking behemoth. The Iovernment of India nationali.ed ,BI in *8:: with the
Reserve Bank of India having a ?AB stake. ,BI has laid emphasis on red!cing the h!ge
manpower thro!gh Iolden handshake schemes and comp!teri.ing its operations.
BO(RD O& DIRECTORS
'ist / Directrs * the Ce*tra" Bar! / State Ba*. / I*!ia 6(s * 1th (u#ust
2C117
,r.
"o.
"ame >esignation Fnder ,ection of ,BI
$ct *8::
* ,hri #ratip +ha!dh!ri +hairman *8 (a)
0 ,hri %emant I. +ontractor anaging >irector *8 (b)
1 ,hri >iwakar I!pta anaging >irector *8 (b)
3 ,hri $. 6rishna 6!mar anaging >irector *8 (b)
: ,hri >ileep +. +hoksi >irector *8 (c)
? ,hri ,. Jenkatachalam >irector *8 (c)
9 ,hri >. ,!ndaram >irector *8 (c)
G ,hri #arthasarathy Iyengar >irector *8 (c)
8 ,hri I. >. "adaf Officer /mployee >irector *8 (cb)
30

*A >r. Ra)iv 6!mar >irector *8 (d)
TR(NS&ORM(TION JOURNE4 IN ST(TE B(N) O& INDI(
The ,tate Bank of India, the co!ntry&s oldest Bank and a premier in terms of balance
sheet si.e, n!mber of branches, market capitali.ation and profits is today going thro!gh a
momento!s phase of +hange and Transformation Q the two h!ndred year old #!blic
sector behemoth is today stirring o!t of its #!blic ,ector legacy and moving with an
ability to give the #rivate and 4oreign Banks a r!n for their money.
The bank is entering into many new b!sinesses with strategic tie !ps Q #ension 4!nds,
Ieneral Ins!rance, +!stodial ,ervices, #rivate /(!ity, obile Banking, #oint of ,ale
erchant $c(!isition, $dvisory ,ervices, str!ct!red prod!cts etc Q each one of these
initiatives having a h!ge potential for growth.
The Bank is forging ahead with c!tting edge technology and innovative new banking
models, to e-pand its R!ral Banking base, looking at the vast !ntapped potential in the
hinterland and proposes to cover *AA,AAA villages in the ne-t two years.
It is also foc!sing at the top end of the market, on whole sale banking capabilities to
provide India&s growing mid C large +orporate with a complete array of prod!cts and
services. It is consolidating its global treas!ry operations and entering into str!ct!red
prod!cts and derivative instr!ments. Today, the Bank is the largest provider of
31

infrastr!ct!re debt and the largest arranger of e-ternal commercial borrowings in the
co!ntry. It is the only Indian bank to feat!re in the 4ort!ne :AA list.
The Bank is changing o!tdated front and back end processes to modern c!stomer friendly
processes to help improve the total c!stomer e-perience. 'ith abo!t G:AA of its own
*AAAA branches and another :*AA branches of its $ssociate Banks already networked,
today it offers the largest banking network to the Indian c!stomer. The Bank is also in the
process of providing complete payment sol!tion to its clientele with its over 0*AAA
$Ts, and other electronic channels s!ch as Internet banking, debit cards, mobile
banking, etc.
'ith fo!r national level $pe- Training +olleges and :3 learning +enters spread all over
the co!ntry the Bank is contin!o!sly engaged in skill enhancement of its employees.
,ome of the training programs are attended by bankers from banks in other co!ntries.
The bank is also looking at opport!nities to grow in si.e in India as well as
internationally. It presently has G0 foreign offices in 10 co!ntries across the globe. It has
also 9 ,!bsidiaries in India Q ,BI +apital arkets, ,BI+$# ,ec!rities, ,BI >4%I, ,BI
4actors, ,BI 7ife and ,BI +ards 5 forming a formidable gro!p in the Indian Banking
scenario. It is in the process of raising capital for its growth and also consolidating its
vario!s holdings.
Thro!gho!t all this change, the Bank is also attempting to change old mindsets, attit!des
and take all employees together on this e-citing road to Transformation. In a recently
concl!ded mass internal comm!nication programme termed =#arivartan& the Bank rolled
o!t over 11AA two day workshops across the co!ntry and covered over *1A,AAA
employees in a period of *AA days !sing abo!t 3AA Trainers, to drive home the message
of +hange and incl!siveness. The workshops fired the imagination of the employees with
some other banks in India as well as other #!blic ,ector Organi.ations seeking to
em!late the programme.
33

EVO'UTION O& SBI
The origin of the ,tate Bank of India goes back to the first decade of the nineteenth
cent!ry with the establishment of the Bank of +alc!tta in +alc!tta on 0 P!ne *GA?. Three
years later the bank received its charter and was re5designed as the Bank of Bengal (0
Pan!ary *GA8). $ !ni(!e instit!tion, it was the first )oint5stock bank of British India
sponsored by the Iovernment of Bengal. The Bank of Bombay (*: $pril *G3A) and the
Bank of adras (* P!ly *G31) followed the Bank of Bengal. These three banks remained
at the ape- of modern banking in India till their amalgamation as the Imperial Bank of
India on 09 Pan!ary *80*.
#rimarily $nglo5Indian creations, the three presidency banks came into e-istence either
as a res!lt of the comp!lsions of imperial finance or by the felt needs of local /!ropean
commerce and were not imposed from o!tside in an arbitrary manner to modernise
IndiaLs economy. Their evol!tion was, however, shaped by ideas c!lled from similar
developments in /!rope and /ngland, and was infl!enced by changes occ!rring in the
str!ct!re of both the local trading environment and those in the relations of the Indian
economy to the economy of /!rope and the global economic framework.
3:

COR%OR(TE B(N)IN0
,BI is a one shop providing financial prod!cts C services of a wide range for large,
medi!m and small c!stomers both domestic and international.
The ,BI&s powerf!l corporate banking formation deploys m!ltiple channels to deliver
integrated sol!tions for all financial challenges faced by the corporate !niverse. The
+orporate Banking Iro!p and the "ational Banking Iro!p are the primary delivery
channels for corporate banking prod!cts.
The +orporate Banking Iro!p consists of dedicated ,trategic B!siness Fnits that cater
e-cl!sively to specific client gro!ps or speciali.e in partic!lar prod!ct cl!sters. 4oremost
among these speciali.ed gro!ps are the +orporate $cco!nts Iro!p (+$I), foc!sing on
the prime corporate and instit!tional clients of the co!ntry&s biggest b!siness centers. The
others are the #ro)ect 4inance !nit and the 7easing !nit.
The "ational Banking Iro!p also delivers the entire spectr!m of corporate banking
prod!cts to other corporate clients, on a nationwide platform.
3?

COR%OR(TE (CCOUNTS 0ROU% 6C(07
C(0 5 ( +er/ect strate#ic /it
Mar.et "ea!er ima#e 
&cusse! atte*ti* 
&"exi2"e D Custmer 5 /rie*!"y cre!it +"icies 
Structure! %r!ucts 5 &u*! 2ase! D /ee 2ase! 
Time"yE cm+rehe*sive a*! assure! !e"ivery 
Cm+etitive +rici*# 
3i#h"y s.i""e! cre!it ex+ertise 
C(0 5 SBIFs %ractive res+*se t emer#i*# mar.et *ee!s
+$I is ,trategic B!siness Fnit of ,BI, set !p e-cl!sively to cater to the specialised
banking needs of top corporate clients of the co!ntry. It was the direct o!tcome of ,BILs
str!ct!ral reorgani.ation in the light of >ereg!lation, Ilobali.ation O 7iberali.ation of
the Banking Ind!stry. +reated in the year *88:, +$ILsLL mission is to@
4oc!s on top corporate clients 
/stablish itself as the most professional o!tfit of its kind in the  co!ntry
Render world class and cost effective financial services 
39

/volve new prod!cts on a s!stained basis5c!stomi.ed to the  changing needs of the
corporate
,tay ahead of competitors 
C(0 5 ( Sym2" / exce""e*ce
2!ality Relationship Banking /-cl!sive, highly skilled Relationship teams of 
dynamic and motivated personnel, each attending to a select gro!p of top +orporate
providing a one5stop5shop for financial services presently at !mbai, "ew >elhi,
+alc!tta, +hennai and $hmedabad.
>elivered +redit process 
Only two stage credit process consisting of appraisal and assessment by the Relationship
team and sanction by the +redit +ommitteeC+entral Board, leading to (!ickest response
time in the ind!stry.
Offer of wider and sophisticated prod!cts $part from a variety of core credit prod!cts 
incl!ding str!ct!red finance and m!lti5p!rpose short term corporate loan, +$I offers an
array of c!stomer specific prod!cts like +ash anagement #rod!ct, Treas!ry O 4ore-
prod!cts and erchant Banking prod!cts in association with ,BI +apital arkets 7td.,
,BI Iilts 7td. and other s!bsidiaries of ,BI.
+$I 5 One point contact $cco!nt anagement Teams will aid yo! in sec!ring any
prod!ct from any of o!r vario!s associates and s!bsidiaries as listed below
4or leasing re(!irements thro!gh o!r 7easing ,BF
7arge ,cale #ro)ect 4inance thro!gh #4 ,BF
+apital arket Re(!irements thro!gh ,BI+$#,
3G

CORE CREDIT %RODUCTS
#!rposeType of 7oan #ricing
R!pee
7oans
'orking +apital +ash +redit facility Based on credit risk rating of the
+ompany designed on the lines of
internationally accepted models,
ranging from o!r #rime 7ending
Rate(#7R) !pwards.
#ro)ect O +ape-
loans
edi!m Term 7oans :59
years or longer in
e-ceptional cases
,ame as above 5 edi!m Term
7ending Rate (T7R)!pwards.
/-port +redits #acking +redit,
#ostshipment , 4orfaiting
RBI >efined 7IBOR linked and
arket >etermined
4oreign
+!rrency
7oans
#ro)ects O
'ork. +ap
/-ternal +ommercial
Borrowings(/+Bs) which
incl!de ,yndicated loans,
,tand5alone
loans,B!yersL+redit and
,ellerLs +redit, Bilateral
loans in all ma)or
c!rrencies.
7IBOR linked
38

OT3ER STRUCTURED %RODUCTS
TR(DE &IN(NCES
:A
#!rpose #ricing
,hort Term +orporate 7oans 4or ,horing !p "et 'orking +apital,
Ongoing capital e-pendit!re,
Repayment of high cost debt, RO>
e-pendit!re, implementation of JR,
Based on the +redit
risk rating 5
7inked to o!r #7R
,ec!ritised loans5 in
association with ,BI+$#
Fpfronting of ass!red cash flow
emanating from f!t!re receivables vi..
rentals, Royalties, debtors, 7ease
rentals etc.
Based on risk rating
+hannel 4inancing5 in
association with other ,BI
branches
4inancing of downstream marketing
channels
Based on the +redit
risk rating 5 7inked to
o!r #7R
4ee Based #rod!cts 5 like
7etter of +redits(7+s),
I!arantees, >efferred
#ayment I!arantees(>#Is)
and 7etter of +omfort
4or import of goods incl!ding capital
goods participation in international
bids, performance g!arantees etc.
7arge val!e b!siness 5
negotiable.

 Iss!ance and advising of >omestic and 4oreign 7etters of +redit.
 +onfirmation of /-port 7etter of +redit.
 Iss!ance of I!arantees on behalf of >omestic +!stomers
 In favo!r of >omestic Beneficiaries and
 4oreign Beneficiaries.
 Iss!ance of g!arantees on behalf of foreign correspondent banks to beneficiary in
India.
 >eferred #ayment I!arantees.
 >omestic and 4oreign Bills disco!nting.
 ,'I4T Interface.
 (e5Trade ,BI) 4ront5end interface (Internet Based) at the c!stomer place.
 To iss!e 7etter of +redit and handle related bill transactions
 To iss!e Bank I!arantee
 To send advice on 7etters of +redit received from others
 To lodge /-port +ollection Bills
 To en(!ire stat!s of Trade 4inance transactions
 4or negotiation of bills and track negotiated bills
 4or $dvance against /-port Bills on +ollection
:*

 4or 7odge of Bills where 4!ll $dvance #ayment has been received
 >elivery #latforms at all ? +$I branches having speciali.ation to provide Trade
4inance ,ervices, adhering to ,i- ,igma principles.
 'hile ,BI is the most widely accepted Indian Bank across the world with
correspondent relationship e-tending to a spectr!m of international banks n!mbering G9?
at present o!r 7+s, I!arantees and >#Is are iss!ed at the most competitive rates.
 ,BI is the only Indian Bank whose g!arantee is accepted by most of the /-port
+redit $gencies globally witho!t seeking confirmation.
 ,BILs +lean O >oc!mentary +ollections are made at most competitive rates
thro!gh o!r Ilobal 7ink ,ervices.
 'e also provide trade related information to Indian corporates, their overseas
partnersCb!yers thro!gh o!r foreign offices.
%RODUCTS (ND SERVICES
:0

,BI O44/R,@5
-r.i*# ca+ita" /i*a*ci*#
$ssistance e-tended both as 4!nd based and "on54!nd based facilities to 
+orporates , #artnership firms , #roprietary concerns
'orking +apital finance e-tended to all segments of ind!stries and services sector 
s!ch as IT
Term 'a*s
To s!pport capital e-pendit!res for setting !p new vent!res as also for e-pansion,
renovation etc.
'ease &i*a*ce
$n e-cl!sive !nit providing one s shopping to +orporates 
$ dedicated set !p specialised in financing of infrastr!ct!re and other large pro)ects 
/-cl!sive set !p for handling large ticket leases. 
,BILs #rime 7ending Rates (#7R) are among the lowest 
#resently Bank has two #7RLs 
,B$R for loans payable on demand and !pto one year 
,BT7R for loans payable beyond one year 
:1

R2 Si"ic* %rivate 'imite!
Cr+rate Overvie<
Robo ,ilicon #rivate 7imited commenced operations in the year 0AA* and is
head(!artered in %yderabad, $ndhra #radesh, India.
Robo ,ilicon, for the first time in India, introd!ced ;man!fact!red sand<. It not only is
the perfect s!bstit!te to the precio!s and fast depleting nat!ral reso!rce 5 river sand, b!t
is also a viable, cost5effective and eco5friendly prod!ct. In a very short
span, Robo,and has earned the respect and patronage of leading Ind!stry, real estate and
constr!ction giants in the co!ntry. %aving weathered initial resistance Q a fate common
to every innovative idea in a change5resisting environment, Robo,andR has (!ickly
fo!nd acceptance and is today preferred by all (!ality5conscio!s constr!ction ind!stry
leaders. The pillars of faith stand firmly on Robo,andR beca!se it protects the
environment, promotes ethical and legal constr!ction activities and also eliminates the
many disadvantages of !sing river sand for p!rposes of constr!ction. $dditionally,
!sing Robo,andR in concrete and masonry res!lts in the s!bstantial saving of cement,
th!s slashing constr!ction costs considerably.
:3

Robo ,ilicon began operations in 0AA* by setting !p a cr!shing plant and (!arry in
%yderabad to s!pply man!fact!red sand to the constr!ction ind!stry. Robo was the first
in the co!ntry to introd!ce the concept of man!fact!red sand. /-tensive marketing
efforts co!pled with the consistent s!pply made ;Robosand< a generic name for
man!fact!red sand in the constr!ction ind!stry. $t the time of ac(!isition, Robo ,ilicon
had : (!arries.
'ith IJ4$, Robo has been rapidly e-panding across India to locations s!ch as Ji.ag,
>elhi, Bengal!r!, Pamnagar, #!ne, angalore and >avanagere and is c!rrently the
largest organi.ed player in the stone aggregates ind!stry in India. Robo ,ilicon has
s!ccessf!lly attracted high (!ality talent and b!ilt a deep management team. It is in the
process of in)ecting state5of5the5art mining technologies O processes, which will meet
global standards for safety and environment protection.
Robo ,ilicon now has a range of constr!ction materials that are collectively referred to
asRobo$ggregates 5 fine and coarse aggregates that confirm to I, 1G1 specifications.
$ggregates are a component of composite materials s!ch as concrete and asphalt
concrete. It is a proven fact that fine and coarse aggregates play a key role when
combined with cement in concrete and asphalt (bit!men) for road works. $ggregates are
also !sed as base material !nder fo!ndations, roads, and railroads. To p!t it differently,
aggregates are !sed as a stable fo!ndation or roadCrail base with predictable, !niform
properties (e.g. to help prevent differential settling !nder the road or b!ilding), or as a
vital e-tender that binds with more e-pensive cement.
Identifying a need for Brick and #laster work, Robo ,ilicon is pro!d to
introd!ce Robo#last5 a blend of specific fine aggregates in A50mm. Robo#last provides
complete masonry sol!tions at site and improves workability. It is a ready5to5!se prod!ct
that eliminates the sieving process at site thereby saving yo! precio!s time.
::

I*vestr %r/i"e
I*!ia Va"ue &u*!
India Jal!e 4!nd (LIJ4L) is a premier private e(!ity investment f!nd. It has in e-cess of
F, K * Billion (R!pees 3A billion) !nder management committed by high (!ality Indian
and international instit!tional investors and family offices. IJ4 makes available financial
and intellect!al capital to growing middle5market companies in India.
IJ4 has invested in promising companies, partnered progress, and has seen s!ccessf!l
e-its. In each pr!dently selected investment, IJ4 developed resilient partnerships with
management teams based on m!t!al respect, integrity, and transparency. This, along with
an ability to deliver appropriate s!pport in b!ilding b!sinesses has created great val!e for
all stakeholders.
IJ4 investments incl!de a diverse range of ind!stries s!ch as healthcare, retailing,
o!tso!rced services, media O entertainment and precision engineering.
Ma*u/acture! Sa*! 5 ( %ers+ective
/vol!tion of 4ine $ggregate Ind!stry in India
The attempts to prod!ce cr!shed or man!fact!red sand in India co!ld be traced to early
:ALs primarily in ma)or dam works. The foc!s was on !sing different si.e red!ction
techni(!es with available reso!rces like rod mills, roller 5cr!shers, and cone cr!shers.
The absence of research in the rep!ted +ivil /ngineering Instit!tions abo!t man!fact!red
sand aided a lot of !nscr!p!lo!s (!arry operators to perpet!ate the myth that (!arry d!st
can be !sed in prod!ction of concrete either by complete or partial replacement of river
sand.
:?

/arly so!rces of fine O coarse aggregates (0Amm and *Amm)@
The river sand, pebbles and gravel so!rced from river beds were !sed as fine and
coarse aggregates.
The ins!fficient (!antities and inconsistent (!ality forced the constr!ction ind!stry to
e-plore the possibility of si.ing down the locally available rock formations !sing the
cr!shers to prod!ce coarse aggregates of 0Amm and *Amm.
The type of machinery !sed was single stage cr!shers and later !pgraded to two stage
cr!shers.
The waste prod!ct generated in the process is (!arry d!st which was being given free
in the early days is being offered today as a replacement for river sand.
Emer#e*ce / Ma*u/acture! Sa*!
The progress in the b!ilding material research and identification of role of particle shape
and gradation of fine aggregates triggered the !se of man!fact!red sand in the prod!ction
of concrete. The comple-ity of constr!ction and !se of high strength concrete in large
n!mber of b!ildings is the prime mover along with the scarcity of river sand in many
cities.
Tech*ica" %ers+ective
The !se of man!fact!red sand as a replacement for river sand is increasing with the ban
on sand mining implemented by different states. The other factors are the general decline
:9

in the availability of river sand and press!re from active environmental gro!ps to protect
the nat!re.
Ur2a* #r<th$
The phenomenal rise in the constr!ction activity in the last decade has contrib!ted to the
wide gap between the s!pply and demand of river sand. $ lot of damage has been ca!sed
to the eco5systems by carrying o!t dredging operations on the sand beds leading to the
depletion of gro!nd water levels in the co!ntry.
R"e / /i*e a##re#ates i* c*crete$
It is accepted fact that sand plays a very important role in the prod!ction of concrete. The
feat!res of workability, strength and d!rability are directly dependent on the properties of
the sand !sed in the making of concrete.
C*ce+t / ma*u/acture! sa*!$
$ccording to ind!stry reports there is a ma)or shift in the mindset of the +onstr!ction
Ind!stry towards e-ploring s!bstit!tes for river sand. $cross the 'orld there is growing
s!pport for the increased !se of man!fact!red sand !sed in the prod!ction of concrete.
The properties of particle shape, consistent gradation and .ero imp!rities are the reason
for the preference by str!ct!ral cons!ltants and concrete technologists. The imperative
need for clean sand, eliminating the constraints of river sand like availability, price
fl!ct!ation etc, have made man!fact!red sand the perfect s!bstit!te for river sand.
Ma*u/acturi*# +rcess a*! its sta*!ar!s$
The sand is man!fact!red in a three stage cr!shing process. The raw material is either
granite or basalt rock. The J,I which is also referred as sand making machine is in the
Tertiary ,tage. The process adopted is similar to the river sand generation by nat!re. The
:G

J,I applies the principle of rock on rock collision at a high velocity shaping the sand
particles.
The plant works on the principle of contin!o!s feed in closed circ!it and adopts the
techni(!e synonymo!s and comparable to nat!reLs prod!ction of river sand. The
complete man!fact!ring process takes min!tes when compared to the nat!re which
happens over millions of years.
The prod!ct is prod!ced to I, 1G1 standards.
%rcess
O!r (!arrying process typically begins with drilling and blasting the rock into smaller
pieces. Bore holes are drilled in the blast site and filled with e-plosives. The blast breaks
!p the rock into smaller pieces that are loaded and ha!led to the plant.
The plant consists of three circ!its namely #rimary circ!it, ,econdary circ!it and Tertiary
circ!it wherein a three5stage cr!shing takes place. $ :AA mm down si.e granite rock that
is bro!ght from the (!arry via operations which involve (deleted =involves&) drilling,
blasting, segregation, secondary breaking and transportation to the plant, is fed into to the
#rimary +irc!it consisting of one Paw +r!sher that si.es down this granite rock to
prod!ce *:Amm down si.e aggregate. This *:A mm down si.e rock is fed into the
,econdary +irc!it consisting of one +one +r!sher to prod!ce a 3A mm down si.e
aggregate which in t!rn is fed into the Tertiary +irc!it consisting one Jertical ,haft
Impactor that prod!ces ,and and $ggregate of the re(!ired Iradation O ,hape.
The installed capacity of the plant is 0AA T#% (TonsC%r.) of Robo,and and Robo shaped
$ggregate of 0A mm O *A mm si.e.
:8

%"a*t D Machi*ery

The river sand, pebbles and gravel so!rced from river beds were !sed as fine and coarse
aggregates.
The plant works on the principle of contin!o!s feed in closed circ!it
River sand is prod!ced by flowing of stones in big floods from mo!ntains to streams to
big rivers by the coll!sion of rock5on5rock thereby forming a mechanism of impact5
clearage5attrition5abrasion by which h!ge deposits are created
The Jertical ,haft Impactor applies a similar principle of rock5on5rock coll!sion for
cr!shing
The Barmac Rock5on5Rock Impactor !ses a feild proven rock lined rotor that acts as
velocity stone h!rling a contin!o!s rock stream into a tightly packed rock lined cr!shing
chamber
?A

The rotor contin!o!sly discharges energi.ed stone particles into a highly t!rb!lent
particle clo!d contained within the cr!shing chamber where red!ction occ!rs primarily
by Rock5on5Rock impact, attrition and abrasion
Th!s the process is very synonymo!s to nat!res process of creating san
Gua"ity Testi*#
The ,ieve $nalysis tests are cond!cted on Robo,andR 0Amm and *Amm everyday on
samples collected from conveyor belts, stock piles and loaded tr!cks
?*

The following e(!ipment is re(!ired and is available at all o!r plants
 Sieves / !i//ere*t si>es
 Sieve Sha.er
 Ove*
 Sam+"i*# C*es
$ll o!r sales officers are alos trained to carry o!t these tests at c!stomer locations
The Jertical ,haft Impactor applies a similar principle of rock5on5rock coll!sion for
cr!shing
The sand is classified into fo!r .ones as per I, 1G1 norms
?0

%"a*t 'cati*s
?1

GUESTION(IRE &OR T3E B(N)S 6&EDER(' B(N)7
INTERVIE-ER$ MR5 JOSE
1.-hat are the !i//ere*t +r!ucts a*! services //ere! u*!er cr+rate 2uyi*# 2y
yur 2a*.sH
$ns@
4F"> B$,/> "O" 4F"> B$,/>
*.T/R 7O$" *. 7/TT/R O4 +R/>IT
0.'OR6"I +$#IT$7 0. B$"6 IF$R$"T//
2.-hat is the /eesB*terest char#e! 2y the 2a*. /r the services //ere! 2y the 2a*.H
$ns@
4//, I"T/R/,T
*.#RO+/,,"I 4//, *.+F,TO/R R$TI"I
0.7/I$7 4//,
1.$>I"I,TR$TIJ/ 4//,
,.'ist the custmers that the 2a*. caters tH
?3

$ns@
*.T$T$ IROF#
0.BOB$S ,TO+6 /T+%$"I/
1.+I$7 Q +O+%I" "T/R"$TIO"$7 $IR#ORT 7IIT/>
1.-h is the 2i##est c"ie*t / the 2a*.H
$ns@$IR I">I$ $"> R/7I$"+/.
8.3< ma*y em+"yers are <r.i*# i* this !e+artme*tH
$ns@
"FB/R O4
/#7OS//,
TOT$7 "FB/R O4
$7/,
TOT$7 "FB/R O4
4/$7/,
?A 3: *:
9.-hat is the aca!emic 2ac.#ru*! / the sta// /rm the cr+rate 2a*.i*#
!e+artme*tH
$ns@
?:

>/,II"$TIO" O4 T%/ /#7OS//, $+$>/I+ B$+6IROF">
I>>7/ 7/J/7 $"$I/R,, B.T/+%UB$ OR +$ OR I+'$
+hanges in the rate of interest C fiscal policy monetary policy.
+ompetition from other bank.
$sset liability mismatch.
=.-h is the cr+rate 2a*.i*# !e+artme*t hea!H
$ns@>I(>/#FTS I/"/R$7 $"$I/R) BR$"+% %/$>.
?. -hat is the heirecy / the cr+rate 2a*.i*# !e+artme*tH
$ns@
??

• /T/+FTIJ/ >IR/+TOR (J/RTI+$7 %/$> i.e +I)
• I/"/R$7 $"$I/R( R/IIO"$7 %/$>)
• >/#FTS I/"/R$7 $"$I/R %/$> (BR$"+% $"$I/R)
• $,,I,T$"T I/"/R$7 $"$I/R
• $,,I,T$"T $"$I/R >/#FTS I/"/R$7 $"$I/R %/$> (BR$"+%
$"$I/R)
@.Si*ce <he* is the 2a*. +rvi!i*# these cr+rate 2a*.i*# servicesH
$ns@ 4or the last 10years
1C.<hat are the +r2"ems /ace! 2y the 2a*.H
$ns@ "onperforming assets
GUESTION(IRE &OR B(N)S 6SBI7
?9

1.-hat are the !i//ere*t +r!ucts a*! services //ere! u*!er cr+rate 2uyi*# 2y
yur 2a*.sH
$ns
4F"> B$,/> "O" 4F"> B$,/>
*.T/R 7O$" *.7/TT/R O4 +R/>IT
0.+OR#OR$T/ 7O$" 0.B$"6 IF$R"T//
1.+$,% +R/>IT 1.TR/$,FRS #RO>F+T,
3.'OR6I"I +$#IT$7 >/$">
7O$",
3.+$,% $"$I//"T ,S,T/,
:.BI77 4I"$"+/ :.T$T$TIO" #$S/"T,C 4R$"6"I
O4 ,T$#,
2. -hat is the /eeB i*terest char#e! 2y the 2a*. /r the services //ere! 2y the
2a*.H
$ns@
?G

+OR#OR$T/ B$"6I"I ,/RJI+/,
O44/R/>
4// R$T/, $"> I"T/R/,T
+%$RI/>
*.$>J$"+/, (7O"I T/R) B#7R p.a
0.$>J$"+/, (,%ORT T/R) ,T7 R$T/, $##7I+$B7/ TI/ TO
TI/
7C+ +OI,IO" I" T%/ R$"I/ O4 *Bp.a
BI +OI,IO" I" T%/ R$"I/ O4 *Bp.a
?8

,.'ist the custmers that 2a*. catersH
$ns@
R/7I$"+/ I">F,TRI/, JJ4 ">F,TRI/, 7T>
$IR ">I$ PB4 ">F,TRI/, 7IT/>
P/T $R7"/, 7IIT/> 1* I"4OT/+% 7IIT/>
BOB$S >S/I"I
T$T$ T/7/+O
R/7I$"+/ +OF"I+$TIO"
TOT(' 11C C'IENTS
9A

1.-h is the 2i##est c"ie*t / the 2a*.H
$ns@ $IR I">I$ $"> R/7I$"+/.
8.3< ma*y em+"yers are <r.i*# i* this !e+artme*tH
$ns@
"FB/R O4
/#7OS//,
TOT$7 "FB/R O4
$7/,
TOT$7 "FB/R O4
4/$7/,
?A 3: *:
9.-hat is the aca!emic 2ac.#ru*! / the sta// /rm the cr+rate 2a*.i*#
!e+artme*tM
$ns@
>/,II"$TIO" O4 T%/ /#7OS//, $+$>/I+ B$+6IROF">
I>>7/ 7/J/7 $"$I/R,, B.T/+%UB$ OR +$ OR I+'$
9*

=.-h is the cr+rate 2a*.i*# !e+artme*t hea!H
$ns@>I(>/#FTS I/"/R$7 $"$I/R) BR$"+% %/$>.
?.-hat is the heirecy / the cr+rate 2a*.i*# !e+artme*tH
$ns@
/T/+FTIJ/ >IR/+TOR (IROF# %/$>)
/T/+FTIJ/ >IR/+TOR (J/RTI+$7 %/$> i.e +I)
I/"/R$7 $"$I/R( R/IIO"$7 %/$>)
>/#FTS I/"/R$7 $"$I/R %/$> (BR$"+% $"$I/R)
$,,I,T$"T I/"/R$7 $"$I/R
$"$I/R
$,,I,T$"T $"$I/R
90

J/RTI+7/ %/$>
*.I> +OR#OR$T/
0.7$RI/ +OR#OR$T/ IROF#
1.I"4R$,TRF+TFR/ IROF#
@.Si*ce <he* is the 2a*. +rvi!i*# these cr+rate 2a*.i*# servicesH
$ns@4or the last 10years
1C.<hat are the +r2"ems /ace! 2y the 2a*.H
$ns@ "on performing assets
+hanges in the rate of interest C fiscal policy monetary policy.
+ompetition from other bank.
$sset liability mismatch.
91

GUESTION(IRE &OR T3E COR%OR(TES 6ROBO
SI'ICION7
1.'ist the 2a*. /rm <he* the cm+a*y avai"s cr+rate 2a*.i*# servicesH
$ns@
"$/ O4 T%/ B$"6, ,/RJI+/, $J$I7/>
,BI 7O$",
I+I+I BRI>I/ 4I"$"+/
I">I$" OJ/R,/$, B$"6 I,,F/ O4 >/BT 4F">,
+ITI B$"6 4OR/T TR$",$+TIO",
2. -hat are the /eesBi*terest char#e! 2y the 2a*. /r the services +rvi!e! 2y
themH
93

$ns@
+OR#OR$T/ B$"6I"I ,/RJI+/, 4//, I"T/R/,T +%$RI/>
4F"> B$,/>
*.RF#// #7R5*AAbps.
0.4OR/II" +FRR/"+S
1./T#ORT RBI "OR, "/IOTI$T/> O" +$,/
TO +$,/ B$", I,
3.OT%/R ::B+O"+/,,IO" TO "OR$7
,/RJI+/, +%$RI/,
:.7/TT/R O4 +R/>ITCB$"6
IF$R$"T//
,.-hat are the measure ta.e* t c*tr" the 2a*. char#eBcmmissi* 2r*e 2y the
cm+a*yH
$ns@ inim!m !sage of 7+ ro!te large vol!me of transation timely retirement of
obligations.
9:

1.-hat are the *e#tiati*s tactics use! 2y the cm+a*y t 2tai* maximum
uti"isati* / 2a*. /aci"itiesH.
$ns@ 'e offer vol!me b!siness which works as a sweeter to the banks.
8. 'ist the 2e*e/its #ive* 2y the 2a*.sH
$ns@
4F"> B/"/4IT, "O"54F">/> B/"/4IT,
7+ $"> BI $T ::B +O"+/,,IO"
9. -hich 2a*. ! yu <ish t !ea" <ithH
$ns@ *."ationalised banks @5
0. #rivate sector banks@5
9?

Reason if so V
9. -hich !e+artme*t !eci!es * the 2a*. <ith <hich the !ea"i*#s have t 2e !*eH
$ns@ 4inance department in cons!ltation with the board of directors
G. 3< /reIue*t"y ! yu visit yur c*cere! re"ati*shi+ ma*a#erH
$ns D$lmost every day or on the time of the calls.
8.-hat are the +r2"ems /ace! <ith res+ect t the services +rvi!e! 2y the 2a*.H
$ns@ 7ack of transparency and rigidity in the services
*A. Su##esti*sBRecmme*!ati*s /r the 2a*.H
$ns@ "o s!ggestions.
GUESTION(IRE &OR T3E COR%OR(TES 63% %(NVE' INDUSTRIES7
*. 'ist the 2a*. /rm <he* the cm+a*y avai"s cr+rate 2a*.i*# servicesH
$ns@
99

"$/ O4 T%/ B$"6, ,/RJI+/, $J$I7/>
F"IO" B$"6 >$S TO >$S +OR#OR$T/
TR$",$+TIO",
I>BI B$"6 I">F,TRS 4I"$"+I"I
,OFT% I">I$" B$"6 $FTO$T/> #$S/"T,
/TI B$"6 7+ $"> BI
0. -hat are the /eesB i*terest char#e! 2y the 2a*. /r the services +rvi!e! 2y
themH
$ns@
+OR#OR$T/ B$"6I"I ,/RJI+/, 4//CI"T/R/,T +%$RI/>
*.B$"6 IFR$"T// 3:B +O"+/,,IO" TO "OR$7
,/RJI+/, +%$RI/
9G

0./T#ORT :B
1.OT%/R, :50AB
3.RF#// $, #R/ RBI R/4/R$"+/ R$T/
1. 'hat are the meas!re taken to control the bank chargesCcommission borne by the
companyM
$ns@ %!ge transactions and reg!lar retirement obligations.
3. 'hat are the negotiations tactics !sed by the company to obtain ma-im!m
!tili.ationof bank facilitiesM
98

$ns@'e provide large n!mbers of investors in the correspondent banks so as to get the
good benefit from the banks.
:. 7isit the benefits given by the banksM
$ns@
4F"> B$,/> B/"/4IT, "O" 4F">/> B/"/4IT,
*.'OR6I"I +$#IT$7 4I"$"+I"I 7/TT/R O4 +R/>IT
0.T/R 7O$" B$"6 IF$R$"T//
?. -hich 2a*. yu <ish t !ea" <ithH
$ns@ "ationali.ed banks
$s they are operated and reg!lated by the government and the rate of interest is low as
compared to private banks.
=. -hich !e+artme*t !eci!es * the 2a*. <ith <hich the !ea"i*# have t !*eH
$ns@ The finance department decides with the cons!ltation of the dep!ty general
manager.
GA

G. 3< /reIue*t"y ! yu visit t the c*cer*e! re"ati*shi+ ma*a#erH
$ns@'e visit in bank on the official call basis.
8. -hat are the +r2"ems /ace! <ith res+ect t the services +rvi!e! 2y the 2a*.H
$ns@ Too m!ch formalities and lack of fle-ibility
*A. Su##esti*BRecmme*!ati* t the 2a*.sH
$ns@"o s!ggestions.
6(%%ENDICES7
GUESTION(IRE &OR T3E B(N)S
'hat are the different prod!cts and services offered !nder corporate b!ying by yo!r
banksM
$ns@5
'hat is the feesCinterest charged by the bank for the services offered by the bankM
G*

$ns@5
7ist the c!stomers that the bank caters to @5
$ns@5
'ho is the biggest client of the bankM
$ns@5
%ow many employers are working in this departmentM
$ns@5
'hat is the academic backgro!nd of the staff from the corporate banking departmentM
$ns@5
'ho is the corporate banking department headM
$ns@5
'hat is the hierarchy of the corporate banking departmentM
$ns@5
,ince when is the bank providing these corporate banking servicesM
$ns@5
'hat are the problems faced by the bankM
$ns@5
G0

GUESTION(IRES &OR T3E COR%OR(TES
7ist the bank from when the company avails corporate banking servicesM
$ns@5
'hat are the feesCinterest charged by the bank for the services provided by themM
$ns@5
'hat are the meas!res taken to control the bank chargesCcommission borne by the
companyM
G1

$ns@5
'hat are the negotiation tactics !sed by the company to obtain ma-im!m !tili.ation of
bank facilitiesM
$ns@5
7ist the benefits given by the bankM
$ns@5
'hich bank do yo! wish to deal withM
$ns@5
'hich department decides on the bank with which the dealings have to be doneM
$ns@5
%ow fre(!ently do yo! visit yo!r concerned relationship managerM
$ns@5
'hat are the problems faced with respect to the services provided by the bankM
$ns@5
*A.,!geetionsCRecommendations for the bank
$ns@5
G3

INTER%RET(TION O& D(T( (ND (N('4SIS
+orporate banking dealings are very c!stomised taking to consideration the c!stomers
vol!me of b!siness re(!irements./ach corporates is given concessions keeping in mind
the healthy relationship that they maintain and the period since when they deal are
dealing with the bank.
G:

$s far as the corporate are concerned they preffer dealings with a consorti!m of banks
taking advantages the benefits provided by all the banks. The corporates convince the
banks by provide a h!ge vol!me of the b!siness for the concession given by them.
'hile getting the (!estionaire filled it was noticed that the banks were very skeptical
abo!t revelaing the details regarding the fees or the interest charged by them to the
corporate.
Overall the corporate banking charges are applied on a case an case basic keeping into
consideration the RBI reg!lations.
RECOMMEND(TIONS D SU00ESTIONS
If we look at it from the corporate angle then the banks need to speed !p their proced!res
and th!s enabling fast f!nctioning of the work.It is seen that the corporates feel that the
G?

private banks are rigid in their system and don&t make concessions consedering the
!rgency of the sit!ation.
$ccording to the banks they need the companies to have credit worthinessand clean chit
on stheir financial records. %ence it is s!ggested that the company maintain their
financial performance according to the r!les and reg!lations. The corporates also need to
pay off their obligations on time which wo!ld help them to create a good impression on
the banks and make it easy for them for f!t!re borrowings.
CONC'USION
+orporate banking foc!ses on offering a f!ll range of services to m!ltinationals, large
domestic corporate and instit!tional clients.
G9

+orporate banking reflects bank&s strength in providing an corporates clients in India, a
wide away of commercial, transactional and electronic banking prod!ct developments
and a well5 interegated approach to realtionship management.
+orporate banking services are an integral part of the corporate, investment banking and
markets (+IB) str!ct!re,which foc!ses on offering a f!ll range of services to
m!ltinational, large domestic corporate and instit!tional clients. It can be concl!ded that
the banks help corporate in financial needs th!s enabling them to r!n smoothly O
effectively
GG

G8

8A

8*

80

81

83

8:

8?

89

8G

88

*AA