PPB – Module A

Unit 3
Retail Banking, Wholesale Banking..
 1. Retail Banking
• Commercial Bank deal with Retail Banking Customers
like individual, sole proprietor, partnership, firms,
clubs, trusts, associations, school, private limited
company, small and medium scale business entity only
• Different types of Retail Banking Deposit Products are
Saving Bank Account, Recurring Deposit, Current
Account, Term Deposit, Zero Balance Account for
Salaried Person, BSBDA [Basic Saving Bank Deposit
Account], Senior Citizen Account
• Different types of Retail Banking Loan Products are car
loan, home loan, education loan, crop loan, credit card,
SME Loans
• Other Retail Banking Products/Services are Safe
Deposit Lockers, Depository Services, Banc assurance
Products
 2. Wholesale Banking
• Refers to doing Business Business with industrial
and business entities-mostly corporates and
trading houses including MNC, Multinationals,
Domestic Business houses and public sector
companies
• Fund Based products/services are Term Lending,
Short Term Finance, Working Caoital Finance, Bill
Discounting, Structured Financre, Export Credit
• Non-Fund Based Products/Services: BG, LC,
Collection Of Bills
• Value Added Services: Cash Management
Services, Channel Financing, Vendor Financing,
RTGS, Corporate Salary Accounts, Syndication
Services, Forex Desk, Money Market Desk,
Derivative Desk, Employment Trusts, Tax
Collection, Bankers to Right/Public Issue, ECS
(Electronic Clearing Service)
• Internet Banking Services: Payment Gateway
Service, Corporate Internet Banking, Supply Chain
Management, Supply Chain Partners
 3. International Banking
• Banking Services catering to cross border
transactions
 4. EPC [Export Packaging Credit]
• Banks provide Pre-Shipment Finance, available
in both Rupees as well as Foreign curriences
to assist exporters
5. Banks Negotiate Export Bill Under LC [Letter
Of Credit]
 6. BG [Bank Guarantee]
• Bank issues Guarantees for both Exporter &
Importer under FEMA, subject to credit limit
availability or against 100% cash margin
 7. Suppliers Credit
• Enables Indian Exporters to extend term credit
to importers (Overseas) of eligible goods at
post shipment stage.
 8. EEFC A/c
• Banks provide facility to maintain an Exchange
Earners Foreign Currency in all permitted
currency.
 9. Universal Banking
• Offers all types of Financial Products like
Mutual Fund, Capital Market related products
including share broking, commodity broking,
etc, sale of gold/bullion, government bonds,
corporate bonds, providing advisory services
and merchant banking activities, all one at
place
 10. Depository Receipt(DR)
• Is a type of Negotiable (Transferrable)Financial
Instrument that is traded on a local stock
exchange of a country but represents a
security, usually in the form of equity that is
issued by a foreign publically listed company.
• Is a physical certificate, allows investor to hold
shares in equity of other countries
• Examples: ADR, GDR
 11. ADR
• American Depository Receipt
• Traded in US Stock Exchange such as NASDAQ,
NYSE [New York Stock Exchange]
• Traded in US$
 12. GDR
• Global Depository Receipt
• Listed in European Stock Exchange such as
London Stock Exchange
• Traded in US$, Euro
 13. Participatory Notes [P Notes]
• On Recommendation Of Lahiri Committee in
2004
• Controlled by SEBI
• Participatory Notes are like Contract Notes
• Are issued to Foreign Institutional Investors
(FII) to entities that want to invest in the
Indian Stock market but doesnot want to
register themselves with SEBI.
• Only Foreigners or Non Resident are allowed
• FII are not allowed to issue P-Note to Indian
National or Corporate bodies
• FII are required to report to the SE/bi on a
monthly basis if they issue, renew, cancel or
redeem Participatory Notes.
• SEBI needs Quaterly Reports about investment
in P-Notes.
Thank You