MERCHANT BANKING

In banking, a merchant bank is a financial institution primarily engaged in offering

financial services and advice to corporations and wealthy individuals on how to
use their money. The term can also be used to describe the private equity activities
of banking.

According to Cox, D. merchant banking is defined as,……..

“merchant banks are the financial institutions providing specialist services which
generally include the acceptance of bills of exchange, corporate finance, portfolio
management and other banking services”.
 MERCHANT BANKING SERVICES

 Corporate Counseling
 Project Counseling And Pre-InvestmentStudies
 Credit Syndication
 Issue Management and Underwriting
 Bankers to issue
 Portfolio Management
 Venture Capital Financing
 Leasing
 Non-Resident Investment
 Acceptance Credit And Bill Discounting
SET UP OF MERCHANT BANKING IN INDIA

 Foreign Banks

 Indian Banks

 Financial Institutions

 Private Merchant Banks

QUALITIES OF GOOD MERCHANT BANKING

 Leadership
 Aggressive action
 Co-operative and friendliness
 Contacts
 Attitude towards problem solving
 Inquisitiveness for new skills, information and knowledge
PRIME OBJECTIVES OF MERCHANT BANKING

 Providing long term funds to the projects or companies.

 Project counseling- loan syndication, project appraisal.
 Deciding the capital structure.
 Portfolio Management
 Underwriting
 Corporate advisory & issue mgmt.
THANK YOU