By - Anish Nair - Bibekanand Mishra - Dewanshu Kumar - Pranav Nagar - Prateek Goyal

Need for Fee Based Services

Volatility in the interest rate regime have compelled banks to explore the various non interest based income Fierce competition is prevailing in the Indian economy The non-interest income activities of banks are also on the increase in recent years Stabilized the total income of banks Increase in non-interest income as a source of funds for banks would also greatly be helpful for maintaining the financial soundness of banks

Fee Based Services

Corporate Fee Based Services

Cash Management Services Treasury Services Trading Facilities Letter of Credit Bank Guarantee Factoring and Forfeiting Services Correspondent Banking Leasing Bill Discounting Trust Operations Custodial Services

Fee Based Services

Retail Fee Based Services

Credit cards
Remittance Insurance

Wealth Management
Miscellaneous Services

Fee Based Services

FOREX Services Merchant banking

Underwriting

Project Counseling Supply Chain Management Mergers and Amalgamations

Corporate Fee Based Services

Cash Management Services

In United States banking, cash management, or treasury management, is a marketing term for certain services offered primarily to larger business customers. These include: Account Reconcilement Services. Advanced Web Services. Automated Clearing House. Balance Reporting Services. Cash Concentration Services. Zero Balance Accounting. Controlled Disbursement and wire transfer.

Treasury Services
Treasury services is a function of an investment bank which provides transaction, investment, and information services for chief financial officers or treasurers. These Generally include: Accounts Receivable services. Accounts Payable services. Liquidity Management services. Reporting Services. Trade Finance Services.

Trading Facilities
A person or group of persons that provides a physical or electronic facility or system in which multiple participants have the ability to execute or trade agreements, contracts, or transactions by accepting bids and offers made by other participants in the facility or system. This includes: Online share trading facilities. Multilateral trading facility.

Trading Facilities
Trade Service for Importers : Import Bills for Collection and letters of credit. Bank Guarantee. Trade Service for Exporters : Export Bills for Collection and Bank Guarantee. Outward Bill. Credit Bill Negotiation.

Letter Of Credit

Letter of credit implies one has found a creditor that is willing to loan It is an irrevocable payment undertaking The issuing bank makes available the Proceeds, to the Beneficiary of the Credit provided Letters of credit accomplish their purpose by substituting the credit of the bank for that of the customer, for the purpose of facilitating trade Two types: Primary Mechanism: Commercial letter of credit Secondary Mechanism: Stand by letter of credit

Bank Guarantee

A commercial instrument in the nature of a contract, intended between two parties, to secure compliance with the contract It is a guarantee made by a bank on behalf of a customer should it fail to deliver the payment, essentially making the bank a co-signer for one of its customer's purchases In case of breach of contract the beneficiary can encash the guarantee and avail the amount immediately without having to undergo any litigation Types:
Conditional Unconditional

Factoring and Forfeiting Services

Forfeiting and factoring are services in international market given to an exporter or seller. Forfeiting typically involves the following cost elements: Commitment fee, payable by the exporter to the forfeiter for latters commitment to execute a specific forfeiting transaction at a firm discount rate with in a specified time. Discount fee, interest payable by the exporter for the entire period of credit involved and deducted by the forfeiter from the amount paid to the exporter against the availed promissory notes or bills of exchange.

Correspondent Banking

A correspondent account is an account (often called a nostro or vostro account) established by a large banking institution to receive deposits from, make payments on behalf of, or handle other financial transactions for smaller financial institutions The Banks LC stands acceptable in the international market Suppliers can confirm LCs from any of the correspondents Quick collection of export bills as well as outward remittances towards imports

Leasing

Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. Leases are most advantageous to companies that are acquiring equipment that is subject to technological obsolescence. Leasing companies typically fund leases and then get their funding for the transaction from a bank, because they are not capitalized enough.

Bill discounting

Bill discounting is a major activity with some of the smaller Banks. Under this particular type of lending, Bank takes the bill drawn by borrower on his(borrower's) customer and pay him or her immediately deducting some amount as discount/commission. The Bank then presents the Bill to the borrower's customer on the due date of the Bill and collect the total amount. If the bill is delayed, the borrower or his customer pay the Bank a pre-determined interest depending upon the terms of transaction.

Trust Operations

Act as Executors/Administrators Permission from Office of the Comptroller of the Currency Strict adherences to rules governing on how the bank administers its fiduciary powers Personal Trust: Living trusts & Testamentary trusts Corporate Trusts: Estate Admin & Bond Admin

Custodial Services
A Custodian bank, or simply custodian, is a specialized financial institution responsible for safeguarding a firm's or individual's financial assets and is not likely to engage in "traditional banking. Its Responsibilities include: hold in safekeeping assets/securities such as stocks, bonds and commodities. arrange settlement of any purchases and sales of such securities. collect information on and income from such assets. maintain currency/cash bank accounts, effect deposits and withdrawals and manage other cash transactions. perform foreign exchange transactions.

Retail Fee Based Services

Credit cards

It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. One credit card, multiple APRs. Lower credit score, higher APR APR includes interest, not fees.

Remittance

It is transfer of money by a foreign worker to his or her home country The banks help their NRI customers to avail the highest benefit of the exchange rates while transferring money Modes:
SWIFT(Society for worldwide inter bank financial

telecommunication) Bankers Cheque Demand Drafts Mail Transfers Telegraphic Transfers Travellers Cheque

Insurance

Distributors for both Life and Non life insurance products Insurance companies tie up with banks as well as Irda recommendation of every bank being allowed for tie ups with 2 life, 2 non life and 2 health care Insurance companies Increased penetration for Insurers (rural areas as well) The Commission fee charged is regulated by Irda

Wealth Management

Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services. These include the following: Portfolio Management Services. Portfolio Advisory. Trading in Equity, Currency, Interest Rate Futures. Fixed Income Products. Structured Products. Financial Planning. Private Equity Funds. Mutual Funds & IPOs.

Miscellaneous Services

The Banks are authorized for collection of Income or other Direct taxes The banks are authorized for disbursement of various Pensions like Central Civil Pension, Defence Pension etc The banks offer payment facilities towards bills like phone, electricity, data services ECS system facilitates paperless credit/debit facilities transaction directly linked to ones account ECS caters to Utility bills, Mutual Fund, Insurance Premium, Loan Installments, credit card bills

Foreign Exchange Services

The foreign exchange market (FOREX OR currency market) is a global, worldwide decentralized financial market for trading currencies. The primary purpose of the foreign exchange is to assist international trade and investment, by allowing businesses to convert one currency to another currency. These services include: Travellers cheques. Forex plus cards. Foreign currency drafts. Remittances. Trade services.

Merchant Banking

A bank that deals mostly in (but is not limited to) international finance, long-term loans for companies and underwriting. Merchant banks do not provide regular banking services to the general public. Traditional merchant banks primarily perform international financing activities such as foreign corporate investing, foreign real estate investment, trade finance and international transaction facilitation. Some of the activities that a pure merchant bank is involved in may include issuing letters of credit, transferring funds internationally, trade consulting and co-investment in projects involving trade of one form or other.

Underwriting

The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). The procedure by which an underwriter brings a new security issue to the investing public in an offering. In such a case, the underwriter will guarantee a certain price for a certain number of securities to the party that is issuing the security (in exchange for a fee). Thus, the issuer is secure that they will raise a certain minimum from the issue, while the underwriter bears the risk of the isssue.

Project Counseling

Study and analysis of project viability Effective and efficient implementation Project Counseling Activities: General Review Technical feasibility Market Survey Capital Structuring Obtaining licenses, permissions, registrations

Supply Chain Management

Integrated commercial and financial solutions to the supply and distribution channels of a corporate Channel financing products that extend working capital finance to dealers or vendors having relationships with large corporates: Dealer Financing Receivables Factoring Purchase Invoice Financing Warehouse Financing Trade Cards Rent Receivable Financing

Mergers and Amalgamations

Expertise in exclusive sales, divestitures, acquisitions, merger advisory, tender offers, joint ventures, strategic alliances, takeover defense and special committee representation, recapitalizations and restructurings Key focus on clients throughout the transaction process from identifying potential partners, preparing the marketing materials, to contacting potential partners, positioning, structuring, negotiating and closing of a deal by leveraging the industry knowledge and capital markets and restructuring expertise

Mergers and Amalgamations

Services Provided Strategic alternatives "Going private" transaction Special committee advisory Share repurchase strategies Strategic alliances and joint ventures Corporate defensive activities Sell-side advisory Buy-side advisory Leveraged recapitalization Management buyout Acquisition financing alternatives Fairness opinion

THANK

YOU