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GROUP 7
BANKING : Corporate And
Investment
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Banking :
Banking Regulation Act o India! "#$# de%nes Bankin
accepting or t&e purpose o lending o investmentdeposits o mone' rom t&e pu(lic )&ic& is repa'a(
demand or )it&dra)al (' c&e*ue ! drat order + ,Reserve Bank o India Act! "#-$ and t&e Banking Reg
Act! "#$#! govern t&e (anking operations in India
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Banking .tructure in India:A well-regulated banking system is a key comfort for local an
stake-holders in any country. Prudent banking regulation is recognized as one of the reason
was less affected by the global financial crisis.
Banks can be broadly categorized as Commercial Banks or Co
Banks.
Banks which meet specific criteria are included in the second the BI Act! "#$%. &hese are called scheduled banks.
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Structure of Banks in India
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Adoption of Banking Technolo
,&e RBI set up a num(er o committees to de%ne and ordinate (anking tec&nolog'+ ,&ese &ave included:
Introducing o 4ICR tec&nolog' in all t&e (anks in t&emetropolises in India +
In t&e 'ear "#55! t&e RBI set up t&e Committee on
Computeri1ation in Banks+ In "##$! t&e Committee on ,ec&nolog' Issues relating
Pa'ment s'stems! C&e*ue clearing and .ecurities sett&e Banking Industr'+
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,'pes o Banks :.avings Banks3 ,&is Banks are suited or emplo'ees )it& a
salar'+ 6o) )aged people ma' open an account in t&e savi
Commercial (anks3 ,&ese (anks collects mone' rom peopsectors and give t&e same as a loan to (usinessmen and min interest+
Industrial (anks3 ,&ese (anks collect cas& (' issuing s&arede(entures and provides long term loan to industries+
6and evelopment Banks3 ,&ese (anks are also kno)n as (anks (ecause t&ese are ormed to %nance agricultural sec
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Indigenous Banks3 Indigenous (anks means mone' lenderssa&ukars+ ,&e' collect deposits rom general pu(lic and grt&e need' people+
Central0National (anks3 ,&ese central (anks are t&e (anks o It is a non pro%t making institution+ ,&e main responsi(ilit' o t&control on currenc' o a countr'+
Co3operative (anks3 t&e' generall' give credit acilities to
armers! salaried emplo'ees! small scale industries! etc+
Consumers (anks3 ,&e main o(8ective o t&is (ank is to givconsumers or purc&ase o t&e dura(les like motor car! teleurniture etc+ Consumers &ave to repa' t&e loans in eas' in
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R,G. .'stem :
9R,G.9 stands or Real ,ime Gross .ettleIt ena(les transer o mone' in real time
R,G. pa'ment transaction do not involv)aiting period+
4a8orit' o commercial (anks &ave empR,G. and it is availa(le in over -$7; (
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Money transfer happens inreal time and directlythrough the banking
system
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N
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Money is aggregated in clusters forreconciliation and settlement
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Investment Banks :
Investment Banks &elps t&e companies andgovernments and t&eir agencies to raise moneissuing and selling securities in primar' marke
Provides strategic advisor' services or mergeac*uisitions and ot&er t'pes o %nancial transa
,&e' assist pu(lic and private corporations in runds in t&e capital markets
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2unctions o Investment Banking :
,o &elp pu(lic and private corporations in issusecurities in t&e primar' market+
Provides %nancial advice to investors and serv(' assisting in purc&asing securities and tradinsecurities+
,o guarantee (' stand(' under)riting or (est selling and oreign e=c&ange management+
Ot&er services include acting as intermediarietrading or clients+
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Instruments in Investment Banking :
Certi%cates o eposits > are t&e most convenient
instruments to depositors as t&e' ena(le t&eir s&orsurpluses to earn &ig&er return+
,reasur' .ecurities 3 ,reasur' securities are usuall'sell on t&e secondar' market! (ut t&e' t'picall' pa'rate o interest relative to ot&er %nancial instrumen
Bonds > a de(t instrument issued or a period o moone 'ear )it& t&e purpose o raising capital (' (orr
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Corporate Banking :
Corporate (anking reers to %nancial services o/erlarge clients+ It is also a ver' pro%ta(le division o
2inancial services provided (' (anks to t&e Corpomeeting t&eir (anking and %nancial needs or :
.etting up ne) pro8ects
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.ervices provided under Corporate Ba
Insurance : ,&ese service allo) corporate clieaccess man' di/erent services )it&in a singleinstitution+
.&are&olding : Banks can participate in t&emanagement o o)n s&ares in companies+
Pro8ect 2inance : 2or large inrastructure and opro8ects! (anks o/er speci%c loans )&ic& are (ased on t&e revenue generated (' t&at pro8e
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PRESENT
Ra%'a
ees&a GRic&a
.an8ana P
Animes& ,ala
Nisc&
,@ANK OU