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Bachelor of Commerce
Banking & Insurance
Semester-V
(Academic Year)
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Bachelor of Commerce
Banking & Insurance
Semester-V
Submitted
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This is to certify that Mr._________ Roll No. ___ of B.Com.Banking & Insurance Semester- V (2015-16) has successfully
completed the project on _________________ under the
guidance of ______________.
Course Co-ordinator
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DECLARATION
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student of B.Com (Banking & Insurance) Semester V (2015-16) hereby declare that I
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CORPORATE BANKING
The last decade has seen many positive developments in the Indian banking
sector. The policy makers, which comprise the Reserve Bank Of India (RBI).
Ministry of finance and related government and financial sector regulatory
entities, have made several notable efforts to improve regulations in the sector.
The sector now compares favourably with banking sectors in the region of
metries like growth, profitability and non performing assets (NPAs). A few banks
have established an outstanding track record of innovations, growth and value
creation. This is reflected in their market valuation. However
improved
regulations, innovations growth and value 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. Indians banking industry must
strengthen itself significantly if it has to support the modern and vibrant economy
which Indian aspires to be. While the onces for this change lies mainly with bank
management can enabling policy and regulatory framework will also be critical to
their success.
The study involves the different types of services offered b banks for corporate.
The essence of banking business is the function of accepting deposits from
public with the facility of withdrawal of money by cheque. Besides from the usual
services, banks now have started giving additional services right from working
capital needs to investment banking.Working capital is the core area of banking
industry today.
This project contains both primary and secondary data
1.INTRODUCTON
Corporate banking represents the wide range of banking and financial services
provided to domestic and international operations of large local corporate and
local operations of multinational corporations. Services include access to
commercial banking products, including working capital facilities such as
domestic and international trade operations and funding channel financing in
foreign and overdrafts as well as domestic and international payments, INR term
loans (including external commercial borrowings in foreign currency), letters of
guarantee etc
Corporate banking services are an integral part of the corporate investment,
Banking and markets (CIBM) structure, which focuses on offering a full range of
services to multinational, large domestic corporate and institutional clients. The
investments banking and markets division brings together the advisory and
financing, equity securities, asset management, treasury and capital markets,
and private equity activities of the group to the complete the CIBM structure and
provide a complete range of financial products to the clients.
Clients are serviced by sector based clients services teams that combine the
relationship managers, product specialists and industry specialists to develop
customized financial solutions. These form the relationship team along with the
Investments banking and advisory division. Each team supports the clients
worldwide operations, ensuring a full understanding of the companys business
and financial needs.
2. OBJECTIVES
3. Research Methodology:
2.1Vision:
Become the dominant numero uno bank in Kerala and a leading player
in target markets.
Be the trusted partner of choice for target (SME, Retail, NRI) customers.
Be a customer-centric organization setting the benchmarks for service.
Offer innovative yet simple products supported by the state-of-the art
technology.
Have a dynamic and energized workforce with a strong sense of
belonging.
Deliver top tier financial performance and superior value to stakeholders.
Be a role model for corporate governance and social responsibility
2.2Mission
We
have emerged as one of the leading private sector banks in the country, in
providing a gamut of products for industry, trade and infrastructure sectors. We
serve a wide range of customers across varying industries, segments and
regions.
Term Loans
We can structure credit solutions to meet your specific short-term or long term
funding requirements. We provide structured term financing solutions for
infrastructure, project funding, real estate and other corporate purposes. The
loans are provided at competitive rates and are structured to enhance your
profitability by scheduling the repayment to match the cash flow available to
repay the debt.
Corporate Loans
For a variety of business related purposes to corporates
Working capital finance
We offer working capital finance by way of cash credit, overdraft or working
capital loans suitably structured to your needs and your risk profile as a part of
consortium or as a sole banker. These products are designed to ease the liquidity
position of the client.
Bill Finance
Trade finance by discounting bills
Export\ import finance
Pre and post shipment finance, forward covers, buyers credit and finance in
foreign currency.
Letter of Credit
We provide for opening inland and import letter of credit facility to facilitate
procurement of inventory and capital goods.
Bank Guarantees
The bank mostly lend against appropriate tangible securities such as deposits,
shares, debentures, proprety,guarantees, supported by tangible securities, life
policies, goods, gold or other precious metal. The bank may also lend against
intangible securities such as unsupported guarantees or assignment of sums due
to the borrower by the third parties. It is essential that the bank follows the proper
procedures in order to obtain good title when taking a security. There is a
difference between possession and ownership. The various forms of documents
used for obtaining different types of securities are also important. Inadequate
documentation may well cause the losses to the bank and is particularly time for
the Trade Financing documentation and the securities agreement relating to
goods. Documents are primary evidence. If any laccina is found in
documentation, this will jeopondize the interest of the bank and may even
adversely affect the right of recovery of the documents executed properly and
correctly. Further, the documents should be stamped, wherever required.
The bank must also follow proper procedures to realise securities otherwise
losses may be incurred. The corporate operations divisions are normally
responsible for maintaining securities otherwise losses may be incurred. The
corporate operations divisions are normally responsible for maintaining securities
documentation and updating the customers mandates with fresh account
documentation account statements, financial statements and relationship
reviews. Handling and treatment of delinquent accounts is also an important area
of operations.
fees
for
services.
MEANING:
The account relationship managers are those who negotiate with
the targeted corporate customers with the terms acceptable to the banks and
Account Relationship Management Acceptance Criteria" or the so called "Credit
Guidelines." It should be internally placed and distributed to every credit
manager/officer. These guidelines set the minimum acceptance standards, in
simple words, the guidelines are aimed to let the account relationship
managers/officers know exactly what they should be selling, to whom, at what
price and under which conditions (securities and other terms).
DECISION MAKING:
Making a sound decision to extend credit to a corporate customer is a complex
process. This is because corporate customers are normally engaged in a wide
range of activities and are affected by a host of external and internal factors that
have direct impact on their ability to meet financial obligations. The credit
decision making should, therefore, be directed by an internal lending policy that
takes into account such factors and aims to protect the bank's assets, preserve
its reputation and optimize the relationship profitability. Based on the credit
guidelines, the account relationship executive will have to submit a credit
proposal evaluating the whole relationship. The Credit Evaluation process must
be done systematically and within acceptable standards to maintain a high
quality credit portfolio. The preparation of the credit proposal must be guided by
common sense and sensible judgement.
The amount of details the proposal should contain naturally depends on several
elements, namely the size and strength of the customer, the size of the bank's
current and proposed exposure, the socio political environment, the economy,
the industry and the bank's position in relation to other.
CREDIT EVALUATION:
The bank must place a system of credit evaluation which is based on
assessment of historical, current and projected elements stated hereunder:
a. FINANCIAL ANALYSIS:
Sales, Profitability, Performance, Funds Flow, working Capital Management,
liquidity, balance sheet conditions...etc
MEANING:
Corporations, the world over are jettisoning antiquated cash management
practices and opting to put in place sophisticated cash management structures to
garner the associated economic benefits and due to reasons of expediency.
Conversely, banks have taken note of the enormous revenue potential in the feebased services segment to prop up their sagging bottom lines. While
appreciating the initiatives taken by the Administrative Staff College of India in
organizing
the
Workshop.
The some of the relevant issues, which the banks need to address are as
follows.
OBJECTIVE OF CASH MANAGEMENT:
The fundamental objective of cash management is optimization of liquidity
through an improved flow of funds. In todays highly competitive environment,
where time is considered as money, deployment of staff to render basic routine
tasks does not make economic sense. As a sequel, cash management today is
not what it used to be.
Electronic banking, which began as a passive desktop access to bank balances,
is emerging into complex processes of liquidity management through numerous
techniques.
planning to use the services of banks to help them collect payments on monthly
bills they issue to consumers and other types of cash management services.
having to actively monitor accounts and move money in and out of them
Information reporting solutions assist companies, which need to receive account
data that is timely, precise, and easy to access and interested in initiating online
transactions.
maximize return on
It is apposite to review the Indian scenario in this regard. As we are well aware,
banks desire for funds has lost under the onslaught of the current slowdown.
Despite the offer of very soft terms corporates are refusing to borrow, while bank
deposits have been ballooning. Compelled to service the burgeoning liabilities,
but unable to lend hastily and allow their non-performing assets (NPAs) to grow,
bankers are forced to compete for the handful of safe bets among their
borrowers. Banks chose to use the opportunity to refocus their activities, seeking
clearly defined identities in terms of services and customer segments. Most of
them concentrated on cleaning up their books by peeling down their NPAs. All of
them attempted freezing of costs, improving operational efficiencies, and
boosting productivity.The strategy of the banks, which performed well, is to use
fee-based services to maintain earnings growth.
With interest rates falling, non-interest income was, unsurprisingly, the fastestgrowing component of the banks total income. Fee-based activities will
complement though not substitute the core business of lending .It is gratifying to
note that a number of banks in India are offering wide-ranging cash management
services to their corporate clients.
All the three categories of banks viz., nationalized banks, private banks, and
foreign banks operating in India are active in the cash management segment.
SBI, PNB, ICICI Bank, GTB, HDFC Bank, Centurion Bank and Vysya Bank, are
some of the active Indian banks in this segment.
Citi Bank, Standard Chartered Bank, ABN Amro Bank, BNP, ANZ Grindlays and
HSBC are the foreign banks operating in India, which are prominent among the
cash management services providers.
management services in Indian market is estimated over Rs.25, 000 crore per
month.
State Bank of India alone is estimated to handle over Rs.12,000 crore per month
through its product called SBI-FAST. Indian banks are offering services like
Electronic funds transfer services, provision of cash related MIS reports, cash
pooling services, collection services, debit transfer services, guaranteed credit
arrangements, sweep products, tax payment services, receivables and payables
management. Foreign banks operating in India are offering regional and global
treasury management services, liquidity management services, card services,
electronic banking services, e-commerce solutions, account management
services, collection management services, cash delivery management services
and investment solutions.
banks
expertise
and
ability
to
offer
creative
solutions
Flexibility, reliability, security and stability have been cited as vital parameters for
any electronic banking system.
lower operating costs and resolve disputes quickly by providing secure and
legally enforceable audit trails. It should be capable of reducing risk of fraud in
electronic funds transfers and other treasury activities. It should also be able to
use a low-cost public network infrastructure like Internet, which eliminates the
need for dedicated leased lines.
CHANGING
CASH
MANAGEMENT
PROCESSES
AND
E-BANKING:
INNOVATIONS:
The enlightened participants in this Workshop are aware that the cash
management techniques have been undergoing a metamorphosis as a result of
the extensive technological advancements. Positioning finance as a valuable part
of a business organization means re-engineering of business processes.
Western countries. It replaces the slow and costly process of preparing and
mailing paper bills and receiving cheques as payment.
Corporations look to
banker. When the treasurer sits at his desk, he expects that his computer has to
automatically update his files with real-time information on the companys
account balances. Without moving, he wants to maneuver funds between
accounts to capture more interest from pooled accounts, he demands to lag his
payments to mak his cash work to the fullest and he desires to get an up-to-date
report on the progress of his collections.
As the Internet explodes into life, companies want to be among the first to use
the Internet to market their products, receive orders, deal with suppliers and
settle transactions Corporates visualize technology as a tool to cut their costs
and improve efficiency.
The new electronic payment products and services offer the corporate clients an
improved bottom line by helping manage cash requirements. It helps corporate to
make the best use of their funds and provides an effective means of managing
their financial requirements
Several of the trends in cash flow forecasting favor the use of electronic
payment products like RTGS, Electronic Funds Transfer (EFT) and card
payments.
Improved technology and systems integration makes it more attractive to use
electronic payment products because these methods of payment can be
incorporated into firm-wide computing systems.
The new forecasting techniques also suggest use of electronic payments,
because they offer disaggregated revenue and spending data that can easily be
categorized
and
studied.
Electronic payments and cards provide control over incoming funds, and allow
companies to limit access to these funds to authorized parties. In addition,
limiting corporate purchases to electronic payments makes it easier for firms to
monitor cash outflows and prevent unauthorized expenditures, because these
payments are easier to document and provide an audit trail.
b. Economic Considerations:
Costs associated with the new services do pose a challenge to small and
medium companies. A host-to-host connection is a sophisticated, direct, two-way
link between the banks and the customers computers, which is expensive to
set-up and maintain. However, it is highly automated and allows the corporate to
use more of the banks services. Small companies, unfortunately, may not be
able to afford host-to-host connection. Concerns associated with high costs may
be effectively addressed once the Internets security apprehensions have been
resolved.
The conventional formal line between treasury and control and between cash
and accounting strategies is fading. Now, bankers and controllers are working
together closely in seeking solutions in the complex cash management function.
In todays world, the key differentiator between a successful bank and other
bank is the stress each lays on technology. As such, let me turn your attention to
the numerous challenges bankers need to address squarely, while gearing up to
provide cash management services in a technology dominated environment.
New
Bankers need to really understand the accounting and control side of its client
business.
companys growth and need to spend a lot of time learning about the concerned
industry. W They have to use that knowledge to propose solutions that never
would have occurred to the client
4. Provision of Other Advisory Services to Clients:
Companies would like to see banks solve certain other related problems.
For instance, a company may like someone to tell it exactly what is wrong with
their MIS department. Changing systems is a major initiative with far-reaching
implications to the companies so banker cannot afford to make a mistake. As the
technology changes almost monthly, companies do expect bankers to tell them
what to do and where to spend their money.
Although technology and size may not go together banks have to cost-justify the
cash management services companies use. No doubt, banks did invest a lot in
the technology-based services. But with the advent of the Internet and other
tools, banks should strive to make accessible cash management services to
middle and small companies without totally phasing out their existing hardware.
MEANING:
Working Capital facility is provided to the industry to finance day-to-day
production & sales. For production; funds are generally required for purchase of
raw materials, stores, fuel, for payment of labor, power charges, for storing
finished goods till they are sold out & for financing the sales by way of sundry
debtors / receivables.
Cash Credit facility is granted to the customers to bridge working capital gap.
The Bank also provides short term loan facility for a period of up to 1 year for the
purpose of bridging temporary cash flow mismatches arising due to various
reasons like non-realization of receivables in time, routine capex etc. The finance
extended under this category would be for meeting the funds
requirements for
day to day operations of the units i.e., to meet recurring expenses such as
acquisition of raw material, the various expenses connected with products,
conversion of raw materials into finished products, marketing and administrative
expenses, etc.. The working capital limits would be considered only after the
project nearing completion and after ensuring full tie-up of the term loan
requirements of the borrower. These limits would be either in the form of fixed
loans or running accounts and / or bill financing facility.
SECURITY:
KEY BENEFITS:
Funded facilities, i.e. the bank provides funding and assistance to actually
purchase business assets or to meet business expenses. Non-Funded facilities,
i.e. the bank can issue letters of credit or can give a guarantee on behalf of the
customer to the suppliers, Government Departments for the procurement of
goods and services on credit. It is Available in both Indian as well as Foreign
currency.
LIMITATIONS OF WORKING CAPITAL FINANCE:
The working capital limits would require such security and personal/ third party
guarantees as applicable to general lending norms of the bank and risk
perception in respect of individual borrowal account.
In tune with the Reserve Bank of India guidelines on Loan System for delivery of
bank Credit for working capital purposes to larger borrowers, the same would be
extended in the form of fixed loan (working capital Demand loan) and cash credit
(running account) in the ratio of 60:40 in respect of borrowers enjoying aggregate
working capital limits of Rs.10 crore and above from the Banking system.
The working capital demand loan facility shall be for a minimum fixed term of 7
days subject to roll over at the option of the borrower concerned
SHORT
TERM
CORPORATE
FINANCE
METHODS
OF
LENDING:
Like many other activities of the banks, method and quantum of short-term
finance that can be granted to a corporate was mandated by the Reserve Bank
of
India
till
1994.
known as Tandon Committee report. Most banks in India even today continue to
look at the needs of the corporates in the light of methodology recommended by
the Group. As per the recommendations of Tandon Committee, the corporates
should be discouraged from accumulating too much of stocks of current assets
and should move towards very lean inventories and receivable levels.
The
committee even suggested the maximum levels of Raw Material, Stock-inprocess and Finished Goods which a corporate operating in an industry should
be
allowed
to
accumulate.
These levels were termed as inventory and receivable norms. Depending on the
size of credit required, the funding of these current assets (working capital
needs) of the corporates could be met by one of the following methods:
Under this method, it was thought that the borrower should provide for a
minimum of 25% of total current assets out of long-term funds i.e., owned funds
plus term borrowings. A certain level of credit for purchases and other current
liabilities will be available to fund the build up of current assets and the bank will
provide the balance (MPBF).
bank borrowings could not exceed 75% of current assets. RBI stipulated that the
working capital needs of all borrowers enjoying fund based credit facilities of
more than Rs.10 lacs should be appraised (calculated) under this method.
Under this method, the borrower's contribution from long term funds will be to
the extent of the entire CORE CURRENT ASSETS, which has been defined by
the Study Group as representing the absolute minimum level of raw materials,
process stock, finished goods and stores which are in the pipeline to ensure
continuity of production and a minimum of 25% of the balance current assets
should be financed out of the long term funds plus term borrowings. (This method
was not accepted for implementation and hence is of only academic interest)
3.9EXIM BANK
Export-Import Bank of India is the premier export finance institution of the
country, set up in 1982 under the Export-Import Bank of India Act 1981.
Government of India launched the institution with a mandate, not just to enhance
exports from India, but to integrate the countrys foreign trade and investment
with the overall economic growth. Since its inception, Exim Bank of India has
been both a catalyst and a key player in the promotion of cross border trade and
investment. Commencing operations as a purveyor of export credit, like other
Export Credit Agencies in the world, Exim Bank of India has, over the period,
evolved into an institution that plays a major role in partnering Indian industries,
particularly the Small and Medium Enterprises, in their globalisation efforts,
through a wide range of products and services offered at all stages of the
business cycle, starting from import of technology and export product
development to export production, export marketing, pre-shipment and postshipment and overseas investment.
The Exchange Earners Foreign Currency (EEFC) Deposits Scheme was started
by RBI in the year 1992 with the introduction of Liberalized Exchange Rate
Management
System.
Under this scheme, the recipient of inward remittances, exporters and other
eligible bodies are allowed to keep a portion of their inward remittances / export
proceeds in foreign currency with the banks in India which can later be utilizedfor
permissible purposes.
SERVICES OFFERED TO EXPORTERS:
Pre-shipment finance in foreign currency and Indian rupees.Post-shipment
finance in foreign currency and Indian rupees. Handling export bills on collection
basis.Outward remittances for purposes as permitted under Exchange Control
guidelines. Inward remittances including advance payments. Quoting of
competitive rates for transactions. Maintenance of Exchange Earners Foreign
Currency
(EEFC)
accounts.
Establishment of Import Letters of Credit covering import into India and handling
of bills under Letter of Credit. Handling of import bills on collection basis.
Remittance of advance payment against imports. Offering utilization of PCFC
( pre-shipment credit in foreign currency) for imports.
MEANING:
Project finance is the financing of long-term infrastructure and industrial projects
based upon a complex financial structure where project debt and equity are used
to finance the project. Usually, a project financing scheme involves a number of
equity investors, known as sponsors, as well as a syndicate of banks which
provide loans to the operation. The loans are most commonly non-recourse
loans, which are secured by the project itself and paid entirely from its cash flow,
rather than from the general assets or creditworthiness of the project sponsors, a
decision in part supported by financial modeling. The financing is typically
secured by all of the project assets, including the revenue-producing contracts.
Project lenders are given a lien on all of these assets, and are able to assume
control of a project if the project company has difficulties complying with the loan
terms.
also the likely scenario that may prevail during the normal life span of the project
should be established.
The project should be able to withstand reasonable levels of variation in crucial
parameters which should be established by sensitivity analysis of the cash flows.
The means of finance for the project along with provisions to meet contingencies
such as cost/ time overrun should be established. The entire source of funds for
the project from sources other than that by the promoters shall be fully tied-up
before sanction/ disbursement of the limits.
lending
institutions,
take-out
financing,
securitization,
Inter-Bank
The disbursements under project Finance would be made strictly in tune with the
sanction terms, only after ensuring the end use of funds already disbursed by the
consortium, meeting the required margin at each stage of project implementation
and certification by the competent consultants/ specialists as per the procedure
in vogue from time to time and as decided by the consortium.
RATE OF INTEREST:
The rate of interest on such credit facilities would be determined based on the
borrower gradation and the interest rate policy of the bank from time to time.
SECURITY:
The credit facilities shall be secured by tangible assets and collaterals as may
be required based on the nature of project, quantum and duration of the credit,
anticipated return on investment and risk perception.
BOARD OF DIRECTORS
List of Directors on the Central Board of State Bank of India (As
on 4th August 2011)
Sr.
Name
Designation
No.
Under Section of
SBI Act 1955
Chairman
19 (a)
19 (b)
Managing Director
19 (b)
Managing Director
19 (b)
Director
19 (c)
Shri S. Venkatachalam
Director
19 (c)
Shri D. Sundaram
Director
19 (c)
19 (c)
Shri G. D. Nadaf
10
Director
19 (d)
The State Bank of India, the countrys oldest Bank and a premier in terms of
balance sheet size, number of branches, market capitalization and profits is
today going through a momentous phase of Change and Transformation the
two hundred year old Public sector behemoth is today stirring out of its Public
Sector legacy and moving with an ability to give the Private and Foreign Banks a
run for their money.
The bank is entering into many new businesses with strategic tie ups Pension
Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking,
Point of Sale Merchant Acquisition, Advisory Services, structured products etc
each one of these initiatives having a huge potential for growth.
The Bank is forging ahead with cutting edge technology and innovative new
banking models, to expand its Rural Banking base, looking at the vast untapped
potential in the hinterland and proposes to cover 100,000 villages in the next two
years.
It is also focusing at the top end of the market, on whole sale banking capabilities
to provide Indias growing mid / large Corporate with a complete array of
products and services. It is consolidating its global treasury operations and
entering into structured products and derivative instruments. Today, the Bank is
the largest provider of infrastructure debt and the largest arranger of external
commercial borrowings in the country. It is the only Indian bank to feature in the
Fortune 500 list.
The Bank is changing outdated front and back end processes to modern
customer friendly processes to help improve the total customer experience. With
about 8500 of its own 10000 branches and another 5100 branches of its
Associate Banks already networked, today it offers the largest banking network
to the Indian customer. The Bank is also in the process of providing complete
payment solution to its clientele with its over 21000 ATMs, and other electronic
channels such as Internet banking, debit cards, mobile banking, etc.
With four national level Apex Training Colleges and 54 learning Centers spread
all over the country the Bank is continuously engaged in skill enhancement of its
employees. Some of the training programs are attended by bankers from banks
in other countries.
The bank is also looking at opportunities to grow in size in India as well as
internationally. It presently has 82 foreign offices in 32 countries across the globe.
It has also 7 Subsidiaries in India SBI Capital Markets, SBICAP Securities, SBI
DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the
Indian Banking scenario. It is in the process of raising capital for its growth and
also consolidating its various holdings.
Throughout all this change, the Bank is also attempting to change old mindsets,
attitudes and take all employees together on this exciting road to Transformation.
In a recently concluded mass internal communication programme termed
Parivartan the Bank rolled out over 3300 two day workshops across the country
and covered over 130,000 employees in a period of 100 days using about 400
Trainers, to drive home the message of Change and inclusiveness. The
workshops fired the imagination of the employees with some other banks
in India as well as other Public Sector Organizations seeking to emulate the
programme.
EVOLUTION OF SBI
The origin of the State Bank of India goes back to the first decade of the
nineteenth century with the establishment of the Bank of Calcutta in Calcutta on
2 June 1806. Three years later the bank received its charter and was redesigned as the Bank of Bengal (2 January 1809). A unique institution, it was the
first joint-stock bank of British India sponsored by the Government of Bengal. The
Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed
the Bank of Bengal. These three banks remained at the apex of modern banking
in India till their amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence
either as a result of the compulsions of imperial finance or by the felt needs of
local European commerce and were not imposed from outside in an arbitrary
manner to modernise India's economy. Their evolution was, however, shaped by
ideas culled from similar developments in Europe and England, and was
influenced by changes occurring in the structure of both the local trading
environment and those in the relations of the Indian economy to the economy of
Europe and the global economic framework.
CORPORATE BANKING
SBI is a one shop providing financial products / services of a wide range for
large, medium and small customers both domestic and international.
PurposeType
Rupee
of Loan
Pricing
Loans
of
internationally
or
longer
exceptional cases
Export Credits Packing
Postshipment
,Market Determined
Forfaiting
Foreign
Projects
&External
CommercialLIBOR linked
Borrowings(ECBs)
Loans
which
include
Syndicated
loans,
Stand-alone
loans,Buyers'Credit and
Seller's Credit, Bilateral
loans
in
currencies.
all
major
Purpose
Short
Term
CorporateFor
Loans
Pricing
Shoring
Capital,
up
Net
Ongoing
rating
debt,
R&D
expenditure,
implementation of VRS
Securitised
loans-
rentals,
Royalties,
debtors,
Financing-
branches
our PLR
of
import
Credits(LCs),capital
Guarantees,
Guarantees(DPGs)
and
goods
participation
bids,
guarantees etc.
Letter of Comfort
SBI OFFERS:-
goods
Defferredinternational
Payment
of
in- negotiable.
performance
Term Loans
To support capital expenditures for setting up new ventures as also for
expansion, renovation etc.
Lease Finance
An exclusive unit providing one s shopping to Corporates
A dedicated set up specialised in financing of infrastructure and other large
projects
Exclusive set up for handling large ticket leases.
SBI's Prime Lending Rates (PLR) are among the lowest
Presently Bank has two PLR's
SBAR for loans payable on demand and upto one year
SBMTLR for loans payable beyond one year
Robo Silicon Private Limited
Corporate Overview
Robo Silicon Private Limited commenced operations in the year 2001 and is
headquartered in Hyderabad, Andhra Pradesh, India.
Robo Silicon, for the first time in India, introduced manufactured sand. It not
only is the perfect substitute to the precious and fast depleting natural resource river sand, but is also a viable, cost-effective and eco-friendly product. In a very
short span, RoboSand has earned the respect and patronage of leading Industry,
real estate and construction giants in the country. Having weathered initial
resistance a fate common to every innovative idea in a change-resisting
environment, RoboSand has quickly found acceptance and is today preferred
by all quality-conscious construction industry leaders. The pillars of faith stand
firmly on RoboSand because it protects the environment, promotes ethical and
legal construction activities and also eliminates the many disadvantages of using
river sand for purposes of construction. Additionally, using RoboSand in
concrete and masonry results in the substantial saving of cement, thus slashing
construction costs considerably.
Robo Silicon began operations in 2001 by setting up a crushing plant and quarry
in Hyderabad to supply manufactured sand to the construction industry. Robo
was the first in the country to introduce the concept of manufactured sand.
Extensive marketing efforts coupled with the consistent supply made Robosand
a generic name for manufactured sand in the construction industry. At the time of
acquisition,
Robo
Silicon
had
quarries.
With IVFA, Robo has been rapidly expanding across India to locations such as
Vizag, Delhi, Bengaluru, Jamnagar, Pune, Mangalore and Davanagere and is
currently the largest organized player in the stone aggregates industry in India.
Robo Silicon has successfully attracted high quality talent and built a deep
management team. It is in the process of injecting state-of-the-art mining
technologies & processes, which will meet global standards for safety and
environment protection.
Robo Silicon now has a range of construction materials that are collectively
referred to asRoboAggregates - fine and coarse aggregates that confirm to IS
383 specifications. Aggregates are a component of composite materials such 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 (bitumen) for
road works. Aggregates are also used as base material under foundations,
roads, and railroads. To put it differently, aggregates are used as a stable
foundation or road/rail base with predictable, uniform properties (e.g. to help
prevent differential settling under the road or building), or as a vital extender that
binds with more expensive cement.
Identifying a need for Brick and Plaster work, Robo Silicon is proud to
introduce RoboPlast-
blend
of
specific
fine
aggregates
in
0-
Investor Profile
India Value Fund
India Value Fund ('IVF') is a premier private equity investment fund. It has in
excess of US $ 1 Billion (Rupees 40 billion) under management committed by
high quality Indian and international institutional investors and family offices. IVF
makes available financial and intellectual capital to growing middle-market
companies in India.
IVF has invested in promising companies, partnered progress, and has seen
successful exits. In each prudently selected investment, IVF developed resilient
partnerships with management teams based on mutual respect, integrity, and
transparency. This, along with an ability to deliver appropriate support in building
businesses has created great value for all stakeholders.
IVF investments include a diverse range of industries such as healthcare,
retailing, outsourced services, media & entertainment and precision engineering.
availability, price fluctuation etc, have made manufactured sand the perfect
substitute for river sand.
Manufacturing process and its standards:
The sand is manufactured in a three stage crushing process. The raw material is
either granite or basalt rock. The VSI which is also referred as sand making
machine is in the Tertiary Stage. The process adopted is similar to the river sand
generation by nature. The VSI applies the principle of rock on rock collision at a
high velocity shaping the sand particles.
The plant works on the principle of continuous feed in closed circuit and adopts
the technique synonymous and comparable to nature's production of river sand.
The complete manufacturing process takes minutes when compared to the
nature which happens over millions of years.
The product is produced to IS 383 standards.
Process
Our quarrying process typically begins with drilling and blasting the rock into
smaller pieces. Bore holes are drilled in the blast site and filled with explosives.
The blast breaks up the rock into smaller pieces that are loaded and hauled to
the plant.
The plant consists of three circuits namely Primary circuit, Secondary circuit and
Tertiary circuit wherein a three-stage crushing takes place. A 500 mm down size
granite rock that is brought from the quarry via operations which involve (deleted
involves) drilling, blasting, segregation, secondary breaking and transportation
to the plant, is fed into to the Primary Circuit consisting of one Jaw Crusher that
sizes down this granite rock to produce 150mm down size aggregate. This 150
mm down size rock is fed into the Secondary Circuit consisting of one Cone
Crusher to produce a 40 mm down size aggregate which in turn is fed into the
Tertiary Circuit consisting one Vertical Shaft Impactor that produces Sand and
Aggregate
of
the
required
Gradation
&
Shape.
The installed capacity of the plant is 200 TPH (Tons/Hr.) of RoboSand and Robo
shaped Aggregate of 20 mm & 10 mm size.
The Sieve Analysis tests are conducted on RoboSand 20mm and 10mm
everyday on samples collected from conveyor belts, stock piles and loaded
trucks
The following equipment is required and is available at all our plants
Sieve Shaker
Oven
Sampling Cones
All our sales officers are alos trained to carry out these tests at customer
locations
The Vertical Shaft Impactor applies a similar principle of rock-on-rock collusion or
crushing
The sand is classified into four zones as per IS 383 norms
Ans:
FUND BASED
1.TERM LOAN
1. LETTER OF CREDIT
2.WORKNG CAPITAL
2. BANK GUARANTEE
2.What is the fees/nterest charged by the bank for the services offered by
the bank?
Ans:
FEES
INTEREST
1.PROCESSNG FEES
1.CUSTOMER RATING
2.LEGAL FEES
3.ADMINISTRATIVE FEES
OF TOTAL
NUMBER
OF TOTAL
NUMBER
EMPLOYEES
MALES
FEMALES
60
45
15
OF
6.What is the academic background of the staff from the corporate banking
department?
Ans:
DESIGNATION OF THE EMPLOYEES
ACADEMIC BACKGROUND
B.TECH+MBA OR CA OR ICWA
ASSISTANT
MANAGER
DEPUTY
GENERAL
MANAGER
HEAD
(BRANCH MANAGER)
1.What are the different products and services offered under corporate
buying by your banks?
Ans
FUND BASED
1.TERM LOAN
1.LETTER OF CREDIT
2.CORPORATE LOAN
2.BANK GUARNTEE
3.CASH CREDIT
3.TREASURY PRODUCTS
4.WORKING
CAPITAL
LOANS
5.BILL FINANCE
2. What is the fee/ interest charged by the bank for the services offered by
the bank?
Ans:
CORPORATE BANKING SERVICES FEE
RATES
AND
INTEREST
OFFERED
CHARGED
BPLR p.a
L/C
1%p.a
BG
AIR NDIA
31 INFOTECH LIMITED
BOMBAY DYEING
TATA TELECOM
RELIANCE COMMUNICATION
OF TOTAL
NUMBER
OF TOTAL
NUMBER
EMPLOYEES
MALES
FEMALES
60
45
15
OF
6.What is the academic background of the staff from the corporate banking
department?
Ans:
DESIGNATION OF THE EMPLOYEES
ACADEMIC BACKGROUND
B.TECH+MBA OR CA OR ICWA
1.List the bank from when the company avails corporate banking services?
Ans:
NAME OF THE BANKS
SERVICES AVAILED
SBI
LOANS
ICICI
BRIDGE FINANCE
CITI BANK
FOREX TRANSACTIONS
2. What are the fees/interest charged by the bank for the services provided
by them?
Ans:
CORPORATE BANKING SERVICES
FUND BASED
1.RUPEE
PLR-100bps.
2.FOREIGN CURRENCY
3.EXPORT
4.OTHER
55%CONCESSION
TO
NORMAL
SERVICES CHARGES
5.LETTER
OF
CREDIT/BANK
GUARANTEE
Ans:
FUND BENEFITS
NON-FUNDED BENEFITS
LC AND BG AT 55% CONCESSION
volume
of
business
requirements.Each
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.
As far as the corporate are concerned they preffer dealings with a consortium of
banks taking advantages the benefits provided by all the banks. The corporates
convince the banks by provide a huge volume of the business for the concession
given by them.
While getting the questionaire filled it was noticed that the banks were very
skeptical about 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 regulations.
If we look at it from the corporate angle then the banks need to speed up their
procedures and thus enabling fast functioning of the work.It is seen that the
corporates feel that the private banks are rigid in their system and dont make
concessions consedering the urgency of the situation.
According to the banks they need the companies to have credit worthinessand
clean chit on stheir financial records. Hence it is suggested that the company
maintain their financial performance according to the rules and regulations. The
corporates also need to pay off their obligations on time which would help them
to create a good impression on the banks and make it easy for them for future
borrowings.
CONCLUSION