Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
TERM PAPER
ON
Corporate Banking
Of
ICICI
PGDM (2009-2011)
Guided By Submitted By
Acknowledgement
I owe my special gratitude to Mr. Vinay who gave me her precious time to me
and suggested me how to proceed in the project and who’s valuable guidance
and motivational task which electrifies me time to time completion of my term
paper.
At last but not least, I feel indebted to our almighty God who blessed and enable
me to complete the work. I pray to him for greater success on my path.
INTRODUCTION
ICICI Bank offers corporates a wide range of products and services, the
technologies to leverage them anytime, anywhere and the expertise to
customize them to client-specific requirements.
1.ICICI Bank can guide through the universe of strategic alternatives - from
identifying potential merger or acquisition targets to realigning business' capital
structure.
2.ICICI Bank has been the foremost arrangers of acquisition finance for cross
border transactions and is the preferred financer for acquisitions by Indian
companies in overseas markets.
3.The Bank has also developed Forex risk hedging products for clients after
comprehensive research of the risks a corporate body is exposed to, e.g., Interest
Rate, Forex, Commodity, Credit Risk, etc.
ICICI offers global services through its correspondent banking relationship with
950 foreign banks and maintain a NOSTRO account in 19 currencies to service
better and have strong ties with ones neighboring countries
4.ICICI Bank is the leading collecting bankers to Public & Private Placement/
Mutual Funds/ Capital Gains Bonds issues. Besides, it has products specially
designed for the financial intermediaries to meet their unique requirements.
6.Whatever ones industry, size or financial requirements, ICICI Bank has the
expertise and the solutions to partner all the way.
Collection Solutions
ICICI Bank offers a wide range of collection products to meet the specific
requirements of the clients like local cheque collections, upcountry cheque
collections, cash collections and electronic collections. With a wide network,
customised MIS and multiple channels for delivery of MIS, ICICI Bank
renders quick and effective management of receivables.
Payments
The payment solutions offered by ICICI Bank include bulk disbursement
solutions for making payments to channel partners through multiple modes,
Payable at Par solutions for payment of dividend, interest or for redemption
and Internet-based cheque writing facility for printing of cheques at ones
own premises.
Key features-
Collections
ICICI Bank offers a wide range of collection products to meet the specific
requirements of the clients. The products offered are as follows:
Features
• Wide network coverage of over 670 own locations and over 4200
correspondent bank locations
• Capability to process cheques drawn at any location
• Assured payment on fixed day basis, irrespective of the fate of the
instrument sent in for clearing
• Instrument outstanding report and credits in the pipeline report
available to strengthen internal control
• Multiple channels available for receipt of data including e-mails,
faxes, courier and the Internet
• Prompt realisation of cheques through an extensive network,
supported by correspondent banking relationships
• Availability of information on the amounts deposited at multiple
locations with information available at the instrument level
• Provision of uploading the system generated deposit slip details, in a
single file
• Customised MIS and availability of scan images of instruments at
select locations
Payments
ICICI Bank offers payment solutions that cater to all the requirements of a
corporation. The payment product suite includes bulk disbursement solution
through Integrated Payment System, Internet-based cheque writing which
facilitates printing of instruments at your own office and Payable at Par
solution for payment of dividend, interest and for redemption.
Key Features
Payment solutions of ICICI Bank offered through Integrated Payment
System (IPS) not only offers multiple modes of payment but also facilitates
functional, operational and financial benefits like:
b.Electronic modes include direct credit to ICICI Bank account holders, RTGS and
NEFT
Trade Services
ICICI Bank offers a wide range of trade services designed to meet a range
of short term to medium term trade financing requirements so that company
can seize new business opportunities whenever they arise. Customers can
benefit from our streamlined processes based on a sound technological
backbone that are designed to provide best in class service levels, and
reduce the hassles associated with trade transactions. Whether one is an
importer or exporter, correspondent network of over 900 foreign banks,
and foreign currency Nostro accounts in 21 currencies will ensure that it
meet all ones international / domestic trade requirements.
one can now access ones Trade related information on the web through
Trade MIS. Online Trade MIS Services gives the power to manage
business better by managing the key aspects of trade related banking and
MIS online.
• Limits
• Letter of Credit
a. Import
b. Export
c. CInland
• Bills
a. Import Bills
b. Export Bills
c. Inward Bills
d. Outward Bills
• Bank Guarantees
• Forward Contracts
E-advice
Trade Alerts
Planning for payments and timely action are critical requirements in trade
transactions. To take care of these critical requirements one can take
advantage of the Trade Alerts, specifically designed to provide details of the
transaction falling due or the payments to be made. To ensure that these
alerts are not missed, these are sent through emails. Trade Alerts are sent
out weekly to the email Ids registered for the same. CIB corporate Id is a
prerequisite for getting weekly Trade Alerts.
Process of Registration
A Customer can register for Trade Alerts and E Advices through the
following three modes:
• Phone Banking
• Corporate Internet Banking
• Fill up the Registration form/Request Letter and submit at the branch
ICICI team of Trade Finance experts regularly interacts with customers and
in addition to informing them on the latest developments in Trade Finance,
structure trade finance deals specifically suited to the requirements of the
customers. Its structured trade suite includes prepayment/ pre-export
finance, back-to-back letters of credit, inventory financing, invoice financing,
facilities for intermediaries, structured transactional finance and Export
Credit Agency .
Current Account
Benefits
• Choose an account type that suits your business from the available
variants
• Cheque issued from RCA may be encashed at any of the 700
centres across India
• Allows your customer to deposit cheques into your account from any
ICICI Bank branch
• Speedy reflection of the deposited cheque in your account
Variants
one may choose from the available six variants of the Roaming Current
Account depending on your requirements:
Standard Classic Premium
Gold Gold Plus Platinum
Depending on the services required, you may either maintain the required
Monthly Average Balance (MAB) or pay fees as per the volume and the
services utilised.
Escrow Account
ICICI Bank, extend the trust one has in us by providing with escrow
services for safe custody of assets or for revenue streams. These services
are customised to meet ones needs. Some of the escrow services offered
are in relation to the following:
• Project financing
• Debt repayments
• Sale purchase transactions
• Mergers and acquisitions
Features
Benefits
• Simplified documentation
• Customised transaction structure
• Online tracking of your escrow account
Fixed Deposit
Corporates can invest their surplus funds in fixed deposits for a wide range
of tenures. The minimum deposit amount is Rs.10,000. Other features of
the account are:
Benefits
Structured Products
ICICI Bank has been a pioneer among Indian banks in offering structured
products to corporates, institutions and private banking clients. Such
structured products may be customized to offer a tailor-made exposure to a
specific asset class, viz. interest rates, currency, equity, credit or a
combination of any of the above. These products are available at our IBG
Locations.
Broadly, there are various kinds of structured products that a client may do
based on his underlying requirements and views about the asset class:
above categories
ICICI Bank' Corporate Internet Banking (CIB) is a one stop shop for all
online banking needs. It gives the power to execute critical bank
transactions instantly from ones office locations with no time lags and
hence is an indispensable tool in today's 24 x 7 high-speed business world.
With CIB, one can dramatically cut paperwork and enjoy the triple benefits
of 'efficiency, ease of use and economy'.
MAAG
ICICI Bank's Global Investment Group services you through the entire
length of your project. From advisory and strategising services to
successfully executing profitable deals to handling all the banking
requirements, ICICI Bank provides the support at all stages.
ICICI Bank Edge
ISG is an active player for India linked loans in both the primary and
secondary loan distribution market.
Financial Institution
ICICI Bank services the financial sector for the entire set of banking
requirements and provides a complete range of solutions. The Financial
Institutions and Syndication Group (FISG) is responsible for ICICI Bank's
relationship with the financial sector.
Under this umbrella, the Bank caters exclusively to the needs of
and views with clients, organising the Bank CEOs' Forum, etc.
We provide the following services to our clients:
Transaction Banking
The Bank delivers world class banking services to financial sector clients.
ICICI current roaming accounts empower one with 'Anytime, Anywhere
Banking'. They are designed for convenience. . It provides correspondent
banking tie-ups with foreign banks to assist them in their India-related
businesses.
Loan Syndication
• Project Finance
• Corporate Term Loans
• Working Capital Loans
• Acquisition Finance, etc
Sell Down
Buyouts
Resources
The Bank also raises resources, from clients, for internal use by issuing a
gamut of products, which run from Certificates of Deposit (CDs) to Term
deposits to Term Loans.
Capital Markets
Primary Markets
Collecting Bankers
We are the leading collecting bankers (market leader) to Public/ Rights/
Private Placement/ Mutual Funds/ Capital Gains Bonds issues. ICICI Bank
is the only Bank to cross Rs. 1 trillion Collection. We are the market leader
in IPO Collection with a 34% share and 65% market share in Retail and HNI
Segment.
Secondary Markets
Bank Guarantees
The Bank issues bank guarantees to brokers on both the Capital Market
and Commodity Market segment favoring the NSE/ BSE/ NCDEX/ MCX/
Spot Exchange to meet Security Deposit/ Base Capital and Margin
requirements of the exchanges and Professional Clearing for trading
members clearing their trades through them.
Secured Overdraft
To meet working capital requirements of the brokers on the Capital Market
segment, the Bank provides after thorough credit appraisal secured
overdraft in the form of overdraft against shares.
Intra-day Funding
Intra-day Funding at the Bank's discretion to meet Exchange obligations
(against cheques deposited in clearing or payouts to be received from the
other exchanges) and client.
ICICI Bank offers a complete range of custodial services and ensures high
processing standards, which are ISO 9001:2000 certified.
Services offered are:
• Holding Statement
• Asset Valuation
• Transaction Report
• Bank Statement
• Forthcoming Corporate Actions Report
Derivatives clearing
Core Strengths
Fund Accounting
• Investment Accounting: For all purchases and sales along with the
profit and loss
• Valuation for all securities: Equity, debt, gilt, money mark
instruments, derivatives etc
• Unit Capital Accounting: For recording capital inflows and outflows
from the fund/portfolio
• Income and expense accounting: Daily accruals
• NAV Computation
• MIS and Regulatory Reporting
• Reconciliation: Reconciliation with third parties like registrar, bank or
custodian
• Regulatory reporting
• Insurance Regulatory and Development Authority (IRDA)
• Reserve Bank of India (RBI)
• Securities and Exchange Board of India (SEBI)
Core Strengths
The Structured Finance Group aims to enable its corporate clients access
funds through cost efficient structures. The group's strength lies in its
experience and expertise in providing tailor-made solutions after
understanding the client's requirements.
• Acquisition finance
• Asset-backed finance
• Receivables purchase
• Subordinated debt
• Convertibles / Hybrid instruments
• Non-recourse structures
Leveraging on rich experience and wide reach in the Indian debt markets,
It can provide arranging services for clients interested in securitising their
assets.
It can also provide protection to the client from interest rate / currency
risks for their structured finance exposures through interest rate swaps,
currency swaps and associated derivatives.
Securitisation
Definition and intent
securitisation is a process through which illiquid financial assets are pooled
and repackaged into marketable securities. Generally, the assets to be
securitised are transferred by the asset owner (the originator or transferor)
to a "bankruptcy remote" special purpose vehicle (SPV) as the asset
purchaser. The SPV issues securities to public or private investors, which
are backed (i.e. secured) by cash flows generated by the assets securitised
and sometimes even by the underlying assets themselves. The net
proceeds received from the issuance of the securities are used to pay the
transferor for the assets acquired by the SPV.
The intent of securitisation is to ensure that repayment of the securities
issued to investors is dependent upon the securitised assets and therefore
will not be affected by the insolvency of any other party including the entity
securitising the assets. Most securitisation issues are rated by one or more
accredited rating agencies. The rating applies to the securities that are
issued to investors.
securitisation involves isolation of specific risks, evaluation of the same,
allocating the risks to various participants in the transaction (based on who
is best equipped to handle the respective risks), mitigating some of the risks
through appropriate credit protection mechanisms and pricing the residual
risk borne by the originator. It has emerged as an efficient and cost-
effective resource raising mechanism which integrates the apparently
illiquid underlying assets with the capital markets.
Categories of securitisation
securitisation can be classified into two categories:
Dealer financing
to the same entity. After expiry of the lease / license period the brand could
either revert to the company or be sold to someone else. In the second
option, the loan could be given to the company exclusively for purchasing
the brand/s which would then be mortgaged in the name of the lender.
Export & Packing Credit(EPC) Contract Financing
Corporates are provided assistance to finance the gap between the inflows
and outflows of the contract. Performance guarantees and advance
payment guarantees given on behalf of the client to the Contractor / Owner.
Investment monetisation
This is a product designed to cater to the requirement of the business
groups to streamline the cross-holdings within their own group companies.
A Trust could be set up to acquire the intra-group cross holdings from the
various companies in the group at current market prices. To fund this, the
Trust would issue Pass-through Certificates (PTCs) to the lender. The take-
out could be through a put option provided by the identified holding
company of the group wherein the lender could sell the PTCs to the put
option provider at a pre-determined price on a fixed date. The deal could be
secured through a pledge of shares.
Group structure
PFG is the “One Stop Shop” fulfilling the funding requirements of greenfield
& brownfield projects in infrastructure & manufacturing sector. It comprises
of three sub-groups as follows:
The project finance team of ICICI Bank has developed substantial insight in
the dynamics and trends in the infrastructure sector, having assisted the
Government of India in formulating policies relating to various segments of
the infrastructure sector. The unique insight and understanding thus derived
from the exercise has not only enabled ICICI Bank to provide optimum
solutions to its clients, but has also provided ICICI Bank with an appropriate
decision support for strategic measures, going forward.
Service offerings
Group structure
PFG is the “One Stop Shop” fulfilling the funding requirements of greenfield
& brownfield projects in infrastructure & manufacturing sector. It comprises
of three sub-groups as follows:
The project finance team of ICICI Bank has developed substantial insight in
the dynamics and trends in the infrastructure sector, having assisted the
Government of India in formulating policies relating to various segments of
the infrastructure sector. The unique insight and understanding thus derived
from the exercise has not only enabled ICICI Bank to provide optimum
solutions to its clients, but has also provided ICICI Bank with an appropriate
decision support for strategic measures, going forward.
Service offerings
International Banking
VOSTRO Accounts
Construction
Working Capital
Cash Credit
Bank Guarantee
ICICI Bank's Bank Guarantees (BG) are available to you against minimal
requirements and in the shortest possible time. Bank Guarantees (BG) are
also available in foreign currency for approved purposes as defined under
FEMA.
Educational Institutions
Private or public; primary, secondary or higher education - an educational
institution has unique requirements. And at ICICI Bank we understand that.
ICICI Bank has been working with accredited educational institutes across
India. This experience gives us the edge to advise you for the growth and
expansion of your institution.
Term Loan
• To keep pace with the educational needs of our nation we offer Term
Loans for establishment of additional capacities for existing educational
institutes.
• Term Loans are structured with flexible options of repayment, based
on the needs of the project and offered with competitive prices.
• Foreign currency loans also available.
Pharmaceuticals
Whether it's the challenges of Schedule M or awareness of best practices,
nobody understands the fundamental issues of the pharma business better
than you. Except, perhaps, ICICI Bank. We have the expertise needed to
help you keep pace with the developments in this fast-evolving industry.
Our team of pharma specialists are driven to add value to your business
through focus, innovation and sharing.
Whether you are involved with formulations or APIs – for local or global
markets, what you get is a potent mixture of industry understanding backed
by working capital facilities, forex services and special lending programs
customised for you.
Working Capital
Cash Credit
Information Technology
Advisory Services
Capital Raising
At times for a growing company, the amount of capital that a promoter can infuse
in the business becomes limited. Businesses can be self sufficient for capital
needs in their nascent and initial growth phases. However to meet expansion and
growth plans, external capital is imperative. ICICI Bank, with lending experience,
fully understand this and help clients raise equity to fund growth. It has
developed a strong network of domestic and international investors who are keen
to partner with such success stories in India and these players solicit our advice
for investing into such companies. .