Chapter 1

INTRODUCTION Corporate finance is an area of finance dealing with financial decisions business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value
[1]

while managing the firm's

financial risks. Although it is in principle different from managerial finance which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms. The discipline can be divided into long-term and short-term decisions and techniques. Capital investment decisions are long-term choices about which projects receive investment, whether to finance that investment with equity or debt, and when or whether to pay dividends to shareholders. On the other hand, the short term decisions can be grouped under the heading "Working capital management". This subject deals with the short-term balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending (such as the terms on credit extended to customers). The terms corporate finance and corporate financier are also associated with investment banking. The typical role of an investment bank is to evaluate the company's financial needs and raise the appropriate type of capital that best fits those needs.

Corporate banking is a part of commercial banking but the part that average depositor with deposits account never sees. It is a division of commercial banking which extends the financial support to the corporate for helping them achieve their organizational goals and objectives. While banks hold money and mortgages, lend money, extend or open up a line of credit for the average depositors, it is business that needs major financial services to build plant, erect buildings, make structural improvements on old ones and

start new business ventures. This is one of the most competitive, risky and financially lucrative areas of doing business in todays world.

Commercial loans were the earliest form of lending banks did in their move than 2000 year old history. Later in the 20th century finance companies, insurance firms, and thrift institutions entered the business lending field. Today loan officers skilled in evaluating the credit of businesses are usually among the most experienced and highest paid people in the financial services field, along with security underwriters.

As a part of commercial banking, corporate banking is focused on analyzing and assessing the risk of the business, establishing the creditworthiness of the business and trying to predict the likelihood of success or failure of business endeavour. These are the professionals who help decide what business initiatives will be taken and when, whether or not to expand the existing businesses, help develop new markets so that new clients can be found and help develop new products for e-commerce, the internet and the international markets. 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 multinationals corporations. Services include access to commercial banking products, including working capital facilities such as domestic and international trade operations and funding, channel financing, and overdrafts, as well as domestic and international payments, INR term loans (including external commercial borrowings in foreign currency), letters of guarantee etc. The Investment Banking and Markets division of various bank brings together the advisory and financing, equity securities, asset management, treasury and capital markets, and private equity activities to complete the CIBM structure and provide a complete range of financial products to our clients. Increasingly, ECA financing is being

considered by customers and we work closely with our project export finance teams, both onshore and offshore, to provide structured solutions. The Corporate Bank in India was ranked 2nd overall in the 2004 Greenwich Survey. This portfolio is largely spread within 9 sector teams divided as under :

Consumer Brands Industrials Energy and Utilities Telecommunications Automotive Healthcare Transport and Logistics Metals and Mining Media.

objective of study : This project is basically on corporate banking therefore we had to know about corporate banking section of ICICI bank . ICICI bank has different products which they offer to government departments so that they can get an edge over other banks. The study was made in order to get contracts from these departments and to know the competitors of the bank and to know

In this project I have studied about CSIR four departments and few other departments and basically there working and the main aim of study is to get contract of corporate banking products of icici banks that are used by all these departments to work properly .

Relevance of the study : This study helped me to get a through knowledge about different central departments and there working as well as there banking and financial needs . As I did internship from ICICI bank corporate banking section therefore I had a glimpse of corporate banking and its products

chapter 2

AN OVERVIEW ON BANKING INDUSTRY In recent years, the banking industry around the world has been undergoing a rapid transformation. In India also, the wave of deregulation of early 1990s has created heightened competition and greater risk for banks and other financial intermediaries. The cross-border flows and entry of new players and products have forced banks to adjust the product-mix and undertake rapid changes in their processes and operations to remain competitive. The deepening of technology has facilitated better tracking and fulfillment of commitments, multiple delivery channels for customers and faster resolution of miscoordinations. Unlike in the past, the banks today are market driven and market responsive. The top concern in the mind of every bank's CEO is increasing or at least maintaining the market share in every line of business against the backdrop of heightened competition. With the entry of new players and multiple channels, customers (both corporate and retail) have become more discerning and less "loyal" to banks. This makes it imperative that banks provide best possible products and services to ensure customer satisfaction. To address the challenge of retention of customers, there have been active efforts in the banking circles to switch over to customer-centric business model. The success of such a model depends upon the approach adopted by banks with respect to customer data management and customer relationship management. Over the years, Indian banks have expanded to cover a large geographic & functional area to meet the developmental needs. They have been managing a world of information about customers - their profiles, location, etc. They have a close relationship with their customers and a good knowledge of their needs, requirements and cash positions. Though this offers them a unique advantage, they face a fundamental problem.

During the period of planned economic development, the bank products were bought in India and not sold. What our banks, especially those in the public sector lack are the marketing attitude. Marketing is a customer-oriented operation. What is needed is the effort on their part to improve their service image and exploit their large customer information base effectively to communicate product availability. Achieving customer focus requires leveraging existing customer information to gain a deeper insight into the relationship a customer has with the institution, and improving customer service-related processes so that the services are quick, error free and convenient for the customers. Furthermore, banks need to have very strong in-house research and market intelligence units in order to face the future challenges of competition, especially customer retention. Marketing is a question of demand (customers) and supply (financial products & services, customer services through various delivery channels). Both demand and supply have to be understood in the context of geographic locations and competitor analysis to undertake focused marketing (advertising) efforts. Focusing on regionspecific campaigns rather than national media campaigns would be a better strategy for a diverse country like India. Customer-centricity also implies increasing investment in technology. Throughout much of the last decade, banks world-over have re-engineered their organizations to improve efficiency and move customers to lower cost, automated channels, such as ATMs and online banking. As is proved by the experience, banks are now realizing that one of their best assets for building profitable customer relationships especially in a developing country like India is the branch-branches are in fact a key channel for customer retention and profit growth in rural and semi-urban set up. However, to maximize the value of this resource, our banks need to transform their branches from transaction processing centers into customer-centric service centers. This transformation would help them achieve bottom line business benefits by retaining the most profitable customers. Branches could also be used to inform and educate customers about other, more efficient channels, to advise on and sell new financial instruments like consumer loans, insurance products, mutual fund products, etc.

There is a growing realization among Indian banks that it no longer pays to have a "transaction-based" operating model. There are active efforts to develop a relationshiporiented model of operations focusing on customer-centric services. The biggest challenge our banks face today is to establish customer intimacy without which all other efforts towards operational excellence are meaningless. The banks need to ensure through their services that the customers come back to them. This is because a major chunk of income for most of the banks comes from existing customers, rather than from new customers. Customer relationship management (CRM) solutions, if implemented and integrated correctly, can help significantly in improving customer satisfaction levels. Data warehousing can help in providing better transaction experiences for customers over different transaction channels. This is because data warehousing helps bring all the transactions coming from different channels under the same roof. Data mining helps banks analyse and measure customer transaction patterns and behaviour. This can help a lot in improving service levels. It must be noted, however, that customer-centric banking also involves many risks. The banking industry world over is being thrust into a wild new world of privacy controversy. The banks need to set up serious governance systems for privacy risk management. It must be remembered that customer privacy issues threaten to compromise the use of information technology which is at the very center of e-commerce and customer relationship management - two areas which are crucial for banks' future.

The critical issue for banks is that they will not be able to safeguard customer privacy completely without undermining the most exciting innovations in banking. These innovations promise huge benefits, both for customers and providers. But to capture them, financial services companies and their customers will have to make some critical tradeoffs. When the stakes are so high, nothing can be left to chance, which is why banks must immediately begin developing comprehensive approaches to the privacy issue.

The customer centric business models based on the applications of information technology are sustainable only if the banks protect client confidentiality in the process which is the basic foundation of banking business.

EMERGENCE OF CORPORATE BANKING IN INDIA

The bank lending has expanded in a number of emerging market economies, especially in Asia and Latin America, in recent years. Bank credit to the private sector, in real terms, was rising at a high rate. Several factors have contributed to the significant rise in bank lending in emerging economies such as strong growth, excess liquidity in banking systems reflecting easier global and domestic monetary conditions, and substantial bank restructuring. The recent surge in bank lending has been associated with important changes on the asset side of banks balance sheet. First, credit to the business sector - historically the most important component of banks assets has been weak, while the share of the household sector has increased sharply in several countries. Second, banks investments in Government securities increased sharply until 2004-05. As a result, commercial banks continue to hold a very large part of their

domestic assets in the form of Government securities - a process that seems to have begun in the mid-1990s.

There has been a sharp pick up in bank credit in India in recent years. The rate of growth in bank credit which touched a low of 14.4 per cent in 2002-03, accelerated to more than 30.0 per cent in 2004-05, the rate which was maintained in 2005-06. The upturn in the growth rate of bank credit can be attributed to several factors. One, macroeconomic performance of the economy turned robust with GDP growth rates hovering between 7.5 per cent and 8.5 per cent during the last few years. Two, the hardening of sovereign yields from the second half of 2003-04 forced banks to readjust their assets portfolio by shifting from investments to advances. While the share of gross advances in total assets of commercial banks grew from 45.0 per cent to 54.7 per cent that of investments declined from 41.6 per cent to 32.1 per cent in the last few years.

However, the credit growth has been broad-based making banks less vulnerable to credit concentration risk. The declining trend of priority sector loans in 2001-02 in the credit book of banks was due to prudential write offs and compromise settlements of a large number of small accounts which was reversed from 2002-03 on the strength of a spurt in the housing loan portfolio of banks. Even though credit to industry and other sectors have also picked up, their share in total loans has declined marginally. Retail loans, which witnessed a growth of over 40.0 per cent in 2004-05 and again in 2005-06, have been the prime driver of the credit growth in recent years. Retail loans as a percentage of gross advances increased from 22.0 per cent in March 2004 to 25.5 per cent in March 2006. The cyclical uptrend in the economy along with the concomitant recovery in the business climate brings with it improved abilities of the debtors to service loans, thereby greatly improving banks asset quality. Despite the sharp rise in credit growth in recent years, not only the proportional levels of gross non-performing loans (NPLs) have declined, but the absolute levels of gross NPLs declined significantly. Several factors have contributed to the marked improvement in the Indian

banks asset quality. One, banks have gradually improved their risk management practices and introduced more vigorous systems and scoring models for identifying credit risks. Two, a favourable macroeconomic environment in recent years has also meant that many entities and units of traditionally problematic industries are now performing better. Three, diversification of credit base with increased focus on retail loans, which generally have low delinquency rates, has also contributed to the more favourable credit risk profile. Four, several institutional measures have been put in place to recover the NPAs. These include Debt Recovery Tribunals (DRTs), Lok Adalats (peoples courts), Asset Reconstruction Companies (ARCs) and corporate debt restructuring mechanism (CDRM). In particular, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 for enforcement of security interest without intervention of the courts has provided more negotiating power to the banks for resolving bad debts.

History of icici bank

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. Bank has diversified itself in various other fields like insurance sector and all has given it much wider scope to rule.

ICICI BANK limited is and Indian diversified financial services company headquartered in Mumbai Maharashtra .It is second largest bank in India by assets and third largest by market capitalization. A bank has a network of 2630 branches and 8003 ATMs in India, and has its presence in 19 countries including India. The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited.icici bank has various subsidiaries. ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28 billion (US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the nine months ended December 31, 2009. The Bank has a network of 1,654 branches and about 4,883 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain,

Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.

Corporate Profile

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28 billion (US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the

nine months ended December 31, 2009. The Bank has a network of 1,645 branches and about 4,883 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. UK subsidiary has established branches in Belgium and Germany.

ICICI Lombard ICICI Prudential Life Insurance Company Limited ICICI Securities Limited ICICI Prudential Asset Management Company Limited ICICI Venture ICICI Home Finance ICICI direct.com ICICI Foundation

It provides various services to all types of customers personal banking privilege banking wealth management global private clients NRI banking corporate banking Business Banking.

CORPORATE BANKING AT ICICI BANK meaning of corporate banking A company's financial dealings with an institution that provides business loans, credit, savings and checking accounts specifically for companies and not for individuals. Business banking is also known as commercial banking and occurs when a bank, or division of a bank, only deals with businesses. A bank that deals mainly with individuals is generally called a retail bank, while a bank that deals with capital markets is known as an investment bank. Corporate Banking means Financing to corporate institutions which has been declared as Corporate entity. Corporate banking is basically division of government banking. In past investment banking and retail banking were different banking entities but after amendment of the act banking act of 1933 this manipulation was made that a particular bank can have both retail as well as corporate banking this means that a commercial bank can be investment bank also. corporate banking is basically financial services offered to corporations such as cash management, underwriting ,financing issuing of stocks or bonds,and other financial instruments . financial institutions often maintain specific divisions for handling the needs of corporate clients, separate from consumer or retail banking activities for individual accounts.

Escrow Account At ICICI Bank they extend the trust the customers have in them by providing them with escrow services for safe custody of assets or for revenue streams. These services are customised to meet the customers needs. Some of the escrow services offered are in relation to the following: Project financing Debt repayments

Sale purchase transactions Mergers and acquisitions

Features Specialised and dedicated services Risk reduction in new relationships Security towards contingencies Mandatory in certain transactions

Benefits Simplified documentation Customised transaction structure Online tracking of your escrow account

ICICI bank working and its customers are divided into two part wholesale and retail division. Technologically advanced, convenient and prompt banking services are integral to any business. ICICI Bank delivers world-class banking services to the financial sector. From anytime, anywhere banking to comprehensive collection and payment services network. wholesale includes SMEAG ,corporate banking ,government banking , ETRG ,mmg (MID Market ) bank segregates all these divisions according to its turnover of different organizations like SMEAG- less than 50 cr

corporate banking more than 50 cr ETRG less than 5 cr midmarket- 5 to 10 cr

products offered by ICICI bank to coporate : Letter of credit Vendor payments E tendering Fixed deposits Salary accounts Biometric cards Payment gateway

1 )Letter of credit A letter of credit is a document that a financial institution or similar party issues to a seller of goods or services which provides that the issuer will pay the seller for goods or services the seller delivers to a third-party buyer. The issuer then seeks reimbursement from the buyer or from the buyer's bank. The document serves essentially as a guarantee to the seller that it will be paid by the issuer of the letter of credit regardless of whether the buyer ultimately fails to pay. In this way, the risk that the buyer will fail to pay is transferred from the seller to the letter of credit's issuer. Letters of credit are used primarily in international trade for large transactions between a supplier in one country and a customer in another.

Participants in LC Process

Buyer Issuing Bank Advising Bank Seller (Beneficiary)

9 Steps in the Letter of Credit Process Buyer and seller agree to terms including means of transport, period of credit offered (if any), and latest date of shipment acceptable. Buyer applies to bank for issue of letter of credit. Bank will evaluate buyer's credit standing, and may require cash cover and/or reduction of other lending limits. Issuing bank issues LC, sending it to the Advising bank by airmail or electronic means such as telex or SWIFT. Advising bank establishes authenticity of the letter of credit using signature books or test codes, then informs seller (beneficiary). Seller should now check that LC matches commercial agreement and that all its terms and conditions can be satisfied.

Seller ships the goods, then assembles the documents called for in the LC (invoice, transport document, etc.). The Advising bank checks the documents against the LC. If the documents are compliant, the bank pays the seller and forwards the documents to the Issuing bank.

The Issuing bank now checks the documents itself. If they are in order, it reimburses the seller's bank immediately. The Issuing bank debits the buyer and releases the documents (including transport document), so the buyer can claim the goods from the carrier.

we can explain about letter of credit from the example that if there are two parties buyer and seller in a contract and they want to sign a contract and if buyer is from India and seller is in abroad then if he places and order and seller wants to supply him goods then both can contact there banks and if buyer has to trasact from ICICI bank and seller trasacts from sum other bank then buyer can instruct its bank to issue letter of credit so that his bank will act as a guarantee

and will make payment on behalf of the buyer so that seller is not in fear that his money is paid and he is not in losses . There are many types of letter of credit

Confirmed Letter of Credit Revocable and Irrevocable Letter of Credit sight LC future or credit LC

1)confirmed letter of credit -A Letter of Credit is always sent by the Buyers bank to the Sellers Bank or any bank that is becomes an advising bank. Normally the Sellers bank becomes an advising bank when a normal LC is received and it delivers or advises the buyer regarding the receipt of LC with no responsibility towards it. In case of a Confirmed LC, the Sellers bank checks out the authentication of the LC from the Buyers bank and confirms to stand responsible for negotiating, collecting payment from the Buyers bank and making payment to the seller in line with the terms and conditions stipulated in the LC. By adding confirmation to the LC, the Sellers bank too becomes equally responsible to make payment for the transaction under the LC.

Revocable and Irrevocable Letter of Credit Normally the Letter of Credits issued is irrevocable, which means that no single party can unilaterally make any changes to the LC, unless it is mutually agreeable to both the parties involved. However an LC is said to be revocable if the terms allow any one single party to be able to make changes to the LC unilaterally.

However it is in the interest of the buyer that he should always insist on irrevocable Letter of Credit.

Sight LC When the LC is opened, stipulating the condition that, on presentation of the negotiable set of shipping document by the seller as per the terms of the LC are made, the buyers bank will make payment at sight meaning immediately to the sellers bank subject to fulfillment of terms and conditions of the LC being fulfilled, the LC is called Sight LC.

Future or Credit LC Revocable and Irrevocable Letter of Credit Normally the Letter of Credits issued is irrevocable, which means that no single party can unilaterally make any changes to the LC, unless it is mutually agreeable to both the parties involved. However an LC is said to be revocable if the terms allow any one single party to be able to make changes to the LC unilaterally.

However it is in the interest of the buyer that he should always insist on irrevocable Letter of Credit.

Sight LC When the LC is opened, stipulating the condition that, on presentation of the negotiable set of shipping document by the seller as per the terms of the LC are made, the buyers bank will make payment at sight meaning immediately to the sellers bank subject to fulfillment of terms and conditions of the LC being fulfilled, the LC is called Sight LC.

Future or Credit LC If the payment schedule under the said LC stipulates payment at certain future dates after presentation of negotiable set of shipping documents by the Seller and fulfilling the LC terms and conditions, such an LC is termed Future LC or Credit LC. It is quite normal for sellers to extend credit of 30 days to 60 days under LCs. However the shipping documents would have to be presented to the bank immediately so that they documents reach the buyer well ahead in time before the consignment reaches the foreign shores and the buyer is able to clear the consignment and take delivery like if seller makes 100% payment to seller then it is different type in which 100% payment is made in current account 100% payment is made in fixed deposits 50% payments 0% payments bank basically avoids last two types of LC it is more interested in above two as it gets profit from that two.

2)vendor payments

Vendor financing Vendor financing can be structured as a direct line of credit to the vendors specifically to be used for supplies to the company or as a revolving line for discounting bills raised by the vendors on the company. The former can be integrated into the Internet banking model of ICICI Bank and a web-based vendor financing structure can be created. The web-based structure would offer the company the convenience of operating the credit line of the vendors for making payments through the net immediately after accepting goods. Vendor financing programs can be set up for specific vendors recommended by the company. Through the widespread branch network of ICICI Bank, the program can include vendors at multiple locations. vendor payments means how these organizations do payments to there vendors from whom they take raw materials for there working in day to day as well as big contracts. vendor payments are made in many forms cheque cash online RTGS Demand draft

if the vendor is paid through cheques then cheques are to be of the bank and in proper format so that no chances of cheque dishonoring is less. cash payments cash payments are basically those transactions that are made through cash are avoided in government departments as well as others because there is no proof of them that the vendor is paid or not .

online transactions

A customer having personal Internet access must register with

the institution for the service, and set up some password (under various names) for customer verification. The password for online banking is normally not the same as for telephone banking. Financial institutions now routinely allocate customer numbers (also under various names), whether or not customers intend to access their online banking facility. Customer numbers are normally not the same as account numbers, because a number of accounts can be linked to the one customer number. The customer will link to the customer number any of those accounts which the customer controls, which may be cheque, savings, loan, credit card and other accounts. To access online banking, the customer would go to the financial institution's website, and enter the online banking facility using the customer number and password. Some financial institutions have set up additional security steps for access, but there is no consistency to the approach adopted. these are also possible nowdays earlier it was not possible because of lack of technology but now all the banks are adopting this method for doing transactions

3)RTGS real time gross settlement systems (RTGS) are funds transfer systems where transfer of money or securities takes place from one bank to another on a "real time" and on "gross" basis. Settlement in "real time" means payment transaction is not subjected to any waiting period. The acronym RTGS stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a real time and on gross basis. This is the fastest possible money transfer system through the banking channel. Settlement in real time means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. Gross settlement means the transaction is settled on

one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable. time taken is really less in comparison to other transfer . Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary's account within two hours of receiving the funds transfer message. 4)ETendering :

5)Fixed deposits: fixed deposits is product that is used by corporate banking of icici bank as it is very beneficial as it is safe ,flexible ,and much returns are there. ICICI banks fixed deposits are designed to suit any investment plan .Its maturity period ranges from 7 days to 10 years. FD can be opened for minimum of Rs 10000/- and partial withdrawal is also permitted . the benefits of FD that is given by ICICI bank is they have nomination facility .and the interest is compounded quarterly and reinvested with principal amount . Corporates can invest their surplus funds in fixed deposits for a wide range of tenures. Other features of the account are:

Funding through a debit to the operative account/cheque for clearing While interest is compounded quarterly, payment of interest is quarterly, monthly or on maturity Interest payouts can be through credit to your account or through banker's cheque

Benefits Wide range of tenures Choice of investment plans Partial withdrawal permitted Availability of auto-renewal facility

6)Biometric cards:

7)Payment Gateway:

STRUCTURE OF CREDIT LENDING (CORPORATE) IN INDIA:

Banks, finance companies, and competing business lenders grant many different types of commercial loans. Among the most widely used forms of business credit are the following:

SHORT-TERM BUSINESS LOANS: Self-liquidating inventory loans Working capital loans Interim construction financing Security dealer financing Retailer and equipment financing Asset-based loans (accounts receivable financing, factoring, and inventory financing) Syndicated loans

LONG-TERM BUSINESS LOANS: Term loans to support the purchase of equipment, rolling stock, and structures Revolving credit financing Project loans Loans to support acquisitions of others business firms

SHORT-TERM LOANS TO BUSINESS FIRMS:

Self-Liquidating Inventory Loans

Historically, commercial banks have been the leaders in extending short term credit to businesses. These loans were used to finance the purchase of inventory, raw materials or finished goods to sell. In this case the term of the loan begins when cash in needed to purchase inventory and ends when cash is available in the firms account to write the lender a check for the balance of its loan.

Working Capital Loans

Working capital loans provide businesses with short run credit, lasting from few days to about one year. Working capital loans are most often used to fund the purchase of inventories in order to put goods on shelves or to purchase raw materials; thus, they come closest to the traditional self-liquidating loan described previously.

Frequently, the working capital loan is designed to cover seasonal peaks in the business customers production levels and credit needs. Normally, working capital loans are secured by accounts receivable or by pledges of inventory and carry a floating interest rate on the amounts actually borrowed against the approved credit line. A commitment fee is charged on the unused portion of the credit line and sometimes on the entire amount of funds made available.

Interim Construction Financing

A popular form of secured short term lending is the interim construction loan, used to support the construction of homes, apartments, office buildings, shopping centers, and other permanent structures. The finance is used while the construction is going on but once the construction phase is over, this short term loan usually is paid off with a longer term mortgage loan issued by another lender, such as insurance company of pension fund. Recently, some commercial banks have issued minipermanent loans, providing funding for construction and the early operation of a project for as long as five to seven years.

Retailer and Equipment Financing

Banks support installment purchases of automobiles, appliances, furniture, business equipment, and other durable goods by financing the receivables that dealers selling these goods take on when they write installment contracts to cover customer purchases. In turn, these contracts are reviewed by banks and other lending institutions with whom the dealers have established credit relationships. If they meet acceptable credit standards, the contracts are purchased by lenders at an interest rate that varies with the risk level of each borrower, the quality of collateral pledged, and the term of each loan.

Asset-Based Financing

An increasing portion of short-term lending by banks and other lenders in recent years has consisted of asset based loans, credit secured by the shorter term assets of a firm that are expected to roll over into cash in the future. Key business assets used for many of these loans are accounts receivables and inventories of raw materials or finished

goods. The lender commits funs against a specific percentage of the book value of outstanding credit accounts or against inventory.

In most loans collateralized by accounts receivable and inventory, the borrowing firm retains title to the assets pledged, but sometimes title is passed to the lender, which then assumes the risk that some of those assets will not pay out as expected. The most common example of this arrangement is factoring, where the bank actually takes on the responsibility of collecting the accounts receivable of one of its business customers. It typically assesses a higher discount rate and lends a smaller fraction of the book value of the customers accounts receivable because the lender incurs both additional expense and additional risk with a factored loan.

Syndicated Loan

A type of large corporate loan that is increasingly used today is the syndicated loan. This is typically a loan or loan package extended to a corporation by a group of banks and other institutional lenders. These loans may be drawn by the borrowing company, with the funds used to support business operations or commercial expansion, or undrawn, serving as lines of credit to back a security issue or other venture. Banks engage in syndicated loans both to spread the heavy risk exposures of these large loans, often involving hundreds of lakhs or crore of rupees in credit for each loan, and to earn fee income.

LONG-TERM LOANS TO BUSINESS FIRMS:

Term Business Loans

Term loans are designed to fund long and medium term business investments, such as the purchase of equipment or the construction of physical facilities, covering a period longer than one year. Usually the borrowing firm applies for a lump sum loan based on the budgeted cost of its proposed project and then pledges to repay the loan in a series of installments.

Term loans normally are secured by fixed assets e.g. Plant and Equipment owned by the borrower and may carry either a fixed or a floating interest rate. That rate is normally higher than on shorter term business loans due to the lenders greater risk exposure from such loans.

Revolving Credit Financing

A revolving credit line allows a business customer to borrow up to a pre specified limit, repay all or a portion of the borrowing, and re borrows as necessary until the credit line matures. One of the most flexible of all the forms of business loans, revolving credit is often granted without specific collateral to secure the loan and may be short term or caver a period as long as three, four, or five years. This form of business financing is particularly popular when the customer is highly uncertain about the timing of future cash flows or about the exact magnitude of the future borrowings needs.

Loan commitments are usually of two types namely, 1. Formal Loan Commitment, and 2. Confirmed Credit Line.

Formal Loan Commitment is a contractual promise to lend to a customer up to a maximum amount of money at a set interest rate or rate markup over the prevailing base loan rate. Whereas, Confirmed Credit Line is a looser form of loan commitment where the banks indicate its approval of customers request for credit in an emergency, though the prices of such a credit line may not be set in advance and the customer may have little intention to draw upon the credit line.

Long-Term Project Loans

The most risky of all business loans are project loans, credit to finance the construction of fixed assets designed to generate a flow of revenue in future periods. Prominent examples include oil refineries, pipelines, mines, power plants and harbor facilities. Project loans are usually granted to several companies jointly sponsoring a large project.

Project loans may be granted on a recourse basis, in which the lender can recover funds from the sponsoring companies if the project does not pay out as planned. At the other end, loan may be extended on a non recourse basis, in which no sponsor guarantees; the project stands or falls on its own merits. Many such loans require that the projects sponsors pledge enough of their own capital to see the project through to completion.

Term Loan / Deferred Payment Guarantees

In case of term loans and deferred payment guarantees, the project report is obtained from the customer, who may have been compiled in-house or by a firm or consultants/ merchant bankers.

Term loan is provided to support capital expenditures for setting up new ventures as also for expansion, renovation etc.

The technical feasibility and economic viability is vetted by the Bank and wherever it is felt necessary.

Banks normally expects at least 20% contribution of Promoters contribution. But the promoter contribution may vary largely in mega projects. Therefore, there cannot be a definitive benchmark.

The sanctioning authority will have the necessary discretion to permit deviations.

TECHNOLOGY IN BANKING

Technology will bring fundamental shift in the functioning of banks. It would not only help them bring improvements in their internal functioning but also enable them to provide better customer service. Technology will break all boundaries and encourage cross border banking business. Banks would have to undertake extensive Business Process Re-Engineering and tackle issues like a) how best to deliver products and

services to customers b) designing an appropriate organizational model to fully capture the benefits of technology and business process changes brought about. c) how to exploit technology for deriving economies of scale and how to create cost efficiencies, and d) how to create a customer - centric operation model.

Entry of ATMs has changed the profile of front offices in bank branches. Customers no longer need to visit branches for their day to day banking transactions like cash deposits, withdrawals, cheque collection, balance enquiry etc. E-banking and Internet banking have opened new avenues in convenience banking. Internet banking has also led to reduction in transaction costs for banks to about a tenth of branch banking. Technology solutions would make flow of information much faster, more accurate and enable quicker analysis of data received. This would make the decision making process faster and more efficient. For the Banks, this would also enable development of appraisal and monitoring tools which would make credit management much more effective. The result would be a definite reduction in transaction costs, the benefits of which would be shared between banks and customers. While application of technology would help banks reduce their operating costs in the long run, the initial investments would be sizeable. With greater use of technology solutions, we expect IT spending of Indian banking system to go up significantly. One area where the banking system can reduce the investment costs in technology applications is by sharing of facilities. We are already seeing banks coming together to share ATM Networks. Similarly, in the coming years, we expect to see banks and FIs coming together to share facilities in the area of payment and settlement, back office processing, data warehousing, etc. While dealing with technology, banks will have to deal with attendant operational risks. This would be a critical area the Bank management will have to deal with in future Payment and Settlement system is the backbone of any financial market place.

The present Payment and Settlement systems such as Structured Financial Messaging System (SFMS), Centralised Funds Management System (CFMS), Centralized Funds Transfer System (CFTS) and Real Time Gross Settlement System (RTGS) will undergo further fine-tuning to meet international standards. Needless to add, necessary security checks and controls will have to be in place. In this regard, Institutions such as IDRBT will have a greater role to play.

An overview of these departments working that is essential in order to know its financial and banking needs so that bank can get enter in order to offer there products. overview basically consists of :company profile ,working and banking needs.

COUNCIL OF SCIENTIFIC AND INDUSTRIAL RESEARCH CSIR basically includes four main departments in lucknow CDRI-Central Drug Research Institute. IITR-Indian Institute of Toxicology Research. NBRI-National Botanical Research Institute. CIMAP-Central institute of Medicinal and Aromatic plants

CDRI Company profile : Central Drug Research Institute is one of the first and few laboratories that were established in India right after its independence. CDRI is among the thirty eight laboratories that are functioning under the aegis of the council of scientific and Industrial Research (CSIR) of India headed by the Prime Minister of the nation as its president. CDRI was formally inaugurated on 17th Feb 1951 by the then Prime Minister of India, Pandit Jawahar Lal Nehru. CDRI is considered to be a pioneer research organization in the field of biomedical research where all the infrastructure and expertise are available to develop a drug right from its concept to market. The very latest techniques and methodologies are employed for developing drugs, diagnostics and vaccines.

CDRI is a multidisciplinary research laboratory, employing scientific personnel from various areas of biomedical sciences. For administrative and scientific purposes the Institute's manpower has been grouped into 17 R & D divisions and few divisions providing technical and scientific support. The following divisions of CDRI are involved in research and development .and these are various departments that CDRI contains.

Biochemistry Botany Drug target discovery and development Clinical and experimental and medicine Endocrinology Farmentation Technology Microbiology molecular and structural biology parasitology pharmaceutics Toxicology

MISSION: To strengthen and advance the field of drug research .

Working :CDRI gets its funds from CSIR which gets its funds from central government basically in CDRI research work is done on medicines therefore firstly they take extracts from plants and then sents that to chemistry division which experiments that thing to make different medicines to cure diseases that is sent to be tested in laboratories then the medicine which is made after all things is tested on various animals to see the reaction of medicine before giving it to human being. Basically in all this work CDRI

needs different equipments in order to work properly therefore it is important for them to get funds and get business to run such a big institute. therefore it gets funds and after that it earns other revenues from students and all who come to do phd and all. and various other modes of payment are there for CDRI functioning.

Under CDRI 1200 to 1500 employees work and most of them are young scientists and others are PhD scholars who come here to get knowledge about the medicines and there own field.

CLIENTS OF CDRI CDRI focuses on developing New Drugs, Diagnostics and Vaccines and state-ofthe-art technologies for clients in India and abroad and associated fundamental research. We look forward to have close commercial relationship with Pharmaceutical Industry and other R & D .Organizations involved in the area of biomedical Research. Our collaborative relations will go a long way in developing a strong drug research base in the country and in making India a stronghold in biomedical research opportunities. We offer collaborative as well as contract commercial opportunities in following areas.

Banking and financial needs: Banking needs of CDRI are fulfilled by State bank of India that is borne by central government funds of CDRI are provided by central government . The bank has its own branch in the campus of CDRI and it works from there only and fulfills all the requirement like employees salary account s, fixed deposites,and other financial instruments that all the departments requires.

IITR-INDIAN INSTITUTE OF TOXICOLOGY RESEARCH

Indian Institute of Toxicology Research (formerly, Industrial Toxicology Research Centre), Lucknow, a constituent laboratory of Council of Scientific & Industrial Research, was established in 1965. This multidisciplinary research institute with the motto Safety to Environment and Health and Service to Industry addresses problems critical to human health and environment. IITR is a NABL accredited laboratory for biological and chemical testing. IITR undertakes research in niche areas of toxicology. These include the impact of industrial and environmental chemicals on human health and ecosystem, and environmental monitoring of pollutants in air, water and soil. The institute also helps regulatory bodies to formulate/amend guidelines for safe use of chemicals/products, and ensures that the common man is benefited. The motto of the laboratory is "Safety to Environment & Health and Service to Industry". MISSION: IITR, a leader in toxicology research, endeavors to mitigate problems of human health and environment. The institute aims to accomplish its goals through the following objectives: 1)Safety evaluation of chemicals used in industry, agriculture and everyday life. 2)Mode of action of toxic chemicals/pollutants. 3)Remedial/preventive measures to safeguard health and environment from pollutants. 4)Occupational health hazards due to exposure in chemicals industries, mines, agricultural fields and environment. 5)Simple/rapid diagnostic tests for disorders caused by industrial and environmental chemicals

6)Collect, store and disseminate information on toxic chemicals. 7)Human resource development for dealing with industrial and environmental problems. 8) Provide a platform to public and entrepreneurs to address queries and concerns regarding safety/toxicity of chemicals, additives and products.

Working : Basically IITR deals in toxicology therefore they test that substances are toxic or not . To consolidate the research and development activities of the institute and to focus on niche areas, Research Council has approved the following five groups:

Nanomaterial Toxicology Environmental Toxicology Food, Drug & Chemical Toxicology Regulatory Toxicology Systems Toxicology & Health Risk Assessment

IITR with the help of CSIR gets different projects so that it can accumulate funds central government sactions the amount according to budget then this is planned by CSIR as how they can use it . NBRI

The CSIR National botanical research institute is one of the most important constituent research institute of CSIR . Earlier it was under national botanical gardens but later on it was taken over by CSIR .

Objectives of this institute :

1. Basic and applied research on plant diversity and prospection, plant-environment interaction and biotechnological approches for plant improvement. 2. Development of technologies for new plant and microbial sources of commercial importance . 3. Building up germplasm repository of plants of indigenous and exotic origin, including rare, endangered and threatened species. 4. Providing expertise and assistance for identification, supply and exchange of plants and propagules, garden layout and landscaping . 5. Dissemination of scientific knowledge and technologies on plants and microbial resources through publications, training, capacity building and extension activities.

CIMAP Central Institute of Medicinal and Aromatic Plants, popularly known as CIMAP, is a frontier plant research laboratory of Council of Scientific and Industrial Research (CSIR). Established originally as Central Indian Medicinal Plants Organisation (CIMPO) in 1959, CIMAP is steering multidisciplinary high quality research in biological and chemical sciences and extending technologies and services to the farmers and

entrepreneurs of medicinal and aromatic plants (MAPs) with its research headquarter at Lucknow and Research Centres at Bangalore, Hyderabad, Pantnagar and Purara. CIMAP Research Centres are aptly situated in different agro-climatic zones of the country to facilitate multi-location field trials and research. CIMAP is a unique lab of its kind in the entire globe, way ahead of its time even at the time of its establishment. A little more than 50 years since its inception, today, CIMAP has extended its wings overseas with scientific collaboration agreements with Malaysia. CSIR-CIMAP has signed two agreements to promote bilateral cooperation between India and Malaysia in research, development and commercialization of MAP related technologies. Central Institute of Medicinal & Aromatic Plants (CIMAP) possesses highly qualified and experienced scientists in the area of Agriculture, Biology and Chemistry of Medicinal and Aromatic Plants (MAPs). CIMAPs contribution to the Indian economy through its MAPs research is well known. Mint varieties released and agro-packages developed and popularized by CIMAP has made India the global leader in mints and related industrial products. CIMAP has released several varieties of the MAPs, their complete agro-technology and post harvest packages which have revolutionized MAPs cultivation and business scenario of the country.

ICICI BANK TRADE FINANCE

meaning of trade finance An exporter requires an importer to prepay for goods shipped. The importer naturally wants to reduce risk by asking the exporter to document that the goods have been shipped. The importers bank assists by providing a letter of credit to the exporter (or the exporter's bank) providing for payment upon presentation of certain documents, such as a bill of lading. The exporter's bank may make a loan to the exporter on the basis of the export contract. A typical service offering from a bank will include:

Letters of credit (LC), import bills for collection, shipping guarantees, import financing, performance bonds, export LC advising, LC safekeeping, LC confirmation, LC checking and negotiation, pre-shipment export finance, export bills for collections, invoice financing, and all the relevant document preparation.

some more departments that are under central government :Rail vikas nigam limited

Government of India has conceived a massive investment plan for rail sector to eliminate capacity bottlenecks on Golden Quadrilateral and Diagonals to provide strategic rail communication links to ports, construction of mega bridges for improving communication to the hinterland and development of multi-modal transport corridors.

Rail Vikas Nigam Limited (RVNL), is a Special Purpose Vehicle created to undertake project development, mobilization of financial resources and implement projects pertaining to strengthening of Golden Quadrilateral and Port Connectivity. It is the first major non-budgetary initiative for creating rail transport capacity ahead of demand and on a commercial format. RVNL has been registered as a company under Companies Act 1956 on 24.1.2003.

Indian Railway network particularly High Density Network, which connects the four Metro Cities of Delhi, Kolkata, Chennai & Mumbai including the diagonals is over saturated. Challenges of higher economic growth require leap forward capacity development strategy on Indian Railways. Paradigms of such a strategy required a shift from dependence on purely budgetary sources and internal surplus of Railways to mobilization of non-budgetary financial resources from private sector, banks, financial institutions, multilateral and bilateral agencies through a mix of equity and debt. The financial resources available from the traditional sources were found to be grossly inadequate to meet the requirement. The Ministry of Railways, therefore, had been considering various innovative methods of project distribution and creation of assets. Another paradigm shift required was to change from project mode of planning to programme mode to be implemented in a time bound manner. It was felt that the Railways instead of becoming the bottleneck in economic growth of the country should spur economic growth by development of capacity ahead of demand. It required fast track implementation of projects adopting established practice of financial closure and use of modern project management techniques. For this, adequate and uninterrupted flow of funds is a prime requirement. It also required mechanization of construction involving large number of construction machines and equipments of varied nature and skill sets of altogether different kind. Creation of Rail Vikas Nigam Limited is an outcome of the above thought process and policy initiative.

objectives

To undertake and execute successfully the project development pertaining to Strengthening of Golden Quadrilateral, Port and Hinterland connectivity and other viable Railway projects.

To mobilize financial and human resources for project implementation. Timely execution of projects. To maintain a cost effective organizational set up. To encourage public private participation in rail related projects managed by RVNL. To be an infrastructure Project Management Company committed to sustainable development and environment friendly construction of rail related projects in the country.

To acquire, purchase, license, concession or assign rail infrastructure assets including contractual rights and obligations.

RDSO RDSO is the sole R&D organisation of Indian Railways and functions as the technical advisor to Railway Board Zonal Railways and Production Units and performs the following important functions :

Development of new and improved designs. Development,adoption, absorption of new technology for use on Indian Railways. Development of standards for materials and products specially needed by Indian Railways. Technicalinvestigation, statutory clearances, testing and providing consultancy services.

Inspection of critical and safety items of rolling stock,locomotives,signalling & telecommunication equipment and track components. RDSO multifarious activities have also attracted attention of railway and nonrailway organisations in India and abroad.

GEOLOGICAL SURVEY OF INDIA The Geological Survey of India (GSI), the second oldest survey in the country was established in I85l with the singular aim to locate coal for the railways. GSI over the years has expanded its role to undertake elucidation of the geological set up of the country, including assessment and regional level exploration for coal and other mineral resources, inputs to engineering projects, geotechnical studies, geo-environment and Geological Survey of India has been providing authentic natural hazards, glaciology, seism tectonics etc., precise and detailed geoscientific information for more than 155 years to the government, industry and public. GSIs name is synonymous with high quality geological mapping and mineral exploration expertise. GSI offers a wide range of products for all categories of users from multithematic maps, atlases, unpublished project reports to various publications highlighting major geological research and finds.

BIRBAL SAHANI INSTITUTE OF PALAOBOTANY

The Birbal Sahni Institute of Palaeobotany, established in the year 1946, was an outcome of vision of Prof. Birbal Sahni, is an autonomous Institute under the Department of Science and Technology, Government of India, New Delhi, dedicated to both fundamental and applied aspects of plant fossil research. This world renowned center of excellence has been pursuing researches on Archaean to recent sequences. An integrated and multidisciplinary approach is practiced to make Palaeobotany more relevant in the 21st century.

The science of palaeobotany deals with study of past plant relics found in sedimentary rocks.

the Birbal Sahni Institute of Palaeobotany (BSIP), an autonomous institute under the Department of Science and Technology, is carrying out researches with a commitment to ensure growth in fundamental and applied aspects of Palaeobotany and allied Earth System Sciences, especially focusing on past plant life and palaeoclimate

DEFINING A BANK IN 2010 The scenario commercial banks face today differs greatly from that of the past. Diversification among sub industries is defining an environment where banks compete with other financial-service companies to provide mutually exclusive products and

services to the same customers. Traditional branch banking is under the threat of new competitors and technological innovation, leading some analysts to wonder whether banks are dying. Most likely what is dying is the old-fashioned concept of the bank and a new scenario is emerging. Banks are changing as economic markets integrate, providing opportunities for diversification. Only 15 to 20 years ago, most Western banks generated 90% of revenue from interest income. Now this percentage has fallen to 60%, sometimes as low as 40%. New sources of income, such as fee-based income from investment services and derivatives, are becoming increasingly relevant for the income statements of commercial banks. During the same period, the pattern of banking activities has changed through interactions with the developing security markets. The well-known phenomenon of disintermediation that has taken place in all Western countries since the 1970s has progressively reduced the monopoly of banks over the collection of savings from customers. This has created much tougher competition among financial service companies and has forced banks to find new and diversified sources of income. The traditional core business of commercial banks has been retail and corporate banking. As retail and corporate banking become less and less profitable, banks are diversifying into new businesses to stop the decline of profits. Investment banking, for example, is estimated to be worth US$14 million, with an annual growth rate of about 14% up to 2010. Derivative based earnings for larger commercial banks now account for about 15 to 20% of the total earnings. The drawback is that volatility of earnings has dramatically increased. The management of these new types of risktypically, market risk and credit risk on traded assetsrequires competence and expertise. Hence, the risk profile of commercial banks is changing as a consequence of diversification. Capital markets are playing a key role in defining the bank of the twenty-first century, but they are also making banks riskier. In fact, with a few exceptions, AAA ratings for banks have disappeared and consequently the importance of market risk management is being emphasized. Future competition will not be played in the classic retail banking industry that, at least in continental Europe (but not in the United Kingdom), is only slightly profitable. Global competition will take place in asset management and investment

banking. Not casually, huge U.S. investment banks are merging among themselves and with asset management firms. Alliances and takeovers are occurring also on a transatlantic basis, confirming the global characters of these two sub industries (the most related to global capital markets). The following trends are affecting the banking industry and most likely will shape the competition in the next several years: The market share for financial services that banks hold is declining, while securities firms, mutual funds, and finance companies are getting a growing share of available customers. In the United States, the share of total assets held by banks and other depository institutions relative to all financial intermediaries fell from 56% in 1982 to 42% in 1991, and this downward tendency is likely to continue. Banks will face growing competition from financial service companies and nonbank firms. Disintermediation is making traditional banking less and less necessary, leading to consolidation. The natural shrinkage of the market share held by commercial banks started this process in the past decade, but it has dramatically accelerated in the past few years because of global competition. To remain competitive, commercial banks will have to exploit new sources of income: Offering new services (selling mutual funds or insurance policies).Charging customers with noninterest fees. Offering new services through the phone and the web, Entering into joint ventures with independent companies, Entering new geographic markets yielding higher returns. Banks will need more expertise to manage new sources of risk. Market risk management models must become an integral part of a banks risk management culture.

chapter 3 RESEARCH METHODOLOGY

STATEMENT OF PROBLEM: The study was made in order to get leads for corporate banking of ICICI bank from central governments various department .In todays world corporate banking has to face various challenges because of so much competition by other banks also .

NEED FOR THE STUDY :The study was specifically made in order to get knowledge that how ICICI bank can get in for there corporate banking products and other contracts

OBJECTIVE OF THE STUDY: The study was made basically to get leads for icici bank and to enter into new contracts . To get knowledge about various competitors in the market. To get glimpse of what future contracts can be made so that the product can be offered to that department. So that ICICI bank can get into central government departments and fetch business from them.. To analyse various aspects of there business and there working .

RESEARCH DESIGN : A research design is the arrangement of the condition for collection and analysis of data. Actually it is the blueprint of the research project. The research type is descriptive research. The main objective of this design is search primary and secondary data The research design basically is of primary data that is descriptive type .

DATA COLLECTION :The data was collected by asking questions from asking different questions from accounts department officials and then asking from the head of accounts and finance department. TOOLS: focus interviews with accounts and finance department head and asking questions and pitching for different products. and comparing there present products with our products so that they can get the difference .

chapter 3

ANALYSIS
BANKING AND FINANCIAL ANALYSIS OF DIFFERENT PRODUCTS OF THE BANK CDRI : The banking needs of CDRI are met by state bank of India. The different products that are offered by state bank of India are in competition with products of ICICI bank .The branch of SBI offers certain special privilege to these departments so that they can easily enter into these departments as they have privilege over other private banks because SBI is itself a government bank so it has hand above other private banks . They give different services and special rebates to employees working in this department.The finance and accounts officer Mr. A.k Dwivedi .gave us information about all the needs of this departments and how they are fulfilled.When I pitched in for our products and told about advantages of our bank over SBI interested for letter of credit contract. We can have detailed analysis about the corporate banking products that they are using from sbi and why they dont deal in other banks . vendor payments :All the vendor payments of CDRI are done online if the payment is made in bulk its online while small party payments are made by cheques. letter of credit : letter of credit they have 100 % payment that is done in advance and they are provided LC by SBI within 7 days therefore it is much long time to do payments. They do approximately 20 cr LC mostly . employees salary a/c:CDRI has its employees salary accounts in that branch of SBI only in which is there in there campus of CDRI .They give 0.2% rebate to employees if they transact from there SBI. then he seemed

Fixed deposits :The employees of CDRI get 2% rebate on FD if they are employees of CDRI and if they have account in that bank. RTGS :The transactions are also made in RTGS form they do most of there payments in this form only as well as online . CDRI was interested in taking LC from our bank as when we told about our fast services they seemed interested so they said that we should fix meeting to discuss about products the products that we are offering and how they are advantageous to them .This all information about there banking and financial needs helped us to pitch in our product and to know from which side we can get in .

IITR:This department does its banking from state bank as well but it has also involved other banks .as they had some issues with state bank of India therefore this seemed a golden opportunity for icici bank to get in. Banks involved in the transactions of the this department are state bank of India ,union bank of India . Vendor payments : As there are instructions by central government therefore this department has to comply to the needs of government as they have to deal only in government banks only Therefore they have to do all there banking from state bank of India only through cheques as the government has said that minimum use of cheques should be there there minimum use of cheques are there and RTGS as well as online transactions are done.somtimes they make payments to BSNL from cheques instead from online payments. E-tendering : E tendering is not done in this department but they have open tenders which they open to other banks so as to give other government banks a chance to get contracts. electricity departments and

Fixed deposits:The FD of IITR are done in simple process they invite open tender invitations and quotations are invited but only from government banking as central vigilance has given strict instructions from them Normally from union bank they deal except SBI for there work .

employees salary a/c : They also have there salary account in sbi bank only as they have also have sbi for all there small transactions in there own office area. Therefore its compulsion for them to do the transactions from this bank only. Letter of credit: They were basically dealing with SBI bank but they were facing difficulty from SBI bank because sbi didnt even took authorization from IITR before doing any transactions therefore the reconciliation didnt matched and without information the money was deducted from the account therefore this was the problem therefore IITR started taking LC from union bank of India . The above information was collected from Mr. Bhattacharya as well Finance and accounts officer Mr. B K Mishra .

NBRI :The transactions are done mainly from SBI only as they have been instructed to to do there banking from government banks only. but then also some tenders are also there in which they sent open invitation to all the banks therefore information was essential to get contracts of this department by ICICI bank.

vendor payments :This departments basically does all the transactions in online mode And above 10 lakh payments are done through RTGS that are directly debited from NIFT while other payments are made online.

Employees salary a/c : The salary accounts are in SBI of all the employees that are transferable to any other bank branch also .As this department has 400 employees therefore salary accounts are in this branch only. letter of credit : LC are done from the main branch of the bank so it takes 7 to 8 days to do one payment .LC are mainly done in January ,February , march . Therefore they are not involved much in LC all the months but mostly these months. The total budget of this department 5 to 6 cr . Few payments are made through Demand draft .

E Tendering: Tenders are invited and Two bid system is done technical bid is also allowed .No E tendering tendering . Mr satish Chandra shukla Finance and accounts officer in this department to whom we met and he gave us all this information about banking needs of this department . is done . local agents are called for foreign customers

CIMAP: We met Mr C S KANDPAL accounts officer of CIMAP department as well as purachase officer he gave us much information about the banking needs of this

department and he arranged meeting with our AGM and his director so that we can get contract of this department vendor payment: They basically do all these payments through RTGS and if payment Is above 10 lakh then authorization letter is required from this department by bank . SBI online services are taken as they are considered to be good in comparison to other government banks.

letter of credit : They have basically requirement of 3 to 4 cr of LC which is provided by sbi from its main branch and not from all the branches .It takes almost 10 days to main LC by sbi and this is much time because of this time is wasted .

salary accounts :The bank gives 0.2% rebate to employees of this department. and they give benefit to pensioners also through SBI . provident fund accounts are maintained by headquarters of this department. fixed deposits : This department has its FD s in our bank only they have deposited about 2 cr in ICICI bank hazaratganj branch .

Birbal sahani institute of pale botany: This is autonomous department

and it has

done its agreement from Indian overseas bank .that they have to do all there transactions from this bank only .Breach of contract is not possible . We met Mr N B Tiwari accounts officer of this department he told us information about the financial needs of this department. Salary accounts employees salary accounts are made in Indian overseas bank only as the bank is in the office area of the department. Vendor payments: All the payments are made in cheques only and cash transactions are avoided as they have to give all the proofs for the payments. They do these transactions from different other banks as well like state bank of Travancore., State bank of India , Indian overseas bank , central bank of India. Letter of credit: Letter of credit is also made from IOB with 100% payment or 90% payment and 10 % is kept for installation.

fixed deposit : Only 5% is given to private organization investment committee is there and it takes decision about the investment .The conclusion drawn was as they have signed a contract they cant go against that and do trasactions from other banks

rail vikas nigam ltd The department is mainly into construction activities related to railways .The main banker to this organization is Axis bank .RVNL is currently setting up the office in lucknow.At present accounts part is handled centrally .They are doing two projects in the state of UP . The turnover is Rs15000Mn.

Basically this department is autonomous body therefore it has all its working from Delhi head quarters and all banking needs are provided from there only therefore Axis bank is the bank from which all needs are fulfilled from there only. Mr D K singh told us that they can get good services by switching from axis bank to icici bank.

salary accounts: The employees have there salary accounts in axis bank so we can pitch for our services and efficient services in comparison to axis bank .

IRCON :This organization is engaged in various construction activities mainly in the sector of Railways.The office is currently engaged in a project which is Electrification of lucknow. The project in UP is about Rs 6000Mn .

salary accounts :Indian overseas bank

RDSO : salary accounts : This department has all its salary accounts in SBI bank only .This department has power for only withdrawal and it cant deposit any thing therefore this department has no power to invest and make FD and any other deposits.

Letter of credit: It has its letter of credit in SBI as well as PNB as it is central government department therefore government banks are only involved and international clients are there It takes 6 days to make letter of credit. from SBI bank and PNB also takes this much time.

Vendor payment : vendor payments are made online and through cash . and no cheques are accepted as it has to comply to the government rules of minimum use of cheques.

Geological survey of India:The department is mainly involved in testing of soils in various parts of country for excavation of mineral reserves. UCO bank is the in house bank for this organization and is present in all the locations in India in GSI.UCO bank currently enjoys the status of no competition here. All the payments are taken carre by their Pay and account office.The GSI a/c department raises a requirement to the pay and account office and funds are realesed as per availability of budget. turnover :for north region Rs 1800 Mn is the turnover. Letter of credit: They take LC opening from UCO bank. ICICI bank explored the

possibility of LC opening at the organization but they have received the mandate from the ministry itself to the bank with UCO bank. vendor payments : All the vendor payments are also made online .They have some problem with LC as well as vendor payments therefore we have to pitch to that so that we can get the contract from this department. We asked questions from Mr P K Majumdar cost a/c officer.He seemed to be interested in our proposal.for Letter of credit.

COMPARATIVE ANALYSIS OF SBI AND ICICI

recoomendation and suggestions

conclusion