Corporate Banking Services

Supporting corporate growth:

As corporations grow they feel the need to expand and invest in new infrastructure. External finance is one of the most important sources for funding expansion plans. With services ranging from Working Capital Finance, Short Term Corporate Loans, Project Finance to Cash Management and Merchant Banking, Bank of Baroda Corporate Banking offers various options that help fund and enable corporations in their investment and expansion plans. These products also offer merchant banking and cash management solutions. Our global presence, large-scale operability, highly networked systems and local market penetration allow our customers to reap financial benefits to the maximum. Appraisal & Merchant Banking Bank of Baroda provides its assistance to corporate customers to assess the value of their holdings, in syndicating loans and in consultations for Merchant Banking purposes. Appraisal: Bank of Baroda carries out credit and merchant appraisals of all types of business ventures including infrastructure projects by our specialised team of officials at a reasonable cost. Loan Syndication: The bank also assists in loan syndication for all kinds of business ventures when a tie-up of business sources is required. Other Consultations: Our team is highly capable of advising on parameters of feasibility & viability of an existing / proposed project and suggest measures, if required, for improvement of the business enterprise.

Working Capital Finance:

A firm's working capital is the money it has available to meet current obligations (those due in less than a year) and to acquire earning assets. Bank of Baroda offers corporations Working Capital Finance to meet their operating expenses, purchasing inventory, receivables financing, either by direct funding or by issuing letter of credit. Key Benefits Funded facilities, i.e. the bank provides funding and assistance to actually purchase business assets or to meet business expenses. Non-Funded facilities, i.e. the bank can issue letters of credit or can give a guarantee on behalf of the customer to the suppliers, Government Departments for the procurement of goods and services on credit. Available in both Indian as well as Foreign currency. Line of Credit Bank of Baroda understands the needs of its clients. Considering the need of our clients for operational flexibility, Bank of Baroda has introduced a scheme of Line of Credit to enable the clients to switch over between the various working capital facilities sanctioned with relative ease as per their needs compared to the prevalent system of restricting the usage of funds within the maximum limits available within a particular facility only. This system will essentially facilitate medium/large business units in efficient management of their borrowing requirements within the sanctioned Line of Credit facility. Under the Line of Credit, instead of considering/ sanctioning separate limits for Cash Credit (Stocks/Book Debts) and DA LC facilities, a combined limit for Cash Credit (Stocks & Book Debts)-cum-DA LC limit is sanctioned, with a sub-limit for DA-LC facility. The Line of Credit as a product is innovative and unique in the banking industry. Base Rate (per annum) w.e.f. 05.10.2010 8.50% Export Finance Bank of Baroda, being Indias International bank is very active in Export promotion. With the operating network of our own branches/offices in 26 countries and worldwide correspondent relationships, our clients enjoy comforts in transacting international business. Besides the worldclass services, we also provide Export Finance to Exporters at concessive terms to facilitate their competing in the global market.

Our Export Finance is made available at pre shipment and post shipment stage to exporters in various types of credit. Pre-Shipment Finance: Packing Credit in Rupees. Running Packing Credit in Rupees. Packing Credit in Foreign Currency. Letters of credit/Guarantees for procurement of materials for export.

Post-Shipment Finance: Purchase of Export Documents under confirmed order. Discounting of Export documents under L/C or confirmed order. Negotiation of documents under L/C. Post shipment demand Loans against Export Bills sent for collection. Export Bills purchase / discounting in Foreign Currency. Advance against export incentive receivables.

Bill Finance In order to ease the pressures on cash flow and facilitate smooth running of business, Bank of Baroda provides Bill finance facility to its corporate / non corporate clients. Our bill finance facility plugs in the mismatches in the cash flow and relieves the corporates from worries on commitments. Besides the fund based bill finance, we also provide agency services for collection of documentary bills/cheques. In our fund based bill finance facilities, we offer post-sale credit against bills as follows, Purchase of bills drawn under L/C or confirmed order. Discounting of usance bills drawn under L/C or confirmed order. Negotiation of documents under L/C. Purchase of cheques.

Advances Against Shares/IPOs i) Advances against Shares to Individuals:Bank of Baroda has introduced scheme of Advances to individuals against shares for genuine individual investors. The maximum amount of finance that can be granted to an individual is to the extent of Rs.20 lakh, subject to minimum margin stipulation from time to time. ii) Bank Finance to employees to buy shares of their own companies:In view of a number of companies offering Employee Stock Options (ESOPs) and employee quota in their IPOs, Bank of Baroda has introduced scheme to extend finance under ESOP/ IPO to employees to buy shares of their own companies to the extent of 12- months salary of the employee with a maximum of Rs. 10 lacs subject to regulatory guidelines on margin, which is presently as under:Initial Public Offering (IPO) : 50% margin Employees Stock Option Plan (ESOP) : 10% margin. Loan against Future Rent Receivables Loan against Future Rent Receivables has been developed considering the growth potential in the real estate in various metros and urban centers, where many commercial properties/shopping malls are being developed and the owners approach banks for loans against securitization of future rent receivables from such properties. Key Benefits The scope for the New Product has been kept wide to cover the target groups, viz. owners of immoveable properties (lessor) belonging to all types of the constitution. The minimum & maximum loan limits are fixed at Rs. 1.00 lac and Rs. 1000 lac respectively. The lessees can be of any category/constitution, except individuals. Properties involving lessees, who are reputed corporations/institutions/PSUs/Banks/MNCs, may be preferred. Loan under the Scheme can be considered for different purposes, i.e. for all lawful economic activities as also for personal needs of the lessors. However, the facility should not be extended to any speculative purposes. The Scheme provides for flexibility in respect of entering into Tripartite Agreement among the Bank, Borrower and the Tenant, by providing an alternative of obtaining a suitable letter of authority and commitment to pay rent direct to the Bank from the owner of the property and the tenant respectively, at the discretion of the Sanctioning Authority.

Term Finance Under Term Finance, Bank of Baroda, offers the following: Fund Based Finance for capital expenditure / acquisition of fixed assets towards starting / expanding a business or industrial unit or to swap with high cost existing debt from other bank / financial institution. Non-Fund Based Finance in the form of Deferred Payment Guarantee for acquisition of fixed assets towards starting / expanding a business or industrial unit. Short Term Corporate Loan This loan plan takes care of the short-term business exigencies and requirements at competent interest rates. Project Finance Bank of Baroda provides its customers with the option of a loan to take care of the needs of an ongoing project, whether it is in Indian or foreign currency. This facility is available for project finance and also for project exports. Infrastructure Finance Available in Indian as well as foreign currency, this product enables funding for infrastructure projects, such as, Power Generation, Transmission & Distribution, Road Constructions, Construction of Bridges on the Road / Railway Lines, Air/ Sea Port-Development Activities, Telecom, Water Supply System, Urban Development etc. Take Over of Accounts Bank of Baroda provides the facility to high rated corporate/Non corporate to transfer /take over their existing borrowal accounts from other FIs/Banks, subject to meeting certain criteria. With this facility clients can shift their banking transactions to Bank of Baroda and enjoy the worldclass services of Indias international bank. The take over of accounts would be strictly on merits and under discretion of the bank. Non Fund Based Products & Services Bank of Baroda offers non fund based products to its clients as follows :Letter of Credit : We offer import as well as domestic Letter of Credit facility to our clients for procurement of goods on DA/DP basis as per their needs at very competitive rates. Considering our international network of branches / offices coupled with worldwide correspondent relationship arrangements, our clients enjoy market acceptability and comfort in business deals.

Bank Guarantee : We offer Bank Guarantee facility to our clients guaranteeing their performance / financial obligations in the domestic as well as international market. LC Advising / Confirming Services : In case of Letters of Credit received by our clients, we offer LC advising as well as LC confirmation services under our correspondent relationships with domestic as well as international banks. Co-acceptance facilities : Sometimes in business deals on credit basis, buyers are required to offer adequate comforts to the sellers such as bank guarantee or co-acceptance of bills by the bankers. Bank of Baroda offers co-acceptance of bills facility to the top rated clients. Bancassurance : Bank of Baroda has tie-up arrangement with National Insurance Company (NIC), under which we arrange for issuance of general insurance policies to our clients thereby taking away their worries of timely and adequate insurance cover of the assets. Solvency Certificate : We provide Solvency Certificate to our clients in case it is required for providing to Government authorities, other corporates in business deals / bids etc. Credit Reports : We provide Credit Reports on our clients to other banks/FIs and we also obtain Credit information required by our clients on their counter parties, through our correspondent relationship.

Cash Management & Remittances Bank of Baroda Cash Reach: A product that enables electronic transfers/ cash remittances at designated bank branches through a specialised network of branches. This facilitates the availability of funds and credits in your account on the same day. Dial Bank of Baroda: Bank of Baroda also offers 24 hours tele-banking service through landline/ mobile phones, facilitating the following: Balance Enquiry, An Enquiry into the last 5 transactions, and, Bank statements on fax for the last 2 months. Remittances and Collections:

The bank provides remittance & collection facilities at market-competitive rates / fees. For bulk / long-term requirements, the rates / fees are negotiable so as to add more value for the Business Enterprises/Corporations.

PNBS Services:

Loan against Future Lease Rentals PNB has introduced a new scheme for property owners having their property situated in Metro/Urban/ Semi Urban/rural centres and who have let out such properties. Eligibility Property Owners having their properties situated in metro, urban, semi-urban and rural areas who have leased out such properties to the following: (i) Public Sector Undertakings / Govt. / Semi / State Govt. & reputed corporates, Banks, Financial Institutions, Insurance Companies and Multinational Companies. (ii) Reputed private schools/colleges (approved by/affiliated to State Board/University/ AICTE/ any other govt. body). (iii) Reputed private hospitals/ nursing homes. Nature & Extent of loan Remaining period of the lease Quantum of Loan (Maximum upto following %age of the future lease rentals receivable for unexpired period of lease) Upto 3 years 80 Beyond 3 years & upto 5 years Beyond 5 years & Upto 7 years Beyond 7 years & Upto 10 years 70 65 55

Branches while financing under the scheme should ensure that the TDS, wherever applicable have been taken into account. Security Assignment of lease rentals. Equitable mortgage of the leased property or any other immovable property:In case of loans having repayment period upto 5 years, the amount of loan should not exceed the value of the property mortgaged. In case of loans having repayment period beyond 5 years, the amount of loan should not exceed 75% of the value of the property mortgaged.

Exim Finance

A BENEFIT TO EXPORTERS & IMPORTERS

Services offered to Exporters Pre-shipment finance in foreign currency and Indian rupees Post-shipment finance in foreign currency and Indian rupees Handling export bills on collection basis Outward remittances for purposes as permitted under Exchange Control guidelines Inward remittances including advance payments Quoting of competitive rates for transactions Maintenance of Exchange Earners Foreign Currency (EEFC) accounts Assistance in obtaining credit reports on overseas parties Forfeiting for medium term export receivables

Services offered to Importers Establishment of Import Letters of Credit covering import into India and handling of bills under Letter of Credit Handling of import bills on collection basis Remittance of advance payment against imports Offering utilisation of PCFC ( pre-shipment credit in foreign currency) for imports Credit reports on overseas suppliers Interest rates in respect of Export Credit Exchange Earners Foreign Currency (EEFC) Deposits Scheme

The Exchange Earners Foreign Currency (EEFC) Deposits Scheme was started by RBI in the year 1992 with the introduction of Liberalised Exchange Rate Management System. Under this scheme, the recipient of inward remittances, exporters and other eligible bodies are allowed to keep a portion of their inward remittances / export proceeds in foreign currency with the banks in India which can later be utilised for permissible purposes. PNB sets up connectivity with the Customs Deptt. for the benefit of exporters/importers To provide efficient service to our importer/exporter clients, PNB has set up connectivity with the Customs Department to facilitate payment of custom duty and receipt of duty draw back by the importer/exporter clients through the electronic media. Under this system of Electronic Data Interchange (EDI), Custom Authorities process the shipping bills and also effect on line payment of duty draw back for exporters. Further, they undertake processing of Bill of Entry and deposit of custom duty for imports. This is a pilot project in the country successfully implemented at Indira Gandhi International Airport, Custom House branch of PNB.

Cash Management Services

Punjab National Bank had taken a major initiative for managing the funds of Corporates. The services are essentially meant for pooling your funds spread across the country at a place of your choice with the least time delay, if not instantaneously in many cases. We shall collect your receivables from your representative or your business associates at more than 2700 CBS branches spread across 935 centers all over the country and pool the same at the branch specified by you. The services can be custom designed to cater to your specific needs. The Scheme offers the following options for you: Option I : Instant credit through our CMS to your account, pending clearance of funds. Option II: Credit to your account through our CMS after realizations. Option III : You can choose Option I or II according to your client profile and indicate to us client-wise.

A host of Daily/weekly/monthly reports and special report including center-wise reports generated at our HUB at Delhi, can be sent you through electronic media as per requirements of your funds Managers. The Bank offers the above services at most competitive rates. The charges for the services are given as under: (Charges in paisa/Rs. 1000) For Metro locations (metropolitan cities) 25 paisa. For Non-metro locations (state capitals & District HQs) For Remote locations (all other locations) 90 paisa.

50 paisa.

In case your turnover crosses certain assured level we offer attractive discounts on the above charges ranging from 20% to over 76%. For example, if your annual turnover of collection exceeds Rs. 250 crores at Chennai (a metro location), the charges shall be just 06 paisa per 1000/-.

PNB EXPO GOLD CARD FOR EXPORTERS

Punjab National Bank has formulated Gold Card Scheme for its exporter clients based on the scheme drawn up by Reserve Bank of India. The scheme proposes to ensure easy availability of export credit on best terms to credit worthy exporters with good track record. The card to be offered by PNB will be known as PNB Expo Gold Card. The salient features of the scheme are as under: -

Eligibility under the Scheme Exporters with minimum rating of BB as per risk rating module or A based on seven pricing parameters will be eligible under this scheme. Exporters whose accounts have been classified as Standard continuously for a period of three years and there are no irregularities/adverse features in the conduct of the accounts will be considered. The scheme will not be applicable to those exporters who are blacklisted by ECGC or included in RBIs defaulters list/caution list or making losses for the past 3 years or having overdue export bills in excess of 10 per cent of the current years turnover. In order to recognize exporters undertaking exports on collection basis, it has been decided that they will also be considered for grant of PNB Expo Gold Card under the above scheme provided they have been dealing with our bank for a period of atleast three years.

Fixation of Credit Limit In-principle limits will be sanctioned for a period of three years with a provision for automatic renewal under this scheme subject to fulfilment of the terms and conditions of sanction. Efforts will be made to meet PCFC requirements of the Gold Card holders by giving them priority over non-export borrowers. Bank will also consider providing foreign currency term loans to Gold Card Holders on priority basis. The maximum time frame for disposal of applications received for sanction of export credit under the scheme will be as under: For disposal of fresh applications 25 days Renewal/ Review of limits 15 days Sanction of ad hoc limits 07 days

A stand-by limit of 20% of the assessed limit can be additionally made available to meet urgent credit needs of Gold Card Holders. It has been decided that Gold Card Holders will submit their request for sanction/renewal of credit limits in the simplified application form (enclosed). The performance of the exporters is to be reviewed on yearly basis vis--vis their projections with a view to decide whether benefits of better terms and conditions given to Gold Card Holder are to be continued/amended/withdrawn.

Rate of Interest/Service Charges

Relaxation in interest rates up to 0.25% on rupee export credit based on the credit ratings of the exporters. The concessional rate of interest applicable upto 90 days on post-shipment rupee export credit will be extended up to 365 days. Bank will offer discount of 10% in charges and fee structure for various services/transactions. Export credit in foreign currency will be provided on priority basis at LIBOR + 0.75% per annum with service charges at the flat rate of 0.1% for each disbursement. Bank will also consider providing foreign currency term loans to these exporters on priority basis. Tenure The card will be issued for 3 years and will be renewed automatically for a further period of 3 years unless there are adverse features/irregularities in the account. Further, bank will have right to recall the card at any time in case of any misuse of the card or observance of any violation of the terms and conditions.