General introduction to wholesale banking

1. SUBJECT : DOMAIN STUDY – BFSI
DIVISION - D
GROUP No. 8
PRATEEK BHAJANKA - 13030241167
SAGAR KUMRA - 13030241195
ASHISH BISHT - 13030241188
ABHINAV PARIHAR -13030241190
SHANTANU RAI - 13030241177
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Operations and Functions of Wholesale Banking

2. • Wholesale banking refers to doing banking business with industrial and business
entities mostly corporates and trading houses, including multinationals, domestic
business houses and prime public sector
• Banks in India have been doing this kind of business traditionally and this
segment of business is also called corporate banking or commercial banking
• As opposed to retail banking which deals with ‘man in the street’, wholesale
banking is the borrowing and lending of funds to other banks, large
multinationals and even government agencies. As a general description it will
cover various money markets
• The concept of wholesale banking is to focus on corporate, i.e. Companies, firms,
proprietorship concerns, Public Sector, Institutions, societies, Trusts and clubs
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What is Wholesale Banking……?

3. • They are a mix of domestic and foreign currency business with international
business accounting for more than half of all the assets and liabilities of
wholesale banks
• The size of both deposits and advances is large which were cheap to process
• The nature of advances was tailor made to each financing problem with a definite
period at a variable interest rate
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Distinguishing Features of Wholesale Banking

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Retail & Wholesale Banking
Retail Bank Wholesale bank
1. It deals with the customer directly 1. It deals with large multinationals
firms, corporates, public sectors, FII and
proprietorship
2. Takes funds from individual and invest
it to small business
2. It takes funds from large business and
invest it back to business
3. There is large volume of low transition 3. There is low volume of large
transaction
4. Services like accepting deposits,
maintain savings, checking account,
provide loan to individual and safety
deposit facility
4. Services like Saving account, Checking
account, loan facility from companies
and business
5. ICICI, PNB etc. 5. E.g. Bank of Baroda, HDFC, ING Vysya
etc.

5. Wholesale banking is the provision of services by banks to organizations such as:
• Mortgage Brokers
• Large corporate clients
• Mid-sized companies
• Real estate developers and investors
• International trade finance businesses
• Institutional customers
• Services offered to other banks or other financial institutions.
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Operations Of Wholesale Banking

6. • Wholesale finance means financial services, which are conducted between
financial services companies and institutions such as banks, insurers, fund
managers, and stockbrokers.
• Modern wholesale banks are engaged in: finance wholesaling, underwriting,
market making, consultancy, mergers and acquisitions, fund management.
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7. Wholesale Banking by Bank of Baroda (BOB):
Under Wholesale Banking, BOB identifies the corporate customers as Large and
Mid corporate
• Large Corporate: Annual sales turnover of over Rs. 500 crores
• Mid Corporate: Annual sales turnover between Rs 100 crores to 500 crores
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Example of Wholesale Banking

8. • Under Wholesale Banking it has been proposed that Large & Mid Corporate
customer of the Bank are located at the identified branches for providing them
better services. By locating the Corporate at the identified branches, they would
have the following advantages.
• Single point contact to cater to all the banking requirements of the Corporates.
• Expeditious decision making and shorter turnaround time.
• Availability of product specialist who can customize existing products as per the
Corporate’s specific requirements & can also develop new products.
• Existence of Core Banking Solution facilities & World-class infrastructure.
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Functions of – Wholesale banking

10. The main functions of commercial banks are accepting deposits from the public
and advancing them loans.
All other functions can be subdivided into:
• 1. Accepting deposits
• 2. Giving loans
• 3. Overdraft
• 4. Discounting of Bills of Exchange
• 5. Investment of Funds
• 6. Agency Functions
• 7. Miscellaneous Functions
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Continued

11. Thank You
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