INDUSTRY AWARENESS
TITLE: CORPORATE BANKING
REPORT SUBMITTED BY:
SECTION –D GROUP 2
Anshul Seth IPM2011014
Deepti Singh IPM2011019
Karan Dev 2014PGP155
Pedhambkar Sameer Sanjay IPM2011065
Pragya Pathak IPM2011068
Rahul Shrivastava 2014PGP283
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EXECUTIVE SUMMARY
This report provides a holistic view of Corporate Banking. It starts with the comparison between
the two broad divisions of banking – Retail and Corporate. The various functions of a Corporate
Bank have been explained in detail. This is followed by an account of some of the latest events
surrounding the sector.
The report also examines the significant impact of the usage of technology in the banking sector.
The analysts’ views pertaining to growth and profitability of the various firms have been
depicted with the help of suitable graphs and tables.
The products and services offered by the prominent players in the Corporate Banking sector have
been elucidated. The report also provides a comparative analysis of the financial data of
respective players.
The salient features of the Union Budget with respect to the Banking and Financial Services
sector have been included in this report. Analysis of the implications of the various regulations
and policies associated with the Corporate Banking sector, including the much significant Basel
III Capital Regulation has been carried out.
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Table of Contents
1 INDUSTRY PROFILE…………………………………………………………………………………………………..…...4
1.1 Overview:……………………………………………………………………………………………………….….…….…4
1.1.1 Retail Banking………………………………………………………………………………………….….…….…4
1.1.2 Corporate Banking………………………………………………………………………………………….……..5
1.2 Recent News in the Corporate Banking Sector…………………………………………………..….…….…...8
1.3 Technological Trends and Major Innovations…………………………………………………….….…….……9
1.4 Analysts’ Views of the Industry………………………………………………………………………….….….……9
1.4.1 Growth………………………………………………………………………………………………………….….….9
1.4.2 Profitability………………………………………………………………………………………………..….……10
2 PLAYER’S PROFILE……………………………………………………………………………………………….……...12
2.1 Indian Banks……………………………………………………………………………………………………..…….…12
2.1.1 ING Vysya Bank……………………………………………………………………………………….….……..12
2.1.2 ICICI Bank…………………………………………………………………………………..….…….….…….…12
2.1.3 HDFC Bank………………………………………………………………………………………….….…….…..12
2.2 Foreign Banks………………………………………………………………………………………………………..…..12
2.2.1 Citigroup……………………………………………………………………………………………………..….….12
3 MACROECONOMIC PROFILE……………………………………………………………………………………..…13
3.1 Regulations and Policy Changes……………………………………………………………………………..….…13
3.2 Impact of Union Budget 2014……………………………………………………………………………………....14
3.3 Impact of International Regulations………………………………………………………………………..….….15
4 References……………………………………………………………………………………………………….…….….…….17
5 Table of Figures………………………………………………………………………………………………………………..18
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1INDUSTRY PROFILE
1.1 Overview:
Broadly, banking can be classified into two basic divisions – Retail Banking and Corporate
Banking.
Figure 1: Divisions of Banking
(Source: www.rbi.org.in, n.d.)
1.1.1 Retail Banking
As defined in Investopedia, “Retail Banking refers to the division of a bank that deals directly
with retail customers. Also known as ‘Consumer Banking’ or ‘Personal Banking’, retail banking
is the visible face of banking to the general public, with bank branches located in abundance in
most major cities. Customer deposits garnered by retail banking represent an extremely
important source of funding for most banks.” Some of the important products and services
provided by retail banks are:-
Checking and savings accounts
Mortgages on residential and investment properties
Automobile financing
Credit cards
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Foreign currency and remittance services
1.1.2 Corporate Banking
Investopedia explains Corporate Banking, also known as ‘Business Banking’, “as that aspect of
banking which deals with corporate customers. Corporate banking is a key profit center for most
banks. It is the biggest originator of customer loans, and also the source of regular write-downs
for loans that have soured.”