Merchant Banking
Content
PRESENTATION
ON MERCHANT BANKING
Meaning
The word merchant banking has been so widely used that sometimes it is applied to bank who are not merchant, sometime to merchant who are not banks & sometime to that intermediaries who are neither merchant nor bank. IN India , merchant banking services were started only in 1967 By national gridlay bank. The merchant bank mainly offers financial services & advisory services for fee .
Commercial bank 1.Accepting deposits of various types& maturities for purpose of lending. 2.Providing working capital finance 3.Issuing credit card 4.Avalible of cash credit, overdraft, discounting of bills of exchange. Merchant bank 1.Corporate counseling 4.Corporate advisory services 2.Project advisory 5. leasing 3.Issue management
Diff in services between commercial bank & merchant banking
Function of merchant banking
1. Corporate counseling
This services is provided free of charge to a corporate unit . Merchant baker render advise to corporate enterprises for time to time in order to improve performance and build better image. It guide corporate unit to area of diversification Merchant bank make a detail market analysis so as to evaluate profitability of each product line, on the basis of analysis it advice weather to continue expand or discontinue any product line.
2.Project counseling
1. 2.
3. 4. 5. 6.
Project counseling basically covers the study of project and providing advisory services. It cover the following aspect. Development of an idea of project Preparation a project report after consideration of financial, economic & market feasibility. Estimation of cost of project Deciding the means of financial & the composition of various securities. Studying the procedural aspect of project implementation. Providing assistance in obtaining government consent for implementation of project.
3. Portfolio management
1. 2. 3. 4.
Merchant banks offer services not only to the companies issuing the securities but also to the investor. merchat bank render services to the investor by advising on the optimum investment mix, taking in account following factor. Object of investment. Tax bracket application to the investor. Need for maximising return. Capital appriciation.
4.Issue management
Preparation of prospectus. Preparation of plan & budget to estimate total expenditure of the issue. Appointment of registrar, broker and bankers to issue. Selection of issue house Merchant banker advise the client weather to go for-a fresh issue, a additional issue ,bonus issue.
5.Loan
Merchant banker provide specialiged services in preparation of project and loan application for raising short term as well as long term credit from various bank and financial institution.
1. 2. 3. 4. 5.
Other function Arranging working capital Bill discounting Lease finance Venture capital Public deposit
Role of a merchant banker
Managerial economist Financial and investment expert Manager to issue Rehabilitator Master in trading activity
ON MERCHANT BANKING
Meaning
The word merchant banking has been so widely used that sometimes it is applied to bank who are not merchant, sometime to merchant who are not banks & sometime to that intermediaries who are neither merchant nor bank. IN India , merchant banking services were started only in 1967 By national gridlay bank. The merchant bank mainly offers financial services & advisory services for fee .
Commercial bank 1.Accepting deposits of various types& maturities for purpose of lending. 2.Providing working capital finance 3.Issuing credit card 4.Avalible of cash credit, overdraft, discounting of bills of exchange. Merchant bank 1.Corporate counseling 4.Corporate advisory services 2.Project advisory 5. leasing 3.Issue management
Diff in services between commercial bank & merchant banking
Function of merchant banking
1. Corporate counseling
This services is provided free of charge to a corporate unit . Merchant baker render advise to corporate enterprises for time to time in order to improve performance and build better image. It guide corporate unit to area of diversification Merchant bank make a detail market analysis so as to evaluate profitability of each product line, on the basis of analysis it advice weather to continue expand or discontinue any product line.
2.Project counseling
1. 2.
3. 4. 5. 6.
Project counseling basically covers the study of project and providing advisory services. It cover the following aspect. Development of an idea of project Preparation a project report after consideration of financial, economic & market feasibility. Estimation of cost of project Deciding the means of financial & the composition of various securities. Studying the procedural aspect of project implementation. Providing assistance in obtaining government consent for implementation of project.
3. Portfolio management
1. 2. 3. 4.
Merchant banks offer services not only to the companies issuing the securities but also to the investor. merchat bank render services to the investor by advising on the optimum investment mix, taking in account following factor. Object of investment. Tax bracket application to the investor. Need for maximising return. Capital appriciation.
4.Issue management
Preparation of prospectus. Preparation of plan & budget to estimate total expenditure of the issue. Appointment of registrar, broker and bankers to issue. Selection of issue house Merchant banker advise the client weather to go for-a fresh issue, a additional issue ,bonus issue.
5.Loan
Merchant banker provide specialiged services in preparation of project and loan application for raising short term as well as long term credit from various bank and financial institution.
1. 2. 3. 4. 5.
Other function Arranging working capital Bill discounting Lease finance Venture capital Public deposit
Role of a merchant banker
Managerial economist Financial and investment expert Manager to issue Rehabilitator Master in trading activity
