What is wholesale banking?

What is wholesale banking?


Wholesale banking is popularly known as corporate banking, also known as business banking. Wholesale banking or corporate banking refers to the aspect of banking that deals with corporate customers such as trading houses, multinational companies, exceptionally large domestic industrial and business houses, prime public sector companies etc. The above types of clientele opt for the services of banks which are capable of offering with superior and innovative products delivery.

All public sector banks as well as major private sector banks, foreign banks in India offer  all the services that can be extended on a financial level to corporate entities to ease their day-to-day operations with  integrated relationship management. Some of the value added services offered by the banks  to corporate clientele are corporate salary accounts, Payment Gateway services, corporate internet banking services, Cash Management services, channel financing*, vendor financing**,  syndication services***, Forex desk, money market desk, derivative desk, employees trusts, tax collection, bankers to right/public issue etc.

*Channel Financing is extending working capital finance to dealers having business relationships with large companies.

**Vendor finance is a form of lending in which a company lends money to be used by the borrower to buy the vendor’s products or property.

***Syndication allows banks to pool their resources and share risks with other banks while handling a large transactions viz. Project Finance,    Corporate Term Loans,    Working Capital Loans,    Acquisition Finance, etc.

Fund Based and non- fund based services extended to  corporate borrowers are term lending, short term finance, working capital finance, bill discounting, export credit, Bank Guarantee, Letter of credit, collection of bills and documents etc.

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