GROUP BANKING: System in which two or more individual banks are brought under the control of a holding company.

. The individual banks may be unit banks, or banks operating branches or a combination of the two. The holding company controls the affairs of all units in the group. Participating banks retain their own boards of directors which are responsible to the regulatory authority. Each bank in the group has got a separate entity. Chief advantage of this is that each bank need not carry large cash reserve. Such cash reserves are concentrated on one or few member banks In times of need the bigger bank help the smaller banks. The disadvantage of this type of banking is the group banking may lead to monopoly and thereby restricts healthy competition among banks. Has developed in United States in 1900,it became popular and was extensively developed in 1920's.

INVESTMENT BANKING: Financial institutions that assist individuals, corporations and government in raising capital by underwriting, acting as clients agent in the issuances of securities and also gives advices on the mergers and acquisitions. Underwriting is the process where large financial service provider, raise capital from the public.one of the main function is to asses the fair value of the companies involved in the transaction and also introduce new securities to market in order to finance merger and acquisition activity.

Examples of investment banking 1. HDFC 2. Deutsche bank 3. UBS- union bank of Switzerland 4. Barclays capital 5. Bank of America 6. RBS- royal bank of Scotland.