Fixed Date Delivery and Option delivery ContractsThey also offer forward contract facility based on past

performance basis as a declaration limit. Simple Documentation Rates on fax/phone

Settlement on Cancellation or at maturity services Services rendered by corporate Bank under Infrastructure

financing cover debt syndication andspecialized advisory services to the corporate in the infrastructure and allied sectors. The Bank

offersProject Appraisal, Debt Syndication, Corporate advisory services and Securitisation & Structuredproduct s as

specialized servic es. (A) Appraisal: CORPORATE Bank has been very well developed in the appraisal of large infra sector

projects and hasover the years earned reputation in appraisal of these projects, which are well accepted in the bankingindustry. Project Appraisal

Department has a dedicated team of qualified and experienced professionalswith domain knowledge in the infrastructure sector, including

technical, financial, legal and financialdiscipline s, to carry out appraisal of large infrastructure projects.CORPO RATE Banks

appraisals have been used by the corporates, besides availing loan facilities for implementing projects, to finalise their decisions

in bidding for new projects, assets acquisition, businessplans or disinvestments decisions.For eg. IDbi bank has offered these services to PSU

majors like Indian Oil, SAIL, ONGC, HPCL andleading infrastructure project developers such as GMR industries, Tata Group

and Aditya Birla Group for their various projects. (B) Debt S y ndication: corporate Bank has been offering its loan

syndication services to corporates by arranging financialassistanc e (both term loan and Working Capital) to their projects

and operations. The hallmark of CORPORATE Banks Syndication process is that CORPORAT E Bank takes the role of lead

bank for debts arranged by it, by providing major share of debt in the debt programme. Such a decision alwayshas a positive impact in

arranging of loans.The Department of debt syndication has qualified professionals who are proactive to the client

needs.The team is earned a reputation for its transparent dealings, with a balanced view on the risk perceptionsof the project and for its

capability to provide tailor made solutions reckoning clients special needs.We take an example of Idbi bank whereDurin g last three years,

the syndication team has concluded 40 deals for an aggregate debt of Rs. 47,067crore. The deals concluded by the team range from

Rs.200 crore to Rs.6000 crore. Major Industrialhouses such as Reliance, (Both Mukesh and Anil Group), Aditya Birla, ESSAR,

Vedanta Group, TATAGroup have reposed their faith in CORPORATE Banks capability to arrange debt for their projects. (C) Advisor

y Services: Corporate Advisory: The strong domain knowledge in infrastructure and allied sectors has

providedCORPO RATE Bank a niche in offering the advisory services for the corporate in the infrastructure sector.The range of advisory

services offered by CORPORATE Bank include merchant appraisal of projects, Acqui sition / sale of assets, business valuation and pre

bid advisory for PPP projects in Road sector. CORPORATE has been permitted by the SEBI to act as the agent for the IPO

monitoring of corporatewhich come out with public issue of equity shares of issue size higher than Rs.500 crore.

(d)Securitisation and Structured P roduct Services: corporate Banks play an active player in the Securitisation market. They

have a dedicated team in placefor originating and executing Securitisation deals. Depending on the nature of the portfolio, theSecuritisation

is done either thru assignment or thru Pass Thru Certificates (PTC).MARKETI NG IN CORPORATE BANKING
The marketing strategies

adopted by bank to market their products & services to attract new corporatecustome rs and retain the old ones are discussed below.On the

basis of sales volume and/or capital employed, banks may classify corporate customers into threesegments large corporations, mid-size

companies, and small and medium business enterprises (SMEs).Corporate customers may also be segmented into industry verticals, such as

automobiles, avia tion, tourism,etc.Bank corporate customer relationship customer showsinterestin banking

productsinnovative productnew productdevelopment pricing of theproductspromoti onpersonal sellingtelemarketin gdistributionbank branchesdirect

sales forceinternet banking

E

Acquiring & retentionSta ge

arly stage

Maturity stage

As part of their marketing efforts, banks develop long-term relationships with their corporate customers.Strong relationships help the banks

improve profitability and retain customers in a competitive market. Theinteractions and relationships between the banks and their corporate

customers are influenced by threegroups of factors the external environment, the atmosphere of the interactions, and the interactionprocess

. The Partnership Relationship Lifecycle Model'describes the evolution of the bankcorporatecustome r relationship, beginning at an

early stage where a customer'shows interest in the bank's offerings,and maturing to become a mutually beneficial

partnership relationship'betwe en the client'and the bank.Banking products are broadly classified into fund-based products and feebased services. Fund-

basedproducts are further subdivided into asset products and liability products. Liability products include salaryaccounts, current accounts, fixed deposits,

and payment cards. Asset products include various kinds of credit products like trade finance, corporate finance, project finance, and term loans.

New productdevelopm ent and innovation are considered vital for a bank's long term sustainability. Banks need toaddress the

changing requirements of their clients through new product development. However, financialproducts can be easily copied. To

maintain differentiation, banks also need to come up with innovations onhow they deliver the new product.The pricing of banking products directly

impacts customer retention and customer acquisition, in addition toprofitability and long-term viability. For the marketer, price is a mechanism to

cover the costs of operationswhich include production costs, distribution costs, promotion costs, and other operational expenses. Thepric ing decision is

influenced by cost, competition, customers, and other constraints. With the advent of deregulation and the consequent increase in competition,

many of the banks have adopted a competitivepricin g strategy. RBI has deregulated the pricing mechanism for both asset and liability products.

Everybank has to set its own Benchmark Prime Lending Rate (BPLR) to price its asset products. A bank may priceits asset products (for a given customer either

above or below the BPLR, depending on situational factorssuch as creditworthiness of the customer, stage of relationship, etc.Personal

selling is the most important component of the promotional mix for corporate banking. As personalselling is a two-way interaction, it also plays an

important role in the service delivery. To reduce the overallcost of personal selling, banks may use direct-response advertising or telemarketing to

identify highpotential customers, who are then approached through the personal selling option. Advertising is used toreach out

to a vast audience in a cost-effective manner, as at the time of introducing a new product orservice. Public Relations (PR) is used to provide publicity

to the bank, to improve its public image, and toovercome a negative image (if any). PR tools include press releases, annual reports, seminars and

speeches,causerelated marketing, inhouse magazines & newsletters, corporate social responsibility (CSR) initiatives,a nd event sponsorships. As

part of sales promotion, banks give employees incentives to achieve businesst argets such as volume of new business, extent of cross-selling, etc. Customer

promotions (such as gifts)are less important as banks can decide the price (interest rate) for customers on a case-to-case basis.Corporate banking products

are distributed mainly through bank branches and a direct sales force,supplement ed by phone and Internet banking. Relationship officers are based at different

branches; theymake frequent client visits to nurture relationships and to develop new business opportunities. Banksattempt to develop an

optimal distribution mix using personal/nonpersonal modes of delivery, in order toachieve multiple objectives such as superior

customer service, operational efficiency, and profitability.Integr ated banking software applications usually referred to as Core Banking Solutions

(CBS) -- are vitalto the realtime synchronization of the transactions that happen through the different modes of distribution.The

marketing strategies discussed above play an important role in helping the corporate banks to capturetheir market share.
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