The document discusses various banking products and services offered to corporate and retail customers. It describes two main types of banking products - fee based services and fund based services. Fee based services do not require investment from the bank and include services like cash management, foreign exchange, credit ratings, and online bill payments. Fund based services require bank investment through loans and credit facilities for working capital, exports, imports and term lending. Both corporate and retail customers are provided with an array of fee and fund based banking products customized to their needs.

2. The product mix for business banking services is very
broad and product lines are deep, with many product items.
Products are often customized to the needs of the customer.
There can be two type of banking products;
Fee based Banking Products/ Services
Fund based Banking Products/ Services

3. Fee basedBanking Products/ Services
Broadly fee based services can be divided into two categories:
Corporate fee-based services
Retail fee-based services
Fee- based Services
Retail Fee-based
Services
Corporate Fee-
based Services
Personal Tax Counseling
Credit Cards
Debit Cards
Smart Cards
E-Cash
Automated Teller Machines (ATM)
Foreign Inward/Outward Remittances
Fund Transfer Facilities
Microfinance
Online Trading
Utility Bills Payment
Portfolio Management
Safe Deposit Lockers
Safe-Custody Facilities
 Cash Management Services
 Collection
 Payment
 Liquidity
 Merchant Banking
 Foreign Exchange Services
 Bill Discounting
 Factoring
 Forfeiting
 Leasing
 Credit Rating
 Letter of Credit
 Bank Guarantee

4. Corporate fee-based services :
A corporate fee based service is a collective term giving to all those financial
services that various financial institutions, bank offer to corporate customers on
payment of a fee. The various fee-based services provided by banks to corporate
customers are:
 Cash Management Services
Cash management is the effective management of cash in order to minimize
transaction costs, exercise greater control and maximize returns. Banks offer cash
management services to their corporate customers.
Cash management services can be broadly divided into three sub categories. They
are:
 Collection : Collection and disbursement of cheques for the clients form an
important part of the cash management services. Clients continuously receive
payments from their distributers and customers in the form of cheques and demand
drafts.

5.  Payment : Payment services include payments to clients’ vendors and
suppliers, dividends to the shareholders payment of interest on
commercial bills and debentures payment of salaries to employees, etc.
 Liquidity : Liquidity management involves pooling and distributing
funds across the client’s multiple accounts with the bank.
 Merchant Banking
Merchant Banking can be defined as an activity in which a bank deals mostly
in international finance, long-term loans for companies and underwriting. They
include registrar service, underwriting services and custodial services.
 Foreign Exchange Services
Foreign exchange services refer to converting foreign currency into Indian
currency and vice-versa. The need for such services is felt by organisation, whose
executives travel abroad, and importers and exporters of goods and services. Bank
and other non-banking financial companies operate in this market and they charge
a fee for providing such services.

6.  Bill Discounting
A bill discounting or a bill of exchange is a short-term, negotiable and
self-liquidating money-market instrument. The bill of exchange is used for financing
a transaction in goods which means that it is essentially a trade-related instrument.
 Factoring
Bank also provides factoring services to corporate. A factor manages the
collection of account receivables of the companies on their behalf and bears the
credit risk associated with those accounts.
 Forfeiting
Forfeiting is a form of financing of receivables pertaining to international
trade. It denotes the purchase of trade bills / Promissory notes by a bank / financial
institution without recourse to the seller.
 Leasing
Lease is contract between the owner of the asset and the user of the asset
called the lessee ,. Where by the lesser gives the right to use the asset to the lessee
over an agreed period of time for a consideration called the lease rental.

7.  Credit Rating
The credit rating services are a corporate fee-based service where a
credit rating agency gives its expert opinion on the relative willingness and ability
of the company that is interested in taking debt in any form.
 Letter of Credit
Under the system of letter of credit the banker issues commitment on
behalf of its client to the supplier of goods to accept clients’ bills up to the amount
stated in the letter of credit. The credit is available subject to the fulfillment of the
terms and conditions stipulated in the letter.
 Bank Guarantee
A guarantee is a contract between the issuing bank an the client in
which the bank undertakes to meet the claims put forward by the client against the
customer on behalf of whom the guarantee is issued. If the customer fails to meet
the obligation, the client will approach the bank for payment of the amount of
default.

8. Retail fee-based services :
Retail fee-based services are essentially marketed to retail consumers to help
them meet their specific financial requirement. A retail fee-based service can be a
pure fee-based service or may be linked to certain fund-based product. The latter
can be called a value added fee-based service as they add value to the existing
fund-based products.
 Personal Tax Counseling
One of the emerging areas of Income Tax Act1961, every individual whose
annual taxable income exceeds the specified limit should pay income tax and file the
annual return in a prescribed format. These limits are revised periodically at the time
of presentation of annual budget by the Union Finance Minister and given effect by
an amendment to the Finance Act.
 Credit Cards
A Credit Card is a plastic card bearing an account number assigned to a
cardholder with a credit limit that can be used to purchase goods and services and to
obtain cash disbursements on credit, for which a cardholder is subsequently billed by
an issuer for repayment of the credit extended at once or on an installment basis.

9. Debit Cards
Debit Cards are substitutes for cash or check payments much the same way
that credit cards are. However, banks only issue them to you if you hold an
account with them. When a debit card is used to make a payment, the total
amount charged is instantly reduced from your bank balance. A debit card is only
accepted at outlets with electronic swipe-machines that can check and deduct
amounts from your bank balance on-line.
Smart Cards
Smart Cards offer consumers the ability to hold multiple applications on a
single card, separately and securely. Smart cards allow consumers to make
secure electronic commerce purchases anytime, anywhere they go. This is
simply not possible with today’s available card because when one makes on
online purchase, the electronic proof of his/her identity is actually locked inside
his/her PC.
E-Cash
E-Cash is a payment system, based on smart card technology, which offers
an alternative to paying cash for goods and services.

10.  Automated Teller Machines (ATM)
An Automated Teller Matching is a mechanism which enables the customer to
withdraw money from his account without visiting the bank branch. An ATM card is
issued to the customer by bank in order to make cash withdrawals at cash machines.
This service help the ATM customer to withdraw money even when the banks are
closed.
 Foreign Inward/Outward Remittances
Non-resident Indians working abroad may have to send money to their near and
dear in india. Companies and business firms also may have to send remittances to
India in connection with their business. Exporters receive advance remittances in
respect of the export order received from aboard. The remittances are received in the
form of cheques, drafts, travelers’ cheques, currency notes, mail transfers, etc. The
foreign inward remittance involves transaction in foreign currency.
Individuals may have to remit funds abroad for purposes like education,
subscription to journals and magazines, membership in professional bodies,
participation fee for seminars and conferences, etc. The remittances are made by way
of demand drafts drawn in favor of the beneficiary abroad on the branch of the bank
or by cheque drawn on the bank’s correspondent bank abroad.

11.  Fund Transfer Facilities
Predominantly, people were using post offices for funds transfer. The development
of banking enabled the banks to provide fund transfer facilities at a cheaper rate than the
money order facility offered by postal department. The common form of fund transfer
facilities through banks are cheques, drafts, mail transfers and telegraphic transfers.
 Microfinance
Microfinance refers to a range of financial services including credit, savings,
insurance, money transfers, and other financial products provided by different service
provides, targeted at poor and low-income people.
 Online Trading
Online trading is one of the latest fee-based services offered by banks and other
financial institutions-brokers (or) depository participants. Online trading involve trading
in shares, debentures, commodities, and foreign exchange in the respective markets.
 Utility Bills Payment
Utility bills payment helps the bank’s customers to pay their utility bills such as
electricity bill, water bill, phone bill, etc, in a hassle-free manner. The payment can be
done either through the ATM or through internet banking.

12.  Portfolio Management
Banks NBFCs and broking firm are providing portfolio management services to
individuals. A portfolio is defined as total holding of securities belonging to any person.
The securities can be shares, bonds or other securities.
 Safe Deposit Lockers
Safe deposit locker is a facility provided by banks to their customers to keep their
valuables like jewelry, title deeds, etc. Safe deposit locker is a steel cabinet having
multiple cubicles.
 Safe-Custody Facilities
Banks, are providing facility to keep valuables like documents, title deeds, etc.
The customer has to pay a charge for this facility.

13. Fundbased Banking Products/ Services
Fund based services are those where bank has to make the investment.
There is a cost and risk of these services and return expected from them. Some of the
fund based services are:
Fund based Banking Products/
Services
Working Capital
Finance
Short Term Finance
Bill Discounting Export Finance
Term Lending Buyer’s Credit /
Supplier’s Credit

14. Working Capital Finance
We offer working capital facilities - both fund-based and fee-based. Fund-
based working capital products include cash credit, overdraft, bill discounting, short-
term loans, export financing (pre-shipment as well as post-shipment). Fee based
facilities include letters of credit and bank guarantees.
Working Capital facilities are provided to finance the day-to-day business
requirements. Funding requirements are structured to finance procurement of raw
materials/stores and payment towards manufacturing costs and other overheads. Sales
are financed against sundry debtors/ receivables.
The Bank offers a combination of operative cash credit and working capital
demand loan to meet the domestic working capital requirements of our clients.
Short Term Finance
The Bank offers short-term loans for a period ranging from 3 months to 12
months to sound corporate for meeting their specific short-term working capital
requirements. The funds are provided with interest rates either linked to our BPLR or
at a fixed rate with varying repayment patterns.

15. Bill Discounting
This product enables corporate to fund their operating cycle right from the
stage of procurement to sale. Bill Financing is extended by IndusInd Bank to its clients
at competitive rates.
Letter of credit backed bill discounting and clean bill discounting are the
convenient mode of financing for domestic trade transactions.
BOE could be broadly classified into Demand and Usance bills and are further
classified into clean and documentary bills
Export Finance
As an important incentive to the exporters community for boosting exports,
financial assistance in Rupees is extended to exporters on priority basis on relatively
liberal terms. Such finance is provided both at pre-shipment stage (as working capital
finance) and at post-shipment stage (to bridge the time lag between the shipment of
goods and the realization of proceeds). Interest charged on export credit is exempted
from the purview of interest tax.

16. Term Lending
We offer term loans to both Industrial as well as Infrastructure sectors
promoted by strong business houses. These loans are for a period of 3-5 years
with a moratorium period. Interest rates could be fixed or floating linked to
the bank's BPLR.
Buyer’s Credit / Supplier’s Credit
This facility provides total flexibility to corporate to utilize the line
(sanctioned limit) of credit. The terms of the line of credit are either
predetermined or negotiated at the time of availment. This facility is used as
and when the client has a requirement