Trade Services

A wide range of trade services exist to meet a range of short term to

medium term trade fnancing requirements.
Imports
Letter of Credit
A Letter of Credit (LC) is a written undertaing issued !" a !an on
!eha#f of its customer in favour of the !enefciar" to pa" a certain
sum of mone" against presentation of stipu#ated set of documents
that comp#" with the terms of the LC. $nder an LC% the
creditworthiness of the !an rep#aces that of the customer.
Import Bill Collections
&ocumentar" Co##ections are a common and 'exi!#e mode of
pa"ment for goods purchased from domestic or overseas supp#iers.
It invo#ves hand#ing of documents !" !an in accordance with the
co##ection instruction received from remitting !an.
Trade Credit
Trade Credit is an essentia# too# for fnancing imports% it can !e used
to address woring capita# gap through import fnancing so#utions in
foreign currenc" through (u"ers) Supp#iers Credit.
*xports
Export Finance
*xport +inance services inc#ude !oth pre,shipment and post,
shipment credit. -re,shipment fnance can !e o!tained in the form
of *xport -acing Credit to fnance purchase or import of raw
materia#s and processing and pacing of goods for export. -ost,
shipment credit fnances export sa#es receiva!#es after exporter has
shipped the goods unti# the export proceeds are rea#ised.
Export Pre-shipment Finance
-re,shipment fnance is provided in the form of *xport -acing
Credit (*-C) to he#p meet woring capita# needs whi#e
manufacturing goods for export. *xport -acing Credit is made
avai#a!#e in !oth in rupee as we## as foreign currenc".
Export LC Advising
Advising of *xport Letter of Credits.

Export Letter Of Credit Confrmation
Confrmation of export Letters of Credit received from foreign !ans.
.ith (an/s credit strength% foreign !an ris and countr" riss can
!e e#iminated from export transaction. 0nce !an1s confrmation is
added to the Letter of Credit% exporter is assured of pa"ment%
su!2ect to non,discrepant documents% irrespective of non,pa"ment
!" LC opening !an.
Export Bill egotiation
*xport !i##s drawn under Letter of Credit are negotiated% if the
documents are found to !e strict#" in terms with the Letter of Credit
conditions. This is o3ered in !oth in rupee as we## as foreign
currenc". 4egotiation under LC is much simp#er than avai#ing regu#ar
woring capita# #imits from a !an.
P!rchase"#isco!nting of Export Bills
.hen exports are not covered under Letter of credit% !ans pa" the
discounted va#ue of invoice immediate#" on shipment% pa"ment is
done against sanctioned credit #imits. This is o3ered in !oth in rupee
as we## as foreign currenc".
Export Bill Collection
*xport !i## co##ection !rings convenience maing internationa#
!aning !ecome much more uniform% fewer de#a"s in receiving
pa"ment% e3ort#ess access to co##ection information detai#s%
increased contro# over export receiva!#es and an e5cient cash 'ow
management.
6uarantees
.hi#e entering into a #arge,sca#e !usiness transaction or carr"ing
out a high,va#ue pro2ect% a compan" is often required to su!mit a
(an 6uarantee. In an increasing#" cha##enging !usiness
environment% a !an guarantee is an e3ective wa" of securing
performance and pa"ment. Some of the variants of guarantees
o3ered inc#ude7
-erformance 6uarantees
+inancia# 6uarantees
(id (ond 6uarantees
Advance -a"ment 6uarantees
&eferred -a"ment 6uarantees
In#and Trade
Inland Letter of Credit Iss!ance
In#and Letter of Credit is used to guarantee pa"ment to domestic
supp#iers. The Letter of Credit terms and conditions he#ps to protect
interests of !u"er.
Inland Bill #isco!nting $%nder Letter of Credit&
+inance is provided !" discounting in#and !i##s drawn under #etters of
credit% if the documents are found to !e strict#" in terms with Letter
of Credit conditions and on receipt of acceptance from the Letter of
Credit issuing !an.
Inland Bill #isco!nting $ot !nder Letter of Credit&
+inancing for !i##s drawn on documents against acceptance terms% to
the extent of c#ient1s sanctioned credit #imits.
Bills for Collection
(i##s for Co##ection service provides increased contro# over trade
receiva!#es and e5cient cash 'ow management for Se##ers.