Banking On Port

Prepared by Tushar Patel (3925)

Bhavesh Chavada (3903)

What Is Bank
A bank is a financial intermediary
that accepts deposits and channels
those deposits into lending
activities, either directly or through
capital markets.

Origin of the word

The name bank derives from the
Italian word banco "desk/bench",
used during the Renaissance by
Jewish bankers, who used to make
their transactions above a desk
covered by a green tablecloth.

Definition
Under English common law, a banker
is defined as a person who carries on
the business of banking, which is
specified as:
conducting current accounts for his
customers
paying cheques drawn on him, and
collecting cheques for his customers.

Major Banks at Port

ABN-AMRO Bank ,American Express Bank ,
Andhra Bank ,Axis Bank
Bank of Baroda ,Bank of India
Canara Bank ,Catholic Syrian Bank
Central Bank of India ,Centurion Bank ,
Citi Bank ,Corporation Bank
Dena Bank ,Development Credit Bank ,
Federal Bank ,HDFC Bank
ICICI Bank ,IDBI Bank ,

Major Banks at Port

Indian Overseas Bank ,IndusInd Bank ,
ING Vysya Bank ,Oriental Bank of
Commerce ,
Punjab National Bank ,Standard Chartered
Bank
State Bank of India (SBI) ,UCO Bank ,
Union Bank of India ,United Bank of India
Vijaya Bank ,Kotak Mahindra Bank
Yes Bank , Indian Bank

Bank Activities at Port

A)General Banking Activities
Branching
Interstate Branching
Loan Approval
ATM Facilities
Remote Check Scanning Terminal
Mortgage Loans

Bank Activities at Port

B)Consulting and Financial Advice
Provide financial, investment, or
economic advisory services
Credit Card Registration and
Notification Services.
Economic Analysis.
Employee Benefit and Payroll
Business.

Bank Activities at Port

Mergers, Acquisitions, Joint Ventures,

Recapitalizations, Capital
Structurings, and Financial
Transactions.
International Trade Management
Services
Internet Banking Services.
ShareExchange

Bank Activities at Port

C)Correspondent Services
Disaster Relief Services.
Flood Hazard Determinations.
Payment and Information
Processing Services.

Bank Activities at Port

D)Finder Activities
Bank may bring parties together for
a transaction that the parties
themselves negotiate.
Finder for Insurance.
Real Estate Tax and Management
Services.

Bank Activities at Port

E) Other Activities
Life Insurance Invested in Equity
Securities.
Borrow Money and Pledge Assets.
Courier/Messenger Services.
Dividends

Bank Guarantee
A bank guarantee is a written
contract given by a bank on the
behalf of a customer.
Issuing this guarantee, a bank takes
responsibility for payment of a sum
of money in case, if it is not paid by
the customer on whose behalf the
guarantee has been issued.
In return, a bank gets commission
for issuing the guarantee.

Benefits of Bank Guarantees

1. Reduces risk of private
transactions in
emerging countries.
2. Mitigates risks that the private
sector does not control.
3. Opens new markets.
4. Improves project sustainability.

Letter of Credit
The International Chamber of
Commerce (ICC) defines L/C as:
"An arrangement, however named or
described, whereby a bank (the
Issuing bank) acting at the request
and on the instructions of a customer
(the Applicant) or on its own behalf

Bank Guarantees vs Letters of

Credit
1. Parties Involved

In a bank guarantee-Three parties are

involved- the bank, the person to
whom the guarantee is given and
the person on whose behalf the bank
is giving guarantee.
In a letter of credit- Four parties are
involved- issuing bank, advising
bank, the applicant (importer) and
the beneficiary (exporter).

Bank Guarantees vs Letters of

Credit
2. Performance
Bank guarantee only becomes active
when the customer fails to pay the
necessary amount
Letters of credit, the issuing bank does
not wait for the buyer to default, and
for the seller to invoke the
undertaking.

Thank You