User:Amaresh ID/sandbox/MERCHANT BANKING SERVICES

MERCHANT BANKING SERVICES IN INDIA :

In India merchant banking services were started by foreign banks, namely the National Grind lays Bank in 1967, and the City Bank in  1970. The banking commission in its report in 1972 recommended the setting up of merchant banking institutions by commercial banks and financial institutions.

The State Bank of India was the first Indian bank to set up Merchant Banking Division in 1972. Later ICICI set up its Merchant Banking division followed by Bank of India, Bank of Baroda, Canara Bank, Punjab National Bank, and UCO Bank.

Merchant Banking gained prominence during 1983-84 due to new issue boom.

SERVICES OF MERCHANT BANKING:

PROJECT COUNSELLING : It includes: Preparation Of Project Reports Deciding Upon The Financing Pattern Appraising The Project Relating To Its Technical Commercial And Financial Viability It Includes Filling Up Of Application Forms For Obtaining Funds From Financial Institutions.

Assistance is rendered to raise loans for projects after determining promoter’s contribution.

These loans can be obtained from a single institution or a consortium.