Non-Fund-based Banking Services

For Business

Letter of Credit - 

When Party A supplies goods to Party B, the payment terms may
provide for a Letter of Credit.
In such a case, Party B (buyer, or opener of L/C) will approach his bank (L/C Issuing
Bank) to pay the beneficiary (seller) the value of the goods, by a specified date, against presentment of specified documents. The bank will charge the buyer a commission, for opening the L/C.
The L/C thus allows the Part A to supply goods to Party B, without having to worry about Party B’s credit-worthiness. It only needs to trust the bank that has issued the L/C. It is for the L/C issuing bank to assess the credit-worthiness of Party B. Normally, the L/C opener has a finance facility with the L/C issuing bank.
The L/C may be inland (for domestic trade) or cross border (for international trade).

Guarantee – 

In business, parties make commitments. How can the beneficiary of the
commitment be sure that the party making the commitment (obliger) will live up to the commitment? This comfort is given by a guarantor, whom the beneficiary trusts.
Banks issue various guarantees in this manner, and recover a guarantee commission
from the obliger. The guarantees can be of different kinds, such as Financial Guarantee, Deferred Payment Guarantee and Performance Guarantee, depending on how they are structured.

Loan Syndication – 

This investment banking role is performed by a number of universal banks

For Individuals

• Sale of Financial Products such as mutual funds and insurance is another major     
    service offered by universal banks.
• Financial Planning and Wealth Management, again, are offered by universal banks.
• Executors and Trustees – a department within banks – help customers in managing
    succession of assets to the survivors or the next generation.
• Lockers – a facility that most Indian households seek to store ornaments and other
    valuables