INSTITUTE OF MANAGEMENT

NIRMA UNIVERSITY
MBA-FT
2021-2023

INTERIM REPORT

Jaya Tripathi
211183

Project Title Recent Change in Trade Finance at

Competition Bank

Project Guide Vivek Kumar

Project Buddy Bhupendra Pratap Singh

Submitted to: Prof Tejas Modi

Date of Submission: 30th May 2022
 Table of Contents

ABOUT THE PROJECT ..................................................................................................................... 2

STATUS OF THE TASK IDENTIFIED IN THE PROPOSAL ....................................................... 2
DETAILS OF TASK COMPLETED .............................................................................................. 2
1. WEEK 1 TASK ..................................................................................................................... 2
2. WEEK 2 TASK ..................................................................................................................... 4
3. WEEK 3 TASK ..................................................................................................................... 5
4. WEEK 4 TASK ..................................................................................................................... 6
DETAILS OF THE TASK REMAINING ...................................................................................... 7
PLAN FOR THE REMAINING PERIOD OF INTERNSHIP ......................................................... 8
APPROVAL FROM THE ORGANISATION GUIDE ..................................................................... 9

1|Page
 ABOUT THE PROJECT

COMPANY NAME: ICICI BANK

ORGANISATION BUSINESS SECTOR: Banking Industry

DURATION OF PROJECT: 8 Weeks [May 02-June 25, 2022]

TYPE OF PROJECT: Research-Based Project

PROJECT TITLE: Recent Change in Trade Finance at Competition Bank

STATUS OF THE TASK IDENTIFIED IN THE PROPOSAL

DETAILS OF TASK COMPLETED

1. WEEK 1 TASK
Operations of Bank and Roles of Employees, Learning basics of Trade
• In this week I got familiar with the working environment of the bank and with
the employees working in the Retail trade and Forex Trade.
• I was asked to read about global trade and understand India’s stand at the global
level in terms of trade.
• I learned about the basics of trade, that is, what it means and how various terms
in the trade are interpreted from the bank’s point of view.
• Many files shared by my project buddy were examined by me in order to
understand the basics of trade and trade procedures.

Summary of the study

a. Meaning and stats of trade happened in recent years. As per the reports of the
Department of Commerce of the Indian Ministry of Commerce and Industry the top
five countries of trade for India are the USA, China, UAE, Saudi Arabia, and Iraq.
Below is the table showing the import-export with the top countries and with the table

2|Page
 it can be seen that these top five countries form a major part of the overall trade for the
country.

Trade Records (2021-2022)

Values in Rs. Crores

Rank Country Export Import Total Trade

1 USA 5,09,058.35 2,86,679.57 7,95,737.92
2 CHINA P RP 1,47,118.19 6,33,296.39 7,80,414.58
3 UNITED ARAB EMTS 1,85,657.25 2,99,216.06 4,84,873.30
4 SAUDI ARAB 58,720.35 2,19,940.25 2,78,660.60
5 IRAQ 14,567.74 2,05,279.18 2,19,846.92
Total of Top 5 countries 9,15,121.88 16,44,411.44 25,59,533.33 -7,29,289.56
India's Total 28,07,210.23 40,91,076.42 68,98,141.85 -12,83,866.20
% Share of Top 5 countries 32.60% 40.20% 37.10% 56.80%
Data Source: Ministry of Commerce and Industry, commerce.gov.in

b. Understanding the meaning and nature of various trade finance products and services.

Hence few of the major Trade Finance Products are:

Letter of Credit Shipping Bill

Bank Guarantee Suppliers Credit
PCFC Buyers Credit
Collection Payments Open Account
Bill of Lading EDPMS
Bills of Exchange IDPMS
Airway Bill Advance Payments

c. Basics of Letter of credit (L/C) and Bank Guarantee, the two most used and demanded
trade products at the banks.
d. Regulations of Trade in India and the guidelines issued for the same. Trade Finance in
India is regulated by RBI and along with RBI the International Chamber of Commerce
(ICC) also lays down the circulars and guidelines regarding international trade.
Guidelines by the ICC enable a smooth transaction of goods and capital between
nations. This is very helpful as different nations will have different trade-related
guidelines The ICC issues Incoterms. It is a collection of three-letter trade phrases
known as Incoterms that are used to inform sales contracts by outlining the obligations,

3|Page
 expenses, and risks associated with the delivery of products from the seller to the buyer.
The Current version of Incoterms is Incoterms2020.

2. WEEK 2 TASK

Understanding the documents, products, and processes in Trade Finance

• This week’s task was to understand the in-depth procedures involved in the
trade.
• Explore various options available to remittance the trade payments and how
banks play a major role in streamlining the payment procedures.
• I shared many readings and talked to various employees to get a better
understanding of how the trade payments can be done and understand SWIFT
as well.
• Also, I was made familiar with the forex market and the basics of various rates
that banks follow for the retail Forex.

Summary of the Study

a. Banks help in smoothing the process by providing various services and modes of
payment to the customers.
Some of the major ways payment for the trade can be done are:
Cash in Advance
Documentary Collection
Letter of Credit
Open Account
b. Products under each type of payment methods, which are:
Advance Imports (SMI)
Advance Exports (GRS/XSR)
Import Bills for Collection (MFCL/MFCR)
Export Bills for Collection (XFC)
Document against Payment (D/P) / at sight
Document against Acceptance (D/A) / at usance
c. SWIFT (Society for Worldwide Interbank Financial Telecommunications)
d. Forex Markets and derivatives in Forex Markets.

4|Page
 3. WEEK 3 TASK
Research on the Trade Finance at the ICICI Bank, past trends, and recent trends

• This week task was to study the trade finance of ICICI Bank in particular and
find out about the latest development at the ICICI Bank in the trade finance field.
• Project Buddy had sent many documents to study that included a trade booklet
of ICICI Banka and FDI, ECB, and ODI Solutions at ICICI.
• I did research on what trade-related services ICICI Bank provides by having
conversations with the employees and referring to the ICICI Bank’s website.
• Research on what new the Bank has done in the past couple of years to become
a leader in the trade finance field was also done.

Summary Of the Study

a. ICICI Bank has many ways to offer high-end services to its customers. Using online
mode to be available 24/7 for the customers is the most common way for the bank to
carter its customers. The online service that ICICI Bank has to streamline the trade
procedure: Trade Online, Trade Emerge, InstaBIZ, Tradechain
b. The import services that the bank offers to its customers are:
Import Payments
Import Bill Regularisation
Letter of Credit
Import Collection Bills
Service Payments
c. The export services that ICICI offers to its customers are:
Inward Remittances
Export Bill Regularisation
Export Credit EPC/PCFC
Export Collection Bills
Bank Guarantee
d. Then the recent development of Trade Emerge and InstaBIZ by ICICI Bank is a very
big accomplishment by the bank and this has helped the bank perform better in the
Trade sector.
e. Value-added offerings by the Trade Emerge platform are identified and how it has
become useful for many customers across various banks is also identified.

5|Page
 4. WEEK 4 TASK
Competitive Bank identification and data collection of trends in Trade Finance

• By the mid of the internship, I was asked to have studied at least 2 other competitive
banks’ trade finance activities and the recent developments in those banks.
• The study on the changes that the competitive banks made to gain more market share
and be profitable.
• Axis Bank and State Bank of India are the two banks I worked on this week and
identified the changes and developments in those banks.

Summary Of the Study

a. Axis Bank- In July 2021 Axis Bank announced entering into its first derivative
transaction linked to SOFR and in October 2021, Axis Bank became India’s first private
sector bank to arrange a term SOFR-linked trade deal.
b. Axis Bank became a pioneer in arranging SOFR-linked deals. Hindalco Industries
Limited, the world's largest aluminium manufacturer by revenue, was the beneficiary
of this transaction. The deal was linked to a branch's 90-day Secured Overnight
Financing Rate (SOFR) agreement backed by Axis Bank's GIFT City IBU branch.
c. Axis Bank- In January 2022, Axis Bank completes the first domestic trade transaction
on the GOI-backed blockchain network.

6|Page
 d. SBI-

DETAILS OF THE TASK REMAINING

• The reaming task is to identify the changes that are happening at many other
competitive banks. This is to be done in week 5 of the internship.
• Then the next task pending is to do a study of the changes that have happened
in various competitive banks and draw some conclusions out of it, also suggest
what the ICICI Bank needs to do in the Trade Finance area to beat its
competitors.
• Also, analyse any gaps that were present while working on the project.
• Visit clients to understand the way deals are done and how the entire process of
import-export and remittances fall into actual play at the grounds level.

7|Page
PLAN FOR THE REMAINING PERIOD OF INTERNSHIP

• For the remaining period of internship, I intend to follow the weekly plan and work
accordingly.
• I also plan to do multiple client visits and attend meetings to get an on-field experience
of how to deal with the customers.
• Next thing I plan to do is to involve myself with more and more employee interaction
to understand how ICICI Bank stands different from other banks and how the trade
finance at banks has evolved.
• Lastly, gathering data and records on the changes happening at the Competition banks
by visiting the official bank sites, press releases, news articles, and interactions with
bank employees.

8|Page
APPROVAL FROM THE ORGANISATION GUIDE

9|Page