MERCHANT

BANKS
INVESTMENT
FINANCI
&

AL
INSTITUTI
Presented by Rowan Koshy

ONS
 INTRODUCTION

In simple terms,
a merchant bank is a financial institution
that provides a range of services to
businesses and corporations
 INTRODUCTION

DEFINITION
ACCORDING TO DICTIONARY OF BANKING &
FINANCE
“A BANK WHICH ARRANGES LOANS TO
COMPANIES, DEALS IN INTERNATIONAL
FINANCE, BUYS AND SELLS SHARES
LAUNCHES NEW COMPANIES ON THE STOCK
EXCHANGES
BUT DOES NOT PROVIDE NORMAL BANKING
SERVICES TO THE GENERAL PUBLIC”
 NORMAL MERCHANT
BANKING BANKING
1. Normal banks primarily focus on providing
Merchant banks, on the other hand, specialize in
financial services to individuals, small
serving larger businesses and corporations
businesses, and sometimes larger corporations.
Merchant banks provide more specialized and sophisticated
financial services. These may include underwriting
2. Normal banks offer a broad range of services,
securities, advising on mergers and acquisitions, managing
including savings and checking accounts, loans (such
investments, assisting with international trade finance, and
as mortgages and personal loans), credit cards, and
offering corporate financial advisory services.
basic investment products.

Merchant banks often engage in higher-risk activities,

3. Normal banks typically deal with lower-risk such as underwriting securities. They may take on more
transactions. They focus on serving the needs of complex financial transactions and assume a greater
individuals and small businesses, where the risk is level of risk, especially when involved in investment
often more predictable. banking activities.
CONNECT THE PICTURES

It serves a variety of purposes, making

presentations powerful tools for
convincing and teaching.
CONNECT THE PICTURES

BUDGET
It serves a variety of purposes, making
presentations powerful tools for
convincing and teaching.
CONNECT THE PICTURES
 CONNECT THE PICTURES

OUT
SALARY
STANDING
CONNECT THE PICTURES

It serves a variety of purposes, making

It serves a variety of purposes, making
presentations powerful tools for
presentations powerful tools for
convincing and teaching.
convincing and teaching.
 CONNECT THE PICTURES

DIS COUNT
It serves a variety of purposes, making
It serves a variety of purposes, making
presentations powerful tools for
presentations powerful tools for
convincing and teaching.
convincing and teaching.
WHO IS A
MERCHANT
BANKER?
In simple terms, a merchant banker is a financial expert
or institution that specializes in providing a variety of
services to larger businesses and corporations. These
services often include helping companies raise capital,
providing financial advice on mergers and acquisitions,
managing investments, and facilitating international
trade finance.
FACTS AND
FIGURES
• Citibank started the merchant banking services in
1970.

• The State Bank of India was the first Indian

commercial bank to set up a separate Merchant
Banking Division in 1973.

• ICICI followed it in 1974.

• Currently, there are more than 200 SEBI

registered merchant banks in India.
 THANK YOU
FOR
LISTENING
UNDER THE GUIDANCE OF
PROF DEEPA SHANMUGAM(MAM)