In my previous post we have discussed about Retail banking, its products and importance. Its time to discuss about wholesale banking.


It refers to doing banking business with industrial and business entities like corporates, PSUs and MNCs. The major advantage in wholesale banking is that a client can have easy and one-place access to all his finances and their details. This makes internal stock transfers, fund transfers, allocations and distributions simpler.



The products offered can be classified into 4 groups.

  1. Fund Based Services:
    • Term Lending
    • Working capital finance
    • Bill discounting
    • Structured finance
    • Export credit
    • Short term finance
  2. Non Fund Based Services:
    • Bank Guarantees
    • Letter of Credits (LOC)
    • Collection of bills and documents
  3. Value added Services:
    • Cash management services
    • Corporate salary accounts
    • Forex desk
    • Derivatives desk
    • Tax collection
  4. Internet Banking Services:
    • Payment gateway services
    • Corporate internet banking
    • Supply chain management
    • Supply chain partners

Banks in India have been doing this type of business traditionally and this segment of business is also called corporate banking or commercial banking.


  • “Principles & Practices of Banking”, Tata McGraw-Hill, New Delhi.
  • Investopedia and wikipedia.

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