INDIAN FINANCIAL STRUCTURE
The Indian financial system is a network of institutions, markets, instruments, and services that facilitate the flow
of funds.
It has four components:
1. Financial Institutions
2.
3. Financial Markets
4.
5. Financial Instruments
6.
7. Financial Services
8.
This classification is universally accepted in finance textbooks.
1. FINANCIAL INSTITUTIONS
These are organizations that mobilize savings and provide credit to various sectors.
They are divided into:
A. Banking Institutions
1. Consumer Banks
a. Public Sector Banks
Owned by the Government of India (majority stake).
Examples: SBI, Punjab National Bank, Bank of Baroda.
Case Example:
SBI funds large projects like Reliance’s petrochemical expansion.
b. Private Sector Banks
Owned by private shareholders.
Examples: HDFC Bank, ICICI Bank, Axis Bank.
Case Example:
HDFC Bank finances consumer loans and corporate credit efficiently.
c. Regional Rural Banks (RRBs)
Support rural credit and agriculture.
Examples: Prathama Bank, Karnataka Gramin Bank.
d. Foreign Banks
Operate in India but headquartered abroad.
Examples: Citibank, HSBC, Standard Chartered.
Case Example:
HSBC supports trade finance for Indian exporters.
2. Cooperative Banks
a. State Cooperative Banks
Operate at the state level, providing agricultural credit.
b. Primary / Private Cooperative Banks
Community-level banks that support traders, small businesses.
Case Example:
Urban Cooperative Banks (UCBs) provide MSME loans.
B. Non-Banking Financial Institutions (NBFIs)
1. Organised Financial Institutions
Regulated institutions providing loans, investments, and risk finance.
Includes:
• LIC (insurance)
•
• GIC
•
• NABARD
•
• SIDBI
•
• EXIM Bank
•
• Mutual Funds
•
• NBFCs like Bajaj Finance, HDFC Ltd
•
Case Example:
SIDBI provides funds to MSMEs for growth projects.
2. Unorganised Financial Institutions
Informal sector:
• Moneylenders
•
• Indigenous bankers
•
• Chit funds
•
• Private lenders
•
Used when banks are inaccessible.
2. FINANCIAL MARKETS
Financial markets facilitate buying and selling of financial instruments.
Two major segments:
A. Money Market (Short-term, < 1 year)
1. Call Money Market
Short-term overnight borrowing between banks.
Used to maintain CRR & liquidity.
Example: SBI borrows overnight funds from HDFC Bank.
2. Treasury Bills
Issued by the Government of India, highly secure, 91/182/364 days.
Example: RBI auctions 91-day T-Bills to manage liquidity.
3. Commercial Bills
Bills of exchange used in trade transactions; can be discounted.
Example: A textile exporter uses commercial bills to get instant cash from banks.
B. Capital Market (Long-term)
1. Primary Market
New securities are issued for the first time.
Example: LIC IPO (2022) – shares sold directly to public.
2. Secondary Market
Already issued securities are traded.
Example: NSE, BSE.
3. Derivatives Market
Trading of futures, options, swaps.
Example: Nifty Futures used by traders to hedge market risk.
3. FINANCIAL INSTRUMENTS
These are the assets that are traded in financial markets.
They are classified by:
A. Term (Based on Maturity)
1. Short-Term Instruments
Maturity < 1 year.
Examples: T-bills, Commercial paper, Call money.
2. Mid-Term Instruments
1–5 years.
Examples: Medium-term notes, Commercial loans.
3. Long-Term Instruments
5 years.
Examples: Debentures, Bonds, Equity shares.
B. Type (Based on Nature)
1. Primary Instruments
Direct claims by investors.
Examples: Shares, Debentures, Bonds.
2. Secondary Instruments
Indirect claims created from primary instruments.
Examples: Mutual fund units, Derivatives.
3. Innovative Instruments
Modern hybrid securities.
Examples:
• Convertible Debentures
•
• Zero-Coupon Bonds
•
• Derivative-linked bonds
•
• Asset-backed securities
•
Case Example:
NABARD issues Zero-Coupon Bonds to raise long-term funds.
4. FINANCIAL SERVICES
These are support services that enable efficient movement of funds.
Classified as:
A. Fund-Based Financial Services
1. Leasing
Using an asset by paying rent without owning it.
Case Example:
Air India leases aircraft instead of buying them.
2. Factoring
Selling receivables to a factor for immediate cash.
Case Example:
Textile exporters use factoring to avoid payment delays.
B. Fee-Based Financial Services
1. Merchant Banking
Advisory services for issue management, IPOs, mergers.
Case Example:
Kotak Investment Banking managed Zomato IPO.
2. Credit Rating
Assessing creditworthiness of companies or securities.
Agencies: CRISIL, ICRA, CARE.
Case Example:
CRISIL rates Tata Steel bonds.
3. Merger & Acquisition Advisory
Financial and strategic support for corporate mergers.
Case Example:
EY advised Walmart in its acquisition of Flipkart.
1. Meaning of Finance
Definition (Exam-friendly)
Finance refers to the management of money, i.e., how an organization raises funds, uses funds, and controls
financial resources to achieve its goals.
Explanation
• Every business needs money to start, run, and expand.
•
• Finance includes planning, acquiring, investing, and monitoring funds.
•
• It ensures that the company has the right amount of money, at the right time, from the right sources, and
invests it in the right assets.
•
Case-Based Example
Case: Reliance Jio Launch
When Reliance launched Jio, it required huge funds for towers, fiber optics, marketing, and operations.
Finance decisions ensured:
• Money was raised through debt + equity.
•
• Investments were made in technology and network infrastructure.
•
• Cash was managed to support free data offers in the initial phase.
•
This shows how finance supports major business strategies.
•
2. Functions of Finance
Finance has three major decisions. Each one is important in exams.
A. Investment Decision (Capital Budgeting Decision)
Definition
Investment decision refers to deciding where the company should invest its funds to earn maximum returns—
usually in long-term assets.
Explanation
• Involves evaluating projects like expansion, new product, equipment purchase.
•
• Tools used: NPV, IRR, Payback Period.
•
• Ensures funds go only to the most profitable and safe projects.
•
Case-Based Example
Case: Tata Motors – Launch of Electric Cars
Before investing in EV technology, Tata Motors analyzed:
• Future market demand
•
• Cost of R&D
•
• Expected profits
•
• Government incentives
•
Only after financial evaluation, they invested heavily.
•
This is an investment decision.
•
B. Financing Decision
Definition
Financing decision determines how the company will raise funds—through equity, debt, or retained profits.
Explanation
• Affects the capital structure (debt–equity mix).
•
• Goal is to minimize the cost of capital and maximize shareholder wealth.
•
• Too much debt increases risk; too much equity dilutes ownership.
•
Case-Based Example
Case: Zomato IPO
Zomato decided to raise funds by issuing equity shares (IPO) instead of taking loans.
Reason: Less interest burden + more public participation.
This is a real example of financing decision.
C. Dividend Decision
Definition
Dividend decision involves deciding how much profit should be distributed to shareholders and how much
should be retained for business growth.
Explanation
• Higher dividends please shareholders but reduce reinvestment funds.
•
• Retained earnings help business expansion.
•
• Must balance both for long-term value.
•
Case-Based Example
Case: Infosys Dividend Policy
Infosys is known for giving regular dividends to maintain investor trust but also keeps enough retained earnings for
technology upgrades.
This reflects a balanced dividend decision.
3. Roles of a Finance Manager
A. Profit Maximization
Meaning
Ensuring that all financial decisions lead to maximum profitability of the organization.
Explanation
• Select profitable projects.
•
• Reduce unnecessary costs.
•
• Ensure efficient fund utilization.
•
• Focuses on short-term and long-term profit growth.
•
Case-Based Example
Case: Domino’s India – Cost Optimization
Domino’s finance team reduced logistics and inventory costs using technology.
Result: Increased profits without raising product prices.
Shows profit maximization by better cost control.
B. Agency Function
Meaning
The finance manager acts as a bridge between owners (shareholders) and managers, ensuring that managerial
decisions align with shareholder interests.
Explanation
• Shareholders = owners
•
• Managers = decision-makers
•
• Finance manager must avoid conflicts like overspending, misuse of funds.
•
• Ensures transparency, reporting, and accountability.
•
Case-Based Example
Case: Corporate Governance in HDFC Bank
Finance managers regularly report performance, maintain transparency, and ensure compliance with SEBI norms to
protect shareholder wealth.
This is agency function in action.
C. Risk Management
Meaning
Identifying, analyzing, and reducing financial risks such as market risk, credit risk, interest rate risk, and liquidity
risk.
Explanation
• Use of hedging, insurance, diversification.
•
• Ensures business stability.
•
• Protects the company from losses during uncertainties.
•
Case-Based Example
Case: Airlines Hedging Fuel Prices
Airlines like IndiGo hedge aviation fuel prices to protect themselves from sudden price hikes.
This is a practical example of financial risk management.
TIME AS A SOURCE OF FINANCE
Businesses need funds for different periods depending on the nature of their needs. Time-based classification of
finance includes:
1. Long-term finance → more than 5 years
2.
3. Medium-term finance → 1 to 5 years
4.
5. Short-term finance → less than 1 year
6.
This classification is described in all major financial management books.
1. LONG-TERM SOURCES OF FINANCE (More
than 5 years)
Used for fixed assets, expansion, modernization, research, acquisition, etc.
A. Equity Shares
Definition
Equity represents ownership capital contributed by shareholders.
Key Features
• Permanent capital
•
• Voting rights
•
• High risk, high return
•
• Dividends are not compulsory
•
Case Example
Infosys & TCS regularly issue equity shares for expansion and technology investment.
Equity helped them grow globally without debt burden.
B. Preference Shares
Definition
Shares that give fixed dividends and priority over equity shareholders.
Key Features
• No voting rights
•
• Lower risk
•
• Medium return
•
• Hybrid of debt + equity
•
Case Example
Tata Power issues preference shares to raise long-term funds without diluting control.
C. Internal Accruals (Retained Earnings)
Definition
Profits kept within the business rather than distributed as dividends.
Key Features
• Cheapest source of finance
•
• No dilution of ownership
•
• No fixed obligations
•
Case Example
Reliance Industries uses retained earnings heavily to fund new projects like retail and digital ventures.
D. Debentures / Bonds
Definition
Long-term debt instruments that pay fixed interest.
Key Features
• No ownership dilution
•
• Fixed interest burden
•
• Secured or unsecured
•
Case Example
Adani Group issues corporate bonds to raise long-term capital for infrastructure projects.
E. Term Loans
Definition
Loans from banks or financial institutions for 5–20 years.
Key Features
• Fixed repayment schedule
•
• Secured against assets
•
• Used for purchase of machinery or expansion
•
Case Example
Maruti Suzuki took long-term bank loans to expand its manufacturing plant.
F. Venture Capital Funds
Definition
Equity funding provided to new, innovative, high-risk startups.
Key Features
• High risk, high return
•
• Active involvement in decision-making
•
• Exit via IPO or acquisition
•
Case Example
Flipkart received early venture capital from Accel Partners and Tiger Global.
G. Asset Securitization
Definition
Converting illiquid assets (like loans/receivables) into tradable securities.
Key Features
• Used by banks & NBFCs
•
• Frees up locked capital
•
• Securities sold to investors
•
Case Example
HDFC Bank securitizes housing loans to raise long-term funds.
H. International Financing
Types: ECBs, ADRs, GDRs, Foreign Bonds
Used by large companies for global expansion.
Case Example
Bharti Airtel raised billions through international bonds to expand telecom operations in Africa.
I. Angel Investment
Definition
Funding by wealthy individuals to very early-stage startups.
Key Features
• Small ticket size
•
• Fast approval
•
• Mentorship support
•
Case Example
OYO Rooms received its first funding from angel investor Nidhi Gupta.
2. MEDIUM-TERM SOURCES OF FINANCE (1 to 5
years)
Used for working capital, modernization, repairs, and bridging finance.
A. Debenture / Bonds (Medium Tenure)
Explanation
Companies can issue medium-term bonds (3–5 years) for stable funding needs.
Case Example
Many manufacturing firms issue 3-year bonds to fund working capital gaps.
B. Medium-Term Loans
Explanation
Bank loans with a repayment period of 1–5 years.
Uses
• Equipment repair
•
• Short expansion project
•
• Initial marketing campaigns
•
Case Example
Small and medium enterprises (SMEs) commonly take 3-year loans for capacity improvement.
C. Lease Finance
Definition
Using an asset by paying rental charges without owning it.
Key Features
• No large upfront payment
•
• Useful for equipment and vehicles
•
• Can be operating or financial lease
•
Case Example
Air India leases aircraft instead of purchasing to manage cash flow.
D. Hire-Purchase
Definition
Buying an asset by making down payment + instalments, ownership transfers after final payment.
Case Example
Small logistics companies acquire trucks through hire-purchase financing.
3. SHORT-TERM SOURCES OF FINANCE (Less
than 1 year)
Used for working capital, daily operations, inventory, wages, bills, etc.
A. Trade Credit
Definition
Credit received from suppliers to buy goods now and pay later.
Case Example
Retailers like Big Bazaar purchase goods on 30–90 days credit from suppliers.
B. Short-Term Loans
Definition
Loans from banks for less than 12 months.
Case Example
Businesses take seasonal loans during festivals for inventory stocking.
C. Customer Advances
Definition
Advance money received from customers before delivering goods.
Case Example
Real estate developers collect booking amounts before starting construction.
D. Creditors / Payables
Definition
Amounts owed to suppliers for goods already purchased.
Case Example
Manufacturers buy raw materials on credit and pay after 30–60 days.
E. Factoring Services
Definition
Selling accounts receivable to a factor at a discount for immediate cash.
Case Example
Textile exporters commonly use factoring to avoid cash flow delays.
F. Bill Discounting
Definition
Banks provide cash by discounting (deducting interest) from bills of exchange before maturity.
Case Example
A wholesaler sells goods on credit and gets the bill discounted from SBI for instant cash.
OWNERSHIP AS A SOURCE OF FINANCE
Finance can be classified on the basis of ownership into:
1. Owned Capital
2.
3. Borrowed Capital
4.
This classification is common across all major financial management textbooks.
1. OWNED CAPITAL (Owner’s Funds)
Definition
Owned capital refers to funds contributed by owners of the business or generated internally.
These funds do not need to be repaid and form the base capital of the company.
Key Features
• Permanent capital
•
• No mandatory interest/dividend
•
• High risk, high return
•
• Strengthens financial stability
•
Owned Capital Includes:
A. Equity Capital
Definition
Equity capital is the owner’s contribution in the form of equity shares.
Features
• Voting rights
•
• Highest risk
•
• Dividends are not mandatory
•
• Used for long-term growth
•
Case-Based Example
Zomato IPO → raised equity capital from the public to fund expansion and acquisitions.
This shows how equity acts as long-term owned capital.
B. Preference Capital
Definition
Capital raised by issuing preference shares, which provide fixed dividends and priority over equity.
Features
• No voting rights
•
• Medium risk
•
• Hybrid security (debt + equity)
•
Case Example
Tata Power issues preference shares to maintain long-term capital without losing control.
C. Retained Earnings (Internal Accruals)
Definition
Profits that are reinvested instead of being distributed as dividends.
Features
• Cheapest capital
•
• No dilution of ownership
•
• Supports self-financing
•
Case Example
Reliance Industries uses significant retained earnings for new ventures like Jio and Retail.
D. Convertible Debentures (As Quasi-Owned Capital)
Explanation
Convertible debentures start as debt, but convert into equity shares after a specific period.
Since they ultimately become equity, they are treated as quasi-owned capital.
Case Example
Tata Motors issued convertible debentures that later converted into equity during expansion.
E. Venture Funds
Definition
Capital provided by venture capitalists to high-potential startups.
Features
• High risk, high return
•
• Active involvement in management
•
• Exit through IPO or acquisition
•
Case Example
Ola received early venture funding from SoftBank and Tiger Global, enabling rapid scaling.
Summary of Owned Capital
• Raised from owners or internal profits
•
• Long-term and permanent
•
• High risk, high return
•
• Includes equity, preference, retained profits, convertible debentures (quasi-equity), venture funds
•
2. BORROWED CAPITAL (Debt Funds)
Definition
Borrowed capital refers to funds raised from external parties with a commitment to repay along with interest.
Key Features
• Fixed interest obligation
•
• Lower risk for lenders
•
• Priority in liquidation
•
• Does not dilute ownership
•
Borrowed Capital Includes:
A. Loans from Financial Institutions / Banks
Explanation
Companies borrow long-term or medium-term loans to finance fixed assets or expansion.
Features
• Secured loans
•
• Fixed repayment schedule
•
• Interest is tax-deductible
•
Case Example
Maruti Suzuki borrowed institutional loans to expand its manufacturing capacity.
B. Debentures (Non-convertible)
Definition
Long-term debt instruments issued by companies to borrow funds from the public.
Features
• Fixed interest payment
•
• No ownership dilution
•
• Can be secured or unsecured
•
Case Example
Adani Enterprises issues NCDs (non-convertible debentures) to fund large-scale infrastructure projects.
Summary of Borrowed Capital
• Must be repaid
•
• Fixed interest
•
• Lower cost compared to equity
•
• Includes financial institution loans + debentures
•
SOURCES OF FINANCE (BASED ON ORIGIN)
Finance can be sourced from within the organization (internal) or outside the organization (external).
1. INTERNAL SOURCES OF FINANCE
These are funds generated inside the business through operations or owner contribution.
Definition (Exam-friendly)
Internal sources refer to funds generated within the company, without approaching external parties such as banks
or investors.
Key Features
• No repayment obligation
•
• No interest cost
•
• Maintains business independence
•
• Suitable for long-term growth and stability
•
Internal sources include:
A. Equity Capital
Explanation
Equity capital raised from existing owners is an internal source because it comes from within the business
ownership group.
Benefits
• Permanent capital
•
• No repayment
•
• Improves financial base
•
Case Example
Infosys regularly raises funds from existing shareholders through rights issues (internal ownership-based funding).
B. Preference Capital
Explanation
Preference shares, when issued to existing shareholders, are treated as internal sources because funds come from
within the ownership structure.
Case Example
Tata Group companies often issue preference shares to long-term existing investors.
C. Retained Earnings (Internal Accruals)
Definition
Profit reinvested into the business instead of being paid as dividends.
Features
• Cheapest source
•
• Zero dilution
•
• Enhances company stability
•
Case Example
Reliance Industries uses massive retained earnings to fund new ventures like Reliance Retail and Jio.
D. Convertible Debentures (As Internal / Quasi-Owned Capital)
Explanation
Although initially debt, convertible debentures convert into equity.
Thus, they become part of internal owned capital.
Case Example
Tata Motors issued convertible debentures that later converted into equity during its expansion.
E. Venture Funds
Explanation
When venture capitalists become part owners, their funding becomes part of internal equity structure after
investment.
Case Example
OYO and Ola incorporated VC money as internal equity capital for expansion.
2. EXTERNAL SOURCES OF FINANCE
Definition
External sources refer to funds raised from outside the business, such as banks, markets, or creditors.
Key Features
• Usually involves interest or repayment
•
• Dilutes control or increases liabilities
•
• Suitable for short-term and long-term finance needs
•
External sources include:
A. Reduction of Working Capital
Explanation
Companies sometimes reduce excessive working capital (e.g., reduce inventory, collect receivables faster) to free
up funds.
How it works
• Speeding up receivable collection
•
• Reducing unnecessary stock
•
• Controlling operating costs
•
Case Example
Big Bazaar/Future Group before closure often improved cash flow by reducing inventory holding period.
B. Sale of Assets
Explanation
Funds generated by selling unused or non-core assets, such as machinery, vehicles, or land.
Benefits
• Immediate cash
•
• Removes idle assets
•
• Improves efficiency
•
Case Example
Air India sold non-core real estate assets to reduce debt and improve liquidity.
C. Bonds (Debentures / External Debt Instruments)
Explanation
Companies issue bonds to the public or institutional investors to raise external long-term money.
Features
• Fixed interest payment
•
• No ownership dilution
•
• Can be secured/unsecured
•
Case Example
Adani Ports and Bharti Airtel issue corporate bonds for large-scale expansion and international operations.
Basis Internal Sources External Sources
Meaning Generated inside the business Raised from outside the business
Equity, Preference, Retained profits, Convertible Sale of assets, Bonds, Reduced
Examples
debentures, Venture funds working capital
Cost Low Medium–High
Control No dilution May dilute or create liabilities
Repayment No Yes (in most cases)
INDIAN FINANCIAL STRUCTURE
The Indian financial system is a network of institutions, markets, instruments, and services that facilitate the flow
of funds.
It has four components:
1. Financial Institutions
2.
3. Financial Markets
4.
5. Financial Instruments
6.
7. Financial Services
8.
This classification is universally accepted in finance textbooks.
1. FINANCIAL INSTITUTIONS
These are organizations that mobilize savings and provide credit to various sectors.
They are divided into:
A. Banking Institutions
1. Consumer Banks
a. Public Sector Banks
Owned by the Government of India (majority stake).
Examples: SBI, Punjab National Bank, Bank of Baroda.
Case Example:
SBI funds large projects like Reliance’s petrochemical expansion.
b. Private Sector Banks
Owned by private shareholders.
Examples: HDFC Bank, ICICI Bank, Axis Bank.
Case Example:
HDFC Bank finances consumer loans and corporate credit efficiently.
c. Regional Rural Banks (RRBs)
Support rural credit and agriculture.
Examples: Prathama Bank, Karnataka Gramin Bank.
d. Foreign Banks
Operate in India but headquartered abroad.
Examples: Citibank, HSBC, Standard Chartered.
Case Example:
HSBC supports trade finance for Indian exporters.
2. Cooperative Banks
a. State Cooperative Banks
Operate at the state level, providing agricultural credit.
b. Primary / Private Cooperative Banks
Community-level banks that support traders, small businesses.
Case Example:
Urban Cooperative Banks (UCBs) provide MSME loans.
B. Non-Banking Financial Institutions (NBFIs)
1. Organised Financial Institutions
Regulated institutions providing loans, investments, and risk finance.
Includes:
• LIC (insurance)
•
• GIC
•
• NABARD
•
• SIDBI
•
• EXIM Bank
•
• Mutual Funds
•
• NBFCs like Bajaj Finance, HDFC Ltd
•
Case Example:
SIDBI provides funds to MSMEs for growth projects.
2. Unorganised Financial Institutions
Informal sector:
• Moneylenders
•
• Indigenous bankers
•
• Chit funds
•
• Private lenders
•
Used when banks are inaccessible.
2. FINANCIAL MARKETS
Financial markets facilitate buying and selling of financial instruments.
Two major segments:
A. Money Market (Short-term, < 1 year)
1. Call Money Market
Short-term overnight borrowing between banks.
Used to maintain CRR & liquidity.
Example: SBI borrows overnight funds from HDFC Bank.
2. Treasury Bills
Issued by the Government of India, highly secure, 91/182/364 days.
Example: RBI auctions 91-day T-Bills to manage liquidity.
3. Commercial Bills
Bills of exchange used in trade transactions; can be discounted.
Example: A textile exporter uses commercial bills to get instant cash from banks.
B. Capital Market (Long-term)
1. Primary Market
New securities are issued for the first time.
Example: LIC IPO (2022) – shares sold directly to public.
2. Secondary Market
Already issued securities are traded.
Example: NSE, BSE.
3. Derivatives Market
Trading of futures, options, swaps.
Example: Nifty Futures used by traders to hedge market risk.
3. FINANCIAL INSTRUMENTS
These are the assets that are traded in financial markets.
They are classified by:
A. Term (Based on Maturity)
1. Short-Term Instruments
Maturity < 1 year.
Examples: T-bills, Commercial paper, Call money.
2. Mid-Term Instruments
1–5 years.
Examples: Medium-term notes, Commercial loans.
3. Long-Term Instruments
5 years.
Examples: Debentures, Bonds, Equity shares.
B. Type (Based on Nature)
1. Primary Instruments
Direct claims by investors.
Examples: Shares, Debentures, Bonds.
2. Secondary Instruments
Indirect claims created from primary instruments.
Examples: Mutual fund units, Derivatives.
3. Innovative Instruments
Modern hybrid securities.
Examples:
• Convertible Debentures
•
• Zero-Coupon Bonds
•
• Derivative-linked bonds
•
• Asset-backed securities
•
Case Example:
NABARD issues Zero-Coupon Bonds to raise long-term funds.
4. FINANCIAL SERVICES
These are support services that enable efficient movement of funds.
Classified as:
A. Fund-Based Financial Services
1. Leasing
Using an asset by paying rent without owning it.
Case Example:
Air India leases aircraft instead of buying them.
2. Factoring
Selling receivables to a factor for immediate cash.
Case Example:
Textile exporters use factoring to avoid payment delays.
B. Fee-Based Financial Services
1. Merchant Banking
Advisory services for issue management, IPOs, mergers.
Case Example:
Kotak Investment Banking managed Zomato IPO.
2. Credit Rating
Assessing creditworthiness of companies or securities.
Agencies: CRISIL, ICRA, CARE.
Case Example:
CRISIL rates Tata Steel bonds.
3. Merger & Acquisition Advisory
Financial and strategic support for corporate mergers.
Case Example:
EY advised Walmart in its acquisition of Flipkart.