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Which financial institution in India took the lead in introducing merchant banking activities in 1969?
- a)State Bank of India (SBI)
- b)National & Grindlays Bank
- c)Industrial Finance Corporation of India (IFCI)
- d)Industrial Credit and Investment Corporation of India (ICICI)
Correct answer is option 'B'. Can you explain this answer?
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Which financial institution in India took the lead in introducing merc...
Introduction to Merchant Banking in India
Merchant banking refers to a combination of banking and financial services that includes underwriting, loan syndication, and capital raising for companies. In India, this sector witnessed its inception in 1969, marking a significant development in the financial landscape.
National & Grindlays Bank's Role
- In 1969, National & Grindlays Bank became the first institution to introduce merchant banking activities in India.
- The bank initiated these activities to cater to the growing needs of corporate clients seeking financial assistance for their business ventures.
Key Contributions of National & Grindlays Bank
- Underwriting Services: They provided underwriting services for public issues, helping companies raise capital through initial public offerings (IPOs).
- Advisory Services: The bank offered consultancy on mergers, acquisitions, and restructuring, facilitating corporate growth strategies.
- Loan Syndication: National & Grindlays Bank played a pivotal role in arranging large loans for corporates by syndicating loans among multiple lenders.
Impact on the Financial Sector
- The introduction of merchant banking activities by National & Grindlays Bank laid the foundation for the growth of the merchant banking industry in India.
- It encouraged other financial institutions to enter the merchant banking space, leading to a more diverse financial ecosystem.
Conclusion
In summary, National & Grindlays Bank's pioneering efforts in 1969 not only marked the beginning of merchant banking in India but also significantly influenced the evolution of financial services in the country, establishing a model that would be followed by numerous other institutions.
Merchant banking refers to a combination of banking and financial services that includes underwriting, loan syndication, and capital raising for companies. In India, this sector witnessed its inception in 1969, marking a significant development in the financial landscape.
National & Grindlays Bank's Role
- In 1969, National & Grindlays Bank became the first institution to introduce merchant banking activities in India.
- The bank initiated these activities to cater to the growing needs of corporate clients seeking financial assistance for their business ventures.
Key Contributions of National & Grindlays Bank
- Underwriting Services: They provided underwriting services for public issues, helping companies raise capital through initial public offerings (IPOs).
- Advisory Services: The bank offered consultancy on mergers, acquisitions, and restructuring, facilitating corporate growth strategies.
- Loan Syndication: National & Grindlays Bank played a pivotal role in arranging large loans for corporates by syndicating loans among multiple lenders.
Impact on the Financial Sector
- The introduction of merchant banking activities by National & Grindlays Bank laid the foundation for the growth of the merchant banking industry in India.
- It encouraged other financial institutions to enter the merchant banking space, leading to a more diverse financial ecosystem.
Conclusion
In summary, National & Grindlays Bank's pioneering efforts in 1969 not only marked the beginning of merchant banking in India but also significantly influenced the evolution of financial services in the country, establishing a model that would be followed by numerous other institutions.
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Which financial institution in India took the lead in introducing merc...
National & Grindlays Bank (now Grindlays Bank) was the first financial institution in India to take the lead in introducing merchant banking activities and inaugurated its "Merchant Banking Division" in January 1969.
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Which financial institution in India took the lead in introducing merchant banking activities in 1969?a)State Bank of India (SBI)b)National & Grindlays Bankc)Industrial Finance Corporation of India (IFCI)d)Industrial Credit and Investment Corporation of India (ICICI)Correct answer is option 'B'. Can you explain this answer?
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