TRANSACTION BANKING

What is transaction banking? Transaction banking are services that are offerings which includes commercial banking products and services for corporate clients and financial institutions, including domestic and cross border payments, professional risk mitigation for international trade and the provision of trust, agency, depository, custody and related services. On the income side superior transaction banking solutions are a combination of very low funding costs, moderately high fee income, low risk provisions, low operating costs, and low risk-asset weightings. The next slide shows some of the banks with world wide presence with theirs transaction banking offerings.

TRANSACTION BANKING OFFERINGS ACROSS BANKS STANDARD CHARTERED Cash Management Trade finance and supply chain finance solutions Security Services RMB Settlement ICICI BANK Roaming Prepaid and Trade Current Account Trade Collections Payments CITIBANK Cash Management Services Trade Services Securities services YES BANK Cash Management Services Trade Finance Capital Markets and Escrow Account Services

Why is transaction banking important for a bank?

Transaction banking key benefits

THE PLAYING FIELD – PAYMENTS AND TRANSACTION SERVICES

TRANSACTION BANKING REVENUE VOLUMES

Transaction Banking Future – forces at work and implications

Transaction Banking Future

BANK IN FOCUS HIGHER ROA STRATEGIC BRANCH NETWORK CONSISTANT EARNINGS DESPITE REGULATORY OR ECONOMIC FLUCTUTATIONS STRATEGIC BRANCH NETWORK LOWER DEPENDENCE ON LENDING BASED EARNINGS HIGH CASA

HDBK compared to peers Axis Bank relies heavily on corporate fees generated, which are lumpy. A large portion of the corporate fees are generated from corporate guarantees where growth is slow in weak business cycles