Guarantees
A guarantee is a contract to perform the promise or discharge the liabilities of a third person in case of his/ her default either through financial guarantee or contract guarantee.

A financial guarantee is issued by one bank in favor of another bank on the behalf of the customer. The lending bank grants a loan of a specific amount for a specific time period whereas the issuing bank guarantees the repayment of the loan including mark-up.

Contract guarantees are of three kinds: (i) Bid Bond which is an irrevocable undertaking by the bank on behalf of the customer to the beneficiary on their first written demand in case the contractor/ supplier having been awarded the contract fails to sign the contract; (ii) Performance bond/ guarantee is given by the bank on behalf of the customer whereby the bank undertakes to make unconditional payment of the first written demand if the applicant does not fulfill his obligations under the terms of the contract; and (iii) Advance mobilization guarantee may provide for the liability of the bank to be reduced with part performance of the contract in respect of which the guarantee is given.

Debt Restructuring/ Re-Profiling
When the business wants to survive in financially challenging times, debt restructuring can offer access to needed assistance from experienced professionals who understand the issues facing both debtors and creditors. The bank will negotiate on the behalf of the customer to satisfy the creditors based on certain payments programs. Significant modifications in debt, operations and structure of a company is made through debt restructuring so that the customer can eliminate the financial problems and improve its business by establishing fair and equitable debt repayment practices to the creditors.

Underwriting
Underwriting means that each risk-taker writes his/ her name under the total amount of risk that he/ she is willing to accept at a specified premium. When underwriting a public issue, the bank will satisfy itself that the amount required can be raised on conditions that are acceptable to investors at a price at which the issue may be expected to be fully subscribed. The bank then makes itself responsible for taking up any of the issue which has not been taken up by others. The bank may make arrangements with other institutional investors to share risk.