Wholesale or corporate banking refers to dealing with limited large-sized customers. Instead of maintaining thousands of small accounts and incurring huge transaction costs, under wholesale banking, the banks deal with large customers and keep only large accounts.
These are mainly corporate customers. This results into few transactions with large amounts thus, resulting into cost reduction and higher fees.
Foreign banks in India are mostly concentrating in wholesale banking which is aided by fully computerized banking operations. Growth in this type of banking was aided by increased merchant banking and investment banking activities.