Merchant Banking is a combination of Banking and consultancy services. It provides consultancy to its clients for financial, marketing, managerial and legal matters.merchant banking provides various services to its customers like projectmanagement,issue management, portfolio management services, counseling, loan syndication,capital assistance etc. In India Merchant Banking activities started from the year 1967. Currently a lot banks are providing merchant banking services. The merchant banking business has increased over a short period of time and with continued economicreforms. However, a stiff competition exists in this line and survival will depend upon the financial skills and spectrum of financial services and instruments offered by the Merchant Banker. Indian merchant banks have strong client relationship, multiple revenue growth initiative with concrete action plan. Their growth is controlled by a sound risk management system and disciplined cost management.