What does 'merchant banking' mean?

Merchant Banking means : Financial Services undertaken by Banks, Generally  forming its Subsidiaries with Expert management in the Financial sector and economy and corporate affairs.

Main activities are connected with Finance and Capital Markets and include:

1.    International Finance

2.    Long term Loans for Corporate/companies

3.    Underwriting Public Issue of Shares and Bonds of Corporate/companies

4.    Acts as banker to Public Issues.

5.    The scope is further defined on financial service requirements basis and service undeertaken.

Merchant Bank do not provide regular banking service to general public as in the case of banks do.  

Their main source of income is commission on underwriting, brokerage and service charges as the case may be.

An activity that includes corporate finance activities, such as advice on complex financings, merger and acquisition advice (international or domestic), and at times direct equity investments in corporations by the banks.

a financial institution engaged primarily in accepting foreign bills, advising companies on flotations and takeovers, underwriting new issues, hire-purchase finance, making long-term loans to companies, and managing investment portfolios, funds, and trusts

Merchant banking are the institution which provide the long term capital to the companies and engage in underwriting.

i agree with MR Krishna

Mr.Krishna has answered the Q. completely 

I don't know

Thanks for the invitation.

I agree with Mr. Krishna.