Documente Academic
Documente Profesional
Documente Cultură
AND INSURANCE
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GUIDED BY:
KRISHNAN SIR
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V.G VAZE COLLEGE
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ACKNOWLEDGEMENT
country.
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Methodology
1.Data
Information is obtained by primary sources as well
2.Period of study
The study was conducted from 25th November 2008 till 15th
February 2009.
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Executive Summary
Banking today has become one of the major industries,
covering almost all aspects of life that we can think of . the
various services and products made available are as per the
requirements of common man. The various products gives
an opportunity to choose the product that suits the best to
the customer.
Money being the most important commodity in life it can
be channeled in the most profitable way today. Due
liberalization, various methods are available today to
channel our savings with care. These new products insure
that we are save and we get fixed returns.
There are various types of products available today of
which investment banking is one of them which helps a
person to invest in various products like mutual funds,
equity shares, and insurance.
Other than this, the other types of services are wholesale
banking, core banking, retail banking. The main objective
behind providing these wide range of products and services
is to achieve maximum customer satisfaction. Besides,
banking is also becoming growing field for investment.
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Limitations
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CONTENTS
Chapter 1 Introduction
Functions
Various activities
Hierarchy
Chapter 2 Analysis
Survey
Graphs
Chapter 3 Findings
Suggestions
Conclusion
Bibliography
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Chapter 1.
1. Introduction
2. Hierarchy
3. Functions
4. Activities
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INTRODUCTION
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available to clients who would otherwise be too small
to make their business profitable.
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possible cause for the recent market timing scandal in the
US Mutual Funds and Investment Management sector. It
suggests that in previous decades in the 20th century,
investment banking and investment bankers saw their
role as one of stewardship to the investors in the pension
fund and other monies they managed. In more recent
times some investment bankers see their role as one of a
salesman, seeking to attract the highest level of funds
under management. This latter role may bring the
investment banker into conflict with the interests of the
investors placing funds with them. The graphic depicts a
dollar symbol on its side with two scenes. The first scene
on the left shows the investment banker accounting to
investors on fund performance. Note that the investors
are in control. In the scene on the right, the investment
banker is in his office controlling matters, with a less that
deferential style.
The words "Investment Banking" are added. This shows
the changing role of investor banker with the passage of
time. But the basic function of the I-bankers has
remained the same. The only difference that has occurred
is in the way of delivering the customers.
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Hierarchy of Investment Banking
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MANAGING Senior level officer,
DIRECTOR take marketing
efforts
Client developers,
DIRECTORS role is similar to
vice president
Undergraduates do
actual administrative
ANALYST work, handle phone
calls.
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promoted. The first role of the Associate is to oversee
and to check the work of the Analyst. In addition, the
Associate will often help with presentation and
analytical work, including financial modeling.
The primary role of the Vice President is to be the
project manager, whether for marketing activities or
while on a live transaction. The VP must manage the
client and the more senior bankers, and oversee the
work of the Analysts and Associates.
The SVP/Director may either play a role similar to that
of the VP or play a client development role like the
MD.
As the senior level banker, the role of the Managing
Director is mostly one of client development. The MD
will likely be the one with the senior level company
relationships and is typically responsible for leading
marketing efforts.
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Activities of Investment Banking
Industry
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than to do it on ones own, as the later option may lead
to a disaster and major loss of funds.
Advisory Function
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Finally it will advise the clients about the best source
and recommend a group of institutions that can
assemble the package and fulfill the funding needs.
Strategic Advisory
Successful strategies in the media, entertainment and
communications space require a particularly keen
understanding of the shift from old to new business
models. For example, as user-generated content
continues to explode into open distribution platforms,
traditional companies must rethink the way theysatisfy
consumer appetites and measure the results.
Corporate Advisory
The investment bankers can deliver a variety of
advisory services including all types of restructuring,
joint ventures, acquisitions & mergers and asset sales.
In particular, it offers international companies a highly
professional conduit for transacting business in India.
The Investment Banking division can assist in forming
joint ventures, identifying suitable partners as well as
providing the full range of establishment services
needed for conducting business in India. The I-bankers
also acts for businesses seeking
investments/acquisitions in other parts of the world.
This is further backed up by their ability to arrange the
required capital. I-bankers have very strong sector
skills in automotive, engineering, healthcare, telecom,
media, energy, business process outsourcing, financial
services, and real estate and infrastructure areas.
Project Advisory Services
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Providing specialized project services from concept to
commissioning – from pre-investment feasibility
studies and appraisals to development of joint ventures
and company formation is an important function of the
investment bankers.
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• Advising clients on which strategies to pursue
(mergers, acquisitions and/or divestitures)
• Recognizing the most promising buyers or
acquisition targets
• Developing valuation models
• Creating innovative debt and/or equity financing
structures
• Considering other equity and joint venture partners
to facilitate completion of a transaction
Corporate Finance
• Consolidations
• Divestitures
• Growth capital
• Joint ventures and/or strategic alliances
• Leveraged or management buyouts
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• Mergers and acquisitions
• Refinancing
• Recapitalizations
• Other shareholder monetization and liquidity
initiatives
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public stock offerings, a great deal of capital is
actually raised through private placements with
institutions, specialized investment funds, and private
individuals. The investment bank will work with the
client to structure the transaction to meet specific
objectives while being attractive to investors.
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Other activities
Asset Securitization
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be used to make new loans, while the lender accepts loan
payments and passes the payments on to the bondholders.
This process is called securitization. However, lenders have
begun to securitize loans themselves, especially in the areas
of mortgage loans. Because of this, and because of the fear
that this will continue, many Investment Banks have
focused on becoming lenders themselves,[3] making loans
with the goal of securitizing them. In fact, in the areas of
commercial mortgages, many investment banks lend at loss
leader interest rate in order to make money securitizing the
loans, causing them to be a very popular financing option
for commercial property investors and developers .
Loan Syndication
Benefits of Syndication:
Syndicated loans provide borrowers with a more
complete menu of financing options. In effect, the
syndicate market completes a continuum between
traditional private bilateral bank loans and publicity
traded bond markets. This has resulted in a more
competitive corporate finance market, which has
permitted issuers to achieve more market oriented and
cost effective financing. Benefits to each party involved
are listed below:
Venture Capital
Venture capital (also known as VC or Venture) is a
type of private equity capital typically provided to
immature, high-potential, growth companies in the
interest of generating a return through an eventual
realization event such as an IPO or trade sale of the
company. Venture capital investments are generally
made as cash in exchange for shares in the invested
company.
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Venture capital typically comes from institutional
investors and high net worth individuals and is pooled
together by dedicated investment firms.
Mutual funds
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Banc assurance:
Banc assurance, the provision of insurance services by
banks, is an established and growing channel for insurance
distribution, though its penetration varies across different
markets. Europe has the highest banc assurance penetration
rate. In contrast, penetration is lower in North America,
partly reflecting regulatory restrictions. In Asia, however,
banc assurance is gaining in popularity, particularly in
China, where restrictions have been eased. The research
shows that social and cultural factors, as well as regulatory
considerations and product complexity, play a significant
role in determining how successful banc assurance is in a
particular market.
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banc assurance penetration in emerging markets, banc
assurance will likely see further significant development in
the coming years.
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Chapter 2
Survey
Graphs
Benefits of SIP
4. Benefits of Compounding.
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Following are the three categories available for investment
purpose.
INVESTMENTS
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According to the graph above, it is noticed that
investment banking originated around 3-4 years in 50
percent of the banks and the other half started around
5-6 years back.
ICICI BANK
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Insurance
Forex Governm
services ent bonds
products
Mutual
Pure gold
funds
e-INVEST
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SBI has brought a new hassle free solution for investment
in IPO called e-Invest. Under the instruction of SEBI Bank
has introduced this supplementary process for applying in
public issue.
HDFC BANK
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Shor
t
term
Medium term
Long term
1. Equity
2. Bonds
3. Securities.
Under this scheme, the folio charges are Rs. 500 and
mandatory service tax of 12.36%. The bank charges about
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50 paisa per transaction. In financial markets, the only
constant thing is change. At such times, HDFC Securities
offers you a unique gamut of services designed to put you
in charge of your finances and lets you trade in the comfort
of your home or office. Finally, you can trade with
complete ease. HDFC Bank also presents Mudra, an
offering worth its weight in gold. Mudra is a 24 Carat,
99.99% pure gold bar that you can purchase for
investment or gifting.
Insurance
Insurance is divided into 3 parts as:
Life insurance
General insurance
Health insurance
Bank of India.
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Bhima Policy and it holds about 51% stake of Star Union
Decline Insurance company.
HSBC BANK
Mergers and
Privatizations
Acquisitions
Equity Capital Structured Financial
Markets Solutions
Strategic Advice
Cooperation Bank
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Cooperation bank investor services:
Corporation Bank has set up an Investor Services
Department at its Corporate Office at Mangalore. For any
assistance regarding dematerialization of shares, share
transfers, transmissions, change of address, non-receipt of
dividend, duplicate/missing share certificates and other
matters pertaining to your shares.
Corporation Bank's shares are listed on Bombay Stock
Exchange Ltd and the National Stock Exchange Ltd. (NSE)
and are permitted for trading on few of the other recognized
stock exchanges in India.
Corporation Bank shares are included in Specified Group in
BSE and CNX Nifty Junior index of NSE. The fair volume
of trading provides enough entry/exit opportunities to the
shareholders.
Depository Services
Axis Bank is a registered member (Depository Participant) of
NSDL. In this system, physical security holdings are
converted into electronic (or in other words, dematerialized)
holdings. Axis Bank has been enrolled as a Depository
Participant by the NSDL - India's first depository. You can
avail of all the depository-related services by just opening an
account with NSDL through Axis Bank.
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Investment
options
Retirement Exchange-
traded Funds Savings
schemes
2.Exchange-traded Funds
Exchange-traded funds, or ETFs for short, are a basket of
stocks that meet set criteria. They provide a mutual fund’s
diversity plus the flexibility of trading anytime, like a stock.
Most ETFs are index funds, meaning they parallel market
and sector indexes, such as the S&P 500 or Russell 2000.
They are not actively managed, like mutual funds.
Advantages
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• Low Expenses: Most ETFs are linked to market
indexes, so they are less expensive to run than
"actively-managed" mutual funds, leading to generally
lower expense ratios. High ratios can erode your
returns. ETFs have transaction fees when you trade,
just like stocks.
• Trade like a Stock: ETFs trade just like stocks in the
markets, so you can buy or sell any time during the
market day.
3. Savings
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Kotak Realty Funds Group (KRFG) plans to
opportunistically invest in and add value to Portfolio
Investments across a broad spectrum of real estate sectors
and geographies. Its investment objective is to produce long
term capital appreciation for investors by providing capital
to real estate-related projects and companies across India.
Increased off shoring by international companies
Demographic shifts stimulating home ownership
Robust consumer spending favoring organized retail
Institutionalization of property markets
Inflow of foreign business travelers and tourists
Large cohort of well-educated technical workers and
expansion of the middle class
Proliferation of financial services to the retail market
Bank of Baroda
FDI-Foreign Direct Investment
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According to the graph, the most riskiest investment is the
investment in stock market. Most of the banks have rated
the stock market the riskiest because of the market
fluctuations. It is not necessary that a person investing
today may gain more, it is possible that the amount invested
may be low or may be the same.
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As per the diagram, almost all the banks provide
investment services to NRI’s and so special privileges are
given . Due to demat services its convenient for NRI’s to
operate their investments in India as the locals can do.
Except for 1 bank where investments are not known to the
customers so as such there are no such services.
Chapter-3
Findings
Suggestions
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Conclusion
Findings
While conducting survey it could be figured out that
investment banking is an emerging trend not only amongst
businessmen but also amongst youngsters, housewives, and
students . Some of the figures like that of long term or short
term investment it was observed that the demand for long
term investment is more it might be because many people
between the age group of 20 years to 35 years are investing
more. All the banks today have diversified their investment
products because it helps to balance the risks and rewards
of one’s investments. There are wide range of products
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offered by banks like mutual funds, equity shares, stock,
bonds, gold, property, wealth management and insurance.
Gold investment and Mutual Fund is very famous.
Moreover the services and products are not restricted to the
localites but the NRI’s are eligible for investing . A specific
investment strategy is followed by almost all banks which
consists of advising the customers, having a demat account
for carrying on the trade. With this it becomes convenient
for the customers to operate and even if a customer doest
not have a demat account then the bank also helps the
customer to have one. Due to wide range of products
available that cater to the needs of customers, have led to a
rising trend in banks investment which in turn has helped
banks yield funds . However , due to the global meltdown
the level of investments have gone down and this has
affected the banks too. But it is believed that conditions
would improve for the better and people would invest more
in the near future.
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SUGGESTIONS
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5. With the help of CRM the banks can concentrate on
gaining more customers and retaining them and existing
customers also.
6. The banks should be well suited to assure their customers
about the returns so that the banks can gain customers
confidence.
CONCLUSION
Our Investment Banking business is dedicated to providing
corporations, entrepreneurs and investors, the highest
quality independent financial advice and transaction
execution. Our professionals offer a full range of services
and transaction expertise, including private placements of
equity, capital raising services in public markets,
mezzanine and convertible debt, mergers and acquisition
and restructuring advisory services. We have a track record
of successfully closing more than 100 transactions to date.
Investment banking is professional management of various
securities (shares, bonds, etc.) and other assets (e.g. real
estate), to meet specified investment goals for the benefit of
the investors. Investors may be institutions (insurance
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companies, pension funds, corporations etc.) or private
investors (both directly via investment contracts and more
commonly via collective investment schemes e.g. mutual
funds). The investment management division of an
investment bank is generally divided into separate groups,
often known as Private Wealth Management and Private
Client Services. Asset Management market making, traders
will buy and sell financial products with the goal of making
an incremental amount of money on each trade. Sales is the
term for the investment banks sales force, whose primary
job is to call on institutional and high-net-worth investors to
suggest trading ideas (on caveat emptor basis) and take
orders. Sales desks then communicate their clients' orders
to the appropriate trading desks, who can price and execute
trades, or structure new products that fit a specific need.
Bibliography
1. Primary source:
Visit to the following banks:
HDFC Bank, Axis Bank, HSBC Bank, Bank of India, SBI,
Bank of Baroda, ING VYSA Bank, Cooperation Bank,
ICICI Bank, Kotak Mahindra Bank.
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3. Secondary source:
www.hdfcbank.com,
www.kotakmahindra.com,
www.moneycontrol.com
www.economictimes.com
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