INNOVATIONS IN BANKING AND

INSURANCE

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 GUIDED BY: SHRADDHA MAM

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 SHAILENDRA DEGREE COLLEGE

NAME: KARAN PATIL

ROLL NO: 42
YEAR: 2019-20
CLASS: T.Y.B.COM ( B & I )

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 ACKNOWLEDGEMENT

I feel immense pleasure in presenting my project on “Investment Banking In India”

As part of our curriculum in semester 5th of T.Y.B.COM Banking and Insurance.

At the end of this project, I would like to thank my professor who provided us his
valuable guidance and suggestions which has helped to complete my project on time.

Objective of the study

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The major objective of the study are:

To get a clear view of the services available in our country.

To highlight the various banking products and services under the banking sector.

To make a common man aware of various banking facilities as per his needs and size

of pocket.

Through this project a person can have an idea of what can be provided and to what

extent.

Gaining much better understanding and knowledge of banks as field of banking

investment. To know how banks are covering every aspect of life.

Methodology

1.Data

Information is obtained by primary sources as well secondary sources. The secondary

data is gathered from books, websites, pamphlets.

2.Period of study

The study was conducted from 25th November 2008 till 15th February 2009.

Executive Summary

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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.

Limitations

1. Some of the banks were less cooperative.

2. H ad to visit the banks two to three times to get all the in formation.
3. Limited information.
4. Had to wait for a long time.
5. Some of the banks didn’t give letter of acknowledgement.
6. .Limited time was given to survey.

CONTENTS
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Chapter 1 Introduction
Functions
Various activities
Hierarchy
Chapter 2 Analysis
Survey
Graphs
Chapter 3 Findings
Suggestions
Conclusion

Bibliography

Chapter 1.

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 1. Introduction

2. Hierarchy

3. Functions

4. Activities

INTRODUCTION

Investment banking is a very vast area in the field of banking and finance.
Investment banking includes the activities of raising finance, managing them,
advising about investments and marketing of financial products. Where there are
separate investment banks in the US and Europe, in India, mostly the commercial
banks undertakes investment banking in whole or in part of it. Mostly merchant
banking is undertaken in India and the same is taken to be investment banking. It
should be understood that merchant banking is only a part of investment banking
and not the other way round. Investment banks help companies and governments
raise money by issuing and selling securities in the capital markets (both equity
and debt), as well as providing advice on transactions such as mergers and
acquisitions. Until the late 1980s, the United States and Canada maintained a
separation between investment banking and commercial banks.

Financial intermediaries who perform a variety of services, including aiding in the

sale of securities, facilitating mergers and other corporate reorganizations, acting
as brokers to both individual and institutional clients, and trading for their own
accounts. An investment bank is different from your traditional bank down the
street in the sense that it does not keep any deposits with itself to pay you an
interest nor does it guarantees the "safekeeping" of your money. An investment
bank is more specialized organization that takes in your money and after
analyzing the possible risks and economic conditions gives you advice to convert
it into more money. The services provided by Investment Banks takes many
forms: securities underwriting, stock and bond trading, facilitating mergers and
acquisitions, arranging and funding syndicated loans and providing financial
advice to companies on aspects like pricing of securities.

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A broader and better definition of investment banking is to think of investment
banking as an industry, which either trades directly in capital market products or
uses the underlying capital markets, to construct different financial products. So
an Investment Banker is an individual or institution who/which acts as an
underwriter or agent for corporations and municipalities issuing securities. Most
also maintain broker/dealer operations, maintain markets for previously issued
securities, and offer advisory services to investors. investment banks also have a
large role in facilitating mergers and acquisitions, private equity placements and
corporate restructuring.

A majority of investment banks offer strategic advisory services for mergers,

acquisitions, divestiture or other financial services for clients, such as the trading
of derivatives, fixed income, foreign exchange, commodity, and equity securities.
Trading securities for cash or securities (i.e., facilitating transactions, market-
making), or the promotion of securities (i.e., underwriting, research, etc.) is
referred to as the "sell side."

Dealing with the pension funds, mutual funds, hedge funds, and the investing
public who consume the products and services of the sell-side in order to
maximize their return on investment constitutes the "buy side". Many firms have
buy and sell side components. The largest bulge-bracket firms on Wall Street
include Goldman Sachs, Merrill Lynch, Citi,Morgan Stanley, JPMorgan Chase,
and UBS. Investment banking is a field of banking that aids companies in
acquiring funds. In addition to the acquisition of new funds, investment banking
also offers advice for a wide range of transactions a company might engage in.

Traditionally, banks either engaged in commercial banking or investment banking.

In commercial banking, the institution collects deposits from clients and gives
direct loans to businesses and individuals. In the United States, it was illegal for a
bank to have both commercial and investment banking until 1999, when the
Gram-Leach-Bliley Act legalized it. The line between investment banking and
other forms of banking has blurred in recent years, as deregulation allows banking
institutions to take on more and more sectors. With the advent of mega-banks
which operate at a number of levels, many of the services often associated with

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 investment banking are being made available to clients who would otherwise be
too small to make their business profitable.

Careers in investment banking are lucrative and one of the most sought after
positions in the money-market world. A career in investment banking involves
extensive traveling, grueling hours and an often cut-throat lifestyle. While highly
competitive and time intensive, investment banking also offers an exciting
lifestyle with huge financial incentives that are a draw to many people.

This graphic depicts what some would argue is a

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.
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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.

Hierarchy of Investment Banking

What is the typical job title hierarchy or ladder?

Most investment banks have the same strict hierarchy or ladder of financial
professionals. From junior to senior, the typical hierarchy is (1) Analyst, (2)
Associate, (3) Vice President (VP), (4) Senior Vice President (SVP)/Director and
(5) Managing Director (MD). Some banks have different names for some of these
positions, but the relative roles of each tend to be consistent within all I-banks.

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 MANAGING Senior level officer,
Senior level officer,
DIRECTOR take marketing
take marketing
efforts
efforts

Client developers,
DIRECTORS Client developers,
role is similar to
role is similar to
vice president
vice president

VICE Project managers,

Project managers,
PRESIDENT Manages the
Manages the
clients
clients

MBA’ s, check the

MBA’ s, check the
ASSOCIATES work of analyst, do
work of analyst, do
financial modeling
financial modeling

Undergraduates do
Undergraduates do
actual administrative
ANALYST actual administrative
work, handle phone
work, handle phone
calls.
calls.

What is the general role of each of the different levels?

Analysts are typically men and women directly out of undergraduate institutions
who join an investment bank for a two-year program. As Analysts are the bottom
rung on the investment banking ladder, they do the vast majority of the actual
"work."
Associates are typically either individuals directly out of top MBA programs or
Analysts that have been 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.

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 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.

What kind of work do Analysts and Associates do on a day-to-day basis?

Broadly speaking there are three types of work that Analysts and Associates do:
presentations, analysis and administrative tasks. Presentation work involves the
putting together and writing of various PowerPoint presentations including
marketing documents ("Pitches" or "Pitchbooks") and documents for live
transactions.
The second main task of an Analyst is analytical work. Pretty much anything done
in Excel is considered analytical work. The most important types of analytical
work are typically valuation (i.e. how much is a company worth) and financial
modeling.
Administrative work involves things like scheduling and setting up conference
calls and meetings, making travel arrangements and keeping a list of deal team
members up to date. Associates tend to have significant ongoing interaction with
clients and with other investment bankers while on live transactions.
Activities of Investment Banking Industry

Whether investment banking is performed by a company as its sole activity or

simply as a department in a commercial bank, the main activities remain the
same, as follows: Advising the clients, Administration of the funds, Underwriting
of issues and Distribution of financial products. Other related activities that most
of the investment bankers undertake are: mergers and acquisitions, investment
management, securities sale and securities trading as well as insurance product
designing, pension plan designing, hedging foreign currency positions, real estate
dealing and other assets management services. While an investment banker
charges some fees to the client, which could be a fixed sum or a percentage of the
funds raised or managed, and it may seem that the fees charged are high in money
terms, it is always cheaper and wiser to go to a professional money manager to

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 raise/manage funds, than to do it on ones own, as the later option may lead to a
disaster and major loss of funds.

Advisory Function

The advising function starts with the investment banker assessing the fund
requirement of its client, whether an individual or a body corporate. The
requirements are not only related to the amount of funds required, but also the
purpose and time for which the requirement is there. After that the investment
banker will advise the client about the cost and benefit of various sources of
finance which are viable and the timing of each one for raising the funds. 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.

An investment banker excels at anticipating these trends and identifying growth

opportunities. They have the luxury of being able to concentrate all of their energies
on media, entertainment and communications properties around the world.

These professionals offer expert assistance in the following areas:

 Strategic business planning

 Negotiating business contracts
 Improving management operations

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  Developing and financing new business ventures
 Preparing applications for franchises or licenses
 Assisting clients in understanding changing market dynamics.

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

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.

Providing professional services to international companies interested in projects

in India, or any part of the world in areas such as power, telecommunications and
surface transport infrastructure.

Providing specialized inputs, on request, to assist in the profitable and economic

implementation of projects in close co-operation with promoters and designated
shareholders. Assisting investment entities of the group in successfully identifying
and implementing projects in any part of the world.

The I-bankers are many a times itself committed in long-term investments in

several projects in developing countries and it also uses its expertise to assist
other project investors. This expertise encompasses power generation, airport

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 construction and transportation including air cargo transportation, development of
roads, airports and associated infrastructures.

Mergers and Acquisitions

Mergers and acquisitions is the another area where the investment bankers have
been active for a very long time. They help there clients to find out prospective
merger partners or an acquisition target or prospective clients for sale. In addition
they may be asked to devise appropriate strategies for the acquisition, including
the raising of sufficient for the same.

In today’s market, successful acquisitions and divestitures depend upon expert

guidance to negotiate an unprecedented confluence of complementary and
competing business models. Investment bankers have the professional knowledge
to issue that guidance from start to finish and to help their clients achieve the
highest possible returns.

Our expert capabilities include:

 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

When contemplating a sale of a business, a merger, raising equity, procuring a

working capital line of credit or any number of other transactional events; it is
important to think through issues before acting. Most companies need corporate
finance advisory services to evaluate their options and to get the company ready
to maximize its value in the marketplace. It is just a fact that equity comes
cheaper, loan rates come down and companies sell for more money when they
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 prepare themselves for these events by taking steps favored by the capital
markets. Investment banker can guide a company through this process and devise
a strategy that enables the company to meet its objectives. Working through
investment bankers network of strategic partnerships and affiliates, they can help
direct the best people and resources to accomplish the objective at no “extra cost”
to the client. Their ability to be objective and associate the company’s needs with
the right investment banking alternative is a valuable customer driven service that
aligns their interest with company’s, they remembering that company is their
client and their duty is towards them.

Investment bankers had known their creativity in connecting financial resources with
their clients’ capital needs. Through our long-standing relationships with sources of
debt and equity financing with various firms and overseas they arrange financial
packages to fund all our clients’ capital needs including:

 Consolidations
 Divestitures
 Growth capital
 Joint ventures and/or strategic alliances
 Leveraged or management buyouts
 Mergers and acquisitions
 Refinancing
 Recapitalizations
 Other shareholder monetization and liquidity initiatives

Investment banker’s goal is to consistently create

optimum financial structures and pricing, regardless of changes in the availability of
capital, fluctuating political and governmental climates and regulatory environments.

What makes an investment banker an ideal partner in corporate finance is our

ability to carefully measure the pros and cons of every financial option available
and to create favorable options where none exist. An investment bank can assist a
firm in raising funds to achieve a variety of objectives, such as to acquire another
company, reduce its debt load, expand existing operations, or for specific project
financing.

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Capital can include some combination of debt, common equity, preferred equity,
and hybrid securities such as convertible debt or debt with warrants. Although
many people associate raising capital with 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.

Other activities

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 In addition to the above mentioned activities, investment bankers have been
interested in designation of insurance products, pension plans, hedging risk and
risk management, foreign currency activities, real estate dealing, etc. the field of
an investment banker has been growing fast owing to the fact that the finance
company is seeking a lot of innovations and are fast emerging.

Asset Securitization

Another development in recent years has been the vertical integration of debt
securitization. Previously, investment banks had assisted lenders in raising more lending
funds and having the ability to offer longer term fixed interest rates by converting the
lenders' outstanding loans into bonds. For example, a mortgage lender would make a
house loan, and then use the investment bank to sell bonds to fund the debt, the money
from the sale of the bonds can 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

A syndicate facility is a lending facility, defined by a single loan agreement, in which

several or many banks participate. Syndicate loan is more suitable as compared to
simple from single or multiple banks under following circumstances:

 A borrower wants to raise a relatively large amount of money quickly and

conveniently.
 The amount exceeds the exposure limits or appetite of any one lender
 The borrower does not want to deal with a large number of lenders

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 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:

Benefits to the Borrowers:

1. deals with a single bank
2. Quicker and simpler than other ways of raising capital (e.g. Issue of bond or
equity).
Benefits to the Lead Bank
1. Fund arrangement and other fees can be earned without committing capital.
2. Enhancement of bank’s reputation.
3. enhancement of bank’s relationship with the clients
Benefits to the Participating Bank’s
1. Access to lending opportunities with low marketing/
processing costs.
2. It triggers more opportunities to participate in future syndications as network of
the banks established a level of comfort with each other.
3. In case the borrower runs into difficulties, participant banks have equal
treatment.

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.

Venture capital typically comes from institutional investors and high net worth
individuals and is pooled together by dedicated investment firms.

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 Venture capital is most attractive for new companies with limited operating
history that are too small to raise capital in the public markets and are too
immature to secure a bank loan or complete a debt offering. In exchange for the
high risk that venture capitalists assume by investing in smaller and less mature
companies, venture capitalists usually get significant control over company
decisions, in addition to a significant portion of the company's ownership (and
consequently value).

Mutual funds

Mutual Funds in India are financial instruments. These funds are collective investments
which gather money from different investors to invest in stocks, short-term money market
financial instruments, bonds and other securities and distribute the proceeds as dividends.
The Mutual Funds in India are handled by Fund Managers, also referred as the portfolio
managers. The Securities Exchange Board of India regulates the Mutual Funds in India.
The share value of the Mutual Funds in India is known as net asset value per share
(NAV). The NAV is calculated on the total amount of the Mutual Funds in India, by
dividing it with the number of shares issued and outstanding shares on daily basis.

Mutual Funds in India - Advantages

 The Mutual Funds in India offer flexibility by means of dividend reinvestment,

systematic investment plans and systematic withdrawal plans.
 These funds are available in small units, so they are affordable to the small
investors.
 The fees charged for to the custodial, brokerage and others services are very low
in case of Mutual Funds in India.
 These funds have the option of redeeming or withdrawing money at any point of
time.
 The Mutual Funds in India have low risk as it is managed professionally.
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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.

The outlook for banc assurance remains positive. While development in individual
markets will continue to depend heavily on each country’s regulatory and business
environment, bancassurers could profit from the tendency of governments to privatize
health care and pension liabilities. In emerging markets, new entrants have successfully
employed banc assurance to compete with incumbent companies. Given the current
relatively low banc assurance penetration in emerging markets, banc assurance will likely
see further significant development in the coming years.

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Chapter 2

Interpretation of the data

Survey

Graphs

Interpretation of the data

RECENT INVESTMENTS OF BANKS

Investment decisions are crucial as they help secure our future. So today are banks are
offering systematic investment plan , a smart financial planning tool that helps you to
create wealth, by investing as little as Rs. 55 per month over a period of time.

Systematic investment plan (SIP) is an investment technique that allows you to provide
for the future by investing small amounts of money in mutual fund schemes of your
choice. Sip ensures that the investor continues to be invested in a disciplined manner and
thereby stays on course to achieve his financial goals. Moreover, investing at an early
stage in life lets you enjoy the benefits of two powerful investment strategies:
1. Rupee cost averaging
2. Power of compounding.

Benefits of SIP

1. Disciplined approach to investments

2. Takes advantage of rupee cost averaging

3. Simple, Convenient and Easy to monitor

4. Benefits of Compounding.

Following are the three categories available for investment purpose.

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 INVESTMENTS

DEPOSITS MUTUAL FUNDS INSURANCE

Most of the banks today are offering wide range of products for their customers so that
the customers can channel their savings in the most profitable and less risky way.
Following are some banks offering products under the above stated.

Origination of investment banking in Indian banks

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.

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ICICI BANK

ICICI Bank is India's largest private sector bank in market capitalization and second
largest overall in terms of assets. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels
and specialized subsidiaries and affiliates in the areas of investment banking, life and
non-life insurance, venture capital and asset management. (These data are dynamic.)
ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has got its equity
shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National
Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange
(NYSE).

At ICICI Bank, all our needs are care of. Along with Deposit products and Loan
offerings, ICICI Bank assists you to manage your finances by providing various
investment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments
through Initial Public Offers and Investment in Pure Gold. ICICI Bank facilitates
following investment products:

Insurance

Forex Governm
services ent bonds

products

Mutual
Pure gold
funds

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 STATE BANK OF INDIA

The Bank is actively involved since 1973 in non-profit activity called Community
Services Banking. All our branches and administrative offices throughout the country
sponsor and participate in large number of welfare activities and social causes. Our
business is more than banking because we touch the lives of people anywhere in many
ways. The commitment to nation-building is complete & comprehensive.

e-INVEST

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.

Various mutual fund plans available are:

1. Magnum balanced fund.

2. Magnum index fund.
3. Magnum multiplier plus 1993
4. Magnum global fund.

Some of the insurance plans are as follows:

1. Unit linked insurance plans

2. Unit plus child plan
3. Unit plus elite
4. Unit linked pension plan
5. Unit linked money back plan

HDFC BANK

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 Hdfc bank diversifies its investment plans as:

Short term

Medium term

Long term

As per the bifurcation, short term investments refers to fixed deposits where investments
are from 16 days to 1 year with 8.5 % interest and additional 2.5% interest for services
rendered. Incase of withdrawal within 30 days then the interest charges is 10.5%.

Medium term refers to mutual funds which include:

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 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:

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Life insurance
General insurance
Health insurance

Bank of India.

Bank of India In the last decade, diversified into related areas like merchant banking,
mutual fund, management of stock exchange clearing house, venture capital, depository
services, bullion trading and credit card. Diversification has been brought about by
establishing subsidiaries and joint ventures and also by acquiring strategic stakes in well
run companies.

The bank’s investment are the same as mentioned as above , the only add on point is that
BOI offers its tailor made and most popular insurance scheme which is Swast Bhima
Policy and it holds about 51% stake of Star Union Decline Insurance company.

HSBC BANK

HSBC is the largest bank in Hong Kong and second largest group in the world after
Citicorp.

HSBC India, along with HSBC Investment product and HSBC Insurance, it offers
international Gold Card and Classic Credit Cards from VISA and MasterCard and debit
cards from Visa. HSBC in India gives 24 hour banking services, extensive network of
ATMs, integrated Call Centre and also HSBC e-banking.

The Investment Bank has 2 primary business interests in India namely:

Global Investment Banking (GIB) group provides public and private sector and
Government clients with strategic advice and provides critical financial advice in the
areas of:

Mergers and Acquisitions Privatizations

Equity Capital Markets Structured Financial 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.

The mutual fund products of LIC MF, UTI MF, DSP Mutual Fund, Reliance Mutual
Fund, Franklin Templeton Mutual Fund, Prudential ICICI Mutual Fund and Principal
PNB Mutual Fund are now available through the branches of Corporation Bank.
Corporation Bank in association with LIC of India presents life insurance cover to the
housing loan taken by you –

1. New Corp Jeevan Griha Raksha .

2. NEW Corp Jeevan Raksha

Axis bank

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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Transfer of shares and settlements
Receipt of Corporate Benefits
Dematerialisation of shares
Rematerilialisation
Pledge-Hypothecation
Freezing or Locking of Accounts

ING VYASA BANK

Investment
options

EXCHANGE-
Retirement TRADED Savings
schemes FUNDS
Funds that act your age

Experience teaches us when to play it safe or take calculated risks. An ideal investment
for a 30-year-old is different from one for a 40-year-old, because the countdown to
retirement differs. Target date funds are balanced corresponding to your retirement date.
These funds rebalance every year to make sure you have an age-appropriate mix of
stocks, bonds, and other assets. And it gets more conservative as the time you need your
money gets closer. That strategy cuts the chance of surprises late in the game.

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
 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.
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 3. Savings

Saving for the Long Run

Similar to Orange Savings Account, it allows you to grow your retirement money with
the security of FDIC insurance.

 Great rate – you'll earn an impressive 1.85% Annual Percentage Yield (effective
02/18/2009).

 No minimum balance required – everyone earns the same high yield

 No Fees and no hidden charges – earn more money on your money.

Kotak Mahindra bank

The bank focuses its investment plans mainly on real estate investment schemes which is
considered to be the best investment plan with low risk.

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

FDI means Foreign Direct Investment. India Foreign Direct Investment includes
investments in the infrastructure development projects including construction of bridges
and flyovers, finance sector including banking and insurance services, real estate
development, retail sector etc. The foreign direct investment definition says the direct
31
investments in any productive assets in a country by any foreign company are called
foreign direct investment or FDI.

FDI in India includes FDI inflows as well as FDI outflow from India. Also FDI foreign
direct investment and FII foreign institutional investors are a separate case study while
preparing a report on FDI and economic growth in India. FDI and FII in India have
registered growth in terms of both FDI flows in India and outflow from India. The FDI
statistics and data are evident of the emergence of India as both a potential investment
market and investing country.

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.

The second riskiest investment is mutual funds. Like stock market investment are
dependent on Net Asset Value . The bottom 2 riskiest investments are gold and insurance.
Gold investments are less riskier because though the fluctuations are on daily basis but
the rates of gold do not fall or increase drastically as in stock market or mutual funds.
Moreover, insurance is about securing oneself against the damages , so the returns is
gained after a period of fixed time its not on daily basis. So the investor has to pay fixed
premium at agreed intervals and not on daily basis.

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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

 Conclusion
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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 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

1. There should be more governance so as to avoid any fraud.

2. The banks should be transparent to the investors about their investments.
3. Accurate Guidance should be given to the investors.
4. The banks should implement Customer Relations Management .
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.

35
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 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
36
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.

3. Secondary source:

www.hdfcbank.com,

www.kotakmahindra.com,

www.moneycontrol.com

www.economictimes.com

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