Presentation on management thesis

Under the supervision of

Prof.Anand Patil

Presented by
K.ANBAZHAGAN
M0208004
Abstract
• The project explains the importance of
Investment Banking.

• The different products of Investment Banking ,

and the functions of Investment banking.

• And how the Banking business were getting into

the Investment Banking business
 Cont…
• Banks started to help companies
government and agencies. To raise money
issuing and selling in the security markets.
• They started to assist public and private
corporations in raising funds in the capital
markets.
• Advisory services for mergers ,acquisitions
and other types of financial transactions.
 To have a detailed study on Investment Banking.

 Study the reasons for moving towards from

Banking to Investment Banking.

 Steps for improvement in Investment Banking

Research Methodology
Research is done by market observation andthrough
the questionnaire. The sample size is 50 and the
data is collected from the people.
• Sample Size : 50
• Sampling : convenience sampling
• Primary Data: Market observation and
Questionnaire
• Secondary Data: web sites.
 Structure and services
Investment Banking

Font Middle Office Back

Office Office

Corporate Mergers and Trading Project

finance acquisitions finance
 INVESTMENT BANKS
Domestic Players Foreign players
• SBI capital markets •JP Morgan chase bank
• Kotak Mahindra capital •DSP Merrill Lynch
•Deutsche Bank
company
•Citi group
• The Industrial Development
Bank of India (IDBI)
• ICICI securities ltd
• Avendus
• Bajaj capital
 FEES FOR THE SERVICES
 
2005
  2006
Citi 30.7 Citi 49
DSP Merrill Lynch 26.5 DSP Merrill Lynch 44
Kotak-Goldman 20.4 JM Morgan Stanley 26.2
Sachs
JP Morgan 14.8 JP Morgan 21.8
JM Morgan Stanley 12.8 Barclays Capital 21.6
ICICI Bank 12.3 Kotak-Goldman Sachs 21.5
HSBC Holdings 12.1 UBS 19.4
Deutsche Bank AG 9.1 Deutsche Bank 17.2
ENAM Financial 6.9 ICICI Bank 16.1
ABN AMRO 5.6 CLSA 13.4
 Cont….
 2007  2008
   
Citi 79.5 UBS 109.2
JM Morgan 58.8 Citi 70
Stanley
DSP Merrill 57.1 JM Financial 56.6
Lynch
JP Morgan 40 DSP Merrill Lynch 46.4
Deutsche Bank 40 Goldman Sachs 44.9
AG
ABN AMRO 39.2 Deutsche Bank AG 31.2
UBS 26.7 JP Morgan 29.9
HSBC Holdings 26 HSBC Holdings 19.3
Barclays Capital 22.8 Lehman Brothers 17.8
 Equity Market capitalization of
Investment Banks-2008
Large-New Private ◆ ICICI
Bank / US$4.6bn
Banks ◆ HDFC Bank / US$2.2bn

Small-New Private ◆ UTI Bank / US$600mn

Banks ◆ Kotak Mahindra / US$450mn
◆ IDBI Bank / US$210mn

Old ◆ Federal Bank / US$130mn

Private (Regional) ◆ Bank of Rajasthan / US$70mn
Banks
◆ Bank of Punjab / US$40mn
Top M&A deals in India 2009
Cross border M&A by indian companies
Rank of Investment Banks
Reasons for movements
• Competitors
• More revenues
• Avoid losses
• For deposits
• Entry of foreign players
• Policy initiatives
 Questionnaire
1.Age
Age Category No of Responends
Below 20 2
age 21 - 30 29
age 31 - 40 18
age 41 - 50 1
above 50 0
2.Education qualification

Education No of Respondents
qualification
PUC 3
Graduation 25
PG 18
Other 4
3.What is your monthly income?
Monthly income No of Respondents
<10k 6
10k-20k 22
20000-30000 17
above 30000 5
 4.For what purpose you save the
money?
Purpose No of Respondents
For investment 24
For business 2
health care 8
For future contingencies 33
 5.Are you aware of the Investment
Banking?
Awareness No of Respondents

Yes 38
No 12
 6.Which Investment Banking service
you are using?
Services Used No of Responents
Equity 6
Mutual Fund 12
Insurance 18
IPO 2
 7.Which Investment Banker is providing
effective service?
Effective Service No of Responents
City Group 6
ICICI 11
IDBI 5
Kotak Mahindra 8
SBI 2
SBM 3
AXIS Bank 3
 8.Are you satisfied with financial services
offered by your investment banker?

Satisfactory level No of Responents

Yes 27
No 11
9.Do you feel is it good for bank to move
towards investment banking?

Bank- Investment No of Responents

banking
Yes 21
No 17
10.What type of problems you find in the
investment banking?
Problems No of Responents
Technical 7
Time 8
Availability 20
Service 2
Charges 1
11.What type of improvements do you suggest
to the investment banker?

suggestions No of Responents
Good returns 13
More products 18
Advertisement 21
FINDINGS AND SUGGESTIONS:
• From the project main finding is the amount of revenue are getting from
investment banking services are equal to commercial banking
revenues.
• Investment bankers have more competition from foreign banks.
• Foreign banks are playing more roles in mergers and acquisition deals.
Suggestions:
• Investment bankers have to concentrate on the advertisements.
• And also they have to offer more products equal to their competitors.
• They have to give effective services to the clients.
Conclusion
• In India present scenario investment banks are
playing more roles in financial markets on behalf of
their clients. In the form of raising funds, trading
securities, advisory services. But investment banks
have more competition from foreign banks.
• If they concentrate more on advertisement and
effective services to the clients they will get more
success.