INNOVATIONS IN BANKING AND INSURANCE

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GUIDED BY:KRISHNAN SIR

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V.G VAZE COLLEGE

NAME: AARTI MENGHANIROLL NO: B032YEAR: 2008-09CLASS: S.Y.BANKING AND

INSURANCE

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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 4th of S.Y.BCOM 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.

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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.

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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

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. The branch manager did not have all the

information , it was only available at the head office.

7. Limited time was given to survey.

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CONTENTS

Chapter 1 IntroductionFunctions

Various activitiesHierarchy

Chapter 2 AnalysisSurveyGraphs

Chapter 3 FindingsSuggestionsConclusion

Bibliography

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Chapter 1.

1. Introduction

2. Hierarchy

3. Functions

4. Activities

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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.

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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.

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

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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

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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

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associated with 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

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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

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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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

MANAGINGDIRECTOR

DIRECTORS

VICEPRESIDENT

ASSOCIATES

ANALYST

Senior level officer, take

marketing efforts

Senior level officer, take

marketing efforts

Client developers, role is similar to vice president

Client developers, role is similar to vice president

Project managers,Manages the

clients

Project managers,Manages the

clients

MBA’s, check the work of analyst,

do financial modeling

MBA’s, check the work of analyst,

do financial modeling

Undergraduates do actual administrative work, handle phone

calls.

Undergraduates do actual administrative 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.

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

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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.

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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 raise/manage funds,

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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

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

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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

Developing and financing new business ventures 23

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

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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.

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

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encompasses power generation, airport 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:

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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

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 prepare

themselves for these events by taking steps favored by

the capital markets. Investment banker can guide a

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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

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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.

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

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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

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

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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

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.32

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

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.

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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.

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Venture capital typically comes from institutional

investors and high net worth individuals and is pooled

together by dedicated investment firms.

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 35

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.

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The Mutual Funds in India have low risk as it is managed professionally.

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 37

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

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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.

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Following are the three categories available for investment purpose.

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

INVESTMENTS

DEPOSITS MUTUAL FUNDS INSURANCE

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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

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

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and Investment in Pure Gold. ICICI Bank facilitates following investment products:

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

Forex services

Pure goldMutual funds

Government bonds

Insurance

products

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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 19934. Magnum global fund.

Some of the insurance plans are as follows:

1. Unit linked insurance plans2. Unit plus child plan3. Unit plus elite4. Unit linked pension plan 5. Unit linked money back plan

HDFC BANK

Hdfc bank diversifies its investment plans as:

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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. Bonds3. Securities.

Under this scheme, the folio charges are Rs. 500 and mandatory service tax of 12.36%. The bank charges about

Short

term

Medium term

Long term

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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.

InsuranceInsurance is divided into 3 parts as:

Life insurance General insuranceHealth 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

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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

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Axis bank

Depository ServicesAxis 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.

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

ING VYASA BANK

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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.

Investment options

Retirement schemes

EXCHANGE-TRADED FUNDS

Savings

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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.

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.

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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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o

FDI means 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.

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 55

Suggestions

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

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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

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would improve for the better and people would invest more

in the near future.

SUGGESTIONS

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

fraud.

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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.

CONCLUSIONOur 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

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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 their clients' orders to the appropriate trading desks, who can price and execute trades, or structure new products that fit a specific need.

Bibliography

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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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