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GUIDED BY: KRISHNAN SIR
V.G VAZE COLLEGE
NAME: AARTI MENGHANI ROLL NO: B032 YEAR: 2008-09 CLASS: S.Y.BANKING AND INSURANCE
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
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.
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.
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.
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.
Chapter 2 Chapter 3
Introduction Functions Various activities Hierarchy Analysis Survey Graphs Findings Suggestions Conclusion Bibliography
1. 2. 3. 4.
Introduction Hierarchy Functions Activities
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,
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 the underlying capital markets, to construct different financial products. So an Investment Banker is an
individual or institution who/which acts as an underwriter broker/dealer or agent for corporations markets and for municipalities issuing securities. Most also maintain operations, maintain 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 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 cutthroat 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. 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.
Senior level officer, take marketing efforts
DIRECTORS VICE PRESIDENT
Client developers, role is similar to vice president
Project managers, Manages the clients
MBA’s, check the work of analyst, do financial modeling
Undergraduates do actual administrative work, handle phone 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. 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 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. including marketing documents ("Pitches" or "Pitchbooks") and documents for live
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,
than to do it on ones own, as the later option may lead to a disaster and major loss of funds.
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.
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 Preparing applications for franchises or licenses
Assisting clients in understanding changing market
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 of the professional world in services areas and to international as power, transport
companies interested in projects in India, or any part such surface telecommunications 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 assist investments project in several projects in developing countries and it also uses its expertise to other investors.
encompasses power generation, airport construction and transportation including air cargo transportation, development infrastructures. of roads, airports and associated
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 Recognizing the most promising buyers or
(mergers, acquisitions and/or divestitures)
Developing valuation models Creating innovative debt and/or equity financing Considering other equity and joint venture partners
to facilitate completion of a transaction
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
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. 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.
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.
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, 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 .
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 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
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 (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. 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 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.
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.
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.
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.
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:
Governm ent bonds
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.
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 Hdfc bank diversifies its investment plans as:
Shor t 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 is divided into 3 parts as: 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 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 Equity Capital Markets Strategic Advice Privatizations Structured Financial Solutions
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 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
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 ageappropriate 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.
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.
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.
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
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.
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.
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.
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.
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 their clients' orders to the appropriate trading desks, who can price and execute trades, or structure new products that fit a specific need.
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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