‘PROJECT REPORT IN A STUDY ON MERCHANT BANKING

FINANICAL SERVICES IN STATE BANK OF INDIA (SBI)

ACADEMIC YEAR 2021-2022

A project submitted to university of Mumbai for partial completion of the

Degree of
Master in Commerce
By
Bhavna Ganesh Gaikwad
ROLL NO. 46

Under the guidance of :

Dr. Neelam Shaikh
Sheth N.K.T.T.College, near kharkar aali, Thane (West)
May 2022
 Sheth N.K.T.T.College,Thane (west)

CERTIFICATE

This is certify that Mrs. Has worked and duly completed her project work for the of
degree of master in commerce under the faculty of commerce in the subject of
account and finance and her project is entitled, ‘A study on merchant banking in
financial services in state bank of india (SBI)’. Under my supervision.

I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any degree or diploma of any
university.

It is her own work and fact reported by her personal findings and investigation.

Date of Submission :
Name and signature of
Guiding Teacher

Internal Guide External Guide Co-ordinator

Principal
 Declaration by learner

I the undersigned mrs. Bhavna Ganesh Gaikwad here by, declare that the work
embodied in this project work titled ‘a study on merchant banking in financial
services in state bank of india’. Forms my own contribution to the research work and
has not been previously submitted to any other university for any degree/diploma to
this or any other university.

Wherever reference has been made to previous works, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

___________________________
Name and Signature of the learner

Certified by
Name and signature of the Guiding Teacher
__________________________
 Acknowledgment

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the university of Mumbai for giving me chance to do
this project.
I would like to thank my principal, Dr. Dilip Patil for providing the necessary
facilities required for completion of this project.
I take this opportunity to bank our coordinator Anil Khadse, for her moral support and
guidance.
I would like to thank to express my sincere gratitude towards my project guide
Dr. Neelam Shaikh whose guidance and care made the project successful.
I would like to my college library, for having provided various reference books and
magzines related to my project.
Lastly, I would like to thank each and every person who directly helped me in the
completion of the project especially my parents and papers who supported me
throughout my project.
INDEX
chapter no. titles of chapters page no.
chapter 1 introduction 1-20.
1.1 Meaning of merchant banking
1.2 History of merchant banking
1.3 Abstract
1.4 Merchant banking in SBI
1.4.1 introduction of SBI
1.4.2 vision and mission of SBI merchant banking
1.5 Advantages and merits of merchnat banking
1.6 Disadvantages and demerits of merchant banking
1.7 Reasons for growth of merchant banking
1.8 Objectives of merchant banking
1.9 Scope ofmerchant banking
1.10 . Function of merchant banking
1.11 Diagramme 1.1
1.12 Services of merchant banking
1.13 comparision between merchant bank vs. commercial bank
1.14 Registration of merchant bankers
1.15 Qualities of good merchant bankers
chapter 2 Research methodology 21-31.
2.1 what is research ?
2.2 what is methodology ?
2.3 sources of data
A primary data
B secondary data
2.4 statistical tools
2.5 Objectives of study
2.6 scope of the study
2.7 limitations of the study
2.8 sampling method
2.8.1 meaning of sampling
2.8.2 defination of sampling
2.8.3 sampling size
2.8.4 sample area
2.9 reasearch design
2.10. hypothesis
2.10.1 introduction
2.10.2 types of hypothesis

chapter 3 Review of litrature 32-47.

3.1 introduction
3.2 reviews
chapter 4 company profile 48-52.
4.1 Introduction of company
4.2 merchant payment by corporate (SBI)
4.3 MPAT limit types
4.4 SBI YONO service
chapter 5 Data analysis and data interpretation 53-74.
5.1 meaning of data analysis
5.2 meaning of data interpretation
5.3 survey questionnaires
chapter 6 conclusion, suggestions, recommendation 75-82
6.1 conclusion
6.2 suggestion
6.3 recommendation
6.4 findings
6.5 biblography
Annexure
 CHAPTER 1
INTRODUCTION :

Merchant banking is a professional service provided by the merchant

banks to their customers considering their financial needs, for adequate consideration
in the form of fee. Merchant banks are banks that conduct fundraising, financial
advising and loan services to large corporations.
In India, merchant banking services were started only in 1967 by National
Grindlays Bank followed by Citi Bank in 1970. The State Bank of India was the first
Indian commercial bank having set up a separate merchant banking Division in 1972.
The origin of merchant banking can be traced back to 13th century when a
few family owned and managed firms engaged in sale and purchase of commodities
were also found to be engaged in banking activity. Thus merchant Banking survived
and continued during the 13th century.

1.1 DEFINATION :

The term merchant bank refers to a financial institution that

conducts underwriting, loan services, financial advising, and fundraising services for
large corporations and high-net-worth individuals (HWNIs). Merchant banks are
experts in international trade, which makes them specialists in dealing with
multinational corporations. Unlike retail or commercial banks, merchant banks do
not provide financial services to the general public. Some of the largest merchant
banks in the world include J.P. Morgan Chase, Goldman Sachs, and Citigroup.

1.2 MEANING OF MERCHANT BANKING :

Merchant banking is a professional service provided by the

merchant banks to their customers considering their financial needs, for adequate
consideration in the form of fee. Merchant banks are banks that conduct fundraising,
financial advising and loan services to large corporations.
1.3 HISTORY OF MERCHANT BANKING

A merchant bank is historically a bank dealing in commercial loans

and investment. In modern British usage it is the same as an investment bank. Merchant
banks were the first modern banks and evolved from medieval merchants who traded
in commodities, particularly cloth merchants. Historically, merchant banks' purpose
was to facilitate and/or finance production and trade of commodities, hence the name
"merchant". Few banks today restrict their activities to such a narrow scope.
In modern usage in the United States, the term additionally has
taken on a more narrow meaning, and refers to a financial institution providing capital
to companies in the form of share ownership instead of loans. A merchant bank also
provides advisory on corporate matters to the firms in which they invest.
Merchant banker is a person who provides assistance for the
subscription of securities. The merchant banker plays an important role and carries a
lot of responsibilities like, private placement of securities, managing public issue of
securities, stock broking, international financial advisory services, etc.
Today, a modern version of the merchant bank has begun to emerge,
with the traditional model reimagined for the 21st century and getting a contemporary
twist. Modern merchant banks like Umbra can offer a much wider array of activities
than our medieval counterparts, while appealing to discerning investors, funds and
companies with our differentiated model and fin tech approach.

Umbra is pleased to be at the forefront of this timely revival of the

merchant banking model.

Merchant banking progressed to holding deposits for settlement of

“billette” or notes written by those who were still brokering the actual grain. This is
how the merchant’s trading benches (bank is derived from the Italian for
bench, banco, as in a counter),set up in the great grain markets, became places for
holding money against a billette (note) which evolved into a “bill of exchange” and
then a cheque. These deposited funds were initially intended to be held for the
settlement of grain trades, but often were used for the bench’s own trades in the
meantime, and discounted interest rates were offered to depositors against what could
be earned by employing their money in the bench’s trade.

A acquirer could also be a British term for a bank providing various

financial services like accepting bills arising out of trade, providing advice on
acquisitions, mergers, exchange underwriting new issues, and portfolio management
The Focus Definition: A acquirer are often generally described as a financial services
company with a private equity investment arm offering investment banking and
ancillary services also . Because a acquirer acts not only as an advisor and broker but
also as a principal, a acquirer features an extended run approach than a typical
investment bank and is extremely concerned with the viability of each investment
opportunity and providing the right advice for a strong partnership with each client
company. In banking, a acquirer could also be a standard term for an Investment
Bank. It can also be used to describe the private equity activities of banking.
1.4 ABSTRACT

Globalization of Indian Economy has made the whole economy open, which has
move multinational player in era of the financial services. Government has now open
up the doors of investments especially in the area of banks and insurance which leads
to competitive environment for the present players. The word merchant bank does not
have a fixed definition as this term is used differently in different countries. In general
the merchant banks are the financial services, solutions and advice to corporate
houses. Merchant banks are popularly called “Accepting and issuing houses”.
Merchant banking is one of the oldest and specialized financial intermediaries in the
primary market. Merchant banking is a much desired innovative step undertaken by
the commercial banks in India. The need for merchant banking was stressed by the
Banking Commission (1972). In India, at present, a substantial number of Merchant
Bankers are operating under the direct supervision of Securities and Exchange Board
of India (SEBI). The present study attempt has been made to evaluate the performance
of SBI capital market Ltd. in Merchant banking activities. The selected Merchant
Bank emphasis has given on categorization of Merchant Bankers and in this direction
the Merchant Bank which comes under the purview of Category-I registration with
Securities and Exchange Board of India has been chosen to appraise that performance.
1.5 MERCHANT BANKING IN STATE BANK OF INDIA (SBI)

1.5.1 INTRODUCTION :
In the year 1972, SBI became the first commercial bank to set up a
distinct division for merchant banking.
The State Bank of India was the first Indian Bank to set up
merchant Banking division in 1972. SBI Capital Markets Ltd. (SBICAP), India’s
largest domestic Investment Bank, began its operations in August 1986 and is a
wholly owned subsidiary and investment banking arm of State Bank of India (SBI),
the largest commercial bank in India. SBICAP offers the entire bouquet of Investment
Banking and corporate advisory services. The service bouquet includes the full range
of financial advisory services under one umbrella covering Project Advisory and Loan
Syndication, Structured Debt Placement, Capital Markets, Mergers and Acquisitions,
Private Equity and stressed Assets Resolution. As a complete solutions provider to
clients in investment banking and corporate advisory, SBICAP offers them advice,
innovative ideas, and unparalleled execution across all stages in their business cycle
ranging from venture capital advisory, project advisory, buy and sell-side advisory,
accessing financial markets to raise capital and even restructuring advisory in their
turn-around phases. SBICAP is a global leader in the area of Project Loan Syndication
and has lent crucial support to the Indian infrastructure sector. SBICAP is known for
its astute professionalism and business ethics. The team of execute The merchant
banking services help the entrepreneurs to come up with industrial setups in these
areas. Besides, the merchant banks help the entrepreneurs to explore the joint venture
opportunities in the foreign markets. Qualified and dedicated professionals with vast
experience in the fields of Project Advisory, M&A Advisory, Corporate Strategy or
Business Restructuring Advisory, arranging of Private Equity/Structured Finance,
Equity, Debt and Hybrid Capital rising. Headquartered in Mumbai, SBICAP has 6
regional offices across India (New Delhi, Kolkata, Hyderabad, Chennai, Bangalore
and Ahmedabad), 2 branch offices (Pune and Guwahati) and 5 subsidiaries – SBICAP
(Singapore) Limited. The regional offices are located strategically at major business
hubs in the country and closely liaise with clients at those and nearby centres.
SBICAP also offers services in the broad areas of mergers and acquisitions, project
advisory, Structural finance, and capital markets. Equity Broking and Research,
Security Agency and Debenture Trusteeship and Private Equity Investment and Asset
Management through its wholly- owned subsidiaries SBICAP Securities Limited,
SBICAP Trustee Co. Ltd. and SBICAP Ventures Limited, respectively.
1.5.2 VISION AND MISSION OF SBI MERCHANT BANKING

A . MISSION :
We will create products and services that help our customers achieve their
goals. We will go beyond the call of duty to make our customers feel valued. We will
be of service even in the remotest part of our country. We will offer excellence in
services to those abroad as much as we do to those in India.

B. VISION :
Founded in 1806, Bank of Calcutta was the first bank established in India
and over a period of time evolved into State Bank of India (SBI). SBI represents a
sterling legacy of over 200 years. It is the oldest commercial bank in the Indian
subcontinent, strengthening the nation’s trillion-dollar economy and serving the
aspirations of its vast population. The Bank is India’s largest commercial Bank in
terms of assets, deposits, branches, number of customers and employees, enjoying the
continuing faith of millions of customers across the social spectrum.
Headquartered at Mumbai, SBI provides a wide range of products and services to
personal, commercial enterprises, large corporates, public bodies and institutional
customers through its various branches and outlets joint ventures, subsidiaries and
associate companies.
 1.6 ADVANTAGES AND MERITS OF MERCHANT BANKING

1. You will receive corporate counseling :

Merchant banks will usually provide corporate counseling as part of their
service package to corporate units. This is done to evaluate the overall financial
performance of a company that is seeking to make a splash in an international market.
These evaluations can help a company get feedback that is honest and critical to their
success, helping to build a better reputation amongst investors and stakeholders.
Suggestions, opinions, and even detailed reports may all be part of the counseling
process.

2. You will receive honest project feedback :

Merchant banks will work with your company to develop an idea for a
project or review the project profile you’ve already created. You’ll be able to
determine an estimated cost for the project, look for financing solutions, and begin to
create the action steps that are needed to get the project off the ground. Some
merchant banks will even provide help in obtaining government consent to get the
project started. You’re going to know if the idea you have is viable at the end of this
process.

3. You may be able to restructure your capital :

A merchant bank is able to offer relevant advice to companies about
mergers and acquisitions in their industry. They will examine the current capital
structure of the company and decide what the current extent of capitalization happens
to be. Alternative capital structures may be recommended to ensure regulatory and
legal compliance in foreign markets. Disinvestment issues may also be examined here
to ensure that any proposed project or investment has the best chance for success

4. You receive portfolio management :

Services are offered by merchant banks to investors and companies
which issue securities. Most clients of a merchant bank are institutional investors,
looking to create a secure portfolio that will help to build their wealth over time.
You’ll receive the necessary services that are required to provide you with an
investment mix that fits your needs, considering any tax bracket issues, objects, and
the overall return you’re looking to achieve. Merchant banks will also buy and sell
securities for their clients. Some even manage off-share funds and mutual funds too.
DISADVANTAGES AND DEMERITS OF MERCHANT BANKING

1. Your account will be more expensive than a traditional bank

account :
Merchant banks tend to charge higher fees for their services compared to
traditional banking services and products. You may be required to have a minimum
net worth to work with the bank, have a specific portfolio already developed, or have
a strong credit profile with a history of project development to qualify for the bank’s
services. Although you may receive the initial consultation or evaluation for free,
there is no guarantee your company will be accepted.

2. You have size considerations which must be met :

Thanks to the Internet, any startup or SMB has the potential to enter
into an international market. Just because you are present somewhere internationally
does not mean that you’re going to qualify for the services a merchant bank provides.
There are usually size considerations that must be met, which may include revenue
minimums, business structure, and more. If you’re structured as a partnership or sole
proprietor, you’re less likely to get the chance to work with a merchant bank on a
project unless you’re trying to expand the portfolio of the company.

3. You will always have the risk of a mixed chance for success :
Merchant banks might decide to work with you on a financing package,
but that is only one step toward eventual success. Assets are often required for the
underwriting process, especially when a business is new to an industry, first getting
started, or entering into their first international market. Those assets might need to
come from the personal assets of the C-Suite to secure some financing. Merchant
banks are like all other banks – they like to invest when they know there is a good
chance for a return.

4. You’re not going to receive start-up funding :

Most merchant banks are in the business of helping your company scale
upward. The focus is usually on international markets, but in the United States,
moving into a new state or community may qualify for banking support. What you’re
not going to receive is start-up funding. Your business must have an established
record of some success to take advantage of the services which are being offered.
And, if you are approved and your business is still young, you’ll have strict repayment
guidelines and smaller amounts offered for funding.
 1.8 Reasons for growth of Merchant Banking

There are a few reasons that accelerated the growth of these banks in India. Some of
the reasons are:

1. Globalization:
After the 1991 reforms, the Indian economy saw a drastic change as it opened
gates for foreign companies. It helped in getting funds from abroad; thus, it led
to the growth of merchant banks.

2. ElevatedCompetition :
Because of the globalization of the economy, the market scenarios became
lucrative, and business options became favorable for various individuals. This
pivoted the Indian corporate sector, and a huge expansion was seen in this
sector. This motivated the Merchant Bankers to play an important role by
offering specialized services to corporate.

3. Switch in consumer trends :

There was a huge transformation in the industrial and corporate sectors
because of the foreign players in the market.
The major benefit was that the Indian massed started getting better quality
products as the Indian companies also started working on quality to match the
foreign products. In such prevailing environments, financial products and
instruments became more prominent.

4. Government Reforms :
Government intervention was reduced, and privatization was increased. It also
raised the limits of investment and lessened direct interventions that led to an
increase in the proposition of foreign players. These were some of the causes
that hastened the increase of Merchant Banking in India. Let us also know the
services that merchant banking offers to corporate and big business houses.
 1.9 Objectives of Merchant Banks

Merchant bankers play an important role in Indian financial sector as they facilitate in
achieving following objectives :
1. They help in creation of capital.
2. Merchant banking activities are the forces behind the formation of a secondary
market, which encourages the industrial activities in cur country.
3. Merchant banks facilitate and boost economic entrepreneurship.
4. They undertake various jobs pertaining to the preparation of project reports
conduct of market research and pre-investment surveys.
5. Appropriate financial support is extended by the merchant bankers to venture
capitalists.
6. A data bank is constructed as human resources by them.
7. They are also the providers of housing finance.
8. Merchant bankers are an important source of seed capital for start-up
organisations.
9. The area of issue management is one of the core activities of the merchant
bankers.
10. Underwriting is another area in which the merchant bankers have an
expertise.
11. They identify new projects on behalf of their clients, and also provide
assistance in obtaining various approvals from different Government
departments.
12. They extend services regarding provision of financial clearance.
13. Mobilization of public funds is facilitated by the merchant bankers.
14. National savings are channelized towards productive areas by the merchant
bankers.
15. For the larger interests of all the concerned, investors conferences are arranged
by them from time to time.
16. For the purpose of 'listing', they seek the necessary permissions, on behalf of
their clients, from that stock exchanges.
17. As part of their role as 'issue managers', they are responsible for getting the
data in respect of the application money collected at various branches of banks
on a day-to-day basis.
18. Appointment of bankers, brokers, underwriters, etc. are done by the merchant
bankers.
19. In the cases of ventures undertaken by NRIs, merchant bankers take the
responsibility of supervising the process on behalf of their clients.
20. In the area of fund-based activities also, merchant bankers offer their services.
 1.10 Scope of Merchant Banking

The various scope / Features of merchant banking are follows :

1) Growth of New Issues Market :

As the India market is among the largest growing market so the various domestic and
foreign investors are entering the market for doing business. The various types public
and private problems are also arising.

2) Entry of Foreign Institutional Investment :

The is globalization in the Indian capital market. is permission given to the foreign
institutional invest in India as they require the suggestion from merchant banks for the
business in India. The various number of joint venture also need different types of
services of Merchant Banks.

3) Changing Policy of Foreign Investment :

There is liberalization in the policy making. The foreign investments need the services
Merchant Banks for project appraisal, financial management, financial re-structuring,
etc.

4) Development of Debt Market :

The debt instrument helps in raising large amount of capital for the business. The
making of debts market is also done by merchant banks.

5) Innovations in Financial Instruments :

The innovative financial instrument has increased. The merchant banks are the origin
of the innovative type of financial instruments.
6) Corporate Re-Structuring :
The liberalization and globalization are the reason for the capital structuring. The
presence of competition in f corporate sector is the reason for corporate structuring.
The companies also adopt corporate re-structuring if they want to change their
strategies, structure and working.

1.11 Functions of Merchant Banking

Role of merchant banking / The important activities undertaken

by merchant banks and various services provided by them are as
follows :
1) Underwriter :
Underwriters may be defined as a group of financial institutions/entities,
which give an assurance not only for getting an issue fully subscribed, but also to
absorb the balance securities, in case of failure of the issue to get fully subscribed by
the public. Underwriters are duly paid for the services rendered by them in the form of
commission as agreed upon between the security issuer and the underwriter, which
are subject to various terms and conditions stipulated under the Companies Act.
Underwriting services are provided by the commercial banks, term lending
institutions, investment companies, brokers, etc.
In the overall development of the primary market, the role played by
underwriters is very crucial, although underwriting per-se is not. mandatory for an
issuer. Before coming out with the issue, the issuer appoints underwriter/s, with due
discussion with the merchant banker/lead manager. The details with regard to
underwriters are mentioned in the prospectus issued by the company.

2) Banker :
Bankers are yet another constituent of the primary market, who perform
an important role in the market function and its development. 'Bankers to an issue are
the bankers, who are responsible for the acceptance of application money, from the
prospective investors, for the issue of securities. They also take the responsibility for
the refund of application money to those applicants, whom no security could be
allotted.

3) Broker :
Brokers are individuals/entities who are primarily engaged in the
business of obtaining subscriptions to an issue by approaching the prospective
investors and convincing them suitably. Appointment of brokers by an issuing
company is not mandatory under the existing law. They are at liberty to appoint as
many brokers as they deem fit, or not appoint any broker, if they decide to do so.
Brokers to an issue are required to give their willingness by way of a consent letter,
copy/copies of which need to be filed, along with the prospectus, to the Registrar of
Companies (ROC). The broker/s. appointed by the issuer/manager of the issue.
manages the preliminary distribution of securities in a coordinated manner. They
attempt to secure as much direct subscription as possible from a wide range of
potential investors. The maximum brokerage payable in respect of all the public
issues of industrial securities is @1.5%. irrespective of the fact whether the issue is
underwritten or not. The maximum brokerage payable in respect of the listed
companies, on private placement basis is @0.5%. As far as the promoters' quota is
concerned (including the amount taken up by the directors, their friends and
 employees, and in respect of rights issue taken by/renounced by the existing
shareholders), no brokerage is allowed to be paid. Similarly, no brokerage is
permitted to be paid i in respect of the following cases :
• If the applications are made by the institutions/banks as their part of underwriting
obligations.
• If, as a result of under-subscription of the issue, amounts are devolved on the
underwriters.

4) Register :
The registrar to an issue is essentially an intermediary in the primary market, who
undertakes the following activities :
• Collection of applications along with the application money from the investors.
• Maintenance of a proper record of the applications/monies received from the
investors.
• Maintenance of a proper record of monies paid to the seller of the securities.
• Advising the issuers in taking decision with regard to the basis of allotment of
securities in consultation with the stock exchanges.
• Finalization of the allotment of securities and issuance of allotment letters.
• Other processes associated with the issue of capital, e.g. refund order certificates and
other related documents.

5) Debenture Trustee :
They are the trustees specifically appointed and entrusted with the responsibility of
keeping a watch on and protecting the interests of debenture holders. Their
appointment is made by the issuer of the debenture before the actual issue. Debenture
trustees are required to get themselves registered as such with the SEBI, before they
get any assignment as debenture trustees.

6) Portfolio Manager :
The term 'portfolio' refers to the total securities held by an individual/entity. Portfolio
managers, as the nomenclature suggests, are the managers of portfolios of their
clients, by the virtue of a contract entered into between them and their clients. Their
activities are governed by the terms and conditions of the said contract, Portfolio
managers are generally authorized by their clients to manage, in a judicious manner,
the securities/funds held by them under their portfolio.
 1.12 Services of Merchant Banks
Merchant banks offer a wide range of services to their clients, some of
which have been discussed in the following points :

1) Corporate Counselling :
Corporate counselling one of the fundamental/core services offered by a merchant
bank. Due to abundant demand for this service from each and every industrial unit,
whether new or old, the scope for this activity is unlimited. Corporate counselling
includes a number of merchant banking activities, e.g. project counselling, project
management, loan syndication, working capital management, capital re-structuring,
public issue management, fixed deposit, lease financing etc.

2) Project Counselling :
Project counselling is one of the constituents of corporate counselling activity
undertaken by the merchant banks. The services associated with project counselling
pertain to project finance, including the preparation of project reports, cost of f the
project and management of the financing design. Appraisals of various projects are
carried out on the basis of their location, marketing/technical feasibility, financial
viability, etc.

3) Loan Syndication :
Under the loan syndication, a loan is arranged by a merchant bank for its client, who
may be a big corporate, Government department, or a local authority. To start with,
the merchant bank has to arrive at/finalize the project cost, which is followed by the
next step. i.e. designing the capital structure, deciding the level of the promoters'
stake/contribution in the project, and estimating the amount of term loan to be raised
from the financial institutions. In this connection, it is relevant to ensure that various
guidelines and other requirements pertaining to the financing of industrial projects are
meticulously adhered to. A comprehensive service, covering all the activities
associated with the loan syndication, is extended by the merchant bankers.
 4) Management of Capital Issues :
Management of capital issue involves a number of activities, which go much beyond
simply selling of various securities, viz. equity shares, preference shares and
debentures or bonds to the investors. Some of such activities are as follows :
• Preparation of the action plan and budget for all the expenses associated with the
issues.
• Obtaining the consent letter from SEBI, and finalizing the draft prospectus.
• Identifying and picking-up the brokers/underwriters.
• Selection of the advertising agency for the publicity of pre-issue and post-issue
matters.
• Co-ordination with the 'bankers to the issue, 'stock exchanges'. 'underwriters', and
'brokers'.
• Merchant bankers also act as advisors to the issuer with regard to the appropriate kind
of the security which needs to be issued.
• Maintenance of a close liaison among-st various agencies associated with the issue.
• Finally, a merchant banker is responsible for overall management of the issue, so that
it is fully subscribed.

5) Portfolio Management :
Management of their clients portfolio is yet another service offered by the merchant
bankers. Portfolio management envisages handling of the clients' portfolio in an
efficient manner so as to achieve the twin objectives of investment, viz. keeping the
risk at the lowest level and returns at the highest. Portfolio of a client may contain a
variety of financial securities, such as equity, debentures, units of mutual funds,
derivative products, etc. In addition to managing the existing portfolios, the merchant
bankers also advise their clients with regard to the fresh investments in financial
instruments, keeping in view the safety, liquidity and return. It is, therefore, necessary
for a merchant banker to keep themselves updated with the latest developments taking
place in the market.

6) Advisory Services to Mergers and Takeovers :

In the cases of mergers and takeovers, the merchant bankers play the role of
intermediaries, safeguarding the interests of both the entities. They also facilitate
necessary authorizations from Government/RBI/any other agency. The terms mergers
and takeovers are mostly used simultaneously giving an impression similarity
between the two. However, they differ from each other; the term 'merger' denotes
amalgamation of two companies in such a way that after the merger, only one
company continues, whereas the other dissolves. Under the takeover, one company is
purchased by another by way of procuring the controlling interest in the share capital
of the company which is being taken over.
 7) Consultancy to Sick Industrial Units :
Merchant banker act as consultant and guide not only to the healthy industrial units
for their further progress and expansion, but also to the sick units by evaluating their
technology & processes, and restructuring their capital base. They also facilitate
finalizing the rehabilitation programmes for the sick industrial units keeping in view
the guidelines issued by the banks, so that the same may be accepted by them.
Further, they ensure to get necessary authorization from the Board of Industrial and
Financial Re construction (BIFR) under Sick Industrial Companies (special
provisions) Act 1985 (SICA), for such sick units' financial re-construction and
technical rehabilitation.

8) Leasing :
The merchant bankers role in extending services to leasing companies include
arranging lease finance for them, advising on profitable structuring of the lease
transaction, facilitating the legal documentation and tax counselling.

9) Foreign Currency Financing :

Merchant bankers undertake the job of arranging foreign currency finance, Le. funds
for foreign trades. Such finance may be in the shape of export-import trade finance,
euro currency loans, Indian joint venture abroad or foreign collaborations Major areas
pertaining to the foreign currency financing, which are carried out by the
merchant bankers are :
• Providing support for undertaking the study of turn-key and construction contract
projects.
• Helping out the working groups with various Government agencies including Reserve
Bank of India (RBI) and Exchange Credit and Guarantee Department (ECGD).
• Facilitating their clients in opening and operating banks accounts overseas.
• Arranging export credit facilities from the Export and Import Bank (EXIM Bank) for
the export of capital goods. They also facilitate required authorizations from
Government departments.
• They manage the exchange risks, their clients are exposed to, by guiding them in
respect of getting forward cover.
• Making arrangements of foreign currency guarantees' and 'performance bonds for
their exporter-clients.
 10) Providing Venture Capital Financing :
Companies desirous of venturing into novel projects are assisted by the merchant
bankers in obtaining necessary venture capital finance.

11) Corporate Advisory Services :

Merchant bankers provide corporate advisory services to their corporate clients
through the branches specifically designed and set up for the purpose. Corporate
advisory services are the services which are are provided to various corporate bodies
in respect of the financial matters pertaining to their operations. Providers of such
services may range from the advisory boards of the companies to professional bodies,
including the merchant bankers, who have expertise in providing such services. Some
examples of the corporate advisory services provided by them are :
• Corporate Finance in Solutions related to Problems of Business Operations.
• Corporate Finance in Mergers and Acquisitions.
• Corporate Finance in Planning of Business Services.
• Corporate Finance in Generating Funds.
 1.13 Merchant Bank vs. Commercial Bank

It is paramount to understand the difference between the two banks as it will make it
easier for you to understand the merchant banking in India as compared to the other
banks-

1. Merchant banks work primarily for corporate firms, whereas commercial banks cater
to the needs of individual customers.
2. Merchant Banks are always open to take risks, but commercial banks usually avert
taking any kind of risk.
3. In merchant banks, everyone cannot open an account, whereas commercial banks are
open for everyone.
4. Merchant banks are management-oriented, but commercial banks are asset-oriented.
5. Merchant banks usually do business with equities, but commercial banks usually buy
and sell debt-related finance such as loan approvals, credit proposals, etc.
6. The major activities done by merchant bankers are underwriting, portfolio
management, consultant, and advisor, whereas commercial banks mostly play the role
of financers only.
7. Merchant banks are more related to the primary market and the commercial banks to
the secondary market.
 1.14 REGISTRATION OF MERCHANT BANKERS

The term ‘merchant baking’ originated in the18th and early 19th

centuries in the united kingdom when trade between countries was financed by bills
of exchange drawn on the principal merchant houses. With the increase in
international trade, the etablished merchants started the practice of lending their
names to the new comes and accepting the bills of exchange on their behalf. They
would change a commission for the purpose and thus acceptance business become the
hallmark of merchant bankers. Once these banks had gained the confidence of the
government, they also entrusted with the job of issuing bonds in the London market.

Although merchant banking activity ushered in two decades ago.it

was only in 1992, in india after the formation of SEBI that is defined and a set of rules
and regulations government governing it are in place. In fact the origin of merchant
banking is to be trsced to Italy in late medieval time and france during the 17th and
18th centirires. Merchant banker invested accmulated profits in all kinds of promising
activities. Since they added banking business into the profession of merchant
activities and becomes a merchant bankers. A distinction was existeding banking
systems between moneychanger and exchanger. money changers concentrate on the
mutual exchange of of different currencies, operated locally and later accepted
deposits for security reasons. Passage of timemoney changers evolved in public or
deposit banks banks whereas exchangers, who operated international engaged in bill-
broking that raising foreign exchange and provision of long-term capital for public
borrowers. The exchanges were remittes and merchant bankers. In the 17th century, a
merchant banker was a dealer in bills of exchange who operated with correspondents
abroad and speculated on the rate of exchange. Initially, merchant banks and other
financial institutions. Among all these, institutions it was only banks that accepted
deposits from public.
 1.15 QULITIES OF GOOD MERCHANT BANKERS

Merchant bankers are individual express who organize and manage the
merchant banks. The oparations of merchant banks are, therefore, influenced by the
pesonality trait of these individuals, for the success of merchant banks operations, the
qualities which merchant bankers should have are :

1. Leadership –
Merchant banker should posses all relevant skills, update knowledge to
interest with the clients and effectively communicate. Leadership is
synonymous with followers who follow the one who leads.

2. Aggressive active -
Aggressive is a personality trait of a good leader but in merchant
banking it has a wider connotation. Aggressive merchant bankers are always
looking for new business. Once a business opportunity has been located. The
merchant banker has got to obtain the mandate for the merchant banking
assignment from the clients at once which will depent upon his own
communication skills, persuasiveness and the background of the organization
to which hebelongs, a good merchant bankers is one who does not allow his
client to think anything ouside except what has been advised.

3. Cooperation and friendness –

These two characteristics are the symbols of good leadership but
it hardly needs to be stressed that cooperation and friendliness coupled wih
persuasiveness are the main instruments with which a merchant banker mixes
with the peoples, gathers information, obtains business mandate and renders
satisfactory services to the clients. Business of an honest business merchant
bankers spreads with geometrical propagation when he share the thought of
his clients with sympathetic gestures and offers pragmatic suggestions without
greed or favours. Very often, rude, intemperate and indifferent disposition or
blunt out burst withdrew fortunate business opportunity forever. Friendliness
and co-opration must flow as natural traits in the merchant banker to win the
trust of the clients.
 4. Contacts -
Success of merchant banker depends upon his sociable nature and the
richness of wider contacts. A merchant banker is supposed to be acquainted
deeply with all the constituents of merchant banking. The scope of contact
encompasses intimate contiguity and acquaintances within his own
organization central and state government offices where compliances under
various relevant enactments are to be reported. Indian and foreign banks,
financial institutions at central and state level, promoters/directors/owners and
chief executives of the private and public enterprises which would be
prospectives beneficiaries of merchant banking services, printers, advertising
agencies, brokers and stock exchange dealers, advocates and solicitors and
members of the press whose services are availed of in executing merchant
banking assignments. Merchant bankers should widen contacts and references
and continues to maintain them with goodness, honour and homour by
meeting people.

5. Attitude towards problems solving –

The most important personality trait of a merchant banker is his
attitude towards problems solving. Even client coming to him has got to return fully
satisfied having consulted a merchant banker. Positive approach to understand the
view points of others, their difficulties and their adverse circumstances is possible
only when a person is skilled in human relations particularly the inter-personal and
intra-personal behavior. Effective communication and proper feedback are the
prerequisite for creating a positive attitude towards problems solving.
Many persons are effectives in this trait without any training for
reasons of cultivating a habit from environment in which they have been brought up at
home, in school, colleges and office. This is so important that it must be treated as a
separate objective quality of a good merchant banker.
 CHAPTER NO. 2
RESEARCH METHODOLOGY

In the light of the above, the research study has been undertaken to study
about the various modernized services of the banks in the indian banking industry.
This study helps us to know what kind of services the banks offer to their customers.

Research methodology is specific away to solve the research problem.

Research methodology is systematic theorerical analysis of the methods applied to
field of study it includes the various methods, techniques for conduction research. In
short the search for knowledge through objectives and systematic methods of findings
the solution to problem in research. The systemetic approach concerning
generalization and the formulation of a theory is also called research. As such the
term ‘research’ refers to the systematic method consisting of enunciating the
problems, collecting the facts or data, analyzing the fact and reaching certain
conclusion either in the form of solution towards the concerned problems or incertain
generalization for some theoretical formulation.

2.1 what is research ?

The word ‘research’ is derived for the French word ‘researcher’ meaning
to search back. Broadly research to a search for knowledge, research is an attempt to
fine answers to problems both theoretical and practical through the application of
scientific methods. Essentially, research is a systematic enquiry looking for fact
through verificable methods is order to establish the relationship among them and to
conclude from them broad principles and laws.

Research is a continuous process. It helps obtain knowledge about any

natural or human phenomena.
2.2 Methodology :
This is a conceptual and descriptive research paper based on secondary
source of data. The data is collected from nation and international journals, published
govt. reports, RBI reports, newpapers, websites etc. secondary research involves
reanalyzing, interreting, or reviewing past data, help in understding what happened
and what happening at present.

2.3 SOURCES OF DATA

Sources of data refers to the techniques or way through which

the data for study is collected. They are primary and secondary data techniques.

A). PRIMARY DATA :

The primary data was collected through questionnaire methods.
Some customers of selected banks were provided with the questionnaire and the
results were interpreted and tabulated.
Questionnaire methods was selected because :
1. They are valid and reliable.
2. They are impersonal, and therefore, people do not hesitate to expree
what they actually feel.
3. Easier to classify and tabulate so what results can be collelated
meaningfully.
4. They are standardized and so eliminated bias to a great extent.

B). SECONDARY DATA

1. Internet
2. Refers the books
3. Refers the magzins newspapers.
4. Gave to advised some knowledgeable people etc.
2.4 STATISTICAL TOOLS

The collected data has been analysed, interpreted and represented, in

forms of pie charts, bar graphs, column charts, etc.

2.5 OBJECTIVES OF STUDY

1. To evaluated the performance of the bank.

2. To fine out the problems faced by the employees.
3. To find out the problems fact by the customers.
4. To analysis customer satisfaction level.
2.6 SCOPE OF THE STUDY
In the present scenario major economic and technical changes are
undergoing in industrial and financial revolution through the new information
processing technology. Especially, in finance sector it has a signification role for
overall development. After indentifying the subject and referring the relevant
literature, it has been found at in most of the literature, the information technologies
have a wide application area. However, in finance sector major changes have been
made. Due to these drastic changes we have chosen to do the study on urban
cooperative bank system. After completing step by step procedure for automation
process the information. Atomization process , now it is required to take the review of
the system.
People used information technologies tools to manage and process the
information. Automization process use in the financial sector for transaction system.
This type of working, methodology is used in the financial institute since long years.
The urban co-oprative bank sector is mostly related to all classes of people like
agriculture, labour, businessmen, small enterpreneurs, workers, etc. it has been
changing complete culture and working methodology.

2.7 LIMITATION OF THE STUDY

1. Difficulty in collecting due to internal policies and procedure.
2. The study was based on a very small sample size ence cannot
be called as a representation of the views and opinion of the
majority.
3. People were reclucant to go in detail because of their busy
schedules.
4. The study is based on information given by concerned people.
Due to continues change in government policies and banking environment, what is
relevant today may be irrelevant tomorrow.
2.8 SAMPLING METHOD
2.8.1 Meaning of sampling :

The research is the systematic study to examine or investigate the issues

or problems and fine out the relevant information for solution. For study data are to be
collected from the respondent. It is not possible to collect data from every one of the
population. Population is very large number of person or subjects or items which is
not feasible to manage. A population is of group individual from which sample are
taken for measurement. For research purpose a part of the population is to be selected.

Sampling is the process in which a representative part of population for the

purpose of determining parameters of characteristics of the whole population is
selected. This is called the sample. It is easier to contact smaller part of the whole
population for data collection.

2.8.2 Definition of sampling :

The action or process of taking samples of something for analysis.

2.8.3 Sampling size :

In myresearch my sample size 50 respondent of merchant banking in
state bank of india (SBI) customers. So, in that research, I did survey of 30
respondence from online. And 20 respondent in bank.

2.8.4 Sample Area :

My selected area of sample is Ulhasnagar and kalyan.
2.9 RESEARCH DESIGN :
2.9.1 Sample design and size :
Sample is defined as the segment of population that is representive
of whole population. The respondents were selected by convient sampling depending
upon the availability of the respondent. convenient sampling ( sometimes known as
grab or opportunity sampling). Is a type of non- probability sampling which involves
the sample being drawn from a part of the population . which is close to hand it is
based on picking of the individual’s elements as per one’s needs. Sample size is the
number of observations used for calculating estimates of a given population. In this
research project descriptive research design in used judgement and convenience
sampling method is used to get information about customer satisfaction. For
conducting this research a structured questionnaire is prepared and sample of
customers is taken.
2.10 HYPOTHESIS :

2.10.1 Introduction :
A hypothesis (plural hypotheses) is a precise, testable statement of what
the researcher(s) predict will be the outcome of the study. It is stated at the start of the
study.
This usually involves proposing a possible relationship between two
variables: the independent variable (what the researcher changes) and the dependent
variable (what the research measures).
In research, there is a convention that the hypothesis is written in two
forms, the null hypothesis, and the alternative hypothesis (called the experimental
hypothesis when the method of investigation is an experiment).
A fundamental requirement of a hypothesis is that is can be tested against
reality, and can then be supported or rejected.
To test a hypothesis the researcher first assumes that there is no difference
between populations from which they are taken. This is known as the null hypothesis.
The research hypothesis is often called the alternative hypothesis .
2.10.2 There are two types of hypothesis
1. Alternative Hypothesis (H1):
The alternative hypothesis states that there is a relationship
between the two variables being studied (one variable has an effect on the other).
An experimental hypothesis predicts what change(s) will
take place in the dependent variable when the independent variable is manipulated.
It states that the results are not due to chance and that they
are significant in terms of supporting the theory being investigated.
The alternative hypothesis is a position that states
sometime is happening, a new theory is true instead of an old one (null hypothesis). It
is usually consistent with the research hypothesis because it is constructed from
literature review, previous studies, etc. however, the research hypothesis is sometimes
constent with the null hypothesis.
In statistics, alternative hypothesis is often denoted as H0 or
H1. Hypothesis are formulated to compare in a statistical hypothesis test.
In the domain of inferential statstics two rival hypothesis can
be compared by explanatory power and predictive power.

2. Null Hypothesis (H0):

The null hypothesis states that there is no relationship
between the two variables being studied (one variable does not affect the other). There
will be no changes in the dependent variable due to the manipulation of the
independent variable.
It states results are due to chance and are not significant in
terms of supporting the being investigated.
The null hypothesis is a type of hypothesis used in statistcs that
proposed that there is no difference between certain characteristics of a population (or
data-generating process). For example, a gambler per play is 0 for both players.
Some examples of hypothesis related to my project topic.

• H0 - the merchant banking services provided by state bank of

india.
• H1 - the merchant banking services provide by the state bank of
india.

• H0 - the people are not aware of merchant banking services

provide by the state bank of india.

• H1 - the people are well aware of merchant banking provide by

the state bank of india.

• H0 - the customers are not satisfied by the merchant banking

services provided by state bank of india.
• H1 - the customers are well satisfied by the merchant banking
services provided by state bank of india.

• H0 - the merchant banking services is not so important in the

modern age.

• H1 - the merchant banking services is too important in the

modern age.

• H0 - people does not invest insecurities and shares.

• H1 - people does invest in securities and shares.

• H0 - investors are not aware of merchant banking.

• H1 - investors are aware of merchant banking.

• H0 - investors does not uses merchant banking facility provide

by financial institutions.

• H1 - investors does uses merchant banking facility provided by

financial institutions.
 CHAPTER NO. 3
REVIEW OF LITRATURE

3.1 INTRODUCTION

A literature review is an overview of the previously published works

on a specific topic. The term can refer to a full scholarly paper or a section of a
scholarly work such as a book, or an article. Either way, a literature review is
supposed to provide the researcher/author and the audiences with a general image of
the existing knowledge on the topic under question. A good literature review can
ensure that a proper research question has been asked and a proper theoretical
framework and/or research methodology have been chosen. To be precise, a literature
review serves to situate the current study within the body of the relevant literature and
to provide context for the reader. In such case, the review usually precedes the
methodology and results sections of the work.
A number of studies have been conducted from time to time to understand
the different aspects relating to primary market and merchant banking activities in
India. However, most of them have focused upon the primary market in India only.
Research in the area of merchant banking in India and its role in the primary market is
very limited and that too is descriptive in nature and deals with procedural aspects,
organization and management and marketing aspects of merchant bankers. A review
of important studies is presented below:
A literature review is a piece of academic writing demonstrating knowledge
and understanding of the academic literature on a specific topic placed in context. A
literature review also includes a critical evaluation of the material; this is why it is
called a literature review rather than a literature report.
The purpose of a literature review is to gain an understanding of the existing
research and debates relevant to a particular topic or area of study, and to present that
knowledge in the form of a written report.
Describe the relationship of each work to the others under consideration. Identify
new ways to interpret prior research. Reveal any gaps that exist in the literature.
Resolve conflicts amongst seemingly contradictory previous studies.
1. Verma (1990) –
conducted research on merchant banks in India with the purpose
to analyse their organization structure and management pattern and to assess
their suitability for medium and small size corporate and non corporate
enterprises. The suitability of merchant banking services in reducing investors’
risk and corporate capital structure has also been examined. The information
was collected from a sample of 32 merchant bankers through questionnaire
and the study covered the period 1978 to 1984. The researcher found a number
of weaknesses in the existing ‘divisional form’ organization and management
pattern of merchant banks in India. This included deep concentration of
decision making power, lack of co-ordination, lack of appropriate skill,
inadequate training programme, strict dependence on the bureaucratic
framework, blocked communication channels and misdirected accountability.
The study revealed that 90 percent of the resources of all merchant banks were
devoted only to the management of public issues. A negligible performance of
merchant banks was found in other areas of services including loan
syndication, merger and amalgamation, inter corporate investments and
corporate counselling. Further, merchant banking activities were found to have
remained concentrated with only a few top merchant bankers, while stock
brokers managed very small sized issues covering just 15% of the total amount
of public issues. A good public response was found to the issues managed by
category I merchant bankers including merchant bankers of public sector
banks, whereas the 35 category II merchant bankers which included private
firms had the public response of second order. The researcher highlighted the
merchant banks’ contribution in causing risk reduction both to investors
(through portfolio management) as well as the industry (through project
counseling and corporate counseling). Empirical results also highlighted that
corporate enterprises which sought merchant bankers’ assistance were
financially sounder and less prone to sickness as compared to those not
assisted by the merchant banks.
2. Murthy (1993) -
In his paper examined the cost of raising capital from the public
issues floated during 1992-93. During 1992-93, an amount of Rs. 4677.74
crore was raised through 514 public issues. The estimated expenses on these
issues were Rs. 473 crore. Analysis of 506 public issues showed that issue
expenditure as percentage of net public offer was 10.10% and the proportion
of issue expenses declined with the increase in offer size. The study found that
smaller projects tend to spend a higher proportion as issue expenditure
compared to the larger ones. The researcher also compared the cost of raising
capital of issues through the OTC (over the counter) route and regular stock
exchange option and found that the cost of raising capital through OTC route
was lower than the issues that opted for regular stock exchange route. The
study pointed out that no uniform format existed for reporting the issue
expenditure in the prospectus. The researcher has suggested that the total issue
expenditure as percentage to the total issue amount be reported prominently in
the prospectus and abridged prospectus cum application form.

3. Shah (1995) –
conducted an empirical study on the data set of 2056 Indian IPOs
listed on the BSE from January 1991 to May 1995 with the objective to
examine the under pricing of IPOs and to establish the empirical regularities
about India’s IPO market. He examined six factors underlying under pricing,
namely asymmetric information between firms and investors, fixing the offer
price too early, the interest rate float, loss of liquidity on the amount paid at
issue date (liquidity premium), building loyal shareholders and merchant
bankers rewarding favoured clients as an incentive to under price. Empirical
study found that the average price on first listing day was 105.6% above the
offer size, average delay between issue dates and listing day was 11 weeks 36
and weekly excess return on market index (BSE Sensex) was 3.8%. The study
further found that correlation between the volume of IPOs under pricing and
the return on BSE Sensex was positive, under pricing among the smaller
issues was high, average long run trading frequency of IPO was lower than
‘A’ group companies and return on IPOs during the first 200 trading days was
more than market return.
4. Srivastava (1995) –
In his paper highlighted the need for efficient marketing of public
issues because of the transformation of new issue market from sellers’ market
to buyer dominated market as the geographical and demographical range of
investors has widened. According to him, the process of public issue
marketing starts with the selection of the issue by the merchant banker. Then
the merchant banker plays the role of a guide for the appointment of
underwriters, brokers and an expert advertising agency. The researcher has
listed the current practices in public issue marketing which include the
application of data base marketing research, direct approach to investors ( like
insurance, UTI ), seeking services of marketing experts as issue specialists,
branding the issues like mutual funds, and effective advertising through
extensive and intensive use of media. The author concluded that the future
dimensions of public issue marketing will include the after sale service to
investors and giving instant services of selling. Aggarwal (1995)5 traced the
origin, growth and history of merchant banking in India and abroad. The
objectives of the study included the analysis of organizational structure,
management pattern and performance evaluation of SEBI registered category I
merchant bankers during the period 1989- 90 to 1993-94. The study found that
merchant banking institutions lack skill development programmes for training
the staff, up to date information and more concentration of decision making
power. Despite this, the study highlighted the important role of merchant
bankers in the growth of capital market and mobilization of resources from
public through issue management activities. The author recommended for
stopping the turnover of personnel in merchant banking divisions of
nationalized banks due to transfers, who have up to date market information
and adopt professional attitude for providing services as merchant bankers.
5. Narta (1996) –
Conducted a research study to find out the growth of new issue
market and underwriting of capital issues in India, and to analyse the cost of
raising capital during the period 1970-71 to 1988-89. The study was based on
the secondary data. 37 The researcher found that after independence, a large
number of public financial institutions, investment institutions, merchant
banking divisions of commercial banks and investment consultancy agencies
were engaged in the underwriting operations of capital issues in India. The
researcher found that public financial institutions accounted for a larger
proportion in underwriting activities though their share declined from 63% in
1970- 71 to 22.64 % in 1986-87. The commercial banks showed an increase in
underwriting activities on account of opening of merchant banking divisions.
Development banks and GIC were found to prefer participation in the
underwriting of large issues. Stock brokers were more active in underwriting
during boom conditions while commercial banks were more selective to
underwrite the issues of their valued customers. The average cost of public
issues during the period of study was found to be ranging from 8% to 10% of
the amount offered to public. However, the cost of issues of existing
companies was higher as compared to IPOs because of aggressive campaign
for over subscription.

6. Aggarwal (1995) –
Traced the origin, growth and history of merchant banking
in India and abroad. The objectives of the study included the analysis of
organizational structure, management pattern and performance evaluation of
SEBI registered category I merchant bankers during the period 1989- 90 to
1993-94. The study found that merchant banking institutions lack skill
development programmes for training the staff, up to date information and
more concentration of decision making power. Despite this, the study
highlighted the important role of merchant bankers in the growth of capital
market and mobilization of resources from public through issue management
activities. The author recommended for stopping the turnover of personnel in
merchant banking divisions of nationalized banks due to transfers, who have
up to date market information and adopt professional attitude for providing
services as merchant bankers.
7. Kailani (1998) –
In her research work examined the marketing strategies and
performance of merchant bankers during the period 1990-91 to 1997-98. The
study was based upon 77 merchant bankers. The researcher evaluated the
performance of merchant bankers by taking into account of both qualitative
and quantitative dimensions. While qualitative factors included skill in issue
management and quality of personnel and services to the clients, the
quantitative factors included number and amount of public issue handled and
the activity profile of merchant bankers (fund based or non fund based). The
variables taken for quantitative evaluation included projected and actual sales,
profit before interest, depreciation and taxes, profit after tax and earnings per
share. The study found that the role of merchant bankers had become more
diverse after the setting up of SEBI. Post liberalization era up to 1995 saw a
number of small financial companies entering into merchant banking business
because of low entry barriers. Consequently, bad quality issues were sold in
large numbers. Further, high 38 concentration of merchant banking business
was found among the top ten merchant bankers and only six merchant bankers
provided all the post issue services. The author recommended for fixing the
responsibility for fulfillment of promises made in the prospectus, improving
the quality of disclosures in IPOs, need for grading the prospectus, mandatory
participation of merchant bankers in the project and rating of merchant
bankers.

8. Qumar (1998) –
Analyzed the non fund based financial services by the leading
public sector banks (PSBs) in the field of merchant banking for the period
1993-94 to 1997- 98. According to the author, the public sector banks entered
in merchant banking business on the recommendations of Banking
Commission 1972 and dilution of foreign equity of large number of foreign
companies operating in India. He analyzed the role played by public sector
banks in handling the number and amount of issues as lead manager, co
manager, underwriter, adviser, banker to issue and the project appraiser. The
author concluded that there should be reforms in the existing legal system
relating to financial services of PSBs, as frequent changes in guidelines had
adversely affected the financial services of PSBs. The author pointed out that
limited range of merchant banking activities, inferior quality of services and
lack of trained and skilled personnel were the reasons for declining trend in
the merchant banking business with public sector banks and suggested a close
touch with the economy and developments in capital market and more
competitive and technical bank officers for improvement in the merchant
banking services by banks.
 9. Dr. R.L. Hydrabad and DR. SO. HALASAGI (2004) :
In their study that the merchant bankers primary function is
to assist the corporate the in mobilizing financial resources. This is the activity and
they are expected to generate core competency in this particular activity. However,

10. K.C.Gupta and Joginder (2008) :

Merchant banking is an important services provided by a
number of financial institutions that helps in the growth of the corporate sector
which ultimately reflects into the overall economic development of the
century. Merchant banks were expected to perform several functions like issue
management, underwriting, portfolio management, loan sundication,
consultant, advisor and host of other activities. SEBI was also made all power
full to regulate the activities of merchant banking was the necessity of banks
themselves which were in need of non-fund based income so as to improve
their profitability margins by all means in the changed economic scenario.

11. Sankar De and sushil Khanna (1994) :

This study examines the economic and financial implications of
some of the regulations introduced by the new securities board of india (SEBI)
through the guidelines it has periodically issued. The regulations apply to
investment or merchant banking services required for corporate issues of long
term securities in india. The authors find that some implications of the
guidelines may be in conflict with the professed objective of the current
economic policy.
 12. Bruce W. Barren (EMCO/Hanover Group) (2006) :
In their study merchant banker acted as a capital sources
whose primary activity was involved in the buying, selling and shipping of goods.
The role of the had merchant banker, who has the expertise to understand a particular
transaction, was to arrange the necessary capital and ensure that the transaction would
ultimately produce “collectable profits”. Often, the merchant banker also become in
the actual negotiations between a buyer and seller in a transaction.

13. Waghmare Shivaji (2015):

Globalization made whole Indian economy open which
features a multiple role within the financial services. Now a day’s government
open the door of investment within the area of insurance and bank. which give
competitive environment for present player? Merchant banking is an
innovative term introduced by full-service bank. The necessity for the
merchant banking is pronounced by banking commission (1972). Merchant
banking offer feebased and non-fee-based services like loan syndication,
underwriting, project promotion, advisory to small and medium savers. In
India merchant banking work under SEBI.

14. Dr. Jyoti Lahoti (2016):

Merchant banking is service provided by financial organization
which helps within the economic development of the country. Merchant
banking provides various services like portfolio management, loan
syndication, and issue management. Merchant banking may be a combination
of consultancy services and banking. It helps within the business unit. It also
helps to extend the fund and to expand the business.

15. Dr. Singh and Dr. Saxena (2017):

Merchant banking consists of wide selection of monetary
activities and financial organization acquirer called “Accept and issue house”.
Because merchant banking acting as broker and principle. Merchant banking
features a long- term approach concerned with each investment opportunity
and provides right advice to every client of the corporate. Merchant banking
may be a service provided by many financial institutions to extend growth of
corporate sector which reflect into Indian economy. Merchant banking may be
a combination of consultancy services and banking.
16. CS Gowtham (2017):
Merchant banking issue share, debentures, loan to their
clients. This finance is employed for brand spanking new business or to
expand the business, to switch the business. Merchant banking not only
provides finance but also provide right path with reference to SEBI. Shreyas
B.S: Merchant banking contains wide selection of monetary activities.
acquirer is named “Accepting and issuing house” Merchant banking is rapidly
growing in Indian economy. The SEBI which provides overall view of present
and past. Merchant banking is oldest within the primary market and its bright
future in coming years

17. Anand (2002) –

others in their research paper studied the long term relationship
between business firms and investment banks with the premise that it leads to
better allocation of resources in the economy. The objective of the paper was
to study the conditions that must be met for sustaining relationships between
the investment banking and the security market. The paper stated that the
investment banking structure was determined by the technology of
relationships. The author developed a model of this relationship with the
assumption that investment bank must incur a sunk cost to establish this
relationship. The author also discussed the policy implications to develop this
relationship as the size-distribution of business firm depended heavily on the
structural characteristics of the economy. While policy can probably remove
obstacles that increase the cost of relationships, the size distribution of
business firms determined whether an investment banking industry was
feasible: it will not emerge if large firms are few.

18. Joint Parliament Committee (2002) –

which was set up to look into the manipulation and
irregularities in the securities market, as a result of Ketan Parekh scam,
submitted its Action Taken Report (ATR) on December 19, 2002. The JPC has
made 276 observations/ conclusions/ recommendations. Each of the
observation has been listed in the report along with the response of the
Government. The Committee in its report held the stock exchange authorities,
SEBI, RBI, Department of company Affairs (DCA) and Finance Ministry
responsible for the stock market scam. The report criticized SEBI for its
failure to monitor and regulate the securities market, for its lack of action in
case of mismatch between movements in the primary and secondary market,
the absence of regulatory framework for the private placement to the detriment
of the primary market and negligence in checking whether bull operators
obtained bank funds to finance their market operations. SEBI’s track record of
punishing wrong doers was found unsatisfactory by the JPC.
19. Kenourgios (2002) -
In his research paper analysed the initial performance of
Greek IPOs and studied the relationship of under pricing with the
underwriter’s reputation and oversubscription. The data for the study related to
169 IPOs listed on Athens (Greek) stock exchange (ASE) over the period
1997-2002. The initial performance of the IPOs was measured by raw returns
and the excess or adjusted returns on the first, fifth and 21st day respectively.
The study found a high average percentage of raw return as well as excess
return from IPOs. The average raw returns were found as 52.7%, 44.78% and
41.84% on the first, fifth and 21st day respectively. Similarly the excess
(adjusted) returns during the period were 54.28%, 45.32% and 43.83% on the
first, fifth and 21st day respectively. The study further found a high positive
correlation (0.799) between the number of times of oversubscription and the
first day adjusted returns of the IPOs. On the other hand, initial excess returns
of the IPOs was found as negatively correlated with the underwriter’s
reputation and hence supported the Beatly and Ritter’s hypothesis of prestige
underwriters. The downward trend in both raw and adjusted returns over the
time reported in the study was found to be consistent with the findings of other
studies on the Athens Stock Exchange. The researchers concluded 42 that the
worldwide phenomenon of under pricing of IPOs of stock was a challenge to
the efficient market hypothesis.

20. Gupta (2002) -

In his paper examined the performance of merchant banks
in India on the basis of their different positions (lead manager, co manager,
and adviser) and different categories of ownership (Public, private and
foreign). The researcher selected 104 working merchant bankers out of 164
registered with SEBI and covered the period from 1997-98 to 2001-02. The
researcher concluded that the private sector merchant bankers performed well
as compared to public sector and foreign merchant banks both as regards to
public issues managed and the amount of funds raised. Although, public sector
and foreign banks performed identically as regards total number of public
issues managed but the performance of foreign merchant bankers was better
than that of the public sector banks in terms of funds raised. The author
pointed out that merchant banking was mainly restricted to the activity of issue
management and other activities such as underwriting, loan syndication,
investment counseling and portfolio management were still not much
emphasized. The researcher’s recommendations included the need for
providing quality services, functional cum expert oriented organization and a
team of specialists.
 CHAPTER NO. 4
COMPANY PROFILE
NAME OF COMPANY : STATE BANK OF INDIA (SBI)

4.1 INTRODUCTION
State Bank of India (SBI) is an Indian multinational public
sector bank and financial services statutory body headquartered in Mumbai,
Maharashtra. SBI is the 43rd largest bank in the world and ranked 221st in
the Fortune Global 500 list of the world's biggest corporations of 2020, being the only
Indian bank on the list.[6] It is a public sector bank and the largest bank in India with a
23% market share by assets and a 25% share of the total loan and deposits market. [7] It
is also the fifth largest employer in India with nearly 250,000 employees.[8][9][10]
The bank descends from the Bank of Calcutta, founded in 1806 via the Imperial Bank
of India, making it the oldest commercial bank in the Indian Subcontinent. The Bank
of Madras merged into the other two presidency banks in British India, the Bank of
Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India in 1955.[11] Overall the bank has been formed from
the merger and acquisition of nearly twenty banks over the course of its 200 year
history.[12][13] The Government of India took control of the Imperial Bank of India in
1955, with Reserve Bank of India (India's central bank) taking a 60% stake, renaming
it State Bank of India.
The roots of State Bank of India lie in the first decade of the 19th century
when the Bank of Calcutta later renamed the Bank of Bengal, was established on 2
June 1806. The Bank of Bengal was one of three Presidency banks, the other two
being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of
Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated
as joint stock companies and were the result of royal charters. These three banks
received the exclusive right to issue paper currency till 1861 when, with the Paper
Currency Act, the right was taken over by the Government of India. The Presidency
banks amalgamated on 27 January 1921, and the re-organised banking entity took as
its name Imperial Bank of India. The Imperial Bank of India remained a joint-stock
company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank
of India, which is India's central bank, acquired a controlling interest in the Imperial
Bank of India. On 1 July 1955, the Imperial Bank of India became the State Bank of
India. In 2008, the Government of India acquired the Reserve Bank of India's stake in
SBI so as to remove any conflict of interest because the RBI is the country's banking
regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This
made eight banks that had belonged to princely states into subsidiaries of SBI. This
was at the time of the First Five Year Plan, which prioritised the development of rural
India. The government integrated these banks into the State Bank of India system to
expand its rural outreach. In 1963 SBI merged State Bank of Jaipur (est. 1943) and
State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI
acquired National Bank of Lahore (est. 1942), which had 24 branches. Five years
later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been established in
1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The
bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The
new bank's first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank
of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate,
the State Bank of Travancore, already had an extensive network in Kerala.
There was, even before it actually happened, a proposal to merge all the associate
banks into SBI to create a single very large bank and streamline operations.[14]
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven
to six. On 19 June 2009, the SBI board approved the absorption of State Bank of
Indore, in which SBI held 98.3%. (Individuals who held the shares prior to its
takeover by the government held the balance of 1.7%.)[15]
The acquisition of State Bank of Indore added 470 branches to SBI's existing network
of branches. Also, following the acquisition, SBI's total assets approached ₹10 trillion.
The total assets of SBI and the State Bank of Indore were ₹9,981,190 million as of
March 2009. The process of merging of State Bank of Indore was completed by April
2010, and the SBIndore branches started functioning as SBI branches on 26 August
2010.[16]
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed
Chairperson of the bank.[17] Mrs. Bhattacharya received an extension of two years of
service to merge into SBI the five remaining associate banks.
4.2 MERCHANT PAYMENT BY CORPORATES :

What is the merchant payment limit in SBI?

1. Merchant Pre-Approved Transaction (MPAT) Limit is a transaction limit

(maximum amount which can be paid online at merchant website) set by maker
and checker of a corporate in advance before making merchant payments.
Actual payment can take place only if sufficient balance is available in the
account.
2. Once MPAT is set, it will be valid up to maximum 10 days for payment.
3. By creating a Merchant Payment Limit, payments of utility bills/taxes can be
made at merchant websites in a single session (without maker checker process)
up to the balance available in the Merchant Payment Limit. Since the limit is
already pre-approved by the authorizer, there will be no need for multiple users
to login and authorize the merchant transactions. Once MPAT limit is set, the
authorizer of MPAT Limit can initiate payment directly in a single step by
visiting the merchant website.

4.3 MPAT limit types

Corporate can choose one of below MPAT limit types :

1. Generic Limit: It is a common pooled limit amount which can be used for
payment to any of the merchant added by corporate. This can be used when
corporate does not want to setup MPAT limit for each merchant.
2. Merchant Specific Limit : This can be used when corporate wants to set up
separate transaction limits for separate merchants added by corporate.

PS : At a time corporate can have only one type of limit. For detailed example of limit
type and usage, please read the Process Advisory available in your internet banking.
4.4 SBI YONO SERVICE :

YONO (You Only Need One) is an integrated digital banking

platform offered by State Bank of India (SBI) to enable users to access a variety of
financial and other services such as flight, train, bus and taxi bookings, online
shopping, or medical bill payments.[1] YONO is offered as a smartphone app for
both Android and iOS.
The launch of YONO had a code name project Lotus. The YONO is developed by
IBM and launched in around 13 months. The cost of development was expected
around ₹4,000 crore.

YONO was launched on 24 November 2017.

YONO offers services from over 100 e-commerce companies including
online shopping, travel planning, taxi booking, train booking, movie ticket booking,
online education and offline retail with special discounts. YONO also offers
conventional mobile banking services such as bank account opening, fund transfers,
cashless bill payments, and loans. The smartphone app can be used to make ATM
withdrawals.

Benefits of YONO SBI :

YONO SBI allows you to book IRCTC tickets, use UPI to transfer money,
buy movie tickets, banking, shopping, Travel, bill payments, Recharge, Invest and
more.

YONO SERVICES :
YONO (You Only Need One) is an integrated digital banking platform
offered by State Bank of India (SBI) to enable users to access a variety of financial
and other services such as flight, train, bus and taxi bookings, online shopping, or
medical bill payments.
 CHAPTER NO. 5
DATA ANALYSIS AND INTERPRETATION

INTRODUCTION :
5.1 MEANING OF DATA ANALYSIS :

Although many groups, organizations, and experts have different ways

to approach data analysis, most of them can be distilled into a one-size-fits-all
definition. Data analysis is the process of cleaning, changing, and processing raw
data, and extracting actionable, relevant information that helps businesses make
informed decisions. The procedure helps reduce the risks inherent in decision-making
by providing useful insights and statistics, often presented in charts, images, tables,
and graphs.

It’s not uncommon to hear the term “big data” brought up in discussions
about data analysis. Data analysis plays a crucial role in processing big data into
useful information.

A huge part of a researcher’s job is to sift through data. That is literally the
definition of “research.” However, today’s Information Age routinely produces a tidal
wave of data, enough to overwhelm even the most dedicated researcher.

Data analysis, therefore, plays a key role in distilling this information into
a more accurate and relevant form, making it easier for researchers to do to their job.

Data analysis also provides researchers with a vast selection of different

tools, such as descriptive statistics, inferential analysis, and quantitative analysis.

So, to sum it up, data analysis offers researchers better data and better
ways to analyze and study said data.

Some professionals use the terms “data analysis methods” and “data
analysis techniques” interchangeably. To further complicate matters, sometimes
people throw in the previously discussed “data analysis types” into the fray as well!
Our hope here is to establish a distinction between what kinds of data analysis exist,
and the various ways it’s used.
 5.2 MEANING OF DATA INTERPRETATION :

Data analysis and interpretation is the process of assigning meaning to the

collected information and determining the conclusions, significance, and implications
of the findings.
Data interpretation refers to the process of using diverse analytical
methods to review data and arrive at relevant conclusions. The interpretation of data
helps researchers to categorize, manipulate, and summarize the information in order
to answer critical questions.
The importance of data interpretation is evident and this is why it needs
to be done properly. Data is very likely to arrive from multiple sources and has a
tendency to enter the analysis process with haphazard ordering. Data analysis tends to
be extremely subjective. That is to say, the nature and goal of interpretation will vary
from business to business, likely correlating to the type of data being analyzed. While
there are several different types of processes that are implemented based on individual
data nature, the two broadest and most common categories are “quantitative analysis”
and “qualitative analysis”.
Yet, before any serious data interpretation inquiry can begin, it should be
understood that visual presentations of data findings are irrelevant unless a sound
decision is made regarding scales of measurement. Before any serious data analysis
can begin, the scale of measurement must be decided for the data as this will have a
long-term impact on data interpretation ROI. The varying scales include:

• Nominal Scale: non-numeric categories that cannot be ranked or compared

quantitatively. Variables are exclusive and exhaustive.
• Ordinal Scale: exclusive categories that are exclusive and exhaustive but with a
logical order. Quality ratings and agreement ratings are examples of ordinal scales
(i.e., good, very good, fair, etc., OR agree, strongly agree, disagree, etc.).
• Interval: a measurement scale where data is grouped into categories with orderly and
equal distances between the categories. There is always an arbitrary zero point.
• Ratio: contains features of all three.

For a more in-depth review of scales of measurement, read our

article on data analysis questions. Once scales of measurement have been selected, it
is time to select which of the two broad interpretation processes will best suit your
data needs. Let’s take a closer look at those specific data interpretation methods and
possible data interpretation problems.
 1. Do you know about merchant banking?

Interpretation of data :

• According to above diagram 88% are respondence know about merchant

banking.
• And 12% are respondence don’t know about merchant banking.
 2. Do you know about the services provided by merchant banking?

Interpretation of data :

• According to above diagram 80.77% are respondence know services of

merchant banking.
• And 17.07% are respondence don’t know services of merchant banking.
 3. Do you take any service from merchant banking ?

Interpretation of data :

• According to above diagram 53.57% are respondence have take

services in merchant banking.
• And 46.43% are respondence don’t take any services in merchant
banking.
 4. What is the position of merchant banking in private / public sector ?

Interpretation of data :
• According to above diagram 57.14% respondence choose good option so, that
mean merchant banking have good position in private sector.
• And 42.86% respondence choose average option so, that mean merchant
banking have average position in private sector.
 5. Are you registered in SEBI as a merchant banker ?

Interpretation of data :
• Acoording to above diagram 50% respondence have registered in SEBI as a
merchant banker.
• And 50% respondence no registered in SEBI as a merchant banker.
 6. How many people on an average receiving merchant banking services
in a month ?

Interpretation of data :
• According to above diagram shows, 17.86% respondence receiving less then
50, merchant banking services in a month.
• Then, 64.29% respondence receiving 50-100, merchant banking services in a
month.
• Then, 14.29% respondence receiving more then 100, merchant banking
services in a month.
 7. What are the factors to which you give priority when you invest in
merchant banking?

Interpretation of data:
• According to above diagram we can see, 64.29% people priority is safety in
investment in merchant banking.
• Then, 21.43% people priority is high returns in investment in merchant
banking.
• Then, 14.29% people priority is less risk in investment in merchant banking.
 8. Will it differ from investment bank?

Interpretation of data :
• According to above 60.71% respondence differ from investment banking.
• And 39.29% respondence not differ investment banking.
 9. What is the position of merchant banking in private sector?

Interpretation of data :
• According to above diagram 53.57% respondence says, merchant
banking have good position in private sector.
• Then, 42.86% respondence says, merchant banking have normal
position in private sector.
• And 3.57% respondence says, merchant banking have bad position
in private sector.
 10. Which type of service you most preferred by merchant banking in
SBI?

Interpretation of data :
• According to above diagram 53.57% respondence preferred phone banking by
merchant banking in SBI.
• Then, 21.43% respondence preferred SMS banking by merchant banking in
SBI.
• And, 25% respondence preferred directbank to bank by merchant banking in
SBI.
 11. Are you satisfied with the services provided by merchant banking in
SBI?

Interpretation of data :
• According to above diagram 85.71% respondence are satisfied with services
by merchant banking in SBI.
• And 17.86% respondence are not satisfied with services by merchant banking
in SBI.
 12. From how long are you holding an account in this bank ?

Interpretation of data :
• According to above diagram 50% respondence are holding an account 1-5
month in this bank.
• Then 42.86% respondence are holding an account less then 6 years in this
bank.
• And 10.71% respondence are holding an account more then 10years in this
bank.
 13. How innovative is the services ?

Ineterpretation of data :
• According to above diagram 46.43% respondence says, very
innovative services.
• Then 42.86% respondence say, somewhat innovative services.
• And 10.71% respondence say, not so innovative services.
 14. What are frequency of transaction ?

Interpretation of data :
• According to above diagram 39.29% respondence are doing
transaction daily 2-3 times in a week.
• Then 46.43% respondence are doing transaction once per week.
• And 17.86% respondence are doing transaction once per month.
 15. How is customer service from our merchant banking in SBI?

Interpretation of data :
• According to above diagram 53.57% respondence says, that customer services
are good of merchant banking in SBI.
• Then, 21.43% respondence says, that customer services are to good of
merchant banking in SBI.
• Then, 28.57% respondence says, that customer services are average of
merchant banking in SBI.
 CHAPTER NO. 6
CONCLUSION, SUGGESTION,RECOMMENDATION

6.1 Conclusion :

Conclusions can best be described as complementary to the introduction.

Conclusions, like introductions, can often be difficult to write because both
paragraphs are concerned with the essay as a whole more than any one part.
Conclusions are designed to move readers out of the specific ideas and/or argument
and back into the world outside the paper. Therefore, a concluding paragraph provides
a space for the final word on a subject, whether it’s tying up loose ends, reiterating the
importance of the topic, or broadening the topic’s focus to the reader’s daily life.
Merchant Banking is an essential service, provided by financial Institutions to
help in the growth of corporate sector. Corporate counselling is a facility provided by
Merchant Bankers to Corporate enterprises to improve the performance of the
enterprises. The Merchant Banks coordinates the activities of financial intermediaries
which is a process by which Capitals are mobilised from a large number of investors
and make them available to Corporate Customers. The present scenario of the Indian
economy is not encouraging. India is likely to end the year with GDP growth of only
5 percent. Companies and private equity investors are laying off the experienced man
power to minimize the liquidity crunch. The activities of state owned Telecom sector
is on the verge of liquidation and the Railways are being privatized. The worst hit was
the Motor vehicles sector where due to fall is the sale of units, huge number of men
power was laid off. The recovery of the Indian economy is very difficult at this
juncture and the GST played a spoil sport among the micro and macro sectors which
are instrumental in the growth of GDP and employment sectors. These factors had
affected the Merchant Banking activities in India.
The merchant bankers are individuals or entity who help in channelling of
funds from the market participants who have surplus funds to individuals who need
finance for their business. They help small business to raise finance either through
bridge financing or mezzanine financing.
The merchant banker plays a vital role in channelizing the financial surplus
of the society into productive investment avenues. Hence before selecting a merchant
banker, one must decide Mukt Shabd Journal what are the services for which he is
being approached. Selecting the right intermediary who has the necessary skills to
meet the requirements of the client will ensure success. It can be said that this project
helped me to understand every detail about Merchant Banking and in future how it’s
going to get emerged in the Indian economy. Hence, Merchant Banking can be
considered as essential financial body in Indian financial system. Market development
is predicated on a sound, fair and transparent regulatory framework. To sustain the
growth of the market and crystallize the growing awareness and interest into a
committed, discerning and growing awareness and interest into a essential to remove
the trading malpractice and structural inadequacies prevailing in the market, and
provide the investors an organized, well regulated market place in future.
The State Bank has been highly successful in its objectives in opening a
network of branches in rural and semi-urban areas. It has established itself as the
largest commercial bank of the country.
The State Bank of India has made significant strides in the right direction.
It has made remarkable progress in expanding banking facilities in rural and semi-
urban areas, as well as providing financial assistance to agriculture, cooperative
institutions, and small-scale industries.
Though it has undergone many transformations in terms of both ideology
and presentation over the past thirty years, punk music has been, and will continue to
be, directly connected to the modern socio-political situation of our world. The genre
evolves and diversifies with each new generation of people that discover and
contribute to punk music. This adaptability has allowed punk music to continue to act
as a bridge between that particular sub-culture and mainstream society. Instead of
clinging blindly to outdated ideals, the punk community has come to terms (though
sometimes grudgingly) with the fact that change is inevitable, and in the end it is how
a person (or group of people) effects that change that makes the biggest difference. It
is through this evolution that the genre has maintained its position as a definitive
voice of not only youth culture, but as a legitimate means of rhetorical expression as
well.
Though a simple summary is often frowned upon because it can be dull for
readers, there are certain occasions where it might be appropriate. Summarizing your
findings for a long, complex, or technical project may be necessary to ensure that your
readers are taking away the information they need. Additionally, an instructional text
that focuses on concepts may also require a simple summary as a conclusion.

The Merchant Banking industry in India which started with large foreign
banks and firms and were then adopted by Indian Commercial Banks and firms as
well, have faced various challenges over the years. This study provides details onthe
profile of select Merchant Banks in India belonging to public and private sectors, to
find out the growth potential of the Merchant Banking public & private sector
companies, the respondents prefer investing in passive income, and it is also observed
that not much of the respondents are aware about the service availed by merchant
bank. Merchant Banks are now focusing on below points: -
• Longstanding client relationships.
• Strong positions in high-growth client and product niches.
• Multiple revenue growth initiatives are in place with detailed and concrete
action plans, and with rigorous follow-up mechanisms.
• Growth is controlled by a sound Risk Management System and disciplined
cost management.
 • Small & Medium scale enterprises SMEs need immediate attention from
merchant bankers to get access to finance.

• SMEs are facing stiff competition from large scale companies

6.2 SUGGESTION :

Suggestion is the psychological process by which a person guides their

own or another person's desired thoughts, feelings, and behaviors by presenting
stimuli that may elicit them as reflexes instead of relying on conscious effort.
Nineteenth-century writers on psychology such as William James used the
words "suggest" and "suggestion" in the context of a particular idea which was said
to suggest another when it brought that other idea to mind. Early scientific studies
of hypnosis by Clark Leonard Hull and others extended the meaning of these words in
a special and technical sense (Hull, 1933).
The original neuropsychological theory of hypnotic suggestion was based
upon the in motor reflex response that William B. Carpenter declared, in 1852, was
the principle through which James Braid's hypnotic phenomena were produced.
The staff of SBI and has to be courteous and polite. The banks required
hiring right kind of people, with adequate knowledge of banking especially at banks
call centers. Training programmes should be devised for all staff including call centre
and Staff of Direct Sales Associates or Associates of these banks. More importance
should be given to upgrade product knowledge and communication skills in such
training programes. There is a need for banking staff to have training in the areas of
technology and interactive skills.
The marketing personnel selected by direct sales associates of SBI should
be more qualified, in terms of education, product knowledge, communication skills
etc. In the bank the customer and his first introduction with bank at front desk. The
person who is presenting the services to the customers is identified with the services
offered so the banker or the professional who is offering the banking services to the
customers should be good in his appearance, his attitude which should be appealing to
the customers. Proper dress code, perfect surroundings, attractive interiors, ambience
and courteous staff at the counters are must to attract the customers. The personnel at
front desk also need to be developed to deliver service quality. The bank should
attract best talent and retain that talent by right kind of policies in respect of salary,
incentives, etc. Develop service oriented internal processes. Include employees in the
banks vision. Right kind of reward to be provided to strong service provider. Both the
banks need to adopt customer oriented service delivery.
A suggestion is an idea that one suggests, or says
is good for another (or others) to follow. Some people may agree to it, and some may
disagree. If they disagree or have a different suggestion, the person who first
suggested the idea will usually discuss with the other people and find a good
conclusion that satisfies both and is good.
Suggestion is one of the requirements for progress, and projects are wings to
improve. Sometimes a suggestion may sustain or even survive a project. Actually in
the project-based activities, managing suggestions and using their benefits are more
important than routine activities.

6.3 RECOMMENDATION :

Merchant banker should advertise as much as possible for the awareness

among the public and inform them about the investment option.
• Merchant banker ought to educate the investors concerning the chance management
and correct coming up with for the investment.
• They must conjointly give technical, money & social control services & facilitate
the corporate to line up am emoir.
• The assistance should be provided for the equity support through loan support to
supplement this may be extended.
• It is better for merchant banks to bring professionalism in their merchant banking
functions.
This will enable merchant bankers to gain excellence in their performance.
• A very large number of merchant bankers make it difficult for SEBI to monitor
them. It is better to evolve and implement sound and sensible eligibility criteria for
people to quality as merchant banks.
• Merchant banks do engage in extending leasing and hire purchase services to their
corporate clients and generate revenue in the form of the lease rentals and hire
purchase instalments.
6.4 FINDINGS :

Respondents are interesting in saving their annual income for the passive
income which they
will use it in the future in their retirement for the independence on the others.
• Respondents founds that fixed deposits type of savings is better than mutual fund
because
mutual fund is risk is as compare to fixed deposit.
• Respondents wants to invest in the fixed deposits because it is safer than mutual
fund.
• Respondents observe that fixed consume time than mutual fund for the better return.
• Companies making large size issues of equity shares relied more on foreign
merchant bankers than on Indian merchant bankers because of their vast international
network.
• Year wise participation of merchant bankers in the management of public issues of
equity showed that the majority of small merchant bankers were involved in one or
two issues only during the year.
• SBI Capital Markets Ltd. was the preferred choice of maximum issuers (43 in
numbers). This was followed by Enum Securities Ltd with 35 equity issues. 224 Karly
Investor Services Ltd. managed 34 equity issues. ICICI Securities Ltd, UTI Securities
Ltd and Kotak Mahindra Capital Co. Ltd managed 32, 33 and 30 public issues
respectively.
• SBI Capital Markets Ltd was the preferred choice of public and private banks for
the management of their public issues of equity. Out of 40 public issues of equity
floated by public sector banks in India during the period under review, SBI Capital
Markets Ltd was the lead manager/BRLM/co-lead manager in as many as 31 equity
issues.
• In most of the cases, the issuer 225 companies appointed their own subsidiary
company/sister concern to advice on their equity issue.
• With the exception of SBI Capital Markets Ltd and Canara Bank, no other public
sector bank performed a significant role in the public issue management activities.
Other public sector banks’ subsidiaries/merchant banking divisions who showed their
presence in public issue management were BOB Capital Markets Ltd, All bank
Finance Ltd, BOI Finance Ltd, PNB Capital Markets.
BIBLOGRAPHY AND WEBLOGHRAPHY

1. Bibloghraphy:

▪ Book refered

• Suresh, P&Paul,J(012).
Management of Banking and Financial Services; New Delhi,India .
. • Gordon,E & Natrajan,K (2015)
Banking: Theory Law and Practice, Mumbai.Himalaya Publishing House.
• Nigam.L (1985) Banking Law and Practice,NewDelhi, Vani Educational Books.
• Yadav,S.K. (2015) Elements of Research Writing,New Delhi,UDH Publishers &
Distributors,Ltd.
• Annual Reports: Annual reports of BOBL,BNBL,DRUK-PNB,T BANK,RMA
Annual reports
• (ii) World Bank Reports. (iii)Asian Development Bank Reports.
• Aburime , T.U.(2008) Determinants of bank profitability : macroeconomic
evidence from Nigeria.
• Adhikari.K, Barman.N & Kashyap.P (2014) Profitability of State Bank of India:
An Analysis. Pacific Business Review International 91-97.
• Alshatti, A.L (2015) The Effect of the Liquidity Management on Profitability
in the Jordanian Commercial Banks.

2. Webiloghraphy :

• Some websites

• www.google.co.in
• www.yahoo.com
• www.economictimes.com
• www.jmmorgansranley.com
• www.dsml.com
• www.sebi.co.in
• www.sbi.co.in
• www.merchantbanking.in
 ANNEXURE
Sheth N.K.T.T.COLLEGE THANE (WEST)

Name : _________________________________

Age : ___________

Gender : _____________

Occupation : _______________

1. Do you know about merchant banking?

1. Yes

2.No

2. Do you know about the services provide by merchant banking?

Yes

No

3. Do you take any services form merchant banking ?

Yes

No

4. What is the position of merchant banking in private

1. Good

2. Average

3. Bad
5. Are you registered in SEBI as a merchant banker?

1. Yes

2. No

6. How many people onan average receiving merchant banking services in a

month?

1. Less then 50

2. 50-100

3. More then 100

7. What are the factors yo which you give priority when you invest in merchant
banking?

1. Safety

2. High return

3. Less risk

8. Will it differ form investment banks?

1. Yes

2. No

9. What is the position of merchant banking in private sector?

1. Good

2. Normal

3. Bad

10. Which type of service you most preferred by merchant banking in SBI?

1. Phone banking

2. SMS banking

3. Direct bank to bank

11. Are you satisfied with the services provided by merchant banking in SBI?

1. Yes

2. No

12. Form how long are you holding an account in this bank?

1. 1-5 month
2. Less than 6years
3. More than 10years

13. How innovative is the services?

1. Very innovative
2. Somewhat innovative
3. Not so innovative

14. What are frequency of transaction?

1. Day2-3timein a week
2. Once per week
3. Once per month

15. How is customer service from our merchant Banking in SBI?

1. Good
2. To good
3. Average
4. Not satisfied