Investment Banking

Presentation on management thesis

Under the supervision of Prof.Anand Patil

‡ The project explains Investment Banking. the importance of

‡ The different products of Investment Banking , and the functions of Investment banking. ‡ And how the Banking business were getting into the Investment Banking business

To raise money issuing and selling in the security markets. ‡ Advisory services for mergers . ‡ They started to assist public and private corporations in raising funds in the capital markets. .acquisitions and other types of financial transactions.Cont« ‡ Banks started to help companies government and agencies.

 To have a detailed study on Investment Banking.  Study the reasons for moving towards from Banking to Investment Banking.  Steps for improvement in Investment Banking .

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

Structure and services Investment Banking Font Office Middle Office Back Office Corporate finance Mergers and acquisitions Trading Project finance .

INVESTMENT BANKS Domestic Players ‡ SBI capital markets ‡ Kotak Mahindra capital company ‡ The Industrial Development Bank of India (IDBI) ‡ ICICI securities ltd ‡ Avendus ‡ Bajaj capital Foreign players ‡JP Morgan chase bank ‡DSP Merrill Lynch ‡Deutsche Bank ‡Citi group .

8 12.3 12.8 21.5 20.2 16.FEES FOR THE SERVICES 2005 Citi DSP Merrill Lynch Kotak-Goldman Sachs JP Morgan JM Morgan Stanley ICICI Bank HSBC Holdings Deutsche Bank AG ENAM Financial ABN AMRO 30.4 17.9 5.7 26.5 19.4 14.1 6.4 .8 12.6 2006 Citi DSP Merrill Lynch JM Morgan Stanley JP Morgan Barclays Capital Kotak-Goldman Sachs UBS Deutsche Bank ICICI Bank CLSA 49 44 26.6 21.1 9.2 21.1 13.

2007 Citi JM Morgan Stanley DSP Merrill Lynch JP Morgan Deutsche Bank AG ABN AMRO UBS HSBC Holdings Barclays Capital Rothschild 79.4 .8 15.6 46.3 17.8 22.5 58.2 26.1 40 40 39.2 70 56.8 57.7 26 22.4 44.1 2008 UBS Citi JM Financial DSP Merrill Lynch Goldman Sachs Deutsche Bank AG JP Morgan HSBC Holdings Lehman Brothers ICICI Bank 109.9 31.9 19.2 29.Cont«.

2bn UTI Small-New Private Banks Bank Kotak Mahindra IDBI Bank / US$600mn / US$450mn / US$210mn Old Private (Regional) Banks Federal Bank / US$130mn Bank of Rajasthan / US$70mn Bank of Punjab / US$40mn .6bn / US$2.Equity Market capitalization of Investment Banks-2008 Large-New Private Banks Bank HDFC Bank ICICI / US$4.

Top M&A deals in India 2009 .

Cross border M&A by indian companies .

Rank of Investment Banks .

Reasons for movements ‡ ‡ ‡ ‡ ‡ ‡ Competitors More revenues Avoid losses For deposits Entry of foreign players Policy initiatives .

30 age 31 .Questionnaire 1.Age Age Category Below 20 age 21 .50 above 50 No of Responends 2 29 18 1 0 .40 age 41 .

Education qualification Education qualification PUC Graduation PG Other No of Respondents 3 25 18 4 .2.

3.What is your monthly income? Monthly income <10k 10k-20k 20000-30000 above 30000 No of Respondents 6 22 17 5 .

4.For what purpose you save the money? Purpose For investment For business health care For future contingencies No of Respondents 24 2 8 33 .

5.Are you aware of the Investment Banking? Awareness Yes No No of Respondents 38 12 .

Which Investment Banking service you are using? Services Used Equity Mutual Fund Insurance IPO No of Responents 6 12 18 2 .6.

7.Which Investment Banker is providing effective service? Effective Service City Group ICICI IDBI Kotak Mahindra SBI SBM AXIS Bank No of Responents 6 11 5 8 2 3 3 .

8.Are you satisfied with financial services offered by your investment banker? Satisfactory level Yes No No of Responents 27 11 .

9.Investment banking Yes No No of Responents 21 17 .Do you feel is it good for bank to move towards investment banking? Bank.

10.What type of problems you find in the investment banking? Problems Technical Time Availability Service Charges No of Responents 7 8 20 2 1 .

What type of improvements do you suggest to the investment banker? suggestions Good returns More products Advertisement No of Responents 13 18 21 .11.

Suggestions: ‡ Investment bankers have to concentrate on the advertisements. ‡ They have to give effective services to the clients. ‡ And also they have to offer more products equal to their competitors. ‡ Foreign banks are playing more roles in mergers and acquisition deals. ‡ Investment bankers have more competition from foreign banks.FINDINGS AND SUGGESTIONS: ‡ From the project main finding is the amount of revenue are getting from investment banking services are equal to commercial banking revenues. .

‡ If they concentrate more on advertisement and effective services to the clients they will get more success.Conclusion ‡ In India present scenario investment banks are playing more roles in financial markets on behalf of their clients. But investment banks have more competition from foreign banks. trading securities. In the form of raising funds. . advisory services.

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