Presented by K.ANBAZHAGAN

M0208004

Under the supervision of

Prof.Anand Patil

Presentation on management thesis

Abstract

• The project explains the importance of Investment Banking.

• The different products of Investment Banking , and the functions of Investment banking.

• And how the Banking business were getting into the Investment Banking business

Cont…

• Banks started to help companies government and agencies. To raise money issuing and selling in the security markets.

• They started to assist public and private corporations in raising funds in the capital markets.

• Advisory services for mergers ,acquisitions and other types of financial transactions.

To have a detailed study on Investment Banking.

Study the reasons for moving towards from Banking to Investment Banking.

Steps for improvement in Investment Banking

Research Methodology

Research is done by market observation andthrough the questionnaire. The sample size is 50 and the data is collected from the people.

• Sample Size : 50• Sampling : convenience sampling • Primary Data: Market observation and

Questionnaire• Secondary Data: web sites.

Structure and services

Investment Banking Investment Banking

Font Office Font Office

Back Office Back Office

Middle Office Middle Office

Corporate finance

Corporate finance

Mergers and acquisitions

Mergers and acquisitions

Trading

Trading Project

finance 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

FEES FOR THE SERVICES

2005 

 2006Citi 30.7 Citi 49

DSP Merrill Lynch 26.5 DSP Merrill Lynch 44Kotak-Goldman Sachs 20.4 JM Morgan Stanley 26.2

JP Morgan 14.8 JP Morgan 21.8

JM Morgan Stanley 12.8 Barclays Capital 21.6

ICICI Bank 12.3 Kotak-Goldman Sachs 21.5

HSBC Holdings 12.1 UBS 19.4

Deutsche Bank AG 9.1 Deutsche Bank 17.2

ENAM Financial 6.9 ICICI Bank 16.1

ABN AMRO 5.6 CLSA 13.4

Cont….

 2007 

 2008 

Citi 79.5 UBS 109.2JM Morgan Stanley 58.8 Citi 70DSP Merrill Lynch 57.1 JM Financial 56.6JP Morgan 40 DSP Merrill Lynch 46.4Deutsche Bank AG 40 Goldman Sachs 44.9ABN AMRO 39.2 Deutsche Bank AG 31.2UBS 26.7 JP Morgan 29.9HSBC Holdings 26 HSBC Holdings 19.3Barclays Capital 22.8 Lehman Brothers 17.8Rothschild 22.1 ICICI Bank 15.4

Equity Market capitalization of Investment Banks-2008

Large-New Private Banks

ICICI Bank / US$4.6bn HDFC Bank / US$2.2bn

Small-New Private Banks

UTI Bank / US$600mn Kotak Mahindra / US$450mn IDBI Bank / US$210mn

Old Private (Regional) Banks

Federal Bank / US$130mn Bank of Rajasthan / US$70mn Bank of Punjab / US$40mn

Top M&A deals in India 2009

Cross border M&A by indian companies

Rank of Investment Banks

Reasons for movements

• Competitors

• More revenues

• Avoid losses

• For deposits

• Entry of foreign players

• Policy initiatives

Age Category No of ResponendsBelow 20 2

age 21 - 30 29age  31 - 40 18age 41 - 50 1above 50 0

Questionnaire 1.Age

Education qualification No of RespondentsPUC 3

Graduation 25PG 18

Other 4

2.Education qualification

Monthly income No of Respondents<10k 6

10k-20k 2220000-30000 17above 30000 5

3.What is your monthly income?

4.For what purpose you save the money?

Purpose No of Respondents For investment 24

For business 2health care 8

For future contingencies 33

5.Are you aware of the Investment Banking?

Awareness No of RespondentsYes 38No 12

6.Which Investment Banking service you are using?

Services Used No of ResponentsEquity 6

Mutual Fund 12Insurance 18

IPO 2

7.Which Investment Banker is providing effective service?

Effective Service No of ResponentsCity Group 6

ICICI 11IDBI 5

Kotak Mahindra 8SBI 2SBM 3

AXIS Bank 3

8.Are you satisfied with financial services offered by your investment banker?

Satisfactory level No of ResponentsYes 27No 11

9.Do you feel is it good for bank to move towards investment banking?

Bank- Investment banking No of Responents

Yes 21

No 17

10.What type of problems you find in the investment banking?

Problems No of ResponentsTechnical 7

Time 8Availability 20

Service 2Charges 1

11.What type of improvements do you suggest to the investment banker?

suggestions No of ResponentsGood returns 13

More products 18Advertisement 21

FINDINGS AND SUGGESTIONS:• From the project main finding is the amount of revenue are

getting from investment banking services are equal to commercial banking revenues.

• Investment bankers have more competition from foreign banks.• Foreign banks are playing more roles in mergers and acquisition

deals.

Suggestions:• Investment bankers have to concentrate on the advertisements.• And also they have to offer more products equal to their

competitors.• They have to give effective services to the clients.

Conclusion

• In India present scenario investment banks are playing more roles in financial markets on behalf of their clients. In the form of raising funds, trading securities, advisory services. But investment banks have more competition from foreign banks.

• If they concentrate more on advertisement and effective services to the clients they will get more success.