INNOVATIONS IN BANKING

AND INSURANCE

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 GUIDED BY:
KRISHNAN SIR
2
 V.G VAZE COLLEGE

NAME: AARTI MENGHANI

ROLL NO: B032
YEAR: 2008-09
CLASS: S.Y.BANKING AND
INSURANCE

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 ACKNOWLEDGEMENT

I feel immense pleasure in presenting my

project on “Investment Banking In India”
As part of our curriculum in semester 4th of
S.Y.BCOM Banking and Insurance.

At the end of this project, I would like to

thank my professor who provided us his
valuable guidance and suggestions which has
helped to complete my project on time.

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Objective of the study

The major objective of the study are:

To get a clear view of the services available in our

country.

To highlight the various banking products and

services under the banking sector.

To make a common man aware of various banking

facilities as per his needs and size of pocket.

Through this project a person can have an idea of

what can be provided and to what extent.

Gaining much better understanding and

knowledge of banks as field of banking investment.

To know how banks are covering every aspect of life.

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Methodology

1.Data
Information is obtained by primary sources as well

secondary sources. The secondary data is gathered from

books, websites, pamphlets.

2.Period of study
The study was conducted from 25th November 2008 till 15th

February 2009.

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Executive Summary
Banking today has become one of the major industries,
covering almost all aspects of life that we can think of . the
various services and products made available are as per the
requirements of common man. The various products gives
an opportunity to choose the product that suits the best to
the customer.
Money being the most important commodity in life it can
be channeled in the most profitable way today. Due
liberalization, various methods are available today to
channel our savings with care. These new products insure
that we are save and we get fixed returns.
There are various types of products available today of
which investment banking is one of them which helps a
person to invest in various products like mutual funds,
equity shares, and insurance.
Other than this, the other types of services are wholesale
banking, core banking, retail banking. The main objective
behind providing these wide range of products and services
is to achieve maximum customer satisfaction. Besides,
banking is also becoming growing field for investment.

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 Limitations

1. Some of the banks were less cooperative.

2. H ad to visit the banks two to three times to get
all the in formation.
3. Limited information.
4. Had to wait for a long time.
5. Some of the banks didn’t give letter of
acknowledgement.
6. The branch manager did not have all the
information , it was only available at the head office.
7. Limited time was given to survey.

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 CONTENTS

Chapter 1 Introduction
Functions
Various activities
Hierarchy
Chapter 2 Analysis
Survey
Graphs
Chapter 3 Findings
Suggestions
Conclusion
Bibliography

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 Chapter 1.

1. Introduction

2. Hierarchy

3. Functions

4. Activities

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 INTRODUCTION

Investment banking is a very vast area in the field of

banking and finance. Investment banking includes the
activities of raising finance, managing them, advising
about investments and marketing of financial products.
Where there are separate investment banks in the US
and Europe, in India, mostly the commercial banks
undertakes investment banking in whole or in part of it.
Mostly merchant banking is undertaken in India and the
same is taken to be investment banking. It should be
understood that merchant banking is only a part of
investment banking and not the other way round.
Investment banks help companies and governments
raise money by issuing and selling securities in the
capital markets (both equity and debt), as well as
providing advice on transactions such as mergers and
acquisitions. Until the late 1980s, the United States and
Canada maintained a separation between investment
banking and commercial banks.

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Financial intermediaries who perform a variety of
services, including aiding in the sale of securities,
facilitating mergers and other corporate
reorganizations, acting as brokers to both individual
and institutional clients, and trading for their own
accounts. An investment bank is different from your
traditional bank down the street in the sense that it does
not keep any deposits with itself to pay you an interest
nor does it guarantees the "safekeeping" of your money.
An investment bank is more specialized organization
that takes in your money and after analyzing the
possible risks and economic conditions gives you
advice to convert it into more money. The services
provided by Investment Banks takes many forms:
securities underwriting, stock and bond trading,
facilitating mergers and acquisitions, arranging and
funding syndicated loans and providing financial
advice to companies on aspects like pricing of
securities.

A broader and better definition of investment banking

is to think of investment banking as an industry, which
either trades directly in capital market products or uses
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the underlying capital markets, to construct different
financial products. So an Investment Banker is an
individual or institution who/which acts as an
underwriter or agent for corporations and
municipalities issuing securities. Most also maintain
broker/dealer operations, maintain markets for
previously issued securities, and offer advisory services
to investors. investment banks also have a large role in
facilitating mergers and acquisitions, private equity
placements and corporate restructuring.

A majority of investment banks offer strategic advisory

services for mergers, acquisitions, divestiture or other
financial services for clients, such as the trading of
derivatives, fixed income, foreign exchange,
commodity, and equity securities. Trading securities
for cash or securities (i.e., facilitating transactions,
market-making), or the promotion of securities (i.e.,
underwriting, research, etc.) is referred to as the "sell
side."

Dealing with the pension funds, mutual funds, hedge

funds, and the investing public who consume the
products and services of the sell-side in order to
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maximize their return on investment constitutes the
"buy side". Many firms have buy and sell side
components. The largest bulge-bracket firms on Wall
Street include Goldman Sachs, Merrill Lynch,
Citi,Morgan Stanley, JPMorgan Chase, and UBS.
Investment banking is a field of banking that aids
companies in acquiring funds. In addition to the
acquisition of new funds, investment banking also
offers advice for a wide range of transactions a
company might engage in.

Traditionally, banks either engaged in commercial

banking or investment banking. In commercial
banking, the institution collects deposits from clients
and gives direct loans to businesses and individuals. In
the United States, it was illegal for a bank to have both
commercial and investment banking until 1999, when
the Gram-Leach-Bliley Act legalized it. The line
between investment banking and other forms of
banking has blurred in recent years, as deregulation
allows banking institutions to take on more and more
sectors. With the advent of mega-banks which operate
at a number of levels, many of the services often

14
associated with investment banking are being made
available to clients who would otherwise be too small
to make their business profitable.

Careers in investment banking are lucrative and one of

the most sought after positions in the money-market
world. A career in investment banking involves
extensive traveling, grueling hours and an often cut-
throat lifestyle. While highly competitive and time
intensive, investment banking also offers an exciting
lifestyle with huge financial incentives that are a draw
to many people.

This graphic depicts what some would argue is a

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possible cause for the recent market timing scandal in the
US Mutual Funds and Investment Management sector. It
suggests that in previous decades in the 20th century,
investment banking and investment bankers saw their role
as one of stewardship to the investors in the pension fund
and other monies they managed. In more recent times
some investment bankers see their role as one of a
salesman, seeking to attract the highest level of funds
under management. This latter role may bring the
investment banker into conflict with the interests of the
investors placing funds with them. The graphic depicts a
dollar symbol on its side with two scenes. The first scene
on the left shows the investment banker accounting to
investors on fund performance. Note that the investors are
in control. In the scene on the right, the investment banker
is in his office controlling matters, with a less that
deferential style.
The words "Investment Banking" are added. This shows
the changing role of investor banker with the passage of
time. But the basic function of the I-bankers has remained
the same. The only difference that has occurred is in the
way of delivering the customers.

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 Hierarchy of Investment Banking

What is the typical job title hierarchy or ladder?

Most investment banks have the same strict hierarchy
or ladder of financial professionals. From junior to
senior, the typical hierarchy is (1) Analyst, (2)
Associate, (3) Vice President (VP), (4) Senior Vice
President (SVP)/Director and (5) Managing Director
(MD). Some banks have different names for some of
these positions, but the relative roles of each tend to be
consistent within all I-banks.

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 MANAGING
Senior level officer,
DIRECTOR take marketing
efforts

DIRECTORS Client developers,

role is similar to
vice president

VICE
Project managers,
PRESIDENT Manages the
clients

MBA’s, check the

ASSOCIATES work of analyst, do
financial modeling

Undergraduates do
ANALYST actual administrative
work, handle phone
calls.

What is the general role of each of the different levels?

Analysts are typically men and women directly out of
undergraduate institutions who join an investment bank
for a two-year program. As Analysts are the bottom
rung on the investment banking ladder, they do the vast
majority of the actual "work."
Associates are typically either individuals directly out
of top MBA programs or Analysts that have been
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promoted. The first role of the Associate is to oversee
and to check the work of the Analyst. In addition, the
Associate will often help with presentation and
analytical work, including financial modeling.
The primary role of the Vice President is to be the
project manager, whether for marketing activities or
while on a live transaction. The VP must manage the
client and the more senior bankers, and oversee the
work of the Analysts and Associates.
The SVP/Director may either play a role similar to that
of the VP or play a client development role like the MD.
As the senior level banker, the role of the Managing
Director is mostly one of client development. The MD
will likely be the one with the senior level company
relationships and is typically responsible for leading
marketing efforts.

What kind of work do Analysts and Associates do on a

day-to-day basis?
Broadly speaking there are three types of work that
Analysts and Associates do: presentations, analysis and
administrative tasks. Presentation work involves the
putting together and writing of various PowerPoint
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presentations including marketing documents
("Pitches" or "Pitchbooks") and documents for live
transactions.
The second main task of an Analyst is analytical work.
Pretty much anything done in Excel is considered
analytical work. The most important types of analytical
work are typically valuation (i.e. how much is a
company worth) and financial modeling.
Administrative work involves things like scheduling
and setting up conference calls and meetings, making
travel arrangements and keeping a list of deal team
members up to date. Associates tend to have significant
ongoing interaction with clients and with other
investment bankers while on live transactions.

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 Activities of Investment Banking
Industry

Whether investment banking is performed by a

company as its sole activity or simply as a department
in a commercial bank, the main activities remain the
same, as follows: Advising the clients, Administration
of the funds, Underwriting of issues and Distribution of
financial products. Other related activities that most of
the investment bankers undertake are: mergers and
acquisitions, investment management, securities sale
and securities trading as well as insurance product
designing, pension plan designing, hedging foreign
currency positions, real estate dealing and other assets
management services. While an investment banker
charges some fees to the client, which could be a fixed
sum or a percentage of the funds raised or managed, and
it may seem that the fees charged are high in money
terms, it is always cheaper and wiser to go to a
professional money manager to raise/manage funds,
than to do it on ones own, as the later option may lead
to a disaster and major loss of funds.
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Advisory Function

The advising function starts with the investment banker

assessing the fund requirement of its client, whether an
individual or a body corporate. The requirements are
not only related to the amount of funds required, but
also the purpose and time for which the requirement is
there. After that the investment banker will advise the
client about the cost and benefit of various sources of
finance which are viable and the timing of each one for
raising the funds. Finally it will advise the clients about
the best source and recommend a group of institutions
that can assemble the package and fulfill the funding
needs.

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 Strategic Advisory
Successful strategies in the media, entertainment and
communications space require a particularly keen
understanding of the shift from old to new business
models. For example, as user-generated content
continues to explode into open distribution platforms,
traditional companies must rethink the way theysatisfy
consumer appetites and measure the results.

An investment banker excels at anticipating these

trends and identifying growth opportunities. They have
the luxury of being able to concentrate all of their
energies on media, entertainment and communications
properties around the world.

These professionals offer expert assistance in the

following areas:

 Strategic business planning

 Negotiating business contracts
 Improving management operations
 Developing and financing new business ventures
 Preparing applications for franchises or licenses

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  Assisting clients in understanding changing market
dynamics.

Corporate Advisory
The investment bankers can deliver a variety of
advisory services including all types of restructuring,
joint ventures, acquisitions & mergers and asset sales.
In particular, it offers international companies a highly
professional conduit for transacting business in India.
The Investment Banking division can assist in forming
joint ventures, identifying suitable partners as well as
providing the full range of establishment services
needed for conducting business in India. The I-bankers
also acts for businesses seeking
investments/acquisitions in other parts of the world.
This is further backed up by their ability to arrange the
required capital. I-bankers have very strong sector skills
in automotive, engineering, healthcare, telecom, media,
energy, business process outsourcing, financial
services, and real estate and infrastructure areas.
Project Advisory Services
Providing specialized project services from concept to
commissioning – from pre-investment feasibility
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studies and appraisals to development of joint ventures
and company formation is an important function of the
investment bankers.

Providing professional services to international

companies interested in projects in India, or any part of
the world in areas such as power, telecommunications
and surface transport infrastructure.

Providing specialized inputs, on request, to assist in the

profitable and economic implementation of projects in
close co-operation with promoters and designated
shareholders. Assisting investment entities of the group
in successfully identifying and implementing projects
in any part of the world.

The I-bankers are many a times itself committed in

long-term investments in several projects in developing
countries and it also uses its expertise to assist other
project investors. This expertise encompasses power
generation, airport construction and transportation
including air cargo transportation, development of
roads, airports and associated infrastructures.
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 Mergers and Acquisitions

Mergers and acquisitions is the another area where the

investment bankers have been active for a very long
time. They help there clients to find out prospective
merger partners or an acquisition target or prospective
clients for sale. In addition they may be asked to devise
appropriate strategies for the acquisition, including the
raising of sufficient for the same.

In today’s market, successful acquisitions and

divestitures depend upon expert guidance to negotiate
an unprecedented confluence of complementary and
competing business models. Investment bankers have
the professional knowledge to issue that guidance from
start to finish and to help their clients achieve the
highest possible returns.

Our expert capabilities include:

 Advising clients on which strategies to pursue

(mergers, acquisitions and/or divestitures)
 Recognizing the most promising buyers or
acquisition targets
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  Developing valuation models
 Creating innovative debt and/or equity financing
structures
 Considering other equity and joint venture partners
to facilitate completion of a transaction

Corporate Finance

When contemplating a sale of a business, a merger,

raising equity, procuring a working capital line of credit
or any number of other transactional events; it is
important to think through issues before acting. Most
companies need corporate finance advisory services to
evaluate their options and to get the company ready to
maximize its value in the marketplace. It is just a fact
that equity comes cheaper, loan rates come down and
companies sell for more money when they prepare
themselves for these events by taking steps favored by
the capital markets. Investment banker can guide a
company through this process and devise a strategy that
enables the company to meet its objectives. Working
through investment bankers network of strategic
partnerships and affiliates, they can help direct the best
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 people and resources to accomplish the objective at no
“extra cost” to the client. Their ability to be objective
and associate the company’s needs with the right
investment banking alternative is a valuable customer
driven service that aligns their interest with company’s,
they remembering that company is their client and their
duty is towards them.

Investment bankers had known their creativity in

connecting financial resources with their clients’ capital
needs. Through our long-standing relationships with
sources of debt and equity financing with various firms
and overseas they arrange financial packages to fund all
our clients’ capital needs including:

 Consolidations
 Divestitures
 Growth capital
 Joint ventures and/or strategic alliances
 Leveraged or management buyouts
 Mergers and acquisitions
 Refinancing
 Recapitalizations

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  Other shareholder monetization and liquidity
initiatives

Investment banker’s goal is to consistently create

optimum financial structures and pricing, regardless of
changes in the availability of capital, fluctuating political
and governmental climates and regulatory environments.

What makes an investment banker an ideal partner in

corporate finance is our ability to carefully measure the
pros and cons of every financial option available and to
create favorable options where none exist. An
investment bank can assist a firm in raising funds to
achieve a variety of objectives, such as to acquire
another company, reduce its debt load, expand existing
operations, or for specific project financing.
Capital can include some combination of debt, common
equity, preferred equity, and hybrid securities such as
convertible debt or debt with warrants. Although many
people associate raising capital with public stock
offerings, a great deal of capital is actually raised
through private placements with institutions,
specialized investment funds, and private individuals.

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The investment bank will work with the client to
structure the transaction to meet specific objectives
while being attractive to investors.

Other activities

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 In addition to the above mentioned activities,
investment bankers have been interested in designation
of insurance products, pension plans, hedging risk and
risk management, foreign currency activities, real
estate dealing, etc. the field of an investment banker has
been growing fast owing to the fact that the finance
company is seeking a lot of innovations and are fast
emerging.

Asset Securitization

Another development in recent years has been the vertical

integration of debt securitization. Previously, investment
banks had assisted lenders in raising more lending funds and
having the ability to offer longer term fixed interest rates by
converting the lenders' outstanding loans into bonds. For
example, a mortgage lender would make a house loan, and
then use the investment bank to sell bonds to fund the debt,
the money from the sale of the bonds can be used to make
new loans, while the lender accepts loan payments and
passes the payments on to the bondholders. This process is
called securitization. However, lenders have begun to

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securitize loans themselves, especially in the areas of
mortgage loans. Because of this, and because of the fear that
this will continue, many Investment Banks have focused on
becoming lenders themselves,[3] making loans with the goal
of securitizing them. In fact, in the areas of commercial
mortgages, many investment banks lend at loss leader
interest rate in order to make money securitizing the loans,
causing them to be a very popular financing option for
commercial property investors and developers .

Loan Syndication

A syndicate facility is a lending facility, defined by a

single loan agreement, in which several or many banks
participate. Syndicate loan is more suitable as compared
to simple from single or multiple banks under following
circumstances:

 A borrower wants to raise a relatively large amount of

money quickly and conveniently.
 The amount exceeds the exposure limits or appetite of
any one lender

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  The borrower does not want to deal with a large number
of lenders

Benefits of Syndication:
Syndicated loans provide borrowers with a more complete
menu of financing options. In effect, the syndicate market
completes a continuum between traditional private
bilateral bank loans and publicity traded bond markets.
This has resulted in a more competitive corporate finance
market, which has permitted issuers to achieve more
market oriented and cost effective financing. Benefits to
each party involved are listed below:

Benefits to the Borrowers:

1. deals with a single bank
2. Quicker and simpler than other ways of raising capital
(e.g. Issue of bond or equity).
Benefits to the Lead Bank
1. Fund arrangement and other fees can be earned without
committing capital.
2. Enhancement of bank’s reputation.
3. enhancement of bank’s relationship with the clients
Benefits to the Participating Bank’s
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 1. Access to lending opportunities with low marketing/
processing costs.
2. It triggers more opportunities to participate in future
syndications as network of the banks established a level
of comfort with each other.
3. In case the borrower runs into difficulties,
participant banks have equal treatment.

Venture Capital
Venture capital (also known as VC or Venture) is a type
of private equity capital typically provided to immature,
high-potential, growth companies in the interest of
generating a return through an eventual realization
event such as an IPO or trade sale of the company.
Venture capital investments are generally made as cash
in exchange for shares in the invested company.

Venture capital typically comes from institutional

investors and high net worth individuals and is pooled
together by dedicated investment firms.

Venture capital is most attractive for new companies

with limited operating history that are too small to raise

34
 capital in the public markets and are too immature to
secure a bank loan or complete a debt offering. In
exchange for the high risk that venture capitalists
assume by investing in smaller and less mature
companies, venture capitalists usually get significant
control over company decisions, in addition to a
significant portion of the company's ownership (and
consequently value).

Mutual funds

Mutual Funds in India are financial instruments. These funds

are collective investments which gather money from
different investors to invest in stocks, short-term money
market financial instruments, bonds and other securities and
distribute the proceeds as dividends. The Mutual Funds in
India are handled by Fund Managers, also referred as the
portfolio managers. The Securities Exchange Board of India
regulates the Mutual Funds in India. The share value of the
Mutual Funds in India is known as net asset value per share
35
(NAV). The NAV is calculated on the total amount of the
Mutual Funds in India, by dividing it with the number of
shares issued and outstanding shares on daily basis.

Mutual Funds in India - Advantages

 The Mutual Funds in India offer flexibility by means of

dividend reinvestment, systematic investment plans
and systematic withdrawal plans.
 These funds are available in small units, so they are
affordable to the small investors.
 The fees charged for to the custodial, brokerage and
others services are very low in case of Mutual Funds in
India.
 These funds have the option of redeeming or
withdrawing money at any point of time.
 The Mutual Funds in India have low risk as it is
managed professionally.

Banc assurance:
Banc assurance, the provision of insurance services by
banks, is an established and growing channel for insurance
distribution, though its penetration varies across different
markets. Europe has the highest banc assurance penetration
rate. In contrast, penetration is lower in North America,
36
partly reflecting regulatory restrictions. In Asia, however,
banc assurance is gaining in popularity, particularly in
China, where restrictions have been eased. The research
shows that social and cultural factors, as well as regulatory
considerations and product complexity, play a significant
role in determining how successful banc assurance is in a
particular market.

The outlook for banc assurance remains positive. While

development in individual markets will continue to depend
heavily on each country’s regulatory and business
environment, bancassurers could profit from the tendency of
governments to privatize health care and pension liabilities.
In emerging markets, new entrants have successfully
employed banc assurance to compete with incumbent
companies. Given the current relatively low banc assurance
penetration in emerging markets, banc assurance will likely
see further significant development in the coming years.

37
Chapter 2

38
Interpretation of the data

Survey

Graphs

Interpretation of the data

RECENT INVESTMENTS OF BANKS

Investment decisions are crucial as they help secure our

future. So today are banks are offering systematic
investment plan , a smart financial planning tool that helps
you to create wealth, by investing as little as Rs. 55 per
month over a period of time.

Systematic investment plan (SIP) is an investment technique

that allows you to provide for the future by investing small
39
amounts of money in mutual fund schemes of your choice.
Sip ensures that the investor continues to be invested in a
disciplined manner and thereby stays on course to achieve
his financial goals. Moreover, investing at an early stage in
life lets you enjoy the benefits of two powerful investment
strategies:
1. Rupee cost averaging
2. Power of compounding.

Benefits of SIP

1. Disciplined approach to investments

2. Takes advantage of rupee cost averaging

3. Simple, Convenient and Easy to monitor

4. Benefits of Compounding.

Following are the three categories available for investment

purpose.

40
 INVESTMENTS

DEPOSITS MUTUAL FUNDS INSURANCE

Most of the banks today are offering wide range of products

for their customers so that the customers can channel their
savings in the most profitable and less risky way. Following
are some banks offering products under the above stated.

Origination of investment banking in Indian banks

According to the graph above, it is noticed that

investment banking originated around 3-4 years in 50

41
 percent of the banks and the other half started around
5-6 years back.

ICICI BANK

ICICI Bank is India's largest private sector bank in market

capitalization and second largest overall in terms of assets.
ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through
a variety of delivery channels and specialized subsidiaries
and affiliates in the areas of investment banking, life and
non-life insurance, venture capital and asset management.
(These data are dynamic.) ICICI Bank is also the largest
issuer of credit cards in India. ICICI Bank has got its equity
shares listed on the stock exchanges at Kolkata and
Vadodara, Mumbai and the National Stock Exchange of
India Limited, and its ADRs on the New York Stock
Exchange (NYSE).
At ICICI Bank, all our needs are care of. Along with Deposit
products and Loan offerings, ICICI Bank assists you to
manage your finances by providing various investment
options ranging from ICICI Bank Tax Saving Bonds to
Equity Investments through Initial Public Offers and
Investment in Pure Gold. ICICI Bank facilitates following
investment products:

42
 Insurance

Forex Governm
services ent bonds

products

Mutual
Pure gold
funds

STATE BANK OF INDIA

The Bank is actively involved since 1973 in non-profit
activity called Community Services Banking. All our
branches and administrative offices throughout the country
sponsor and participate in large number of welfare activities
and social causes. Our business is more than banking
because we touch the lives of people anywhere in many
ways. The commitment to nation-building is complete &
comprehensive.

e-INVEST

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SBI has brought a new hassle free solution for investment in
IPO called e-Invest. Under the instruction of SEBI Bank has
introduced this supplementary process for applying in public
issue.

Various mutual fund plans available are:

1. Magnum balanced fund.

2. Magnum index fund.
3. Magnum multiplier plus 1993
4. Magnum global fund.

Some of the insurance plans are as follows:

1. Unit linked insurance plans

2. Unit plus child plan
3. Unit plus elite
4. Unit linked pension plan
5. Unit linked money back plan

HDFC BANK

Hdfc bank diversifies its investment plans as:

44
 Short
term

Medium term

Long term

As per the bifurcation, short term investments refers to

fixed deposits where investments are from 16 days to 1
year with 8.5 % interest and additional 2.5% interest for
services rendered. Incase of withdrawal within 30 days
then the interest charges is 10.5%.

Medium term refers to mutual funds which include:

1. Equity
2. Bonds
3. Securities.

Under this scheme, the folio charges are Rs. 500 and
mandatory service tax of 12.36%. The bank charges about
45
50 paisa per transaction. In financial markets, the only
constant thing is change. At such times, HDFC Securities
offers you a unique gamut of services designed to put you in
charge of your finances and lets you trade in the comfort of
your home or office. Finally, you can trade with complete
ease. HDFC Bank also presents Mudra, an offering worth its
weight in gold. Mudra is a 24 Carat, 99.99% pure gold bar
that you can purchase for investment or gifting.

Insurance
Insurance is divided into 3 parts as:

Life insurance
General insurance
Health insurance

Bank of India.

Bank of India In the last decade, diversified into related

areas like merchant banking, mutual fund, management of
stock exchange clearing house, venture capital, depository
services, bullion trading and credit card. Diversification has
been brought about by establishing subsidiaries and joint
ventures and also by acquiring strategic stakes in well run
companies.
The bank’s investment are the same as mentioned as above ,
the only add on point is that BOI offers its tailor made and
most popular insurance scheme which is Swast Bhima
Policy and it holds about 51% stake of Star Union Decline
Insurance company.
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HSBC BANK

HSBC is the largest bank in Hong Kong and second largest

group in the world after Citicorp.

HSBC India, along with HSBC Investment product and

HSBC Insurance, it offers international Gold Card and
Classic Credit Cards from VISA and MasterCard and debit
cards from Visa. HSBC in India gives 24 hour banking
services, extensive network of ATMs, integrated Call Centre
and also HSBC e-banking.

The Investment Bank has 2 primary business interests in

India namely:
Global Investment Banking (GIB) group provides public and
private sector and Government clients with strategic advice
and provides critical financial advice in the areas of:

Mergers and
Privatizations
Acquisitions
Equity Capital Structured Financial
Markets Solutions
Strategic Advice

Cooperation Bank

47
Cooperation bank investor services:
Corporation Bank has set up an Investor Services
Department at its Corporate Office at Mangalore. For any
assistance regarding dematerialization of shares, share
transfers, transmissions, change of address, non-receipt of
dividend, duplicate/missing share certificates and other
matters pertaining to your shares.
Corporation Bank's shares are listed on Bombay Stock
Exchange Ltd and the National Stock Exchange Ltd. (NSE)
and are permitted for trading on few of the other recognized
stock exchanges in India.
Corporation Bank shares are included in Specified Group in
BSE and CNX Nifty Junior index of NSE. The fair volume
of trading provides enough entry/exit opportunities to the
shareholders.

The mutual fund products of LIC MF, UTI MF, DSP Mutual
Fund, Reliance Mutual Fund, Franklin Templeton Mutual
Fund, Prudential ICICI Mutual Fund and Principal PNB
Mutual Fund are now available through the branches of
Corporation Bank.
Corporation Bank in association with LIC of India presents
life insurance cover to the housing loan taken by you –

1. New Corp Jeevan Griha Raksha .

2. NEW Corp Jeevan Raksha

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 Axis bank

Depository Services
Axis Bank is a registered member (Depository Participant) of
NSDL. In this system, physical security holdings are
converted into electronic (or in other words, dematerialized)
holdings. Axis Bank has been enrolled as a Depository
Participant by the NSDL - India's first depository. You can
avail of all the depository-related services by just opening an
account with NSDL through Axis Bank.

Transfer of shares and settlements

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

ING VYASA BANK

49
 Investment
options

EXCHANGE-
Retirement TRADED Savings
schemes FUNDS

Funds that act your age

Experience teaches us when to play it safe or take

calculated risks. An ideal investment for a 30-year-old is
different from one for a 40-year-old, because the
countdown to retirement differs. Target date funds are
balanced corresponding to your retirement date. These
funds rebalance every year to make sure you have an age-
appropriate mix of stocks, bonds, and other assets. And it
gets more conservative as the time you need your money
gets closer. That strategy cuts the chance of surprises late in
the game.

2.Exchange-traded Funds
Exchange-traded funds, or ETFs for short, are a basket of
stocks that meet set criteria. They provide a mutual fund’s
diversity plus the flexibility of trading anytime, like a stock.
Most ETFs are index funds, meaning they parallel market
and sector indexes, such as the S&P 500 or Russell 2000.
They are not actively managed, like mutual funds.

Advantages
50
  Low Expenses: Most ETFs are linked to market
indexes, so they are less expensive to run than "actively-
managed" mutual funds, leading to generally lower expense
ratios. High ratios can erode your returns. ETFs have
transaction fees when you trade, just like stocks.
 Trade like a Stock: ETFs trade just like stocks in the
markets, so you can buy or sell any time during the market
day.

3. Savings

Saving for the Long Run

Similar to Orange Savings Account, it allows you to grow
your retirement money with the security of FDIC
insurance.
 Great rate – you'll earn an impressive 1.85% Annual
Percentage Yield (effective 02/18/2009).
 No minimum balance required – everyone earns the same
high yield
 No Fees and no hidden charges – earn more money on
your money.

Kotak Mahindra bank

The bank focuses its investment plans mainly on real estate
investment schemes which is considered to be the best
investment plan with low risk.

51
Kotak Realty Funds Group (KRFG) plans to
opportunistically invest in and add value to Portfolio
Investments across a broad spectrum of real estate sectors
and geographies. Its investment objective is to produce long
term capital appreciation for investors by providing capital
to real estate-related projects and companies across India.
Increased off shoring by international companies
Demographic shifts stimulating home ownership
Robust consumer spending favoring organized retail
Institutionalization of property markets
Inflow of foreign business travelers and tourists
Large cohort of well-educated technical workers and
expansion of the middle class
Proliferation of financial services to the retail market

Bank of Baroda
FDI-Foreign Direct Investment
o FDI means Foreign Direct Investment. India Foreign
Direct Investment includes investments in the infrastructure
development projects including construction of bridges and
flyovers, finance sector including banking and insurance
services, real estate development, retail sector etc. The
foreign direct investment definition says the direct
investments in any productive assets in a country by any
foreign company are called foreign direct investment or
FDI.

52
FDI in India includes FDI inflows as well as FDI outflow
from India. Also FDI foreign direct investment and FII
foreign institutional investors are a separate case study
while preparing a report on FDI and economic growth in
India. FDI and FII in India have registered growth in terms
of both FDI flows in India and outflow from India. The FDI
statistics and data are evident of the emergence of India as
both a potential investment market and investing country.

According to the graph, the most riskiest investment is the

investment in stock market. Most of the banks have rated the
stock market the riskiest because of the market fluctuations.
It is not necessary that a person investing today may gain
more, it is possible that the amount invested may be low or
may be the same.

The second riskiest investment is mutual funds. Like stock

market investment are dependent on Net Asset Value . The
bottom 2 riskiest investments are gold and insurance. Gold
investments are less riskier because though the fluctuations

53
are on daily basis but the rates of gold do not fall or increase
drastically as in stock market or mutual funds.
Moreover, insurance is about securing oneself against the
damages , so the returns is gained after a period of fixed time
its not on daily basis. So the investor has to pay fixed
premium at agreed intervals and not on daily basis.

As per the diagram, almost all the banks provide

investment services to NRI’s and so special privileges are
given . Due to demat services its convenient for NRI’s to
operate their investments in India as the locals can do.
Except for 1 bank where investments are not known to the
customers so as such there are no such services.

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 Chapter-3

 Findings

 Suggestions

 Conclusion

55
 Findings
While conducting survey it could be figured out that
investment banking is an emerging trend not only amongst
businessmen but also amongst youngsters, housewives, and
students . Some of the figures like that of long term or short
term investment it was observed that the demand for long
term investment is more it might be because many people
between the age group of 20 years to 35 years are investing
more. All the banks today have diversified their investment
products because it helps to balance the risks and rewards of
one’s investments. There are wide range of products offered
by banks like mutual funds, equity shares, stock, bonds,
gold, property, wealth management and insurance. Gold
investment and Mutual Fund is very famous. Moreover the
services and products are not restricted to the localites but
the NRI’s are eligible for investing . A specific investment
strategy is followed by almost all banks which consists of
advising the customers, having a demat account for carrying
on the trade. With this it becomes convenient for the
customers to operate and even if a customer doest

56
not have a demat account then the bank also helps the
customer to have one. Due to wide range of products
available that cater to the needs of customers, have led to a
rising trend in banks investment which in turn has helped
banks yield funds . However , due to the global meltdown
the level of investments have gone down and this has
affected the banks too. But it is believed that conditions
would improve for the better and people would invest more
in the near future.

57
 SUGGESTIONS

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

fraud.
2. The banks should be transparent to the investors about
their investments.
3. Accurate Guidance should be given to the investors.
4. The banks should implement Customer Relations
Management .
5. With the help of CRM the banks can concentrate on
gaining more customers and retaining them and existing
customers also.
6. The banks should be well suited to assure their
customers about the returns so that the banks can gain
customers confidence.

58
 CONCLUSION
Our Investment Banking business is dedicated to providing
corporations, entrepreneurs and investors, the highest
quality independent financial advice and transaction
execution. Our professionals offer a full range of services
and transaction expertise, including private placements of
equity, capital raising services in public markets, mezzanine
and convertible debt, mergers and acquisition and
restructuring advisory services. We have a track record of
successfully closing more than 100 transactions to date.
Investment banking is professional management of various
securities (shares, bonds, etc.) and other assets (e.g. real
estate), to meet specified investment goals for the benefit of
the investors. Investors may be institutions (insurance
companies, pension funds, corporations etc.) or private
investors (both directly via investment contracts and more
commonly via collective investment schemes e.g. mutual
funds). The investment management division of an
investment bank is generally divided into separate groups,
often known as Private Wealth Management and Private
Client Services. Asset Management market making, traders
will buy and sell financial products with the goal of making
an incremental amount of money on each trade. Sales is the
term for the investment banks sales force, whose primary job
is to call on institutional and high-net-worth investors to
suggest trading ideas (on caveat emptor basis) and take
orders. Sales desks then communicate their clients' orders to
the appropriate trading desks, who can price and execute
trades, or structure new products that fit a specific need.

59
 Bibliography

1. Primary source:
Visit to the following banks:
HDFC Bank, Axis Bank, HSBC Bank, Bank of India, SBI,
Bank of Baroda, ING VYSA Bank, Cooperation Bank,
ICICI Bank, Kotak Mahindra Bank.

3. Secondary source:

www.hdfcbank.com,

www.kotakmahindra.com,

www.moneycontrol.com

www.economictimes.com

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