merchant banking

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MERCHANT BANKING A RESEARCH REPORT ON “MERCHANT BANKING” SUBMITTED BY CLIFFTON KINNY, T.Y.B.B.I ROLL NO: 8251 UNDER THE GUIDANCE OF PROF. SHIRLEY PILLAI ST.ANDREWS COLLEGE OF ARTS, COMMERCE, SCIENCE AND MANAGEMENT T.Y.BCOM (BANKING & INSURANCE) Page 1

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Page 1: Merchant Banking

MERCHANT BANKING

A RESEARCH REPORT ON

“MERCHANT BANKING”

SUBMITTED BY

CLIFFTON KINNY, T.Y.B.B.I

ROLL NO: 8251

UNDER THE GUIDANCE OF

PROF. SHIRLEY PILLAI

ST.ANDREWS COLLEGE OF ARTS, COMMERCE, SCIENCE AND MANAGEMENT

2011-2012

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DECLARATION

I, Cliffton Kinny, Roll No. 8251 student of St. Andrews College,

Bandra, in the Third year Bachelor of Commerce in Banking and

Insurance (Semester V) , hereby declare that I have completed the

research report on the topic of “MERCHANT BANKING” in the

academic year 2011-2012. The information submitted is herein is true, to

the best of my knowledge.

Stamp of College Signature of student,

(CLIFFTON KINNY)

(St. Andrews College of Arts,

Commerce, Science and

Management)

Signature of Signature of Coordinator External Examiner

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CERTIFICATE

I, SHIRLEY PILLAI here by certify that the following student of St.

Andrew’s College of T.Y.B.Com (Banking & Insurance) Semester (V)

has completed his research report on “MERCHANT BANKING” for

the academic year 2011-2012. Information submitted is true & original

to the best of my knowledge.

Stamp of college Signature of Professor

(Professor SHIRLEY PILLAI)

(St. Andrews College of Arts,

Commerce, Science and

Management)

ACKNOWLEDGEMENT

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It gives me immense pleasure in acknowledging the valuable & co-

operative assistance extended to me by the various individuals who have helped

me successfully in completing this project.

First of all I would like to show my gratitude to my guide and coordinator

Professor SHIRLEY PILLAI for their assistance, encouragement and support on

the topic “MERCHANT BANKING”.

I would also like to express my gratitude to the employees working in various

banks for helping me in my survey to complete my project.

I would like to thank my parents, friends & colleagues who have supported me

during the making of this research report. The information provided by them has

helped me gain practical understanding of the subject.

I would like to thank the Mumbai University for giving me the opportunity to carry

out the research.

It is the encouragement of all these people that has helped me proceed towards

achieving my goals.

INDEX

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SR.NO TOPIC PG.NO

1 EXECUTIVE SUMMARY 7

2 RESEARCH METHODOLOGY 8

3 INTRODUCTION 11

5 HISTORY AND MERCHANT BANKING IN INDIA 13

7 ORGANIZATIONAL SETUP OF MERCHANT BANKERS IN INDIA

17

8 REQUIREMENT FOR SETTING UP A MERCHANT BANK OUTFIT

19

9 MAIN OBJECTIVES OF MERCHANT BANKERS 24

10 SERVICES OF MERCHANT BANKERS 25

11 OBLIGATIONS AND RESPONSIBILITIES 37

12 CODE OF CONDUCT 38

14 PROBLEMS OF MERCHANT BANKING 39

15 CURRENT AFFAIRS 41

16 DIFFERENCE BETWEEN 45

17 CASE STUDIES 49

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17.1 STATE BANK OF INDIA 50

17.2 ICICI BANK LTD. 57

17.3 PUNJAB NATIONAL BANK 61

17.3 UNION BANK OF INDIA 63

17.4 KOTAK MAHINDRA 65

17.5 IDBI BANK 68

18 ANALYSIS AND INTERPRETATION 74

19 CONCLUSION 85

18 BIBLIOGRAPHY 86

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EXECUTIVE SUMMARY

Although merchant banking activity was ushered in two decades ago, it was only

in 1992 after the formation of Securities and Exchange Board of India that it is

defined and a set of rules and regulations governing it are in place. It is to be

emphasized that mere rules and regulations are not enough to evolve and nurture

sound traditions and practices in merchant banking and to build a vibrant capital

market. The quality of the projects that are proposed to be financed by capital

issues should be impeccable because it is the primary market that holds the key to

rapid capital formation, growth in industrial production and exports. The securities

sold to the public should represent genuine claims on future cash flows and viable

assets. Merchant bankers in India have a social responsibility to help build an

industrial structure, technologically second to none in the world and financially

viable.

Amidst the swift changes sweeping the financial world, Merchant Banking has

emerged as an indispensable financial advisory package. Merchant banking is a

service-oriented function that transfers capital from those who own to those who

can use it. They try to identify the needs of the investors and corporate sector and

advice entrepreneurs what to do to be successful. New players are entering in this

field day by day. Merchant Banking in India has a great demand over the globe. So

many companies in India are trying their hands in this field. Some companies have

built their strong image and some are still in process to leave their mark in the

international market.

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RESEARCH METHODOLOGY

OBJECTIVES :

To develop the ability to study the functioning of Merchant Banking in

India & learn & apply multidisciplinary concepts, tools & techniques to

solve vital problems.

To familiarize with the various services provided by Merchant Bankers.

To compare the public & private sector company engaged in providing

merchant banking services on various grounds.

To find out the growth potential of the Merchant Banking public &

private sector companies.

To understand the rights & duties of a merchant banker and his contributions to the overall banking system.

HYPOTHESIS

It would help us to develop the ability to study the functioning of Merchant

Banking in India & learn & apply multidisciplinary concepts, tools &

techniques to solve vital problems.

It familiarizes with the various services provided by Merchant Bankers.

They would help us to draw comparison between public & private sector

companies engaged in Merchant Banking activities.

Based upon the comparison, it would help us to determine which sector has

more growth potential & where should one invest his/her funds to maximize

the return at minimum risk.

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RESEARCH DESIGN

A research design is an arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance to the research

purpose with economy ion procedure.

A sample design is a definite plan for obtaining a sample from a given

population.

For carrying out my research work I would follow Exploratory cum

Descriptive research design.

Universe and Survey Population Sampling

All the items under consideration in any field of inquiry constitute a

“universe” or “population”.

Here in this study universe and survey population sampling would be all the

public & private sector companies of India engaged in Merchant Banking

operations.

Sample Size

Sample size would be 7-8 public & private sector merchant banking companies.

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METHODS OF DATA COLLECTION

Primary Data usually consists of the data that are collected afresh for the

first time and thus is original in character. Primary Data that used in the

study

Information gathered from various banks

Questionnaire

In my Questionnaire, there are 10 Questions

Secondary Data consists of data that is collected from some existing

literature. It has been already analyzed by someone else earlier and is

derived from that source. Secondary Data that used in the study are

Newspapers

Websites

Books

Analysis Pattern

Statistical Tools- graphs & charts

Cross Tabulation Of Data

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INTRODUCTION

Financial services are an important component of financial system. The smooth

functioning of financial system depends upon the range of financial services

extended by the providers. Financial services in India have witnessed remarkable

changes in the recent past after the implementation of “Liberalization,

privatization and globalization”.

Funds are tapped from the capital market to finance various mega industrial

projects. In attracting public savings, merchant bankers play a vital role as

specialized agencies. The resources raising functions remains to be the primary

business of a merchant banker. The primary market holds the key to rapid capital

formation, growth in industrial productions and exports. There has to be

accountability to the end use of funds raised from the market. The increase in the

number of issues and amount raised the number of merchant bankers. Therefore,

the field became highly competitive market where it requires a specialized skill in

handling the situation. The merchant bankers have a social responsibility to in

building an industrial structure in India.

Merchant bankers assist corporate in raising capital. They assist in issue of Shares,

syndicating loans, public issue of debentures. They do not provide funds. They

only assist. They also actively arrange working capital, appraisal, Projects

scrutinize & persuade merger proposals.

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The merchant banking has been defined as to what a merchant banker does. A

merchant Banker has been defined by Securities Exchange Board Of India

(Merchant Banker) rules, 1992, as “Any person who is engaged in the business of

issue management either by making arrangements regarding selling, buying or

subscribing to securities or acting as manager, consultant, advisor or rendering

corporate advisory services in relation to such issue management

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HISTORY OF MERCHANT BANKING

ORIGIN OF MERCHANT BANKING

The origin of merchant banking is to be traced to Italy in late medieval times

and France during the seventeenth and eighteenth centuries. The Italian

merchant bankers introduced into England not only the bill of exchange but

also all the institutions and techniques connected with an organized money

market. Merchant banking consisted initially of merchants who assisted in

financing the transactions of other merchants in addition to their own trade.

In France, during seventeenth and eighteenth centuries a merchant banker (le

merchand Banquer) was not merely a trader but an entrepreneur par

excellence. He invested his accumulated profits in all kinds of promising

activities. He added banking business to his merchant activities and became a merchant banker.

HISTORY

In late 17th and early 18th century Europe, the largest companies of the world was

merchant adventurers. Supported by wealthy groups of people and a network of

overseas trading posts, the collected large amounts of money to finance trade

across parts of the world. For example, The East India Trading Company secured a

Royal Warrant from England, providing the firm with official rights to lucrative

trading activities in India. This company was the forerunner in developing the

crown jewel of the English Empire. The English colony was started by what we

would today call merchant bankers, because of the firm's involvement in financing,

negotiating, and implementing trade transactions. The colonies of other European

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countries were started in the same manner. For example, the Dutch merchant

adventurers were active in what are now Indonesia; the French and Portuguese

acted similarly in their respective colonies. The American colonies also represent

the product of merchant banking, as evidenced by the activities of the famous

Hudson Bay Company. One does not typically look at these countries' economic

development as having been fueled by merchant bank adventurers. However, the

colonies and their progress stem from the business of merchant banks, according to

today's accepted sense of the word. Merchant banks, now so called, are in fact the

original "banks". These were invented in the middle Ages by Italian grain

merchants. As the Lombardy merchants and bankers grew in stature on the back of

the Lombard plains cereal crops many of the displaced Jews who had fled

persecution after 613 entered the trade. They brought with them to the grain trade

ancient practices that had grown to normalcy in the middle and Far East, along the

Silk Road, for the finance of long distance goods trades.

Christians were strictly forbidden the sin of usury. The Jewish newcomers, on the

other hand, could lend to farmers against crops in the field, a high-risk loan at what

would have been considered usurious rates by the Church, but did not bind the

Jews. In this way they could secure the grain sale rights against the eventual

harvest. They then began to advance against the delivery of grain shipped to distant

ports. In both cases they made their profit from the present discount against the

future price. This two-handed trade was time consuming and soon there arose a

class of merchants, who were trading grain debt instead of grain.

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MERCHANT BANKING IN INDIA

In India Merchant Banking activities started from the year 1967, following the

footsteps of similar activities in UK & USA. Currently Merchant Banking activity

has mushroomed in the Indian capital market with both public & private sector

settings up their respective merchant Banking divisions. Currently, the total no. of

merchant bankers in India are approx. 1450 with more than 930 registered with

SEBI. The SEBI authorized Merchant Bankers Include merchant Banking

divisions of All India Financial Institutions, nationalized & foreign banks,

subsidies of the commercial banks, private merchant banks engaged in stock

broking, underwriting activities & financial consultancy & investment advisory

service firms.

Grindlays Banks – 1967

Citi banks – 1970

SBI – 1973

ICICI - 1974

Merchant banking in India - an overview

Companies raise capital by issuing securities in the market. Merchant bankers act

as intermediaries between the issuers of capital and the ultimate investors who

purchase these securities.

Merchant banking is the financial intermediation that matches the entities that need capital and those that have capital. It is a function that facilitates the flow of capital in the market.

Merchant banker registered with SEBI:

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MERCHANT BANKING

Public Sector: - Commercial banks (24), Financial Institutions (6), State

Institutions (4)

Private sector: - International bankers (10), Banks (10), finance & investment (231)

ORGANIZATIONAL SETUP OF MERCHANT BANKERS

IN INDIA

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In India a common organizational setup of merchant bankers to operate is in the

form of divisions of Indian and foreign banks and financial institutions, subsidiary

companies established by bankers like SBI, Canara Bank, Punjab National Bank,

Bank of India, etc. Some firms are also organized by financial and technical

consultants and professionals. Securities and Exchange Board of India has divided

the merchant bankers into four categories based on their capital adequacy. Each

category is authorized to perform certain functions. From the point of

organizational setup India’s merchant banking organizations can be categorized

into four groups on the basis of their linkage with parent activity. They are:

(A) Institutional Base

Where merchant banks function as an independent wing or as subsidiary of various

private/Central Governments/State Governments financial institutions. Most of the

financial institutions in India are in public sector and therefore such setup plays a

role on the lines of government priorities and policies.

(B) Banker Base

These merchant bankers function as division/subsidiary of banking organization.

The parent banks are either nationalized commercial bank or the foreign banks

operating in India. These organizations have brought professionalism in merchant

banking sector and they help their parent organization to make a presence in capital

market.

(C) Broker Base

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In the recent past there has been an inflow of qualified and professionally skilled

brokers in various stock exchanges of India. These brokers undertake merchant

banking related operations also like providing investment and portfolio

management services.

(D) Private Base

These merchant banking firms are originated in private sector. These organizations

are the outcome of opportunities and scope in merchant banking business and they

are providing skill-oriented specialized services to their clients. Some foreign

merchant bankers are also entering either independently or through some

collaboration with their Indian counterparts. Private sector merchant banking firms

have come up either as the sole proprietorship or public limited companies. Many

of these firms were in existence for quite some times before they added a new

activity in the form of merchant banking services by opening new divisions on the

lines of commercial banks and All India Financial Institutions.

REQUIREMENTS FOR SETTING UP A MERCHANT

BANK OUTFIT

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1. Formation of the Business Organization

SEBI act, 1992 does not prescribe any specific form of business organization to

carry on the activities as merchant banker. However, the types of organizations are

listed below:

a. Sole proprietorship

b. Partnership firm

c. Hindu Undivided Family (HUF)

d. Corporate Enterprises

e. Co-operative Society

Generally it is preferred that the Merchant Banking outfit be a registered company.

Merchant Banks are generally setup as subsidiary companies of banks (Public or

Private). For example, SBI caps, ICICI Securities etc.

2. Adoption of a viable business plan

All the basic tests required to find out whether the business to be undertaken is

viable or not are also applicable to a Merchant Banking setup. Capital adequacy,

profitability, growth opportunities and current market size are some of the factors

which need to be looked into.

3. Registration of Merchant Bankers

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a. Application for grant of certificate

An application for grant of a certificate needs to be made to SEBI .

The application can be made for any one of the following categories of the

merchant banker namely:-

Category I, that is –

(i) To carry on any activity of the issue management, which will inter-alia consist

of preparation of prospectus and other information relating to the issue,

determining financial structure, tie-up of financiers and final allotment and refund

of the subscription; and

(ii) To act as adviser, consultant, manager, underwriter, portfolio manager.

Category II, that is, to act as adviser, consultant, co- manager, underwriter,

portfolio manager;

Category III, that is to act as underwriter, adviser, consultant to an issue;

Category IV, that is to act only as adviser or consultant to an issue.

To carry on the activity as underwriter or portfolio manager a separate certificate

of registration needs to be obtained from SEBI.

b. Application to conform to the requirements

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The application should conform to all the requirements under the SEBI guidelines,

otherwise it may be rejected.

c. Furnishing of information, clarification and personal representation

The Board may require the applicant to furnish further information or clarification

regarding matters relevant to the activity of a merchant banker for the purpose of

disposal of the application. The applicant or its principal officer may appear before

the Board for personal representation.

d. Consideration of application

The Board shall take into account for considering the grant of a certificate, all

matters, which are relevant to the activities relating to merchant banker and in

particular the applicant complies with the following requirements, namely: -

the applicant shall be a body corporate other than a non- banking financial

company

the merchant banker who has been granted registration by the Reserve Bank

of India to act as a Primary or Satellite dealer may carry on such activity subject to

the condition that it shall not accept or hold public deposit

the applicant has the necessary infrastructure like adequate office space,

equipments, and manpower to effectively discharge his activities

the applicant has in his employment minimum of two persons who have the

experience to conduct the business of the merchant banker

a person directly or indirectly connected with the applicant has not been

granted registration by the Board;

the applicant fulfils the capital adequacy requirement is as follows:

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The capital adequacy requirement should not be less than the net worth of the

person making the application for grant of registration. The net worth shall be as

follows:-

Category Minimum Amount

Category I Rs. 5, 00, 00, 000

Category II Rs. 50, 00, 000

Category III Rs. 20, 00, 000

Category IV Nil

The applicant, his partner, director or principal officer is not involved in any

litigation connected with the securities market which has an adverse bearing on the

business of the applicant and have not at any time been convicted for any offence

involving moral turpitude or has been found guilty of any economic offence

The applicant has the professional qualification from an institution

recognized by the Government in finance, law or business management

Grant of certificate to the applicant is in the interest of investors.

e. Procedure for Registration

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The Board on being satisfied that the applicant is eligible shall grant a certificate.

On the grant of a certificate the applicant shall be liable to pay the fees as

prescribed.

f. Payment of fees and the consequences of failure to pay fees

Every applicant eligible for grant of a certificate shall pay such fees in such

manner and within the period specified.

Where a merchant banker fails to pay the Annual fees as provided in Schedule II,

the Board may suspend the registration certificate, whereupon the merchant banker

shall cease to carry on any activity as a merchant banker for the period during

which the suspension subsists.

The Merchant Bank can commence business on acquisition of a Certificate of

Registration from the SEBI after completion of the above mentioned formalities.

MAIN OBJECTIVES OF MERCHANT BANKERS

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Merchant bankers render their specialized assistance in achieving the main

objectives which are presented below:

I. To carry on the business of merchant banking, assist in the capital formation,

manage advice, underwrite, provide standby assistance, securities and all

kinds of investments issued, to be issued or guaranteed by any company,

corporation, society, firm, trust person, government, municipality, civil

body, public authority established in India.

II. The main object of merchant banker is to create secondary market for bills

and discount or re-discount bills and acts as an acceptance house.

III. Merchant banker’s another objective is to set up and provide services for the

venture capital technology funds.

IV. They also provide services to the finance housing schemes for the

construction of houses and buying of land.

V. They render the services like foreign exchange dealer, money exchange, and

authorized dealer and to buy and sell foreign exchange in all lawful ways in

compliance with the relevant laws of India.

VI. They will invest in buying and selling of transfers, hypothecate and deal

with dispose of shares, stocks, debentures, securities and properties of any

other company.

SERVICES OF MERCHANT BANKERS:-

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Business planning stage: 1) Project feasibility study

2) Advice on capital structuring

Equity raising: 3) Preparation of prospectus and

liaison with SEBI

4) Pricing decisions

5) Marketing in the capacity of lead

managers

6) Underwriters to the issue

7) Post issue management

8) Assistance in ADR/GDR

Debt raising: 9) Management of debenture issue

10) Preparation of bankable

proposal and syndication of loan

Working capital raising: 11) Assistance in arranging optimal

capital finance

Strategic advice: 12) Advice on mergers and

acquisitions

13) Corporate structuring advice

SERVICES PROVIDED BY MERCHANT BANKS: (in detail)

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The development activity through the country had exerted excess demand on the

sources of funds by the ever expanding industry and trade which could not be met

by the All India Financial Institutions. In these circumstances, the corporate sector

enterprises had the only alternative to avail themselves of the capital market

services for meeting the long-term fund requirements through capital issues of

equity and debentures. The growing demand for funds from capital market has

enthused many organizations to enter into the field of merchant banking for

managing the public issues.

The need of merchant banker is also felt in the wake of huge untapped public

savings as merchant bankers can play a highly significant role in mobilizing funds

from savers to invest in channels assuring promising return on investments and

thus narrow down the gap between demand for and supply of investible funds.

Merchant bankers not only provide advisory services to corporate enterprises

but also advise the investors of the incentives available in the form of tax relief

and other statutory obligations. Thus, the merchant bankers help industry

and trade to raise funds, and the investors to invest their saved money in

sound and healthy concerns with confidence, safety and expectation of higher

yields.

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Broadly a merchant banker can provide the following services:

1. Corporate Counseling

2. Project Counseling And Pre-Investment Studies

3. Credit Syndication And Project Finance

4. Issue Management

5. Underwriting

6. Bankers

7. Portfolio Management

8. Venture Capital Financing

9. Leasing

10. Non-Resident Investment Counseling And Management

11. Acceptance Credit And Bill Discounting

12. Advising On Mergers, Amalgamations And Take-Over

13. Arranging Offshore Finance

14. Fixed Deposit Broking

15. Relief To Sick Industries

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Let’s take a brief look at each of these functions:

Corporate Counseling

It includes a whole range of financial services provided by a merchant banker to a

corporate unit a view to ensure better performance, maintain steady growth and

create a better image among investors.

It covers the entire field of merchant banking activities i.e., project counseling,

capital restructuring, portfolio management and the full range of financial

engineering including venture capital, public issue management, loan syndication,

working capital, fixed deposits, lease financing, acceptance credit, etc. However,

the scope of corporate counseling is limited to suggestions and opinions leaving to

the client to take corrective actions for solving its corporate problems.

A merchant banker finds out the problems of enterprise, which shall include

organizational goals for the enterprise, size of the organization and operational

scales, choice of a product, pricing, etc, and suggests ways and means to solve

those problems.

Project   Counseling

Project counseling is an important merchant banking service which includes

preparation of project reports, deciding upon the financing pattern to finance the

cost of the project, appraising the project report with the financial

institutions/banks.

Project reports are prepared to obtain government approval of the project, for

procuring financial assistance from financial institutions and banks, for ensuring

market for the proposed product, for planning public issues, etc.

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Financing the project cost is an important aspect of project counseling. The two

sources of funds available to finance the project cost are internal sources of funds

(or owners' funds) which includes promoter's contribution and retained earnings;

and external sources of funds which refers to the borrowed funds in the form of

loans from banks, private investors and financial institutions and in the form of

debentures from the public.

Merchant banker has to decide the financing mix of the internal and external

sources of funds keeping in view the rules, regulations and norms prescribed by the

government or followed by the term lending financial institutions.

While rendering project counseling services, the merchant banker has to ensure

that the application forms for obtaining the funds from financial institutions are

filled in with relevant and appropriate information and before submitting the

application, the merchant banker has to appraise the project considering the various

aspects as to the type of the project, location, technical, commercial and financial

viability of the project.

Credit Syndication

Once the client company has decided about the project proposed to be undertaken,

the next step is looking for the sources wherefrom the funds could be procured to

implement the project.

Merchant banker has to locate the sources of funds and comply the formalities

required to procure the funds. This service rendered by the merchant banker in

arranging and procuring credit from financial institutions, banks and other lending

and investment organizations for financing the clients' project cost or meeting

working capital requirement is referred to as loan syndication or credit syndication.

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Credit syndication in case of domestic borrowings is with the institutional lenders

and banks. Long and medium term funds are obtained from the All India Financial

Institutions like IFCI, IDBI etc., state level financial bodies like SFC, SIDC etc.,

commercial banks, mutual funds etc. Short-term funds are also required by the firm

for purchase of raw materials, payment of wages, salaries etc. Sources of financing

these short term requirements or working capital needs can be from internal

sources like internal accruals from working or operations and short term loans

from friends and relatives; or from external sources like short term borrowings

from banks etc.

Issue Management and Underwriting

Management of capital issues is a professional service rendered by the skilled and

experienced merchant bankers. Previously, the managing agents for a particular

corporate used to manage public issues. The abolition of the managing agency

system, the growth in the public limited companies in number and size, the

imposition of new rules and regulations regarding the public issue of securities

made it necessary for merchant bankers to play a definite role in the management

of public issues.

Public issue management involves marketing of corporate securities by offering

the securities to the public, procuring private subscription to the securities and

offering securities to existing shareholders of the company.

As a manager to the public issue, the merchant banker, before the public issue has

to obtain the consent of the stock exchanges to the memorandum and articles of

association, appoint other managers, bankers, underwriters, brokers etc. ,advice the

company to appoint auditors, solicitors and board of directors, draft the prospectus

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and obtain consent from the companies legal advisors, board of directors and other

concerned parties, file the prospectus with registrar, make an application for

enlistment with stock exchanges and finally advertise for the issue.

A merchant bankers post issue activities include final allotment and/or refund of

subscription amount, calculation of underwriters liability in case of under

subscription and complying the necessary statutory requirements for listing of

securities on the stock exchange.

Under writing of public issue

A fully underwritten public issue spells confidence to the investing public, which

ensures a good response to the issue. Keeping this in view companies, which float

a public issue usually, desire a full underwriting of the issue.

Underwriting is only the guarantee given by the underwriter that in the event of

under subscription, the amount underwritten would be subscribed in proportion by

the underwriter. An underwriter of the issue gets the following benefits:

It earns a commission of the commitment given.

It earns the right to be appointed as bankers of that issue.

It expands its clientele by underwriting more and more issues.

Bankers to the Issue

The merchant banker can automatically become the banker to the issue in the

following cases:

The bank is a broker to the company

It has given underwriting commitments.

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It acts as a manger to the issue

The function of a banker to the issue is to accept application forms from the

public together with subscription money and transfer them to the account of the

controlling branch.

Portfolio Management

Portfolio refers to investment in different types of marketable securities or

investment papers like shared, debentures and debenture stocks, bonds etc. from

different companies or institutions held by individuals firm or corporate units.

Portfolio management refers to managing efficiently the investment in the

securities held by professionals to others.

Merchant bankers take up management of a portfolio of securities on behalf of

their clients, providing special services with a view to ensure maximum return by

such investments with a minimum risk of loss of return on the money invested in

securities.

A merchant banker while performing the services of portfolio management has to

enquire of the investment needs of the client, the tax bracket, ability to bare risk,

liquidity requirements, etc. they should study the economic environment affecting

the capital market, study the securities market and identify blue chip companies in

which money can be invested. They should keep record of latest amendment in

government guidelines, stock exchange regulations, RBI regulations, etc.

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Advisory Services Relating To Mergers and Takeovers

A merger is defined as a combination of two or more companies into a single

company where one services and other looses their corporate existence. A merger

is also defied as an amalgamation wherein the shareholders of the combining

companies become substantially the shareholders of the company formed.

A takeover is referred to as an acquisition, which is the purchase, by one company

of a controlling interest in the share capital of another existing company.

Merchant bankers are the middlemen settling negotiations between the offered and

the offeror. Their role is specific and specialized in handling the mergers and take

over assignments. Being a professional expert, the merchant banker is apt to

safeguard the interest of the shareholders in both the companies and as such his

assistance is useful for both the companies, i.e. the acquirer as well as the acquired

company.

Based on the purpose of business objective, the search of the acquirer company

will start for a merger partner company. If the objective of merger is growth

oriented i.e. seeking expansion in production and market segments, utilization of

existing companies or optimum utilization of resources, then the acquirer company

will select a business related company as a merger partner.

If the objective is diversification in production line or business activities, then it

will select a non-related company as a merger partner.

Once the merger partner is proposed the merchant banker has to appraise the

merger/takeover proposal with respect to financial viability and technical

feasibility. He has to negotiate with the parties and decide the purchase

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consideration and mode of payment. He has to comply with the legal formalities

like getting approval from the Government/ RBI; drafting the scheme of

amalgamation; getting approval of company Board, financial institution, high court

if required; arranging for the meeting etc.

Venture Capital Financing

Financing an emerging high-risk project is called venture capital financing. Many

merchant bankers are entering into this area by also financing viable upcoming

projects. The financing is by subscription to the equity capital, while repayment is

by selling the equity through stock market when the shares are listed.

Leasing

Is there another lucrative area of financing where merchant bankers are turning?

Leasing is a viable source of financing while acquiring capital assets. The services

include arrangement for lease finance facilities for leasing companies, legal;

documents and tax consultancy.

Non Resident Investment

To attract NRI investments in the primary and secondary markets, the merchant

bankers provide investment advisory services to the NRIs in terms of identification

of investment opportunities, selection of securities, portfolio management, etc. they

also take care of operational details like purchase and sale of securities securing the

necessary clearance from RBI under FERA for repatriation of dividends and

interest, etc.

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Acceptance Credit and Bill Discounting

Though merchant bankers world over specialize in acceptance credit and bill

discounting, these services are not currently provided by merchant bankers in India

the principal reasoning being the lack of an active market for commercial bills.

Arranging Offshore Finance

The merchant bankers also help their clients in the following areas involving

foreign currency financing:

1. Financing Of Exports And Imports

2. Long Term Foreign Currency Loans

3. Joint Ventures Abroad

4. Foreign Collaboration Arrangements

The assistance rendered as in the case of financial services covers appraisals,

negotiations, compliance with procedural and legal aspects etc.

Management of Fixed Deposits of Companies

Recently, merchant’s bankers have begun to structure and mobilize fixed deposits

for their corporate clients. They take care of the procedural and legal aspects, and

also mange the collection and subsequent servicing of the deposits. Advice with

regard to the amount to be raised, interest charges, terms of deposits and other

related issues are also offered to the client.

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Relief to Sick Industries

The services offered by merchant bankers to sick industries can be

summarized as follows:

1. Assessment of capital requirements and counseling on capital restructuring;

2. Appraisal of technological, environmental, financial and other factors

causing sickness;

3. Preparations of programs and packages for rehabilitation of sick units;

4. Providing necessary assistance where the rehabilitation package involves

mergers or amalgamation;

5. Obtaining necessary approval for implementation the rehabilitation package

from the statutory authorities;

Monitoring the implementation of the scheme of rehabilitation

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OBLIGATIONS AND RESPONSIBILITIES

Merchant bankers have the following obligations and responsibilities.

1. Merchant banker should maintain proper books of accounts, records and

submit half yearly/annual financial statements to the SEBI within stipulated period

of time.

2. No merchant banker should associate with another merchant banker who is

not registered in SEBI.

3. Merchant bankers should not enter into any transactions on the basis of

unpublished information available to them in the course of their professional

assignment.

4. Every merchant banker must submit himself to the inspection by SEBI when

required for and submit all the records.

5. Every merchant banker must disclose information to the SEBI when it

requires any information from them.

6. All merchant bankers must abide by the code of conduct prescribed for

them.

7. Every merchant banker who acts as lead manager must enter into an

agreement with the issuer setting out mutual rights, liabilities, obligations, relating

to such issues with particular reference to disclosures allotment, refund etc.

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CODE OF CONDUCT

According to the 13 Regulation of the SEBI of 1992 (Merchant bankers),

every merchant banker should comply with following codes of conduct. They

are:

a) The merchant banker must observe high integrity and fairness in all his

dealings.

b) He shall render at all times high standard of services, exercise due diligence,

exercise independent professional judgment.

c) If necessary, he must disclose to his clients the possible source of conflict of

duties and interests.

d) The merchant banker should not indulge in unfair practice or unfair

competition with other merchant bankers.

e) He should not make any exaggerated statement about his capacity or

achievement.

f) He should always Endeavour to give the best possible advise and prompt

efficient and cost effective service.

g) He should maintain the secrecy of all the confidential information received

during the course of service to his client.

h) He should not engage in the creation of a false market or price rigging or

manipulation.

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PROBLEMS OF MERCHANT BANKING

Restriction of merchant banking activities:

SEBI guidelines have authorized merchant bankers to

undertake issue related activities and made them restrict their

activities or think of separating these activities from present

one and float new subsidiary and enlarge the scope of its

activities.

Minimum net worth of Rs.1 crore:

SEBI guidelines stipulate that a minimum net worth of Rs.1 crore for authorization of merchant bankers.

Non co-operation of issuing companies:

Non co-operation of the issuing companies in timely allotment of securities and refund of application money is another problem faced by merchant bankers.

Merchant Banker’s Commission:

Maximum :- 0.5% Project appraisal fees Lead Manager :- - 0.5% up to Rs.25 crores

- 0.2% more in excess of Rs.25 crores

Underwriting fees

Brokerage commission :- 1.5%

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Other expenses :-- Advertising

- Printing

- Registrar’s expenses

- Stamp duty

In spite of problems popping up, merchant banking in India has vast scope to develop because of lot of domestic as well as foreign businesses booming here. Indian economy provides an amicable environment for these firms to set up, flourish and expand here.

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CURRENT AFFAIRS

RBI allows cash withdrawal from merchant banker terminals

Besides ATMs, customers can now also withdraw cash up to Rs1000 from

terminals at different merchant establishments, the Reserve Bank. As a further step

towards enhancing the customer convenience in using the plastic money, it has

been decided to permit cash withdrawals at POS (point of sale) terminals. To start

with, this facility will be available for all debit cards issued in India, up to Rs1000

per day," RBI said in a statement issued here.

The use of debit cards at POS terminals at different merchant establishments has

been steadily increasing, it said. This facility is available only against debit cards

issued in India.

At present cash withdrawal facility using plastic cards is available only at

Automatic Teller Machines (ATMs) with the number of ATMs in the country at

44,857. There are 4,70, 237 POS terminals in the country.

This facility may be made available at any merchant establishment designated by

the bank and would be available whether the card holder makes a purchase or not.

Morgan Stanley makes i-banking comeback

The joint venture between JM Financial and Morgan Stanley was inked in 1997

and formalized in 1999. The JV had investment banking operations other than

equity broking, research, wealth management and advisory and securities

distribution operations. Post the split, JM Financial acquired the investment

banking company together with its subsidiaries, which were engaged in fixed

income, equity broking, wealth management, advisory and distribution businesses

of $ 20 million. The Indian partner sold its 49% holding in JM Morgan Stanley

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Securities (JMSPL), the institutional equity broking company to Morgan Stanley

for $ 445 million.

Bulge bracket investment banking major, Morgan Stanley has re-entered

investment banking business on its own, after parting ways with JM Financial —

its former Indian partner.

PNB aims profit of 7,500crore by 2013

The country's second largest public sector lender Punjab National Bank aims to

double its profit to Rs7,500 crore in the next four years.

"The bank has set a target to expand total business to Rs10crore and earn net profit

of Rs7,500 crore by 2013," said PNB Chairman and Managing Director K C

Chakrabarty, who is charge of Deputy Governor of RBI.

The growth driver would be better asset liability management, thrust on recovery,

focus on customers and financial inclusion, he had said. Besides, the bank plans to

open new line of businesses in the current fiscal including merchant banking

subsidiary.

PNB Investment Services aims to provide investment consultancy and merchant

banking services and would be operational in the next three months. Currently,

these operations are run by a division of the bank.

ICICI Bank to oversee mergers and acquisitions

ICICI bank and its merchant banking arm, ICICI Securities (I-Sec), have entered

into an agreement, whereby all M&A deals will be done out of ICICI Bank. The

agreement goes on to define an M&A deal as one which involves change in

management control.

This arrangement replaces the earlier practice of both I-Sec and ICICI Bank

working together on M&A deals. “Since a predominant number of people, who

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wish to be advised on M&A, also look for acquisition finance, it was decided that

the business should be housed in the bank,” I-Sec MD Madhabi Puri Buch told ET.

“Now, if a corporate is seeking a sell mandate or a buy mandate, where the transfer

of controlling interest takes place, the deal will be done by ICICI Bank.”

ICICI Bank had initially entered the investment banking space in 2006. Over the

past couple of years, both the bank and its subsidiary have been vying for deals.

The new deal has taken into effect between both the entities from April 1.

Birla Capital and Financial Services gets SEBI merchant banking

license

Birla Capital & Financial Services Ltd has been granted a merchant-banking

license by the Securities and Exchange Board of India. The license will enable the

company to offer a wide range of on-shore investment banking advisory and

underwriting services in the Indian market.

The company, which is a part of the Yash Birla conglomerate, will initially

concentrate on regulated services like initial public offerings, takeover, buybacks,

delisting and valuations. It also offers non-regulated services like PE Syndication,

M&A Advisory and other corporate advisory.

Birla Capital & Financial Services Ltd. is part of the 3,000-crore Yash Birla Group

that has diversified interest in sectors like auto & engineering, textiles & chemicals

and power & electrical, education & IT.

Primary market slowdown, affects merchant bankers’ wallet

The recent slowdown in the primary market has impacted not only investors but

merchant bankers as well, as there has been a significant decline of nearly 60 per

cent in their percentage fees so far this year.

"There is a clear drop in the merchant banking fees to Rs 216crore in comparison

to Rs. 771crore for the calendar year 2007, indicating a drop of 57.9 per cent on

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annualized basis," Nexgen Capitals, the merchant-banking arm of brokerage firm

SMC Global Securities.

Merchant bankers are those who advise the issuer about the public offer and

manage the issue.

The average percentage fees has declined to 1.21 per cent so far this year from 2.24

per cent in 2007, the report added.

Reliance Power IPO of Rs 11,563 crore during this year with the merchant banking

fee of Rs 50.6 crore, amounting to 0.44 per cent of the issue size had a great

bearing on this trend.

Nomura launches its investing banking operations in India

Nomura Financial Advisory and Securities (India) Private limited ('Nomura India'),

a wholly-owned subsidiary of Nomura Holdings, Inc. ('Nomura'), has launched its

equity sales and trading and investment banking operations in India.

In October 2008, Nomura, a global investment bank, acquired the majority of

Lehman Brothers' employees in India, including the equities sales and trading,

equity research, fixed income liquid markets sales and trading, and investment

banking teams.

By integrating the former Lehman Brothers India franchise and obtaining its

merchant banking licence and stock exchange memberships, Nomura India said in

a statement it has significantly expanded its capabilities in India through a wide

range of onshore financial solutions spanning securities brokerage , securities

underwriting and advisory services.

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THE DIFFERENCE BETWEEN

Investment banks and Merchant banks

Merchant banks and investment banks, in their purest forms, are different

kinds of financial institutions that perform different services. In practice, the

fine lines that separate the functions of merchant banks and investment banks tend

to blur. Traditional merchant banks often expand into the field of securities

underwriting, while many investment banks participate in trade financing

activities.

In theory, investment banks and merchant banks perform different functions.

Pure investment banks raise funds for businesses and some governments by

registering and issuing debt or equity and selling it on a market. Traditionally,

investment banks only participated in underwriting and selling securities in large

blocks. Investment banks facilitate mergers and acquisitions through share sales

and provide research and financial consulting to companies.

Traditionally, investment banks did not deal with the general public.

Traditional merchant banks primarily perform international financing

activities such as foreign corporate investing, foreign real estate investment,

trade finance and international transaction facilitation.

Some of the activities that a pure merchant bank is involved in may include issuing

letters of credit, transferring funds internationally, trade consulting and co-

investment in projects involving trade of one form or another.

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The current offering of investment banks and merchant banks varies by the

institution offering the services, but there are a few characteristics that

most companies that offer both investment and merchant banking share.

As a general rule, investment banks focus on initial public offerings (IPO’s) and

large public and private share offerings. Merchant banks tend to operate on small-

scale companies and offer creative equity financing, bridge financing,   mezzanine

financing and a number of corporate credit products. While investment banks tend

to focus on larger companies, merchant banks offer their services to companies that

are too big for venture capital firms to serve properly, but are still too small to

make a compelling public share offering on a large exchange. In order to bridge the

gap between venture capital and a public offering, larger merchant banks tend to

privately place equity with other financial institutions, often taking on large

portions of ownership in companies that are believed to have strong growth

potential.

Merchant banks still offer trade financing products to their clients. Investment

banks rarely offer trade financing because most investment banking clients have

already outgrown the need for trade financing and the various credit products

linked to it.

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Merchant banks and Commercial banks

Merchant banks Commercial banks

1) Assist in raising capital in the form of

equity, preference shares, and syndicated

loan working capital instruments.

Provide funds in the form of

term loan and working capital.

2) Advisor not financer. Financing is the main business.

3) Do not accept chequable deposits. Demand deposits are the key

feature.

4) Mainly fees based business. Mainly fund based business

5) Being advisors, they are closer to the

customers and get to know risks of the

transaction s properly. They work on

risks shields i.e. mitigation measures

Being lenders, they are more

cautions, assess risks in lending

proposal and cannot afford to be

grossly relationship based and

close to the customer.

6) Most of work they get is about

management of equity issues in the

Commercial banks majority

business is of terms lending and

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capacity of lead manager, underwriter,

piercing of issue, book running, and

liaisoning with SEBI.

bank deposits.

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CASE STUDIES

BRIEF ANALYSIS OF SOME MERCHANT BANKS OF INDIA

SBI Bank of India

ICICI Bank Ltd.

Punjab National Bank

Union Bank of India

Kotak Mahindra

IDBI BANK

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SBI Merchant Banking Group is strongly positioned to offer perfect financial

solutions to your business. We specialize in the arrangement of various forms of

Foreign Currency Credits for Corporate.

State Bank of India is the nation's largest bank. Tracing its roots back some 200

years to the British East India Company (and initially established as the Bank of

Calcutta in 1806), the bank operates more than 13,500 branches and over 5,000

ATMs within India, where it also owns majority stakes in seven associate banks.

State Bank of India has more than 50 offices in nearly 35 other countries, including

multiple locations in the US (California), Canada, and Nigeria. The bank has other

units devoted to capital markets, fund management, factoring and commercial

services, and brokerage services. The Reserve Bank of India owns about 60% of

State Bank of India.

SBI being an Indian entity has no India exposure ceiling. Our Primary focus is On

Indian Clients. SBI’s seasoned Team of professionals provides you with Insightful

credit Information and helps you Maximize the Value from the transaction.

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OUR PRODUCTS AND SERVICES

Arranging External Commercial Borrowings (ECB)

Arranging and participating in international loan syndication

Loans backed by Export Credit Agencies

Foreign currency loans under the FCNR (B) scheme

Import Finance for Indian corporate

SBI CAPITAL MARKETS LIMITED (SBICAPS) is India's leading investment bank and project advisor, assisting domestic company’s fund-mobilization efforts for last many years.

We began operations in August 1986 as a wholly owned subsidiary of the State Bank of India, which is the largest commercial bank in India. In January 1997, fresh equity shares were issued to Asian Development Bank (ADB) and ADB now holds 13.84% stake in the equity of SBICAPS. The distinguished parentage (with a 86.16% stake) together with the long standing association of an internationally renowned financial institution like the Asian Development Bank further enhances our image as a truly 'World Class Investment Bank'.

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Our Mission - To provide Credible, Professional and Customer Focused world-class investment banking services.

Our Vision - To be the best India based Investment Bank.

SBI Group:

The largest commercial bank group in India Position in the domestic banking sector as on 31 March 2008: 15.44% of the aggregate deposits. 15.28 % of total advances. The only Indian Bank to find a place in the Fortune Global 500 List. First Indian Bank to take up merchant banking in 1986.

SBI Capital Markets Limited:

No. 1 in Asia – Pacific for Project Advisory. Rating by Thomson Project Finance International.

No. 1 in IPO’s, managed 700+ issues (since 1989 – source Prime Database). The only Indian Merchant Banker in the Global 10, Thomson Project

Finance International 2007. Pioneer in Privatization.

Subsidiary:-

SBICAPS Ventures Ltd. SBICAP Securities Ltd. SBICAPS (UK) Ltd. SBICAP Trustee Company Ltd.

Associates Bank:-

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State Bank of Bikaner & Jaipur

State Bank of Saurashtra

SBI Factors & Comm. Services Ltd.

SBI (California)

Commercial Bank of India LLC

State Bank of Hyderabad

State Bank of Travancore

SBI Funds Management (P) Ltd.

SBI International (Mauritius) Ltd.

State Bank of Indore

SBI Capital Markets Ltd.

SBI DFHI Ltd.

Indo-Nigerian Merchant Bank

State Bank of Mysore

SBICI Bank Ltd.

SBI Life Insurance Co. Ltd

Nepal SBI Bank Limited

Key Personnel:-

Board of Directors Committee of Directors

Audit Committee

Management Team

Shri O. P. Bhatt (Chairman)

Shri R. Sridharan (Chairman)

Shri D. Sundaram

(Chairman)

Shri S. Vishvanathan (MD & CEO )

Dr. R. H. Patil Dr. R. H. Patil Shri R. Sridharan

Shri M. K. Nag (Executive Vice

President)

Shri R. Sridharan Shri S. Vishvanathan (MD & CEO)

Dr R. H. Patil

Shri Bansi S. MehtaSmt. Bharati RaoShri D. SundaramShri Ajay Sagar

Dr. Swati A.

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PiramalShri S.

Vishvanathan (MD & CEO)

Promoters’ Share: - Performance:-

Awards:-

Asia Pacific Bank of the Year Award 2009 for Leadership in Project Finance by Thomson Reuters (PFI)

India Loan House 2009 for Leadership in Loan Syndication by Thomson Reuters (IFR Asia)

Asia Pacific Oil and Gas Deal of the Year 2009 for Cairn India by Thomson Reuters (PFI)

African Power Deal of the Year 2009 for Morupule B by Thomson Reuters (PFI)

Indian Power Deal of the Year 2009 for Sasan by Euromoney

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Indian Upstream Oil & Gas Deal of the Year 2009 for Cairn India by Euromoney

Indian Road Deal of the year 2009 for Yamuna expressway by Euromoney Indian Telecom Deal of the Year 2009 for Aircel by Euromoney SAFA Best Presented Accounts Award 2008 Award for Excellence in Financial Reporting

SERVICES:-

Project Advisory & Structured Finance

SBICAP has built a formidable presence in the area of Project Finance Advisory and Funds Syndication with several prestigious mandates in almost every sector of the industry to its credit.

Our product portfolio includes:

Project Appraisal Structured Finance and Syndication Infrastructure Project Advisory Securitization Debt & Equity Syndication

Capital Markets

Capital Markets Group handles transactions in the capital markets space across multiple instrument structures.

Our product and solutions bouquet includes:

Managing Initial Public Offerings and Follow-on Public offerings and Offers-for-Sale

Managing Rights Offering, be it the traditional or the structured formats

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Qualified Institutional Placements Open offers, Buyback and Delisting of securities Offerings of convertible securities Public offering of Corporate structured bonds Arranging Private Equity to include growth capital, pre-IPO convertibles,

private investments in public equity (PIPES), mezzanine debt and equity, and equity offerings completed as a private placement.

Private placement of bonds Capital restructuring advisory services Advisory and arrangement services for products such as AIM Listing, Indian

Depository Receipts, ADR/GDR and other off-shore equity or bond listing options

M&A and Advisory

The M & A product portfolio includes:

Mergers & Acquisitions Private Equity Foreign Currency Convertible Bonds (FCCB) Corporate Advisory

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Employees:41,871

Employee growth: 37.2%

You see, ICICI Bank is India's #2 bank (after State Bank of India), with more than

600 branches and 2,200 ATMs nationwide. ICICI's retail banking group offers

lending and deposit services to small businesses and individuals. Larger businesses

are served by the corporate banking group, which offers finance services and

treasury products. ICICI's rural and government banking unit offers micro-loans

and agricultural banking. Foreign operations, as well as services related to

international trade finance and expatriate Indians, fall under the international

banking group. Other ICICI offerings include online banking, asset management,

and insurance.

Key numbers for fiscal year ending March, 2008:

Sale: $5,796.3M

One year growth: 99.1%

Net income: $524.1M

Income growth: 167.4%

ICICI Advice on Wide Varity of Product:

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Private Equity Financing

Secondary sale transactions

pre IPO deals

ICICI Securities Ltd is the largest equity house in the country providing end-to-end solutions (including web-based services) through the largest non-banking distribution channel so as to fulfil all the diverse needs of retail and corporate customers. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations - Corporate Finance including Equity Capital Markets Advisory Services, Institutional Equities, Retail and Financial Product Distribution.

ICICI Securities Inc., the step-down wholly owned US subsidiary of the company is a member of the National Association of Securities Dealers, Inc. (NASD). As a result of this membership, ICICI Securities Inc. can engage in permitted activities in the U.S. securities markets. These activities include Dealing in Securities and Corporate Advisory Services in the United States and providing research and investment advice to US investors.

is a SEBI Registered CAT-1 Merchant banker. ICICI Securities Inc. is also registered with the Financial Services Authority, UK (FSA) and the Monetary Authority of Singapore (MAS).

Board of Directors:-

ICICI Securities Limited. ICICI Securities Holding Inc.

ICICI Securities, Inc.

Ms. Chanda Kochhar, (Chairperson)

Ms. Anup Bagchi,(Chairman)

Mr. Anup Bagchi,(Chairman)

Mr. Ketan Patel Mr. A Murugappan Mr. A Murugappan

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Mr. Narendra Murkumbi Mr. Charanjit Attra Mr. Charanjit Attra

Mr. Uday Chitale Mr. Subir Saha Mr. Subir Saha

Mr. Pravir Vohra Mr. Gopakumar P., (President)

Mr. Sonjoy Chatterjee

Ms. Madhabi Puri-Buch, (Managing Director &

CEO)

Mr. A. Murugappan, (Executive Director)

Mr. Anup Bagchi, (Executive Director)

Awards & Recognition

Institutional

ICICI Securities is awarded as the Best Investment Bank 2008 by Global Finance Magazine

The Corporate Finance group also was awarded a runner-up Best Merchant Banker by Outlook Money in 2007.

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MERCHANT BANKING

ICICI Securities (I-Sec) topped the Prime Database League Tables 2007 for money raised through IPOs/FPOs.

The equities team was adjudged the 'Best Indian Brokerage House-2003' by Asiamoney.

Retail

ICICIdirect wins the prestigious Outlook Money - India's Best e-Brokerage House for 2009.

ICICIdirect, the neighborhood financial superstore won the prestigious Franchise India `Service Retailer of the Year 2008 award.

ICICIdirect wins the prestigious Outlook Money - India's Best e-Brokerage House for 2008.

ICICIdirect been winning the prestigious Outlook Money - India's Best e-Brokerage House for 2003-2004, 2004-2005, 2006-2007 and 2007-2008.

ICICIdirect has also won the CNBC AWAAZ Consumer Award for the Most Preferred Brand of Financial Advisory Services.

Best Broker - Web 18 Genius of the Web Awards 2007 Franchisor of the year award 2009 Retail concept of the year awards 2009

Technology

IDG India's CIO magazine has recognized ICICI Securities as a recipient of 2009 CIO 100 award

Indian Bank's Association Business Technology Awards for Best Online Trading Platform in 2006 and 2007

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MERCHANT BANKING

Punjab National Bank (PNB) is one of India's largest nationalized banks with some

4,500 branches or service counters. The financial institution offers services in

personal and corporate banking, including industrial, agricultural, and export

finance, as well as international banking. Its personal lending services include

loans for housing, autos, and education. PNB's diverse client list includes Indian

conglomerates, small and mid-sized businesses, non-resident Indians, and

multinational companies. The bank was established in Lahore in 1895 -- before the

country was partitioned into India and Pakistan in 1947.

Key numbers for fiscal year ending 2008:

Sale: $2,315.0M

Net income: $322.1M

PNB's Financial Numbers

Sales $2.32 bil

Profits $.28 bil

Assets $24.12 bil

Market Value $2.79 bil

Employees 58,300

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MERCHANT BANKING

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MERCHANT BANKING

Union Bank of India has been around for more than 88 years. The bank has earned

a reputation for being techno-savvy--more than 600 branches of Bank are

networked and powered with a centralized technology platform, the bank also

manages close to 395 networked ATMs.

Union Bank is a Public Sector Unit with 55.43% Share Capital held by the

Government of India. The Bank came out with its Initial Public Offer (IPO) in

August 20, 2002 and Follow on Public Offer in February 2006. Presently 44.57 %

of Share Capital is presently held by Institutions, Individuals and Others.

Financial performance (as on 31st March 10)

The Bank’s Net Worth increased by 25.76% and stood at Rs. 8758 crore as

on 31st March 10 as compared to Rs.6964 crore in the previous year.

Net Profit Increased by 27.47% and stood at 594 crore as on 31st March 10 as compared to

466 crore crore in the previous year.

Gross NPA level increased to Rs.2671 crore as on 31st March’10 from

Rs.1923 crore as on 31stMarch’09.

Board of Directors

SHRI M.V.NAIR (Chairman & Managing Director) Shri S.C.Kalia(Executive Director) SHRI S.Raman(Executive Director) Dr. Gulfam Mujibi(Part-time non-official Director) Shri B.M.Sharma(Chartered Accountant Director) SHRI N. SHANKAR (WORKMEN DIRECTOR)

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MERCHANT BANKING

Products and Services

Personal Banking (Accounts & Deposits, Retail Loans, Cards, Insurance & Investment, Demat )

NRI Banking(Remittance, Savings & Deposits, Loan & Services, Payments)

Corporate Banking(CMS, E-Tax, Insurance, Trade Finance, loans Syndication, MSME Banking)

Internet Banking(Account Information, Transfer of Funds/Bills/Limits/Currency. Financial & Non Financial enquiries)

Awards:

The Bank was awarded the Gold Trophy and a certificate in the Elite Class for Excellence in Marketing & Brand Communication by Association of Business Communicators of India (ABCI) in March 2010. The award was given away by the Hon’ble Governor of Maharastra, Shri K.Sankaranarayan.

The Bank was awarded the prestigious “Skoch Challenger Award” 2009 for excellence in capacity building through innovative concept of “Village Knowledge Centre” as part of financial inclusion initiatives. The award was given away by Dr. C Rangarajan, Economic advisor to the Prime Minister

As part of its global expansion initiatives, the Bank opened its 5th overseas representative office in London, U.K. in April 2010. The Bank already has 4 representative Offices in Shanghai, Beijing in PRC, Abu Dhabi in UAE and Sydney, Australia. Besides the Bank has a full fledged overseas branch in Hong Kong. The Bank is the process of setting up a Rep Office in Toronto, Canada.

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MERCHANT BANKING

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial conglomerates, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates.

The group has a net worth of over Rs. 7,100 crore and has a distribution network of branches, franchisees, representative offices and satellite offices across cities and towns in India and offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group services around 6.5 million customer accounts.

Since the inception of the erstwhile Kotak Mahindra Finance Limited in 1985, it has been a steady and confident journey leading to growth and success.

Kotak Group Products & Services:

Senior Management:

Mr. Uday S. Kotak (Executive Vice Chairman & Managing Director) Mr. Anand Mahindra (Vice-Chairman and Managing Director) Mr. C Jayaram (Executive Director) Mr. Dipak Gupta (Executive Director) Dr. Shankar Acharya (Non-Executive Part-time Chairman)

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MERCHANT BANKING

Mr. Shivaji Dam (managing director of Kotak Mahindra Old Mutual Life Insurance Limited)

Mr. C. Jayaram ( Executive Director) Mr. Dipak Gupta ( Executive Director) Mr. Cyril Shroff (managing partner of the law firm)

Kotak Securities

Kotak Securities Ltd. 100 % subsidiary of Kotak Mahindra Bank is one of the

oldest and largest broking firms in the Industry. A subsidiary of Kotak Mahindra

bank. Reconstruction from a private company to a public limited company

effective from June 13, 2003. Act as a lead manager to several (IPO’s) & help in

Client in accessing the public & private equity market.

It is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

Kotak Securities Limited has Rs. 2300 crore of Assets Under Management (AUM) as of 31st March, 2010.

Large Presence: At present Kotak in 331 cities with 843 offices all over the country.

Services :-

Stock broking through the branch and Internet, Investments in IPO, Mutual funds Portfolio management service, Currency Derivatives, Insurance.

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MERCHANT BANKING

Accolades:

UTI MF – CNBC TV18 Financial Advisor Awards - Best Performing Equity Broker (National) for the year 09

Finance Asia Award (2009)-Best Brokerage Firm In India

Best Brokerage Firm in India by Asia money in 2008, 2007 & 2006

Best Performing Equity Broker in India – CNBC Financial Advisor Awards 2008

Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector

The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007

Euromoney Award (2007 & 2006) - Best Provider of Portfolio Management: Equities

Euromoney Award (2005)-Best Equities House In India

Finance Asia Award (2005)-Best Broker In India

Finance Asia Award (2004)- India's best Equity House

Prime Ranking Award (2003-04)- Largest Distributor of IPO's

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MERCHANT BANKING

IDBI Capital Market Services Ltd., (IDBI Capital) is a wholly owned subsidiary of IDBI Bank Ltd and is a leading Investment Banking & Securities Company.

IDBI Capital offers a full suite of products and services to Corporates, Institutional and Individual clients. The range of services include :-

Investment Banking Capital Market Products Private Equity Corporate Advisory Services Mergers & Acquisitions Project Appraisals & Debt Syndication Stock Broking - Institutional & Retail Distribution of Financial Products Debt Placement and Underwriting Fund Management (Managing Clients' Assets-Pension/PF Fund Managers) Research Group

IDBI Capital is highly regarded for safety and trust and enjoys a credit rating of “AAA” by CARE for its medium-term borrowings and P1+ by ICRA for its short-term borrowing

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MERCHANT BANKING

Milestones

1995 March Commenced Equity Broking on NSE CM segment

1995 July Built agent Distribution Network across the country

1996 October Commenced Debt Broking on NSE WDM segment

1996 December

Started operations as a Depository Participant

1996 Started to act as Arranger to Privately Placed Bond issues

1998 April Commenced operations as a Portfolio Manager

1999 February

Acquired membership of BSE, Mumbai

1999 November

Started operations as a Primary Dealer

2002 March Achieved an outright secondary market turnover exceeding Rs.100000 crore in G-Secs

2000 June Acquired Derivatives memberships of BSE and NSE

2002 October Commenced trading in Interest Rate Swaps

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MERCHANT BANKING

2004 June Commenced Merchant Banking & Corporate Advisory Services

2006 January Launched the online investing portal – www.idbipaisabuilder.in

2006 September

IDBI Capital bags CNBC TV18 'Best National Financial Advisor-Institutional' award.

2006 September

IDBI Capital ties up with Punjab National Bank and Bank of Rajasthan Bank.

2007 March IDBI Capital ties up with Oriental Bank of Commerce

2007 May IDBI Capital ties up with Karur Vysya Bank (KVB)

2008 January IDBI Capital bags CNBC TV18's prestigious National Financial Advisor Award

2008 March IDBI Capital ties up with Union Bank of India

Fund Management

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MERCHANT BANKING

IDBI Capital Market Services Ltd. (ICMS) is a leading Fund Manager in the country for Provident, Pension and Retirement Benefit Funds. The Company is a SEBI registered Portfolio Manager and manage its Client’s assets under both discretionary and non-discretionary mandates. These services are provided to various public and private sector undertakings and their provident, pension, retirement benefit and surplus funds. The Company’s client base includes leading pension and provident funds in the country.

IDBI capital has been advising institutions, banks and corporates for their investment in Debt, Mutual Funds and Equities over several years. Its services include managing Client Assets--Pension & Provident Funds, Surplus fund Management, Equity Portfolio Management and Mutual Fund Advisory.

The funds have continuously yielded superior returns, which are significantly higher than the benchmark.

ISO Certification 9001:2000

Keeping in view the importance of standardized processes and service levels, the Company has gone in for ISO Certification for Fund Management, and is the only company to have done so in this sector. Being a public sector, the Company is also audited by Comptroller and Auditor General (CAG) office and follows transparent practices.

Regulatory Approval

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MERCHANT BANKING

IDBI Capital is a registered Portfolio Manager with Securities and Exchange Board of India (SEBI) since 1998 and is authorised to undertake Funds Management activities (Debt & Equity) for clients. These activities would be governed by Securities and Exchange Board of India (Portfolio Managers) Rules and Regulations, 1993. SEBI Regisration No. of IDBI Capital is INP000000209, valid till the year 2010.

Service’s:-

Retail Broking & Distribution Online Investing IPO Distribution Capital Markets IPO / FPO / Right Issues Takeover Buyback of Securities Qualified Institutional Placement Private Equity Investment Banking Financial Advisory Project Advisory Corporate Advisory Mergers & Acquisitions Strategic Advisory Institutional Broking & Distribution Equity Sales & Dealing Equity Research Mutual Fund Sales & Dealing Mutual Fund Research

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MERCHANT BANKING

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MERCHANT BANKING

ANALYSIS AND INTERPRETATION

Q 1 Do you take any financial services from bank?

Sr. No.

Take Financial Service Nos. Percentage

1 Yes 12 40

2 No 18 60

  Total 30  100

GRAPH

40%

60%

Take Financial ServicesYes No

Interpretation

Out of total respondents, 40% respondents have taken Financial Service and rest

60% respondents have not taken the Financial Services.

Q 2 Do you know about Merchant Banking?

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MERCHANT BANKING

Sr. No.

Know about Merchant Nos. Percentage

1 Yes 10 33.33

2 No 20 66.67

  Total 30  100

33%

67%

Know about Merchant BankingYes No

Interpretation:

Out of total respondents, 33% respondents Know about merchant banking and rest

67% respondents don’t know about merchant banking.

Q 3 Are you satisfied with the services provided by your bank?

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MERCHANT BANKING

Sr. No. Satisfied Nos. Percentage

1 Yes 13 43.75

2 No 17 56.25

  Total 30 100

Percentage, 43.75

Percentage, 56.25

0

10

20

30

40

50

60

Percentage

1 Yes

2 No

Interpretation:

Out of total respondents, 43.75% respondents are satisfied and rest 60%

respondents are not satisfied.

Q4 Are you satisfied with services offered by banks?

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MERCHANT BANKING

Sr. No Bank Percentage

1 ICICI 20

2 SBI 35

3 PNB 20

4 BOI 15

5 Other 10

Interpretation:

Large number prefers services from SBI.

Q 5 What is the position of Merchant Banking in Private Sector?

T.Y.BCOM (BANKING & INSURANCE) Page 77

0

5

10

15

20

25

30

35

40

icici sbi pnb boi anyother

icici

sbi

pnb

boi

any other

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MERCHANT BANKING

Sr. No. Position Percentage

1 Good 50

2 Normal 35

3 Bad 15

  Total 100

Position

Good1

50%Normal

235%

Bad3

15%1 Good

2 Normal

3 Bad

Interpretation:

Out of total respondents, 50% respondents Say Good, 35% Say Normal and rest

15% respondents say Bad.

Q 6 What is the position of Merchant Banking in Public Sector?

Sr. No. Position Percentage

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MERCHANT BANKING

1 Good 40

2 Normal 55

3 Bad 5

  Total 100

Position

40%

55%

5%

1 Good

2 Normal

3 Bad

Interpretation:

Out of total respondents, 40% respondents Say Good, 55% Say Normal and rest

5% respondents say bad.

Q7 What type of security have you deposited/you will deposit with the banks?

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MERCHANT BANKING

Sr. No. Type of Security Nos. Percentage

1. Bank Security (F.D.) 7 22.5

2. Gold 0 0

3. Land Papers 19 62.5

4. Third person security 4 15

Total: 30 100

bank sec. gold land paper third person0

5

10

15

20

25

30

35

40

45

50

bank sec.

gold

land paper

third person

Interpretation:

Out of total respondents, a large number have deposited/will deposit land papers.

Q 8 Are you satisfied by Security margin of bank?

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MERCHANT BANKING

Sr. No. Satisfaction by Security

Margin

Nos. Percentage

1. Yes 24 80

2. No 6 20

Total: 30 100

Yes No0

10

20

30

40

50

60

70

Yes

No

Interpretation

Out of total respondents, 80% respondents are satisfied and rest 20% respondents

are not satisfied.

Q 9 Are you satisfied with timely services provide by banks?

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Nos.

2 No

1 Yes

75

25

Depends on M.B

2 No

1 Yes

MERCHANT BANKING

Sr. No. Depends on M.B Nos. Percentage

1 Yes 21 75

2 No 9 25

  Total 30 100

Interpretation

Out of total respondents, 75% respondents Say that they are timely heard and rest

25% say that they are not timely served by merchant banking.

Q10 Will it differ from investment banks?

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MERCHANT BANKING

Sr. No. Difference Nos. Percentage

1 Yes 23 75

2 No 7 25

  Total 30 100

Yes No0

10

20

30

40

50

60

Yes

No

Interpretation

Out of total respondents, 75% respondents think that it differs and rest 25%

respondents don’t think so.

COMPARISION BETWEEN

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0%

10%

20%

30%

40%

50%

60%

70%

Public sector

Private sector

Series1

MERCHANT BANKING

PUBLIC & PRIVATE

SECTORS

Public Sector is the pioneer in providing Merchant Banking services in India.

But due to liberalization of economy the scenario has changed many private

Merchant Banking companies have entered in the industry since then.

Public sector merchant banking companies facing stiff competition from the

private sector companies.

Market Share

Public Sector= 66%

Private Sector= 34%

CONCLUSION

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MERCHANT BANKING

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, 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 details 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 predicted 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 an essential to remove the trading malpractice and structural

inadequacies prevailing in the market, and provide the investors an organized, well

regulated market.

BIBLIOGRAPHY

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MERCHANT BANKING

Reference Material

Financial Institutions & Market By Shashi K. Gupta, Nisha Aggarwal

Merchant Banking – H.R. Machiraju

The Rise of Merchant Banking – Stanley Chapman

The Merchant Bankers – Joseph Wechsberg

INTERNET

www.google.com/news

www.answer.com

www.emissarycapital.com

www.wikipedia.com

www.sebi.gov.in

http://unionbankofindia.co.in

http://www.asialaw.com/Article/1988860/Merchant-Banking.html

http://www.icicisecurities.com

http://www.sbicaps.com

http://www.bobcapitalmarkets.com

http://www.pnbindia.in/subsidiaries

http://www.kotaksecurities.com

http://www.canmoney.in

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MERCHANT BANKING

Questionnaire

Respondent’s Profile

Name : _______________

Age : _______________

Gender : _______________

Occupation : _______________

1. Do you take any financial services from bank?

(a) Yes ( ) (b) No ( )

2. Do you know about Merchant Banking?

(a) Yes ( ) (b) No ( )

3. Are you satisfied with the services provided by your bank?

(a) Yes ( ) (b) No ( )

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MERCHANT BANKING

4. Which bank provides you maximum services?

(a) ICICI ( ) (b) SBI ( )

(c) PNB ( ) (d) BOI ( )

(e) OTHER (specify)

5. What is the position of Merchant Banking in Private Sector?

(a) Good ( ) (b) Normal ( )

(c) Bad ( )

6. What is the position of Merchant Banking in Public Sector?

(a) Good ( ) (b) Normal ( )

(c) Bad ( )

7. What type of security have you deposited/you will deposit with the banks

(a)Bank security ( ) (b) Gold ( )

(c) Land paper ( ) (d) Third party security ( )

8. Are you satisfied by Security margin of bank?

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MERCHANT BANKING

(a) Yes ( ) (b) No ( )

9. Non-financial institution depends on merchant banking. Are you satisfied?

(a) Yes ( ) (b) No ( )

10. Will it differ from investment banks?

(a) Yes ( ) (b) No ( )

APPENDIX

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MERCHANT BANKING

List of All Merchant Bankers Registered with SEBI

A.K. CAPITAL SERVICES LTD ALLAHABAD BANK ALLBANK FINANCE LTD. ALMONDZ GLOBAL SECURITIES LTD (FORMERLY ALLIANZ SECURITIES LTD) AMBIT CORPORATE FINANCE PRIVATE LTD ANAND RATHI FINANCIAL SERVICES LIMITED (FORMERLY ANAND RATHI SECURITIES PVT LTD) ANDHRA BANK ANTIQUE CAPITAL MARKETS PVT. LTD. ARIHANT CAPITAL MARKETS LTD ARYAMAN FINANCIAL SERVICES LIMITED ASHIKA CAPITAL LTD ASIT C. MEHTA INVESTMENT INTERRMEDIATES LTD ATHERSTONE CAPITAL MARKETS LTD AVENDUS CAPITAL PVT. LTD. BNP PARIBAS BOB CAPITAL MARKETS LTD BRICS SECURITIES LTD CALYON BANK (FORMERLY CREDIT AGRICOLE INDOSUEZ) CENTRUM CAPITAL LIMITED (FORMERLY CENTRUM FINANCE LTD) COMFORT SECURITIES PVT LTD CORPORATE PROFESSIONALS CAPITAL PVT. LTD. CORPORATE STRATEGIC ALLIANZ PVT LTD D & A FINANCIAL SERVICES PVT. LTD. DAIWA SECURITIES SMBC INDIA PVT LTD CREDIT SUISSE SECURITIES (INDIA) PVT LTD DALMIA SECURITIES PVT. LTD. DARASHAW & COMPANY PRIVATE LTD (FORMERLY BADAR FINANC DBS BANK LTD EDELWEISS CAPITAL LTD ELARA CAPITAL (INDIA) PRIVATE LIMITED EMKAY SHARE AND STOCK BROKERS LTD EQUIRUS CAPITAL (P) LTD ESCORTS SECURITIES LTD FIRSTCALL INDIA EQUITY ADVISORS PVT. LTD. FORTRESS CAPITAL MANAGEMENT SERVICES PVT LTD FORTUNE FINANCIAL SERVICES (INDIA) LTD GSFS CAPITAL & SECURITIES LTD HDFC BANK LTD IDBI BANK LTD.(FORMERLY INDUSTRIAL DEVELOPMENT BANK OF INDIA) IDBI CAPITAL MARKET SERVICES LTD IDFC-SSKI LTD. IMPERIAL CORPORATE FINANCE & SERVICES PVT LTD IND GLOBAL CORPORATE FINANCE PVT LTD INDIA CAPITAL MARKETS PRIVATE LIMITED INDIA INFOLINE LTD.(FORMERLY INDIA INFOLINE SECURITIES PVT LTD) INDIABULLS SECURITIES LIMITED (FORMERLY ORBIS SEC LTD) INDUSIND BANK LTD

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MERCHANT BANKING

INFRASTRUCTURE DEVELOPMENT FINANCE COMPA ING VYSYA BANK LTD. (ERSTWHILE THE VYSYA BANK LTD.) INTEGRATED ENTERPRISES (INDIA) LTD (INTEGRATED ADVISORY SERV INTENSIVE FISCAL SERVICES PVT LTD INTER CORPORATE FINANCIERS & CONSULTANTS LTD. JEFFERIES INDIA PRIVATE LIMITED KARN MERCHANT BANKERS LTD. KARVY INVESTOR SERVICES LTD KEYNOTE CORPORATE SERVICES LTD KHANDWALA INTEGRATED FINANCIAL SERVICES PVT LTD KHANDWALA SECURITIES LTD LAZARD INDIA PRIVATE LTD ( LAZARD CREDIT CAPITAL LTD.) LKP SECURITIES LTD (FORMERLY LKP SHARES AND SECURITIES LTD) LODHA CAPITAL MARKETS LTD LSI FINANCIAL SERVICES PVT. LTD. MACQUARIE INDIA ADVISORY SERVICES PVT LTD MAPE ADVISORY GROUP PVT LTD MASTER CAPITAL SERVICES LTD MEGHRAJ SP CORPORATE FINANCE (PVT) LTD MONEY MATTERS INVESTMENT ADVISORS PRIVATE LIMITED MOTILAL OSWAL INVESTMENT ADVISORS PVT. LTD. MPA FINANCIAL SERVICES LIMITED MUNOTH FINANCIAL SERVICES LTD N M ROTHSCHILD AND SONS (INDIA) PVT LTD NETWORTH STOCK BROKING LTD. NIRBHAY CAPITAL SERVICES PVT LTD NOMURA FINANCIAL ADVISORY AND SECURITIES (INDIA) PVT. LTD. NORTHBRIDGE CAPITAL LIMITED ORIENTAL BANK OF COMMERCE PADMAKSHI FINANCIAL SERVICES LIMITED PIONEER INVESTCO PL CAPITAL MARKETS PVT LTD PNB GILTS LIMITED PNR SECURITIES LTD PRIME SECURITIES LTD PUNEET ADVISORY SERVICES PVT LTD R R FINANCIAL CONSULTANTS LTD RABO INDIA SECURITIES PRIVATE LIMITED REAL GROWTH SECURITIES PVT. LTD. RELIGARE CAPITAL MARKETS LIMITED SAFFRON CAPITAL ADVISORS PVT LTD SAL SECURITIES PVT. LTD. SICOM LTD SMC CAPITALS LIMITED SOBHAGYA CAPITAL OPTIONS LTD. SOCIETE GENERALE SPA MERCHANT BANKERS LIMITED SPARK CAPITAL ADVISORS (INDIA) PVT LTD SREI CAPITAL MARKETS LTD STANDARD CHARTERED-STCI CAPITAL MARKETS LIMITED STCI PRIMARY DEALER LIMITED

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MERCHANT BANKING

SUMEDHA FISCAL SERVICES LTD TAIB CAPITAL CORPORATION LIMITED TAMILNAD MERCANTILE BANK LTD THE CATHOLIC SYRIAN BANK LTD TRUST INVESTMENT ADVISORS PVT LTD ULJK SECURITIES PVT. LTD. UNION BANK OF INDIA UNITED BANK OF INDIA VALUE LINE ADVISORS PVT LTD.(FORMERLY S B & T FINANCE PRIVATE LTD) VC CORPORATE ADVISORS PVT. LTD. (FORMERLY ECCENTRIC CAPITAL PVT LTD.) VCK CAPITAL MARKET SERVICES LTD. AXIS BANK LTD.(FORMERLY UTI BANK LTD.) BAJAJ CAPITAL LTD TATA CAPITAL MARKETS LTD ICICI BANK LTD (private) ICICI SECURITIES LTD RELIANCE SECURITIES LIMITED KOTAK MAHINDRA CAPITAL COMPANY LTD YES BANK LTD. BANK OF AMERICA, N.A MORGAN STANLEY INDIA COMPANY PVT LTD DEUTSCHE BANK & DEUTSCHE EQUITIES INDIA PRIVATE LIMITED BARCLAYS BANK PLC BARCLAYS SECURITIES (INDIA) PVT. LTD. CITIGROUP GLOBAL MARKETS INDIA PVT. LTD. DSP MERRILL LYNCH LTD FEDEX SECURITIES LTD GOLDMAN SACHS(INDIA) SECURITIES PVT. LTD. J P MORGAN INDIA PVT. LIMITED SBI CAPITAL MARKETS LTD BANK OF MAHARASHTRA IFCI FINANCIAL SERVICES LTD KARUR VYSYA BANK LTD, PUNJAB NATIONAL BANK STATE BANK OF BIKANER AND JAIPUR

MERCHANT BANKING PLAYERS IN INDIA

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MERCHANT BANKING

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