Investment banks
Investment Banks are financial houses which assist public and private corporations in raising funds in the capital markets. These banks also aid in providing strategic advisory services for mergers, acquisition and other types of financial transactions.
These banks offer all sort of investment banking services. Investment banking simply means raising of funds in both equity and debt and the one who engages himself in these services is called investment banker.
Through investment banking, an institution generates funds in two different ways. They could draw on public funds through the capital market by selling stock in their company, and they may also seek out venture capital or private equity in exchange for a stake in their company.
Functions of Investment Banks
Investment Banks have several activities to handle and have different units for different activities of investment banking. The major activities include:
Investment Banking: The bank helps customers to raise funds in the capital markets and advise them on mergers and acquisition. The bank itself is liable to prepare all the necessary materials required for transaction and execution of the deal.
Sales and Trading: One of the most profitable areas, an activity that brings in utmost business and funds to the bank. The job of the sales executive is to call on institutional and high-net-worth investors to suggest trading ideas and implement on their required target of funds.
Research: It involves reviewing companies and writing reports about their prospects, with buy or sell rating.
Risk Management: This involves analyzing the market and credit risk which traders are taking onto the balance sheet in conducting their daily trade. The bank also sets the limit on the amount of capital to be invested.
Operations: It involves data checking trades and provides the greatest job security.
Technology: Almost all investment banks have in-house software system that helps in telecommunication and computer based support.
Investment Banks Services
An investment banking group provides the following services:
• Corporate Finance and advisory work
• Banking, for governments, institutions and companies;
• Treasury dealing for corporate clients in currencies, with financial engineering services
• Securities trading, in equities, bonds or derivatives and offering broking and distribution facilities.
• Managing Investment
Investment in Indian market
India is believed to be a good investment despite political uncertainty, bureaucratic hassles, shortages of power and infrastructural deficiencies. India currently presents a vast potential for overseas investment and the country is actively encouraging the entrance of foreign players into the market.
Foreign Direct Investment (FDI) is permitted as under the following forms of investments:
• Through financial collaborations.
• Through joint ventures and technical collaborations.
• Through capital markets through Euro issues.
• Through private placements or preferential allotments.
Investment Banks Outsourcing to India
India is the worlds back-office. As the worlds most important offshoring location the subcontinent dominates the international market for the outsourcing of several services. Several Investment Banks are now outsourcing their services to India. They are sending some of their financial analysis and research overseas. Banks like JP Morgan and Morgan Stanley have recently set up their subsidiaries in India to handle basic financial issues.
They are outsourcing to India because of availability of well trained, English speaking and inexpensive specialists. This is Indias key comparative advantage. Apart from these India also offer cheap resources and 24*7 customer service support.
Careers in Investment Banking
Careers in investment banking are profitable and one of the most sought after positions in the money-market world. A career in investment banking comprises of 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.
Top Banks in India
• ABN Amro Bank
• Allahabad Bank In India
• American Express Bank In India
• Andhra Bank In India
• Bank Of India
• Canara Bank
• Central Bank Of India
• CITI Bank
• Corporation Bank
• HDFC Bank
• HSBC Bank
• ICICI Bank
• IDBI
• Indian Overseas Bank
• Oriental Bank Of Commerce
• Punjab National Bank
• State Bank Of India (SBI)
• Standard Chartered Bank
• United Bank Of India
List of Investment Banks
• Anderson & Strudwick
• Bear Stearns
• Bulltick Capital Markets
• Canaccord Adams
• C.E. Unterberg, Towbin
• Cowen
• Ferris, Baker Watts, Inc.
• Friedman Billings Ramsey
• Genuity Capital Markets
• GMP Securities L.P.
• Goldman Sachs
• Greenhill & Company
• Houlihan Lokey Howard & Zukin
• Jefferies & Co.
• Janney Montgomery Scott
• Keefe, Bruyette & Woods
• Ladenburg Thalmann
• Lazard
• Lehman Brothers
• Macquarie Bank
• Merrill Lynch
• Merriman Curhan Ford & Co.
• Morgan Stanley
• Newbury Piret
• Noble Bank (UK)
• Northern Securities (Canada)
• Oppenheimer
• Piper Jaffray
• Robert W. Baird & Company
• Rothschild
• Stephens Inc.
• ThinkEquity Partners, LLC
• Thomas Weisel Partners
• William Blair & Company
• Westminster Securities Corporation
• ABN AMRO
• Allianz (Dresdner Kleinwort)
• Bank of America (Banc of America Securities)
• BNP Paribas
• BMO (BMO Nesbitt Burns)
• Barclays (Barclays Capital)
• Calyon
• CIBC (CIBC World Markets)
• Citigroup
• Commerce International Merchant Bankers Berhad (CIMB)
• Credit Suisse
• Deka Bank
• Deutsche Bank
• HSBC
• JPMorgan Chase
• KeyCorp (KeyBanc Capital Markets)
• Mizuho Financial Group (Mizuho Corporate Bank)
• Banco Monte Dei Paschi (MPS Finance)
• Nomura (Nomura Securities Co.)
• Scotia Capital (Scotia Capital)
• RaboBank B.V
• Royal Bank of Scotland
• RBC Capital Markets (RBC Capital Markets)
• Grupo Santander
• Socit Gnrale
• Toronto-Dominion Bank (TD Securities)
• UBS AG
• Wachovia (Wachovia Securities)
• Wells Fargo
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