Functions of Investment Bank

 Investment Banking Types

Investment banking operations are divided into three categories:

Working directly with clients or trading on behalf of an individual or business customer puts front office employees in direct contact with the public. Jobs in sales, trading, research, and M&A are all regarded as front office positions.

Like their name suggests, middle office activities take place halfway between the investment bank's client-facing activities and its more administrative tasks. Risk management and compliance are among these tasks.

The investment bank's back offices are located distant from the trading floors. Despite not being as flashy, they are just as crucial to the company's operations. Settlements, payment processing, technical support, and human resources are all examples of back office positions.

Principles of Investment Banking - B.Com/BBA Syllabus

 Investment Banking Basics

Introduction to Investment Banking: 

Investment banking services, investment banking services by kind of investment bank, merchant banking services Issue Management; Pre-issue and post-issue duties; Shifting Investment Banking Environment SEBI norms for capital market regulation.

SEBI issuance and Listing of Debt Securities Regulation 2008 apply to merchant bankers, brokers, sub brokers, intermediaries, and portfolio managers.

A financial organization known as an investment bank helps people, businesses, and governments raise cash by underwriting securities or serving as the client's agent in the Assurance of Securities (or both).

Types of Investment Banks

Depending on what they do, investment banks can be divided into two main categories. These could be more appropriately referred to as investment banking branches of activity. 

1. Sell side: This includes activities like trading securities as well as market-making, transaction facilitation, and the marketing and promotion of securities through research and underwriting.

2. Buy side: Describes organizations that offer direction and advise with regard to purchasing investing services. Insurance firms, hedge funds, unit trusts, mutual funds, and private equity funds are typical buy-side players.

What is Commercial Bank

 

  What do you mean by Commercial Bank?

Commercial banks are basically involved in profitable business. The basic function of this bank is to accept deposit from the public and use it to provide loans and advances to the needy people by charging certain interest rate, henceforth making profit.

The Commercial Banks are further classified as per the figure above, but the number of banks has been changed in 2019 when the big decision by the govt came in: yes' Merging of banks made super changes in banking sector. Soon the merging list will be added here.

a. Public Sector Banks:

                                    The public sector Bank means the bank which have more than 50% of share is from govt side. In simple words they are the larger banks prevailing in the market and most trust able for the public because of governmental interference. the major bank of public sector is SBI (State Bank of India)

b. Private Sector Banks:

                                    Private banks are established by private entities for making profit. but banks have to be registered as bank under banking Act 1949. though there are few additions were amended into banking regulations but this basic Act is necessary for any bank to qualify. these banks are more profitable as they charge high interest rate than public sector banks.

c. Foreign Banks:

                        these banks are specifically made for the purpose of business persons. separate rules are made by RBI to regulate this bank. It is a type of international bank who are bound to follow home as well as host country. Foreign Banks are present in India either as representative offices or as branches.

What is merger of Banks

                                  MERGE BANKS IN INDIA 

How many public sector banks are there after the merger?

 There are now 12 public sector banks after the merger. Earlier, the number of public sector banks was 27.

Which are the merged banks, and which are the independent banks?

 The merged banks are Canara Bank, Punjab National Bank, Bank of Baroda, India Bank, Union Bank of India, and State Bank of India.

Some of the banks that were region-centric remained independent entities. They are the Central Bank of India, the UCO Bank, the Bank of Maharashtra, the Punjab and Sind Bank, and the Indian Overseas Bank.

Which are the associate banks that were merged with the State Bank of India?

 The associate banks that merged with the State Bank of India were the State Bank of Travancore, the State Bank of Hyderabad, the State Bank of Mysore, the State Banks of Bikaner and Jaipur, the State Bank of Patiala, and the Bharatiya Mahila Bank.

Indian Bank merged with which bank?

 Indian Bank merged with Allahabad Bank, with Indian Bank acting as the acquirer.

What was the main objective of a bank merger in India?

 The main objectives of bank mergers in India were to improve the overall economy, improve profitability, reduce the volume of NPAs, improve efficiency, and widen the global reach with an increased branch network.

Is a bank merger good?

 A bank merger has its own benefits.

• There will be a positive impact on the overall economy.
• Competition among the players in the same industry will decrease, resulting in increased profitability.
• Customers will have a wider range of products and services to choose from. The geographical reach will widen owing to the increase in the number of branches.
• Technical efficiency will improve.
• reduction in operational costs.
• The removal of unnecessary posts and designations will result in lower operational costs.

 

Mergers & Acquisitions of Banks

  Mergers & Acquisitions questions of Banks

There is a list of merged banks with the specific year. the list consist of merging from 2000-2009 to 2010-2017

                       List of Banking News Sites

1. livemint: This is a fantastic financial site to be subscribed. absolutely financially developed website.

Link; https://www.livemint.com/industry/banking

2. economictimes.indiatimes:  This website provided with updated information about the banks and considered to be accurate enough to go through the news in it. and there is lot of other financial info present 

Link; https://economictimes.indiatimes.com/industry/banking/finance/banking

3. businesstoday: This website is very useful for market purpose and economy. It includes banking news as well.

Link;https://www.businesstoday.in/money/banking

Types of Banks

The major type of banks are two

1. Scheduled Banks

2. Non-Scheduled Banks

They are further classified into sub types with respect to their nature.

the following diagram will help you better understand it:

Structure of Types of Banks

Functions of Bank

Functions of Banks

The most important function of any bank are two. they are

a) Accepting Deposits

b) Granting Loans & Advances

Deposits are of three types mainly

1. Saving Deposit

2. Current Deposit

3. Fixed Deposit

1. Saving deposit is one of the account type that helps the consumers to open an account in bank for a longer period unlike current account.   under this account banks give facility to withdraw for number of times with certain limit.

2. This account (Cuurent deposit account) is mainly opened for the purpose of business use where bank provides overdraft facility with higher interest rate charges. The main feature of this account is "short term use". 

3. Under Fixed account system, the money deposited into account can only be withdraw only after maturity tenure agreed between the parties (Account holder & Bank). 

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Basic Intro of Bank

What is Bank?

Finance is the life blood of trade, commerce and industry.  Development of any country mainly depends upon the banking system. Now-a-days, banking sector acts as the backbone of modern business.

The very first question that arrives in our mind that, What is Bank.

let me tell you there are numerous definitions being given to Bank. Few of these will be included here:

                        

                                                               Definitions

1.  A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes.                                                                                                                                               - investopedia