Investment Banking Operations

How Investment Banking Operations Differ From Other Banks?

Unlike commercial banks and savings and loans, investment banks do not seek cash deposits from customers in the form of checking and savings accounts, and they do not make traditional interest-bearing loans to individual customers.

Investment banks instead make their money primarily

By advising corporate clients on the creation of stocks, bonds and other securities

By underwriting securities

By facilitating mergers and acquisitions, along with any due diligence and securities exchanges that may go along with them.

And by brokering (or selling) securities to investors.

Investment bankers have also created a broad array of investment options to go along with traditional stocks and bonds, including securities derivatives such as call and put options, which allow investors to lock in a buy or sell price on an investment at a future date, and credit default swaps, which insure bond buyers against the risk that a bond seller will renege on the debt.

Investment banks also lend stocks to facilitate short trades, in which speculators borrow stock and sell it in hopes that its price will decline before they rebuy it and return it to the lender.

Requirements for getting education loans

Age Limit for Graduation:
Age Limit for Graduation 28—30 years relaxable for SC/ST candidates
Documents Required:
.Completed Education Loan Application Form.
.Mark sheets of last qualifying examination
.Proof of admission scholarship, studentship etc
.Schedule of expenses for the specified course
.Two passport size photographs
.Borrower's Bank account statement for the last six months
.Income tax assessment order of last 2 years
.Brief statement of assets and liabilities of the Co-borrower
.Proof of Income (i.e. Salary slip/Form 16 etc)
Eligibility for Abroad Study:
A student is eligible for loan provided he/she is an Indian National, secured admission to Professional, technical courses of one of the identified educational institutions through Entrance Test, selection process. In case of education in the foreign University, institution (for which HO approval is required for its coverage under the Scheme), the student should have got necessary Passport, VISA formalities completed. Here are the expenses considered for loan: Fee payable to College, institute, hostel, examination, Library, Laboratory fee.Purchase of books, equipments,instruments, boarding and lodging expenses in Boarding Houses subject to production of Bills verified by the student borrower, travel Expenses/Passage money for studies abroad, purchase of computers - essential for completion of the Course, any other expense required to complete the course - like study tours, project work, thesis, etc.

List of some banks offering education loans

Allahabad Bank
Indian Overseas Bank
State Bank of Saurashtra
Andhra Bank
Karnataka Bank
State Bank of Travancore
Bank of Baroda
Oriental Bank
Syndicate Bank
Bank of India
Punjab and Sindh Bank
Thane Janata Sahakari Bank
Bank of Maharashtra
Punjab National Bank
The Saraswat Co-Op Bank
Canara Bank
South India Bank
Union Bank of India
Central Bank of India
State Bank of Bikaner And Jaipur
United Bank of India
Corporation Bank
State Bank of Hyderabad
UTI Bank
Dena Bank
State Bank of India
Vijaya Bank
Federal Bank
State Bank of Indore
UCO Bank
IDBI Bank
State Bank of Mysore
Indian Bank
State Bank of Patiala
Federal Bank

Tips for online banking

.Receive full disclosure, prior to opening your account, about the alternatives for buying and selling securities and how to obtain account information if you cannot access the firm's Web site.
.Understand that most likely you are not linked directly to the market, and that the click of your mouse does not instantaneously execute the trade.
.Receive information from the firm to substantiate any advertised claims concerning the ease and speed of online trading.
.Receive information from the firm about significant Web site outages, delays and other interruptions to securities trading and account access
.Obtain information before trading about entering and canceling orders (market, limit and stop loss), and the details and risks to margin accounts (borrowing to buy stocks).
.Review the firm's privacy and Web site security policies and whether your name may be used for mailing lists or other promotional activities by the firm or any other party.

About online banking

Origin of online banking:
The advent of the Internet and the popularity of personal computers presented both an opportunity and a challenge for the banking industry.
For years, financial institutions have used powerful computer networks to automate millions of daily transactions; today, often the only paper record is the customer's receipt at the point of sale. Now that its customers are connected to the Internet via personal computers, banks envision similar economic advantages by adapting those same internal electronic processes to home use.
Banks view online banking as a powerful "value added" tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment
Advantages of online banking:
.Convenience: Unlike your corner bank, online banking sites never close; they're available 24 hours a day, seven days a week, and they're only a mouse click away.
.Ubiquity: If you're out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of business, 24/7.
.Transaction speed: Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds.
.Efficiency: You can access and manage all of your bank accounts, including IRAs, CDs, even securities, from one secure site.
.Effectiveness: Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help you manage all of your assets more effectively. Most are also compatible with money managing programs such as Quicken and Microsoft Money.
Disadvantages of online banking:
.Start-up may take time: In order to register for your bank's online program, you will probably have to provide ID and sign a form at a bank branch. If you and your spouse wish to view and manage your assets together online, one of you may have to sign a durable power of attorney before the bank will display all of your holdings together.
.Learning curve: Banking sites can be difficult to navigate at first. Plan to invest some time and/or read the tutorials in order to become comfortable in your virtual lobby.
.Bank site changes: Even the largest banks periodically upgrade their online programs, adding new features in unfamiliar places. In some cases, you may have to re-enter account information.
.The trust thing: For many people, the biggest hurdle to online banking is learning to trust it. Did my transaction go through? Did I push the transfer button once or twice?
.Best bet: always print the transaction receipt and keep it with your bank records until it shows up on your personal site and/or your bank statement.

some important bank lists in India

.ABN-AMRO De Bank
.Allahabad Bank
.Andhra Bank
.Bank of Baroda
.Bank Of Madura
.Bank Of Maharashtra
.Bank Of Punjab
.Canara Bank
.Centurion Bank
.Citibank
.Corporation Bank - Mangalore
.IDBI Bank
.Dena Bank
.Deutsche Bank
.Development Credit Bank Ltd.
.Dhanalakshmi Bank
.Export-Import Bank Of India
.Federal Bank Limited
.Global Trust Bank
.ICICI Bank
.Indian Bank
.Indian Overseas Bank
.IndusInd Bank Ltd.
.International Banks in Delhi
.Lakshmi Vilas Bank
.Mandvi Co-operative Bank Ltd-Mumbai
.Nedungadi Bank Ltd,
.The Oriental Bank Of Commerce
.Punjab And Maharashtra Co-Operative Bank Ltd
.Punjab National Bank
.Reserve Bank Of India
.South Indian Bank Ltd.
.Standard Chartered Bank
.State Bank of Hyderabad
.State Bank of India
.State Bank Of Travancore
.Syndicate Bank
.TimesBank
.UCO Bank
.Union Bank Of India
.Vysya Bank
.National Bank for Agriculture and Rural Development
.Centurion Bank Limited

RECENT TRENDS OF BANKING SYSTEM IN INDIA

In the banking and financial sectors, the introduction of electronic technology for transactions, settlement of accounts, book–keeping and all other related functions is now an imperative. Increasingly, whether we like it or not, all banking transactions are going to be electronic. The thrust is on commercially important centers, which account for 65 percent of banking business in terms of value. There are now a large number of fully computerized branches across the country.
A switchover from cash-based transactions to paper-based transactions is being accelerated. Magnetic Ink character recognition clearing of cheques is now operational in many cities, beside the four metro cities. In India, the design, management and regulation of electronically-based payments system are becoming the focus of policy deliberations. The imperatives of developing an effective, efficient and speedy payment and settlement systems are getting sharper with introduction of new instruments such as credit cards, telebanking, ATMs, retail Electronic Funds Transfer (EFT) and Electronic Clearing Services (ECS). We are moving towards smart cards, credit and financial Electronic Data Interchange (EDI) for straight through processing.
Financial Fraud (Investigation, Prosecution, Recovery and Restoration of property) Bill, 2001
Further the Financial Fraud (Investigation, Prosecution, Recovery and Restoration of property) Bill, 2001 was introduced in Parliament to curb the menace of Bank Fraud. The Act was to prohibit, control, investigate financial frauds; recover and restore properties subject to such fraud; prosecute for causing financial fraud and matters connected therewith or incidental thereto.
Under the said act the term Financial Fraud has been defined as under:Section 512 - Financial FraudFinancial frauds means and includes any of the following acts committed by a person or with his connivance, or by his agent, in his dealings with any bank or financial institution or any other entity holding public funds;1. The suggestion, as a fact, of that which is not true, by one who does not believe it to be true;2. The active concealment of a fact by one having knowledge or belief of the fact;3. A promise made with out any intention of performing it;4. Any other act fitted to deceive;5. Any such act or omission as the law specially declares to be fraudulent. Provided that whoever acquires, possesses or transfers any proceeds of financial fraud or enters into any transaction which is related to proceeds of fraud either directly or indirectly or conceals or aids in the concealment of the proceeds of financial fraud, commits financial fraud.
513(a) - Punishment for Financial FraudWhoever commits financial fraud shall be:(a) Punished with rigorous imprisonment for a term, which may extend to seven years and shall also be liable to fine.(b)Whoever commits serious financial fraud shall be punished with rigorous imprisonment for a term which may extend to ten years but shall not be less than five years and shall also be liable for fine up to double the amount involved in such fraud.
Provided that in both (a) and (b) all funds, bank accounts and properties acquired using such funds subjected to the financial fraud as may reasonably be attributed by the investigating agency shall be recovered and restored to the rightful owner according to the procedure established by law.
CONCLUSION
The Indian Banking Industry has undergone tremendous growth since nationalization of 14 banks in the year 1969. There has an almost eight times increase in the bank branches from about 8000 during 1969 to mote than 60,000 belonging to 289 commercial banks, of which 66 banks are in private sector.
It was the result of two successive Committees on Computerization (Rangarajan Committee) that set the tone for computerization in India. While the first committee drew the blue print in 1983-84 for the mechanization and computerization in banking industry, the second committee set up in 1989 paved the way for integrated use of telecommunications and computers for applying technogical breakthroughs in banking sector.
However, with the spread of banking and banks, frauds have been on a constant increase. It could be a natural corollary to increase in the number of customers who are using banks these days. In the year 2000 alone we have lost Rs 673 crores in as many as 3,072 number of fraud cases. These are only reported figures. Though, this is 0.075% of Rs 8,96,696 crores of total deposits and 0.15% of Rs 4,44,125 crores of loans & advances, there are any numbers of cases that are not reported. There were nearly 65,800 bank branches of a total of 295 commercial banks in India as on June 30, 2001 reporting a total of nearly 3,072 bank fraud cases. This makes nearly 10.4 frauds per bank and roughly 0.47 frauds per branch.
An Expert Committee on Bank Frauds (Chairman: Dr.N.L.Mitra) submitted its Report to RBI in September 2001. The Committee examined and suggested both the preventive and curative aspects of bank frauds.The important recommendations of the Committee include:• A need for including financial fraud as a criminal offence;• Amendments to the IPC by including a new chapter on financial fraud;• Amendments to the Evidence Act to shift the burden of proof on the accused person;• Special provision in the Cr. PC for properties involved in the Financial Fraud.• Confiscating unlawful gains; and preventive measures including the development of Best Code Procedures by banks and financial institutions.
Thus it can be concluded that following measures should necessarily be adopted by the Ministry of Finance in order to reduce cases of Fraud.• There must be a Special Court to try financial fraud cases of serious nature.• The law should provide separate structural and recovery procedure.• A fraud involving an amount of ten crore of rupees and above may be considered serious and be tried in the Special Court.
The Twenty-ninth Report of the Law Commission had dealt some categories of crimes one of which is “offences calculated to prevent and obstruct the economic development of the country and endanger its economic health.” Offences relating to Banking Fraud will fall under this category. The most important feature of such offences is that ordinarily they do not involve an individual direct victim. They are punishable because they harm the whole society. It is clear that money involved in Bank belongs to public. They deposit there whole life’ security in Banks and in case of Dacoity or Robbery in banks the public will be al lost. Thus it is important that sufficient efforts should be taken in this regard.