Investment Banking

Investment Banking With Reference To J.P. Morgan

Investment banking
Traditionally, banks are engaged either in commercial banking or investment banking. In commercial banking, the institution collects deposits from clients and gives direct loans to businesses and individuals. Through investment banking, an institution generates funds through various channels. (For e.g. when Mr. Rathod needed a loan to buy a car, he visited a commercial bank and when he needed to raise cash to fund an acquisition or to build more factories, he made a phone call to an investment bank). Investment Banker or Lead Manager or Merchant Banker has been defined under the Securities & Exchange Board of India (Merchant Bankers) 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 as manager, consultant, advisor or rendering corporate advisory service in relation to such issue management". A "Merchant Banker" can also be defined as "An organization that acts as an intermediary between the issuers and the ultimate purchasers of securities in the primary security market" Investment Banking is made up of lots of businesses and deal in almost in the same commodity viz. money — and are structured along broadly the same lines. Investment banks have two primary roles:
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Firstly, they help governments and companies to raise money through the sale of shares and bonds (a form of long-term lending). Trading securities for cash or securities (i.e., facilitating transactions, market-making), or the promotion of securities (i.e., underwriting, research, etc.) referred to as the "sell side."
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•

Secondly, they maintain a market in those stocks and shares (collectively known as securities) by acting as brokers, enabling their buying and selling. Dealing with pension funds, mutual funds, hedge funds, and the investing public, who use the products and services of the sell-side in order to maximize their return on their investment constituting the "buy side". To continue ‘investment banking is what investment banks do’.

This definition can be explained in the context of how investment banks have evolved in their functionality and how history and regulatory intervention have shaped such an evolution. Investment banks help companies and governments and their agencies to raise money by issuing and selling securities in the primary market. They assist public and private corporations in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions.

Definition
“An individual or institution, which acts as an underwriter or agent for corporations and municipalities issuing securities. Most also maintain broker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors. Investment banks also have a large role in facilitating mergers and acquisitions, private equity placements and corporate restructuring. Unlike traditional banks, investment banks do not accept deposits from and provide loans to individuals. Also called Investment Banker.”

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Needs and importance of investment banking
Any firm contemplating a significant transaction can benefit from the advice of an investment bank. Although large corporations often have sophisticated finance and corporate development departments provide objectivity, a valuable contact network, allows for efficient use of client personnel, and is vitally interested in seeing the transaction close. Most small to medium sized companies do not have a large inhouse staff, and in a financial transaction may be at a disadvantage versus larger competitors. A quality investment banking firm can provide the services required to initiate and execute a major transaction, thereby empowering small to medium sized companies with financial and transaction experience without the addition of permanent overhead, an investment bank provides objectivity, a valuable contact network, allows for efficient use of client personnel, and is vitally interested in seeing the transaction close. Most small to medium sized companies do not have a large inhouse staff, and in a financial transaction may be at a disadvantage versus larger competitors. A quality investment-banking firm can provide the services

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Organizational structure of an investment bank
I.

The main activities and units:
The primary function of an investment bank is buying and

selling products both on behalf of the bank's clients and also for the bank itself. Banks undertake risk through proprietary trading, done by a special set of traders who do not interface with clients and through Principal Risk, risk undertaken by a trader after he or she buys or sells a product to a client and does not hedge his or her total exposure. Banks seek to maximize profitability for a given amount of risk on their balance sheet. An investment bank is split into the so-called Front Office, Middle Office and Back Office. The individual activities are described below:
1.

Front Office:
Investment Banking is the traditional aspect of investment

banks which involves helping customers raise funds in the Capital Markets and advising on mergers and acquisitions. Investment bankers prepare idea pitches that they bring to meetings with their clients, with the expectation that their effort will be rewarded with a mandate when the client is ready to undertake a transaction. Once mandated, an investment bank is responsible for preparing all materials necessary for the transaction as well as the execution of the deal, which may involve subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target. Other terms for the Investment Banking Division include Mergers & Acquisitions (M&A) and Corporate Finance (often pronounced "corpfin"). Investment management is the professional management of various securities (shares, bonds etc) and other assets (e.g. real estate), to meet specified

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investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes eg. mutual funds) . Financial Markets is split into four key divisions:
 Sales  Trading

 Research
 Structuring.



Sales and Trading:
It is often the most profitable area of an investment bank , In the

responsible for the majority of revenue of most investment banks

process of market making, traders will buy and sell financial products with the goal of making an incremental amount of money on each trade. Sales is the term for the investment banks sales force, whose primary job is to call on institutional and high-net-worth investors to suggest trading ideas (on caveat emptor basis) and take orders. Sales desks then communicate their clients' orders to the appropriate trading desks, which can price and execute trades, or structure new products that fit a specific need.



Research: It is the division which reviews companies and writes reports
about their prospects, often with "buy" or "sell" ratings. While the research division generates no revenue, its resources are used to assist traders in
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trading, the sales force in suggesting ideas to customers, and investment bankers by covering their clients. In recent years the relationship between investment banking and research has become highly regulated, reducing its importance to the investment bank.



Structuring: It has been a relatively recent division as derivatives have come
into play, with highly technical and numerate employees working on creating complex structured products which typically offer much greater margins and returns than underlying cash securities.

2.

Middle Office:
Risk Management involves analysing the market and credit risk

that traders are taking onto the balance sheet in conducting their daily trades, and setting limits on the amount of capital that they are able to trade in order to prevent 'bad' trades having a detrimental effect to a desk overall. Another key Middle Office role is to ensure that the above mentioned economic risks are captured accurately (as per agreement of commercial terms with the counterparty) correctly (as per standardised booking models in the most appropriate systems) and on time (typically within 30 minutes of trade execution). In recent years the risk of errors has become known as "operational risk" and the assurance Middle Offices provide now include measures to address this risk. When this assurance is not in place, market and credit risk analysis can be unreliable and open to deliberate manipulation.

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3.

Back Office:
Operations involve data-checking trades that have been

conducted, ensuring that they are not erroneous, and transacting the required transfers. While it provides the greatest job security of the divisions within an investment bank, it is a critical part of the bank that involves managing the financial information of the bank and ensures efficient capital markets through the financial reporting function. The staff in these areas are often highly qualified and need to understand in depth the deals and transactions that occur across all the divisions of the bank.

II.

Recent evolution of the business
1.

New products:
Investment banking is one of the most global industries and is

hence continuously challenged to respond to new developments and innovation in the global financial markets. Throughout the history of investment banking, many have theorized that all investment banking products and services would be commoditized. New products with higher margins are constantly invented and manufactured by bankers in hopes of winning over clients and developing trading know-how in new markets. However, since these can usually not be patented or copyrighted, they are very often copied quickly by competing banks, pushing down trading margins. For example, trading bonds and equities for customers is not a commodity business but structuring and trading derivatives is highly profitable .Each OTC contract has to be uniquely structured and could involve complex pay-off and risk profiles. Listed option contracts are traded through major exchanges, such

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as the CBOE, and are almost as commoditized as general equity securities. In addition, while many products have been commoditized, an increasing amount of profit within investment banks has come from proprietary trading, where size creates a positive network benefit (since the more trades an investment bank does, the more it knows about the market flow, allowing it to theoretically make better trades and pass on better guidance to clients).

2.

Possible conflicts of interest:
Potential conflicts of interest may arise between different

parts of a bank, creating the potential for financial movements that could be market manipulation. Authorities that regulate investment banking (the FSA in the United Kingdom and the SEC in the United States) require that banks impose a Chinese wall which prohibits communication between investment banking on one side and research and equities on the other. Some of the conflicts of interest that can be found in investment banking are listed here: Historically, equity research firms were founded and owned by investment banks. One common practice is for equity analysts to initiate coverage on a company in order to develop relationships that lead to highly profitable investment banking business. In the 1990s, many equity researchers allegedly traded positive stock ratings directly for investment banking business. On the flip side of the coin: companies would threaten to divert investment banking business to competitors unless their stock was rated favorably. Politicians acted to pass laws to criminalize such acts. Increased pressure from regulators and a series of lawsuits, settlements, and prosecutions curbed this business to a large extent following the 2001 stock market tumble Many investment banks also own retail brokerages. Also during
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the 1990s, some retail brokerages sold consumers securities which did not meet their stated risk profile. This behavior may have led to investment banking business or even sales of surplus shares during a public offering to keep public perception of the stock favorable. Since investment banks engage heavily in trading for their own account, there is always the temptation or possibility that they might engage in some form of front running.

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Functions and services provided by Investment bankers
1. Mergers and Acquisitions (M&AQ):
A merger is defined as a combination of two or more companies into a single company where one survives and the others lose their corporate existence. A merger is also defines as amalgamation wherein the shareholders of the combining companies become substantially the shareholders of the company formed. A takeover is referred to as 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 in settling negotiations between the buyer and the seller. The main aim of the IB is to safeguard the interest of the shareholders in both companies. Hence they play a vital role in M&As. Based on the current business objective the search of the acquirer company will start for a merger partner company i.e. if the objective of the merger is growth oriented (seeking expansion in production and market segments or optimum utilization of company’s existing resources) then the acquirer company will select a business related to its current line of business as a merger partner. On the other hand if the objective is diversification then the acquirer company will seek a merger partner not related to its current business activities. On proposing the merger/acquisition the IB will provide the following services:

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• Appraise the proposal with respect to financial viability and technical feasibility • Arrange meetings
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Negotiate between parties

• Determine the purchase consideration • Mode of payment
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Comply with legal formalities – e.g. obtaining necessary approvals from the regulators (i.e. Government / RBI) Draft the scheme of amalgamation (merger/ acquisition)

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• Approval of boards etc.

2.

Corporate counseling:
It includes a whole range of financial services provided by

an IB to a corporate with a view to ensure better performance, maintain steady growth and create a better image among investors. It covers the entire field of IB services. However it should be noted that the scope of corporate counseling is limited to suggestions and opinions leaving to the client to take corrective actions for solving its corporate problems. Basically the I-banker finds out the problem areas of an enterprise which include organisational goals, operational scales, choice of a product, expansion plans (new product launches), forecasting of a product, and restructuring of a business, if required, in order to sustain growth in the long run.

3. Project counseling:

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This is an important IB function which requires the I-banker to be involved right from inception i.e. birth of an idea – effective execution – successful completion. The I-banker provides the following services in this scenario: • Appraise the project considering various aspects - as to the type of project, location, technical, commercial and financial feasibility.
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Preparing a project report (to procure regulatory approvals, financial assistance, conducting market studies etc)

• Deciding upon a finance pattern i.e. to opt for a mix of internal and external sources (owners funds, borrowed funds, private investors or public issues) • Presenting the project to potential investors
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Take care of all documentation in the process

4. Loan syndication / credit syndication:
On deciding the project to be undertaken the next crucial step in any business scenario is looking for sources wherefrom funds could be procured to implement the project. This function rendered by the IB in arranging and procuring the funds from financial institutions, banks and other lending sources for financial the clients project cost or working capital requirement is referred to as Loan Syndication or Credit Syndication. The main services provided here are: • Preparing project details • Locating sources of funds • Selecting suppliers of funds

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• Preparing and filing of loan application • Obtaining sanction letters and complying with terms and conditions for availing the loans

5. Management of public issues:
Public issue management involves marketing of corporate stocks by offering the securities in the primary market to the public in an IPO (Initial Public Offering) and in the secondary market through private placements (other companies, financial institutions etc) or offering the securities to existing shareholders. As a manager to a public issue it is expected of the IB to provide pre and post issue assistance as outlined below: • Comply with statutory SEBI Guidelines for listing • Obtain permission of the bourses to the MoA and AoA • Appoint other managers, bankers, underwriters, brokers, lawyers
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Advise the company to appoint auditors, solicitors and BOD (board of directors)

• Draft/ finalise the prospectus including price band, opening and closing date of the issue, timing the issue considering market sentiments • Liaise with the registrar to the issue • Application for listing with the bourses • Advertise the issue • Underwrite the issue • Allotment /refund of subscription • Calculation of underwriters liability in case of undersubscription

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Investment Banking With Reference To J.P. Morgan 6. Underwriting of IPOs:
Underwriting is a guarantee given by the IB that in the event of under subscription the amount underwritten would be subscribed in the same proportion by the underwriter. As an underwriter the IB gets the following benefits: • earns a commission on the commitment • a right to be appointed as bankers to the issue • expands its clientele

7. Portfolio management/wealth management:
Merchant Bankers manage portfolio of securities on behalf of their clients, provided special services with a view to ensure maximum returns with minimum risk of loss there by building wealth for their clientele to meet long, medium and short term financial goals. In order to achieve the above the I-banker provides personalized services to its clients which include: • Understanding the investment needs of the client • Tax bracket • Risk Appetite • Liquidity requirements • Study the risk factors involved in capital markets • Identify blue chip companies • Should keep abreast of investment guidelines affecting its clients etc.

8. Consultancy to sick units:

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In an attempt to turnaround sick industries / units, IBs take on the following: • Assess the capital requirements and counsel on restructuring • Appraise on technological, environmental, financial and other factors sickness • Prepare a step-by-step plan for rehabilitation • Provide assistance in case of takeovers/ mergers • Obtain necessary statutory authorities for implementing the rehabilitation program • Monitor implementation of the scheme

9. Leasing and hire purchase:
Advise SMEs on lease and hire opportunities available suitable to their business i.e. lease/hire rather than purchase. IBs advise the company on finances available, legal documentation and tax counseling.

10.

NRI investment and advisory servicers: In order to attract foreign investment in the primary and

secondary markets I-bankers provide investment advisory services to NRIs. i.e. • Identify investment opportunities – capital markets, real estate etc. • Select securities • Portfolio management – purchase/sale of securities • Provide research reports on investment opportunities • Keep the client informed on RBI/FERA compliances with respect to investments and sale and return on investments.

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Investment Banking With Reference To J.P. Morgan 11. Venture capital financing:
Financing an emerging project is called venture capital financing. The I-banker checks on feasibility of the project and if viable funds the project. In this financing the I-banker is repaid by selling its stake in the company.

Growth of Investment banking
Growth of the industry:
Investment banking is one of the most global industries and is hence continuously challenged to respond to new developments and innovation in the global financial markets. New products with higher margins are constantly invented and manufactured by bankers in hopes of winning over clients and developing trading knowhow in new markets. However, since these can usually not be patented or copyrighted, they are very often copied quickly by competing banks, pushing down trading margins. In addition, while many products have been commoditized, an increasing amount of profit within investment banks has come from proprietary trading, where size creates a positive network benefit (since the more trades an investment bank does, the more it knows about the market flow, allowing it to theoretically make better trades and pass on better guidance to clients).

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The fastest growing segment of the investment banking industry, are private investments into public companies (PIPEs). Such transactions are privately negotiated between companies and accredited investors. Large bulk bracket brokerage firms and smaller boutique firms compete in this sector. Global investment banking revenue increased for the fifth year running in 2007, to $84.3 billion. These were up 21% on the previous year and more than double the level in 2003. Despite a record year for fee income, many investment banks have experienced large losses related to their exposure to US sub-prime securities investments. Though the tremors of the US Sub-prime crisis were felt early last year, the gravity of the situation was underplayed and a turnaround was expected or rather wished for. But a year down the line the situation has spiraled beyond control threatening the US Financial System (seeking a USD 700 Bn bailout package). In less than two weeks 5 of the largest IBs (2 converted into commercial banks) have crumbled announcing the death of IBs on Wall Street and making the Securities Exchange Commission (SEC) regulator for I-Banks in the US basically redundant. Below is a brief synopsis of the debacle of the mighty I-Banks:
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Lehman

Brothers

–

Filed

for

Bankruptcy – Chapter 11 – rescued by Barclays Plc / Nomura Bank
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Baer Sterns – Rescued by J P Merill Lynch – Part assets taken

Morgan Chase Bank
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over by Bank of America
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•

Goldman Sachs – Converted into a Commercial Bank and will hence

come under stringent bank. Looking to purchase smaller commercial banks with huge deposits • Morgan Stanley - Converted into bank. May be sold to Wachovia Corp

Investment banking-India
The economic liberalization in India has witnessed increased economic activities of foreign investors in India through investment banks. India has become one of the most preferred destinations for investors. As a matter of fact a large number of investment banks have opened shops in India to encash on the India Growth Story. Indian companies are now more research oriented than ever before. Investment Banks in India like Citigroup, Morgan Stanley, Merrill Lynch, and Deutsche Bank are selling the India story to their global clients. Investment Banks in India have posted over 50% a year returns from the equity markets in the last few years. Citigroup held the first India Investor Conference in the country, where large cap companies and many mid-cap companies made presentations to institutional investors. Deutsche Bank took their top investors to the facilities of blue-chip Indian companies. Over 150 top institutional investors of Citigroup from the US, Europe, the Asia-Pacific region, and Japan attended the conference. Merrill Lynch held investor conference, which was attended by over 150 FII clients from all over the world. The objective of these investor conferences is to help the client realize the happenings of the Indian financial market.

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

Current Scenario - India
Given the current market scenario in India Investment bankers have started bearing the brunt of the slowdown in IPO’s and mergers and acquisitions. Investment banking fees in India have dropped to Rs. 216 in Cr. in comparison to Rs. 771 crore for the calendar year 2007, indicating a drop of 57.9 per cent on year-on-year basis (source: Business Line article dated September 11, 2008). The article also mentions that the average percent fees have declined to 1.21 per cent so far this year from 2.24 per cent in 2007. The IPO pipeline has almost fully dried up, while there has been a dip in private equity and M&A deals. In contrast, investment banking fees have fallen only 19 per cent in the Asia-Pacific region. The fall is more in India because the market is high beta, while cross-border volume of M&A deals has declined by 51.1 per cent from the same period last year. Interestingly, loan syndication grew 66 per cent compared to a 69.4 per cent fall in equity capital market activity. State Bank of India topped the overall i-banking league table with 31 deals amounting to $31.3 million followed by Merrill Lynch with 18 deals worth $26.3 million. Lots of companies have withdrawn or postponed their IPO’s this year for the same reason. Private equity activity has also witnessed a

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deceleration after some of the PIPE deals (private equity in public enterprise) turned sour. Energy, power and telecom were the main contributors to the revenues with 50 and 18 deals respectively. While energy sector saw the much coveted IPO of Reliance Power, there were some important deals in telecom such as the Idea-Spice merger and stake sale in Aditya Birla telecom to Providence equity partners. Reliance Power IPO of Rs. 11,563 crore incurred a merchant banking fee of Rs. 50.46 crore, amounting to 0.44 per cent of the issue size. Excluding Reliance Power, the percentage fees during 2007 to 2008 till date is in the range of 3.17 percent to 3.67 per cent (source: Business Line article dated September 11, 2008) Kotak Mahindra Bank topped the equity capital market mobilization chart, which includes follow-on offerings, IPO’s and convertibles. The Finance Minister has assured investors that the Indian Economy will not be affected by the recent mayhem on Wall Street. The only major exposure to the turmoil being that of ICICI Bank to Lehman Brothers, which is no reason to set the alarm bells ringing. The Indian Story is intact!

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Introduction to J. P. Morgan
“Our aim is to be the world’s most trusted and respected financial services institution.”
J.P. Morgan is a leader in financial services, offering innovative and intelligent solutions to clients in more than 100 countries with one of the most comprehensive global product platforms available. We have been helping our clients to do business and manage their wealth for more than 200 years and we keep their interests foremost in our minds at all times. This combination of product strength, intellectual capital and character sets us apart as an industry leader. J.P. Morgan is part of JPMorgan Chase & Co. (NYSE: JPM), a global financial services firm with assets of $2.0 trillion.

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Investment Banking With Reference To J.P. Morgan Businesses:
J.P. Morgan is a leader in asset management, investment banking, private banking, treasury and securities services, and commercial banking. Our broad global platform and strength enable us to create long-lasting value for clients.

J.P. Morgan is a leader in asset management, investment banking, private banking, treasury and securities services, and commercial banking. Today, the firm serves one of the largest client franchises in the world, including corporations, institutional investors, hedge funds, governments and affluent individuals in more than 100 countries. J.P. Morgan's core businesses include:
• • • • • •

Asset Management Investment Bank Private Banking Securities Services Treasury Services Commercial Banking

Asset Management
Asset Management provides institutional, high-net-worth and individual investor clients with high quality global investment management in equities, fixed income, real assets, hedge funds, private equity and cash liquidity. By building a reputation for investment excellence and superior service, J.P. Morgan Asset Management has become one of the largest asset managers in the world. J.P. Morgan Asset Management is a leading asset manager for institutions, individuals and financial intermediaries, worldwide. Our investment professionals are located around the world providing strategies that span the full spectrum of asset classes including equity,
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fixed income, cash liquidity, currency, real estate, infrastructure, hedge funds and private equity. Specific products may differ by market.

Investment Banking
J.P. Morgan is committed to meeting the evolving investment banking needs of its clients and remaining in the forefront of market innovation. The firm provides clients with first-class merger and acquisition advice, debt and equity capital origination, restructuring capabilities, prime brokerage, risk management and research. It also participates in proprietary trading and investing and market-making in cash and derivative instruments around the world. As one of the world's premier investment banks, J.P. Morgan serves the needs of our clients by offering a world-class platform coupled with straightforward, intelligent advice. We attribute our longterm success to our commitment of always putting clients' interests first. Whether it's raising capital to meet growth objectives or identifying strategic business partners, J.P. Morgan offers M&A advisory, capital markets, prime brokerage, restructuring, risk and research platform of unrivaled strength and scale. We were founded more than 200 years ago and have a proud history of, in the words of one of our founders, doing "only first-class business... in a first-class way."

Private Banking
J.P. Morgan understands the complex challenges and opportunities that individuals and families of wealth face. In its advisory capacity, J.P. Morgan helps its clients to protect and grow their wealth across generations, creating the potential for them to achieve the vision they seek for themselves, their families, their businesses and their legacies. Clients benefit from a diverse range of expertise spanning investments, wealth structuring, trust and estate planning, credit, banking and risk management At J.P. Morgan, our mission is simple: first class business… in a first class way. In everything we do, excellence and integrity are the guiding principles. Excellence means more than 160 years of experience and knowledge that comes from solving the complexities of significant
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wealth, day in and day out. We augment this knowledge with some of the boldest, most innovative thinking today. Integrity means keeping your interests front and center always and carrying out our work with utter discretion. Whether you are a business owner, executive or member of a family enterprise, we endeavor to create risk-adjusted strategies to help you achieve your goals. Working hand-in-glove with your advisors, and bringing together the strengths of the global J.P. Morgan family as well as external best-in-class resources.

Security Services
J.P. Morgan is a premier securities servicing provider that helps institutional investors, alternative asset managers, broker dealers and equity issuers optimize efficiency, mitigate risk and enhance revenue. J.P. Morgan leverages the firm's unparalleled scale, leading technology and deep industry expertise to service investments around the world. Worldwide Securities Services J.P. Morgan Worldwide Securities Services is a premier securities servicing provider that helps institutional investors, alternative asset managers, broker dealers and equity issuers optimize efficiency, mitigate risk and enhance revenue. Worldwide Securities Services leverages the firm's unparalleled scale, leading technology and deep industry expertise to service investments around the world. It has $13.7 trillion in assets under custody and $5.1 trillion in assets under administration.

Treasury Services
Treasury Services provides innovative payment, collection, liquidity and investment management, trade finance, commercial card and information solutions to the world's leading

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companies, governments, regional banks and global financial institutions. We have a presence in 39 countries, treasury employees in 40 U.S. states and a supporting branch network in 17 states. Our clients range from small businesses to some of the world's largest multinational corporations, governments, regional banks and global financial institutions.

Commercial Banking

Commercial Banking provides the complete product offering of JPMorgan Chase, including lending, treasury services, investment banking and investment management to corporations, municipalities, financial institutions and not-for-profit entities with annual revenues generally ranging from $10 million to $2 billion. Commercial Banking serves more than 26,000 clients nationally, including corporations, municipalities, financial institutions and not-for-profit entities with annual revenue generally ranging from $10 million to $2 billion, and nearly 30,000 real estate investors and owners.
Commercial Banking offers its clients industry knowledge, experience, a dedicated service model, comprehensive solutions and local expertise. The firm’s broad platform positions us to deliver extensive product capabilities – including lending, treasury services, investment banking and asset management – to meet our clients’ U.S. and international financial needs.

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Culture
“I should state that at all times the idea of doing only first class business, and that in a first class way, has been before our mind”

J.P. Morgan, Jr. used these words at a Senate Sub-Committee hearing in May 1933. More than 70 years later, "first-class business in a firstclass way" continues to describe the way we work in over 50 countries around

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the world every day. By holding the firm and our employees to the highest ethical standards in support of clients, we have remained among the world’s most trusted and respected financial services institutions. Our clients appreciate that we understand their needs and act in their interest. Our focus on partnership, our emphasis on trust, and our desire to constantly perform better also helps us attract like-minded colleagues from the broadest, most intelligent talent pool in the world. We hire people who are driven to perform, who keep their word and who hold themselves to the highest standards.

People
“Along with our reputation, our people are most valuable asset”

In an industry as dynamic, innovative and complex as financial services, we need the very best employees. We are deeply committed to cultivating an inclusive environment where everyone can succeed based on merit. We believe no barrier should inhibit an individual from performing to his or her full potential. We – and our clients – have experienced first-hand the benefits of being actively inclusive, operating as a meritocracy, and embracing diversity to harness the talent and experience of our best individuals. These, and other, aspects of our culture enable creativity and entrepreneurship to thrive. To help us identify individuals for positions in the firm, J.P. Morgan has relationships with university and graduate school programs located across the globe. New recruits can look forward to further leadership training
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once they have been hired. Visit the Careers site to learn more. J.P. Morgan's global alumni network provides former employees with networking opportunities while promoting the ongoing benefits of being associated with the firm. By joining, alumni are able to participate in J.P. Morgan-hosted events with speakers, gain business insights from associating with former colleagues and current employees, and participate in networking events

Values
“our values are reflected in the way that we conduct our business and in the first class results that we consistently achieve for our clients” Our values are reflected in the way that we conduct our business and in the results that we consistently achieve for our clients. We believe that shareholders will benefit as we do the right thing for our clients and the communities we serve.

Character, Strength and Intelligence define our distinctive way of doing business. These values also make J.P. Morgan an outstanding place to start a career. When we asked our people why they joined and why they stay, these values came through in their reasons. In fact, the same six reasons came up again and again.

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J. P. Morgan in India
India is an important focus for J.P. Morgan’s expansion in the Asia Pacific region. The lines of business include the Investment Bank, Private Equity, Asset Management and Treasury and Securities Services. J.P. Morgan offers clients an integrated range of services that combine specialist local knowledge with leadership positions across these lines of business. Additionally, J.P. Morgan has a large Global Service Center in India that is rapidly expanding in scope and size. The service center has delivered process innovations that benefit our lines of business and support operations across the world. The firm's roots in India date back to 1930 when it started a representative office. From being a founding shareholder of ICICI in 1955, to establishing the first international investment bank in India in 1993, J.P. Morgan's commitment to India is well established. This is further illustrated by the work done by the firm in cooperation with the Ministry of Finance, Reserve Bank of India and various Ministries within the government of India.

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As the history of the firm in India shows, J.P. Morgan continues to take a long-term approach to client solutions. Learn more about J.P. Morgan's presence across Asia Pacific. We are a leading financial services firm with global expertise and reach. Our operations in India span Investment Banking, Private Equity, Asset Management and Treasury and Securities Services. We offer clients an integrated range of services which combine specialist local knowledge with leadership positions across these lines of business. Additionally, we operate a Global Service Center in India which is rapidly expanding in scope and size. Our service center has delivered process innovations which benefit the firm's lines of business and support operations across the world. Local operations are linked to the world's major financial hubs of New York, London and Hong Kong by a global distribution network.

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History
By the time you get to the end of this sentence, we'll have changed. As the markets constantly move, so do we. Our innovation and ability to stay ahead are what give our clients the edge to meet their strategic needs, today and tomorrow. Since our inception some 200 years ago, we've evolved to offer the whole spectrum of global banking and financial services - and in many cases helping to define them. It is the combination of character, product strength and intellectual capital that sets us apart as an industry leader. We invented the concept of relationship banking back in the nineteenth century and we are still doing first-class business in a first-class way. At J.P. Morgan, we have been helping our clients to do firstclass business for more than 200 years. Throughout that period, we have taken a long-term approach to client solutions - providing committed, innovative and consistent advice and execution to our clients at all times. We look forward to providing our clients with first-class service over the next 200 years

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As a firm, we have a history of showing leadership, especially during times of financial crisis. We continue to build on that legacy. From our earliest days, we have contributed to business, society and world affairs. Our actions have always been driven by the desire to do the right for today and tomorrow. At J.P. Morgan, we've been helping our clients do business for more than 200 years. From our earliest predecessors to the present, we have contributed to business, society and world affairs. We continue to take a longterm approach to client solutions - providing clients with first-class business in a first-class way. Take a tour of J.P. Morgan history & heritage on our interactive timeline. Our roots stretch back to 1799 with the creation of the Bank of the Manhattan Company. J.P. Morgan & Co. was founded in New York in 1871 as Drexel, Morgan & Co. by Philadelphia banker Anthony Drexel and J. Pierpont Morgan, a historical figure in business. We've never been a purely U.S. bank, either. Our roots in Europe go back to 1838 and we've been in Asia since 1872. In 1901, we created the world's first billion-dollar corporation. In 1907 we saved several trust companies and a leading brokerage house from insolvency, bailed out New York City and rescued the New York Stock Exchange. Take a tour of J.P. Morgan history & heritage on our interactive timeline.

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J. P. Morgan Background Summary
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan, Chase and WaMu brands. J.P. Morgan offers M&A advisory, capital markets, prime brokerage, restructuring, risk and research platform of unrivaled strength and scale. Investment Banking Analyst In Corporate Finance, you work with top-tier professionals at the heart of a leading global investment bank. You will be engaged with clients from major corporations, financial institutions and governments. Following

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training, you immediately assume significant responsibility in a team environment for marketing, structuring and executing deals.

Merger of J. P. Morgan
In July 2004, the merger of two powerful and globally renowned institutions, JPMorgan Chase & Co and Bank One, created one of the world's most dominant financial service corporations. And as the 2008 merger with Bear Stearns illustrates, J.P. Morgan continues to demonstrate market leadership. Firm-wide, we now have top-tier positions in both business-tobusiness (wholesale) and mass-market (retail) banking, alongside a more balanced earnings stream, greater scale and financial strength. Our retail businesses operate under the Chase brand. Within our wholesale businesses, it's the future of the Investment Bank, Asset Management and Treasury and Securities Services that we're shaping by hiring the very best graduates across the globe.

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Our mission now is a simple one: to be the best financial services company in the world. In this, we're certainly inspired by our history. But we're more excited by the future. J.P. Morgan is one of the leading merger and acquisitions advisory firms today, ranking atop many of the rankings for this sector. The firm’s indepth expertise extends to a wide range of strategic M&A transactions, including asset purchases and dispositions, restructurings and reorganizations. With its strong relationships with many of the leading financial sponsors groups, J.P. Morgan is also able to help clients gain access to today’s growing pool of private equity financings. The M&A business is a critical component underpinning the firm's global integrated model and leading financing franchise. J.P. Morgan’s dedicated corporate defense team also has significant expertise and experience in providing corporate defense advisory services to clients in public and private situations.

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Global locations
J.P. Morgan has clients in over 100 countries and offices in over 50 countries. Depending on your role, working here gives you the opportunity to have an international career. You may find yourself interacting with colleagues and clients from all over the world on a daily basis. To view J.P. Morgan's global locations, drag the map with your mouse and double-click to zoom, or use the guide to pan around the globe. Please note that not every location has programs for Analysts and Associates.

Employee Networks
J.P. Morgan has more than 70 Employee Networks, initiated by and for employees, in locations across the globe. These are groups of

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employees of a common cultural heritage, gender, age, or interest. They are valued organizations within the firm and are actively supported by management. Employee Networks provide their members with a forum to communicate and exchange ideas, build a network of relationships across the firm, access to volunteer opportunities in the community, and support for career development and mentoring. More than 20,000 of the company's employees worldwide participate in one or more Employee Network.

J. P. Morgan mission
At J.P. Morgan, we've been helping our clients do business for more than 200 years. From the start, we have contributed to business, society and world affairs - doing first-class business in a first class way. And this has everything to do with our people. Along with our reputation, our people are our most valuable asset. In an industry as dynamic, innovative and complex as financial services, we need the very best employees. Being a first-class firm also means doing 'good', not just doing well. J.P. Morgan has a proud tradition of being a good corporate citizen around the world. We dedicate significant financial and human capital to supporting issues and causes important to our business and our people.

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Our mission is to be the best financial services company in the world. To achieve this goal, we focus relentlessly on carrying out our business principles, which are fundamental to everything we do:
• • •

Aspire to be the best Execute superbly Build a great team and a winning culture This is what we strive for - no matter what business area or region - to

achieve world-class results. Our client-focused approach drives our innovative products and solutions, always maintaining that stamp of quality and integrity. Clear goals demand a transparent organization. And we are just that. We know a company is only as strong as its people, so you can expect to join a diverse team and an inclusive environment that operates with the highest standards of integrity. Talk to anyone at J.P. Morgan, and it won't be long before they mention the quality of the people around them and the willingness of colleagues to offer support and encouragement.

Products of J. P. Morgan
1.

Equities:
J.P. Morgan is a global leader in providing a wide range of innovative

equities solutions to investor and issuer clients — from initial public offerings, secondary placements and equity-linked structures, to private placements, equity derivatives products, and block and portfolio trading services. We continually refine our product offerings to provide cutting-edge ideas, superior execution and state-of-the-art tools for today's changing markets. We offer institutional investors, corporates, distributors and affluent individuals the following products and services:

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•

Worldwide trade execution services across all exchanges and

electronic networks.
• • •

Program and special equity trading services. Transition management services across all asset classes. Sales, trading and research services on equity-based derivatives, as

well as risk management applications and structured products.
•

A full range of equity-linked services, including competitive

pricing and complex structuring for new equity-linked issuances, innovative ways to increase conversion premiums for issuers, and sales and trading services for institutional clients.
•

Equity structuring and sales services in the primary markets,

including initial public offerings, follow-on offerings and convertible securities.
•

Clearance of OTC interest rate and credit derivatives, foreign

exchange, OTC commodities and fixed income securities.
•

Futures

and

options execution

and

clearing

services

on

approximately 70 exchanges globally.

2. Credit Markets: J.P. Morgan is a global leader in credit markets, which includes:
• • • • •

Structured Credit Collateralized Debt Obligations Tax-Exempt Capital Markets Prime Brokerage Transition Management

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•

Structured Credit:
J.P. Morgan’s Structured Credit team is the area with expertise

in credit derivatives, structured products and collateralized debt obligations globally. Structured credit products are used by clients to achieve many financial objectives, including yield enhancement, credit risk management, capital efficiency and benchmark outperformance.
•

CDOs: Collateralized Debt Obligations (CDOs) are structured fixed income securities with cash flows linked to the performance of debt instruments. Issuers of CDOs include commercial banks, insurance companies and money managers, who use the products to either gain regulatory capital relief and manage their credit exposure or lock in term funding and incremental fee income. CDOs are an emerging asset class offering value to investors and are rated by the major rating agencies accordingly.

•

Tax- Exempt Capital Market:
J.P. Morgan has one of the industry’s leading Tax-Exempt

Capital Markets franchises. The team includes the following groups:
•

Municipal Banking, including public finance activity and credit

origination for general governmental, transportation, energy, housing and corporate-backed client sectors.
• • •

National healthcare, higher education and cultural institutions Municipal Bond Sales, trading, syndicate and research Tax Exempt Derivatives
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•

Infrastructure Finance

3. Rate Markets:
J.P. Morgan is one of the global market leaders in fixed income providing market leading liquidity across fixed income securities and OTC derivatives. We provide our clients with a comprehensive range of products and solutions that are structured to meet their specific fixed income investment, risk management and financing requirements. Across the G10 currencies, from a government bond trade to the most complex structured interest rate note, clients are able to transact seamlessly across a full product suite including:
• • • • • •

Sales & Marketing Electronic Trading Exotics and Hybrids Research Foreign Exchange Prime Brokerage The sales force is aligned against specific countries,

•

Sales and Marketing:

industries and clients, offering custom-tailored strategies adapted to each client's business imperatives, trading/hedging style, investment preferences and risk appetite. The design and implementation of tailored solutions extend beyond client-specific hedging issues and include bespoke advice on asset and liability management and investment. We are committed to being quick and responsive to client demand, with dynamic pricing and the ability to absorb significant risk across all regions globally.

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•

Electronic Trading:
J.P. Morgan has a fully integrated electronic client solutions group providing a range of products across the asset classes, including pretrade, trade and post-trade solutions to a broad client base. We deliver instant access to our liquidity and product expertise, giving our clients unparalleled access to our range of fixed income products. We offer proprietary risk management tools, enabling clients to measure, quantify and manage their financial exposure. J.P. Morgan provides access to the bank's liquidity in the fixed income space through the following electronic channels:

• Trade Web • Bloomberg • Bond Vision • Trading Screen J.P. Morgan led the ecommerce innovation in the Interest Rate Derivative OTC market via its strategic involvement in the Request for Quote (RFQ) trading protocol on the TradeWeb platform, where J.P. Morgan is the top ranked liquidity provider. We also offer an extensive suite of OTC products on our Bloomberg JPSX page with extensive pricing for OTC rates products.
•

Exotics and hybrid:
Our exotics and hybrids group develops and trades highly

structured, complex derivatives which span multiple asset classes. The group
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has enjoyed considerable growth in recent years, and has expanded its product range beyond "traditional" interest rate and FX underlying assets. These innovative trade structures allow clients to express combined views across the rates, commodities and equities spaces, enabling them to address specific correlated risks that are not otherwise achievable through trading standard market instruments. The group has worked closely with J.P. Morgan's fixedincome/rates and derivatives research to develop proprietary Tradeable Index Strategies to allow investors to gain exposure to key asset classes, benchmarks, and dynamic trading strategies.
•

Research:
As part of J.P. Morgan's award winning global research group, our economic and derivative research delivers comprehensive and innovative research products to assist clients in their hedging, trading and investment decisions in Rates. The fixed-income strategy team supports the firm's clients in the fixed income securities, OTC derivative and futures and optionsmarkets. The team publishes weekly, monthly and quarterly analysis on all aspects of the fixed income markets. In addition, the team works closely with individual clients providing analysis to meet their specific needs.

MorganMarkets, the firm's research website, provides a single point allowing clients to access all of J.P. Morgan's analysis and commentary on a timely basis.

4. Foreign Exchange

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J.P. Morgan is a top tier liquidity provider in global FX markets offering competitive pricing across 300 currency pairs in cash and derivative products. We offer a full spectrum of currency services - from plain vanilla to exotic options; from major currencies to emerging markets. Options specialists are located in all major FX centres, to support our clients' needs. Treasury Online Treasury OnLine is a customisable set of online treasury management tools developed by J.P. Morgan's Investment Bank and Treasury Services business to meet the specific needs of corporate clients. The solution offers an integrated platform across FX trading and treasury management. It delivers critical reporting and transaction capabilities for FX dealing, risk analysis, inter-company netting and cash flow forecasting. Through Treasury OnLine corporates can take advantage of an easy-to-implement, cost effective solution that delivers convenient access to transaction tools and exceptionally rich critical data in real-time. Tools include a Dealing module through which clients can execute FX deals, such as spots, forwards and swaps - both inter-company and externally, electronically linking operating units to the corporate's head office and automating manual processes in line with treasury policy. Clients also benefit from a Risk module which enables the analysis and management of currency exposures against a defined treasury policy at all levels within the organisation. A multilateral, multicurrency netting module offers the functionality to consolidate payments, manages disputes, execute FX deals and settle transactions.

Sales and Trading

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J.P. Morgan has sales teams based in three major foreign exchange hubs: New York, London and Tokyo. We are also a market leader in Latin America, Eastern Europe and Asian Emerging Markets, with a local sales and market-making team in many of these locations to ensure we are on-hand to respond to our clients with the best advice. Our market-leading FX and e-Commerce solutions give our clients a competitive advantage for pre-trade, trade and post trade through:
•

Fast, competitive and consistent pricing in spot, forwards, options,

non-deliverable forwards, and cross-currency swaps.
•

Trading activity in all freely convertible currencies - with 24-hour

coverage - as well as all major emerging market currencies where we provide onshore and offshore capabilities.
•

Market-leading economic, fundamental and technical research and

value-added strategy recommendations.
•

Design and implementation of tailored solutions including

accounting and taxation advice.
•

Responsive provision of foreign exchange liquidity offering

dynamic and tailored solutions. Research J.P. Morgan's award winning global research group offers comprehensive foreign exchange, economic and derivative research and analysis to assist clients in their hedging, trading and investment decisions. The team publishes weekly, monthly and quarterly reports on all aspects of the foreign exchange

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markets. In addition, the team works closely with individual clients to provide tailored analysis to meet their specific needs.

5. Commodities
J.P. Morgan’s Global Commodities group is responsible for the sale of commodity financial products, as well as options and selected physical commodities, to institutional and corporate clients around the world. Products include Precious Metals, Base Metals, Agricultural Commodities and Energy. With extensive experience in creating risk management solutions, J.P. Morgan is able to meet the needs of both issuer and investor clients. J.P. Morgan is an active market maker in the traditional softs and agricultural sub-indices (GSAG, DJAIGSO) and their options. We market innovative structured baskets that revolve around the underlying products. Through our Futures and Options Desk, we have a strong presence in the various commodity exchanges: CBOT, NYBOT, NYMEX, Euronext.LIFFE, ICE, TGE, CME and TOCOM. With extensive experience in creating risk management solutions, J.P. Morgan is able to meet the needs of both issuer and investor clients. J.P. Morgan has demonstrated its innovative capabilities in:
• •

Derivatives Pension Advisory
o o

LifeMetrics Hedge Fund Beta Benchmark

• •

Prime Brokerage Transition Management
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•

Vendor Protection

Prime Services:
J.P. Morgan offers a comprehensive range of research, sales, execution, clearing and reporting services to clients globally. Given our demonstrated leadership and expertise, clients turn to us as a trusted partner to help them effectively run their businesses and support their clients. We are committed to delivering the extensive capabilities of the entire firm to clients across:
• • •

Broker Dealer Services Futures & Options Prime Brokerage

6. Emerging Markets
J.P. Morgan serves Emerging Markets clients across origination, derivatives, trading, foreign exchange and research. Our global approach to Emerging Markets provides maximum reach, while a local presence in each market ensures client accessibility. Our focus is on selective, strategic opportunities to participate in developing and fast-growing local markets in Brazil, Colombia, Russia, the Middle East, China and India. The Emerging Markets Research team analyzes sovereign and credit risk in Latin America, Central and Eastern Europe, Africa, the Middle East and Asia ex-Japan, and makes strategic recommendations for debt issued in both international and local capital markets.

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The team also publishes a suite of bond indices, including the J.P. Morgan Emerging Markets Bond Index Global (EMBI Global), which tracks total returns for U.S. dollar denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds. Currently, the EMBI Global covers 188 instruments across 33 countries.

7. Securitized Products
The Securitized Product Group originates, underwrites / securitizes and trades Asset Backed Securities (ABS). These include:
• • • •

Commercial Mortgage Backed Securities (CMBS) Real Estate Finance (REF) Asset Backed Commercial Paper Conduits (ABCP) Residential Mortgage Backed Securities (RMBS), including cash

and synthetic products Access the Mortgage Securities confirmation agreement.

8. Structured Products
J.P. Morgan is a leader in structured products across asset classes. Our expertise covers equities, fixed income, credit, currencies and commodities, funds and alternative investments. Structured products, also known as structured investments, can provide enhanced return and increased diversification for client portfolios, and are sold through distributors to high net
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worth individuals and retail investors around the world. Learn more about J.P. Morgan's offering in your region:

9. Principal Investment Management
Principal Investment Management seeks to invest firm capital in attractive, long-term investment opportunities across multiple asset classes and geographies. Our professionals currently invest in Private Equity, Mezzanine, Real Estate, Hedge Fund Equity, and Tax-Oriented Investments. We have investment professionals in New York, Chicago, Los Angeles, London, Hong Kong, Sydney and Mumbai.

Conclusion
At JPMorgan Chase, we believe that being profitable and doing good works for the people and the world around us aren't exclusive of each other; they're integrated goals. When our business is strong and well governed, we're in a better position to translate positive financial results into sustainable community and environmental efforts that benefit everyone. This is the essence
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of corporate responsibility. Every day, we strive to make our firm a good corporate citizen - and the most respected financial services institution in the world. These reports demonstrate our approach. J.P. Morgan serves one of the largest client franchises in the world and is a leader in asset management, investment banking, private banking, treasury and securities services, and commercial banking. Our combination of product strength, intellectual capital and character has enabled the firm to achieve leadership positions in all of the sectors that it competes in. The JPMorgan brand is used by the Investment Bank as well as the Asset Management, Private Banking, Private Wealth Management, and Treasury & Securities Services Divisions. Fiduciary activity within Private Banking and Private Wealth Management is done under the aegis of JPMorgan Chase Bank, N.A.—the actual trustee. The Chase brand is used for credit card services in the United States and Canada, the bank's retail banking activities in the United States, and commercial banking. JP Morgan Chase is one of the Big Four Banks of the United States with Bank of America, Citigroup and Wells Fargo.

India: RBI keeps rates unchanged
 the mid-term review of the annual policy today, the central bank kept  At the key policy rates and the cash reserve ratio (CRR) unchanged. The repo rate and the reverse repo rate remain at 8.0% and 6.0%, respectively, while the CRR is maintained at 6.5% of the net demand and time liabilities. The neutral stance towards policy rates is in line with our expectations.

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In the accompanying policy statement, the central bank emphasized maintaining financial stability in the domestic markets. Indeed, the RBI noted that the mandated statutory liquidity ratio at 25% and the CRR at 6.5% have been critical in strengthening the domestic banking system. The central bank also re-emphasized its concerns about the pace of credit growth and the evolution of credit quality. Further in the statement, the central bank reiterated its intention of acting swiftly with conventional as well as unconventional methods highlighting its priority of maintaining financial stability. The RBI today doubled the all-in-cost ceiling for trade credits less than three years to 200bp above six-month Libor. The central bank had acted aggressively to manage liquidity in the past few weeks and today’s statement restated its readiness to undertake further measures to improve the domestic liquidity situation. Importantly, while noting that it will maintain a close vigil to prevent liquidity pressures in the domestic markets, the central bank also stated that it could also act to check the excesses in liquidity if any. The RBI highlighted the downside risks to the domestic growth outlook, triggered by weaker-than-anticipated global economic activity. The central bank has thus lowered its growth projections for the current fiscal year to 7.5%-8.0% against the earlier expectations of around 8.0%. However, the end-March inflation target of 7.0% has been maintained. J.P. Morgan maintains the real GDP growth forecast of 7.0% for this fiscal year, with expectation of further moderation in next year’s growth to 6.8%. J.P. Morgan expects the central bank to further ease the policy rates beginning next calendar year. We expect the RBI to lower the repo rate
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by 50bp each at the April and July policy meetings. However, we do not rule out further cuts in the CRR this year. Indeed, the central bank could further lower the CRR by 100bp till December-end this year, although this would be critical on the evolving liquidity situation.

Recent awards
• Best Cash Management Specialist, Financial Institutions, The Asset, 2008 • Best Cash Management Specialist, Liquidity Solution, The Asset, 2008 • Best Bank for Liquidity Management in North America, Global Finance, 2008 • Best Bank Award – United States, Global Finance, 2008 • Best Overall Bank for Payments and Collections in North America, Global Finance, 2008 • J.P. Morgan Named One of "100 Great Supply Chain Partners" - Global

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Logistics and Supply Chain Strategies, 2008 • Cash Management Provider of the Year (for Liquidity Management), ICFA European Award, 2008 • Best Trade Services Provider - Trade & Forfaiting Review, 2008 • Best Liquidity Solution Provider, The Asset, 2007 • Best Regional Specialist, Financial Institutions - The Asset, 2007 • Best Supply Chain Finance Bank - Trade & Forfaiting Review, 2007

Ranking of Investment Banks

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Findings and suggestions:
• From the project main finding is the amount of revenue are getting from investment banking services are equal to commercial banking revenues. • Investment bankers have more competition from foreign banks. • Foreign banks are playing more roles in mergers and acquisition deals. Suggestions: • Investment bankers have to concentrate on the advertisements. • And also they have to offer more products equal to their competitors. • They have to give effective services to the clients.

CASE STUDIES
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Case study 1: Initial Public Offering (IPO) – RELIANCE POWER
 Date of Issue – January 15, 2008 to 18

January , 2008
 Issue Size – 260,000,000 Equity Shares of Rs.

10 each
 Price Band – Rs. 405 ~ Rs. 450

 Issue Price – Rs. 450/-

 Date of Listing : February 11, 2008

 BOOK RUNNING LEAD MANAGERS (BRLM) / INVESTMENT BANKERS • Kotak Mahindra Capital Company Limited • UBS Securities India Private Limited • ABN AMRO Securities (India) Private Limited • Deutsche Equities India Private Limited, • Enam Securities Private Limited, • ICICI Securities Limited, • JM Financial Consultants Private Limited and • J P Morgan India Private Limited

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 CO BRLM

• Macquarie India Advisory Services Private Limited and SBI Capital Markets Limited  LEGAL ADVISORS • Domestic Legal Counsel to the Company - Amarchand & Mangaldas & Suresh A. Shroff & Co. • Domestic Legal Counsel to the Underwriters - J. Sagar Associates • International Legal Counsel to the Underwriters - Cleary Gottlieb Steen & Hamilton LLP  Syndicate Members/ Underwriters – these are intermediaries registered with SEBI or as brokers with BSE/NSE who are eligible to act as underwriters. They are appointed by the BRLMs and CBRLMs • Reliance Securities Ltd. • Kotak Securities Ltd. • ABN Amro Asia Equities (India) Limited • JM Financial Services Private Limited • Karvy Stock Broking Limited • SBICAP Securities Limited
 Credit Rating Agency – CRISIL Limited – IPO Grade 4/5 and ICRA

Limited – IPO Grade - 4  Bankers to the Issue and Escrow Collection Banks

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• ABN Amro Bank N.V. • Axis Bank Limited • HDFC Bank Limited • The Hong Kong and Shanghai Banking Corporation Limited • ICICI Bank Limited • Kotak Mahindra bank Limited • Standard Chartered Bank  Bankers to the Company • ICICI Bank Limited • HDFC Bank Limited  Joint Statutory Auditors to the Company • Chaturvedi & Shah, Chartered Accountants • Price Waterhouse, Chartered Accountants  Monitoring Agent • IDBI Limited
 Trustees to the Issue – As the Issue is of Equity Shares, the appointment of

trustees is not required.
 Registrar to Issue and Share Transfer – Karvy Computershare Private

Limited

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Investment Banking With Reference To J.P. Morgan Case study 2: Mergers & Acquisitions
Merger – Bharti – Vodafone India’s leading GSM players Bharti Airtel, Vodafone Essar and Idea Cellular announced the merger of their wireless infrastructure businesses in 16 circles to share 70,000 tower units and also form the world’s largest ‘independent’ tower company called Indus Towers Ltd. Bharti and Vodafone will each have a 42% equity in this infrastructure firm, while Idea Cellular will hold the remaining 16%. The number of towers being merged into the new company is in proportion to the shareholding in the new company. The move will enable all three service providers to increase efficiencies and reduce expansion costs. The three companies will each merge their existing passive infrastructure assets in 16 telecom circles in India. Indus Towers will provide passive infrastructure services to all operators on a nondiscriminatory basis. Indus Towers will enable optimisation of future tower roll-out and enhanced operational efficiency leading to opex (operational expenses) and capex (capital expenditure) savings for its customers. The Indian consumer will benefit through improved network reach and quality, more choice and significantly greater access to mobile services across the country. Even amidst fierce competition, all service providers in India, the world’s fastest growing mobile market, are working towards large scale sharing of passive infrastructure to cut down on expansion costs and keep tariffs low even as they extend their footprint to rural India. Lower capex and opex are key to offsetting the low usage from new subscriber additions beyond the large towns and cities. India added over 8 million new wireless users in October, taking the country’s mobile subscriber base to over 217 million.
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Investment Banking With Reference To J.P. Morgan Case study 3: Beam Global’s Successful Travel Card Program Sees Further Improvement With Corporate Card And Expense Management Integration Overview
Beam Global Spirits & Wine, Inc. is one of the world's largest premium spirits companies and the largest U.S.-based spirits company. Headquartered in Deerfield, Illinois, Beam Global's Shared Services and Treasury department manages the travel card program for four separate operations, including its U.S. corporate office, two production plants based in Ohio and Kentucky, and Future Brands LLC, its U.S. sales and distribution joint venture with the Absolut Spirits Company. More than 900 U.S. Beam Global employees travel within the U.S. and around the world.

Challenge
Even though Beam Global's travel card program had reached a successful 90 percent utilization rate – significantly higher than the industry's average utilization rate of 70 percent -- the company sought to further improve program compliance and shift responsibility for expense reconciliation to their cardholders and managers, while streamlining and improving its expense reporting system. When Beam Global combined their existing J.P. Morgan Corporate Card program with an automated expense management solution from Concur, they defined the following goals:
•

Improve program compliance and reduce the rate of delinquent

expense reports

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•

Deploy an effective solution that would easily integrate with

existing J.P. Morgan Corporate Card program and upcoming SAP rollout
•

Gain access to real-time card usage data to enable administrators

and employees to better control T&E expenses
•

Lower administrative time and costs associated with expense

report processing
•

Leverage spend data to negotiate better rates with suppliers and

partners
•

Shorten the reconcilement and reimbursement cycle

Solution
Beam Global's shared services team was satisfied with the J.P. Morgan Corporate Card solution and decided to further optimize the card program by integrating it with Concur's on-demand expense management service to achieve even greater control and visibility. Through card program and expense management system integration, Beam Global could offer users a more efficient method of processing card expenses, gain complete transparency into transaction data, increase card spend, and take advantage of card float and volume incentives it had not been able to capture previously. “Linking the J.P. Morgan Corporate Card program with Concur's expense management system has delivered success from both a user and backoffice perspective, owing to efficiencies it has delivered,” said Mike Lippert, Senior Director, Shared Services and Treasury Operations, Beam Global. “In

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addition to saving time on expense report processing, our employees benefit from a widely accepted card and easy-to-use reporting system.”

Results
Beam Global has realized significant results through card integration with their expense management solution. It has enabled the company to:
•

reduce delinquency rates by 50 percent and significantly lower

associated late fees and time spent reconciling past due charges
•

increase its impressive card utilization rate from 90 to 95 percent,

even when card spend has increased
•

eliminate one day's worth of administrative duties each month due

to the automated upload of data files between J.P. Morgan and Concur
•

more fully leverage working capital by taking advantage of funds

availability from the card program
•

utilize automated settlement process between Concur and J.P.

Morgan, saving one day of processing per month
•

access actionable data from Concur and J.P. Morgan spending

analysis reports
•

identify opportunities for cost savings and improved rates with

suppliers and sales prospects
•

satisfy travelers with an efficient, easy-to-use system With detailed reporting from Concur and J.P. Morgan, Beam

Global is able to assess spend data by vendor, category, and division in order to identify questionable charges and audit for compliance. Concur's expense reporting service makes it virtually impossible to hide transactions as it
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Investment Banking With Reference To J.P. Morgan
automatically reports all unsubmitted credits and requires reconciliation of outstanding transactions. Using Concur with J.P. Morgan's card program has increased both accuracy and compliance due to the complementary features and benefits of both programs. Beam Global implemented its integrated T&E expense system across four sites in a staggered approach, one month at a time over a three month period. Just two months later, the company went live on SAP with the T&E card and the expense reporting data immediately integrated with their new ERP (enterprise resource planning) system without issue.

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