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UNIVERSITY OF MUMBAI
PROJECT ON:
FINANCIAL SERVICES
PROJECT BY:
NAKUL.Y.MEHTA
T.Y.BCOM (BANKING &INSURANCE)
SEMESTER-V
2010-2011
PROJECT GUIE
PROF.- MUKESH KANOJIA
M.K.SANGHVI COLLEGE OF COMMERCE &ECONOMICS
VILE PARLE (!EST)
M"#$%& '000()
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ECLARATION
I Ms. NAKUL YOGESH MEHTA Student of T.Y.BCom (Banking
& Insurance- Semester V) of Malini Kisor Sang!i College of Commerce &
"conomics# ere$% declare tat I a!e com&leted te &ro'ect on
()))))))))))))))))))))))))))* in te academic %ear +,-,-+,--. Te
information su$mitted is true and original to te $est of m% kno.ledge.
/ate of su$mission Signature of student
---------------------- --------------------
CERTIFICATE
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Tis is to certif% tat NAKUL YOGESH MEHTA of T.Y.B.com (B01KI12
& I1S3401C" 5 S"M"ST"4-V) of Malini Kisor Sang!i College of
Commerce & "conomics as successfull% com&leted te &ro'ect on
6)))))))))))))))))7 in te academic %ear +,-,-+,--. Te information is true
& original to te $est of our kno.ledge.
Signature of 8rinci&al Signature of 8ro'ect 2uide
(/r. (Mrs) Krusna 2andi) (Mukes Kano'ia)
Signature of Co-ordinator
(8ur!i /olakia)
College seal Signature of "9ternal "9aminer
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ACKNO!LEGEMENT
0n% accom&lisment re:uires efforts of man% &eo&le & tis .ork is no
different. I am grateful to te 31IV"4SITY ;< M3MB0I to a!e introduced
tis final &ro'ect of our curriculum.
=it a dee& sense of gratitude# I .is to e9&ress m% sincere tanks to m%
&ro'ect guide 8rof.))))))))))))))))))) for is su&&ort in &re&aration of
&ro'ect re&ort.
I take te o&&ortunit% to tank 8rof.8ur!i /olakia# T.Y.Bcom (Banking &
Insurance) coordinator for gi!ing me te o&&ortunit% to .ork on tis &ro'ect.
I .ould also like to e9&ress m% gratitude to.ards te li$rar% staff of M. K.
S012>VI C;??"2"# m% famil% & friends .itout .ose su&&ort m% &ro'ect
.ould not a!e $een &ossi$le.
E*ECUTIVE SUMMARY
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,-.Introduction and meaning of financial ser!ices
,+.Sco&e of financial ser!ices
,@.>istor% of financial ser!ices
,A.Indian financial ser!ices
,B.Significant factors
,C.Structure of financial s%stem
,D.<eatures of financial ser!ices
,E.T%&es of financial ser!ices In!estment ser!ice com&an%
a.Bank
$.Insurance com&an%
c.;ter financial ser!ices
d.Stock markets
e.Mutual funds
f./e$t markets
g.Inno!ati!e financial instruments
.Conglomerates
,F.<undamentals of financial ser!ices
-,.Causes for financial ser!ices
--."merging functions in marketing of financial ser!ices
-+.8ortfolio management
-@.Case stud%
-A.Conclusion
-B.Bi$liogra&%
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INTROUCTION
Te financial ser!ices sector &la%s a &redominant role in stimulating and
sustaining te economic gro.t of a nation. Till recentl%# te &u$lic
sector institutions a!e $een so.ing dominance in all te areas of
financial ser!ices like $anking# insurance# term lending# ousing finance#
etc in te Indian financial s%stem.
But after te initiati!e of economic li$eraliGation $% te
go!ernment# te &ri!ate as .ell as te foreign &la%ers are also &utting
ra&id strides in tis sector.
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Conse:uentl% te financial ser!ices sector in India started gro.ing
ra&idl% in te econom%. Te com&etiti!e climate in te Indian financial
ser!ices sector as drasticall% canged o!er te last fe. %ears.
MEANING OF FINANCIAL SERVICES
<inancial ser!ices mean mo$iliGing and allocating sa!ings. It
includes all acti!ities in!ol!ed in te transformation of sa!ings into
in!estment. It is also called as 6financial intermediation7.
<inancial intermediation is a &rocess $% .ic funds are
mo$iliGed from a large num$er of sa!ers and make tem a!aila$le to all
tose .o need it and &articularl% to cor&orate customers. Tus# financial
ser!ices sector is a ke% area and it is !er% !ital for industrial
de!elo&ments.
<inancial ser!ices refer to ser!ices &ro!ided $% te finance
industr%. Te finance industr% encom&asses a $road range of
organiGations tat deal .it te management of mone%. 0mong tese
organiGations are $anks# credit card com&anies# insurance com&anies#
consumer finance com&anies# stock $rokerages# in!estment funds and
some go!ernment s&onsored enter&rises. 0s of +,,F# te financial
ser!ices industr% re&resented A,H of te market ca&italiGation of te S&8
B,, in te 3nited States.
SCOPE OF FINANCIAL SERVICES
/ealing in foreign e9cange market acti!ities.
/ealing in secondar% market acti!ities.
8artici&ating in mone% market instruments like commercial &a&ers#
certificate of de&osits# treasur% $ills# discounting of $ills.
0rrangements of funds from financial institutions for te clients &ro'ect
cost or is .orking ca&ital re:uirements.
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8lanning for mergers and ac:uisitions and assisting for teir smoot
carr%out.
8romoting credit rating agencies for te &ur&ose of rating com&anies
.ic .ant to go for &u$lic issues of de$t instruments.
2uiding cor&orate customers in ca&ital restructuring.
HISTORY OF FINANCIAL SERVICES

Te Indian financial ser!ices industr% as undergone a drastic cange in
-FF,. /uring te late se!enties and eigties# te Indian financial ser!ices
industr% .as dominated $% commercial $anks and oter financial
institutions .ic cater to te re:uirements of te Indian industr%. Infact
te ca&ital market as &la%ed a secondar% role. Te economic
li$erlisation as $rougt in a com&lete transformation in te Indian
financial ser!ices industr%. 8rior to te economic li$eraliGation# te
Indian financial sector .as caracteriGed $% so man% factors .ic
retarded te gro.t of financial ser!ices sector.
INIAN FINANCIAL SERVICE SECTOR
Te Indian financial ser!ices industr% as e9&erienced significant gro.t
in te last fe. %ears. Tere as $een a considera$le $roadening and
dee&ening of te Indian financial markets due to !arious financial market
reforms 3ndertaken $% te regulators# te introduction of inno!ati!e
financial instruments in te recent %ears and te entr% of so&isticated
domestic and international &la%ers. Sectors suc as $anking# asset
management and $rokerage a!e $een li$eralised to allo. &ri!ate sector
in!ol!ement# .ic as contri$uted to te de!elo&ment and
modernisation of te financial ser!ices sector.
Tis is &articularl% e!ident
in te non-$anking financial ser!ices sector# suc as e:uities# deri!ati!es
and commodities $rokerage# residential mortgage and insurance ser!ices#
.ere ne. &roducts and e9&anding deli!er% cannels a!e el&ed tese
sectors acie!e ig gro.t rates
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SOME OF THE SIGNIFICANT FACTORS ARE AS
FOLLO!S:
-."9cessi!e controls in te form of regulations of interest rates# mone% rates.
+.Too man% controls o!er te &rices of securities under te erst.ile controller
of ca&ital issues
@.1on-a!aila$ilit% of financial instruments on a large scale as .ell as on
different !arieties.
A.0$sence of inde&endent credit rating and credit researc agencies.
B.Strict regulation of te foreign e9cange market .it too man% restrictions on
foreign in!estment in Indian com&anies.
C.?ack of information a$out international de!elo&ments in te financial sector.
STRUCTURE OF FINANCIAL SYSTEM
T>" <I101CI0? SYST"M IM8?I"S 0 S"T ;< C;M8?"I 01/
C?;S"?Y C;11"CT"/ I1STIT3TI;1S# 02"1TS# 840CTIC"S 01/
M04K"TS. T>" <;??;=I12 IS 0 TY8IC0? ST43CT34" ;<
<I101CI0? SYST"M I1 01Y "C;1;MY.
FINANCIAL SYSTEM
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FINANCIA
L
MARKETS
FINANCIAL
INSTITUTIO
NS
FINANCIAL

INSTRUMENT
S
FINANCI
AL

SERVICE
S
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FINANCIAL INSTITUTIONS.

<I101CI0? I1STIT3TI;1S 04" B3SI1"SS ;4201IS0TI;1S
=>; 0CT 0S M;BI?IJ"4S 01/ /"8;SIT;4I"S ;< S0VI12S# 01/
S388?I"4S ;< C4"/IT ;4 <I101C". T>"S" I1STIT3TI;1S 84;VI/"
V04I;3S <I101CI0? S"4VIC"S T; T>" B3SI1"SS ;4201IS0TI;1S
01/ C;MM01 8";8?". <I101CI0? I1STIT3TI;1S C01 B" /IVI/"/
I1T; B10KI12 01/ 1;1 B01KI12 I1STIT3TI;1S. B01KI12
I1STIT3TI;1S /"0? IS <I101CI0? 0SS"TS S3C> 0S /"8;SITS#
?;01S# S"C34ITI"S "TC. 01/ 1;1 <I101CI0? I1STIT3TI;1S
/"0? I1 4"0? 0SS"TS S3C> 0S M0C>I1"4Y# "K3I8M"1TS# ST;CK
;< 2;;/S 01/ 4"0? "ST0T". T>"I4 0CTIVTI"S M0Y B" 2"1"40?
;4 S8"CI0?. T>"S" I1STIT3TI;1S 804TICI80T" I1 T>" "C;1;MY S
80YM"1T M"C>01ISM BY 84;VI/I12 T401S0CTI;1 S"4VIC"S#
M;1"Y S388?Y 01/ C4"/IT.
FINANCIAL MARKETS

<I101CI0? M04K"TS 04" T>" C"1T4"S =>IC> 84;VI/"
<0C?ITI"S <;4 B3YI12 01/ S"??I12 ;< <I101CI0? C?0IMS 01/
S"4VIC"S. T>" 804TICI801TS I1 T>" <I101CI0? M04K"TS 04"
<I101CI0? I1STIT3TI;1S# B4;K"4S# /"0?"4S# B;44;="4S 01/
I1V"ST;4S. T>"Y 04" I1T"4?I1K"/ BY T>" ?0=S# C;1T40CTS#
01/ C;MM31IC0TI;1 1"T=;4KS. <I101CI0? M04K"TS C01 B"
/IVI/"/ I1T; T=; 804TS. T>" 84IM04Y M04K"TS =>IC> /"0?S
I1 1"= <I101CI0? C?I0MS ;4 I1ST43M"1TS. IT IS 0?S; C0??"/
0S 1"= ISS3" M04K"T. T>" S"C;1/04Y M04K"T /"0?S I1
S"C34IT"S =>IC> 04" 0?4"0/Y ISS3"/ BT T>" C;M801I"S 01/
I1V"ST;4S I1 84;VI/I12 ?IK3/ITY. >;="V"4# ST;CK
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"IC>012"S 04" B;T> 84IM04Y 01/ S"C;1/04Y M04K"TS
S"2M"1TS.
<I101CI0? M04K"TS 04" 0?S; C?0SSI<I"/ 0S C08IT0?
M04K"TS 01/ M;1"Y M04K"T. T>" M;1"Y M04K"T /"0?S I1
T>" S>;4T T"4M C?0IMS =IT> M0T34ITY 8"4I;/ ;< ?"SS T>01
0 Y"04 01/ C08IT0? M04K"TS /"0?S I1 ?;12 T"4M C?0IMS ;4
S"C34ITI"S. T>" C08IT0? M04K"T IS C; "IT"1SIV" 1;T ;1?Y
=IT> T>" ST;CK M04K"T B3T IT IS M3C> =I/"4 T>01 T>"
ST;CK M04K"T. T>" <I101CI0? M04K"TS M0Y B" C?0SSI<I"/ 0S
;4201IS"/ ;4 31;4201IS"/# <;4M0?S ;4 I1<;4M0?S 01/
/;M"STIC ;4 <;4"I21 M04K"TS.
FINANCIAL INSTRUMENTS
<I101CI0? I1T43M"1TS 04" C?0IMS T; T>"
80YM"1T ;< ;< M;1"Y I1 <3T34" ;4 0 8"4I;/IC I1T"4V0?. <;4
"2. T>" IM8;4T01T <I101CI0? I1T43M"1TS 04" S>04"S#
/"B"1T34"S# B;1/S# <II"/ /"8;SITS "TC. 4"23?04 80YM"1T
I1 T>" <;4M ;< I1T"4"ST ;4 /IVI/"1T IS 80I/ BY T>" C;M801Y
T; T>" I1V"ST;4S. /I4"CT?Y T; T>" 3?TIM0T" S0V"4S S3C> 0S
"K3ITY S>04"S# /"B"1T34"S. S"C;1/04Y I1T43M"1TS 04"
ISS3"/ BY I1T"4M"/I04I"S T; T>" 3?TIM0T" S0V"4S 0S B01K
/"8;SITS# 31ITS 01/ I1S3401C" 8;?ICI"S. T>" <I101CI0?
I1ST43M"1TS /I<<"4 <4;M "0C> ;T>"4 I1 4"S8"CT ;< T>"I4
I1V"STM"1T4 C>040CT"4ISTICS. T>" IM8;401T
C>040CT"4ISTICS 04" ?IK3I/ITY# T401S<"40BI?ITY#
V;?0TI?ITY# M0T34ITY# 4ISK# 01/ 4"T341.
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FINANCIAL SERVICES
0 <I101CI0? S"4VIC" IS 01Y KI1/ ;< S"4VIC" ;< 0
<I101CI0? 10T34" ;<<"4"/ BY 0 <I101CI0? S"4VIC" 84;VI/"4.
0?? B01KI12 01/ I1S3401C" 4"?0T"/ S"4VIC"S 04"
I1C?3/"/ I1 T>IS C;1C"8T. T>"S" S4"VIC"S 04" I1T012IB?"
01/ I1VISIB?". T>"4" S>;3?/ B" 84;IIMITY B"T=""1 T>"
S"4VIC" 84;VI/"4 01/ T>" C;1S3M"4 I1 ;4/"4 T; C;M8?"T"
0 S"4VIC" T401S0CTI;1. T>"S" S"4VIC"S C;V"4 0 =I/" 4012"
;< "C;1;MIC 0CTIVITI"S. <I101CI0? S"4VIC"S >0V"
/"V"?;8"/ T; M""T T>" 1""/S ;< C;M801I"S. B01KI12 01/
I1S3401C" 04" T40/ITI;10? <I101CI0? S"4VIC"S. T>"
M;/"41 <I101CI0? S"4VIC"S I1C?3/" ;V"4 T>" C;31T"4
S"4VIC"S. S>04" T401S<"4# 8?"/2I12 ;< S>04"S# M3T30?
<31/S# <0CT;4I12# /ISC;31TI12# V"1T34" C08IT0? 01/
C4"/IT C04/S. <I101CI0? S"4VIC"S >0V" ST04T"/ ?;12 B0CK
I1 ="ST"41 C;31T4I"S. I1 I1/I0# T>"S" S"4VIC"S >0V"
ST04T"/ ?;12 B0CK I1 ="ST"41 C;31T4I"S. I1 I1/I0# T>"S"
S"4VIC"S >0V" ST04T"/ /34I12 -FE,s. T>"S" S"4VIC"S 8?0Y 0
SI21I<IC01T 4;?" I1 T>" C>012"/ B3SI1"SS S"4VIC"S.
FEATURES OF FINANCIAL SERVICES
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M"MB"4S>I8 M0102"M"1T M"MB"4 L
M"MB"4S>I8 4"2IST40TI;1
M"MB"4S 01/ C3ST;M"4S
M"MB"4S>I8 "IIT
M"MB"4S>I8 T401S<"4
MI1IM3M M"MB"4S>I8 8"4I;/
<I101CI0? M0102"M"1T L
0CC;31T 80Y0B?"
<II"/ 0SS"TS
4"8;4TI12 SYST"M L
4"23?0T;4Y 4"8;4TS ".2. C"1T40? B01K
3S"4 C3ST;MIJ"/ 4"8;4TS
S"4VIC" M0102"M"1T
<;S0 (<4;1T ;<<IC" S"4VIC"S 0CTIVITI"S)
;n-te-counter transactions ($anking ser!ices) suc as sa!ings de&osits#
.itdra.als# loans re&a%ment# salar% &a%ments
Teller functions 5 Tellers# >ead tellers# Cas /ra.er and Strong room
cas Management
B;S0 (B0CK ;<<IC" S"4VIC"S 0CTIVITI"S)
Beind te scene acti!ities suc as Salar% &rocessing# loans &rocessing#
'ournals &rocessing# etc
IFFERENT TYPES OF FINANCIAL SERVICES
Te finance industr% &ro!ides a num$er of ser!ices to te clients. Tere
are different t%&es of financial ser!ices com&an% to &ro!ide tese ser!ices
to different commercial sectors as .ell as to te indi!iduals. Tere are
different t%&es of financial ser!ices like lending mone% for different
&ur&oses# insurances# de&ositor% ser!ices# mortgage ser!ices# in!estment
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ser!ices# credit rating ser!ices and man% more. Te different t%&es of
financial ser!ices com&an% 'ointl% create one of te largest industries of
te .orld. Tere are a num$er of financial ser!ices com&anies in te
.orld.
Some of tese com&anies are te follo.ingL
In!estment ser!ices com&an%
Bank
Insurance com&an%
Intermediation or ad!isor% ser!ices com&an%
Conglomerates
Credit 4ating 0gencies
1.INVESTMENT SERVICE COMPANY
Te in!estment ser!ices com&anies &ro!ide ser!ices like asset
management# edge funds# custod% ser!ices and man% more.
0sset management - te term usuall% gi!en to descri$e com&anies .ic run
collecti!e in!estment funds.
>edge fund management - >edge funds often em&lo% te ser!ices of M&rime
$rokerageM di!isions at ma'or in!estment $anks to e9ecute teir trades.
Custod% ser!ices - Custod% ser!ices and securities &rocessing is a kind of N$ack-
officeN administration for financial ser!ices. 0ssets under custod% in te India
.as estimated to OCB trillion at te end of +,,E.
+.B01KS
I+ &, -./ -0 +1/ $&22/,+ 0&.%.3&%4 ,/56&3/, 3-#7%.&/, -0 +1/ 8-549.
T1/5/ %5/ 9&00/5/.+ +:7/, -0 $%.;, &. +1/ 8-549. S-#/ -0 +1/,/ %5/
3-##/53&%4 $%.;,< 75&6%+/ $%.;, %.9 #%.: #-5/. T1/5/ %5/ ,-#/
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$%.;, +1%+ 8-5; 0-5 +1/ 3%7&+%4 #%5;/+, -.4:. B%.;, 75-6&9/ %
."#$/5 -0 0&.%.3&%4 ,/56&3/, +- +1/ 34&/.+,. T1/,/ ,/56&3/, &.34"9/
9/7-,&+-5: ,/56&3/,< 4/.9&.2 ,/56&3/,< 35/9&+ 3%59 0%3&4&+&/, %.9 #%.:
#-5/.
A =3-##/53&%4 $%.;= &, 81%+ &, 3-##-.4: 5/0/55/9 +- %,
,&#74: % =$%.;=. T1/ +/5# =3-##/53&%4= &, ",/9 +- 9&,+&.2"&,1 &+ 05-# %.
=&.6/,+#/.+ $%.;=< % +:7/ -0 0&.%.3&%4 ,/56&3/, /.+&+: 81&31< &.,+/%9 -0
4/.9&.2 #-./: 9&5/3+4: +- % $",&./,,< 1/47, $",&./,,/, 5%&,/ #-./: 05-#
-+1/5 0&5#, &. +1/ 0-5# -0 $-.9, (9/$+) -5 ,+-3; (/>"&+:).
B%.;&.2 ,/56&3/,
Te &rimar% o&erations of $anks includeL
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Kee&ing mone% safe .ile also allo.ing .itdra.als .en needed
Issuance of ceck$ooks so tat $ills can $e &aid and oter kinds of &a%ments
can $e deli!ered $% &ost
8ro!ide &ersonal loans# commercial loans# and mortgage loans (t%&icall% loans
to &urcase a ome# &ro&ert% or $usiness)
Issuance of credit cards and &rocessing of credit card transactions and $illing
Issuance of de$it cards for use as a su$stitute for cecks
0llo. financial transactions at $rances or $% using 0utomatic Teller Macines
(0TMs)
8ro!ide .ire transfers of funds and "lectronic fund transfers $et.een $anks
<acilitation of standing orders and direct de$its# so &a%ments for $ills can $e
made automaticall%
8ro!ide o!erdraft agreements for te tem&orar% ad!ancement of te BankNs o.n
mone% to meet montl% s&ending commitments of a customer in teir current
account.
8ro!ide Carge card ad!ances of te BankNs o.n mone% for customers .ising
to settle credit ad!ances montl%.
8ro!ide a ceck guaranteed $% te Bank itself and &re&aid $% te customer# suc
as a casierNs ceck or certified ceck.
1otar% ser!ice for financial and oter documents.
O+1/5 +:7/, -0 $%.; ,/56&3/,
8ri!ate $anking - 8ri!ate $anks &ro!ide $anking ser!ices e9clusi!el% to ig net
.ort indi!iduals. Man% financial ser!ices firms re:uire a &erson or famil% to
a!e a certain minimum net .ort to :ualif% for &ri!ate $anking ser!ices.
8ri!ate $anks often &ro!ide more &ersonal ser!ices# suc as .ealt management
and ta9 &lanning# tan normal retail $anks.
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Ca&ital market $ank - $ank tat under.rite de$t
and e:uit%# assist com&an% deals (ad!isor%
ser!ices# under.riting and ad!isor% fees)# and
restructure de$t into structured finance &roducts.
Bank cards - include $ot credit cards and de$it
cards. ICICI $ank is te largest issuer of $ank
cards.
Credit card macine ser!ices and net.orks - Com&anies .ic &ro!ide credit
card macine and &a%ment net.orks call temsel!es Mmercant card &ro!idersM.
BANK CARS
Bank cards include $ot credit cards and de$it cards . In India ICICI
B01K is te largest issuer of $ank cards
P
0M"4IC01 "I84"SS
M0ST"4 C04/
VIS0
B%.;&.2 ,"56/: 5/7-5+ RNCOS
Te Indian $anking sector# des&ite te glo$al crisis# is still fuelling te econom%.
0 re&ort N;&&ortunities in Indian Banking SectorN# $% market researc com&an%#
41C;S forecasts tat te Indian $anking sector .ill gro. at a ealt%
com&ound annual gro.t rate (C024) of around +@.@ &er cent till +,--.
Te total asset $ase of te DD sceduled commercial $anks (SCBs) added u& to
F-.E &er cent of India*s 2/8 (at current market &rices) troug te financial
%ear +,,E.
0ccording to a stud% re&ort $% /un and BradStreet# around E, &er cent of te
o!erall assets of SCBs .ere accounted for $% ++ leading $anks .it a $alance
seet siGe of a$o!e 3SO --.E@ $illion eac. Tis included -C 8u$lic Sector
Banks (8SBs)# @ 8ri!ate Sector Banks and @ <oreign Banks.
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/e&osits of &ri!ate sector $anks increased at a C024 of +C &er cent during
fiscal %ear +,,A5+,,E# com&ared to te total C024 gro.t of +,.B &er cent $%
all SCBs. 0d!ances of &ri!ate sector $anks increased at a C024 of @+ &er cent
against a C024 of @,.- &er cent $% all SCBs for te same &eriod.
8u$lic sector $anks accounted for a$o!e CC &er cent of te collecti!e total
income (including interest income and non-interest income) of all SCBs.
4etail $anking accounted for a A- &er cent sare of te o!erall re!enue
generated $% 8S3 $anks .ile it .as @C &er cent for &ri!ate sector $anks# and
for foreign $anks te sare of retail $anking also stood at around @C &er cent.
0s &er figures released $% te 4eser!e Bank of India (4BI)# $ank credit
increased $% +A &er cent till Qanuar% +# +,,F# com&ared to te +- &er cent
gro.t in te &re!ious %ear. Credit to industr% increased $% @,.+ &er cent till
/ecem$er -F# +,,E# against +A.F &er cent in te same &eriod in te &re!ious
%ear.
<urter# according to 4BI data# lending $% $anks increased $% more tan DC &er
cent during 0&ril-1o!em$er +,,E# as com&ared to te same &eriod an %ear ago.
=it te credit gro.t# leading Indian $anks are likel% to increase teir earnings
$% around A, &er cent %-o-% in te /ecem$er +,,E :uarter.
8u$lic sector $anks are going in for a ma'or image o!eraul. =it glo$al $anks
getting &ressurised under te economic do.nturn# se!eral com&anies and
indi!iduals are digressing from &ri!ate $anks to state-o.ned $anks. To make te
most of tis situation# te% are ado&ting ne. strategies and tecnologies to
attract more customers.
State-o.ned $anks are no. offering ser!ices like Internet $anking and
&ersonalised ce:ue $ooks# and e!aluation of loan &ro&osals .itin a s&ecific
&eriod. Man% suc $anks run &rocessing centres and $ack offices. Te State
Bank of India as e!en introduced t.o-faced 0TMs.
=ereas# te Indian Bank as introduced .ealt management ser!ices for its
ig net.ort (>1I) clients &ro!iding !arious t%&es of financial ad!isor% and
.ealt management ser!ices.
HSBC BANK HISTORY
19
TYBBI
>SBC Bank .as founded in -ECB to
ser!e te needs of te mercants of te
Cina coast and finance te gro.ing trade
$et.een Cina# "uro&e and te 3nited
States. Te origins of >SBC Bank in India
can $e traced $ack to ;cto$er -EB@ .en
te Mercantile Bank of India# ?ondon and
Cina .as founded in Bom$a%.
In -FBF# Te >ong Kong and Sangai Banking Cor&oration
(>SBC) ac:uired te Mercantile Bank of India and te ead office of te
>SBC Bank .as esta$lised in Bom$a% (Mum$ai). In -FED# >SBC Bank
ga!e India its first 0TM.
Troug te -FF,s# >SBC Bank $lossomed into one of te leading
$anking and financial ser!ices organiGations of te .orld. 0s on Qune @,
+,,A# te Bank as o!er --, million customers .orld.ide .it assets
o!er 3SO-#-BA $illion. >SBC Bank as a$out -,#,,, offices in DC
countries and territories in "uro&e# te 0sia 8acific region# te 0mericas#
te Middle "ast and 0frica.
F-5/&2. /?31%.2/ ,/56&3/,
<oreign e9cange ser!ices are &ro!ided $% man% $anks around te .orld.
<oreign e9cange ser!ices includeL
Currenc% "9cange - .ere clients can &urcase and sell foreign currenc% $ank
notes
=ire transfer - .ere clients can send funds to international $anks a$road from
India.
<oreign Currenc% Banking - $anking transactions are done in foreign currenc%
20
TYBBI
@.INSURANCE
Te insurance com&anies &ro!ide te clients .it risk co!erage
ser!ices. Tese ser!ices are designed to co!er a num$er of risks tat are
related to an indi!idualNs life# &ro&ert% and man% more. Tese ser!ices are
not onl% designed to &ro!ide securit% $ut at te same time tere are a
num$er of insurance &lans tat are designed to &ro!ide regular income to
te clients. Te insurance &olicies can $e di!ided in se!eral t%&es like
general insurance# life insurance# commercial insurances and a lot more.
Insurance $rokerage - Insurance $rokers so& for insurance (generall%
cor&orate &ro&ert% and casualt% insurance) on $ealf of customers. 4ecentl% a
num$er of .e$sites a!e $een created to gi!e consumers $asic &rice
com&arisons for ser!ices suc as insurance# causing contro!ers% .itin te
industr%.
Insurance under.riting - 8ersonal lines insurance under.riters actuall%
under.rite insurance for indi!iduals# a ser!ice still offered &rimaril% troug
agents# insurance $rokers# and stock $rokers. 3nder.riters ma% also offer
21
TYBBI
similar commercial lines of co!erage for $usinesses. 0cti!ities include
insurance and annuities# life insurance# retirement insurance# ealt insurance#
and &ro&ert% & casualt% insurance.
4einsurance - 4einsurance is insurance sold to insurers temsel!es# to &rotect
tem
I.,"5%.3/ ,"56/: 5/7-5+ $: ASSOCHAM
Te insurance sector is one of te most &romising sectors in India toda%.
In an 0SS;C>0M re&ortR NInsurance Sector <uturistic 2ro.tNR stated tat
IndiaNs insurance sector is likel% to reac 3SO AC.+B $illion $% +,-,. Te re&ort
said# MTe total insurance $usiness .ill reac a le!el of 3SO AC.+B $illion in te
ne9t t.o %ears from te current le!el of 3SO -.-B $illion.M 8ri!ate insurance
$usiness is likel% to see a -A, &er cent gro.t rate due to te aggressi!e
marketing tecni:ues used $% tem. Con!ersel%# state-o.ned insurance
com&anies .ould see a @B5A, &er cent gro.t rate.
India is te fift largest life insurance market in te emerging insurance
economies glo$all% and te segment is gro.ing at a ealt% @+5@A &er cent
22
TYBBI
annuall%. 0ccording to a re&ort $% researc firm 41C;SRNBooming Insurance
Market in India (+,,E5+,--)NRte total life insurance &remium in India is
&ro'ected to gro. to 3SO +BF.D+ $illion $% +,-,5--. Te general insurance
sector is likel% to gro. at a rate of -E &er cent in +,,E# com&ared to -@ &er cent
in +,,D. Te -D ma'or non-life insurers collected a total of 3SO EA,.+D million
as &remium in 0&ril +,,E.
?ife Insurance Cor&oration (?IC) is $ullis on gro.t and is targetting $usiness
in e9cess of 3SO BF.-A $illion $% +,--5-+.
Te go!ernment is &lanning to ease restrictions on foreign in!estments in
insurance# $anking and &ensions# and allo. foreign direct in!estment (</I) of
AF &er cent from te &resent +C &er cent.
I1S3401C" 31/"4=4ITI12
8ersonal lines insurance under.riters actuall% under.rite insurance for
indi!iduals# a ser!ice still offered &rimaril% troug agents# insurance
$rokers# and stock $rokers. 3nder.riters ma% also offer similar
commercial lines of co!erage for $usinesses. 0cti!ities include insurance
and annuities# life insurance# retirement insurance# ealt insurance# and
&ro&ert% & casualt% insurance.
Some =ell Kno.n Insurers IncludesL
2;VT. C;M801I"S I1 2"1"40? I1S3401C" I1 I1/I0
Te ne. India assurance co. ?td
Te oriental Insurnce co. ?td
Te national insurance ltd
3nited India insurance ltd
84IV0T" C;M801I"S I1 2"1"40? I1S3401C" ?T/
Ba'a' 0llianG general insurance ltd
23
TYBBI
Icici ?om$ard general insurance ltd
Barti a9a general insurance ltd
Ing !%s%a general insurance ltd
colamandalam general insurance ltd
2;VT. C;M801I"S I1 ?I<" I1S3401C"
?ife insurance cor&oration of India (?IC)
84IV0T" C;M80I1"S I1 ?I<" I1S3401C"
Ma9 ne. York life co. ?td
Icici &rudential co. ?td
Tata aig
Met life insurance co. ?td
Birla sunlife insurance co. ?td
0!i!a life insurance co. ?td
Ba'a' 0llianG life insurance co.ltd
>s$c canara life insurance co. ?td
'.OTHER FINANCIAL SERVICES
Intermediation or ad!isor% ser!ices - Tese ser!ices in!ol!e stock $rokers
(&ri!ate client ser!ices) and discount $rokers. Stock $rokers assist in!estors in
$u%ing or selling sares. 8rimaril% internet-$ased com&anies are often referred
to as discount $rokerages# altoug man% no. a!e $ranc offices to assist
clients. Tese $rokerages &rimaril% target indi!idual in!estors. <ull ser!ice and
&ri!ate client firms &rimaril% assist e9ecute trades and e9ecute trades for clients
.it large amounts of ca&ital to in!est# suc as large com&anies# .ealt%
indi!iduals# and in!estment management funds.
8ri!ate e:uit% - 8ri!ate e:uit% funds are t%&icall% closed-end funds# .ic
usuall% take controlling e:uit% stakes in $usinesses tat are eiter &ri!ate# or
taken &ri!ate once ac:uired. 8ri!ate e:uit% funds often use le!eraged $u%outs
24
TYBBI
(?B;s) to ac:uire te firms in .ic
te% in!est. Te most successful
&ri!ate e:uit% funds can generate
returns significantl% iger tan
&ro!ided $% te e:uit% markets
Venture ca&ital - Venture ca&ital is a
t%&e of &ri!ate e:uit% ca&ital t%&icall%
&ro!ided $% &rofessional# outside
in!estors to ne.# ig-&otential-gro.t com&anies in te interest of taking te
com&an% to an I8; or trade sale of te $usiness.
0ngel in!estment - 0n angel in!estor or angel (kno.n as a $usiness angel or
informal in!estor in "uro&e)# is an affluent indi!idual .o &ro!ides ca&ital for a
$usiness start-u&# usuall% in e9cange for con!erti$le de$t or o.nersi& e:uit%.
0 small $ut increasing num$er of angel in!estors organiGe temsel!es into angel
grou&s or angel net.orks to sare researc and &ool teir in!estment ca&ital.
Conglomerates - 0 financial ser!ices conglomerate is a financial ser!ices firm
tat is acti!e in more tan one sector of te financial ser!ices market e.g. life
insurance# general insurance# ealt insurance# asset management# retail
$anking# .olesale $anking# in!estment $anking# etc. 0 ke% rationale for te
e9istence of suc $usinesses is te e9istence of di!ersification $enefits tat are
&resent .en different t%&es of $usinesses are aggregated i.e. $ad tings donNt
al.a%s a&&en at te same time. 0s a conse:uence# economic ca&ital for a
conglomerate is usuall% su$stantiall% less tan economic ca&ital is for te sum
of its &arts.
(.STOCK MARKETS
<und raising $% India Inc troug initial &u$lic offers (I8;s) rose $% a
.o&&ing C+ &er cent since te $eginning of +,,E to +F Ma%# +,,E to 3SO A.+
$illion# against 3SO +.C $illion during te same &eriod in +,,C# according to
glo$al deal data &ro!ider# /ealogic. Significantl%# fund mo$ilisation during te
25
TYBBI
first :uarter of +,,E .as te second igest for a :uarter in te Indian ca&italNs
istor%.
In recent monts# te Indian stock market as slo.ed do.n due to te glo$al
economic turmoil. >o.e!er# e9&ectations of it re$ounding soon are also ig.
<urter# according to glo$al consultanc% firm# /eloitte >askins & Sells# te
Indian econom% and ca&ital markets are e9&ected to .itness a turnaround .itin
si9 to nine monts.
0ccording to te initial &u$lic offering (I8;) estimates for +,,F# $% Tomson
4euters stud%# India Inc is likel% to raise four times te &roceeds it garnered
from te &rimar% market in +,,E. 0s &er te stud%# India Inc is targetting to
raise a massi!e 3SO -B.+E $illion troug &u$lic issues.
<urtermore# S"BI
.ill $e making it
easier for com&anies
to raise mone% from
te stock market# $%
rela9ing eligi$ilit%
rules to facilitate
faster raising of
funds from e9isting
sareolders.
8resentl%# onl%
com&anies a!ing ad a market ca&italisation of a$o!e 3SO -.FD $illion in te
last one %ear are entitled to tis route. S"BI &lans to $ring do.n tis figure.
P5&6%+/ E>"&+:
In finance# &ri!ate e:uit% is an asset class consisting of e:uit% securities in
o&erating com&anies tat are not &u$licl% traded on a stock e9cange.
In!estments in &ri!ate e:uit% most often in!ol!e eiter an in!estment of ca&ital
into an o&erating com&an% or te ac:uisition of an o&erating com&an%. Ca&ital
for &ri!ate e:uit% is raised &rimaril% from institutional in!estors. Tere is a .ide
arra% of t%&es and st%les of &ri!ate e:uit% and te term &ri!ate e:uit% as
different connotations in different countries.
26
TYBBI
0mong te most common in!estment strategies in &ri!ate e:uit% include
le!eraged $u%outs# !enture ca&ital# gro.t ca&ital# distressed in!estments and
meGGanine ca&ital. In a t%&ical le!eraged $u%out transaction# te &ri!ate e:uit%
firm $u%s ma'orit% control of an e9isting or mature firm. Tis is distinct from a
!enture ca&ital or gro.t ca&ital in!estment# in .ic te &ri!ate e:uit% firm
t%&icall% in!ests in %oung or emerging com&anies# and rarel% o$tain ma'orit%
control.
0ccording to a re&ort $% glo$al researc firm 8re:in# &ri!ate e:uit% in!estments
are likel% to &erk u& in te second-alf of +,,F and fuel te glo$al economic
reco!er%. M=it a&&ro9imatel% 3SO - trillion of dr% &o.der (term used to
denote ca&ital a!aila$le for deals) a!aila$le# &ri!ate e:uit% is &oised to &la% a
ma'or role in te coming economic reco!er%#M te re&ort re!ealed.
8ri!ate e:uit% (8") &la%ers see are $ullis on in!esting in India as a &rofita$le
destination# e9&ecting te inflo.s to $e around 3SO B $illion-3SO E $illion in
te coming %ear.
Industr% e9&erts feel tat long-term in!esting in India is a &rofita$le o&tion.
0ccording to a sur!e% $% /eloitte during te last si9 monts# sectors dri!en $%
domestic consum&tion and infrastructure are e9&ected to .itness a lot of
acti!it%. Sandee& 2ill# managing director of /eloitte cor&orate finance# said#
M=e a!e o$ser!ed t.o ke% &oints# te com&etiti!e en!ironment for in!estment
o&&ortunities for 8" ouses is e9&ected to ease during +,,F# as smaller 8" firms
and edge funds e9it te market. Second# te !olume of 8" deals in te market
.ill $e de&endent on o. :uickl% &romoters are .illing to acce&t lo.er
!aluations.M
Te total num$er of 8" deals during te first fi!e monts of +,,E stood at -D,#
.it an announced !alue of 3SO C.@F $illion as against -BF deals amounting to
3SO A.FD $illion during te corres&onding &eriod in +,,E. India is among te
to& -, countries in terms of !alue of &ri!ate e:uit% deals across te .orld#
according to te glo$al deal tracking firm# Je&%r. Te sector is going to see a
flurr% of acti!it% and in!estments in te coming monts.
Man% com&anies a!e am$itious &lans to enter te &ri!ate e:uit% (8") $usiness
and raise funds.
27
TYBBI
Indi!ision India 8artners is &lanning to raise anoter fund-Indi!ision II# .it a
cor&us in e9cess of 3SO A+B million raised troug Indi!ision I.
;ter $ig.igs &lanning fund raisings are te Tata and 0dit%a Birla grou&s .it
&lans to raise 3SO @B, million and 3SO +B, million# res&ecti!el%. In 0ugust
+,,E# 4eliance Ca&ital ad announced setting u& a 3SO - $illion 8" fund.
8ri!ate e:uit% firm# 0ctis as raised a 3SO +.F $illion &ri!ate e:uit% fund (0ctis
"merging Markets @ (0"M@)* for te emerging markets of Cina# India# 0frica#
?atin 0merica and Sout-east 0sia. Te fund .ill $e &um&ing in 3SO - $illion
as in!estments in India o!er te ne9t @-A %ears.
3S-$ased 0&ollo Management# .it an asset $ase of more tan 3SO +, $illion#
.ill $e soon setting u& so& in India. Te 8" firm as &lans to s&end around
3SO E,, million in in!estments in Indian and te 3S markets.
Tata Ca&ital ?td is &lanning to float a 3SO @B, million &ri!ate e:uit% (8") fund.
EMERGENCE OF PRIMARY EAUITY MARKETS
28
TYBBI
1o.# .e are also .itnessing te emergence of man% &ri!ate sector
financial ser!ices. Te ca&ital market# .ic .as !er% sluggis# as
$ecome a &o&ular source of raising finance. Te &rimar% e:uit% market
as emerged as an im&ortant !eicle to cannelise te sa!ings of te
indi!iduals and cor&orates for &roducti!e &ur&oses and tus to &romote
te industrial and economic gro.t of te countr%.
).MUTUAL FUNS
0 #"+"%4 0".9 is a &rofessionall% managed t%&e of collecti!e in!estment
sceme tat &ools mone% from man% in!estors and in!ests it in stocks# $onds#
sort-term mone% market instruments# andSor oter securities.

Te mutual fund
.ill a!e a fund manager tat trades te &ooled mone% on a regular $asis. Te
net &roceeds or losses are ten t%&icall% distri$uted to te in!estors annuall%.
Since -FA,# tere a!e $een tree $asic t%&es of in!estment com&anies in te
3nited StatesL o&en-end funds# also kno.n in te 3.S. as mutual fundsT unit
in!estment trusts (3ITs)T and closed-end funds. Similar funds also o&erate in
Canada. >o.e!er# in te rest of te .orld# mutual fund is used as a generic term
for !arious t%&es of collecti!e in!estment !eicles# suc as unit trusts# o&en-
ended in!estment com&anies (;"ICs)# unitiGed insurance funds# and
undertakings for collecti!e in!estments in transfera$le securities (3CITS).
29
TYBBI
0ccording to a re&ort $% researc firm 41C;S# te Indian mutual
funds retail market is &resentl% gro.ing at a C024 of around @, &er cent# and
is likel% to touc 3SO @,, $illion $% +,-B.
Te gro.t momentum of te mutual fund industr% continues in te ne. fiscal
%ear (+,,E5,F). <und mo$ilisation as increased $% a .o&&ing DD.A &er cent to
3SO @+D.F@ $illion during 0&ril5Qune +,,E# com&ared to 3SO -EA.E- $illion in
0&ril5Qune +,,D. Conse:uentl%# a!erage 0ssets 3nder Management (03M) of
te mutual fund industr% as increased to 3SO -@+.@@ $illion for Qune +,,E#
against 3SO FF.EC $illion in te corres&onding &eriod in +,,D.
<urter# at a&&ro9. 3SO FC $illion53SO FE $illion in assets for <e$ruar% +,,F#
te mutual funds (M<) industr% as seen a sar& increase of a$out E.D &er cent
in 03M since te &re!ious mont. Tis is also te tird consecuti!e montl%
rise in assets for te industr% as a .ole.
0s &er S"BI# te mutual fund industr% made an o!erall in!estment of 3SO +.-A
$illion in e:uities $et.een Qanuar%-Se&tem$er +,,E. 0ccording to market
sources# te mutual funds industr% as mustered an estimated 3SO -.+A $illion
during te same &eriod. In Se&tem$er +,,E# te 03M totalled to 3SO -.-,
trillion.
To im&ro!e te ca&ital market# te go!ernment is likel% to remo!e te
restriction on &rofit-making 1a!ratna and mini-4atna &u$lic sector
undertakings (8S3s) from in!esting in mutual funds.
?ife Insurance Cor&oration of India (?IC) as &ut in o!er 3SO +.DB $illion into
li:uid funds of different fund ouses. Te amount .as more tan tree times its
similar in!estments made in +,,E.
?ooking aead# te Indian mutual funds market is estimated to gro. at a C024
of -E &er cent in te ne9t fi!e %ears# .it te countr%Ns mutual funds assets
e9&ected to more tan dou$le to 3SO +FE.D@ $illion $% +,-+# according to a
re&ort $% 3S-$ased financial ser!ices researc and consulting firm# Cerulli
0ssociates.
HSBC M"+"%4 F".9
30
TYBBI
>SBC is one of te .orldNs leading $anking giants
and $oasts of a -A,-%ear istor% in $anking ser!ices.
>SBC o&erates in more tan D, countries across te
glo$e and as assets of o!er O-.+ trillion on te
consolidated grou& $alance seet. Te in!estment $anking and fund
management $usinesses of te grou& is andled $% >SBC In!estments.
>SBC 0sset Management India 8ri!ate ?imited acts as te 0sset
Management Com&an% to te >SBC Mutual <und.
>SBC Securities and Ca&ital Markets India 8ri!ate ?imited# an
affiliate of te >SBC grou&# is te s&onsor of te fund and o.ns DB
&ercent stake.
B.EBT MARKET
8referred sares can $e considered &art of de$t or e:uit%. 0ttri$uting
&referred sares to one or te oter is &artiall% a su$'ecti!e decision $ut .ill
also take into account te s&ecific features of te &referred sares.
=en used to calculate a com&an%Ns financial le!erage# te de$t usuall%
includes onl% te ?ong Term /e$t (?T/). Kuoted ratios can e!en e9clude te
current &ortion of te ?T/. Te com&osition of e:uit% and de$t and its influence
on te !alue of te firm is muc de$ated and also descri$ed in te Modigliani-
Miller teorem.
<inancial anal%sts and stock market :uotes .ill generall% not include oter
t%&es of lia$ilities# suc as accounts &a%a$le# altoug some .ill make
ad'ustments to include or e9clude certain items from te formal financial
statements. 0d'ustments are sometimes also made to# for e9am&le# e9clude
intangi$le assets# and tis .ill affect te formal e:uit%T de$t to e:uit% (de:uit%)
.ill terefore also $e affected.
<inancial economists and academic &a&ers .ill usuall% refer to all lia$ilities
as de$t# and te statement tat e:uit% &lus lia$ilities e:uals assets is terefore an
31
TYBBI
accounting identit% (it is#
$% definition# true). ;ter
definitions of de$t to e:uit%
ma% not res&ect tis accounting
identit%# and sould $e
carefull% com&ared.
/ue to te ig !olatilit% in te
e:uit% markets# Indian
in!estors are coosing de$t
market and mutual funds
o!er e:uities.
0ccording to an 0SS;C>0M re&ort# around 3SO @@@.+D million .as in!ested
in te de$t market against 3SO +AF.EF million in e:uities# as on te tird .eek
of Qune +,,E. Te re&ort re!ealed tat in!estors fa!oured cor&orate $onds#
&articularl% de$entures issued $% leading com&anies. Te de$t market in India
included segments like go!ernment securities# cor&orate $ond market# 8S3
(&u$lic sector undertaking) $onds# and fi9ed de&osits among oters.
0ccording to a re&ort $% 2oldman Sacs# .it insurance# mutual funds and
&ension sector e9&eriencing ra&id gro.t# IndiaNs de$t market is estimated to
gro. four-fold# from a$out 3SO A,, $illion (AB &er cent of 2/8) in +,,C to
a$out 3SO -.B trillion (a$out BB &er cent of 2/8) $% +,-C.
Significantl%# te non-go!ernment sector is e9&ected to gro. from 3SO -,,
$illion in +,,C to 3SO BDB $illion in +,-C# increasing its sare in 2/8 from -,
&er cent to ++ &er cent.
CLASSIFICATION OF FINANCIAL SERVICES INUSTRY
Te financial intermediaries in India can $e traditionall% classified into
t.oL
32
TYBBI
C08IT0? M04K"T I1T"4M"/I04I"S
M;1"Y M04K"T I1T"4M"/I04I"S
-.C08IT0? M04K"T I1T"4M"/I04I"S
Te ca&ital market intermediaries consist of term lending
institutions and in!esting institutions.ic mainl% &ro!ide long term
funds.
+.M;1"Y M04K"T I1T"4M"/I04I"S
Te mone% market intermediar% consists of commercial $anks# co-
o&erati!e $anks and oter agencies .ic su&&l% onl% sort term funds.
>ence te term 6financial ser!ices industr%7 includes all kinds of
organiGations .ic intermediate and facilitate financial transactions of
$ot indi!iduals and cor&orate customers.
33
TYBBI
C.INNOVATIVE FINANCIAL INSTRUMENTS
In recent %ears# inno!ation as $een te ke% .ord $eind te
&enomenal success of man% of te financial ser!ice com&anies and it
forms an integral &art of all &lanning and &olic% decisions. Tis as
el&ed tem to kee& in tune .it te canging times and canging
customer needs. 0ccordingl%# man% inno!ati!e financial instruments a!e
come into te financial market in recent times.
S;M" ;< T>"M >0V" B""1 B4I"<?Y /ISC3SS"/ B"?;=L
C;MM"4CI0? 808"4
T4"0S34Y BI??
C"4TI<IC0T" ;< /"8;SIT
BI??S ;< "IC>012"
84;MISS;4Y 1;T"
1.COMMERCIAL PAPER
0 commercial &a&er is a sort term negotia$le mone% market
instrument. It as te caracter of an unsecured &romissor% note .it a
fi9ed maturit% of @ to C monts. Banking and non-$anking com&anies
can issue tis for raising teir sort term
de$t. It also carries an attracti!e rate of
interest. Commercial &a&ers are sold at a
discount from teir face !alue and redeemed
at teir face !alue. Since its denomination is
!er% ig. It is suita$le onl% to institutional
in!estors and com&anies.
34
TYBBI
2.TREASURY BILL
0 treasur% $ill is also a mone% market instrument issued $% te
central go!ernment. It is also issued at a discount and redeemed at &ar.
4ecentl%# te go!ernment as come out .it te sort term treasur% $ills
of -E+ da%s $ills and @CA da%s $ills.
@.CERTIFICATE OF EPOSIT
Te sceduled commercial $anks a!e $een &ermitted to issue
certificate of de&osit .itout an% regulations on interest rates. Tis is
also a mone% market instrument and unlike a fi9ed de&osit recei&t. It is a
negotia$le insturment and ence it offers ma9imum li:uidit%. 0s suc# it
as a secondar% market. Since te denomination is !er% ig# it is
suita$le to mainl% instituional in!estors and com&anies.
'.PROMISSORY NOTE
0 &romissor% note is a .ritten &romise $% te maker to &a% mone% to te payee.
Bank note is fre:uentl% transferred as a &romissor% note# a &romissor% note
made $% a $ank and &a%a$le to $earer on demand. 0 maker of a &romissor% note
&romises to unconditionall% &a% te &a%ee ($eneficiar%) a s&ecific amount on a
s&ecified date.
0 &romissor% note is an unconditional &romise to &a% a s&ecific amount to
$earer or to te order of a named &erson# on demand or on a s&ecified date.
35
TYBBI
0 negotia$le &romissor% note is unconditional &romise in .riting made $% one
&erson to anoter# signed $% te maker# engaging to &a% on demand# or at fi9ed
or determina$le future time# sum certain in mone% to order or to $earer. (see
Sec.-FA)
0 &romissor% note# $riefl% stated# is a &romise to &a% a sum of mone%.
;riginal &arties to a &romissor% note.
Tere are originall% t.o &arties in a &romissor% note. Te one .o makes te
&romise and signs te instrument is called te MmakerM and te &art% to .om
te &romise is made or te instrument is &a%a$le is called te M&a%eeM
(.BILLS OF E*CHANGE
0 $ill of e9cange or MdraftM is a .ritten order $% te drawer to te drawee to
&a% mone% to te payee. 0 common t%&e of $ill of e9cange is te ce:ue
(check in 0merican "nglis)# defined as a $ill of e9cange dra.n on a $anker
and &a%a$le on demand. Bills of e9cange are used &rimaril% in international
trade# and are .ritten orders $% one &erson to is $ank to &a% te $earer a
s&ecific sum on a s&ecific date. 8rior to te ad!ent of &a&er currenc%# $ills of
e9cange .ere a common means of e9cange. Te% are not used as often toda%.
0 $ill of e9cange is an unconditional order in .riting addressed $% one &erson
to anoter# signed $% te &erson gi!ing it# re:uiring te &erson to .om it is
addressed to &a% on demand or at fi9ed or determina$le future time a sum
certain in mone% to order or to $earer. (Sec.-+C)
It is essentiall% an order made $% one &erson to anoter to &a% mone% to a tird
&erson.
0 $ill of e9cange re:uires in its ince&tion tree &arties--te dra.er# te dra.ee#
and te &a%ee.
36
TYBBI
Te &erson .o dra.s te $ill is called te dra.er. >e gi!es te order to &a%
mone% to tird &art%. Te &art% u&on .om te $ill is dra.n is called te
dra.ee. >e is te &erson to .om te $ill is addressed and .o is ordered to
&a%. e $ecomes an acce&tor .en e indicates is .illingness to &a% te $ill.
(Sec.C+) Te &art% in .ose fa!or te $ill is dra.n or is &a%a$le is called te
&a%ee.
Te &arties need not all $e distinct &ersons. Tus# te dra.er ma% dra. on
imself &a%a$le to is o.n order.
0 $ill of e9cange ma% $e endorsed $% te &a%ee in fa!our of a tird &art%# .o
ma% in turn endorse it to a fourt# and so on indefinitel%. Te Molder in due
courseM ma% claim te amount of te $ill against te dra.ee and all &re!ious
endorsers# regardless of an% counterclaims tat ma% a!e disa$led te &re!ious
&a%ee or endorser from doing so. Tis is .at is meant $% sa%ing tat a $ill is
negotia$le.
In some cases a $ill is marked Mnot negotia$leM. In tat case it can still $e
transferred to a tird &art%# $ut te tird &art% can a!e no
$etter rigt tan te transferor.
-,.C;12?;M"40T"S
0 financial ser!ices conglomerate is a financial ser!ices firm tat is
acti!e in more tan one sector of te financial ser!ices market e.g. life
insurance# general insurance# ealt insurance# asset management# retail
$anking# .olesale $anking# in!estment $anking# etc. 0 ke% rationale for
te e9istence of suc $usinesses is te e9istence of di!ersification
$enefits tat are &resent .en different t%&es of $usinesses are
aggregated i.e. $ad tings donNt al.a%s a&&en at te same time. 0s a
conse:uence# economic ca&ital for a conglomerate is usuall% su$stantiall%
less tan economic ca&ital is for te sum of its &arts.
37
TYBBI
<31/0M"1T0?S ;< <I101CI0? S"4VIC" S"CT;4
A 9/+%&4/9 ,+"9: -. +1/ 0".9%#/.+%4, -0 0&.%.3&%4 3-.3/7+, &,
,"5/ +- 2&6/ ,-#/ &9/% -. +1/ 3-.3/7+, -0 0&.%.3/. T1/ &.6/,+-5, .//9
+- 2- +15-"21 ,-#/ +1/-5&/, -0 0&.%.3/ +1%+ 8&44 1/47 +1/# +-
".9/5,+%.9 +1/ $/1%6&-5 -0 #%5;/+ &. % $/++/5 8%:. T1/5/ %5/ %
."#$/5 -0 0%3+-5, +1%+ &.04"/.3/ +1/ 0".3+&-.&.2 -0 +1/ &.6/,+#/.+
#%5;/+. T1/ &.9&6&9"%4 &.6/,+-5D, 31-&3/ -0 &.6/,+#/.+ #%: 6%5: 05-#
-./ 7/5,-. +- %.-+1/5. !1&4/ ,-#/ &.6/,+-5, 2- 0-5 &.6/,+&.2 &. +1/
5&,;: ,/3"5&+&/,< ,-#/ &.6/,+-5, +/.9 +- 74%: ,%0/ &. +1/ #%5;/+ $:
&.6/,+&.2 &. +1/ 4/,, 5&,;: ,/3"5&+:. A5$&+5%2/ &, -./ -0 +1/ #-,+
&#7-5+%.+ 0".9%#/.+%4, -0 0&.%.3&%4 3-.3/7+,. I+ +:7&3%44: 9/0&./, +1/
75-3/,, -0 +%;&.2 %96%.+%2/ -0 +1/ 75&3/ 9&00/5/.+ $/+8//. +8- -5
#-5/ #%5;/+,. A 34/%5 3-.3/7+ -. +1/ %5$&+5%2/ 75%3+&3&.2 #%: $/
$/./0&3&%4 0-5 +1/ &.6/,+-5,. T1/ 3%,1 04-8 &, %.-+1/5 0".9%#/.+%4 -0
+1/ 0&.%.3&%4 3-.3/7+ +1%+ 5/0/5, +- +1/ 75-3/,, -0 3%,1 $/&.2
+5%.,0/55/9 $: % $",&./,, -5 %. -52%.&E%+&-.. U.9/5,+%.9&.2 -0 +1/
3%,1 04-8 #%.%2/#/.+ #%: $/ ",/0"4 +- /6%4"%+/ % 7%5+&3"4%5
$",&./,, -5 &. 9/+/5#&.&.2 +1/ 75-$4/#, 8&+1 4&>"&9&+:. M-./:
#%5;/+ #%;/, %. &#7-5+%.+ 7%5+ &. +1/ 3-.3/7+ -0 0&.%.3/.
I.6/,+#/.+ &. 3"55/.3&/, &, 2/++&.2 7-7"4%5 8&+1 +1/ 7%,,%2/ -0 +&#/.
A ,+"9: -. +1/ 0-5/? #%5;/+ &, 35"3&%4 0-5 %44 +1-,/ 81- %5/ &.6/,+&.2
&. +1/ #-./: #%5;/+. T1/ 0-5/? #%5;/+ 1%.94/, +1/ +5%9&.2 -0 -./
3"55/.3: 8&+1 %.-+1/5 3-".+5:D, 3"55/.3: %.9 &+ &, +1/ 4%52/,+
0&.%.3&%4 #%5;/+ &. +1/ 8-549 &. +/5#, -0 +5%.,%3+&-. 6-4"#/. T1/
6%5&-", +:7/, -0 5&,;, +1%+ 3-#/ ".9/5 +1/ 9-#%&. -0 0&.%.3&%4
3-.3/7+, %5/ - ,:,+/#&3 5&,;< 35/9&+ 5&,;< 3-.,"#/5 35/9&+ 5&,;<
,/++4/#/.+ 5&,;< 4&>"&9&+: 5&,; %.9 #%5;/+ 5&,;.
FINANCIAL SERVICES THEORIES
Te &rime conce&t of finance teor% is to stud% te !arious .a%s
$% .ic a $usiness or an indi!idual raises mone%. 0llocating mone% into
&ro'ects .ile considering te risk factors attaced to tem also fall
under te cano&% of finance teor% fundamentals. Te conce&t of finance
ma% also $e integrated .it te conce&ts suc asL stud% of mone% and
oter assets# managing and &rofiling &ro'ect risks# control and
38
TYBBI
management of assets and also. In sim&le understanding# NfinancingN also
means &ro!ision and allocation of fund for a &articular $usiness module
or &ro'ect. 1um$er of finance teories tat offer se&arate a&&roaces to
te finance %&oteses. Some of te ma'or and &o&ular finance teories
of te .orld areL ar$itrage &ricing teor%# rational coice teor%# &ros&ect
teor%# cumulati!e &ros&ect teor%# Monte Carlo o&tion model# $inomial
o&tions &ricing model# Black model and legal origins teor%. Te
0r $i t r age 8ricing Teor% for e9am&le talks a$out te general teor% of
asset &ricing. Te &ro&er asset &ricing is necessar% for te &ro&er &ricing
of sares. Te 0r$itrage 8ricing Teor% states tat te return tat is
e9&ected from a financial asset can $e &resented as a linear function of
!arious teoretical market indices and macro-economic factors. >ere it is
assumed tat te factors considered are sensiti!e to canges and tat is
re&resented $% a factor-s&ecific $eta coefficient. Te 8ros&ect teor% of
finance# on te oter and# discusses te alternati!es in!ol!ing risks. It
takes into consideration te alternati!es tat come .it uncertain
outcomes. Te model is descri&ti!e $% nature and it tries to re&resent te
real-life coices $ut not o&timal decisions. Tis teor% &ro&oses o. te
in!estors sould use di!ersification in order to o&timiGe teir &ortfolios.
CAUSES FOR FINANCIAL INNOVATION
<;??;=I12 04" T>" C03S"S ;< <I101CI0? I11;V0TI;1SL
"conomic ?i$eraliGation
39
TYBBI
In!estor 0.areness
?o. 8rofita$ilit%
Customer Ser!ice
Keen Com&etition
Im&ro!ed Communication Tecnolog%
2lo$al Im&act
ECONOMIC LIBERALISATION
4eform of te financial sector constitutes te most im&ortant
com&onent of India*s &rogrammed to.ards economic li$eraliGation. Te
recent economic li$eralisation measures a!e o&ened te door to foreign
com&etitors to enter into our domestic market.
INVESTOR A!ARENESS
=it a gro.ing a.areness amongst te in!esting &u$lic# tere as
$een a distinct sift from in!esting te sa!ings in &%sical assets like
gold# sil!er# land# etc. to financial assets like sares# de$entures# mutual
funds# etc.
LO! PROFITABILITY
Te &rofita$ilit% of te ma'or financial intermediar%# namel% te
$anks as $een !er% muc affected to recent times. Tere is a decline in
te &rofita$ilit% of traditional $anking &roducts.
CUSTOMER SERVICE
1o.-a-da%s te customer*s e9&ectations are !er% great. Te% .ant
ne.er &roducts at lo.er cost or at lo.er credit risk to re&lace te
e9isting one.
KEEN COMPETITION
Te entr% of man% financial intermediaries in te financial sector
market as led to se!ere com&etition among temsel!es. Tis keen
com&etition as &a!ed te .a% for te entr% of !aried nature of
40
TYBBI
inno!ati!e financial &roducts so as to meet te !aried re:uirements of te
in!estors.
IMPROVE COMMUNICATION TECHNOLOGY
Te communication tecnolog% as $ecome so ad!anced tat e!en te
.orld*s issuers can $e linked .it te in!estors in te glo$al financial
market .itout an% difficult% $% means of offering so man% o&tions and
o&&ortunities.
GLOBAL IMPACT
Man% of te &ro!iders and users of ca&ital a!e canged teir roles
all o!er te .orld.
VARIOUS ELEMENTS OF FINANCIAL SERVICES MARKETING:
In te formulation of o!erall marketing strategies in te financial
ser!ices industr%# te follo.ing decisions are considered im&ortant in te
&resent li$eraliGed en!ironment
8roduct 8lanning
8ricing 8olic%
Branding
Customer Ser!ice
/istri$ution 8olic%
8romotion 8olic%
Market Segmentation
41
TYBBI
PROUCT PLANNING
Te financial com&anies sould aim at creating ne. generic
&roducts as &er te needs of te customers. 0ttracti!e scemes a!e to $e
created .it efficient deli!er% in order to o&timiGe customer satisfaction.
It is al.a%s $etter to $ring modification in te e9isting &roducts $%
adding some ne. features and elimination of outdated &roducts.
In te com&etiti!e market# te task of selling a &roduct is touger
since te core &roducts are te same. Tis necessitates &roduct
differentiation. Tere sould $e different &roducts in te arra%s of te
com&an%# so tat te com&an% can cater to te needs of te different
grou&s of in!estors or customers.
In order to design and de!elo& ne. &roducts one sould take te
el& of market researc to asses te needs of te customers# a!aila$ilit%
of e9isting &roduct and future gro.t in demand.
PRICING POLICY
Te &otential customers generall% frame teir in!estment strategies
in te $ackground of &ricing decisions. Te &rices take different
dimension de&ending u&on te t%&e of financial ser!ices. Te &rice of
financial ser!ices is al.a%s linked .it returns.<or an insurance com&an%
te &rice means te &remium# for te $anks it is te net asset !alue.
>o.e!er# .ile deciding &ricing# incenti!es# $rokerage and agenc%
commission is also to $e decided in ad!ance $ecause te e9&enses
to.ards tese items .ill affect te ultimate returns to te in!estors. 0fter
all in all cases onl% te com&etiti!e &rice and te &romised return catc
te sentiment of te customers.
BRANING
Brand name !er% often signifies te market segments# inerent
$enefits and in!estment o$'ecti!es and also te customer*s lo%alt%. Tis
&rocess consists of &roduct name# designing $rand &olic% like indi!idual
famil% or cor&orate $rand.
CUSTOMER SERVICES
42
TYBBI
Marketing of ser!ices is significantl% influenced $% te :ualit% of
ser!ice and inter&ersonal relationsi& $et.een te customers and ser!ice
organiGations. In order to moti!ate te &otential customers# te ser!ice
sould $e offered in te $est &ossi$le manner. In te com&etiti!e .orld of
financial ser!ices# market orientation of &roduct and customer orientation
of ser!ice are te t.o ke% factors. 8rom&t and timel% ser!ice as &er te
needs of customer .ould make difference. Te &ersonal touc in ser!ices
as so.n a &ositi!e result in te recent times. Te :ualit% of ser!ices
offered in turn el&s to de!elo& lo%alt% among te customers. Ser!ices
can $e &ro!ided eiter directl% $% te com&an% troug te ser!ice te
ser!ice de&artment or troug intermediaries like registrars or e9ternal
agencies. Customers are in!ol!ed in a !er% real relationsi& .it te
com&an% and e!en one .eak link can significantl% damage teir trust.
MARKET SEGMENTATION
Te financial ser!ice industries are e9&ected to satisf% $ot rural and
ur$an customers# small and large-scale entre&reneurs# ig and lo.
earning customers# retail and institutional customers. Te segmentation of
market $ased on te canging needs of customers is considered to $e te
most a&&ro&riate solution. Identification of market segment is crucial to
take furter action regarding &romotion and distri$ution of te &roduct.
Market segment .ill $e identified in te $asis of nature of te &roduct#
direct and indirect $enefits of te &roduct on te one and and $ea!ior
or attitude of te customers# etc.
ISTRIBUTION POLICY
Te determination of &ro&er cannel for selling te &roduct is also
a ke% issue in te marketing of financial &roducts. Before launcing a
&roduct# tere sould $e a clear-cut idea a$out te cannel of distri$ution
of te &roduct so as to make it accessi$le to te ultimate customers. Te
cannels .ic directl% link to te cudtomers or troug te
intermediaries like agents# $rokers# francisees sould $e determined
$ased on te internal marketing strengt of te organiGation.
PROMOTION POLICY
43
TYBBI
Te &romotion of sale ma% $e troug ad!ertisement# road so.s#
&ersonal finance so.s# contest# etc. te !arious &romotional tools used
$% te ma'or &la%ers are &ersonal and im&ersonal &romotions.
EMERGING FUNCTIONS IN MARKETING OF FINANCIAL
SERVICES
Te follo.ing are te emerging functions of financial ser!ice
industries and a!ing greater significance in tis com&etiti!e market.
8roduct /e!elo&ment
Cannel Management
0&&raisal Management
Territor% Sales Management
Branc Management
Brand Management
PROUCT MANAGEMENT
To monitor &rofita$ilit% for eac &roduct line. To 0sses te &otential
of retail asset $usiness $ased on market feed$ack and to enance e9isting
&roducts and de!elo& ne. &roducts.
CHANNEL MANAGEMENT
To identif% tird-&art% agencies suc as direct sales agents#
!erification agencies and to finaliGe terms and conditions# res&onsi$ilities
and &ricing of eac agenc%. To monitor te &erformance of tese agencies
on an ongoing $asis and ensure a ig-:ualit% cannel o&eration.
APPRAISAL MANAGEMENT
44
TYBBI
To scrutiniGe and recommend and a&&ro!al or re'ection of retail
loan &ro&osals recei!ed from $rances $% .a% of credit scoring s%stem
and sound 'udgment.
TERRITORY SALES MANAGEMENT
To $uild te retail asset $usiness in liaison .it direct selling
agents and $ranc ead in order to acie!e te $usiness targets for te
region. To identif% and recommend suita$le tird-&art% agencies for
marketing# collection and !erification of o&erations as .ell as to ensure
:ualit% of credit &ortfolio and flo.-u& default cases.
BRANCH MANAGEMENT
To acie!e te $usiness target of te $ranc .it a &redominantl%
retail $usiness.
BRAN MANAGEMENT
To de!elo& strong $rand name for te &roduct and cor&orate image
for te com&an% troug !arious inno!ati!e de!ices.
Toda%*s financial ser!ices industr% re:uires ne. strategies to
sur!i!e and continue to o&erate. Te% a!e to ado&t ne. marketing
strategies and tactics .ic .ill ena$le tem to ca&ture te ma9imum
o&&ortunities .it lo.est risk in order to ena$le tem to sur!i!e and to
meet te toug com&etition from glo$al &la%ers of te domestic and
foreign origin.
PORTFOLIO MANAGEMENT
45
TYBBI
8ortfolio management means selection of securities and constant
sifting of te &ortfolio in te ligt of !ar%ing attracti!eness of te
constituents of te &ortfolio. It is a coice of selecting and re!ising
s&ectrum of securities to it .it te caracteristics of an in!estor.
OBJECTIVES
S>;4T T"4M >I2> 84I;4ITY ;BQ"CTIV"S
?;12 T"4M >I2> 84I;4ITY ;BQ"CTIV"S
?;= 84I;4ITY ;BQ"CTIV"S
M;1"Y M0KI12 ;BQ"CTIV"S
SHORT TERM HIGH PRIORITY OBJECTIVES
In!estors a!e a ig &riorit% to.ards acie!ing certain o$'ecti!es
in a sort time. <or e.g. a %oung cou&le .ill gi!e ig &riorit% to $u% a
ouse. Tus# in!estors .ill go for ig &riorit% o$'ecti!es and in!est teir
mone% accordingl%.
LONG TERM HIGH PRIORITY OBJECTIVES
Some in!estors look for.ard and in!est on te $asis of o$'ecti!es
of long-term needs. Te% .ant to acie!e financial inde&endence in long
&eriod. <or e.g. in!esting for &ost retirement &eriod or education of a
46
TYBBI
cild etc. In!estors usuall% &refer a di!ersified a&&roac .ile selecting
different t%&es of in!estments.
LO! PRIORITY OBJECTIVES
Tese o$'ecti!es a!e lo. &riorit% in in!esting. Tese o$'ecti!es
are not &ainful. 0fter in!esting in ig &riorit% assets# in!estors can
in!est in tese lo. &riorit% assets. <or e.g. &ro!ision for tour# domestic
a&&liances etc.
MONEY MAKING OBJECTIVES
In!estors &ut teir sur&lus mone% in tis kind of in!estment. Teir
o$'ecti!e is to ma9imiGe .ealt. 3suall%# te in!estors in!est in sares of
com&anies# .ic &ro!ide ca&ital a&&reciation a&art from regular income
from di!idend.
CASE STUIES
ICICI BANK
47
TYBBI
I a!e a account .it ICICI
$ank $ecause it*s our salar% account#
and .e are kind of forced to use
ICICI Bank. 0nd since .e a!e a
salar% account# .e get a decent
ser!ice. But %es# te credit card
de&artment# and te call centre sucks
$ig time. Tat*s m% &ersonal
e9&erience.
Te% &ut %ou on old for B to -, mins. ('ust imagine listening to
te same 'unk musicStoneSad!erts continuousl%)# and ten tere is no
guarantee tat %ou .ill get to s&eak to someone or %our &ro$lem .ould
$e sol!ed. Infact# toda% I .as &ut on old for around D mins# and after
tat te call as a$ru&tl% disconnectedU 1e9t time I call te call center# I
get to s&eak to a totall% ne. &erson# and start from scra& descri$ing te
&ro$lem. Te &eo&le at te call center 'ust &romise to do tings# and
noting actuall% a&&ens. If it a&&ens# ten %ou are reall% %our luck.
>o&e K V Kamat reads tis
M% ad!ice to all - 0!oid ICICI as far as &ossi$le. Man% &eo&le
&redict tat te $ank .ould colla&se in a fe. %ears from no.. >a!e an
account .it an% nationaliGed $ank.
>SBC B01K
>SBC $ank reco!er% agents $as u& BE-%ear-old &rofessor
T.o da%s $ack 4BI ad &ut on its .e$site guidelines for te $ank*s
reco!er% agents and in it as .arned te $anks a$out strict actions .ould
$e taken against tem and e!en &enaliGe te license of te $ank $ut it
seems still te .arning is falling on deaf ears. 0gain an incident of
unruliness $% reco!er% agent of te $ank as come into limeligt. It is
>SBC $ank in ne.s. Tis time te !ictim is a &rofessor of a re&uted
engineering college# 8rof Q.S. Kalra. >e as carged a multinational $ank
.ic allegedl% sent a &ack of intimidating loan reco!er% agents to ound
im. Kalra ad taken a loan of 4s A.B lak to $u% a Santro from te 1oida
48
TYBBI
$ranc of >SBC last %ear. Te incident took &lace in Se&tem$er $ut te
BE-%ear-old &rofessor. >e is o&eful of 'ustice# encouraged $% te recent
strict guidelines issued $% te 4BI against $anks intimidating customers
to reco!er loan. "!en te <inance Minister P5%.%$ M";1/5F// too as
iterated tat 6strictest action7 .ill $e taken against $anks stoo&ing to
strong-arm metods.8rof Q.S. Kalra of te /eli College of "ngineering
as filed is com&laint against te $ank. In is com&laint e told te
&olice tat te agents a$used and $eat im u& outside te Indra&rasta
3ni!ersit% cam&us in nort /eli for dela%ing montl% installments of a
loan. Te% did not care to sto& e!en after e told tem tat e .as a eart
&atient and tat e ad de!elo&ed cest &ain. 6Te% e!en treatened to
kill me#7 Kalra said in is com&laint. 8olice a!e registered a case of
criminal intimidation against te loan reco!er% agents# allegedl% ired $%
>SBC $ank. /e!es Candra Sri!asata!a# de&ut% commissioner of &olice
(nort) told te &ress 6Te% got into Kalra*s car and refused to lea!e till
e &aid te loan installments immediatel%. Te% urled a$uses# and $eat
im u&. =en te% sa. Kalra de!elo&ing eart &ro$lem# te% left im7
CONCLUSION OF FINANCIAL SERVICES
<inancial ser!ices com&rises of assisting in sourcing of funds# funding#
ad!ising and &rocedural assistance in de&lo%ment of funds. <inancial
ser!ices is te integral &art in te modern $usiness .orld.
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TYBBI
Man% of te financial ser!ices are &ro!ided $% te em&lo%ees of te firm
itself i.e. it $ecomes an internal or finance manager*s function.
;ter.ise te firm .ould source it from an e9ternal agenc%.
Commercial $anks# mercant $anks# in!estment $anks# mutual funds#
!enture ca&ital funds# rating agencies# non-$anking finance com&anies
(1B<C)# leasing and ire &urcase com&anies# are some of te entities
tat &ro!ide financial ser!ices.
BIBLIOGRAPHY
===.>SBC.C;.I1
===.ICICI.C;M
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