Shiwani Sharma 201513436: Equity Analysis of Bank

Contact At: akshatamitkapoor@gmail.
com
Project Report
On
EQUITY ANALYSIS OF BANK
IN PARTIAL FULFILMENT, OF
POST GRADUATE DIPLOMA IN BUSINESS ADMINISTRATION
(PGDBA - 2015– 2017]
Submitted By:
SHIWANI SHARMA
201513436
PGDBA-2015-17
SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL).
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Contact At: akshatamitkapoor@gmail.com
ACKNOWLEDGEMENT
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ACKNOWLEDGEMENT
I would like to express my heartfelt thanks to many people. This dissertation is an effort to
contribute towards achieving the desired objectives. In doing so, I have optimized all
available resources and made use of some external resources, the interplay of which, over
a period of time, led to the attainment of the set goals.
I take here a great opportunity to express my sincere and deep sense of gratitude to my
esteemed faculty for giving me an opportunity to work on this project. The support &
guidance from sir, was of great help & it was extremely valuable.
I also express my sincere thanks to all the people who, directly or indirectly, contributed in
time, energy and knowledge to this effort.
Shiwani Sharma
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INDEX
Particulars Page No.
INTRODUCTION 09 - 16
COMPANY/ORGANIZATIONAL PROFILE 17- 22
LITERATURE REVIEW 23- 47
DATA ANALYSIS & INTERPRETATION 48-53
CONCLUSION 54-55
BIBLIOGRAPHY 56-57
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INTRODUCTION
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INTRODUCTION
CONCEPT OF WEALTH MANAGEMENT
 Wealth Management Range

 Key Elements of Wealth Management Services
 Key Challenge Area
Solution Framework
Wealth Management – An Emerging Sector
Core Elements of Wealth Management Services
 Packaged at various levels
 Advisory
 Investment Processing (transaction oriented)
 Custody, Safekeeping and Asset Servicing
 End-to-end Investment Lifecycle Management
 Key function areas
 Financial Planning
 Client Profiling
 Investment Objective
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 Portfolio Strategy Definition / Asset Allocation

 Defining Portfolio Strategies and Portfolio Modeling
 Determination of Portfolio Constituents and Allocation of Assets
 Strategy Implementation
 Portfolio Management
 Portfolio Administration
 Performance Evaluation and Analytics
 Strategy Review and Alignment

 Recalibration of Portfolio Strategy
 Rebalancing, Reallocation and Divestment of Assets
 Key Challenge Areas
 Highly Personalized and Customized Services.

 Personal relationship driving the business.
 Evolving Client Profile.
 Client Involvement Level.
 Passion Investment (Philanthropy and Social Responsibility).
 Limited Leveraging Capabilities of Technology (as an enabler).
 Technical Architecture and Technology Investment.
 Intricate Knowledge of Cross-functional Domain.
 Solution Framework
 Quality of Service Level

 Universal Service Offering
 Investment in People Processes
 Price not a True Differentiator
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 Unconventional Delivery Channel and Communication

 Flexibility of Technical Architecture
 SERVICES PROVIDED BY WEALTH MANAGEMENT INSTITUTIONS
 Custodian Services
 Trust Services
 Retirement Plan Services
 ADVANTAGES AND LIMITATIONS
 Consumer Point Of View
 Wealth Management
 PMS vs. Wealth manager and fund manager.

 Is PMS for you?
 How to choose a PMS.
 Investment philosophy.
 Scheme benchmarks.
 Minimum investment.
 Returns.
 Cost structure.
 Frequency of disclosure.
 Broking house.
 Assets under management (AUM).
 CONCEPT OF ASSET CLASSES

 Asset Mix
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 List Of Different Asset Class

 Fixed Deposits
 Merits and Demerits
 Interest rates on FDs
 Effective Return
 MUTUAL FUND
 Open-end fund
 Exchange-traded funds
 Equity funds
 Capitalization
 Bond funds
 Money market funds
 Funds of funds
 Hedge funds
 EQUITY INVESTMENT
 Direct holdings and pooled funds
 COMMODITIES MARKET
 ART FUND
 Diversified portfolio
 Tie-ups with galleries
 REAL ESTATE FUND

 INSURANCE PRODUCT
 General Insurance
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 Unit Linked Insurance Plan (ULIP)
 STRUCTURED PRODUCT
 Composition
 Risks
 GOLD
 Factors influencing the gold price
 gold becomes desirable in times of

 Bank failures
 Low or negative real interest rates
 War, invasion, looting, crisis
 CURRENCY
 Portfolio composition of currency
 Companies providing Wealth management services
 KOTAK SECURITIES
 INTRODUCTION
 PRODUCTS
 ASSET CLASSES USED
 ASSET SIZE
 INVESTMENT PHILOSPHY
 MORGAN STANLEY
 INTRODUCTION
 PRODUCTS
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 ASSET SIZE
 MOTI LAL OSWAL

 INTRODUCTION
 PRODUCTS
 ASSET SIZE
 INVESTMENT PHILOSOPHY
 RELIGARE WEALTH MANAGEMENT

 INTRODUCTION
 PRODUCTS
 ASSET SIZE
 STANDARD CHARTERED
 INTRODUCTION
 PRODUCTS
 ASSET SIZE
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 HSBC FINANCIAL PLANNING SERVICES

 PRODUCTS
 ASSET SIZE
 CITI BANK
 INTRODUCTION
 PRODUCTS
 ASSET SIZE
 INVESTMENT PHILSPOHY
 ICICI WEALTH MANAGEMENT

 INTRODUCTION
 PRODUCTS
 ASSET SIZE
 INVESTMENT PHILSPOHY
 AXIS BANK & WEALTH MANAGEMENT

 Procedure for entertaining a client in AXIS BANK
 Coustmer Profiling at Axis Bank
 Upto 30 years of age
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 30-45 years of age
 45-60 years of age
 over 60 years
 WEALTH MANAGEMENT : INDIAN CONCERN
 Position of India in Wealth Management

 Risk aversion of Indian customers
 MIDDLE EAST & WEALTH MANAGEMENT
 WEALTH MANAGEMENT ON GLOBAL PRESPECTIVE
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COMPANY/ORGANIZATION PROFILE
COMPANY/ORGANIZATION PROFILE
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COMPANY PROFILE
Axis Bank was the first of the new private banks to have begun operations in 1994, after
the Government of India allowed new private banks to be established. The Bank was
promoted jointly by the Administrator of the specified undertaking of the Unit Trust of
India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC) and other four PSU insurance companies, i.e. National
Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance
Company Ltd. and United India Insurance Company Ltd.
The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding
(other than promoters) at 57.60%.
The Bank’s Registered Office is at Ahmadabad and its Central Office is located at
Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices and
Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day
banking convenience to its customers. This is one of the largest ATM networks in the
country.
The Bank has strengths in both retail and corporate banking and is committed to adopting
the best industry practices internationally in order to achieve excellence.
THEORETICAL BACKGROUND
The term Wealth management also now a days having very importance. So many Banking
companies are engaged in the business of Wealth management. The premier insurance
industry is now booming because so many bankers are also adopting and playing safe in
the business of insurance the term called is Bancassurance. Now a day Wealth
Management has very craze in the business world. In a survey it was found that India had
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100,000 miolliners day end of year 2006 is now grow up by 21% from a year earlier (Asia
pacific Wealth report).
Wealth management services area in financial sector has been witnessing more attention
during last couple of years. Capgemini Merrill Lynch Wealth Report 2007 cites number of
HNWIs globally to be around 9.5 million with wealth held by them totaling to US$37.2
trillion in year 2006. Value of wealth held by HNWIs represents an increase of around
11.4% since 2005.
Considering long-term high value business proposition, number of banks and niche players
has started offering full range of wealth management services targeted to HNWIs and
emerging affluent.
While growing volume of premium services to affluent clients becomes the key driver for
most of the service provider firms, many unique elements inherent to wealth management
services requires completely different service offering model than the existing model for
transactional services. Greatly accustomed in offering commoditized financial services so
far, demand of unconventional form of service model poses a big challenge in charting
growth path for these wealth management firms.
CONCEPT OF WEALTH MANAGEMENT
The term Wealth management formed with two words Wealth & Management. The
Meaning of Management They have already seen in the steering introduction. The
meaning of Wealth is – Funds, Assets, investments and cash it means the term Wealth
management deft with funds Asset, instrument, cash and any other item of similar nature.
While defining Wealth Management They have to think in planned manner. “Wealth
Management is an all inclusive set of strategies that aims to grow, manage, protect and
distribute assets in a much planned systematic and integrated manner”.
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WEALTH MANAGEMENT RANGE
The Indian market has been segmented by Wealth management service providers into five
categories, namely:
 Ultra-high net worth, or Ultra-HNW (in excess of US$30 million), will have a total
population of 10,500 households by 2013.
 Super high net worth (between US$10 and $30 million) will have a total population
of 42,000 households by 2013.
 High net worth (between US$1 million and $10 million) will have a total
population of 320,000 by 2013.
 Super affluent (between US$125,000 and $1 million) will have a total population
of 350,000 households by 2013.
 Mass affluent (between US$25,000 and $125,000) will have a total population of
1.8 million households by 2013.
Mass market (between US$5,000 and $25,000) will have a total population of 39 million
households by 2013.
Key Elements of Wealth Management Services
Wealth management services involve fiduciary responsibilities in providing professional

investment advice and investment management services to a client. Depending on the
mandate of the services given to the Wealth Manager, wealth management services could
be packaged at various levels:
a) Advisory
b) Investment Processing (transaction oriented)
c) Custody, Safekeeping and Asset Servicing
d) End-to-end Investment Lifecycle Management
Wealth management services comprises of following key function areas of:
(a) Financial Planning

(b) Portfolio Strategy Definition/ Asset Allocation / Strategy Implementation
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(c) Portfolio Management –Administration, Performance Evaluation and Analytics

(d) Strategy Review and Modification.
Key Challenge Area
Wealth management firms face many challenges in formulating winning services offering
meeting the client needs. Some of key challenges faced by wealth management firms are:
1. Highly Personalized and Customized Services

2. Personal relationship driving the business
3. Evolving Client Profile
4. Client Involvement Level
5. Passion Investment (Philanthropy and Social Responsibility)
6. Limited Leveraging Capabilities of Technology(as an enabler)
7. Technical Architecture and Technology Investment
8. Intricate Knowledge of Cross-functional Domain
Solution Frame work
A HNWI client expects exclusiveness in services and key to success for a firm lies in
offering exclusiveness in services delivery (high quality services on most personalized
basis), going beyond client expectations.
A solution framework with considered inclusion of following key elements would help
firms in meeting and exceeding client needs towards sustainable business growth:
1. Quality of Service Level: Highly focused around client needs, a broad framework of
service offering would be revolving around: Anticipate, Analyze, Advice, Act and
Monitor cycle.
2. Universal Service Offering
3. Investment in People Processes
4. Price not a True Differentiator
5. Unconventional Delivery Channel and Communication
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6. Flexibility of Technical Architecture: Against the background of lack of clarity on

business model and involved process, A loosely oriented technical architecture with
optionality and mix of Build – Buy – Integrate components would be considered as a
good beginning point.
To meet the information technology requirements, a firm has several alternatives (or
combination of alternatives) to consider:
 Integrated solution approach: Developing in-house applications to meet end-to-end

new business requirements.
 Service Bureau /ASP Model: Information technology service providers offering
integrated end-to-end processing infrastructure and services including core of
business processes of wealth management.
 Stand-alone commercial software product/solutions: Pre-packaged solutions that
can be focused to specific part of services or provide comprehensive end-to-end
processing.
To provide enough resilience and high business relevance, any of the considered option
and associated technical structure should keep due provisions for the following key
elements:

 Rule based processing to manage complex business rules and service definitions.
 Client profile / data management to cater a profile driven solution offering.
 Complex decision support and client oriented analytics.
 Flexibility to incorporate manual processing interfaces in applications.
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Contact At: akshatamitkapoor@gmail.

EQUITY ANALYSIS OF BANK

SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL).

Particulars Page No.

COMPANY/ORGANIZATIONAL PROFILE 17- 22

LITERATURE REVIEW 23- 47

DATA ANALYSIS & INTERPRETATION 48-53

CONCEPT OF WEALTH MANAGEMENT

 Wealth Management Range

Wealth Management – An Emerging Sector

Core Elements of Wealth Management Services

 Packaged at various levels

 Key function areas

 Portfolio Strategy Definition / Asset Allocation

 Strategy Review and Alignment

 Key Challenge Areas

 Highly Personalized and Customized Services.

 Quality of Service Level

 Unconventional Delivery Channel and Communication

 SERVICES PROVIDED BY WEALTH MANAGEMENT INSTITUTIONS

 ADVANTAGES AND LIMITATIONS

 Consumer Point Of View

 PMS vs. Wealth manager and fund manager.

 CONCEPT OF ASSET CLASSES

 List Of Different Asset Class

 Money market funds

 Tie-ups with galleries

 REAL ESTATE FUND

 Unit Linked Insurance Plan (ULIP)

 gold becomes desirable in times of

 Companies providing Wealth management services

 ASSET CLASSES USED

 ASSET CLASSES USED

 MOTI LAL OSWAL

 ASSET CLASSES USED

 RELIGARE WEALTH MANAGEMENT

 ASSET CLASSES USED

 ASSET CLASSES USED

 HSBC FINANCIAL PLANNING SERVICES

 ASSET CLASSES USED

 ASSET CLASSES USED

 ICICI WEALTH MANAGEMENT

 ASSET CLASSES USED

 AXIS BANK & WEALTH MANAGEMENT

 Coustmer Profiling at Axis Bank

 Upto 30 years of age

 30-45 years of age

 45-60 years of age

 WEALTH MANAGEMENT : INDIAN CONCERN

 Position of India in Wealth Management

 MIDDLE EAST & WEALTH MANAGEMENT

 WEALTH MANAGEMENT ON GLOBAL PRESPECTIVE

CONCEPT OF WEALTH MANAGEMENT

WEALTH MANAGEMENT RANGE

Key Elements of Wealth Management Services

Wealth management services involve fiduciary responsibilities in providing professional

Wealth management services comprises of following key function areas of:

(a) Financial Planning

(c) Portfolio Management –Administration, Performance Evaluation and Analytics

Key Challenge Area

1. Highly Personalized and Customized Services

Solution Frame work