Corporate investment banking is a segment that has opened up in India in the recent past and with good reason. The benefits of this particular kind of banking are far reaching. This has been realised and therefore today, the need for it in India has grown even more.
The primary role of investment banking in the corporate sector
The most basic role of investment banks is corporate advisory services. When an investment bank is tied up with a corporate, its primary services will include advising the corporate on various aspects like acquisitions and mergers for example. The investment bank in question will also be advising the company on managing their public assets. Selling and buying advisories also come from an investment bank.
Demarcations in India
When it comes to banks in India, the line that divides investment banks from other banks is rather faint. There could be many reasons for this. Two of the most important ones are the fact that investment banking for corporates is still a relatively new field and the second is the fact that every bank irrespective of its domain wants to provide its customers with the best service. Therefore almost every bank offers its customers corporate finance solutions as well.
So what does investment banking really do?
If you were to really sit and analyse the job of the corporate investment banking segment, you will find that its primary objective is to help the capital market move financial resources from the investors to the issuers. This is also called capital intermediation. In lay mans terms it is moving funds from those to have to those who can use them to contribute to the nations GDP.
Investment banking as a segment can be very challenging, exciting and vibrant. It is perhaps because of this that it becoming a very popular business segment in India.
SMC Capitals is an Investment Banking arm of SMC Global and is a SEBI registered Merchant Banker that has published many informative articles on Corporate Investment Banking, Corporate Finance Solutions and Corporate Advisory Services.