Deutsche bank's corporate and Investment Banking : The Anshu Jain way Case Summary Deutsche Bank, the

leading German bank, established in 1870, had earned a pre-tax profit of 6.4 billion euros for the year 2005, 4.8 billion euros being contributed by the Corporate & Investment Banking (CIB) division. The CIB division of the Bank was co-headed by Anshu Jain, who was appointed in September 2004 to jointly head the division along with Michael Cohrs. All through his career at Deutsche Bank, Jain had specialised in innovating crossproduct solutions and monitoring the derivative products such as credit default swaps and collateralised debt obligations. The success of these financial instruments had played a key role in helping the Bank to reach the goal of achieving 25% of pre-tax return on equity and grab the 'Bank of the Year Award' for the year 2005. However, in the process, the Bank's investment division was confronted with a tarnished image. Corporate and Investment Bank Group Division (CIB) Deutsch Bank Under Anshu jain. (comparison on 2004 and 2005) CIB reported underlying pre-tax profit of 1.3 billion i.e 25% in the third quarter 2005, a significant increase of 136% from the same period last year. Income before income taxes, which additionally reflects restructuring charges of 54 million in the third quarter 2005, increased from 557 million to 1.3 billion. Revenues of 4.1 billion in the third quarter 2005 increased 41% from the same period in 2004. The banks Sales and Trading businesses benefited from strong customer demand for capital markets products. Sales and Trading (Debt and other products) generated revenues of 1.9 billion in the third quarter 2005, an increase of 29% over the third quarter 2004 and a record third quarter performance. Structured products grew strongly, driven above all by a very strong performance in Credit Derivatives, reflecting a significant recovery in customer activity after the difficult conditions in credit markets during the second quarter. Foreign Exchange registered substantial year-on-year growth, reflecting healthy market volumes in foreign exchange markets, a stable interest rate environment and continued product innovation. Sales and Trading (Equity) generated revenues of 1.0 billion, an increase of 155% versus the third quarter 2004. All business lines saw significant revenue growth. Global Equity Derivatives grew very strongly, reflecting high levels of client demand and the banks strong position in a fast-developing product. Origination and Advisory generated revenues of 571 million in the third quarter, an increase of 25% over the third quarter 2004.

Loan Products generated revenues of 240 million for the third quarter, an increase of 7% over the third quarter 2004. The increase was driven by mark-to-market valuation changes on the banks credit risk hedge positions. Transaction Services generated revenues of 494 million in the third quarter, an increase of 7% over the third quarter 2004. Provision for credit losses was 5 million in the quarter, and thus remained at the very low levels achieved in the first and second quarters of 2005. The sustained low level of provision for credit losses reflected the quality of the banks corporate loan book and further releases from workouts. For the third quarter of 2005 CIBs operating cost base was 2.7 billion, an 18% increase from the comparable period last year, largely reflecting the impact of performance-related

Prospects and perils for deutsche bank under Anshu Jain The Reputational blow As AnshulRastogi had traded with CDO,s derivative products which based on iTraxx index of credit default swaps. He also overstated his trading position by Euro 30 million for that bank practises came into question and a result bank suspended AnshulRastogi for his misconduct and indisciplinary action. Other was BPI which is with Deutsche bank as partner in Italy and want to buy major stake in BancaAntonianaPopolareVeneta which is needed Bank of Italys permission. BIP was caught in criminal investigation on GianpieroFiorani the CEO, for showing misleading financial documents. As Deutsche Bank came global under Anshu Jain it earned The Bank of the Year Award by Thomson Financials. In 2005 it became one of the worlds foremost house bond, securitisation, and leveraged finance house, has first rate ECM franchise and global leaderin flow structured products across credit equity, FX and rates derivatives.

In case of Unipol Deutsche bank was only financial advisor its not financing them. After Unipol Duetsche bank moved its leg towards growth of operations as Mr Jain find out core areas of expansion such as expanding geographically, developing new equity/fixed crossover products, mortgage-backed securities, extending bond maturities upto 50 years and concentration on private equity sponsorship.

Conclusion As Anshu Jain had taken over responsibilities at Deustche bank very well by expanding into Global investment banking which had made their growth faster. Not only duties he handled various issues of Italy will doing expansion. He was focused towards core areas of providing innovative product through equity , securities and private equity sponsorships which given him tremendous success for his career and as well the bank too.