Dream sector: Corporate Finance

Dream Company: Deutsche Bank

What is Corporate Finance?

Corporate finance is related to the corporations and the financial decisions that are taken by
the corporations. There are several important concepts of corporate finance and several other
financial tools that are behind all these corporate decisions.
Used to make investment decisions in both long term and short term. All the decisions that are
related to the capital investment are long-term decisions and working capital management is
termed as short-term decision.
Real options analysis is one of the important concepts of corporate finance. The real options
analysis helps in evaluating the two options termed as call and put options. These evaluations
are also very helpful in taking the long-term investment decisions or capital investment
decisions.
Another important concept that is related to the corporate finance sector is cost benefit
analysis. This concept is used to determine total input in a project and the results from that
project. Through this concept the corporations can identify the options where the investments
can be done.
Financial analysis is also among the important concepts of corporate finance. This analysis is
carried out by a group the experts. The concept of financial analysis is used in deciding the
stableness and profitability of a particular business venture.
The concept of financial ratio that is also popular as accounting ratio. As a financial concept,
this ratio is used widely by the managers, shareholders, analysts of different fields and many
others in the field of finance.

Performance of the Corporate Finance

sector in India

The pattern of corporate financing in India has been different throughout its economic
history. The outline of corporate financing in India has been determined by the economic rules
and regulations that operate at different points of time.
During the 30-year period in Indian economy ranging from 1960 to 1990 the stress of Indian
economy was on public finance. There were a lot of rules and regulations regarding various
economic issues like rates of interest and many more. During the middle part of the decade of
80s there was some change in the Indian economic scenario. The performance of the capital
markets in India improved.
After 1992 a lot of reforms have been made in the capital markets of India. The performance
of the stock markets of India was remarkable in the 1990s. This was keeping with the healthy
state of the Indian economy in and around that time.
All this altered the trend of corporate financing in India. The dependency on banks for loans
or other financial assistance reduced to a significant extent. The equity capital that was gained
from the capital markets came up as a suitable alternative for them.

The banking sector of India has played an important role in the context of the development of
Indian economy. The banks of India have been doing well with the distribution of funds and
monetary resources for the purpose of the development of India's economy.

About Deutsche Bank.

Parent Company

Deutsche Bank AG

Category

Banking

Sector

Financial Institutions

Tagline/ Slogan

A Passion to Perform

USP

Deutsche Bank provides high quality banking products

and services like private banking, insurance, investment,
wealth management, prepaid cards & loans

STP
Segment

Enterprise and Individuals who

are seeking financial help and
advice

Target Group

Large enterprises and rich

individual investors

Positioning

A bank which works with all

enthusiasm for giving the best
to its customers

 Deutsche Bank started operations in India in 1980. It is known for

strong client relationships, highly specialized product technology and

global connectivity, all built around strong corporate governance
standards.
Deutsche has established strong relationships with its clients in India
in the last 30 years. It has 17 branches across the country in Mumbai,
New Delhi, Bangalore, Chennai, Kolkata, Noida, Aurangabad,
Gurgaon, Kolhapur, Pune, Salem, Vellore, Moradabad, Ludhiana and
Ahmedabad, as well as Global Service Delivery Centres in three
locations.
Its strength lies in areas such as Debt and Derivatives ;Global
Transaction Banking cash management, trade finance and custody;
Investment Banking, Institutional Equity broking,asset and private
wealth management, retail banking and BPO.

Corporate Finance in Deutsche Bank

As one of the world's leading investment banks,
Deutsche Bank's Corporate Finance business provides
the full range of integrated investment banking
products and services for large-cap and mid-cap
corporates, financial institutions, governments,
government agencies, hedge funds and financial
sponsors.

SWOT Analysis

Strength

1.Strong brand name and good financial position

2.Geographic presence across the world in many
countries
3.R&D is a strength in wealth management
4.Diverse and wide product portfolio
5.Has over 102,000 employees
6.With a market share of 21 percent, Deutsche Bank is
the largest foreign exchange dealer in the world

Weakness

1.Intense competition from other leading banks

2. NPAs and fluctuating profits
3.Retail banking is a weakness compared to other
banks
4.Employee non-payment issues

Opportunity

1.Expansion in other countries

2.Diversifying portfolios for customers
3.Joint ventures and mergers

Threats

1.Changing govt regulations and financial crisis like

recessions
2.Varying interest rates may affect financial position

Competitors of Deutsche Bank

1. BNP Paribas
2. Citigroup
3. China Construction Bank Corporation
4. Bank of America
5. HSBC
6. National Australia Bank
7.Standard Chartered Bank
8.Royal Bank of Scotland

Porters 5 forces of competition

Bargaining Power of Customers

The German banking sector is developing from a seller's to a buyer's market. The highly
fragmented banking sector leads to strong competition between institutions. Market
transparency is greatly increased by the Internet. The increased confidence of customers and
their improved knowledge about the products and services strengthen the position of
customers.
Bargaining Power of Suppliers
Depositors are also capital supplier of bank, they will compare with other financial product to
see whether they can draw out capital or not. A far greater bargaining power has some
effects to the employees of banks and suppliers in the field of information and
communication technology
Threat of New Competitors
A particular threat especially in the German banking market are the banks and the online
discount brokers, passing through favorable terms due to leaner structures, highly
standardized products and lack of consulting services in the market and are a competition
with the established banks.

 Rivalry Among Existing Firms

In banking market, it often experiences exit barriers due to sunk costs. Moreover,
especially in Germany, there is strong competition for the rigid banking market, and
facing the entry of other competitors from other European countries. Important
action parameter of competition are price, quality and innovation, which are used to
distinguish the competitor's products and offer added value to the customers.
Threat from substitute products
The simpler the product, the higher the threat of substitute products. In the banking
industry: risk substitution by plant products of insurance companies, corporate
loans, which are taken directly from the capital market funds and certificates by
specialized companies. Largest threat of substitution are not from rival banks but
from non-financial competitors, investors, and small co-operative banks and
borrowing avenues. No real threat of substitute as far as deposits or withdrawals,
however insurances, mutual funds, and fixed income securities offered by nonbanking companies.

4 Ps of Marketing of Deutsche Bank

Products:
This includes sales and trading of securities, foreign exchange and derivatives
dealing, corporate advisory, M&A.
Under the Foreign Exchange and derivatives segment it deals in onshore swaps,
interbank interest rate and overnight index swaps, Government Bond Trading it is
one of the very few banks in the country offering such a distinguished suite of
services.
It offers Current account, loans, deposits and investment advisory services to
Individuals as well as small and medium corporate clients. It is one of the countrys
leading wealth management companies. Its main focus in this segment is to offer
innovative financial planning and investment products and
services to the High Net Worth individuals in the Country.
Place:
DBOI Global services which is subsidiary of the Deutsche Group Company to leverage
on Indias operating infrastructure and Qualified and talented Workforce to support
its global operations across various areas of Services and products the bank offers.
These service centres are strategically located in India at Jaipur, Bangalore and
Mumbai.

 Promotion:
It has placed itself as an innovative, performance oriented, leading global financial
services provider in the world. One of their main links to the customers is
Relationship managers; Productivity of these relationship managers is their biggest
focal point. Customers especially the HNIs which the bank focuses on are least
worried about the number of branches the bank has in the country they look for
Brand Image and Investment Expertise and services and Deutsche Bank stands for
that. To ensure that customers remain loyal to the bank, they encourage customers
to look for value additions to the products and services that they provide.
Pricing:
Deutsche bank offers products at a premium, it has positioned itself as a premium
brand offering highly sophisticated, technology driven, performance driven products.
One of its unique selling points is its Value added services. It encourages its
customers to go for banks which is highly efficient and has high level of expertise in
the field rather than looking for the strength of number of branches in the country
alone.

Trends in Deutsche Bank

Deutsche Bank_trends.pdf

Deutsche Bank in latest news

Nov 25, 2014
Deutsche Bank temporarily suspends MOL Global stock
coverage
Deutsche Bank has temporarily suspended its research
coverage on Nasdaq-listed MOL Global Inc until the
Malaysian online payment firm it helped go public almost
two months ago, provides more clarity on recent changes.
"We temporarily suspend our rating and estimates on MOL
Group until further clarity can be provided regarding the
company's announcement last Friday regarding the delayed
reporting of 3Q results and the resignation (of) MOL
Group's CFO," Deutsche said in a research report seen by
Reuters on Tuesday.