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SUMMER 2011 INTERNSHIP REPORT

ON

SYNOPSIS OF Corporate Investments


AT

Invest Capital Bank


(Ittehad Branch,DHA)

SUPERVISORS:
Ms.Muniba Sayeed
Mr.Salman Shahab

DURATION
(JUNE 22, 2011 AUGUST 02, 2011)

SUBMITTED TO:
HEAD OF HR (Invest Capital Bank)

SUBMITTED BY:
Murtaza Naseem
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INSTITUTE OF BUSINESS ADMINISTRATION


JULY 30, 2011
LETTER OF AUTHORIZATION
July 29, 2011

Dear Readers:

As internee at Invest Cap, my training supervisor of internship program Ms.


Muniba authorized me to conduct a research on the topic, Corporte Investment
Opportunities at Invest Cap. I was required to conduct the research on the
selected topic, in accordance with the acquired learning throughout the internship
period.
This report analyzes the aspect of functions and operations of investment
banking. Moreover it also provides the detailed overview of its impact on the lives of
account holders. A brief portrayal of the concept, Investment banking, enables us
to understand the concept of commercial banking more comprehensively.

The report is required to be submitted on July 30, 2011.

Sincerely,

Murtaza Naseem
BBA (Executive)
Institute of Business Administration
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LETTER OF TRANSMITTAL
July 29, 2011
Head of Recruitment Department
Invest Capital Limited
Karachi.

Subject: Synopsis of Corporate Investment Banking


Dear Ms. Muniba:
Here is the final research report on the topic, Corporate Investment Banking
Banking
which you had authorized me to conduct at the commencement of this internship
program. The report is now geared up for your perusal.
This report describes the overview of branch banking. I have also analyzed the
operations and functions conducted by branch to facilitate its customers. The only
limitation that I faced during my research was the deadline which I had to meet
keeping in view the mass of data I gathered.
The organizing of this research report has been a magnificent learning experience
for me and I thank you for giving me this prospect to benefit it. I have worked
assiduously with my toiling endeavors to provide you a real and complete picture of
branch banking and SME department. If you have any queries, please email me at
fahad.ali@khi.iba.edu.pk. I would be pleased to respond to your reservations.

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Sincerely,

Murtaza Naseem
(BBA) Executive
Institute of Business Administration

LETTER OF ACKNOWLEDGEMENT
July 30, 2011
Head of Recruitment Department
Invest Capital Limited
Karachi.

Dear Readers:
There is no superior assistance than the assistance and guidance by
Almighty ALLAH. Moreover, it is important to acknowledge the efforts and help
provided to me by several individuals, without whom it would not have been
possible to complete this report.
I am deeply indebted to my branch manager Mr. Ahmed Ali Naqvi, whose
help, stimulating suggestions and encouragement helped me in all the time of
research for and writing of this report. I also cordially appreciate and admire the
phenomenal support of Mr. Ashar, Mr. Salman Shahb, Ms. Kiran Jawes and
Ms.Muniba Sayeed.
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It is worth mention to applaud the efforts of all the passionate and zealous
people who directly as well as indirectly worked hard and co-operated with me to
complete this report.
Thanking you,
Sincerely,

Murtaza Naseem
(BBA) Executive
Institute of Business Administration

TABLE OF CONTENTS
CONTENTS:
LETTER OF AUTHORIZATION............................................................... 2
LETTER OF TRANSMITTAL.................................................................. 3
LETTER OF ACKNOWLEDGEMENT....................................................... 4
ABSTRACT........................................................................................... 6
INTRODUCTION................................................................................... 7
VISION AND MISSION........................................................................... 8
PRODUCTS AND SERVICES OFFERED.................................................. 9
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TASKS/RESPONSIBILITIES ACCOMPLISHED DURING INTERNSHIP....10


INTERNSHIP EXPERIENCE................................................................. 12
CONCLUSION & RECOMMENDATIONS................................................ 13
BIBLIOGRAPHY.................................................................................. 14

ABSTRACT

Investment banks are the major contributors in economic development of a


country. They have wide impact on capital and credit markets of a country.
This study presents comparison of financial performance for the period
20062009 by using financial ratios and measures of investment banks
working in Pakistan. Financial ratios are divided into three main categories
and measures including two indicators. Seven investment banks out of nine
are selected for analysis for comparison purpose. This work concludes that
the performance of investment banks on the basis of efficiency ratio is
different than on the basis of liquidity ratio, capital or leverage ratio and
financial measures. Due to the unavailability of data of other two banks, the
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results are compiled from the data of seven banks. The findings are
consistent with the analysis reported by the central bank of Pakistan (State
Bank of Pakistan, SBP) in its report for financial sector analysis 2006-09.
This study also equips the managers with important information about
different activities of banks which have a high impact on the financial
performance of investment banks.

INTRODUCTION
InvestCap is a leading Pakistani financial management company with
branches in the three major cities of the country.InvestCap is the brokerage
division of Invest Capital Investment Bank (InvestBank); it is member of the
Karachi Stock Exchange (Guarantee) Limited and Pakistan Mercantile
Exchange Limited InvestCap serves a diverse client base, which includes
financial institutions, public and private sector corporations and high net
worth individuals. We provide a complete and comprehensive range of
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financial services which includes Equity & Debt Broking, FX Trading, and
Portfolio Management.Invest Capital Markets Limited (InvestCap) is a
leading Pakistani financial management and advisory company with
branches in the four major cities of the country.InvestCap is a Corporate
Member of the Karachi Stock Exchange (Guarantee) Limited and Pakistan
Mercantile Exchange Limited InvestCap serves a diverse client base, which
includes financial institutions, public and private sector corporations and
high net worth individuals. We provide a complete and comprehensive range
of financial services which includes Equity & Debt Broking, FX Trading,
Corporate Advisory, and Portfolio Management. The sponsors / shareholders
of InvestCap are a multinational group of investors. These investors include
renowned business groups of Saudi Arabia & UAE, with significant regional
interests in the financial sector.

VISION AND MISSION

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VISION
To be the preferred provider of financial products & services to the
markets.

MISSION
To be a financial institution based on Trust, Integrity, and Good
Governance.
To deliver financial solutions to our customers.
To provide equal opportunities & professional working environment to
our employees.
To provide fair return to our shareholders on their investment.
To serve the community at large.
To discharge corporate social responsibility.

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PRODUCTS AND SERVICES OFFERED

EQUITY:
SINCE ITS INCEPTION IN DECEMBER 1997, THE EQUITY BROKERAGE
OPERATION HAS ENJOYED UNPRECEDENTED GROWTH. A STRONG PRESENCE
IN THE ISLAMABAD, LAHORE AND PESHAWAR MARKETS HAS PROVIDED GREAT
STRENGTH AND SUPPORT TO THIS AREA OF THE COMPANYS OPERATIONS.
INVESTCAP IS TODAY ON THE EQUITY TRADE BROKERS PANEL OF ALL THE
LEADING LOCAL INSTITUTIONAL INVESTORS IN THE COUNTRY. INVESTCAP
ALSO CATERS TO FOREIGN INSTITUTIONAL INVESTORS AND HAS A GROWING
NUMBER OF INDIVIDUAL CLIENTS.

FOREX:
BY COMBINING ESSENTIAL ECONOMIC ANALYSIS WITH UP-TO-THE-MINUTE
MARKET INFORMATION, THE INVESTCAP TEAM HAS SUCCESSFULLY MANAGED
TO OUTPERFORM THE OTHER PLAYERS IN THIS FIELD. PRESENTLY,
INVESTCAP PROVIDES THIS SERVICE TO A DIVERSE CUSTOMER BASE
CONSISTING OF LEADING LOCAL AND MULTINATIONAL BANKS AS WELL AS
MAJOR NON-BANKING FINANCIAL INSTITUTIONS. INVESTCAP TAKES SPECIAL
PRIDE IN THEIR ABILITY TO OFFER CLIENTS WITH UNIQUE FINANCIAL OR
INVESTMENT REQUIREMENTS AN OPPORTUNITY TO BENEFIT FROM EQUALLY
UNIQUE, CUSTOMIZED SOLUTIONS.

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RESEARCH:
INCREASED ECONOMIC UNCERTAINTY HAS MADE REASONABLY ACCURATE
ECONOMIC FORECASTING VITAL AND INVESTCAP PRIDES ITSELF FOR
PROVIDING A CLEAR AND CONSTANTLY UPDATED MARKET PICTURE TO ITS
CLIENTS, THUS HELPING THEM IN MAKING TIMELY AND BENEFICIAL
INVESTMENT DECISIONS.
INVESTCAP RESEARCH TEAM ASSISTS THE TREASURY AND EQUITY SUPPORT
GROUP BY CARRYING OUT A REGULAR, THOROUGH AND ORIGINAL ANALYSIS
OF THE PREVALENT ECONOMIC AND CORPORATE ENVIRONMENT. THIS IS
DONE TO KEEP TRACK OF THE CONSTANTLY CHANGING MARKET CONDITIONS,
IDENTIFY THE MARKET TRENDS AND THEIR EVENTUAL IMPACT ON INTEREST
RATES AND EQUITY PRICES.
BASED ON THIS RESEARCH, STRATEGIES ARE DEVISED FOR FIXED INCOME
AND EQUITY INVESTORS SO AS TO ENABLE THEM TO BENEFIT FROM THESE
CHANGES. INVESTCAP'S TOP-NOTCH RESEARCH HAS PLAYED A MAJOR ROLE
IN KEEPING THE COMPANY AMONGST THE TOP BROKERAGE HOUSES, AS PER
THE RANKINGS BY CFA ASSOCIATION OF PAKISTAN. THE INVESTCAP WEB SITE
ALSO PROVIDES A DAILY MARKET UPDATE TO FACILITATE THE INVESTOR.

MONEY MARKET
WITHIN A SHORT TIME, INVESTCAP HAS ESTABLISHED ITSELF AS A LEADING
MONEY MARKET AND FOREIGN EXCHANGE BROKERAGE HOUSE. A PIONEER IN
THE AREA OF MANAGING MONEY MARKET FUNDS ON BEHALF OF SOME OF
THE LEADING FINANCIAL INSTITUTIONS,

INVESTCAP IS ALSO ONE OF THE FIRST COMPANIES IN PAKISTAN TO SERVE AS


A MARKET MAKER FOR CORPORATE DEBT (TFCS). INVESTCAPS AREA OF
EXPERTISE IS IN THE TRADING OF GOP SECURITIES.

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TASKS/RESPONSIBILITIES ACCOMPLISHED DURING


INTERNSHIP

Various tasks and responsibilities were assigned to me from the very first
day. Initially, I was over viewing the operations of my department. Later on I
was responsible for write up , presentations and financial modeling.
A investment bank (or business bank) is a type of financial institution and
intermediary. It is a bank that provides services such as research, money
market transactions and forex investments.
During my stay at INVEST Cap these following were major task I performed.
Here I would like to explain them in a bit detail.
Equity research
The research division reviews companies and writes reports about their
prospects, often with "buy" or "sell" ratings. While the research division may
or may not generate revenue (based on policies at different banks), its
resources are used to assist traders in trading, the sales force in suggesting
ideas to customers, and investment bankers by covering their clients.
Research also serves outside clients with investment advice (such as
institutional investors and high net worth individuals) in the hopes that
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these clients will execute suggested trade ideas through the sales and
trading division of the bank, and thereby generate revenue for the firm.
There is a potential conflict of interest between the investment bank and its
analysis, in that published analysis can affect the bank's profits. Hence in
recent years the relationship between investment banking and research has
become highly regulated, requiring a Chinese wall between public and
private functions.
Then after over the research reports and write up on various topics which
were given to me then in performed business valuation and financial
modeling task with the help of my supervisor.

Financial Modeling
Financial modeling is the task of building an abstract representation (a
model) of a financial decision making situation.[1] This is a mathematical
model designed to represent (a simplified version of) the performance of a
financial asset or portfolio of a business, project, or any other investment.
Financial modeling is a general term that means different things to different
users; the reference usually relates either to accounting and corporate
finance applications, or to quantitative finance applications. While there has
been some debate in the industry as to the nature of financial modeling whether it is a tradecraft, such as welding, or a science - the task of
financial modeling has been gaining acceptance and rigor over the years

Later I was placed at head office in SME department. There I stayed a bit,
but learned and worked a lot. From the making of SCM to the nitty gritties
of CRR (Credit Risk Rating) was very interesting and fascinating. CRR
includes analyzing the financial statements of the client and the applying
certain financial ratios to come up with a derived rating. My responsibilities
included support in preparation of credit proposals with in depth analysis of
the customers business environment, financial environment and Credit
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worthiness etc. Monitoring and controlling of SME and Commercial clients.


Preparation of Credit Reviews, preparation of renewals of credit facilities of
customers and liaison with CAD for perfection of securities. All the
aforementioned responsibilities were performed under the umbrella of my
superviser.
Moreover, concepts such as Letter of Credit, Guarantee, FIM etc were also
crystal

cleared

when

gained

the

actual

working

pertinent

to

aforementioned concepts. Sending request for CIB report to CADS was also a
new experience. Analyzing SCM (Standard Credit Memorandum) to get the
financial picture of the client really added to my learning base.
In a nut shell, it was a great erudition and I tried my best in accomplishing
the assigned tasks and responsibilities.

INTERNSHIP EXPERIENCE

My expedition of knowledge started with the patience class. Sitting in


the conference hall and nothing to do except, waiting for 90 long minutes
was a great start, no doubt. My bond of punctuality was tested in to.
However, the initial day started with the brief orientation session by the
concerned authority. Placement to branches was done the same day which
was not favorable at all. I firmly believe in rotation but rotation has certain
prerequisites. Prior formal training program regarding the scope of work
should have been there which unfortunately was absent. Prior training
program would have helped us more in gaining the insights of branch
banking.
One month at branch passed within the short span of time. Staff at my
branch was very cooperative and friendly in nature. They all welcomed me
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whole heartedly and were willing to extend any sort of assistance at times of
despair. I would like to appreciate my branch manager, Mr. Ahmed Ali Naqvi
whose relentless support and phenomenal way of sharing knowledge was no
doubt highly admired. Within a short span of time, I was trained to handle
inward, outward and deposit clearing. Moreover, handling fresh accounts
and dealing with zakat declaration was also magnificent.
It has been a great learning voyage for me since the day one. I was assigned
various tasks and responsibilities which by the grace of Almighty Allah, I
completed all the tasks and responsibilities successfully. In short, it was a
prodigious experience working at Summit Bank. It would be an immense
pleasure and bliss for me to work for this organization as an employee in
future.

CONCLUSION & RECOMMENDATIONS

This report analyzes the aspect of Investment banking in a


comprehensive way. It is imperative to comprehend the core operations and
functions of investment banking as it has a significant impact on our day to
day lives. Throughout this research report, I have endeavored to portray a
true picture of Investment banking at Invest Cap and to add flavor, I have
also enlightened the role of Corporate invest at Invest cap.
Some recommendations that I would like to inculcate are that there should
be a prior training program before placing the internees to the branches.
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Assuming internees have the knowledge of branch banking is gravely


mistaken and should be avoided, pronto.
In a nut shell, it was a great learning voyage and this report depicts my
prodigious experience of six weeks at Summit Bank.

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BIBLIOGRAPHY

MR.ASHAR SAYEED HEAD OF CORPORATE INVESTMENTS


MR. SALMAN SHAHAB ASSISTANT HEAD
MR. KIRAN JAWED COPORATE INVESTMENTS RESEARCH
MR. MUNIBA SAYEED RESEARCH ANALYST
MR. SHARUKH KHAN
MR. HAMMAD FEROZE

WWW.INVESTCAPITAL.COM

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