What Is A Purpose Of An Investment Bank?

164 Views Updated: 27 Aug 2018
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What Is A Purpose Of An Investment Bank?

An investment bank serves as a perfect bridge between the users and the capital providers. Investment banking companies are facilitators that ensure that the fund flows through a right channel and proper allocations of capital are met to entities who need it.


Investment banking services being much more of a dynamic industry is characterized as being a complex web of financial intermediary that has grown to be more competitive than ever. A plethora of financial instruments have entered the market. This has resulted in the power game of struggle with change. Non-Banking Financial Centres or NBFC in India as a long synonymous with the underwriting and market making of corporate equity and debt securities. This has expanded dramatically in past decades.


So, what do investment banking services provide? And how can it prove beneficial to the corporates? Let us delve in brief about the services offered

  • Data Management

Investment bankers are always jostling with large data points. This involves being precise in number crunching. This data can be collated through annual reports, analyst reports and book records.

  • Financial Analysis

One of the essential jobs of investment banking service is to make numbers talk. Financial analysis is the way which will give us valuable insights into the various finances that are being operated.

  • Liaisoning

NBFC in India handle such a profile usually in mergers & acquisitions and raising funds for the clients. The investment bank needs to have strong networking skill and great hold on the power of communication.

  • Client Management

If there are no clients, there is no business. It's that simple. Handling client is the most sensitive form of service that an investment banking service can offer. The services include creating reports, presentations and client interface.
Investment banking companies make their money by charging a consultation fee. A pre-decided fix amount is charged from a client for the services that they offer. The alternative method that an NBFC makes money is through raising funds and keeping a fixed percentage of fees on that principal amount. This amount can be recurring or can be bulk. It is totally subjective and depends on the various banks.

These are some of the ways how investment banking companies provide services and make profits. If you do wish to get in touch with a good NBFC in India, look no further than JMFL. They have been in the financial business long enough to provide you with highly efficient services. Their resource and staff are top of line experts who provide one of a kind business solution for your organization. Do visit their website and see the various financial offerings they have in store for you.

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