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1. $$$ HOW DO BANK’S MAKE MONEY?

2. BANK’S INCOME PORTFOLIO • Also called Interest Income A Accepting Deposits and Lending Loans at Different Interest Rates B 1 Fund based Income Deposit Account Services ( Safekeeping, checking, etc) A Lending (Letters of Credit, Letters of Guarantees, etc) B 2 Fee Based Income Bank’s income portfolio Trust Accounts (Wealth Management) C

3. AN INSIGHT TO FEE BASED INCOME Deposit Account Services (on line bill pay, ATMS) 1 Fee Generating Income – new production methods • Lending (Securitization, Servicing) 2 • Cash Management 3 1 Fee Generating Activities –Non traditional Investment Banking 2 Securities Brokerage 3 Merchant Banking

4. Investment banking… emystifying D

5. INVESTMENT BANKING Front Office Middle Office 1 Investment Banking work is normally categorized into 3 segments 2 Back Office 3

6. FRONT OFFICE • Sales job is to call on institutional and HNI investors to suggest trading ideas and take orders • Sales desk then communicate clients’ orders to trading desks • They price and execute trades • They also facilitate structure new products that fit a specific need SALES • Most profitable area • Responsible for majority of revenue • In the process of market making, traders buy and sell financial products • Golden rule followed by a trader ‘Buy Low Sell High’ • The goal of a trader is to make an incremental amount of money on each trade! TRADING Front Office requires highest caliber employees in terms of intellectual capital and interpersonal skills. • Reviews companies and writes reports • Generates no revenues • But its resources are used to assist traders and • Sales force in suggesting ideas to customers • In recent years this relationship has become highly regulated RESEARCH • Relatively recent division • As derivatives have come into play, with highly technical and numerate employees working on creating complex structured products which typically offer much higher margins and returns than underlying cash securities STRUCTURING

7. MIDDLE OFFICE Risk Management Analyze the risk traders are taking on to the balance sheet in conducting their daily trades Setting limits on the amount of capital that they are able to trade in order to prevent bad trades having a detrimental effect to a desk overall

8. BACK OFFICE • Operations involve data checking trades that have been conducted • Ensuring that they are not erroneous • Transacting the required transfers • Provides great job security • Involve most monotonous work at relative low pay

9. How can we facilitate banks make more money…

10. MARKETING SKILL SPECIFIC CUSTOMER SPECIFIC PLANNING Research and development Technology Selection Competitive price Product breadth Risk Management Flexibility Quote speed Currency breadth Developing markets Any time / Any where facility Settlement Innovation 24x7 desks Relationship Liquidity management Service at ‘door’ steps Integration with other markets Strategy advice and guidance

11. Simple ‘Mantra’ Close the Gap with Other Global Markets A More End Points and Trading Venues B Facilitate Right Technology Decisions C

12. Simple ‘Mantra’ continues… Connectivity choices 1 Lower latency 2 Execution speed 3 High bandwidth capabilities 4 Flexibility 5 Easier ‘last mile’ access 6 Faster data feeds 7 Automated & Algorithmic trading 8 Higher messaging rates 9 Throughput optimization 10 Stable global infrastructure 11

13. Access to continuous stream of global market data 1 messaging 2 news 3 history 4 analysis 5 to ensure successful execution of trading strategies!

14. Present dilemma… Quick connect with clients, brokers 1 Receive orders over financial extranets 2 Instant post or match orders 3 Respond in milliseconds 4 Increasingly nanoseconds 5

15. In a nut shell, facilitate… Efficiency 1 Risk Reduction 2 Cost Reduction 3 Banks will make more money, for sure!

16. $$$ THANK YOU!!! For more information please contact Guru.Raghavan at +91 99664 62888 or guru.raghavan@yahoo.com