The leading global provider of financial solutions, Deutsche Bank has become the top investment bank in India. The bank has left behind the big building blocks such as Merrill Lynch, Lehman Brothers and Goldman Sachs.
Deutsche has acquired first position in country's investment banking with a market share of 16.6% in mergers and acquisitions while 14.2% funds raised through the equity corner.
Fall of the three biggies- Bear Sterns, Leman and Merrill Lynch- was tragic in the investment banking world. The investment banks raised its arms in the area of mergers and acquisitions by providing advice on the issue as consultants. Here the major players like Merrill Lynch, Goldman Sachs and others have been replaced by conventional banks such as Deutsche Bank, Royal Bank of Scotland (RBS) that acquired ABN Amro, and Standard Chartered Bank.
Even in the equity space Deutsche Bank has taken a lead followed by Kotak Mahindra Bank and SBI Capital Market. These companies have left behind Citibank and Merrill Lynch in acquiring their positions.
The number of deals has also come down due to the unstable market conditions. So far this year, Indian companies have concluded 170 deals worth around USD 23 billion as compared to USD 54 billion last year.
It seems that the investment banking era has come to an end because the five independent banks that existed at the start of this year, only two have remained. The last two big I-Banks - Goldman and Morgan Stanley have decided to close shop and become commercial deposit accepting banks.
Investment banks were originally meant to help companies and government to raise money by issuing and selling securities in the capital markets. Slowly the investment banking reached mergers and acquisitions space as consultants and extended guidance on the matter. The business of investment banking, which was originally developed, on the softer business slowly turned out to be more aggressive after the development of very complex derivatives which they started selling and buying aggressively.
Deutsche Bank started its operations in India by opening a branch in Mumbai in 1980. The bank has recently created electronic trading role in Asia and named Zach Tuckwell as the head of programme trading, direct market access (DMA) and algorithmic trading sales in Asia ex-Japan.