b so assignment

7/27/2019 b So Assignment

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To Visit Websites of Select Banks tostudy and understand various

Deposit and prepare a report fortwo Deposit Products and two loanproducts

SUBMITTED TO: Subbakrishna K R

JULY 16, 2013

ANIRBAN MUKHERJEE

12 BSP 1807


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July 16, 2013To Visit Websites of Select Banks to study and understand various Deposit

and prepare a report for two Deposit Products and two loan products.

ANIRBAN MUKHERJEE 1

Before discussing the products of two banks we can take a look of wide range of products and

customer segments of the banks:-

In case of Retail Banking we can classify products as Deposit Products, Loan Products, and

other products and services:

In case of Treasury Banking we can classify products in two types:

LOAN PRODUCTS:

AUTO LOANS.

PERSONAL LOANS.

HOME LOANS.

COMMERCIAL VEHICLE FINANCE.

RETAIL BUSINESS BANKING CREDITCARDS.

LOANS AGAINST GOLD.

TWO WHEELER LOAN.

CONSTRUCTION EQUIPMENT

FINANCE.

LOANS AGAINST SECURITIES.

AGRI AND TRACTOR LOAN.

EDUCATIONAL LOAN.

SELF HELP GROUP LOAN.

JOINT LIABILITY GROUP LOAN.

KISAN GOLD CARD.

DEPOSIT PRODUCT:

SAVINGS ACCOUNT.

CURRENT ACCOUNT.

FIXED DEPOSIT.

RECURRING DEPOSIT.

CORPORATE SALARY ACCOUNT.

OTHER PRODUCTS

AND SERVICES:

DEPOSITORY ACCOUNT.

MUTUAL FUND SALES.

PRIVATE BANKING.

INSURANCE SALES.

NRI SERVICES.

BILL PAYMENT SERVICES.

POS TERMINALS.

DEBIT CARDS.

GOLD SALES.

FOREIGN EXCHANGE SERVICES.

PRODUCTS/SEGMENTS:

FOREIGN EXCHANGE.

DEBT SECURITIES.

DERIVATIVES.

EQUITIES.

OTHER FUNCTIONS:

ASSET LIABILITY MANAGEMENT.

STATUTORY RESERVE

MANAGEMENT.


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ANIRBAN MUKHERJEE 2

In case of Wholesale Banking we can classify product as Commercial Banking,

Transactional Banking, Investment Banking and Key Segments:

First we will take the products of H.D.F.C Bank Limited:

CASA or current and savings accounts forms a part of the Demand deposit product of the bank.

The savings account are opened to encourage the people to save money and collect their savings.

It also helps the employees of the organization to get their salary credited monthly without the

headache of taking cash and cheque.

The savings account of HDFC bank can be classified broadly into two types:

Regular Savings Account.

Corporate Salary Savings Account.

The Regular Savings Account can be broadly be divided into ten types.

a) Regular Savings Account.b) Savings Max Account.c) Senior Citizen Account.d) Basic savings bank account.e) Institutional savings account.f) Kids Advantage Account.

COMMERCIAL BANKING:

WORKING CAPITAL.

TERM LOANS.

BILL COLLECTION.

FOREX AND DERIVATIVES.

WHOLESALE DEPOSIT.

LETTER OF CREDIT.

GUARANTEES.

TRANSACTIONAL

BANKING:

CASH MANAGEMENT.

CUSTODIAL SERVICES.

CLEARING BANK SERVICES.

CORRESPONDENT BANKING.

TAX COLLECTIONS.

BANKER TO PUBLIC ISSUES.

INVESTMENT BANKING:

DEBT CAPITAL MARKETS.

EQUITY CAPITAL MARKETS.

PROJECT FINANCE.

MERGERS AND ACQUISITIONS AND

ADVISORY.

KEY SEGMENTS:

LARGE CORPORATE.

EMERGING CORPORATE.

FINANCIAL INSTITUTIONS.

GOVERNMENT/PSU.

SUPPLY CHAIN.

AGRICULTURE.

COMMODITIES.


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ANIRBAN MUKHERJEE 3

g) Pension Savings Account.h) Family Savings Group Account.i) Savings plus Account.j) Women Savings Account.

The Corporate Salary Savings Account can be broadly classified into six types:

a) Premium Salary Account.b) Regular Salary Account.c) Defence Salary Account.d) Classic Salary Account.e) Payroll Account.f) Basic Savings Bank Deposit account.

FEATURES OF REGULAR SAVINGS ACCOUNT:

Wide network of branches and over 7300 ATMs to meet all your banking needs, no matterwhere you are located.

Bank conveniently with facilities like Net Banking, Phone banking and Mobile Bankingcheckyour account balance, pay utility bills or stop cheque payments all via SMS.

Never overspendshop using your International Debit Card that reflects the actual balance inyour savings account.

Personalized cheques with your name printed on each cheque leaf for enhanced security. Take advantage of Bill Payan instant solution so you can pay all your frequent utility bill

payments. Instruct for payments over the phone or through the Internet.

Avail of facilities like Safe Deposit Lockers, Sweep-In and Super Saver facilities on your account. Free cash withdrawals at any other Bank's ATMs* Free Payable-at-Par chequebook, without any usage charges. Free passbook facility available at home branch for account holders (individuals). Free Email Statement facility.

ELIGIBILITY: A resident individual (sole or joint account) A Hindu undivided family A foreign national If you are a foreign national, you have to be residing in India for a period greater than

180 days and you have to provide us with: A valid passport A valid Visa FRRO (Foreign Regional Registration Office) Certificate Residential permit A minimum deposit of Rs. 10,000 (metro/urban branches), Rs. 5000 (semi-urban/rural

branches) is required to open an account and thereafter an average monthly balance of the

same amount has to be maintained.


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ANIRBAN MUKHERJEE 4

It is mandatory to maintain a minimum average monthly balance (AMB) of Rs. 10,000(metro/urban branches), Rs. 5000 (semi-urban/rural branches). If the balance is notmaintained, the following service charges will be levied:

For urban/metro branches:If AMB in the account is between Rs 5,000 to Rs 10,000, acharge of Rs 250/- per month would be levied. If AMB is less than Rs 5,000, a charge of

Rs 350/- per month would be levied.

Semi urban/rural:If AMB in the account is between Rs 2,500 to Rs 5,000, a charge ofRs 250/- per month would be levied. If AMB is less than Rs 2,500, a charge of Rs 350/-

per month would be levied.

The rate of interest is 4% per annum payable at end of March and September. The mode of operation is either or survivor, former or survivor, anyone or survivor,

single, jointly.

DOCUMENTS REQUIRED:

One document each from the following two categories:

Proof of individual's identity

Passport* Voter's ID Driving license Government ID card Defense ID card Photo ration card Photo PAN card Adhar Card NREGA Job Card

Proof of residence

Passport* Election/voters ID Ration card** Society outgoing bill (only from registered societies) Electricity/water/telephone bill Property tax bill Gas bill (pipeline connection only) Domicile certificate with address issued by the Municipal Corporation Registered rent/lease agreement (registered with State Government or similar registration

authority)


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ANIRBAN MUKHERJEE 5

The Term Deposit Account can be broadly be divided into two types:

a) Regular Fixed Deposit.b) 5 years Tax Savings Fixed Deposit.

FEATURES OF REGULAR FIXED DEPOSIT ACCOUNT:

Nomination facility now available while booking Fixed Deposit through NetBanking Easy investments with high returns Flexibility and security in one offeringHigher rate of interest on Fixed Deposits for Senior Citizens.

ELIGIBILITY: Residents Hindu undivided families

Sole proprietorship firms Partnership firms Limited companies Trust accounts An initial deposit of Rs. 5,000/- is required to open a Fixed Deposit. Effective 01st April

2010, PAN is mandatory to book Fixed Deposits if the total Fixed Deposit holding percustomer id per branch exceeds 50,000/-

The mode of operation is either or survivor, single, jointly.DOCUMENTS REQUIRED:

Same as savings bank account.

TAX DEDUCTIONS FOR FIXED DEPOSIT:

The following will be applicable for a Regular Fixed Deposit TDS will be deducted when interest payable or reinvested per customer, per branch,

exceeds Rs 10,000 in a financial year.

ATDS Certificate will be mailed to you after end of every quarter during the financialYear providing the details ofTDS deducted during the quarter.

W.e.f Aug 09, applicableTDSrates are:

TaxRate Surcharge

EducationCess TOTAL

Resident Individuals &

HUF

10% ---- ---- 10%
http://www.hdfcbank.com/personal/products/accounts-and-deposits/deposits/regular-fixed-deposithttp://www.hdfcbank.com/personal/products/accounts-and-deposits/deposits/regular-fixed-deposithttp://www.hdfcbank.com/personal/products/accounts-and-deposits/deposits/regular-fixed-deposithttp://www.hdfcbank.com/personal/products/accounts-and-deposits/deposits/regular-fixed-deposithttp://www.hdfcbank.com/personal/products/accounts-and-deposits/deposits/regular-fixed-deposithttp://www.hdfcbank.com/personal/products/accounts-and-deposits/deposits/regular-fixed-deposithttp://www.hdfcbank.com/personal/products/accounts-and-deposits/deposits/regular-fixed-deposithttp://www.hdfcbank.com/personal/products/accounts-and-deposits/deposits/regular-fixed-deposit


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ANIRBAN MUKHERJEE 6

Corporate Entity 10% ---- ---- 10%

NRO 30% ---- 3% 30.90%

Firms 10% ---- ---- 10%

Co-operative Societies

& Local Authority

10% ---- ---- 10%

INTEREST RATES:

TENUREINTERESTRATE PER

ANNUM

**Senior

CitizenRates (per

annum)

EffectiveFrom

7 - 14 days 3.50% 4.00% 12-May-11

15 - 29 days 4.00% 4.50% 12-May-11

30 - 45 days 5.00% 5.50% 12-May-11

46 - 60 days 7.50% 8.00% 15-Dec-12

61 - 90 days 7.50% 8.00% 15-Dec-12

91 Days to less than 6 months 1 day 7.50% 8.00% 15-Dec-12

6 months 1 day - 6 months 15 days 8.00% 8.50% 15-Dec-12

6 months 16 days 8.00% 8.50% 15-Dec-12

6 months 17 days - 9 months 15 days 8.00% 8.50% 15-Dec-12

9 months 16 days 8.00% 8.50% 15-Dec-12

9 months 17 days - 1 year 8.00% 8.50% 15-Dec-12

1 year 1 day - 1 year 15 days 8.75% 9.25% 12-Sep-12

1 year 16 days 8.75% 9.25% 12-Sep-12

1 year 17 days - 2 years 8.75% 9.25% 12-Sep-12

2 years 1 day - 2 years 15 days 8.75% 9.25% 12-Sep-12

2 years 16 days 8.75% 9.25% 12-Sep-12

2 years 17 days - 3 years 8.75% 9.25% 12-Sep-12

3 years 1 day - 5 years 8.75% 9.25% 12-Sep-12

5 years 1 day - 8 years 8.25% 8.75% 10-Dec-10

8 Year 1 Day - 10 Years 8.25% 8.75% 10-Dec-10

So basically we will take two types of loan which are discussed below:


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ANIRBAN MUKHERJEE 7

Home Loan Car loan

The Home Loan are of three types:

a) Home Loan.b) Home Improvement Loan.c) Home Extension Loan.

FEATURES OF HOME LOANS:

Home Loan:Home loans for individuals to purchase (fresh / resale) or construct houses. Application

can be made individually or jointly.

Home Improvement Loan:The interiors of any home reflect the personal preferences and tastes of its owners makingit imperative to constantly upgrade to keep up with changing times. HIL facilitates

internal and external repairs and other structural improvements like Painting,Waterproofing and Roofing, Plumbing and Electrical Works, Tiling and Flooring, Grills,Aluminum Windows compound walls and much more.

Home Extension Loan:HEL for adding more space to your existing home for meeting the requirements of yourgrowing family be it an extra bedroom for your children, a reading room for yourself or a

cozy coffee corner. It is easy to extend your home anyway you like.

HDFC offers home loans in rural areas for:

- Agriculturists

- Dairy Farmers

- Planters

- Horticulturists Construction of houses on plot owned by you Addition of more rooms or floors to your existing house Renovation & improvement of your house Purchase of a new house

Rural Housing Finance Features:For Agriculturists:

If you are a farmer/planter/horticulturist/dairy farmer etc. having your own landand looking to build your own home, get in touch with us.

Specially Designed Housing Loans for Agriculturists. Loan eligibility on the basis of land owned by you and the crops being cultivated. Housing Loan in residential area of your own village Loans for buying house or flat in city of your choice


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ANIRBAN MUKHERJEE 8

DOCUMENTS REQUIRED:

AgriculturistsSalaried

Customers

Self Employed

Professionals

Self Employed

Businessmen

Applicationform with

photograph


photograph


photograph


photograph

Identity and

Residence Proof

Identity and

Residence Proof

Identity and

Residence Proof

Identity and

Residence Proof

Last 6 months

bank statements

Last 6 months

bank statements

Last 6 months

bank statements

Last 6 months

bank statements

(self & business)

Processing fee

cheque

Processing fee

cheque

Processing fee

cheque

Processing fee

cheque

Income Documents

Copies of Title

Documents of

Agricultural Landdepicting Land

holding

Latest Salary

Slip

Education

Qualifications

Certificate andProof of business

Education

Qualifications

Certificate andProof of business

Copies of Title

Documents ofAgricultural Land

depicting cropsbeing cultivated

Form 16 Last 3 years

Income Taxreturns (self and

business

Business profile

& Last 3 yearsIncome Tax

returns

Statement of

last 2 years of

loans availed

Last 3 years

Profit /Loss and

Balance Sheet

Last 3 years

Profit /Loss and

Balance Sheet

INTEREST RATES:

BPLR- 9.6%

LOAN

AMOUNT

INTEREST

RATE

UPTO 30 LACS 10.15

BPLR+

.55

ABOVE 30

LACS 10.4

BPLR+

.8


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ANIRBAN MUKHERJEE 9

There are two types of car loans:

a) New Car Loans.b) Used Car Loans.

Here we will talk about new car loans.

FEATURES OF NEW CAR LOANS:

Our loans cover the widest range of cars and multi-utility vehicles in India. You can avail up to 100% finance on your favorite car** We offer a flexible loan repayment tenure ranging from 12 to 84 months. You can borrow up to 3 - 6 times your annual income We provide speedy processing - within 48 hours of documentation You can repay with easy EMIs You can fastrack your loan by simply choosing the plan that is right for you. We offer attractive interest rates Our documentation is hassle-free We offer special privileges for HDFC Bank customers Max Loan limit Rs. 1.5 Crs

ELIGIBILITY AND DOCUMENTATION:

Are you a salaried employee?

This category includes salaried doctors, CAs, employees of select public and private limited

companies, government sector employees such as public sector undertakings and central, state

and local bodies. Minimum age for Salaried is 21 years (at time of loan application) and


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ANIRBAN MUKHERJEE 10

Are you a self-employed individual?

This category includes self-employed sole proprietors in the business of manufacturing, trading

or services.

Minimum age for Self Employed is 25 years (at the time of loan application) and


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ELIGIBILITY: A resident individual (sole or joint account) A Hindu undivided family A foreign national

The rate of interest is 4% per annum payable at end of March and September. The mode of operation is either or survivor, former or survivor, anyone or survivor,single, jointly.

DOCUMENTS REQUIRED:

One document each from the following two categories:

Proof of individual's identity

Passport* Voter's ID Driving license Government ID card Defense ID card Photo ration card Photo PAN card Adhar Card

Proof of residence

Passport* Election/voters ID Ration card** Society outgoing bill (only from registered societies) Electricity/water/telephone bill Property tax bill Gas bill (pipeline connection only) Domicile certificate with address issued by the Municipal Corporation Registered rent/lease agreement (registered with State Government or similar registration

authority)

The Term Deposit Account can be broadly be divided into two types:

a) Regular Fixed Deposit.b) 5 years Tax Savings Fixed Deposit.


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FEATURES OF REGULAR FIXED DEPOSIT ACCOUNT:

1. Interest will be paid at the contracted rate irrespective of change in the rate thereafter.

2. Period of deposit 07 days to 10 years.

3. Loan / overdraft up to 90% of the deposit amount at 0.50% above the TDR rate.

4. Premature withdrawal facility available at 0.50% below the interest rate applicable for theperiod the deposit had remained with the Bank or 0.50% below the contracted rate,

whichever is lower. No penalty for a single deposit of Rs. 15 lacs and above but below Rs. 1Crore and having tenure below 1 year. However no interest will be paid if the deposit had

remained for less than 7 days.

5. Quarterly compounded Interest.6. Interest can be paid on monthly intervals on discounted rate.

7. Interest can also be paid at Calendar quarter basis.

8. TDS at prevalent Income tax rate is deducted if Form 15G/15H not submitted.

9. Auto renewal is exercised if maturity instructions are not given.10. Permission to convert TDR to STDR and vice versa required.

11. Nomination facility available.

ELIGIBILITY: Residents Hindu undivided families Sole proprietorship firms Partnership firms Limited companies Trust accounts

DOCUMENTS REQUIRED:

Same as savings bank account.

TAX DEDUCTIONS FOR FIXED DEPOSIT:

TDS remains same across banks as it is mandated by government of India.

INTEREST RATES:

TENURE

INTEREST RATE

PER ANNUM

**Senior Citizen

Rates (perannum)

7 days to 90 days 6.5 6.5

91 days to 179 days 6.5 6.5

180 days 6.5 6.5

181 days to 240 days 6.5 6.5

241 days to less than 1 year 6.5 6.5


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1 year to less than 2 years 8.75 9

2 years to less than 3 years 8.75 9

3 years to less than 5 years 8.75 9

5 years and up to 10 years 8.75 9

We will now take a view of SBI car loan and its features:

FEATURES OF NEW CAR LOAN:

No Advance EMI; longest repayment tenure (7 years); lowest interest rates; Lowest EMI; LTV 85% of 'On Road Price' of car (includes registration, insurance and cost of

accessories worth Rs 25000), 90% in case of Corporate Salary Package accounts;

Interest Calculated on Daily Reducing Balance; Flexibility of payment of EMI anytime during the month; No pre-payment penalty; Optional SBI Life cover; Overdraft facility available. You can enjoy the longest repayment period in the industry with us as long as 84

months.

ELIGIBILITY:

Individual between the ages of 21-65 years of age. Regular employee of State / Central Government, Public Sector Undertaking, PrivateCompany or a reputed establishment. Professionals, self-employed, businessmen, proprietary/partnership firms who is an

income tax assesse. Person engaged in Agricultural and allied activities. Net Annual Income Rs. 2, 50,000/- and above. There is no upper limit for the amount of a car loan. A maximum loan amount of 48

times of Net Monthly Income or 4 times of Net Annual Income can be sanctioned.

DOCUMENTATION:

o Statement of Bank account of the borrower for last 6 months.o 2 passport size photographs of borrower(s).o A copy of passport /voters ID card/PAN card.o Proof of residence.o Latest salary-slip showing all deductionso I.T. Returns/Form 16: 2 years for salaried employees and 2 years for professional/self-

employed/businessmen duly accepted by the ITO wherever applicable

o Proof of official address for non-salaried individuals.


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INTEREST RATES:

Interest Rates w.e.f.

04.02.2013 (Base Rate 9.70% p.a.)

Tenure Rate of Interest

For all tenures

For Term Loan

and Overdraft:

0.75% above

Base Rate, i.e.

10.45% p.a.

Now we will talk about SBI Home Loans:

FEATURES OF SBI HOME LOAN:

Package of exclusive benefits. Low interest rates. Further, we charge interest on a daily reducing

balance!!

Low processing charges. No hidden costs or administrative charges. No prepayment penalties. Reduce your interest burden and optimally

utilize your surplus funds by prepaying the loan.

Over 13,700 branches nationwide, you can get your Home Loanaccount parked at a branch nearest to your present or proposedresidence

Apart from that 1% interest subvention facility is available for loans less than 10 lacs provided

that the cost of the housing doesnt exceed 20 lacs.

DOCUMENTS REQUIRED:

Completed loan application

3 Passport size photographs

Proof of identify (photo copies of Voters ID card/ Passport/ Driving

licence/ IT PAN card)Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/

Property tax receipt/ Passport/ Voters ID card)

Proof of business address for non-salaried individuals

Statement of Bank Account/ Pass Book for last six months

Signature identification from present bankers

Personal Assets and Liabilities statement


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If guarantee is required then he/she has to furnish:

Personal Assets and Liabilities Statement

2 passport size photographs

Proof of identification as above

Proof of residence as above

Proof of business address as above

Signature identification from his/her present bankers

If salaries he/she has has to produce:

Original Salary Certificate from employer

TDS certificate on Form 16 or copy of IT

Returns for last two financial years, dulyacknowledged by IT Deptt.

If self-employed he/she has to produce:

Acknowledged copies of three years I.T.

returns/ Assessment Orders.

Photocopies of challans evidencing paymentof Advance Income Tax.

MARGIN AMOUNT ON TOTAL LOAN:

Individual Home Loan AmountMargin

(Min.)(%)LTV Ratio (%)

Upto Rs. 20 Lacs 10 90

Above Rs. 20 Lacs. and upto Rs. 75

lacs20 80

Above Rs. 75 lacs 25 75

* maximum repayment term 30years or 70 years of age which

ever is earlier


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INTEREST RATE:

Loan Amount

Linkage with Base Rate

over the tenor of theloan

Effective

Rate

Upto Rs. 30.00 lacs 0.25% above Base Rate 9.95% p.a.

Above Rs. 30.00lacs

0.40% above Base Rate 10.10% p.a.

RECOMMENDATION:

If we look at both the Regular savings account of both the bank then we can find thatSBI is offering almost same facilities as HDFC bank that too at zero minimum

balance, so HDFC has to think something new to ensure that their regular savingsaccount product sells in the market.

If we observe carefully the Term Deposit rates HDFC is giving .25 % more to seniorcitizens than SBI which makes their product quite attractive.

If HDFC bring a zero balance savings account on the condition that the personholding a zero balance savings account has to maintain a term deposit of Rs. 1 lakh

then their product can become more attractive.

The car loan segment of both the bank is almost same. The home loan segment is dominated by SBI due to lower interest rates i.e. .30% less

than HDFC followed by a low processing fee. More over SBI has a goodwill which

most of the bank in Home Loan Sector doesnt have. So HDFC should try to lower

their interest rates to make their product more attractive.