hdfc project report 1
TRANSCRIPT
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HDFC BANK LIMITED
SUBJECT
Comparison of services offered by private sector banks and public sector
banks AND Assessment of various investment alternative available in
the market and the investment pattern of the people of Lucknow.
Done by:- MOHD KHALID
DECLARATION
MyselfMOHD KHALID, student of Master of Management studies from
K.J Somaiya institute of management studies & Research, mumbai, hereby
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declare that all information, facts and figures in this report are my findings
and are original in nature, which are collected from various sources. The
same has never been submitted by the under signed either in part or in full to
any institution.
These information are true to the best of my knowledge.
MOHD KHALID,
S.I.M.S.R
MUMBAI.
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CONTENTS
1. PREFACE
2. ACKNOWLEDGEMENT
3. EXECUTIVE SUMMARY
4. OBJECTIVE
5. INTRODUCTION
6. HDFC BANKPROFILE
7. MEANING OF INVESTMENTS
8. INVESTMENT OPTIONS AVAILABLE IN THE MARKET
9. RESEARCH METHODOLOGY
10. DATA ANALYSIS AND INTERPRETATION
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11. FINDINGS
12. RECOMMENDATIONS
13. CONCLUSION
14. LIMITATIONS
15. BIBLIOGRAPHY
16. ANNEXURE
QUESTIONNAIRE
PREFACE
Training is an enduring process to enhance the existing skills of an
individual. To manage complexities of the organization in todays changing
competitive environment a manager is supposed to have deep and basic
knowledge of the latest management techniques. Therefore to cope up with
various problems in industry like production efficiency, wage confrontation,
sales out criteria of customers satisfaction even to cope up with new
innovations.
To bridge the gap between the theory and practical it is essential for students
to step out of the classroom and move around the corporate world.
Classroom theories can pass on knowledge but attitude and skills can be
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inherited from actual market exposure with that thought HDFC LIMITED
provided me the opportunity to experience the actual market condition.
It is correctly said that marketing is nearly a civilized form of war face
where most battles are won by civilized thinking and positive attitude.
This training had not only provided me the exposure but has also passed on
attitude and innovative skills to become a successful marketer. It also helped
me in developing more favorable attitude to the actual job requirement.
KNOWLEDGEMENT
First and for most, I wish to thank HDFC LIMITED Lucknow for giving
me this opportunity to study and present the report on Comparison of
services offered by private sector banks and public sector banks AND
Assessment of various investment alternative available in the market
and the investment pattern of the people of Lucknow. It has been my
first experience with work life and the experience with HDFC will indeed be
one of my most cherished ones.
The more we observed the more we learned. More we interacted with the
people the better were our understanding of corporate world. In few words
my special thanks to Mr. Ashish Kumar (Branch Manager, HDFC) and
Peeyush Nigam (Backup Branch Manager, HDFC) who guided me in
gathering for this project and without his continuous co-operation the project
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would not have seen the light of day. I would like to thank to all those who
directly or indirectly rendered their help in completing this project report.
I would like to present a deep bow of gratitude to Mr. Sageer Khan
(State Head TW LOANS, UP & Uttranchal), Suvarana Sharma
(Branch Manager, HDFC),Mr. Syyed Zaheer Abbas (Senior Sales
Manager) , Akhilesh Kumar Roy (Branch Manager, HDFC),Mrs. kriti
and Mr. Gaurab who gave this wonderful opportunity to undergo summer
and indirectly.
MOHD
KHALID
OBJECTIVES OF THE REPORT
1. To compare the services offered by banks.
2. to compare the services offered by public sector banks ,private
sector banks and HDFC BANK LTD.
3. To know the behaviour of staff of banks towards their customers.
4. To find the various investment alternatives available in themarket
and compare them.
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5. To collect the data and analyze it to know the investment
behaviour of the people of Lucknow.
6. To know which is the most favorite investment alternative of the
people and why.
7. To help company know the existing investment scenario in the
Lucknow.
8. To help company formulate strategy, to attract the investors
on the basis of the findings.
INTRODUCTION
At no time in the history of mankind is the individual dependent on his
fellow men for survival. Whether it be environmental and economic
concerns, living conditions, basic human rights, peaceful coexistence or
protection and sharing of natural resources. Man must learn to contribute
towards global wealth which is possible only by earning more, spending less
and protecting what is earned.
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I f a person has more money than he need for current consumption, he is a
probable investor. He may invest his savings in the manner which is best
suited to him.
The investor makes sacrifice now in the hope of deriving benefits in the
future. Correct investment require care, monitoring and advice. Balanced
portfolios and regular reviews will ensure that the investments do not get
sick. Capital strapped in sick investments die sooner or later. Periodic
review is a must to make safer investments.
Decision about the investment alternative depend upon the following three
factors-
- Risk
- Return
- Liquidity
HDFC AN INTRODUCTION
Background
HDFC was incorporated in 1977 with the primary objective of meeting a
social need that of promoting home ownership by providing long-term
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finance to households for their housing needs. HDFC was promoted with an
initial share capital of Rs. 100 million.
HDFC has since emerged as the largest residential mortgage finance
institution in the country. HDFC is Indias largest Housing Finance
company and is an expert on the housing sector, property markets and the
real estate business. HDFC has a strong retail orientation with high quality
customer service being the driving force for its activities. This expertise and
service orientation has developed and strengthened over the last 22 years.
Today HDFC has an office network of 63 offices all over the country and an
overseas office in Dubai. HDFC has financed over 1.5 million dwelling units
with loan approvals and disbursements amounting to Rs. 225 billion and Rs.
186 billion respectively.
Over a span of 25 years, HDFC has become the pioneer in housing finance
in India and made it possible for over two million families to own their
homes, through housing loans worth over Rs. 42,000 crores.
HDFC has demonstrated the viability of market oriented housing finance in
a developing country. The World Bank considers it as a model private sector
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housing finance company in developing countries and a provider of
technical assistance for new and existing institutions.
Business Objectives
The primary objective of HDFC is to enhance residential housing stock in
the country through the provision of housing finance in a systematic and
professional manner, and to promote home ownership. Another objective is
to increase the flow of resources to the housing sector by integrating the
housing finance sector with the overall domestic financial markets..
Organizational Goals
HDFCs main goals are to
a) develop close relationships with individual households,
b) maintain its position as the premier housing finance institution in the
country,
c) transform ideas into viable and creative solutions,
d) provide consistently high returns to shareholders, and
e) to grow through diversification by leveraging off the existing client base.
ORGANISATION AND MANAGEMENT
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HDFC is a professionally managed organisation with a board of directors
consisting of eminent persons who represent various fields including
finance, taxation, construction and urban policy & development. The board
primarily focuses on strategy formulation, policy and control, designed to
deliver increasing value to shareholders.
AWARDS
Over a decade of its operations, HDFC Bank has been recognized, rated and
awarded by a number of organizations, which includes
Best retail bank in India in the ASIAN excellence in retail finance services
award 2007
In2006 best bank of India according to business today imagine.
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y Best Domestic Bank in India in The Asset Triple A Country Awards
2005, 2004 and 2003.
y Company of the Year Award in The Economic Times Awards for
Corporate Excellence 2004-05.y Asiamoney's Awards for Best Domestic Commercial Bank as well as
Best Cash Management Bank - India in 2005.
y The Asian Banker Excellence in Retail Banking Risk Management
Award in India for 2004.
y Finance Asia Best Bank - India in 2005, "Best Domestic
Commercial Bank India in 1999, 2000 and 2001 respectively and
Best Local Bank India in 2002 and 2003.
Business Today Best Bank in India in 2003 and 2004.
y Best Overall Local/Domestic Bank India in the Corporate Cash
Management Poll conducted by Asiamoney magazine.
y Selected by BusinessWorld as "one of India's Most Respected
Companies" as part of The Business World Most Respected Company
Awards 2004.
y In 2004, Forbes Global named HDFC Bank in its listing of Best
Under a Billion, 100 Best Smaller Size Enterprises in Asia/Pacific and
Europe.
y In 2004, HDFC Bank won the award forOperational Excellence inRetail Financial Services - India as part of the Asian Banker Awards
2003.
y In 2003, Forbes Global named HDFC Bank in its ranking ofBest
Under a Billion, 200 Best Small Companies for 2003.
y The Financial Express named HDFC Bank the Best New Private
Sector Bank 2003 in the FE-Ernst & Young Best Banks Survey
2003.
y Outlook Money named HDFC Bank the Best Bank in the Private
Sector for the year 2003.
y NASSCOM and economictimes.com have named HDFC Bank the
Best IT User in Banking at the IT Users Awards 2003.
y Euromoney magazine gave HDFC Bank the award for "Best Bank
India in 1999, Best Domestic Bank in India in 2000, and Best
Bank in India in 2001 and 2002.
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y Asiamoney magazine has named us Best Commercial Bank in India
2002
y For its use of information technology, HDFC Bank has been
recognized as a Computerworld Honors Laureate and awarded the21st Century Achievement Award in 2002 for Finance, Insurance &
Real Estate category by Computerworld, Inc., USA. Its technology
initiative has been included as a case study in their online global
archives.
y Business India named HDFC BankIndias Best Bank in 2000.
y In 2000, Forbes Global named HDFC Bank in its list ofThe 300 Best
Small Companies in the world and as one of the 20 for 2001 best
small companies in the world.
SUBSIDIARIES AND ASSOCIATED COMPANIES OF
HDFC
1. HDFC BANK
2. HDFC MUTUAL FUND
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3. HDFC STANDARD LIFE INSURANCE COMPANY
4. HDFC REALITY
5. HDFC CHUBB GENERAL INSURANCE COMPANY
6. INTELNET GLOBAL SERVICES LIMITED
7. CREDIT INFORMATION BUREAU (INDIA) LIMITED
8. OTHER COMPANIES CO PROMOTED BY HDFC
HDFC BANK:-
Background
The Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an in principle approval from the Reserve Bank
of India (RBI) to set up a bank in the private sector, as part of the RBIs
liberalization of the Indian Banking Industry in 1994. The bank was
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incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995
Business Focus
HDFC Banks mission is to be a World-Class Indian Bank. The objective is
to build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services for target retail and wholesale
customer segments, and to achieve healthy growth in profitability, consistent
with the banks risk appetite. The bank is committed to maintain the highest
level of ethical standards, professional integrity, corporate governance and
regulatory compliance. HDFC Banks business philosophy is based on four
core values - Operational Excellence, Customer Focus, Product Leadership
and People.
Business Profile
HDFC Bank caters to a wide range of banking services covering both
commercial and investment banking on the wholesale side and transactional
/ branch banking on the retail side. The bank has three key business
segments:
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a) Wholesale Banking Services
The Banks target market is primarily large, blue-chip manufacturing
companies in the Indian corporate sector and to a lesser extent, small &
mid-sized corporates and agri-based businesses. For these customers, the
Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of
structured solutions, which combine cash management services with
vendor and distributor finance for facilitating superior supply chain
management for its corporate customers. Based on its superior product
delivery / service levels and strong customer orientation, the Bank has
made significant inroads into the banking consortia of a number of
leading Indian corporates including multinationals, companies from the
domestic business houses and prime public sector companies. It is
recognised as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange
members and banks.
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Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. With the liberalization of the financial markets
in India, corporate need more sophisticated risk management
information, advice and product structures. These and fine pricing on
various treasury products are provided through the banks Treasury team.
To comply with statutory reserve requirements, the bank is required to
hold 25% of its deposits in government securities. The Treasury business
is responsible for managing the returns and market risk on this
investment portfolio.
c) Retail Banking Service
The objective of the Retail Bank is to provide its target market customers
a full range of financial products and banking services, giving the
customer a one-stop window for all his/her banking requirements. The
products are backed by world-class service and delivered to the
customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, Net Banking
and Mobile Banking.
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Capital Structure
The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The
paid-up capital is Rs.309.9 crore (Rs.3.09 billion). The HDFC Group holds
22.2% of the banks equity and about 19.5% of the equity is held by the
ADS Depository (in respect of the banks American Depository Shares
(ADS) Issue). Roughly 31.7% of the equity is held by Foreign Institutional
Investors (FIIs) and the bank has about 190,000 shareholders. The shares are
listed on the Stock Exchange, Mumbai and the National Stock Exchange.
The banks American Depository Shares are listed on the New York Stock
Exchange (NYSE) under the symbol HDB.
Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an
enviable network of over 495 branches spread over 218 cities across India.
All branches are linked on an online real-time basis. Customers in over 120
locations are also serviced through Telephone Banking. The Banks
expansion plans take into account the need to have a presence in all major
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industrial and commercial centres where its corporate customers are located
as well as the need to build a strong retail customer base for both deposits
and loan products. Being a clearing/settlement bank to various leading stock
exchanges, the Bank has branches in the centres where the NSE/BSE have a
strong and active member base.
The Bank also has a network of about over 1054 networked ATMs across
these cities. Moreover, HDFC Banks ATM network can be accessed by all
domestic and international Visa/MasterCard, Visa Electron/Maestro,
Plus/Cirrus and American Express Credit/Charge cardholders.
Technology
HDFC Bank operates in a highly automated environment in terms of
information technology and communication systems. All the banks
branches have online connectivity, which enables the bank to offer speedy
funds transfer facilities to its customers. Multi-branch access is also
provided to retail customers through the branch network and Automated
Teller Machines (ATMs).
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HDFC STANDARD LIFE INSURANCE:-
The Partnership:
HDFC and Standard Life first came together for a possible joint venture, to
enter the Life Insurance market, in January 1995. It was clear from the outset
that both companies shared similar values and beliefs and a strong
relationship quickly formed. In October 1995 the companies signed a 3 year
joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further
strengthening the relationship.
The next three years were filled with uncertainty, due to changes in
government and ongoing delays in getting the IRDA (Insurance Regulatory
and Development authority) Act passed in parliament. Despite this both
companies remained firmly committed to the venture.
In October 1998, the joint venture agreement was renewed and additional
resource made available. Around this time Standard Life purchased 2% of
Infrastructure Development Finance Company Ltd. (IDFC). Standard Life
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also started to use the services of the HDFC Treasury department to advise
them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising
and both companies agreed the time was right to move the operation to the
next level. Therefore, in January 2000 an expert team from the UK joined
with team from HDFC to form the core project team, based in Mumbai.
Incorporation of HDFC Standard Life Insurance Company Limited:
The company was incorporated on 14th August 2000 under the name of
HDFC Standard Life Insurance Company Limited.
Our ambition from as far back as October 1995 was to be the first private
company to re-enter the life insurance market in India. On the 23rd of
October 2000, this ambition was realized when HDFC Standard Life was the
only life company to be granted a certificate of registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while
Standard Life owns 18.6%. Given Standard Life's existing investment in the
HDFC Group, this is the maximum investment allowed under current
regulations.
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HDFC and Standard Life have a long and close relationship built upon
shared values and trust. The ambition of HDFC Standard Life is to mirror
the success of the parent companies and be the yardstick by which all other
insurance company's in India are measured.
Our Mission:
We aim to be the top new life insurance company in the market.
This does not just mean being the largest or the most productive company in
the market, rather it is a combination of several things like-
y Customer service of the highest order
y
Value for money for customers
y Professionalism in carrying out business
y Innovative products to cater to different needs of different customers
y Use of technology to improve service standards
y Increasing market share
Our Values:
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y SECURITY: Providing long term financial security to our policy
holders will be our constant endeavour. We will be do this by offering
life insurance and pension products.
y TRUST: We appreciate the trust placed by our policy holders in us.
Hence, we will aim to manage their investments very carefully and
live up to this trust.
y
INNOVATION: Recognizing the different needs of our customers,
we will be offering a range of innovative products to meet these
needs.
Our mission is to be the best new life insurance company in India and these
are the values that will guide us in this.
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RANGE OF PRODUCTS OFFERED BY HDFC STANDARD LIFE
INSURANCE COMPANY LIMITED
Plan Benefits
Savings Plans
Endowment Assurance Plan Life Insurance with Savings
Unit Linked Endowment PlanLife Insurance & Savings with choice of
investment funds
Childrens Plan Financial Security for your child
Unit Linked Young Star PlanFinancial security for your child with
choice of investment funds
Money Back Plan Life Insurance with Savings
Investment Plans
Single Premium Whole Of Life
PlanInvestment with Life Insurance
Protection Plans
Term Assurance Plan Life Insurance at an affordable price
Loan Cover Term Assurance
Plan
Life Insurance customized for home
loans
RetirementP
lansPersonal Pension Plan Savings for retirement
Unit Linked Pension PlanRetirement Savings with a choice of
investment funds
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TAX BENEFITS FROM THE POLICIES OF THE HDFC
STANDARD LIFE INSURANCE COMPANY LIMITED
Tax Benefits
INCOME
TAX
SECTION
GROSS
ANNUAL
SALARY
HOW MUCH
TAX CAN YOU
SAVE?
HDFC
STANDARD LIFE
PLANS
Sec. 80CAcross All
income Slabs.
Upto Rs. 33,660
saved on
investment of Rs.
1,00,000.
All the life insurance
plans.
Sec. 80 CCCAcross all
income slabs.
Upto Rs. 3,366saved on
Investment of Rs.
10,000.
All the pension
plans.
Sec. 80 D*Across all
income slabs.
Upto Rs. 3,366
saved on
Investment of Rs.
10,000.
All the health
insurance riders
available with the
plans.
TOTAL
SAVINGS
POSSIBLE **
Rs. 37,026
Rs. 33,660 under Sec. 80C and under Sec. 80 CCC ,
Rs.3,366 under Sec. 80 D, calculated for a male with
gross annual income exceeding Rs. 10,00,000.
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HDFC REALITY:-
The property market in India abounds with possibilities and potential but for
the large part, it is still highly fragmented and disorganized.
HDFCrealty.com is the new, organized electronic marketplace for
properties. They provide the entire gamut of real estate services, bringing
together the "clicks world" and the "bricks world" in a revolutionary and
user-friendly way. Making available the best guidance, and the most
professional, transparent, efficient service to the real estate customer.
HDFCrealty.com brings together India's most exhaustive database of
properties. It acts as a one-stop online hub for information, comparative
analyses, transactions, market reach and comprehensive professional
services. For property anywhere in India. For customers anywhere in the
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world HDFCrealty.com, the company behind this site, has been formed by
Housing Development Finance Corporation Limited (HDFC).
HDFC CHUBB GENERAL INSURANCE:
HDFC Chubb General Insurance Company Limited is a joint venture
between HDFC, India's premier financial services company and Chubb
Corporation, a leading global non-life insurer. HDFC Chubb offers a product
and service range that is born out of the collective expertise of two
organisations that are considered leading players in their respective markets.
Over a century of expertise and consumer insight make the product range
world class and comprehensive. HDFC Chubb offers two main streams of
Insurance products and services -
- Commercial insurance
- Specialty insurance
1. COMMERCIAL INSURANCE-
HDFC Chubb aims to introduce a range of commercial Insurance products
and services aimed at selected target segments of business and industry.
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Going further, tailor-made enhancements and packaging of products and
services that Chubb provides to its international customers will be
introduced to the Indian market. This of course, will be apart from the
regular range of offerings presently available to corporate and commercial
customers in India. These products will cover the broad spectrum of the
main commercial classes of Property, Marine and Casualty classes of
business.
2. SPECIALITY INSURANCE-
Using Chubb's global experience and capabilities, HDFC Chubb has
introduced it's range of specialty products for Executive Protection and
Financial Institutions. Products and offerings in this area are being
customized for local market requirements and following products are
currently available.
Motor Insurance:
We understand and care for your vehicle beyond just the policy issue and
speedy claims. HDFC Chubb's Motor Insurance product mainly focuses on
Motor Package Policy for private cars & two wheelers
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Home insurance:
With Home Insurance, we will offer you cover for your home and
belongings against fire and burglary. Our Home Insurance will bring you the
convenience of purchase from HDFC's home loan counters.
Accident and Health:
Accidents can happen anywhere and at anytime, which is why the HDFC
Chubb Accident and Travel policy is designed to protect you from the
financial consequences. Avail of the Group Accident Policy, Hospital cash-
Accident policy and Business Travel policy.
Personal Accident Policies:-
1. Group Personal Accident Policy (GPA)
- You can decide the benefits you want for each class of employee.
- Can be as a flat amount or a multiple of the salary.
- Premiums are paid by the organization
2. Voluntary Group Accident Policy (VGA)
- No direct cost to the employer.
- Each employee decides the level of cover they want.
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- Involves minimal administration and paperwork.
- The plan is specifically designed for the organisation
- Premiums are directly deducted from an employees salary.
INTELNET GLOBAL SERVICES LIMITED
Mission: Focus on the customer
To add value to our client's business by providing cost effective - premium
quality client management services and be the preferred vendor for off-
shored, outsourced BPO services
Values: Building trust
Intelenet's delivery platform encompasses a value framework to ensure over
delivery to Clients and their Customers. These superior class services
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delivered at scale impact both cost savings as well as customer delight.
Our values are:
y Integrity in all aspects
y Committed to team work
y Exist for the customer
y Highly flexible
y Nurture diversity
y Transparency in all action
y Singularly cost conscious
y Accountable for all actions
Outbound Voice Service:
y Collections.
y Telemarketing.
y Outbound Surveys and Polls.
y Account Verification
Inbound Voice Service:
y Customer Services.
y Order Taking.
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y Inbound sales.
y Call-in-polls
Email and chat services:
With many customers increasingly using emails and chat services to contact
companies, we have installed Talismas email and chat products to build
high quality customer relationships by guaranteeing exceptional quality
responses
Back Office Proccessing
We currently provide transaction-processing services to the insurance,
banking, credit cards, media and legal companies. Our services include:
y Invoice indexing.
y Invoice processing.
y Data processing.
y Customer queries.
y Fraud authorization.
y Skip tracing.
y Corporate financial data management.
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y Mortgage processing
Accounting Services
We deliver services in the areas of:
y Accounts payables
y Accounts receivables
y Accounts Reconciliation
y General Ledger entries
y Check processing
Infrastructure
Delivering business processes to companies in US and UK from our sites in
Mumbai and Chennai requires sound infrastructural facilities. The technical
infrastructure currently present at our premises is capable of providing 100%
up-time to your business. Moreover, vendors associated with us, provide
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continuous up-time support during critical periods. This assures that work
does not get affected
Key Highlights of our Infrastructure are:
y The site locations are not historically prone to natural or man-made
disasters.
y HDFC developers have ensured that the facilities are truly 24/7 . No
maintenance work would hinder operations e.g. Walls are paneled to
bypass the need for painting.
y Centrally A/C system with microprocessor temperature control.
y 100% backed up power to ensure 100% uptime.
y Adequate fire fighting equipment with fire drills conducted regularly.
y Round the clock physical security with all employees given restricted
access via the use of electronic access cards.
CREDIT INFORMATION BUREAU (INDIA) LTD.
Rapid industrialisation. An expanding economy. Growing aspirations.
Increased incomes. Improved lifestyles. Availability of high quality products
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and services. An expanding market.
These factors have created an atmosphere conducive to rapid credit off take.
While the demand for credit has risen exponentially, there has been a
parallel increase in competition, and credit delinquencies. In such an
environment, risk assessment is of critical importance. Not only, in deciding
on what business to book and the speed at which a credit grantor does so, but
also in determining the appropriate pricing.
Comprehensive credit information, which provides details pertaining to
credit facilities already availed of by a borrower as well as his payment track
record, has become the need of the hour.
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The answer took shape when the Credit Information Bureau (India) Limited
(CIBIL) was incorporated in 2000.
CIBILs aim is to fulfill the need of credit granting institutions for
comprehensive credit information by collecting, collating and disseminating
credit information pertaining to both commercial and consumer borrowers,
to a closed user group of Members. Banks, Financial Institutions, Non
Banking Financial Companies, Housing Finance Companies and Credit Card
Companies use CIBILs services. Data sharing is based on the Principle of
Reciprocity, which means that only Members who have submitted all their
credit data, may access Credit Information Reports from CIBIL. The
relationship between CIBIL and its Members is that of close
interdependence.
OTHER COMPANIES CO-PROMOTED BY HDFC
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HDFC Trustee Company Ltd.
GRUH Finance Ltd.
HDFC Developers Ltd.
HDFC Venture Capital Ltd.
HDFC Ventures Trustee Company Ltd.
HDFC Investments Ltd.
HDFC Holdings Ltd.
Home Loan Services India Pvt. Ltd.
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The shareholding of HDFC in its subsidiary and associate companies
promoted by HDFC as at March 31, 2004 is as follows :
COMPANY SHAREHOLDING (%)
HDFC Bank Limited 24.2
HDFC Asset Management Company Limited 50.1
HDFC Standard Life Insurance Company Limited 74.8
HDFC Realty Limited 100.0
HDFC Chubb General Insurance Company Limited 74.0
GRUH Finance Limited 61.9
Intelnet Global Services Limited 50.0
Credit Information Bureau (india) Limited 40.0
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INVESTMENT
Investment is a term with several closely -related meanings in finance and
economics. It refers to the accumulation of some kind of asset in hopes of
getting a future return from it.
In theoretical economics, investment means the purchase (and thus the
production) of capital goods - goods which are not consumed but instead
used in future production. Examples include building a railroad, or a
factory, clearing land, or putting oneself through college. In a stricter
sense, investment is also acomponent of GDP given in the formula
GDP = C + I + G + NX. The investment function in that aspect is
divided into non-residential investment (such as factories, machinery etc)
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and residential investment (new houses). Investment isa function of
income and interest rates, given by the relation I = (Y, i). An increase
in income will encourage higher investment, whereas a higher interest
rate will discourage investment as it becomes costlier to borrow money.
Even if a firm chooses to use its own funds in an investment, the interest
rate represents an opportunity cost of investing those funds rather than
loaning them out for interest.
In finance, investment means buying securities or other monetary or
paper assets, for example equity investment or real estate investment,
Forex or bonds or postage stamps. These investments may then provide
future cash flows and may increase or decrease in value.
Investment clubs are groups of individuals who meet on a regular
basis for the purpose of investing money, most often in stocks and other
publicly traded securities. Various online communities devoted to this
type of investing have recently emerged and have contributed to the
personal investing boom in the United States. Two of the largest provide
best practices for investment clubs and extensive accounting resources
for these groups of investors. The latter site also has an extensive listing
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of U.S.-based investment clubs. A smaller international community
founded in 1997 openly allows individual investors to observe and learn
from its activities.
DIFFERENCE BETWEEN SAVINGS AND INVESTING
Saving denote that part of the earnings that are set apart to be used for
meeting future commitments, needs and contingencies. Idle savings when
put to work become investment. The difference between savings and
investing is really about one thing: how hard is the investors money
working.
SAFETY, LIQUIDITY AND RETURN: THREE APITOMBS OF
INVESTING
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Profits are a measure of effective and efficient financial handling
operations--------- kasturbhai Lalbhai.
The investor should never loose focus on three basic qualities, which every
investment must have: safety, liquidity and optimum return.
Safety, liquidity and return are must for any financial instrument to qualify
as an investment option. Degree of safety, liquidity or return may vary but
none of these can be zero. An investment without any one of these three
essentials is not worth considering.
y SAFETY
Rule 1: Never risk the capital at the cost of earning returns.
Rule 2: Never forget rule one.
The money is precious. The investors should keep it in safe hands. Schemes
offering unexpectedly higher returns must be viewed with caution. Blindly
believing misleading advertisements and publicity by fly-by-night operators
is risky. Ensure credibility and financial strength of institutions before the
investor invest. Speculative bubbles often end up in crash. Avoid herd
mentality and take conscious decisions to buy or sell. When markets are
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crashing and everybody is selling, hold back for more appropriate time for
coming out of market. Rather look for buying opportunities created by
sudden crash. Staying invested longer while trading fluctuations in stock
markets has often rewarded well-informed investors. At the same time weak
investments die over a time. Signs of sickness need first -aid that can be
administered by the investor himself. Non-performing sick investments must
be weeded out, to be replaced by healthy and fundamentally strong
investments.
y LIQUIDITY
Availability of money when the investors need is the second most important
principle while choosing an investment. Unless an investment is convertible
into cash with ease and speed, it may not serve the purpose for which it was
invested. Deposits in banks, post office, gold, silver and actively traded
shares of blue chip companies are more liquid as compared to immovable
property. Exit route at affordable cost is a must. Forced selling of
investments to meet short-term needs is bad planning. Keep a mix of short-
term, medium term and long-term investment for meeting varying needs
arising over a period.
y PROFITABILITY
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y Money does not grow in earthen paths. Invest in profit yielding
propositions to ensure addition to net worth at the same time hedging
against inflation. Whether derived by way of periodic returns or
accumulations or both, the investments must grow to meet the growing
demands of the investors.
y RISK ASSESSMENT
It is generally not possible to quantify the risk in absolute terms but the
investors appetite for taking risk could be worst than others who do not
realize, what the money lost due to risky decisions could have earned for
them. Composition of investment portfolio must balance needs and
aspirations on one hand and risk appetite on the other. Safety of investment
is of utmost importance and could not be compromised on any account.
Government securities are exposed to minimum risk and thus these are
called zero risk securities, while securities of companies have relatively
higher risks, investor has to be vigilant and sensitive enough to foresee the
risks involved in the investment and take right decisions at right time.
TAX PLANNING IS CRUCIAL FOR INVESTMENT
Personal tax is one of the major direct cost on the returns earned on savings.
Tax weans away a substantial portion from the returns and hence it is of
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paramount importance to understand causes and effects of personal tax on
investments.
TYPES OFINVESTMENTS
Basically there are five different types of investments:
Real Estate: If you own your home, you are an investor. In fact, your home
is probably the biggest single investment you'll ever make. Historically, real
estate always appreciates. How fast depends on the local market. But when
you sell your home, you can usually expect to make a profit.
Bonds: Bonds are debt obligations issued by corporations and governments.
They are for a fixed sum and pay interest. They have a maturity date, the
date when the issuer must pay back the loan. Bonds carry a burden of risk of
default and are rated for their safety by two organizations: Standard & Poors
and Moody. S&P rates bonds from AAA to D, with AAA being the safest.
Moody rates bonds from Aaa to C, with Aaa being the safest.
Government bonds include Treasury Bills, T-Notes and Treasury Bonds,
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obligations issued by federal government agencies such as Fannie Maes,
Ginnie Maes and Sallie Maes, and savings bonds. In addition, state and local
municipalities issue tax-free bonds. Corporate bonds are issued by
businesses. There are also bond mutual funds.
Stocks: When you buy a stock, you buy a portion of a corporation. A
business, when it incorporates, authorizes a certain number of shares of the
corporation. Each share represents an equal portion of ownership in the
corporation. Shares of brand new corporations have a par value- the value
printed on the face of the stock certificate- but that number quickly becomes
irrelevant. What is relevant is how much investors are willing to pay for the
share. That is its selling price and represents the market value of the share.
In addition, a share has a book value. The book value is the value of the
assets of the corporation, should the corporation be dissolved and the assets
sold off.
Futures, Options And Commodities: These are all highly risky
investments in which you guess or speculate at the future prices. They are
not for the average investor.
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INVESTMENT OPTIONS AVAILABLE
1. Insurance plans of Life Insurance Corporation of India
2. Insurance plans of Private Insurance Companies
3. Saving schemes of post office
4. Banks and its saving schemes
5. Bonds
6. Investing in shares
7. LIC mutual funds
8. Private mutual funds
9. UTI Schemes
10. Real estate
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Life Insurance Policies
Broadly the life insurance policies can be divided into four categories:
1. Cash value life insurance
2. Term insurance
3. Whole life insurance
4. Annuity plans
1. Cash-value life insurance: Cash-value life insurance and
itsvariants, such as whole life or variable life combine insurance coverage
with investing. A portion of the premium goes towards the coverage, and
another portion goes towards the accumulation of the cash value or into an
investment account.
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Cash value insurance is an excellent investment tool besides
providing the cover for the contingencies. They are offered by LIC and other
private insurers coupled with the risk coverage and tax exemptions make
investment in insurance a wise decision.
2. Term insurance: Term insurance is just plain insurance with
no investment components. This makes the policies more cheaper, less
complicated and easier to compare. Term could be for the defined period or
undefined for the whole life.
Also called temporary insurance, term life insurance covers the
person against death for a limited time or the term. For example, the term
might be one year, ten year or even more or it may be linked to an event for
example- until children are grown, or until they finish college, or until they
get married or until you retire, etc.
You pay for the policy period and at the end of the term, the
policy expires. If no claims are made against the policy during the period,
you dont receive any benefit after the policy expires.
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3. Whole life insurance: Also called permanent insurance, the whole
life insurance, is permanent in nature and does not expires till the time
insured is alive and continues to pay the premium as per the policy. It
provides coverage similar to the term insurance in addition to the maturity
amount. A part of your premium goes towards the insurance portion of your
policy, a small part of your premium goes towards the administrative
expenses, and the balance of your premium goes towards the investment or
cash portion of your policy.
4. Annuity plans: Life insurance also lets you plan for the future
by protecting your financial resources against the uncertainties of life.
Annuity or commonly called pension can help manage money to last a
lifetime.
Annuities are the only financial planning tool that can help you.
save and then provide you the payout plan on retirement. It is a secure and
steady stream of income.
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Plans of Life Insurance Corporation of India
1. New Beema Kiran- low cost high risk
2. Jeevan Aadhar- plan for handicapped dependents
3. Asha Deep- cover against diseases
4. Jeevan Asha- surgical benefit plan
5. Pension Plans-
- New Jeevan Akshay
- New Jeevan Suraksha
6. Endowment Plans
- Endowment assurance double advantage plan
- Jeevan Mitra-Double insurance coverage
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- Jeevan Anand-A whole life scheme
7. Money Back Plans for Liquidity
8. Childrens Insurance Plans
- Jeevan Kishore
- Jeevan Chhaya
- Bal Vidya
- Komal Jeevan
Plans ofPrivate Insurance Companies
(A) ICICI Prudential Life Insurance Company
ICICI PRU Smart Kid
ICICI PRU Lifeguard Level term assurance
ICICI PRU Forever Life Deferred pension plan
(B) HDFC Standard Life Insurance Company
HDFC Endowment Assurance Plan
HDFC Money Back Plan
Single Premium Whole Life Insurance Plan
HDFC Personal Pension Plan
HDFC Term Assurance Plan
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HDFC Childrens Plan
UNIT LINKED INVESTMENT PLANS (ULIPS)
ULIPS are life insurance products that combine life cover with investment
but manage the two independently. Though ULIP stands for unit-linked
insurance plan it may be well known as unit-linked investment plan.
The ULIPS have emerged as the most popular form of insurance in the
country. The largest private sector insurance company in India, ICICI
Prudential, earns 90% of its total premium from ULIPS.
ULIPS combine the benefits of insurance and mutual funds. A portion of the
investor goes into buying insurance cover and the rest is invested in the fund
of his choice-equity, balanced or debt. The cover is ordinarily five, 10 or 20
times the premium paid. The higher the insurance cover, the lesser the
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portion that goes into the investment corpus. In a ULIP the investor can
switch from equity to debt-and vice versa-depending on his life stage.
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Investors can also respond to the changes in the market scenario. An investor
can switch from the equity fund to the debt fund if he feels that the stock
market is overheated and due for a correction. But these are long-term
investments and daily fluctuations in the NAV should not impact an
investors decision. Investors can also top up their ULIPS by investing more
than the premium payable in a year. Through there is no upper limit for tops-
ups; they are not eligible for tax deductions. ULIPS offer another advantage
over an endowment policy. Withdrawals are generally allowed after a three-
year lock-in period. Since ULIP is an insurance policy, incomes or profits
arising from the investment are tax-free. Even the top-up investments can be
redeemed without any fear of the taxman. However, this is only if the life
covers is at least five times the annual premium.
ULIPS also offer a great degree of transparency to investors. Traditionally,
endowment and money-back policies kept their investments under wraps and
a policyholder had no clue where were his savings were being invested. In
contrast, a ULIP investor is allotted units and the per unit price expressed as
the net asset value (NAV) and announced daily.
ADVANTAGES OF ULIPS
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y The advantage of unit-linked plans is that they are simple, clear, and easy
to understand. Being transparent the policyholder gets the entire upside
on the performance of his fund. Besides all the advantages they offer to
the customers, unit-linked plans also lead to an efficient utilization of
capital.
y Unit-linked products are exempted from tax and they provide life
insurance. Investors welcome these products as they provide capital
appreciation even as the yields on government securities have fallen
below 6 per cent, which has made the insurers slash payouts.
According to the IRDA, a company offering unit-linked plans must give the
investor an option to choose among debt, balanced and equity funds. If they
opt for a unit-linked endowment policy, they can choose to invest their
premiums in debt, balanced or equity plans.
If they choose a debt plan, the majority of their premiums will get invested
in debt securities like gilts and bonds. If they choose equity, then a major
portion of their premiums will be invested in the equity market. The plan
they choose would depend on their risk profile and their investment need.
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The ideal time to buy a unit-linked plan is when one can expect long-term
growth ahead. This is especially so if one also believes that current market
values (stock valuations) are relatively low.
So if the investors are opting for a plan that invests primarily in equity, the
buzzing market could lead to windfall returns. However, should the buzz die
down, investors could be left stung.
ULIP SCHEMES THAT HAVE BEEN IN EXISTENCE FOR
OVER A YEAR
TYPE SCHEME AGE
1-YR
RETURN% EQUITY% DE
LIQUID HDFC Bank Standard Life-Liquid 16 4.4 0 Kotak OM Life-Money Market 22 5.07 0
G-SEC Kotak OM Life-Gilt 22 2.76 0
BOND HDFC Standard Life-Secure 16 -1.92 0
ICICI Pru Life-Protector 41 -0.09 0
Kotak OM Life-Bond 12 4.6 0
DEFENSIVE Aviva Life-Secure 15 6.36 20 Birla Sun Life-Protector 49 -4.39 10
Birla Sun Life-Builder 49 -1.97 20
HDFC Standard Life-Defensive 16 3.55 20
BALANCED Birla Sun Life-Enhancer 49 -0.11 35
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ICICI Pru Life-Balancer 41 3.83 40
Aviva Life-Balanced 35 13.61 45
HDFC Standard Life Balanced 16 9.95 60
GROWTH ICICI Pru Life-Maximiser 41 9.35 100
HDFC Standard Life-Growth 16 20.46 100
Kotak OM Life-Growth 22 4.78 100
Aviva Life-Growth 15 32.92 100
y ULIPS are life insurance products that combine life cover withinvestment but manage the two independently.
y Unit price is based on the market value of the underlying assets (equities,bonds, government securities) and is declared daily as the net asset value.
y Premium comprises cost of life insurance, administration cost andinvestments.
y Investments of up-to Rs.1 lakh a year are deductible from the taxableincome.
Saving Schemes ofPost Offices
Post Office offers a lot more than merely delivering the letters for you. It
acts as a bank and at the same time also offers a wide choice of investment
options to choose from. You can open a saving account, a monthly income
deposit, a term deposit, PPF, recurring deposit in the next door post office.
Though there has been a steady decline in the interest rates
over last few years and small saving instruments are loosing shine, yet these
instruments offered by post offices remain popular among salary earners as
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they offer comparatively higher interest income than one could find
elsewhere coupled with 100% safety.
Deposit Schemes ofPost Offices
1. Saving Account Schemes
2. 5 Year RD Account
3. Post Office Monthly Income Scheme
4. Post Office Time Deposit Scheme
5. 6 Year NSC (8th issue)
6. Kisan Vikas Patra
7. Public Provident Fund Schemes
8. Deposit Schemes for Retiring Employees
9. Senior Citizen Saving Scheme
10. Employees Provident Fund
11. Postal Life Insurance Schemes
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Banks and Its Saving Schemes
Banks have been acting as custodian for millions of account holders. They
offer variety of options to account holders to invest their money depending
upon the time horizon and return expectations wherein they can earn interest
income.
Deposit with Banks
1. Saving Account Schemes
2. Term Deposits Account
3. Special Term Deposit
4. Recurring Deposit
5. Long Term Floating Rate Deposit
6. Multi Option Deposit Scheme
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7. Saving Plus Account
8. Senior Citizen Deposit Scheme
9. Commercial Paper
Saving Account Schemes:
These accounts are used more as a money transfer
device rather than an investment option. Convenience of operating the
account, cheque writing facility, availability of bank branches at every nook
and corner of India, transparency in working and error free accounting
systems adopted by the banks are some of the reasons for growth of saving
accounts.
Term Deposit Account:
Savings account though earns a moderate interest of
3.5% but it would be inappropriate to call it as an investment option. Term
deposits on the other hand are the accounts with the bank with a longer time
horizon primarily to earn interest besides keeping surplus money in safe
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hands. Interest rates keep changing and interest is paid either periodically or
is reinvested automatically together with the principal.
Special Term Deposit:
Interest is compounded with the principal of quarterly
intervals. Accumulated deposit together with accrued interest is payable at
the end of the agreed term.
Recurring Deposit:
Recurring deposit give the element of compulsion to
save and provide full liquidity to access your savings at any time. Suitable
for those looking for regular investment of fixed amount over selected
period of time. The unique feature of this deposit is that no tax shall be
deducted from interest irrespective of the amount of deposit or interest
earned on it. There is flexibility in the period of deposit with maturity
ranging from 6 months to 10 years.
Long Term Floating Rate Deposit:
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This is a scheme to provide a deposit
product with a floating interest rate linked to a base rate.
This scheme provides an option to invest in long term
maturity but at a floating rate of interest so that you can have a long term
portfolio with an opportunity to gain in any upward movement in interest
rates.
Multi Option Deposit Scheme:
A unique facility started by State Bank of
India and other nationalized banks at selected branches in competition with
foreign banks, to provide liquidity to term deposits and a host of other
convenient facilities. The account is a term deposit in conjunction with
saving account or current account.
Saving Plus Account:
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This account brings the best of both saving account
and term deposit account. It gives you the ease of access and liquidity of a
saving bank account and a high rate of return of term deposit.
Senior Citizen Deposit Scheme:
A term deposit scheme with differential
rate of interest to senior citizens (60 years and above ) normally fetches
0.50% higher interest. The tenure of the deposit has to be at least one year
with minimum deposit of Rs.10000
Bonds
Bonds are debt papers issued by Corporate, government, Institutions etc., to
finance large projects. These instruments offer interest income to the
investor. These are issued in various forms and sizes to cater to large
investors like banks, mutual funds, financial institutions and also to small
investors who can buy a bond just for Rs.5000. Bonds carry maturity period
and are payable on maturity.
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Most popular bonds available in the market
y IDBI Growing Interest Bonds
y IDBI Infrastructure (Tax Saving ) Bond
y IDBI Retirement Bond
y IDBI Regular Income Bonds
y ICICI Tax Saving Bonds
y Regular Income Bond of ICICI
y Children Growth Bond
y RBI Savings Bonds
A.6.5% tax free RBI Relief Bonds with 5 year maturity
B.8% taxable RBI Relief Bonds with 6 year maturity
Mutual funds
Mutual fund is a mechanism for pooling the resources by issuing the units to
the investors and investing the funds in securities in accordance with
objectives as disclosed in offer document.
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It is an organization, whose only business is the investment of its
unit holders money into money markets, stocks, bonds, or securities for the
purpose of achieving the common investment goals. It collects funds from
individuals and institutional investors, and attempts to invest and manage
those funds more effectively and efficiently than unit holders could do on
their own. Individuals who have pooled money get ownership certificate
called units of fund. More the amount invested, more the units that investor
receives and greater is his share of profits and returns.
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities.
The income earned through these investments and the capital appreciation
realized are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the
common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost
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The flow chart below describes broadly the working of a mutual fund:
MUTUAL FUND OPERATION FLOW CHART
Top Funds of the market are-
1. Alliance Basic Industries
2. Franklin India prima
3. Magnum Contra
4. Reliance Growth
5. Reliance Vision
6. Tata Growth
7. HDFC Long Term Advantage
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8. HDFC Tax Saver
9. HDFC Prudence
10.JM Balanced
11.Templeton India Pension
12.BoB Income
13.Escorts Income
14.Libra Brand
15.Prudential ICICI Income LT
16.DSPML Savings Plus Moderate
17.Chola Gilt Investment
18.Templeton IGSF Long-term
19.UTI Gilt Advantage Long-term
RESEARCH METHODOLOGY
The purpose of methodology section is to describe the research procedure.
RESEARCH: -
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Research is an art of scientific investigation or inquiry, especially through
search for new facts in any branch of knowledge.
According to D.Slesinger & M.Stephenson
The manipulation of things, concepts or symbols for the purpose of
generalizing to extent, correct or verify knowledge aids in construction of
theory or in practice of an art is research.
OBJECTIVE OF RESEARCH:
The purpose of research is to discover answer to question through the
application of scientific procedure. The main aim is to find out the truth which
is hidden & which has not discovered as yet. Though each research study has
its own specific purpose.
TYPES OF RESEARCH:
The basic types of research are as follows:
1. Descriptive Research
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Descriptive Research includes survey & fact finding enquiries of
different kind. The major purpose of descriptive research is description of the
state of affairs, as it exists at present. In social science & business research we
quite often use the term ex-post facto research for descriptive research studies.
The main characteristic of this method is that the research has not control over
the variable.
2. Analytical Research
In these research the researcher has to use facts or information already
available & analyze these to make a critical evaluation of the material.
3. Applied Research
Applied research aims at finding a solution for an immediate problem
facing a society or business organization.
4. Fundamental Research
It is mainly concerned with generalization & with the formulation of a
theory.
5. Conceptual Research
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Conceptual research is that related to some abstract idea or theory. It is
generally used by philosophers & thinkers to develop new concepts or to
reinterpret existing one.
6. Empirical Research
Empirical research relies on experience or observation alone often
without due regard for system & theory. It is data base research.
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RESEARCH PROCESS
Research process in flowchart
ddResearch
Problem
1 2 3
4
V.5 6 7
Define
ResearchProblem
Design
Research(Including
Sampling
design)
FormulateHypothesis
Review
Concept &
Review
Previous
Collect
Data
(Execution)
AnalyzeData
Test
Hypothesis
Interpret
&
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RESEARCH DESIGN
Research Design is a conceptual structure with research conducted. There is no
unique method, which can entirely eliminate the elements of undertaking. But
Research methodology more than any other procedure can minimize the degree
of uncertainty. Thus it reduces the probability of making a wrong choice amongst
alternative courses of action.
Thus a research design implies a framework or blueprint for conducting the
marketing research project. It specifies the details of the procedures necessary for
obtaining the information needed to structure and/or solve marketing research
problems. This includes within its framework :
y Defining the information needed
y Determine the phases applicable e.g. Exploratory, descriptive or causal
y Constructing a questionnaire
y Specifying the sampling process and sample size
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y Developing a plan for data analysis
particularly significant in the light of increasing competition & growing
size, which makes the task of choosing the best course of action difficult for
any business enterprises. It is imperative that any type of organization in
the present environment needs systematic supply of information coupled with
tools of analysis for making sound decisions, which involve risk. Exploratory
method of research was chosen for its helps the collecting, summarizing,
analyzing, interpreting, & presenting data, with new ideas & in effective
manner.
For this a structured questionnaire was the research instrument used for the
research works. Keeping the above definitions in mind we arrived at the
conclusion that our research which is directed towards finding out Comparison
of services offered by private sector banks and public sector & THE
INVESTMENT ALTERNATIVES AVAILABLE IN MARKET AND
INVESTMENT PATTERN OF PEOPLE OF LUCKNOW is an Exploratory
Research
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DATA COLLECTION
The communication instrument has to be as versatile as possible so that it
provides us with the most accurate of all information. It is an exceptionally
practical way to gather opinions, knowledge and behavioral intentions. Verbal
responses cannot be relied on as its essential weakness lies in the respondents
refusal to accept it at a latter date. It is also possible that the respondent may
intentionally provide false information hence the instrument used should be such
that the respondent find little scope for deviation.
As our research attempted to find out the investment alternatives available in the
market and the investment pattern of the people is an Exploratory Research
. We included the following type of questions:
Research question
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Investigate question
Our main objective required from the instrument designed was to help us obtain
the information:
Target questions for e.g., Where do you invest your present savings?
DATA COLLECTION METHODS
The collection of data was done both from primary & secondary sources.
Primary Data:
It is collected through survey conducted .The questionnaire was prepared
& persons were requested to answer, they were also personally interviewed.
The data collection was totally original & did not exist before. Thus the
data collected was totally reliable.
Through survey I obtained primary data from the reader through following
methods-
Observation method
Questionnaire
Secondary Data:
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The data, which already exist in the nature, is called as secondary data. It
provides a starting point for research & offers the advantage of low costs &
ready availability.
The historic literature & other information regarding the company profile &
investment options available in the market were taken from secondary sources
which includes-
Brochures of different organizations which are providing investment
alternatives
Newspapers & Magazines
Sampling Design
The various steps that are involved in the process of sampling design
can be illustrated through the following chart.
DEFINE THE POPULATION
DETERMINE THE SAMPLING FRAME
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DETEM
We have applied the above procedure to our research, which is given as
below:
Method used for Research: Survey Method
Sampling Exten:dehradun
Sampling Frame Distribution: Residents of dehradun
Sampling: Random.
Sampling Size: 50
Data Collection Technique: Informal Interviewing & filling of questionnaires
by common persons.
SELECT THE SAMPLING TECHNIQUE
DETERMINE THE SAMPLE SIZEDETERMINE THE SAMPLE SIZE
EXECUTE THE SAMPLING PROCESS
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SURVEY
S - Survey
U - Utilization
R Resources
V - Visualize
E - Eluctant
Y - Yield
Generalization through logical/statistical in observation
in any specific field of any specific property is known as survey.
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Survey word is made by search, in general words, survey
means, to search of something and about pros and cons of that
particular item or thing. Survey is the most important function of
managing process. Survey makes us efficient about all steps of any
management i.e. what? Why? Who? Where? And when?
If it is concerned to Marketing Survey , it can be defined in
some other way in this concern the term Survey can be defined as
study of consumers attitude as well as seller attitude about any
particular item to conclude and know about its merit and demerits of
that particular item.
The main object of the Survey is to know consumer behavior for the
particular item. Survey is the defined process that helps us to get the
attitude of consumer and betters for that particular item.
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SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure the researcher would
adopt in selecting items for the sample. Sample design may as well lay down
the number of items to be included in the sample i.e.; the size of sample.
Sample design is determined before data are collected. There are many
sample designs from which a researcher can choose. Some designs are
relatively more precise and easier to apply than other. Researcher must
select/prepare a sample design that should be reliable and appropriate for his
research study.
Steps of Sampling:
1. Selection of Universe:
The first step is developing any sample design is to clearly
define the set of object, to study the universe. The universe can be
either finite or infinite.
This is finite universe comprising of the Lucknow city. All the
public in the city are included in it.
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2. Sample Units:
A decision has to be taken concerning sample unit before
selecting the sample. There can be any sample unit but it was not
possible to find out the total universe while surveying so the sample
unit was confined.
The sampling units include most of the investor/non-investor of
Lucknow city.
3. Source List:
It is also known as sampling frame from which sample is to be
drawn. It contains the name of all items of a universe.
4. Sample Size:
Sample size was covered 200 people in Lucknow.
5. Sampling Procedure:
Finally the sample were taken a careful examination was done &
the items for the sample were taken. It was seen that there is no
systematic bias and sampling error.
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TYPES OF BANKS
TYPES OF BANKS
47%
53%
Private Sector
Public Sector
1. Here 53% banks are public sector banks.
2. 47% banks are private sector bank.
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TYPE OF ACCOUNT HOLDERS
TYPE OF ACCOUNTS
66%
22%
12%
Sav ing
Curren
h
1.Saving account holder 66%.
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2.Current account holder 22%.
3.12% people have both (current & saving) accounts.
CUSTOMERS OF HDFC BANK AND OTHER BANKS
CUSTOMERS OF BANKS
17%
83%
CUSTOMERS OFHDFC
BANK LTDCUSTOMER OF OTHER
BANKS
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1. 17% belongs to HDFC BANK.
2. 83% customers are concerned with other banks.
RATING THE SERVICES OFFERED BY BANKS
RATING THE SERVICES OFFERED BY ALL BANKS
0
0.5
11.5
2
2.5
3
3.5
4
4.5
Quality
f
r
ic
Tim
Taken
Accurarcy
Getting
Inf
rmati
n
Convenience
Complain
Handling
Behaviourof
taff
elationship
anagement
ean
Mode
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1. People are less satisfied to the quality of service offered by banks.But maximum people are satisfied from it.
2. People are not satisfied with of time taken by banks.
3. People are satisfied accuracy of bank.
4.Banks are convenient to the people.
5.They are neither satisfied nor dissatisfied to complain handling.
6. According to people behaviour of staff is average. but most of people
saying
behaviour of staff is goo
RATING THE SERVICES OFFERED BY PUBLIC SECTOR BANKS
0
12
3
4
5
6
qualityof
service
TimeTaken
Accuracy
Getting
Information
convenience
Complain
Handling
Behaviourof
taff
elationship
Management
Mean
Mode
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1.Customers are satisfied with quality of services given by public sector.
2.Customers are not satisfied with time, which is taken by banks.
3. They are satisfied with accuracy of public banks.
4. According to their banks are giving good information.
5. Complain handling power is not good.
6. Behaviour of staff is average.
7. These banks are more convenient.
8. Relationship management is neither good nor bad.
RATING THE SERVICES OFFERED BY PRIVATE SECTOR
BANKS
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0
1
2
3
4
5
6
uali
yof
Servi
e
Ti
eTa
en
Accurarcy
etting
nformation
Convenience
Complain
Handling
Behaviourof
Staff
Relation
hip
Management
Mean
Mode
pvt
1. Customers are satisfied with quality of services given by public sector.
2. Time taken by banks are average at the time of transaction or deposit.
3. Customers are satisfied with accuracy of banks.
4. Getting information is satisfactory.
5. Private sector banks are more convenient for customer but most of the
people are.
saying it is most convenient.
6.Customers are satisfied with complain handling, behaviour of staff and
relationship
management.
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RATING THE SERVICES OFFERED HDFC BANK
0
1
2
3
4
5
6
Qua
li
! o
f
Serv
i"e
Ti
#
eTaken
Accurarc
y
Getting
Information
Conven
ience
Comp
lain
$
an
dling
%
ehav
iouro
f
Staff
Re
lations
hip
Management
Mean
Mode
1.Customers are satisfied with quality of service offered by HDFC BANKbut most of
customers are saying quality of service is very good and they are very
satisfied.
2. Customers are neither satisfied nor dissatisfied time taken by banks.
3. Customers are satisfied with accuracy, getting information, which is givenby bank.
Banks are convenient to their.
4.About behaviour of staff and complain handling is average.
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RATING THE SERVICES OFFERED ING VYSAYA
0
1
2
3
4
5
6
Qua
lityof
Serv
ice
TimeTaken
Accurarcy
Getting
Information
C
onven
ience
Comp
lain
&
an
dling
'
ehav
iourof
Staff
R
elations
hip
M
anagement
Mean
Mode
ing
RATING THE SERVICES OFFEREDSTANDARD CHARTER
BANK
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0
1
2
3
4
5
6
Qua
lityo
f
Serv
ice
Time
Taken
Accurarcy
Ge
tting
Informa
tion
Conven
ience
Comp
lain
Handling
Behav
iouro
f
Staff
Re
lationship
Managemen
t
Mean
Mode
RATING THE SERVICES OFFERED ABN AMBRO
0
0 ( 5
1
1 ( 5
2
2 ( 53
3 ( 5
4
4 ( 5
)ualityof
Service
TimeTa
0en
Accurarcy
1
etting
2
nformation
Convenience
Complain
Handling
Behaviourof
Staff
Relation
3
hip
Management
Mean
Mode
abn
RATING THE SERVICES OFFERED ICICI BANK LTD
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0
1
2
3
4
5
6
4 ua
lityof
Se
rvice
TimeT
a
5 en
Acc
urarcy
6 etting
7
nform
ation
Conven
ience
Com
plain
Han
dling
Behaviourof
Staff
Re
lation
8
hip
Manage
ment
Mean
Mode
RATING THE SERVICES OFFERED YES BANK
0
1
2
3
4
5
6
Qualityof
Service
TimeTaken
Accurarcy
Getting
Information
Convenience
Complain
Handling
Behaviourof
Staff
Relationship
Management
Mean
Mode
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RATING THE SERVICES OFFERED SBI BANK
0
1
2
3
4
5
6
9 ualityof
Servi
@e
TimeTaken
Accurar
@y
Aetting
Information
Convenien
@
e
Complain
B
andling
C
ehaviourof
Staff
Relationship
D
anagement
E ean
E ode
RATING THE SERVICES OFFERED IDBI BANK
0
1
2
3
4
5
6
F
ualityo
f
Servi
G
e
TimeTaken
AccurarGy
H
etting
Informatio
n
Convenien
Ge
Compla
in
I
andlin
g
P
ehaviouro
f
Staff
Relationship
Q
anageme
nt
R ean
R ode
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RATING THE SERVICES OFFERED BANK OF INDIA
0
1
2
3
4
5
6
Qualityof
Service
TimeTaken
Accurarcy
Getting
Information
Convenience
Complain
S
andling
T
ehaviourof
Staff
Relationship
Managemen
t
Mean
Mode
RATING THE SERVICES OFFERED INDIAN OVERSEAS BANK
0
1
2
3
4
5
6
Qua
litU
of
Serv
ice
Ti
V
eTake
W
Accurarc
U
Xe
tti
W
Y
IW
for
V
atio
W
Co
W
ve
W
ie
W
ce
Co
V
`
lai
W
Ha
W
a
liW
Y
Be
b
av
iouro
f
Staff
Re
latio
W
s
b
i`
Ma
W
a
Y
e
V
e
W
t
Mea c
Mo d e
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RATING THE SERVICES OFFERED PUNJAB NATIONAL BANK
0
0 e 5
1
1 e 52
2 e 5
3
3 e 5
4
4 e 5
f ua
lityof
Serv
ice
TimeTa
gen
Accurarcy
hetting
i
nformation
Conven
ience
Comp
lain
Handling
Behav
iourof
Staff
Re
lation
p
hip
Management
Mean
Mode
RATING THE SERVICES OFFERED BY ALLAHADAB BANK
0
1
2
3
4
5
6
Qua
litq
of
Serv
ice
Ti
r
eTake
s
Accurarc
q
te
tti
s
u
Is
for
r
atio
s
Co
s
ve
s
ie
s
ce
Co
r
v
lai
s
Ha
s
w
lis
u
Be
x
av
iouro
f
Staff
Re
latio
s
s
x
iv
Ma
s
a
u
e
r
e
s
t
Mea y
Mo e
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RATING THE SERVICES OFFERED BY ORIENTAL BANK OF
COMMERCE
0
0.5
11.5
2
2.5
3
3.5
4
4.5
Qua
lityo
f
Serv
ice
Time
Taken
Accurarcy
Ge
tting
Informa
tion
Conven
ience
Comp
lain
Handling
Behav
iouro
f
Staff
Re
lationship
Managemen
t
Mean
Mode
RATING THE SERVICES OFFERED BY BANK OF BARODA
0
1
2
3
4
5
6
Qua
lityo
f
Serv
ice
Time
Taken
Accurarcy
Ge
tting
Informa
tion
Conven
ience
Comp
lain
Handling
Behav
iouro
f
Staff
Re
lationship
Managemen
t
Mean
Mode
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RATING THE SERVICES OFFEREDBY CANARA BANK
0
1
2
3
4
5
6
ualityof
Servi
e
TimeTaken
Accurar
y
etting
Information
Convenien
e
Complain
andling
ehaviourof
Staff
Relationship
anagement
ean
ode
RATING THE SERVICES OFFERED BY CENTRAL BANK OF
INDIA
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0
1
2
3
4
5
6
ualityof
Servi
e
TimeTaken
Accurary
etting
Information
Convenien
e
Complain
andling
ehaviourof
Staff
Relationship
anagement
ean ode
RATING THE SERVICES OFFERED BY BANK OF MAHARASTRA
0
1
2
3
4
5
6
ualityof
Servi
e
TimeTaken
Accurar
y
etting
Information
Convenien
e
Complain
andling
ehaviourof
Staff
Relationship
anagement
ean
ode
COMPARISON THE SERVICES OFFERED BY PUBLIC SECTOR
BANKS VS PRIVATE SECTOR BANKS
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0
0.51
1.52
2.5
3
3.54
4.5
Qua
lityofS
ervic
e
Tim
eTaken
Accu
rarc
y
Gettin
gIn
form
ation
Con
venie
nce
Com
plainHa
ndling
Beha
viour
ofS
taff
Relation
ship
Man
agem
ent
v t.sec .banks
Pub.sec .banks
1.Quality of service of public sector bank is better than private sector banks
according to
people.
2. Time taken by private sector banks are less than public sector banks.
3. Customers are satisfied with the accuracy from both sector banks.
4.They are getting good information from banks.
5. Public sector banks are more convenient to the people.
6. From complain handling and behaviour of staff customers are satisfied.
COMPARISON THE SERVICES OFFERED BY HDFC BANK LTD
AND STANDARED CHARTER BANK.
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0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Quality
f
rvic
Tim
Taken
Accurarcy
j
etting
Inf
rmation
Convenience
Complain
Handling
Behaviourof
taff
k
elationship
l
anagement
HDFCBAK
STANDREDCHARTERBANK
1. Quality of service of HDFC BANK is better than standard bank.
2. STANDARD CHARTED less time takes at the time of transaction.
3.HDFC BANK provide accurate service than standard bank.
4.Std.charted bank are more convenient from the people.
5.Behaviour of staff std. Charter bank better than HDFCBANK.
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COMPARISON THE SERVICES OFFERED B