Beruflich Dokumente
Kultur Dokumente
ON
BANKING SERVICES AND INVESTMENT PRODUCTS OF
HDFC BANK
Submitted To:
SOMESH KUMAR
Submitted By
KULDEEP KUMAR
(Roll No. : 6135543)
BBA 6TH SEM.
DECLARATION
I, hereby declare that this project report BANKING SERVICES AND
INVESTMENT PRODUCTS OF HDFC BANK is my own work, to the
best of my knowledge and belief. It contains no material previously published
or written by another person nor material which to a substantial extent has been
accepted for the award of any other degree or diploma of any other institute,
except where due acknowledge has been made in the text.
KULDEEP KUMAR
Roll No. 6135543
Date: __/__/__
CERTIFICATE
The project report of KULDEEP KUMAR, Roll No. 6135543, A Market Research Project
Report on BANKING SERVICES AND INVESTMENT PRODUCTS OF
Internal Examiner
External Examiners
(Mr. _____________)
PREFACE
In this economic for tightening Business nuts and bolt of any company industries or
enterprises it is necessary to measure it market position in a certain time interval with the ever
changing theories and the concept of market. For this assessment we need the robust
methodology of survey. Although survey does not reveal the absolute solution of any
objective, but it provides the inclination towards a good out put.
The preparation of this report provides us great pleasure in releasing our work and market
experience in few pages which shows overall result and experienced knowledge and the
practical approach about the style of a professional and thinks which we found various
affecting to our marketing product image.
I hope that I will get the result that will lie in the neighborhood of exactness.
ACKNOWLEDGEMENT
A successful completion of a project is like a golden feather for any cap. Truly this cannot be
turned without apt guidance and help. One must always be obliged to his guide and helpers.
I would like to thank Mr. SOMESH KUMAR, Faculty of IIMT Greater Noida give me so much
help in completing this project report and other members of the company so much helpful and
familiar with their trainees.
Finally, I am very grateful to these reverent personalities without whom it would not have been
possible for me to put forward this project in present form.
KULDEEP KUMAR
Table of Contents
S. No.
Description
Page No.
Executive Summary
68
69
Literature review
70
Conclusion
88
89
93
EXECUTIVE SUMMARY
It makes me clear about banking sector
This study introduces us about the deposits, the investment products or services offered to the
public by HDFC Bank, and what is the benefit for investing your money? Investment is a sharing
device, so it is crucial to think in a dynamic world where we invest our hard-earned money.
A project is an outcome offer of sincere labor and curious mind. Its worth depends not
necessarily on the status of the maker but on practice and profession. The best and most of topic must
get wasp and web of it, treated woven with lucidity and logical compulsion. Given the level of
treatment there is no essential dichotomy between quality and brevity that together must go into
construction of project.
The company aims to cover a large market area with efficient market infrastructure and though
better services. My project report has been prepared on the topic BANKING SERVICES AND
INVESTMENT PRODUCTS. By studying this concept, we can come to know the actual outcome of
investment. We spend our money to fulfill our regular needs but we neglect our future necessary
requirements, which could be solved through these investments offered to us now a day. Through
small investment regularly, we can fill the well (account) which is surely going to help us and save
from inflation rate as no one can spend a lot at a single point of time in this era. So small investments
are a better idea for everyone with better returns and less lock in period also.
Investment is that sharing device that feed the dear ones of your family when there is any
requirement in your family. Going through this report, one can easily find out the various services
offered by HDFC in the field of deposits to serve the same which are planned and made after
considering, analyzing and concluding the requirements of the people in various situations of life.
The plans are clearly explained and their need is depicted in the followed graphs. I hope this study
will become a good asset for the readers.
INTRODUCTION
Banking Services and Investment products is the title of the RESEARCH. It specifies the
services offered by HDFC Bank. The Project describes about different savings and current account
facility offered by bank and other investment options provided by bank. It helps me to analyze about
the situation of HDFC Bank.
Theprimary objective of HDFC is to enhance residential housing stock in t
h e 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.
e) To grow through diversification by leveraging off the Existing client.
The Organization: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 setu p a bank
in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.
The bank was 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 on 16th January 1995. In the year 1998 HDFC
Bank had tied up with the Ahmadabad Stock Exchange (ASE) to act as its clearing bank
.
9
Business Focus
HDFC Bank's 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 bank's risk appetite. The bank is committed to maintai n the
highest level of ethical standards, professional integrity, corporate governance and
regulatory compliance. HDFC Bank's business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People.
Capital Structure
The authorized capital of HDFC Bank is Rs.450 corer (Rs.4.5 billion). The paid-up
capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and
about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 31.3% of the equity
isheld by Foreign Institutional Investors (FIIs) and the bank has about 190,000shareholders. The
shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's
American Depository Shares are listed on the New York Stock Exchange (NYSE) under
the symbol "HDB
.
Times Bank Amalgamation
In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was
merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation
approved by the shareholders of both banks and the Reserve Bank of India, shareholders of
Times Bank received 1 share of HDFC Bank For every 5.75 shares of Times Bank. The
acquisition added significant value to HDFC Bank in terms of increased branch network,
expanded geographic reach, enhanced customer base, skilled manpower an d the
opportunity to cross-sell and leverage alternative delivery channels.
10
11
Current Account
Fixed Deposit
HSL account
Loans
Debit Card
Insurance product
Wide network of branches and over thousand ATMs to meet all your banking needs no
matter where you are located.
Bank conveniently with facilities like Net Banking and Mobile Banking- check your
account balance, pay utility bills or stop cheque payment, through SMS.
12
Never overspend- Shop using your International Debit Card that reflects the actual
balance in your savings account.
Personalised cheques with your name printed on each cheque leaf for enhanced security
Take advantage of Bill Pay, an instant solution to all your frequent utility bill payments.
Instruct for payment over the phone or through the Internet.
Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your
account.
CURRENT ACCOUNT
At HDFC Bank, we understand that running a business requires time and money. Also since your
business needs are constantly evolving, it requires effective and timely management. Thats where we
step in by providing you with a choice of Current Account options that facilitate seamless
transactions and help you with faster mobilization of funds.
With HDFC Bank Current Account, avail the freedom of multi-location Banking! You can have
the power of multi-location access to your account from our wide network (537branches in 221 cities)
Whats more; you can do all your Banking transactions from the comfort of your office or home, by
using our Direct Banking Channels.
We make it our business, to help you with your business, by offering you a current Account
loaded with all the benefits you need, to stay ahead of your competition
Free inter-city funds transfer across our network up to Rs. 100Lachhs per month
Current Account is ideal for small funds transfer across various cities in the country. While
Trade Account is suitable for small businessmen and Traders.
Features and Benefits
Free inter-city funds transfer across our network up to Rs. 25Lachhs per month
A Trade Current Account requires an average quarterly balance of Rs.40, 000/- only
You can avail benefits of inter-city banking account with Premium Current Account that requires
an average quarterly balance of only Rs. 25,000 offers Payable-At-Par cheque book facility &
FREE inter-city clearing transactions across our network up to Rs.25 Lacks per month
A Current Account with the benefits of accessing your account from a large network of branches,
and through direct access channels the phone, mobile, Internet and through the ATM.
15
One ATM Card Per account (only for individuals / Sole Proprietorships)
o Replacement in case of damaged Cards
o Monthly statement.
24-Hour Phone Banking access (please check for availability in your city)
Note:
As per CBDT Circular ,for cash deposits of Rs. 50,000 or above, PAN number is
Required
All charge mentioned are exclusive of Services tax and Education.
Cash deposits at non-home branch are not allowed.
16
Trade Services
We offer the following Trade Services options which give the flexibility in closing a deal faster
and maintaining goodwill with your business associations
We offer a wide range of export services designed to assist your business. With our strong net
work worldwide, we make your export business hassle free. You can avail the following facilities:
Advance Remittances
Letter of Credit
Avail our Letter of Credit (L/CS) for your business requirements. Our Letter of Credit issued is
valued and accepted worldwide .
Bank Guarantee
We issue Bank Guarantee on your behalf to fulfill your obligations under any business contract
and help your business grow along with a sound relationship with HDFC Bank.
With our Trade Services options you can enjoy advantage like Faster Payments, Competitive
Exchange Rates, Speedy Remittances, Improved Cash Flows and Competitive Charges.
Foreign Exchange Products for your Business Travel Abroad
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Business Banking
Business banking division caters to the financial requirements of small and Medium
entrepreneurs. Whatever be your business, the next-door retail shop or a manufacturing unit, we
would be happy to offer financial solutions with a decision time of just 7 working days.
Working Capital and Term Loans
We at HDFC Bank .understand that expanding and growing your business to the heights of
success is a dream of every entrepreneur .To fulfill this dream, we offer
Cash Credit
Overdrafts (Secured/Unsecured)
Export Finance
Bill Discounting
Terms Loans
FIXED DEPOSITS
Our Fixed Deposits offer flexibility, Security & higher returning a single bundle of investment.
Regular Fixed Deposit
Flexibility in opting period of deposits, maturity and payment instruction, principal amount and
rollover mode
Option of going for single interest/Compound Interest& thus re-investing the principal to
Sweep-in Facility; Link your Fixed Deposits to your Savings Account and use it to fall
Super Saver Facility; Enjoy a high rate of Interest along with the liquidity of a Savings
Account. Avail of an overdraft facility of up to 75% of the value of your Fixed Deposits.
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Tenure:5 Years
Avail of dual benefits in terms of attractive interest rates alongwith tax exemption under
section 80c of the Income Tax Act,1961
Period
7 - 14 days
15 - 29 days
30 - 45 days
46 - 60 days
61 - 90 days
91 - 99 days
Amount
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Interest Rate
(per annum)
**Senior Citizen
Rates (per annum)
Effective From
1.00%
1.50%
3.00%
3.50%
5.50%
6.00%
March 3, 2010
5.50%
6.00%
March 3, 2010
5.50%
6.00%
March 3, 2010
6.00%
6.50%
March 3, 2010
7.50%
8.00%
March 3, 2010
6.00%
6.50%
March 3, 2010
19
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacks
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
Below Rs.15
Lacs
6.75%
7.25%
March 3, 2010
8.00%
8.50%
March 3, 2010
6.75%
7.25%
March 3, 2010
8.00%
8.50%
9.25%
9.75%
8.00%
8.50%
8.25%
8.75%
9.50%
10.00%
8.25%
8.75%
8.25%
8.75%
8.25%
8.75%
20
Interest rates are subject to change from time to time. Applicable interest rates will be
given as on the date of receipt of the funds by the bank. When booking FD through NetBanking
please note the actual interest rate being applied on the "Confirm" screen. This screen appears before
you confirm your request for opening a new FD.
** Only Senior Citizens / Retired Personnel (60 years and above) who are Resident
Indians are eligible. The special rates are applicable only for INR deposits.
*** The FD rate applicable for a monthly interest option will be a discounted rate over
the standard FD Rate. Please contact the nearest Branch for further information.
****For interest rates on Fixed Deposits for Rs. 15 Lacs and above, please contact your nearest
HDFC Bank branch. The base rate applicable for the tenure for which the deposit has been in
force with the Bank
Enjoy a high rate of interest along with the liquidity of a Savings Account by opting for a Super
Saver Facility on your savings account. Avail of an overdraft
It's like two Accounts working in tandem to give you better returns.
Choose between a Savings Account or Current Account to link to your Fixed Deposit.
Pay back with interest only on the drawn amount, while the remaining Fixed Deposit
continues
21
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HDFC
SECURITIES
3-IN-1 ADVANTAGE
ACCOUNT
Get timely recommendations on Equity, Mutual Funds and IPO from our high quality
research team.
Services
The 3-in-1 Advantage Account is well suited for investors who are starting out as well as the
experienced trader. You can trade on both BSE and NSE through the internet or over the pho ne.
Our services include:
23
HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac
Demat Accounts.
HDFC Bank Demat services offers you a secure and convenient way to keep track of your
securities and investments, over a period of time, without the hassle of handling physical documents
that get mutilated or lost in transit.
HDFC BANK is Depository particpant both with -National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL).
24
Pledging of Securities.
Auto credit of Rights / Bonus / Public Issues / Dividend credit through ECS
25
Whatever the occasion, our range of Personal Loans can help. The procedure is simple,
documentation is minimal and approval is quick.
Features & Benefits
If you are an HDFC Bank account holder, we have special rates for you.
If you are an existing Auto Loan customer with a clear repayment of 12 months or more from
any of our approved financiers or us, you can get a hassle free personal loan (without income
documentation).
If you are an existing HDFC Bank Personal Loan customer with a clear repayment of 12 months
or more, we can Top-Up your personal loan.
Credit-Shield
In case of death or total permanent disability of the loanee, the loanee/nominee can avail of the
Payment Protection Insurance (Credit Shield) which insures the principle outstanding on the loan
upto a maximum of the loan amount. Principle outstanding is defined as the amount of loan
outstanding (not including any arrears in payment or interest thereon) at the Date of Loss, having
accounted for payments made and interest accruing as determined in the Policy. Hence, the
amount covered does not include any principal added because of non - payment of EMI and also
will not include interest/ accrued charges.
26
Personal-Accident-Cover
In order to ensure that your family is taken care of we also offer a Personal Accident cover of Rs.
2, 00,000 at a nominal premium.
Premium will be charged for both these products which will be deducted from the loan amount at
the time of disbursal. A transaction fee of Rs.350 will also be deducted at the time of disbursal. Please
note that service tax @ 12.36% will also be charged.
Special privileges
Insurance Cover
Fire &Burglary Cover of Rs .50,000/-for the items purchased under Debit Card
27
Zero Liability: No liability to any fraudulent POS Transactions on Debit Card that takes
place 30 days prior to reporting the card loss, upto Rs.1,00,000/-
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HDFC Bank Easy Shop Woman's Advantage Debit Card is India's first Woman's Debit Card of
its kind. Not only does it replace your ATM card, it also opens a world of privileges that match your
status and lifestyle
Features & Benefits
Cash Back of Re. 1 for every Rs. 200 spent*: For every Rs. 200 that you will spend , you will
receive Re. 1 as cash back .This cash back is valid on all purchases made through the card, at all
times of the year!!!
Specialized Services*: A unique service number will be available for Woman's Debit Card
customers to avail information / booking for the services listed ahead. Just call, quote your card
number and use any of the services. These services are subject to availability and rendered on a best
effort basis
Entertainment assistance :
Movie Tickets
29
Home assistance:
Wellness :
50% discount on locker fee*: You will be entitled to a 50% discount on locker fee for the 1st
year. This waiver would be applicable for only one locker per card. In order to avail of the discount,
please show your Woman's Advantage Debit Card at the branch.
Special discount on purchase of Gold Bars*: Preferential pricing will be given to you on
purchase of Gold Bars. In order to avail of the special discount, pleas show your Woman's Advantage
Debit Card at the branch.
Insurance cover: You will be entitled to Personal Accident insurance cover of 2 lacs.
Zero Liability: You will not have any liability to any fraudulent Point of Sale transactions on
the debit card, which take place up to 30 days prior to reporting the card loss.
Free Bill Pay: You will not be charged for Bill Pay Service, normally chargeable at Rs. 100 p.a.
Daily Limits: Rs. 15000 at ATMs for Withdrawal and Rs. 25000 at merchant establishments for
shopping.
30
The best features you could ask for in a credit card. Combined with all the services offered by a
world-class bank. Get all with the HDFC Bank International Silver Credit Card.
Spending money was never so rewarding!
31
It's overloaded with travel benefits discounts, cashback offers, air miles redemption.
Get an HDFC Bank International Gold Card and get introduced to a whole new world of privileges.
Features & Benefits
5% Cash back on domestic air transactions above Rs.10,000 through domestic airline
websites
32
Insurance benefits
W.e.f. 1 June 2007, all other complimentary insurance covers will be withdrawn
Greater reward points
Earn 2 reward points per Rs 150 spent on the Gold Credit Card and redeem them against air
miles across leading airlines. The air and train transactions earning cash back will not be eligible for
reward points.
Rewards points redemption
After earning all those reward points on your HDFC Bank Gold Credit Card, redeem them for
exciting gifts and services! You could even convert them to airline miles with India's leading
airlines through the My Rewards programmed
Worldwide acceptance
Accepted at over 23 million Merchant Establishments around the world, including 110,000
Merchant Establishments in India.
33
Are you a frequent flyer for business or often holiday abroad? Are you an importer/exporter of
foreign and Indian goods?
If you need to deal in foreign currency and keep tabs on exchange rates every now and then,
transfer monies to India, make payments etc., HDFC Bank has a range of products and services that
you can choose from to transact smoothly, efficiently and in a timely manner.
We offer the following Foreign Exchange Products and Services.
Foreign Exchange and Trade Services
The following are different methods of transacting in Foreign Exchange and remitting money.
34
Travelers Cheques
Foreign Currency Cash
Foreign Currency Drafts
Cheque Deposits
Remittances
Cash to Master
Trade Services
Forex Services Branch Locator
Important guidelines and schedules
All Foreign Exchange transactions are conducted by strictly adhering to RBI guidelines.
Depending on the nature of your transaction or point of travel, you will need to understand your
Foreign Exchange limits.
RBI Guidelines
Forex Limit
Non HDFC Bank Ac
KIDS ADVANTAGE ACCOUNT
Who can Apply?
The parents/ guardian * must have a savings Account with us . if not, he/she needs to
open a new Savings Account
Natural guardian only . Legal guardian would be permitted to open accounts under this
product only on an exceptional basis.
Investment tie ups with Mutual Funds for the secured future of child
FD of Rs. 10,000/- in the name of the child with a Zero Balance savings Account,
mandatory at the time of account opening
In case FD balance falls below Rs. 10,000/- then AQB of Rs.5,000/- to be maintained
Allows parents to walk in to select branches of HDFC Bank to deposit the fee .
Daily report of the fee collection is sent to the school by CMS Team through an email.
The Institute /School can avail of Trust Account benefits by opening a Trust Account.
The Institute account can be Trust Account or normal Savings Account . The AQB requirement
will be as per the product availed .
Average Quarterly Balance (AQB) Non maintenance charges
Non maintenance charges for the required AQB will be as per the product availed.
36
37
Phone Banking
Avail the convenience of operating the Bank Account from the comfort of home ,
without even vesting the branch.
Balance enquiry
38
Net Banking
Your account is where you are!
HDFC Banks Net Banking is secure. It uses industry standard technologies &
infrastructures, thus ensuring the safety & security of the transactions.
Pay Bills
Order for a cheque book, request stop payment on a cheque and lots more!
Mobile Banking
Access the Bank Account with HDFC Banks unique Mobile Banking Service.
-Mobile Banking works through asset of text messages (SMS) without even making a call.
-All one needs to do is to type in the specified code for the
-Transactions as a text message and spend it to 676712
HDFC Banks Mobile Banking service provides a host of features at your finger-tips through
SMS:
Get the balance details.
Obtain last 3 transactions details
Request for a cheque book
Stop a cheque payment
Enquire cheque status
Request an account statement
39
CONVENIENCE BANKING
Bill Pay
No need to stand in long queues and wast time and effort for paying bills through Utility
companys counters.
Register for Bill Pay and pay Utility Bills through ATM/Net Banking /Phone
Banking/Mobile Banking.
-Register online on HDFC Bank website or by submitting the BillPay registration from
the branch.
Insta Alert
Be updated on your accounts while on the move. Receive alerts for transactions in your account.
Debit transactions greater than Rs. 5,000/- ,Rs.10,000/-, Rs. 20,000/-, Rs.50,000/-
Credit in account greater than Rs.5,000/- , Rs. 10,000/- ,Rs. 20,000/- ,Rs. 50,000/-
Account Balance below Rs.5,000/- , Rs. 10,000/- ,Rs. 20,000/- ,Rs. 50,000/-
Register online through Net Banking or by submitting the Insta Alert registration form at
the branch.
Features&
benefits
Kids
Savings
Savings
Advantage A/C
Regular Plus
Plus A/C
A/C
AQB
5,000/-
5,000/-
10,000/-
25,000/-
10,000/-
50,000/-
50,000/-
1,00,000/-
Requirement(Rs.)
FD Requirement
40
Free Maestro
100/-
Card
Debit Card (for then
p.a. (Rs.)
kid )
Womens
Free(for
all applicants)
applicants)
150/-
150/-
Advantage Debit
applicants)
500/-
500/-
Free Account
Quarterly
Quarterly
Quarterly
Monthly
Free usage
Free usage up
Statement
PAP (Free
Issuance)
up to
Rs.50,000/per month.
Above
Rs.50,000/-
month. Above
Above
Rs.1,00,000/- Charge
Rs.50,000/-
of Rs.2.90 per
Charge of
Rs.2.90 per
Rs.2.90 per
thousands for
thousands for
the entire
the entire
amount
entire amount
amount
Free DD/MC (at
home branch)
Free upto
Free upto
Rs.25,000/- per
Rs.50,000/- per
Bank locations
locations
Free
3 per month
41
2 per month
Unlimited
transactions on
SBI/Andhra Bank
ATMs
Free
3 per month
Unlimited
Rs.100/-
Rs.100/-
Free
Free
InstaAlert
Free
Free
Free
Free
Phone Banking,
Free
Free
Free
Free
25% discount
50% discount
Balance in
transactions on
other Bank
ATMs
Bill Pay Charges
p.a.
Net Banking,
Mobile Banking&
NEFT
Waiver on
Locker Rental
Education
Free
Insurance
Education
Insurance of
Rs.
1,00,000/- in
the event of
death by
accident of the
parent/ guardian
Sweep out
When the
excess of
Kids A/C
Rs.50,000/- is
reaches
Rs.10,000/-
an FD with a
the amount
min. value of
42
in excess of
Rs.25,000/- for a
Rs.5,000/- is
period of 1 year
and 1day
an FD for
a period of 1
year and 1day
COMPRATIVE CHART
15. Arms License issued by the State / Central Government of India authority which contains
photograph of the applicants.
16. Photo ID Card with photograph (issued by J&K & Goa State Government).*
17. Photo Social Security Card issued by Central /State Government /Union territories
18. Pension Payment Card issued by State / Card Government of India with Photograph of
applicant.
19. IRIS scanned household card with photograph (issued by Andhra Pradesh Government).
the letterhead, which carries the societys registration number. The letter should
carry the applicants name & full address as well as the signatories full name ,
designation (Secretary, President ) and address (Maintenance charges receipt
issued by the society NOT acceptable .
Gas charges paid receipt not acceptable .
ID Card issued by the State Government of J&K is acceptable if they carry the
connotation-government of Jammu &Kashmir , Civil Secretariat, Srinagar/
Jammu
Mutual funds are funds that pool the money of several investors to invest in equity or debt
markets. Mutual Funds could be Equity funds, Debt funds or balanced funds.
Funds are selected on quantitative parameters like volatility, FAMA Model, risk adjusted returns,
rolling return coupled with a qualitative analysis of fund performance and investment styles through
regular interactions / due diligence processes with fund managers.
based on your needs, possibilities and expectations. Your investment profile will help you choose the
type of investments that suits you the best.
TYPES OF MUTUAL FUND
Open ended Fund/ Scheme:
An open-ended fund or scheme is one that is available for subscription and repurchase on a
continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. They
key feature of open-end scheme is liquidity.
Professional Management - The primary advantage of funds (at least theoretically) is the
professional management of your money. Investors purchase funds because they do not have the time
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or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way for a
small investor to get a full-time manager to make and monitor investments.
Diversification - By owning shares in a mutual fund instead of owning individual stocks or
bonds, your risk is spread out. The idea behind diversification is to invest in a large number of a~sets
so that a loss in any particular investment is minimized by gains in others. In other words, the more
stocks and bonds you own, the less anyone of them can hurt you (think about Enron). Large mutual
funds typically own hundreds of different stocks in many different industries. It wouldn't be possible
for an investor to build this kind of a portfolio with a small amount of money.
Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a
time, its transaction costs are lower than you as an individual would pay.
Liquidity - Just like an individual stock, a mutual fund allows you to request that your
shares be converted into cash at any time.
Simplicity - Buying a mutual fund is easy! Pretty well any bank has its own line of mutual
funds, and the minimum investment is small. Most companies also have automatic purchase plans
whereby as little as $100 can be invested on a monthly basis.
DISADVANTAGES OF MUTUAL
FUNDS :
Professional Management- Talk about this in details in a later section .Did you notice how we
qualified the advantage of professional management with the world theoretically ? Many investors
debate over whether or not the so-called professionals are any better than you or I at picking stocks.
Management is by no means infallible, and an even if the fund loses money, the manager still takes
his/her cut.
Costs- Mutual funds dont exist solely to make your life easier all funds are in it for a profit
.The mutual fund industry is masterful at burying costs under layers of jargon. These costs are so
complicated t5hat in this tutorial we have devoted an entire section to the subject.
Dilution- Its possible to have too much diversification (this is explained in our article entitled
Are You Over Diversified?). Because funds have small holdings in so many different companies ,
high returns from a few investment s often dont make much difference on the overall return .
46
Dilution is also the result of a successful fund getting too big. When money pours into funds that have
had strong success, the manager often has trouble finding a good investment for all the new money.
Taxes When making decisions about your money, fund managers dont consider your personal
tax situation, For example , when a fund manager sells a security ,a capital gain tax ix triggered,
which affects how profitable the individual is from the sale . It might have been more advantageous
for the individual to defer the capital gains liability.
47
Debt:
48
A Systematic Investment Plan (SIP) is an option that allows you to invest a fixed sum at
periodic intervals on specific dates.
This involves making investment of fixed sums of money, in a particular scheme, at
predetermined periodical intervals of time. For instance, you could invest Rs .l 000 every month into
a particular scheme. Some investor find it difficult to decide when to invest a lump sum amount for
fear that they will invest when the NA V s are high. As this technique delivers the lowest average
cost per unit, it is ideal for such investors. It is also beneficial for investors who wish to invest small
amounts at regular intervals.
Why SIP?
A Systematic Investment Plan works for you in three ways:
It helps you to save regularly and thus inculcates a sense of discipline.
It harnesses the power of Compounding.
It is the best possible way you to reign in impulsive buys-and-sells that otherwise one is
gripped by in times of market volatility. - Rupee cost averaging.
Power of compounding:
In reality, further the need deeper is the urge to postpone. But the fact is the longer you leave
your money invested, the faster it will grow. When your returns begin to earn money and those
returns start to earn ... small amounts of money can snowball very quickly. Compounding being
the tool that allows you to make the most of small amounts invested for long periods
To find out how you can harness compounding, have a go at this Cost of Delay calculator.
It tells you how much more you need to save each month for each year of delay.
Rupee cost averaging
A now familiar concept, it tells you how effective disciplined investing on specific dates is, as
compared to lump sum investing on random dates.
49
NAV
Units
invested
Cum.
Cum.
units
amount
Value
investment
1000
10
100.00
100
1000
1000
1000
111.11
211
2000
1900
1000
10
100.00
311
3000
3111
1000
11
90.909
402
4000
4422
1000
12
83.333
485
5000
5824
1000
13
76.923
562
6000
7310
1000
17
58.824
621
7000
10559
1000
14
71.429
693
8000
9695
1000
11
90.909
783
9000
8618
1000
10
100.00
883
10000
8834
1000
12
83.333
967
11000
11601
1000
15
66.667
1033
12000
15502
Total amount = Rs.12000, Total units = 1033 Average cost per unit =
Rs.120000/l033 = Rs.11.60 Average price per unit = Rs.12
50
of
The HDFC Childrens Plan is designed to secure your childs future by giving your child (the
beneficiary) a guaranteed lumps um, on maturity or in case of your unfortunate demise, early in the
policy term. The premiums paid by you are invested by the company to give you good long term
returns. The plan receives the simple Reversionary Bonuses, which are usually added annually. At the
end of the term an additional Terminal Bonus may be paid depending on the performance of the
underlying investment.
51
STEP 1
STEP 2
STEP 3
Estimate the money, which might require for child at any one of the milestones in his or her
future.
Choose the amount of targeted savings and policy term using the Financial Planning Tool
Plan Option
Death Benefit
Maturity Benefit
Double
Benefit Plan
53
Age of Parent
Accelerated Benefit
(Yrs.)
(Rs.)
(Rs.)
Plan (Rs.)
30
23,575
22,690
24,085
35
24,045
22,820
24,790
40
24,890
23,055
26,005
You also have a range of convenient auto premium payment options. For more details, you can
speak to your Financial Consultant or contact your nearest branch.
ELIGIBILITY
The age and term limits for the insured parent for taking out the HDFC Childrens Plan are as
shown below :
Term Period (Yrs.)
Minimum
10
Maximum
25
Maximum age at
Maximum
Maturity (Yrs.)
60
75
18
BONUSES
The Reversionary Bonus is usually declared annually as a percentage of the basic Sum Assured
of your policy. Once added to a policy, the bonus is guaranteed to be payable either on death or
maturity (as described in STEP 2 : Plan Options). The Reversionary Bonus is declared keeping in
mind a long term view of investment returns, expenses, mortality and other experiences.
54
The Terminal Bonus is sometimes added to a policy on maturity and allows us to pay your fair
share of the With Profits fund, based on the experience over your policy term.
BENEFICIARIES
The beneficiary(your child) is the sole person to receive the befit under the policy. Where the
beneficiary is less than 18 years of age, the benefit will be paid to the Appointee.
TAX BENEFITS (Based on current tax laws)
You will be eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax
Act, 1961.
Under Section 80C, you can save up to Rs.33,660 from your tax each year (calculated on the
highest tax bracket) as premiums up to Rs.1,00,000 are allowed as a deduction from your taxable
income.
Under Section 10(10D), the benefits received from this policy are completely tax free.
The HDFC Childrens Plan is designed to provide your child with the maximum possible
value over the longer term and the product features support this aim. However, we realize tat early
surrender is sometimes necessary. If you have paid premiums continuously for 3 years, then the
contract acquires a guaranteed minimum surrender value.
The guaranteed minimum surrender value is 50% of all premiums paid subsequent to the first
year, excluding any extra premium paid for increased mortality risk.
If the investment conditions allow, then we may pay a significantly higher discretionary
surrender value over the minimum guaranteed surrender value after the 3 years regular premium has
been paid.
55
BENEFITS AND
FEATURES
DESCRIPTION
Options
Life Option
ACI Cover
Minimum Term
10
10
Maximum Term
25
25
Maximum
Maturity Age
75
65
Minimum Age at
Entry
18
18
Maximum Age at
Entry
65
55
Life Assured
Minimum Sum
Assured
Maximum Sum
Assured
Valuable protection to your family by way of lump sum payment in case of your
unfortunate demise within policy term
Lump sum payment (basic Sum Assured plus any bonus additions) on survival up to
maturity date
In case of your unfortunate demise during the policy term, this participating ('With
Profits') insurance plan will pay your family the Sum Assured (together with the attached
bonuses) you had chosen.
The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of
the term an additional Terminal Bonus may be paid depending on the performance of the underlying
investment
57
Choose the amount of targeted savings and policy term using our Financial Planning
Tool
Step 2
Choose from any one of the 4 additional benefit options as per your requirement
Step 3
Work out the premium payable and Sum Assured with our Financial Consultant
58
LONG-TERM GOALS
Buying a car
Illness or disability
Saving for big-ticket assets like your house
Vacation abroad
59
A proportion of the basic Sum Assured as Cash lump sums at regular 5-year intervals
within the policy term (see the table given below) an ideal way to secure your long- term
as well as short-term financial goals.
Valuable protection to your family by way of lump sum payment in case of your
unfortunate death within the policy term. This is over and above any earlier payouts.
Maturity Value
On maturity you receive survival benefit due at that point of time along with attaching bonuses
for the full Sum Assured calculated for the full term.
You can ensure your financial independence. And be able to live life on your own terms.
3 EASY STEPS TO YOUR OWN PLAN
Step 1
Choose the amount of targeted savings and policy term using our Financial Planning
Tool
Step 2
Choose from any one of the 4 additional optional benefits as per your requirement
Step 3
Work out the premium payable and Sum Assured with our Financial Consultant
60
61
As we know research inculcates scientific and inductive thinking and it promotes the
development of logical habit of thinking and organization.
The role of research in several fields of applied economies, whether related to business or to the
economy as a whole, has greatly increased in modern times. A Research Project is a medium to
search optimum solution to the part of a major existing problem. Often it is done for anticipating the
future. In business scenario a research is a crucial part of management functioning
62
LITERATURE REVIEW
This research is done through institute, industry survey under the title Banking Services and
Investment Products
For preparing this project we went to many organizations institutional organizations of Delhi
.We collected information of customers consuming various services provided by HDFC Bank Delhi.
We have NCE used document of the HDFC Bank and others departmental document to find out
information about services which are provided by HDFC Bank. We have also used information from
internet. How to made questionnaire this is done by reading the various books i.e. Research
Methodology-R.C. Kothari, Market Research-Mehrotra etc. we discussed with our guide Mr. A.K.
Jain, and then we started Research.
We went to the different government offices and corporate offices and observe the following
things--1.
Whether our product is available or not at that company & organizations institutional.
2.
3.
4.
We check the response of customer about the services which are used by organization using the
questioner.
We check the various options Investment options used by public
What is the awareness of Banking service in general public.
. After all it becomes possible to make a meaningful and useful project report.
63
64
65
60
50
40
30
20
10
0
YES
NO
CAN'T SAY
On the question of satisfaction from the banker 58% responded Yes and 40% says
No and about 2% were confused on the question.
66
50
40
30
20
10
0
Convenience
Banking Hours Services
Less AQB
28% people want convenience and 7% Banking Hours 22% need services and about
43% desires a less AQB while opening an account.
67
BANK PREFERENCES
HDFC
ICICI
KOTAK
IDBI
ING VYSYA
OTHERS
0
10
15
20
25
30
28% Of the respondents likes to deal with HDFC, 22% like to have there
a/c in ICICI, 17% preferred KOTAK, 14% wants IDBI, 9% ING, and 10%
preferred other private banks.
68
50
45
40
35
30
Proximity
25
Working Time
20
Services
Min. Bal.
15
10
5
0
18-25
26-35
36-45
>46
Here is the choice of different age groups on the question of services preferred for the
purpose of opening an account. All data is in % age.
69
ANSWERS OF QUESTIONS
1.
CANT
NO
SY
99
51
150
33%
50%
Yes
No
CANT SAYl
17%
INTERPRETATION:
In the survey the total no of customers are 150. In which the HDFC bank customers are
100 and other bank customers are 50.the customers there full cooperation in seeking
feedback and the necessary information.
70
2.
45
Very good
50
Good
65
Average
90
Below average
50
Sales
BELOW
EXCELLENT,
AVERAGE, 50,
45, 15%
17%
EXCELLENT
VERY GOOD
VERY GOOD,
50, 16%
GOOD, 65, 22%
GOOD
AVERAGE
BELOW AVERAGE
INTERPRETATION:
15% respondent say it is excellent162% says very good,and 22% says good and maximum
30% says average and 17% says below average.
71
3.
You would like more information to be sent on which of the following products.
4%
13%
Kids a/c
DMAT
FD
15%
5%
16%
Loans
Gold bar
20%
Forex card
INTERPRETATION:
The large percentage is about De-Mat, Kids A/c, Loans. This shows that there is need
of throwing information on De-Mat, Loans, Kids A/c, Forex and Gold bar
72
30
Very good
210
Good
30
Average
24
Below average
8%
2%
10%
10%
Excellent
very good
good
average
below average
70%
INTERPRETATION:
The behavior of the staff is rated very good rated by 70% of the customers but there is
need of more improvement.
73
5-Are you aware that HDFC bank has more than 1160 branches?
Yes
No
69
231
Column1
YES
NO
INTERPRETATION:
At this question the 231 customers are unknown about the no. of branches.
This shows that there is need of providing information on to the customers.
74
29%
yes
no
71%
75
INTERPRETATION:
71% customers are not satisfied with the no. of the ATMs.
This proves the need of increasing the no. of ATMs.
76
7. How do you give POINTS (Out of 50) the private banks as per the services and
features being offered to you?
HDFC BANK
30
ICICI BANK
32
AXIS BANK
27
ING VYASA
OTHERS
Sales
HDFC BANK
ICICI BANK
AXIS BANK
OTHERS
INTERPRETATION:
Almost all the three banks stood near each other HDFC 30%, ICICI at 32% that is
almost equal. For the purpose of this research it was absolutely imperative for me to find out
what the customers want from their banks. It was also necessary to find out the customers
profile, i.e. age, gender, monthly income, occupation and also the current bank with whom
he / she is banking. This required me to get a detailed questionnaire filled by the concerned
person.
A detailed area wise analysis was also carried out to find out which bank was most
prevalent in a particular area.
This research will provide HDFC bank with information like customers needs, wants, and
also the customers behavior.
77
B)-ADVERTISMENT
C)-BANK EMPLOYEE
D)-PROSPECTUS
INFLUENCED FACTOR
PROSPECT
US
11%
BANK
EMPLOYEE
12%
FRIENDS /
RELATIVE
44%
ADVERTISE
MENT
33%
FRIENDS /
RELATIVE
ADVERTISEMENT
BANK EMPLOYEE
PROSPECTUS
INTERPRETATION:
It has been said a satisfied customer is the best medium for an advertisement since in this chart
friend / relative have played a key role in opening the accounts of others. Which implies that
banks real customers are satisfied enough with facilities available on the products and services
enjoyed by them. On the other hand advertisement also plays a vital role in influencing the
customer. As their behavior not only please the customer but also attract the customer. Well
maintained prospectus is also a major attributes of attracting the customer. Main focus of the
bank should be no satisfaction of customer.
78
9-
61%
No
22%
Will think
17%
17%
22%
Yes
61%
No
Will think
INTERPRETATION
The good thing is that at least the corporate were quite eager to find out what ICICI PRU has to
offer whereas the major 39 % of the corporate were not even interested in the products as they
are quite satisfied by the LIC and they are not in breaking their long relationship with them. The
private players will have to play a long battle in order to ensure that they are serious player in the
market.
79
10.
90%
80%
70%
customer satisfaction
60%
50%
profit
40%
30%
other factors
20%
10%
0%
INTERPRETATION:
78 percent of those who rated customer satisfaction as their first preference had rated bank
reputation as their second preference. Therefore, this factor may also be taken into consideration
though could not be made clear due to certain methodological errors (that is humbly accepted).
80
STRENGTH
WEAKNESS
OPPURTUNITY
THREATS
Distinguishable product
Aggressive marketing by
competitors
81
CONCLUSIONS:
As per the finding and analysis of my project and study of HDFC Bank with other
banks, I reached to the conclusions regarding the saving account and current account in
different banks. First among them is that there is wide difference between the minimum
balance required to open the accounts in various banks and when a customer thinks to open
a account the first thing that he inquires is the minimum balance which is in financial terms
the Average quarterly balance [AQB] which has to be maintained quarterly. All the banks
like HDFC, ICICI, and Kotak Mahindra have minimum AQB of 5,000 in savings account
and 10,000 in current accounts i.e. there target market is elite class. Also I have observed
that almost all the banks are providing ATM cum Debit card along with accounts and some
of the banks giving free ATM transaction from any of the ATM. Some of the banks are
giving free balance inquiry and some 8 TO 8 banking.
Internet banking and mobile banking are yet other modern features which customers get
on opening an account. Some banks give some value added services like Utility payment,
Doorstep Banking and free third party cash payment, RTGS. Banks like HDFC and ICICI
have intercity banking and inter branch banking.
Banks are also providing loyalty services to the loyal customers like on every on every
ATM transaction of more than a certain limit a customer gets some points and on
accumulation of 25 or 50 points a customer gets a special gift. Some banks are also giving
free of cost Credit cards to their customers.
82
RECOMMENDATIONS:
The bank should try to improve the ATM services, as it is one of the major
reasons for dissatisfaction among the customers as majority of those who were
dissatisfied were on account of non availability of cash in ATMs.
The bank should increase number of BRANCHES in the city as people feel that
the bank has very few BRANCHES in the city.
The bank needs to make people aware about the basic concept of accounts and
the benefits they can derive out of it and also the differential features of its
different account as compared to other banks. More than 65% of the people did
not even know about the concept and features of differential accounts of the
bank.
Also it was found in my analysis that the customers dont really mind keeping a
high balance in their account and the bank should tap this fact by keeping a
higher AQB and reduce the charges of different services which customers
have a problem paying for. Only about 10% of the customers considered it to
be an important issue for deciding on their Banking preferences.
It was also found in my analysis that people want free of cost doorstep services
since HDFC is having merely 2 branches in the city.
The bank should target individuals in the age group of 25+ for whom
maintenance of AQB is not a problem.
The customer satisfaction level are quite satisfactory in HDFC Bank, so banks
must concentrate on customers first.
graduates from
Though the bank offers many free services but the customers still do not trust
the services, so banks must popularize these services to gain an edge over
nationalized banks.
Quality of services has been rated highly important by all demographic factors
as a reason for banking with a particular bank, HDFC Bank needs to improve
83
the services provided to its existing customers before attracting more in future
and use word of mouth as a promotional tool to increase the sales potential of its
products.
84
QUESTIONNAIRE
This questionnaire is prepared for the purpose of collecting the information about the
customers behavior and preferences regarding Banking services
1.
2.
Name :Address :-
3.
4.
5.
b)-No
c)-Cant
b)-Very good
c)-Good
d)-Average
e)-below average
3-You would like more information to be sent on which of the following products
a)-Normal saving a/c
c)-kids a/c
d)-DMAT a/c
e)-FD
f)-loans
g)-gold bar
h)-forex card
b)-Very good
c)-Good
d)-Average
e)-below average
5-Are you aware that HDFC bank has more than 1160 branches?
a)-Yes
b)-No
85
b)-No
7. How do you give POINTS (Out of 50) the private banks as per the services and
features being offered to you?
a)-HDFC Bank
c)-AXIS Bank
b)-ICICI Bank
d)-Other
8-Which factor among the following influenced you must to open an account in HDFC BANK ?
A)-Friends/Relatives
B)-Advertisement
C)-Bank employees
D)-Prospectus
61%
No
22%
Will think
17%
PLACE:
DATE:
(SIGNATURE)
86
BIBLIOGRAPHY
www.hdfcbank.com
www.google.com
www.wikipedia.com
www.idbi.com
www.icici.com
87