HDFC Project Report 1

8/6/2019 HDFC Project Report 1

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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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85

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


86/167

86

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


87/167

87

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


88/167

88

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


89/167

89

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.


90/167

90

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.


91/167

91

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


92/167

92

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


93/167

93

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


94/167

94

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


95/167

95

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


96/167

96

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


97/167

97

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


98/167

98

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


99/167

99

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


100/167

100

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.


101/167

101

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.


102/167

102

COMPARISON THE SERVICES OFFERED B

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HDFC Project Report 1

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