Project on HDfC Life Insurance

HDFC STANDARD LIFE INSURANCE, KANPUR

1


INTRODUCTION OF THE COMPANY

There are three majors that are very different in perspective and career

opportunities: Finance, Marketing, and Supply Chain Management.

Finance develops skills and knowledge necessary for the management of

money. It is concerned with the process, institutions, markets, and instruments

involved in the transfer of money among and between individuals, business, and

government. This all takes place in a world which is changing in a variety of

different directions, and the finance major will learn how to make sound decisions

in this constantly shifting environment. It will learn from techniques such as

computer simulation, case studies, and field trips. It may learn from

representatives of corporations and government agencies who visit as guest

speakers. Required study areas for the finance major include financial

institutions, financial management, investment policy, insurance/risk

management, and real estate. Additional studies may be taken in such courses

as bank management, advanced financial management, security and portfolio

analysis, personal and commercial lines of insurance, and real estate financing.

Finance majors have excellent prospects for employment in financial institutions,

brokerage or investment operations, and corporations or government agencies.

Marketing is the activity of developing products and services to satisfy

customers’ needs and then making them available at the right places, at the right

times, and at competitive prices. Changes in social and economic systems have

created new challenges for marketing professionals. Increasingly, they must

2


focus on both domestic and global opportunities in-step with ever evolving

technologies. They must also be continually responsive to cultural differences

and ethical issues. The WIU marketing degree offers students a broad-based

education in a variety of marketing specialties including integrated marketing

communications, retail management, and sales management. When combined

with the capstone course in marketing management, You can qualified to

assume a variety of careers including personal selling (for consumer and

industrial products), advertising management, marketing research, retailing

management, and public relations.

BUSINESS

HDFC's offerings range from home loans and deposit products, to

property related services and a training facility. The company offers specialised

financial services through partnerships with international financial institutions.

HDFC also provides consultancy services to individuals and institutions on

housing finance, urban development and capital markets.

BRANDS

HDFC Bank, HDFC Mutual Fund, HDFC Standard Life Insurance

Company, HDFC Realty, HDFC Chubb General Insurance Company, Intelenet

Global Services Ltd and Credit Information Bureau (India) Ltd, are the different

brands promoted by HDFC.

PARTNERSHIP

In 2006 W L Ross and HDFC teamed up to invest in Indian corporate

turnarounds.

3


In 2005 HDFC and Barclays signed a long term BPO contract. Each of two

partners hold a 50 per cent stake in Intelenet.

In 2002, HDFC formed a joint venture with Chubb Corporation, USA to

promote HDFC-Chubb General Insurance Company Ltd. for non-life

insurance.

HDFC, State Bank of India, Dun & Bradstreet and Trans Union

International Inc. have jointly promoted Credit Information Bureau (India)

Ltd. (CIBIL).

HDFC has tied up with the Mahindra & Mahindra group to promote

propertymartindia.com, a website to provide a range of real estate

services.

LOCATION

HDFC has its head office in Mumbai and a network of offices all over the

world.

LOGO OF HDFC GROUP COMPANIES

4

http://www.hdfc.com/

http://www.hdfcbank.com/

http://www.hdfcfund.com/

http://www.hdfcsec.com/

http://www.hdfcrealty.com/

http://www.hdfcgi.com/


Brief History of the Organization:

1996

- The Bank was Incorporated on 30th August. A new private sector Bank

promoted by housing Development Corporation Ltd. (HDFC), a premier housing

finance company. The bank is the first of its kind to receive an in-principle

approval from the RBI for establishment of a bank in the private sector.

Certificate of Commencement of Business was received on 10th October 1994

from RBI.

- The Bank transacts both traditional commercial banking as well as investment

banking. HDFC, the promoter of the bank has entered into an agreement with

National West minister Bank Pc. and its subsidiaries (Nat west Group) for

subscribing 20% of the banks issued capital and providing technical assistance in

relation to the banks proposed banking business.

1997

- 70 No. of equity shares issued to subscribers to the Memorandum & Articles of

Association on 30th August 1994. On the same date 500,00,000 equity shares

were allotted to HDFC promoters. 509,20,000 shares were allotted to HDFC

Employees Welfare Trust and HDFC Life Insurance Employees Welfare Trust on

22nd December, 1994.

- On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarrington Pet.

Ltd. Another 400,00,000 equity shares were allotted on private placement basis

to Natwest Group on 9.5.1995. 500,00,000 shares were allotted to the public on

9.5.95 (all were taken up).

5


- The Bank opened its first branch in Ramon House at Churchgate, Mumbai on

January 16th.

- The Bank has created an efficient operating system using well tested state-of-

the-art software.

1998

- HDFC Life Insurance has entered the banking consortia of over 50 corporate,

including some leading multinational companies, flagship companies of local

business houses and strong public sector companies.

- HDFC Life Insurance has set up a state-of-the-art dealing room to handle all

transactions possible in Indian financial markets.

- The Certificates of Deposits were awarded a PP1+ rating which is the highest

rating for short term instruments indicating superior capacity for repayment.

1999

- The bank is one of the largest mobilizes of retail deposits through its network

of 20 branches. Its credit deposits ratio was 53.8%.

- The bank has set up a ultra-modern hub at Powai in Mumbai where the bank's

central computer is housed. This hub housed in 35,000 square feet of space,

houses data of all the branches and facilitates the introduction of new products

and services.

- HDFC has installed state-of-the-art systems to facilitate inter-connectivity

between branches and link up with on line system.

6


- The bank has also recently signed up as a depository participant, under the

newly set up NSDL, wherein the members clearing accounts settlement for

dematerialised shares can be done through the bank.

- HDFC Bank, one of the nine new-generation private sector banks, has

planned to set up an all-India on-line automated teller machine (ATM) network.

- HDFC Life Insurance proposed to launch tele-banking for the first time in June

in Mumbai at its Chandiveli branch.

- HDFC Life Insurance has drawn up plans to become a niche player in

corporate banking by sticking to top-rung corporates.

- HDFC Life Insurance has become the first private sector bank to conclude a

structured interest rate option deal.

- HDFC Life Insurance has launched its Versova branch, the 11th branch in

Mumbai.

- HDFC Bank, as part of its expansion plans in the South, has opened another

branch in Chennai.

- HDFC Life Insurancehas entered into strategic alliances with 10 overseas

banks to provide customers with a wide range of derivatives including interest

rate and foreign currency swaps.

- HDFC Life Insurance on October 14 introduced ATMs that converse in a

regional language.

- HDFC Life Insurance has introduced the Freedom Account for the average

retail customer located in the major metros as a means to wean away the middle-

income market from nationalised banks.

7


- HDFC Life Insurance has launched an account in all its 28 branches across

India that seeks to free depositors from minimum balance requirement, for the

first time in the country.

- HDFC has introduced a new loan product for the payment of

betterment fees announced by the Bangalore Mahanagar Palike.

- HDFC Life Insurance is all set to launch its debit card by April 1998.

2000

- HDFC Life Insurance has tied up with the Ahmedabad Stock Exchange (ASE)

to act as its clearing bank.

- HDFC Life Insurance proposes to strengthen its branch network in Calcutta

with the addition of two new branches in the first quarter of the next fiscal.

- HDFC Life Insurance has signed an agreement with the National Stock

Exchange (NSE) which will give it a second charge over the brokers deposit for

providing loan against share facility to NSE brokers.

- The bank has also entered into a similar understanding with the Bombay Stock

Exchange (BSE) whereby the bourse will provide support for recovery of money

against the card for loan against share facility.

- The bank has also entered into `Cirrus' arrangements by which all master card

holders across the globe will be able to transact at HDFC Life Insurance in India.

- The bank will also provide phone-banking facility in Bangalore. HDFC has tied

up with Visa International to offer its Debit Card.

- HDFC Life Insurance Ltd has entered into a memorandum of understanding for

a strategic business collaboration with Chase Manhattan Bank.

8


- HDFC Life Insurance has become the first bank in India to link up its

automated teller machine (ATM) network with all the three major payment

systems world-wide.

- HDFC Life Insurance will be the first bank in the Asia-Pacific region to connect

the American Express (Amex) payment system.

- The HDFC Life Insurance is expanding its ATM network to connect to

American Express Interchange based in Phoenix, Arizona, USA. With this

connectivity, HDFC Life Insurance has become the first bank in the Asia-pacific

region to connect to the Amex Interchange.

- HDFC Life Insurance was the first to sign up with AMEX in December of 1998.

- The Bank has tied up with ITC Thread needle Mutual Fund to provide its

investors with the High Interest Fund (HIF), a facility to en cash their units

through the bank's Automated Teller Machines in addition to a cheque book

facility also to be provided by the bank.

- Sony India Ltd (SIL) has joined hands with HDFC Life Insurance to work out an

innovative car finance package under which a sony car audio system would be

installed to a new car for no additional upfront cash outflow.

- The bank has decided to issue 1,33,10,000 equity shares of Rs. 10 each to

HDFC and a wholly-owned subsidiary of it at a price of Rs. 94 per share.

- The bank will also issue 13,70,000 equity shares to India Private Equity Fund

and 51,20,000 shares to Indocean Financial Holding, the two equity funds

controlled by Chase Manhattan Bank.

9


- HDFC Bank, has tied up with BPL Ltd to offer Internet-enabled supply-chain

management and business-to-consumer (B2C) e-commerce services to

corporate.

- Hutchison Max Telecom and HDFC Life Insurance introduced the country's

first-ever mobile-banking services in the city.

2001

- HDFC Life Insurance also signed a memorandum of understanding with

Singapore Telecom's e-commerce arm Sesami.Com Pvt Ltd.

- The Bank latter also entered into a partnership agreement with National

Computer Systems, the e-commerce unit of Singtel.

- A new company called SESAMi.com (India) has been formed by a strategic

alliance between HDFC Life Insurance and Singapore Telecom's e-commerce

company SESAMi.com, to offer e-commerce solutions for the Indian market.

- HDFC Life Insurance has a tie-up with Maxtouch for giving the facility to the

latter's customers in Mumbai. This is the first and only service of this sort in the

country, he said.

- HDFC Life Insurance is also launching an online electronic banking solution

called Enet which will allow corporates to access their accounts over the net and

carry out trade related transactions and cash management functions.

- HDFC Life Insurance entered into a tie-up with Telco by which the bank would

provide preferential financing options for Tata's range of passenger cars

including the Indica, Sumo, Safari, Estate and Sierra.

10


- HDFC Life Insurance allotted 1.98 crore shares of Rs 10 each at an issue price

of Rs 94 per share to promoters and strategic investors on March 29.

- HDFC Life Insurance is also set to become the first bank in the country to offer

wireless application protocol (WAP) services to customers.

- SkyCell Communications Ltd, one of the two cellular service

providers in Chennai, has launched `Sky Banking', for which the company has

tied up with ICICI Bank and HDFC Bank.

- The bank has tied up with 12 utility companies nationwide including BSES,

MSEB, BEST, Orange, BPL and MTNL.

- The Bank has tied up with financial portals, e-brokerages and the National

Stock Exchange to enable broker payments for e-broking ventures.

- The Bank has set up 100 new electronic data capture (EDC) terminals in

Mumbai.

- HDFC Life Insurance has launched its first B2C payment gateway which allows

Visa and MasterCard credit card-holders to do transaction online and real time.

- CYBERITMALL.COM has joined hands with HDFC Life Insuranceto provide

VISA/MasterCard users with an online payment gateway solution to enable them

to have a secure eshopping experience.

- HDFC Life Insurance plans to extend its mobile phone banking services

introduced in select metros to mobile phone broking when it introduces its

Internet on-line trading in July.

- HDFC Life Insurance and portal clickforsteel.com have signed a

memorandum of understanding for offering online credit and services to facilitate

11


`post transaction' activities through the portal's àllied services providers'

programme.

- Indianfoline.com signed an agreement with HDFC Life Insurance for the use of

payment gateway to enable online financial transactions.

- HDFC Bank, in association with cellular service provider Orange, has launched

the entire range of mobile banking services and mobile commerce services using

wireless application protocol (WAP) technology.

- The Company has introduced a new scheme whereby it will provide loans to

individuals for payment of self assessment tax on their properties in Bangalore.

- The Foreign Investment Promotion Board has cleared the proposal of the

HDFC Group to enter into a joint venture with Singapore Telecom's e-commerce

company for providing a comprehensive range of business-to-business e-

commerce solutions to companies in India.

- The Company proposes to pick up an equity stake in Softcell Trade and

Technologies Ltd., a Mumbai-based software company.

- BPL Mobile has tied up with HDFC Life Insuranceto offer Internet banking

through the mobile phone.

- HDFC Life Insurance launched èInstant Car Loans' a new scheme for offering

customers a range of net-enabled loan products.

- HDFC Life Insurance launched depository services on the net.

- HDFC Life Insurance tied up with NSE.IT, a wholly owned subsidiary of the

National Stock Exchange, for providing payment gateway services for the latter's

Internet trading operations.

12


- HDFC Life Insurance has been identified as the best domestic commercial

bank for the second consecutive year by FinanceAsia.com, which provides a

network for financial decision makers.

- The Mumbai-based Geojit Securities Ltd. has tied up with HDFC Life Insurance

for Internet trading of shares.

- Calcutta's cellular services provider Modi Telstra, and HDFC Life Insurance

have entered into a collaboration to provide mobile commerce in Calcutta.

- HDFC Life Insurance has got the Kerala-based Nedungadi Bank as its first

customer for its new joint venture company with I-Flex Solutions.

- HDFC Life Insurance has set a target of attaining a business of over Rs 15,000

crore this fiscal mainly through expansion and new product launches, including a

credit card.

- HDFC Bank, in association with Tata Cellular, has launched Mobile

Commerce Service, for customers in Hyderabad and Vishakaptnam.

- HDFC Life Insurance has tied up with about 25 equity brokerages for enabling

third party transfer of funds and securities through its business-to-business

portal -- è-Net'.

- The Bank has entered into an alliance with Deloitte Haskins and Sells, a

member firm of Deloitte and Touch, to offer banking services to its non-resident

Indian customers.

- HDFC Life Insurance has launched its 123rd outlet at Delhi Stock Exchange

building at Asaf Ali Road.

13


- The Bank proposes to acquire up to 24.5 per cent stake in the MIEL e-Security

Pvt. Ltd., which is engaged in the business of developing and marketing of

security products and services for a range of e-commerce and enterprises

security applications.

- The Bank has tied up with Rajan Raheja-owned Hathway for providing banking

at home as part of the Net-over-cable initiative of the latter in Mumbai.

- HDFC Life Insurance launched its on-line bill payment facility in alliance with

the Maharashtra State Electricity Board has also begun to offer bridge loans

against fixed deposits of parent Housing Development Finance Corporation the

financial institution.

- HDFC Life Insurance has tied up with portal brainvisa.com to retail education

loans to students.

- The Gujarat Cellular operator Fascel, has signed up with the HDFC Life

Insurance to introduce mobile commerce for the first time in the State.

- HDFC Life Insurance has tied up with BPL Mobile for mobile commerce facility.

- CricketNext.com, a sports e-commerce site has tied up with HDFC Life

Insurance to provide an on-line payment gateways and marketing opportunities

for a wide range of cricket sports gear on its on-line shop BatNext.

- Singapore-based Growasia.com has entered into an understanding with

HDFC Life Insurance and credit rating agency Icra, for picking up equity in the

company's Indian subsidiary Gasia.com.

- The Bank has launched `Freedom - The e-Age Savings Account' for cellular

phone users.

14


- Spice Cell has tied up with Citibank N A, HDFC Life Insurance and ICICI Bank

for mobile bill settlements.

- HDFC Life Insurance and Cosmos Bank launched a co-branded ATM card.

- The Chatterjee Group-promoted Captech Online Ltd. has signed memorandum

of understanding with HDFC Life Insurance and UTI Bank for setting up a

payment gateway for its debt negotiation platform, Riskxpress.com.

- HDFC Securities Ltd., promoted by the HDFC group with equity participation

from the Housing Development Finance Corporation Ltd., HDFC Life Insurance

and Chase Capital Partners, has launched its brokerage services for retail

investors in the Capital.

- The HDFC Life Insurance and Airtel launched their mobile-banking service

through WAP in Delhi.

- HDFC Life Insurance has launched wireless application protocol-based mobile-

banking in Coimbatore and Trichy in association with Aircel.

2002

- The Bank has opened its first branch in Aurangabad.

- HDFC Standard Life Insurance has entered into a memorandum of

understanding with the Chennai-based Indian Bank.

- The Bank has launched the international Maestro debit card in association with

Master Card.

- HDFC Life Insurance will launch its credit card in June through link-ups with

MasterCard and Visa.

15


- LTtrade.com has entered into a strategic tie-up with HDFC Life Insurance to

provide Net banking services to online investors.

- Standard Chartered Bank, HDFC Life Insurance and Bharat Petroleum

Corporation have joined the Cash Forum which has been set up by the Smart

Card Forum of India.

- HDFC Life Insurance has launched a new campaign for its eage savings

account.

- HDFC Life Insurance entered into a strategic tie-up with Tally Solutions Pvt.

Ltd. to offer online real time accounting services to small and medium

enterprises.

- The Bank has opened four ATMs outlets in Bangalore at Coles Road, RT

Nagar, Rajaji Nagar and Jaya Nagar on March 26.

- HDFC Standard Life Insurance has launched a `Development Insurance Plan'

a low cost life insurance product developed specifically to meet the needs of

economically weaker sections.

- Two Directors, Mr. S.S. Thakur and Mr. Amit Judge, have resigned from the

board of the bank effective from March 30.

- HDFC Life Insurance files with US regulators to list more than 11 million

American Depositary Shares on the New York Stock Exchange.

16


2003

- HDFC Life Insurance unveiled a new online account aggregation service

ÒneView'.

- HDFC launched 'One View' service to customers

- HDFC Life Insurance launched its 9th branch in Karnataka.

- HDFC opens its branch in Mangalore.

- HDFC Life Insurance unveils Silver card in Hyderabad.

- HDFC Life Insurance opens first overseas representative office.

- HDFC Life Insurance unveils gold card

- Mediclaim facilities to HDFC Life Insurance gold cardholders.

- HDFC Life Insurance Ltd has informed BSE that Mr Deepak Satwalekar has

submitted his resignation as Director of the Bank. The Board of Directors has

accepted the same. The Board of Directors has co-opted Mrs Renu Karnad as

Additional Director of the Bank.

- Mrs. Renu Karnad has been co-opted as an Additional Director of the Bank.

Mrs Karnad shall represent the promoters of the bank i.e.

HDFC Ltd. Also Mr. Deepak Satwalekar, Managing Director of HDFC Standard

Life Insurance Company Ltd, has been on the Board of the Bank as nominee of

HDFC Ltd since September 12, 1994 and shall complete the period of 8 yrs

before the next scheduled board meeting. In view of the provisions of the

Banking Regulation Act, 1949, Mr. Satwalekar has submitted his resignation as

Director of the Bank and the Board has accepted the same.

17


- HDFC Life Insurance launched new products to its wealth management

programme to increase its customer base. The bank introduced a non-interactive

product named Financial Planner, which would be available for all its customers

for an annual fee starting from Rs 10,000. The bank is offering fee based

advisory programme to the mass affluent segment, which was earlier offered to

high net worth customers. The wealth management programme would cater to

individual needs taking into account various factors such as customer's age,

financial goals and risk profile, which includes equity, MFs and debt instruments

such as RBI Relief Bonds.

- Orange JV with HDFC Bank.

2004

- HDFC Life Insurance unveils resident foreign currency account.

- HDFC Life Insurance unveils co-branded credit card with e-Seva.

- The Board of Directors of HDFC Life Insurance Ltd at their meeting held on

January 15, 2003 approved the appointment of Mr. Arvind Pande as an

Additional Director pursuant to section 260 of the Companies Act, 1956.

- EPFO JV with HDFC Life Insurance for its pension distribution.

- HDFC enters into agreement with HDFC Life Insurance to source housing

loans.

- HDFC Bank, IRCTC in tie up for online railway booking.

- HDFC Life Insurance inks pact with ANB for remittance service

- HDFC Life Insurance introduces 'HDFC Life Insurance Health Plus Credit

Card'.

18


- Uma Krishnan resigns HDFC Life Insurance as country head.

- Escotel ties up with HDFC Life Insurance for Global Debit Card.

- HDFC Life Insurance launches India's first mobile payment solution.

- HDFC Bank's debt programme of Rs 400-crore has received triple A (ind)

rating from CREDIT rating agency FITCH.

-Mumbai - HDFC Life Insurance in collaboration with Tally Solutions is planning

to launch electronic data interchange (EDI) system for small and medium

enterprises (SMEs).

-Warburg Pincus sells 2% stake in HDFC for Rs 235 cr

- HDFC Life Insurance began selling home loans of its promoter Housing

Development Finance Corporation (HDFC).

-Board approved to allot 4,16,400 equity shares to the employees of the Bank

under the Employee Stock Option Scheme

2006

-Mr Ranjan Kapur & Mr Bobby Parikh appointed as Additional Directors

-NMCE inks pact with HDFC Life Insurance for warehouse receipts

- HDFC Life Insurance has entered into an alliance with Clearing Corporation of

India Ltd (CCIL). The tie-up offers the latter's collateral borrowing and lending

obligation (CBLO) product to cooperative banks that are not direct members of

the negotiated dealing system (NDS).

-HDFC Life Insurance repurchases HDFC loans worth Rs 208 cr

-Launches Quickremit, a unique online service that enables NRIs in the US to

send money to their relatives in India from the comfort of their homes.

19


-Andhra Bank has entered into an alliance with HDFC Life Insurance for sharing

its network of automated teller machines (ATMs). On March 29, 2004

- HDFC Life Insurance and Bahraini Saudi Bank (BSB) have announced an

alliance to cater to service the needs of the non-resident Indians (NRIs) in

Bahrain.

- HDFC Life Insurance Ltd has informed that Dr (Mrs) Amla Samanta has

ceased to be a director of the Bank wef April 25, 2004.

- HDFC Life Insurance launches new scheme for Maruti 800 buyers, providing

85 per cent finance on the on-road price of the car for seven years.

-HDFC Life Insurance wins Asiamoney award for Best Domestic Bank

-HDFC Life Insurance managing director Aditya Puri has been awarded the

management man of the year by the Bombay Management Association (BMA)

-HDFC Life Insurance has entered into an agreement with Shrachi Securities

Ltd, the flagship company of the Kolkata-based Rs 300-crore Shrachi Group, for

financing of multi-utility vehicles all over India

-HDFC Life Insurance has launched an online bill payment facility for its

customers who are also subscribers to Tata Teleservices

-HDFC Life Insurance join hands with NCR Corporation to offer managed ATM

services

- IKF Finance Ltd has entered in to a Joint Lending Arrangement with HDFC Life

Insurance Ltd

2007

-TMB forges alliance with HDFC Life Insurance

20


-HDFC Life Insurance inaugurates first ATM in Hotel

- HDFC Life Insurance ties up with the International Bank of Qatar (IBQ) to

launch banking services in Qatar.

- HDFC Life Insurance launches loyalty rewards programme for its debit and

credit cardholders under the name InstaWonderz.

-HDFC Life Insurance along with MasterCard International launched credit card

targeted at small and medium-sized enterprises

-HDFC Life Insurance has tied up with US-based WL Ross and company LLC

for investing in corporate restructuring

-HDFC Life Insurance unveils credit card for farmers

2008

-HDFC sets up two more branches in AP

2009

-HDFC Life Insurance has signed an agreement with Tata Pipes to offer credit

facilities to farmers across the country.

-HDFC Life Insurance Ltd has appointed Mr. Pandit Palande as an additional

Director of the Bank at the Board Meeting held today i.e. on 24th April 2007.

- HDFC Life Insurance Ltd has informed that the Board of Directors of the Bank

at its meeting held on October 12, 2007, has been appointed Mr. Paresh

Sukthankar & Mr. Harish Engineer as Executive Directors on the Board of

Directors of the bank. Mr. Sukthankar & Mr. Engineer have been senior

employees of the Bank since 1994 and have held various positions of

responsibility.

21


MISSION OF THE ORGANISATION

a) To develop close relationship with

individual households.

b) To maintain its position as the top

housing finance institution in country.

c) Transform ideas into viable and creative

solutions.

d) To provide consistently high returns to

shareholders.

e) To grow through diversification by

leveraging off the existing client base.

22


LOANS OFFERED BY HDFC BANKS

PERSONAL LOANS

HOME LOANS

TWO WHEELER LOANS

NEW CAR LOANS

EXPRESS LOANS

USED CAR LOANS

OVERDRAFT AGAINST CAR

EXPERESS LOANS

LOAN AGAINST PROPERTY

LOAN AGAINST SECURITY

HEALTH CARE FINANCE

COMMERCIAL VEHICAL

WORKING CAPITAL FINANCE

CONSTRUCTION EQUIPMENT FINANCE

23


ORGANIZATION STRUCTURE AND

ORGANIZATION CHART

ORGANIZATIONAL STRUCTURE

Organizational structure depends on the product to be developed.

Wheelwright and Clark define a continuum of organizational structures between

two extremes, functional organizations and project organizations. Functional

organizations are organized according to technological disciplines. Senior

functional managers are responsible for allocating resources. The responsibility

for the total product is not allocated to a single person. Coordination occurs

through rules and procedures, detailed specifications, shared traditions among

engineers and meetings (ad hoc and structured). Products that need a high level

of specialized knowledge require a functionally organized structure.

A light-weighted matrix organization remains functional and the level of

specialization is comparable to that found in the functional mode. What is

different, is the addition of a product manager who coordinates the product

creation activities through liaison representatives from each function. Their main

tasks are: to collect information, to solve conflicts and to facilitate achievement of

overall project objectives. Their status and influence are less as compared to

functional managers, because they have no direct access to working-level

people.

24


A heavy-weighted matrix organization exists of a matrix with dominant the

project structure and underlying the functional departments. The product

manager has a broader responsibility. Manufacturing, marketing and concept

development are included. The status and influence of the product manager, who

is usually a senior, is the same or higher as compared to the functional manager.

compared to functional managers, because they have no direct access to

working-level people.

A project organization exists of product oriented flows: project and teams.

The project members leave their functional department and devote all their time

to the project. They share the same location. The professionals are less

specialized and have brioader tasks, skills and responsibilities. The functional

manager is responsible for the personnel development and the more detailed

technology research in the functional groups.

Companies can be classified to their organizational structures. Another

variable companies can be classified to is the nature of the projects undertaken.

We characterize projects by the number of employees needed to perform the

tasks, or workload, and the number of tasks that are fundamentally different in

nature. An example of the latter aspect is PCB development and structural

design.

Another way to classify organization structure is by one of the following

four categories:

I. The product to be developed is comprehensible for one person. One

person is likely to have all the knowledge needed to develop

25


Manufacturing and Assembly. The development department in

companies that undertake these kinds of projects are usually very

small. If a company consists of more than one department, it is usually

structured as a functional organization.

II. The product to be developed has a fairly low complexity, but total work

is high. These kinds of products are likely to be developed within one

functional department. A research department may also be an example

of a department in which type II projects are undertaken. Are more

departments involved, and then the light weighted matrix structure is

preferable. Employees are involved on a full-time basis. Tasks may be

performed concurrently. The sequence can be determined using the

Design Structure Matrix.

III. The product to be developed consists of a lot of different elements,

such as software, PCB, power supply and mechanical structure. The

product is however in the engineering phase, i.e. it is clear what needs

to be done to get the product into production. Various disciplines

perform their own tasks. These tasks have mostly a low workload.

Employees cannot work full-timee on one project. This creates a

complex situation, that may be compared to a job shop situation in

production logistics. Though the comparison between manufacturing

and product development is not accepted by all product development

managers, it may yield good results. Studying each step in the Product

Development Process and fluctuations in workloads reveals ways to

26


reduce variation and eliminate bottlenecks. It is necessary to view the

Product Development Process as a process and not as a list of

projects. Three important findings regarding this are:

1. Projects get done faster if the organization takes on fewer at a time.

2. Investments to relieve bottlenecks yield disproportionately large

time-to-market benefits.

3. Eliminating unnecessary variation in workloads and work processes

eliminates distractions and delays, thereby freeing up the

organization to focus on the creative parts of the task.

Creating cross-functional concurrent engineering teams is the right

way to develop products. However, the pitfall is too many project at the

same time, so that key people from engineering, marketing and

manufacturing work at five or more projects at once. This results in

congestion. Striving to work at 100% of the product development

capacity legthens product development lead times enormously. A more

realistic percentage is 80%. Attention must be focused on bottlenecks,

these days most commonly found at the software development side of

the project.

IV. The product is complex. Total work is high. Employees can thus

participate on a full-time basis. A project organization is the most

appropriate organizational structure for these kind's of products.

ORGANIZATIONAL CHART

27


28

Chairman

Sales Director

U.P. Unit Head

Territory Development

ManagerAccounts

Development

Customer Executive

Staff


COMPANY PRODUCTS & SERVICES

29


Credit Approval Process

Personal Loans Credit Approval Process Flow Chart

Field are processed in one batch daily

Day-1

SERVICES OF HDFC BANKS

PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION COMPETITORS

At HDFC Standard Life, we offer a bouquet of insurance solutions to meet

every need. We cater to both, individuals as well as to companies looking to

provide benefits to their employees. This section gives you details of all our

30


products. We have incorporated various downloadable forms and product details

so that you can make an informed choice about buying a policy.

For individuals, we have a range of protection, investment, pension and

savings plans that assist and nurture dreams apart from providing protection.

You can choose from a range of products to suit your life-stage and needs.

For organisations we have a host of customised solutions that range from

Group Term Insurance, Gratuity, Leave Encashment and Superannuation

Products. These affordable plans apart from providing long term value to the

employees help in enhancing goodwill of the company.

Individual Products

We at HDFC Standard Life realise that not everyone has the same kind of

needs. Keeping this in mind, we have a varied range of Products that you can

choose from to suit all your needs. These will help secure your future as well as

the future of your family.

Protection Plans

You can protect your family against the loss of your income or the burden

of a loan in the event of your unfortunate demise, disability or sickness. These

plans offer valuable peace of mind at a small price.

31

http://www.hdfcinsurance.com/products/individual.aspx

http://www.hdfcinsurance.com/products/group.aspx


Our Protection range includes our Term Assurance Plan & Loan Cover

Term Assurance Plan.

Investment Plans

Our Single Premium Whole Of Life plan is well suited to meet your long

term investment needs. We provide you with attractive long term returns through

regular bonuses.

Pension Plans

Our Pension Plans help you secure your financial independence even

after retirement.

Our Pension range includes our Personal Pension Plan, Unit Linked

Pension, Unit Linked Pension Plus

Savings Plans

Our Savings Plans offer you flexible options to build savings for your

future needs such as buying a dream home or fulfilling your children’s immediate

and future needs.

32

http://www.hdfcinsurance.com/products/indi_ulpplus.aspx

http://www.hdfcinsurance.com/products/indi_ulpp.aspx

http://www.hdfcinsurance.com/products/indi_ulpp.aspx

http://www.hdfcinsurance.com/products/indi_ppp.aspx

http://www.hdfcinsurance.com/products/indi_spwlp.aspx

http://www.hdfcinsurance.com/products/indi_lcta.aspx

http://www.hdfcinsurance.com/products/indi_lcta.aspx

http://www.hdfcinsurance.com/products/indi_tap.aspx


Our Savings range includes Endowment Assurance Plan, Unit Linked

Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II,

Money Back, Unit Linked Enhanced Life Protection II, Children's Plan, Unit

Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young Star Plus II.

Group Products

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of products for

progressive employers who wish to provide the best and most innovative

employee benefit solutions to their employees. We offer different products for

different needs of employers ranging from term insurance plans for pure

protection to voluntary plans such as superannuation and leave encashment.

We now offer the following group products to our esteemed corporate

clients:

Group Term Insurance

Group Variable Term Insurance

Group Unit-Linked Plan

An investment solution that provides funding vehicle to manage corpuses

with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave

Encashment schemes of your company.

Also suitable for other employee benefit schemes such as salary saving

schemes and wealth management schemes.

33

http://www.hdfcinsurance.com/products/grp_leaveencash.aspx

http://www.hdfcinsurance.com/products/grp_leaveencash.aspx

http://www.hdfcinsurance.com/products/grp_superannuation.aspx

http://www.hdfcinsurance.com/products/grp_gratuity.aspx

http://www.hdfcinsurance.com/products/grp_gvti.aspx

http://www.hdfcinsurance.com/products/grp_gtistdprop.aspx

http://www.hdfcinsurance.com/products/indi_ulysplusII.aspx

http://www.hdfcinsurance.com/products/indi_cp.aspx

http://www.hdfcinsurance.com/products/indi_elpII.aspx

http://www.hdfcinsurance.com/products/indi_mbp.aspx

http://www.hdfcinsurance.com/products/indi_uleplusII.aspx

http://www.hdfcinsurance.com/products/indi_eap.aspx


Social Product

Development Insurance Plan

Development Insurance plan is an insurance plan which provides life

cover to members of a Development Agency for a term of one year. On the death

of any member of the group insured during the year of cover, a lump sum is paid

to that member’s beneficiaries to help meet some of the immediate financial

needs following their loss.

Eligibility

Members of the development agency and their spouses with:

- Minimum age at the start of the policy 18 years last birthday

- Maximum age at the start of policy 50 years last birthday

Employees of the Development Agency are not eligible to join the group.

The group to be covered is only eligible if it contains more than 500 members.

Premium Payments

The premium to be paid will be quoted per member in the group and will

be the same for all members of the group. The premium can only be paid by the

Development Agency as a single lump sum that includes all premiums for the

34


group to be covered. Cover will not start until the premium and all the member

information in our specified format has been received.

The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.

Benefits

On the death of each member covered by the policy during the year of

cover a lump sum equal to the sum assured will be paid to their beneficiaries or

legal heirs. Where the death is as a result of an accident, an additional lump sum

will be paid equal to half the sum assured. There are no benefits paid at the end

of the year of cover and there is no surrender value available at any time.

The role of the Development Agency

Due to the nature of the groups covered, HDFC Standard Life will be

passing certain administrative tasks onto the Development Agency. By passing

on these tasks the premium charged can be lower. These tasks would include:

Submission of member data in a specified computer format

Collection of premiums from group members

Recording changes in the details of group members

Disbursement of claim payments and the mortality rebate (if any) to group

members

These tasks would be in addition to the usual duties of a policyholder such

as:

o Payment of premiums

35


o Reporting of claims

o Keeping policy holder information up to date

Training and support will be available to give guidance on how to complete

the tasks appropriately. Since these additional tasks will impose a burden on the

Development Agency, the Development Agency may charge a Rs. 10

administration fee to their members.

Prohibition of rebates

Section 41 of the Insurance Act, 1938 states

No person shall allow or offer to allow, either directly or indirectly, as an

inducement to any person to take out or renew or continue an insurance in

respect of any kind of risk relating to lives or property in India, any rebate

of the whole or part of the commission payable or any rebate of the

premium shown on the policy, nor shall any person taking out or renewing

or continuing a policy accept any rebate, except such rebate as may be

allowed in accordance with the published prospectus or tables of the

insurer

If any person fails to comply with sub regulation (previous point) above, he

shall be liable to payment of a fine which may extend to rupees five

hundred

Bank

HDFC Bank provides correspondent bank services to Co-operative Banks,

Private Banks, Foreign Banks & RRB's. Banks can leverage HDFC banks branch

network , technology and product capability. We have a wide range of products

engineered to suit the needs of the banking sector this is backed up by a

dedicated Relationship Management Team and dedicated servicing department.

36


Financial Institutions

Institutions need a bank that uses its financial skills to streamline

performance and build business. Therefore we at HDFC Bank focus on

responding to the unique environments of each and every client, configuring our

core capabilities to satisfy those needs within locations or sectors.

Stock Brokers

Clearing Bank Services to Currency Derivative Brokers

HDFC Bank is the leading clearing Bank for currency derivative segment of

National Stock Exchange of India Limited (NSEIL), Bombay Stock Exchange

Limited (BSE) and MCX Stock Exchange Limited (MCX-SX).

HDFC Bank with its rich and multitudinous expertise as clearing Bank, is

poised to cater to the needs of all intermediaries, particularly brokers, in currency

derivative segment. Bank is offering slew of products to suit working capital

requirements of the brokers and can also offer structured products, to meet

specific requirements for the clearing member.

Clearing Bank Services to Capital Market Brokers

HDFC Bank Limited is the leading clearing Bank for National Stock

Exchange of India Limited (NSEIL) and Bombay Stock Exchange Limited (BSE)

offering a range of products and services in the Capital Market Business.

37


HDFC Bank is also a Clearing Bank for other Stock Exchanges in India

namely Ahmadabad Stock Exchange, Calcutta Stock Exchange, OTC Exchange

of India and the Interconnected Stock Exchanges.

The clearing and settlement bank activities are handled by the Capital

Market Division of the Bank, which is manned by highly experienced staff

specifically trained to handle the ever changing/ urgent requirements of the

clearing members.

Products and Services for Capital Market Brokers

HDFC Bank offers the following products and services to client members:

Fund based Non Fund based Transaction based

Others

Loan against securities

Bank guarantees to NSE/BSE

Settlement Activities

Corporate Salary Accounts

Structured Products

Bank Guarantees to Professional clearing members

Payment Gateways

DP Accounts

ENet™ Custodial Service

Supply chain Management

Cash Management Services

Insurance Companies

The Insurance business is a key focus area for HDFC Bank. Our

experience in this sector has created a benchmark in providing services to all

institutions of this industry, namely, Life Insurance Corporation of India Ltd,

38

http://www.hdfcbank.com/wholesale/fit/financial_institutions/cash_mgt_services/cash_management_services.htm



http://www.hdfcbank.com/wholesale/fit/stock_broker/supply_chain_management/Retail_accounts_for_broker_clients.htm

http://www.hdfcbank.com/wholesale/fit/stock_broker/supply_chain_management/Retail_accounts_for_broker_clients.htm

http://www.hdfcbank.com/wholesale/fit/financial_institutions/custodial_services/custodial_service.htm

http://www.hdfcbank.com/wholesale/fit/financial_institutions/custodial_services/custodial_service.htm

http://www.hdfcbank.com/wholesale/fit/stock_broker/netbanking_solution/Netbanking_Solutions.htm

http://www.hdfcbank.com/wholesale/fit/stock_broker/dp_acc/fit_dp_accounts.htm

http://www.hdfcbank.com/wholesale/fit/stock_broker/payment_gateway/Payment_Gateway_for_e_Broking_Ventures.htm

http://www.hdfcbank.com/wholesale/fit/stock_broker/payment_gateway/Payment_Gateway_for_e_Broking_Ventures.htm

http://www.hdfcbank.com/wholesale/fit/stock_broker/bank_guarantee/Bank_Guarantees.htm



http://www.hdfcbank.com/wholesale/fit/stock_broker/structured_work_capital/Structured_Working_Capital_Funding.htm

http://www.hdfcbank.com/wholesale/fit/stock_broker/structured_work_capital/Structured_Working_Capital_Funding.htm

http://www.hdfcbank.com/wholesale/fit/banks/corporate_salary_account/corporate_salary_accounts.htm

http://www.hdfcbank.com/wholesale/fit/banks/corporate_salary_account/corporate_salary_accounts.htm

http://www.hdfcbank.com/wholesale/fit/stock_broker/settlement_activities/Clearing_Settlement_Bankers_on_Equity_Derivatives_Segment.htm

http://www.hdfcbank.com/wholesale/fit/stock_broker/settlement_activities/Clearing_Settlement_Bankers_on_Equity_Derivatives_Segment.htm



http://www.hdfcbank.com/wholesale/fit/stock_broker/loan_against_govt_secs/Loan_against_Govt_secs.htm

http://www.hdfcbank.com/wholesale/fit/stock_broker/loan_against_govt_secs/Loan_against_Govt_secs.htm


National Insurance Company Limited, Oriental Insurance Co Ltd., New India

Assurance Co. Ltd. and United India Insurance Ltd.

Commodity Businesses

HDFC Bank is the leading clearing bank for National Commodity &

Derivative Exchange Ltd., (NCDEX), Multi Commodity Exchange of India Ltd.,

(MCX) and National Multi Commodity Exchange of India Ltd. (NMCE), offering a

range of products and services in the Commodity Exchange Business.

Trusts

The trust services at HDFC Bank provide you with the dual advantages of

a secure depository and efficient administration of your securities. Through our

solutions we help you maximize returns, meet fiduciary responsibilities, and

improve operational efficiency. In other words HDFC Bank provides complete

administrative and fiduciary support for a wide range of financing and investing

structures.

STUDY OF SELECTED RESEARCH PROBLEMS

Statement of Research Problem

Marketing research implies the collection of data and implementing it for

the purpose of making marketing decision. In general sense making research

39


consist in the use of logical methods for scientific enquiry for the identification

and solution of any marketing problem.

“Marketing research is a systematic problem analysis, model building and

fact finding for the purpose of important decisions maki9ng and control in the

marketing of goods and service”

“Marketing research is a search of knowledge”

The above definitions on marketing research indicate clearly that all

research activities carried, on the condition with management of marketing task,

its purpose is to aid marketing control.

40


Need of the Study

ORIGIN AND DEVELOPMENT OF THE STUDY

Insurance means being covered or protected against any hazards of life. It

is a financial agreement that binds two people to certain obligations which is

known as Policy. One who buys insurance/ gets insurance coverage is the policy

holder or insured and the one who sells the policy is the insurer. From the time

the insured signs the policy he/she has an obligation to pay a certain amount of

money known as premium at regular intervals for a stipulated period to the

insurer. In fact, insurance is a contract to pay a premium in return for which the

41


insurer will pay compensation in certain eventualities e.g. fire, theft, motor

accident, etc.

The Indian insurance industry has witnessed exceptional growth with

private participation. It has a mix of public and private players both in the field of

life and non-life business. This sector not only provide a protective shield to the

lives and assets of the nation but also generate thousands of jobs and career

opportunities.

The foremost choice to open a career in this field is to start as an

insurance agent. They are the people who advice the individuals and enterprises

about insurance protection to their health, life and properties and sell the policies

to provide protection against financial loss. Depending on their educational

qualification and strengths, the agents have a good chance of becoming an

employee of the company. This industry also provide great opportunities in

marketing, distribution, actuarial, underwriting operations and investing

departments.

There are about 30 insurance companies in India. The major government

companies are Life Insurance Corporation of India (LIC), General Insurance

Corporation (GIC) and Postal Life Insurance. While LIC deals with insurance of

life, GIC and its subsidiaries are concerned with non life aspects of insurance

such as car, marine, accident, medical and fire insurance.

42

http://www.webindia123.com/career/options/insurance/intro.htm






Many multinational companies have come forward in the insurance field.

ICICI Prudential, Om Kotak Mahindra, Birla Sun-Life, Tata AIF Life, Reliance,

HDFC Standard Life-Insurance Co., Max New York Life, SBI Life Insurance, ING

Vysya Life etc. are the top companies in the private sector. In non-life insurance

segment, major private players are ICICI Lombard, Royal Sundaram,

Cholamandalam, IFFCO Tokyo, Tata AIG etc. All Insurance companies come

under the Insurance Regulatory and Development Authority (IRDA) which is

established to regulate, promote and ensure orderly growth of Life and General

insurance industry in India.

DEVELOPMENT

Housing Finance Sector

Against the milieu of rapid urbanisation and a changing socio-economic

scenario, the demand for housing has grown explosively. The importance of the

housing sector in the economy can be illustrated by a few key statistics.

According to the National Building Organisation (NBO), the total demand for

housing is estimated at 2 million units per year and the total housing shortfall is

estimated to be 19.4 million units, of which 12.76 million units is from rural areas

and 6.64 million units from urban areas. The housing industry is the second

largest employment generator in the country. It is estimated that the budgeted 2

million units would lead to the creation of an additional 10 million man-years of

direct employment and another 15 million man-years of indirect employment.

43





Having identified housing as a priority area in the Ninth Five Year Plan

(1997-2002), the National Housing Policy has envisaged an investment target of

Rs. 1,500 billion for this sector. In order to achieve this investment target, the

Government needs to make low cost funds easily available and enforce legal and

regulatory reforms.

Background

HDFC was incorporated in 1977 with the primary objective of meeting a

social need - that of promoting home ownership by providing long-term finance to

households for their housing needs. HDFC was promoted with an initial share

capital of Rs. 100 million.

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

44


HDFC's 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.

45


SCOPE OF THE STUDY

Growth And Present Status Of The Industry

MILESTONE- 30 YEARS

2006

Rs. 1,00,000 Crore Home Loan Approvals HDFC Crosses Rs. 1,00,000 Crore

in Home Loan Approvals

Padma Bhushan Padma Bhushan for HDFC Chairman Deepak Parekh

The ICAI Award Ms. Renu Sud Karnad, Executive Director, HDFC receiving the

ICAI Award from Mr. P C Gupta, Hon'ble Union Minister of State for Company

Law Affairs

46


'The Best Presented Accounts' ICAI confers gold shield to HDFC for 'The Best

Presented Accounts'

Corporate Governance Approach Institute of International Finance hails

HDFC's Corporate Governance approach

WL ROSS and HDFC WL Ross and HDFC Team-up to Invest in Indian

Corporate Turnarounds.

Awards 2007

HDFC scored a rating of 4 out of 5 at the Karmayog Corporate Social

Responsibility Ratings - 2007

Renu Sud Karnad as a Powerful Woman Business Today selects Renu

Sud Karnad as a Powerful Woman in Indian Business

Best 'Investment Management Company’ HDFC emerged as the best

'Investment Management Company’ in India at the Liquid Real Estate

Awards – 2007 organised by EUROMONEY

HDFC ranked 3rd Asian Banking and Finance Sector HDFC ranked

3rd amongst the Asian Banking and Finance Sector for ‘Highest Return on

Equity’ by Asiamoney

47

http://www.hdfc.com/others/hdfc_awards.asp#%23





Ms Renu Sud Karnad eminent women felicitated Ms Renu Sud Karnad,

Executive Director, was one of the eminent women felicitated by the FICCI

Ladies Organization at their Women Achievers Award – 2007

Ranked 3rd: 'Highest Return on Equity’ HDFC ranked 3rd amongst the

Asian Banking and Finance Sector for 'Highest Return on Equity’ by

Asiamoney

Ranked top 3 Best Managed Companies HDFC Ranked amongst the

Top 3 Best Managed Companies by FinanceAsia – 2007

Subsidiaries and associate Companies

HDFC Bank

HDFC Mutual Fund

HDFC Standard Life Insurance Company

HDFC Sales

HDFC General Insurance

Other Companies Co-Promoted by HDFC

Financial Information with regard to Subsidiary Companies

HDFC Consulting Services

48

http://www.hdfc.com/others/subsidiaries_associates.asp#%23


http://www.hdfcgi.com/


http://www.hdfcinsurance.com/

http://www.hdfcfund.com/

http://www.hdfcbank.com/



HDFC is a unique example of a housing finance company which has

demonstrated the viability of market-oriented housing finance in a developing

country. It is viewed as an innovative institution and a market leader in the

housing finance sector in India. The World Bank considers HDFC a model private

sector housing finance company in developing countries and a provider of

technical assistance for new and existing institutions, in India and abroad.

HDFC’s executives have undertaken consultancy assignments related to housing

finance and urban development on behalf of multilateral agencies all over the

world.

HDFC has also served as consultant to international agencies such as

World Bank, United States’ Agency for International Development (USAID),

Asian Development Bank, United Nations’ Center for Human Settlements,

Commonwealth Development Corporation (CDC) and United Nations’

Development Programme (UNDP). HDFC has also undertaken assignments for

the United Nations’ Capital Development Fund in Ethiopia, for the UNCHS in

Nairobi, for USAID in Russia and Bulgaria, and projects of the World Bank in

Indonesia and Ghana.

At the national level, HDFC executives have played a key role in

formulating national housing policies and strategies. Recognising HDFC’s

expertise, the Government of India has invited HDFC’s executives to join a

number of committees and task forces related to housing finance, urban

development and capital markets.

49


A widely quoted definition by the World Business Council for Sustainable

Development states that 'Corporate Social Responsibility (CSR) is the continuing

commitment by business to behave ethically and contribute to economic

development while improving the quality of life of the workforce and their families

as well as of the local community and society at large'. Although the term 'CSR' is

of relatively recent vintage, it is this commitment, that HDFC has exemplified with

zeal, perseverance and enthusiasm since its nascent years. The initiatives

undertaken by the Corporation from its earliest days flow from a wellspring of

voluntary efforts as opposed to obligatory commitments.

The following pages describe some of the projects supported by HDFC

through the Shelter Assistance Reserve, initiatives undertaken by HDFC

employees and our continued bulk lending operations in the area of micro-

finance and low-income housing.

Shelter Assistance Reserve

The year saw the utilisation of the Shelter Assistance Reserve towards a

wide array of development projects across the country. The Reserve supported

close to 160 nonprofits and development organisations with the overall utilisation

at Rs. 4.68 crore. The segment-wise break-up of the utilisation is highlighted in

the chart below:

50


Cited below are a few cases in no specific order that broadly illustrate the

deployment of the Shelter Assistance Reserve during 2006-07

The Poona School & Home for the Blind

Vidya

Nanhi Kali

Saathi

51

http://www.hdfc.com/others/social_initiatives.asp#saathi%23saathi

http://www.hdfc.com/others/social_initiatives.asp#kali%23kali

http://www.hdfc.com/others/social_initiatives.asp#vidya%23vidya

http://www.hdfc.com/others/social_initiatives.asp#blind%23blind


Prayas

52

http://www.hdfc.com/others/social_initiatives.asp#prayas%23prayas


OBJECTIVE OF THE STUDY

To develop close relationship with individual households.

To maintain its position as the top housing finance institution in country.

Transform ideas into viable and creative solutions.

To provide consistently high returns to shareholders.

To grow through diversification by leveraging off the existing client base.

53


RESEARCH METHODOLOGY

Future of the Industry

HDFC Future

HDFC has always been market-oriented and dynamic with respect to

resource mobilisation as well as its lending programme. This renders it more than

capable to meet the new challenges that have emerged. Over the years, HDFC

has developed a vast client base of borrowers, depositors, shareholders and

agents, and it hopes to capitalise on this loyal and satisfied client base for future

growth. Internal systems have been developed to be robust and agile, to take

into account changes in the volatile external environment.

HDFC has developed a network of institutions through partnerships with

some of the best institutions in the world, for providing specialised financial

services. Each institution is being fine-tuned for a specific market, while offering

the entire HDFC customer base the highest standards of quality in product

design, facilities and service.

54


ORIGIN OF THE ORGANIZATION

HDFC Standard Life Insurance Company Ltd. is one of India's leading

private insurance companies, which offers a range of individual and group

insurance solutions. It is a joint venture between Housing Development Finance

Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a

Group Company of the Standard Life, UK. HDFC as on December 31, 2007

holds 72.38 per cent of equity in the joint venture.

The Standard Life Assurance Company ("Standard Life") was established

in 1825 and the first Standard Life Assurance Company Act was passed by

Parliament in 1832. Standard Life was reincorporated as a mutual assurance

company in 1925.

The Standard Life group originally operated only through branches or

agencies of the mutual company in the United Kingdom and certain other

countries.

Its Canadian branch was founded in 1833 and its Irish operations in 1838.

This largely remained the structure of the group until 1996, when it opened a

55


branch in Frankfurt, Germany with the aim of exporting its UK life assurance and

pensions operating model to capitalise on the opportunities presented by EC

Directive 92/96/EEC (the “Third Life Directive”) and offer a product range in that

market with features which local providers were unable to offer.

In the 1990s, the group also sought to diversify its operations into areas

which complemented its core life assurance and pensions business, with the

intention of positioning itself as a broad range financial services provider.

Banking, Healthcare & Investments –

The group set up Standard Life Bank, its UK mortgage and retail savings

banking subsidiary, in 1998 and Standard Life Investments, which had previously

been the in-house investment management unit of the group’s life assurance and

pensions business, was separated into a distinct legal entity in the same year,

with the aim of establishing it as an independent investment management

business providing services to both the group and third party retail and

institutional clients. The group acquired Prime Health Limited (subsequently

renamed Standard Life Healthcare) in the United Kingdom in 2000. Standard Life

Healthcare expanded in March 2006 with the acquisition of the PMI business of

FirstAssist.

Standard Life Asia Limited/Joint ventures –

The group’s Hong Kong subsidiary, Standard Life Asia Limited (“SL Asia”),

was incorporated in 1999 as a joint venture and became a wholly-owned

56


subsidiary of Standard Life in 2002. The group’s operations in Hong Kong were

established to give the group a presence in the Far East from which it could

expand into China. The group’s joint ventures in India with Housing Development

Finance Corporation Limited (“HDFC”) were incorporated in 2000 (in relation to

the life assurance and pensions joint venture) and 2003 (in relation to the

investment management joint venture). The group’s joint venture in China with

Tianjin Economic Development Area General Company (“TEDA”) became

operational in 2003.

Standard Life International Limited –

The group also incorporated Standard Life International Limited (“SLIL”) in

2005 for the purposes of providing the group with an offshore vehicle, based in

Ireland, through which it could sell tax-efficient investment products into the

United Kingdom. Sales of these products commenced in 2006.

Service company –

Following the group’s strategic review in 2004, the group established a

service company structure for the provision of central corporate services to the

group’s business units. Standard Life Employee Services Limited (“SLESL”)

supplies a wide range of central services to the rest of the group, including IT,

facilities, legal and human resources services, and employs staff working in the

group’s UK and Irish operations (other than SLI, SLB and SLH, which employ

their staff directly). This service company structure was created to enable

57


Standard Life to comply with regulatory restrictions on the provision of non-

insurance services and to exploit group-wide synergies.

Our key strengths

Financial Expertise

As a joint venture of leading financial services groups, HDFC Standard

Life has the financial expertise required to manage your long-term investments

safely and efficiently.

Range of Solutions

It is individual and group solutions, which can be easily customised to

specific needs. Our group solutions have been designed to offer you complete

flexibility combined with a low charging structure.

Track Record so far

Company’s gross premium income, for the year ending March 31, 2008

stood at Rs. 4,859 crores and new business premium income stood at Rs. 2,685

crores.

The company has covered over 9,59,000 lives year ending March 31,

2008.

58


GROWTH AND DEVELOPMENT OF THE ORGANIZATION

HDFC Standard Life Insurance, which is in an expansion phase,

inaugurated its 2nd branch in Nagpur. The company has shown strong growth

in Vidarbha and is confident about a strong performance for the current

financial year. According to Mr Deepak M Satwalekar, CEO & MD HDFC

Standard Life Insurance, “The company wants to be as close to its end

customers as possible and wants to ensure complete customer convenience and

delight. We felt the need to increase our spread in Nagpur because of its growing

potential, and hence opening up of our second office in this city was an obvious

choice.”

This launch is in line with the company’s strategy of strengthening its

presence across the country to consolidate it’s position in the life insurance

business in India. With it’s new office in Nagpur, HDFC Standard Life will have 9

branch locations in 6 cities in the Vidarbha region. The company will now have

presence in Nagpur, Amravati, Akola, Chandrapur , Yavatmal, Wardha, Bandara

and Gondia. Nationally the company continues to have one of the widest reach

among private life insurance companies with 341 branches doing business in

more than 679 cities and towns in India.

59


HDFC Standard Life has been recording consistent growth since it’s

inception. The company recorded a strong year on year growth of 112% for the

period April-March 2005- 06, in comparison with the same period 2004-05, with

new business first year premium of Rs. 1029 crore. The growth achieved by the

company was considerably higher than the private sector industry average of

84% for 2005-06. HDFC Standard Life’s Effective Premium Income (EPI) grew by

103% from Rs. 436.08 crore to a commendable Rs. 887.30 crore.

60


DESCRIPTIVE WORK ON SUBTOPIC OF STUDY

Present Status of the Organization

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august

2000. It is a joint venture between Housing Development Finance Corporation

Limited (HDFC Ltd.) India and UK based Standard Life Company. Both the joint

venture partners being one of the leaders in their respective areas came together

in this 81.4:18.6 joint venture to form HDFC Standard Life Insurance Company

Limited.

The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has

given the company new directions and has helped the company achieve the

status it currently enjoys. HDFC Standard Life brings to you a whole range of

insurance solutions be it group or individual or NAV services for corporations,

they can be easily customized as per specific needs.

HDFC Standard Life Insurance India boasts of covering around 8.7 lakh

lives by March'2007. The gross incomes standing at a whopping Rs. 2, 856

crores, HDFC Standard Life Insurance Corporation is sure to become one of the

leaders and the first preference for any life insurance customer.

61


The Bancassurance partners of HDFC Standard Life Insurance Co Ltd are

HDFC, HDFC Bank India Limited, Union Bank of India, Indian Bank, Bank of

Baroda, Saraswat Bank and Bajaj Capital.

The various products by HDFC Standard Life include:

INDIVIDUAL PRODUCTS:

Protection Plans

o Term Assurance Plan

o Loan Cover Term

o Assurance Plan

Investment Plans:

o Single Premium Whole Life Plan

Pension Plans:

Personal Pension Plan

Unit Linked Pension Plan

Unit Linked Pension Plus

Savings Plans:

o Endowment Assurance Plan

o Unit Linked Endowment

62


o Unit Linked Endowment Plus

o Money Back Plan

o Children's Plan

o Unit Linked Youngstar

o Unit Linked Youngstar Plus

GROUP PRODUCTS

o Group Term Insurance

o Group Variable Term Insurance

o Group Unit Linked Plan

OTHER PRODUCTS

Rural Products

Social Development Insurance Plan

Tax Benefit Schemes

The premium payment options available to the customers vary from online

payment to direct desk payments at the HDFC Standard Life Branches, by

courier services or in drop boxes provided. You can also pay by ECS or

Automatic Debit System or credit cards or standing instruction mandate. HDFC

Standard Life Insurance Company is a customer oriented corporation and aim at

complete customer satisfaction.

The lapsation and renewal policy of HDFC Standard Life are clearly

defined on the official website. Online renewal forms are also available. For any

63


change in personal details like the contact details or the nominee of the policy or

policy benefits, online servicing is also available. Even the claim procedure has

been simplified since affect of the loss life is irreparable and is thus fully

understandable at HDFC Standard Life. A completely hassle-free process has

been formulated to provide maximum convenience.

Rawlani explains, “Ours is a paper-intensive business, and new businesses,

policy services and claims ended up making things worse. We have always looked

upon IT as an enabler. With this belief we found Wonders as a solution to our

requirements. Wonders assisted us in standardisation of documents for mapping into

the document management system. It has helped us to get rid of paper by using

images instead. Moreover, all the operations are automated making the processes

more efficient and effective.”

Products and technologies used

Workflow

Engine

TIBCO Staffware version 9.0

Imaging Image Services version 3.6 ESE

and Capture 4.1 from Filenet

Systems

Integrator

Siemens Information Systems

Limited

About HDFC Standard Life Insurance Co.

HDFC Standard Life Insurance Company Ltd is one of India’s leading private

64


life insurance companies, offering as it does a range of individual and group

insurance solutions. It is a joint venture between the Housing Development

Finance Corporation Limited (HDFC Ltd.), India’s housing finance institution,

and one of the subsidiaries of Standard Life Plc, that provides financial services

in the United Kingdom.

The company’s strengths include:

Financial Expertise : As a joint venture of leading financial services

groups, HDFC Standard Life has the financial expertise required to

manage long-term investments.

A wide range of solutions: The Company has a range of individual and

group solutions, which can be customised to specific needs. The group

solutions have been designed to offer complete flexibility combined with

a low charging structure.

Track record so far : HDFC Standard Life’s cumulative premium

income, including the first year premiums and renewal premiums is Rs.

1,532.21 crores April-March 2005 - 06. The company has covered over

1.6 million individuals of whom over 5,00,000 have been covered through

its group business tie-ups.

An integrated document management system helps users with features

such as document access rights, document structure definition, and the facility to

convert multiple images into a simple image. Wonders provides on-demand MIS

65


generation, and provides deadlines while awaiting responses. The workflow has

the business logic to route the cases electronically to pre-determined selected

items.

Implementation in a nutshell

Company HDFC Standard Life Insurance

SolutionWonders, or Workflow on Demand and Enterprise Retrieval System

Project started May 2003

Project completed January 2006

Aim of the implementation

To improve efficiency, process monitoring, process control and tracking; improve customer proximity; increase personalised services; improve brand image by innovative utilisation of internal resources

Challenges faced Standardisation of documents for mapping into the document management system

Well-defined path for every process Working with images vs paper

Requirement of additional resources initially

Major benefits Productivity improvement due to reduction in complaints from sales, instant retrieval of information, and increased capacity

Reduction of average policy insurance time Faster response leading to high customer

satisfaction Improved and consistent customer service

Increased revenues

Technically speaking

66


Wonders has an n-tier modular architecture with a Web-based front-end.

This reduces effort in maintenance, scalability, flexibility and loosely-coupled

integration. The implementation of Wonders technically involved a number of

innovations such as a Web-based front-end which is customised to improve the

productivity of users.

The GUI provides dual monitor support so that the electronic form image

can be shown alongside the data entry form on separate monitors. HDFCSL is

using a 15” and a 17” monitor for this purpose. The 17” monitor is turned at 90-

degrees, letting users see a scanned image in its entirety without having to scroll.

By using two smaller monitors instead of one large 20”-25” monitor, the company

has made significant savings.

Guided data entry with the relevant images being shown automatically

improves the speed of this process. A document tree hierarchy is also provided

to navigate through documents. Document image retrieval is automated, and hot-

key functions are provided to reduce key strokes. Says Rawlani, “Users can open

multiple windows to access information, but they are only shown the functions

and queues to which they have access. This has helped us safeguard the

confidential data of our customers.”

He concludes, “After observing the success of Wonders we have planned

to automate the remaining processes in our organisation and have decided to go

in for customer-centric value-adds to the existing solution. Our future innovation

67


strategy includes the implementation of a real-time dashboard with key

operational and business health indicators that will help the top management

monitor and gain on cost arbitrage or revenue pools.”

CONTACT DETAILS:

Website: http://www.hdfcinsurance.com/

Toll free Number:

Phone:1800 228 228

Mumbai Head Office:

HDFC Standard Life Insurance Company Limited,

'Trade Star', 2nd floor, 'A' Wing,

Junction of Kondivita and M.V. Road,

Andheri-Kurla Road, Andheri (East), Mumbai - 400 059.

Phone: 91- 22 - 2822 0055

Fax: 91 -22- 2822 9998

Bhopal Branch:

HDFC Standard Life Insurance Co. Ltd.,

'1st Floor, Star Planet, Plot No. 9, Zone II, M. P. Nagar,

Bhopal - 462 011 Phone: 91-755-400 66665

68

http://www.hdfcinsurance.com/


FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

Board Members

Brief profile of the Board of Directors

Mr. Deepak S Parekh is the Chairman of the Company. He is also the

Executive Chairman of Housing Development Finance Corporation Limited

(HDFC Limited). He joined HDFC Limited in a senior management position in

1978. He was inducted as a whole-time director of HDFC Limited in 1985 and

was appointed as its Executive Chairman in 1993. He is the Chief Executive

Officer of HDFC Limited. Mr. Parekh is a Fellow of the Institute of Chartered

Accountants (England & Wales).

Mr. Keki M Mistry joined the Board of Directors of the Company in

December, 2000. He is currently the Managing Director of HDFC Limited. He

joined HDFC Limited in 1981 and became an Executive Director in 1993. He was

appointed as its Managing Director in November, 2000. Mr. Mistry is a Fellow of

the Institute of Chartered Accountants of India and a member of the Michigan

Association of Certified Public Accountants.

Mr. Alexander M Crombie joined the Board of Directors of the Company

in April, 2002. He has been with the Standard Life Group for 34 years holding

various senior management positions. He was appointed as the Group Chief

Executive of the Standard Life Group in March 2004. Mr. Crombie is a fellow of

the Faculty of Actuaries in Scotland.

69


Ms. Marcia D Campbell is currently the Group Operations Director in the

Standard Life group and is responsible for Group Operations, Asia Pacific

Development, Strategy & Planning, Corporate Responsibility and Shared

Services Centre. Ms. Campbell joined the Board of Directors in November 2005.

Mr. Keith N Skeoch is currently the Chief Executive in Standard Life

Investments Limited and is responsible for overseeing Investment Process &

Chief Executive Officer Function. Prior to this, Mr. Skeoch was working with M/s.

James Capel & Co. holding the positions of UK Economist, Chief Economist,

Executive Director, Director of Controls and Strategy HSBS Securities and

Managing Director International Equities. He was also responsible for Economic

and Investment Strategy research produced on a worldwide basis. Mr. Skeoch

joined the Board of Directors in November 2005.

Mr. Gautam R Divan is a practising Chartered Accountant and is a Fellow

of the Institute of Chartered Accountants of India. Mr. Divan was the Former

Chairman and Managing Committee Member of Midsnell Group International, an

International Association of Independent Accounting Firms and has authored

several papers of professional interest. Mr. Divan has wide experience in auditing

accounts of large public limited companies and nationalised banks, financial and

taxation planning of individuals and limited companies and also has substantial

experience in structuring overseas investments to and from India.

Mr. Ranjan Pant is a global Management Consultant advising

CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a

70


Partner & Vice-President at Bain & Company, Inc., Boston, where he led the

worldwide Utility Practice. He was also Director, Corporate Business

Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an

MBA from The Wharton School and BE (Honours) from Birla Institute of

Technology and Sciences.

Mr. Ravi Narain is the Managing Director & CEO of National Stock

Exchange of India Limited. Mr. Ravi Narain was a member of the core team to

set-up the Securities & Exchange Board of India (SEBI) and is also associated

with various committees of SEBI and the Reserve Bank of India (RBI).

71


COMPETITORS

72


The following are the main competitors of the HDFC Standard Life

Insurance :

Bajaj Allianz

Bajaj Life Insurance co. Ltd.

Reliance Life Insurance Ltd.

Products & Services of Bajaj Allianz Life Insurance :

Bajaj Allianz life Insurance Co. ltd. is offering many individual & group plans.

Individual Plans

Group Plans

Insurance of NRI’s

Individual Plans:

Century Plus

“Score a century with your investment plan”

“Unit Gain Plus Gold”

A plan that is flexible eternal and precious Just the gold.

“Pension Guarantee”

A plan that ensures you regular income after retirement

House holder Policy :

Bajaj Allianz provides unique comprehensive fire insurance for your own

home & its contents including theft, breakdown & repair for equipments in your

home with high priority clams services throughout the country. your home is our

most valued possession an haven of safety. But is it really as safe as we would

73


like to believe? We at Bajaj Allianz realize your need to make your home as

secure in reality as it is in your mind. This is why we bring to you the House-

Holder’s Insurance policy designed to cover variousrisks and contingencies faced

by householder under a single policy.

Reliance :

Reliance Child Plan :

This insurance policy is designed for the people who wish to save money

for future period of time when there will be a recurring need for sub stand amount

of money. This is specially needed when the children of the insurance for some

professional course like engineering. Medical. MBA and to specialized fields.

Reliance Term Plan :

This policy is designed for those, who want only life cover for the

protection their family and do not themselves. it is useful in the case of business

firm which provide financial security for the future against the death of partner

loss of manpower.

74


MARKET PROFILE OF THE ORGANIZATION

HDFC Standard tapping corporate agency route

Our Bureau

KOCHI, Jan. 7

HDFC Standard Life Insurance is aggressively tapping the corporate

agency route in a bid to broadbase its distribution network and shore up its

customer base.

The insurer today announced its tie-up with the Kochi based JRG

Financial Services Pvt Ltd as its new corporate agency channel, after Indian

Bank and Union Bank.

Speaking on the occasion of the launch, Mr Paresh Parasnis, General

Manager, Distribution, said, "With the change in regulations for corporate agency,

we are now focusing on activating our relationships with distribution houses and

commercial banks. This tie-up will enable us to reach out to a large number of

customers in Kerala."

According to Mr Parasnis, the company proposes to broadbase its

distribution network through this route rather than opening up of branches across

the country. "We already have around 34 branches across the country but our

growth route will be via the corporate agency route. A lot of business is coming

up from say, B and C category towns and it is not feasible to open offices in

every such location," he said.

Mr Parasnis said that the company was not looking for agents, but was

attempting to tap an already existing base of customers.

75


A fully-owned subsidiary of JRG Associates Pvt Ltd, JRG Financial an

active member of NSE and NSDL, will now be marketing the life insurance and

pension products of HDFC Standard Life.

Commenting on the size of the market, Mr Parasnis said that in terms of

new business private players have around 9 per cent of the total market share in

comparison to life Insurance Corporation of India (LIC) which holds around 91

per cent of the market share. In terms of whole business, he said a fair size of

the market would be held by LIC alone.

According to the company, Life Insurance premium as a percentage of

gross domestic savings is expected to increase from 6-18 per cent over a 10-

year period.

Life insurance premium is expected to grow by about 18-20 per cent every

year with pension premium going up by about 20-30 per cent. With these

projected numbers, the number of policies in force will increase from about 10

crore to about 18 crore.

HDFC Standard Life is also talking to potential institutional partners in a

bid to strengthen its presence in rural and semi-urban areas.

DISCUSSION ON TRAINING

76


STUDENT’S WORK PROFILE (ROLE AND RESPONSIBILITIES)

At HDFC Standard Life Insurance Corporation I worked as a Recruitment

Officer. I was dealing the persons to make them an Advisor to sell the different

Insurance Plans. I worked for some months, and I got a professional experience

of Marketing and I also sold so many insurance plans. I knew the customer

perception about company, marketing share of HDFC Standard Life Insurance

Corporation in Insurance Sector, Company's Functioning, Schemes and Services

provided by company and so many other things.

I was responsible for-

To increase the Sales of Insurance Plans.

Marketing activity for Kanpur region.

Customer survey, providing feedback to management for improvement.

Sales Promotion activities.

WORK EXPERIENCE

77


HDFC Standard Life Insurance Corporation is a professionally managed

company. During my training in starting I was nervous in customer dealing,

customer interaction and responding in customer queries. But after some time I

got confidence and become able to deal the customers. During Training period I

worked as a marketing executive. I was responsible to sell the Insurance Plans of

HDFC Standard Life Insurance Corporation. During my job I worked very hard, I

tried to perform better to get professional experience. My seniors were more

knowledgeable and experienced. I learned so many things from them. During the

Job I found that the customers dealing is a very interesting work.

I understood the attitude and perception of customers about company.

After some time I knew that any professional course is incomplete without on the

job training. On the job training is very important for professional courses.

LEARNING EXPERIENCE

78


There are so many thing, which can not be learned by theory, live

customer dealing, marketing and so many aspects come in practical training. At

HDFC Standard Life Insurance Corporation I learned so many things; I got

professional experience, which can not be gained with practical job. HDFC

Standard Life Insurance Corporation is a well diversified company and it offers so

many good insurance schemes, and increasing their customers 10 millions.

Customer dealing gives a confidence and maturity, without this today it is very

typical to survive in any company in present scenario.

Statement of Research Objective

To gain familiarity with a phenomenon or to achieve a new insights

into it.

To portray accurately the characteristics of a particular individual,

79


situation or a group.

To determine the frequency with which something occurs or with

which it is associated with something else.

To test a hypothesis of a causal relationship between variables.

Organization Name : HDFC Standard Life Insurance

Corporation

WEBSITE : www.hdfcinsurance.com

Identification of problem

The first step determines the problem of market research .The marketing

researcher like marketing decision maker looks problem identification as fixed

step in his work.

Preliminary exploration and the situation analysis

While identification the problem the market research commences his

preliminary exploration of data sources that might help him gain insight into the

nature of problem. Preliminary exploration as a situation analysis.

Developing research design

Research design- blue print of the research work and when it implemented

must bring out information required for method of data collection, the method of

sampling, amount of time, and money to spend.

80

http://www.hdfcinsurance/


Data collection

Data is the fundamental foundation of all marketing research the data may

be collected form various sources. It may be either primary or secondary.

Analysis and interpretation of data

The data collection through research are compiled and tabulated for the

purpose of statistical techniques of classification

Preparing the research report

The report represents the end of the research process. The types of report

will vary a great deal depending on the nature of the project and the audience for

which it is prepared.

RESEARCH DESIGN AND METHODOLOGY

The purpose of the methodology section is to describe the research

procedure.

Research design

Every research project conducted scientifically has a specific frame work

for the data collection. This framework is called research design. Their function is

to ensure that data are collected accurately and economically.

In marketing research project mainly there are two types of research design

81


1. Exploratory research: It is used when little is known about the giver

research area and hypothesis cannot be formulated.

2. Conclusively research: Decision taking on certain of action.

Types of statistical data

i. Study of primary data

ii. Study of secondary data

DATA ANALYSIS AND FINDINGS

Life insurance industry grew by 21 percentages with

LIC and private player mopping up Rs. 4437 crore in the first three learn

months 2005-2006 according to agency reports.

Private players expending business by 73

percentages while state owned LIC grew by 10.2 percentage.

Fueled by aggressive growth the private players have

now concerned over 25 percentage of the life insurance market till June 2005

compared to 17.61% a year ago in terms of premium income from fresh

business as per data released by regulator IRDA LIC continues to shed

ground as its market share comedown to 74.87% till June 2005 as against

82.93% during the corresponding period last year.

82


LIC mopped up Rs.3322 crore in premium income

during April-June this fiscal year by selling 33.86-lakh policies.

To arrest the decline in the market share LIC is

planning to engage a large chunk of its 60000 odd 3 staff in selling products.

ICICI PRUDENTIAL topped the chart of private

players with a market share of 7.53% after logging a business growth of 51%

at Rs. 334 crore.

BAJAJ ALLIANZ was second with market share of

4.18% followed by HDFC STANDARD (3.2%), TATA – AIG (1.93%), BIRLA

SUN LIFE (1.84%) , SBILIFE (1.69%) , AND AVIVA (1.44%).

The year 1999 saw a revolution in the Indian insurance sector , as major

structural changes took place with theS ending of government monopoly and

passage of the “INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA) BILL, LIFTING ALL ENTRY RESTRICTION FOR PRIVATE

PLAYERS AND ALLOWING FOREIGN PLAYERS TO ENTER THE MARKET

WITH SOME LIMITS ON DIRECT FOREIGE OWNERSHIP.”

Though the exiting rule say that a foreign partner can 26% equity in an

insurance company, proposal to increase this limit to 49% is pending with the

government. Sine opening up of insurance sector in 1999, foreign investment of

8.7 billion has poured into the Indian market and 21 private companies has been

granted license.

83


The life insurance industry in India grew by an impressive 36% with

premium income form new business at Rs. 253.4 billion during year 2004 –05 .

Braving stiff competition from private insurers. This report “Indian insurance

industry, new avenues for growth 2012 “. Find that the market share of the state

behemoth LIC has clocked 21.87% growth in business at Rs.197.86 billion by

selling 2.4 billion new policy in 2004-2005. But this was still not enough to arrest

the fall in its market share as private players by 120% top up Rs. billion in 2004-

05 from Rs.24.29 billion in 2003-04.

Though the total volume of LIC business increased in the last fiscal year

2004-05 compared to the previous one its market share came down from 87.04

to 78.07, the 14 private insurers increased their market share about 13% to about

22% in a year time. The figure for the first two months of the fiscal year 2005-06

also speak of the growing share of the private insurer, the share of LIC for this

period has further come down to 75% while private players have grabbed over

24%. There are presently 12 general insurance companies with four public

sector companies and eight private companies in India. According to estimates,

private insurance companies collectively have a 10% share of the non-life

insurance market.

84


85


GROWTH RATE OT THE COMPANY :

COMPANY

Bajaj Allianz

ICICI PRUDENTIAL

HDFC STANDARD

KOTAK LIFE

PERCENTAGE

38.25%

35.79%

23.48%

28.25%

THE GROWTH RATE OF THE COMPANY

38.25%35.79%

23.48%28.25%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

1

BAJAJALLIANZ

ICICIPRUDENTIAL

HDFCSTANDARD

KOTAK LIFE

FINDING :

86


The growth rate of the Bajaj Allianz is the highest comparison to other company.

TOP MARKET PERFORMERS (Annualized Return):

CompanyBajaj Allianz

ICICI prudential

Dabur Aviva

HDFC Standard

Annualized Return48.16%

18.12%

28.54%

13.55%

48.16%

18.12%

13.55%

28.54%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

1

Top Market Performers

DABURAVIVA

HDFCSTANDARD

ICICIPRUDENTIALBAJAJALLIANZ

FINDINGS: Annualized Return (2005-2006) the Bajaj Allianz situated in the form of Top market performers comparison to other company

MARKET SHARE OF BAJAJ ALLIANZ IN KANPUR CITY:

87


COMPANY

ICICI Prudential

Bajaj Allianz

HDFC Standard

SBI Life

MARKET SHARE

32.11%

17.82%

14.49%

7.20

Market share in kanpur city

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%ICICIPRUDENTIAL

BAJAJ ALLIANZ

HDFCSTANDARD

SBI LIFE

CONCLUSION AND RECOMMENDATIONS

HDFC Standard Life Insurance Corporation the fasted growing and one of

the leading life insurance in the country, now reigns at no. Position form no. 6 at

88


the end of last financial year as per the latest IRDA result for the financial year

2004-05 setting standard in growth and steady progress in a short span of time it

has raced past Rs. 1001 crores GPW AND FYPro of 860 crores at an

accelerated growth rate of 380% as per the audited results for financial year

2004-05.

Market share of HDFC Standard Life Insurance Corporation has jumped

significantly form 0.95% in 2003-04 to 3.39% in 2004-05 almost a 4-fold leap.

While market share amonst the private life insurers, HDFC Standard Life

Insurance Corporation has ascended two fold from 7.3% in 2003-04 to 15.5% in

2004-05. Commenting on the occasion Mr. rahul bajaj, chairman HDFC Standard

Life Insurance Corporation said. We are very proud to achieved this result at

HDFC Standard Life Insurance Corporation which would have not been possible

with out the sustained and continuous effort of out highly motivate insurance

consultants.

The catalyst and chief architect for the turn around of HDFC Standard

commented this turn around is just not limited to superlative growth on the sales

side but in financial management and cost consciousness across department

and employ at all levels was even amazing as our capitals utilization is the most

efficient a amongst all Pvt. Life insurance company. Our paid up capital of Rs.

267 Cr. One of the lowest amongst large Pvt. life insurance company’s and still

generated new business worth 860 Cr. and increased out distribution to 300

towns. He further added this year we would be continuing our effort to reach out

89


to more towns to provide valuable benefits of life insurance and world class

products and service to common man and grow our market share in the towns

where we are already operation’.

QUESTIONNAIRE

1) NAME: -----------------------------------------------------------

2) ADDRESS:----------------------------------------------------------

3) CONTACT NO.----------------------------------------------------

4) OCCUPATION/NATURE OF JOB:---------------------------

90


5) DETAILS OF WORK:--------------------------------------------

6) DO YOU KNOW HDFC STANDARD LIFE INSURANCE?

(a) Yes (b) no (n )

7) HDFC Standard Life Insurance offers:-

(a) Only life insurance

(b) Only general insurance

(c) Life and general insurance

8) Have you taken and policy of life insurance of any company?

(a) Yes (b) no (n )

9) If yes, which company?

---------------------------------------------------------------

10) Are you satisfied with your present insurance company?

(a) Yes (b) no (n )

11) If no, then reason?

-----------------------------------------------------------------

12) If no, would you like to buy in near future?

(a) Yes (b) no (n )

13) What is your opinion about insurance company?

------------------------------------------------------------------

14) Which private insurance company is well know to you?

(a) HDFC Standard Life Insurance ( ) (B) SAHARA ( )

(C) ICICI PRUDENTIAL ( ) (D) BIRLA SUN LIFE

91


(e) OTHERS ( )

(15) Which insurance policy would you like to purchase?

(1) Traditional plan ( ) (2) Money back ( )

(3) unit Link Plan (4) Others ( )

(16) Are you satisfied with your insurance agent?

---------------------------------------------------------------------

(17) About the growth of the company?

(1) No. 1 performance fund with highest return 48.16%

(2) Superior to any other saving plan

(3) Stock market has risen by an average of 15%

(4) Tax relief

(1) Excellent (2) Very good

(3) Good (4) Average

18) Are you satisfy with service rendered by “HDFC STANDARD LIFE

INSURANCE” (If any suggestion for improvement)

19) Any problem with HDFC STANDARD LIFE INSURANCE?

------------------------------------------------------------------------------------------

20) Have ever any employee of HDFC STANDARD LIFE INSURANCE

approach to you for policy? If yes, when?

-------------------------------------------------------------------------------------------

21) Would you like work with HDFC STANDARD LIFE INSURANCE if you

get the offer?

92


------------------------------------------------------------------------------------------

22) two reference of your friends/ relatives who would to take a policy:-

Name Address Contact No.

(1)

(2)

Date: Signature

BIBLIOGRAPHY

SEARCH ENGINE:

S.No. SEARCH ENGINE TIME DATE

1. www.google.com 03.30 pm 12.10.2008

2. www.yahoo.com 04.00 pm 16.10.2008

WEBSITES:

93


1. www.hdfc.com 01.30 pm 12.10.2008

2. www.hdfcstandardlifeinsurane.com 01.30 pm 12.10.2008

3. www.relainceinsurance.com 2.20 pm 16.10.2008

4. www.bajajallianze.com 3.20 pm 16.10.2008

BOOKS:

By – Philip Kotler Marketing Management page -54

By – R.P. Rustagi Financial Management page-35

By – K. Aswathappa Human Resource &

Personnel Management page-49

94

Date post:	27-Oct-2014
Category:	Documents
Upload:	pradeep-sharma
View:	152 times
Download:	5 times

Project on HDfC Life Insurance

Documents