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A Project Study Report On

Training Undertaken at

Titled
ANALYSIS OF THE AN!IN" SER#I$ES OF HS $ %ITH $O&PERISSION OF OTHER AN!S Submitted in partial fulfillment for the Award of degree of &a'ter o( u'ine'' Ad)ini'tration

ARYA COLLEGE OF ENGINEERING & IT

Submitted By: DAKSH SHARMA MBA Part-IV SEM

Submitted To:Dr. MANISH SHRIVASTAV

2008-2010
*

PREFACE
Theories are being developed, designed and stated on the groundwor o! their pra"ti"al i#ple#entation and usage$ %or e&perien"e see#s to be #ore e!!e"tive and indispensable !a"tor o! #a ing an individual an adept$ This is be"ause one "annot do without being e&posed to var'ing "ir"u#stan"es and possible "onse(uen"es$ Training not onl' develops individual s ills and abilities but also provides pro!i"ien"' in wor per!or#an"e$ This report is a "on"rete !or# o! the nowledge that was a"(uired during su##er training in the ban that is part o! two 'ear !ull ti#e #anage#ent progra##ed$ )t e#phasi*es on learning b' doing$ The training paves the wa' !or su""ess!ul entran"e in the "orporate world !or students$ ) have studied and e&plored saving a+" and invest#ent pro"ess o! the ban , its #ar et share in the ,odhpur #ar et and wa's o! in"reasing its #ar et share$ )t was reall' a great opportunit' getting pra"ti"al insight o! the #ar et$ )nitiall' ) !elt that "lassroo# stud' was irrelevant and to useless in an' "on"ern-s wor ing, but graduall' ) reali*ed all the basi" !unda#ental "on"epts studied are lin ed in one or the other wa's to the organi*ation$ Further it "ould be said that theor' and pra"ti"al training are supple#entar' to ea"h other and help in drawing #eaning!ul "on"lusion and it-s .ust a #atter o! #odi!'ing the theor', so as to appl' in to given a pra"ti"al solution$ ) sin"erel' believe that there is no better pla"e to learn the pra"ti"al side o! #anage#ent studies than the industr' itsel!$ %ith the data that was "olle"ted ) have tried #' best to provide so#e !ruit!ul suggestions and re"o##endations$

Acknowledgement

) e&press #' sin"ere than s to #' pro.e"t guide /r$0anish 1hrivastav, !or guiding #e right !or# the in"eption till the su""ess!ul "o#pletion o! the pro.e"t$ ) sin"erel' a" nowledge hi# !or e&tending their valuable guidan"e , support !or literature , "riti"al reviews o! pro.e"t and the report and above all the #oral support she had provided to #e with all stages o! this pro.e"t$ ) would also li e to than s the supporting sta!! !or their help and "ooperation throughout our pro.e"t$

21ignature o! 1tudent3

4a#e o! the 1tudent

EXECUTIVE SUMMERY
The #ain ob.e"tive o! this report is to stud' the wealth #anage#ent produ"ts o! 516C and "o#pare the# with that o! other ban s$ The stud' in"ludes a "o#petitive anal'sis o! the di!!erent t'pes o! produ"ts being o!!ered b' the ban s, their target "usto#ers, the servi"es the' render and the e&tra !a"ilities that the' provide to their "lients$ As various e#plo'#ent s"he#e are also wor ing with ban to upli!t the e&isting e"ono#i" status$ )n a nutshell, it provides e#plo'#ent, #one' #anage#ent, interest in"o#es and lo" ers !a"ilities to eep sa!e our pre"ious things and provide #an' other value added servi"es$ )t provides a broad view regarding various ban ing !a"ilities, "hallenges and dealings with "usto#ers$ 6esides this ad#inistrative stru"ture o! ban was also anal'*ed the report to understand the !un"tioning o! the sa#e at various levels$ The ti#e has gone when people had !ewer options to invest their surplus7 ban s these da's are o!!ering a range o! "usto#i*ed produ"ts to attra"t invest#ents !ro# the publi"$ The "usto#er is the ing in the industr' and ever' ban whether publi", private or !oreign, is o!!ering best servi"es and !a"ilities$ %ealth 0anage#ent is one o! the hottest potential in the #ar et, whi"h is ai#ed at providing the !inan"ial planning and invest#ents servi"es to the 5igh 4et %orth )ndividuals$ These "lients are treated as the privileged "usto#ers o! the ban , with #an' e&"lusive servi"es$ 8n one hand where there-s great "at and dog!ight !or "lients, 516C is one o! the leading pla'ers in this "ategor' on the other, with #an' other ban s in the !oreign and private se"tors$ )t is one o! the !astest e#erging ban s in )ndia with its strong !oothold b' 191 'ears o! its e&isten"e$ 516C leads in Treasur', Custod' : Clearing 25113 and Trade, with strong position in C)6 and 0utual !unds$ ;ast but not the least7 516C has wider hori*ons !or engaging the 06A students in a better and hope!ul pro!ession$

)4/E<
Cover page Acknowledgement Pre ace E"ec#t$ve S#mmar% C'(TE(TS) 1* I(TR'+UCTI'( T' T,E I(+USTRY 2* I(TR'+UCTI'( T' T,E 'R.A(I/ATI'( ,S0C t1e world23 local 4ank !* RESEARC, MET,'+'5'.Y !*1 TIT5E '7 T,E STU+Y !*2 '08ECTIVE '7 T,E STU+Y !*! TYPE '7 RESEARC, !*& SAMP5E SI/E A(+ MET,'+ '7 SE5ECTI(. SAMP5E !*9 SC'PE '7 STU+Y !*- 5IMITATI'( '7 STU+Y &* 9* -* 6* :* <* A(A5YSIS A(+ I(TERPRETATI'( S;'T A(A5YSIS C'C5USI'( = REC'MME(+ATI'( ,'; ,S0C IS RES,API(. APPE(+IX 0I05I'.RAP,Y :1 <: 1>! 1>: 1>< 111 61& 1 2 ! &

I(TR'+UCTI'(

0A(?I(. I(+USTRY
The )ndian ban ing industr' is passing through a phase o! "usto#ers #ar et$ The "usto#ers have #ore "hoi"es in "hoosing their ban s$ A "o#petition has been established within the ban s operating in )ndia$ %ith sti!! "o#petition and advan"e#ent o! te"hnolog', the servi"es provided b' ban s have be"o#e #ore eas' and "onvenient$ The past da's are witness to an hour wait be!ore withdrawing "ash !ro# a""ounts or a "he(ue !ro# north o! the "ountr' being "leared in one #onth in the south$

7act 7$le3 o 0ank$ng $n I(+IA


The !irst ban in )ndia to be given an )18 "erti!i"ation Canara 6an and 1ind

The !irst ban in 4orthern )ndia to get )18 =002 "erti!i"ation !or Pun.ab their sele"ted bran"hes The !irst )ndian ban "apital 6an

to have been started solel' with )ndian Pun.ab 6an

4ational

The !irst a#ong the private se"tor ban s in >erala to be"o#e a 1outh )ndian 6an s"heduled ban in 1=?@ under the R6) A"t )ndiaAs oldest, largest and #ost su""ess!ul "o##er"ial ban , 1tate 6an o! )ndia o!!ering the widest possible range o! do#esti", international and 4R) produ"ts and servi"e, through its vast networ in )ndia and overseas )ndiaAs se"ond largest private se"tor ban s and is now the The Federal 6an largest s"heduled "o##er"ial ban in )ndia / ;i#ited

6an

whi"h started as private shareholders ban s, #ostl' )#perial )ndia

6an

o!

Europeans shareholders

The !irst )ndian ban to open a bran"h outside )ndia in ;ondon in 6an o! )ndia, 1=?@ and the !irst to open a bran"h in "ontinental Europe at !ounded in 1=0@ in Paris in 1=B? 0u#bai The oldest Publi" 1e"tor 6an in )ndia having bran"hes all over Allahabad 6an )ndian and serving the "usto#ers !or the lest 1C2 'ears The !irst )ndian "o##er"ial ban whi"h was wholl' owned and Central #anaged b' )ndians )ndia 6an o!

(E; .E(ERATI'( 0A(?I(.


The liberali*e poli"' o! Dovern#ent o! )ndia per#itted entr' to private se"tor in the ban ing, the industr' has witnessed the entr' o! nine new generation private ban s$ The #a.or di!!erentiating para#eter that distinguishes these ban s !ro# all the other ban s in the )ndian ban ing is the level o! servi"e that is o!!ered to the "usto#er$ Eeri!' the !o"us has alwa's been "entered on the "usto#er F understanding his needs, pree#pting hi# and "onse(uentl' delighting hi# with various "on!igurations o! bene!its and a wide port!olio o! produ"ts and servi"es$ These ban s have generall' been established b' pro#oters o! repute or b' Ghigh value- do#esti" !inan"ial institutions$ The popularit' o! these ban s "an be gauged b' the !a"t that in a short span o! ti#e, these ban s have gained "onsiderable "usto#er "on!iden"e and "onse(uentl' have shown i#pressive growth rates$ Toda', the private ban s "orner al#ost !our per "ent share o! the total share o! deposits$ 0ost o! the ban s in this "ategor' are "on"entrated in the high-growth urban areas in #etros 2that a""ount !or appro&i#atel' B0H o! the total ban ing business3$ %ith e!!i"ien"' being the #a.or !o"us, these ban s have leveraged on their strengths and "o#peten"ies vi*$ 0anage#ent, operational e!!i"ien"' and !le&ibilit', superior produ"t positioning and higher e#plo'ee produ"tivit' s ills$ The private ban s with their !o"used business and servi"e port!olio have a reputation o! being ni"he pla'ers in the industr'$ A strateg' that has allowed these ban s to "on"entrate on !ew reliable high net worth "o#panies and individuals rather than "ater to the #ass #ar et$ These well-"hal ed out integrates strateg' plans have allowed #ost o! these ban s to deliver superlative levels o! personali*ed servi"es$ %ith the Reserve 6an o! )ndia allowing these ban s to operate B0H o! their businesses in urban areas, this statutor' re(uire#ent has translated into lower deposit #obili*ation "osts and higher #argins relative to publi" se"tor ban s$

0USI(ESS '7 0A(?I(.


6an ing, in a traditional sense is the business o! a""epting deposits o! #one' !ro# publi" !or the purpose o! lending and invest#ent$ These deposits "an have a distin"t !eature o! being withdraw able b' "he(ues, whi"h no other !inan"ial institution "an o!!er$ )n addition to this ban s also o!!er various other !inan"ial servi"es also whi"h in"ludeI )ssuing /e#and /ra!ts : Travelers Che(ues Colle"tion o! Che(ues, 6ills o! e&"hange 1a!e /eposit ;o" ers )ssuing ;etters o! Credit : ;etters o! Duarantee 1ale and Pur"hase o! Foreign E&"hange Custodial 1ervi"es )nvest#ent servi"es The business o! ban ing is highl' regulated sin"e ban s deal with #one' o!!ered to the# b' the publi" and ensuring the sa!et' o! this publi" #one' is one o! the pri#e responsibilities o! an' ban $ That is wh' ban s are e&pe"ted to be prudent in their lending and invest#ent a"tivities$ The #a.or regulations and a"ts that govern the ban ing business areI 6an ing Regulations A"t Reserve 6an o! )ndia A"t Foreign E&"hange Regulation 2A#end#ent3 A"t, 1==C )ndian Contra"t A"t 4egotiable )nstru#ents A"t 6an s lend #one' either !or produ"tive purposes to individuals, !ir#s, "orporate et"$ or !or bu'ing house propert', "ars and other "onsu#er durable and !or invest#ent purposes to 2

individuals and others$ 5owever, ban s do not !inan"e an' spe"ulative a"tivit'$ ;ending is ris ta ing$ The ris should be "overed b' having prudent nor#s !or lending$ The depositors o! ban s are also assured o! sa!et' o! their #one' b' deplo'ing so#e per"entage o! deposits in statutor' reserves li e 1;R : CRR$

*3

5)1T8RJ 8F 6A4>)4D )4 )4/)A


0odern ban ing developed in the west, in response need to industriali*e along a "apitalist path$ )t is elaborated pro"edures institutionali*ed lending$ 0one' "ir"ulation in"reased with the provision o! various #one' deposit s"he#es b' the ban s$ %hile Kshau ariL pra"ti"ed #odern ban ing has developed strong roots$ There are several t'pes o! ban ing in our "ountr'$ At the ape& is the reserve ban o! )ndia, with powers to regulate the entire ban ing s'ste#, print "urren"', e&tend loans to the govern#ent, and !or#ulate "redit poli"'$ 4e&t "o#es the state ban o! )ndia and its subsidiaries$ Then there are the nationali*ed ban s, whi"h are publi" se"tor underta ings$ Mnder the new e"ono#i" regi#e, private ban s are on"e again "o#ing up in a big wa'$ Co-operative ban s have also been set up$ ;o"al area ban s in addition to "redit thri!ts so"ieties !or#ed b' the sta!! o! govern#ent depart#ents are be"o#ing popular$ At the dawn o! independen"e, hundred o! the ban s were in operation, o!ten n b' uns"rupulous #anage#ents$ )n 1=?=, the govern#ent o! )ndia too two #a.or steps$ The !irst was the ena"t#ent o! the ban ing regulation a"t, whi"h gave regulator' powers to R6) the )ndian ban ing s'ste#, grew not onl' geographi"all' but also stru"turall'$ 5owever, the nu#ber o! s"heduled ban s "a#e down !ro# =? to B@ over the sa#e period$ Their deposit rose !ro# Rs 8?C "rore in 1=90-91 to Rs 2,029 "rore in 1=@=-B0$ Ti#e deposits, as did personal a""ounts "o#p aired to business a""ounts during the sa#e period$ The s9tste ban o! )ndia was setup in 1=99$ Eight regional ban s were nationali*ed in 1=@0 and had to open new o!!i"es in se#i urban and rural areas$ The'-re !or their relative share in total deposits in"reased$

**

Nationalization of banks
The need !or and #ode o! so"ial "ontrol over ban s is re(uired in order to prevent a #onopol' and he" oligopolisti" pra"ti"e was debated $1? "o##er"ial ban Rs with deposits worth Rs 90 "rore were nationali*ed in 1=@=$ The ob.e"tive o! the nationali*ation o! the ban s as stated b' 0rs$ )ndira Dandhi, !or#er pri#e #inister o! )ndia wereI Re#oval o! "ontrol b' !ew$ Provision !or ade(uate "redit to the agri"ulture se"tor, s#all industries and e&ports$ Diving a pro!essional trust to the #anage#ents o! ban s$ En"ouraging a new "lass o! entrepreneurs$ Provision o! ade(uate training as well as better ter#s o! servi"e to ban sta!!$

The ban ing "o#panies a"(uisition and trans!er o! underta ing a"t, 1=@= spelt out o! ob.e"tives o! and reasons !or nationali*ation as !ollows, K the ban ing s'ste# tou"hes the lives o! #illions and has to be inspired b' a large purpose and has to subs"ribe to national priorities and ob.e"tives su"h as rapid growth in agri"ulture, s#all industries and e&ports raising o! e#plo'#ent level, and the develop#ent o! ba" ward "lasses$ For this purpose it is ne"essar' !or govern#ent to ta e dire"t responsibilit' !or e&tension and diversi!i"ation o! ban ing servi"es and !or the wor ing o! substantial part o! the ban ing s'ste#$L The establish#ent o! national ban !or agri"ulture and rural develop#ent in 12==2 was another #ilestone in ban ing$ The e&port and i#port ban was setup in 1=82 to loo a!ter the !inan"ial needs o! the e&porters and i#porters$ )n re"ent 'ears there has been pheno#enal growth in ban ing se"tor and "ontinuing re!or#s have ensured their "o#petitiveness, viabilit' and pro!itabilit'$ The Cash Reserve Ratio 2C$R$R$3 "uts have in"reased li(uidit' and now enough lend able resour"es and the ban s have redu"ed their Pri#e ;ending Rates 2P$;$R$3$ The overall negative growth rate o! publi" se"tor ban s is a #atter o! "on"ern$ The total non-per!or#ing assets o! )ndian ban s have been ta en to ta" le these proble#s$ )n re"ent 'ears there has been a pheno#enal growth in ban ing servi"es and a"tivities$

*+

STRUCTURE OF BANKS IN INDIA

Structure of banks in India

Scheduled Banks

Non-Scheduled Banks

State Cooperative Banks

Commercial Banks

Central Cooperative Banks

Commercia l Banks

Public Sector B

Private Sector Banks

*,

A0'UT ,S0C
,S0C ) T1e world@3 local 0ank

5ead(uartered in ;ondon, 516C is one o! the largest ban ing and !inan"ial servi"es organi*ations in the world$ 516CAs international networ "o#prises around =,900 o!!i"es in 89 "ountries and territories in Europe, the Asia-Pa"i!i" region, the A#eri"as, the 0iddle East and A!ri"a$ %ith listings on the ;ondon, 5ong >ong, 4ew Jor , Paris and 6er#uda sto" e&"hanges, shares in 516C 5oldings pl" are held b' around 200,000 shareholders in so#e 100 "ountries and territories$ The shares are traded on the 4ew Jor 1to" E&"hange in the !or# o! A#eri"an /epositar' Re"eipts$ Through an international networ lin ed b' advan"ed te"hnolog', in"luding a rapidl' growing e-"o##er"e "apabilit', 516C provides a "o#prehensive range o! !inan"ial servi"esI personal !inan"ial servi"es7 "o##er"ial ban ing7 "orporate, invest#ent ban ing and #ar ets7 private ban ing7 and other a"tivities$

*-

0#3$ne33 Pr$nc$ple3 And Val#e3 The 516C "orporate "hara"ter de!ines the values
and prin"iples inherent in all our ever'da' dealings$ T5E 584D>84D : 15A4D5A) 6A4>)4D C8RP8RAT)84 ;)0)TE/ 2516C3 /one Ea3t 0ranc1 5ocat$on >ol ata 0u#bai Ah#edabad Pune ;e3t Thane Eadodara )ndore 4apier 4ew /elhi Durgaon Chandigarh (ort1 4oida ,aipur ,odhpur ;udhiana (o* o 0ranc1e3 B 10 1 2 1 1 1 9 1 1 1 1 1 1 2

Chennai >o"hi Coi#batore So#t1 6angalore 5'derabad Trivandru# Eisa hapatna# 0'sore Total *.

1 1 2 1 1 1 1 1 ?9

.ro#p ,$3tor%

*/

The 561C Droup has an international pedigree, whi"h is uni(ue$ 0an' o! its prin"ipal "o#panies opened !or business over a "entur' ago and the' have a histor', whi"h is ri"h in variet' and a"hieve#ent$ The 516C Droup is na#ed a!ter its !ounding #e#ber, The 5ong >ong and 1hanghai 6an ing Corporation ;i#ited, whi"h was established in 18@9 to !inan"e the growing trade between China and Europe$

,S0C .ro#p Str#ct#re


*0

516C holding is a publi" holding "o#pan' in"orporated in England and %ales$ 5ead(uartered in ;ondon, the 516C group operates in !ive regionsI Europe7 5ong >ong7 the rest o! Asia Pa"i!i"7 in"luding the 0iddle East and A!ri"a7 4orth A#eri"a7 and 1outh A#eri"a$

The entities in whi"h !or#s the 516C DR8MP1 , provide a "o#prehensive range o! !inan"ial servi"es to personal, "o##er"ial, "orporate, institutional and invest#ent, and private ban ing "lients$ To #ore easil' pro#ote the Droup as a whole, 516C was established as a uni!or#, international brand na#e in 1===$ in 2002, 516C laun"hed a "a#paign to di!!erentiate its brand !ro# those o! its "o#petitors b' des"ribing the uni(ue "hara"teristi"s, whi"h distinguish 516C, su##ari*ed b' the words GThe world-s lo"al ban -$

M$33$on = Strateg$e3
M$33$on
*1

5ead$ng in our "hosen #ar ets +el$ver$ng an outstanding "lient e&perien"e based on e&"ellen"e in sales, servi"e and solutions Ac1$ev$ng a superior, ethi"all' based, long-ter# return !or our shareholders 0#$ld$ng highl' #otivated, high-per!or#an"e tea#s Creat$ng a "hallenging, rewarding and !un wor environ#ent

Strateg$e3

People Attra"t, retain and reward top per!or#ers E"ec#t$on Per!or# with s ill and speed C#3tomer)Centred Alwa's provide e&"eptional "usto#er servi"e E $c$enc% ;ower our "osts and use resour"es wisel' Pro $ta4le .rowt1 Drow sales and in"rease our revenues Cred$t A#al$t% 0aintain "redit (ualit' and understand our role in #anaging losses 'wner31$p 8wn our per!or#an"e and our results

*2

,S0C I( I(+IA

T1e M#m4a$ Bt1en 0om4a%C o $ce ' Merc1ant$le 0ankD 1<9>

T1e ,ead ' $ce o ,S0C Ind$aD $n M#m4a$D 2>>2

+3

,IST'RYE
189CI The 0er"hant 6an o! )ndia, ;ondon : China F in 6o#ba' 1=98I The 0er"hantile 6an o! )ndia a"(uired globall' b' The 5ong ong 1hanghai 6an ing Corporation 1=@=I 1? #a.or private se"tor ban s nationali*ed 2 !urther @ in 1=803 1=8CI The 5ong ong and 1hanghai 6an ing Corporation too over the )ndian bran"hes and business o! the 0er"hantile 6an $ 2000I Establish#ent o! 516C Ele"troni" /ata Pro"essing 2)ndia3 Private ;i#ited 25/P)3 2002I Establish#ent o! 516C 1o!tware /evelop#ent 2 )ndia 3 Private ;i#ited 2D;T3 200CI 190 'ears o! presen"e in )ndia 200?I Pur"hase o! 1?$@H sta e in MT) and

The ante"edents o! the 516C Droup in )ndia "an be tra"ed ba" to 8"tober 189C when the 0er"antile 6an o! )ndia, ;ondon and China were !ounded in 6o#ba' 2now 0u#bai3$ 1tarting with an authori*ed "apital o! Rs$ 9 #illion, the 0er"antile 6an soon opened o!!i"es in ;ondon, 0adras 2Chennai,3 Colo#bo and >and', !ollowed b' Cal"utta 2>ol ata3, 1ingapore, 5ong >ong, Canton 2Duang"how3 and 1hanghai b' 1899$ The !ollowing hundred 'ears where in #an' wa's propitious !or the 0er"antile 6an $ )n 1=90 it #oved into its new head o!!i"e building in 0u#bai at Flora Fountain$ The a"(uisition in 1=9= b' The 5ong >ong and 1hanghai 6an ing Corporation ;i#ited o! the 0er"antile 6an was a de"isive !a"tor in la'ing the !oundation !or toda'As 516C Droup$ Founded in 18@9 to serve the needs o! the #er"hants o! the #er"hants o! the China "oast and !inan"e the growing trade between China, Europe and the Mnited 1tates, 516C has been an international ban !ro# its earliest da's$

+*

A!ter the 0er"antile 6an the 516C Droup in )ndia$

was a"(uired b' The 5ong >ong and 1hanghai 6an ing

Corporation, the Flora Fountain building be"a#e and re#ains to this da', the 5ead 8!!i"e o!

Through the 1==0s, 516C has vigorousl' developed its role as one o! the leading ban ing and !inan"ial servi"es organi*ations in the world$ )ts strateg' o! A#anaging !or valueA e#phasi*es the DroupAs uni(ue balan"e o! business and earnings between older, #ature e"ono#ies and !aster-growing e#erging #ar ets$ 516C in )ndia is proud to have retained the DroupAs pioneering strea b' being an a"tive partner in the develop#ent o! the )ndian ban ing industr'-even giving )ndian its !irst AT0 wa' ba" in 1=8B$ The organi*ationAs adaptabilit', resilien"e and "o##it#ent to its "usto#ers have !urther enabled it to servi"e through turbulent ti#es and prosper through good ti#es over the past 190 'ears$

++

A;AR+S A(+ REC'.(ITI'(


1$ 6est Foreign Co##er"ial 6an in )ndia Finan"e Asia Awards F 2000, 2001, 2002, 200C, 200? 2$ Eoted as 4o$ 1 6an in 1ervi"e Nualit' and 6rand Fa"ilities in the 8utloo 0one' F C!ore 1urve' 200? C$ Eoted K1a!est 6an in )ndiaL b' a 6usiness Toda' F >P0D 1urve' F 200C, 200? ?$ 6est 6an in )ndia Asset Triple A Countr' Award !or 200C 9$ Eoted as 6est Cash 0anage#ent 6an in )ndia Asia 0one' poll "ondu"ted !or 200C @$ Eoted as 6est 1ub- Custodian in )ndia in a poll "ondu"ted b' Asia0one' !or 200C,200? B$ Eoted Top Rated 4o$ 1 1ub- Custodian b' Dlobal Custodian 0aga*ine surve' 200C 8$ A0)4 F ?th C46C 0utual Fund o! the Jear Award !or 200C =$ 6est per!or#an"e in the open ended /iversi!ied E(uit' 1"he#e F /e!ensive F 516C E(uit' Fund F 200C, 200? 2 one 'ear "ategor'3, 2009 2 three 'ear "ategor'3 10$ 516C Asset 0anage#ent 2)ndia3 Private ;i#ited 2A0)43 was de"lared the G)ndia Fund 5ouse o! the Jear !or 200?- b' Asian )nvestor 0aga*ine$

+,

PR'+UCTS '7 ,S0C

At 516C, regardless o! 'our age, in"o#e or !inan"ial goals, we have an a""ount to !it 'our parti"ulars need$ Fro# a basis savings a""ount, to integrated servi"es to #eet 'our wealth #anage#ent ob.e"tives, we have a ban ing !a"ilit' that suits 'our spe"i!i"ations$

)ntrodu"tion 516C Pre#ier Power Eantage 1aving a""ount Fi&ed deposit +-

1#art 0one' a""ount Cluster deposits Certi!i"ate o! deposit /ebit "ards )nsuran"e

8ur wide range o! liabilit' servi"e help 'ou better #anage 'our #one' and translate into greater "onvenien"e and !le&ibilit'$ 8ur goal is to !ul!ill 'our re(uire#ent and o!!er 'ou the best value o! #one'$

+.

,S0C PREMIER
A prem$#m 3erv$ce or %o#E i##ediatel' re"ogni*ed globall' and given priorit' whenever 'ou "onta"t the 6an $ 8ur range o! pre#iu# servi"es isI 516C Pre#ier is one-to-one relationship ban ing whi"h will dra#ati"all' "hange and si#pli!' the wa' 'ou handle 'our !inan"es toda'$ 0anaging 'our !inan"ial port!olio will be #ore "onvenient with our range o! highl' personali*ed, "o#prehensive, ti#e saving and rewarding !a"ilities and servi"es$ As an 516C pre#ier "usto#er, 'ou will be

Dedicated Relationship Manager I Jour 516C Pre#ier Relationship #anager will


be 'our single point "onta"t with the 6an and will #anage 'our !inan"ial port!olio through "usto#i*ed solutions$

Financial Planning ServicesI Jou will have a""ess to the servi"es o! an 516C
Pre#ier Relationship 0anager or a Finan"ial Planning 0anager, who will provide assistan"e and spe"ialist advi"e on 'ou invest#ent port!olio and o!!er re"o##endations on wealth "reation and #anage#ent$

Exclusive HSBC Premier CentersI Jou will have assessed to dedi"ate 516C
pre#ier Centres around the world$

Broking Services: 0ade available through 516C 1e"urities and Capital 0ar ets
2)ndia3 Pvt$ ;i#ited$

en!ext account "or childrenI 1e"ure 'our "hildAs !uture with 516CAs Den4e&t
a""ount 2spe"ial a""ount !or "hildren3$ This *ero balan"e 1avings a""ount o!!ers a range o! bene!its, su"h as 1'ste#ati" )nvest#ent Plan 21)P3, to se"ure 'our "hildAs !uture and also a /ebit "ardOO$ +/

!o#$ounce che%ue protection whi"h #eans, "he(ues presented through "learing,


will be honored 2overdrawing o! a #a&i#u# o! Rs$ 100,0003

High cash &ithdra&al limit o! Rs$ 100,000 per da' !ro# and 516C+E)1A AT0
worldwide$

HSBC Premier Master Card Credit Card 7 An e&"lusive pre-approved Credit


"ard, with a #ini#u# li#it o! Rs$ 200,000, whi"h provides a""ess to the 516C Droup AT0s as well as the 0aster Card AT0s in )ndia and overseas$

Special HSBC Premier De$it cardI A""ess to "ash at over 10,000 516C and
E)1A AT0s in )ndia and over @B0,000 516C and E)1A AT0s a"ross the world$ Jou "an use 'our /ebit "ard !or pur"hases up to Rs$ 29,000 per da' at over 19,000 #er"hant establish#ents in )ndia and over 10 #illion su"h establish#ents overseas$

'nlimited "ree transactions


2Cash withdrawals and balan"e en(uires3 at over 10,000 516C and E)1A AT0s in )ndia, using 'our 516C Pre#ier /ebit "ard$ Free che%ue $ook &ith Che%ues Pa(a$le at Par )CPP* in the "ities where 516C has bran"hes$ +ith Home $anking 'ou "an en.o' the "onvenien"e o! getting "ash delivered, "he(ues and /e#and dra!ts delivered and pi" ed up at 'our doorstep via spe"ial "ourier$

,-#hour $ankingI Through Phone 6an ing and )nterest ban ing$

As an 516C Pre#ier "usto#er, 'ou will also en.o' a host o! other world-"lass servi"es$

+0

Eligibilit'
Available to both Resident and 4on-resident )ndian )ndividuals aged 18 'ears or above, at a #ini#u# average (uarterl' relationship balan"e o! Rs$ 29, 00,000$ Resident )ndian )ndividualsI The relationship balan"e in"ludes a "o#bination o! deposits or invest#ents and loans, o! whi"h a #ini#u# o! Rs$ 20, 00,000 is to be held in deposits or invest#ents 20utual Funds3 pur"hased through the 6an $ 4on-resident )ndian )ndividualsI The relationship balan"e "o#prises o! Rs$ 29, 00,000 in deposits with the 6an $

+1

P';ER VA(TA.E

Advantage3 3o 3pec$alD t1e% almo3t 3eem #n a$r


5aving a Power Eantage a""ount entitles 'ou to our e&"lusive attention and #an' reserved privileges$ 1o e&"lusive, in !a"t, the' al#ost see# un!air$ Mnli#ited !ree transa"tions 2"ash withdrawals and balan"e en(uiries3 at over 10,000 516C and E)1A AT0s in )ndia, using 'our Power Eantage /ebit "ard$ /edi"ated 1ervi"e /es and Teller Counters to assist 'ou with 'our ban ing needed$

Finan"ial Planning 1ervi"es to assist 'ou in planning 'our !uture invest#ents and insuran"e needs$

+2

Den4e&t a""ount !or "hildrenI 1e"ure 'our "hildAs !uture with 516CAs Den4e&t a""ount 2spe"ial a""ount !or "hildren3$ This *ero balan"e 1avings a""ount o!!ers a range o! bene!its, su"h as 1'ste#ati" )nvest#ent plan 21)P3, to se"ure 'our "hildAs !uture, and also a /ebit "ardOO$

Free "he(ues boo with "he(ues Pa'able at Par 2CPP3 in all "ities where 516C has bran"hes$

4o-boun"e "he(ue prote"tionI %hi"h #eans, "he(ues presented through "learing, will be honored 2overdrawing o! a #a&i#u# o! Rs$ 10,0003$

,oining !ee waiver and 90H o!! on the annual !ees o! 'our Credit "ard$

Pre!erential pro"essing !ees on 5o#e loans and Personal loans$ 5igher "ash withdrawal li#it o! Rs$ 90,000 and !unds trans!er up to Rs$ 100,000 per da' with 'our Power Eantage /ebit "ard, in )ndia or overseas$

516C Power Eantage /ebit "ardI use 'our /ebit Card !or pur"hases o! up to Rs$ 19,000 per da' at over 19,000 per da' at over 19,000 #er"hant establish#ents in )ndia and over 10 #illion su"h establish#ents overseas$

2?-hour ban ing a""ess through Phone ban ing and internet ban ing$

Routine pa'#ents su"h as rent and s"hool !ees, et"$, #ade on 'our behal!$

%ith ho#e ban ing 'ou "an en.o' the "onvenien"e o! getting "ash delivered, "he(ues and /e#and dra!ts delivered and pi" ed up at 'our doorstep at no#inal rates$

0onthl' "o#posite state#ent whi"h gives 'ou a snapshot o! all deposits, loans and invest#ents$ ,3

E5I.I0I5ITY
Resident )ndian )ndividuals aged 18 'ears or above$

0aintain an overall average (uarterl' balan"e o! Rs$ 100,000 as a "o#bination o! deposits and loans 5o#e loan !ro# 516C or hold a #ini#u# invest#ent o! Rs$ 900,000 pur"hased through 516C$

,*

,+

Convenien"e 6an ing


0aintain a #ini#u# average (uarterl' balan"e o! Rs$ 29,000$

%ithdraw "ash up to Rs$ 29,000 per da' with 'our /ebit "ard !ro# over 10,000 516C or E)1A AT0s in )ndia and over @B0,000 su"h AT0As overseas$

Jou "an use 'our debit "ard !or pur"hases up to Rs$ 10,000 per da' at over 19,000 #er"hant establish#ents in )ndia and 10 #illion su"h establish#ents overseas$

Jou have !ull a""ess to !unds in 'our a""ounts !ro# the 516C bran"h in the "it' where 'ou #aintain 'our a""ount$ Jou "an withdraw up to Rs$ 10,000 per da' !ro# an' 516C bran"h in the "ities other than those where 'ou #aintain 'our a""ount 2s3$

Earn interest on 'our 1avings a""ount on a (uarterl' basis$

Free (uarterl' a""ount state#ent$ 5igher !re(uen"' o! state#ent at a no#inal "harge$

Free personali*ed "he(ue boo $

%ith 2?-hour Phone ban ing, 'ou "an #a e balan"e en(uires, trans!er !unds, re(uest a "he(ue boo or state#ent and #u"h #ore, with .ust one phone "all$

%ith )nternet ban ing, 'ou "an a""ess 'our a""ount !ro# an'where in the world$ Che" #ouse$ 'our balan"e, trans!er #one' and do #u"h #ore, all with the "li" o! the

%ith 5o#e ban ing, 'ou "an en.o' the "onvenien"e o! getting "ash delivered, "he(ues and /e#and dra!ts delivered and pi" ed up at 'our doorstep at no#inal rate$

Avail o! a .oining !ee waiver on 516C Credit "ards$ ,,

)n addition, routine pa'#ents su"h as rent and s"hool !ees, et"$, are #ade on 'ou behal!O$

Eligi4ility Resident )ndian )ndividuals

1hould #aintain an overall average (uarterl' balan"e o! Rs$ 29,000 to ensure a se"ure !uture$

,-

F)<E/ /EP81)T
0ini#u# a#ount to open a !i&ed deposit is Rs$ 10,000$

Custo#er "onvenien"e and !le&ibilit' due to a range o! #aturities o!!ering "o#pletive interest rates$

0ini#u# tenure is 19 da's and the #a&i#u# tenure is 9 'ears$

Two t'pes o! Fi&ed depositsI a$ b$ .rdinar(I where is interest is trans!erred to 'our savings+"urrent a""ount on a (uarterl' basis$ CumulativeI %herein 'our interest is added to 'our prin"ipal (uarter$ Jou earn interest on interest$ 8n #aturit', the entire a#ount is given to 'ou b' trans!erring it to 'our 1aving A""ount or b' /e#and dra!t$

5igh returns with se"urit' !or !unds$

2?-hour Phone ban ing servi"es$

8ption to avail o! the 1#art0one' a""ount !a"ilit'$

Eligibilit'
Resident )ndian individuals, 5MF, Proprietorships, ;i#ited Co#panies, Trusts, Partnership, 1o"ieties+Clubs+Asso"iations$ 0ini#u# /eposits o! Rs$ 10,000$

,.

Fle&ible !i&ed a""ounts


Fle&ibilit' o! 1avings A""ounts with the interest o! a !i&ed deposit$ Jour 1#art0one' a""ount is a two-in-one a""ount with an overdra!t !a"ilit' against 'our !i&ed deposit$ Jou "an withdraw =0H o! the !i&ed deposit lin ed to the 1avings+Current a""ount, without brea ing 'our !i&ed deposits$ Jou are "harged interest on the a#ount that 'ou withdraw and onl' !or the ti#e 'ou utili*e the overdra!t$

'verdra t 5$m$t 8verdra!t o! less than or e(ual to Rs$ 200,000 8verdra!t li#it o! over Rs$ 200,000

Intere3t rate 2H over the deposit interest rate 6an As pri#e lending rate

E"ampleE %hen 'ou deposit Rs$ 29,000 in 'our 1#art0one' a""ount !or one 'ear and withdraw Rs$ 9000 on the da' on whi"h 'ou open 'our a""ount, here in what 'ou gain within a 'ear$ +epo3$t Amo#nt w$t1drawn SmartMone% acco#nt earn$ng3 p*a* Rs$ 29,000 Rs$ 9,000 F 9G Rs$ 1,290 Intere3t c1arged on w$t1drawal3 p*a* F 6G Rs$ C90 Rs$ =00 Yo#r ga$n

0ini#u# deposit o! Rs$ 29,000P$

Det high returns and a !ree 1avings or "urrent a""ount$

A""ess to 'our !unds an' ti#es through our AT0s, Phone ban ingQ, )nternet ban ing or 'our "he(ue boo $

,/

A""ess to "ash !ro# over 10,000 516C or E)1A AT0s in )ndia and @B0,000 su"h AT0s overseas, through 'our /ebit "ard$ Jou "an #a e pur"hases !ro# over 19,000 #er"hant establish#ents in )ndia and 10 #illion su"h establish#ents overseas$

Free standing instru"tions$

Free (uarterl' a""ount state#ent$

Eligibilit' Resident )ndian )ndividuals, Partnership !ir#s, 1ole proprietorship and 5MF$

,0

C5USTER +EP'SITS

EnHo% l$I#$d$t% pl#3 1$g1 ret#rn3


516CAs "luster deposit lets 'ou en.o' the best o! both worlds$ 4ot onl' does 'our #one' earn interest at a !i&ed deposit rate, but 'ou also get the li(uidit' o! a 1avings+Current a""ount$ %hen 'ou open an 516C "luster deposit, 'our #one' is held in "lusters o! Fi&ed deposits$ %hen 'ou withdraw #one' or issue a "he(ue, onl' the re(uired nu#ber o! "lusters are en"ased to "over the withdrawal$ The balan"e "ontinues to earn Fi&ed deposit interest$ Freedo# to issue "he(ues without lo" ing 'our !unds$ Even i! there is inade(uate balan"e in 'our 1avings+Current a""ount, 'our "he(ue will be honoured as long as 'ou have su!!i"ient !unds as Cluster Fi&ed deposit2s3, b' auto#ati"all' trans!erring !unds !ro# 'our Cluster Fi&ed deposit2s3 to 'our savings+"urrent a""ount$ A""ess to 'our !unds through Che(ue boo , /ebit "ard, )nternet ban ing or Phone ban ing$

Eligibilit' Resident )ndian )ndividuals aged 18 'ears or above$

0aintain a #ini#u# o! Rs$ 29,000 in 'our Cluster Fi&ed deposit 2s3 and open a 1avings+Current a""ount in "ase 'ou do not alread' have su"h an a""ount$

,1

CERT)F)CATE 8F /EP81)T
Earn interest in advan"e
The "erti!i"ate o! deposit 2C/3 !a"ilit' wor s .ust li e a !i&ed deposit, but has the additional !eatures o! 2a3 being negotiable, and 2b3 issued in de#ateriali*ed !or#$ The' are issued at a dis"ount to !a"e value$ The #ini#u# lot !or a Certi!i"ate o! deposit is Rs$ 100,000 and #ultiples thereo!$ All Certi!i"ates o! deposit are now issue in de#at !or# e&"ept !or 4R)s, where the' are issued in ph'si"al !or#$ Ten#re ) A Certi!i"ate o! deposit is issued !or a period not less than 19 da's and not e&"eeding 1 'ear !ro# the date o! issue$ Trans!er 0e"hanis# - Certi!i"ates o! deposit held in a ph'si"al !or# are !reel' trans!erable b' endorse#ent and deliver'$ Those in de#at !or# "an be trans!erred as per the pro"edure appli"able to other de#at se"urities$

El$g$4$l$t%
Resident )ndian )ndividuals, 5MF, Proprietorships, Private ;i#ited Co#panies, Trusts, Partnerships, 1o"ieties+Clubs+Asso"iations$ 4on-resident )ndians 24R)s3 #a' also subs"ribe to C/s on a non-repatriable basis onl'$ The /ebit "ard represents that !uture o! #one' and gives 'ou unli#ited a""ess to 'our 1avings+Current a""ounts with 516C$

,2

A""ess up to C deposit a""ounts on /ebit "ard !ro# over 10,000 516C or E)1A AT0s in )ndia and !ro# over @B0,000 su"h AT0s a"ross the world$ Pur"hase "apabilit' at 19,000 #er"hant establish#ents in )ndia and at 10 #illion su"h establish#ents overseas$

Mnli#ited FREE AT0 transa"tions at non-516C E)1A AT0s 2516C Pre#ier and Power Eantage "usto#ers onl'3$

Two FREE AT0 transa"tions per #onth at other ban E)1A AT0s 2/ebit Card Plus "ardholders onl'3$

Fee (uarterl' ite#i*ed state#ent o! a""ount 2#onthl' !or 516C Pre#ier and Power Eantage "usto#ers3$

Rero ;ast Card ;iabilit' )nsuran"e$

El$g$4$l$t%
Resident or non-resident 2E&ternal3, )ndividual or .oint, QAn'one or 1urvivorQ 1avings+Current a""ountholders onl'$

-3

0USI(ESS 0A(?I(.

>eeping in #ind var'ing needs, 516C has designed di!!erent pa" ages !or the "usto#ers$

0USI(ESS VA(TA.E
+ra t3 - Free dra!ts pa'able at an' 516C bran"h in )ndia

0#3$ne33 P1one 0ank$ng - A""ess to ban a""ont, 2? hours a da', B da's a wee at "onvenien"e, without a"tuall' stepping into ban $ A stateFo!Fart servi"e that is se"ure and eas'-to-use$

Internet 0ank$ng or 0#3$ne33e3 - )t allows 'ou to "arr' out 'our ban ing transa"tions an'where in the world, an'ti#e o! the da'$ %ith the "li" o! a button 'ou "an "he" 'our a""ounts, #a e trans!ers, pa' 'our regular bills 2#obile, ele"tri"it' et"$3 re(uest !or a dra!t, #a e routine a""ount en(uires and #u"h #ore$

C1eI#e3 Pa%a4le at par - En.o' the bene!its o! issuing "he(ues !or pa'#ent in an' "it' where 516C has a bran"h$ -*

0#3$ne33 +oor3tep 0ank$ng - %h' rush to the ban when "ash, "he(ues and dra!ts "an be pi" ed up !ro# or delivered to 'our o!!i"eS

2&)1o#r C1eI#e +epo3$t 7ac$l$t% - /eposit "he(ues, "redit "ard pa'#ents and instru"tions in 516C deposit bo&es, at an' o! their "onvenientl' lo"ated AT0s$

ATM card - Custo#ers "an withdraw up to Rs$1 la h per da' !ro# their 6usiness Eantage a""ount and a""ess their a""ount 2? hours a da', through a wide networ o! over 190 516C AT0s in )ndia$

Telegrap1$c Tran3 er3 - Trans!er !unds between a""ounts held with an' 516C bran"h a"ross the "ountr', !ree o! "harge$ Telegraphi" trans!ers to other ban s in "ities in )ndia where 516C has a bran"h "an be done at a no#inal rate$

A#to 3weep - Custo#ers "an trans!er e&"ess o! their "ash to a !i&ed deposit, it "an be done at no "ost$

Stand$ng In3tr#ct$on3 - Custo#ers "an #a e re"urring pa'#ents, b' issuing standing instru"tions to have !i&ed a#ounts paid to pre-de!ined parties, at absolutel' no "ostT

Per3onal$Jed C1eI#e3 - 6oo as a 6usiness Eantage "usto#er 'ou will have the bene!it o! a !ree personali*ed "he(ue boo $

M#lt$)0ranc1 0ank$ng Custo#er "an operate his a""ount !ro# an' bran"h in his "it' and "ondu"t "ertain transa"tions at an' o! 516C bran"hes a"ross the "ountr'$

(o 0o#nce C1eI#e Protect$on - 516C o!!ers it-s "usto#ers a Gno boun"e Gli#it o! up to Rs$1 la h on "he(ues issued !ro# the "usto#er-s 6usiness Eantage a""ount$

Cl#3ter +epo3$t - A Cluster /eposit A""ount !or businesses gives its "usto#ers interest earned at Ter# deposit rates and the li(uidit' o! a Current + 1avings A""ount -+

$To avail o! this !a"ilit', .ust ensure a #ini#u# "o#bined average (uarterl' balan"e o! Rs$C la hs$ This in"ludes the #ini#u# balan"e o! the "usto#er-s Current + 1avings A""ount, plus his !i&ed deposits$ The #ini#u# !i&ed deposit that "an be lin ed to his Current + 1avings a""ount is Rs$29, 000$ Rap$d C1eI#e Clearance ) Che(ues drawn on over 89 lo"ations are "redited to the "usto#er-s a""ount within B wor ing da's$ 516C also provide rapid "olle"tion o! "he(ues drawn on a !urther 1,000 lo"ations through the ban -s "orrespondent ban ing arrange#ents$ Mont1l% Statement - 516C eeps a tra" o! the "usto#er-s !inan"es with a #onthl' state#ent$ Mse the internet !or !re(uent updates$ Sav$ng Acco#nt or Emplo%ee3 - )t has si#pli!' salar' a""ount pa'#ents b' using G GAutopa' G to dire"tl' "redit salaries to the e#plo'ees- a""ounts$ Trade Serv$ce3 - 516C o!!ers its lo"al e&pertise and global rea"h in handling "usto#er-s trade business, in"luding the "o#plete range o! servi"es that would !a"ilitate the "usto#er in his e&port and i#port$ These in"lude /C Con!ir#ation, E&port 6ill 4egotiation, /o"u#entar' Colle"tions and Re#ittan"es$ Cred$t card3 - )t en.o's worldwide a""eptan"e and spe"ial !eatures li e enhan"ed insuran"e bene!its, travel bene!its at spe"ial rates, 6onus Rewards Progra##e, global AT0 servi"e and up to ?8 da's o! interest !ree "redit with the "redit "ard !ro# 516C$ The detailed billing s'ste# will help the "usto#er to eep tra" o! his e&penditure$ ,oining !ee shall be waived !or 6usiness 6an ing "usto#ers$ M#t#al 7#nd Serv$ce3 - )nvest in a pre-sele"ted group o! #utual !unds, !or whi"h 516C provides a""ount opening assistan"e, in!or#ation on !und per!or#an"e and a!ter sales servi"e$ -,

In3#rance - 6usiness Eantage in asso"iation with reputed insuran"e providers insures the "usto#er-s business against

1$ Fire 2$ 0one'-in-sa!e C$ Publi" liabilit'

+epo3$tor% Serv$ce3 - En.o' the "onvenien"e o! eeping 'our shares in ele"troni" !or#$

--

0USI(ESS ACC'U(T
516C also has a 6usiness A""ount whi"h o!!ers a wide range o! produ"ts and servi"es$ As a 6usiness A""ount "usto#er all that is re(uired is to #aintain an average (uarterl' "urrent a""ount balan"e o! Rs$29, 000

0USI(ESS SE5ECT
/esigned !or d'na#i" and growing business, 6usiness 1ele"t o!!ers a host o! e&"lusive privileges and servi"es that help the "usto#ers to #anage their business, ti#e and "ash !lows #ore e!!i"ientl'$ As a 6usiness 1ele"t "usto#er the person is entitled to spe"ial relationship ban ing !a"ilities in"luding a Relationship 0anager$

-.

'T,ER PR'+UCTS '7 ,S0C


5'C?ER
At 516C, spe"ial "are is ta en to eep the valuables o! the "usto#ers sa!el', so that the' also "an have pea"e o! #ind$ For this various si*es o! lo" ers are available to suit the re(uire#ents o! the "usto#er at di!!erent "harges$ Canara 516C 8riental 6an o! Co##er"e ;i!e )nsuran"e Co#pan' ;i#ited )ntrodu"es the Canara ,S0C 5$ e Un$t 5$nked ;1ole 5$ e Plan, a uni(ue invest#ent lin ed plan whi"h not onl' ensures prote"tion and invest#ent returns but also "overs 'ou till age == 'ears$ The Plan allows 'ou the !le&ibilit' o! "hoi"e on a#ount o! "over and !le&ibilit' o! investing in !und options #at"hing 'our ris pro!ile and needs as well as ;i#ited Pa' 8ptions to suit 'our !inan"ial "apabilities$

,S0C Inve3tment3
516C invest#ent is the invest#ent #anager to 516C #utual !und, laun"hed in 4ove#ber 2002, 51C #utual !und help "lient assets o! Rs$ B,9@= "rores as on C1 #a', 2009 sin"e its in"eption, 516C 0utual Fund has been one o! the !astest growing #utual !unds in the "ountr'$ Strengt13 o ,S0C $nve3tment3: 1$ 2$ C$ ?$ 9$ @$ Reputation : !inan"ial strength with a global outloo $ Fo"used invest#ent e&pertise !or industr', se"tor : sto" sele"tion de"isions$ 1trong : "onsistent invest#ent per!or#an"e$ Ris "ontrol to enhan"e sa!et' o! invest#ents Client servi"e "o##it#ent Transparen"' using te"hnolog' : the !ull range o! #edia

-/

T%pe3 o #nd3 rom ,S0CE 516C E(uit' !und 516C )ndia opportunities !und 516C 0id"ap e(uit' !und 516C )n"o#e !und 516C 0onthl' in"o#e plan 516C Dilt !und 516C Floating rate !und 516C Cash !und

S%3temat$c Inve3tment Plan BSIPC


A s'ste#ati" invest#ent plan is an invest#ent vehi"le that allows the "usto#er to invest a#ounts o! #one' at regular intervals o! ti#e 2#onthl' or (uarterl'3 in a #utual !und s"he#e !or a "ontinuous pre- de!ined periodI .ust li e a re"urring deposit a""ount with a ban or a post o!!i"e 516C 1)P allows the investor to invest a !i&ed a#ount ever' #onth or (uarter !or pur"hasing units o! s"he#es at prevailing 4AE based pri"es$ 1ip "an be a"tivated b' giving post-dated "he(ues !or the duration o! the sip o! b' using an auto debit !a"ilit' where a !i&ed a#ount is debited !ro# 'our ban a""ount on a #onthl'+(uarterl' basis$ Advantage3E 1$ 2$ )n"ul"ates a dis"iplined invest#ent approa"h that builds a saving habit$ Allows rupee "ost averaging, whi"h ta es advantage o! #ar et volatilit'$ -0

C$ ?$

Prevents senti#ent-driven invest#ents Allows invest#ent in s#all a#ount$

;EA5T, MA(A.EME(T

%hat is %ealth 0anage#entS


%ealth derives !ro# the old English word KwealL, whi"h #eant Kwell-beingL or Kwel!areL$ K%ealth has "o#e to #ean an abundan"e o! e"ono#i" value, or the state o! "ontrolling or pro"essing su"h ite#s, and en"o#passes #one', real estate and personal propert'$L T1e termK ;ealt1 ManagementK 1a3 4een de $ned a3 t1e coord$nat$on o a cl$ent23 $nve3tmentD ta" and e3tate plan3 $nto a compre1en3$ve plan to ac1$eve t1e$r per3onal goal3* %hat distinguishes their servi"es !ro# other t'pe o! !inan"ial advisors7 e#phasi*e the uni(ueness o! their "lient relationships- relationships that are $road in ter#s o! en"o#passing all areas o! a "lient-s !inan"ial li!e and deep with respe"t to the advisor-s inti#ate nowledge o! a "lient-s values and priorities$ %ealth 0anage#ent is the s'nthesis o! a diverse range o! !inan"ial servi"es that a!!luent investors their !a#ilies #a' re(uire$ /e!inition o! %ealth 0anage#ent, given b' various wealth #anagers are as !ollowsI K%ealth 0anage#ent is a "o#prehensive and "ohesive s'ste# ai#ed at a""u#ulating and growing assets, preserving and prote"ting assets and transitioning assets$L %ealth 0anage#ent is the abilit' to engage in all aspe"ts o! our "lient-s !inan"ial situations$L

-1

K%ealth 0anage#ent is the abilit' to help people "reate, i#ple#ent and #onitor li!e plans$L %ealth 0anage#ent is the #ost dis"ussed servi"e in retail !inan"ial servi"es toda'$ The servi"e epito#i*es the "on"ept o! providing a "usto#er-"entri" approa"h to the provision o! !inan"ial servi"es$ The ulti#ate goal o! wealth #anage#ent is to build long-ter# relationships with "lients b' helping the# rea"h their goals over the "ourse o! their li!eti#es$ A!!luent individuals o!ten need sophisti"ated advi"e and strategi" guidan"e to "apitali*e on the opportunities to preserve, grow and trans!er their wealth$ )n addition, a desire e&ists within wealth' !a#ilies to si#pli!' the #anage#ent o! #ultigenerational #eets and lessen the pro!ound e#otional i#pa"t o! wealth on !a#il' #e#bers$ Toda'-s wealth #anage#ent te"hnolog' is largel' !o"used on the !inan"ial advisor$ The ra"e a#ong !ir#s o!!ering wealth #anage#ent servi"es is to attain the status o! trusted advisor, who a"ts as the "lient-s pri#ar' advisor and "oordinates the a"tivities o! other advisor, with who# the "lient #a' also have a relationship$ A""ording to /avid 6eatt', K%ealth #anagers don-t have to do ever'thing the#selves- but the' do #a e sure ever'thing gets done$L Finan"ial Advisor "an provide "o#prehensive, integrated wealth #anage#ent strategies to address 'our wealth #anage#ent needs li eI-

1* Plann$ng
;eaving a lega"' /ire"ting assets 8pti#i*ing philanthropi" aspirations /isposition o! uni(ue assets Fa#il' business su""ession 0ini#i*ing ta& i#pa"t

2* R$3k management
Preserving "apital K0oneti*eL "on"entrated positions /iversi!' e&posure to "on"entrated positions /e!er ta& i#pli"ations o! a sale Prote"ting assets

!* Adv$3or% Serv$ce3
0anaging an art "olle"tion Curatorial servi"es Fa#il' governan"e and edu"ation

&* 5end$ng
-2

Daining li(uidit' Finan"ing business needs Asset a"(uisition or !inan"ing 0anaging "on"entrated holding$

9* A33et Management
Dross asset allo"ation Drowth o! "apital Ta& sensitive asset #anage#ent Alternative invest#ents Private e(uit'

,$g1l$g1t3 o ;ealt1 ManagementE)


a3 T1e wealt1 management $nd#3tr% $3 grow$ng ver% rap$dl%) %ealth #anage#ent as an organi*ed industr' is growing in ter#s o! both the nu#ber o! pla'ers as well as the nu#ber o! high net worth individuals in )ndia$ %ealth #anagers are aggressivel' #ar eting their servi"es to e&isting and potential high net worth "lients$ %ith the nu#ber o! "lients growing, wealth #anager are ra#ping up their "apabilities to #anage growing volu#es o! assets$ b3 Cl$ent3 are 4ecom$ng $ncrea3$ngl% 3op1$3t$cated) %ealth #anagers in )ndia believe that high net worth "lients are be"o#ing #ore sophisti"ated in their understanding and de#ands o! wealth providers, produ"ts and servi"es$ 0an' need a Relationship 0anager to proa"tivel' assist the# in #anaging their wealth$ %ealth #anagers need to ensure that the' are e(uipped with spe"ialist s ills and e&perien"ed sta!! to handle sophisti"ated "lient needs$ "3 T1ere $3 a 31ortage o 3k$lled and e"per$enced wealt1 management adv$3or3) The de#and !or trained and talented wealth #anage#ent pro!essionals is in"reasing as the industr' "ontinues to e&perien"e growth$ Relationship #anagers are re(uired to have a sound nowledge o! a wide range o! produ"ts and servi"es a"ross asset "lasses being o!!ered to high net worth "lients$ d3 Mo3t wealt1 manager3 1ave adopted an open prod#ct arc1$tect#re) 0ost wealth #anagers are #oving be'ond in- house produ"ts and are distributing produ"ts and servi"es sour"ed !ro# other providers e$g$ third part' #utual !unds, !i&ed in"o#e produ"ts et"$ %ealth #anagers are !o"using on their "ore "o#peten"ies and outsour"ing produ"ts and servi"es to "o#ple#ent their in-house o!!erings e$g$ real estate, art advisor', ta&ation advisor' et"$ .3

e3 Mo3t wealt1 manager3 a$m to 4e Ltr#3ted adv$3or32 to t1e$r cl$ent3) 8pen produ"t ar"hite"ture enables wealth #anagers to o!!er their servi"es as a Gtrusted advisor- to "lients and o!!er unbiased wealth #anage#ent servi"es$ A trusted advisor is "apable o! o!!ering a "o#prehensive range o! in-house and third part' produ"ts and servi"es and provision o! proa"tive and ob.e"tive advi"e based on in-depth !inan"ial planning$ )n ter#s o! their strategi" orientation, #ost wealth #anagers that parti"ipated in the surve' believed that the' were alread' their "lients- trusted advisors or would be within the ne&t three 'ears$ 0ost wealth #anagers !o"using on the ultra high net worth seg#ent are pursuing a "o#petitive strateg' based on di!!erentiation$ 8ther wealth #anagers !o"using on the #ass a!!luent seg#ent are pursuing a "ost leadership strateg'$ !3 T1ere $3 relat$vel% low #3age o tec1nolog% tool3 4% wealt1 manager3) )60 6usiness Consulting 1ervi"es believes that te"hnolog' pla's a ver' i#portant role enabling the Relationship 0anager to provide e!!e"tive servi"es to the "usto#er$ There is a need !or s'ste#, whi"h provides a single view o! the "usto#er-s entire wealth port!olio with the wealth provider$ %hile #ost pla'ers provide a "onsolidated view through a "o#bination o! auto#ated and spreadsheet appli"ations, there are signi!i"ant variations in their abilit' to provide online, real-ti#e a""ess$ Additionall', as the #ass a!!luent seg#ent "ontinues to grow in )ndia, there is need !or online !inan"ial planning tools to assist this seg#ent o! "lients, eager to be in "ontrol o! their port!olio and a"tive in sele"ting andU or validating their sele"tion o! produ"ts in line with their asset allo"ation strateg'$

.*

I(STRUME(TS U(+ER ;EA5T, MA(A.EME(T

Ta" Plann$ng

E5SS In3#rance

Inve3tment Plann$ng* M#t#al 7#nd3 P#re EI#$t% Real E3tate Commod$t$e3 T$me +epo3$t3 7$"ed $ncome 3ec#r$t$e3B .overnment 0ond3MSec#r$t$e3C

.+

TAX P5A((I(.

Ta& planning is not a devi"e to redu"e ta& burden$ )n !a"t, it help savings b' invest#ents in govern#ent se"urities$ 1avings redu"es e&travagan"e and "orresponding in!lation$ Ta& savings are per#itted onl' !or invest#ent #ade in govern#ent se"urities and bonds o! priorit' se"tors whi"h ulti#atel' help the nation$ There!ore, the savings in ta& help the "entral and state govern#ents to #obili*e !unds b' invest#ents and as su"h the govern#ent earns #u"h b' the wa' o! other bene!its, b' sa"ri!i"ing s#all a#ount o! ta&$ 1avings and invest#ent are inter"onne"ted$ 6e!ore #a ing invest#ents the person has to "onsider various !a"tors su"h asI ;i(uidit' F when he re(uires the a#ount to #eet the edu"ational e&penses o! "hildren, !or #arriage, house "onstru"tion or !or a se"ure !uture a!ter retire#ent$ 1e"urit' o! the invest#ent$ The return and ta& on in"o#e on su"h invest#ents$ .,

Equity Link ! Sa"in# S$% & 'ELSS(:) E(uit' lin ed saving s"he#es is savings s"he#es$ These are #utual !unds with ta& bene!its$ These are #irror i#age o! diversi!ied e(uit' !unds$ That #eans the !und #anager will invest in shares o! various "o#panies a"ross various industries$

Advantage3 o $nve3t$ng $n E5SSE


There is the added ta& bene!it whi"h a nor#al diversi!ied e(uit' !und will not have$ E;11 !unds have a lo" -in period o! three 'ears, whi"h prevents unne"essar' withdrawals and helps in growing the #one' over a period o! ti#e$ %hen we invest in e(uit', there is a need to ta e a long-ter# view$ The real potential starts to show onl' a!ter a !ew 'ears$ The returns are good in investing in E;11$ The earned dividends will be ta& !ree$ )t is stru"tured li e open-ended e(uit' !unds$ 1o investor "an invest at an' ti#e o! the 'ear$

.-

INSURANCE:)
)nsuran"e is a !or# o! "ontra"t whereb' periodi" pa'#ents 2also nown as insuran"e pre#iu#s3 are #ade to an insuran"e "o#pan', in order to provide an individual or business "o#pensation in the event o! propert' loss or da#age$ The t'pe and a#ount o! insuran"e an individual re(uires depends on age, assets, in"o#e and needs$ )nsuran"e is basi"all' a wa' o! repla"ing in"o#e$ Ris s "overed b' insuran"e areI 1$ Personal ris sI are the un"ertainties surrounding loss o! in"o#e or li!e due to pre#ature death, illness, disabilit', old age and une#plo'#ent$ 2$ Propert' ris sI are possibilities o! dire"t indire"t losses to personal or real properties due to !ire, windstor#s, other natural disasters, a""idents, the!t, other and other ha*ards$ C$ ;iabilit' ris sI are possible losses due to a"tions that results in bodil' har# or propert' da#age to others$ The har# or da#age "ould be "aused b' so#ething owned, li e a "ar or a pet or a in.ur' so#eone su!!ers on a propert' or the e!!e"ts o! pro!essional #is"ondu"t, a#ong other "auses$ All these t'pes o! pure ris whi"h are insurable, be"ause there is a "han"e o! loss onl' i! spe"i!ied events o""ur$ Pure ris s are a""idental and intentional ris s !or whi"h the nature and !inan"ial "ost o! the loss "an be predi"ted$ A 1pe"ulative ris is a ris in whi"h there is a "han"e o! either loss or gain$ 1tarting a s#all business that #a' or #a' not su""eed is an e&a#ple o! spe"ulative ris $ 1o is a ga#bling$ 1pe"ulative ris s are not legall' insurable$

..

T%pe3 o $n3#rance cover3E


1$ 5$ e $n3#ranceE substitutes !or in"o#e lost at the death o! the wage earner$ 2$ +$3a4$l$t% $n3#ranceE assures a "ontinued strea# o! in"o#e when isn-t able to wor !ullti#e$ C$ ,ealt1 $n3#rance "overs all #edi"al bills$ ?$ Propert% M"ausalit' poli"ies pa' !or losses "aused b' the!t, !ire and a""ident$ 9$ .eneral $n3#ranceE assures the !ull poli"' "over based onl' on the diagnosis o! 'our illness sub.e"t to poli"' ter#s and "onditions $ 5$ e $n3#ranceE) is one the #ost valuable aids to !inan"ial planning$ The #one' dependents re"eive is a i#portant !inan"ial resour"e$ There are !our basi" "lasses o! li!e insuran"e "ontra"tsI1$ Term $n3#ranceE) Ter# insuran"e is death prote"tion !or a spe"i!ied period o! ti#e$ )t has no "ash value or savings ele#ent and pa's out onl' i! the insured dies during the period "overed b' the poli"'$ This is the "heapest !or# o! li!e insuran"e be"ause it provides the #ost "overage !or the least #one'$ Thus it "an be seen that ter# insuran"e is nothing but the "ost o! pure prote"tion$ 2$ ;1ole 5$ e In3#ranceE) whole li!e insuran"e provides insuran"e "overage throughout the insured-s li!eti#e$ Pre#iu# paid "an be either !or a !i&ed ter# !or li!elong$ Two pri#ar' "hara"teristi"s distinguish per#anent li!e insuran"e plans !ro# ter# li!e insuran"e plansI %hole li!e poli"ies o!!er li!eti#e "overage$ %hole li!e poli"ies "ontain a savings ele#ent$ C$ P#re Endowment In3#ranceE) it provides a spe"i!ied bene!it a#ount whether the insured lives to the end o! the ter# o! "overage or dies during that ter#$ Ea"h endow#ent poli"' spe"i!ies a #aturit' date, whi"h is the date on whi"h the insurer will the poli"'-s !a"e a#ount + 2su# assured3, to the poli"' owner i! the insured is still living$ The #aturit' date is rea"hed either at the end o! a stated ter# or when the insured rea"hes a spe"i!ied age$ ?$ Ann#$t$e3E ) )t starts where li!e insuran"e ends$ )t is "alled the Greverse- o! li!e insuran"e$ )n general ter#s annuit' is a series o! periodi" pa'#ents$ )n annuit' "ontra"t, a person agrees to pa' to the insurer a spe"i!ied "apital su# either a single pre#iu# or a series o! pre#iu#s, in return !or a pro#ise !ro# the insurer to #a e a series o! pa'#ents to hi# so long as he lives$ The insurer pools the #one' it has re"eived !ro# a large group o! poli"'holders and it invests those pooled !unds$ The insurer uses ./

the pooled !unds and invest#ent earnings on those !unds to #a e periodi" annuit' bene!its as the' "o#e due

T%pe3 o $n3#rance compan$e3E


)nsuran"e "o#panies #a' be "lassi!ied asI ;i!e insuran"e "o#panies, who sell li!e insuran"e, annuities and pensions produ"ts$ 4on- li!e or general insuran"e "o#panies, who sell other t'pes o! insuran"e$

,ow an $n3#rance compan% make3 mone%E


Pro!itVearned pre#iu# W )nvest#ent in"o#e F in"urred loss - underwriting e&penses$

.0

I(VESTME(T P5A((I(.

+E7I(ITI'( '7 I(VESTME(T )nvest#ent re!ers to a "o##it#ent o! !unds to one or #ore assets that will be held over so#e !uture ti#e period$ Al#ost all individuals have wealth o! so#e ind, ranging !ro# the value o! their servi"es in the wor pla"e to tangible assets to #onetar' assets$ An'thing not "onsu#ed toda' and saved !or !uture use "an be "onsidered an invest#ent$

REAS'( 7'R I(VESTME(T %e invest to i#prove our !uture wel!are$ Funds to be invested "o#e !ro# asset alread' owned, borrowed #one', and savings or !oregone "onsu#ption$ 6' !orgoing "onsu#ption toda' and investing the savings, we a""ept to enhan"e our !uture "onsu#ption possibilities $Anti"ipated !uture "onsu#ption #a' be b' other !a#il' #e#ber, su"h as edu"ation !unds !or "hildren or b' our sel!, possibl' in retire#ent when we are less able to wor and produ"e !or our dail' needs$ Regardless o! wh' we invest we should all see to #anage our wealth .1

e!!e"tivel', obtaining the #ost !ro# it$ This in"ludes prote"ting our asset !ro# in!lation, ta&es and other !a"tors$

MET,'+ '7 I(VESTME(T )! we are #a ing invest#ent de"isions toda' that will dire"tl' a!!e"t our !uture wealth, it would #a e sense that we utili*e a plan to help and guide our de"ision$ 1urprisingl', the #a.orit' o! people do not have in pla"e an' t'pe o! !or#ali*ed invest#ent plan$ Ta ing so#e ti#e to put together a !inan"ial plan "an reap tre#endous bene!its $First, let-s de!ine planning$ Finan"ial planning is the pro"ess o! #eeting 'our li!e goals through the proper #anage#ent o! 'ours !inan"es$ ;i!e goals "an in"lude bu'ing a ho#e, saving !or 'our "hild-s edu"ation or planning !or retire#ent$ Finan"ial planning provides dire"tion and #eaning to 'our !inan"ial de"isions$ )t allows 'ou to understand how ea"h !inan"ial de"ision 'ou #a e a!!e"ts other area o! 'our !inan"es$ For e&a#ple, bu'ing a parti"ular invest#ent produ"t #ight help 'ou to pa' o!! 'our #ortgage !aster or it #ight dela' 'our retire#ent signi!i"antl'$ 6' viewing ea"h !inan"ial de"ision as part o! a whole, 'ou "an "onsider its short and long -ter# e!!e"ts on 'our li!e goals$ Jou "an also adapt #ore easil' to li!e "hanges and !eel #ore se"ure that 'our goals are on tra" $

PR'CESS '7 I(VESTME(T P5A((I(. These si& steps areI 1$ Establishing and de!ining the "lient-planner relationship$ 2$ Dathering "lient data, in"luding goals$ C$ Anal'*ing and evaluating 'our !inan"ial status$ ?$ /eveloping and presenting !inan"ial planning re"o##endations or alternatives$ 9$ )#ple#enting the !inan"ial planning re"o##endations$ @$ 0onitoring the !inan"ial planning re"o##endations$

C'MM'( MISTA?ES 1$ 2$ C$ ?$ 9$ @$ B$ 8$ =$ /on-t set #easurable !inan"ial goals$ 0a e a !inan"ial de"ision without understanding its e!!e"t on other !inan"ial issues$ Con!use !inan"ial planning with investing$ 4egle"t to re-evaluate their !inan"ial plan periodi"all'$ Thin that !inan"ial planning is onl' !or the wealth'$ Thin that !inan"ial planning is !or when the' get older$ Thin that !inan"ial planning is the sa#e as retire#ent planning$ %ait until a #one' "risis to begin !inan"ial planning$ E&pe"t unrealisti" returns on invest#ent$ .2

10$ Thin that using a !inan"ial planner #eans losing "ontrol$ 11$ 6elieve that !inan"ial planning is pri#aril' ta& planning$

MUTUA5 7U(+S

;1at $3 M#t#al 7#ndN


A #utual !und is a trust that pools the savings o! a nu#ber o! investors who shares a "o##on !inan"ial goal$ These investors bu' units o! a parti"ular 0utual Fund s"he#e that has a de!ined invest#ent ob.e"tive and strateg'$ The #one' thus "olle"ted is then invested b' the /3

!und #anager in di!!erent t'pes o! se"urities$ These "ould range !ro# shares to debentures to #one' #ar et instru#ents, depending upon the s"he#e-s stated ob.e"tives$ The in"o#e earned through these invest#ents and the "apital appre"iation reali*ed b' the s"he#e is shared b' its unit holders in proportion to the nu#ber o! units owned b' the#$ Thus the #utual !und is the #ost suitable invest#ent !or the "o##on #an as it o!!ers an opportunit' to invest in a diversi!ied, pro!essionall' #anaged bas et o! se"urities at a relativel' low "ost$

/*

Classi!i"ation-0utual !und s"he#es #a' be "lassi!ied on the basis o! their stru"ture and its
invest#ent ob.e"tive$ 0Y STRUCTURE

'pen)ended 7#nd3 An 8pen-ended Fund is one that is available !or subs"ription all through the 'ear$ These do not have a !i&ed #aturit'$ )nvestors "an "onvenientl' bu' and sell units at 4et Asset Ealue 24AE3 related pri"es$ Clo3e)ended 7#nd3 A Close-ended Fund has a stipulated #aturit' period, whi"h generall' ranges !ro# C to 19 'ears$ The !und is open !or subs"ription onl' during a spe"i!ied period$ )nvestors "an invest in the s"he#e at the ti#e o! the initial publi" issue and therea!ter the' "an bu' or sell the units o! the s"he#e on the 1to" E&"hanges, i! the' are listed$ The #ar et pri"e at the sto" e&"hange "ould var' !ro# the s"he#e-s 4AE on a""ount o! de#and and suppl' situation, unit holders- e&pe"tations and other #ar et !a"tors$ 0Y I(VESTME(T '08ECTIVE

.rowt1 7#nd3 The ai# o! growth !unds is to provide "apital appre"iation over the #ediu# to long ter#$ 1u"h s"he#es nor#all' invest a #a.orit' o! their "orpus in e(uities$ Drowth s"he#es are ideal !or investors who have a long-ter# outloo and are see ing growth over a period o! ti#e$ Income 7#nd3 /+

The ai# o! )n"o#e Funds is to provide regular and stead' in"o#e to investors$ 1u"h s"he#es generall' invest in !i&ed in"o#e se"urities su"h as bonds, "orporate debentures and Dovern#ent se"urities$ )n"o#e !unds are ideal !or "apital stabilit' and regular in"o#e$ Capital appre"iation in su"h !unds #a' be li#ited, though ris is t'pi"all' lower than that in growth !und$ 0alanced #nd3 The ai# o! balan"ed !unds is to provide both growth and regular in"o#e$ 1u"h s"he#es periodi"all' distribute a part o! their earning and invest both in e(uities and !i&ed in"o#e se"urities in the proportion indi"ated in their o!!er do"u#ents$ This proportion a!!e"ts the ris s and the returns asso"iated with the balan"e !und Fin "ase e(uities are allo"ated a higher proportion, investors would be e&posed to ris s si#ilar to that o! e(uit' #ar et$ 6alan"ed !unds with e(ual allo"ation to e(uities and !i&ed in"o#e se"urities are ideal !or investors loo ing !or a "o#bination o! in"o#e and #oderate growth$

Mone% market 7#nd3 The ai# o! 0one' 0ar et Funds is to provide eas' li(uidit', preservation o! "apital and #oderate in"o#e$ These s"he#es generall' invest in sa!er short-ter# instru#ents su"h as Treasur' 6ills, Certi!i"ates o! /eposits, Co##er"ial Paper and )nter 6an Call 0one'$ Returns on these s"he#es #a' !lu"tuate depending upon the interest rates prevailing in the #ar et$ These are ideal !or "orporate and individual investors as a #eans to par their surplus !unds !or short periods$

'T,ER SC,EMES

Ta" Sav$ng Sc1eme3 These s"he#es o!!er ta& rebates to the investors under spe"i!i" provisions o! the )ndian )n"o#e Ta& laws as the Dovern#ent o!!ers ta& in"entives !or invest#ent in spe"i!ied avenues$ )nvest#ents #ade in e(uit' lin ed savings s"he#es 2E;113 and Pension 1"he#es are allowed as dedu"tion u+s 88 o! the )n"o#e Ta& A"t, 1=@1$ The A"t also provides opportunities to investors to save "apital gains u+s 9?EA and 9?E6 b' investing in 0utual Funds$

/,

,'; A MUTUA5 7U(+ ;'R?S

J8MR 084EJ

5oin' a 6uge pool o( )oney in7e'ted 4y ot6er '6are6older'8

Fund earning and gain' are di'tri4uted to '6are6older' or rein7e'ted8 T6ey purc6a'e a di7er'i(ied port(olio o( 'ecuritie' (or t6e (und8

I' )anaged 4y pro(e''ional'8

/-

A+VA(TA.E '7 MUTUA5 7U(+SE +$ver3$ $cat$on F Ea"h #utual !und is "o#posed o! a port!olio o! #an' individual se"urities, i$e$ 'ou do not have all 'our eggs in one bas et$ This helps redu"e the i#pa"t o! an' underper!or#ed se"urit' in the port!olio$ 5$I#$d$t%- 0ost #utual !unds "an be pur"hased or redee#ed on short noti"e$ Pro e33$onal management- The assets o! a #utual !und are #anaged b' a pro!essional #one' #anager who has the e&perien"e to #a e sound invest#ent de"isions on the investor-s behal!$ 'pport#n$t$e3- 0utual !unds #a e it possible !or an investor to parti"ipate in a wide arra' o! invest#ents, whi"h individuall' were ina""essible$

+ISA+VA(TA.ES '7 MUTUA5 7U(+S 4o #utual !und "an pro#ise a guaranteed rate o! return li e D)Cs$ The value o! #utual !unds #a' rise or de"line$ For this reason, #utual !unds should be "onsidered longer ter# invest#ents$

/.

PURE EAUITY

PURE EAUITY I(VESTME(TSE Mnli e !i&ed-in"o#e se"urities represent an ownership interest in a "orporation$ These se"urities provide a residual "lai#- a!ter pa'#ent o! all obligations to !i&ed+in"o#e "lai#s- on the in"o#e and assets o! a "orporation$ There are two !or#s o! e(uities, pre!erred sto" and "o##on sto" $ )nvestors are pri#aril' interested in "o##on sto" s$

$* Common 3tock
Co##on sto" represents the ownership interest o! "orporations, or the e(uit' o! "orporations, or the e(uit' o! the sto" holders, and we "an use the ter# e(uit' //

se"urities inter"hangeabl'$ 0ost "o#panies "hoose to Kgo publi"7L that is, the' sell "o##on sto" to the general publi"$ This a"tion is ta en pri#aril' to enable the "o#pan' to raise additional "apital #ore easil'$ )! a "orporation #eets "ertain re(uire#ents$ )t #a', i! it "hooses to, be listed on one or #ore e&"hanges$ 8therwise, it will be listed in the over- "ounter #ar et$ As owners, the holders o! "o##on sto" are entitled to ele"t the dire"tors o! the "orporation and vote on #a.or issues$ Ea"h owner is usuall' allowed to "ast votes e(ual the nu#ber o! shares owned !or ea"h dire"tor being ele"ted$ 1u"h votes o""ur at the annual #eeting o! the "orporation, whi"h ea"h shareholder is allowed to attend$ 1to" holders also have li#ited liabilit', #eaning that the' "annot lose #ore than their invest#ent in the "orporation$ )n the event o! !inan"ial di!!i"ulties, "reditors have re"ourse onl' to the assets o! the "orporation, leaving the sto" holders prote"ted$ This is perhaps the greatest advantage o! the "orporation and the reason wh' it has been so su""ess!ul$ The par value 2stated or !a"e value3 !or a "o##on sto" , unli e a bond or pre!erred sto" , is generall' not a signi!i"ant e"ono#i" variable$ Corporations "an #a e the par value an' nu#ber the' "hoose$ The boo value o! a "orporation is the a""ounting value o! the e(uit' as shown as on the boo s 2that is balan"e sheet3$Although boo value per share pla's a role in #a ing invest#ents de"isions, #ar et value per share is the "riti"al ite# o! interest to investors$ The #ar et value 2i$e$ pri"e3 o! the e(uit' is the variable o! "on"ern to investors$ The #ar et value o! one share o! sto" , o! "ourse, is si#pl' the observed "urrent #ar et pri"e$ /ividends are the onl' "ash pa'#ents regularl' #ade b' "orporations to their sto" holders$ The' are de"ided upon the de"lared b' the dire"tors and "an range !ro# *ero to virtuall' an' a#ount the "orporation "an a!!ord to pa' 2t'pi"all', up to 100 per"ent and past net earnings3$

$$* Pre erred 3tock


Although te"hni"all' an e(uit' se"urit', pre!erred sto" is nown as a h'brid se"urit' be"ause it rese#bles both e(uit' and !i&ed-in"o#e instru#ents$ As an e(uit' se"urit', pre!erred sto" has an inde!inite li!e and pa's dividends$ Pre!erred sto" rese#bles !i&ed-in"o#e se"urities in that the dividend is !i&ed in a#ount and nown in advan"e, providing a strea# o! in"o#e ver' si#ilar to that o! a bond$

/0

Pre!erred sto" holders are paid a!ter the bondholders but be!ore the "o##on sto" holders in ter#s o! priorit' o! in"o#e and in "ase the "orporation is li(uidated$ )! the issuer !ails to pa' the dividend in an' 'ear, the unpaid dividend2s3 will have to be paid in the !uture be!ore "o##on sto" dividends "an be paid i! the issue is "u#ulative$ 2)! non-"u#ulative, dividends in arrears do not have to be paid$3 0ore than one-third o! the pre!erred sto" "o##on sto" at the owner-s option$ sold in re"ent 'ears is "onvertible into

$$$* +er$vat$ve3
There are two t'pes o! derivatives se"urities that are o! interest to #ost investors$ 8ptions and !utures "ontra"ts are derivative se"urities, so na#ed be"ause their value is derived !ro# their "onne"ted underl'ing se"urit'$ 4u#erous t'pes o! options and !utures are traded in world #ar ets$ 8ptions and !utures "ontra"ts have i#portant di!!eren"es in their trading, the assets the' "an a!!e"t, and their ris !a"tor, so !orth$ Perhaps the biggest di!!eren"e to note now is that a !utures "ontra"t is an obligation to bu' or sell, but an options "ontra"t is onl' the right to do so, as opposed to an obligation$

/1

REA5 ESTATE

Real estate has histori"all' been use!ul in a port!olio !or both in"o#e and "apital gains$ 5o#e ownership, in itsel!, is a !or# o! e(uit' invest#ent, as is the ownership o! a se"ond or va"ation ho#e, sin"e these properties generall' appre"iate in value$ 8ther t'pes o! real estate, su"h as residential and "o##er"ial rental properties, "an "reate in"o#e strea#s as well as potential long-ter# "apital gains$ Real estate invest#ents "an be #ade dire"tl', with a pur"hase in 'our own na#e or through invest#ents in li#ited partnerships, #utual !unds, or Real Estate )nvest#ent Trusts 2RE)T3$ /2

Also, there are #an' inds o! real estate invest#ents$ 1o#e are ver' spe"ulative while others are #ore "onservative$ The #a.or "lassi!i"ation isI Mni#proved ;and$ )#proved Real Estate$ 4ew and used residential propert'$ Ea"ation ho#es$ ;ow in"o#e housing$ Certi!ied histori" rehab stru"tures$ 8ther in"o#e-produ"ing real estate su"h as o!!i"e buildings, shopping "enters and industrial or "o##er"ial properties$

C'MM'+ITY

)n the world o! business, a "o##odit' is an undi!!erentiated produ"t whose value arises !ro# the owner-s right to sell rather than the right to use$ E&a#pleI "o##odities !ro# the !inan"ial world in"lude oil 2sold b' the barrel3, ele"tri"it' 2#ost users o! ele"tri" power are onl' "on"erned with overall energ' "onsu#ption7 onl' a #inorit' o! users are "on"erned with the (ualit' and te"hni"al details o! voltage and !re(uen"' deviations, phase i#balan"e, et"$3 %heat, bul "he#i"als su"h as sul!uri" a"id, base and other #etals, and even por bellies and orange .ui"e$ 0ore #odern "o##odities in"lude bandwidth, RA0 "hips and 2e&peri#entall'3 "o#puter pro"essor "'"les, and negative "o##odit' units li e e#issions "redits$ 03

Commod$t% market3IThese are #ar ets where raw or pri#ar' produ"ts are e&"hanged$ These raw "o##odities are traded on regulated "o##odities e&"hanges, in whi"h the' are bought and sold in standardi*ed Contra"ts$ Commod$t$e3 e"c1angeICo##odities e&"hange is an e&"hange where various "o##odities and derivatives produ"ts are traded$ 0ost "o##odit' #ar ets a"ross the world trade in agri"ultural produ"ts and other raw #aterials 2li e wheat, barle', sugar, #ai*e, "otton, "o"oa, "o!!ee, #il produ"ts, por bellies oil, #etals, et"$3 and "ontra"ts based on the#$ These "ontra"ts "an in"lude spots, !orwards, !utures, options on !utures$ 8ther sophisti"ated produ"ts #a' in"lude interest rates, environ#ental instru#ents, swaps, or o"ean !reight "ontra"ts$

7IXE+ 'R TIME +EP'SITS

Ti#e deposits are deposits a""epted b' the ban s !or a spe"i!ied period o! ti#e$ )n ter#s o! R6) dire"tives the #ini#u# period !or whi"h ter# deposits "an be a""epted is 19 da's$ The ban s generall' do not a""ept deposits !or periods longer than 10 'rs$ 6an s pa' interest on ter# deposits based on the period o! deposits and nor#all' pa' higher interest !or a longer ter# deposits$ 0*

6an s have !ull dis"retion to !i& their interest rates on ter# deposits and these rates are varied !ro# ti#e to ti#e depending on #ar et "onditions$ Changes #ade in interest rates !ro# ti#e to ti#e do not alter the interest paid on the e&isting deposits$ %hen ban s (uote a "ertain per"entage o! interest per annu# !or a given period it is understood that interest pa'#ent are #ade on a (uarterl' basis$ The depositor "an "olle"t interest on ever' (uarter or its dis"ounted value at #onthl' rests or avail (uarterl' "o#pounding bene!its and re"eived prin"iple and interest on #aturit'$ R6) has now per#itted ban s to (uote a higher rate o! interest individual deposits #ore than Rs$19, 00,000$ 6an s are allowed to lev' a penalt' !or pre#ature en"ash#ent o! deposit at their dis"retion$ 6an s generall' pa' interest on su"h deposits as appli"able !or the period whi"h deposit has been ept with the ban 2!ewer penalties i! levied3$ 6an allows loans against the !i&ed deposits on de#and$ 0argin retained over the deposit outstanding interest "harged thereon is de"ided b' the ban and #a' var' !ro# ban to ban $

'T,ER I(VESTME(T VE,IC5ES


+E0T I(VESTME(T
1* Cert$ $cate o depo3$t and ca31 eI#$valent3 Co##er"ial ban s and institutions o!!er the variet' o! saving "erti!i"ates nown as "erti!i"ate o! deposits 2C/s3$ These "erti!i"ates are available !or various #aturities, with higher rates o!!ered as #aturit' in"reases$ 2;arger deposits #a' also "o##and higher rates, holding #aturit' "onstant$3 0one' #ar etsI )t in"lude short-ter# highl' li(uid, relativel' low-ris debt instru#ents sold b' govern#ent, !inan"ial institutions, and "orporations to investors with te#poraril' e&"ess !unds to invest$ This #ar et is do#inated b' !inan"ial institutions, parti"ularl' ban s, and govern#ents$ The si*e o! the transa"tions in the #one' #ar et t'pi"all' is large$ )#portant 0one' 0ar et 1e"urities Treasur' billsI The pre#ier #one' instru#ent, a !ull' guaranteed, and ver' li(uid$ The' are sold on an au"tion basis ever' wee at a dis"ount !ro# !a"e value there!ore, the dis"ount deter#ines the 'ield$ The greater the dis"ount at ti#e o! pur"hase, the higher the return earned b' investors$ 0+

2* (egot$a4le cert$ $cate3 o depo3$t BC+C ) The C/ is a #ar etable deposit liabilit' o! the issuer, who usuall' stands read' to sell new C/s on de#and$ The deposit is #aintained in the ban until #aturit', at whi"h ti#e the holder re"eives the deposit plus interest$ 5owever, these C/s are negotiable, #eaning that the' "an be sold in the open #ar et be!ore #aturit'$ Co##er"ial paper- A short-ter#, unse"ured pro#issor' note issued b' large, wellnown and !inan"iall' strong "orporations 2in"luding !inan"e "o#panies3 Co##er"ial paper is usuall' sold at a dis"ount either dire"tl' b' the issuer or indire"tl' through a dealer, with rates "o#parable to C/s$ Although a se"ondar' #ar et e&ist !or "o##er"ial paper, it is wea and #ost o! it is held to #aturit'$ EUR' +'55ARSE)/ollar deno#inated deposit held in !oreign ban s or in o!!i"es o! M1 ban allo"ated abroad$ Although this #ar et originall' developed in Europe, dollar deno#inated deposits "an now be #ade in #an' "ountries, su"h as those o! Asia$ Euro dollar deposits "onsist o! both ti#e deposit and C/s, with the latter "onstituting the largest "o#ponent o! the Euro dollar #ar et$ Repur"hase agree#ents 2RPs3 - An agree#ent between a borrower and a lender 2t'pi"all' institution3 to sell and repur"hase the govern#ent se"urities$ The borrower initiates and RPs b' "ontra"ting to sell se"urities to a lender and agreeing to repur"hase these se"urities at a pre-spe"i!ied pri"e on a stated date$

!* 0ond3E 6onds "an be si#pl' as long-ter# debt instru#ents representing the issuer-s "ontra"tual obligations$ The bu'er o! a newl' issued "oupon bond is lending #one' to the issuer who, in turn, agrees to pa' interest on this loan and repa' the prin"ipal at a stated #aturit' date$ 6onds are !i&ed-in"o#e se"urities be"ause the interest pa'#ents 2i! an'3 and the prin"ipal repa'#ent !or a t'pi"al bond are spe"i!ied at the ti#e the bond is issued and !i&ed !or the li!e o! the bond$ A* /ero co#pon 4ond3E The #ost radi"al innovation is !or#at o! traditional bonds is the Jero co#pon 4ond, whi"h is issued with no "oupons, or interest, to be paid during the li!e o! the bond$ 0* Corporate 4ond3E Corporate bonds are senior se"urities$ That is, the' are senior to an' pre!erred sto" and to the "o##on sto" o! a "orporation in ter#s o! priorit' o! pa'#ents and in "ase o! ban rupt"' and li(uidation$ 5owever, within the bond o! "ategor' itsel! there are various degrees o! se"urities$ The #ost "o##on t'pe o! unse"ured bond is the debenture, a bond ba" ed onl' b' the issuer-s overall !inan"ial soundness$ /ebentures 0,

"an be subordinated, resulting in a "lai# on in"o#e that stands belos 2subordinate to3 the "lai# o! the other debentures$

C* 7ore$gn 0ond3 %h' would one "onsider !oreign bonds !or in"lusion in their port!olioS 8ne reason is that at ti#es !oreign bonds #a' o!!er higher returns at a given point in ti#e than alternative do#esti" bonds$ A se"ond i#portant reason !or bu'ing !oreign bonds is the diversi!i"ation aspe"t$ /iversi!i"ation is e&tre#el' i#portant ,both in a sto" port!olio and a bond port!olio$ +* Convert$4le 0ond3E Convertible bonds have a built-in "onversion !eature$ The holders o! these bonds have the option to "onvert whenever the' "hoose

Advantage o 4ond3E The a#ount o! in"o#e ea"h 'ear is !i&ed$ The' are sa!er than e(uit' se"urities li e "o##on sto" s$

+$3advantage o 4ond3E %hen the "o#pan' pro!itabilit' i#proves, the' do no parti"ipate, as "o##on sto" holders when theirs sto" s appre"iates$ 6onds "arr' no voting rights$

%hile "hoosing bonds there are !ive !a"tors to ta e into a""ount when "onsidering bondsI 1$ )nvest#ent (ualit'$ 5ow are the bonds rated 2$ Ti#e to #aturit'I 1hort ter#X0-9Y 0ediu#X@-19 'rsY ;ong ter#Xover 19 'rsY C$ Call or "onversion !eature 0-

?$ 9$ @$

Ta& status Jield to #aturit'

0* ASSET)0AC?E+ SECURITIESE 1e"uriti*ation re!ers to the trans!or#ation o! illi(uid, ris ' individual loans into #ore li(uid, less ris ' se"urities re!erred to as asset-ba" ed se"urities 2A613$ 0ar etable se"urities have been ba" ed b' "ar loans, "redit-"ard re"eivables, rail"ar leases, s#all business loans, photo"opier leases, air"ra!t leases, and so !orth$

RE.U5AT'RY 0'+IES '7 ;EA5T, MA(A.EME(T I(STRUME(TS


0utual Funds A0F) XAsso"iation o! 0utual Funds, )ndiaY /ire"t E(uit' 1E6)X1e"urities E&"hange 6onds o! )ndiaY Real Estate 456X4ational 5osing 6oardY )nsuran"e )R/AX)nsuran"e Regularit' : /evelop#ent Authorit'Y Co##odities 0C<X0ulti Co##odit' E&"hangeY Ti#e /eposits R6)XReserve 6an o! )ndiaY Dovt bonds+ 1e"urities R6)XReserve 6an o! )ndia

)nter#ediaries+!a"ilitators o! wealth #anage#ent servi"esI 1$ 6ro ers 2$ )nsuran"e agents C$ /istribution agen"ies 0.

?$ 9$ @$ B$

6an s Real Estate Agents Co##odit' bro ers Corporate "onsultan"' !ir#s

Stock4roker A sto" bro er is a person who sells sto" s on the behal! o! another person Xor "o#pan'Y and "harges the "usto#er a "o##ission !or servi"es o!!ered$ In3#rance Agent An insuran"e agent is an individual who is li"ensed b' a state to sell insuran"e !or one or #ore spe"i!i" insuran"e "o#panies$ +$3tr$4#t$on agenc% /istribution agen"' is the agen"', whi"h !un"tions on a "o#parativel' large s"ale than an individual bro er$ Eg$ 61E and 41E$

0ank A ban is an institution that has the !a"ilities and servi"es to handle da' to da' !inan"ial transa"tions$ )t deals in #one' and #ost signi!i"antl' "reates #one' !or individuals b' o!!ering advisor' and other servi"es$ Real e3tate Agent Real Estate Agent is a person with a state+provin"ial li"ense to represent a bu'er or a seller in a real estate transa"tion in e&"hange !or "o##ission$ Commod$t% 0roker3 Co##odit' 6ro er is a person who trade in "o##odities li e sugar, oil, gold et"$ Corporate con3#ltanc% $rm3 These are the !ir#s whi"h provide guidan"e and nowledge to the "lients regarding their port!olio$ 0/

0ank3 a3 ac$l$tator3 o wealt1 managementE)


%ealth #anage#ent servi"es o!!ered b' the ban s are spe"iall' designed to provide the highest level o! servi"es, whi"h are appropriate !or the "lient-s uni(ue re(uire#ents and status$ Apart !ro# personali*ed servi"es these ban s also provide ban ing, invest#ents and li!est'le privileges, whi"h #a e the ban ing e&perien"e a ver' !ul!illing one !or the "usto#ers$ Advantage3E a$ b$ "$ d$ e$ !$ All servi"es "an be availed under one roo!$ 6rand re"ognition, whi"h provides high reliabilit'$ Pro!essional guidan"e !ro# the relationship #anager$ 1i#pli!ied pro"edures$ Earious add on servi"es are provided$ Events organi*ed b' the ban s !or i#parting nowledge and also !or the entertain#ent o! the "usto#ers$ 00

+$3advantageE 1$ 2$ C$ ?$ )nvest#ent li#ited to "ities and big towns onl'$ )nvest#ent de"isions are biased as !unds are invested in sele"ted A0C-s$ )nsuran"e pa'ba" "o##ission is not passed on to the "usto#ers$ A pre#iu# pri"e has to be paid !or the servi"es being o!!ered b' ban $

RESEARC, MET,'+'5'.Y

T$tle o t1e 3t#d%) )nvest#ent and wealth #anage#ent anal'sis at 516C$ +#rat$on o t1e proHect) 1hort ter# po.e"t '4Hect$ve o St#d%)
The #ain ob.e"tive o! #' stud' is to !ind the #ain strategies, various sales pro#otional a"tivities : to now the state o! #ind o! an individual who is opening a saving a""ount with 516C ban 7 ) also tr' to !ind out that investors are aggressive, #oderate or "onservative in ,odhpur se"tor$ 01

1ervi"es that in!luen"es the "usto#er while he+she is into opening to now whi"h others ban s are e' pla'ers$

Custo#er per"eption regarding the servi"es provided b' the 516C 6A4>$ To now what ind o! investors are prevailing in ,odhpur #ar et$

+ata collect$on met1od The data sour"es being used under su"h t'pe o! stud' are #ainl' o! 2 t'pesI *8 Pri#ar' /ata +8 1e"ondar' /ata A#ong whi"h the !or#er is being ta en through the resear"h undergone within the organi*ational level itsel! : various other organi*ing re!or#s onl'$ %hile the latter had been ta en through di!!erent statisti"al approa"hes or we "an sa' through di!!erent #ar eting re!or#s$

SAMP5E P5A( +ATA C'55ECTI'(

PRIMARY +ATA E)
The pri#ar' data are whi"h are "olle"ted a!resh and !or the !irst ti#e, and thus happen to be original in "hara"ter$ A pri#ar' surve' was "ondu"ted at ,8/5PMR "it'$ The surve' was "arried out at various levels : the target group was retail investors, business #en, builders, industrialists, e&porters, do"tors et"$ Nuestionnaires were used as an instru#ent to "olle"t the pri#ar' data$ This data was obtained b' various pro#otion s"he#es li e-

02

CA(('PIES) we put "anopies in !ront o! various !inan"ial institutions li e ban s, "o##er"ial pla"es, and entertain#ent pla"es li e Agarwal tower, 1hastri "ir"le, Corporate hub et"$ There people approa"h us and we give the# the (uestionnaire to !ill and provide the details o! 516C produ"ts$ APPR'AC,I(. T' I(+USTRIA5 U(ITS ) %e approa"h to industrial areas li e 0)A, 6A14), 5)A, 6oranada industrial area and give the (uestionnaire to !ill and e&plain the details o! various 516C produ"ts$

SEC'(+ARY +ATA
The 1e"ondar' data are those, whi"h have alread' been "olle"ted and 6eing pro"essed through the statisti"al pro"ess$ %e got the se"ondar' data through

PREVI'US TRA(SACTI'( REC'R+S )$ %e got the re"ords o! those people who have alread' invested in 516C$ ))$ Through dire"tor'- %e got the re"ords o! E&porters, 6usiness#en, ar"hite"ts et"$

13

MAR?ETI(. APPR'AC, o /ire"tl' #eeting the# o Through telephoni" "alls o Through Canopies

P8PM;AT)84 /EF)4)T)84 13 Ele#entI Retail )nvestors, 6usiness 0en, 6uilders, )ndustrialists, 23 E&porters, 1enior Citi*ens, and others$ C3 1a#ple Mnit- ,8/5PMR Cit' ?3 1a#pling 0ethod- 1i#ple Rando# 1a#pling 93 1a#pling 1i*e- 6ased on ages, in"o#e area et"$ @3 /ata "olle"tion- through dire"tories, Previous re"ords through B3 Friends and relatives$

M'+ES '7 MAR?ETI(. = PR'M'TI'(


+$rectl% Approac1$ngE) %e dire"tl' approa"h people to invest li e builders, investors, e&porters, business#en, : even general #ass$ Telep1on$c Call3E) %e approa"h the# through telephones and ta e appoint#ents : then dire"tl' "onta"t the# !or invest#ent$ Canop$e3E) 1*

%e put "anopies in !ront o! 6an s, Finan"ial )nstitutions : other publi" gathering pla"es$ There we approa"h people and ta e their telephone nu#bers$ : "onta"t the# or even in "anopies itsel! #a e the# invest$

1+

5IMITATI'(

1$ 4o response b' so#e e#plo'ees in di!!erent ban s and la" o! interest shown b' the# resulted in in"o#plete data$ 2$ 4on-availabilit' o! "on"erned person with "o#plete nowledge to respond$ C$ ;a" o! ti#e with appropriate authorities$

1,

+ATA I(TERPRETATI'( = A(A5YSIS


N$1$ /o 'ou ta e servi"es o! an' other ban s$$S a3 )C)C) 6an "3 516C b3 1tate 6an o! )ndia 216)3 d3 8thers

4o$ o! respondent s )C)C) 6an 16) 516C 8T5ER1 1B 1= 19B B

B=H persons ta es servi"es o! 516C ban $ 8H persons ta es servi"es o! )C)C) ban $ =H persons ta es servi"e o! 16) ban $ ?H persons ta es servi"e o! other ban s$ N$2$ %hat are the !eatures that in!luen"e 'our de"ision while availing an' servi"es o! a ban S 1-

a3 Dood "usto#er "are "3 Doodwill o! the 6an 4o$ o! Respondents Dood Custo#er Care 1e"urit' o! 0one' Doodwill o! 6an 4etwor o! 6an 99 @1 B2 12

b3 1e"urit' o! 'our #one' d3 4etwor o! the 6an

2B$9H person-s de"isions in!luen"ed b' Dood "usto#er "are$ C0$9H person-s de"isions in!luen"ed b' 1e"urit' o! #one'$ C@H person-s de"isions in!luen"ed b' Doodwill o! ban $ @H person-s de"isions in!luen"ed b' 4etwor o! ban $

N$C$ %hi"h all servi"es o! the ban do 'ou use #ostS 1.

a3 AT0 "3 )nternet 6an ing

b3 /oor step 6an ing d3 0obile 6an ing

4o$o! Respondents AT0 /oor step 6an ing )nternet 6an ing 0obile 6an ing =C ?? 90 1C

?@H persons used AT0 servi"e be"ause this servi"e is "o##onl' o!!ered it re(uire no te"hni"al nowledge$

N$?$ )4C80E ;EEE;I 1/

a3 @0,000 F 1, 00,000 "3 1, 00,000 F 2, 00,000

b3 2, 00,000 F C, 00, 00 d3 above C, 00, 00

)n"o#e ;evel @0 thousand-1 ;a"s 2 ;a"s-C ;a"s 1 ;a"s-2 ;a"s above C ;a"s

4o$ o! Respondents 9B 90 9= C?

)n the above table 9B investors are those who !ell in the in"o#e slab !ro# @0 thousand to 1 la h, 9= investors !ell in the in"o#e slab !or# 1 la h-2la h, 90 )nvestor-s !ell in the in"o#e slab !ro# 2 la h-Cla h, C? investor-s !ell in the in"o#e slab o! above C la h$

N$9 5ow long have 'ou been investing in #ar etS 10

a31-9 'ears "3 Above 10 'ears

b39-10 'ears

4o$o! 'ears 1-9 Jear 9-10 Jear Above T0 Jear

4o$ o! Respondents BC 98 @=

C@$9H o! the investors were investing sin"e last 1-9 'ears$ 2=H o! the investors were investing sin"e last 9-10 'ears$ C?$9H o! the investors were investing sin"e last 10 'ears : above$

N$@$ Jou #ade invest#ent throughI 11

a3 Jour own "3 Through bro er

b3 Through /istribution house d3 others

)nvest#ent Through Jour own /istribution house 6ro er 8thers

4o$ o! respondents 89 18 8C 1?

12

N$B$ Are 'ou a3;ong-ter# investor b31hort-ter# investor

1hort ter# investor ;ong ter# investor

4o$o! Respondents 1C8 @2

@=H-short ter# investor$ C1H -long ter# investor$

N$8$ %hat H o! 'our in"o#e would 'ou li e to investS 23

a3 Mp to 9H "3 Above 10H

b3 9H-10H

4o$o! Respondents up to 9H 9H-10H Above 10H == 9C ?8

?=H investors invest up to 9H o! their in"o#e$ 2BH investors invest 9H-10H o! their in"o#e$ ?=H investors invest above 10H o! their in"o#e$

N$=$ %hat do 'ou thin about the ;oan !a"ilit'S 2*

a3 1 b3 2

C3 C

d3 ?

e 39

4o$o! Respondents Ran ing Eer' good Dood Average Poor ver' poor C2 1@9 C 0 0

2+

N$10$ %hat do 'ou thin about the "usto#er "are servi"eS a3 1 b3 2 C3 C d3 ? e3 9

Ran ing Eer' good Dood Average Poor ver' poor

4o$ o! Respondents 8? 11? 2 0 0

N$11$ %hat do 'ou thin about the interest rateS 2,

a3 1

b3 2

C3 C

d3 ?

e3 9

Ran ing Eer' good Dood Average Poor iver' poor

4o$ o! respondents 11? 80 @ 0 0

11? respondents are satis!ied with the interest rate$)t provide both !i&ed and !loating rate$

N$12$ %hat do 'ou thin about the AT0 !a"ilit'S 2-

a3 1

b3 2

C3 C

d3 ?

e3 9

Ran ing Eer' good Dood Average Poor iver' poor

4o$ o! Respondents 128 @B 9 0 0

AT0 !a"ilit' is #ostl' used b' the investors$

N$1C$ %hat do 'ou thin about the se"urit' o! #one'S 2.

a3 1 b3 2

C3 C

d3 ?

e3 9

Ran ing Eer' good Dood Average Poor ver' poor

4o$ o! Respondents 109 8@ = 0 0

Ever' investor want to se"ure his #one' and investors are highl' satis!ied with the ban $

N$1?$ 5ow is the internet ban ingS 2/

a3 1

b3 2

C3 C

d3 ?

e3 9

Ran ing Eer' good Dood Average Poor ver' poor

4o$ o! Respondents ?? =B 98 1 0

Toda' ever' person wants to save their ti#e and 516C ban provide the good E- ban ing !a"ilit' whi"h enable the investor to ta e "are o! his a""ount !ro# internet$

N$19$ 5ow is the 2? hours ban ingS 20

a3 1

b3 2

C3 C

d3 ?

e3 9

Ran ing Eer' good Dood Average Poor ver' poor

4o$ o! respondents ?2 @9 =0 C 0

21

N$1@$ %hat is the level o! nowledge o! e#plo'ees about the di!!erent s"he#esS a3 1 b3 2 C3 C d3 ? e3 9

Ran ing Eer' good Dood Average Poor ver' poor

4o$ o! Respondents @8 11@ 19 1 0

)n the above table 1 investors were !ound with poor nowledge about various invest#ent s"he#es, 19 investors were !ound with average nowledge about various invest#ent s"he#es, 11@ investors were !ound with good nowledge about various invest#ent s"he#es$

22

N$1B$ %hat is the level o! satis!a"tion with the ban S a3 1 b3 2 C3 C d3 ? e3 9

Ran ing Eer' good Dood Average Poor ver' poor

4o$ o! Respondents 110 =0 0 0 0

)nvestors highl' satis!ied with the servi"es o! the ban and the onl' reason behind this is the good servi"es whi"h provided b' the ban and whi"h helped in "reating the goodwill o! the ban $

*33

S;'T A(A5YSIS

C'MPETITIVE P'SITI'( I( I(+USTRY BUSI(. P'RTER2S 7RAME;'R?C

This "on"ept involves a relationship between "o#petitors within an industr', potential "o#petitors, suppliers, bu'ers and alternative solutions to the proble# being addressed$ %e use the !ive-!or"e #odel as a basi" stru"ture$ )n general, a business unit has to #onitor e' #a"ro environ#ental For"es X/e#ographi", E"ono#i", Te"hnologi"al, Politi"al, ;egal and so"io-"ulturalY and signi!i"ant 0i"ro Environ#ental !a"tors XCusto#ers, Co#petitorsY that a!!e"t its abilit' to earn pro!its$ This 1%8T anal'sis has been done to help ban to tra" trends and i#portant develop#ents and !or ea"h trend or develop#ents, #anage#ent needs to identi!' the asso"iated 8pportunities and Treats

*3*

*3+

STRE(.T,E
A "redible and widel' nown 6rand 4a#e with a label o! being world "lass and also nown as the K%orld-s ;o"al 6an L$ 1upport o! 516C group as a whole whi"h provides sound ba" -up !or 516C ban $ 516C has a reputation o! being the best ban in providing servi"es$ 1u""ess!ul #ulti-do#esti" strateg' "o#bined with global branding$ 1u""ess!ul #anage#ent stru"ture, valued and valuable e#plo'ees$ Abilit' to su""ess!ull' i#ple#ent "usto# ele"troni" ban ing appli"ation$ 5e&agon is the !oundation o! 516C-s strateg' to deliver innovative servi"es via )n!or#ation Te"hnolog'$ Dreat 1ervi"es provided to 4R)-s, not onl' in )ndia but world over, hen"e it en.o's a good share o! 4R) 6usiness$ Auto#ated 8perations due to highl' "o#puteri*ed environ#ent$ 8utstanding relationship #anage#ent with h'brid "usto#ers$

;EA?(ESSE
;ess awareness a#ong general #asses$ PeopleAs !aith in private ban is still not ver' high$ ;ess nu#ber o! bran"hes in )ndia as "o#pared to other 6an s$ 8nl' one AT0 in ,odhpur 2;o"ated at the bran"h3$ 5igh "harges on non-#aintenan"e o! #ini#u# average (uarterl' balan"e$ The ban provides no "ash "redit li#it$ Thus the business !low is diverted to nationali*e ban s$ 1hort ban ing hours 2!ro# 10I00 a$#$ to ?I00 p$#$3

*3,

'PP'RTU(ITIESE
6eing a world "lass ban and having a good reputation, the goodwill "an be "ashed upon with the growing e"ono#' o! )ndia$ )nternet ban ing "an be "ashed b' #a ing pro"edure even si#pler$ The' should !o"us #ore on the Co##on Custo#er !or %ealth 0anage#ent as the' have #ore da' to da' spare #one'$ )t re(uires trans!or#ing itsel! !ro# a global ban to a #ore diversi!ied global !inan"ial servi"es "o#pan'$ Current dire"tion whi"h "ould be e&panded in"ludes greater diversi!i"ation into e(uit' produ"ts, in"reased presen"e in insuran"e and "ard produ"ts$

T,REATSE
Reorgani*ation o! publi" se"tor ban sI All the publi" se"tor ban s have started to rede!ine their servi"es in order to attra"t "usto#erAs attentionI The entr' o! other !oreign ban s "an ta e awa' so#e o! the business$ The nationali*ed ban s are also "o#ing up with AT0s, whi"h will a"ts as a #a.or threat to the ban in near !uture$ 1tringent nor#s b' reserve ban o! )ndia at an' ti#e in near !uture "an be threat to !oreign ban s as their a"tivities "ould be adversel' a!!e"ted$ The presen"e o! other private se"tor and !oreign ban s in ,odhpur li e 5/FC, )C)C), MT) et"$ The "ash "redit li#it provided b' other nationali*ed ban is the #a.or threat$

*3-

*3.

C'MPETITIVE A(A5YSIS
OPoor $rm3 $gnore t1e$r compet$tor3 Average $rm3 cop% t1e$r compet$tor3 5ead$ng $rm3 lead t1e$r compet$tor3K

Int*o!u$tion
Toda' "o#petition is not onl' ri!e but also growing intense ever' 'ear$ To stand in this "o#petitive #ar et an' organi*ation has to do its best to outper!or# its "o#petitors$ Co#petitors are the "o#panies that satis!' the sa#e "usto#er need$ 6an ing se"tor has undergone a se"ond revolution where besides spe"iali*ed lenders7 the share o! "o##er"ial ban s and other !inan"ial organi*ations is in"reasing da' b' da'$ 8rgani*ations have started pa'ing attention to their "o#petitors through designing and operating s'ste# !or gathering "ontinuous in!or#ation about their "o#petitors$

*3/

Concl#3$on and Recommendat$on3


Dovern#ent ban s li e 166, , 6an o! 6aroda en.o' #ore !aith a#ong people rather than private ban s )C)C) ban , 5/FC ban are into #ass #ar eting so "ater to a large nu#ber o!

"usto#ers and there!ore has a large "lient base$ 516C onl' "aters to elite "usto#ers and has no "on"ept li e G4o Frills- a""ount that is no provision !or a 0 balan"e a""ount and the #ini#u# balan"e whi"h has to be #aintained in the a""ount is 9,000 whi"h is so#eti#es not possible !or the "usto#ers and i! the' !ail to do so the' are "harged heavil' whi"h "auses repulsion to the "usto#ers$ 516C 6an should "hal out so#e progra#s to "reate general awareness regarding its presen"e and various servi"es o! the ban $ 0ore attention is re(uired in distant lo"ated !ir#s and "aters the needs o! those "o##er"ial areas$ Per3onal Market$ngMAggre33$ve Market$ng I Toda' is the era o! "o#petition$ )n order to in"rease the ban ing networ 2in ter#s o! "lients and business volu#e3 an aggressive approa"h is re(uired$ The ban should re"ruit #ore nu#ber o! #ar eting personnel, so that the' "an "over the whole o! the "it'$ Personal #ar eting "an be one o! the #ethods o! #odes o! ta ing people into "on!iden"e$ STR'(. (EE+ '7 0RA(+ 0UI5+I(.E T1e ban needs to #a e a lot o! #ar eting e!!ort$ The level o! re"ognition that #a' be desired b' an' brand has not been a"hieved b' 516C 6an , ,odhpur$ A lot o! noise is #ade whenever a "hild is born and as long as that noise is not #ade the do"tors is not sure about the li!e o! that "hild$ 1a#e is the "ase in #ar eting$ %henever a new bran"h "o#es into e&isten"e it is ne"essar' that the' announ"e their birth$ 5ere "o#es the pre-laun"h e&er"ise, and si#ilar is the "ase a!ter the birth$ The na#e has to be ta en again$ 6oast about 'oursel!, about the strong *30

points that 'ou have over and above 'our "o#petitors$ Pull the "onsu#er towards 'ou$ As said earlier it is a relationship o! trust and this trust "an be generated through better and better per!or#an"e o! the ban $ 4ow as wor ing with the ban !or so#e ti#e the !a"ts have "o#e out that the' believe in low "osting and want to eep low pro!ile$ 1o better wa' o! #ar eting "an be sought whi"h are low at "ost$ These are dis"ussed !urther$ PR'M'TI'(A5 STRATE.IES Pre33 p#4l$c$t%E Paper inserts Advertise#ents in newspaper 2lo"al and national3$ )nterest "ards distribution 0ailers+personal invitations to sele"tive se"tion o! the so"iet' ;ea!lets '#tdoor p#4l$c$t%E 6anners in "o##er"ial areas and pri#e sites$ Air balloons at shopping "o#ple&$ 6us stands shelters$ 8!! site AT0 !or developing business Med$aE ;o"al "hannel advertise#ent 2"able TE s"rolls3 Advertise#ents in news "hannels and business "hannels 7ace to aceE Personal intera"tion o! #ar eting e&e"utives through 0eetings /etailing about s"he#es and updating the# !or# ti#e to ti#e Event sponsoring in lo"al "lubs and so"ial gathering Road shows Conta"ting o!!i"e goers in the #orning and evening at stop lights b' distribution o! interest "ards$

*31

Advert$3ement 3trateg$e3 3egmented accord$ng to t1e target c#3tomer Sen$or c$t$Jen3D 1o#3ew$ve3D 3t#dent3D 3erv$ce cla33 Personal #ailers Conta"ting at par s during #orning and evening wal s Conta"ting at stop lights Road shows at #ar et sights Cable TE advertise#ents during pri#e ti#e 1ti" on the newspaper ;ea!let on the wiper o! the vehi"les in the par ing lots

Ed#cat$onal 4od$e3 1ponsoring so#e events in s"hools and "ollages 0eeting the top #anage#ent !or opening o! salar' a""ounts And !ee pa'#ent s'ste# o! the students$

5ocal cl#43 l$ke %o#t1 cl#43D la#g1ter cl#43D 3en$or c$t$Jen cl#43D lad$e3 cl#4D etc* Event sponsoring Te#porar' banners Advertise#ents in "lub #aga*ines 8pening o! e&tension "ounters 2in "ase o! large "lub3

Pro e33$onal3 and ot1er act$ve 3amaH $n t1e area Be*g* 8a$n 3amaHC /ire"t #ailers Cold "alling )n!or#al gathering arranger b' the ban !or so#e so"ial "ause$

*32

Commerc$al place3 and market e3ta4l$31ment3E Cold "alling Personal visits o! the e&e"utives$

(EE+ A C,A(.E I( MAR?ETI(. 7'CUS The #ar eting tea# o! the bran"h has until now !o"used on selling o! their #ost "o#petitive produ"t, whi"h are there !i&ed deposits$ The rates o! interest, whi"h the' provide on !i&ed deposits, are reall' "o#petitive and highest in this #ar et$ 6ut this strateg' "ould not be held !or a longer period o! ti#e as in the long run it would be"o#e liabilit' to the ban to pa' su"h high rate o! interest and it would lower the revenues o! the bran"h$ Even the surve' "ondu"ted proved that the !astest selling produ"t is savings a""ount a#ongst the "onsu#er$ %ith a networ that is good enough this ban "an #a e e!!orts to in"rease the #ar et share in the area where the "o#petition is so tough$ This needs a brain stor#ing !ro# the top #anage#ent in the bran"h as to how about !i&ing the targets in ea"h "ategor' o! a""ounts$

Sol$d network reI#$red to develop t1e 4#3$ne33 #rt1er )! we see the results o! the surve', it is evident that people pre!er strong networ ing s'ste# to #a e their ban ing li!e as "o#!ortable and rea"hable as possible$ For 516C 6an to en.o' a good "usto#er base the' should #a e e!!orts towards developing #ore and #ore AT0 in the "it' and e&tension "ounters to !a"ilitate better and !ast servi"e$ Mpdating o! te"hnolog' !ro# ti#e to ti#e is ver' ne"essar'$ 516C 6an was the ver' !irst ban to start !ew o! the ver' good servi"e li e )nternet ban ing7 bringing about new servi"e to attra"t #ore and #ore "onsu#ers should "arr' on this tradition !urther$

**3

Correct$ve po3$t$on$ng o ,S0C 0ank 516C" ban is nown !or its "orporate operations$ Eer' big na#es in the "orporate world have their a""ounts with this ban $ For the past so #an' 'ears it has been "atering to these "lients onl' and has generated an i#age o! being a "orporate ban $ This produ"t e&tension into the retail seg#ent need separate !o"us and separate positioning in the #ar et$ The ban "annot "arr' on its old i#age !or both the seg#ents o! the #ar et$ For this a distin"tive advertising "a#paign has to be developed 2re!er to the pro#otional a"tivities stated earlier3 to reposition the brand in potential "onsu#er-s #ind$ )t should be noted that both the t'pe o! "lients di!!ers !ro# ea"h other in their true nature$ 8ne is a ver' low pro!ile relationship, whi"h tal s about #asses$ This t'pe o! "lient re(uires assuran"e, trust, in!or#ation, and support$ This is retail ban ing$ %hile on the other hand the se"ond t'pe o! relationship is stronger, whi"h is the "orporate "lient that re(uires di!!erent setup all togetherS

MA?E T,E 0RA(C, SE57)I(7'RMATIVE

The bran"h should be de"orated in a #anner, whi"h would provide #a&i#u# in!or#ation to the "usto#ers without an' di!!i"ult'$ All the s"he#es and produ"ts, all the servi"e "harges, da's and ti#e o! transa"tions should be printed in a beauti!ul #anner and hanged on the walls o! the bran"h where "usto#er "an see with ease$ This was one o! the things, whi"h were !ound to be absent in this bran"h$ 6' doing so the "usto#er would !eel #ore atta"hed and it will be "onverted in higher nu#ber o! a""ounts$

***

,'; ,S0C IS RES,API(.**********


/ownsi*ing via ER1, redeplo'ing 1ta!! and hiring new sales e&e"utives$ Changing the re#uneration stru"ture to a "ost-to-"o#pan' approa"h$ 6ringing in new heads !or e' depart#ents su"h as #ar eting Fo"using on retail ban ing, ho#e loans, and asset #anage#ent 1hutting down unpro!itable businesses li e auto#obile loans E&ploring inorgani" growth su"h s the a"(uisition o! MT) 6an And above statisti"al anal'sis how that 516C ran s 1EC84/ in Categor' o! large 6an s it ran s "losel' at top o! the list whi"h huge potential to prove its 6rand na#e$ The above anal'sis reveals that there are #an' para#eters in whi"h 516C as a 6an has an edge over the others but at the sa#e ti#e it also !a"es ne" -to-ne" "o#petition !ro# other ban s li e C)T) and 1TA4/AR/ C5ARTERE/$ )t has to "onstantl' eep upgrading the te"hnolog' and servi"es provided to its "usto#ers in order to #aintain its 6rand 4a#e$ )n this "o#petitive s"enario where ever' ban is struggling to e&pand its #ar et share, the ban s are adopting various #eans to sell their produ"ts$ )n this resear"h, ) got a ver' biased opinion on the produ"t #ost re"o##ended to the "usto#ers ) observed that the produ"ts were being oversold or undersold to the "usto#ers and not on the needs and re(uire#ents o! the "usto#ers$

**+

1VEERJ D88/ 2VD88/ CVAEERADE ?VP88R 9VEERJ P88R

AUESTI'((AIRE
4a#eI 1e&I 0ale Fe#ale AgeI N$1$ /o 'ou ta e servi"es o! an' other ban s$$S a3 )C)C) 6an "3 516C b31tate 6an o! )ndia 216)3 d38thers

N$2$ %hat are the !eatures that in!luen"e 'our de"ision while availing an' servi"es o! a ban S a3Dood "usto#er "are "3Doodwill o! the 6an b31e"urit' o! 'our #one' d34etwor o! the 6an

N$C$ %hi"h all servi"es o! the ban do 'ou use #ostS a3AT0 "3)nternet 6an ing N$?$ )4C80E ;EEE;I a3@0,000 F 1, 00,000 "31, 00,000 F 2, 00,000 a31-9 'ears "3Above 10 'ears N$@$ Jou #ade invest#ent throughI a3 Jour own "3 Through bro er N$B$ Are 'ou **, b3 Through /istribution house d3 others b32, 00,000 F C, 00, 00 d3 above C, 00, 00 b39-10 'ears b3/oor step 6an ing d30obile 6an ing

N$9 5ow long have 'ou been investing in #ar etS

a3;ong-ter# investor a3Mp to 9H "3Above 10H N$=$ %hat do 'ou thin about the ;oan !a"ilit'S a3 1 b3 2 C3 C d3 ? e3 9 b39H-10H

b31hort-ter# investor

N$8$ %hat H o! 'our in"o#e would 'ou li e to investS

N$10$ %hat do 'ou thin about the "usto#er "are servi"eS a3 1 b3 2 C3 C d3 ? e3 9 N$11$ %hat do 'ou thin about the interest rateS a3 1 b3 2 C3 C d3 ? e3 9 N$12$ %hat do 'ou thin about the AT0 !a"ilit'S a3 1 b3 2 C3 C d3 ? e3 9 N$1C$ %hat do 'ou thin about the se"urit' o! #one'S a3 1 b3 2 C3 C d3 ? e3 9 N$1?$ 5ow is the internet ban ingS a3 1 b3 2 C3 C d3 ? e3 9 N$19$ 5ow is the 2? hours ban ingS a3 1 b3 2 C3 C d3 ? e3 9 N$1@$ %hat is the level o! nowledge o! e#plo'ees about the di!!erent s"he#esS a3 1 b3 2 C3 C d3 ? e3 9 N$1B$ %hat is the level o! satis!a"tion with the ban S a3 1 b3 2 C3 C d3 ? e3 9

**-

0I05I'.RAP,Y

6oo s re!erredI -

>othari C$ R$ , GResear"h 0ethodolog'- , 4ew /elhi, %ishwa Pra ashan, 1e"ond


Edition, 200? >han 0$ J$ and ,ain P$>$ , GFinan"ial 0anage#ent- , 4ew /elhi, Tata 0"Draw5ill Publishing Co$ ;td$, Fourth Edition, 2009 516C 6ro"hure %ebsitesI -

www$hsb"$"o$in www$ban netindia$"o# www$indiaban $"o# www$hsb"ban $"o#

**.