STUDENT DECLARATION

I Abhishek Kansal a bonafide student of Noida Institute of Engineering and Technology , Greater Noida. I hereby declare that the research title Banking Services and Investment products, has been done by the undersigned with full devotion for partial fulfillment of Degree of MBA.

I also declare that the facts mentioned are true to date and best of my knowledge, any discrepancies have been avoided for the same.

ABHISHEK KANSAL Roll NO.-0713370001 M.B.A. II SEM. (2007-2009)

Preface
This research was carried out during my Mid Term Project and was

carried out in NOIDA. During the course of research an attempt was made to study the existing investment pattern of Corporate and find out how much HDFC Bank can provide a salutation to their requirements.

It started with making pre-arranged/cold calls in industrial areas to meet corporate clients and see information through questionnaire and informal interview finally converting those leads into potential business. In the process, I use to face a lot of queries but also by giving his continuous encouragement, invaluable help and guidance.

The conclusions drawn or based on the observations and facts collected from the respondents and from the various sources of secondary data. As a whole, by efforts were to a consolidated picture for the study. I expect my work would at least act as a source of further scope to the company, with this I whole heartedly hand over my projects hours to you.

Acknowledgment

My Mid Term project with HDFC BANK proved to be highly valuable and informative sojourn. I got some valuable insights from this exercise, which has definitely enabled me to hone my skills and widen my perspective towards banking in its modern prospect.

Firstly, I would like to seek an opportunity you express my sincere and profound gratitude to Mr. Vishal Gupta for giving me this opportunity to do this project. He had been a continuous source of inspiration.

I would like to extend my cordial thanks to my guide and project leader Mrs. Ekta Singh for his invaluable help, continuous encouragement and guidance without which report would not have been completed. I would also like to thank Mr Miraz Rizvi who has given his valuable time and ideas to enable me to complete the report. I am indebted to all for their ideas and assistance.

Gratitude is short lived but when put down in black and white; one can hope that it will enjoy along life.

Place: Date:

ABHISHEK KANSAL Table of Contents S. No. 1 2 3 4 5 6 7 8 9 10 11 13 14 Description Executive Summary Introduction to the topic Introduction to the organization Importance of the study Scope of the study Literature review Research design Data analysis Data interpretation Conclusion Recommendation and suggestion References Appendix(Questionnaire) Page No.

Table of table

S. No. 1 2 3 4 5

Description WHAT DO YOU THINK ABOUT TOKEN SYSTEM? SHOULD HDFC BANK NEED TO IMPORVE IN ANY AREA? HOW AGE FACTOR INFLUENCE FIXED DEPOSITS HOW AGE FACTOR RECURING DEPOSIT HOW AGE FACTOR SAVING A/C

Page No. 83 86 88 90 92

Table of graph S. No. Description Page No.

1 2 3 4 5 6 7 8 9

WHAT DO YOU THINK ABOUT TOKEN SYSTEM? WHAT DO YOU THINK ABOUT SERVICES? WHAT DO YOU THINK OF AFTER SALE SERVICES? SHOULD HDFC BANK NEED TO IMPROVE IN ANY AREA? FEEDBACK OF CUSTOMER TOWARDS BANK HOW AGE FACTOR INFLUENCE FIXED DEPOSITS HOW AGE FACTOR RECURING DEPOSIT HOW AGE FACTOR SAVING ACCOUNT SALE OF PRODUCTS

83 84 85 86 87 88 90 92 94

EXECUTIVE SUMMARY
It makes me clear about banking sector This study introduces us about the deposits, the investment products or services offered to the public by HDFC Bank, and what is the benefit for investing your money? Investment is a sharing device, so it is crucial to think in a dynamic world where we invest our hard-earned money.

A project is an outcome offer of sincere labor and curious mind. Its worth depends not necessarily on the status of the maker but on practice and profession. The best and most of topic must get wasp and web of it, treated woven with lucidity and logical compulsion. Given the level of treatment there is no essential dichotomy between quality and brevity that together must go into construction of project. The company aims to cover a large market area with efficient market infrastructure and though better services. My project report has been prepared on the topic BANKING SERVICES AND INVESTMENT PRODUCTS. By studying this concept, we can come to know the actual outcome of investment. We spend our money to fulfill our regular needs but we neglect our future necessary requirements, which could be solved through these investments offered to us now a day. Through small investment regularly, we can fill the well (account) which is surely going to help us and save from inflation rate as no one can spend a lot at a single point of time in this era. So small investments are a better idea for everyone with better returns and less lock in period also. Investment is that sharing device that feed the dear ones of your family when there is any requirement in your family. Going through this report, one can easily find out the various services offered by HDFC in the field of deposits to serve the same which are planned and made after considering, analyzing and concluding the requirements of the people in various situations of life. The plans are clearly explained and their need is depicted in the followed graphs. I hope this study will become a good asset for the readers.

INTRODUCTION TO THE TOPIC

Banking Services and Investment products is the title of the project. It specifies the services offered by HDFC Bank Sector 18,Noida which is present at the main hub of the city. The Project describes about different savings and current account

facility offered by bank and other investment options provided by bank. It helps me to analyze about the situation of HDFC Bank in Noida.

INTRODUCTION TO THE ORGANISATION

Profile

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC Bank is Indias premier private commercial bank. Today, we have our presence in 300 cities across India with more than 650 branches to bring you the best banking experience ever. The customer is a King is probably an old adage , but we at HDFC Bank hold true this golden rule even to day . In our earnest endeavour to promote convenience , we customize all our products to meet your world class needs . With this , we attempt to provide you world class products at a competitive price while also offering technology to make banking with us ,effortless.

BANKING SERVICES AND INVESTMENT PRODUCTS

PRODUCTS Savings Regular Account Savings Plus Account Current Account Kids Advantage Account Institute & School Fee Collection

10

Family Savings Group Fixed Deposit Mudra Gold Bars HSL account Loans Debit Card Gold Debit Card Forex and Trade Services Direct Banking Channels Convenience Banking Comparative Chart

Regular Saving Account An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through Net Banking, Phone Banking and MobileBanking. Need money urgently? Withdraw cash from any of the spread across the country. Features & Benefits 1695 ATM centers

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Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you are located.

Bank conveniently with facilities like NetBanking and MobileBankingcheck your account balance, pay utility bills or stop cheque payment, through SMS.

Never overspend- Shop using your International Debit Card that reflects the actual balance in your savings account.

Personalised cheques with your name printed on each cheque leaf for enhanced security.

Take advantage of BillPay, an instant solution to all your frequent utility bill payments. Instruct for payment over the phone or through the Internet.

Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your account.

3 Free transactions on SBI/Andhra Bank ATMs per month. Free Payable-at-Par cheque book, without any usage charges upto a limit of Rs.50,000/- per month.

Free InstaAlerts for all account holders for lifetime of the account. Free Passbook facility available at home branch for account holders (individuals).

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Free Email Statement facility.

saving plus account Introducing the best banking option for you with HDFC Bank Savings Plus Account. Now you can get access to some of the finest banking facilities with HDFC Bank's Savings Plus Account. All you have to do is maintain an Average Quarterly Balance of Rs. 10,000/- and experience the benefits as mentioned below: Features & Benefits Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you are located. 2 Free transactions on SBI/Andhra Bank ATMs per month. 3 Free transactions on any other Bank's ATM per month. Free International Debit Card for all account holders for life time of the account. Free Payable at Par (PAP) chequebook without any usage charges upto a limit of 50,000 per month. Free Demand Drafts on HDFC Bank locations, upto a limit of 25,000/- per day. Free BillPay & InstaAlerts for all account holders for lifetime of the account Free Electronic Funds Transfer facility, NetBanking, PhoneBanking & MobileBanking Special relationship discount on purchase of Gold Bars 25%-off on the Locker rental for the 1st year (only). Intercity Banking / Multi-city Banking.

13

Free Passbook facility available at home branch for account holders (individuals). Free Email Statement facility.

14

CURRENT ACCOUNT

At

HDFC Bank , we understand that running a business requires time and

money. Also , since your business needs are constantly evolving, it requires effective and timely management. Thats where we step in. By providing you with a choice of current Account options that facilitate seamless transactions and help you with faster moblisation of funds .. With an HDFC Bank Current Account , avail the freedom of multi-location

Banking ! You can have the power of multi-location access to your account from our wide network (537branches in 221 cities) Whats more ,you can do all your Banking transactions from the comfort of your office or home ,by using our Direct Banking Channels . We make it our business ,to help you with your business , by offering you a current Account loaded with all the benefits you need ,to stay ahead of your competition

Plus Current Account

In today's fast-paced world, your business regularly requires you to receive and send funds to various cities in the country. HDFC Bank Plus Current Account gives you the power of inter-city banking with a single account and access to more than 228 cities. From special cheques that get treated at par with local ones in any city where we have a branch, faster collection of outstation cheques (payable at branch locations), free account to account funds transfer between HDFC Bank accounts

15

to Free inter-city clearing of up to 100 lakhs per month, our priority services have become the benchmark for banking efficiency. Plus Current Account requires you to maintain an average quarterly balance of Rs. 100,000. Read on to know the powerful plus points of the HDFC Bank Plus Current Account.

Features and Benefits Payable at-Par chequebook Facility Free inter-city funds transfer across our network up to Rs. 100Lachhs per month Free Pay Order /Demand Drafts Payable at HDFC Bank location ( check with branch for value limits) Free online, real-time Net Banking Free collection of outstation cheques, payable on HDFC Bank locations Huge savings on Bank charges.

16

HDFC Bank Trade Current Account is ideal for small funds transfer across various cities in the country. While Trade Account is suitable for small businessmen and Traders .

Freatures and Benefits

Payable at-Par chequebook facility Free inter-city funds transfer across our network up to Rs. 25Lachhs per month

Free Pay Order /Demand Drafts Payable at HDFC Bank location ( check with branch for value limits)

Free online, real-time Net Banking ATM Card for Individuals/Sole Proprietorships 24-Hour Phone Banking access(please check for availability city)

A Trade Current Acccount requires an average quarterly balance of Rs.40,000/- only

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Premium Current Account

You can avail benefits of inter-city banking account with Premium Current Account, that requires an average quarterly balance of only Rs. 25,000, offers Payable-At-Par cheque book facility & FREE inter-city clearing transactions across our network up to Rs.25 Lacs per month A Current Account with the benefits of accessing your account from a large network of branches, and through direct access channels - the phone, mobile, Internet and through the ATM. Regular Current Account The Regular Current Account requires an average quarterly balance of Rs.10,000/-only Besides a free ATM Card and easy accessibility, you first 50 cheque leaves are also offered FREE. Free Services Offered to Premium & Regular Current Account holders: One ATM Card Per account (only for individuals / Sole Proprietorships) Replacement in case of damaged Cards Monthly Statement Online ,real time NetBanking 24-Hour Phone Banking access(please check for availability in your city)

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Note: As per CBDT Circular ,for cash deposits of Rs. 50,000 or above , PAN number is required . All charge mentioned are exclusive of Services tax and Education cess. Cash deposits at non-home branch are not allowed.

VALUE ADDED FEATURES

CMS (collections from various locations , even non branch locations)

Continuous Stationery Bulks DDs Cheque writing facility RTGS

Take advantage of our Direct Banking Channels

NetBanking- Manage your accounts from anywhere , anytime

Phone Banking Talk to a Phone Banking agent for all your queries MobileBanking- Access, transact&inquire about your account

19

PhoneBanking- Talk to a Phone Banking agent for all your queries MobileBanking-Access, transact & inquire about your account InstaAlerts Get account updates on mobile or e-mail.

Trade Services We offer the following Trade Services options which give the flexibility in closing a deal faster and maintaining goodwill with your business associations Exports We offer a wide range of export services designed to assist your business. With our strong net work worldwide, we make your export business hassle free. You can avail the following facilities:

Import Documents against Payment(DP) Import Documents against Acceptance(DA) Advance Remittances Import Bills under Letter of Credit

Letter of Credit Avail our Letter of Credit (L/CS) for your business requirements. Our Letter of Credit issued is valued and accepted worldwide .

20

Bank Guarantee We issue Bank Guarantee on your behalf to fulfill your obligations under any business contract and help your business grow along with a sound relationship with HDFC Bank. With our Trade Services options you can enjoy advantage like Faster Payments, Competitive Exchange Rates ,Speedy Remittances, Improved Cash Flows and Competitive Charges. Foreign Exchange Products for your Business Travel Abroad Foreign Currency Drafts Travellers Cheques Foreign Currency Cash ForexPlus Card(a charge Card cin Foreign Currency) Telegraphic Transfer (SWIFT)

Business Banking Business Banking division caters to the financial requirements of small and Medium entrepreneurs . Whatever be your business ,the next-door retail shop or a manufacturing unit, we would be happy to offer financial solutions with a decision time of just 7 working days .

21

Working Capital and Term Loans

We at HDFC Bank .understand that expanding and growing your business to the heights of success is a dream of every entrepreneur .To fulfill this dream, we offer

Cash Credit Overdrafts(Secured/Unsecured) Export Finance

-Pre Shipment Finance -Post Shipment Finance Bill Discounting Terms Loans

FIXED DEPOSITS Our Fixed Deposits offer flexibility,Security&higherreturnin asingle bundle of investment.

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Regular Fixed Deposits

Flexibility in opting period of deposits, maturity and payment instruction,

principal amount and rollover mode.

Option of going for single interest/Compound Interest& thus re-investing the principal to let your money earn More

Sweep-in Facility; Link your Fixed Deposits to your Savings Account and use it to fall back on, in case of emergencies.

Super Saver Facility;Enjoy a high rate of Interest alongwith the liquidity of a SavingsAccount.Availof an overdraft facility of upto 75% of the value of your Fixed Deposits . No penalty for premature withdrawals 5Year Tax Savings Fixed Deposits ;-A Fixed Deposits with a Difference!

Minimum Amount :Rs.100/-:Maximum Amount: Rs.100,000/-(in a Financial Year)

Tenure:5 Years Avail of dual benefits in terms of attractive interest rates alongwith tax exemption under section 80c of the Income Tax Act,1961 23

DOMESTIC TERM DEPOSITS Interest Period Amount Rate (per annum) 7 - 14 days Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs 1.00% **Senior Citizen Rates (per annum) 1.50% Effective From

July 11, 2007

15 - 29 days

3.00%

3.50%

July 11, 2007

30 - 45 days

5.50%

6.00%

March 3, 2007

46 - 60 days

5.50%

6.00%

March 3, 2007

61 - 90 days

5.50%

6.00%

March 3, 2007

91 - 99 days

6.00%

6.50%

March 3, 2007

100 - 101 days

7.50%

8.00%

March 3, 2007

102 - 180 days 6 months 1 day - 6 months 14 days 6 months 15 days - 6 months 16 days

6.00%

6.50%

March 3, 2007

6.75%

7.25%

March 3, 2007

Below Rs.15 Lacs

8.00%

8.50%

March 3, 2007

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6 months 17 days - 1 year 1 year 1 day 1 year 14 days 1 year 15 days - 1 year 16 days 1 year 17 days - 2 years 2 years 1 day 2 years 14 days 2 years 15 days - 2 years 16 days 2 years 17 days - 3 years 3 years 1 day 5 years 5 years 1 day 8 years

Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs

6.75%

7.25%

March 3, 2007 March 12, 2007

8.00%

8.50%

9.25%

9.75%

May 11, 2007

8.00%

8.50%

March 12, 2007 March 12, 2007

8.25%

8.75%

Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs Below Rs.15 Lacs

9.50%

10.00%

March 12, 2007 March 12, 2007 March 12, 2007 March 12, 2007

8.25%

8.75%

8.25%

8.75%

8.25%

8.75%

Interest rates are subject to change from time to time. Applicable interest rates will be given as on the date of receipt of the funds by the bank. When booking FD through NetBanking please note the actual interest rate being applied on the "Confirm" screen. This screen appears before you confirm your request for opening a new FD.

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** Only Senior Citizens / Retired Personnel (60 years and above) who are Resident Indians are eligible. The special rates are applicable only for INR deposits. *** The FD rate applicable for a monthly interest option will be a discounted rate over the standard FD Rate. Please contact the nearest Branch for further information. ****For interest rates on Fixed Deposits for Rs. 15 Lacs and above, please contact your nearest HDFC Bank branch. Effective 01st Dec'06, the interest rate applicable for premature closure of deposits will be lower of :

the original rate at which the deposit has been booked OR the base rate applicable for the tenure for which the deposit has

been in force with the Bank. The base rate is the rate applicable to deposits of less than Rs.15 lacs.

26

Enjoy a high rate of interest along with the liquidity of a Savings Account by opting for a Supersaver Facility on your savings account. Avail of an overdraft facility of up to 75% of the value of your Fixed Deposit.

Get the best of both worlds. Features & Benefits It's like two Accounts working in tandem to give you better returns. Choose between a Savings Account or Current Account to link to your Fixed Deposit. Avail an overdraft facility to supplement your household or business needs. Pay back with interest only on the drawn amount, while the remaining Fixed Deposit continues to earn you interest. Flexibility in altering period of deposit, maturity and payment instructions, principal amount and rollover mode. Senior citizens enjoy a higher rate of interest on their Fixed Deposits.

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Pure and Reliable Mudra is great value for money. These 24 K Gold Bars are made in Switzerland and come with an Assay certification, signifying the highest level of purity as per international standards. Convenience Mudra Gold Bars are currently available in 2.5, 5 g, 10 g, 20g and 50 g denominations. The Gold Bars are presented in tamper-proof certicard packs. 5g 10g 50g Heart Shaped Price Mudra Gold Bars are competitively priced based on the daily prices in the international bullion market. The price is inclusive of customs duty and other charges involved in the retailing of gold bars. Todays Gold bar prices are: Heart Shape: , 5g , 10g , 20g , 50g

28

Buy Now Mudra gold bars are available at over 537 HDFC Bank branches across 220 cities.

HDFC

SECURITIES ACCOUNT

3-IN-1 ADVANTAGE

SAVINGS , DEMAT & TRADING

The Account gives you the power to: Transact in real- time without risk of transaction delays. Receive instant order and trade confirmation. Get live quotes, market trends and economy updates as it happens. Get timely recommendations on Equity, Mutual Funds and IPO from our high quality research team. Pay lower brokerage on higher trading volume.

Services The 3-in-1 Advantage Account is well suited for investors who are starting out as well as the experienced trader. You can trade on both BSE and NSE through the internet or over the phone. Our services include:

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Cash-n- Carry Transactions The traders result in delivery of shares into your Demat Account .You can sell these shares after the delivery is realized in your account. Day Trading These are traders that are squared-off on the same day i.e. if you buy shares, you can sell them on the same day. These traders do not result in delivery . Derivatives Trade futures and option online. Subscribe to IPOs You also have access to a dedicated Customer Services Desk for any help needed during trading.

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts.

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HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository particpant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Features & Benefits As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in Demat form has the following benefits : Settlement of Securities traded on the exchanges as well as off market transactions Shorter settlements thereby enhancing liquidity Pledging of Securities. Auto cerdit of Rights / Bonus / Public Issues / Dividend credit through ECS Auto Credit of Public Issue refunds to the bank account

No stamp duty on transfer of securities held in demat form No concept of Market Lots

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 Change of address, Signature, Dividend Mandate, registration of power of attorney, transmission etc. can be effected across companies held in demat form by a single instruction to the Depository Participant (DP). Holding / Transaction details through Internet / email

Whatever the occasion, our range of Personal Loans can help. The procedure is simple, documentation is minimal and approval is quick. Features & Benefits Borrow up to Rs 10,00,000 for any purpose depending on your requirements. Flexible Repayment options, ranging from 12 to 48 months. Repay with easy EMIs. One of the lowest interest rates. Hassle free loans - No guarantor/security/collateral required. Speedy loan approval. Convenience of service at your doorstep. Customer privileges If you are an HDFC Bank account holder, we have special rates for you. if you are an existing Auto Loan customer with a clear repayment of 12 months or more from any of our approved financiers or us, you can get a hassle free personal loan (without income documentation). If you are an existing HDFC Bank Personal Loan customer with a clear repayment of 12 months or more, we can Top-Up your personal loan.

32

Credit-Shield In case of death or total permanent disability of the loanee, the loanee/nominee can avail of the Payment Protection Insurance (Credit Shield) which insures the principle outstandings on the loan upto a maximum of the loan amount. Principle outstanding is defined as the amount of loan outstanding (not including any arrears in payment or interest thereon) at the Date of Loss, having accounted for payments made and interest accruing as determined in the Policy. Hence, the amount covered does not include any principal added because of non - payment of EMI and also will not include interest/ accrued charges. Personal-Accident-Cover In order to ensure that your family is taken care of we also offer a Personal Accident cover of Rs.2,00,000 at a nominal premium. Premium will be charged for both these products which will be deducted from the loan amount at the time of disbursal. A transaction fee of Rs.350 will also be deducted at the time of disbursal. Please note that service tax @ 12.36% will also be charged.

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Features & Benefits Loans upto Rs. 7.5 Lakhs for Education in India and upto for Education abroad! Attractive interest rates. Repayment to start 1 year after course completion / 6 months after obtaining employment (whichever is earlier) Loan available upto tenure of 7 years including moratorium period. Hassle free loans and speedy approvals. Convenience of service at your doorstep. Loans available for other course related expenses also! Special privileges Loans disbursed directly to the educational institution. Loan to be released as per fee schedules of institutes. Loans available for short duration/ job oriented courses also. Rs. 15 lakhs

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GOLD

DEBIT

CARD

DFC Banks EasyShop Gold Debit Card provides you a world of privileges that match your status and lifestyle. Cash Back of Re.1/-for every Rs. 100/-spent Zero Surcharge at Petrole Pumps Insurance Cover Death Cover by Air/Road- Sum assured Rs.5,00,000/ Fire &Burglary Cover of Rs .50,000/-for the items purchased under Debit Card Loss of Baggage Insurance Cover of Rs.20,000/-

Special offers at Premium outlets, Hotels and Restaurants Zero Liability: No liability to any fraudulent POS Transactions on Debit Card that takes place 30 days prior to reporting the card loss, upto Rs.1,00,000/-

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HDFC Bank Easy Shop Woman's Advantage Debit Card is India's first Woman's Debit Card of its kind. Not only does it replace your ATM card, it also opens a world of privileges that match your status and lifestyle Features & Benefits Cash Back of Re. 1 for every Rs. 200 spent*: For every Rs. 200 that you will spend , you will receive Re. 1 as cash back .This cash back is valid on all purchases made through the card, at all times of the year!!! Specialised Services*: A unique service number will be available for Woman's Debit Card customers to avail information / booking for the services listed ahead. Just call, quote your card number and use any of the services. These services are subject to availability and rendered on a best effort basis Entertainment assistance : Dining Referral and Reservation Assistance Flower & Gift Delivery Movie Tickets

36

Home assistance: Financial Planning & Advisory Services Assistance Electrical & Electronic Gadget Repair Assistance Pest Control Assistance Home Cleaning Assistance Wellness : Medical Check Up Packages Nursing Care Arrangement 50% discount on locker fee*: You will be entitled to a 50% discount on locker fee for the 1st year. This waiver would be applicable for only one locker per card. In order to avail of the discount, please show your Woman's Advantage Debit Card at the branch. Special discount on purchase of Gold Bars*: Preferential pricing will be given to you on purchase of Gold Bars. In order to avail of the special discount, pleas show your Woman's Advantage Debit Card at the branch. Insurance cover*: You will be entitled to Personal Accident insurance cover of 2 lacs. Zero Liability*: You will not have any liability to any fraudulent Point of Sale transactions on the debit card, which take place upto 30 days prior to reporting the card loss. Free BillPay*: You will not be charged for Bill Pay Service, normally chargeable at Rs. 100 p.a. Daily Limits: Rs. 15000 at ATMs for Withdrawal and Rs. 25000 at merchant establishments for shopping.

37

*Conditions Apply

The Get

best all

features with with all the

you the HDFC

could services Bank

ask offered

for by

in a

credit Credit

card. bank. Card.

Combined

world-class

International

Silver

Spending money was never so rewarding! Features & Benefits All-purpose-credit-card The HDFC Bank Silver Credit Card can be used for all your requirements, be it shopping, eating out, holidaying, fuelling up your vehicle, railway ticket reservations - just about any financial requirement, planned or on impulse. Earn-while-you-spend With us, money spent is money earned. For every Rs. 150 you spend, you earn 1 reward points. You can redeem these accumulated points for exciting gifts and offers from our exclusive rewards program. Add-on-cards Get up to 3 add-on cards for your spouse, parents, siblings (own brother/sister), son and/or daughter (over 18 years) and allow them to enjoy the many benefits of the HDFC Bank International Silver Credit Card

38

Zero-liability-on-lost-card In case your credit card gets lost, report it immediately to our 24-hour call centre. After you do this, you carry zero liability on any fraudulent transactions on your card. Widely-accepted Accepted at over 110,000 merchant establishments across India and Nepal and close to 18 million merchant establishments around the world.

39

It's overloaded with travel benefits - discounts, cashback offers, air miles redemption. Get an HDFC Bank International Gold Card and get introduced to a whole new world of privileges. Features & Benefits Up to 5% cashback on air ticketing 5% Cash back on domestic air transactions above Rs.10,000 through domestic airline websites (2.5% on transactions below Rs.10,000). 5% cashback on train ticketing Get 5% cashback on railway tickets purchased with your HDFC Bank Gold Credit Card at the Indian Railways website www.irctc.co.in. Discounts on hotel tariff A whopping 50% discount on hotel stays across India and abroad, through complimentary Silver Benefit membership to the International Business Traveller's Club. You are also eligible for up to 50% discounts for car rentals from Hertz-Rent-aCar, through the IBTC membership Special Offers from HDFC Bank 40

8 paise discount on foreign exchange selling rates. Locker facility at 20% discount on applicable rates. 4% off on applicable rates of Gold bars. Waiver of 1st year Annual Maintenance Charges on Demat account 50% waiver in subsequent years. 0.25% off on applicable Auto loan rates. and

Insurance benefits

Air Accident Cover of Rs 25 lakhs. Rail/road accident cover of Rs 3 lakhs. Accident Hospitalisation cover of Rs 50,000. Zero liability on lost/stolen card (after reporting).

W.e.f. 1 June 2007, all other complimentary insurance covers will be withdrawn. Greater reward points Earn 2 reward points per Rs 150 spent on the Gold Credit Card and redeem them against airmiles across leading airlines. The air and train transactions earning cashback will not be eligible for reward points. Rewards points redemption After earning all those reward points on your HDFC Bank Gold Credit Card, redeem them for exciting gifts and services! You could even convert them to airline miles with India's leading airlines through the My Rewards programme. Worldwide acceptance Accepted at over 23 million Merchant Establishments around the world, including 110,000 Merchant Establishments in India. Revolving credit facility Pay a minimum amount, which is 5% (subject to a minimum amount of Rs.200) of your total bill amount or any higher amount whichever is convenient and carry forward the balance to a better financial month. For this facility you pay a nominal charge of just 2.95% per month (35.4% annually) (2.90% per month 34.8% annually for HDFC Bank Account Holders). 41

Free Add-on card You can share these wonderful features with your loved ones too - we offer the facility of an add-on card for your spouse, children or parents. Allow us to offer add-on cards to you FREE OF COST with our compliments.

Are you a frequent flyer for business or often holiday abroad? Are you an importer/exporter of foreign and Indian goods? If you need to deal in foreign currency and keep tabs on exchange rates every now and then, transfer monies to India, make payments etc., HDFC Bank has a range of products and services that you can choose from to transact smoothly, efficiently and in a timely manner. We offer the following Foreign Exchange Products and Services. Foreign Exchange and Trade Services

42

The following are different methods of transacting in Foreign Exchange and remitting money.

Travellers Cheques Foreign Currency Cash Foreign Currency Drafts Cheque Deposits Remittances Cash to Master Trade Services Forex Services Branch Locator

Important guidelines and schedules All Foreign Exchange transactions are conducted by strictly adhering to RBI guidelines. Depending on the nature of your transaction or point of travel, you will need to understand your Foreign Exchange limits.

RBI Guidelines Forex Limits Non HDFC Bank Account Holders

KIDS ADVANTAGE ACCOUNT Who can Apply?

43

All kids under 18years of age The parents/ guardian * must have a savings Account with us . if not, he/she needs to open anew Savings Account Natural guardian only . Legal guardian would be permitted to open accounts under this product only on an exceptional basis.

Features & Benefits Free ATM/Debit Card for kids between 7-18 years of age Free Starting instructions(SI) on the parent /guardian Savings Account Investment tie ups with Mutual Funds for the secured future of child Personalised cheaque book in the name of the child Free InstaAlert Free Mobile Banking ,phone Banking& Net Banking facilities

Average Quarterly Balance (AQB) Requirement FD of Rs. 10,000/- in the name of the child with a Zero Balance savings Account, mandatory at the time of account opening In case FD balance falls below Rs. 10,000/- then AQB of Rs.5,000/- to be maintained

Average Quarterly Balance (AQB) Non Maintenance charges If AQB less than 5,000/-& FD balance is less than 10,000/-

44

Than Rs. 300/- charged per quarter.

INSTITUTE & SCHOOL FEE COLLECTION

Who can Apply? Any Institute with minimum 500 students . Average annual fee of Rs. 10,000/-per student .

Features & Benefits Allows parents to walk in to select branches of HDFC Bank to deposit the fee . Daily report of the fee collection is sent to the school by CMS Team through an email. The Institute /School can avail of Trust Account benefits by opening a Trust Account. Average Quarterly Balance (AQB) Requirement The Institute account can be Trust Account or normal Savings Account . The AQB requirement will be as per the product availed . Average Quarterly Balance (AQB) Non maintenance charges Non maintenance charges for the required AQB will be as per the product availed.

45

Who can Apply? Existing Customer- having 1 or more accounts (Savings/NRI/Salary Reimbursement/Kids Account) with us at the same or different branches. New Customer You and family* members intend to have 1 or more accounts with us. Spouse, father , mother, son, daughter, brother, sister, grand parents or grand children

Eligibility Upto 4 Savings Accounts of individuals can be clubbed under a single family Savings Group. The Family Savings Group links together upto four individual HDFC Bank accounts (same family) under a single group. Take advantage of the group Average Quarterly Balance (AQB) and operate your individual accounts without worrying about minimum balance. Features & Benefits All account holders can operate their account freely without worrying about their minimum balance. Family members with NRI status can also be part of the group. Get 5 Free Cash withdrawal transactions on SBI ATMs per group per month.

46

 Upto 2 free DD's/ MC's on HDFC Bank locations per account per month (max. up to Rs. 25,000/- per instrument per day). Free International Debit Card for all account holders till the account is part of the Family group. (NRO Accounts will be issued only ATM cards) Free BillPay & InstaAlerts facility for all account holders till the account is part of the Family Group. Free Standing Instructions for investment into Mutual Funds. Free OneView to access all your accounts. Free MobileBanking, NetBanking & PhoneBanking Payable-at-par facility at a nominal cost for all accounts in the family group.** **Available only on request at the branch Cash delivery @ Rs. 50/- per delivery***

DIRECT BANKING Phone Banking

CHANNELS

Avail the convenience of operating the Bank Account from the comfort Of home , without even visting the branch. Carry out multiple transactions with great ease. e.g.:

47

Balance enquiry Details of last 5 transactions Cheque status enquiry and request for stop cheque Cheque book & statement request Information on various product offering & lots more!

Net Banking Your account is where you are! Get real- time information at the click of a button HDFC Banks NetBanking is secure. It uses industry standard technologies & infrastructures, thus ensuring the safety & security of the transactions. Following are some of the transactions that can be carried out; View Account Balance & Securities Transfer Funds between accounts Create Fixed Deposit online Request for a Demand Draft Pay Bills Order for a cheque book, request stop payment on acheque and lots more!

48

Mobile Banking Access the Bank Account with HDFC Banks unique Mobile Banking Service. MobileBanking works through asset of text messages (SMS) with out even making a call. All one needs to do is to type in the specified code for the transactions as a text message and spend it to 676712 HDFC Banks Mobile Banking service provides a host of features at your finger-tips through SMS: o Get the balance details. o Obtain last 3 transactions details o Request for a cheque o Stop a cheque payment o Enquire cheque status o Request an account statement o Get Fixed Deposit details &lots more!

49

CONVENIENCE
Bill Pay

BANKING

No need to stand in long queues and wast time and effort for paying bills through Utility companys counters. Register for Bill Pay and pay Utility Bills through ATM/Net Banking /Phone Banking/Mobile Banking. Pay at your convenience any time, from any where Over 80 utility companies covered , comprising of Electricity, Telephone, Mobile, Gas and Life Insurance companies across India Register online on HDFC Bank website or by submitting the BillPay registration from the branch. Insta Alert Be updated on your accounts while on the move. Receive alerts for transactions in your account. SMS alerts on mobile phone or e-mail alerts on e-mail or both Choose from the various alert types :

Debit transactions greater than Rs. 5,000/- ,Rs.10,000/-, Rs. 20,000/-, Rs.50,000/Credit in account greater than Rs.5,000/- , Rs. 10,000/- ,Rs. 20,000/- ,Rs. 50,000/Account Balance below ,Rs. 50,000/Weekly account balance Utility bill payment due alert Rs.5,000/- , Rs. 10,000/- ,Rs. 20,000/-

Register online through Net Banking or by submitting the Insta Alert registration form at the branch. 50

COMARATIVE CHART Features& benefits AQB Requirement(Rs. ) FD Requirement for Nil AQB (Rs.) International Debit Card p.a. (Rs.) Womens Advantage Debit Card Charges p.a. (Rs.) Gold Debit Card Charges p.a. (Rs.) x 500/500/Free for primary applicant. Rs. 250/-for the other Free Account Statement PAP (Free Issuance) Quarterly x Quarterly Free usage upto Rs.50,000/per month. Above Rs.50,000/Charge of Rs.2.90 per Quarterly Free usage upto Rs.50,000/per month. Above Rs.50,000/Charge of Rs.2.90 per applicants Monthly Free usage upto Rs.1,00,000/per month. Above Rs.1,00,000/Charge of Rs.2.90 per 10,000/Free Maestro Debit Card (for then kid ) x 150/50,000/100/50,000/Free(for all applicants) 150/1,00,000/Free (for all applicants) Free (for all applicants) Kids Advantage A/C 5,000/Savings Regular Plus A/C 5,000/Savings Plus A/C 10,000/Savings Max A/C 25,000/-

51

thousands for the entire Free DD/MC (at home branch) x amount x

thousands for thousands for the entire amount Free upto Rs.25,000/per DD/MC on HDFC Bank locations 2 per month the entire amount Free upto Rs.50,000/per DD/MC on HDFC Bank locations Unlimited

Free transactions on SBI/Andhra Bank ATMs Free transactions on other Bank ATMs Bill Pay Charges p.a. InstaAlert Phone Banking, Net Banking, Mobile Banking& NEFT Waiver on Locker Rental Education Insurance

3 per month

3 per month

Unlimited

Rs.100/Free Free

Rs.100/Free Free

Free Free Free

Free Free Free

25% discount 50% discount for the first for the first year x year x

Free Education Insurance of Rs. 1,00,000/- in the event of death by accident of the parent/

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Sweep out facility

guardian When the balance in the Kids A/C reaches Rs.10,000/the amount in excess of Rs.5,000/- is swept out into an FD for a period of 1 year and 1day x

Balance in excess of Rs.50,000/- is swept out into an FD with a min. value of Rs.25,000/for a period of 1 year and 1day

Third Party cash deposit / withdrawal (at non home branch)

Free upto of Rs.50,000/per day

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DOCUMENTATION FOR RESIDENT INDIVIDUALS Documents for establishing Proof of address: 1. Passport (not expired) 2. Permanent Driving license(expired) 3. Telephone bill/electricity bill of public and approved private operators in the state (not older than 3 months from the date of account opening) 4. Bank Account Statement of a PSU/Private Sector/Foreign bank 9not older than 3 months from date of account opening ). 5. Election Card/Voters ID(if it has address). 6. Ration Card 7. Letter/Monthly outgoings bill(only from registered societies)* 8. Copy of titles deeds (wherein original title deeds are registered and stamped) 9. Lease/Leave & License agreement /Rent agreement copy duly stamped accompanied by CPV done by branch staff. 10. Latest property tax bill/property tax paid recipt.

54

11. ) Senior Citizens Card issued by the State /Central Government of India (if it has address). 12. )Mobile post paid bill of public /private operators in the state . 13. )Consumer gas connection card/book OR latest pipe gas bill* 14. )Domicile certificate with communication address issued by Municipal Corporation. 15. )Arms License issued by the State / Central Government of India authority which contains photograph of the applicants. 16. )Photo ID Card with photograph (issued by J&K & Goa State Government ).* 17. )Photo Social Security Card issued by Central /State Government /Union territories. 18. Pension Payment Card issued by State / Card Government of India with Photograph of applicant. 19. )IRIS scanned household card with photograph(issued by Andhra Pradesh Government). -On the letterhead, which carries the societys registration number. The letter should carry the applicants name & full address as well as the signatories full name , designation (Secretary, President ) and address (Maintenance charges receipt issued by the society NOT acceptable .

55

 -Gas charges paid receipt not acceptable . -ID Card issued by the State Government of J&K is acceptable if they carry the connotation-government of Jammu &Kashmir , Civil Secretariat, Srinagar/ Jammu

Mutual funds are funds that pool the money of several investors to invest in equity or debt markets. Mutual Funds could be Equity funds , Debt funds or balanced funds. Funds are selected on quantitative parameters like volatality, FAMA Model, risk adjusted returns, rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions / due diligence processes with fund managers. Advantages of Investing into a Mutual Fund The reason that mutual funds are so popular is that they offer the ability to easily invest in increasingly more complicated financial markets. A large part of the success of mutual funds is also the advantages they offer in terms of diversification, professional management and liquidity. Flexibilty - Mutual Fund investments also offers you a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment.

56

Affordability - They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy. Liquidity - In open ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV Diversification - Risk is lowered with Mutual Funds as they invest across different industries & stocks.

Professional Management - Expert Fund Managers of the Mutual Fund analyse all options based on experience & research Potential of return -The fund managers who take care of your Mutual Fund have access to information and statistics from leading economists and analysts around the world. Because of this, they are in a better position than individual investors to identify opportunities for your investments to flourish. they are in a better position than individual investors to identify opportunities for your investments to flourish. Low Costs - The benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. Regulated for investor protection - The Mutual Funds sector is regulated to safeguard the investor's interests. Your relationship managers will help you determine your investment profile, which will be based on your needs, possibilities and expectations. Your investment profile will help you choose the type of investments that suits you the best.

57

DIAGRAMATIC REPRESENTATION

TYPES OF MUTUAL FUND Open ended Fund/ Scheme: An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. They key feature of openend scheme is liquidity. Close-ended Fund/ Scheme: A close ended fund or scheme has a stipulated maturity period e.g. 5-7 years . The fund is open for subscription only during a specified period at the time of launch of the scheme . Investors can invest in the scheme at the time of initial public issue and there after they can buy or sell the units of the scheme on the stock exchanges where the units are listed .In order to provide an exit route to

58

the investors , some close ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulation stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds scheme disclose NAV generally on weekly basis

ADVANTAGES AND DISADVANTAGES OF MUTUAL FUND Advantages of Mutual Funds: Professional Management - The primary advantage of funds (at least theoretically) is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments. Diversification - By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of a~sets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less anyone of them can hurt you (think about Enron). Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn't be possible for an investor to build this kind of a portfolio with a small amount of money. Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay. Liquidity - Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time. Simplicity - Buying a mutual fund is easy! Pretty well any bank has its own 59

line of mutual funds, and the minimum investment is small. Most companies also have automatic purchase plans whereby as little as $100 can be invested on a monthly basis. Disadvantages of Mutual Funds :

Professional Management- Talk about this in details in a later section .Did you notice how we qualified the advantage of professional management with the world theoretically ? Many investors debate over whether or not the so-called professionals are any better than you or I at picking stocks . Management is by no means infallible, and even if the funds loses money, the manager still takes his/her cut.

Costs- Mutual funds dont exist solely to make your life easier all funds are in it for a profit .The mutual fund industry is masterful at burying costs under layers of jargon. These costs are so complicated t5hat in this tutorial we have devoted an entire section to the subject.

Dilution- Its possible to have too much diversification (this is explained in our article entitled Are You Over Diversified ?). Because funds have small holdings in so many different companies , high returns from a few investment s often dont make much difference on the overall return . Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

Taxes When making decisions about your money, fund managers dont consider your personal tax situation , For example , when a fund manager sells a security ,a capital gain tax ix triggered, which affects how profitable the individual is from the sale . It might have been more advantageous for the individual to defer the capital gains liability. 60

Standard Chartered Mutual Fund

Standard Chartered mutual fund is promoted by banking giant Standard Chartered and exclusively focuses on debt schemes. The fund started as ANZ Grindlays Mutual Fund and was later renamed as Standard Chartered Mutual Fund after the takeover of Grindlays Bank by Standard Chartered . Here is a list of mutual funds of Standard Chartered: Equity: Standard Chartered Classic Equity Fund Standard Chartered Premier Equity Fund Standard Chartered Imperial Equity Fund Standard Chartered Enterprise Equity Debt: Grindlays Super Saver Income Fund - Investment Plan Grindlays Super Saver Income Fund - Medium Term Plan Grindlays Super Saver Income Fund - Short Term Plan Grindlays Dynamic Bond Fund Grindlays Cash Fund Grindlays Government Securities Fund - Investment Plan Grindlays Government Securities Fund - Short Term Grindlays Floating Rate - Short Term Plan Grindlays Floating Rate Fund - Long Term Plan Standard Chartered All Seasons Bond Fund Fixed-Maturity-6th-Plan-NFO

61

1. Pick up an application form for the scheme of your 2. Fill in the form 3. Submit the form along with the cheque/draft for the investment amount 4. The fund house processes your application 5 . You receive your units by way of an accounts statement

The mutual fund's offices One of the mutual funds distributors Download the form from fund's website Select bank branches

The mutual funds office One of the mutual funds distributors Select bank branches

62

The actual process of investing through mutual funds is simple

63

ABOUT SIP WHAT IS SYSTEMATIC INVESTMENT PLAN (SIP)? A Systematic Investment Plan (SIP) is an option that allows you to invest a fixed sum at periodic intervals on specific dates. This involves making investment of fixed sums of money, in a particular scheme, at predetermined periodical intervals of time. For instance, you could invest Rs.l 000 every month into a particular scheme. Some investor find it difficult to decide when to invest a lump sum amount for fear that they will invest when the NA V s are high. As this technique delivers the lowest average cost per unit, it is ideal for such investors. It is also beneficial for investors who wish to invest

64

small amounts at regular intervals. Why SIP? A Systematic Investment Plan works for you in three ways:

It helps you to save regularly and thus inculcates a sense of discipline.

It harnesses the power of compounding .

It is the best possible way you to reign in impulsive buys-and-sells that otherwise one is gripped by in times of market volatility. - Rupee cost averaging.

Power of compounding:

In reality, further the need deeper is the urge to postpone. But the fact is the longer you leave your money invested, the faster it will grow. When your returns begin to earn money and those returns start to earn ... small amounts of money can snowball very quickly. Compounding being the tool that allows you to make the most of small amounts invested for long periods To find out how you can harness compounding, have a go at this Cost Of Delay calculator. It tells you how much more you need to save each month for each year of delay. Rupee cost averaging

A now familiar concept, it tells you how effective disciplined investing on specific dates is, as compared to lumpsum investing on random dates.

65

This could be easily understood through this illustration:

Amount invested 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

NAV

Units

Cum. units

Cum. amount 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000

Value

of

investment 1000 1900 3111 4422 5824 7310 10559 9695 8618 8834 11601 15502

10 9 10 11 12 13 17 14 11 10 12 15 .

1 0 0 .0 0 1 1 1 .1 1 1 0 0 .0 0 9 0 .9 0 9 8 3 .3 3 3 7 6 .9 2 3 5 8 .8 2 4 7 1 .4 2 9 9 0 .9 0 9 1 0 0 .0 0 8 3 .3 3 3 66.667

100 211 311 402 485 562 621 693 783 883 967 1033

Total amount = Rs.12000, Total units = 1033 Average cost per unit = Rs.120000/l033 = Rs.11.60 Average price per unit = Rs.12 SIPping the Standard Chartered Mutual Fund way: 1)Through Standing Instructions: If you hold accounts with Standard Chartered Bank, HDFC Bank and UTI Bank you just need to fill in the Standing Instruction slip that is contained in the main

66

SIP application form. You have to give us at least 6 debits to enrol for a SIP. Through Electronic Credit Service (ECS): If you do not have an account with any of the above mentioned banks then use our powerful AutoSave feature. Just fill up a "Mandate form for ECS (debit)AutoSave" form accompanied with a copy of a blank cheque. For either modes, you do not apply for a lumpsm investment to start a SIP. SIPs will also be available to investors during the New Fund Offering (NFO) of Standard Chartered Classic Equity Fund. Debit Mandates Investors who hold bank accounts with Standard Chartered Bank no longer have to write out cheques whilst investing in any of our funds. The Debit Mandate is included as a part of the application form. Thus it saves you the bother of carrying your cheque book every time you think of investing.

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Scheme options (equity)

The Standard Chartered Imperial Equity Fund

Presenting the Standard Chartered Imperial Equity Fund. The Imperial Equity Fund is an open - ended diversified equity fund that would seek to invest in India's outstanding companies. The scheme will invest in well - managed growth companies that are available at reasonable value. Companies would be identified through a systematic process of forecasting earnings based on a deep understanding of the industry growth potential and interaction with company management to access the company's core competencies to achieve long term sustainable profit growth.

The Standard Chartered Classic Eguity Fund fundamentally good businesses.

The Scheme is expected to

deliver superior relative returns for investors looking for a focused portfolio of

Presenting Standard Chartered Classic Equity Fund - a Fund that seeks to stand by you through the test of time. Standard Chartered Classic Equity Fund is a truly diversified fund that would not be limited by diktats of investing in either a particular section of the market or a particular style of investing. It would attempt to retain its freshness and stay contemporary with an unrestricted investment style (within pre-defined and controlled boundaries) and thus deliver returns that are truly consistent and relevant.

68

The Standard Chartered Premier Equity Fund: Introducing the Standard Chartered Premier Equity Fund, an innovative open ended equity fund that attempts to generate wealth over the long term through a potent combination of well defined investment strategy and a robust investment management structure. At Standard Chartered Mutual Fund we believe that wealth creation is a patient process that involves a good blend of myriad themes like the identification of a basket of growth ideas, investing in them at an early stage and the conviction to hold on for the longer term. For opportunities then will abound. Over the past decade, Indian companies have converted their competitive advantage to market d0Il!inance and in the process have created serious wealth for investors over a 5-year period. If the software and the telephony sectors like the insurance, aviation to name a couple where we envisage such growth. What differentiates the Premier Eguity Fund? The Premier Equity Fund is differentiated by the fact that it will, right from its inception, attempt to create the perfect investing environment and hence will foster the wealth creation process. In this sense it would attempt to create the perfect environment right at the beginning through a combination of measures like limiting the corpus size to a rather small size, restricted inflows after the NFO and entry/exit load.

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COMPARISON OF STANDARD CHARTERED EQUITY SCHEMES:

CLASSIC EQUITY FUND Standard Charted Type of scheme New fund offer Minimum application amount of SIP Options I I p r Open ended equity fund 10 1000 per month Growth & dividend payout & reinvestment options Entry load Exit load Fund manager NIL 1 % within lyear I Rajiv Anand

IMPERIAL EQUITY FUND

PREMIER EQUITY FUND

Open ended equity fund 10 1000 per month Growth & dividend payout & reinvestment options NIL 1% within 1 year Kenneth Andrade

Open ended e uity fund 10 2000 per month Growth & dividend payout & reinvestment options 2.25% 1 % within 1 year Kenneth Andrade

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Types of options

Dividend payout Advantages Disadvantages Income received in hand. No scope of long term capital appreciation of earnings. . . .. would like to .. receive an mcome

Growth Capital appreciation. Could result in loss of capital if the fund does not perform well. ... do not have any immediate

Suitable for investors

Divident reinvestment Increase in no. of units. Could result in loss of value of units if the funds does not perform well . ... would like to ensure that their

in hand & those who ...

need for cash &

gains are

who would like to use their dividend income elsewhere.

would prefer to reap better wealth in the long run.

converted into units from time to time.

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IMPORTANCE OF THE STUDY

The business management courses are insufficient to solve all the problems arising in practical field. There is no any shortcut way to solve management problems coming out of concern. Thus this eight weeks summer training in any successful running or organization, through it is a part of fulfillment of M.B.A. program is must for the students. The aim of training is to develop the ability of correct decision making. A correct decision cut the right moment itself is an added advantage for any problem arising out on regular basis.

72

SCOPE OF THE STUDY

As we know research inculcates scientific and inductive thinking and it promotes the development of logical habit of thinking and organization. The role of research in several fields of applied economies, whether related to business or to the economy as a whole, has greatly increased in modern times.A Research Project is a medium to search optimum solution to the part of a major existing problem. Often it is done for anticipating the future. In business scenario a research is a crucial part of management functioning

73

LITERATURE REVIEW
This project is done through institute, industry survey under the title Banking Services and Investment Products For preparing this project we went to many organizations institutional organizations of ALligarh .We collected information of customers consuming various services provided by HDFC Bank Civil Lines Aligarh . We have used document of the HDFC Bank and others departmental document to find out information about services which are provided by HDFC Bank. We have also used information from internet. How to made questionnaire this is done by reading the various books i.e. Research Methodology-R.C. Kothari, Market Research-Mehrotra etc. we discussed with our guide Mr. Meeraj Rizvi, and then we started Research. We went to the different government offices and corporate offices and observe the following things--1. Whether our product is available or not at that company & organizations institutional. 2. If not then we saw of which company product is available. 3. What is strength of various services which are provided by HDFC Bank. 4. Has that organization so many brands of Banking services. We check the response of customer about the services which are used by organization using the questioner. We check the various options Investment options used by public What is the awareness of Banking service in general public. . After all it becomes possible to make a meaningful and useful project report.

74

RESEARCH DESIGN
RESEARCH PROCESS The Marketing Research Process

Defining The Research Objective

Develop The Research Plan

Collect The Information

Analyzing The Information

Interpreting The Final Result

75

SAMPLE SIZE 100 CUSTOMER SAMPLING TECHNIQUE SIMPLE RANDOM SAMPLING The Research Objective: The objective of my project to identify the target marking and segment it for HDFC Bank Ltd. Products in Aligarh. During the course of the project, I got the in-depth knowledge of all products offered by HDFC Bank like Saving Account, Fixed Deposit, Personal Loan, Car Loan, Mutual Funds and Insurance Products etc. So my objective was to segment whatever is applicable in that particular market.

a) To know the attitude of customers towards the bank b)

To know the thinking of customers about token system and other

banking services.

c) How

age factor affect the investment decision of customer in various

products offered by HDFC bank.

d)

To know the customer preference towards HDFC products.

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In this way, I have segmented the various markets of Kanpur according to their need and that was my objective. Develop The Research Plan:The second stage of research process is developing the most efficient plan for collecting the needed information. Designing a research plan calls for decision on the data sources; research approaches, sampling plans and contact methods. Data Collection: The researchers can collect the secondary data, primary data or he can collect both. SECONDARY DATA Secondary data is that data, those are collected for another purpose and already exist somewhere. Secondary data provide a starting point for research and offer the low cost and ready availability. When the needed data do not exist the researcher have to collect the primary data. PR IMARY DATA Primary data is that data which is freshly collected for a specific purpose for a specific research project.

77

SURVEY RESEARCH: Surveys are the best method for descriptive research. Companies undertake this method to learn about the peoples knowledge, belief, preferences and satisfaction and to measure these magnitudes in general population. For this project report, the survey is conducted on the branches and at ATMs . RESEARCH INSTRUMENT: The instrument, which is used in this research, is mainly questionnaire method. Questionnaire Method: A questionnaire consists of a set of question presented to set of respondents. Due its flexibility, the questionnaire is far by the most common instrument used to collect primary data. Questionnaires are needed to be carefully developed, tested before they are administrated on a large scale. The questionnaire consists of close-ended questions in order to specify all possible answer and provide answer that are easier to interpret and tabulate.

78

DATA ANALYSIS AND INTERPRETATION

WHAT DO YOU THINK ABOUT TOKEN SYSTEM?

Option Good Ok Poor

No. Of Customer 63 29 8

8% 29%

Good ok poor 63%

INTERPRETATION On the basis of above graph we can say that 63% customers say that good service provided by bank. 29% customers say that ok service provided by bank. 8% customers say good poor provided by bank.

79

WHAT DO YOU THINK ABOUT SERVICES?

2% 21%

G ood Ok P oor

77 %

INTERPRETATION On the basis of above graph we can say that 77% customers say that good service provided by bank. 21% customers say that ok service provided by bank. 2% customers say good poor provided by bank.

80

WHAT DO YOU THINK OF AFTER SALE SERVICES?

17 %

Good Ok 22% P oor 6 1%

INTERPRETATION On the basis of above graph we can say that after sale service provided by bank is. Good Ok Poor 61% 22% 17%

81

SHOULD HDFC BANK NEED TO IMPORVE IN ANY AREA? Option Yes No No. of Customer 13 87

13% Y es No 87%

INTERPRETATION On the basis of above graph we can say that need to improvement in any area Yes No 13% 37%

82

FEEDBACK OF CUSTOMER TOWARDS BANK

As the pie chart, suggest that the number of satisfied customer is much more than the unsatisfied customer. The customer who are satisfied they are satisfied by the services provided by the bank like after sale services before sale services token system and thats all but the unsatisfied customer dont think that the token they are taking from the token machine is up to the mark because if they miss their number they need to take another token and wait for some more time instead of this they think that it is more better to stand in a line so the chances of missing their turn reduces, some customer think that the after sale services provided by the bank employees is not up 83

to the mark because they are busy in some another task and they dont provide the services like the services they had provided before sale.

HOW AGE FACTOR INFLUENCE FIXED DEPOSITS

84

According to the survey and the graph the young people are not interested in fixed deposits because they want very high returns on there investment in very less time so they want there money to be invested in stock market equity and thats all thats why they dont want to invest there money in fixed deposits because here they get comparatively less returns. The person of 31 to 40 are somehow interested because they are newly married and they would like to save there money for there future. The person aged 41 to 50 Would like to invest there money in very safe area they even dont think about equity and share market because they have the responsibility of there children and they would like to save there money very - very safely thats why they have the best option of fixed deposits. The people aged 51 to 60 now they want to live there own life so they normally spend money on there own so chases of investing the money reduces. The people who invest they normally invest there money in fixed deposits or in some safe place like debt, liquidity or growth. The people aged 61 to 70 these people invest the most in fixed deposits because now they want to save there money for there grandsons or granddaughter and normally they dont spend there money on themselves.

85

HOW AGE FACTOR INFLUENCE RECURRING DEPOSITS

86

As the graph explain that the person aged 20 to 30 are investing more in recurring deposits because these people are salaried and they are working somewhere and they are getting salary each month and they can easily invest some amount of there salary in recurring deposits. The people aged 31 to 40 invest less in recurring deposits because at this point of time they are looking forward to invest in long term investments. The people aged 41 to 50 invest very less because at this point of time they would like to spend money on there children and they cant afford to make saving from there salary. The people aged 51 to 60 these people stop earning and they start spending money on themselves and they dont have sufficient amount to invest in recurring deposits. The people aged 61 to 70 they stop earning and start spending there pension thats why the number of people in this section is very less.

87

HOW AGE FACTOR INFLUENCE SAVING ACCOUNT

88

As the graphs explain the young, people generally go for salary account and thats all because they dont want, there money to be is blocked thats why they go for zero balance account. But people aged between 31 to 40 some of them are ready to open a saving account because with help of this account they are getting free facilities like internet banking, mobile banking etc. the aged 41 to 50 would like to go for saving account because now they understand the meaning of saving the importance of saving in there lifes. The people aged 51 to 60 this is the group in which maximum number of people would like to go for saving account and the people aged 61 to 70 they normally dont want to go for saving account.

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SALE OF PRODUCTS

45%

47%

F.D's R.D's SAVING A/C

8%

As the graph shows the number of customer interested in fixed deposits is more than R.Ds and saving A/C. because people want to invest there money in one go instead of investing there money per month because they think that if they have the money they can invest there money at that point of time like if a person get retired he cant go for recurring deposit than so the number of people is more in fixed deposits.

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CONCLUSION
During my training, I improved my knowledge about the marketing techniques, which is beneficial for my future. I got the experience from different type of customer. However, after getting the knowledge about the products as well as about the customers I can say that

They can watch there small savings grow by getting the right and safe investment plan at the right time.

From the analysis and interpretation of the questions following conclusion have been derived

a) Maximum customers are satisfied with token system. b)

In HDFC bank maximum customer prefer to make investment in FDs.

c) Customer (41-50 age groups) mostly prefers Fixed Deposit. d)

Customer (20-30 age groups) mostly prefers RD.

e) Customers (51-60 age groups) mostly prefer Saving Account. f)

Customers are satisfied with after sale services of HDFC.

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g)

There is less need to improve in services of HDFC bank in Aligarh.

RECOMMENDATIONS AND SUGGESTION

As it is, clear from the study that the customers exist in the market but due
to verity of products, they got confused.

Bank should have good scheme and healthy interest rate so that the sales
can be increases.

If the bank wants to grow it, should provide high returns at less investment
and also sustain its existing customer.

There should be very effective customer department, so that problem of

existing customer can be sorted out, as the customers are only one to spread the mouth of good.

There is need on the part of the bank to make people aware about the
banking system and its various unique features.

Many respondents indicate that bank should cover maximum districts in

uttar Pradesh. So that bank can benefit on its own count if it improve its departments.

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 Even

existing subscriber (most of them) dont know how many varied

function they can perform with the bank. Most of them do banking just for there day to day transaction.

To

provide competent and focus customer, bank should provide better

services.

To provide advertising and sales material those are clear as to purpose

and honest and fair as to content.

To

provide fair and expeditious handling of customer complaints and

disputes.

Provide all information to the customer so that he cant blame to the bank.

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REFERENCES BOOKS REFERED

1. Fischer, donald e. & jordan, ronald j. (2003), security analysis and

portfolio management pearson education

2. Fuller,

r.j. & farrell, j.l. (1987) , modern investment and security

analysis , mcgraw hill book companys

3. Sharpe, william f. (1995), investments, prentice hall of india pvt. Ltd. 4. .I.M. Pandey- Financial management 5.
Prassanna Chandra- Financial management

6. S.N. Maheshwari -Introduction of accounting 7. Banks documents

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APPENDIX (QUESTIONNAIRE)

What do you think about token system?

Good; Reason Ok; Poor

What do you think about services provided by HDFC bank?

Good; Reason Ok; Poor

What do you think about after sale services?

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Good; Reason

Ok;

Poor

What is your age ?

a) 20-30 ---b) 31-40 ---c) 41-50 --d) 51-60 --e) 61-70 ---

Do you like to invest in Fixed Deposit of HDFC?

Yes Reason No Dont Know

Do you like to invest in Recurring Deposit of HDFC?

Yes No Dont Know

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Reason

Do you like to invest in Saving Account of HDFC?

Yes Reason No Dont Know

In which product of HDFC you are interested to invest your saving?

F,D. Reason R.D. S.A.

Are you satisfied with HDFC banking Services?

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Satisfied Reason

Unsatisfied

Should HDFC bank need to improve in any area?

Your Suggestion / Complain?

Customer Name: Customer Tele. No.: -

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