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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 1
INDUSTRY PROFILE
Banking in India
Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790;
both are now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank
of Bengal. This was one of the three presidency banks, the other two being the Bank of
Bombay and the Bank of Madras, all three of which were established under charters from the
British East India Company. For many years the Presidency banks acted as quasi-central
banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of
India, which, upon India's independence, became the State Bank of India in 1955.
Structure of the organized banking sector in India. Number of banks are in brackets
http://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=1http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=18/2/2019 Final Projectr Eport Hdfc Auto Saved)
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History
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a
consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and
still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company
that issues stock and requires shareholders to be held liable for the company's debt) It was not
the first though. That honor belongs to the Bank of Upper India, which was established in
1863, and which survived until 1913, when it failed, with some of its assets and liabilities
being transferred to the Alliance Bank of Simla. Nationalization
Banks Nationalization in India: Newspaper Clipping, Times of India, July 20, 1969
Despite the provisions, control and regulations ofReserve Bank of India, banks in India
except the State Bank of India or SBI, continued to be owned and operated by private
persons. By the 1960s, the Indian banking industry had become an important tool to facilitate
the development of the Indian economy. At the same time, it had emerged as a large
employer, and a debate had ensued about the nationalization of the banking industry. Indira
Gandhi, then Prime Minister of India, expressed the intention of the Government of India in
the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts
on Bank Nationalization." The meeting received the paper with enthusiasm. Thereafter, her
move was swift and sudden. The Government of India issued an ordinance and
http://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/Times_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_economyhttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/File:Bank_Nationalisation_-_India.JPGhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Indian_economyhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Times_of_Indiahttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Calcutta8/2/2019 Final Projectr Eport Hdfc Auto Saved)
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nationalized the 14 largest commercial banks with effect from the midnight of July 19,
1969.Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of
political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the
Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received
the presidential approval on 9 August 1969.
The Indian banking Industry is in the middle of an IT revolution, Focusing on the
expansion of retail and rural banking. Players are becoming increasingly customer -
centric in their approach, which has resulted in innovative methods of offering new
banking products and services. Banks are now realizing the importance of being a
big player and are beginning to focus their attention on mergers and acquisitions to
take advantage of economies of scale and/or comply with Basel II regulation.
Indian banking industry assets are expected to reach US trillion by
2010 and are poised to receive a greater infusion of foreign capital, says Prathima Rajan,
analyst in Clints banking group and author of the report.The banking industry should focus
on having a small number of large players that can compete globally rather than having a
large number of fragmented players."
Liberalization
In the early 1990 s, the then Narasimha Rao government embarked on a policy
ofliberalization, licensing a small number of private banks. These came to be known asNew
Generation tech-savvy banks, and included Global Trust Bank (the first of such new
generation banks to be set up), which later amalgamated with Oriental Bank of
http://en.wikipedia.org/wiki/Nationalisationhttp://en.wikipedia.org/wiki/Jayaprakash_Narayanhttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/President_of_Indiahttp://www.celent.com/bios/PRajan.htmhttp://en.wikipedia.org/wiki/Narasimha_Raohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Narasimha_Raohttp://www.celent.com/bios/PRajan.htmhttp://en.wikipedia.org/wiki/President_of_Indiahttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/Jayaprakash_Narayanhttp://en.wikipedia.org/wiki/Nationalisation8/2/2019 Final Projectr Eport Hdfc Auto Saved)
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Commerce, Axis Bank(earlier as UTI Bank), ICICI Bankand HDFC Bank. This move, along
with the rapid growth in the economy of India, revitalized the banking sector in India, which
has seen rapid growth with strong contribution from all the three sectors of banks, namely,
government banks, private banks and foreign banks.
The next stage for the Indian banking has been set up with the proposed relaxation in the
norms for Foreign Direct Investment, where all Foreign Investors in banks may be given
voting rights which could exceed the present cap of 10%,at present it has gone up to 74%
with some restrictions.
Indian Banking Sector: Brief Introduction
Indian Banking Sector: Key Statistics
According to the Reserve Bank of India (RBI)'s Quarterly Statistics on Deposits andCredit of Scheduled Commercial Banks', March 2011, Nationalised Banks, as a
group, accounted for 53.0 per cent of the aggregate deposits, while State Bank of
India (SBI) and its associates accounted for 21.6 per cent. The share of New private
sector banks, Old private sector banks, Foreign banks and Regional Rural banks in
aggregate deposits was 13.4 per cent, 4.6 per cent, 4.4 per cent and 3 per cent
respectively.
With respect to gross bank credit also, nationalised banks hold the highest share of52.8 per cent in the total bank credit, with SBI and its associates at 22.1 per cent and
New Private sector banks at 13.2 per cent. Foreign banks, Old private sector banks
and Regional Rural banks held relatively lower shares in the total bank credit with 4.9
per cent, 4.6 per cent and 2.4 per cent respectively.
http://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Axis_Bank8/2/2019 Final Projectr Eport Hdfc Auto Saved)
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Another statement from RBI has revealed that bank advances grew 17.08 per cent annually as
on December 16 while bank deposits rose 18.03 per cent.
RBI data shows that India raised US$ 1.6 billion through external commercial borrowings
(ECBs) in November 2011 for new projects, capital outlay et al. 78 companies raised US$ 1.3
billion under automatic route and US$ 253 million was raised under the approval route (it
requires case-by-case approval by the regulator).
India's foreign exchange reserves stood at US$ 297 billion as on December 30, 2011. In recent years, deposits under non-resident Indians (NRI) schemes have witnessed an
upsurge. There was an inflow Rs 14,763 crore (US$ 2.83 billion) under NRI deposits
in 2010-11, which was 6.5 per cent higher from 2009-10. In 2011, the total of NRI
deposits was Rs 2,30,812 crore (US$ 44.2 billion), compared to Rs 2,27,078 crore
(US$ 43.5 billion) in 2010.
Indian Banking Sector: Recent Developments
The US Export-Import Bank, with a commitment of US$ 7 billion, is on a way todiversify its portfolio in India by financing projects in education, healthcare and
agriculture. After Mexico, India is the second biggest investment destination for the
bank as the entity anticipates the country to become the largest market in next 12-18
months.
India Infrastructure Finance Company Ltd (IIFCL) and IDBI Bank have inked a five-year memorandum of understanding (MoU) to launch infrastructure debt fund (IDF)
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schemes. The IDF, for which IDBI Bank and IIFCL would play strategic investors, is
expected to get launched by the end of February 2012.
With 'green power' projects getting highly popular in India, especially in the states ofGujarat and Rajasthan, banks are increasingly opening up to projects from non-
conventional (solar and wind) energy space. After receiving project proposals that
were meant for a particular industry/consumer or group of industries/consumers for
their own use, banks are now getting projects that entail commercial viability (25-100
mega watt).
With an intension to strengthen its hold in Southern India, the Uco Bank is planningto add 11 more branches in Andhra Pradesh to its 66-branch-strong network in the
state. The bank has made exemplary progress in recent past with 2,004 branches in the
country and four abroad.
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COMPANY PROFILE
Background and Inception of the companyIf ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and Chairman-
Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first to set up a bank in the
private sector. The bank was incorporated on 30th August 1994 in the name of HDFC Bank
Limited, with its registered office in Mumbai.It commenced operations as a Scheduled
Commercial Bank on 16th January 1995. The bank has grown consistently and is now
amongst the leading players in the industry.
HDFC Bank Ltd Was incorporated on August 30, 1994 by Housing Development Finance
Corporation Ltd. In the year 1994, Housing Development Finance Corporation Ltd was
amongst the first to receive an 'in principle' approval from the Reserve Bank of India to set up
a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry.
HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. In
the year 1996, the Bank was appointed as the clearing bank by the NSCCL. In the year 1997,
the launched retail investment advisory services. In the year 1998, they launched their first
retail lending product, Loans against Shares. In the year 1999, the Bank launched online, real-
time NetBanking. In February 2000, Times Bank Ltd, owned by Bennett, Coleman & Co. /
Times Group amalgamated with the Bank Ltd. This was the first merger of two private banks
in India. The Bank was the first Bank to launch an International Debit Card in association
with VISA (Visa Electron). During the year 2009-10, the Bank expanded their distribution
network from 1,412 branches in 528 cities to 1,725 branches in 779 cities. The Bank's ATMs
increased from 3,295 Nos to 4,232 Nos during the year. As on June 30, 2010, the total
number of branches (including extension counters) and the ATM network stood at 1725
branches and 4393 ATMs respectively.
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IINNTTEEGGRRAATTEEDD FFIINNAANNCCIIAALL SSEERRVVIICCEESS
SECURITISATION
Future Activities
DISTRIBUTION
HDFC CHUBB GENERAL
INSURANCE CO. LTD.
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NATURE OF BUSINESS CARRIED
HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank
has three key business segments
Wholesale Banking: The Bank's target market is primarily large, blue-chipmanufacturing companies in the Indian corporate sector and to a lesser extent, small
& mid-sized corporate and agri-based businesses.
Treasury: Within this business, the bank has three main product areas - ForeignExchange and Derivatives, Local Currency Money Market & Debt Securities, and
Equities. With the liberalisation of the financial markets in India
Retail Banking: The objective of the Retail Bank is to provide its target marketcustomers a full range of financial products and banking services, giving the customer
a one-stop window for all his/her banking requirements.
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MISSION
World Class Indian Bank Benchmarking against international standards. To build sound customer franchises across distinct businesses Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance
VISION
The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Banks business philosophy is based on four core
values such as:-
Operational excellence. Customer Focus. Product leadership. People.
The objective of the HDFC Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-step window for all
his/her requirements. The HDFC Bank plus and the investment advisory services programs
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have been designed keeping in mind needs of customers who seeks distinct financial
solutions, information and advice on various investment avenues.
Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a
customer's need and occupational status, we have a range of solutions that are second to none.
Whether you're employed in a company and need a simple Savings account or run your own
business and require a robust banking partner, HDFC Bank not only has the perfect solution
for you, but also can recommend products that can augment your planning for the future.
AREA OF OPERATION
HDFC Bank Ltd is a major Indian financial services company based in Mumbai. The Bank is
a publicly held banking company engaged in providing a wide range of banking and financial
services including commercial banking and treasury operations. The Bank at present has an
enviable network of 1,725 branches spread in 780 cities across India. They also have one
overseas branch in Bahrain and two representative offices in UAE and Kenya. The Bank has
two subsidiary companies, namely HDFC Securities Ltd and HDB Financial Services Ltd
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PRODUCTS AND SERVICES PROFILE
Savings Accounts
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever your occupation, we are confident that
you will find the perfect banking solution. Open an account in your name or register for one
jointly with a family member today.
Fixed Deposits
Long-term investments form the chunk of everybody's future plans. An alternative to simply
applying for loans, fixed deposits allow you to borrow from your own funds for a limited
period, thus fulfilling your needs as well as keeping your savings secure.
Current Accounts
Current Account is primarily meant for businessmen, firms, companies, public enterprises
etc. that have numerous daily banking transactions. Current Accounts are cheque operated
accounts meant neither for the purpose of earning interest nor for the purpose of savings but
only for convenience of business hence they are non-interest bearing accounts.
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Demat Accounts
HDFC BANK is one of the leading Depository Participant (DP) in the country with over 1 million
demat accounts.
HDFC Bank Demat services offers you a secure and convenient way to keep track of your
securities and investments, over a period of time, without the hassle of handling physical
documents that get mutilated or lost in transit.
HDFC BANK is Depository particpant both with -National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL).
Recurring Deposits
Recurring deposit is an account with the bank (like savings account). In this account, you have to
deposit certain fixed amount every month for the period proposed. In other words, if you opt to
deposit Rs.500 for 24 months, you have to deposit similar amount every month for 24 months and
you will receive the entire amount with interest during the 25th month.
Safe Deposit Lockers
Current Acc
Safe Deposit Locker facility is one of the subsidiary services provided by the Bank for
keeping the valuables in the safe deposit locker. This provides safety to the belongings of the
customers against theft / burglary. Bank provides specially designed lockers kept at specially
built strong rooms for keeping the valuables of the hirer purchased from reputed
manufacturers.
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OWNERSHIP PATERN
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different market segments and
also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment
BOARD OF DIRECTORS
PERSON DESIGNATION
Mr. Jagdish Capoor Vice President
Mr. Aditya Puri Managing Director
Mr. Paresh Sukthankar Executive Director
Mr. Harish Engineer Executive Director
Mr. Keki M. Mistry Director
Mr. Ashim Samanta Director
Mr. Arvind Pande Director
Mrs. Renu Karnad Director
Mr. C M Vasudev Director
Mr. Gautam Divan Director
Dr. Pandit Palande Director
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COMPETITORS
State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest banking
and financial services company in India by revenue, assets and market capitalization. Its
a state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2011,
it had assets of US$ 370 billion with over 13,000 outlets including 150 overseas branches and
agents globally. The bank traces its ancestry to British India, through the Imperial Bank of
India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank
in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks,
Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in turn became
State Bank of India. Thegovernment of India nationalized the Imperial Bank of India in 1955,
with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India.
ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91
billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the
year ended March 31, 2011. The Bank has a network of 2,630 branches and 8,003 ATMs in
India, and has a presence in 19 countries, including India.
HSBC Bank is a subsidiary of HSBC Holdings plc, a London based banking giant which,
according to the Forbes magazine, is the largest banking group in the world, and the 6th
largest company in the world as of April 2009. HSBC Holdings had been established in Hong
Kong in the year 1990 as the parent company to the Hongkong and Shanghai Banking
Corporation (HSBC). Further, the bank moved its headquarters from Hong Kong to London.
http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=SBIN§ion=7http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500112http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Financial_servicehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500112http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=SBIN§ion=7http://en.wikipedia.org/wiki/National_Stock_Exchange_of_India8/2/2019 Final Projectr Eport Hdfc Auto Saved)
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Axis Bank Limited, formerly UTI Bank, (BSE: 532215, LSE: AXBC) is an Indian financial
services firm that had begun operations in 1994, after theGovernment of India allowed new
private banks to be established. The Bank was promoted jointly by the Administrator of the
Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of
India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The
New India Assurance Company, The Oriental Insurance Corporation and United India
Insurance Company UTI-I holds a special position in the Indian capital markets and has
promoted many leading financial institutions in the country. The bank changed its name to
Axis Bank in April 2007 to avoid confusion with other unrelated entities with similar
name.[3]After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named as the bank's
managing director and CEO on 20 April 2009
Kotak Mahindra Bank(BSE: 500247, NSE: KOTAKBANK) is an Indian financial
service firm established in 1985. It was previously known asKotak Mahindra Finance
Limited, a non-banking financial company. In February 2003, Kotak Mahindra Finance Ltd,
the group's flagship company was given the license to carry on banking business by the
Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian
banking history to convert to a bank. Today it has more than 20,000 employees and Rs.
10,000 crore in revenue.[2]
http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532215http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=AXBChttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Unit_Trust_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/New_India_Assurancehttp://en.wikipedia.org/wiki/New_India_Assurancehttp://en.wikipedia.org/wiki/Oriental_Insurancehttp://en.wikipedia.org/wiki/United_India_Insurance_Companyhttp://en.wikipedia.org/wiki/United_India_Insurance_Companyhttp://en.wikipedia.org/wiki/Axis_Bank#cite_note-2http://en.wikipedia.org/wiki/Axis_Bank#cite_note-2http://en.wikipedia.org/wiki/Axis_Bank#cite_note-2http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500247http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=KOTAKBANK§ion=7http://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Kotak_Mahindra_Finance_Ltdhttp://en.wikipedia.org/wiki/Kotak_Mahindra_Finance_Ltdhttp://en.wikipedia.org/wiki/Non-banking_financial_companyhttp://en.wikipedia.org/wiki/Kotak_Mahindra_Bank#cite_note-ht-1http://en.wikipedia.org/wiki/Kotak_Mahindra_Bank#cite_note-ht-1http://en.wikipedia.org/wiki/Kotak_Mahindra_Bank#cite_note-ht-1http://en.wikipedia.org/wiki/Kotak_Mahindra_Bank#cite_note-ht-1http://en.wikipedia.org/wiki/Non-banking_financial_companyhttp://en.wikipedia.org/wiki/Kotak_Mahindra_Finance_Ltdhttp://en.wikipedia.org/wiki/Kotak_Mahindra_Finance_Ltdhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=KOTAKBANK§ion=7http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500247http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Axis_Bank#cite_note-2http://en.wikipedia.org/wiki/United_India_Insurance_Companyhttp://en.wikipedia.org/wiki/United_India_Insurance_Companyhttp://en.wikipedia.org/wiki/Oriental_Insurancehttp://en.wikipedia.org/wiki/New_India_Assurancehttp://en.wikipedia.org/wiki/New_India_Assurancehttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Unit_Trust_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Indiahttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=AXBChttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532215http://en.wikipedia.org/wiki/Bombay_Stock_Exchange8/2/2019 Final Projectr Eport Hdfc Auto Saved)
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INFRASTRUCTURAL FACILITIES
HDFC BANK providing good infra structure facilities which are required for employs to
perform their work in a better way, during the year the company has invested in additional
infrastructure capacity and human capital, in terms of offices, technologies ,staff, financial
consultants, in order to be well position to increase the growth momentum in the year ahead.
The company stepped up the recruitment program in the letter part of the year in preparation
for the next year.
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ACHIEVEMENTS/ AWARDS IF ANY
AWARD CATAGERY AWARD NAME
Dun & BradstreetAmerican Express Corporate
Best Bank Award 2007'CORPORATE BEST BANK' AWARD
The Bombay Stock Exchange and Nasscom
Foundation's Business for Social Responsibility
Awards
'Best Corporate Social Responsibility Practice'
Award
NDTV Profit Best Bank Award in the Private sector category.
The Asian Banker Excellence in Retail Financial
ServicesBest Retail Bank in India
Asian BankerOur Managing Director Aditya Puri wins the
Leadership Achievement Award for India
Finance Asia Country Awards For Achievement
2008'Best Bank And Best Cash Management Bank'
CNN-IBN 'Indian of the Year (Business)'
Nasscom IT User Award 2008 'Best IT Adoption in the Banking Sector'
Business India 'Best Bank 2008'
Forbes Asia Fab 50 companies in Asia Pacific
Asian Banker Excellence in Retail Financial
ServicesBest Retail Bank 2008
AsiamoneyBest local Cash Management Bank Award voted
by Corporates
http://www.hdfcbank.com/aboutus/awards/dun_awards_07.HTMhttp://www.hdfcbank.com/aboutus/awards/dun_awards_07.HTMhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://openwindow%28%22/common/bestbank07.htm%22,%22%22,%22width=640,height=450,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://openwindow%28%22/common/bestbank07.htm%22,%22%22,%22width=640,height=450,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://www.hdfcbank.com/aboutus/awards/award_2006.htmhttp://openwindow%28%22/common/bestbank07.htm%22,%22%22,%22width=640,height=450,scrollbars=yes%20,menubar=no,location=no,left=0,top=0%22)http://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/dun_awards_07.HTM8/2/2019 Final Projectr Eport Hdfc Auto Saved)
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Microsoft & Indian Express Group Security Strategist Award 2008
World Trade Center Award of honour
For outstanding contribution to international trade
services.
Business Today One of India's "Most Innovative Companies"
Financial Express-Ernst & Young Award Best Bank Award in the Private Sector category
Global HR Excellence Awards - Asia Pacific
HRM
'Employer Brand of the Year 2007 -2008' Award -
First Runner up, & many more
BUSINESS TODAY 'BEST BANK' AWARD
EUROMONEY AWARDS 2009 'BEST BANK IN INDIA'
Economic Times Brand Equity & Nielsen
Research annual survey 2009Most Trusted Brand - Runner Up
Asia Money 2009 Awards 'Best Domestic Bank in India'
IBA Banking Technology Awards 2009 'Best IT Governance Award - Runner up'
Global Finance Award 'Best Trade Finance Bank in India for 2009
IDRBT Banking Technology Excellence Award
2008'Best IT Governance and Value Delivery'
Asian Banker Excellence in Retail Financial
Services
'Asian Banker Best Retail Bank in India Award
2009 '
Award for effective technology implementationHDFC Bank bags 2011 Celent Model Bank
Best Bank in the Private Sector category NDTV Business Leadership Awards 2010
http://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htmhttp://www.hdfcbank.com/aboutus/awards/default.htm8/2/2019 Final Projectr Eport Hdfc Auto Saved)
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MCKENCYS 7 S MODEL
SHARED VALUES
Our business philosophy is based on four core values - Customer Focus, Operational
Excellence, Product Leadership and People. We believe that the ultimate identity and
success of our bank will reside in the exceptional quality of our people and their
extraordinary efforts. For this reason, we are committed to hiring, developing, motivating and
retaining the best people in the industry.
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STRUCTURE
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STRATEGY
Our business strategy emphasizes the following :
Increase our market share in Indias expanding banking and financial services industryby following a disciplined growth strategy focusing on quality and not on quantity and
delivering high quality customer service.
Leverage our technology platform and open scaleable systems to deliver moreproducts to more customers and to control operating costs.
Maintain our current high standards for asset quality through disciplined credit riskmanagement.
Develop innovative products and services that attract our targeted customers andaddress inefficiencies in the Indian financial sector.
Continue to develop products and services that reduce our cost of funds.
SYSTEM
System in the 7-s frame work refers to the rules, regulations & procedures both formal
& informal. It includes planning & control system, capital budgeting system, recruitment
training & development system & performance evolution system.
Planning & control system:
This is very important function in HDFC bank, which is done by the top mgt. it
prepares plan every year by considering the potentiality, infrastructure facility & past
performance.
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STAFF
Staffing is the process of acquiring human resources for the organization and
assuring that they have potential to contribute to the achievement of the organization goals. In
the McKinsey 7-s frame work the term staff has a specific connotation. According to
waterman and his colleagues the term staff refers to the way of organization introduce
young recruits in to the mainstream of their activities and the manner in which they manage
their careers as the new entrants develop into the future manager.
Career Development Program in HDFC Bank:
Successful candidates placed on the jobs need training to perform their duties
effectively, training and development constitutes an outgoing process in any organization.
The various executive developments and training programs undergone by the
middle level management and work level management.
1. Training program on financing self-help group.
2. Training program on internal audit of branches and concurrent audit for inspection
officers and internal auditor of HCFC Bank.
3. Workshop on self help group development program for field supervisor to
improves the skill and efficiency.
4. Training program on development action plan for chief executive officers of
HDFC bank.
SKILL
In the Mc Kinsey 7-s framework, watermen consider skill as one of the most crucial
attribute or capabilities of an organization. The term skill includes those characteristics,
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which most people use to describe a company. In other words skill refers to dominant skills
or distinctive competence of an organization.
Dominate skills or Distinctive are having competence of HDFC Bank:
1. people of district are having good faith towards HDFC Bank
2. Hard working and efficient staff.
3. Autonomy in Decision making
4. Providing agriculture loan at low rate of interest.
5. Leadership Infrastructures.
6. Working with own funds.
Style:
Style is one of the 7 levels which can use to bring about organizational different
frames each other in their style of working. SCDCC branch mangers are the most basic
ingredients for the success of the organization. The manager plays a crucial role in making
continuous planning and organizational both internally and internally and externally in order
to meet changing customer tastes.
The special characteristics that are found in the manager are
1. influencing behavior2. common goals3. Reciprocal relationship & work cultures.
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SWOT Analysis is a powerful technique for understanding your Strengths and Weaknesses,
and for looking at the Opportunities and Threats you face. Used in a business context, it helps
you carve a sustainable niche in your market. Used in apersonal context, it helps you develop
your career in a way that takes best advantage of your talents, abilities and opportunities.
SWOT ANALAYSIS OF HDFC BANK
STRENGTH
Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image Products have required accreditations. High degree of customer satisfaction.
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Good place to work Lower response time with efficient and effective service. Dedicated workforce aiming at making a long-term career in the field.
WEAKNESSES
Some gaps in range for certain sectors. Customer service staff needs training. Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for
staff
OPPORTUNITIES
Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industry-wide basis. An applied research centre to create opportunities for developing techniques to
provide added-value services.
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THREATS
Legislation could impact. Great risk involved Very high competition prevailing in the industry. Vulnerable to reactive attack by major competitors Lack of infrastructure in rural areas could constrain investment. High volume/low cost market is intensely competitive.
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ANALYSIS OF FINANCIAL STATEMENT (HDFC BANK)
Mar '11 Rs
.Cr
Mar '10Rs,
Cr.
Mar '09 Rs
Cr.
Mar '08 Rs
Cr,Mar '07 Rs Cr.
Capital and Liabilities:
Total Share Capital 465.23 457.74 425.38 354.43 319.39
Equity Share Capital 465.23 457.74 425.38 354.43 319.39
Share Application Money 0 0 400.92 0 0
Preference Share Capital 0 0 0 0 0
Init. Contribution Settler 0 0 0 0 0
Preference Share Application
Money0 0 0 0 0
Employee Stock Opiton 0 2.91 5.49 0 0
Reserves 25,120.83 21,158.15 14,262.74 11,180.72 6,150.98
Revaluation Reserves 0 0 0 0 0
Net Worth 25,586.06 21,615.89 15,089.04 11,535.15 6,470.37
Deposits 208,287.21 167,297.78 142,644.80 100,631.38 68,264.27
Borrowings 14,650.44 13,171.80 2,775.84 4,478.86 2,815.39
Total Debt 222,937.65 180,469.58 145,420.64 105,110.24 71,079.66
Minority Interest 121.66 75.89 43.35 36.92 28.61
Policy Holders Funds 0 0 0 0 0
Group Share in Joint Venture 0 0 0 0 0
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Other Liabilities & Provisions 29,317.57 20,783.21 22,844.24 16,510.76 13,729.61
Total Liabilities 277,841.28 222,868.68 183,353.92 133,156.15 91,279.64
Mar '11 Rs
.Cr
Mar '10Rs,
Cr.
Mar '09 Rs
Cr.
Mar '08 Rs
Cr,Mar '07 Rs Cr.
Assets
Cash & Balances with RBI 25,100.89 15,483.31 13,527.22 12,553.18 5,075.25
Balance with Banks, Money at
Call4,737.39 14,594.88 4,009.94 2,274.80 3,998.18
Advances 160,831.42 126,162.73 99,027.37 63,426.90 46,944.78
Investments 70,276.67 58,508.28 58,715.15 49,288.01 30,567.04
Gross Block 5,328.86 4,777.65 4,019.68 2,437.58 1,959.68
Accumulated Depreciation 3,127.91 2,628.59 2,287.40 1,241.29 972.15
Net Block 2,200.95 2,149.06 1,732.28 1,196.29 987.53
Capital Work In Progress 0 0 0 0 0
Other Assets 13,626.33 5,205.07 5,528.89 4,453.89 3,735.47
Minority Interest 0 0 0 0 0
Group Share in Joint Venture 0 0 0 0 0
Total Assets 276,773.65 222,103.33 182,540.85 133,193.07 91,308.25
Contingent Liabilities 559,718.86 466,309.73 396,639.98 208,498.36 131,854.35
Bills for collection 28,869.10 20,940.13 17,939.62 17,092.85 7,211.88
Book Value (Rs) 549.97 472.23 345.29 325.45 202.59
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LEARNING EXPERIENCE
The final project of the vtu curriculum gave me a good opportunity to learn many things. The
project which was concentrated in finding the stability and performance of HDFC funds.
The organization study helps me in understanding how organization operates its day to day
operations. The co-operation between the employees, which reflected the shared value of the
company which one of the s in the McKenseys 7s. The business strategy of the company
which one should need to enhance the existing business and start operation in new markets.
The organization structure of the company premises and gave me opportunities for the market
exposure also. The staffs of the company have co-operative nature and help each others in the
work.
The administration style of the company is autocratic which follows the mangers rules all the
time. Manger takes the most of the business which are executed by the staff.the company has
many schemes to train the employees. The employees are been trained time to time in order
to meet the changing market conditions. Over all the experience gained in the organizational
study helped me to understand the corporate knowledge.
The project has concerned with the return stability in the banking securities. The possible loss
for the investors in trading was found by finding the comparing with benchmark return. So
the experience gained at the HDFC BANK is remarkable.
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GENERAL INTRODUCTION
HDFC (Housing Development Finance Corporation Limited) is one of the dominant players
in the Indian mutual fund space. HDFC was incorporated in 1977 as the first specialized
mortgage company in India. HDFC Mutual Funds are handled by HDFC Asset Management
Company Limited. HDFC Asset Management Company was incorporated under the
Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset
Management Company for the Mutual Fund by SEBI on July 3, 2000. The company also
provides portfolio management / advisory services HDFC Asset Management Company Ltd
(AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was
approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide
its letter dated July 3, 2000. The registered office of the AMC is situated at Ramon House,
3rd Floor, H.T. Parekh Marg, 169, Back bay Reclamation, Church gate, Mumbai - 400 020.
In terms of the Investment Management Agreement, the Trustee has appointed the HDFC
Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the
AMC is Rs. 25.161 crore. Zurich Insurance Company (ZIC), the Sponsor of Zurich India
Mutual Fund, following a review of its overall strategy, had decided to divest its Asset
Management business in India. The AMC had entered into an agreement with ZIC to acquire
the said business, subject to necessary regulatory approvals.
On obtaining the regulatory approvals, the following Schemes of Zurich India Mutual Fund
have migrated to HDFC Mutual Fund on June 19, 2003.The AMC is managing 28 open-
ended schemes of the Mutual Fund .
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The AMC is also managing 7 closed ended Schemes of the Mutual Fund. The AMC is also
providing portfolio management / advisory services and such activities are not in conflict
with the activities of the Mutual Fund. The AMC has renewed its registration from SEBI vide
Registration No. - PM / INP000000506 dated December 21, 2009 to act as a Portfolio
Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of
Registration is valid from January 1,2010 to December 31,2012.
Performance Measures of Mutual Funds
Mutual Fund industry today, with about 34 players and more than five hundred schemes, is
one of the most preferred investment avenues in India. However, with a plethora of schemes
to choose from, the retail investor faces problems in selecting funds. Factors such as
investment strategy and management style are qualitative, but the funds record is an
important indicator too.
Though past performance alone cannot be indicative of future
performance, it is, frankly, the only quantitative way to judge how good a fund is at present.
Therefore, there is a need to correctly assess the past performance of different mutual funds.
Worldwide, good mutual fund companies over are known by their AMCs and this fame is
directly linked to their superior stock selection skills. For mutual funds to grow, AMCs must
be held accountable for their selection of stocks.
In other words, there must be some performance indicator that will
reveal the quality of stock selection of various AMCs. Return alone should not be considered
as the basis of measurement of the performance of a mutual fund scheme, it should also
include the risk taken by the fund manager because different funds will have different levels
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of risk attached to them. Risk associated with a fund, in a general, can be defined as
variability or fluctuations in the returns generated by it. The higher the fluctuations in the
returns of a fund during a given period, higher will be the risk associated with it. These
fluctuations in the returns generated by a fund are resultant of two guiding forces.
First, general market fluctuations, which affect all the securities
present in the market, called market risk or systematic risk and second, fluctuations due to
specific securities present in the portfolio of the fund, called unsystematic risk. The Total
Risk of a given fund is sum of these two and is measured in terms of standard deviation of
returns of the fund. Systematic risk, on the other hand, is measu red in terms of Beta, which
represents fluctuations in the NAV of the fund vis--vis market. The more responsive the NAV of
a[20]mutual fund is to the changes in the market; higher will be its beta. Beta is calculated byrelating
the returns on a mutual fund with the returns in the market. While unsystematic riskcan be diversified
through investments in a number of instruments, systematic risk cannot. By using the risk return
relationship, we try to assess the competitive strength of the mutual funds vis--vis one another
in a better way.
In order to determine the risk-adjusted returns of investment portfolios, several
eminent authors have worked since 1960s to develop composite performance indices to
evaluate a portfolio by comparing alternative portfolios within a particular risk class.
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STATEMENT OF PROBLEM
The investors always like to purchase a combination of funds that provides the highest return
and lowest risk. The investor wishes to maintain a satisfactory reward to risk ratio
.Traditionally more attention are paid to the return aspect of the funds but now a days risk
has received increased attention.
OBJECTIVES OF STUDY
To study the nature of portfolio management in HDFC Bank To study the performance of mutual funds in hdfc bank To study of various mutual funds plans to their investors To analyze NAV and market associated with various funds in HDFC
SCOPE OF THE STUDY
The mutual funds plan in HDFC Bank offers unique option of combining the guaranteed
return to the investors, with the attractive prospects of investing in funds. As per this fund
plan the investors can choose among the different investment funds to invest their money,
giving the opportunity have direct stake in the performance of the financial market. Thus
HDFC mutual fund plans are of prime importance and there for its necessary to analyze the
risk and return also associated with the plan to have a better investment.
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METHODOLOGY
The study involves collection of data through direct interaction with professionals
academicians and other officials.
LIMITATIONS OF THE STUDY
The study is confines to mutual funds in HDFC bank ltd ,namely
HDFC GROWTH FUND
HDFC EQUITY FUND
HDFC CAPITAL BUILDER
HDFC CORE & SATELITE FUND
HDFC PREMIER MULTI-CAP FUND
HDFC MID-CAP OPPURTUNITIES FUND
HDFC LONG TERM EQUITY FUND
HDFC INFRASTRUCTURE FUND
HDFC ABITRGE FUND
HDFC BALANCED FUND
HDFC PRUDENCE FUND
HDFC LONG TERM ADVANTAGE FUND
HDFC TAXSAVER
HDFC INDEX FUND
HDFC MF MONTHLY INCOME PLAN
The performance of December 2011,January and February 2012 have been analyzed for
interpreting of various funds, due to time constraint the above three months data have been
taken for analyze and hence the result cannot be generalize
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DATA ANALYSIS AND INTERPRETATION
Schemes Available To Perform Funds
All the funds are peforming well and good, with the inbuild of supportive schemes are
available in all the funds like:
debt/ income fund ,income fund, liquid funds, exchange traded funds, quarterly interval fund,
childrens gift fund, fund of fund scheme
All the hdfc mutual funds are shows performance based on supprtive schems
only.all the funds are related to maximum level of NAV and the risk level come less because
the supportive schemes are secure and retuns also is high and these funds are very atrractive
to the investors . . HDFC Bank is providing value for money products and good safe returns
on customer investments that has created a strong relation with the investors
HDFC GROWTH FUND
To generate long term capital appreciation from a portfolio that is invested predominantly in
equity and equity related instruments.
The scheme is an open ended equity scheme that invests predominantly in equity and equity
related instruments the folowing are the five basic principles that serve as the fondation for
this investement approach :
1) Focus on the long term2) Investements confer propotionate ownership3) Maitain a margin of safety4) Maitain a balanced outook on the market5) Disciplin approach to selling
http://www.hdfcfund.com/Products/SchemeList.aspx?FundID=b8b13ca0-60e9-4aaf-ae60-284cac9d9dd8http://www.hdfcfund.com/Products/SchemeList.aspx?FundID=e11cbbf0-8a15-4104-871d-835014344bf9http://www.hdfcfund.com/Products/SchemeList.aspx?FundID=f6b4d7de-50ab-4216-939f-59b9054f1f81http://www.hdfcfund.com/Products/SchemeList.aspx?FundID=f6b4d7de-50ab-4216-939f-59b9054f1f81http://www.hdfcfund.com/Products/SchemeList.aspx?FundID=e11cbbf0-8a15-4104-871d-835014344bf9http://www.hdfcfund.com/Products/SchemeList.aspx?FundID=b8b13ca0-60e9-4aaf-ae60-284cac9d9dd88/2/2019 Final Projectr Eport Hdfc Auto Saved)
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 37
PERFOMANCE LEVEL IN YEAR WICE
PERIOD
RETURNS
%^
BENCHMARK
RETURNS%#LAST ONE YEAR(365 DAYS) 18.04 10.94
LAST THREE YEAR(1095
DAYS) 12.27 7.52
LAST FIVE YEARS(1826
DAYS) 16.35 11.5
LAST TEN YEAR(3653 DAYS) 27.95 18.34
SINCE INSPECTION(3853
DAYS) 22.87 14.41
ANALYSIS:
From the above table it can be analiyzed that the performance of during last ten years
showing that actual return is higher than benchmark return. After that there was a big decrese
In return . Last one year depicts that the actual return is double than the benchmark return.
INTERPRETATION:
During the period of ten year the investaers earned the maximum return and this fund will be
the good growin fund in the market.
0
5
10
15
20
25
30
yearly perfomance of fund
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 38
HDFC EQUITY FUND
To achieve capital appreciation, The scheme is an open ended equity scheme that invests
predominantly in equity and equity related instruments.the scheme may seek invest
oppurtunity in growth companies selected under this portfolio would as far as practicable
consist of medium to large sized companies which :
a) Are likely to achive above average growth than the industry
b) Enjoy distinct competitve adventages
c) Have superior financial strengths.
PERIOD RETURNS %^
BENCHMARK
RETURNS%#LAST ONE YEAR(365 DAYS) 19.89 7.26
LAST THREE YEAR(1095 DAYS) 19.55 6.54
LAST FIVE YEARS(1826 DAYS) 17.37 9.71
LAST TEN YEAR(3653 DAYS) 32.90 19.87
LAST 15 YEAR (5480 DAYS) 27.88 13.4
SINCE INCEPCTION(5933 DAYS) 22.84 10.06
ANALYSIS:
From the above figure it can be analiyzed that the performance of during last fifteen years
showing that actual return is higher than benchmark return.The figure showing last five year
is on an increasing trend.
INTERPRETATION:
During the period of ten year the investers earned the maximum return and this fund will be
the good growin fund in the market.
0
5
10
15
20
2530
35
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 39
HDFC TOP 200 FUND
To generate long term capital appreciation from a portfolioof equity and equty linked
instruments primarily drawn from the companies in BSE 200 index. The scheme is an open
ended equity scheme that invests predominantly in equity and equity related instruments.the
net assets of the schemessportfolio consist f equity and equity-linked instruments primily
drawn from the companies in BSE 200 index .A part of assets of the Scheme may be
invested in debt securities and money market instruments.
PERIOD RETURNS %$$^ BENCHMARK RETURNS%#
LAST ONE YEAR(365 DAYS) 17.14 8.15LAST THREE YEAR(1095 DAYS) 1784 7.17
LAST FIVE YEARS(1826 DAYS) 17.45 10.98
LAST TEN YEAR(3653 DAYS) 31.63 20.54
SINCE INCEPTION(5284 DAYS) 25.32 15.02
ANALYSIS:
From the above figure shows that the performance of during last ten years shows varriation
from year to year.The fluctuations are having very high differences from prevoius.
INTERPRETATION:
During the period of ten year the investers earned the constant return and but this fund not
safe to invest because it would not give expected return .
0
5
10
1520
25
30
RETURNS
BENCHMARK RETURNS
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 40
HDFC CAPITAL BUILDER
To achieve capital apreciation in the long term, . The scheme is an open ended equity scheme
that invests predominantly in equity and equity related instruments.the net assets of the
schems portfolio consists of strong compamys at prices which are quoting below fair value,
in the oppenion of the fund maneger. A part of the net assets of thr Schemes may be invested
in debt securities and money market instruments.
PERIOD RETURNS %^ BENCHMARK RETURNS%#
LAST ONE YEAR(365 DAYS) 14.94 7.2
LAST THREE YEAR(1095 DAYS) 13.73 6.54
LAST FIVE YEARS(1826 DAYS) 13.17 9.71
LAST TEN YEAR(3653 DAYS) 27.01 19.87
LAST FIFTIEN YEARS(5480 DAYS) 19.54 13.4
SINCE INCEPCTION(6267 DAYS) 15.09 8.94
ANALYSIS:
From the above figure it can be analiyzed that starting to last ten it gave a increasing trend in
return then reaching to last five year the return is halfof the previous.then after that again
shows an increasing trend.
INTERPRETATION:
The having a cyclical nature that depicts in the figure.so the investor should understand the
previous years return.
0
5
10
15
20
25
30
RETURNS %$$^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 41
HDFC CORE & SATELITE FUND
To generate capital appreciation through equity invest in companies whose shares are quoting
at prices below their true value. The scheme is an open ended equity scheme that invests
predominantly in equity and equity related instruments,Comprising of core group of
companyes and satlite group of companys. Core group will comparice of well established and
predominantly large capital companyes. The satlite will comparice of predominantly small-
mid capital companies that offer higher potential riterns with higher risk. A part of net assets
of thr scheme may be invest debt securities and money market instruments.
PERIOD RETURNS %^ BENCHMARK RETURNS%#
LAST ONE YEAR(365 DAYS) 13.53 8.15
LAST THREE YEAR(1095 DAYS) 14.08 7.17
LAST FIVE YEARS(1826 DAYS) 11.27 10.98
SINCE INCEPCTION(2386 DAYS) 23.92 19.94
ANALYSIS:
The above figure indicating that the starting return paed to the investors was very high then
next five year saw a decrease in return after that ther was a slight increase again next year
slight decreasing in return.
INTERPRETATION:
During the last five years results says that the return was lower than beginning so the fund
were not as good as expected.
0
5
10
15
20
25
30
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 42
HDFC PREMIER MULTI-CAP FUND
The genaratecapital appreciation in the long term through equity investment by investing in
divercified portfolio of mid-cap or large cap bluechip companys, the scheme will invest
predominantly in preemior or bluechip company, the scheme will use the minimum of thr
thirty five % of the portfolio each in large-caps and mid-caps, the balance will be SWING
portfolio that can invest in either mid or large capital companyes based on their relative
valuation,
PERIOD
RETURNS
%^
BENCHMARK
RETURNS%#
LAST ONE YEAR(365 DAYS) 12.26 7.26
LAST THREE YEAR(1095 DAYS) 13.52 6.54
LAST FIVE YEARS(1826 DAYS) 11.59 9.71
SINCE INCEPCTION(2185 DAYS) 19.46 17
ANALYSIS:
The above figure indicats that the starting return paid to the investors was very high which
was reduced.The next five year saw a big decrease in return after that there was a slight
increase again next year slight decreasing in return.
INTERPRETATION:
During the last five years results says that the return was lower than beginning so the fund
were not as good as expected.
0
5
10
15
20
25
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 43
HDFC MID-CAP OPPURTUNITIES FUND
The objective of the scheme is to generate long term capital appreciation portfolio that is
substantianlly consulted of equty and equety relative securities of small and mid cap
comapnys, the scheme shall be mainly invested in combined portfolio of equity and equity
related securities of small and mid cap companyes, the fund maneger shall also invested in
equty and equty related securities to achive optimal protfolio construction,
PERIOD RETURNS %^ BENCHMARK RETURNS%#
LAST ONE YEAR(365 DAYS) 15.33 4.35LAST THREE YEAR(1095 DAYS) 16.74 8.81
SINCE INCPECTION(1375 DAYS) 11.55 8.92
ANALYSIS:
From the above depicting that the fund have given very increasing trend return from
beginning result.last one year return having slite dicreasing then also it shows a possitive
nature.
INTERPRETATION:
During the period of ten year the investers earned the maximum return and this fund will be
the good growin fund in the market.
0
2
4
68
10
12
14
16
18
LAST ONE YEAR(365
DAYS)
LAST THREE YEAR(1095
DAYS)
SINCE INCEPCTION(1375
DAYS)
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 44
HDFC LONG TERM EQUITY FUND
To acheive long capital appreciation, The scheme is an open ended equity scheme that invests
predominantly in equity and equity related instruments,the scheme shall also invest a small
prtion of net assets in fixed income securities and money market instruments.
The aim wil be to build a portfolio that adequately reflects a cross section of the growth
areas of the economy from time to time .while the portfolio focuses primerily on a buy and
hold strategy at most times ,it will balance the same with a rational approach to selling when
the valuation become too demanding even in the face of reasonable growth prospectus in the
long run.
PERIOD RETURNS %^BENCHMARKRETURNS%#
LAST ONE YEAR(365 DAYS) 18.48 11.14
LAST THREE YEAR(1095 DAYS) 11.89 7.21
LAST FIVE YEARS(1826 DAYS) 9.62 11.38
SINCE INCEPCTION(1875 DAYS) 10.53 13.62
ANALYSIS:
From the above table it can be analiyzed that the performance of during last fifteen years
showing that actual return is higher than benchmark return.The figure showing last five year
increasing trend.
INTERPRETATION:
During the period of ten year the investers earned the maximum return and this fund will be
the good growin fund in the market.
0
5
10
15
20
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 45
HDFC INFRASTRUCTURE FUND
To seek longterm capital appreceation by inveting predominantly in equity related securities
of companies engaged in or expected to benefit from growth and development of
infrastructure. The scheme shall invest in the indicative list of sectors/industries. The scheme
shall invest across the above mentioned sectors or other areas of infrastructure as idenified by
the fund manager. The fund manager may add such other sector/group of industries, which
broadly satisfy the category of services, and infrastructure industries
ANALYSIS:
From the above table it can be analiyzed that the performance of during last three years
showing that actual return is higher than benchmark return.
INTERPRETATION:
The increasing trend in the investement in equity capital and infra strucuture is because of the
rapid growth of thesee two sectors in Indian economy .
012345678
9
LAST ONE YEAR(365
DAYS)
LAST THREE
YEAR(1095 DAYS)
SINCE
INCEPCTION(1116
DAYS)
RETURNS %^
BENCHMARK RETURNS%#
PERIOD
RETURNS
%^ BENCHMARK RETURNS%#
LAST ONE YEAR(365 DAYS) 6.31 7.26
LAST THREE YEAR(1095
DAYS) 8.35 6.54
SINCE INCEPCTION (1116
DAYS) 5.85 5.5
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 46
HDFC ARBITRGE FUND
To generate income through arbitrage opportunities between cash and derivative market and
arbitrage opportunities with in the derivative segment and by development of surplus cash in
dept securities and money market instruments. The scheme may adopt simple derivative
strategies, which would be to take offsetting positions on various markets simultaneously. In
the absence of adiquate arbitrage opportunities, the scheme may invest in short term dept
securiities or money market securities or money market instruments.
PERIOD RETURNS %^
BENCHMARK
RETURNS%#
LAST ONE YEAR(365 DAYS) 7.8 6.22
LAST THREE YEAR(1095DAYS) 6.48 6.23
SINCE INCEP: (1255DAYS) 6.89 6.28
ANALYSIS:
From the above table it can be analiyzed that the performance of during last three years
showing that actual return is higher than benchmark return.
INTERPRETATION:
The arbitrage fund is inveting in short term dept securiities or money market securities or
money market instruments.so it having a high rate of return.
0
1
2
3
4
5
6
7
8
9
LAST ONE YEAR(365
DAYS)
LAST THREE YEAR(1095
DAYS)
SINCE
INCEPCTION(1255
DAYS)
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 47
HDFC BALANCED FUND
To generate capital appreciation along with current income from a combined portfolio of
equity and equity related and debt and money market instruments.
The scheme is an open ended balanced scheme. The net assets of the scheme shall be
invested in a combined portfolio of equity and equity related instruments: debt securities and
money instruments in the range of 60:40 respectively. The exact portfolio mix will be a
function of interest rates, equity valuations, reserves position, and risk taking capacity of the
portfolio.
PERIOD RETURNS %^ BENCHMARK RETURNS%#
LAST ONE YEAR(365 DAYS) 16.17 9.37
LAST THREE YEAR(1095 DAYS) 16.87 8.13
LAST FIVE YEAR (1826 DAYS) 13.68 10.59
LAST TEN YEAR (3653 DAYS) 19.47 NA
SINCE INCEPTION (3853 DAYS ) 17.49 NA
ANALYSIS:
From the above table it can be analiyzed that the performance of during last ten years
showing that fund has given high rate of return.
INTERPRETATION:
During the period of ten year the investors earned the maximum return and this fund will be
the good growin fund in the market.
0
5
10
15
20
25
LAST ONE
YEAR(365
DAYS)
LAST THREE
YEAR(1095
DAYS)
LAST FIVE
YEAR (1826
DAYS)
LAST TEN
YEAR (3653
DAYS)
SINCE
INCEPTION
(3853 DAYS )
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 48
HDFC PRUDENCE FUND
To provide periodic returns and capital appreciation over a long period of time from a
judicious mix of equity and debt investments with an aim to prevent / minimize any capitalerosion.
The Scheme is an open ended balanced scheme. This Scheme provides a judicious mix of
equity and debt investments. The net assets of the Scheme shall be invested in equity and
equity related instruments between the range of 40 -75% and in debt securities and money
market instruments between the range of 25- 60%.
PERIOD RETURNS %^ BENCHMARK RETURNS%#
LAST ONE YEAR(365 DAYS) 17.49 9.37
LAST 3 YEAR(1095 DAYS) 18.75 8.13
LAST FIVE YEAR (1826 DAYS) 17.53 10.59
LAST TEN YEAR (3653 DAYS) 28.48 NA
LAST 15 YEAR(5480 DAYS) 24.75 NA
SINCE INCEP: (6267 DAYS) 21.33 NA
ANALYSIS
From the above table it can be analiyzed that the performance of last fifteen year was high
and when we started benchmarking,the acual was more than the benchmarking.
INTERPRETATION:
The fund was firstly intodused by HDFC and it was doing well in the market .when the
compititors entered in provide this fund we started putting bench mark then also we got
possitive results.
05
1015202530
LAST ONE
YEAR(365
DAYS)
LAST
THREE
YEAR(1095
DAYS)
LAST FIVE
YEAR (1826
DAYS)
LAST TEN
YEAR (3653
DAYS)
LAST
FIFTEEN
YEAR(5480
DAYS)
SINCE
INCEPTION
(6267 DAYS
)
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 49
HDFC LONG TERM ADVANTAGE FUND
To generate long term capital appreciation from a portfolio that is invested predominantly in
equity and equityrelated instruments.This Scheme is launched as an openended Equity Linked Saving Schemes having a lock
in period of 3 years in accordance with the Equity Linked Saving Scheme, 1992 as amended
in 1998. The net assets of the scheme will be invested predom inantly in equity and equity
related instruments. A part of the net assets of the Scheme may be invested in debt securities
and money market instruments. Investment made in this Scheme is eligible for tax benefit
under section 80 C of the Income Tax Act, 1961.
PERIOD RETURNS %^BENCHMARKRETURNS%#
LAST ONE YEAR(365 DAYS) 16.76 10.94
LAST THREE YEAR(1095 DAYS) 13.09 7.52
LAST FIVE YEAR (1826 DAYS) 10.07 11.50
LAST TEN YEAR (3653 DAYS) 31.06 18.34
SINCE INCEPTION (3740 DAYS) 29.29 16.63
ANALYSIS:
From the above figure shows actual return is more than the benchmark return except for the
last five year.
INTERPRETATION:
During the period of ten year the investers earned the maximum return and this fund will be
the good growin fund in the market.
0
10
20
30
40
LAST ONE
YEAR(365
DAYS)
LAST THREE
YEAR(1095
DAYS)
LAST FIVE
YEAR (1826
DAYS)
LAST TEN
YEAR (3653
DAYS)
SINCE
INCEPTION
(3740 DAYS )
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 50
HDFC TAX SAVER
The Scheme is launched as an openended Equity Linked Schemes having a lock in period
of 3 years in accordance with the Equity Linked Savings Scheme ,1992 as amended in 1998.The net assets of the Scheme will be invested predom inantly in equity and equity related
instruments. A part of the Scheme may be invested in debt securities and money market
instruments. Investment made in the Scheme is eligible for tax benefit under section 80 C of
the Income Tax Act, 1961.
PERIOD RETURNS %^
BENCHMARK
RETURNS%#
LAST ONE YEAR(365 DAYS) 13.24 7.26
LAST THREE YEAR(1095
DAYS) 15.28 6.54
LAST FIVE YEAR (1826 DAYS) 12.15 9.71
LAST TEN YEAR (3653 DAYS) 30.91 19.87
SINCE INCEPTION (5478 DAYS) 31.18 13.41
ANALYSIS:
From the above table it can be analiyzed that the performance of during last fifteen years
showing that actual return is higher than benchmark return.The figure showing last five year
increasing trend.
INTERPRETATION:
During the period of ten year the investors earned the maximum return and this fund will be
the good growin fund in the market.
0
5
10
15
20
25
30
35
LAST ONE
YEAR(365
DAYS)
LAST THREE
YEAR(1095
DAYS)
LAST FIVE
YEAR (1826
DAYS)
LAST TEN
YEAR (3653
DAYS)
SINCE
INCEPTION
(5478 DAYS )
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 51
HDFC INDEX FUND
To generate returns that are commensurate with the performance of the SENSEX , subject to
tracking errors.
PERIOD RETURNS %^
BENCHMARK
RETURNS%#
LAST ONE YEAR(365 DAYS) 10.46 12.14
LAST THREE YEAR(1095DAYS) 5.68 8.78
LAST FIVE YEAR (1826 DAYS) 8.95 13.29
SINCE INCEPTION (3179 DAYS) 20.30 25.52
ANALYSIS:
From the above figure depicts that the actual return is always less than benchmarke return.but
always maintaning a ratio with bench mark return.
INTERPRETATION:
During the period of five the fund has performed lower than benchmark then it mainataining
consistancy in return,
0
5
10
15
20
25
30
LAST ONE
YEAR(365
DAYS)
LAST THREE
YEAR(1095
DAYS)
LAST FIVE
YEAR (1826
DAYS)
SINCE
INCEPTION
(3179
DAYS)
RETURNS %^
BENCHMARK RETURNS%#
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 52
HDFC MF MONTHLY INCOME PLAN
The primary objective of Scheme is to generate regular returns through investment primarily
in Debt and Money Market Instruments. The secondary objective of the Scheme is to
generate long term capital appreciation by investing a portion of the Schemes assets in
equity and equity related instruments.
ANALYSIS:
From the above graph it show a fluctatng trend in the actual and bench mark .
INTERPRETATION:
This fund is not giving a regular expected return , it shows fluctating trend in actual and
bench mark.
012345678
9
LAST ONE
YEAR(365 DAYS)
LAST THREE
YEAR(1095
DAYS)
LAST FIVE YEAR
(1826 DAYS)
SINCE
INCEPTION
(2652 DAYS)
RETURNS %^
BENCHMARK RETURNS%#
PERIOD RETURNS %^
BENCHMARK
RETURNS%#
LAST ONE YEAR(365 DAYS) 4.84 6.17
LAST THREE YEAR(1095DAYS) 8.05 6.82
LAST FIVE YEAR (1826 DAYS) 6.54 7.41
SINCE INCEPTION (2652 DAYS) 7.63 7.09
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 53
ANALYSE OF SCHEMES PERFORM IN FUNDS
SCHEMES AVAILABLE TO PERFORM
FUNDS
LAST FIVE YEARS
RETURNS%#
LAST FIVE YEARS(1826
DAYS) BENCH MARK
RETURN
HDFC GROWTH FUND 16.35 11.5
HDFC EQUITY FUND 17.37 9.71
HDFC CAPITAL BUILDER 17.45 10.98
HDFC CORE & SATELITE FUND 13.17 9.71
HDFC PREMIER MULTI-CAP FUND 11.27 10.98
HDFC MID-CAP OPPURTUNITIES FUND 11.59 9.71
HDFC LONG TERM EQUITY FUND 9.62 11.38
HDFC INFRASTRUCTURE FUND 5.85 5.5
HDFC ABITRGE FUND 6.89 6.28
HDFC BALANCED FUND 13.68 10.59
HDFC PRUDENCE FUND17.53 10.59
HDFC LONG TERM ADVANTAGE FUND 10.07 11.5
HDFC TAXSAVER 12.15 9.71
HDFC INDEX FUND 8.95 13.29
HDFC MF MONTHLY INCOME PLAN 6.54 7.41
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 54
0
2
4
6
8
10
12
14
16
18
20
LAST FIVE YEARS RETURNS%#
LAST FIVE YEARS(1826 DAYS) BENCH
MARK RETURN
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 55
ANALYSE OF SCHEMES PERFORM IN FUNDS
9 funds have beginning low return compared with market return from the past 5 year ,which
shows that investor who have invested in these funds have always behave the positive side
getting good return.
On the other hand, 6 fund have been giving either lesser or almost the same return to the
market. So the investors have not been in very positive parties, they could have earned better
if they invested in other funds.
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 56
FINDINGS AND SUGGESTION
1. Company provides the customers with fourteen different types of funds.2. The company gives most preference to the HDFC Monthly income plan because all
customers can afford these funds.
3. HDFC arbitrage fund gives only quarterly options plan.4.
HDFC index fund is offers plans like SENSEX, SENSEX PLUS PLAN ,NIFTY
PLAN.
5. In the HDFC index fund they do not offer any payout option.6. The HDFC MF Monthly Income plan offers the best fund to customers i.e. short term
and long term.
The world of investments too has several ground rules meant for investors who are novices
in their own right and wish to enter the myriad world of investments. These come in handy
for there is every possibility of losing what one has if due care is not taken.
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PG DEPARTMENT OF BUSINESS ADMINISTRATION, PACE, MANGALORE Page 57
SUGGESTIONS
1. One should identify the degree of risk bearing capacity one has and also clearly state the
expectations from the investments. Irrational expectations will only bring pain.
2. In order to avoid any confusion it is better to go through the literature such as offer
document and fact sheets that mutual fund companies provide on their funds.
3. Don't rush in picking funds, think first: one first has to decide what he wants the money for
and it is this investment goal that should be the guiding light for all investments done. It is
thus important to know the risks associated with the fund and align it with the quantum of
risk one is willing to take.
4.One should take a look at the portfolio of the funds for the purpose. Excessive exposure to
any specific sector should be avoided, as it will only add to the risk of the entire portfolio.
Mutual funds invest with a certain ideology such as the "Value Principle" or "Growth
Philosophy. Both have their share of critics but both philosophies work for investors of
different kinds.
5. Invest. Don t speculate: A common investor is limited in the degree of risk that he is
willing to take. It is thus of key importance that there is thought given to the process of
investment and to the time horizon of the intended investment. One should abstain from
speculating which in other words would mean getting out of one fund and investing in
another with the intention of making quick money. One would do well to remember that
nobody can perfectly time the market so staying invested is the best option unless there are
compelling reasons to exit.
5. Don t put all the eggs in one basket: This old age adage is of utmost importance. No matter
what the risk profile of a person is, it is always advisable to diversify the risks associated. So
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putting one s money in different asset classes is generally the best option as it averages the
risks in each category. Thus, even investors of equity should be judicious and invest some
portion of the investment in debt. Diversification even in any particular asset class (such as
equity, debt) is good. Not all fund managers have the same acumen of fund management and
with identification of the best man being a tough task, it is good to place money in the hands
of several fund managers. This might reduce the maximum return possible, but will also
reduce the risks.
6. Be regular: Investing should be a habit and not an exercise undertaken at one s wishes, if
one has to really benefit from them. As we said earlier, since it is extremely difficult to know
when to enter or exit the market, it is important to beat the market by being systematic.
7. Do your homework: It is important for all investors to research the avenues available to
them irrespective of the investor category they belong to. This is important because an
informed investor is in a better decision to make right decisions. Having identified the risks
associated with the investment is important and so one should try to know all aspects
associated with it. Asking the