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Retail Banking --- Meaning of Research

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: Housing Development Finance Corporation Ltd. (HDFC) : Sterling Point, Waghavadi Road, Bhavnagar. : 1994 : 0278-2572173 : 0278-2568325 : www.hdfcbank.com : [email protected] : Mr. Chetan Trivedi Mr. Kamlesh Pinal Mr. Ami Vithalpura Mr. Pranav Shah Mr. Shweta Shah

HISTORY & DEVELOPMENT OF THE BANKThe HDFC Ltd. Was amongst the first to receive in principle approval for the Reserve Bank Of India (RBI) to set up a bank in the private sector , as part of the RBIs liberalization of the Indian Banking Industry. The Bank was incorporated in August,2

1944 in the name of HDFC Bank Ltd. With its registered office in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January, 1995. Since its inception in 1977, the corporation has consistent and healthy growth in its operations to remain the clear market leader in banking service in India. Its outstanding loan portfolio covers a million dwelling and has developed significant expertise in retail mortgage loans to different market segments. With its extensive financial market, a strong market reputation, large shareholder base and number of franchisee, HDFC was ideally positioned to promote a bank in the Indian Environment. HDFC Banks mission is to be a world class Indian Bank. The bank aims to ensure the ethical standards, professional integrity and regulatory compliance. HDFC Banks philosophy is based of fox core values; Operational Excellence, Customer Orientation, Leadership and people.


HDFC Bank was incorporated in August, 1944 in the of HDFC Bank Ltd., with its registered office in Mumbai, India. The bank commenced operations as a Schedule Commercial Bank in January, 1995. The Housing Development Finance Corporation Ltd. (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 a part of the RBIs liberalization of the Indian Banking Industry in 1994. 3

Headquartered in Mumbai, HDFC Bank, has a network of over 531 branches spread over 228 cities in India. All branches are linked on an online real-time basis. Customers in over 120 locations are serviced through Telephone Banking. The bank also has a network of about over 1647 networked ATMs across these cities. HDFC Banks ATM network can be accessed by all domestic and international Visa/Master card, Visa Election/Mastro, Plus/Cirrus and American Express Credit/Charge Cardholders. HDFC Bank has won many awards for its excellent service. Major among them are Best Bank in India by Hong Kong based Finance Asia Magazine in 2005 and Company of the Year Award for Corporate Excellence 2004-05.


When two or more persons work together towards a common goal, authority and responsibility are allocated among them so that their efforts may become effective. This is the task of organizing. It is known as designing of an organization structure. Different enterprises adopt different types of organization according to their needs. The five well-known types of organization which can be adopted in particular enterprises, they are; 4


Line Organization Staff Organization Line & Staff Organization Functional Organization Matrix Organization

HDFC has adopted the Line Organization as it is one of the simplest and oldest forms of organization. It is known as military type of organization. In the bank there are different departments which are handled by general manager under the Board Of Directors, they work together. In this organization responsibility goes upward to downward.













HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs.100 million.Business Objectives:

The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.Organizational Goals:

HDFCs main goals are to a) develop close relationship with individual households, b) maintain its position as the premier housing finance institution in the country, c) transform ideas into viable and creative solutions, d) provide consistently high returns to shareholders, and e) to grow through diversification by leveraging off the existing client base.

MEANING OF RESEARCHResearch us a scientific and systematic search for pertinent information on a specific topic. Redman & Mory define research as a7

systematized effort to gain new knowledge. Some people consider research as movement to movement from the known to unknown. Its actually a voyage of discovery. Research is an academic activity and as such the term should be used in technical sense. According to Clifford Woody research comprises of defining and redefining problems, collecting, organizing and evaluating data. Research is thus an original contribution to the existing stock of knowledge making for its advancement.

RETAIL BANKING AT HDFC BANKThe products and services come under the retail banking are as follows; ACCOUNT & DEPOSITS SAVINGS ACCOUNTS:8

- Regular Saving Accounts - Saving Plus Accounts - Saving Max Accounts - Salary Accounts Payroll Classic Regular Premium Defense Salary Account - Pension Saving Bank Accounts CURRENT ACCOUNTS:Plus Current Accounts Trade Current Accounts Premium Current Accounts Regular current Accounts

FIXED DEPOSITS:- Regular Fixed Deposit - Super Saver Account - Sweep-in Account


- Vehicle loans - Loan Against Securities - Loan Against Property CARDS CREDIT CARDS:Silver Credit Card Gold Credit Card Platinum Credit Card Business Credit Card Value Plus Credit Card

DEBIT CARDS:- Easy Shop International Debit Card - Easy Shop Gold Debit Card - Easy Shop International Business Debit Card PREPAID CARDS:- Forex Plus Card INVESTMENTS & INSURANCE Mutual Funds Insurance General & Health Insurance Bonds Equities & Derivatives Mudra Gold Bar

PAYMENTS & SERVICES Net Safe Merchant Services Bill Pay Insta Pay10

ACCESS YOUR BANK Net Banking One View Insta Alerts ATM

ACCOUNTS & DEPOSITSBanking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a customers need and occupational status, this bank has a range of solution that are second to none.11

Whether customers are employed in a company and need a simple Saving Account or run they own business and require a robust banking partner, HDFC Bank not only has the perfect solution for their customers, but also can recommend products that can augment their planning for the futures. SAVINGS ACCOUNTS:These accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Savings Accounts are classified into following categories: REGUALAR SAVING ACCOUNTS:An easy-to-operate saving accounts that allows customers to issue cheques, draw Demand Drafts and withdraw cash. FEATURES AND BENEFITS:- Wide network of branches and over 1515+ ATMs to meet banking needs to matter where you are located. - Bank conveniently with free facilities like Net Banking and Mobile Banking to check account balance , pay utility bills or stop cheque amount, through SMS. - Never overspends- shop using International Debit Card that reflects the actual balance in customer saving account. - 3 Free transaction on SBI/Andhra Bank ATMs per month. - Free Payable-at-par Chequebook, without any usages charges upto a limit of Rs.50,000 per month.

SAVING PLUS ACCOUNT:Now customers can get access to some of the finest banking facilities with HDFC Banks Saving Plus Account. All customers have to do is maintain an Average Quarterly Balance of Rs. 10,000 and can get the following benefits;


BENEFITS:- 2 Free transactions on SBI/Andhra Bank ATMs per month. - 3 Free transactions on any other Banks ATM per month. - Free payable at par ( PAP ) chequebook without any usages charge upto a limit of Rs. 50,000 per month. - Free Demand Draft on HDFC Bank locations, upto a limit of Rs. 25,000 per day.

SAVING MAX ACOUNT :Saving Max Account is loaded with Maximum benefits to make customer banking experience a pleasure. By maintaining an Average Quarterly Balance of just Rs. 25,000 customer can get host of premium services from HDFC Bank absolutely free. FEATURES AND BENEFITS:- Free Gold Debit Card for primary account holder for lifetime of the account. Gold Debit Card for other account holders at Rs. 250 p.a. - Free payable-at-par ( PAP ) chequebook, without any usages charges up to limit of 1 lac per month. - Free Demand Drafts on HDFC Bank locations, upto a limit of Rs. 50,000 per day at home branch.

PENSION SAVING BANK ACCOUNT:A Pension Saving Account is a Zero Balance Account that accumulates customers pension over the years. It comes with a free International Debit Card and facilities like Phone and Net Banking. Customers can access this Account from any branch within the HDFC network and also request for transfer to another bank. FEATURES AND BENEFITS:13

- The Pension Saving account is a Zero Balance Account. - Timely credit of receivables. - Enjoy facilities such as Net Banking, Phone Banking, Bill Pay, ATM facility, inter-city and inter-branch banking. - Pension Accounts are transferable from one branch / bank to another.

CURRENT ACCOUNTS:The current accounts are classified under the followings heads; PLUS CURRENT ACCOUNTS:In todays fast-paced world, business regularly requires to receive and send funds to various cities in the country. HDFC Bank Plus Current Accounts gives the power of inter-city banking with a single account and access to more than 327 cities. From special cheques that get treated at par with local ones in any city where they have a branch, faster collection of outstanding cheques ( payable at branch locations ), free account to account funds transfer between HDFC Banks Accounts to Free intercity clearing of up to 10 lakhs per month, our priority services have become the benchmark for banking efficiency. Plus Current Accounts requires to maintain an average quarterly balance of Rs. 100,000.

TRADE CURRENT ACCOUNT:Trade Current Account and Plus Current Account both are the same but there is only one difference between them that PCA gives the facilities of Free inter-city clearing limit up to 100 lakhs and requires to maintain quarterly balance of Rs. 1,00,000 while TCA provides only of 50 lakhs and requires to maintain the quarterly balance of Rs. 40,000 only.14

PREMIUM CURRENT ACCOUNT:Business needs a partner who can manage customers finances while they concentrate on growing their business. Customers can avail benefits of inter-city banking account with Premium Current Account that requires an average quarterly balance of Rs. 25,000, offers Payable-At-Par chequebook facility and FREE inter-city clearing transactions across our network up to Rs. 25 Lakhs per month. A current Accounts with the benefits of accessing customer account fro a large network of branches, and through direct access channels the phone, mobile, internet and through the ATM. The other Current Accounts are Regular Current Account, Reimbursement Current Account and RFC Domestic Account. REGULAR CURRENT ACCOUNT:An easy-to-operate savings account that allows customers to issue cheques, draw Demand Drafts and withdraw cash. Check up on their balances from the comfort of their home or office through Net Banking, Phone Banking and Mobile Banking. If customers need money urgently, they can withdraw cash from any of the 1647 ATM centers spread across the country. FEATURES AND BENEFITS:- Take advantage of Bill pay, an instant solution to all their frequent utility bill payments. - Avail of facilities like Safe Deposit Locker, Sweep-in and Super Saver facility on their account. - 3 Free transaction on SBI/Andhra Bank ATMs per month.15

- Free Payable-at-Par Chequebook, without any usages charges up to a limit of Rs. 50,000 per month, - Free Passbook facility available at home branch for account holder (Individuals).

FIXED DEPOSITS:Long-term investment from the chunk from everybodys future plans. An alternative to simply applying for loans, fixed deposits allow customers to borrow from their own funds for a limited period, thus fulfilling your needs as well as keeping their savings secure. The Fixed Deposits are classified under the following heads. REGULAR FIXED DEPOSITS: If customers believe in long-term investment and wish to earn higher interests on their savings, now is the time to invest their money in Fixed Deposits. Get up to 8.75% on HDFC Bank Fixed Deposits with an additional 0.50% for Senior Citizens. Whats More NO PENALTY if you are withdraw part of FD in times of needs,

FEATURES AND BENEFITS:- Time based rate of interest longer period of deposits accrue higher interests. - Potential to earn compound interest by reinvesting the principle amount along with the interest earned during the period. - Higher rate of interest on fixed Deposits for Senior Citizens.


SUPER SAVER ACCOUNT:From this account customer can enjoy a high rate of interest along with the liquidity of a Saving Accounts by opting for a Super Saving Facility on their savings accounts. Avail of an Overdraft facility up to 75% of the value of your Fixed Deposits. FEATURES AND BENEFITS:- Its like two Accounts working in tandem to give you better returns. - Choose between a Saving Account and Current Account to link to their Fixed Deposit. - Avail in overdraft facility to supplement their household or business needs.

SWEEP-IN ACCOUNT:If consumer wishes to avoid taking overdrafts, and still take advantage of Fixed Deposits, then what they need is a Sweep-In Facility on their Saving Account. If customers link their Fixed Deposit to their Savings or Current Account and they can use it to fall back on in case of emergencies. A deficit in customer Saving or Current Account is taken care of by using up an exact value from your Fixed Deposit. Since deposits are broken down in units of Re 1/-, you will lose interest only for the actual amount that has been withdrawn.

FEATURES AND BENEFITS:- Earn higher interest on the money till it is swept-in, while the remaining Fixed Deposit continues to earn you interest. - Only an exact amount required to make up for the deficit in the Saving account is withdrawn from your Fixed Deposit ( units of Re. 1/- ) thereby minimizing interest loss.17

- Flexibility in altering the period of deposit, maturity and payment instructions, principal amount and rollover mode.

DEMAT ACCOUNT:HDFC Bank is one of the leading Depository Participants ( DP ) in the country with over 8 Lac demat accounts. HDFC Bank Demat services offers customers a secure and convenient way to keep track of their securities and investments, over a period of time, without the hassle of handing physical documents that get mutilated or lost in transit. HDFC Bank is Depository participant both with National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). FEATURES AND BENEFITS:- Settlement of Securities traded on the exchanges as well as off market transactions. - Shorter settlements thereby enhancing Liquidity. - Pledging of Securities.

- Electronic Credit in public issue. - No stamp duties on transfer of securities held in demat form.

SAFE DEPOSIT LOCKERS:A Safe Deposit Locker with HDFC Bank is the solution to customer concern. Located at selected branches in cities all over the country, this banks lockers ensure the safe keeping of their valuables.


FEATURES AND BENEFITS:- Lockers available in Various Size. i.e. Small, Medium, Large and Extra Large with varying rents. - Lockers are rented out for a minimum period of one year. Rent is payable in advance. - No Deposits are required to avail a locker. Just open an account and get the locker facility. - Direct debits for lockers rentals from your account rid you of the hassles in writing out cheques.

LOANSPERSONAL LOANS:The Personal Loan is taken for the personal purpose of an individual. Whatever the occasion banks range of Personal Loans19

can help. The procedure is simple, documentation is minimal and approval is quick. FEATURES AND BENEFITS:- Borrow up to Rs.10,00,000 for any purpose depending on customer requirements. - Flexible repayment options, ranging from 12 to 48 months. - One of the lowest interest rates. - Hassle free Loans No guarantor/securities/collateral required. - Speedy loan approval.

HOME LOANS:HDFC Bank brings HDFC home loans to consumer doorstep. With over 25 Years of experience, a dedicated term of experts and a complete package to meet all your housing finance needs, HDFC Home Loans, help you realize your dream. FEATURES AND BENEFITS:- Home Loan Home loans for individuals to purchase ( fresh / resale ) or construct houses. Application can be made individuals or jointly. HDFC finance up to 85% maximum of the cost of the property. - Home Improvement Loan HIL facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminium windows. HDFC finance up to 85% of the cost of renovation ( 100% for existing customers ) - Land Purchase Loan Be it land for a dream house, or just an investment for the future, HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances up to 70% of the cost of the land ( conditions apply ). Repayment of the loan can be done over a maximum period of 10 years.20

- Home Extension Loan HEL facilitates the extension of an existing dwelling unit. All the terms are the same as applicable to Home Loan.

VEHICLE LOANS:TWO WHEELERS LOANS:FEATURES AND BENEFITS:- Flexible repayment options, ranging from 12 to 48 months available even at the point of purchase. - Repay through post-dated cheques with easy EMIs. - Free gifts from time to time on approval of your Two Wheelers Loan. NEW CAR LOANS:FEATURES AND BENEFITS:- Covers the widest range of cars and multi-utility vehicles in India. - Flexible repayment options, ranging from 12 to 48 months. - Borrow up to 3 times annual salary ( for salaried professionals ) and 6 times your annual income ( for self employed professionals )

LOAN AGAINST SECURITIES :With HDFC Banks Loan against Securities, customer can get an Overdraft against their securities like Equity Shares, Mutual Fund Units (Equity,Debt,FMPs), GOI Relief Bonds, Policies issued by LIC & Selected Private Insurance Companies, NSC, KVP, UTI Bonds ( 6.66% ARS & US64 Bonds ) and Gold Deposit Certificates, while still retaining ownership. And the best part Is that you can continue21

enjoy all your shareholder benefits such as rights, dividends and bonuses. FEATURES AND BENEFITS:- You can enjoy the benefits of your securities and still avail a loan on

the same. No Post Dated cheques. No Pre-payment charges. Interest charged only on utilized amount. Exhaustive number of approved securities. Up to 90% Loan.


Single Scrip Lending ending up to 40% of the value with any Depository Participant. Minimum loan amount: Rs. 50,000. Pay interest only on the amount outstanding and only for the time customer use it. Interest is calculated on the daily outstanding balance and debited to your account every month end.

LOAN AGAINST PROPERTY:HDFC Bank brings Loan Against Property ( LAP ). Customers can now take a loan against their residential or commercial property, to expand their business, plan a dream wedding, fund your childs education and much more. Customers can depend o this bank to meet all their business requirements even to purchase a new shop or office for their business. Loan to Purchase Commercial Property ( LCP ) is a specially designed product to help expand customer business without reducing the capital from business.22

FEATURES AND BENEFITS:- Loans from Rs. 2 Lacs onwards depending on customers needs. - Borrow up to 60% of market value of the property. - Flexibilities to choose between EMI based loan or an Overdraft Bank also offer to customer overdraft against their selfoccupied residential or commercial property and customer save money by paying interest only on the amount utilized.

CARDSCREDIT CARDS:The credit cards are classified under the following heads. SILVER CREDIT CARDS:FEATURES AND BENEFITS:23

- All purpose Credit Card. The HDFC Bank Silver Credit Card can be used for all customers requirements, be it shopping, eating out, holidaying, fuelling up your vehicle, railway ticket reservation just about any financial requirement, planned or on impulse. - Earn While You Spend With this Bank, 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. - Zero Liability on Lost Card In case of customer credit card gets lost, report it immediately to our 24- hour call centre. After they do this, customer carry zero liability on any fraudulent transaction on their card.

GOLD CREDIT CARD:FEATURES AND BENEFITS:- Up to 5% cash back on air ticketing 5% cash back on Domestic air transaction above Rs. 10,000 through domestic airline websites ( 2.5% on transaction below Rs.10,000 ) - 5% cash back in train ticketing Get 5% cash back on railway tickets purchased with HDFC Bank Gold Credit Card at the Indian Railways. - Worldwide Acceptance Accepted at over 23 Million Merchant Establishments around the world, including 110,000 Merchant Establishment in India. PLATINUM PLUS CREDIT CARD:Indias only Platinum Plus Credit Card offering exclusive travel and preferential benefits. The HDFC Bank Platinum Plus Credit Card24

is the best Platinum offering in the market. It is the recognition of those who have arrived in life.

FEATURES AND BENEFITS:- Exclusive Travel Benefits Discount at over 28,000 hotels and resorts worldwide: Enjoy discounts at over 28000 hotels and resorts across the world through a complimentary Travel Club Holiday Membership. ( powered by RCI ). - Balance Transfer Customers can transfer the balances from their other credit cards to the Platinum Plus Credit Cards, and enjoy an InterestFree period of 3 whole months on the transferred amount.

BUSINESS CREDIT CARD: The HDFC Bank International Business Card is designed to add value to customer business, while keeping in mind the conveniences and the self employed community specifically. FEATURES AND BENEFITS:- Better Business Card with the HDFC Bank Business Card

Higher Credit Limits : Get Up To 10 lacks as credit limit on the card basis the company / business financials. Spend based Interest Rates : pay lesser rate of interest when customers spend on the Gold Business Card. The card offers a unique benefit of spend based interest rates. i.e. The more spend on the card in a month the less interest you accrue. The interest rates are 2.75% for spends up to Rs.10,000 in a month and 2.35% for spend more than Rs. 10,000 on incremental spends. 25

Other FeaturesCash at your fingertips: In a situation where customer need cash, just step into any one of our ATMs or Master Card Member ATMs and withdraw cash up to 40% of your credit limit at a very nominal charge. Free Credit Period: Now customer can enjoy up to 45 days interest free credit on their purchase.

VALUE PLUS CREDIT CARD: The Value Plus Credit Card brings customers added value unlike any other cad. It is a Guaranteed Cash card which enables customer to earn up to 5% Cash Back on their spends.

DEBIT CARD:Still carrying an ATM card? Discover the power and convenience of our Debit Cards that not only let customer withdraws cash from ATMs but also let customer shop cashless and hassle-free. The cards involved in Debit Cards are as under. EASY SHOP INTERNATIONAL DEBIT CARD:FEATURES AND BENEFITS:- Daily Limits: Rs. 15000 at ATMs for Withdrawal and Rs. 25000 at merchant establishment for shopping - Access your bank account at over 8,00,000 Visa/Maestro/Cirrus ATMs in India and abroad. - Customers can stop at more than 3,50,000 outlets in India and 13 million worldwide. The amount is debited directly to their account.26

EASYSHOP GOLD DEBIT CARD:FEATURES AND BENEFITS:- Daily Limits: Rs. 25,000 at ATMs for Withdrawal and Rs. 50,000 at merchant establishment for shopping. For Gold Debit Cards issued after Rs. 50,000 at ATMs for Withdrawal and Rs. 50,000 at merchant establishment for shopping. - Cash Back: For every Rs. 100 that customer will spend, they will receive Re. 1 as cash back. This cash back is valid on all purchase made through the card, at all times of the year. - Zero Liability on Fraudulent Point of Sale usages on lost or stolen cards: If its not customers purchase, customer doesnt have to pay for it!! There Debit Card is safer than ever! EASYSHOP INTERNATIONAL BUSINESS DEBIT CARD:FEATURES AND BENEFITS:- POS Alerts : Now customers can get an Alert on their mobile phone or email for every purchase transaction done using their Debit Card at a merchant outlet!! All customer need to do is register for Insta Alerts! - Insurance Cover :- The following are including in the insurance covers: 1. Fire & Burglary for the items purchased under Debit Card ( up to 6 months ) sum assured Rs. 2,00,000. 2. Loss of Baggage Insurance Sum assured Rs. 1,00,000. - Special Alliances by Master Card: Special Partner programs in form of value adds / special privileges / discounts from premium outlet and office related products27

PREPAID CARDS:A prepaid credit card requires customer to pay first and use later. And theyll never have to worry about over-spending again! FOREXPLUS CARD :HDFC Bank brings the Forex Plus Travel Card a prepaid travelers card designed to five customer a secure and hassle-free travel experience. No more chasing moneychangers. Or paying transaction charges for shopping abroad. The Forex Plus Travel Card is ideal for travelers since it can be blocked if stolen and reloaded, while customers are still abroad!



MUTUAL FUND: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 volatility, FAMA Model, risk adjusted returns, rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions / due diligences with fund managers. Advantages of Investing into a Mutual Fund:-

- Flexibility: Mutual fund investments also offer a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment. 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: Experts Fund Managers of the Mutual Fund analyze all option based on experience & research.


INSURANCE:HDFC Bank offers a world of choice in insurance. Customers can now avail of Life - Insurance plans from HDFC Standard Life Insurance.

LIFE INSURANCES: (A) UNIT LINKED INDURANCE PLAN:For your child: For retirement For the long term

(B) CONVENSIONAL INSURANCE PLAN:To realize your childs goals For a long term horizon

GENERAL & HEALTH INSURANCE:The policies involved in General and Health insurance are as under;


Home Insurance Travel Insurance Health Insurance



Shop / Office Insurance Car / Motorbike Insurance

BONDS:Just as people need money, so do companies and governments. A company needs funds to expand into new markets, while government needs money from everything from infrastructure to social programs. The problem large organization run into is that they typically need far more money than the average bank can provide. The solution is to raise money is by issuing Bonds (or other debt instruments) to a public market. Thousands of investor then each lend a portion of capital needed. A bond is nothing more than a loan for which you are the lender. The organization that sells a bond is known as the issuer. You can think of a bond as an IOU given by a Borrower (the issuer) to a lender (the investor). For example, say an investor buys a bond with a face value o Rs.1,000 a coupon of 8% and a maturity of 10 years. This means the investors receives a total of Rs. 80 (Rs. 1,000 * 8%) of interest per year for the next 10 years. Actually, because most bonds pay interest semi-annually, the investor receives two payments of Rs. 40 a year or 10 years. When the bond matures after a decade, the investor gets your Rs. 1000 back. The different types of bonds include government securities, corporate bonds, commercial paper, treasury bills, strips etc. These bonds are either fixed interest bonds or floating rate bonds. In fixed interest bonds, the interest component remains the same throughout the tenure of the security. Say a 10year bond issued today bears 8% interest. Even if 5 year hence, the interest rate in the economy goes down into 5%, this 8% bond will continue to earn the interest 8% interest. In a floating rate bond, the interest rate varies depending on the interest rate of a security that the bond chooses to benchmark its interest rate to.



In financial markets, the only constant thing is change. At such times, HDFC Securities offers unique gamut of services designed to put in charge of customer finances and lets they trade in the comfort of their home or office. Finally, customers can trade with complete ease.

MUDRA GOLD BAR:HDFC Bank presents Mudra, an offering worth its weight in Gold. Mudra is a 24 carat, 99.99% pure Gold Bar that customer can purchase for investment of gifting. Gold continues to be one asset that appreciates steadily. HDFC Bank now offers Pure Gold Bars imported from Switzerland with an Assay Certification, signifying the highest level of purity as per international standards.

FEATURES AND BENEFITS:- Pure and Reliable:Mudra is great value of 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.

- ConvenienceMudra Gold Bars are currently available in 2.5, 5 g, 10 g, 20 g and 50 g denominations. The Gold Bars are presented in tamper-proof certicard packs.

- PriceMudra Gold Bars are competitively priced based on the daily price in the international bullion market. The price is inclusive of customers duty and other charges involved in the retailing of Gold Bars. Todays Gold Bar Prices are : Heart Shape : 5 g, 10 g, 20 g, 50 g


PAYMENT SERVICESNET SAFE:Net Safe is a simple online payment solution that offers complete security while shopping on the Internet. With Net Safe, customer can now shop online through a virtual credit card, without revealing actual HDFC Bank Credit Card number.

KEY BENEFITS:- Customer HDFC Bank Credit/debit card number is never used on the merchant website. The Net Safe Card customer create is a one time use card. Customer can set their own limit fir the Net Safe Cards they generate. Customer can use it on any merchant website that accepts Master Card/ VISA payment cards. It ensures a completely safe and secure shopping experience. All purchases customers make with Net Safe Cards will appear on their statement, just like any other transaction.

BILL PAY:Now, customers have the luxury of paying their telephone, electricity and mobile phone bills at their convenience through the internet, ATMs, their mobile phone or telephone using Bill pay, a comprehensive bill payment solution.

KEY BENEFITS:- Convenience at its best: No queuing up at collection centers or writingcheques any more! 33

- A variety of payment modes available ATMs, Net Banking, Mobile Banking and Phone Banking. Payment can be made right up to the due date. Receive discount from specific billers on payments made through Bill Pay. Discounts will be provide in the next months bills.

MERCHANT SERVICES:For Merchants, the world over, accepting payments through cards, both debit and credit, is an easy and cost effective way to enhance business, increase revenue, and improve efficiency. As an acquirer, HDFC Bank makes accepting credit and debit cards easy. This bank valued merchant establishment can now accept all credit and debit cards issued under the Visa, Visa Election, Mater card and Maestro brands. The service is backed by superior technology infrastructure and personalized support from a designed relationship officer.

INSTA PAY:Now customers can pay their bills, make donations to charity organization or subscribe to magazines without going through the hassles of registration. All customers need is their bill details and they can pay from the comforts of their home or office by logging in HDFC Bank website.

KEY BENEFITS:- Convenience- No need to stand in queue or write cheques, customers can pay at their convenience from their home or office. No registration hassles- No need to register for the service before paying bills.


ACCESS YOUR BANKNET BANKINGNet Banking is HDFC Banks Internet Banking Service. Providing up-tothe-second account information. Net Banking lets manage customer account from the comfort of their mouse anytime, anywhere.

ONE VIEW:One View is a revolutionary service from HDFC Bank that allows customers to manage multiple accounts in different banks through one single online interface. If you are an HDFC Bank Customer and have one or more accounts with Citibank, ICICI Bank, HSBC India, Standard Charted Bank then One View is just right for you.

FEATURES AND BENEFITS:- No need to individually log on to internet banking of every account. Just log on to One View and manage up to FIVE accounts in different banks. Remember only ONE password. No charges whatsoever Enjoy this convenience, absolutely FREE!!!


Now customers can get regular updates on their bank account on their mobile phone or E-mail ID. Just register for Insta Alerts service in HDFC Bank and receive updates on account as and when the select transaction happens all this without visiting the branch or ATM!

MOBILE BANKING:Now customers can access their bank account and conduct a host of banking transaction and inquires through their own mobile, with unique Mobile Banking service.

ATM:Now customer can enjoy the following benefits at any of this bank over 1515 ATMs across India.

- 24 hour access to cash - Withdraw up to Rs. 10,000 per day on ATM Card and up to Rs. 15,000 on Debit Card. The fast cash option saves customers time by providing the cash in denomination of Rs. 500. View Account Balance & Mini-statement To get the details of the last 9 transaction on account with the mini-statement, along with balance. Order a Cheque Book / Account Statement Transfer Funds between accounts Customer can also transfer money from one of their accounts to another. Both accounts must be linked to your ATM Card and Customer ID. A maximum of 5 Saving and 5 Current Accounts can be linked. Refill your Prepaid card If you are an HDFC Bank Account Holder and a prepaid customer, you can now refill your prepaid card with our Prepaid Refill service. Pay your Utility Bills To pay cellular, telephone and electricity bills through the ATM using Bill Pay, a comprehensive bill payment solution. Deposit cash or cheques Customer can deposit cash or cheques into their own account and the ATM will immediately print a receipt for the same.



DATA ANALYSISRESARCH METHODOLOGYHYPOTHESIS: Investors still prefer the traditional funds for investment instead the more modern methods like mutual fund

RESEARCH OBJECTIVETo study Investment pattern of investors. 37

Key factors to be considered before investing. Mutual funds scope and acceptance of mutual fund as means of investment as compared to other investment.

TYPE OF SURVEYThe questionnaire based survey is selected for conducting the research. The questionnaire based survey is selected because it is the most effective and efficient way to conduct research of investors investing in mutual fund since they just have to give their opinion for the question asked by the researcher and also they can just select from the alternatives given in the questionnaire.

SAMPLINGNon-Probability Sampling For the study the sampling technique used is that of Non Probability Sampling and the method is that of Convenience Sampling which represents the non probability samples that can be restricted. Under this method there is freedom to choose whomever the researcher finds.

SAMPLE SIZEThe population defined for the study is any investor and into any kind of investment. The population defined would give inferences. So the population is divided here in different classes. All the professionals, service, businessmen and would include any person who make any kind of investment became my population. The sample size is approximately size is kept 100 randomly.

TYPE OF QUESTIONNAIREThe questionnaire designed contained Dichotomous questions Multiple-choice questions Thus it was easy for the investors to select from the alternatives, the alternative which suits them the best. The data or the data the information collected from the respondents were the respondents were then compiled, tabulated and classified for analysis and interpretation with the use of Microsoft Excel, Microsoft Word etc.


Every research has certain limitation to it. So also the research conducted had certain limitation. They are stated as under: The respondents were not very much co-operative as they didnt want to disclose their level of investments. The investors of were difficult to be traced, as there was no database available for the same. People generally hesitated to answer the questionnaire thinking that the questionnaire is a way to market some particular mode of investment. Insufficient knowledge of every kind of investment sometimes sticks a respondent at particular answer, which inversely affect towards the objective of study. At the time of survey some of the respondents are busy in their work, which had restricted them from answering. The respondents where not able to justify their stand at points and hence this proved to be a limitation of the study.