MFS prjt report

8/7/2019 MFS prjt report

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A REPORT ON

MANAGEMENT OF FINANCIAL SERVICES

PROJECT

Submitted by

ANU MOSES

ARCHANA V

JWALA SIVAN

SHERLY VARGHESE

Under the guidance of

Ms ARCHANA S

Faculty of TIM

TKM INSTITUTE OF MANAGEMENT

KARUVELIL HILLS

KOLLAM

2010


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DECLARATION

Ourselves, Anu Moses, Archana V, Jwala Sivan and Sherly Varghese

hereby declare that the project report on Management of Financial Services is

written and submitted by us under the guidance of Ms Archana, faculty of TKM

Institute of Managament , Kollam is my original work.

The empirical findings in this report are based on the data collected ourselves.

While preparing this report, I have not copied from any other report. We also

declare that this report has not been submitted to any other University or Institution

for the award of any fellowship, Degree or Diploma

Place: Kollam Anu Moses

Date: Archana V

Jwala Sivan

Sherly Varghese


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ACKNOWLEDGEMENT

First we thank the God Almighty for the grace showered on us.

We honestly express our gratitude towards Ms Archana.S , faculty of TIM,

Karuvelil hills, Ezhukon who keeps the esteem of our Institution up.

The success of this project lies in the hands of many people who have helped

and guided us in completing this project.

With due reverence, we also thank our parents, our friends and

all our well wishers who had encouraged and supported us in making this

endeavour a success.

Place: Kollam Anu Moses

Date: Archana V

Jwala Sivan

Sherly Varghese


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CONTENTS

Chapter-1

Introduction

y Backgroundy Objectives of the studyy Scope of the studyy Methodology

Chapter-2

Industry Analysis- Banking, Insurance, Mutual Fund

Chapter-3

Company Analysis

y Services Rendered by the Central banky Services Rendered by the Max New York Life Insurance Insurance Companyy Services Rendered by the selected HDFC Mutual Fund

Chapter-4

Marketing of Financial Services

Chapter-5

Findings & Conclusion

Bibliography


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CHAPTER-1

Background

The various companies which we have chosen in different sectors are CentralB

ank OfIndia,Max Newyork Life Insurance and HDFC Mutual funds.

Established in 1911, Central Bank of India was the first Indian commercial bank which was

wholly owned and managed by Indians. The establishment of the Bank was the ultimate

realisation of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha

Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride felt

by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property of the

nation and the country's asset'.. During the past 99 years of history the Bank has weathered many

storms and faced many challenges. The Bank could successfully transform every threat into

business opportunity and excelled over its peers in the Banking industry.The bank is celebrating

its centenary year in 2011.Central Bank Of India is the pioneers in introducing debit cards,credit

cards,home safe savings etc.

Central Bank of India, Kottayam is a well established branch with all eminent facilities provided

to the customers.

Max New York Life Insurance, a Joint Venture between New York Life International LLC and

Max India Limited. New York Life, a fortune 10 Company, is one of the worlds experts in life

insurance with over 160 years of experience in the business and over US $ 215 billion in assets

under management. Max India Limited is a multi-business corporate, focused on the knowledge,

people, and service-oriented businesses of life insurance, healthcare and information technology.

HDFC Mutual Fund was incorporated on December 10, 1999. HDFC Trustee Company Limited, a

company incorporated under the Companies Act, 1956 is the Trustee to HDFC Mutual Fund vide the

Trust deed dated June 8, 2000, as amended from time to time. HDFC Trustee Company Ltd is

wholly owned subsidiary of HDFC. The Board of Directors of HDFC Trustee company Limited

consists of the following eminent persons: Mr. Anil Kumar Hirjee, Mr. Vincent JosephOBrien,

Mr.Shishir.K.Diwanji,Mr.RanjanSanghi,Mr.V.SrinivasaRangan.


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HDFC Asset Management Company Limited was awarded NDTV Profit Business Leadership

Award 2009 in the Mutual Funds Category for the period April 1, 2008 to March 31, 2009 from

amongst six nominees in the category. NDTV Profit Business Leadership Awards have been

instituted to honor organization excellence and promise to acknowledge the best, the brightest and

the most dynamic of Indian organizations that have emerged as leaders in their respective verticals

and are taking India to economic superpower status

Objectives

y To study about the services and products offered by Central bank, HDFC Mutual fundand Max New York Life Insurance

y To collect information regarding present banking sector ,mutual fund and insurancesector.

y To know about the marketing strategies adopted by the bank,insurance company andmutual fund.

y To know about the unique features of the bank,insurance and mutual funds.

Scope of the study

These three sectors are leading sectors in India.Also they provide wide range of employment

opportunities in the present scenario. So study about these three sectors will be helpful to know

more about its functioning and performance.

Methodology:

Data was collected through direct interview and through websites.


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CHAPTER-2

INDUSTRY ANALYSIS


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BANKING INDUSTRY

The first banks were probably the religious temples of the ancient world, and were probably

established in the third millennium B.C. Banks probably predated the invention of money.

Deposits initially consisted of grain and later other goods including cattle, agricultural

implements, and eventually precious metals such as gold, in the form of easy-to-carry

compressed plates. Temples and palaces were the safest places to store gold as they were

constantly attended and well built. As sacred places, temples presented an extra deterrent to

would-be thieves. There are extant records of loans from the second century BC in Babylon that

were made by temple priests/monks to merchants. The Banking Industry was once a simple and

reliable business that took deposits from investors at a lower interest rate and loaned it out to

borrowers at a higher rate.

However deregulation and technology led to a revolution in the Banking Industry that saw it

transformed. Banks have become global industrial powerhouses that have created ever more

complex products that use risk and securitization in models that only PhD students can

understand. Through technology development, banking services have become available 24 hours

a day, 365 days a week, through ATMs, at online banking, and in electronically enabled

exchanges where everything from stocks to currency futures contracts can be traded.

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 StockBank: 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 theAlliance Bank of Simla.

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 the Bank of Hindustan, both of which 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 ofBengal. This was

one of the three presidency banks, the other two being the Bank ofBombay and the Bank of


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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.

The Banking Industry at its core provides access to credit. In the lenders case, this includes

access to their own savings and investments, and interest payments on those amounts. In the case

of borrowers, it includes access to loans for the creditworthy, at a competitive interest rate.

The growth in the Indian Banking Industry has been more qualitative than quantitative and it is

expected to remain the same in the coming years. Based on the projections made in the "India

Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts

that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets

of all scheduled commercial banks by end-March 2010 is estimated at Rs 40,90,000 crores. That

will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in

2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during

the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95

and 2002-03. It is expected that there will be large additions to the capital base and reserves on

the liability side.

The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks.

Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000

branches of Scheduled banks spread across India. As far as the present scenario is concerned the

Banking Industry in India is going through a transitional phase.

The Public SectorBanks (PSBs), which are the base of the Banking sector in India account for

more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with

excessive Non Performing assets (NPAs), massive manpower and lack of modern technology.

On the other hand the Private SectorBanks are making tremendous progress. They are leaders in

Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned

they are likely to succeed in the Indian Banking Industry.

.


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The banking sector is one of the leading sector.

Section 5(3)(b) of the Banking Regulation Act,1949 defines banking astheaccepting ,for the purpose of

lending or investment,of deposits of money from the public,repayable on demand or otherwise,and

withdrawable by cheque,draft,order or otherwiseThe banking company can be started only with the

approval of RBI.

Management systems in banks differ according to the type of banks and size of banks.However

the banking sector reforms have brought in substantial changes in the management style.Private

sector is widely promoted in the banking system with enhanced capital contribution.The banks

are now enjoying autonomy as regards branch expansion, opening ATM centres etc.As a matter

of policy newly opened branches are fully computerised.The responsibility and accountability of

Board of Directors have increased substantially.The role of RBI has changed from controller to

supervisor or manager.The advent of Foreign banks necessitated improvement in the quality of

services provided by the indian banks


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INSURANCE

In law and economics, insurance is a form of risk management primarily used

to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitabletransfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a

company selling the insurance; an insured, or policyholder, is the person or entity buying the

insurance policy. The insurance rate is a factor used to determine the amount to be charged for a

certain amount of insurance coverage, called the premium. Risk management, the practice

of appraising and controlling risk, has evolved as a discrete field of study and practice.

Types of Insurance

1. Life Insurance - Insurance guaranteeing a specific sum of money to a designatedbeneficiary upon the death of the insured, or to the insured if he or she lives beyond a

certain age.

2. Health Insurance - Insurance against expenses incurred through illness of the insured.3. Liability Insurance - This insures property such as automobiles, property and

professional/business mishaps.

Challenges facing Insurance Industry

y Threat of New Entrants: The insurance industry has been budding with new entrants everyother day. Therefore the companies should carve out niche areas such that the threat of

new entrants might not be a hindrance. There is also a chance that the big players might

squeeze the small new entrants.

y Power of Suppliers: Those who are supplying the capital are not that big a threat. Forinstance, if someone as a very talented insurance underwriter is presently working for a

small insurance company, there exists a chance that any big player willing to enter the

insurance industry might entice that person off.

y Power ofBuyers: No individual is a big threat to the insurance industry and big corporatehouses have a lot more negotiating capability with the insurance companies. Big corporate


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clients like airlines and pharmaceutical companies pay millions of dollars every year in

premiums.

y Availability of Substitutes: There exist a lot of substitutes in the insurance industry.Majorly, the large insurance companies provide similar kinds of services be it auto,

home, commercial, health or life insurance.

'Life insurance' is a contract between the policy owner and the insurer, where the insurer

agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured

individual's or individuals' death or other event, such as terminal illness or critical illness. In

return, the policy owner agrees to pay a stipulated amount (at regular intervals or in lump sums).

There may be designs in some countries where bills and death expenses plus catering for after

funeral expenses should be included in Policy Premium. In the United States, the predominant

form simply specifies a lump sum to be paid on the insured's demise.

The value for the policyholder is derived, not from an actual claim event, rather it is the value

derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse

financial consequences caused by the death of the Life Assured.

Life policies are legal contracts and the terms of the contract describe the limitations of the

insured events. Specific exclusions are often written into the contract to limit the liability of the

insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.

Life-based contracts tend to fall into two major categories:

Protection policies - designed to provide a benefit in the event of specified event, typically alump sum payment. A common form of this design is term insurance.

Investment policies - where the main objective is to facilitate the growth of capital by regularor single premiums. Common forms (in the US anyway) are whole life, universallife and variable life policies.


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MUTUAL FUND

A mutual fund is a professionally managed type of collective

investment scheme that pools money from many investors and invests it in stocks, bonds, short-

term money market instruments and other securities. Mutual funds have a fund manager whoinvests the money on behalf of the investors by buying / selling stocks, bonds etc. Currently, the

worldwide value of all mutual funds totals more than $US 26 trillion. The United States leads

with the number of mutual fund schemes. There are more than 8000 mutual fund schemes in the

U.S.A. Comparatively, India has around 1000 mutual fund schemes, but this number has grown

exponentially in the last few years. The Total Assets under Management in India of all Mutual

funds put together touched a peak of Rs. 5,44,535 crs. at the end of August 2008. It is also less

expensive to invest in a mutual fund since the minimum investment amount in mutual fund units

is fairly low (Rs. 500 or so). With Rs. 500 an investor may be able to buy only a 6 few stocks

and not get the desired diversification

There are various investment avenues available to an investor such as

real estate, bank deposits, post office deposits, shares, debentures, bonds etc. A mutual fund is

one more type of investment avenue available to investors. There are many reasons why

investors prefer mutual funds. Buying shares directly from the market is one way of investing.

But this requires spending time to find out the performance of the company whose share is being

purchased, understanding the future business prospects of the company, finding out the track

record of the promoters and the dividend, bonus issue history of the company etc. An informed

investor needs to do research before investing. However, many investors find it cumbersome and

time consuming to pore over so much of information, get access to so much of details before

investing in the shares. Investors therefore prefer the mutual fund route.They invest in a mutual

fund scheme which in turn takes the responsibility of investing in stocks and shares after dueanalysis and research. The investor need not bother with researching hundreds of stocks. It leaves

it to the mutual fund and its professional fund management team. Another reason why investors

prefer mutual funds is because mutual funds offer diversification. An investors money is

invested by the mutual fund in a variety of shares, bonds and other securities thus diversifying


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the investors portfolio across different companies and sectors. This diversification helps in

reducing the overall risk of the portfolio.

History

Massachusetts Investors Trust (now MFS Investment Management) was founded on March 21,

1924, and, after one year, it had 200 shareholders and $392,000 in assets. The entire industry,

which included a few closed-end funds, represented less than $10 million in 1924.

The stock market crash of 1929 hindered the growth of mutual funds. In response to the stock

market crash, Congress passed the Securities Act of 1933 and the Securities Exchange Act of

1934. These laws require that a fund be registered with the U.S. Securities and Exchange

Commission (SEC) and provide prospective investors with a prospectus that contains required

disclosures about the fund, the securities themselves, and fund manager. The Investment

Company Act of 1940 sets forth the guidelines with which all SEC-registered funds must

comply.

With renewed confidence in the stock market, mutual funds began to blossom. By the end of the

1960s, there were approximately 270 funds with $48 billion in assets. The first retail index fund,

First Index Investment Trust, was formed in 1976 and headed by John Bogle, who

conceptualized many of the key tenets of the industry in his 1951 senior thesis at Princeton

University. It is now called the Vanguard 500 Index Fund and is one of the world's largest

mutual funds, with more than $100 billion in assets.

A key factor in mutual-fund growth was the 1975 change in the Internal Revenue Code allowing

individuals to open individual retirement accounts (IRAs). Even people already enrolled in

corporate pension plans could contribute a limited amount (at the time, up to $2,000 a year).

Mutual funds are now popular in employer-sponsored "defined-contribution" retirement plans

such as (401(k)s) and 403(b)s as well as IRAs including Roth IRAs.

As of October 2007, there are 8,015 mutual funds that belong to the Investment Company

Institute (ICI), a national trade association of investment companies in the United States, with


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combined assets of $12.356 trillion. In early 2008, the worldwide value of all mutual funds

totaled more than $26 trillion.

Mutual Fund Industry in India

Evolution

The formation of Unit Trust of India marked the evolution of the Indian mutual fund

industry in the year 1963. The primary objective at that time was to attract the small investors

and it was made possible through the collective efforts of the Government of India and the

Reserve Bank of India. The history of mutual fund industry in India can be better understood

divided into following phases:

Phase 1. Establishment and Growth of Unit Trust of India - 1964-87

Unit Trust of India enjoyed complete monopoly when it was established in the year 1963

by an act of Parliament. UTI was set up by the Reserve Bank of India and it continued to operate

under the regulatory control of the RBI until the two were de-linked in 1978 and the entire

control was tranferred in the hands of Industrial Development Bank of India (IDBI). UTI

launched its first scheme in 1964, named as Unit Scheme 1964 (US-64), which attracted the

largest number of investors in any single investment scheme over the years.

UTI launched more innovative schemes in 1970s and 80s to suit the needs of different

investors. It launched ULIP in 1971, six more schemes between 1981-84, Children's Gift Growth

Fund and India Fund (India's first offshore fund) in 1986, Mastershare (Inida's first equity

diversified scheme) in 1987 and Monthly Income Schemes (offering assured returns) during

1990s. By the end of 1987, UTI's assets under management grew ten times to Rs 6700 crores.

Phase II. Entry of Public Sector Funds - 1987-1993

The Indian mutual fund industry witnessed a number of public sector players entering

the market in the year 1987. In November 1987, SBI Mutual Fund from the State Bank of India

became the first non-UTI mutual fund in India. SBI Mutual Fund was later followed by Canbank

Mutual Fund, LIC Mutual Fund, Indian Bank Muatual Fund, Bank of India Mutual Fund, GIC


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Mutual Fund and PNB Mutual Fund. By 1993, the assets under management of the industry

increased seven times to Rs. 47,004 crores. However, UTI remained to be the leader with about

80% market share.

1992-93 Amount MobilisedAssets Under

Management

Mobilisation as % of gross

Domestic Savings

UTI 11,057 38,247 5.2%

Public Sector 1,964 8,757 0.9%

Total 13,021 47,004 6.1%

Phase III. Emergence of Private Sector Funds - 1993-96

The permission given to private sector funds including foreign fund management companies

(most of them entering through joint ventures with Indian promoters) to enter the mutal fund

industry in 1993, provided a wide range of choice to investors and more competition in the

industry. Private funds introduced innovative products, investment techniques and investor-

servicing technology.

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund

industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in

which the first Mutual Fund Regulations came into being, under which all mutual funds, except

UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with

Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEB

I (Mutual Fund) Regulations were substituted by a more comprehensive andrevised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual

Fund) Regulations 1996. By 1994-95, about 11 private sector funds had launched their schemes.

Phase IV. Growth and SEBI Regulation - 1996-2004

The mutual fund industry witnessed robust growth and stricter regulation from the


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SEBI after the year 1996. The mobilisation of funds and the number of players operating in the

industry reached new heights as investors started showing more interest in mutual funds.

Investors' interests were safeguarded by SEBI and the Government offered tax benefits to the

investors in order to encourage them. SEBI (Mutual Funds) Regulations, 1996 was introduced by

SEBI that set uniform standards for all mutual funds in India. The Union Budget in 1999

exempted all dividend incomes in the hands of investors from income tax. Various Investor

Awareness Programmes were launched during this phase, both by SEBI and AMFI, with an

objective to educate investors and make them informed about the mutual fund industry.

In February 2003, the UTI Act was repealed and UTI was stripped of its Special legal status as a

trust formed by an Act of Parliament. The primary objective behind this was to bring all mutal

fund players on the same level. UTI was re-organised into two parts: 1. The Specified

Undertaking, 2. The UTI Mutual Fund

Presently Unit Trust of India operates under the name of UTI Mutual Fund and its past schemes

(like US-64, Assured Return Schemes) are being gradually wound up. However, UTI Mutual

Fund is still the largest player in the industry. In 1999, there was a significant growth in

mobilisation of funds from investors and assets under management which is supported by the

following data:

Phase V. Growth and Consolidation - 2004 Onwards

The industry has also witnessed several mergers and acquisitions recently, examples of which are

acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund and

PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more international mutal fund

players have entered India like Fidelity, Franklin Templeton Mutual Fund etc. There were 29

funds as at the end of March 2006. This is a continuing phase of growth of the industry through

consolidation and entry of new international and private sector players.


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MUTUAL FUNDS: STRUCTURE IN INDIA

Mutual Funds in India follow a 3-tier structure. There is a Sponsor (the First tier), who thinks

of starting a mutual fund. The Sponsor approaches the Securities & Exchange Board of India

(SEBI), which is the market regulator and also the regulator for mutual funds. Not everyone can

start a mutual fund. SEBI checks whether the person is of integrity, whether he has enough

experience in the financial sector, his networth etc. Once SEBI is convinced, the sponsor creates

a Public Trust (the Second tier) as per the Indian Trusts Act,1882. Trusts have no legal identity

in India and cannot enter into contracts, hence the Trustees are the people authorized to act on

behalf of the Trust. Contracts are entered into in the name of the Trustees. Once the Trust is

created, it is registered with SEB after which this trust is known as the mutual fund. It is

important to understand the difference between the Sponsor and the Trust. They are two separate

entities. Sponsor is not the Trust; i.e. Sponsor is not the Mutual Fund. It is the Trust which is the

Mutual Fund. The Trustees role is not to manage the money. Their job is only to see, whether the

money is being managed as per stated objectives. Trustees may be seen as the internal regulators

of a mutual fund.


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CHAPTER-3

COMPANY PROFILE


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CENTRAL BANK OF INDIA

Established in 1911, Central Bank of India was the first Indian commercial bank which was

wholly owned and managed by Indians. The establishment of the Bank was the ultimate

realisation of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha

Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of

pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the

'property of the nation and the country's asset'. He also added that 'Central Bank of India

lives on people's faith and regards itself as the people's own bank'.

During the past 99 years of history the Bank has weathered many storms and faced many

challenges. The Bank could successfully transform every threat into business opportunity

and excelled over its peers in the Banking industry.

A number of innovative and unique banking activities have been launched by Central Bank

of India and a brief mention of some of its pioneering services are as under:

1921 Introduction to the Home Savings Safe Deposit Schemeto build saving/thrift habits

in all sections of the society.

1924 An Exclusive Ladies Department to cater to the Bank's women clientele.

1926 Safe Deposit Locker facility and Rupee Travellers' Cheques.

1929 Setting up of the Executor and Trustee Department.

1932 Deposit Insurance Benefit Scheme.

1962 Recurring Deposit Scheme.

Subsequently, even after the nationalisation of the Bank in the year 1969, Central Bank

continued to introduce a number of innovative banking services as under:

1976 The Merchant Banking Cell was established.


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1980 Centralcard, the credit card of the Bank was introduced.

1986 'Platinum Jubilee Money Back Deposit Scheme' was launched.

1989 The housing subsidiary Cent Bank Home Finance Ltd. was started with its

headquarters at Bhopal in Madhya Pradesh.

1994 Quick Cheque Collection Service (QCC) & Express Service was set up to enable

speedy collection of outstation cheques.

Further in line with the guidelines from Reserve Bank of India as also the Government of

India, Central Bank has been playing an increasingly active role in promoting the key thrust

areas of agriculture, small scale industries as also medium and large industries. The Bank

also introduced a number of Self Employment Schemes to promote employment among the

educated youth.

Among the Public SectorBanks, Central Bank of India can be truly described as an All

India Bank, due to distribution of its large network in 27 out of 28 States as also in 4 out of

7 Union Territories in India. Central Bank of India holds a very prominent place among the

Public Sector Banks on account of its network of 3563 branches and 195 extension

counters at various centres throughout the length and breadth of the country.

Customers' confidence in Central Bank of India's wide ranging services can very well be

judged from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC as also

almost all major corporate houses in the country.

Corporate Vision

To emerge as a strong, vibrant and pro-active Bank/Financial Super Market and to

positively contribute to the emerging needs of the economy through consistent

harmonization of human, financial and technological resources and effective risk control

systems.


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Corporate Mission

To transform the customer banking experience into a fruitful and enjoyable one.

To leverage technology for efficient and effective delivery of all banking services.

To have bouquet of product and services tailor-made to meet customers aspirations.

The pan-India spread of branches across all the state of the country will be utilized to

further the socio economic objective of the Government of India with emphasis on Financial

Inclusion.

SERVICES RENDERED BY THE CENTRAL BANK OF INDIA.

The various services and products rendered by the bank include:

DEPOSITS:

Money Multiplier Deposit Certificate (MMDC): In this the interest keeps adding to theprincipal amount giving you an added advantage to increase your deposits exponentially

Monthly/Quarterly Interest Deposit Receipt (MIDR/QIDR): The interest is addedmonthly/Quarterly. An account can be opened for duration of 12 months to 120 months

with a minimum balance of Rs. 5000.

Cent Uttam Scheme: This deposit scheme by Central Bank offers you easy liquiditywith high returns that allows you to withdraw a part of the deposit whenever required.

Other Special Savings Accounts: These include Senior Citizens Savings Account, TaxSaving Deposit Schemes, Smart Deposit Schemes, Super Deposit Schemes and Special

Cent Bachat Khata.


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CARDS:

Centralcard Electronics: This Central Bank Credit Card is accepted in all master cardelectronic terminals in India and Nepal. This can be both domestic and global.

Centralcard: This card offers you the freedom of shopping at all the merchantestablishments in the country. The internationally acceptable one is the International

Central Master Card.

Debit Card: Its the most safe and secure way of accessing your account globally 24-hours a day at over 5.3 million merchant establishments and 6 million ATM's.

Visa Platinum Card:Central Bank of India is the first Indian Public sector bank tolaunch visa platinum card with the following features:

-Domestic and international acceptance.

-Global acceptance at more than 29 million merchant outlets and 1 million ATMs.

-High ended premium card with all features,value additions that a corporate and global

traveler expects.

-Age criteria for application is 21-65 years

-Income criteria above Rs.500000/ per annum.

-Availability of corporate card facility for limited companies.

y Cent Prepaid CardsThe Central Bank of India MasterCard is proud to present an array of prepaid cards to

meet the needs of today's consumer. For more information, log on

to www.centprepaid.cardbranch.com A prepaid card is not a credit card as no credit

facility is extended, nor is it a debit card as it is not linked to a bank account. Instead

MasterCard Prepaid requires funds to be loaded onto a card before the user is able to

make purchases with it. Prepaid cards can be used to make purchase wherever


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MasterCard is accepted, in stores, online and over the phone

y CentGift CardCentGift Card is an ideal gift for your near and dear ones giving them the freedom to

choose whatever they want as a gift.

Features:

1. The card can be loaded with any amount between Rs. 500 to Rs. 50,000.2. Accepted in stores, online and over the phone wherever MasterCard is accepted3. Check card balance online.4. Not reloadable - once the balance has been spent or the card expires, the card can be disposed

of.5. Can only be used in India.6. No ATM use

LOANS

Housing Loans Home Renovation Loan Computer Loan Personal Loan (Corporate and Non-Corporate) Education Loans Special Educational Loans Finance For Trade Car Loans Loans For Commercial Vehicles Agricultural Loans Personal Loans For Pensioners And Teachers


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OTHER SERVICES:

Traveler's Cheques: Issued in the denominations of Rs. 100, Rs. 500, Rs. 1000, Rs.2500, and Rs. 5000 at a nominal charge of Re.1 per Rs.100.

Gift Cheques: Available in denominations of Rs.11, Rs. 25, Rs. 51 and Rs. 101 free ocost and payable at any Central Bank of India branch.

Cash Management Services: These include collections that can be Central's Cent QCC,Local Cheque collection and bulk cheque collection services and payment products that

include Demand Drafts (DD), Dividend and Interest Warrants, Bank Telegraphic

Transfer (TT).

Cent Bill Pay: This facility by Central Bank allows you to pay your bills through theInternet. It is currently available in Mumbai and is soon going to be launched in NewDelhi, Pune, Ahmedabad, Bangalore, Chennai, Hyderabad and Kolkata branches.

Special Services: These include Insurance, Mutual Funds and Demat Account services.

INTERNATIONAL BANKING

NRI Banking: Special NRI Savings Accounts, facilities to NRI's Returning to India andForeign Exchange services along with Remittance Services are included in this

Other Specialized Services: These include Repatriable and Non-Repatriable servicesalong with facilities for importers and exporters.


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MAX NEW YORK LIFE INSURANCE

Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited, one of

India's leading multi-business corporations and New York Life International, the international arm of

New York Life, a Fortune 100 company. The company has positioned itself on the quality platform. In

line with its vision to be the most admired life insurance company in India, it has developed a strong

corporate governance model based on the core values of excellence, honesty, knowledge, caring,

integrity and teamwork.

Incorporated in 2000, Max New York Life started commercial operation in April 2001. In line with its

values of financial responsibility, Max New York Life has adopted prudent financial practices to

ensure safety of policyholder's funds. The Company's paid up capital as on 31 st August, 2010 is Rs

1,973 crore.

Max New York Life has multi-channel distribution spread across the country. Agency distribution is

the primary channel complemented by partnership distribution, bancassurance and dedicated

distribution for emerging markets. The Company places a lot of emphasis on its selection process for

agent advisors, which comprises four stages - screening, psychometric test, career seminar and final

interview. The agent advisors are trained in-house to ensure optimal control on quality of training.

Max New York Life has put in place a unique hub and spoke model of distribution to deepen our rural

penetration. This is the first time such a model has been put in place for rural marketing of insurance.

Max New York Life offers a suite of flexible products. It now has 25 products covering both life and

health insurance and 8 riders that can be customized to over 800 combinations enabling customers to

choose the policy that best fits their need. Besides this, the company offers 6 products and 7 riders in

group insurance business.

Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited., one

of India's leading multi-business corporations and New York Life International, the international

arm of New York Life, a Fortune 100 company . The company has positioned itself on the

quality platform.


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Max New York Life - Life Plan

Max New York Life Insurance offers a suite of flexible products. It now has 25 individual life

and health insurance products and 8 riders enabling customers to choose the policy that best fits

their need. Besides this, the company offers 6 products and 7 riders in group insurance business.

Max New York Life - Office Networks

Max New York Life Insurance has multi-channel distribution spread across the country. Agency

distribution is the primary channel complemented by partnership distribution, bancassurance,

alliance marketing and dedicated distribution for emerging markets. The Company places a lot of

emphasis on its selection process for agent advisors, which comprises four stages - screening,

psychometric test, career seminar and final interview. The agent advisors are trained in-house to

ensure optimal control on quality of training. The company currently has more than 71,000 agent

advisors at 676 offices across 389 cities. The company also has 50 tie-ups with banks, 30

partnership distribution relationships Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration. This is the first time such a model

has been put in place for rural marketing of insurance. The company has 139 offices dedicated to

rural areas.

Company Vision

To be the most admired life insurance company in India.

Axis Bank, the third-largest Indian private bank and Max New York Life Insurance, one of

Indias leading life insurance companies have forged a 10 year strategic relationship, a first of its

kind in bancassurance. Max New York Life Insurance has signed a corporate agency relationship

with the Axis Bank and provides customized life insurance solutions to customers via the banks

vast network.

Starts operations on May 3, 2010

Provide life insurance solutions to bank customers in 650 cities through more than 1,000 Axis

Bank branches


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To serve 20 lakh customers in 5 years

The tie up with Axis Bank will help strengthen Max New York Life Insurances strategy of

multi-channel distribution and presence across the nation. Axis Bank and Max New York Life

Insurance expect to garner an additional customer base of 20 lakh customers in the next 5 years.

SERVICES RENDERED BY MAX NEW YORK LIFE INSURANCE

In Max New York Life Insurance there are mainly two types of products :

Traditional products and ULIP products

Traditional includes endowment plans such as:

y Whole life(100 years coverage)y Life partner + ( 75 years)y Life Gains + (10-20 years coverage )y Life pay money bank

Whole Life Insurance

A Whole Life Policy provides benefits for as long as you lie and even beyond. In addition to

which it also builds a cash surrender value.

Whole Life Participating Policy: In a Whole Life Participating Policy, the basic amount insured

is guaranteed. In addition, this makes customers eligible for bonuses 2 years after their policy

comes into effect.

Whole Life Benefits

y Protection for life with a guaranteed death benefit.y

Customer policy acquires a cash surrender value after 3 years premiums have been paid.y Loan facility to fund unforeseen expenses, after your policy has acquired a cash surrender

value.

y A guaranteed and fixed premium throughout life allows customers to plan their financesbetter


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Max New York-Lifeline Healthy Family Plan

Benefits

y Complete family coverage-10 year term with comprehensive coverage of surgeriescovered for parents, spouse and no limit of children covered in the family

y Maximum critical illnesses covered-38 critical illness covered.y Cover even at the age of 65-maximum age entry of 65 so that your health is covered

when you need it the most

y No increase in renewal premium-5 year guarantee of premium ensures your premiumstays the same for five years even if claims are made

y Comprehensive expense coverage-Hospitalization, surgery, congenital surgical correctionand critical illnesses coverage

y .Easy claim process-claim on photocopies of bills

Life Gain Plus

Benefits

y Safety of investments: One do not have to worry about market fluctuationsy Surety of returnsy Inbuilt protection for terminal illnessy Offers flexibility and peace of mindy Double family securityy Choose bonus option as per our needy Enhanced protection

Life Partner Plus-Endowment to Age 5 Plan : A life insrance plan that offers protection for life,cash bonuses, and multiple options to utilize these cash bonuses to meet all our individual

requirements

Benefits

y On maturity guaranteed sum assured plus assured of paid up additions.


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y Livings Benefits: From age 61 to 75 of life insured, a guaranteed amount equal to 7.5%of the sum assured will be paid every year.

y On death of life insured :Sum assured plus assured of paid up additions, if any, is paid tothe nominee without deducting any living benefits that may have already been paid.

Additional Benefits

The company may declare bonuses from time to time, from the third policy year and

these will be paid out, based on our choice of bonus options.

ULIP products include Shubh Invest, Shiksha Plus 2

Shubh Invest is structured ideally for the first time entrants in equity linked policies and life

insurance products. It starts from very low entry premiums of Rs 15000 to Rs 24000. It offers an

in-built DD rider cover for enhanced and comprehensive protection.

Shiksha Plus 2 is one of-its-kind plan that ensures a secured and definite future for the child. It

focuses on the education of the children along with the co-curricular activities.

Health Plans include medicash + ,wellness +, safety net


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HDFC MUTUAL FUND

HDFC Mutual Fund is one of the largest mutual funds and well-established fund house in the

country with consistent and above average fund performance across categories since its

incorporation on December 10, 1999. While our past experience does make us a veteran, but

when it comes to investments, we have never believed that the experience is enough.

Our Investment Philosophy

The single most important factor that drives HDFC Mutual Fund is its belief to give the investor

the chance to profitably invest in the financial market, without constantly worrying about the

market swings. To realize this belief, HDFC Mutual Fund has set up the infrastructure required

to conduct all the fundamental research and back it up with effective analysis. Our strong

emphasis on managing and controlling portfolio risk avoids chasing the latest fads and trends.

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC)

HDFC was incorporated in 1977 as the first specialized Mortgage Company in India. HDFC

provides financial assistance to individuals, corporate and developers for the purchase or

construction of residential housing. It also provides property related services (e.g. property

identification, sales services and valuation), training and consultancy. Of these activities, housing

finance remains the dominant activity. HDFC has a client base of around 11 lac borrowers, 10

lac depositors, over 1.23 lac shareholders and 25,000 deposit agents, as at March 31, 2010.

HDFC had raised funds from international agencies such as the World Bank, IFC (Washington),

USAID, DEG, ADB and KfW, international syndicated loans, domestic term loans from banks

and insurance companies, bonds and deposits. HDFC has received the highest rating for its bonds

and deposits program for the fifteenth year in succession.

HDFC Standard Life Insurance Company Limited, promoted by HDFC was the first life

insurance company in the private sector to be granted a Certificate of Registration (on October

23, 2000) by the Insurance Regulatory and Development Authority to transact life insurance

business in India.

Website : www.hdfc.com


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STANDARD LIFE INVESTMENTS LIMITED

Standard Life Investments was launched as an investment management company in 1998. It is

the dedicated investment management company of the Standard Life group and is a wholly

owned subsidiary of Standard Life Investments (Holdings) Limited, which in turn is a whollyowned subsidiary of Standard Life plc.

With global assets under management of approximately US$221.2 billion as at March 31, 2010

Standard Life Investments Limited is one of the world's major investment companies, operating

in the UK, Canada, Hong Kong, China, Korea, Ireland and the USA, and is responsible for

investing money on behalf of five million retail and institutional clients worldwide.

The Standard Life Assurance Company was established in 1825 and has considerable experience

in global financial markets. The company was present in the Indian life insurance market from

1847 to 1938 when agencies were set up in Kolkata and Mumbai. The company re-entered the

Indian market in 1995, when an agreement was signed with HDFC to launch an insurance joint

venture.

In April 2006, the Board of The Standard Life Assurance Company recommended that it should

demutualise and Standard Life plc float on the London Stock Exchange. At a Special General

Meeting held in May voting members overwhelmingly voted in favor of this. The Court o

Session in Scotland approved this in June and Standard Life plc floated on the London Stock

Exchange on 10th July 2006.

In order to meet the different needs and risk profiles of its clients, Standard Life Investments

Limited manages a diverse portfolio covering all of the major markets world-wide, which

includes a range of private and public equities, government and company bonds, property

investments and various derivative instruments. The company's current holdings in UK equities

account for approximately 1.8% of the market capitalization of the London Stock Exchange.Website : www.standardlife.com

AMC

HDFC Asset Management Company Limited (AMC)


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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.

The present equity shareholding pattern of the AMC is as follows :

Particulars % of the paid up equity capital

Housing Development Finance Corporation Limited 60

Standard Life Investments Limited 40

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 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.


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SERVICES RENDERED BY HDFC MUTUAL FUND

A. EQUITY FUND

1.HDFC Mid-Cap Opportunities Fund

Investment Objective

To generate long-term capital appreciation from a portfolio that is substantially constituted of

equity and equity related securities of Small and Mid-Cap companies.

Basic Scheme Information

Nature of Scheme Open-ended equity scheme

The Scheme was initially launched as a 3 year close - ended

Equity Scheme with automatic conversion into an open -

ended scheme upon maturity. The Scheme was converted

into open-ended scheme on June 25, 2010 as per the

provisions of the Scheme Information Document (SID).

Inception Date June 25, 2007

Option/Plan Dividend Option, Growth Option. Dividend Option offers

Dividend Payout and Dividend Re-investment facility.

Entry Load

(purchase / additional purchase /

switch-in) (Other than

Systematic Investment Plan

(SIP)/ Systematic Transfer Plan

(STP))

NIL

(With effect from August 1, 2009)

.


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Exit Load

(as a % of the Applicable

NAV)

(Other than Systematic

Investment Plan (SIP)/

Systematic Transfer Plan (STP))

For purchase/switch-in made at the time of NFO: Nil.

For purchase/switch-in made on or afterJune 25, 2010:

In respect of each purchase / switch-in of units, an Exit Load

of 1.00% is payable if Units are redeemed / switched-out

within 1 year from the date of allotment.

No Exit Load is payable if Units are redeemed / switched-out

after 1 year from the date of allotment.

No Entry / Exit Load shall be levied on bonus units and

units allotted on dividend reinvestment.

Minimum Application Amount

(Other than Systematic

Investment Plan (SIP)/

Systematic Transfer Plan (STP))

For new investors: Rs.5000 and any amount thereafter.

For existing investors: Rs. 1000 and any amount thereafter.

Lock-In-Period Nil

Net Asset Value Periodicity Every Business Day.

Redemption Proceeds Normally despatched within 3 Business days.

Tax Benefits

(As per present Laws)

Current Expense Ratio (#)

(Effective Date 22nd May

2009)

On the first 100 crores average weekly net assets 2.50%

On the next 300 crores average weekly net assets 2.25%


On the balance of the assets 1.75%

(#) Any change in the expense ratio will be updated within two working days.


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2.HDFC Equity Fund

InvestmentObjective

The investment objective of the Scheme is to achieve capital appreciation.

BasicSchemeInformation

Nature of Scheme Open Ended Growth Scheme

Inception Date January 01, 1995

Option/Plan Dividend Option, Growth Option. The Dividend Option

offers Dividend Payout and Reinvestment Facility.

Entry Load


switch-in)

NIL


.

Exit Load


NAV)

In respect of each purchase / switching of units, an Exit Load


within 1 year from the date of allotment..

No Exit Load is payable if Units are redeemed / switched-out

after 1 year from the date of allotment.

Minimum Application Amount For new investors :Rs.5000 and any amount thereafter .

For existing investors : Rs. 1000 and any amount thereafter.

Lock-In-Period Nil


Redemption Proceeds Normally dispatched within 3 business Days

Tax Benefits



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2009)





3.HDFC Capital Builder Fund

InvestmentObjective

The Investment Objective of the Scheme is to achieve capital appreciation in the long term.


Nature of Scheme Open Ended Growth Scheme

Inception Date February 01, 1994

Option/Plan Dividend Option, Growth Option. The Dividend Option

offers Dividend Payout and Reinvestment Facility.

Entry Load


switch-in)

NIL


.

Exit Load


NAV)

In respect of each purchase / switching of units, an Exit Load


within 1 year from the date of allotment..

No Exit Load is payable if Units are redeemed / switched-outafter 1 year from the date of allotment.

Minimum Application Amount For new investors :Rs.5000 and any amount thereafter.



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Lock-In-Period Nil


Redemption Proceeds Normally dispatched within 3 business Days

Tax Benefits


Please click for details



2009)





B.CHILDRENS FUND

1.HDFC Children's Gift Fund - Savings Plan

InvestmentObjective

The primary objective of the Scheme is to generate long term capital appreciation. However,

there can be no assurance that the investment objective of the Scheme / Plans will be achieved.


Nature of Scheme Open Ended Balanced Scheme

Inception Date March 02, 2001

Option/Plan Growth Plan. (Debt Oriented)

Entry Load


switch-in)

NIL


.

Exit Load


For Units subject to Lock-in Period: NIL

For Units not subject to Lock-in Period :


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NAV) 3% if the Units are redeemed / switched-out within one year

from the date of allotment,

2% if the Units are redeemed / switched-out between the first

and second year of the date of allotment,

1% if Units are redeemed /switched-out between the second

and third year of the date of allotment,

Nil if the Units are redeemed / switched -out after third year

from the date of allotment.

No Exit Load shall be levied on bonus units and units

allotted on dividend reinvestment.

Minimum Application Amount For new investors :Rs.5000 and any amount thereafter.


Lock-In-Period If opted: Until the Unit Holder (being the beneficiary child)

attains the age of 18 years or until completion of 3 years

from date of allotment , whichever is later


Redemption Proceeds Normally dispatched within 3 Business days(subject to

completion of Lock-in period. If opted)

Tax Benefits





2009)





C.FIXED MATURITY PLAN

1.HDFC FMP 370D August 2008


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InvestmentObjective

The objective of the Plans under the Scheme is to generate regular income through investments

in Debt / Money Market Instruments and Government Securities.


Nature of Scheme Close Ended Income Scheme

Inception Date 7-Aug-08

Closing Date 18-Aug-08

Option/Plan Retail Plan - Growth option, Wholesale Plan - Growth

option. Wholesale and Retail Plan with Dividend options.

Dividend Option offers Quarterly Dividend Option and

Normal Dividend Option with Payout facility only.

Entry Load


NAV)

(Direct Applications and Applications routed through any

Distributor / Agent / Broker): Nil

Exit Load


NAV)

In respect of each purchase / switch-in of Units, an Exit Load


before maturity.

No exit load is payable on redemption on maturity of

respective Plan.

Minimum Application Amount (Retail Plan): Rs.5000 and in multiples of Re.1 thereafter.

(Wholesale Plan): Rs. 1 Crore and in multiples of Re. 1

thereafter.

Lock-In-Period Nil


Redemption Proceeds Within 10 working days.


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Tax Benefits




(Effective Date 1st June 2009)

Regular Plan - 2.22%

Wholesale Plan - 1.30%


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CHAPTER -4

MARKETING OF FINANCIAL SERVICES OF CENTRAL BANK OF INDIA.

The bank promote its products and services through advertisements ,direct contact of customers

through door to door delivery,conducting credit campsand propogating through print

media,visual media.etc.

According to the latest report the bank had succeded in promoting its services through various

forms:

y Agriculture-The bank continued to accelerate the flow of credit to agriculture and alliedactivities during the year.The total agricultural advances rose by about 30% compared tolast year.

y Micro,small and medium enterprises:Advances to the MSME sector have grownsignificantly by 59.72% in 2010 as compared to last year.This growth rate is also on

account of inclusion of retail trade portfolio in MSME sector.

y Micro Finance:Micro finance has been identified as a Thrust area ,which is playing avital role in financial inclusion.The bank has taken active role in this segment and

adopted liberalized approach.During the year the bank has issued 2.33 lakh Kisan credit

cards with total sanctioned limit of Rs.1639 crore.The bank introduced a new card to the

farmers to meet all their recurring expenditure titled central kisan gold card which is

well received by our farm customers.

y Self Help Groups(SHGs)-During the year ,17245 groups were formed and 15685 groupswere credit linked with total sanctioned credit limit of Rs.158 crore.Since inception the

bank has credit linked 78716 groups with outstanding balance of Rs.564 crore.

y Financial Inclusion:Under 100% financial inclusion through branch banking,the bankhas completed 100% financial inclusion in over 14,047 villages out of 18,972 villages

allotted,achieving 74% coverage.The bank also opened 34.08 lacs .No frill accounts

during the year.


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y Derivatives:The bank has taken iniatives in introducing derivative products such asinterest rate future, interest rate swap,overnight indexed swap,currency futures etc which

are plain vanilla products.

y Cards:Bank has launched prepaid cent-gift cards in 2009 and has got license for issuanceof prepaid travel ncards in foreign currency also.

y Mutual Funds:The bank has a cross selling arrangement with seven top funds like UTImutual fund,tata mutual fund,franklin templeton investments,ICICI prudential,reliance

mutual fund,etc.During the year the bank earned commission income of Rs.71 lacs from

the sale of mutual funds through 450 identified branches.

y Demat services: Demat sevices are being provided to 22694 account holders through 120identified branches under central Depository services india lts.(CDSL).The bank is

providing free SMS facility to its customers.

y Core banking solution:As per plan envisaged,implementation of core banking solutionhas started under phase-2 for coverage of 100% branches under CBS platform by

2010.Under CBS phase 2 ,321 branches have up to march 2010 taking the total number

of branches covered under CBS to 1533.

y Wide Area Network:The bank has commenced establishment of MPLS connectivity forexisting as well as additional branches proposed for CBS implementation.The other

various IT related services provided by the bank are Internet banking,SMS

banking,Mobile banking,phone banking.

y Website:The banks website has been revamped to give a new look with addedfeatures.This has facilitated better interaction between the bank and its customers by

providing information on numerous products/services of the bank as well as providing

information pertaining to the bank (branch/ATM/RTGS/NEFT/etc.locations).Online

applications can also be made by customers for loans,jobs,etc.The site is secured from

any sort of hacking or intrusions by use of firewall/anti virus protection.


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MARKETING OF FINANCIAL SERVICES OF MAX NEW YORK LIFE INSURANCE

The insurance firm has its on website from were we can collect data about the products. They

also promote their products and services through advertisements in media. They market their

products mainly through:

- Agency channel

- Alternative channels.

Agency channel is under the control of sales managers. They recruit the agents and provide 14

days training, in which 7 days training are given by the organization and the rest 7 days training

are given by the IRDA centers. And it is followed by the IRDA exam.

The various alternative channels in which the company have a tie-up is as follows:

y Amway named as Amsure.y Peerless groupy Pearls group named as Nirmal chaya.y Banks like Axis bank and Yes banky Various stock broking firms like KARVY, India infoline, JRG securities etc.

DEALINGS WITH THE CUSTOMERS

To help the customers to use their account or service by providing the customers regular

appropriate updates keeping the customers informed about the changes in the bonus rate,

policies, terms or conditions. There is Personal Insurance Plan which ensure that customers get a

year-on-year indicative summary of all the benefits of the policy, even before one buy it. There is

customer helpline and website that allows them to reach customers conveniently


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MARKETING OF FINANCIAL SERVICES BY HDFC MUTUAL FUND

We mainly inform customers through advertisements, executives who are mainly financial

consultants, corporate agencies like muthoot, banking channel etc

The Direct Channels:

In the direct channel, customers invest in the schemes directly through AMC. In this channel

most investors can invest through websites, or receive information through telephonic services

provided by the company In most cases , We does not provide any investment advice, so these

investors have to carry out their own research and select schemes themselves. However we

provide several tools to investors who invest through this channel. This includes monthly a/c

statement, processing of transaction, and maintenance of records...

The banking channel:

We also market our product through the banks that is we have tie up with the banks. As the

banks have large customer base which helps as an important channel for marketing our products.

We also feel that the banking channel is likely to develop as the most vital distribution channel

for fund companies there are several reasons for the same. Customers remain invested in banks

for long periods of time and therefore banks maintain a relationship of trust with their customers.

Customers are rely on advice provided to them by bankers as they are always on the look out for

better investment avenues. Managers are guiding to customers about various funds.

An additional advantage that banks provide is that the concerned customer becomes a permanent

contact of the banks and therefore can be reached during launch of (new fund offer) NFO or new

schemes any time in the future.

The retail channel:

We also Approach the distribution companies where customer can deal directly with a sub

broker belonging to a distribution company, instead of taking trouble of dealing with several


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agents. These Distribution companies sell our schemes and brokerage is paid depending on the

number of clients they have attracted. The retail channel offer the benefits of specialist

knowledge and established client contact .

HOW MUTUAL FUND DEAL WITH CUSTOMER COMPLAINTS

Investors would find the name of contact person in the offer document of the mutual fund

scheme whom they may approach in case of any query, complaints or grievances. Trustees of a

mutual fund monitor the activities of the mutual fund. The names of the directors of asset

management company and trustees are also given in the offer documents. Investors can

approach the concerned Mutual Fund / Investor Service Centre of the Mutual Fund with their

complaints. There may be changes from time to time in a mutual fund. We inform any material

changes to our unit holders. Apart from it, many we send quarterly newsletters to our investors.


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CHAPTER-5

FINDINGS:

FINDINGS OF CENTRAL BANK OF INDIA.

y Central Bank Of India is one of the leading Banks in Kerala.They are the pioneers inintroducing many new services.

y The bank has unique products like central kisan gold card and visa platinum card.y The bank provides services based on the needs and requirement of the customers.y The bank takes special care in handling customer complaints.

FINDINGS OF MAX NEW YORK LIFE INSURANCE

y Max New York Life Insurance is one of the trusted insurance companies across theworld. It has global expertise.

y It has unmatched financial strength, integrity and responsibilityy It is very flexible , with MyOptions they offer more than 400 product combinations from

which we can choose, which allows us to customize a policy to our unique need.

y Transparency is the bedrock of their business. With the Personal Insurance Plan theyensure that customers get a year-on-year indicative summary of all the benefits of the

policy, even before one buy it.

y Offer services nationally through their network of offices in 73 cities across India, theyhave customer helpline and website that allows them to reach customers conveniently.

y They offer the best-trained agent advisors in the business. They are in apposition toassess our needs and offer the best life insurance solutions.


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FINDINGS OF HDFC MUTUAL FUND

y HDFC Mutual Fund is one of the largest mutual funds and well-established fund house inthe country.

yCustomers are informed about the new arrival schemes and products through telecallers.

y Benefits mainly they provide include : Professional management ,DiversificationConvenient Administration , Return potential , Low costs , Liquidity ,Transparency

Flexibility ,Choice of schemes.

y They are customer centric and convince their customers through developing anddelivering quality and timely services and products.

CONCLUSION

Central Bank Of India is one of the leading bank in the banking sector.It has introduced many

differenciated` products recently. Among the Public SectorBanks, Central Bank of India can be

truly described as an All India Bank, due to distribution of its large network in 27 out of 28

States as also in 4 out of 7 Union Territories in India. Central Bank of India holds a very

prominent place among the Public SectorBanks on account of its network at various centres

throughout the length and breadth of the country.

Max New York Life Insurance one of the largest player in insurance sector. It has the 5 th

position in the market share. They offer more than 400 product combinations from which the

customers can choose. The most moving products has been Shiksha plus 2,shubh invest, life

partner plus.Offer services nationally through their network of offices in 73 cities across India,

they have customer helpline and website that allows them to reach customers conveniently.

Hdfc mutual fund is one of the largest and leading mutual fund houses among other private

players. They believe that, by giving the investor long-term benefits, they are giving value to

them thereby they are fully convinced. So they constantly review the markets for new trends, to


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identify new growth sectors and share this knowledge with their investors in the form of product

offerings. They have come up with various products across asset and risk categories to enable

investors to invest in line with their investment objectives and risk taking capacity. A Mutual

Fund is the most suitable investment for the common man as it offers an opportunity to invest in

a diversified, professionally managed basket of securities at a relatively low cost.

BIBLIOGRAPHY:

y www.google.comy www.wikipedia.comy Interview with the manager


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ANNEXURE 1

CENTRAL BANK OF INDIA.

1.What differentiates you from other banking companies?

A.We are the pioneers in introducing debit cards,credit cards and home safe savings.

2.What are the marketing strategies adopted for selling the products?

A.we propogate through advertisements, direct contact of customers through door to door

selling,conducting credit camps,propogating through print media,visual media etc.

3.What are the various products and services that you offer?

A.The various products and services offered by us are as follows:

y Depositsy Senior Citizen Deposit Schemey CENT Tax Saving Deposity Recurring Deposit with Personal Accident Covery Gold Coins Schemey

Cent Personal Gold Loany Cent Mortgagey Direct Housing Finance Schemey Cent Kisan Gold Cardy Cent Home Loan Plusy Personal Loan to Teachersy Personal Loan Schemey Loan to Students of IIMSy Cent Vehicley Loans to Pensioners Drawing Pensiony Cent Schooly Educational Loany Repatriable Scheme


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y NRI Accountsy Demat Accounty MoneyGram/ExpressMoneyy Foreign Exchange Remittancey BIC Branch Swift Codey Facilities to NRIs Returning to Indiay MasterCard Prepaid Gift Cardy Visa Platinum Cardy Bank Visa Gold Cardy Debit/ATM Cardy Central Card Electronicy Mutual Fundsy Depository Servicesy Cash Management Servicesy CENT BillPayy Online Bill Paymenty Central Excise and Service Tax Paymentsy Collection of Direct Taxesy GDFT Online E-payment, etc.

4.What are the challenges that you have faced since its inception?

A.We had faced challenges like :

Reduction in deposit rates

Lack of product expertise.

Lack of distribution expertise.

Limited use of Technology.


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5.How do you satisfy your customers?Do you provide schemes according to the needs of the

customers?

A.we are focusing on customised selling inorder to satisfy our customers.We provide services

to the customers according to the needs required by them.Also they provide prompt service

through email,renewal deposit etc.

6.Who all are your competitors and how you withstand them?

A.Our competitors are nearest bankers,other financial institutions,Non Banking Finance

Companies,other credit providing state agencies like KSFE,KFC,KSIDC etc.

7.How do you handle customers and employee complaints?

A. We enables the troubled customers of the bank to get assistance when they face somegrievances. It is quite natural for many of the customers to face some kind of problems when

trying to avail the services and products of the bank. To help these troubled customers, we offers

highly qualified customer service representatives who are well aware of each and every feature

of the products. By talking with these representatives, troubled customers could find the

solutions for all their queries and grievances

We offers different contact numbers depending on the type of the grievances. For instance, if a

customer faces several problems related to debit/ATM Card, he or she can call at 1800-22-1622

to get the essential assistance. It is a toll free number and customers will not be charged for

making the calls.

From the employees side,they are fully satisfied with their working environment.

8.which is your target group?

A.We are focusing on the entire service areas including middle class,lower class and upper class.

9.What is your position as of now in terms of market share?

A.we secure 4th position holding a market share of 16% in the banking sector.


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10.Is there any new schemes that you are planning to introduce?

A.We have not yet planned of any new schemes to introduce.

11.Which is the most moving product and its features?

A.Some of our fastest moving products are agricultural demand loan(gold loan),educational

loan,housing loan,trading advances,ATMs,credit cards.

12.How do you attract and retain customers?

A.We retain our customers through brand value,quality selling,quality products,customized

solutions,professional approach etc.


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ANNEXURE 2.

MAX NEWYORK LIFE INSURANCE.

1.How do you market your products?

A.We are marketing our products through two different channels namely:

- Agency channel

- Alternative channels.

Agency channel is under the control of sales managers.They recruit the agents and provide 14

days training,in which 7 days training are given by the organization and the rest 7 days training

are given by the IRDA centers.And it is followed by the IRDA exam.

The various alternative channels in which the company have a tie-up is as follows:

y Amway named as Amsure.y Peerless groupy Pearls group named as Nirmal chaya.y Banks like Axis bank and Yes banky Various stock broking firms like KARVY,India infoline,JRG securities etc.

2.What differentiates you from other insurance companies ?

A.Ours is one of the ISO certified insurance company.We are following a systematic method in

performing our duties.The main features of ours is:

- customized based solutions.

-Advice based insurance sales.

-Commitment to training.

-Superior customer exposure.

-Open ethical and performance based culture.

-High financial strength.

.


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A.Life coverage is the service that we provide.The various products that we offer are classified

into two:

Traditional products :

The various traditional products are endowment plan and term plan.The various traditional plans

are:

Wholelife which has a 100 years coverage.

Lifepartner+(75 years)

Lifegain+(10-20 years coverage)

Life pay moneyback.

ULIP products:

Shubha invest is a basic investment plan

The various health plans are Medicash+,Wellness+,safety net.

shiksha+2 which comes under child plans.

Pure insurance plan has a product called Platinum protect.


A.We have not faced any serious challenges except industry related problems.The ULP chargingpercentage has reduced that could yield minimum return to the organization.


customers?

A.We provide:

- customised selling based on the need analysis.

- High technological services.

- Ethical based selling according to the rules and regulations followed in the organization.


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A.Our major competitors are LIC,ICICI prudential,SBI life insurance,ING vyasa,Metlife,HDFCstandard life,TATA AIG and Bajaj alliance.According to a survey conducted in December2008,our company was rewarded for the Best Fund Management.Most ULIPs of Max

NewYork life Insurance has beaten the benchmark which says a lot about its fundmanagement.The policies were also quite a hit with outlook money ULIPs ranking and emergedas the top performer in three of the four categories,proving their mettle in equity as well as debtfunds.

We also provide qualified and efficient training.we recruit agents through Five point evaluationsystemwhich is a unique feature of our recruitment process.We have changed our recruitmentmethod from a hybrid model to a qualitative model.

7.How do you handle customers and employee complaints?

A.Most of the complaints are raised due to the misunderstanding by the customers side regardingthe selling of various policies.If any misrepresentation is made ,the company will take the wholeresponsibility in handling it.

We usually receive less complaints from the employees side.We won second position for the bestemployee friendly company in the insurance industry.

8.How do you create awareness about various products and how would you convince them?

A.To create awareness about our products,we focus on Relationship based selling.i.e, most ofthe customers approach us from their relatives ,who are already the policy holders of our

company.

9.which is your target group?

A.We focus mainly on Middle and above income group people for our company.

10.What is your position as of now in terms of market share?

A.We secure a fifth position attaining the market share of 30% hold in the industry.

11.Is there any new schemes that you are planning to introduce?

A.Recently,We have not yet decided to introduce any new schemes .


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12.Which is the most moving product and its features?

A.Some of the fast moving products of our company are:

1.Shiksha plus 2-This is a child plan.This product not only focuses on the education of the

children but also focuses on their co-curricular activities.

2.Shubha invest-This is a basic investment plan.Here the ULIP offers the facility of systematictransfer planning and starts from very low entry premiums of Rs.15,000 to Rs.24,000.It offers anin-built DD rider cover for enhanced and comprehensive protection.

3.Lifepartner plus(Limited pay endowment to age 75)-This is a life insurance plan that offers usprotection for life,cash bonuses,and multiple options to utilize these cash bonuses to meet all ourindividual requirements.

4.Life gain plus-Some of its features are safety of investments,guaranteed returns,limited

payment option,increasing death benefit,flexible bonus options.etc.

13.How do you attract and retain customers?

A.We retain and attract customers through:

-Our brand value.

-Offering quality service.

-Offering quality products.

-Professional selling.

-Customised solutions.

-Proffessional approach towards the customers.


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ANNEXURE 3

HDFC MUTUAL FUND.

1.What differentiates you from other mutual fund companies?

A.. Our Customer centric model. We ask them what they are looking at and we give advices as to

how much they can make out of their valuable investments. Our products are designed to

make sure it suits to every segment of investors. We have got many successful products

and our fund managers work round the clock to ensure that our investors get what they

expected from us.

2.What are the marketing strategies adopted for selling the products?

A.we propagate through advertisements, executives who are mainly financial

consultants,corporate agencies like muthoot,banking channeletc.


A.The various products and services offered by us are as follows:

There are 28 open-ended schemes of the Mutual Fund that consist of:

y HDFC Growth Fund,y HDFC Equity Fund,y HDFC Top 200 Fund,y HDFC Capital Builder Fund,y HDFC Core & Satellite Fund,y HDFC Premier Multi-Cap Fund,y HDFC Index Fund,y HDFC Long Term Advantage Fund,y HDFC TaxSaver,y HDFC Arbitrage Fund,y HDFC Mid-Cap Opportunities Fund,


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y HDFC Balanced Fund,y HDFC Prudence Fund,y HDFC Childrens Gift Fund,y HDFC Gold Exchange Traded Fund,y HDFC MF Monthly Income Plan,y HDFC Multiple Yield Fund,y HDFC Multiple Yield Fund- Plan 2005,y HDFC Income Fund,y HDFC High Interest Fund,y HDFC Short Term Plan,y HDFC Short Term Opportunities Fund,y HDFC Medium Term Opportunities Fund,y HDFC Gilt Fundy HDFC Floating Rate Income Fund ,y HDFC Liquid Fund, HDFC Cash Management Fundy HDFC Quarterly Interval Fund.

There are 7 closed ended Schemes of the HDFC Mutual Fund consisting of :

y HDFC Long Term Equity Fundy HDFC Infrastructure Fundy HDFC Fixed Maturity Plans - Series XIy HDFC Fixed Maturity Plans - Series XIIy Fixed Maturity Plans - Series XIVy HDFC Fixed Maturity Plans - Series XVy HDFC Fixed Maturity Plans - Series XVII.



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A. Gaining customer loyalty was a major problem and also creating brand name. As Mutual

Fund schemes are competitive like never before the challenge is cut through all these

competition. Now as the market has just been through a financial crunch we had a tough time in

2008-2009. As the market is becoming stable we have restructures our investment portfolios to

gain maximum.


customers?

A.we are focusing on customised selling inorder to satisfy our customers.We provide services

to the customers according to the needs required by them.Also they provide prompt service

through email,etc


A.Our competitors are Birla Sun Life Mutual Fund,Franklin Templeton Mutual Fund,Sundaram

BNP Paribas Mutual Fund,Kotak Mutual Fund,DSP BlackRock Mutual Fund,SBI Mutual Fund

and Tata Mutual Fund.

7.How do you handle customers and employee com

MFS prjt report

Documents