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 Archana0 aculty 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
Rc [ackground
Rc Objectives of the study
Rc Scope of the study
Rc Methodology
Chapter-2
Industry Analysis- [anking, Insurance, Mutual Fund
Chapter-3
Company Analysis
Rc Services Rendered by the Central bank

Rc Services Rendered by the Max New York Life Insurance Insurance Company
Rc Services Rendered by the selected HDFC Mutual Fund
Chapter-4
Marketing of Financial Services
Chapter-5
Findings & Conclusion
[ibliography
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CHAPTER-1
Background
The various companies which we have chosen in different sectors are Central [ank Of
India,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 [ank was the ultimate
realisation of the dream of Sir Sorabji Pochkhanawala, founder of the [ank. Sir Pherozesha
Mehta was the first Chairman of a truly 'Swadeshi [ank'. In fact, such was the extent of pride felt
by Sir Sorabji Pochkhanawala that he proclaimed Central [ank of India as the 'property of the
nation and the country's asset'.. During the past 99 years of history the [ank has weathered many
storms and faced many challenges. The [ank could successfully transform every threat into
business opportunity and excelled over its peers in the [anking industry.The bank is celebrating
its centenary year in 2011.Central [ank Of India is the pioneers in introducing debit cards,credit
cards,home safe savings etc.
Central [ank 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 world¶s 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 [oard of Directors of HDFC Trustee company Limited
consists of the following eminent persons:c c Mr. Anil Kumar Hirjee, Mr. Vincent JosephO¶[rien,
Mr.Shishir.K.Diwanjic,Mr.RanjanSanghi,Mr.V.SrinivasaRangan c
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HDFC Asset Management Company Limited was awarded NDTV Profit [usiness 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 [usiness 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
Rc To study about the services and products offered by Central bank, HDFC Mutual fund
and Max New York Life Insurance
Rc To collect information regarding present banking sector ,mutual fund and insurance
sector.
Rc To know about the marketing strategies adopted by the bank,insurance company and
mutual fund.
Rc 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 [.C. [anks 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 [C in [abylon that
were made by temple priests/monks to merchants. The [anking 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 [anking Industry that saw it
transformed. [anks 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 [ank in 1839, but it failed in 1848 as a
consequence of the economic crisis of 1848-49. The Allahabad [ank, established in 1865 and
still functioning today, is the oldest Joint Stock bank in India.(Joint Stock [ank: 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 [ank 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 [ank of Simla.
[anking in India originated in the last decades of the 18th century. The first banks were The
General [ank of India which started in 1786, and the [ank of Hindustan, both of which are now
defunct. The oldest bank in existence in India is the State [ank of India, which originated in the
[ank of Calcutta in June 1806, which almost immediately became the [ank of [engal. This was
one of the three presidency banks, the other two being the [ank of [ombay and the [ank of
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Madras, all three of which were established under charters from the [ritish 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 [ank of India, which, upon India's
independence, became the State [ank of India.
The [anking 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 [anking Industry has been more qualitative than quantitative and it is
expected to remain the same in the coming years. [ased 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. [ank 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 [anking 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
[anking Industry in India is going through a transitional phase.
The Public Sector [anks (PS[s), which are the base of the [anking 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 Sector [anks 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 [anking Industry.
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The banking sector is one of the leading sector.
Section 5(3)(b) of the [anking Regulation Act,1949 defines banking as¶theaccepting ,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 otherwise¶The banking company can be started only with the
approval of R[I.
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
[oard of Directors have increased substantially.The role of R[I 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 equitable
transfer 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.c Life Insurance - Insurance guaranteeing a specific sum of money to a designated

beneficiary upon the death of the insured, or to the insured if he or she lives beyond a
certain age.
2.c Health Insurance - Insurance against expenses incurred through illness of the insured.
3.c Liability Insurance - This insures property such as automobiles, property and
professional/business mishaps.
Challenges facing Insurance Industry
Rc Threat of New Entrants: The insurance industry has been budding with new entrants every
other 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.
Rc Power of Suppliers: Those who are supplying the capital are not that big a threat. For
instance, 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.
Rc Power of [uyers: No individual is a big threat to the insurance industry and big corporate
houses have a lot more negotiating capability with the insurance companies. [ig corporate
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clients like airlines and pharmaceutical companies pay millions of dollars every year in
premiums.
Rc 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:
'c Protection policies - designed to provide a benefit in the event of specified event, typically a
lump sum payment. A common form of this design is term insurance.
'c Investment policies - where the main objective is to facilitate the growth of capital by regular
or single premiums. Common forms (in the US anyway) are whole life, universal
life 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 who
invests 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. [uying shares directly from the market is one way of investing.
[ut 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 due
analysis and research. The investor need not bother with researching hundreds of stocks. It leaves
it to the mutual fund and it¶s professional fund management team. Another reason why investors
prefer mutual funds is because mutual funds offer diversification. An investor¶s 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. [y 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 [ogle, 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 [ank 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 [ank of India and it continued to operate
under the regulatory control of the R[I until the two were de-linked in 1978 and the entire
control was tranferred in the hands of Industrial Development [ank of India (ID[I). 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. [y 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, S[I Mutual Fund from the State [ank of India
became the first non-UTI mutual fund in India. S[I Mutual Fund was later followed by Canbank
Mutual Fund, LIC Mutual Fund, Indian [ank Muatual Fund, [ank of India Mutual Fund, GIC
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Mutual Fund and PN[ Mutual Fund. [y 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.
Assets Under Mobilisation as % of gross

1992-93 Amount Mobilised
Management 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 SE[I (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SE[I (Mutual
Fund) Regulations 1996. [y 1994-95, about 11 private sector funds had launched their schemes.
Phase IV. Growth and SE[I Regulation - 1996-2004

The mutual fund industry witnessed robust growth and stricter regulation from the
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SE[I 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 SE[I and the Government offered tax benefits to the
investors in order to encourage them. SE[I (Mutual Funds) Regulations, 1996 was introduced by
SE[I that set uniform standards for all mutual funds in India. The Union [udget 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 SE[I 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 [irla Sun Life, Sun F&C Mutual Fund and
PN[ 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 [oard of India
(SE[I), which is the market regulator and also the regulator for mutual funds. Not everyone can
start a mutual fund. SE[I checks whether the person is of integrity, whether he has enough
experience in the financial sector, his networth etc. Once SE[I 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 SE[ 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 [ank of India was the first Indian commercial bank which was
wholly owned and managed by Indians. The establishment of the [ank was the ultimate
realisation of the dream of Sir Sorabji Pochkhanawala, founder of the [ank. Sir Pherozesha
Mehta was the first Chairman of a truly 'Swadeshi [ank'. In fact, such was the extent of
pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central [ank of India as the
'property of the nation and the country's asset'. He also added that 'Central [ank of India
lives on people's faith and regards itself as the people's own bank'.
During the past 99 years of history the [ank has weathered many storms and faced many
challenges. The [ank could successfully transform every threat into business opportunity
and excelled over its peers in the [anking industry.
A number of innovative and unique banking activities have been launched by Central [ank
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 [ank's women clientele.
1926 Safe Deposit Locker facility and Rupee Travellers' Cheques.
1929 Setting up of the Executor and Trustee Department.
1932 Deposit Insurance [enefit Scheme.
1962 Recurring Deposit Scheme.
Subsequently, even after the nationalisation of the [ank in the year 1969, Central [ank
continued to introduce a number of innovative banking services as under:
1976 The Merchant [anking Cell was established.

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1980 Centralcard, the credit card of the [ank was introduced.

1986 'Platinum Jubilee Money [ack Deposit Scheme' was launched.
1989 The housing subsidiary Cent [ank Home Finance Ltd. was started with its
headquarters at [hopal 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 [ank of India as also the Government of
India, Central [ank 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 [ank
also introduced a number of Self Employment Schemes to promote employment among the
educated youth.
Among the Public Sector [anks, Central [ank of India can be truly described as an All
India [ank, 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 [ank of India holds a very prominent place among the
Public Sector [anks 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 [ank of India's wide ranging services can very well be
judged from the list of major corporate clients such as ICICI, ID[I, UTI, LIC, HDFC as also
almost all major corporate houses in the country.
Corporate Vision
To emerge as a strong, vibrant and pro-active [ank/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
Ƈ To transform the customer banking experience into a fruitful and enjoyable one.
Ƈ To leverage technology for efficient and effective delivery of all banking services.
Ƈ To have bouquet of product and services tailor-made to meet customers aspirations.
Ƈ 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:
'c Money Multiplier Deposit Certificate (MMDC): In this the interest keeps adding to the
principal amount giving you an added advantage to increase your deposits exponentially
'c Monthly/Quarterly Interest Deposit Receipt (MIDR/QIDR): The interest is added
monthly/Quarterly. An account can be opened for duration of 12 months to 120 months
with a minimum balance of Rs. 5000.
'c Cent Uttam Scheme: This deposit scheme by Central [ank offers you easy liquidity
with high returns that allows you to withdraw a part of the deposit whenever required.
'c Other Special Savings Accounts: These include Senior Citizens Savings Account, Tax
Saving Deposit Schemes, Smart Deposit Schemes, Super Deposit Schemes and Special
Cent [achat Khata.
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CARDS:
'c Centralcard Electronics: This Central [ank Credit Card is accepted in all master card
electronic terminals in India and Nepal. This can be both domestic and global.
'c Centralcard: This card offers you the freedom of shopping at all the merchant
establishments in the country. The internationally acceptable one is the International
Central Master Card.
'c 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.
'c Visa Platinum Card:Central [ank of India is the first Indian Public sector bank to
launch 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.
Rc Cent Prepaid Cards
The Central [ank 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
Rc CentGift Card
CentGift 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.c The card can be loaded with any amount between Rs. 500 to Rs. 50,000.
2.c Accepted in stores, online and over the phone wherever MasterCard is accepted
3.c Check card balance online.
4.c Not reloadable - once the balance has been spent or the card expires, the card can be disposed
of.
5.c Can only be used in India.
6.c No ATM use
LOANS
'c Housing Loans

'c Home Renovation Loan
'c Computer Loan
'c Personal Loan (Corporate and Non-Corporate)
'c Education Loans
'c Special Educational Loans
'c Finance For Trade
'c Car Loans
'c Loans For Commercial Vehicles
'c Agricultural Loans
'c Personal Loans For Pensioners And Teachers
c c
OTHER SERVICES:
'c 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.
'c Gift Cheques: Available in denominations of Rs.11, Rs. 25, Rs. 51 and Rs. 101 free of
cost and payable at any Central [ank of India branch.
'c 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, [ank Telegraphic
Transfer (TT).
'c Cent Bill Pay: This facility by Central [ank allows you to pay your bills through the
Internet. It is currently available in Mumbai and is soon going to be launched in New
Delhi, Pune, Ahmedabad, [angalore, Chennai, Hyderabad and Kolkata branches.
'c Special Services: These include Insurance, Mutual Funds and Demat Account services.
INTERNATIONAL BANKING
'c NRI Banking: Special NRI Savings Accounts, facilities to NRI's Returning to India and
Foreign Exchange services along with Remittance Services are included in this
'c Other Specialized Services: These include Repatriable and Non-Repatriable services
along 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. [esides 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. [esides 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 [ank, the third-largest Indian private bank and Max New York Life Insurance, one of
India¶s 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 [ank and provides customized life insurance solutions to customers via the bank¶s
vast network.
Starts operations on May 3, 2010

Provide life insurance solutions to bank customers in 650 cities through more than 1,000 Axis
[ank branches
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To serve 20 lakh customers in 5 years
The tie up with Axis [ank will help strengthen Max New York Life Insurance¶s strategy of
multi-channel distribution and presence across the nation. Axis [ank 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:
Rc Whole life(100 years coverage)

Rc Life partner + ( 75 years)
Rc Life Gains + (10-20 years coverage )
Rc 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
Rc Protection for life with a guaranteed death benefit.

Rc Customer policy acquires a cash surrender value after 3 years¶ premiums have been paid.
Rc Loan facility to fund unforeseen expenses, after your policy has acquired a cash surrender
value.
Rc A guaranteed and fixed premium throughout life allows customers to plan their finances
better
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Max New York-Lifeline Healthy Family Plan
[enefits
Rc Complete family coverage-10 year term with comprehensive coverage of surgeries

covered for parents, spouse and no limit of children covered in the family
Rc Maximum critical illnesses covered-38 critical illness covered.
Rc Cover even at the age of 65-maximum age entry of 65 so that your health is covered
when you need it the most
Rc No increase in renewal premium-5 year guarantee of premium ensures your premium
stays the same for five years even if claims are made
Rc Comprehensive expense coverage-Hospitalization, surgery, congenital surgical correction
and critical illnesses coverage
Rc .Easy claim process-claim on photocopies of bills
Life Gain Plus
[enefits
Rc Safety of investments: One do not have to worry about market fluctuations

Rc Surety of returns
Rc Inbuilt protection for terminal illness
Rc Offers flexibility and peace of mind
Rc Double family security
Rc Choose bonus option as per our need
Rc 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
[enefits
Rc On maturity guaranteed sum assured plus assured of paid up additions.

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Rc Livings [enefits: From age 61 to 75 of life insured, a guaranteed amount equal to 7.5%
of the sum assured will be paid every year.
Rc On death of life insured :Sum assured plus assured of paid up additions, if any, is paid to
the nominee without deducting any living benefits that may have already been paid.
Additional [enefits
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 ³fads´ 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 [ank, IFC (Washington),
USAID, DEG, AD[ 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 wholly
owned 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 [oard 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 of
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 SE[I 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,
[ack 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
SE[I vide Registration No. - PM / INP000000506 dated December 21, 2009 to act as a Portfolio
Manager under the SE[I (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

c
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.
c
c n
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 NIL

(purchase / additional purchase / (With effect from August 1, 2009)
switch-in) (Other than
Systematic Investment Plan .
(SIP)/ Systematic Transfer Plan
(STP))
c c
Exit Load For purchase/switch-in made at the time of NFO: Nil.

(as a % of the Applicable
NAV) For purchase/switch-in made on or after June 25, 2010:
(Other than Systematic
c In respect of each purchase / switch-in of units, an Exit Load
Investment Plan (SIP)/
of 1.00% is payable if Units are redeemed / switched-out
Systematic Transfer Plan (STP))
within 1 year from the date of allotment.
c 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 For new investors: Rs.5000 and any amount thereafter.
(Other than Systematic For existing investors: Rs. 1000 and any amount thereafter.
Investment Plan (SIP)/
Systematic Transfer Plan (STP))
Lock-In-Period Nil
Net Asset Value Periodicity Every [usiness Day.
Redemption Proceeds Normally despatched within 3 [usiness days.
Tax Benefits
(As per present Laws)
Current Expense Ratio (#) On the first 100 crores average weekly net assets 2.50%
(Effective Date 22nd May On the next 300 crores average weekly net assets 2.25%
2009) On the next 300 crores average weekly net assets 2.00%
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

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

cc
c
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 NIL

switch-in)
.
Exit Loadc In respect of each purchase / switching of units, an Exit Load

(as a % of the Applicable of 1.00% is payable if Units are redeemed / switched-out
NAV) within 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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3.HDFC Capital [uilder Fund

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

cc
c
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 NIL

switch-in)
.
Exit Loadc In respect of each purchase / switching of units, an Exit Load

NAV) within 1 year from the date of allotment..
Minimum Application Amount For new investors :Rs.5000 and any amount thereafter.
c c
Lock-In-Period Nil
Redemption Proceeds Normally dispatched within 3 business Days
Tax Benefits Please click for details

[.CHILDRENS FUND
1.HDFC Children's Gift Fund - Savings Plan

c
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.

cc
c
Nature of Scheme Open Ended [alanced Scheme
Inception Date March 02, 2001
Option/Plan Growth Plan. (Debt Oriented)
Entry Load NIL

switch-in)
.
Exit Loadc For Units subject to Lock-in Period: NIL

(as a % of the Applicablec For Units not subject to Lock-in Period :
c c
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 [usiness days(subject to

completion of Lock-in period. If opted)

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.
[asicSchemeInformation
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 (Direct Applications and Applications routed through any

(as a % of the Applicable Distributor / Agent / [roker): Nil
NAV)
Exit Loadc In respect of each purchase / switch-in of Units, an Exit Load

NAV) before maturity.
c 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.

c c

Current Expense Ratio (#) Regular Plan - 2.22%

(Effective Date 1st June 2009) 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:
Rc Agriculture-The bank continued to accelerate the flow of credit to agriculture and allied
activities during the year.The total agricultural advances rose by about 30% compared to
last year.
Rc Micro,small and medium enterprises:Advances to the MSME sector have grown
significantly 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.
Rc Micro Finance:Micro finance has been identified as a µThrust area µ,which is playing a
vital 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.
Rc Self Help Groups(SHGs)-During the year ,17245 groups were formed and 15685 groups
were 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.
Rc Financial Inclusion:Under 100% financial inclusion through branch banking,the bank
has 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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Rc Derivatives:The bank has taken iniatives in introducing derivative products such as

interest rate future, interest rate swap,overnight indexed swap,currency futures etc which
are plain vanilla products.
Rc Cards:[ank has launched prepaid cent-gift cards in 2009 and has got license for issuance
of prepaid travel ncards in foreign currency also.
Rc Mutual Funds:The bank has a cross selling arrangement with seven top funds like UTI
mutual 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.
Rc Demat services: Demat sevices are being provided to 22694 account holders through 120
identified branches under central Depository services india lts.(CDSL).The bank is
providing free SMS facility to its customers.
Rc Core banking solution:As per plan envisaged,implementation of core banking solution
has started under phase-2 for coverage of 100% branches under C[S platform by
2010.Under C[S phase 2 ,321 branches have up to march 2010 taking the total number
of branches covered under C[S to 1533.
Rc Wide Area Network:The bank has commenced establishment of MPLS connectivity for
existing as well as additional branches proposed for C[S implementation.The other
various IT related services provided by the bank are Internet banking,SMS
banking,Mobile banking,phone banking.
Rc Website:The bank¶s website has been revamped to give a new look with added
features.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:
Rc Amway named as Amsure.

Rc Peerless group
Rc Pearls group named as Nirmal chaya.
Rc [anks like Axis bank and Yes bank
Rc 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.
Rc Central [ank Of India is one of the leading [anks in Kerala.They are the pioneers in
introducing many new services.
Rc The bank has unique products like central kisan gold card and visa platinum card.
Rc The bank provides services based on the needs and requirement of the customers.
Rc The bank takes special care in handling customer complaints.
FINDINGS OF MAX NEW YORK LIFE INSURANCE
Rc Max New York Life Insurance is one of the trusted insurance companies across the
world. It has global expertise.
Rc It has unmatched financial strength, integrity and responsibility
Rc 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.
Rc Transparency is the bedrock of their business. With the Personal Insurance Plan they
ensure that customers get a year-on-year indicative summary of all the benefits of the
policy, even before one buy it.
Rc 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.
Rc They offer the best-trained agent advisors in the business. They are in apposition to
assess our needs and offer the best life insurance solutions.
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FINDINGS OF HDFC MUTUAL FUND
Rc HDFC Mutual Fund is one of the largest mutual funds and well-established fund house in
the country.
Rc Customers are informed about the new arrival schemes and products through telecallers.
Rc [enefits mainly they provide include : Professional management ,Diversification
Convenient Administration , Return potential , Low costs , Liquidity ,Transparency
Flexibility ,Choice of schemes.
Rc They are customer centric and convince their customers through developing and
delivering 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 Sector [anks, Central [ank of India can be
truly described as an All India [ank, 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 [ank of India holds a very
prominent place among the Public Sector [anks on account of its network at various centres
throughout the length and breadth of the countryº
Max New York Life Insurance one of the largest player in insurance sector. It has the 5th
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:
Rc www.google.com
Rc www.wikipedia.com
Rc 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:
Rc Deposits
Rc Senior Citizen Deposit Scheme
Rc CENT Tax Saving Deposit
Rc Recurring Deposit with Personal Accident Cover
Rc Gold Coins Scheme
Rc Cent Personal Gold Loan
Rc Cent Mortgage
Rc Direct Housing Finance Scheme
Rc Cent Kisan Gold Card
Rc Cent Home Loan Plus
Rc Personal Loan to Teachers
Rc Personal Loan Scheme
Rc Loan to Students of IIMS
Rc Cent Vehicle
Rc Loans to Pensioners Drawing Pension
Rc Cent School
Rc Educational Loan
Rc Repatriable Scheme
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Rc NRI Accounts
Rc Demat Account
Rc MoneyGram/ExpressMoney
Rc Foreign Exchange Remittance
Rc [IC [ranch Swift Code
Rc Facilities to NRIs Returning to India
Rc MasterCard Prepaid Gift Card
Rc Visa Platinum Card
Rc [ank Visa Gold Card
Rc Debit/ATM Card
Rc Central Card Electronic
Rc Mutual Funds
Rc Depository Services
Rc Cash Management Services
Rc CENT [illPay
Rc Online [ill Payment
Rc Central Excise and Service Tax Payments
Rc Collection of Direct Taxes
Rc 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 µcustomised 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.
.Who all are your competitors and how you withstand them?
A.Our competitors are nearest bankers,other financial institutions,Non [anking Finance

Companies,other credit providing state agencies like KSFE,KFC,KSIDC etc.
7.How do you handle customers and employee complaints?
A.c We enables the troubled customers of the bank to get assistance when they face some
grievances. 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. [y 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.
A.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,ATM¶s,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:
Rc Amway named as Amsure.

Rc Peerless group
Rc Pearls group named as Nirmal chaya.
Rc [anks like Axis bank and Yes bank
Rc 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 charging
percentage has reduced that could yield minimum return to the organization.
customers?
A.We provide:
- µcustomised 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,S[I life insurance,ING vyasa,Metlife,HDFC

standard life,TATA AIG and [ajaj alliance.According to a survey conducted in December
2008,our company was rewarded for the µ[est Fund Management¶.Most ULIPs of Max
NewYork life Insurance has beaten the benchmark which says a lot about its fund
management.The policies were also quite a hit with outlook money ULIPs ranking and emerged
as the top performer in three of the four categories,proving their mettle in equity as well as debt
funds.
We also provide qualified and efficient training.we recruit agents through µFive point evaluation
system¶which is a unique feature of our recruitment process.We have changed our recruitment
method from a µ hybrid model¶ to a µqualitative model.¶
A.Most of the complaints are raised due to the misunderstanding by the customers side regarding
the selling of various policies.If any misrepresentation is made ,the company will take the whole
responsibility in handling it.
We usually receive less complaints from the employees side.We won second position for the best
employee friendly company in the insurance industry.
A.How do you create awareness about various products and how would you convince them?
A.To create awareness about our products,we focus on µRelationship based selling¶.i.e, most of
the 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.
A.We secure a fifth position attaining the market share of 30% hold in the industry.
A.Recently,We have not yet decided to introduce any new schemes .

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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 systematic
transfer planning and starts from very low entry premiums of Rs.15,000 to Rs.24,000.It offers an
in-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 us
protection for life,cash bonuses,and multiple options to utilize these cash bonuses to meet all our
individual 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.
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:
Rc HDFC Growth Fund,

Rc HDFC Equity Fund,
Rc HDFC Top 200 Fund,
Rc HDFC Capital [uilder Fund,
Rc HDFC Core & Satellite Fund,
Rc HDFC Premier Multi-Cap Fund,
Rc HDFC Index Fund,
Rc HDFC Long Term Advantage Fund,
Rc HDFC TaxSaver,
Rc HDFC Arbitrage Fund,
Rc HDFC Mid-Cap Opportunities Fund,
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Rc HDFC [alanced Fund,

Rc HDFC Prudence Fund,
Rc HDFC Children¶s Gift Fund,
Rc HDFC Gold Exchange Traded Fund,
Rc HDFC MF Monthly Income Plan,
Rc HDFC Multiple Yield Fund,
Rc HDFC Multiple Yield Fund- Plan 2005,
Rc HDFC Income Fund,
Rc HDFC High Interest Fund,
Rc HDFC Short Term Plan,
Rc HDFC Short Term Opportunities Fund,
Rc HDFC Medium Term Opportunities Fund,
Rc HDFC Gilt Fund
Rc HDFC Floating Rate Income Fund ,
Rc HDFC Liquid Fund, HDFC Cash Management Fund
Rc HDFC Quarterly Interval Fund.
There are 7 closed ended Schemes of the HDFC Mutual Fund consisting of :
Rc HDFC Long Term Equity Fund
Rc HDFC Infrastructure Fund
Rc HDFC Fixed Maturity Plans - Series XI
Rc HDFC Fixed Maturity Plans - Series XII
Rc Fixed Maturity Plans - Series XIV
Rc HDFC Fixed Maturity Plans - Series XV
Rc 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 µcustomised 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 [irla Sun Life Mutual Fund,Franklin Templeton Mutual Fund,Sundaram
[NP Paribas Mutual Fund,Kotak Mutual Fund,DSP [lackRock Mutual Fund,S[I Mutual Fund
and Tata Mutual Fund.
A. If any customer comes to us with their complaint we make sure a proper enquiry has
been made into the complaint and make sure that any grievance that was caused from our
side will be taken care of with utmost priority. We value our customer and we always aim
to build their trust with HDFC. Our agents maintain good rapport with our clients
therefore any kind of queries are easily tackled.
We value our employees similarly as we do for our customers. They are provided with
good working environment and grievances mainly arise on grounds of career growth and
monetary benefits which we resolve quickly. They are the real fighters in market without
them we can¶t survive.
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9.How do you create awareness about various products and how would you convince them?
A.We maintain customer database that is the contact numbers of our existing customers and also
potential customers and we have telecallers who are agents they contact the customers over
phone and inform about the new arrival schemes and products. We convince them by
Developing and delivering quality and timely services and products.
10.which is your target group?
A. We are focusing on the entire service areas including middle class, lower class and upper
class specifically on to the youngsters. For mutual funds the minimum invests are as low
as Rs.5000.
.A. We are currently in the 4th position in India
A. At HDFC the planning for policies takes shape at our India Headquarter. We plan to launch a
new realty fund it would be launched within the next 2 months..
A. HDFC¶s income funds are more popular

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A. The most attractive feature about the mutual fund is that there is tax exemption. We are
customer centric and we retain them through our timely service, brand value, quality selling,
quality products, professional expertise etc. To a customer when he gets more that what he
expected he will be happy so our job is to meet up to their expectations
In conversation with Mr. Imtiaz Aziz, Branch Head, HDFC Mutual Fund, Trivandrum..

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MANAGEMENT OF FINANCIAL SERVICES

Under the guidance of

TKM INSTITUTE OF MANAGEMENT

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

Place: Kollam Anu Moses

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

Place: Kollam Anu Moses

Industry Analysis- [anking, Insurance, Mutual Fund

Rc Services Rendered by the Central bank

Marketing of Financial Services

Findings & Conclusion

Scope of the study

Data was collected through direct interview and through websites.

The banking sector is one of the leading sector.

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

1.c Life Insurance - Insurance guaranteeing a specific sum of money to a designated

Challenges facing Insurance Industry

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

A mutual fund is a professionally managed type of collective

There are various investment avenues available to an investor such as

Mutual Fund Industry in India

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

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

Assets Under Mobilisation as % of gross

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

Phase IV. Growth and SE[I Regulation - 1996-2004

Phase V. Growth and Consolidation - 2004 Onwards

MUTUAL FUNDS: STRUCTURE IN INDIA

CENTRAL BANK OF INDIA

1976 The Merchant [anking Cell was established.

1980 Centralcard, the credit card of the [ank was introduced.

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

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

SERVICES RENDERED BY THE CENTRAL BANK OF INDIA.

The various services and products rendered by the bank include:

-Domestic and international acceptance.

-Age criteria for application is 21-65 years

-Income criteria above Rs.500000/ per annum.

-Availability of corporate card facility for limited companies.

Rc Cent Prepaid Cards

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

'c Housing Loans

MAX NEW YORK LIFE INSURANCE

Max New York Life - Life Plan

Max New York Life - Office Networks

To be the most admired life insurance company in India

Starts operations on May 3, 2010

 To serve 20 lakh customers in 5 years

SERVICES RENDERED BY MAX NEW YORK LIFE INSURANCE

Traditional products and ULIP products

Traditional includes endowment plans such as:

Rc Whole life(100 years coverage)

Whole Life Insurance

Whole Life Benefits

Rc Protection for life with a guaranteed death benefit.

Max New York-Lifeline Healthy Family Plan

Rc Complete family coverage-10 year term with comprehensive coverage of surgeries

Life Gain Plus

Starts operations on May 3, 2010

To serve 20 lakh customers in 5 years