Submitted to: Prof. A.

Gopalakrishna

Submitted by:Ankita joshi.

09BS0000304
HDFC BANK-
TWO ASSETS WITH HDFC BANK

1. Fixed deposits

Features & Benefits

Potential to earn compound interest by reinvesting the principal amount along

with the interest earned during the period.
Flexibility in altering period of deposit of renewal deposit, maturity and payment
instructions, principal amount and rollover mode before maturity of the rollover
deposit.
Higher rate of interest on Fixed Deposits for Senior Citizens.

Eligibility

The following can apply for a Regular Fixed Deposit

Resident Individuals
Hindu Undivided Families
Sole Proprietorship Firms
Partnership firms
Limited companies
Trust Accounts

DOMESTIC TERM DEPOSITS

 
Deposits Below Rs.15 Lacs Deposits of Rs.15 Lacs to less than
Rs. 1 Cr

For Deposits Below Rs.15 Lacs

Interest **Senior
Effective
Period Rate (per Citizen Rates
From
annum) (per annum)

7 - 14 days 3.00% 3.50% Jul 30, 2010

15 - 29 days 3.25% 3.75% Oct 11, 2010

30 - 45 days 4.00% 4.50% Oct 11, 2010

 46 - 60 days 3.75% 4.25% Jul 30, 2010

61 - 90 days 4.50% 5.00% Jul 30, 2010

91 Days to less than 6 months

5.50% 6.00% Oct 11, 2010
1 day

6 months 1 day - 6 months 15

5.75% 6.25% Jul 30, 2010
days

6 months 16 days 6.50% 7.00% Oct 11, 2010

6 months 17 days - 9 months

6.25% 6.75% Oct 11, 2010
15 days

9 months 16 days 6.75% 7.25% Oct 11, 2010

9 months 17 days - 1 year 6.50% 7.00% Oct 11, 2010

1 year 1 day - 1 year 15 days 7.00% 7.50% Oct 11, 2010

1 year 16 days 7.25% 7.75% Oct 11, 2010

1 year 17 days - 2 years 7.00% 7.50% Oct 11, 2010

2 years 1 day - 2 years 15

7.25% 7.75% Oct 11, 2010
days

2 years 16 days 7.50% 8.00% Jul 30, 2010

2 years 17 days - 3 years 7.25% 7.75% Oct 11, 2010

February
3 years 1 day - 5 years 7.50% 8.00%
19,2010

February
5 years 1 day - 8 years 7.50% 8.00%
19,2010

February
8 Year 1 Day - 10 Years 7.50% 8.00%
19,2010

Eligibility

The following persons and institutions can apply for these bonds:

An Individual, not being a Non Resident Indian

  In his or her individual capacity or
 In individual capacity on joint basis or
 In individual capacity on anyone or survivor basis or
 On behalf of a minor as father/mother/legal guardian
A Hindu Undivided Family

A Charitable Institution

 "Charitable Institution" to mean a company registered under Section 25 of

Indian Companies Act 1956 or
 An institution which has obtained Certificate of Registration as a Charitable
institution in accordance with a law in force or
 Any institution which has obtained a certificate from an Income Tax
Authority for the purpose of Section 80 G of the Income Tax Act, 1961
 Any institution notified by the Central Government under clauses (ii) or (iii)
of Sub-Section (1) of Section 35 of Income Tax Act, 1961

"University". By university, it means a university established or incorporated by

a Central, State or Provincial Act, and includes an institution declared under
Section 3 of the UGC Act, 1956 (3 of 1956), to be a university for the purposes of
that Act.

TWO LIABILTIES WITH HDFC BANK

1. PERSONAL LOAN

Features & Benefits

Borrow up to Rs 15,00,000 for any purpose depending on your requirements.

Flexible Repayment options, ranging from 12 to 60 months.
Repay with easy EMIs.
One of the lowest interest rates.
Hassle free loans - No guarantor/security/collateral required.
Speedy loan approval.
Convenience of service at your doorstep.
Customer privileges

 If you are an HDFC Bank salary account holder, we have a special offer
for you

 If you are an existing Auto Loan or Home Loan customer with a clear
repayment of 6 months or more from any of our approved financiers or us,
you can get a hassle free personal loan (without income
 documentation).

 If you are an existing HDFC Bank Personal Loan customer with a clear
repayment of 9 months or more, we can Top-Up your personal loan

Credit Shield

In case of death or total permanent disability of the loanee, the loanee/nominee

can avail of the Payment Protection Insurance (Credit Shield) which insures the
principle outstandings on the loan upto a maximum of the loan amount.Principle
outstanding is defined as the amount of loan outstanding (not including any
arrears in payment or interest thereon) at the Date of Loss,having accounted for
payments made and interest accruing as determined in the Policy. Hence,the
amount covered does not include any principal added because of non - payment
of EMI and also will not include interest/ accrued charges.*

Personal accident cover

In order to ensure that your family is taken care of we also offer a Personal
Accident cover of Rs 200000 at a nominal premium* Premium will be charged for
both these products which will be deducted from the loan amount at the time of
disbursal .A transaction fee of Rs.750 will also be deducted at the time of
disbursal. Please note that service tax @ 10% and Education cess of 3% will also
be charged.

Eligibility & Documentation

Salaried Individuals,
Self employed (Professionals)
Self Employed (Individuals)
Self Employed (Pvt Cos and Partnership Firms)

Eligibility Criteria

 Minimum age of Applicant: 21 years

 Maximum age of Applicant at loan maturity: 60 years
 Minimum employment: Minimum 2 years in employment and minimum 1 year
in the current organization
 Minimum Net Monthly Income: Rs. 10,000 per month (Rs. 15,000 in Mumbai,
Delhi, Bangalore, Chennai and Hyderabad & Rs. 12,000 in Calcutta,
Ahmedabad and Cochin)

Documents required:
 Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)
 Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport copy/Trade
licence /Est./Sales Tax certificate)
 Bank Statements (latest 3 months bank statement / 6 months bank passbook)
 Latest salary slip or current dated salary certificate with latest Form 16

2. HOME LOANS

Features & Benefits

Home Loan - Home loans for individuals to purchase (fresh / resale) or construct
houses. Application can be made individually or jointly. HDFC finances up to 85%
maximum of the cost of the property (Agreement value + Stamp duty +
Registration charges) based on the repayment capacity of the customer.

Home Improvement Loan - HIL facilitates internal and external repairs and other
structural improvements like painting, waterproofing, plumbing and electric works,
ti ling and flooring, grills and aluminium windows. HDFC finances up to 85% of
the cost of renovation (100% for existing customers) subject to market value of
the property..
Home Extension Loan - HEL facilitates the extension of an existing dwelling
unit. All the terms are the same as applicable to Home Loan.
Land Purchase Loan - Be it land for a dream house, or just an investment for
the future, HDFC Land Purchase Loan is a convenient loan facility to purchase
land. HDFC finances up to 85% of the cost of the land (Conditions Apply).
Repayment of the loan can be done over a maximum period of 15 years.
Choose from Fixed Rate or Floating Rate with options to structure your loan as
Partly Fixed or Partly Floating.
Flexible repayment options to suit your individual needs.
Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company
Ltd. offers an insurance plan*, which is designed to ensure that life's uncertainties
do not affect your family's interests and your precious home. LCTAP provides a
lump-sum payment on the unfortunate demise of the life assured.

This pure risk plan is designed in a way that the cover decreases as you repay
your home loan making it a low cost premium insurance plan.
*Insurance is the subject matter of solicitation.
Automated Repayment of Home loan EMI - You can give us standing
instructions to repay your Home Loan EMIs directly from your HDFC Bank
Savings Account, thus, saving you the trouble of procuring, signing and tracking
post-dated cheques.
HDFC also offers In-house scrutiny of Property documents for your complete
peace of mind.
Customer privileges - If you are an existing HDFC Home Loan customer, you
can avail of other loans (such as Personal Loans, Car Loans, Two-wheeler Loans
 and Loan against securities) at lower interest rates.

Home Loan PLR for eCBoP Floating rate Loans

Home Loan PLR for eCBoP floating rate loans has been changed in 2008/2009 as
follows

1st July 2008 0.75% + Increase

1st August 2008 0.75% + Increase
1st December
0.50% - Decrease
2008
Net Increase of 1.00% has been applied w.e.f 1st
Net Effect 2008 1.00% +
December 2008
6th August 2009 0.25% - Decrease of 0.25% w.e.f September 09 EMI

eCBoP Home Loan Fees & Charges

 
Description of Charges Ecbop Home Loan
No prepayments allowed in first 6 months
6 months - 5 years - 1.5% of original loan amount
5 years -10 years - 0.75% of original loan amount
> 10 years - No closure fee

For Gold Category

Foreclosure charges 6 months - 5 years - 2% of original loan amount
> 5 years - No closure fee

eBOP customers :
Loan repaid from own sources   - no FC charges
Loan repaid from other sources - regular FC
charges.
Charges for late payment of
2% per month
EMI
Cheque swapping charges Rs 500/-
Bounce Cheque Charges Rs. 500/-
Duplicate Statement Charges
Rs 100/- per page, Maximum Rs 300/-
(per statement)
Issue of Duplicate Provisional
Rs. 300/-
Interest Certificate
Issue of Duplicate Interest
Rs. 300/-
Certificate
Duplicate Balance Certificate Rs. 300/-
Issue of Amortization
Rs. 300/-
Schedule (Duplicate)
Switch from Variable to Fixed Not Applicable
Switch from Fixed to Variable Not Applicable
Photocopy of Documents Rs. 500/-

Pls note that all the above services attract service charges, as applicable.

ICICI BANK

ASSETS

1. FIXED DEPOSIT

 Wide range of tenures.

 Choice of investment plans.
 Partial withdrawal permitted.
 Safe custody of fixed deposit receipts.
 Auto renewal possible.
 Loan facility available.

Features

You can invest in our Fixed Deposit for as long as you wish between 7 days to 10
years.

All fixed deposits come with a set choice of investment plans. Fixed Rate Deposit
accounts also provide Fixed Loans. Re-investment Fixed Deposit rates do not
change but work like a Recurring Debit Account transaction. In other words, Re-
investment Plans are compounded over traditional deposits and hence are more
lucrative over different time periods.
Benefits

Fixed Deposits at ICICI Bank comes with nomination facility. We also offer online
access to your Fixed Deposits through our Internet Banking channel. Internet
Banking at ICICI Bank allows you to connect your Credit Card, Loan and your Fixed
Deposit with your savings account.

In re-investment deposits, the interest is compounded quarterly and reinvested with

the principal.

Benefits

 A wide range of tenures, ranging from 7 days to 10 years, to suit your

investment plan.
 Partial withdrawal is permitted in units of Rs 1,000. The balance amount earns
the original rate of interest.
 Safe custody of your fixed deposit receipts.
 Auto renewal is provided.
 Loan facility is available upto 90% of principal and accrued interest.
 Choice of two investment plans: Traditional or Reinvestment.

Traditional Reinvestment
Interest payable monthly and quarterly as Interest is compounded quarterly and
per your convenience. reinvested with principal amount.
Maturity period ranges from 7 days to 10 Maturity period ranges from 6 months to
years. 10 years.

Eligibility

 Resident Indian.

Documentation
Identity proof :

 Passport
 PAN card
 Voter ID card
 Driving licence
 Government ID card
 Photo ration card
 Senior citizen ID card

Address proof :

 Passport
  Telephone bill
 Electricity bill
 Bank Statement with Cheque
 Certificate/ ID card issued by Post office

* Any other Identity proof or Address proof document can be submitted, subject to
the Bank's satisfaction.
Note:

 Please produce the original document(s) for verification & a photocopy of

each document.
 Please fill the form in CAPITAL LETTERS using Black ink.
 Please countersign in case of any overwriting.
 Please avail of the nomination facility.

* Mandatory to provide Permanent address and telephone number.

or Domestic Deposits Below Rs.15 Lacs

Rates of Interest (%
 
p.a.) w.e.f Oct 06, 2010
Senior
Maturity Period General
Citizen **
7 days to 14 days 3.75 4.25
15 days to 29 days 3.75 4.25
30 days to 45 days 3.75 4.25
46 days to 60 days 3.75 4.25
61 days to 90 days 4.25 4.75
91 days to 120 days 5.75 6.25
121 days to 184 days 5.75 6.25
185 days to 210 days 6.25 6.75
211 days to 269 days 6.25 6.75
270 days to less than
6.50 7.00
1 year
1 year to 389 days 6.75 7.25
390 days 7.25 7.75
391 days to 589 days 6.75 7.25
590 days 7.50 8.00
591 days to less than 6.75 7.25
2 years
2 years to 789 days 7.50 8.00
790 days 7.75 8.25
791 days to 989 days 7.50 8.00
990 days 8.00 8.50
991 days to less than
7.50 8.00
3 years
3 years to less than 5
8.00 8.50
years
5 years upto 10 years 8.00 8.50
Tax Saver FD 80C (5
8.00 8.50
year) – Upto Rs. 1 lac

2. SAVING BONDS

Savings Bond –

Basic Features

The main features of these bonds are as follows:

Savings Bonds (Taxable),

Maturity Period 6 years

Rate of Interest 8.0% per annum (Taxable)

Risk Attached Low Risk

Minimum Investment Rs. 1,000/-

Maximum Investment Unlimited in multiples of Rs.1,000/-

Collateral Facility Available

 Overall Liquidity Not tradable

Date of Issue Date of realization of the funds

Savings Bond -Payment of interest

8% Savings Bonds (Taxable), 2003

 Non-cumulative (half yearly): Interest to the holders opting for non-

cumulative bonds will be paid from date of issue up to 31st July/31st January
as the case may be and thereafter half yearly for period ending 30th June
/31st December on 1st August and 1st February.
 Cumulative Interest at the rate of 8% per annum compounded with half
yearly rests and will be paid to the investor on maturity along with principal.
(the maturity value of the bonds shall be Rs 1601.00/- for every Rs1000/-)
(subject to TDS as applicable).

Tax Concessions

8% Savings Bonds (Taxable), 2003

 Interest on the Bond will be taxable under Income-Tax Act,1961.

 The bonds will be exempt from Wealth-Tax under the Wealth-Tax Act, 1957.

Eligibility
The eligibility criteria to obtains these bonds is as follows:

 8% Savings Bonds (Taxable), 2003

As an individual:
o Who is not a Non-resident Indian
o In his or her individual capacity or
o On joint basis, or
o Anyone or survivor basis, or
o On behalf of a minor as father/mother/legal guardian.

     As a Hindu Undivided Family

     As an Institution

 Charitable Insititution' under section 25 of the Indian Companies Act 1956.

 Institution obtained Certificate Of Registration as charitable institution .
 Any Institution which obtained certificate from Income Tax Authority
U/S 80G of Income Tax Act ,1961.

    "UNIVERSITY" established or incorporated by Central, State or     Provincial

Act, U/S 3 of University Grants Commission Act, 1956
    (3 of 1956) .

Nomination
8% Savings Bonds (Taxable), 2003

 This facility will be available for Individual investment for sole holder or
surviving holder basis. Nomination can be done in FORM B
(TB-4).
 This facility will not be available for joint holdings and minor investment.

TWO LIABILITES WITH ICICI BANK

1. HOME LOAN

Eligibility

Home Loans can be availed by Resident Indian whether Salaried or Self-Employed

and also by Non- Resident Indian who are Salaried. For resident Indians the
following are the eligibility norms:

 You must be at least 21 years of age when the loan is sanctioned.

 The loan must terminate before or when you turn 65 years of age or before
retirement, whichever is earlier.
 You must be employed or self-employed with a regular source of income.

Loan Amount

With ICICI Bank Home Loans, you can get a home loan suited to your needs. The
home loan amount depends on your repayment capability and is restricted to a
maximum of 80% of the cost of the property or the cost of construction as applicable.
A number of factors are taken into account when assessing your repayment
capacity. Repayment capacity takes into consideration factors such as income, age,
qualifications, number of dependants, spouse's income, assets, liabilities, stability,
continuity of occupation and savings history.

However, there are ways by which you can enhance your eligibility.If your spouse is
earning, put him/her as a co-applicant. The additional income shall be included to
enhance your loan amount. In case of any co-owners they must necessarily be co-
applicants. The final amount to be sanctioned will depend on your repayment
capacity. However, what you ultimately are entitled to will have to conform within the
limits fixed for each loan. Also, when the company looks at the total cost, registration
charges, transfer charges and stamp duty costs are included.

Documents required for the Sanctioning of Home Loan

ICICI Bank, offers attractive interest rates and unbeatable benefits to ensure that you
get the best deal without any hassles. Keeping your convenience in consideration,
we ask you for minimal mandatory documents for the sanctioning of your Loan
Against Property. We require the following documents to sanction your Loan Against
Property:

 Duly Completed Application Form

 Photograph
 Fee cheque
 Photo Identity Proof
 Signature Verification Proof
 Residence Address Proof
 Property documents as required

Document specific for Salaried

 Last 3 months' salary slips

 Form 16
 Bank Statement for last 6 months from salary account
 Repayment details on any existing loans or loan closure letter

Document specific for Self Employed

 Income Tax Return / Computation of Total Income / Auditors Report / Balance

Sheet / Profit & Loss Account certified by Chartered Accountant for last 2
years (3 years for Home Equity) (both for business and personal of
partners/directors)
 Bank Statement for last 6 months from operating account
 Repayment details on existing loans or loan closure letter
 Board Resolution in case of a company
  Proof of existence of the business entity
 Proof of Office Address
 Photo Identity Proof, Residence Address Proof, Signature Verification must be
provided for all the main partners / directors

2. PERSONAL LOAN

Personal Loans for all your financial needs

Thinking of renovating your house? Yearning to buy a new laptop? Need financial
assistance for marriage-related expenses or for your child's higher education? An
ICICI Bank Personal Loan is your one-stop-shop for fulfilling all your financial
aspirations!

Key Benefits of ICICI BankPersonal Loan

 Loan up to Rs. 10 lakhs

 No security/guarantor required
 Faster processing.
 Minimum documentation
 Attractive rates of interest
 Flexible repayment option of 12-48 months

 ICICI Bank may, at its sole discretion, utilise the services of external service
provider/s or agent/s and on such terms as required or necessary, in relation to its
products.

Eligibility

You can avail of an ICICI Bank Personal Loan if you have an ICICI Bank salary
account and if you meet the following criteria:

Criteria* Salaried
Age 25 yrs. - 58 yrs.
Net Salary Net monthly income - Rs. 20,000 p.m.
Eligibilty Employees of Public Ltd. companies, Private
Ltd. . companies,
Government companies or MNCs.

Years in total job / 2 Year

profession
Years in current residence 1Year

Documentation

ICICI Bank provides you with personal loan to fulfill any of your desires with
minimum documentation:

Documents ( Pre Sanction)

Salaried

1) Proof of Identity (any one) Passport / Driving License / Voters ID / PAN      Card

2) Proof of Residence (any one) Ration Card / Utility Bill / Passport / LIC      Policy
Receipt

3) Latest 3 months Bank Statement (where salary/income is credited)

4) Salary slips for last 2 months

ANSWER QUESTION NO- 2

Different types of payment settlement products of banks

– Electronic Clearing Services - debits and credits

– Electronic Funds Transfers and Special Electronics funds transfer

– Real Time Gross Settlement System (RTGS)

– Cheque Truncation

– NEFT
 – centers offering MICR clearing

– Introduction of High Value Clearing at additional centers

– CBS

– MOBILE BANKING

Benefits to banks

Benefits of RTGS

• Real-time Payment Settlement: Payments settled in real time on a

transaction-by-transaction basis, as soon as they are accepted by the system.

• No Credit Risk :- There is no credit and settlement risk involved in RTGS

system for receiving participant as each payment transaction is settled
instantly.

• Predictability of Cash Flows:- RTGS facilitates predictability of cash flows as

customers know when their accounts will be debited or credited.

• Benefits to Economy : The instant finality of payments ensures fast, secure

and irrevocable settlement of major business and financial market
transactions

• The Govt. Departments can also be credited through EFT from various banks.

• Some Government Bodies like DGFT receive license fees from lakhs of
exporters, which can be done through EFT.

• The analogy can be extended to pvt. Companies which receive payments

from lakhs of dealers/franchisees.

• The system provides opportunity to the bank to attract new potential

customers

• Enhances customer satisfaction

• Provides better network and increased turnover

• Enhances customer base to the bank

• Brings high net worth customers in the bank

• Creates a brand name and popular image for the bank

• Increases income of the bank

 • This may increase the chances of relationship banking and thereby retaining
the customers

• Reducing existing costs and generating new income:

Benefits to the customers

 Provides convenience to the customers

 The risk factor is avoided
 Cross border fund transfer
 Quick access to the accounts
 Access to credit
 Grace period
 Online functionality
 Better record keeping
 Innovation
 Participation in the global economy
 Consumer choice
 It also enhances a sense of financial discipline to customers
 Almost no time elapsed in settling dues.
 No chance of defaults and errors in deposits by bank employees.
 Waiting time standing in a queue is eliminated.
 Payment can be settled not only in bank hours but 24x7.
 On the spot confirmation of payment settlement is received and no need to
confirm with the payment receiver afterwards
 Saves time for the customers etc.

ANSWER QUESTION NO - 3

Modes of creating charge :

- Lien -

• Section 171 of the Indian Contract Act confers the right of general lien
on the banker.

• The banker is empowered to secure all securities of the customers, in

result of the general balance due from him.

• The ownership of stock securing is not transferred from the customer

to the banker.
-Negative Lien :

 The borrower gives a declaration to the banker that his assets mentioned
therein are free from any charge or encumbrance.

 He also gives an undertaking that he shall not create any charge or dispose
them off without permission of the banker.

 The borrower cannot dispose of the assets or create any charge there on without
the consent of the banker.

PLEDGE :

 Sec. 172 of the Indian Contract Act – 1872 defines pledge as ‘bailment of
goods as security for payment of debt or performance of a promise.

 The person who offer security is called – PLEDGER ,To whom it is offered is
called – PLEDGEE

HYPOTHECATION :

• Which is another method of creating charge over the movable assets,

neither ownership nor possession of goods is transferred to the creditors but
an equitable charge is created in favour of the latter.

• The banks retain in the possession of the borrower, who bind himself under
an agreement, to give the possessions of the goods to the banker, where the
banks require to do.

MORTGAGE :

 Sec. 58 of the transfer of property Act 1882 defines mortgage as –

 The transfer of an interest in specific immovable property for the purpose of

securing the payment of money, advanced or to be advanced by way of loans, an
existing or future debt, or the performance of an engagement which may give rise to
a pecuniary liability.

  In this case transfer is called “MORTGAGOR”

Transferee is called – “MORTGAGEE”

Principle money & Int. thereon is called – “MORTGAGE MONEY”

Instrument is called – “MORTGAGE DEED”.

FORMS OF MORTGAGE :
 • Simple Mortgage

• Mortgage by condition sale

• Usufructuary Mortgage

• English/legal Mortgage

• Mortgage by deposit of title deed or equitable mortgage

• Anomalous mortgage

ANSWER QUESTION NO 4

1. Payment to life insurance corporation amount is 7450/-

It will be credit to LIC and the amount will be debited to customer x

2. Payable to Mr. y for Rs. 12240/-

It will be credited to account of Mr. Y and the account of Mr. X will be

debited by 12240/-

3. Payable to same bank for a home loan repayment of 6842/-

The amount will be credited to the banks’ account by 6842/- and the
same amount will be debited from the account of Mr. X

4. @ 10 o’clock in the morning bank receives an income tax attachment

order for 17268/-

The amount will be credited to the bank

5. @12.30 the bank receives a court order for 6842/-

The amount will be credited to the bank

If some of the cheques are to be dishonoured, those can be

Payment to LIC, payment to Mr. Y and payment to bank for a home loan repayment
because of other prior liabilities if in case Mr. X has to pay to others or certain
payments which he is obelised to pay.

Payment to LIC, payment to Mr. Y and payment to bank for a home loan repayment
because of other prior liabilities if in case Mr. X has to pay to others or certain
payments which he is obelised to pay.