CHAPTER-1

Company Profile
INTRODUCTION

General Introduction:-

The project was carried out for understanding the customer preference &

attributes towards saving Account of HDFC Bank and its market potential. HDFC

Bank was established in the year 1994, they are old player in banking sector, The

bank has two principle client segments customer and asset management. The

bank follows values such as Integrity, teamwork, respect, professionalism, &

Mission. The segment of bank we are considering here is- Corporate banking.

The product out of which have chosen for research is Saving Accounts. This

research helps us in finding out the customers view regarding the product and

Services offered by the HDFC bank and awareness by promotion and also

identifying the market potential of the product offered by the HDFC bank.

1.2 Industry Profile:-

a.) Origin and development of the industry:-

Banking in India originated in the first decade of 18th century. The first banks were The

General Bank of India, which started in 1786, and Bank of Hindustan, both of which are

now defunct. The oldest bank in existence in India is the State Bank of India, which

originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the

three presidency banks, the other two being the Bank of Bombay and the Bank of

Madras. The presidency banks were established under charters from the British East

India Company. They merged in 1925 to form the Imperial Bank of India, which, upon
India's independence, became the State Bank of India. For many years the Presidency

banks acted as quasi-central banks, as did their successors. The Reserve Bank of India

formally took on the responsibility of regulating the Indian banking sector from 1935.

After India's independence in 1947, the Reserve Bank was nationalized and given

broader powers.

A couple of decades later, foreign banks such as Credit Lyonnais started their Calcutta

operations in the 1850s. At that point of time, Calcutta was the most active trading port,

mainly due to the trade of the British Empire, and due to which banking activity took

roots there and prospered.

First of all we must note the fact that these institutions have changed very much in

character since their origin, and consequently nowadays perform many functions

unknown to those of former times. The first banks seem to have arisen in connection

with the business of exchanging money. In ancient times and especially in the Middle

Ages the varieties of coins were greater even than at the present day, and they were

much less perfectly and honestly minted. Specialists were, therefore, required to

determine their exact value and equivalence and to exchange coins of one mintage for

those of another, and their BANK were in great demand at fairs and other places where

merchants of different nations met for purposes of trade. Inasmuch as they kept their

boxes or chests of coins on benches or "banked," the name bankers came to be applied

to them. On account of their technical knowledge and the fact that they were obliged

constantly to keep on hand considerable quantities of the precious metals, this business
in the early Middle Ages was usually carried on by goldsmiths, but later it was

sometimes assumed by the governments of large commercial cities, as, for example, by

Amsterdam in 1609, by Hamburg in 1619, and by Nurnberg in 1621. Of these latter the

Bank of Amsterdam was the most important and may be regarded as typical of these

early institutions.

From the earliest times also, bankers have been the chief agents through which foreign

exchanges have been conducted. As dealers in coin and bullion they had international

connections and a knowledge of international affairs not possessed by other merchants,

and were, therefore, in a position to undertake the settlement of international accounts

by means of orders drawn on bankers in other countries or other cities with whom they

had regular business transactions. As keepers of other people's money they also

promoted saving, and banks thus became in time the chief savings institutions of the

country.

b. Growth and present status of the industry:-

Currently (2009), banking in India is generally fairly mature in terms of supply, product

range and reach-even though reach in rural India still remains a challenge for the

private sector and foreign banks. In terms of quality of assets and capital adequacy,

Indian banks are considered to have clean, strong and transparent balance sheets

relative to other banks in comparable economies in its region. The Reserve Bank of

India is an autonomous body, with minimal pressure from the government. The stated

policy of the Bank on the Indian Rupee is to manage volatility but without any fixed

exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-

especially in its services sector-the demand for banking services, especially retail

banking, mortgages and investment services are expected to be strong. One may also

expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake

in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor

has been allowed to hold more than 5% in a private sector bank since the RBI

announced norms in 2005 that any stake exceeding 5% in the private sector banks

would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks

(that is with the Government of India holding a stake)after merger of New Bank of India

in Punjab National Bank in 1993, 29 private banks (these do not have government

stake; they may be publicly listed and traded on stock exchanges) and 31 foreign

banks. They have a combined network of over 53,000 branches and 17,000 ATMs.

According to a report by ICRA Limited, a rating agency, the public sector banks hold

over 75 percent of total assets of the banking industry, with the private and foreign

banks holding 18.2% and 6.5% respectively

Introduction of many more products and facilities in the banking sector in its reforms

measure. In 1991, under the chairmanship of M Narasimham, a committee was set up

by his name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put

to give a satisfactory service to customers. Phone banking and net banking is

introduced. The entire system became more convenient and swift. Time is given more

importance than money.

In 1995, the Brookings Institution published a paper entitled The Transformation of the

U.S. Banking Industry: What a Long, Strange Trip Its Been. Using a breathtaking

array of facts and figures, the paper described in great detail the dramatic changes that

had occurred in the U.S. commercial banking industry over the 15 years from 1979 to

1994. The banking industry was transformed during that period, according to the paper

(p. 127), by the massive reduction in the number of banking organizations; the

significant increase in the number of failures; the dramatic rise in off-balance sheet

activities; the major expansion in lending to U.S. corporations by foreign banks; the

widespread adoption of ATMs; . . . and the opening up of interstate banking markets.

The paper went on to explain that most of these major changes in banking could be

traced to two developments: (1) the extraordinary number of major regulatory changes

during the period, from deposit deregulation in the early 1980s to the relaxation of

branching restrictions later in the decade; and (2) clearly identifiable innovations in

technology and applied finance, including improvements in information processing and

telecommunication technologies, the securitization and sale of bank loans, and the

development of derivatives markets. Other research would later confirm the papers

assessments and its explanation of the course of events in the banking industry over

the period 19791994.

Over the two decades 19842003, the structure of the U.S. banking industry indeed

underwent an almost unprecedented transformationone marked by a substantial

decline in the number of commercial banks and savings institutions and by a growing

concentration of industry assets among a few dozen extremely large financial

institutions. This is not news. As mentioned above, the decline in the number of

banking organizations has been ongoing for more than two decades and has been well

documented in the literature.3 Nevertheless, a brief overview will serve to clarify both

the scope of the decline and the increasing concentration of assets among the nations

largest banking organizations

At year-end 1984, there were 15,084 banking and thrift organizations (defined as

commercial bank and thrift holding companies, independent banks, and independent

thrifts). By year-end 2003, that number had fallen to 7,842a decline of almost 48

percent (figure 1). Distributed by size, nearly all the decline occurred in the community

bank sector (organizations with less than $1 billion in assets in 2002 dollars), and

especially among the smallest size group (less than $100 million in assets in 2002

dollars). Yet the community banking sector still accounts for 94 percent of banking

organizations

c. Future of the industry:-

The burden of reporting and other regulatory requirements will fall heavily and

disproportionately on small banks unless remedial action is taken. Further advances in

information technology will permit the development of new products, BANK, and risk-

management techniques but may also pose important competitive and supervisory

issues. Nonbank entities will continue to offer bank-like products in competition with

banks, raising anew the question of whether banks are still special and, more

fundamentally, whether banks are sufficiently different from nonblank firms to justify the

maintenance of a safety net for banks. It is useful, therefore, to try to chart the course of

the banking industry in the next five to ten years and to consider what policy issues the

industry and regulators will face. The authors of this study do not pretend to be

clairvoyant. They are mindful of the many financial predictions that were

once offered with confidence but turned out to be wrong or premature. This study is

perhaps best described as an exercise in strategic thinking. Its approach is to analyze

what has happened in the recent past, consider in detail reasons for expecting recent

trends to continue or to change, and draw the consequences for bank and regulatory

policies. As always, uncertainties abound, and events that may now appear fairly

improbable may in fact shape the future. This paper closes with a discussion of a

number of such possible events. The future-of-banking study addresses three broad

questions:

1. What changes in the environment facing banking can be expected in the next five to

ten years?

2. What are the prospects for different sectors of the banking industry in this anticipated

environment? Because the banking industry is not monolithic and different segments of
the industry have, to some degree, different opportunities and vulnerabilities, the study

considers separately the prospects for large, complex banking organizations; regional

and other midsize banks; community banks; and limited-purpose banks.

3. What policy issues are the industry and regulators likely to face in the years ahead?

Separate consideration is given to

 CHAPTER-2

Project Profile
2.1 Origin of the Organization:-

Housing Development Finance Corporation Limited, more popularly known as HDFC

Bank Ltd, was established in the year 1994,

as a part of the liberalization of the Indian Banking Industry by

Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle'

approval from RBI,

for setting up a bank in the private sector. The bank was incorporated with the name

'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started

its operations as a Scheduled Commercial Bank.

HDFC Bank Limited. The Group's principal activities are to provide banking and other

financial BANK. The Group operates through four segments: Treasury, Retail Banking,

Wholesale Banking and Other Banking Business. The Treasury BANK segment

consists of net interest earnings on investments portfolio of the bank and gains or

losses on investment operations. The Retail Banking segment serves retail customers

through a branch network and other delivery channels. This segment raises deposits

from customers and makes loans and provides advisory BANK to customers. The

Wholesale Banking segment provides loans and transaction BANK to corporate and

institutional customers. The Other Banking Operations segment provides BANK relating

to credit cards, debit cards, third party product distribution and primary dealership

business and other associated costs. The Bank was Incorporated on 30th August 1994. A new
private sector Bank promoted by housing Development Corporation Ltd. (HDFC), a premier housing

finance company. The bank is the first of its kind to receive

an in-principle approval from the RBI for establishment of a bank in the private sector.

Certificate of Commencement of Business was received on 10th October 1994 from

RBI. The Bank transacts both traditional commercial banking as well as investment

banking. HDFC, the promoter of the bank has entered into an

agreement with National West minister Bank Pc. and its subsidiaries (Nat west Group)

for subscribing 20% of the banks issued capital and providing technical assistance in

relation to the banks proposed banking business.

2.2 Growth and Development of the Organization:-

1994.

On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarring ton Pte. Ltd.

Another 400,00,000 equity shares were allotted on private placement basis to NatWest

Group on 9.5.1995. 500,00,000 shares were allotted to the public on 9.5.95 The Bank

opened its first branch in Ramon House at Church gate, Mumbai on January 16th.

The Bank has created an efficient operating system using well tested state-of-the-art

software.

1995

70 No. of equity shares issued to subscribers to the Memorandum &Articles of

Association on 30th August 1994. On the same date 500,00,000 equity shares were
allotted to HDFC promoters. 509,20,000 shares were allotted to HDFC Employees

Welfare Trust and HDFC Bank Employees Welfare Trust on 22nd December,

1996

HDFC Bank has entered the banking consortia of over 50 corporate, including some

leading multinational companies, flagship companies of local business houses and

strong public sector companies.

HDFC Bank has set up a state-of-the-art dealing room to handle all transactions

possible in Indian financial markets.

The Certificates of Deposits were awarded a PP1+ rating which is the highest rating for

short term instruments indicating superior capacity for repayment.

2001

- The Bank has opened its first branch in Aurangabad. HDFC Standard Life Insurance

has entered into a memorandum of understanding with the Chennai-based Indian Bank.

The Bank has launched the international Maestro debit card in association with Master

Card. HDFC Bank will launch its credit card in June through link-ups with MasterCard

and Visa.LTtrade.com has entered into a strategic tie-up with HDFC Bank to provide

Net banking BANK to online investors. Standard Chartered Bank, HDFC Bank and

Bharat Petroleum Corporation have joined the Cash Forum which has been set up by

the Smart Card Forum of India. HDFC Bank has launched a new campaign for its eage
savings account. HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt.

Ltd. to offer online real time accounting BANK to small and Medium enterprises.

Today HDFC Bank has 1,412 branches and over 3,295

ATMs, in 528 cities in India, and all branches of the bank are linked on an online real-

time basis. ] As of September 30, 2008 the bank had total assets of INR 1006.82

billion. For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore,

up 41% from the previous fiscal. Total annual earnings of the bank increased by 58%

reaching at Rs.19,622.8 crore in 2008-09.

2.3 Present Status of the Organization:-

March 2007 March 2008 March 2009

Citied 228 316 452

Branches 535 684 1412

ATMs 1323 1605 3275

Housing Development Finance Corporation Limited, more popularly known as HDFC

Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian

Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive

an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank
was incorporated with the name 'HDFC Bank Limited', with its registered office in

Mumbai. The following year, it started its operations as a Scheduled Commercial Bank.

Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across

India. Amalgamation

In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector

bank promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times

became the first two private banks in the New Generation Private Sector Banks to have

gone through a merger. In 2008, RBI approved the amalgamation of Centurion Bank of

Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs.

1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was

Rs. 1,63,000 crore.

Head Office

HDFC Bank

Ramon House, 169, Backbay Reclamation,

H T Parekh Marg, Churchgate

Mumbai - 400020

Phone: +91 (22) 66316000, 66636000, 66316060

Fax: +91 (22) 22048834

Website: www.hdfc.com
Tech-Savvy

HDFC Bank has always prided itself on a highly automated environment, be it in terms

of information technology or communication systems. All the braches of the bank boast

of online connectivity with the other, ensuring speedy funds transfer for the clients. At

the same time, the bank's branch network and Automated Teller Machines (ATMs) allow

multi-branch access to retail clients. The bank makes use of its up-to-date technology,

along with market position and expertise, to create a competitive advantage and build

market share.

Capital Structure

At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion),

of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share,

the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of

the equity and about 17.6% is held by the ADS Depository (in respect of the bank's

American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders.

Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange,

while its American Depository Shares are listed on the New York Stock Exchange

(NYSE), under the symbol 'HDB'

2.4 Functional Departments of the Organization:-

The functional departments of the organization consist of the HR department, the

administrative department and the executive department. The HR department of the

organization consists of the people who employ the Persons who they think would be

able to do justice with the job handled. The administrative department of the

organization consists of the director and the manager of the organization. They preside

the organization and control all the operations of the organization such that the

organization could run in a smooth and effective manner. The executive department of

the organization consists of the various employees Who execute the job undertaken by

them. The employees consists of the team leaders, the Corporate financial consultants,.

the telesales, various staffs and junior staffs who are the main structural framework of

the organization. The organization thus runs with the effective coordination of the HR

department, the administrative department and the executive department such that the

supervisors of the organization preside over the subordinate employees to give them

directions about fulfilling their works most efficiently and effectively. Technical

Consultancy Department: The Technical Consultancy Department is responsible for

technical appraisal of industrial projects. The mission of the division is aimed towards

the verification of the technical viability of industrial projects and assisting the Funds

management in taking the decisions that require technical expertise. Moreover, it is

responsible for conducting technical studies and rendering technical consultancy BANK

to certain industrial sectors for the purposes of investigating modern technologies and

productivity levels for local manufacturing plants.

H R Department:
HDFC Human Resources department plans and direct for the employee population as

well as they are having the following functions as:-

Hiring

Promotions

Reassignments

Position classification and grading

Salary determination

Performance appraisal review and processing

Personnel data entry and records maintenance

Policy development

Work permitting immigration visa program

Workers compensation

Finance Department:

The Finance Manager is responsible for all aspects of the accounting and financial

administration of the HDFC, the supervision of the implementation of the HDFC financial

policies, directives and procedures and the initiation of the financial plans within the

guidelines of HDFC The department contains several distinct sections, each of which is

responsible for a proportion of the activities taking place within the finance department.
Marketing Consultancy Department:

The Marketing Consultancy Department plays and important role within the Fund as it

studies and analyzes marketing information in order to build solid base for management

decisions. The division also assists projects sponsors in formulating solid marketing

strategies to improve their industries and strengthen their position in the local and

international markets.

Research Department:

The Research Department is having the capacity to act through four composing units

i.e., the market research unit, economic studies unit, and statistical studies unit. It is the

mission of the division to provide support BANK for information and consultancy to the

senior management and division in the areas of economic, statistical and marketing

information and consultancy through data analysis, processing of economic and

statistical data, market research studies and publishing related periodical reports.

2.5 Organization Structure and Organization Chart:-

The organization structure of the company HDFC is such that it comprises of the

departments and the employees in the hierarchical order so that they are able to

perform their functions and duties smoothly and effectively doing their job in a manner in

which it should be done. The organization is headed by the administrative department

which coordinates and controls the executive department. The executive department is

a link from the top and the bottom comprising of the lower level employees such that
they work together to fulfill the common objective of getting business from the persons

who get in touch with them and see to it that they are provided with the best of the

BANK which constitute giving financial advise to providing Account to the customers.

The lower level employees and the corporate financial consultants work together to see

to it that the database for providing financial BANK to sufficient number of people is

made .They work together to see to it that this database is followed and worked upon

such that more and more number of people get themselves avail the financial BANK of

the organization. Team leaders who form the part of the administrative department of

the Organization make sure that the clients that turn up for the financial BANK are dealt

with most efficiently and effectively.

The organizational structure is well planned out and it follows a simple format which is

follows:

Organization Chart:-
Each team lead has a team comprising only of both senior as well as junior market

research analyst who aid the team lead in the entire market research process as it has

been discussed previously. This is the basic organizational structure followed by HDFC

BANK.
2.6 Product and service profile of the organization:-

HDFC Bank offers a bunch of products and services to meet the every need of the

people. The company cares for both, individuals as well as corporate and small and

medium enterprises. For individuals, the company has a range accounts, investment,

and pension scheme, different types of loans and cards that assist the customers. The

customers can choose the suitable one from a range of products which will suit their life-

stage and needs. For organizations the company has a host of customized solutions

that range from funded services, Non-funded services, Value addition services, Mutual

fund etc. These affordable plans apart from providing long term value to the employees

help in enhancing

Goodwill of the company. The products of the company are categorized into various

sections which are as follows:

Personal Banking

Savings Accounts

Salary Accounts

Saving Accounts

Fixed Deposits

Demat Account
Safe Deposit Lockers

Loans

Credit Cards

Debit Cards

Prepaid Cards

Investments & Insurance

Forex Services

Payment Services

Net Banking

Installers

Mobile Banking

Insta Query

ATM

Phone Banking

NRI Banking

Rupee Savings Accounts

Rupee Saving Accounts

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

Quick remit (North America, UK, Europe, Southeast Asia)

India Link (Middle East, Africa)

Coequal Lock Box

In todays world many companies have emerged who have taken a serious note on the

importance of market research and he advantages of using it for the better growth and

development of the company. Hence, our competitors are those companys who are in

the market research and development field as well as the consultancies, since they also

make use of market research and business developers.

The products and BANK of our competitors are as follows:

A. Customer Satisfaction Analysis:

Customer analysis involves gathering data about the customers and their

characteristics. They also conduct tailored customer satisfaction surveys to gauze

customer satisfaction.

B. Risk
These BANK are used by the competitors in order to gather external information and

research the possible effect on the competitiveness of company.

C.

D. Product Research BANK:

The conduction of extensive product research by this service helps the competitors to

find out the marketability of a product or service. The research can be utilized to

leverage the major decisions of a company on the marketing of its products.

E. Advertising Research BANK:

Advertising research strives to gain valuable information about the effects and reach of

advertising the products in different forms of media.

Given below are the steps we follow for every assignment we take up:

1. The timetable for the search is indicated and the search process commences.

2. Target companies are examined, using any prior information provided by business

development executives in conjunction with sources of information and prospective

companies already known to us, augmented with original study by our search team.
3. We maintain a regular channel of communication with the client to keep them

apprised of the results emerging.

2.7 Market profile of the organization:-

HDFC Bank Limited provides various financial products and services. It operates in

three segments: Retail Banking, Wholesale Banking, and Treasury. The Retail Banking

segment provides various deposit products, including savings accounts, current

accounts, fixed deposits, and demat accounts. It also offers auto, personal, commercial

vehicle, home, gold, and educational loans; loans against securities, property, and

rental receivables; and health care finance working capital finance, construction

equipment finance, and warehouse receipt loans, as well as credit cards, debit cards,

depository, investment advisory, bill payments, and transactional services. In addition,

this segment sells third party financial products, such as mutual funds and insurance, as

well as distributes life and general insurance products through its tie-ups with insurance

companies and mutual fund houses. The wholesale banking segment provides loans,

non-fund facilities, and transaction services to large corporate, emerging corporate,

small and medium enterprise, supply chain, public sector undertaking, central and state

government departments, and institutional customers. It offers deposit and transaction

banking products, supply chain financing, working capital and term finance, agricultural

loans, and funded, non-funded treasury, and foreign exchange products. These
segments services include trade services, cash management, money market, custodial,

tax collection, and electronic banking. In addition, it provides correspondent bank

services to co-operative banks, private banks, foreign banks, and regional rural banks;

and wealth management products for non-resident Indians. The Treasury Services

segment operates primarily in areas, such as foreign exchange, money market, interest

rate trading, and equities. As of March 31, 2009, HDFC Bank had a network of 1,412

branches and 3,295 automated teller machines in 528 cities in India. The company was

founded in 1994 and is based in Mumbai, India.

In todays growing world everyone needs to diversify their business so as to keep in

touch with the rapid development. By analyzing the growing concerns of the market,

HDFC has clients varying from investment banking sector, retail, web designing

companies, etc. Due to this rapid development HDFC Group has many teams working

for the above mentioned sectors.

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian

Bank". We realized that only a single-minded focus on product quality and service

excellence would help us get there. Today, we are proud to say that we are well on our

way towards that goal.

CHAPTER-3

RESEARCH

METHODOLOGY
 Current Ratio

Current ratio = Current assets

Current liabilities

Interpretation: -

An ideal current ratio is 2:1. The ratio 2:1 is considered as a safe margin of

solvency due to the fact that if the current assets are reduced to half i.e. 1 instead of 2

then the creditors will be able to get their payments in full.

Here, it shows that the bank has 1.36:1, 1.47:1 & 1.39:1 which is quite satisfactory

but can be improved by better turnover and profit and also by decreasing liabilities.
 Quick ratio = quick asset

Current liability

Interpretation

If the ratio 1:1 then firm has enough cash on hand to meet all current liabilities. In

cash position ratio 1:1 is satisfactory result.

In 2009-2010 years ratio is 0.55:1 & 2010-11 years ratio is0.60:1 & 2011-12

years ratio is 0.69. It means the good position for the bank. In the cash position ratio

cash is increase in 2010-11 compare with 2009-10. And also marketable securities

increase in 2012

Debt Equity Ratio

 Debt Equity Ratio: = Long Term liability *100

Shareholders Fund

Interpretation

This ratio is continues increasing but the figures are not satisfactory. This ratio

indicates equity capital or owners capital is increasing. It should be 10 times higher

than the present position.

 NAV Ratio

Net Assets Value(NAV) :-

= Equity Shareholders Fund

No. Of Equity Share

Interpretation

In this ratio, total assets are far more than external liabilities. The banks treated solvent. In

solvency ratio in 2010 is 4.57:1 and increase in 2011 is 4.35, it means that outside liabilities is

always less than total assets.

 Net profit ratio

Net profit ratio = Net profit 100

Sales

Interpretation

Generally this ratio is required 10 to 15%. If it is more than 15% than it

shows good position but if it under 15% it is not good but required

position is good.

In 2010- 11the net profit ratio is 12.20%, & in 2011-12 the net profit

ratio is 12.37% it is good for bank.

CHAPTER-4

FACTS

&

FINDINGS
 INTRODUCTION TO RATIO ANALYSIS

Ratio is numerical relationship between two variables which are connected with
each other in some way or the other. Ratios may be expressed in any one of the
following manners:

As a number between 500 and 100 may be expressed as 5(500 divided by

100)
As a fraction may be expressed as former being 5 times of the later.
As a percentage the relationship between 100 and 500 may be expressed as
20% of the later.
As a proportion relationship between 100 and 500 may be expressed as 1:5.

Ratio analysis facilitate the presentation of information of financial statements in

simplified and concise and summarized form.
 In the words of Hund, William, Ratios are simply a means of highlighting in
arithmetical terms the relationship between figures drawn from financial
statements.

NATURE OF RATIO ANALYSIS

Ratio analysis is basically a technique of:

1. Establishing meaningful relationship between significant variables of

financial statement.
2. Interpreting the relationship to form judgement regarding the financial
affairs of the unit.

Usefulness of ratio analysis depends upon identifying

objective of analysis;
selection of relevant data;
deciding appropriate ratios to be calculated;
comparing the calculated ratios with norms of standards or
forecasts;
Interpretation of ratios.
 INTERPRETATION OF RATIOS

Ratios are interpreted in following different ways:

individual ratio may be studied with reference to certain rule of thumb.
group ratio may be interpreted by considering group of several related
ratios.
comparison with past.
comparison with projections.
inter-firm or inter-industry comparison.

CHAPTER-5

SWOT
ANALYSIS
STRENGTH

HDFC and standard life both enjoy good and trusted brand name so as the
HDFC
With 175 years of experience of standard life HDFC SLIC also strengthen by
synergy of partners.
Financial rating of companies
Flexibility of plans
Highly co-operative & skilled staff.
Sales oriented organization.
Aggressiveness of sales force in selling products.
The company has expertise in managing big business.
Effective and wider distribution network.
Product designed for each age group & every area of personal.
 HDFC std life insurance provide unique training program for FC called Disha.
The company enjoys a very high brand loyalty & recall value among its
customer.
The company has a presence in all metros as well as in most of the major
cities in country.

WEAKNESS

Less coverage in rural areas.

Less staff
Lack in making follow up.
Lack of corporate agent.
Lack of customer services.
Lack of promotional activities.

OPPORTUNITY

There is continuous growth in insurance sector.

People have started Turing towards private insurance sector as they know

that security and growth of money is better then another insurance

company.

Government has also started investing in private insurance sector.

Market is fully to capture because the branch has recently set up its business.

THREATS

Competition in insurance sector is increase sing with the entry of private

giants like ICICI prudential, Bajaj Allianz, Sahara, Gig, LIC etc.

Selling attitude the company always has to be maintained in order to

company other insurance company.

Continuous follow up of the client and customers.

As LIC has strong market position so it is little bit difficult to capture the

market.

Customer are still find risky to in private insurance sector.

 BIBLIOGRAPHY

1. Chawla R. K., Juneja C. Mohan, Saksena K. K. Finanical

Accounting
2. Kalyani Publication.

3. Swaroop Gopal, Varshnay P. N. ,

Banking Law & Practice

Sultan Publication.

4. Gupta Shashi. K. , Sharma R. K.

Accounting For Managerial Decisions
 Kalyani Publication.

CHAPTER-6

CONCLUSION
CONCLUSION
After completion of research, we conclude that: -

Segmentation of target market is best way to work in.

Womens are proving better FC.

Cut throat competition as new insurance companies are also opening

branch.

Public accepts Ulip readily.

Private insurance sector making their place in insurance sector.

FC should be approach according to need.

In short can be said that HDFC SLIC has to do more for their good future as it is

on a good position as private insurance is concerned. According to survey there

are various player in market ( Kota) and really it is difficult for HDFC SLIC to

survive on the basis of brand name for different products.

So there is not much awareness in kota city of HDFC SLIC as it started working

from July 2004 what we think HDFC SLIC just need promotional activities.

During our promotional activities when we found that HDFC SLIC could capture

big market in kota. They would be on n0. One position in kota because the

benefits and flexibility which HDFC providing is not provide by any other

insurance company in kota. ICICI prudential is the only private player, which is

there in competition with HDFC SLIC. As ICICI prudential launch first so it

capture the market very soon

Andas LIC is concerned they have advantage of public mentality a very safe

investment

At last we want to state that HDFC SLIC need promotional actives and the

benefits should be given to the customers. Customer satisfaction should be first

preference.
 CHAPTER-7

SUGGESTIONS
 SUGGESTIONS

FC should be given more training to time to time to have better knowledge fo

change in market.
Mass insurance policy should be launched

Untapped areas should be cover.

There are more than 52 village in India a total population of nearly 75 cores. This
represents a vast potential.

FCs should be supervise regularly so that their work can be improved and made
effective and efficient.

The agent should be keep in constant touch with his policy holder to become
aware of the change in his situation including marriage. Death of relatives.
Releases of mortgages.
Any one of them may necessitation some changes like title to policy moneys or
more insurance. The contact conveys a message that agent and company cares for
the policy holder and the family mouth publicity it increase acceptability.

Private insurance companies should highlight that they are managed privately but
completely governed by IRDA.

To capture major chunk of business they need to open moor branches

in sub urban so they can fulfill all need of customer.
Aware should be created among the masses through advertising.

BIBLIOGRAPHY

1. Chawla R. K., Juneja C. Mohan, Saksena K. K. Financial

Accounting
2. Kalyani Publication.

3. Swaroop Gopal, Varshnay P. N. ,

Banking Law & Practice

Sultan Publication.

4. Gupta Shashi. K. , Sharma R. K.

 Accounting For Managerial Decisions
Kalyani Publication.

SIRYA COMPANY PRODUCT