Project Report of

Customers Orientation With HSBC Bank A Case Study

Marketing

Submitted to PIIT 01531

Submitted by Akshay Singh Reg.No.:520750280

PIIT
(A Authorized Learning Center of Sikkim Manipal University)

Power House Road, Bani Park, Jaipur (Rajasthan)

0141-2207773, 2204736 Code No. 01531

Customers Orientation With HSBC Bank A Case Study

By Akshay Singh
A Project Report Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration of Sikkim Manipal University INIDA

Sikkim Manipal University

Of Health, Medical and Technology Sciences Distance Educational Wing Syndicate House

Manipal 576104

I here by declare that the project report entitled

" Customers Orientation With HSBC Bank A Case Study"

Submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration to SikkimManipal University,India, is my original work and not submitted/or the award of any other degree, diploma fellowship, or any other similar title or prizes.

Place: Jaipur

Akshay Singh

Date:

Reg.No.:520750280 The Project Report of

Akshay Singh

Customers Orientation With HSBC Bank A Case Study

Is approved and is acceptable in quality and form.

Internal Examiner
(Name, Qualification & Designation)

External Examiner
(Name, Qualification)

This is to certify that the project report entitled

Customers Orientation With HSBC Bank A Case Study

Submitted-in partial fulfillment of the requirements for the degree of Masters of Business Administration of Sikkim Manipal University of Health, Medical and Technology Sciences. Akshay Singh Has worked under my supervision and guidance and that no part of this report has Seen submitted for the award of any other degree, Diploma, Fellowship or other similar titles or prizes and that the work has not been published in any journal or magazine.

Certified (Guide name and Qualification)

AKSHAY SINGH ACKNOWLEDGEMENT

First of all, We sincerely thank Mr. Pramindar Singh Branch Manager & vice President HSBC BANK, for availing us the opportunity to carry out our Summer Training Project at his esteemed bank branch there by giving us a chance to look more closely into the field of our interest.

Their support and surveillance through out the project stand out as beacon of inspirations to us. We are thankful to our project supervisor Mr. Ashish Garg (Sales Manager) for offering valuable suggestions, encouraging advices, constructive criticism and proper guidance. I would also like to thank Mr. Amit Moses (Relationship Manager retail assets) and Mr. Abhishek Jhawar(Assets sales Manager) and Mr. Devendra Peshwani (Mid Sales officer) for their continuance guidance and furnishing with the in-depth theoretical knowledge.

Road to improvement is never ending. Though we tried our level best and left no stone unturned but lacunas may creep in through loopholes

PREFACE: 1. Introduction of Banking 2. Company Profile 3. Business Capabilities 4. Financial Planning Services 5. Insurance Planning and Risk Management 6. Criti Care 7. Wealth Management 8. HSBCS Loan a) Personal loan b) Home Loan c) Mortgage Loan 9 . Research methodology 10.Comparative analysis 11 .Questionnaire 12 .Swot Analysis 13 .Suggestions & Recommendations 14 .Bibilography

History [Edit] Development Of The Bank Hsbc Main Building, Located In Hong Kong. Hsbc World Headquarters At 8 Canada Square In London, From The Western End Of West India Quayhsbc Holdings Was Established In 1990 And Became The Parent Company To The Hongkong And Shanghai Banking Corporation In Preparation For Its Purchase Of Midland Bank And A Change Of Domicile For The Transfer Of Sovereignty Of Hong Kong. Shares In Hsbc Holdings, Which Gave Hsbc A Substantial Presence In The Uk, Was Completed In 1992. Hsbc Then Moved The Headquarters Of Hsbc Holdings From 1 Queens Road Central, Hong Kong To 10 Lower Thames Street, London In 1993.[6] Major Acquisitions In South America Started With The Purchase Of Banco Bamerindus Of Brazil For $1bn In March 1997[7] And The Acquisition Of Roberts Sa De Inversiones Of Argentina For $600m In May 1997.[8]

In May 1999 Hsbc Embarked On A Major Acquisition In The United States With The Purchase Of Republic National Bank Of New York For $10.3bn.[9] Expansion Into Continental Europe Took Place In April 2000 With The Acquisition Of Crdit Commercial De France, A Large French Bank For 6.6bn.[10] In July 2001 Hsbc Bought Demirbank, An Insolvent Turkish Bank.[11] Then In August 2002 Hsbc Acquired Grupo Financiero Bital, Sa De Cv, Mexico's Largest Retail Bank For $1.1bn.[12] The New Headquarters Of Hsbc Holdings At 8 Canada Square, London Officially Opened In April 2003.[13] Then In September 2003 Hsbc Bought Polski Kredyt Bank Sa Of Poland For $7.8m.[14] A Terrorist Attack Took Place In November 2003: A Bomb Blast In Istanbul Damaged The Banks Head Office In Turkey, Causing Several Deaths And Hundreds Of Injuries.[15] In June 2004 Hsbc Expanded Into China Buying 19.9% Of The Bank Of Communications Of Shanghai.[16]

In The United Kingdom Hsbc Acquired Marks & Spencer Retail Financial Services Holdings Ltd For 763m In December 2004.[17] Acquisitions In 2005 Included Metris Inc, A Us Credit Card Issuer For $1.6bn In August[18] And 70.1% Of Dar Es Salaam Investment Bank Of Iraq In October.[19] In April 2006 Hsbc Bought The 90 Branches In Argentina Of Banca Nazionale Del Lavoro For $155m.[20] In December 2007 Hsbc Acquired The Chinese Bank In Taiwan.[21] In May 2008 Hsbc Acquired Il&Fs Investment, An Indian Retail Broking Firm.[22]

[Edit] Role In Subprime Crisis In November 2002 Hsbc Expanded In The United States, Spending 9bn (Us$15.5bn) To Acquire Household Finance Corporation (Hfc), A Us Credit Card Issuer And Subprime Lender.[23] In A 2003 Cover Story, The Banker Noted "When Banking Historians Look Back, They May Conclude That [It] Was The Deal Of The First Decade Of The 21st Century".[24] Under The New Name Of Hsbc Finance, The Division Was The Second Largest Subprime Lender In The Us.[25]

The

Business

Indeed

Turned

Sour,

Costing

Hsbc

Some

Us$62bn[Citation Needed]. In March 2009, Hsbc Announced That It Would Shut Down The Branch Network Of Its Hsbc Finance Arm In The U.S., Leading To Nearly 6,000 Job Losses, And Leaving Only The Credit Card Business To Continue Operating.[26][27] Chairman Stephen Green Admitted That "Its An Acquisition We Wish We Hadnt Done With The Benefit Of Hindsight"[28]; Analyst Colin Morton Said, "The Takeover Was An Absolute Disaster". [27][29] Although It Was At The Centre Of The Subprime Storm, The Wider Group Has Weathered The Economic Crisis Better Than Other Global Banks. According To Bloomberg, "Hsbc Is One Of Worlds Strongest Banks By Some Measures."[30] When Hm Treasury Required All Uk Banks To Increase Their Capital In October 2007, The Group Transferred 750 Million To London Within Hours, And Announced That It Had Just Lent 4 Billion To Other Uk Banks.[31] In March 2009, It Announced That It Had Made Us$9.3bn Of Profit In 2008 And Announced A 12.5bn (Us$17.7bn; Hk$138bn) Rights Issue To Enable It To Buy Other Banks That Were Struggling To Survive.[32] However, Uncertainty Over The Rights' Issue's Implications For Institutional Investors Caused Volatility In The Hong Kong Stock Market: On 9 March 2009 Hsbc's Share Price Fell 24.14%, With 12 Million Shares Sold In The Last Few Seconds Of Trading.[33]

Corporate Profile

In February 2008, Hsbc Was Named The World's Most Valuable Banking Brand By The Banker Magazine.[34][35] Not Known For Marked Fluctuations In Securities Exchanges Around The World Relative To Its Rivals, Hsbc Is More Well Known In Banking Circles For Its Conservative And Risk-Averse Approach In Its Business Operations - A Company Tradition Going Back To The 19th Century.[36] In Its Technical Management, However, Hsbc Has Recently Suffered A Series Of Headline-Making Incidents In Which Some Customer Data Were Allegedly Leaked Or Simply Went Missing. Although The Consequences Turned Out To Be Small, The Embarrassing Effect On The Group's Image Did Not Go Unnoticed.[37] As Of April 2, 2008, According To Forbes Magazine, Hsbc Was The Fourth Largest Bank In The World In Terms Of Assets ($2,348.98 Billion), The Second Largest In Terms Of Sales ($146.50 Billion), The Largest In Terms Of Market Value ($180.81 Billion). It Was Also The Most Profitable Bank In The World With $19.13 Billion In Net Income In 2007 (Compared To Citigroup's $3.62 Billion And Bank Of America's $14.98 Billion In The Same Period).[38]

Hsbc Is By Far The Largest Bank Both In The United Kingdom And In Hong Kong And Prints Most Of Hong Kong's Local Currency In Its Own Name. Since The End Of 2005, Hsbc Has Been The Largest Banking Group In The World By Tier 1 Capital.[39] The Hsbc Group Has A Significant Presence In Each Of The World's Major Financial Markets, With The Americas, Asia Pacific And Europe Each Representing Around One Third Of The Business. With 9,500 Offices In 86 Countries, 210,000 Shareholders, 330,000 Staff And 128 Million Customers Worldwide, Hsbc Giants. The Hsbc Group Operates As A Number Of Local Banks Around The World. Outlined Below Are Countries Which, In 2007, Generated The Top 20 Profit Before Tax Figures, With The Addition Of The United States As Specific Issues Exclude That Country From The Top 20 For 2007.[40] For Details Of Other Group Companies See Category:Hsbc. Arguably Has The Most International Presence Among The World's Multinational Banking

INTRODUCTION OF BANKING

WHAT IS BANKING Banking in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investments. These deposits can have a distinct feature of being withdrawal by cheques, which no other financial institution can offer. In addition, banks also offer various other financial services. Which includes:y Issuing Demand Draft and Travelers Cheques y Credit Card y Collection of cheques. Bills of Exchange y Safe Deposit Lockers y Issuing Letters of Credit and Letters of Guarantee y Sale and Purchase of Foreign Exchange y Custodial Services y Investment and Insurance services The business of banking is highly regulated since banks deals with money offered to them by the public and ensuring the safety ofthis public money is one of the prime responsibilities of any bank. That is

why banks are expected to be prudent in their lending and investment activities. Every bank has Compliance department,which is responsible to ensure that all the services offered by the banks and the processes followed are in compliance with the local regulation and the banks corporate policies:

y Banking Regulation Act,1949 y Foreign Exchange Management Act,1999 y Indian Contract Act,1872 y Negotiable instrument Act,1881

Banks lend money either for productive purposes to individuals, firm corporate etc. or for buying house property, cars and other durable and for investment purposes to individuals and others. However banks do not finance any speculative activity. Lending is risk taking; having prudent norms for should cover the risk.

BANKING INDUSTRIES IN INDIA Banking in India has its origin as early as the Vedic period. It is believed that the transition from money lending to banking must have occurred even before Manu. The great Hindu jurist, who has devoted a section of his work to deposits and advances and lay down rules relating to rate of interest. During the Mogul period, the indigenous banker played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company it was the turn of the agency houses to carry on the banking business. The General Bank of India was the first joint Stock Bank to be established in the year 1786. The others, which followed, were the bank of Hindustan and Bengal Bank. The bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19th century of East India Company establish three banks; The Bank of Bengal in 1809, The Bank of Bombay in 1840 and The Bank of Madras in 1843. These banks are also known as Presidency Bank which have independent units. These banks were amalgamated on 27th January 1921. With the passing of the State Bank of India Act in 1955 the Reserve Bank of

India Act 1934. In the wake of the Swadeshi Movement, a number of bank with Indian management were estabvlish in the country namely, Punjab National Bank Ltd., Bank of India Ltd., The Central Bank of India Ltd., Indian Bank Ltd., and The Bank of Baroda Ltd. On 19th July,1969 fourteen major banks of the country were nationalized and on 15th April, 1980 six more commercial private sector banks were taken over by the Government. Today the commercial banking system in India may be distinguished into.

PUBLIC SECTOR BANKS State Bank of India & its associate bank called the State Bank Group, 20 nationalized banks, Regional Rural Banks mainly sponsored by public sector banks old generation private bank, New generation private bank. Foreign banks in India, Scheduled cooperative bank, non-scheduled banks. CO-OPERATIVE SECTOR BANKS: The co-operative sector has been developed in the country to supplement the village moneylender. The co-operative banking sector in India is divided into four components: State Co-operative Banks, Central co-operative banks, Primary Agriculture Credit

Societies, Land Development banks, Urban Co-operative banks, Primary Agriculture Development Banks, Primary Land Development Banks, and State Land Development Banks. DEVELOPMENT BANKS:

Industrial

Finance

Corporation

of

India

(IFCI),

Industrial

Development Bank of India (IDBI), Industrial Credit and Investment Corporation of India (ICICI), Industrial Investment Bank of India(IIBI), Small Industrial Development Bank of India (SIDBI), SCICI Ltd., National Bank for Agriculture and Rural Development(NABARD), Export Import Bank of India. NATIONAL HOUSING BANK: The Indian banking can be broadly categorized into Nationalized, Private banks & Specialized Banking Institution. The RBI Act has a centralized body monitoring and discrepancies and shortcoming in the system. Since the Nationalization of banks in 1969,the public sector banks have accrued a place of prominence and have since then seen tremendous progress. Conservative banking practices allowed India banks to be insulated partially form the Asia currency crises, India banks are now quoting all higher valuation as compared to Bank to other asian countries that have major problems linked to huge NPAs and payment defaults. Cooperative

banks are nimble footed in approach and armed with efficient branch network focus primarily on the high revenue niche retail segments. The Indian banking was finally worked up to the competitive dynamic of the new Indian market and is addressing the relevant issues to take on the multifarious globalization. Private banks has been fast on the uptake and in reorienting their strategies using the interest as a medium. The Internet has emerged as the new and challenging frontier of marketing. The large doses of liberalization have largely brought this transformation and economic reforms that allowed banks to explore new business opportunities rather generating revenues from conventional streams i.e. borrowing and lending. The banking in India is highly fragmented with banking unit contributing to almost 55 of deposits and 60% of advances. Indian nationalized banks continue to be the major lender in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The India banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The RBI act has a centralized body monitoring any discrepancies and shortcoming in the system. It is foremost monitoring body in the Indian financial sector. The nationalized banks continue that out of commercial banks operating in India, challenges of

banks are in the public sector and 5 are in the private sector. The private sector bank grids also include foreign bank that have started their operation here. COMPANY PROFILE

HISTORY The HSBC Group is named after its founding member. The Hong Kong and Shanghai Banking Corporation Limited, Which was established in 1865 to finance the growing trade between Europe, India and China. The inspiration behind the founding of the bank was Thomas Sutherland, a scout who was then working for the peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities in Hong Kong and on the china cost and he helped to establish the bank, which opened in Hong Kong in March 1865 and in Shanghai a month later. Soon after its formation the bank opened agencies and branches around the world. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries, In Japan where a branch was established in 1866, the bank acted as adviser to the government on banking and currency, In 1888, it was

the first bank to be established in Thailand, where it printed the countrys first banknotes. From the outset trade finance was a strong feature of the local and international business of the bank, an expertise that has been recognized throughout its history Bullion, exchange, merchant banking and note issuing also played an important part. By the 1880,s the bank was acting as banker to the Hong Kong government and also participated in the management of British government accounts in China, Japan, and Singapore. In 1874 the bank handled chinas first public loan and thereafter issued most of Chinas public loans. By the end of the century and after a strong period of growth and success under the leadership of Thomas Jackson, (chief manager for most of that period from 1876 to 1902) the bank was the foremost financial institution in Asia.

ABOUT HSBC HSBC- The world local bank. Headquarter in London, HSBC in one of the largest banking and financial services organization in the world. HSBCs international network comprises over 9800 offices in 77 countries and territories in Europe the Asia Pacific region, the American the middle East and Africa. With listings on the London, Hongkong, New York, Paris and Bermuda stock exchanges, shares in HSBC holdings are held by nearly 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in form of American Depositary Receipts. Through an international network linked by advanced technology , including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal finance services, commercial banking, corporate, investment banking and markets, private banking and other activities.

Business principles and values The HSBC corporate character defines the values and principles inherent in all our everyday dealings. Group History The HSBC Group has an international pedigree, which is unique. Many of its principal companies opened for business over a century ago and they have a history, which is rich in variety and achievement. The HSBC group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe.

HSBC IN INDIA The antecedents of the HSBC Group in India can be traced back to October 1853 when the mercantile bank of India, London and China were founded in Bombay. Starting with an authorized capital of Rs. 5 million, the mercantile bank soon open offices in London, Madras (Chennai), Colombo and Kandy, followed by Calcutta, Singapore, Hong Kong, Canton and Shanghai by 1855. In 1950 it moved into its new head office building at Flora Fountain. The acquisition in 1959 by the Hong Kong and Shanghai Banking Corporation Ltd. Of the mercantile bank was a decisive factor in laying the foundation for todays HSBC Group. It was founded in 1865 to serve the needs of the merchants of the China coast and finance the growing trade between China, Europe and the United States, HSBC has been an international bank from its earliest days.

After the mercantile bank was acquired by the Hong Kong and Shanghai Banking Corporation, the Flora Fountain building became and remains to this day, the head office of the HSBC Group in India. Through the 1990s the HSBC has vigorously developed its role as one of the leading banking and financial services organization in the

world. Its strategy of managing for value emphasizes the Groups unique balance of business and earnings between older, matures economies and faster growing emerging markets. HSBC in India is proud to have retained the Groups pioneering streak by being an active partner in the development of the Indian banking industry- even giving India its first ATM way back in 1987. The organizations adaptability, resilience and commitment to its customers have further enabled it to survive through turbulent times and prosper through good times over the past 150 years. The Bank has since, steadily grown in reach and service offerings, keeping pace with the evolving banking and financial needs of its customers. In India, the bank offers a comprehensive suite of world-class products and services to its corporate and commercial banking clients as also to a fast growing personal banking customer base. HSBC group in India comprises a number of members, which includes :-

y The Hongkong and Shanghai Banking Corporation Limited y HSBC Securities and Capital Markets (India) Limited y A representative office of HSBC Private Equity Management (Mauritius) Limited

y HSBC Asset Management (India) Private Limited y HSBC Insurance Brokers (India) private Limited y HSBC Private Dealership (India) private Limited y HSBC Electronic data Processing (India) private Limited y HSBC Software Development (India) private Limited y HSBC Operations and Processing Enterprise (India) private Limited y HSBC Professional Services (India) private Limited Currently the Chief Executive Officer, HSBC India is Mrs. NAINA KIDWAI

FACTS SHEET OF HSBC Customers Profit before tax 2006 Total Assets

125 Million

US$ 1,861 Billion

US$ 22.08 Billion

International Network

Offices Worldwide

Employees

82 Countries And Territories

10,000

312,000

y HSBC has a 64% rise in net profit at Rs 846 crore for the year ended March 31,2006 Rs 515 Crore in the previous year. y The banks total income during the year increased 51% to Rs.4720 crore to3130 crore in the ago period. Total Asset increase Rs 54,987 crore from Rs. 37,473 crore.

HSBC invested a further Rs 1,437 crore in the bank 2006-07. The banks capital adequacy ratio is11.06% as on March 31,2007 Comparison 10.61% as on March 31,2006. Banks has invested approximately US$ 1.7 billion to its various businesses Across India. y HSBC has 47 branches and 170 ATM across India. y HSBC is one of Indias leading financial services groups, with over 27,000 Employees. Financial services are: -

o Investment Banking o Capital markets o Asset Management o Insurance broking o Software Development o Global resourcing Operations

y HSBC has the capacity to offer complete banking and to find solution to Indias burgeoning economy. y HSBC has recently launched PRAGATI FINANCE, a CONSUMER FINANCE OFFERING, and is already the second largest loan originator in most of the markets where this product is offered in a short period.

COMPETITIVE STRENGTHS :-

y Wide International network y Comprehensive range of products & services y Long term customer orientation y Quick response times

BUSINESS CAPABILITIES The business capabilities are explained as under :-

Personal Banking:A wide range of personal financial services, including personal lending and deposit products. The Group deploys the latest self-service banking technology , including automated teller machines (ATMs) in each branch and at off-branch locations, 24 hour phone banking internet banking and an extensive branch network. Non-Resident Indian Banking:HSBCs Non-Resident Indian Banking (NRI) provides the international India Diaspora with access to a range of product and services, including NRI-related inverstments, transactional and deposit products, and a full range of personal and private banking products. Corporate banking:-

HSBC has well-established long-term corporatebanking relationship with large domestic corporations and multinational operating in India. Services inclide term and working corporate deposits, syndications, payments and cash management services and factoring. Equities and corporate finance services. Business Banking:Business banking services provide small and medium sized

enterprises (SME) with a suite of products and services which can be classified into two categories. Business Vantage offers customers with larger businesses an exclusive range of services and benefits and Business Select offers a full range of commercial services including a dedicated relationship manager. Factoring:HSBC has a full range of domestic and intenational factoring products offering flexible structures, together with payments and cash management services to provide seamless supply and delivery to corporate. Global Payments and cash Management:HSBC provides integrated domestic and regional transaction support to corporate clients through a sophisticated range of global

payment and cash management solutions, including collection and payments and cash management solution including collection and payment services and integration with customer back-end systems. Operation and client services are ISO 9001-2000 certified. HSBC net, the groups dedicated electronic banking service, allows users to perform financial transactions, obtain international financial markets information, and review details of their domestic and international accounts. From anywhere in the world. 24 hours a day. Trade Services:A wide range of solutions tailored to meet customers requirements for both domestic and international businesses is offered. HSBC is the leading provider of trade services in India and its trade centers are ISO 9002 certified. Institutional Banking:Working closely with Group offices in India and overseas, a range of corpotate banking services is offered to banks, financial institutions, securities houses, insurance companies, asset management companies and other nonbanking companies, nongovernment and development organizations operating in India.

Treasury and Capital Markets:Client consistently rate HSBCs treasury business as one of the best in India. Its dealing room in Mumbai is one of the largest in the country, serving clients in Mumbai and in the major metropolitan centers across the country. It provides a comprehensive range of products which include foreign exchange, money market and fixed income products and derivatives in both rupees and major currencies.

Securities Services:The leading regional sub-custody and securities clearing provider, HSBC Securities Services, operates across 32 markets in Asia-Pacific, the middle East southern Europe and Latin America. Investment Banking:HSBCs institutional broking services are based in Mumbai with seats on two of Indias premier stock exchange the National Stock Exchange and the Bombay Stock Exchange A full range of interated

investment banking services is available from the Groups offices in Mumbai and New Delhi. ADC Additional Delivery channels:Additional Delivery Channel is that medium through which banking transactions can be done conveniently & promptly. Instead of using the traditional way of doing banking like standing in the queue for knowing the balances & the account transaction history , making request for address change etc. this channel offers the facility of banking at anytime of the day from the comfort of the home, offece, or from anywhere in the world. The main advantage of conducting transaction using ADC is the saving in the precinus time of the consumer & the effort that is put into by the customer of providing its customer service to the customer. Also as per the calculation Rs. 55 (approx) is spend on a customer when he walks doen to the bank using ADC helps in making it a more cost effective medium. It can also be referred as TECHNOLOGY BANKING,

Medium of ADC are: AUTOMATED TELLER MACHINE (ATM): Instead of standing in queues customers can access their accounts through ATMsWith the help of the Debit card/ credit card & its PIN number the customer can access his accounts & can perform following transaction: 1. Cash withdrawal up to Rs. 50000 per day 2. Cash deposit 3. Transfer of funds within HSBCs account up to Rs. 100,000 per day. 4. Balance enquiry 5. Cheque book request 6. Changing of personal identity number (PIN) 7. Request for mini statement Internet Banking :Our website link is www.hsbc.co.in Online@hsbc:

Internet banking provides complete control over all banking transactions from ones PC thats the power of online @hsbc. This facility lets a customer bank online, when & where it suits him. Wherever a customer may be in the world he can access his accouts in India 24 hours a day, 7days a week. The Registration Process:-

Registering for online@hsbc is a simple one-time activity, which is done instantly. Any one combination from the following is required: 1. 10 digit personal banking number (PNB) & 6 digit phone banking PIN. 2. credit card number & credit card PIN 3. ATM/debit card number & ATM/debit card PIN Phone Banking :Phone banking for fast & convenient banking. One can carry out a whole range of transactions with utmost ease from his office, home, from anywhere. Thus it provides the customer with the ability to find out the details of the account any time of the day or night. Phone banking has been provided with an interactive voice response facility tailored to your accounts. Once the customer is familiar with the system, he has the choice of banking at his own pace, without waiting

for the prompts. If there is any problem, at any time during the transaction, friendly phone banking officers are there for on hand to assist them. Getting connected to Phone Banking:-

To use Phone Banking 10 digit phone Banking number (PBN) or 16 digit Credit Card number & 6 digit Phone banking personal identification number (PIN). To maintain confidentiality & security, these are sent to the customer separately. Accessing Phone Banking is really simple. First dial citys Phone Banking telephone number, and then select an option from the main menu. This will prompt one to key in his phone banking number or credit card number & phone-banking PIN. Features and Benefits of Phone Banking:-

y View balance enquiries & account transaction histories y Transfer money between accounts within HSBC in India y Create standing instructions for regular payment within the bank. y Report loss fo ATM/Debit card y Order/request for cashiers orders & demand draft. y Open a fixed deposit, renew or change maturity instructions on existing fixed deposit

y Use other services like stop cheque, request for an account statement, order a cheque book & enquire about TDS on deposits y Send & receive secure messages from the bank y Request for E-statements for the account y Payment of utility bills & premium of insurance policies . y Request for interim statement of account/TDS or interest certificate/ de-mat account details. y Change of Phone Banking PIN number.

Debit Card:-

The debit card gives the clectronic assess to savings account or current account with HSBC. It thus provides the best possible alternative to carrying cash & allows almost unlimited access to the account, anywhere & anytime. Features of debit card are:-

1) The card can be used internationally at over 10mm merchant outlets & 850,000 VISA ATMs, which is Free of charge. 2) Cash withdrawal limit is Rs. 50000 per day. 3) Fund transfer limit is Rs. 100,000 per day.

4) The customer can do shopping worth Rs. 15000 in a day.

CREDIT CARDS:-

HSBC S credit card is designed to complement the lifestyle of the customer & is a symbol of recognition & status across theglobe. Privileges for HSBC s credit card holders are:1.Worldwide acceptance at over 18mn establishments & over 100,000 establishments in India. Free credit period up to 48 days on purchases without any finance charge being levied to the account. Extended credit facility by buying now & paying a minimum of 5%. Accessing the bank account with the HSBC s credit card, it includes a) Cash withdrawal b) balance enquiry c) transfer of funds d) statement request (in India only) e) cheque book request (in India only)

2. Credit shield extension i.e. the insurance privilege provides a waiver of payment of outstanding on the credit account up to Rs.40000 in the event of accidental death. 3. Bonus reward programme in which the customer get 1 reward point for every Rs100, these get accumulated then can be redeemed against credit card renewal fees, merchandise & merchant vouchers. 4. Petrol surcharge waiver for customer who use HSBC credit card on spends between Rs.400 & Rs.2500 per transaction on petrol in any city at any petrol pump in India. 5. HSBC in association with International Travel house provides the facility of a one stop travel shop to service all travel needs of customer, it includesa) 3.5 & off on all domestic airlines tickets & a 5% off on all international airlines ticket. b) 5% off on all international & domestic leisure packages c) 10% off on car rentals at domestic location d) 20% off on room rack rates at premium hotels across the Country. 6.One can try for 3 additional cards for spouse, for parents, brothers and children above 18 years.

7.phone banking and Internet banking facilities are available 8.cash withdrawal limit is 40% if credit limit. Extra facilities available to Indian credit cardholders at HSBC ATM are: 1. Transfer of funds to HSBC saving/current accounts. 2. Credit-card account balance enquiry. 3. Minimum payment due enquiry. 4. Deposit cash or cheque for credit-to-credit card account 5. PIN change. 6. Request for latest credit card statement.

TYPES OF CREDIT CARDS

Gold Credit Card

Classic Credit Card

Eligibility& requirement for making the credit cards:-

S.NO 1 2 3 4

Parameters Minimum ITR Credit Limit Annual Fees Annual fees for add on card

Gold Credit Card Rs.150, 000 Rs 50,000 to 200,000 Rs 1000 Rs500

Classic credit Card Rs.72000 Rs.15000 to 50,000 Rs 700 Rs 350

Documents required are: 1. Income Tax Return (ITR). 2. Identity proof like PAN card. 3. Address proof like driving license etc. 4. In case of self employed photocopy of other banks credit cards, which should be 6 months old, is also required.

Financial Planning Services

DEFINITION OF FINANCIAL PLANING:-

Financial planning is the process of solving financial problems and achieving financial goals by developing and implementing a personalized GAME PLAN. In order to be effective this PLAN must take into consideration an individuals overall picture. It must be:

 Coordinated  Comprehensive  Continuous Financial planning is like all other phases of life. It involves choices: 1. Spend now or save for later? 2. Pay off existing bills or increase retirement savings?

A true financial plan does not focus one aspect or product, but instead seeks to take all areas of planning into consideration when making financial decisions. FINANCIAL PLANNING INCLUDES:  Cash Flow Management: This aspect of planning deals with the day to day allocation of income; and its effective use in paying for current living expenses and in accumulating assets which will be used in meeting financial goals.

 Tax Planning and Management: This area focuses on the understanding of and application of federal and state income tax law, estate and inheritance taxes; and when possible, minimizing these taxes.  Risk Planning and Management: This area of planning deals with the risk of losing and strategies.  Investment Planning and Management:

Almost everyone has accumulation goals for which investment must be made and managed. These could include buying a home; planning for college; or providing for retirement.

INSURANCE PLANING AND RISK MANAGEMENT

INSURANCE PLANING AND RISK MANAGEMENT Risk management is cornerstone of any financial planning effort. It makes no difference how elaborate or effective the investment portfolio, the retirement plan, or the estate plan, if one has not taken the necessary steps to eliminate risk, all remaining efforts could be pointless. Risk management through the wise use of insurance removes the concern for the unknown from a financial plan.

TECHINIQUS OF MANAGING RISK

There are four basic techniques for managing risk: -

 Risk avoidance: - This involves the avoidance of exposure to Either by not owing specific property that could be exposed to loss, or by not engaging in a specific activity, which could create liability.

 Risk reduction / Loss Management and Control:- This technique involves lowering the probability of a particular hazard by taking some positive action.

 Risk Assumption/ retention:- This technique involves the acceptance of the risk. Generally this technique should be used only when the potential exposure is very small or has a low probability of occurrence.

 Risk transfer: - This technique almost always involves some form of insurance. The risk of a particular hazard is transferred to another entity in exchange for a payment of premium. This progress also involves the determination by the insurer of whether or not the risk to be assumed is acceptable at the given premium. This process is known as the UNDERWRIITING process.

INSURANCE DEFINNITION OF INSURANCE:-

Insurance is a form of risk management primarily used to hedge against the risk of potential financial loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium and duty of care. Types of insurance: Any risk that can be quantified probably has a type of insurance to protect it. Among the different types of insurance are:

y Automobile insurance:- also known as auto insurance, car insurance is probably the most common form insurance and may cover both legal liability claims against the driver and loss of or damage to the vehicle itself.

y Financial loss insurance:-

Protects individual and companies against various financial risks.

y Health insurance: - covers medical bills incurred because of sickness or accidents.

y Liability insurance:- covers legal claims against the insured.

y Life Insurance:- provides a cash benefit to a decedents family or other designated beneficiary ,and may specifically provide for burial ,funeral and other final expenses.

y Marine Insurance: - covers the loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, etc, but excluded losses that can be recovered from the carrier.

y Property Insurance:- Provides protection against risks to property, such as fire, theft or weather damage.

y Travel insurance: - is an insurance cover taken by those who travel abroad, which covers certain losses such as medical expenses, lost of personal belongings, travel delay, personal liabilities etc.

y Workers compensation insurance: - replace all or part of a workers wages lost and accompanying medical expense incurred due to a job related injury. Types of insurance companies:-

Life insurance companies

Non- life or general insurance

How an insurance company makes money Profit=Earned premium+ Investment Income-Incurred loss-

underwriting expenses.

Determination of rate structures: The insurer uses actuarial science to quantify the risk they are willing to assume. Data is generated to approximate future claims, ordinarily with reasonable accuracy. Acturial science uses statistic and probability to analyze the risks associated with the range of perils covered, and insurers, in conjunction with, use insurers in conjunction with additional factors, to determine rate structures.

CRITI CARE (NOW YOU CAN ENSURE THAT YOU ARE) What is Criti Care? Criti care is a critical illness insurance policy, which ensures that you are able to concentrate on getting back to good health, and not burdened with arranging money to meet the high, unexpected medical expenses associated with a critical illness. It is group insurance policy from Tata AIG general insurance company Ltd that provides you with coverage for a set of 11 critical illness and surgeries.

y Easy enrollment into the policy Criti care is the only medical policy that does not have mandatory tests that one needs to undergo at the time of enrollment. This policy rests on the premise of providing you ease and assurance at every step and hence, makes the usually tedious task of enrolling into a policy extremely simple and easy. Any HSBC Customer between the age of 18 years and 60 years at the time of

entry into the

plan can apply. The coverage can be

availed on renewals till the age of 64 years.

y Full policy cover based only on diagnosis Unlike most of the other medical insurance policies, with Criti care, you can claim the full policy cover based only on the diagnosis of your illness. Policy terms and conditions:-

1. There are 6 coverage levels available from Rs 2.5 Lakhs to RS.15 lakhs. 2. You dont have to submit proof of medical expenses for treatment of the illness. What are the advantages of Criticare?

1. Widest illness coverage Criticare is the only policy of its kind in India to provide you an insurance cover for11 critical illness, which can afflict people Most often. These include:-

S.no Disease 1 2 3 4 5 First Heart Attack Stroke Cancer Bypass surgery Kidney failure

S.No Disease 7 8 9 10 11 Coma Major burns Multiple Sclerosis Paralysis Total blindness

2. Provides an insurance benefit cover, not reimbursement Criti care provides an insurance cover, which you can claim once you are diagnosed with a critical illness and provide the proof of the same. 3. SECOND OPINION: - when diagnosed with a critical illness, one wants to be completely sure and may want to seek a second opinion both on the diagnosis and the prescribed treatment. This is where Criti care is the only policy, which offers you a unique opportunity to take a second opinion on your illness, from a panel of expert doctors in the USA. Tata AIG S second opinion agency will transfer your medical reports and diagnosis to a special panel of doctors in the USA who will review your case and give an independent opinion on the diagnosis

and line of treatment. This benefits is only available if the diagnosis pertains to one of the 11-covered critical illness in this plan. 4. Other advantages of Criti care: a. Criti care offers you guaranteed acceptance up to the age of 60 years. b. Easy procedures and simple documentation. c. The premium paid under Criti care (up to Rs 15000) is exempt from income tax under sec 80D of the income tax act. What does it cost me to take the criti care protection? While we hope that you do not suffer from any critical illness, all you need to do is out aside a small, regular sum of money today. It will give you the reassurance of financial security should you be diagnosed with a critical illness.

INTRODUCTION TO WEALTH MANAGEMENT Wealth Management is an all-inclusive set of strategies that grow, page, protect, and distribute assets in a planned and integrated manner. It is about planning not just for today but also for generations to People sometime confuse asset management or financial management with wealth management. However, professional asset management to

achieve financial goals is only one important component of a larger tapestry of total wealth management that comprises:  A comprehensive investment strategy that balances prudent risk tolerance with best-in-class investment vehicles to achieve your financial benchmarks that support your important lifestyle goals.  Tax planning to ensure you pay the minimal taxes required to help retain and increase your personal wealth.  An estate planning strategy to create a structure to distribute assets according to your wishes.  Estate management to provide objective administration of your funds ensuring responsible distribution and protection of your overall estate.  A philosophy of pro-active, forward-looking planning that recognizes that as your estate grows and changes, you require having a team of professionals constantly reviewing the tax, estate, and financial implications of those changes for you.

WEALTH MANAGEMENT TECHNOLOGY Wealth management technology is a combination of hardware and software that has emerged to help financial institutions deliver these services in an effective and cost-efficient way. As many of todays most progressive institutions strive to deliver wealth management services to the growing market of mass affluent, new technologies have emerged to make the task easierand boost enterprise wide profits at the same time. The financial services industry has seen a recent evolution in the pursuit of higher retention and profitability. Dubbed the new wealth management, this business model is a modern take on traditional wealth services. Institutions that have invested in wealth management technology are reporting increase in assets per customer, lower costs associated with acquiring new business and significant reductions in customer-attrition rates. Those using customer-centric wealth

management

technologies

are

reporting

improved

customer

satisfaction and enhanced individual customer profitability.

WHO IS A WEALTH MANAGER? A wealth manager differs from a financial advisor in being able to offer affluent clients a complete menu of products and services and incorporating them into an ongoing investment plan. Investment expertise is important, but so is advice about advanced planning, insurance and charitable giving. Wealth managers have to build a professional network of specialists CPAs, estate attorneys- that they can bring in to answer questions and shape solutions. A wealth manager has to oversee the network, knowing whom to bring in and when. In fact, running the network is in many ways more challenging than putting the plan together. A wealth manager finds a solution that not only meets the clients long-term need for income but also dramatically increases the amount of assets under management. In short, by thinking like a wealth manager instead of an investment advisor, a registered rep could actually end up with more money to manage.

SCOPE OF WEALTH MANAGEMENT IN INDIA India will become a highly important market for wealth management because wealth managers both domestic and international are able to establish the beginnings of a market with few obstacles, relative to the other emerging markets. Where there are regulatory restrictions, these are less problematic than those in China or the Middle East. It is highly likely that over the next twenty years wealth management will witness significant development in the way that clients are segmented. Following from this, client service will change to complement the shift in emphasis, as factors other than the level of the clients well are taken into consideration. Data monitor research indicates that there are significant benefits in the area of liability management for the wealthy, and that the importance of liability management as part of wealth management will inevitably grow over the next 20 years, until it becomes a key service area.

WEALTH MANAGEMENT SERVICES

INVESTMENT PLANNING

FINANCIAL PLANNING

WEALTH MANAGEMENT SERVICES

REAL INSURANCE PLANNING ESTATE PLANNING

DETAIL ANALYSIS OF HSBC WEALTH MANAGEMENT

HSBCs Wealth Management Services offer you a reliable partnership that takes care of all requirements. The services of HSBC wealth management includes: 1. HSBC Premier 2. Power Vantage 3. Financial Planning Services 4. Business Select 5. Mutual Funds PREMIER ACCOUNT:your personal and business banking

HSBC Premier offers global recognition, a range of exceptional privileges and benefits and world-class rewards. HSBC Premier anticipates financial needs and supports all financial requirements wherever the premier customer is in the world.

Global Privileges and round-the-clock services

As a HSBC Premier customer, an experienced HSBC Premier Relationship manager is assigned to the customer whose aim will be to fulfill all banking and investment needs of the customer. HSBC Premier welcomes at over 9500 offices in 79 countries and territories. As an HSBC Premier customer, he can access dedicated HSBC Premier Centers around the world designed with customer needs in mind; whether it is cash in a foreign country or respite from hectic day.

Eligibility norms for being a premier customer are A) Resident of India with a minimum relationship value of Rs. 25 lakhs held in a combination of deposits, investments and loans with a minimum of Rs. 20 lakhs held in a combination of deposits and investments.

B) Non Resident Indian with a minimum relationship value of an equivalent of Rs. 25 lakhs in deposits.

POWER VANTAGE ACCOUNT (PVA)

Power vantage account entitles the customer to exclusive attention and many reserved privileges. The customer has to maintain an average quarterly balance of Rs. 1, 00,000 in it. Special benefits to PVA account holders are:  Overdraft limit is available to the customer up to 90% of the amount of the fixed deposits done in savings account.  Free quarterly account statement. Higher frequency statements available at a nominal fee.  Free personalized cheque book with cheques payable at par (CPP) in all cities where HSBC has branches.  Financial Planning Services to assist in planning future investments and insurance needs.  ATM access wide ATM network in India to access your Savings Account. One can use the ATMs to: Withdraw Cash, Transfer

Funds, Deposit Cheques and cash, Request for a bank statement, cheque book or mini statement and check balances.  A Debit Card to make purchases at 25,000 merchants establishments in India and at 10 million across the world. One can also withdraw cash from over 1,800 HSBC/VISA/Plus ATMs in India and from over 670,000 across the world.  Higher cash withdrawal limit of Rs.50, 000 and funds transfer up to rs.100, 000 with Power Vantage Debit Card.  HSBC Credit Card can also access a customers Savings Account at HSBC ATMs throughout the world. This allows him to perform Banking transaction like cash withdrawals, balance enquiry and transfer of funds.  HSBC Credit card customer can also withdraw cash from their HSBC Savings Account at any of our VISA /Master Card ATMs worldwide.

FINANCIAL PLANNING SERVICES:-

The continuous inflation, falling interest rates and fluctuating market conditions require one to plan his /her finances carefully. HSBCs Financial Planning Services offer assistance to secure the future. It helps to celebrate important occasions in the future by managing your wealth well now. The Financial Planning Services are available for existing HSBC customers and are free of cost.

BUSINESS SELECT ACCOUNT:At HSBC it is understood that running a business takes time, money and planning. Thats why, each one of the products and services, is designed to give the maximum value with minimum paperwork and work.

A premium service is designed to look after all businesses and personal needs of the customer. Financial services, wealth management solutions, personalized banking and most importantly, the recognition as a business select customer, deserved by the customer. FEATURES:1. An exclusive Relationship Manager Business customer. He looks for the cash management solution, the right equities to invest in, or simply cash pick-up and delivery from customers business premises. 2. Preferential Pricing on Trade Services select provides with a personal Relationship

manager, dedicated to understanding financial needs of the

HSBC offers local expertise and global reach in handling trade business, including a complete range of services that would facilitate in export and import. These include DC Confirmation, Export Bill Negotiation, Documentary Collection and Remittances.

3. Preferential Pricing of Foreign Exchange Rates With HSBCs global network, it ensures that foreign exchange transactions are seamless but also provide preferential rates on all foreign exchange remittances routed through the bank 4. Smart Money Account With the Smart Money Account, make fixed deposits and avail of an overdraft against the fixed deposits at attractive rates. 5. FREE Cashiers Orders payable at any branch in India. 6. No Bounce Check Protection.

7. FREE Internet Banking for Businesses. 8. FREE Business Phone Banking. Business Doorstep Banking. Cash, cheques and drafts can be picked up from or delivered to the office. Absolutely free of cost. 9. FREE special ATM card to withdraw up to Rs. 2 lakhs per day and accessing through a wide network of over 150 HSBC ATMs in India.

Eligibility :Business select accounts need to maintain an average quarterly balance of INR 1000000. MUTUAL FUNDS HSBC offers investment options in funds that meet the selection criteria and fit the requirements, helping us to create and increase our wealth potential in the long term scenario. FEATURES:1. Constant new opportunities Fund managers identify and maximize opportunities for the investments to grow with the help of critical information from leading economist and analysts. 2. Reduced risks - While expanding portfolio, Mutual Funds helps to reduce the overall investments risk by diversification of investment. 3. Speedy access to money As Mutual Funds can be bought and sold on any dealing day (which normally

means weekdays), one can get easy access to his/her money at short notice. 4. Affordability Because of its large corpus, even a small investor can benefit from its investments strategy. 5. Tax benefits one can get tax benefits on treatment of long term capital gains. 6. Low costs the benefits of scale in brokerage, custodial and other fees translate into low cost for investors. 7. Regulated for investor protection The Mutual Funds sector is regulated to safeguard the investors interests.

HSBCS LOANS The financial bridge to your dreams

To cross the gap and fulfill our dreams, borrowing is a financial bridge that most of us use at one time or another. At HSBC, we understand this human need for personal finance. Our worldwide presence has enabled us to create a credit safety net for Millions of customers. Allowing them to cross the divide to their dreams, be it personal desires, professional enhancement. .

A loan product from HSBC is: -

1. PERSONAL LOAN

2. HOME LOAN

3. LOAN AGAINST PROPERTY (MORTGAGE LOAN)

PERSONAL LOAN PERSONAL LOAN:-

MAKING YOUR DREAMS COME TRUE Benefits of Personal loan:-

y Loans are available for salaried, for self employed professionals and businessmen . y Flexible loan tenure of up to 4 years (i.e. 12,18,24,36,42,48, months)

y Loans available from a minimum of Rs 50,000 up to a maximum of Rs.500,000

y Easy monthly repayment through equated installments (EMIs) with either Post-dated cheques or direct or direct debit to your bank account with HSBC.

y Transfer of an existing personal loan from another bank to HSBC, at attractive interest rate.

y Existing HSBC customers (for 6 months or more) are entitled to special relationship discounts on processing fees.

y No collateral/guarantor required. y Easy documentation and quick disbursal. Personal loan can be used for :-

y Purchasing of consumer durables or equipment. y Home related expenses. y Retiring other debts. y Education or marriage expenses. y Holiday travel. y Purchasing a car or a two-wheeler.

y Investment in new share issues or in secondary markets. y Top up loan y Loan available for business or expansion purpose.

. Eligibility for personal loan

Particulars

For Salaried individuals

For Self Employed Individual

Minimum age of the applicant/guarantor 21 Years 21 Years

Maximum age of the applicant /guarantor 58 Years 65 Years

Minimum years in continuous employment /business 1 years 2 years

Minimum net annual income

Rs. 75000 p.a (including coapplicant income)

Rs. 75000 p.a(including coapplicant income)

Minimum stay at current Residence

1 Year

1 Year

NOTES:-

y Maximum loan amount of Rs.5, 00,000 for Mumbai applicant and Rs. 4, 00,000 for applicant of other cities.

y All loans are granted at the sole discretion of the HSBC India. Loans available for applicant residing in the municipal city limits of cities where HSBC has branches.

HOME LOAN Flexible enough to suit your changing needs Bene

Benefits of home loan:-

y Loan up to 2 crores. y Loan tenor up to 25 years. y Interest calculated on monthly Reducing balance. y Option to choose between fixed and floating interest rates.

y Loans to self employed individuals, professionals and businessman.

y Loans up to 90% including stamp duty and registration charges.

y Loans on amenities agreement.

y Loans for under construction property. y 24-hour Phone Banking. y No post dated cheques required. y Free unlimited cash access at 2500 VISA ATMs in India through the Debit card.

Particulars Maximum loan Amount(Rs.) Maximum loan Tenor(in years) Interest rate Calculated On balance Processing Fees

Resident Indians 20,000,000

Non resident Indians 20,000,000

20

15

Choice between fixed and floating interest rate Monthly reducing balance Monthly balance .5% .5% reducing

Pre payment charges

For pre payment up to 25%of the loan amount in a financial year For pre-payment of over 25%of the loan amount 2% of amount exceeding 25% Nil

Home loan can be used for:-

Ready for - occupation property.

Approved under construction property.

Self construction.

Home improvement.

Eligibility Norms: -

S.No. 1. 2. 3.

Particular Age Work Experience Minimum Income

Salaried 21 to 58 years 3 years 1,50,000

Self -Employed 21 to 65 years 3 years 1,50,000

Documents

S.No. Photo Identity (any one) 1. 2. Passport Voters identity card 3. 4. 5. 6. Driving License Photo ration card Photo PAN card Defence identity card 7. Government identity card 8.

Proof of Residence (any one) Passport Voters identity card

Proof of Age (any one) Passport Voters identity card

Driving License Photo ration card Telephone bill Electricity bill

Driving License Photo ration card Birth certificate Life insurance policy

Society outgoing bill

Life insurance policy

financial document required: -

S.No.

Particular

DOCUMENTS Latest salary slip & Form 16 OR ITR& bank

1.

Salaried

Statement for last six months.

Computation of income for the last two years 2. Self Employed OR P&L & Balance sheet for the last two years &ITR of last two years &bank statement for last six months. Computation of income for the last two years OR P&L & Balance sheet for the last two 3. Partnership years&ITR of last two years & partnership deed& letter of authority & bank statement for last six months& proof of office.

Computation of income for the last two years OR P&L & Balance sheet for the last two 4. Private Ltd. com years&ITR of last two years& memorandum &Articles of association & board resolution &bank statement for last six months& proof of office.

Categories of home loan

HOME LOAN

Standard Home Loan

Smart Home Loan

My Home Loan

PRODUCT 1: - STANDARD HOME LOAN

FEATURES AND BENEFITS: -

1.Loan ranging from 7 lakhs to 2 crore. 2.Loans provided for ready property, under construction property, selfconstruction and Home improvement. 3. Interest rate 12.25%. 4. Loan tenor 25 years. 5. Debt to Income ratio (DIR) varies from 85% to 90%. 6. Loan to value ratio (LVR) varies from 75%to 85%.

PRODUCT 2: - SMART HOME LOAN

Features and Benefits: Save up to 50% on interest payments With every smart home, the customer gets a current account. All he needs to do is put his usual savings, from other accounts, into the smart home Account depending on the saving the customers puts into the smart home account, He can reduce the quantum of interest paid by up to 50% Interest rate 12.50%. Along with a smart Home, customers get access to an HSBC PVA account, with the following benefits: -

y Free access to 15000 VISA, ATMs across India, with your power vantage debit card. y y y Free cheque payable at par facility. Financial planning service. Loan tenor up to 25 years.

Comparison between Standard and Smart home loan

S.No

Particular

Standard Home Loan (12.25%)

Smart Home Loan (12.5%)

1.

Loan amount

10 Lacs

10 Lacs

2.

Rate of Interest

12.25%

12.5%

3.

EMI Extra amount

11186

11531 2000

4.

Loan Tenor

240

240

5.

Total Interest repaid

1684555

959860

6.

Actual Repayment period

240

145

7.

Saving in interest

724695

Calculated on 10 Lacs @ 12.5% for 25 years

7.24 16.85 240

95

9.59 Saving in Interest 43%

145 Saving in Tenor 39%

Product 3:- My home Loan(control your EMI)

y A unique that lets the customer control his EMI. y You can pay up to +/- 15% of your EMI on an annual basis. y EMI flexibility- right through the loan tenor. y No increase the loan tenor despite lower EMI repayments. y Available for resident and non- resident Indians. y Available for ready and under construction property. y Loan up to tenor of 25 years.

Advantages and benefits: -

y You can contract a higher EMI, but have a option to pay less. Lets you control your EMI.

Allow you to plan for life without any compromise.

Comparison between Standard and My home loan: -

Standard Home Loan

My Home Loan

Year EMI 1 2 3 4 5 6 7 8 9 10 15 20 24 25 10904 11132 11366 11608 11857 12114 12379 12655 12940 13238 13549 13928 14525 17569 Year 1 2 3 4 5 6 7 8 9 10 15 20 24 15% lower 9268 9461 9661 9866 10078 10906 10522 10756 10999 11252 11517 11838 11838 15% higher 12539 12801 13071 13348 13635 13930 14236 14552 14881 15224 15581 16016 16074

Calculated on 10 Lacs @ 12.5% for 25 years

LOAN AGAINST PROPERTY (Discover the value of your home)

Silent Features:

Loan Tenor Interest rate type Collateral Pre-payment charges

1 to 15 years Floating

Residential property NIL- up to maximum of 25% of your outstanding loan once every financial year. For amount in excess of 25% a pre- payment charge of 2% shall be levied.

Banking Benefits: -

y Free unlimited cash access across 10,000 VISA ATMs in India through free debit card.

y Free cheque payable at par facility. y Dedicated service desk and teller counters.

Eligibility: -

Particulars Net Income (Rs.)

Resident Indians 1,50,000 p.a

Minimum Age (in years) Maximum Age (in years)

21 years 58(salaried) 65 (self employed)

Minimum loan amount (Rs) Maximum loan amount (Rs) LVR(Loan to valuation ratio)

2,00,000 20,000,000 Up to 65%

ocuments

S.No.

Photo Identity (any one)

Proof of Residence (any one) Passport Voters identity card

Proof of Age (any one) Passport Voters identity card

1. 2.

Passport Voters identity card

3. 4. 5. 6.

Driving License Photo ration card Photo PAN card Defenses identity card

Driving License Photo ration card Telephone bill Electricity bill

Driving License Photo ration card Birth certificate Life insurance policy

7.

Government identity card

Society outgoing bill

8.

Life insurance policy

Research Methodology

Research is an academic activity. It is an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. Research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. The data for the project study is being collected through various sources as Primary Data and Secondary Data. Primary Data: These are those, which are collected afresh and for the first time and thus happened to be original in character. We collected primary data during the course of doing experiments in an experimental research but in case we do research of the descriptive type and performs surveys whether sample survey or census, then the primary data can be obtained either through observation or through direct communication with respondents in one form or another through personnel interviews. The source of primary data in the research work was: Questionnaire

 Interviews Secondary data: These are those, which have already been collected by someone else and which have already been passed through the statistical process. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. In this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data.

The source of secondary data in the research work was:  The annual report of the company

Sampling is the selection of some part of an aggregate or totality on the basis of which a judgment or inference is made. It is the process of obtaining information about-an entire population by examining only a part of it. In most of the research work and surveys, the usual approach happens to be to make generalizations or to draw inferences based on samples about the parameters of populations from which the samples are taken. Thus the researcher quite often selects only a few items from the universe for the study purposes. All this is done on the assumptions that the sample data will enable to estimate the population parameters. The items so selected constitute what is technically called sample, their selection process or technique is called sample

design and the survey conducted on the basis of sample is described as sample survey.The sample of the research process consists of the customers of the lifeinsurance companies. No specific sampling procedure was followed. The analysis of data involves a number of closely related operations, which are performed with the purpose of summarizing and organizing the collected data. ..

It means the computation of certain indices or measures along with searching for patterns of relationship that exist among the data groups. Analysis in case of survey or experimental data, involves estimating the values of unknown parameters of the population and testing of hypothesis for drawing inferences. In the project the data is analyzed with the help of graphs which depicts the position of current account.

COMPARATIVE ANAYLSIS

Particular

HSBC

ICICI

Standard Charted

IDBI

HDFC

Loan Amount

7 Lacs, to 2 Crore

1 Crore

50 Lacs

50 Lacs

50 Lacs

Interest Rate

12.25 %

14%

12%

13%

13.25%

Tenor (in years)

25

20

25

20

20

LVR (Present Value )

85%

90%

80%

90%

85 to 100%

DIR

85 to 90%

85%

80%

85%

80%

Processing Fees 0.5% of Loan amount

1%

1.25%

1%

1%

Age (Years)

21-65

60

60

60

60

QUESTIONNAIRE

1) WHERE ARE YOU CURRENTLY BANKING?

a) Nationalized bank c) Co-operative Bank

b) Private sector Bank d)No where

(d) (c)

(b)

(a)

2)ARE YOU SATISFIED WITH YOUR PRESENT BANK?

a)Yes

b)No

(b)

(a)

3)Which additional would you prefer to avail? Are you aware of the services offered by the HSBC Bank Ltd.?

a) Insurance c) Locker e) De-mat g) Mutual Funds

b) Internet Banking d) 24 hour ATM f) Loans

(e) (f) (d) (c) (g) (b)

4)What are the different types of loans your bank is providing? a) HML c) Mortgage Loan (b) b) Personal d) Other

(a)

(c) (d)

5) Would you like any of our executive to brief you about bank details? a)Yes b) No

(b)

(a)

SWOT ANALYSIS

STRENGTHS:

1. The withdrawal limit provided by the Bank (Rs.2 lakh) is the highest. 2. All the branches of the HSBC Bank are interconnected, which give the unique facility of anywhere banking. 3. All the operations of the bank are carried on with the help of computers. Thus all the transactions and services can be carried out with the greater efficiency and speed. 4. Excellent customer care is being taken. 5. Bank provides the facilities of Doorstep Banking to all customers. 6. Small queue at cash counters and faster services even in morning hours.

7. Utilizing the scope in forex department to a greater extend by increasing its business volume by exploring export segment. (As Jaipur is leading exporter of colored gem stones).

WEAKNESS: 1. Less awareness among general masses. 2. Peoples faith in private bank is still not very high. 3. Less number of branches in India as compared to other banks. 4. Only one ATM in Jaipur (located at the branch). 5. High charges on non-maintenance of minimum average quarterly balance. 6. The bank provides no cash credit limit. Thus the business flow is diverted to nationalized banks. 7. Short banking hours(from 10:00 a.m to 4:00 p.m)

OPPORTUNITIES: 1. Peoples dissatisfaction towards nationalized banks in terms of services has turned out to be a blessing for private banks. HSBC Bank with its brand image can be benefited to a large extent by this opportunity. 2. Their lies great scope in forex department which if utilized to a greater extent can yield much better result so bank can increase its business volume by exploring export segment. 3. Failure of some major private banks has resulted into distrust amongst people. Hence, HSBC can cash on this opportunity. But this opportunity to all private banks. 4. Rapid growth of Jaipur city is another prime opportunity. People from different regions have come to this peace loving city to settle here. Thus, increase population means more business. Secondly, new industries in and around Jaipur has sprung up. 5. The HOKAI product (cash credit limit) launched in August 2005 will be going to attract the SME Segment in wider aspects.

6. Emphasis on more ATMs in Jaipur.

THREATS: 1. Reorganization of public sector banks: All the public sector banks have started to redefine their services in order to attract customers attention: 2. The entry of other foreign banks can take away some of the business. 3. The nationalized banks are also coming up with ATMs, which will acts as a major threat to the bank in near future. 4. Stringent norms by reserve bank of India at any time in near future can be threat to foreign banks as their activities could be adversely affected. 5. The presence of other private sector and foreign banks in Jaipur like Standard Chartered, Citibank, HDFC, ICICI, UTI, ING Vysa etc. 6. The cash credit limit provided by other nationalized bank is the major threat.

7. Reorganization of public sector banks: All the public sector banks have started to redefine their services in order to attract customers attention. 8. The entry of other foreign banks can take away some of the business. 9. The nationalized banks are also coming up with ATMs, which will acts as a major threat to the bank in near future. 10. Stringent norms by reserve bank of India at any time in

near future can be threat to foreign banks as their activities could be adversely affected. 11. The presence of other private sector and foreign banks in

Jaipur like Standard Chartered, Citibank, HDFC, ICICI, UTI, ING Vysa etc.

SUGGESTION&

RECOMMENDATION

1. HSBC Bank should chalk out some programs to create general awareness regarding its presence various services of the bank. More attention is required in distant located firms and caters the needs of the commercial areas. 2. Personal marketing / Aggressive Marketing: - Today is the era of competition. IN order to increase the banking network (in terms of client and business volume) an aggressive approach is required. The bank should recruit more number of marketing personnel, so that they can cover the whole of the city. Personal marketing can be one of the methods or modes of taking people into confidence. 3. Promotional campaign: - In the era of such stringent competitiveness one has to take care of promotional activities. It can be done in following ways: a.) Promotion Through customers: - Through motivating the existing customers to get more business can be one of the mode to have greater access or approachability. The motivation to the customers can be through gifts or through any memento.

b.) Reference selling: - Few of the HSBC banks existing customers specially esteemed ones can be asked to give reference about relatives/ friends or any acquaintance whom they consider potential customer. Thus the business volume can be increased. 4. Advertising: - Initially when we took our work we found that general awareness amongst people regarding HSBC Bank was Very low. The bank should instead of being centrally advertised, try to advertise locally. This can be done in following ways: 1.Public welfare banners: - An excellent way to advertise which can be done through tree guards having HSBC Banks name.

2. Traffic posts especially at commercial locations can have boards of HSBC bank.

Why HSBC HSBC Why has HSBC stayed strong while other banks have been unsuccessful? This question is central to my case study of HSBC. A banks capital ratio is a strong indicator of failure (Federal Reserve Bank of New York Economic Policy Review July 2000). The fact that HSBC has the strongest Tier 1 ratios of any of the big banks (Forbes April 2008) is key to the fact that it has stayed strong when other banks have been unsuccessful. The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between Europe, India and China. The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities in Hong Kong and on the China coast and helped establish the bank which opened in Hong Kong in March 1865 and in Shanghai a month later. Soon after its formation the bank opened agencies and branches around the world. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries (Wikipedia, HSBC). HSBCs core businesses are divided into four categories Personal Financial Services (including consumer finance), Commercial Banking, Global Banking and Markets (formerly

Corporate, Investment Banking and Markets), and Private Banking. Personal Financial Services provides more than 100 million customers world-wide with a full range of personal financial services, including current and savings accounts, mortgage loans, car financing, insurance, credit cards, loans, pensions and investments. Commercial Banking provides financial services to small, medium sized and middle-market enterprises. The group has almost 2.5 million of such customers including sole proprietorships, partnerships, clubs, and associations incorporated businesses and publicly quoted companies. Global Banking and Markets provides customized financial services to corporate and institutional clients. Business lines comprise Global Banking, Global Markets, Global Asset Management, Global Research and Principal Investments. This division was formerly known as Corporate, Investment Banking and Markets. Private Banking is the marketing name for the private banking 1

business conducted by the principal private banking subsidiaries of the HSBC Group worldwide. HSBC Private Bank, together with HSBC Guyerzeller and the private banking activities of HSBC Trikaus & Burkhardt, known collectively as Group Private Banking, provides services to high net worth individuals and their families through 93 locations in some 42 countries and territories in Europe, the Asia Pacific region, the Americas, the Middle East and Africa. HSBC Premier is the groups' premium financial services product. The product requires deposits of at least $100,000 or a mortgage of at least $500,000. Customers have a dedicated relationship manager, global 24 hour access to call centers and preferential rates. HSBC Bank International is the offshore banking arm of HSBC Group; it focuses on providing offshore solutions to expatriates and migrants. It provides a full range of multi-currency personal banking services. HSBC net is a global service that caters to local business needs by offering specialized functionality ranging from payments to Cash Management to trade services features as well as foreign exchange and money markets trading for different regions of the world. HSBC Direct is an online direct banking operation that offers high interest savings accounts and no service charges or minimum account balance requirements. It was first launched in USA in 2005 and now is available in Canada, Taiwan and South Korea (Wikipedia, HSBC). HSBCs strategic initiatives involve maintaining a strong capital base and liquid balance sheet. Capital ratio as measured as the absolute amount of capital over the absolute level of risk. Tier 1 Capital is defined as

common stock surplus, retained earnings and some perpetual preferred stock. It has the most conservative approach among banking circles. Remarkably, it has emerged least damaged from the recent American financial turmoil of all the big banks, and maintained involvement in Investment Banking. Investment banks help companies and governments raise money by issuing and selling securities in the capital markets as well as providing advice on trading such as mergers and acquisitions (Wikipedia, Investment Banking). HSBCs competitors are other big banks such as Bank of America, Citigroup, and investment banks such as JP Morgan. HSBC invested an estimated $1 billion into starting an investment banking business from scratch. But after three years the business still had not led to huge gains. Today it is ranked 16th among investment banking firms. JP Morgan is ranked number one. The bank has moved up only five places since 1998 but not become a leader in the business as it is in other businesses. HSBC has 2.7 million commercial 2 banking customers, putting it on roughly equal footing as Bank of America. But Bank of Americas customers are mostly domestic. HSBCs top three managers have all been with the bank for over 25 years. Although this has been criticized by some as insularity in the organizational structure of the bank it has worked for the bank and so cannot be held against it. HSBC has never hired an executive from outside to run the bank. It also operates in accordance with British corporate governance rules. The rules require strict division between

Chief Operating Officer and Chairman. In 2005, Stephen Green was promoted from Chief Operating Officer to Chairman. Mr. Green took over the position from Sir. John Bond and his predecessor was Sir William Purves who had both worked at HSBC for over 30 years. The bank is regulators vary based on the country in which it operates. It is based in London, England but its current expansion is into emerging markets. HSBC has around 10,000 offices in 83 countries and territories. It has a staff of 330,000 employees worldwide (HSBC.com). It is 50% more profitable in emerging markets than in mature markets. Currently it is expanding internationally at a rapid pace. It has plans for Russia, Sub-Saharan Africa and South Korea. It is the first foreign bank to open a branch in rural China; it has 62 retail outlets there, up from 39 a year ago. In 2001 it made a buy into the Bank of Shanghai. In conclusion, HSBCs conservative approach to banking, staying focused on keeping its capital base strong and liquid balance sheet have prevented its failure. Today HSBC is the worlds most valuable Banking brand according to Bankers Magazine February 2008, the worlds largest company, and the worlds largest banking group according to Forbes April 2008. In 2007, it reduced its wholesale mortgage operation, and its earnings rose 13% last year. Its shares are down 10% in New York since the credit crisis began, while shares of rival Citigroup have slid 50% and those of the Swiss UBS 45%. Those price changes, plus net income disasters at Citi and UBS, explain why the number one slot on the Forbes Global 2000 has changed hands. Citi had it for the first four years of this survey. Now HSBC has it.

3 List of Sources: 1) Arturo Estrella, Sangkyun Park, and Stavros Peristiani; Capital Ratios as Predictors of Bank Failure; Federal Reserve Bank of New York Economic Policy Review July 2000 2) Parmy Olsen; Better Safe than Sorry; Forbes April 2008 3) Wikipedia; HSBC 4) Wikipedia; Investment Banking

BIBLIOGRAPHY