Project report on Banking and Investment

Under the Guidance of

Project Submitted by

Mr. Bhupesh harjai

ASSISTANT MANAGER Standard Chartered Bank Phase II, Gurgaon

ANIL SHARMA
Roll No. 108305 PGBM

BANKING AND INVESTMENT

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BANKING AND INVESTMENT

Contents
Acknowledgement

Page No. 4

EXECUTIVE

SUMMARY

INTRODUCTION

Banking sector in India New business opportunities in banking sector About Standard Charted Bank

6 7 8 11

About Project About Banking BANKING SERVICES Personal Banking International Banking SME Banking

12 12 12 14 16 19

Wholesale Banking About Investment Investment Investment options in India Product offered by standard chartered bank About Life Insurance

23 24 26 29 35

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BANKING AND INVESTMENT THE RESEARCH REPORT

Objective of the study Research Methodology Observation and analysis

40 41 42

Conclusion

57 60

Limitation of the research BIBLIOGRAPHY ANNEXURE

61

Questionnaire

65

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BANKING AND INVESTMENT

ACKNOWLEDGEMENT

It gives me immense pleasure to express my sincere and whole hearted sense of gratitude to Mr. Bhupesh Harjai for his able guidance, invaluable help, ever encouraging attitude and supervision

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BANKING AND INVESTMENT throughout this project. To drive benefit of his enormous experience it is a matter of great privilege to me. Without his help, cooperation and invaluable suggestion this work could not have seen the light of the day.

Acknowledgements are also due to my family and friends for their constant encouragement and support.

Assistant manager Mr. BHUPESH HARJAI.

EXECUTIVE

SUMMARY

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BANKING AND INVESTMENT The project 'BANKING AND INVESTMENT was undertaken as a part of the learning process during the summer internship at Standard Chartered Bank. The objective of the project was to know about peoples preference and thinking about investing their money based on several factors like age, occupation and annual income etc. that is where the people invest and and they think about banking and investment options available with the banks. The scope of the project was to understand peoples preference and insight while doing banking and investment their money based on age, occupation and income. The report has been discussed in two sections. The first section of the report provides banking and investment options adopted by customers while doing banking and investment in different areas depending upon their age, income and occupation. In the second section of the report, Also a detailed analysis of the questionnaire was done on the basis of three parameters age, occupation and income. The key learning from the project was the knowledge of different financial products like investment plans and saving accounts. Learning from the project was the psychology of the customers regarding investments based on factors such as age, income and occupation.

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BANKING AND INVESTMENT

INTRODUCTION

Banking sector in India Indias banking sector is growing at a fast pace. India has become one of the most preferred banking destinations in the world. The reasons are numerous: the economy is growing at a rate of 8%, Bank credit is growing at 30% per annum and there is an everexpanding middle class of between 250 and 300 million people (larger than the population of the US) in need of financial services. All this enables double-digit returns on most asset classes which is not so in a majority of other countries. Foreign banks in India achieving a return on assets (ROA) of 3%, their keen interest in expanding their businesses is understandable. Indian markets provide growth opportunities, which are unlikely to be matched by the mature banking markets around the world. Some of the high growth potential areas to be looked at are: the market for consumer finance stands at about 2%-3% of GDP, compared with 25% in some European markets, the real estate market in India is growing at 30% annually and is projected to touch $ 50 billion by 2008, the retail credit is expected to cross Rs 5,70,000 crore by 2010 from the current level of Rs 1,89,000 crore in 2004-05 and huge SME sector which contributes significantly to Indias GDP.

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BANKING AND INVESTMENT

In order to gain further access to the global trade, the government is expanding the Free Trade Agreements (FTAs) with many countries (like Singapore, Thailand, and other ASEAN members). After the Comprehensive Economic Co-Operation Agreement (CECA) with Singapore, the government is now planning a similar deal with the 25-member European Union. The EU is also likely to ask India to liberalize its financial sector on the lines of the IndiaSingapore CECA. New business opportunities in Banking Sector With the interest income coming under pressure, banks are urgently looking for expanding fee-based income activities. Banks are increasingly getting attracted towards activities such as marketing mutual funds and insurance policies, offering credit cards to suit different categories of customers and services such as wealth management and equity trading. These are indeed proving to be more profitable for banks than plain vanilla lending and borrowing.

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BANKING AND INVESTMENT

About Standard Chartered Bank

The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853. This friendly merger allowed both banks to capitalise on the expansion of trade caused by the increased movement of goods from Europe to the East and Africa. In 1986 a hostile takeover bid was made for the Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard Chartered entered a period of change. Provisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered began a series of divestments notably in the United States and South Africa, and also entered into a number of asset sales.

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BANKING AND INVESTMENT Since the early 90s, Standard Chartered has focused on developing its strong franchises in Asia, Africa and the Middle East, using its operations in the United Kingdom and North America to provide customers with a bridge between these markets. We have also focused on consumer, corporate and institutional banking, as well as the provision of treasury services areas in which the Group has particular strength and expertise. In the new millennium we acquired Grindlays Bank from the ANZ Group and the Chase Consumer Banking operations in Hong Kong in 2000. Since 2005, we have achieved several milestones with a number of strategic alliances and acquisitions that will extend our client and geographic reach and enhance our capabilities. Some of them include A Brain, American Express Bank, Cazenove Asia, Harrison Lovegrove and Pembroke. Standard Chartered Bank is a London based bank, currently operational within over 70 nations with more than 1,700 branches and 73,000 strong workforce as of April 2009. Although the bank is located in Britain, still a huge chunk of its revenues originate from the continents of Asia, Africa and Middle East. Standard Chartered Bank was formed as the merger of two banks viz. The Chartered Bank of India, Australia & China and The Standard Bank of British South Africa. The merger took place in the

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BANKING AND INVESTMENT year 1969. Presence in India

In India, the Standard Chartered Bank introduced its first branch in Kolkata on 12th of April 1858. Later on, when Mumbai took over Kolkata as the financial capital of India, the bank administration was shifted to Mumbai from Kolkata.

Currently, the bank offers a wide variety of banking services and products to the Indian customers under Personal Banking, Private Banking, SME Banking and Wholesale Banking categories. The services being offered include Regular Banking Services, Credit Cards, Debit & Prepaid cards, Loans & Mortgages, NRI Banking Services, Executive Banking and Insurance & Investment products. As of April 2009, Standard Chartered bank is located in all the prominent cities of India, including New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad, Ahmedabad etc.

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BANKING AND INVESTMENT

About The Project

The project Banking and Investment was undertaken with Standard Chartered Bank, New Delhi with the main aim of analyzing and study the various banking and investment options available in the market and to try to find out the insight of the customers. It intends to meet the needs of the investors who are keen on investment options like Bonds, Mutual Funds, and Insurance. It is meant to be highly practical with Indian bias but incorporates the theoretical inputs necessary to satisfy the components herein. The training required great knowledge and understanding of financial concepts. To advise an investor and a person who is using banking services it is essential to be aware of all the possible options available

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BANKING AND INVESTMENT and daily up gradation of ones knowledge. Therefore it was challenging and a great experience. The objective is not to profile individual funds and tell what to buy. No one knows which funds are going to perform best over the next one, five or ten years. The financial world is simply unpredictable. Rather it is an effort to help investors make better choices, which should lead to improved results.

BANKING
A system of trading in money which involved

safeguarding deposits and making funds available for borrowers, banking developed in the Middle Ages in response to the growing need for credit in commerce. The lending functions of banks were undertaken in England by money- lenders. Until their expulsion by Edward I in 1291, the most important money-lenders were Jews. They were replaced by Italian merchants who had papal dispensations to lend money at interest. In the 13th cent. credit was essential to finance commerce and major projects. The most important was the wool trade but other examples included large
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BANKING AND INVESTMENT buildings such as Edward's castles in north Wales. When Italians had their activities in England curtailed in the early 14th cent., they were replaced by English merchants and goldsmiths, whose rates of interest were sufficiently low to avoid the usury laws.

Banking services
1: Personal Banking
Savings & Banking Services Standard Chartered offer a wide choice of savings accounts with competitive interest rates.

Savings Accounts
You also have the added convenience of our international network, giving you easy access to your money when you're abroad. Here are just a few of the savings accounts you can open with us.

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BANKING AND INVESTMENT

My Dream Account

Save for your children's future with a special account that's easier for parents to manage.
Payroll Account

A one-stop banking solution for companies and their employees that improves the way salary payments are managed. The account offers bank-wide range of benefits to employees and salary process convenience to the employer.
Women's Account

Choose a bank account designed specifically to meet the financial needs of women.
E $aver

Manage your money anytime, anywhere - and watch your savings grow faster with our most competitive interest rate.

International Banking

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BANKING AND INVESTMENT Offshore banking provides you with a confidential banking platform and enhanced investment options. Having one international base for managing your wealth affords you greater ease and efficiency to plan your financial future. If you are interested in greater international these opportunities investment with our comprehensive opportunities, we can help you take advantage of International banking service. Making International Banking easier Off shore banking at your command. Based in your time zone and region, and staffed with dedicated teams who are able to communicate in the language of your choice, we make it easier for you to manage your money. However simple or complex your needs may be, we have the right solution for you. We offer:

Personal service via a dedicated relationship manager and team of experienced bankers.

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BANKING AND INVESTMENT Assistance with complex investments and financial solutions as well as your daily banking needs.

A choice of jurisdictions, banking services and investment products in a range of currencies. Specifically tailored financial advice that matches your risk profile and investment goals. The convenience of on-line banking

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BANKING AND INVESTMENT

Our key cash management services include:

Current Account Savings Account Time Deposits Remittances and Bank Drafts

2: SME banking
SME Banking team is

dedicated to you and your business. Our aim is to help your business reach its fullest potential. We share your vision for growth and we'll support you with customised product packages, responsive services and access to expert advice. Our international network and trade expertise spanning Asia, Africa and the Middle East are when also an advantage operations. you're

Investment Services

planning to expand business

Benefits at a glance:

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BANKING AND INVESTMENT Enjoy preferential pricing on business

transactions.

Receive rewards on banking services

rendered.

Take advantage of our international network

and trade expertise.

Gain unlimited access to professional advice,

poducts and services through our Relationship Manager.

Cash Management Cash Management When you're making important business decisions, It's vital that you have accurate and up-to-date financial Information at your fingertips. At Standard Chartered, we give you the tools you need to manage your business cash flow efficiently and effectively.

We also have an extensive range of banking services to make managing your money easier and more convenient :

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BANKING AND INVESTMENT ATM Services Phone Banking Services Straight2Bank Standard Chartered Online Facsimile Banking Cash Deposit Machines Cheque Deposit Machines Courier Service Cheque Deposit Box Consolidated Statements

Trade Finance & Working Capital

Trade Finance & Working Capital With more than 150 years of trade expertise and the support of our extensive international network, we can help you manage your trading business more effectively. Import Services

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BANKING AND INVESTMENT We provide a wide range of import services, including letters of credit, shipment guarantees, custom bonds and guarantees. Export Services Our comprehensive range of export services

includes credit bills negotiation, pre- shipment export financing, export letters of credit and export bills for collection. Express Trade To support your trade finance and working capital needs, we'll give you a quick turnaround on a partially secured line of credit for up to 10 times your collateral value. Cross-border financing We also provide products and services to meet the cross-border financing needs of subsidiaries, affiliates or associates that are incorporated or domiciled in a different jurisdiction to that of the parent company.

Wholesale Banking
Standard Chartered is a major player in transaction banking, combining deep local knowledge and global capability to offer the full scope of innovative,
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customised

BANKING AND INVESTMENT solutions in trade finance,

cash

management and security services. We have a unique business focus on enabling trade, investment and supply chain financing for, in and out from Asia, Africa and the Middle East. We aim to be a one-stop gateway providing supply chain and global liquidity management for OECD corporates and financial institutions looking to extend their networks locally. And we are committed to using our cross-border network to facilitate our local clients growing trade and investment flows and supply chain financing needs across our business footprint. We are uniquely positioned in these trade corridors, supporting commodity flows from Africa to Asia and manufacturing flows in the other direction. Transaction banking is an integral part of Wholesale Banking. As a top three global finance bank, number one sub custodian in Asia, top 4 international cash manager with the largest number of client relationships in Asia we are a key driver of Wholesale Banking aspirations. We focus exclusively on corporate and institutional clients domiciled or conducting business in our footprint, offering clients access to our extensive branch network and award-winning suite of

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electronic

BANKING AND INVESTMENT client access channels (known

as

Straight2Bank). Standard Chartered has a proud 150 + year history starting as a trade bank. Transaction banking is core to that heritage.

Payment Services
We can help you save time and money by reducing processing costs while providing a value-added service to your suppliers. Comprehensive payments solution Standard Chartereds payment solutions can help to reduce your overall processing costs for domestic and global payments saving you time and money while providing a value-added service to your suppliers. Our comprehensive payment services will be tailored to enhance your accounts payable process. This will eliminate many manual tasks involved in making payments, allowing you and your staff to spend more time focusing on your core business needs. We understand that most of your effort in the payment cycle is directed
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towards

initiation;

BANKING AND INVESTMENT difficulties in the subsequent reconciliation process can jeopardise the whole process. With Straight2Bank Channels you can now track the exact status of each payment through timely reports that can be uploaded seamlessly into your companys system. We offer a full range of payment capabilities including: Cross-border payments
o o

Telegraphic transfers International bank cheques / drafts Local bank cheques / drafts / Cashiers order Corporate cheque Direct credits ACH / GIRO / credit vouchers Local bank transfers (RTGS) Book transfers (account transfer between Standard Chartered branches).

Domestic payments
o

o o

o o

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BANKING AND INVESTMENT

Liquidity Management

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BANKING AND INVESTMENT Solutions for efficient management of your funds A corporate treasurer's main challenge often

revolves around ensuring that the company's cash resources are utilised to their maximum advantage. You need a partner bank that can help you: Maximise interest income on surplus balances;

minimise interest expense on deficit balances for domestic, regional and global accounts

Minimise FX conversion for cross-currency Customise liquidity management solutions for Centralise information management of

cash concentration

different entities in different countries

consolidated account balances

Our Solution With our global experience and on-the-ground

market knowledge, Standard Chartered will help you define an overall cash management strategy which incorporates a liquidity management solution that best meets your needs.

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BANKING AND INVESTMENT

Standard Chartered's liquidity management propositions

Issues:

Customer benefits: Maximise float management

Minimise funding cost MIS reports on intercompany settlements Outsourcing

Account balance information

Regulatory considerations Tax implications Single vs multiple entities Single currency vs multiple currencies

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BANKING AND INVESTMENT

Investment
Investments About Investment

The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. This is called Investment.

Protecting your future We are dedicated to protecting you and your family, as well as your hard earned assets and future earnings. To take care of all your insurance requirements, we bring you a variety of products from Bajaj Allianz
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BANKING AND INVESTMENT Life Insurance Company & Royal Sundaram General Insurance Limited. We offer: One-stop shopping for both life and general insurance protection

Comprehensive range of products to suit every stage of your life... from childhood to retirement Dedicated Company insurance provide Financial Services to

Consultants from Bajaj Allianz Life Insurance FREE Consultations create customized insurance plans for you At Standard Chartered Bank we have a

comprehensive range of products & services to protect your world. Life Insurance General Insurance - Health, Motor vehicle, Home Contents and Personal Accident Planning for your financial goals Standard Chartered Bank, using over 150 years of expertise, promises to guide you through the world

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BANKING AND INVESTMENT of exciting new investment opportunities in India and overseas.

Investment options in India

Conventionally, Indian investors were investing in the following avenues:

Fixed Deposits

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BANKING AND INVESTMENT They cover the fixed deposits of varied tenors offered by the commercial banks and other non-banking financial institutions.

These are generally a low risk prepositions as the commercial banks are believed to return the amount due without default. By and large these FDs are the preferred choice of riskaverse Indian investors who rate safety of capital & ease of investment above all parameters. Largely, these investments earn a marginal rate of return of 6-8% per annum.

Government Bonds The Central and State Governments raise money from the market through a variety of Small Saving Schemes like national saving certificates, Kinan Vikas Patra, Post Office Deposits, Provident Funds, etc. These schemes are risk free as the government does not default in payments. But the interest rates offered by them are in the range of 7% - 9%.

Money-back insurance

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BANKING AND INVESTMENT Insurance in India is mostly sold and bought as investment products. They are preferred because of their add-on benefits like financial life-cover, money and tax-savings invest and satisfactory in financial returns. Even if one does not manage to save regularly instruments, with insurance, the policyholder has no choice. If he does not pay his premiums on time, his insurance cover will lapse. Money-back Insurance schemes are used as investment avenues as they offer partial cash-back at certain intervals. This money can be utilized for childrens education, marriage, etc.

Endowment Insurance These policies are term policies. Investors have to pay the premiums for a particular term, and at maturity the accrued bonus and other benefits are returned to the policyholder if he survives at maturity.

Bullion Market

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BANKING AND INVESTMENT Precious metals like gold and silver had been a safe haven for Indian investors since ages. Besides jewelry these metals are used for investment purposes also. Since last 1 year, both Gold and Silver have highly appreciated in value both in the domestic as well as the international markets. In addition to its attributes as a store of value, the case for investing in gold revolves around the role it can play as a portfolio diversifier.

Stock Market Indian stock markets particularly the BSE and the NSE, had been a preferred destination not only for the Indian investors but also for the Foreign investors. This is evident from the fact that FIs are buying huge stakes on the Indian bourses. Although Indian Markets had been through tough times due to various scams, but history shows that they recovered very fast. Many scripts had been value creators for the investors. People have earned fortunes from the stock markets, but there are people who have lost

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BANKING AND INVESTMENT everything due to incorrect timings selection of fundamentally weak companies.

or

Real Estate Approximately one fourth of all homes sold in 2006 have been purchased as an investment. Returns are almost guaranteed because property values are always on the rise due to a growing world population. Residential real estate is more than just an investment. There are more ways than ever before to profit from real estate investment.

Mutual Funds There is a collection of investors in Mutual funds that have professional fund managers that invest in the stock market collectively on behalf of investors. Mutual funds offer a better route to investing in equities for lay investors. A mutual fund acts like a professional fund manager, investing the money and passing the returns to its investors. All it deducts is a management fee and its expenses, which are declared in its offer document.
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BANKING AND INVESTMENT

Unit Linked Insurance Plans ULIPs are remarkably alike to mutual funds in terms of their structure and functioning; premium payments made are converted into units and a net asset value (NAV) is declared for the same. In traditional insurance products, the sum assured is the corner stone; in ULIPs premium payments is the key component.

Products offered by the standard chartered bank

The scope of this project the detailed study of two products offered at the Standard Chartered Bank. They are as follows:

Savings Account Insurance plans

Savings Account
As savings accounts are meant to encourage

savings habit, organizations whose purpose is profit

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BANKING AND INVESTMENT are not allowed to open such accounts. Interest is paid on a half-yearly basis in these accounts. A minimum balance is stipulated by each bank. A balance amount above the stipulated amount is eligible for a 3.5 % interest rate in India at present.

Standard Chartered savings account: Standard Chartered banks aXcessPlus is a

revolutionary savings account that provides you with unstinted access to your money:

Get instant cash at over 20,000 ATMs across India and over 10 lacs ATMs across the world through the visa network.

Get a globally valid debit card that lets you shop at over 326,000 outlets in India and over 14 million outlets across the world.

Free unlimited visa transactions. Free Standard Chartered bank branch access across the country.

Free door step banking

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BANKING AND INVESTMENT

Free demand Draft/ pay orders (drew at SCB locations).

Free payable at par cheque book. International debit card, phone banking, net banking and extended banking hours.

The Standard Chartered aXcessPlus Account comes with a globally valid debit - cum - ATM card which allows customers to access all Standard Chartered Bank ATMs and provides instant cash at all Visa Network ATMs in India and abroad. aXcessPlus customers get FREE access to cash withdrawals at over 13000 Visa ATMs in India up to four free transactions per month. This is over and above unlimited free access to all Standard Chartered Bank ATMs. The Debit Card can be used to make purchases at over 55,000 merchant outlets in India. The globally valid Standard Chartered Debit Card is the easiest way of accessing your branch account. A debit card allows you to purchase goods at Visa Electron merchant establishments and withdraw cash from any Visa Electron ATM in India and abroad using funds from your bank account. A debit card is a 'buy now - pay now' option; the payment

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BANKING AND INVESTMENT to a merchant gets debited to the customer's account the same day as the purchase is made. AXcessPlus customers can withdraw 4 times month free cash at any Visa Network ATMs in India. These include all ATMs of:

ICICI Bank HDFC Bank HSBC Citibank IDBI Bank UTI bank Centurion bank Bank of Punjab Corporation bank IndusInd Bank Kotak Mahindra Bank Canara Bank Dena Bank

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BANKING AND INVESTMENT

Andhra Bank State Bank of India Development Credit Bank Bank of India Bank of Baroda Syndicate Bank

This is over and above all SCB ATMs Standard Chartered bank offers 4 types of Savings account matching different needs of customers namely:

aXcess Plus Super Value Parivaar account aaSaan Account

aXcess Plus Saving Account The Standard Chartered Bank have launched the aXcess Plus saving account as a premium product placed in the market with maintenance of minimum quarterly balance of 10,000/The product in supposed to be targeted to a specific group elite of
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BANKING AND INVESTMENT customers. This will help to increase the volume and as such the profitability of the company. The name aXcess plus means that the account is accessible anywhere anytime, as well as it will be an innovative and convenient service for the customers needs. Following are the main features of aXcess Plus account:

FREE Unlimited Visa ATM transactions FREE Doorstep Banking International Debit Card Phone Banking Online Banking Averaged quarterly balance Rs 10000

Super Value Saving Account Super Value Account offers a host of value added services free of cost, such as Free Bill Pay, Free Inter Bank Funds Transfer. Super Value Saving Account offers the

following main features:

Free Bill Pay Free Inter Bank Funds Transfer

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BANKING AND INVESTMENT

Free Foreign Inward Remittance Certificates Free Payable at Par cheque book/ account statements / DDs Average quarterly balance Rs 50000

Parivaar account This family account allows you to maintain your individual identity while allowing you to tap your family's financial strength. Parivaar features: Account offers the following main

Maintain individual savings accounts with the benefit of clubbing balances in grouped accounts

Option of Systematic Investment Plan (SIP) that allows you to invest a fixed amount of money every month in specific mutual funds

Globally valid ATM-cum-debit card Phone Banking Online Banking Average quarterly balance Rs 25000
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BANKING AND INVESTMENT aaSaan Saving Account aaSaan is a basic, no maintenance, hassle free savings account. aaSaan Saving Account offers the following main features:

No Minimum Balance requirement Unlimited Free access to Standard Chartered Bank ATM's International Debit Card Phone Banking Online Banking Average quarterly balance Rs o(zero)

Common Product features (Saving Accounts)

Account can be in sole name or in joint names Minimum balance: Minimum Quarterly balance of a specific amount is to be maintained failing to which a specific fees per quarter has to be maintained.

Account can be operated at any branch across the country.

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BANKING AND INVESTMENT Standard chartered debit card

The joining fee is Rs. 200 and there is a nominal fee of Rs. 200/- from the 2nd year onwards.

You

have

free

access

to

all

Standard

Chartered Bank and are entitled to free cash withdrawals at Visa ATMs (up to four free cash withdrawals per account per month).

There are no transaction charges for the purchases made at the Merchant establishments except at railway stations and petrol pumps (as per industry practice).

The

Standard

Chartered

Debit

Card

is

welcome at all merchant establishments and ATMs that accept Visa Electron in India and Abroad.

The

card

can

be

used

at

55,000

establishments in India and at over 12 million outlets worldwide displaying the Visa Electron sign.

It can also be used across 13000 ATMs in India and at over 810,000 ATMs worldwide.

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BANKING AND INVESTMENT

Life Insurance

Life Insurance Cover is a plan in which the insured person gives periodic premiums to the Insurer for a particular period, and in case of any eventuality before the lapse of the policy, the insurer pays the sum assured and the accrued bonus to the nominee of the insured person. Now based on term of premium payment and the term of life coverage, the Life Insurance covers are broadly classified into four categories:

Whole Life Policy Money-Back Policy Endowment Policy Unit Linked Plans

In the Whole Life Policies, the insured person is provided a life cover till he attains an age of 65 irrespective of the age at which he subscribes to the policy. In this case, the person just has to pay the insurance premiums for a particular period. In case of Money-Back Policies, the insured person is provided a life cover for a particular term that is
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BANKING AND INVESTMENT predetermined and the premiums are decided on the basis of the term of policy. The Endowment Policies are given for a particular term for which the life cover is provided and the insured person has to pay periodic premiums to the insurer. At successful completion of the policy term, the insured person is given back all the survival benefits and accrued benefits. Unit Linked Insurance Plans are similar to

Endowment schemes, but here the returns are not guaranteed as the part of the annual premiums is invested in stock markets, debts and other market linked securities. The life cover is provided to the insured person for particular term and amount. In traditional insurance products, the sum assured is the corner stone; in ULIPs premium payments is the key component.

Standard Chartered offers you a wide range of Life Insurance Products from Bajaj Allianz Life Insurance Company, companies. At Standard Chartered, you can avail of the services of trained & certified professional consultants from Bajaj Allianz Insurance company, who can guide you
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one

of

India's

leading

Insurance

BANKING AND INVESTMENT in ascertaining your insurance needs, and assist you in making an insurance plan that is just right for you.

Key Plans Bajaj Allianz

Some of the key Life Insurance plans* available at Standard Chartered Bank:

New Unit Gain: An investment plan that creates value for every rupee you invest

It is a unit linked regular premium plan. 96% of First Years Regular Premium is allocated to funds in the following manner. Of the first years Regular Premium, 45% is allocated to Fund(s) immediately 5.1% of the First Years Regular Premium will be allocated to funds every year starting from 4th policy
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BANKING AND INVESTMENT year till the end of 13th policy year (making it 51%) , provided all due Regular Premiums have been paid.

A new Asset Allocation Fund A good option to invest in that shifts your funds as per the opportunities available & attractiveness of the sector.

Youngcare & Youngcare plus: It is a unit linked regular premium plan specially designed to secure your childs future

It has an in built WOP (Waiver of premium) rider. i.e on death of Life assured, the policy continues with premiums paid into the policy by the insurance company till the end of term.

Sum Assured is paid on Death and WOP is triggered. Nominee receives the fund value at the end of the term.

Loyalty units are infused into the policy from the 6th Year onwards as a % of the fund value.

New Unit Gain Easy Pension Plus: Unique unitlinked pension plan without life cover

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BANKING AND INVESTMENT

Available in Single Premium and regular

Premium payment mode.

Option to take a tax-free lump sum up to 33%

of Sum Assured.

Open Market option: Purchase immediate

annuity from Bajaj Allianz Life Insurance or any other life insurer.

Choice of 5 investment funds. free switches allowed every year.

Child Gain: Insure today and secure your childs education and ambitions. This policy is available in 4 Options ChildGain 21 and ChildGain 21 Plus Child's education Plan upto Graduation 105% Guaranteed Payouts + Bonuses ChildGain 24 and ChildGain 24 Plus Child's education Plan upto Post Graduation 115% Guaranteed Payouts + Bonuses

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BANKING AND INVESTMENT Family Income Benefit: In case of death or accidental total permanent disability of insured, all future premiums are waived and 1% of the sum assured is paid monthly Start of Life Benefit: Enables a smooth start to your childs professional life, incase of an unfortunate death or disability of the insured parent during the policy term. InvestGain: InvestGain is a specially designed plan that offers a unique you combination a of benefits that help develop sound

financial portfolio for your family.

4 Times Life Cover at a little extra cost. Limited premium payment option available. Available with a host of additional benefits including: Family Income and Waiver of Premium Benefit.

Term Care: Term Assurance plan with return of premium

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BANKING AND INVESTMENT

An economic way of providing life cover, this plan also ensures the return of all premiums at the time of maturity.

Dual term.

benefit

Life

cover

Return

of

premiums paid on survival at the end of the

Single premium payment option available. The only pure term plan in the market to provide Hospital Cash Benefit.

Objective of the study

The objective of this project is to effectively find out the thinking of people regarding banking and the investment services on the basis of their preference of selecting banking services and investing their money based on the following factors:

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BANKING AND INVESTMENT

Age Occupation Annual income

More specifically the project was focused on the following factors so as to derive a feasible observation:-

To

find

the

most

popular

Banking

service people generally do. To find the importance based on of various

investments

parameters

among sample of investors.

To

identify

the

potential

customers

across income, age-groups, profession.

To find out the awareness about the banking and investment services provided by banks.

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BANKING AND INVESTMENT

Research Methodology
For the purpose of collection of data & analysis for the project, various primary & secondary sources of data have been used.

I. Primary data

Discussion with the Organization at Standard chartered Bank to have a deep understanding of the system.

Data

collected

through

questionnaire.

sample size of 50 persons was taken in the Delhi NCR region to conduct our survey.

II. Secondary data

Previous

Survey

on

various

investment

avenues like Insurance etc to gain an initial understanding of the system & its structure.

Data

collected

through

internet

search,

journals, magazines, company reports etc.

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BANKING AND INVESTMENT

Scope The survey for the project was conducted in Delhi NCR (NOIDA,FARIDABAD) area. The focus was on various age group falling under the various income classes. The objective of the study is to study the thinking pattern of the people regarding investment in different avenues of investment, their frequency of the investment. This study will help in finding the pattern and behavior of different investors. The study also include the term which a particular investor select while investing and what kind of services of banking they choose.

Observations and Analysis

After deciding the major factors which have a significant impact on the investment decision of the investor a questioner is made on these factors. The data is collected and sorted out.
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BANKING AND INVESTMENT Now for the analysis purpose we have sorted the data in three segments.

The first part deals with the analysis of the responses and its break up according to the option given.

The second part deals with the analysis on interrelation of two factors of investments.

The third part will show the trend analysis of the investment patterns.

Categorization of Occupation

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BANKING AND INVESTMENT

The

above

diagram of

shows

the

different to their

categorization

people

according

occupation.Here almost 80% of the people are salaried, 14% are self employed and 6% related to business class.

Categorization of Income

In the above diagram the categorization is done on the basis of the different level of income,Here 84% people related to the income group of 2-3 lakh , and 16% related to 3-5 lakh.

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BANKING AND INVESTMENT

Data according to the bank selected for banking

In the above diagram the categorization is done on the basis of the bank currently using by people for banking. Here 44% doing banking in others And 26% are doing in HDFC bank and 26% in ICICI bank and remaning 4% in standard chartered bank.

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BANKING AND INVESTMENT

Data According to the Awareness of Banking Services

In the above diagram the categorization is done on the basis of the number of people having aware about the all banking services out of the sample size of 50. Here 62% are aware of all banking services and 38% not.

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BANKING AND INVESTMENT

Data According to the services of banks used

In the above diagram the categorization is done on the basis of which banking services they generally used. 42% people using saving and another 42% using deposits services.16% using loans.

Data According to the duration of doing banking

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BANKING AND INVESTMENT In the above diagram the categorization is done on the basis of for how much time they are doing banking 42% said 2 year, 34% said 3 year, 14% said more than 3 year and 10% said 1 year.

Data According to the times of doing banking in a month

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BANKING AND INVESTMENT

In the above diagram the categorization is done on the basis of number of times in a month they do banking, 46% said 5 times, 44% said 10 times, 8% said 15 times and 2% said more than 15 times.

Data According to earlier investment done

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BANKING AND INVESTMENT In the above diagram the categorization is done on the basis of whether they have done any type of investment earlier period and 90% said yes, And 10% said No.

Data According to preference of doing investment

In the above diagram the categorization is done on the basis of the options on which people prefer to invest. Estate. In this 40% said gold, 32% said insurance,26% said deposits and 2% said Real

Data According to the medium used for investment

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BANKING AND INVESTMENT

In the above diagram the categorization is done on the basis of they choose for investment. In this 68% said bank, 28% said self, 4% said others.

Data According to the time period for investment

In the above diagram the categorization is done on the basis of the time period choose for investment, 52% said long term and 48% said short term.

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BANKING AND INVESTMENT

Data According to the percentage of income invested

In the above diagram the categorization is done on the basis of how much income they are going to invest, 40% said 40% of income, 30% said 30% of income, 20% said 20% of income, 10% said 10% of income.

Data According to the selection of bank for banking and Investment

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BANKING AND INVESTMENT

In the above diagram the categorization is done on the basis of the selection of bank for both banking and investment, 54% said yes and 46% said No.

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BANKING AND INVESTMENT

Analysis between income and bank selected for banking

Here the analysis is going to be done on the basis of the different income group people and the bank they currently using for doing banking. In the above diagram the income group of 2-3 lakh are generally from others category and the maximum people of 3-5 lakh income group are from hdfc bank. And nobody is related to the 5-7 and above 7 lakh income group.

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BANKING AND INVESTMENT

Analysis of the people aware about the banking services

In the above diagram the analysis is going to be done on the basis, to find out which category is

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aware

about

BANKING AND INVESTMENT the banking services and

which

category not. Here the maximum number of salaried class people shows that they are aware about the banking services. And all the business class people are fully aware about the banking services.

Analysis of the people on the basis of the income and selection of banking services

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BANKING AND INVESTMENT

In the previous analysis maximum people are salaried and they are having awareness about banking services. In this diagram, maximum salaried people of the income group of 2-3 lakh are using savings and deposits services. Whereas the income group of 3-5 lakh go with loan services Which shows that they are more deals with the services which can be used for its expansion.

Analysis of the people on the basis of the income and option selected for investment

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BANKING AND INVESTMENT

In the previous analysis the income group of 2-3 lakh are having awareness about banking services and when it comes to investment they shows more interest in investing in the gold option then insurance and then deposits. Whereas the income group of 3-5lakh are equally interested In investing in the gold,deposits and insurance options.

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BANKING AND INVESTMENT

Analysis of the people on the basis of the income and period selected for investment

In the above diagram it clearly shows that the people having income group of 2-3 lakh are equally interested in doing investment for long run as well as short Run. Where as the people of the income group of 3-5 lakh they are more interested in investing for the long run.

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BANKING AND INVESTMENT

Analysis of the people on the basis of the income and the percentage of income selected for investment

In the above diagram, we can clearly analyzed that the people who are related to the income group of 2-3 lakh are maximum interested in investing only 10% of their annual income.

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BANKING AND INVESTMENT And the income group of 3-5 lakh most of the people are equally interested in investing 10% and 30% and rest of them 20%.

Conclusions
After doing a thorough research on the various banking and investment services provided by the banks current times and conducting the survey followed by the analysis of the general trend prevailing in the market, we reached a few important conclusions. These are: Research details

Insurance and at

Plans

are

the

most provides

managed suitable

investment plans. ULIP provides life insurance the same time investment avenues. It is the ULIP plan which is totally linked with the market conditions and the returns also which now a days comes with the protection of insurance as well. They are generally made for the long term investment with high risk returns.

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BANKING AND INVESTMENT

Now a days according the awareness among the peoples of different age group they are generally taking up the insurance not just for the tax benefits but for the security options a well. If well planned, insurance can work favorably as effective savings tools, especially if investor also factors in the tax benefits. Contributions in to insurance plans provides Section 80C benefits up to Rs 1 lac invested and, at the time of maturity the proceeds are tax free under Section 10 (10D), making these preferred instruments for many.

Investment as a insurance plan and Mutual Funds are for a different class of investors. People who want to spread out their risk and still earn a handsome return; Mutual Funds and ULIP plans would be the right investment avenue. Although no tax breaks are offered, Mutual Funds have a potential to give extraordinary returns.

That may even compensate for the tax part. But there is a note of caution for the investors that they should constantly monitor their portfolio and the Scheme in which they have invested. Careful monitoring and an intelligent

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BANKING AND INVESTMENT approach could definitely help in earning fortunes.

Hence it may be concluded that both Unit Linked Insurance Plans and the Mutual Funds are good in their respective ULIPs offer domains. a better Investors should not club their insurance and investment needs. preposition in terms of returns to investors over traditional insurance plans. They cover life and over and above that they help in growing in the money of investors. It is always good that investors start early and select the right fully. insurance-cum-investment plan for themselves and utilize their tax break limit

Survey

After conducting the survey related to the banking and investment services. We are trying to find out the tendency and the thinking of the person related to banking and investment services. while doing the analysis we observe that in the age group of 20-30 yrs 80% are belong to the salaried class. In the above analysis this shows that these salaried class group are more interested in having

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BANKING AND INVESTMENT using the normal banking services such that savings and deposits.

And when we consider the all that salaried class and relate them with their investment pattern and the options chosen the are more interested and having preference in the option of gold, insurance then deposits may be because of the secure factor.

And when we consider the high income group with the age of 20-40 years and the income group of 3-5 lakh, they prefer equally for the all investment options except real estate and more than 50% are interested in investing in the long run and remaining in the short run.

Finally it can be concluded that the banking and investment pattern followed by different age and income group differ on the basis of the following factors:

Age
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BANKING AND INVESTMENT

Income Occupation

LIMITATIONS OF THE RESEARCH

As the samples are taken randomly and the population size of Delhi & NCR is small, sampling errors are inevitable.

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BANKING AND INVESTMENT

Time and other factors, which are beyond human limitation, have also a bearing on the study.

Simple Random and judgment sampling techniques were selected due to time and financial constraints.

The study heavily relies on primary data which has been collected from public at large; hence authenticity of data can pose as a limitation.

People are apprehensive and uncooperative in giving information at times.

The sample does not represent a universal sample as the data is collected on similar intercepts and do not represent each and every sector.

The research is done purely for academic purpose, not much of exploratory research is done for finding factor of banking and investment. A help from past experience and studies have been taken to design this research. So this research may not lead to conclusive results.

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BANKING AND INVESTMENT

Questionaire
Q1: what is your name? Ans Q2: what is your age? Ans Q3: what is your occupation?

(a)

Business Salaried Self Employed

(b)

(c)

(d) other

Q4: what is (approximately)

your

annual

income?

(a)

2-3 lakh lakh

(b)

3-5

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BANKING AND INVESTMENT

(c ) 5-7 lakh lakh or above

d)

Q5: According to you what is investment?

Ans .

Q6: In which bank you generally do banking?

(a)

HDFC Bank Bank

(b)

ICICI

(c) Standard Chartered Bank

(d) other

Q7: Are you aware of all the banking services provided by your bank?

(a)

Yes

( b)

NO

Q8: which services of bank you generally used ?

(a) Saving accounts loans

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( b)

BANKING AND INVESTMENT

(c ) deposits

( d ) others

Q9: From how many years you doing banking with this bank ? a. b. c. d. 1 years 2 years 3 years More than 3 years

Q10: How many times you do banking in a month ?

a. 5 Times b. 10 Times c. 15 Times d. 20 Times e. More than 20 Times Q11: Have you ever done any type of investment?

(a) Yes

(b)

No

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BANKING AND INVESTMENT

Q 12: which type generally prefer?

(a) Real

of

investment

you

estate (d)

(b) gold insurance

(c) deposits

Q 13: what investment?

is

your

medium

of (b)

doing

(a) bank financial adviser (c) Self

(d) other

Q 14: For how much time period you generally invest? (a) short term (b) long term

Q 15: How much percentage of your income you invest? (a) 10% (c) 30% (b) 20% (d) 40%

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BANKING AND INVESTMENT

Q 16: Do you prefer same or single bank for both banking and investment? (a) Yes (b) No

.Thank you for filling up the form .

Bibliography
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BANKING AND INVESTMENT

Newspapers www.standardchartered.com Economics Times www.moneycontrol.com www.google.com www.paisawaise.com www.bajajallianz.com www.bajajallianzlife.com/in www.iciciprulife.com www.hdfcinsurance.com www.bajajcapital.com www.licindia.com www.icicidirect.com www.google.com

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