SVT presentation_1

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Presentation on Financial Management A. Rajan, Country Head-Operations, HDFC Bank 28th January 2006

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2 Financial Planning. AGENDA Reaching Out. Banking With Value.

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3 Customised, Tailor Made and an On going Process to evaluate ones financial objective Financial Planning Financial planning is assessing Financial situation, determining its objectives Identifying Tools to achieve the set objective Formulating financial strategies./Plans Monitoring & Reviewing the set plan

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4 Income & Expense- Fixed and Variable Our Understanding Safety of Capital Income Earned - tax Free for Trusts Cash Flow Variable in Nature Optimum returns with Minimum Risk Investments Short term & Long term

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5 General Trust Approved Avenues Fixed Deposits Central & State Government Securities Mutual funds - Across Scheme Categories Govt.. of India 8% tax Saving Bonds

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6 Investment Options : Fixed Income. Investment Options Coupon / Interest Rate Maturity Interest Payment Liquidity 8% RBI Relief (Taxable) bonds 8.00% 6 Yrs Half Yearly / Cumulative Low Bank Fixed Deposits 6.25% 3 Yrs Half Yearly / Cumulative Medium Bonds/ Securities Approved By Central/ State Govt. Security Specific Security Specific Half Yearly/ Cumulative Medium

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7 * Trusts which come under Bombay Public Trust act 1950 can invest only in trust approved schemes. There are trust approved schemes in each category ** Comparable to Savings account , Return on Savings Account 3.5% *** Depending upon the applicable trust laws in a particular state. Comparable to Fixed Deposits across tenures $$ Returns are purely indicative in nature & no way to be taken as a commitment from the bank. Past performance of Equity Investments are not to be taken as indicative of future results. Investment Options Mutual Funds Schemes Available* Possible Rate of return Maturity Liquidity Comparable To Liquid Funds/Floating Rate funds **$$ 5.50% 1 Day High Savings Account Fixed Maturity Plans***$$ 6.50-7.00% 1 Month to 26 Months Medium Bank Fixed Deposit Equity Funds $$ 12-15% Open Ended Medium -

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8 Current Typical Portfolio of Trust Accounts Instrument % Allocation Time Horizon Possible returns Weighted Average Return 8% RBI Relief Bonds 35% 6 Years 8% 2.80% Banks & Other Fixed Income Options 65% Across Tenures 6.50% 4.23% Total 100% 7.03%

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9 Recommended Investment Strategy Investment to be broken in two Parts - Short term & Long Term Short term investments to cater to all variable Expenses & Contingencies Short term surpluses currently held in Banks Accounts, Recommended to switch to Liquid fund Long term investments to be considered in the following - Fixed Maturity Plan - 8% GOI Savings Bonds - Equity Mutual funds - Investments In Bluechip Stocks

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10 Recommended Portfolio Instrument % Allocation Time Horizon Possible Returns Weighted Average Return 8% RBI Relief Bonds 45% 6 years Lock in 8.00% 3.60% Liquid Schemes $$ 15% 1 day onwards 5.50% 0.83% Fixed Maturity Plans 20% 1 Month to 26 Months 7.00% 1.40% Equity Funds $$ 20% 1 year and above 15.00% 3.00% Total 100% 8.83% $$ Returns are purely indicative in nature & no way to be taken as a commitment from the bank. Past performance of Equity Investments are not to be taken as indicative of future results.

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11 Banking With Value

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12 …a comprehensive savings account …to transact 24/7 at the click of a button …the best pricing across all products and services …hassle- free fee / donation collection ...customised banking solutions to suit all our needs …guidance on investments, remittances …FCRA account for donations received form overseas ...instant funds transfer across the country …salary accounts for employees You Need…

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13 Banking Services to Temple Trusts Important Value Added Offering …. Assist in Financial Planning of Trust. Collection of Cash and Coins (Currency Chest support). Usage of Branch channel for Temple offerings. Offer Internet based banking channels (Net Banking) and offer better facility to Devotees. ……… than only a branch within the Temple premise or ATM or Fixed Deposits offering !! Time to switch to a Bank that offers value added services

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14 NetBanking, PhoneBanking, BillPay & InstaAlert Facility Demand Drafts on Bank & other locations at special price Intercity / Multi-city Banking with a Payable at Par Cheque book Quicker outstation cheque collection at all Bank locations at special price Logistics services (Cash delivery, Cash pickup, Cheque pickup) Funds transfer facility to another bank account across the country Savings Account with a nominal Average quarterly balance A Comprehensive Savings Account

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15 - Special FCRA account for donations / foreign contributions received - Accounts opened / transferred with MOHA approval - Preferential Exchange Rates - Cheque book facility - On line tracking on status of funds FCRA Accounts for foreign contribution

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16 Payments or Fee from Members Donations from Public Sale of Products TRUSTS FLOW OF FUNDS

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17 - Donation / fee collection at any of the Bank Branches - Direct credit of fees / donations into the Trust account on realization of funds - Customized fee / donation deposit slips - Fee collection via cheque / DD / MC / funds transfer - Daily report of the donations / fees received with category-wise break-up for each payment Hassle free Donation/ Fee Collection

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18 NetBanking, PhoneBanking, BillPay & InstaAlert Facility International debit cards with higher limits on ATMs and POS. Free Intercity / Inter-branch Banking. PAP Cheque book facility Quarterly / Monthly Account Statements Logistics services (Cash delivery, Cash pickup, Cheque pickup) Access to the account through other Bank ATMs. Zero Balance Savings Account Manage your employee salary payments with ease…… Preferential Rates on Loan & Credit Card Products. Salary Accounts for Employees

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19 A range of mutual fund options Investment into RBI & other Bonds Dedicated advisor to assist you in your investments Investment Solutions

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20 Banks can assist in Reaching out to devotees by : Offer Payment gateway facility through Bank site for : Donations to Temple or specific Projects / Trusts. Paid Special Darshans Accommodations and Room Bookings Prasad Special Aarti Music and Books. Aarti and Darshan on the Bank’s Net banking Site. REACHING OUT

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21 Phone Banking BillPay DirectPay (Direct Debit from Account) Credit Card Payment Gateway InstaPay Channels Services SOLUTIONS ATM NetBanking Branch Banking

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22 Simple and Streamlined Process No hassles of collection and handling of cash or cheque Various channels for accepting payments Proper reports for easy reconciliation Long Reach – across the country & beyond Collections and Payments

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23 Discussions

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24 Thank You