Professional Documents
Culture Documents
In this project report an attempt is made to bring out the details regarding the
history and achievements for the dynamic growth of the Muthoot finance. The era of
finance which has been taken a talkative role has also been described.
COMPANY PROFILE
COMPANY BACKGROUND:
The Muthoot Group is a 123 years old business based in India and interested in
financial services, Information technology, Media and Entertainment, Health care,
Education, Power generation, Infrastructure, Plantations, Precious metals and Hospitality.
The Group takes its name from the Muthoot Family based in Kerala. The Company was
set up by Muthoot Ninan Mathai in 1887 at Kozhencherry , a small town in the erstwhile
Kingdom of Travancore (Kerala). It was then later taken over by his son M John Muthoot
who incorporated the Finance division of the group which was till then primarily involved
in wholesale of grains. The company is now managed by the third and fourth generation
of its family members.
Muthoot Fincorp Limited (MFL) the flagship Company of the 20,000 Crore
Muthoot Pappachan Group . A market leader in the gold loan business Muthoot Fincorp
has over 1280 branches spread across the cities, towns and villages of India, the Company
serves an average of 45,000 customers a day. Muthoot Fincorp’s long-standing
experience, expertise and stronghold in the semi urban and rural areas have enabled the
Company to provide quick, customized finance options and investment products,
maximizing returns to the population. The loan products of Muthoot Fincorp are uniquely
structured to serve people who do not have easy access to mainstream commercial banks.
MFL counts the satisfaction and long-service of its people as a cornerstone of its
success. Fostering teamwork, nurturing creativity and rewarding dedication to
commitment are systematically and professionally managed. Excellence and innovation
are encouraged and rewarded. Ensuring MFL’s people remain at the competitive edge,
best practice in the area and unique motivational programs are regularly carried out by the
Training and HR departments.
The company recently announced plans for an IPO (Initial Public Offering) before
the year 2014. In addition there are plans to implement an ESOP (Employee Stock
Ownership Plan) before 2012
These ethics have been a guiding light to the path of his successors and have
permeated every strata of the Muthoot Pappachan Group. The same values still govern
every decision in the Group. When asked for his formula to success he quipped,
“unflinching faith in the Almighty and unshakeable determination to face and overcome
challenges.” In dire circumstances and sometimes in the face of loss he was heard to
quote that a debit on earth will be a credit in heaven. A man, known to adhere to his word,
he instilled these values throughout the organisation he nurtured. The Muthoot Pappachan
Group carries Muthoot Pappachan’s legacy on with his words in our hearts “I am because
God is with me.”
COMPETITORS
In gold loan market there are different players like banks, NBFC and local pawn
brokers and jewelries. In banking sector HDFC, Bank of India, Axis Bank, SBI, syndicate
Bank etc. are providing gold loan. In Non-Banking Financial Sector there more
competitions among the competitors and also there big competitors name like Muthoot
Finance, Mannapuram gold loan, Karvy Finance, Future capital gold loan, Reliance gold
loan, Mahindra Finance, and also some other players are involved. In India nearer about
70 per cent of market share is in the hands of local jewelries and pawn brokers. Muthoot
Fincorp objectives is to capture these 70 per cent market share and its biggest competitors
is Muthoot Finance and Mannapuram gold loan. Some of the new players like Karvy
Finance, Mahindra Finance gold loan, Future Capital comes into market which is a threat
for Muthoot Fincorp.
ACHIEVEMENTS
Muthoot Finance is the highest credit rated Gold Loan company in India, with a
credit rating of AA-(CRISIAL) for its long term debt and P1+ (CRISIAL) and A1+
(CRISIAL) for its short term debt Instrument. Its Mahila Mitra loan portfolio touches
10,000 women micro entrepreneurs. In last two months it successfully opened 200
branches in northern part of India.
PRODUCT PROFILE
The year 1939 saw the emergence of the present day corporate giant- “The
Muthoot Group”. It embarked on its unending mission of providing excellent services to
its customers by establishing its first unit in Kozhencherry.
The clear-cut vision and ideals of our founder patron late Shri. Ninan Mathai
Muthoot and Founder chairman late Shri. M George Muthoot has made the Muthoot
Group the Largest financial Group of its kind in India.
Undoubtedly the mission is to win the confidence of the customer through
unmatched, prompt and personalized service.
3. EDUCATION DIVISION
Since 1962
St. George’s School, Alakananda, New Delhi
St. George’s School, Defence colony, New Delhi
MGM Muthoot Nursing School, Kozhencherry, Pathanamthitta
Staff Training Colleges at Ernakulam & New Delhi
Since 1992
Kerala’s largest I-lire Purchase & Leasing Finance Company
Over Drive Car Loan Facility provides loans with lowest rates with easy and
flexible repayment.
Loan also given to used Vehicles
7. MUTHOOT BUILDERS
1) Trans Cash
2) Xpress Money
3) First Remit
4) Instant Cash
5) Money Gram
Outward Remittance
1) Wiremoney
Since 2001
All major currencies and travelers cheques accepted for encashment
Commission free encashment
Sale of major currencies and travelers cheques
Possess Authorized Dealer Category II license from RBI
12. MUTHOOT PRECIOUS METALS CORPORATION
The group has also ventured into power generation by tapping into non
conventional energy resources. The group in association with Suzlon Energy Corporation
has installed two wind power units at Thirunelveli
to generate electricity from wind.
14. MEDIA
Muthoot Group has made a grant entry into the world of media & broad casting by
setting up an FM radio station at Chennai.
Helps the customers to book their national as well as international flight tickets. It
also helps people to have passport and visa, and also to book train tickets.
Muthoot Group has forayed into the market, helps the customers to multiply their
fortune in Share Trading.
Latest venture from the Muthoot Group, being a member of MCX, NCDEX and
NMCE Muthoot Commodities provides a platform for commodity future trading.
1. The resources mobilized are given out as gold Loans to customers. This investors
money is guaranteed by 120% of gold kept in our strong rooms.
2. We offer the best rate of interest- up to 12%. In our Doubling Bond, We give 17%
interest and in 72 months the bond amount doubles.
3. The Bond holder is free to close the deposit at anytime. Investors in shares and
insurance do not have this facility.
9. Customer can avail a loan up to 90% the Bond amount, through any of our branches.
10. You can suggest a nominee for your investment.
11. Closing of the gold Bond can be effected through any of our branches.
1. For every 100 crs. of investment in Bonds, we have 140 crores of gold with us.
3. Our rate of interest is 2.5% to 3% higher than the interest rates of nationalized
/schedule banks.
4. We have an unblemished track record 01124 years. Wide network of over 2500
branches across the country facilities customers to withdraw the amount of Bonds/Interest
from any part of the country.
5. USP - Forex
Can y and sell all important currencies.
Accepted as Authorized Dealer by the RBI (License for sending money to foreign
countries) category II.
All Muthoot Finance branches can buy foreign currencies.
Travel cheques are issued for all major currencies and also can be en cashed.
We issue electronic travel cards for all major currencies and the same can be used
in foreign countries, as ATM card or Debit Card.
You can Send money to foreign countries through Muthoot. Exchange Companies.
8. USP-MWMS
Dealing in life Insurance Investment Products
Advice on best insurance product of all major Insurance Companies
Market Linked Products which are consistently delivering good return
Unit linked and Investment oriented Insurance Plans
Provides Flexibility gives Protection to savings of life
Liquidity, high returns, Tax benefits, Insurance Cover, option to switch among
funds and continued advices to maximize health.
Excellent after sales service and redemption advises.
SUGGESTIONS
The company can also give attractive offers to old customers as well as
prospective new customers.
The company can also look into new ventures as it has established itself as the
leader in gold loan financing field.
CONCLUSION
It helped me to find out the different factors responsible for the success of the
muthoot finance companies.
The major finding that can be concluded from this study is that Muthoot Finance
Limited is still the best gold financing company in India.
This experience has helped me gain knowledge about the business of gold loan financing
in India.
WEBSITES
http://www.muthootfinance.com/
http://www.thehindubusinessline.in/2010/11/27/stories/2010112751420600.htms
http://www.theequitydesk.com/forum/forum_posts.asp?TID=2635&PN=1
INTRODUCTION
PROMOTER
BUSINESS FOCUS
CAPITAL STRUCTURE
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up
capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's
equity and about 17.6% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by
Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The
shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The
bank's American Depository Shares are listed on the New York Stock Exchange (NYSE)
under the symbol 'HDB'.
DISTRIBUTION NETWORK
TECHNOLOGY
Increase market share in India’s expanding banking and financial services industry
by following a disciplined growth strategy focusing on quality and not on quantity and
delivering high quality customer service. Leverage our technology platform and open
scaleable systems to deliver more products to more customers and to control operating
costs. Maintain current high standards for asset quality through disciplined credit risk
management.Develope innovative products and services that attract the targeted
customers and address inefficiencies in the Indian financial sector. Continue to develop
products and services that reduce bank’s cost of funds. Focus on high earnings growth
with low volatility.
PRODUCT SCOPE:
HDFC Bank offers a bunch of products and services to meet the every need of the people.
The company cares for both, individuals as well as corporate and small and medium
enterprises. For individuals, the company has a range accounts, investment, and pension
scheme, different types of loans and cards that assist the customers. The customers can
choose the suitable one from a range of products which will suit their life-stage and
needs. For organizations the company has a host of customized solutions that range from
funded services, Non-funded services, Value addition services, Mutual fund etc. These
affordable plans apart from providing long term value to the employees help in enhancing
goodwill of the company. The products of the company are categorized into various
sections which are as follows:
D. Forex Services
Trade Finance
Traveler’s Cheques
Foreign Currency Cash
Foreign Currency Drafts
Foreign Currency Cheque Deposits
Foreign Currency Remittances
Forex Plus Card
E. Payment Services
Net Safe
Prepaid Refill
Bill Pay
Direct Pay
Visa Money Transfer
E-Monies Electronic Funds Transfer
Excise & Service Tax Payment
G. Cards
Silver Credit Card
Gold Credit Card
Woman's Gold Credit Card
Platinum plus Credit Card
Titanium Credit Card
Value plus Credit Card
Health plus Credit Card
HDFC Bank Idea Silver Card
HDFC Bank Idea Gold Card
HDFC Bank began its operations in 1995 with a simple mission to be a "World-class
Indian Bank". They realized that only a single-minded focus on product quality and
service excellence would help us get there. Today, they are proud to say that they are well
on our way towards that goal. It is extremely gratifying that their efforts towards
providing customer convenience have been appreciated both nationally and
internationally.
QUALITY POLICY
SECURITY: The bank provides long term financial security to their policy. The bank
does this by offering life insurance and pension products.
TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence,
it will aim to manage their investments very carefully and live up to this trust.
INNOVATION: Recognizing the different needs of our customers, the bank offers a
range of innovative products to meet these needs.
INTEGRITY CUSTOMER CENTRIC PEOPLE CARE “ONE FOR ALL AND ALL FOR
ONE” TEAM WORK JOY AND SIMPLICITY
PROBLEM DEFINATION:
Personal Banker were with good background human being and through rigorous process
of recruitment but still not able to perform up to the expectation level of company, HR is
not able to sort out the problem why the performance is not coming even after giving the
full marketing and operational support. The communication technique and dealing with
the customers is also a problem to the personal banker.
PRIMARY OBJECTIVES:
To acquire new customer by convincing them and to promote the benefits of those
which are provided by the bank.
To find the different way of convincing customers.
To study brand image of the bank.
To increase the business of the bank.
SECONDARY OBJECTIVES:
PRODUCT SCOPE:
Studying the increasing business scope of the bank. Market segmentation to find the
potential customers for the bank. To study how the various products are positioned in the
market. Corporate marketing of products. Customers’ perception on the various products
of the bank.
All the findings and conclusions obtained are based on the survey done in the
working area within the time limit. I tried to select the sample representative of the whole
group during my summer training. I have collected data from people linked with different
professional at Gorakhpur.
RESEARCH PLAN:
PRELIMINARY INVESTIGATION:
In which data on the situation surrounding the problems shall be gathered to arrive
at.
The correct definition of the problem. An understanding of its environment.
RESEARCH DESIGN:
Research was initiated by examining the secondary data to gain insight into the problem.
By analyzing the secondary data, the study aim is to explore the short comings of the
present system and primary data will help to validate the analysis of secondary data
besides on unrevealing the areas which calls for improvement.
The data for this research project has been collected through self Administration. Due to
time limitation and other constraints direct personal interview method is used. A
structured questionnaire was framed as it is less time consuming, generates specific and to
the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct
answers. In questionnaires open ended and closed ended, both the types of questions has
been used.
COLLECTION OF DATA:
SECONDARY DATA: It was collected from internal sources. The secondary data was
collected on the basis of organizational file, official records, news papers, magazines,
management books, preserved information in the company’s database and website of the
company.
PRIMARY DATA: All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of
primary data was direct personal interview through a structured questionnaire.
SAMPLE SIZE: My sample size for this project was 50 respondents. Since it was not
possible to cover the whole universe in the available time period, it was necessary for me
to take a sample size of 50 respondents.
RESEARCH LIMITATIONS:
It was not possible to understand thoroughly about the different marketing aspects of the
Financial Consultant within 60 days. As stipend, money was not given it was difficult to
continue the project work. All the work was limited in some limited areas of Gorakhpur
so the findings should not be generalized. The area of research was Gorakhpur and it was
too vast an area to cover within 60 days.
6.1 CONCLUSIONS:
HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank already
has good number of employees on board and is recruiting personal banker heavily to take
the headcount to many more. It is on the brim of increasing its customers through its
attractive schemes and offer.
The project opportunities provided was market segmentation and identifying prospective
customers in potential geographical location and convincing them to attract more
customers so that new business opportunities of the bank can be explored. Through this
project, it could be concluded that people are not much aware about the various products
of the bank and many of them not interested to open an account, to invest money at all.
services was considered as unsought good which require hard core selling, but in
changing trend in income and people becoming financially literate, the demand for
banking sector is increasing day by day.
So, at last the conclusion is that there is tough competition ahead for the company from
its major competitors in the banking sector. Last but not the least I would like to thank
HDFC Bank for giving me an opportunity to work in the field of Marketing and
Operation. I hope the company finds my analysis relevant.
SUGGESTIONS:
To make people aware about the benefit of becoming a customer of HDFC Bank,
following activities of advertisement should be done through
Investment Banking
Accounting
Insurance
In the following years, industry and service sectors were opened up for
foreign direct investment. The reforms ended the dominance of the public
sector and reduced direct government control on industrial investments.
TCFSL has over 100 branches spanning all critical markets in India.
Mission: We will only do what’s right - for all our stakeholders, including
our employees, customers and society at large.
History and Background of Tata capital Financial
services Limited
Board of Directors
LEASING
DISCOUNTING
Bill Discounting is a discount/fee which a bank takes from a seller to
release funds before the credit period ends. This bill is then presented to
seller's customer and full amount is collected. Bill Discounting is mostly
applicable in scenarios when a buyer buys goods from the seller and the
payment is to be made through letter of credit.
When a buyer buys goods from the seller, the payment is usually made
through letter of credit. The credit period may vary from 30 days to 120
days. Depending upon the credit worthiness of the buyer, the bank
discounts the amount that needs to be paid at the end of credit period.
Bill Discounting is also known as Invoice Discounting.
It means that the bank will charge the interest amount for the credit
period as an advance from the buyer’s account. After that, the bill
amount is paid as per the end of the time span with respect to the agreed
upon document between the buyer and seller.
Bill Discounting is a major trade activity. It helps the seller's get funds
earlier on a small fees or discount. It also helps the bank earn some
revenue. The borrower or (seller's) customer can pay money on the due
date of the credit period.
FACTORING
Factoring is a financial service in which the business entity sells its bill
receivables to a third party at a discount in order to raise funds. It differs
from invoice discounting. The concept of invoice discounting involves,
getting the invoice discounted at a certain rate to get the funds, whereas
the concept of factoring is broader. Factoring involves the selling of all
the accounts receivable to an outside agency. Such agency is called a
factor.
The seller makes the sale of goods or services and generates invoices for
the same. The business then sells all its invoices to a third party called
the factor. The factor pays the seller, after deducting some discount on
the invoice value. The rate of discount in factoring ranges from 2 to 6
percent. The factor does not make the payment of all invoices
immediately to the seller. Rather, it pays only up to 75 to 80 percent of
invoice value after deducting the discount. The remaining 20 to 25
percent of the invoice value is paid after the factor receives the payments
from the seller’s customers.
FORFEITING
The terms forfeiting is originated from a old French word ‘forfait’, which
means to surrender ones right on something to someone else. In
international trade, forfeiting may be defined as the purchasing of an
exporter’s receivables at a discount price by paying cash. By buying these
receivables, the forfeiter frees the exporter from credit and the risk of not
receiving the payment from the importer.
2. Discount fee, interest payable by the exporter for the entire period of
credit involved and deducted by the forfaiter from the amount paid to the
exporter against the availised promissory notes or bills of exchange.
SECURITIZATION
MUTUAL FUNDS
CREDIT CARDS
Credit cards have higher annual percentage rates (APRs) than other
forms of consumer loans and lines of credit. Interest charges on the
unpaid amount charged to the card usually begin one month after
making a purchase.
HIRE PURCHASE
A credit rating agency (CRA) is a company that rates debtors on the basis
of their ability to pay back their interests and loan amount on time and
the probability of them defaulting. These agencies may also analyse the
creditworthiness of debt issuers and provide credit ratings to only
organisations and not individuals consumers. The assessed entities may
be companies, special purpose entities, state governments, local
governmental bodies, non-profit organisations and even countries.
Individual customers are rated by specialised agencies known as credit
bureaus that provide a credit score to every customer based on his/her
financial history.
The debt instruments rated by CRAs include government
bonds, corporate bonds, CDs, municipal bonds, preferred stock, and
collateralized securities, such as mortgage-backed
securities and collateralized debt obligations.
Credit rating agencies in India do not have a distant past. They came into
existence in the second half of the 1980s. As of now, there are six credit
rating agencies registered under SEBI namely, CRISIL, ICRA, CARE,
SMERA, Fitch India and Brickwork Ratings. Ratings provided by these
agencies determine the nature and integrals of the loan. Higher the credit
rating, lower is the rate of interest offered to the organisation.
VENTURE CAPITAL
CREDIT DERIVATIVES
INSURANCE
Key Features:
Speedy processing
TCFSL is presenting Two Wheeler Loans for super bikes with attractive
payback options to suit your needs.
Key Features:
Personal Loans
Key Features:
No hidden charges
Loan against Property
Key Highlights
Loans from 5 Lakhs up to 5 Crores
Simple documentation
100% transparency
Attractive interest rates
Easy monthly repayment through ECS or PDCs
Loan tenure of up to 15 years
At Tata Capital, customers are the centre of our world and they offer a
wide range of products to make sure their world is both comfortable and
secure.
Documents Required
Photograph
PAN Card
Residence proof
2. You can also enjoy all benefits of being a Share/ Mutual Fund/
Securities holder like Bonus, Dividends etc.
Product offer:
Services includes:
Tata Card
Tata Card* combines the benefits of a globally accepted Credit Card with
the advantages of a highly rewarding Empower program.
Empower is India’s first multi-brand loyalty program which offers you the
option to earn accelerated points on your Tata Card across a wide range
of shopping categories and brands. Further, the redemption of these
points is made easy via the facility to redeem against in-store purchases
at our partner outlets.
Key Features:
*Tata Card is a White Label Credit Card issued, operated and serviced by
the State Bank of India (“SBI”) and marketed by TCSFL
Commercial Finance
Our asset-based business loans are just one facet of our commercial
finance solutions.
Our solutions also include business loans to help improve cash flow, debt
consolidation, working capital finance, debt restructuring and more.
Key Features
Working Capital Loans from Tata Capital could provide you with a
dependable source of funding to continuously scale your business to new
heights.
Key Features
Bill Discounting:
Paperless Transactions
Channel Finance:
Letter of Credit:
Usance LC is deferred payment for 1-3 years and customers pay on the
maturity date. In case of Sight LC, Sight LC gets converted into BC for 3
years on LC Maturity date with option of rollover at the end of every 6
months or 12 months and customers have options to Repay and clear the
foreign currency liability partially or fully.
Key Features
Offers two types of Letters of Credit: Sight & Usance LC, both
inland & foreign
The Lease Rental Discounting solutions from Tata Capital allow you to
secure financing against future rentals on your commercial properties
which are leased out.
Key Features
Simple documentation
Equipment Finance:
Key Features
Infrastructure Finance:
Tata Capital, undertake construction equipment financing and
refinancing of used construction equipment. They are leading financers of
construction equipments of original equipment manufacturers.
They have Tata capital mart a unique B2B & B2C e-commerce portal,
Tata Capital Mart connects the entire value chain and serves as a one-
stop-shop for the Construction Equipment industry.
Lease solutions:
Wealth Product Distribution Services are based on your portfolio and risk
tolerance. Experienced professionals work with you to design an
investment strategy to help meet your current and future needs before
allocating your resources.
Tata Capitals Wealth Product Distribution Services are not only designed
to allow proper allocation of funds, but also to secure your financial
future for generations. Our offerings include:
Mutual Funds
Life Insurance
Bonds
Comparison between Industry and Tata Capital
Financial services Limited
TCFSL has Tata Capital Mart a unique B2B & B2C e-commerce portal, it
connects the entire value chain and serves as a one-stop-shop for the
Construction Equipment industry. The ease of navigating through the
site to search relevant equipments is assisted by applying filters on the
Asset category, Location of the asset, Manufacturer, Year and Price
range.