A SUMMER INTERNSHIP REPORT

ON
MUTUAL FUNDS
At
HDFC BANK LIMITED

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)
By
K. ANJANA
HALL TICKET NO: 21WJ1E0045

UNDER THE GUIDANCE OF

Mr. Srikanth Reddy
(Assistant Professor)
 (APPROVED BY AICTE, NEW DELHI, ACCREDIATED BY NBA, AFFILIATED TO JNTUH )

IBRAHIMPATNAM-501506
(2020-2022)

Ibrahimpatnam, RangaReddy District, Hyderabad - 501 506

BONAFIDE CERTIFICATE

This is to certify that the internship in “MUTUAL FUNDS” at “HDFC BANK LIMITED”
is a bonafide record of work done by Ms. K. ANJANA Roll. No. 21WJ1E0045 from 17th
November 2022 to O4th January in partial fulfillment of the requirement for the award of the
Degree of Master of Business Administration.

Associate director
Dr.Anand Bethapudi
 ACKNOWLEDGEMENT

The result is always the sum of all parts. Likewise, this report put forth was possible with the
help of many people involved in the completion of this INTERNSHIP project.
It is a great for me to record her my deep sense to Mr. VSN MURTHY (Assistant
Manager) who accorded permission to do project work at (HDFC BANK LIMITED) and
guiding in doing my project work
I extent my gratitude to Dr. B. MADHUSUDHAN REDDY (HOD), Department of
Master of Business Administration, GURU NANAK INSTITUTE OF TECHNOLOGY
for accommodating me in the family of Gurunanak.
My must sincere thanks to my guide, Mr.Srikanth Reddy (Assistant Professor), GURU
NANAK INSTITUTE OF TECHNOLOGY, for motivating me to give my best for my project
without which this project report would not be called a success.
 STUDENT DECLARATION

I hereby declare that this Internship Report with reference to “MUTUAL FUNDS” at
“HDFC BANK LIMITED”, submitted by me to the Department of Business Management,
Guru Nanak Institutions Technical Campus, Ranga Reddy is a Bonafide work undertaken by
me and it is not submitted to any other University or Institution for the award of any degree
Diploma / certificate or published any time before.

Name of the student. Signature of the student

K. ANJANA
HT.NO 21WJ1E0045
 TABLE OF CONTENTS
SL. No TITLE PAGE NO:

1 OBJECTIVES OF INTERNSHIP 6

2 INDUSTRY PROFILE 7-11

3 COMPANY PROFILE 12-13

4 VISION &MISSION 13-14

5 ORGANISTION STRUTURE 15-16

6 PRODUCTS AND SERVICE OF THE COMPANY 17-20

7 JOB PROFILE 21

8 DEPARTMENT PROFILE 22

9 RESPONSIBILITIES AND DESCRIPTION OF THE 22

JOB

10 ACTIVITIES PERFORMED 23

11 KEY OBSERVATIONS 24

12 KEY SKILLS LEARNED 24

13 FINDINGS AND SUGGESTIONS 25

14 FEED BACK OF THE COMPANY 25

INTRODUCTION

In this modernistic era, money plays an important role in everyone’s life. In order to
overcome the problems in future they have to invest their money. Investment cultivates the
habit of saving in one’s life. Investment goals vary from person to person depending upon
their requirements. Investing the hard earned money is an indispensable activity of every
human being. Investment is the commitment of funds which is saved from current
consumption with the hope that some benefits will be received in future. Savings of the
people are invested in various assets depending on their preferred risk and return, safety of
money, liquidity, the available avenues for investment, etc.

Investment is nothing but buying a financial product with an expectation of favorable future
returns. Investing is a serious subject that can have a major impact on investor’s future well-
being. Investors have a lot of investment avenues to park their savings. The risk and returns
available from each of these investment avenues are completely different.

The development of any investment project represents a decision that brings its
corresponding costs and risks. In order to guarantee the best results, it is vital to know the
meaning of financial instruments such as mutual funds and capital funds. While choosing
between those two, you must consider your risk profile, ideal costs and expectations for your
level of involvement in decision-making.

Objectives of Internship
 Gaining hands on experience, learning about business analysis techniques, building
professional network, enhance problem solving skills.
 To analyze the better investment option for an individual investor.
 To create awareness in the minds of investor in terms of risk, return, liquidity and
marketability of their investments.
 To compare and study the relationship between the risk and return of equity shares
and mutual funds.
 To provide information about pros and cons of investing in equity and mutual funds.
Industry Profile
A bank is a financial institution that accepts deposits and channels those deposits into
lending activities. Banks primarily provide financial services to customers while enriching
investors. Government restrictions on financial activities by banks vary over time and
location. Banks are important players in financial markets and offer services such as
investment funds and loans. In some countries such as Germany, banks have historically
owned major stakes in industrial corporations while in other countries such as the United
States banks are prohibited from owning non-financial companies. In Japan, banks are
usually the nexus of a cross-share holding entity known as the keiretsu. In France,
bancassurance is prevalent, as most banks offer insurance services (and now real estate
services) to their clients.
Introduction
India’s banking sector is constantly growing. Since the turn of the century, there has been a
noticeable upsurge in transactions through ATMs, and also internet and mobile banking.
Following the passing of the Banking Laws (Amendment) Bill by the Indian Parliament in
2012, the landscape of the banking industry began to change. The bill allows the Reserve
Bank of India (RBI) to make final guidelines on issuing new licenses, which could lead to a
bigger number of banks in the country. Some banks have already received licences from the
government, and the RBI's new norms will provide incentives to banks to spot bad loans and
take requisite action to keep rogue borrowers in check.
Over the next decade, the banking sector is projected to create up to two million new jobs,
driven by the efforts of the RBI and the Government of India to integrate financial services
into rural areas. Also, the traditional way of operations will slowly give way to modern
technology.
Market size
Total banking assets in India touched US$ 1.8 trillion in FY13 and are anticipated to cross
US$ 28.5 trillion in FY25.
Bank deposits have grown at a compound annual growth rate (CAGR) of 21.2 per cent over
FY06–13. Total deposits in FY13 were US$ 1,274.3 billion.
Total banking sector credit is anticipated to grow at a CAGR of 20.1 per cent (in terms of
INR) to reach US$ 2.4 trillion by 2020.
In FY15, private sector lenders witnessed discernable growth in credit cards and personal
loan businesses. HDFC Bank witnessed 151.6 per cent growth in personal loan disbursement
in FY15, as per a report by Emkay Global Financial Services. Axis Bank's personal loan
business also rose 49.8 per cent and its credit card business expanded by 31.1 per cent.
Investments
Bengaluru-based software services exporter Mphasis Ltd has bagged a five-year contract
from Punjab National Bank (PNB) to set up the bank’s contact centres in Mangalore and
Noida (UP). Mphasis will provide support for all banking products and services, including
deposits operations, lending services, banking processes, internet banking, and account and
card-related services. The company will also offer services in multiple languages.
Microfinance companies have committed to setting up at least 30 million bank accounts
within a year through tie-ups with banks, as part of the Indian government’s financial
inclusion plan. The commitment was made at a meeting of representatives of 25 large
microfinance companies and banks and government representatives, which included financial
services secretary Mr GS Sandhu.
Export-Import Bank of India (Exim Bank) will increase its focus on supporting project
exports from India to South Asia, Africa and Latin America, as per Mr Yaduvendra Mathur,
Chairman and MD, Exim Bank. The bank has moved up the value chain by supporting
project exports so that India earns foreign exchange. In 2012–13, Exim Bank lent support to
85 project export contracts worth Rs 24,255 crore (US$ 3.96 billion) secured by 47
companies in 23 countries.
Government Initiatives
The RBI has given banks greater flexibility to refinance current long-gestation project loans
worth Rs 1,000 crore (US$ 173.42 million) and more, and has allowed partial buyout of such
loans by other financial institutions as standard practice. The earlier stipulation was that
buyers should purchase at least 50 per cent of the loan from the existing banks. Now, they get
as low as 25 per cent of the loan value and the loan will still be treated as ‘standard’.
The RBI has also relaxed norms for mortgage guarantee companies (MGC) enabling these
firms to use contingency reserves to cover for the losses suffered by the mortgage guarantee
holders, without the approval of the apex bank. However, such a measure can only be
initiated if there is no single option left to recoup the losses.
SBI is planning to launch a contact-less or tap-and-go card facility to make payments in
India. Contact-less payment is a technology that has been adopted in several countries,
including Australia, Canada and the UK, where customers can simply tap or wave their card
over a reader at a point-of-sale terminal, which reads the card and allows transactions.
SBI and its five associate banks also plan to empower account holders at the bottom of the
social pyramid with a customer call facility. The proposed facility will help customers get an
update on available balance, last five transactions and cheque book request on their mobile
phones.
Road Ahead
India is yet to tap into the potential of mobile banking and digital financial services. Forty-
seven per cent of the populace have bank accounts, of which half lie dormant due to reliance
on cash transactions, as per a report. Still, the industry holds a lot of promise.
India's banking sector could become the fifth largest banking sector in the world by 2020 and
the third largest by 2025. These days, Indian banks are turning their focus to servicing clients
and enhancing their technology infrastructure, which can help improve customer experience
as well as give banks a competitive edge.
Exchange Rate Used: INR 1 = US$ 0.0173 as on October 28, 2015
The level of governmentregulation of the banking industry varies widely, with countries such
as Iceland, having relatively light regulation of the banking sector, and countries such as
China having a wide variety of regulations but no systematic process that can be followed
typical of a communist system.
The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy,
which has been operating continuously since 1572.
Company Profile
HDFC Bank is India's largest private sector bank with total assets of Rs. 5,946.42 billion
(US$ 99 billion) at March 31, 2016 and profit after tax Rs. 98.10 billion (US$ 1,637 million)
for the year ended March 31, 2016.HDFC Bank currently has a network of 3,839 Branches
and 11,943 ATM's across India.
History
2016
The Industrial Credit and Investment Corporation of India Limited (HDFC) incorporated at
the initiative of the World Bank, the Government of India and representatives of Indian
industry, with the objective of creating a development financial institution for providing
medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami
Mudaliar elected as the first Chairman of HDFC Limited.
HDFC emerges as the major source of foreign currency loans to Indian industry. Besides
funding from the World Bank and other multi-lateral agencies, HDFC was also among the
first Indian companies to raise funds from international markets.
HDFC Bank was originally promoted in 2094 by HDFC Limited, an Indian financial
institution, and was its wholly-owned subsidiary. HDFC's shareholding in HDFC Bank was
reduced to 46% through a public offering of shares in India in fiscal 2098, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, HDFC Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
HDFC to institutional investors in fiscal 2001 and fiscal 2002. HDFC was formed in 2055 at
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses.
In the 2090s, HDFC transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide variety
of products and services, both directly and through a number of subsidiaries and affiliates like
HDFC Bank. In 2099, HDFC become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.
 After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of HDFC and HDFC Bank formed the view that the
merger of HDFC with HDFC Bank would be the optimal strategic alternative for both
entities, and would create the optimal legal structure for the HDFC group's universal banking
strategy. The merger would enhance value for HDFC shareholders through the merged
entity's access to low-cost deposits, greater opportunities for earning fee-based income and
the ability to participate in the payments system and provide transaction-banking services.
The merger would enhance value for HDFC Bank shareholders through a large capital base
and scale of operations, seamless access to HDFC's strong corporate relationships built up
over five decades, entry into new business segments, higher market share in various business
segments, particularly fee-based services, and access to the vast talent pool of HDFC and its
subsidiaries.
In October 2001, the Boards of Directors of HDFC and HDFC Bank approved the merger of
HDFC and two of its wholly-owned retail finance subsidiaries, HDFC Personal Financial
Services Limited and HDFC Capital Services Limited, with HDFC Bank. The merger was
approved by shareholders of HDFC and HDFC Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the HDFC group's
financing and banking operations, both wholesale and retail, have been integrated in a single
entity.
Vision & Mission of the Company
Vision:
To be the leading provider of financial services in India and a major global bank.
Mission:
We will leverage our people, technology, speed and financial capital to:
 Be the banker of first choice for our customers by delivering high quality, world-class
products and services.
 Expand the frontiers of our business globally.
 Play a proactive role in the full realization of India’s potential.
 Maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
 Maintain high standards of governance and ethics.
 Contribute positively to the various countries and markets in which we operate.
 Create value for our stakeholders.
Organization Structure
HDFC Group offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialized group
companies and subsidiaries in the areas of personal banking, investment banking, life and
general insurance, venture capital and asset management. With a strong customer focus, the
HDFC Group Companies have maintained and enhanced their leadership positions in their
respective sectors.
HDFC Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$ 93
billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271 million) for the
year ended March 31, 2012. The Bank has a network of 2,791 branches and 10,021 ATMs in
India, and has a presence in 20 countries, including India.
HDFC Prudential Life Insurance is a joint venture between HDFC Bank, a premier financial
powerhouse, and Prudential plc, a leading international financial services group
headquartered in the United Kingdom. HDFC Prudential Life was amongst the first private
sector insurance companies to begin operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA). HDFC Prudential Life's capital
stands at Rs. 47.91 billion (as of March 31, 2012) with HDFC Bank and Prudential plc
holding 74% and 26% stake respectively. For FY 2012, the company garnered Rs.150.22
billion of total premiums and has underwritten over 13 million policies since inception. The
company has assets held over Rs. 707.71 billion as on March 31, 2012.
HDFC Lombard General Insurance Company, is a joint venture between HDFC Bank
Limited, India's second largest bank with consolidated total assets of over USD 91 billion at
March 31, 2012 and Fairfax Financial Holdings Limited, a Canada based USD 30 billion
diversified financial services company engaged in general insurance, reinsurance, insurance
claims management and investment management. HDFC Lombard GIC Ltd. is the largest
private sector general insurance company in India with a Gross Written Premium (GWP) of
Rs. 5,358 crore for the year ended March 31, 2012. The company issued over 76 lakh policies
and settled over 44 lakh claims and has a claim disposal ratio of 99% (percentage of claims
settled against claims reported) as on March 31, 2012.
HDFC Securities Ltd is the largest integrated securities firm covering the needs of corporate
and retail customers through investment banking, institutional broking, retail broking and
financial product distribution businesses. Among the many awards that HDFC Securities has
won, the noteworthy awards for 2012 were: Asiamoney `Best Domestic Equity House for
2012; 'BSE IPF D&B Equity Broking Awards 2012' under two categories:- Best Equity
Broking House - Cash Segment and Largest E-Broking House; the Chief Learning Officer
Award from World HRD Congress for Innovation in Learning category. IDG India's CIO
magazine has recognized HDFC Securities as a recipient of CIO 100 award in 2009, 2010,
2011 and 2012. I-Sec won this awards 4 times in a row for which the CIO Hall of Fame
award was additionally conferred in 2012.
Products & Services of the Company
NRI Banking
Personal Banking
1. ATM
2. Forex Services
3. Insta Alerts
4. Mobile Banking
5. Net Banking
6. Phone Banking
Mortgage services
Debt consolidation service
Home equity loans
New home loans
Latest mortgage quotes
Mortgage refinancing
Real estate lending
Personal Loans
Loans up to Rupees one million for any purpose.
Flexible Repayment Options ranging from 12 to 48 months.
Repayment through Easy Monthly Installments (EMIs).
Low Rate of Interest
Hassle free loans - No guarantor/security/collateral required
Speedy loan approval
Service at the customer's doorstep
Loans for Non Resident Indians
Home Loan
Home Improvement Loan
Home Extension Loan
Land Purchase Loan
HDFC Credit Card
Classic Card
Special Benefit Card
Value Plus Credit Card
Health Plus Credit Card
Premium Card
Gold Credit Card
Titanium Credit Card
Woman's Gold Card
Platinum Plus Credit Card
Commercial Card
Corporate Credit Card
Business Credit Card
Job Profile
Analyze business requirements, conduct feasibility study, provide support, conduct research

Job Designation
JUNIOR BUSINESS ANALYST
Responsibilities and Description of the Job
Gather information, analyze information, provide user support, participate in testing,
communicating effectively
Dept. Profile (Where you have worked)
 Ms. Chanda Kochhar received an honorary Doctor of Laws from Carleton University,
Canada. The university conferred this award on Ms. Kochhar in recognition of her pioneering
work in the financial sector, effective leadership in a time of economic crisis and support for
engaged business practices.
 Ms Chanda Kochhar featured in The Telegraph (UK) list of '11 most important
women in finance'.
 HDFC Bank has been recognised as one of the 'Top Companies for Leaders' in India
in a study conducted by Aon Hewitt.
 IDRBT has given awards to HDFC Bank in the categories of 'Social Media and
Mobile Banking' and' Business Intelligence Initiatives'.
 HDFC Bank won the award for the Best Bank - Global Business Development
(Private Sector) in the Dun & Bradstreet - Polaris Financial Technology Banking Awards
2015.
 HDFC Bank was awarded the Certificate of Recognition as one of the Top 5
Companies in Corporate Governance in the 15th ICSI (The Institute of Company Secretaries
of India) National Awards for Corporate Governance.
 HDFC Bank has been honoured as The Best Service Provider - Risk Management,
India at The Asset Triple A Transaction Banking, Treasury, Trade and Risk Management
Awards 2015.
 Mr Rakesh Jha has been ranked as the Best CFO in India at the 15th Annual Finance
Asia's Best Managed Companies Poll.
 HDFC Bank has won The Corporate Treasurer Awards 2013 in the categories of 'Best
Cash Management Bank in India' & 'Best Trade Finance Bank in India'.
 HDFC Bank has been awarded the 'Best Retail Bank in India', 'Best Microfinance
Business' and Best Retail Banking Branch Innovation' under the 'Excellence in Retail
Financial Services awards 2015' by The Asian Banker.
 Ms Chanda Kochhar, MD & CEO, HDFC Bank, has been named among Fortune's 50
most powerful women in business for the fourth consecutive year.
 Ms. Chanda Kochhar, MD and CEO received the 'Mumbai Women Of The Decade'
award by ASSOCHAM.
Activities Performed by you in the Dept.
Gather information, analyze information, provide user support, participate in testing,
communicating effectively
Key Observations
Strong analytical and problem solving skills, technical proficiency, knowledge of business
process
Key Skills Learned
Elements of a learning and development policy:
 The organization’s vision for learning and development
 opportunities available, including secondment, career breaks, courses, coaching,
mentoring
 who to ask to get authorization for training
 support given for learning opportunities
 Development reviews and personal development plans
Findings & Suggestions
They are not here to provide banking.
They have to provide test drive to those customers only which seem to be the competent
customers.
They have to make their customers understand about their own need and available options to
satisfy their needs.
Customers should be known that money discount is not as important as their personal
satisfactions.

SUGGESTIONS
✔ The management must commit itself to allocate major resources and adequate time to
training.
✔ Skill based training (product/process training) should also be provided.
✔ Besides questionnaire other methods of post training evaluation should also be used
like interviews, self-diaries, observation and supplement test.
Feedback to the Company
During the internship, I gained useful practical knowledge and skills, became more diligent
and responsible. It was fascinating to take a look at consulting from the inside and to
communicate with experienced lawyers. I am sure that such an experience will be useful and
will help me in my professional career.