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Trust Account Bank for Donations

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Trust Account Bank for Donations Powered By Docstoc
					      Presentation on Financial
           Management


A. Rajan, Country Head-Operations, HDFC Bank


               28th January 2006
                    AGENDA


Financial   Planning.

Banking   With Value.

Reaching    Out.




                             2
   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


     Customised, Tailor Made and an On going Process
             to evaluate ones financial objective

                                                       3
      Our Understanding

 Income & Expense- Fixed and Variable

 Safety of Capital

 Optimum returns with Minimum Risk

 Cash Flow Variable in Nature

 Investments Short term & Long term

 Income Earned - tax Free for Trusts

                                         4
                  General Trust
                Approved Avenues

   Fixed Deposits

       Central   & State Government Securities

Mutual   funds - Across Scheme Categories

    Govt..   of India 8% tax Saving Bonds



                                                  5
                       Investment Options :
                          Fixed Income.

                          Coupon /
Investment Options                        Maturity   Interest Payment   Liquidity
                          Interest Rate


8% RBI Relief (Taxable)                              Half Yearly /
bonds                     8.00%           6 Yrs      Cumulative         Low




                                                     Half Yearly /
Bank Fixed Deposits       6.25%           3 Yrs      Cumulative         Medium




Bonds/ Securities
Approved By Central/      Security        Security   Half Yearly/
State Govt.               Specific        Specific   Cumulative         Medium




                                                                                    6
                          Investment Options
                             Mutual Funds
                               Possible Rate
  Schemes Available*                           Maturity      Liquidity     Comparable To
                               of return

  Liquid Funds/Floating Rate
  funds **$$                   5.50%           1 Day         High          Savings Account


                                               1 Month to
  Fixed Maturity Plans***$$    6.50-7.00%      26 Months     Medium        Bank Fixed Deposit


  Equity Funds $$              12-15%          Open Ended    Medium        -


* 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.
                                                                                                 7
                      Current Typical Portfolio
                         of Trust Accounts
                                       Time      Possible   Weighted Average
Instrument              % Allocation
                                       Horizon   returns    Return




8% RBI Relief Bonds     35%            6 Years   8%         2.80%


Banks & Other Fixed                    Across
Income Options          65%            Tenures   6.50%      4.23%


Total                   100%                                7.03%




                                                                               8
           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

                                                     9
                  Recommended Portfolio

                                                             Possible     Weighted Average
Instrument                 % Allocation    Time Horizon
                                                             Returns      Return



8% RBI Relief Bonds             45%        6 years Lock in       8.00%         3.60%
Liquid Schemes $$               15%        1 day onwards         5.50%         0.83%

                                           1 Month to 26
Fixed Maturity Plans            20%        Months                7.00%         1.40%

                                           1 year and
Equity Funds $$                 20%        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.
                                                                                             10
Banking With Value




                     11
                                     You Need…
                                         ...customised
                                             banking                     …the best pricing
        …a comprehensive                                                across all products
                                        solutions to suit
         savings account                                                   and services
                                         all our needs




…to transact 24/7 at                                                       …guidance on
the click of a button                                                      investments,
                                                                            remittances




   …salary accounts                                                           …FCRA account
    for employees                                                              for donations
                                                                               received form
                                                                                 overseas
                          ...instant funds        …hassle- free fee /
                        transfer across the       donation collection
                               country
                                                                                               12
                 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
                                                        13
                                 A Comprehensive
                                 Savings Account
                                                                              Demand Drafts on
Savings Account
                                                                                Bank & other
 with a nominal
                                                                             locations at special
Average quarterly
                                                                                    price
    balance




                                                                          Quicker outstation
 Intercity / Multi-city
   Banking with a                                                        cheque collection at
                                                                         all Bank locations at
Payable at Par Cheque
                                                                              special price
         book




              Funds transfer facility                           Logistics services
                to another bank                                (Cash delivery, Cash
               account across the          NetBanking,           pickup, Cheque
                    country               PhoneBanking,              pickup)
                                        BillPay & InstaAlert
                                              Facility

                                                                                                 14
           FCRA Accounts for foreign
                 contribution




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

                                                                    15
                  FLOW OF FUNDS


                     TRUSTS



Payments or Fee                       Donations from
 from Members                            Public




                   Sale of Products

                                                       16
              Hassle free Donation/ Fee
                      Collection




- Donation / fee collection at any of
the Bank Branches                       - Fee collection via cheque /
                                        DD / MC / funds transfer
- Direct credit of fees / donations
into the Trust account on realization   - Daily report of the donations /
of funds                                fees received with category-
                                        wise break-up for each
- Customized fee / donation deposit     payment
slips
                                                                        17
                          Salary Accounts for
                              Employees
                                                                         International debit
  Zero Balance                                                            cards with higher
 Savings Account                                                        limits on ATMs and
                                                                                POS.




Free Intercity / Inter-
                             Manage your employee salary
                                                                         Quarterly / Monthly
  branch Banking.              payments with ease……                     Account Statements
 PAP Cheque book
      facility




                                                                        Preferential Rates on
Access to the account
                                                                        Loan & Credit Card
 through other Bank          NetBanking,
                                                  Logistics services         Products.
       ATMs.                PhoneBanking,
                                                 (Cash delivery, Cash
                          BillPay & InstaAlert     pickup, Cheque
                                Facility               pickup)

                                                                                               18
        Investment Solutions




 A range of mutual fund options

 Investment into RBI & other Bonds

 Dedicated advisor to assist you in your investments



                                                        19
                REACHING OUT

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.
                                                            20
                       SOLUTIONS

                              Channels

Branch Banking     NetBanking              ATM   Phone Banking




                                Services

 BillPay

 DirectPay   (Direct Debit from Account)
 Credit   Card Payment Gateway
 InstaPay
                                                                 21
Collections and Payments


          Simple and Streamlined Process


      No hassles of collection and handling of
                  cash or cheque

     Long Reach – across the country & beyond


     Various channels for accepting payments


       Proper reports for easy reconciliation

                                                 22
Discussions




              23
Thank You




            24

				
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