PROJECT REPORT ON AN

“IN-DEPTH ANALYSIS OF HDFC BANK IN

THE FIELD OF MARKETING”

A report submitted towards the partial

fulfillment of the requirements of the two years
full-time Post Graduate Diploma in
Management.

SUBMITTED BY: SUNITA DEVI

PROGRAMME: PGDM
ROLL NO: 2K6/DM/051
SESSION: 2006-08
SUBMITTED TO: PIALI HALDAR

ASIA-PACIFIC INSTITUTE OF MANAGEMENT

3 & 4 Institutional Area, Jasola, New Delhi 110025
TABLE OF CONTENTS

Subject Page No.

1) Executive Summary 2
2) Research Methodology 4
i) Primary Objective
ii) Research Design
iii) Sample Design
iv) Scope of the Study
v) Limitations

3) Critical Review of Literature 6

4) Company Profile 24
i) Industry Profile 31
ii) SWOT Analysis 50

5) Data 52
i) Collection
ii) Primary Data
iii) Secondary Data
6) Findings & Analysis 53

7) Recommendations 66

8) Bibliography 70

9) Annexure 71

10) Case Study 86

11) Synopsis 92

2
 EXECUTIVE SUMMARY

From a modest beginning of Rs 7.1 cores in home loan approvals in its

first year of operations to over Rs. 1,00,000 crores in cumulative home
loan approvals in 28 years, HDFC has come a long way. As an
institution that introduced an unknown concept in the late 1970s, it
has defined and spearheaded many of the changes that have given
shape to the housing industry through the years and has turned the
dream of owning a home into reality for over 2.7 million families
across the country. The journey began as a thought that took shape in
the mind of HDFC’s founder Chairman, Mr. H.T. Parekh, who laid a solid
foundation. This thought grew to become a reality in the form of HDFC
to enable Indian households access housing in their prime earning
days through institutional finance. At the time of its commencement,
HDFC was the first private sector housing finance institution in India.
Since the early years, it clearly defined the company’s core values -
integrity, transparency and trust, ingraining it throughout the
organization and in all its activities. It focused on a future that it
needed to make, rather than wait for it to happen and went on to
transform the concept of providing retail finance to middle class
families in India into a world class institution. Its success encouraged
the creation of a number of housing finance institutions in India.

HDFC offers a wide range of deposit products, a secure investment

option, with attractive returns. Deposits are accepted from Charitable
Trusts, Religious Trusts, Educational Institutions, Employees' Welfare
Trusts and others as decided by the management.

3
The primary objective of the project is to study, understand and
analyze various aspects related to the Investment patterns of Trusts
and Societies. The research is based on the information collected by
the help of the questionnaires filled by various Trusts and Societies
visited. The questionnaire was formulated with the aim of finding
about the preferences of the societies when they go in for the
investment of surpluses generated by them. Due to lack of time the
survey was limited to South Delhi. I visited over 250 Trusts and
Societies during my survey. An attempt was made to judge on the
basis of the response generated, the scope to expand the services of
HDFC Ltd. in the area of Trust Deposit. The survey helped to draw a
general trend of the investment pattern of the Trusts and Societies.

4
 RESEARCH METHODOLOGY

Primary Objective:
The primary objective is to study, understand and analyze various
aspects related to the Investment patterns of Trusts and Societies.

Research Design:
The research is based on the information collected by the help of the
questionnaires filled.
The first three questions aim at the basic introductory information of
the organization and the person being interviewed thus rendering the
follow up work easier. The fourth question is about the financial
standing of an organization, it gives an idea about the financial status
of the society being approached. The fifth question aims at generating
information about the various sources of funds of the societies. The
sixth and seventh questions deal about the financial performance of
the societies. The eighth question is to find out about what a society
does with the surplus amount generated by them. The ninth question
is meant to gather information about the people who are instrumental
in advising and putting to action the investment plans for the society.
The tenth question is about what kind of investments are preferred by
the society, on the basis of the organization or on the basis of the time
period. The eleventh question talks about the institutions in which the
societies make their investments in, say the banks or other institutes.
The twelfth question tries to assess what is it exactly that the societies
look for, while investing. For example do they prefer a high rate of
interest, or safety, or location, etc..

5
Thus the research is based only on the basis of the information
gathered with the help of the questionnaires.

Sample design:

The objective is to study the investment pattern of various Trusts and

Societies. For this purpose I obtained a list of all the trusts situated in
Delhi. Due to lack of time I had to focus my study on all the Societies
situated in South Delhi. I made a list of all the trusts situated in the
south and targeted them in order to generate the required information.

Scope of the study:

I have focused my study on HDFC Ltd. and based my study primarily

on the investment patterns of various Trusts and Societies situated in
South Delhi. For this purpose I visited over 250 societies. I interviewed
the person concerned and got the questionnaire filled. Even though I
visited around 250 societies. I was not able to get the required
information from all of them as many of them refused to provide me
with any information giving no reason at all reasons.

Limitations:

There is no authenticity of the data available. No way of accessing the

truth of the statement. The people who have filled the questionnaire
might not have provided me with the right information.
No statistical tool has been used due to lack of time.

6
 CRITICAL REVIEW OF LITERATURE

Trusts

A trust is an agreement under which money or other assets are held

and managed by one person for the benefit of another. Different types
of trusts may be created to accomplish specific goals. Each kind may
vary in the degree of flexibility and control it offers.

The common benefits that trust arrangements offer include:

Providing personal and financial safeguards for family and other

beneficiaries;

Postponing or avoiding unnecessary taxes;

Establishing a means of controlling or administering property; and

Meeting other social or commercial goals.

Creating A Trust

Certain elements are necessary to create a legal trust, including a

trustor, trustee, beneficiary, trust property and trust agreement.

The person who provides property and creates a trust is called a

trustor. This person may also be referred to as the "grantor," "donor"
or "settlor."

7
The trustee is the individual, institution or organization that holds
legal title to the trust property and is responsible for managing and
administering those assets. If not designated by name, a trustee will
be appointed by the court. In some cases, a trustor can serve as the
trustee. It is also possible for two or more trustees to serve together,
or for both an individual and an organization to act as co-trustees.
Separate trustees may also be named to manage different parts of a
trust estate.

The beneficiary is the person who is to receive the benefits or

advantages (such as income) of a trust. In general, any person or
entity may be a beneficiary, including individuals, corporations,
associations or units of government.

The general duties and obligations of the beneficiary, the trustee and
the trustor are summarized elsewhere in this pamphlet.

To be valid, a trust must hold some property to be administered. The

trust property may be any asset, such as stocks, real estate, cash, a
business or insurance. In other words, either "real" or "personal"
property may constitute trust property (which may also be called the
"trust corpus," "trust res," "trust estate" or "trust principal"). Trust
property may also include some future interest or right to future
ownership, such as the right to receive proceeds under a life-insurance
policy when the insured dies (discussed under "Insurance Trusts").
Property is made subject to the trust by transfer to the trustee,
commonly called a "gift in trust."

8
The trust agreement is a contract that formally expresses the
understanding between the trustor and trustee. It generally contains a
set of instructions to describe the manner in which the trust property
is to be held and invested, the purposes for which its benefits (such as
income or principal) are to be used, and the duration of the
agreement.

Trust agreements may be expressed in writing, by oral agreement or

may be implied, and the trustor usually has considerable latitude in
setting the terms of the trust. To be enforceable, a trust involving an
interest in land must be in writing.

Types Of Trusts

Many kinds of trusts are available. Trusts may be classified by their

purposes, by the ways in which they are created, by the nature of the
property they contain, and by their duration. One common way to
describe trusts is by their relationship to the trustor's life. In this
regard, trusts are generally classified as either living trusts ("inter
vivos" trusts), or testamentary trusts.

Living Trusts

Living trusts are created during the lifetime of the trustor. Property
held in a living trust is not normally subject to probate (the court-
supervised process to validate a will and transfer property on the
death of the trustor). In Washington, because such property is not
subject to probate, it need not be disclosed in the court record and
confidentiality may be maintained. Such trusts are widely used

9
because they allow the trustor to designate a trustee to provide
professional management.

Under some circumstances, living trusts will allow income to be taxed

to a beneficiary and result in income tax savings to the trustor.
However, it should be noted that income earned by a trust established
for a beneficiary under the age of 14 may be taxed at the beneficiary's
parent's tax rate. The transfer of property to a living trust may also be
subject to a gift tax.

Testamentary Trusts

Testamentary trusts are created as part of a will and must conform

to the statutory requirements that govern wills. This type of trust
becomes effective upon the death of the person making the will (the
"decedent") and is commonly used to conserve or transfer wealth. The
will provides that part or all of the decedent's estate will go to a
trustee who is charged with administering the trust property and
making distributions to designated beneficiaries according to the
provisions of the trust.

Before the trust property becomes subject to the testamentary trust, it

will normally pass through the decedent's estate. When the estate is
probated, those trust assets will be subject to probate. The assets,
which will form the corpus of a testamentary trust, also are potentially
subject to an estate and generation-skipping transfer tax at the time of
the decedent's death.

10
A testamentary trust gives the trustor substantial control over his or
her estate distribution. It also may be used to achieve significant
savings in the future. For example, by using a testamentary trust, a
trustor can provide for a child's education or can delay the receipt of
property by a child until the child gains financial maturity. Moreover,
given the proper form of trust, property may be exempted from death
taxation on the later death of a trust beneficiary. However, a
generation-skipping transfer tax may still apply.

Living trusts can be "revocable" or "irrevocable." The trustor may

change the terms or cancel a revocable living trust. Upon
revocation, the trustor resumes ownership of the trust property.

In general, a revocable living trust is used when the trustor does

not want to lose permanent control of the trust property, is unsure of
how well the trust will be administered, or is uncertain of the proper
duration for the trust. With a properly drafted revocable trust, you
may:

1. Add or withdraw some assets from the trust during your lifetime;

2. Change the terms and the manner of administration of the trust;

and

3. Retain the right to make the trust irrevocable at some future

time.

The assets in this type of trust will generally be includable in the

trustor's taxable estate, but may not be subject to probate.

11
An irrevocable living trust may not be altered or terminated by the
trustor once the agreement is signed. There are two distinct
advantages of irrevocable trusts:

1. The income may not be taxable to the trustor; and

2. The trust assets may not be subject to death taxes in the

trustor's estates.

However, these benefits will be lost if the trustor is entitled to (1)

receive any income; (2) use the trust assets; or (3) otherwise control
the administration of the trust in a manner that is inconsistent with the
requirements of the Internal Revenue Code.

Since a will may be revoked or amended at any time prior to death, a

testamentary trust may be changed or canceled. Revisions can be
made by drafting a new will or by using a simple document called a
"codicil" to make changes or additions to your will. However, to be
effective, any such modifications must be executed in the same
manner required for wills. The trust instrument should be explicit
regarding revocability or irrevocability. If it is not, the trust will be
considered irrevocable.

Establishing A Trust

Depending on a number of circumstances, trusts may be established

orally, in writing or by conduct. Most trusts involve a number of
technical legal concepts relating to ownership, taxes and control. A
lawyer can assist in explaining options, considering contingencies and
preparing documents.

12
In creating a trust, you should consider several factors and obligations,
including:

Your personal situation, including age, health and financial status;

Your family relationships and your family's financial circumstances;

Personal financial data: personal property, real estate holdings,

securities, and other property — as well as your tax situation and any
debts or obligations;

The purpose of the trust: your goals, or what you hope to accomplish
by the arrangement;

The type of trust, and how versatile or flexible your plans are.

The amount and type of property it will contain;

The duration, or how long the trust will last;

The beneficiaries and their specific needs;

Any conditions that must be met by a beneficiary to receive benefits

(such as attaining a certain age);

Alternatives for disposing of assets in case the trust conditions are not
met or circumstances change; and

The trustee, and the conditions or guidelines under which he or she

will function.

Dependency exemptions, capital gains and losses, income, gift, estate

and generation-skipping transfer taxes also should be considered when
planning certain types of trusts. Likewise, you may want to think about
naming alternative or contingent beneficiaries and trustees.

13
Once a trust has been established, a periodic review of the status of
the trust is advisable; you may want to obtain professional assistance
appropriate to the requirements of the trust.

Location Of A Trust

The location of the trust is usually determined by the residence of

either the trustor or the trustee. In deciding where to establish the
trust, it must be remembered that each state has different laws
governing the operation of trusts and trustees' powers.

Circumstances may sometimes warrant moving the trust location.

Relocation, called a "change of situs," may be desirable or necessary
for either tax or nontax reasons (e.g., the trustee moves to another
state). Whether or not a move can be made, and how the move is
accomplished, will be dictated by each state's laws.

DUTIES AND OBLIGATIONS OF A TRUSTEE

A trustee — whether an individual or institution — holds legal title to

the trust property and is given broad powers over maintenance and
investment. To ensure that these duties are properly carried out, the
law requires that the trustee act in a certain manner. In general, a
trustee must:

Act in accord with the express terms of the trust instrument;

Act impartially, administering the trust for the benefit of all trust
beneficiaries;

14
Administer the trust property with reasonable care and skill,
considering both its safety and the amount of income it produces;

Maintain complete accounts and records; and

Perform taxpayer duties, such as filing tax returns for the trust and
paying required taxes.

The trustee must administer the trust property only for the designated
beneficiaries and may not use trust principal or income for his or her
own benefit. In other words, a trustee is usually prohibited from
borrowing or buying from the trust, from selling his or her own
property to it, and from using the trust assets as collateral for a
personal debt.

In selecting a trustee you should consider the potential trustee's

competence and experience in managing business or financial matters
and the potential trustee's availability and willingness to serve.

Individuals and certain corporations (or a combination of both) may

serve as trustee. Each selection offers distinct advantages and
drawbacks that should be considered. For example, an institution, such
as a bank, usually offers specially trained managers to provide
administrative, counseling and tax services. Other typical advantages
include the institution's continuity and reliability of service, and its
ready availability. Most banks charge a fee for trust services, and some
may not want to manage small trusts, so you may want to compare
options.

As an alternative, an individual, such as a relative, family friend or

business associate, may serve as trustee. An individual, unlike an

15
institution, may be willing to serve for little or no fee. Furthermore,
this person could add a more personal touch for special understanding
to the needs of the beneficiaries. However, you will want to be certain
that any nominated individual has the skill and experience necessary
to properly manage the trust property.

Insurance Trusts

Insurance trusts may take various forms, such as business insurance

trusts (which may be used to protect the "key men," proprietor or
partners of a business), or personal insurance trusts (which involve no
business interests). These types of trusts are usually intended to
provide assistance in the management of insurance proceeds from
estate taxation. Insurance trusts may be revocable or irrevocable, and
various types of agreements are available to accommodate an
individual's circumstances and desires, or the requirements of a
business.

Another form of insurance trust is the life-insurance trust. This trust,

similar to a living trust, is created to receive proceeds payable under a
life-insurance policy. It is normally established to exclude those
proceeds from taxation in the decedent's estate. A life-insurance trust
can also be used to provide a vehicle for continued management and
distribution of insurance proceeds for a beneficiary who may need
assistance in those matters.

To obtain the tax benefits of having the proceeds excluded from the
decedent's estate, it is imperative that the insured divest himself or
herself of all interest in the policy, and place those rights in the hands

16
of the trustee. For this reason, it is preferable to have an individual
other than the insured act as trustee.

This type of trust cannot be revocable, and the insured cannot retain
any right to trust income. To ensure the tax advantages are retained,
it is important that the document be properly drafted. The tax rules in
this area are quite complex, so professional legal assistance may be
helpful in the preparation of such a document.

Charitable Trusts

A charitable trust is also called a "public trust," because it benefits‚

immediately or eventually, members of the general public through
charitable means. It can offer many tax advantages to the trustor not
available to other "private" trusts. Unlike private trusts, it can be
established to last indefinitely.

Although sometimes complicated in their arrangement, charitable

trusts offer considerable flexibility in providing benefits from the
trustor or other trust beneficiaries, while at the same time meeting
charitable goals. Charitable trusts must be carefully drafted, however,
to ensure advantageous tax treatment. A commonly used charitable
trust is the "charitable remainder trust."

Charitable Remainder Trusts

This type of trust allows you to give a future interest in an asset to

charity, while keeping an income stream for yourself or for another
beneficiary.

A trustor may specify that a certain portion of the trust income be

distributed to a noncharitable beneficiary for a certain period of time,

17
with the charity to receive the money or property thereafter (e.g.,
upon the death of the noncharitable beneficiary).

In addition to offering an immediate tax deduction for the charitable

contribution, the charitable remainder trust can help lower your estate
taxes. To qualify for a charitable deduction, specific formats must be
followed, and the charitable beneficiary must meet standards set by
the Internal Revenue Service.

The amount of the charitable deduction is based on complex tax laws

that consider such factors as the age of the beneficiary, the value of
the property, and the expected income from the trust. Because of the
detailed legal concepts and changing IRS regulations, it is advisable to
consult a lawyer when considering such arrangements.

Longevity Of A Trust

There is no specified time during which a trust must remain in effect.

Each situation must be evaluated separately. In general, however,
Washington State law will not allow a private trust to continue longer
than 21 years after the death of a person living at the time the trust
was established. Charitable trusts, on the other hand, may continue
indefinitely.

Taxes

The use of a trust may help you achieve certain goals, such as
reduction of taxes. However, while trusts can offer a number of tax
advantages, tax avoidance should not be the sole motivation for using
this estate-planning tool.

18
It also should be recognized that the laws governing trusts and their
taxation are complex and subject to change. As an example, under the
Tax Reform Act of 1986, income earned in a trust which has a
beneficiary under the age of 14 will be taxed at that beneficiary's
marginal tax rate. This is a significant departure from prior tax law,
which provided that such income be taxed to the child at his or her
own tax rate, often resulting in little or no tax being due.

Because of the new tax rules, an individual contemplating a trust for

tax purposes should consult with his or her accountant or attorney to
determine whether the trust can be structured in a way to meet the
tax objectives. By carefully choosing the proper type of investments
within a trust, it may still be possible to accomplish tax goals, but
careful planning and drafting are required. These facts, coupled with
the numerous financial considerations involved in estate planning,
suggest that professional legal and financial assistance may be
necessary to help you make an informed decision.

Fees And Costs

The cost of creating and administering a trust can vary considerably,

depending on its type and duration. A lawyer's fees to create a trust,
for example, will usually be based on the time involved in consulting
with you, and in planning and preparing documents. Therefore, before
you hire a lawyer, you should discuss fees (for example, whether
hourly or flat fees are charged). Ask for an estimate or arrange a
written fee agreement.

A trustee's fee may vary with the skill and expertise the trustee offers.
Charges may also be influenced by the size and complexity of the trust

19
estate. This affects the nature and amount of services required, such
as record-keeping, asset management and tax planning.

In addition to legal and trustee expenses, there may be accounting,

real estate management or other service fees. Other common charges
include annual, minimum, withdrawal and termination fees.

HDFC BANKING WITH TRUSTS AND SOCIETIES

20
Trusts

HDFC offers a wide range of deposit products, a secure investment

option, with attractive returns. Deposits are accepted from Charitable
Trusts, Religious Trusts, Educational Institutions, Employees' Welfare
Trusts and others as decided by the management.

Trusts can choose from any of the following products depending on

their need.

Trust Deposits:

1) Fixed Rate Deposits

Following options are available under Fixed Rate Deposit -
i) Monthly Income Plan
ii) Non-Cumulative Deposits
iii) Annual Income Plan
iv) Cumulative Deposits

2) Variable Rate Deposits

Variable Rate Deposit is a new addition to the wide range of deposit

products offered by HDFC to enable the depositors to take advantage
of movements in interest rates.
Following options are available under Variable Rate Deposit –
i) Monthly Income Plan
ii) Non-Cumulative Deposits
iii) Annual Income Plan
iv) Cumulative Deposits

Benefits of an HDFC Trust Deposit:

21
1. Highest Safety
2. Attractive Returns
3. Tax Benefits
4. Quick Loan Facility
5. High Service Standards
6. Demand Draft Facility
7. Electronic Clearing Service

Highest Safety:

'FAAA' and 'MAAA' rating affirmed for the eleventh consecutive year
by CRISIL and ICRA respectively.

Attractive Returns: HDFC deposits are Available throughout the year

and offer Attractive, Assured returns to investors

Tax benefits:

1. HDFC Trust Deposits is a specified investment under Section

11(5) (ix) of the Income Tax Act, 1961.
2. No tax deduction at source from Interest on deposits upto Rs.
5,000/- per branch in a financial year.

Quick Loan Facility: Loan against deposit is available after 3 months

from the date of deposit upto 75% of the deposit amount subject to
the other terms and conditions framed by HDFC. Interest on such
loans will be 2% above the deposit rate.

22
High Service Standards: Depositors are offered across the counter
services for new deposits, renewals, repayments and loan against
deposit facility. Further, all enquiries through email, post, telephone
and in person are attended to immediately.

Demand Draft Facility: Outstation depositors can send demand

drafts after deducting demand draft charges. This facility is applicable
for places where HDFC does not have an office.

Electronic Clearing Service: This facility is provided to depsoitors in

select centres whereby the interest will be credited directly to the
depositors' bank account. The depositor would receive a credit entry
"ECS HDFC" in his passbook/bank statement. Intimation of interest
credited would be sent on an annual basis. Your bank will not levy any
charge for this facility as per present RBI guidelines.

Presently this facility is being offered by us at the following centers –

ECS Centres :

Ahmedabad, Bangalore, Bhubaneshwar, Kolkata, Chandigarh, Chennai,

Hyderabad, Jaipur, Kanpur, Mumbai, Nagpur, Nasik, New Delhi, Pune
and Vadodara

Corporate Governance
The concept of corporate governance is entering a phase of global
convergence. The driver behind this is the recognition that companies
need to attract and protect all stakeholders, especially investors – both
domestic and foreign. Global capital seeks its own equilibrium and
naturally flows to where it is best protected and bypasses where

23
protection is limited or non-existent. Companies stand to gain by
adopting systems that bolster investor trust through transparency,
accountability and fairness.

The tide of regulation has risen to a high watermark and while there is
compelling evidence of financial benefits to companies which adopt
good governance practices, it has often been felt that the ethos of
corporate governance still needs to sink in. Corporate irregularities
continue to plague investors as regulators relentlessly strive to cleanse
the system. Financial scandals often prompt an overhaul of regulation.
But the efficacy of regulation can get negated when compliance
becomes a box-ticking exercise with prohibitive costs. Again, there is
no single model of good corporate governance. Principles, values and
ethics cannot be typecast into a universal one-size-fits-all framework.

‘Spreading the Word: Changing Rules in Asia’, the title of Corporate

Governance Watch 2004, an annual collaborative study of the
corporate governance landscape of Asian markets undertaken by CLSA
Asia Pacific Markets and the Asian Corporate Governance Association
has concluded that there appears to be a clear correlation between
companies and markets with strong corporate governance and superior
returns over the long term. According to the study, India ranks among
the top three in terms of corporate governance. With increasingly
integrated capital markets, good corporate governance is of paramount
importance for companies seeking to distinguish themselves in the
global economy.

HDFC, within its web of relationships with its borrowers, depositors,

agents, shareholders and other stakeholders has always maintained its
fundamental principles of corporate governance – that of integrity,
transparency and fairness. For HDFC, corporate governance is a

24
continuous journey, seeking to provide an enabling environment to
harmonise the goals of maximising shareholder value and maintaining
a customer centric focus.

HDFC maintains that efforts to institutionalise corporate governance

practices cannot solely rest upon adherence to a regulatory
framework. HDFC’s corporate governance compass has been its
business practices, its values and personal beliefs, reflected in the
actions of each of its employees.

The Board of Directors fully support and endorse corporate governance

practices as per the provisions of the listing agreements as applicable
from time to time. The Corporation has complied with the said
provisions and listed below is the Report of the Directors of HDFC on
Corporate Governance

25
 COMPANY PROFILE

With years, banks are also adding services to their customers. The
Indian banking industry is passing through a phase of customers
market. The customers have more choices in choosing their banks. A
competition has been established within the banks operating in India.

With stiff competition and advancement of technology, the services

provided by banks has become more easy and convenient. The past
days are witness to an hour wait before withdrawing cash from
accounts or a cheque from north of the country being cleared in one
month in the south.

HDFC was incorporated in 1977 with the primary objective of meeting

a social need – that of promoting home ownership by providing long-
term finance to households for their housing needs. HDFC was
promoted with an initial share capital of Rs. 100 million.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock

in the country through the provision of housing finance in a systematic
and professional manner, and to promote home ownership. Another
objective is to increase the flow of resources to the housing sector by
integrating the housing finance sector with the overall domestic
financial markets.

26
Organisational Goals

HDFC’s main goals are to :-

The primary objective of HDFC is to enhance residential housing stock

and to promote home ownership.

To acquire by purchase, lease, exchange, hire or otherwise lands &

property or any interest in the same in India.

To advance money to any person/ persons, company or corporation,

society or association either at interest without, and or with or without
any security and in particular to advance money to shareholders of the
company or to oth4r persons to enable the person to erect, or
purchase, or enlarge, or repair any house or building or any part or
portions thereof or to purchase any freehold or leasehold or any lands
or estate or property in India upon the terms and conditions as laid by
the company.

To develop & turn to account any land acquired by the company or in

which the company is interested, and in particular by laying out and
preparing the same for building purposes, constructing, altering pulling
down, decorating, maintaining; furnishing, fitting up and improving
buildings, and by planting, paving draining, farming, cultivating, letting
on building lease or building agreement, and by advancing money and
entering into contracts and agreements of all kinds with builders,
tenants and others.

Subject to the provisions of the Banking Regulation Act 1949, to

receive moneys on deposits, loans or otherwise with or without
interest and to secure the same in such manner and on such terms

27
and conditions as the company may think fit and proper and to
guarantee the debts, obligations and contracts of any person, firm,
company, or corporation whatsoever.

To negotiate loans of every description.

To finance or assist in financing the sale of house, buildings, flats,

either furnished or otherwise, by way of hire purchase or deferred
payment or similar transactions and to institute, enter into, carry on,
subsidize finance or assist in subsidizing or financing he sale of these
houses, buildings, flats, furnished or otherwise, upon any term
whatsoever.

Besides these the company has certain objectives incidental or

ancillary to the attainment of the main objective. These are :

To aid any government, state, or any municipal corporation, or

company or association or individual with capital, credit, means or
resources for the prosecution of any work, undertakings, project or
enterprises which are conducive to all or any of the object of the
company.

To adopt such means of making known to the business of the company

as may seen expedient, and in particular by the advertisement in the
press, by circulars, by purchase and exhibition of work, of art of
interest, by publication of books and periodicals, by granting prices,
rewards and donations.

To provide for the welfare of the employees or ex employees of the

company and the wives, widows and the children or the dependents of
such persons in such manner as the company deems fit and proper.

28
To effect and maintain insurance against loss of or inuuryt to any
property of or any persons employed by the company or against any
other loss to the company.

To undertake and carry on the business in India or abroad of Merchant

Banking including consultancy services of all kinds and description,
investment counseling, portfolio management, providing of financial
and investment assistance, syndication of loans, counseling, and tie-up
for project and working capital finance, syndication of financial
arrangements wheth4er in domestic or international markets, handling
of mergers and amalgamations, assisting in the setting up of joint
ventures, foreign currency lending, tax consultancy, underwriting of
any securities, whether singly or in consortium and without prejudice
to the generality of the foregoing to act as advisors and consultants,
managers to the issue of shares, debentures, stocks, bonds and
securities.

ORGANISATION AND MANAGEMENT

29
HDFC is a professionally managed organisation with a board of
directors consisting of eminent persons who represent various fields
including finance, taxation, construction and urban policy &
development. The board primarily focuses on strategy formulation,
policy and control, designed to deliver increasing value to
shareholders.

Board of Directors

Mr. D S Parekh - Chairman Mr. D N Ghosh

Mr. Keshub Mahindra - Vice Chairman Dr. S A Dave
Ms. Renu S. Karnad - Executive Director Mr. S Venkitaramanan
Mr. K M Mistry - Managing Director Dr. Ram S Tarneja
Mr. Shirish B Patel Mr. N M Munjee
Mr. B S Mehta Mr. D M Satwalekar
Mr. D M Sukthankar

30
FOUNDER OF HDFC

Man with a Mission

An extract from the book 'A Tribute' If ever there was a man with a
mission it was Hasmukhbhai Parekh, our Founder and
Chairman-Emeritus, who left this earthly abode on
November 18, 1994.

Born in a traditional banking family in Surat, Gujarat,

Mr. Parekh started his financial career at Harkisandass
Lukhmidass – a leading stock broking firm. The firm
closed down in the late seventies, but, long before
that, he went on to become a towering figure on the
Indian financial scene.

In 1956 he began his lifelong financial affair with the economic world,
as General Manager of the newly-formed Industrial Credit and
Investment Corporation of India (ICICI). He rose to become Chairman
and continued so till his retirement in 1972.

At the ripe age of 60, Hasmukhbhai started his second dynamic life,
even more illustrious than his first. His vision for mortgage finance for
housing, gave birth to the Housing Development Finance Corporation –
it was a trend-setter for housing finance in the whole Asian continent.

He was a true development banker. His building up HDFC without any

government assistance, is itself a brilliant chapter in financial history.
His wisdom and warmth drew people from all walks of life to him, for
advice, guidance and inspiration.

31
A soft spoken man of few words, Mr. Parekh nevertheless held strong
and definite views with a quiet conviction. He was always concerned
with building bridges, improving and encouraging communication
between people.

As Henry W. Longfellow said:

Lives of great men all remind us

We can make our life sublime,

And, departing leave behind us

Footprints on the sands of time.

32
 INDUSTRY PROFILE

History

Banking in India originated in the first decade of 18th century with The
General Bank of India coming into existence in 1786. This was followed
by Bank of Hindustan. Both these banks are now defunct. The oldest
bank in existence in India is the State Bank of India being established
as "The Bank of Calcutta" in Calcutta in June 1806. Couple of decades
later, foreign banks like HSBC and Credit Lyonnais started their
Calcutta operations in the 1850s. At that point of time, Calcutta was
the most active trading port, mainly due to the trade of the British
Empire, and due to which banking activity took roots there and
prospered. The first fully Indian owned bank was the Allahabad Bank
set up in 1865.

By the 1900s, the market expanded with the establishment of banks

like Punjab National Bank, in 1895 in Lahore; Bank of India, in 1906,
in Mumbai - both of which were founded under private onwership.
Indian banking sector was formally regulated by Reserve Bank of India
from 1935. After India's independence in 1947, the Reserve Bank was
nationalized and given broader powers.

The next significant milestone in Indian Banking happened in the late

1960s when the then Indira Gandhi government nationalizd, on 19th
July, 1969, 14 major commercial Indian banks, followed by
nationalization of 6 more commercial Indian banks in 1980. The stated
reason for the nationalisation was more control of credit delivery. After

33
this, until the 1990s, the nationalised banks grew at a leisurely pace of
around 4%-also called as the Hindu growth of the Indian economy.

Banking Reforms since 1992

Financial sector reforms were initiated as part of overall economic

reforms in the country and wide ranging reforms covering industry,
trade, taxation, external sector, banking and financial markets have
been carried out since mid 1991. A decade of economic and financial
sector reforms has strengthened the fundamentals of the Indian
economy and transformed the operating
environment for banks and financial institutions in the country. The
sustained and gradual pace of reforms has helped avoid any crisis and
has actually fuelled growth. As pointed out in the RBI Annual Report
2001-02, GDP growth in the 10 years after reforms i.e. 1992-93 to
2001-02 averaged 6.0% against 5.8% recorded during 1980-81 to
1989-90 in the pre-reform period.

The most significant achievement of the financial sector reforms has

been the marked impovement in the financial health of commercial
banks in terms of capital adequacy, profitability and asset quality as
also greater attention to risk management. Further, deregulation has
opened up new opportunities for banks to increase revenues by
diversifying into investment banking, insurance, credit cards,
depository services, mortgage financing, securitisation, etc. At the
same time, liberalisation has brought greater competition among
banks, both domestic and foreign, as well as competition from mutual
funds, NBFCs, post office, etc. Post-WTO, competition will only get

34
intensified, as large global players emerge on the scene. Increasing
competition is squeezing
profitability and forcing banks to work efficiently on shrinking spreads.
A positive fallout of competition is the greater choice available to
consumers, and the increased level of sophistication and technology in
banks. As banks benchmark themselves against global standards,
there has been a marked increase in disclosures and transparency in
bank balance sheets as also greater
focus on corporate governance.

Trends

The Indian banking industry is currently in a transition phase. On the

one hand, the public sector banks, which are the mainstay of the
Indian banking system, are in the process of consolidating their
position by capitalising on the strength of their huge networks and
customer bases. On the other, the private sector banks are venturing
into a whole new game of mergers and acquisitions to expand their
bases.

The system is slowly moving from a regime of “large number of small

banks” to “small number of large banks.” The new era will be one of
consolidation around identified core competencies.

In India, one of the largest financial institutions, ICICI, took the lead
towards universal banking with its reverse merger with ICICI Bank a
couple of years ago. Another mega financial institution, IDBI, has also
adopted the same strategy and has already transformed itself into a
universal bank. This trend may lead to promoting the concept of a
financial super market chain, making available all types of credit and

35
non-fund facilities under one roof or specialised subsidiaries under one
umbrella organisation.

Growth statistics

Scheduled Commercial Banks (SCBs) in India are categorised into five

different groups according to their ownership and / or nature of
operation. These bank groups are (i) State Bank of India and its
associates (ii) other nationalised banks (iii) regional rural banks(iv)
foreign banks and (v) other Indian SCBs (in the private sector).

The banking sector witnessed strong growth in deposits and advances

during the year 2004-05. As of March 2005, the number of commercial
banks stood at 289. The aggregate deposits of SCBs increased from
US$ 331 billion in March 2004 to US$ 374 billion in March 2005; credit
increased from US$ 185 billion to US$ 242 billion; and investments
swelled from US$ 149 billion to US$ 162 billion.

Net domestic credit in the banking system has witnessed a steady

increase of 17.5 per cent from US$ 445 billion on January 21, 2005 to
US$ 523 billion on January 20, 2006. The growth in net domestic
credit during the current financial year up to January 20, 2006 was
14.4 per cent.

Nationalised banks were the largest contributors to total bank credit at

47.8 per cent as of September 2005. While foreign banks' contribution
to total bank credit was low at 6.7 per cent, the contribution of State
Bank of India and its associates accounted for 23.8 per cent of the
total bank credit. Credit extended by other SCBs stood at 18.9 per
cent.

36
Banks and consumer finance

Indian banks, particularly private banks, are riding high on the retail
business. ICICI Bank and HDFC Bank have witnessed over 70 per cent
year-on-year growth in retail loan assets in the second quarter of
2005-06. Annual revenues in the domestic retail banking market are
expected to more than double to US$ 16.5 billion by 2010 from about
US$ 6.4 billion at present, says a McKinsey study.

The home loan sector is also on a smooth course. The average loan
size of home finance companies is increasing. HDFC, the second
largest player in the home finance business, has seen average loan
increase from US$ 10,773 in FY04 to US$ 13,467 in FY05, a change of
almost 25 per cent. For ICICI Bank, which is the largest player in the
business, the average ticket size is about US$ 13,467 – US$ 15,711
and has increased by 10-15 per cent over last year.

Foreign banks are working on expanding their bases in the country.

The Ministry of Finance and Reserve Bank of India have agreed to
allow foreign banks to open 20 branches a year as against 12 now. At
present, 40 odd foreign banks have over 225 branches in India. At the
end of 2004-05, the total assets of foreign banks aggregated US$ 30
billion or 6.9 per cent of the assets of all scheduled commercial banks.
They will also be allowed 74 per cent stake in private banks. After
2009, the local subsidiaries of foreign banks will be treated on par with
domestic banks.

Challenges facing Banking industry in India

The banking industry in India is undergoing a major transformation
due to changes in economic conditions and continuous deregulation.
These multiple changes happening one after other has a ripple effect

37
on a bank trying to graduate from completely regulated sellers market
to completed
deregulated customers market.

Deregulation: This continuous deregulation has made the Banking

market extremely competitive with greater autonomy, operational
flexibility, and decontrolled interest rate and liberalized norms for
foreign exchange. The deregulation of the industry coupled with
decontrol in interest rates has led to entry of a number of players in
the banking industry. At the same time reduced corporate credit off
take thanks to sluggish economy has resulted in large number of
competitors battling for the same pie.

New rules: As a result, the market place has been redefined with new
rules of the game. Banks are transforming to universal banking,
adding new channels with lucrative pricing and freebees to offer.
Natural fall out of thist. skill building has led to a series of innovative
product offerings catering to various customer segments, specifically
retail credit.

Efficiency: This in turn has made it necessary to look for efficiencies

in the business. Banks need to access low cost funds and
simultaneously improve the efficiency. The banks are facing pricing
pressure, squeeze on spread and have to give thrust on retail assets.

Diffused Customer loyalty: This will definitely impact Customer

preferences, as they are bound to react to the value added offerings.
Customers have become demanding and the loyalties are diffused.

38
There are multiple choices, the wallet share is reduced per bank with
demand on flexibility and customization. Given the relatively low
switching costs; customer retention calls for customized service and
hassle free, flawless service delivery.

Improving profitability: There is increasing competition and

narrowing of spreads and it is having an impact on the profitability of
banks. The challenge for banks is how to manage with thinning
margins while at the same time working to improve productivity which
remains low in relation to global standards. This is particularly
important because with dilution in banks’
equity, analysts and shareholders now closely track their performance.
Thus, with falling spreads, rising provision for NPAs and falling interest
rates, greater attention will need to be paid to reducing transaction
costs. This will require tremendous efforts in the area of technology
and
for banks to build capabilities to handle much bigger volumes.

Risk management: The deregulated environment brings in its wake

risks along with profitable opportunities, and technology plays a crucial
role in managing these risks. In addition to being exposed to credit
risk, market risk and operational risk, the business of banks would be
susceptible to country risk, which will be heightened as controls on the
movement of capital are eased. In this context, banks are upgrading
their credit assessment and risk management
skills and retraining staff, developing a cadre of specialists and
introducing technology driven management information systems.

39
Corporate governance: Besides using their strengths and strategic
initiatives for creating shareholder value, banks have to be conscious
of their responsibilities towards
corporate governance. Following financial liberalisation, as the
ownership of banks gets broadbased, the importance of institutional
and individual shareholders will increase.
In such a scenario, banks will need to put in place a code for corporate
governance for benefiting all stakeholders of a corporate entity.

Misaligned mindset: These changes are creating challenges, as

employees are made to adapt to changing conditions. There is
resistance to change from employees and the Seller market mindset is
yet to be changed coupled with Fear of uncertainty and Control
orientation. Acceptance of technology is slowly creeping in but the
utilization is not maximised.

Competency Gap: Placing the right skill at the right place will
determine success. The competency gap needs to be addressed
simultaneously otherwise there will be missed opportunities. The focus
of people will be on doing work but not providing solutions, on
escalating problems rather than solving them and on disposing
customers instead of using the opportunity to
cross sell.

40
Investment in India - Banking System
The last decade witnessed the maturity of India's financial markets.
Since 1991, every governments of India took major steps in reforming
the financial sector of the country. The important achievements in the
following fields is discussed under serparate heads:

Financial markets

Regulators

The banking system

Non-banking finance companies

The capital market

Mutual funds

Overall approach to reforms

Deregulation of banking system

Capital market developments

Consolidation imperative

Now let us discuss each segment seperately.

Financial Markets

In the last decade, Private Sector Institutions played an important

role. They grew rapidly in commercial banking and asset management
business. With the openings in the insurance sector for these
institutions, they started making debt in the market.
Competition among financial intermediaries gradually helped the
interest rates to decline. Deregulation added to it. The real interest

41
rate was maintained. The borrowers did not pay high price while
depositors had incentives to save. It was something between the
nominal rate of interest and the expected rate of inflation.

Regulators
The Finance Ministry continuously formulated major policies in the field
of financial sector of the country. The Government accepted the
important role of regulators. The Reserve Bank of India (RBI) has
become more independant. Securities and Exchange Board of India
(SEBI) and the Insurance Regulatory and Development Authority
(IRDA) became important institutions. Opinions are also there that
there should be a super-regulator for the financial services sector
instead of multiplicity of regulators.

The Banking System

Almost 80% of the business are still controlled by Public Sector Banks
(PSBs). PSBs are still dominating the commercial banking system.
Shares of the leading PSBs are already listed on the stock exchanges.
The RBI has given licences to new private sector banks as part of the
liberalisation process. The RBI has also been granting licences to
industrial houses. Many banks are successfully running in the retail
and consumer segments but are yet to deliver services to industrial
finance, retail trade, small business and agricultural finance.

The PSBs will play an important role in the industry due to its number
of branches and foreign banks facing the constrait of limited number of
branches. Hence, in order to achieve an efficient banking system, the
onus is on the Government to encourage the PSBs to be run on
professional lines.

Development Finance Institutions

42
FIs's access to SLR funds reduced. Now they have to approach the
capital market for debt and equity funds.

Convertibility clause no longer obligatory for assistance to corporates

sanctioned by term-lending institutions.

Capital adequacy norms extended to financial institutions.

DFIs such as IDBI and ICICI have entered other segments of financial
services such as commercial banking, asset management and
insurance through separate ventures. The move to universal banking
has started.

Non-Banking Finance Companies

In the case of new NBFCs seeking registration with the RBI, the
requirement of minimum net owned funds, has been raised to Rs.2
crores.

Until recently, the money market in India was narrow and

circumscribed by tight regulations over interest rates and participants.
The secondary market was underdeveloped and lacked liquidity.
Several measures have been initiated and include new money market
instruments, strengthening of existing instruments and setting up of
the Discount and Finance House of India (DFHI).

The RBI conducts its sales of dated securities and treasury bills
through its open market operations (OMO) window. Primary dealers
bid for these securities and also trade in them. The DFHI is the
principal agency for developing a secondary market for money market
instruments and Government of India treasury bills. The RBI has
introduced a liquidity adjustment facility (LAF) in which liquidity is

43
injected through reverse repo auctions and liquidity is sucked out
through repo auctions.

On account of the substantial issue of government debt, the gilt-

edged market occupies an important position in the financial set- up.
The Securities Trading Corporation of India (STCI), which started
operations in June 1994 has a mandate to develop the secondary
market in government securities.

Long-term debt market: The development of a long-term debt market

is crucial to the financing of infrastructure. After bringing some order
to the equity market, the SEBI has now decided to concentrate on the
development of the debt market. Stamp duty is being withdrawn at the
time of dematerialisation of debt instruments in order to encourage
paperless trading.

The Capital Market

The number of shareholders in India is estimated at 25 million.

However, only an estimated two lakh persons actively trade in stocks.
There has been a dramatic improvement in the country's stock market
trading infrastructure during the last few years. Expectations are that
India will be an attractive emerging market with tremendous potential.
Unfortunately, during recent times the stock markets have been
constrained by some unsavoury developments, which has led to retail
investors deserting the stock markets.

Mutual Funds

44
The mutual funds industry is now regulated under the SEBI (Mutual
Funds) Regulations, 1996 and amendments thereto. With the issuance
of SEBI guidelines, the industry had a framework for the establishment
of many more players, both Indian and foreign players. The Unit Trust
of India remains easily the biggest mutual fund controlling a corpus of
nearly Rs.70,000 crores, but its share is going down. The biggest
shock to the mutual fund industry during recent times was the
insecurity generated in the minds of investors regarding the US 64
scheme. With the growth in the securities markets and tax advantages
granted for investment in mutual fund units, mutual funds started
becoming popular.

The foreign owned AMCs are the ones which are now setting the pace
for the industry. They are introducing new products, setting new
standards of customer service, improving disclosure standards and
experimenting with new types of distribution.

The insurance industry is the latest to be thrown open to competition

from the private sector including foreign players. Foreign companies
can only enter joint ventures with Indian companies, with participation
restricted to 26 per cent of equity. It is too early to conclude whether
the erstwhile public sector monopolies will successfully be able to face
up to the competition posed by the new players, but it can be expected
that the customer will gain from improved service.
The new players will need to bring in innovative products as well as
fresh ideas on marketing and distribution, in order to improve the low
per capita insurance coverage. Good regulation will, of course, be
essential.

45
Overall Approach To Reforms

The last ten years have seen major improvements in the working of
various financial market participants. The government and the
regulatory authorities have followed a step-by-step approach, not a big
bang one. The entry of foreign players has assisted in the introduction
of international practices and systems. Technology developments have
improved customer service. Some gaps however remain (for example:
lack of an inter-bank interest rate benchmark, an active corporate debt
market and a developed derivatives market). On the whole, the
cumulative effect of the developments since 1991 has been quite
encouraging. An indication of the strength of the reformed Indian
financial system can be seen from the way India was not affected by
the Southeast Asian crisis.

However, financial liberalisation alone will not ensure stable economic

growth. Some tough decisions still need to be taken. Without fiscal
control, financial stability cannot be ensured. The fate of the Fiscal
Responsibility Bill remains unknown and high fiscal deficits continue. In
the case of financial institutions, the political and legal structures hve
to ensure that borrowers repay on time the loans they have taken. The
phenomenon of rich industrialists and bankrupt companies continues.
Further, frauds cannot be totally prevented, even with the best of
regulation. However, punishment has to follow crime, which is often
not the case in India.

46
Deregulation Of Banking System

Prudential norms were introduced for income recognition, asset

classification, provisioning for delinquent loans and for capital
adequacy. In order to reach the stipulated capital adequacy norms,
substantial capital were provided by the Government to PSBs.

Government pre-emption of banks' resources through statutory

liquidity ratio (SLR) and cash reserve ratio (CRR) brought down in
steps. Interest rates on the deposits and lending sides almost entirely
were deregulated.

New private sector banks allowed to promote and encourage

competition. PSBs were encouraged to approach the public for raising
resources. Recovery of debts due to banks and the Financial
Institutions Act, 1993 was passed, and special recovery tribunals set
up to facilitate quicker recovery of loan arrears.

Bank lending norms liberalised and a loan system to ensure better

control over credit introduced. Banks asked to set up asset liability
management (ALM) systems. RBI guidelines issued for risk
management systems in banks encompassing credit, market and
operational risks.

A credit information bureau being established to identify bad risks.

Derivative products such as forward rate agreements (FRAs) and
interest rate swaps (IRSs) introduced.

47
Capital Market Developments

The Capital Issues (Control) Act, 1947, repealed, office of the

Controller of Capital Issues were abolished and the initial share pricing
were decontrolled. SEBI, the capital market regulator was established
in 1992.

Foreign institutional investors (FIIs) were allowed to invest in Indian

capital markets after registration with the SEBI. Indian companies
were permitted to access international capital markets through euro
issues.
The National Stock Exchange (NSE), with nationwide stock trading and
electronic display, clearing and settlement facilities was established.
Several local stock exchanges changed over from floor based trading
to screen based trading

Private Mutual Funds Permitted

The Depositories Act had given a legal framework for the

establishment of depositories to record ownership deals in book entry
form. Dematerialisation of stocks encouraged paperless trading.
Companies were required to disclose all material facts and specific risk
factors associated with their projects while making public issues.
To reduce the cost of issue, underwriting by the issuer were made
optional, subject to conditions. The practice of making preferential
allotment of shares at prices unrelated to the prevailing market prices
stopped and fresh guidelines were issued by SEBI.

SEBI reconstituted governing boards of the stock exchanges,

introduced capital adequacy norms for brokers, and made rules for

48
making client or broker relationship more transparent which included
separation of client and broker accounts.

Buy Back Of Shares Allowed

The SEBI started insisting on greater corporate disclosures. Steps were

taken to improve corporate governance based on the report of a
committee.
SEBI issued detailed employee stock option scheme and employee
stock purchase scheme for listed companies.

Standard denomination for equity shares of Rs. 10 and Rs. 100 were
abolished. Companies given the freedom to issue dematerialised
shares in any denomination.

Derivatives trading starts with index options and futures. A system of

rolling settlements introduced. SEBI empowered to register and
regulate venture capital funds.

The SEBI (Credit Rating Agencies) Regulations, 1999 issued for

regulating new credit rating agencies as well as introducing a code of
conduct for all credit rating agencies operating in India.

Consolidation Imperative

Another aspect of the financial sector reforms in India is the

consolidation of existing institutions which is especially applicable to
the commercial banks. In India the banks are in huge quantity. First,
there is no need for 27 PSBs with branches all over India. A number of
them can be merged. The merger of Punjab National Bank and New
Bank of India was a difficult one, but the situation is different now. No
one expected so many employees to take voluntary retirement from

49
PSBs, which at one time were much sought after jobs. Private sector
banks will be self consolidated while co-operative and rural banks will
be encouraged for consolidation, and anyway play only a niche role.
In the case of insurance, the Life Insurance Corporation of India is a
behemoth, while the four public sector general insurance companies
will probably move towards consolidation with a bit of nudging. The
UTI is yet again a big institution, even though facing difficult times,
and most other public sector players are already exiting the mutual
fund business. There are a number of small mutual fund players in the
private sector, but the business being comparatively new for the
private players, it will take some time.

We finally come to convergence in the financial sector, the new

buzzword internationally. Hi-tech and the need to meet increasing
consumer needs is encouraging convergence, even though it has not
always been a success till date. In India organisations such as IDBI,
ICICI, HDFC and SBI are already trying to offer various services to the
customer under one umbrella. This phenomenon is expected to grow
rapidly in the coming years. Where mergers may not be possible,
alliances between organisations may be effective. Various forms of
bancassurance are being introduced, with the RBI having already come
out with detailed guidelines for entry of banks into insurance. The LIC
has bought into Corporation Bank in order to spread its insurance
distribution network. Both banks and insurance companies have
started entering the asset management business, as there is a great
deal of synergy among these businesses. The pensions market is
expected to open up fresh opportunities for insurance companies and
mutual funds.

50
It is not possible to play the role of the Oracle of Delphi when a vast
nation like India is involved. However, a few trends are evident, and
the coming decade should be as interesting as the last one.

51
 SWOT ANALYSIS

Strengths

• Right strategy for the right

products.

• Superior customer service vs.

Weaknesses

competitors.

• Great Brand Image

• Some gaps in range for
• Products have required certain sectors.
accreditations.
• Customer service staff need
• High degree of customer training.
satisfaction.
• Processes and systems, etc
• Good place to work
• Management cover
• Lower response time with insufficient.
efficient and effective
• Sectoral growth is constrained
service.
by low unemployment levels
• Dedicated workforce aiming and competition for staff
at making a long-term career
in the field.

52
Opportunities

• Profit margins will be good.

Threats

• Could extend to overseas • Legislation could impact.

broadly. • Great risk involved

• New specialist applications. • Very high competition

• Could seek better customer prevailing in the industry.

deals. • Vulnerable to reactive attack

• Fast-track career by major competitors.

development opportunities • Lack of infrastructure in rural

on an industry-wide basis. areas could constrain

• An applied research centre to investment.

create opportunities for • High volume/low cost market

developing techniques to is intensely competitive.
provide added-value services

53
 DATA

Collection:

Data has been collected from sources like books, periodicals, journals,
newspapers, Internet and through the questionnaires.

Primary Data:
The primary data has been collected by raising a questionnaire with a
sample size of 65.
The questionnaire is based on the evaluation of investment pattern of
Trusts and Societies.

Secondary Data:
The secondary data has been collected from various books, magzines,
journals, information brochures and internet web sites.

54
 FINDINGS & ANALYSIS

The survey helped to draw a general trend of the investment pattern of

the various Trusts and Societies

Question no. 1 to 3
The first three questions being self explanatory do not need to be
elaborated upon. They aim at the basic introductory information of the
organization and the person being interviewed thus rendering the
follow up work easier.

Question no. 4
The financial standing of an organization is instrumental in the
advisory council deciding upon the investments to be opted for. Further
the future decisions regarding the use of the funds generated and
important all the more, the decisions relating to the fund raising
procedure of the society are reviewed in wake of the correct position of
the finances of the society. Hence the forth question which helps to
give an idea about the financial status of the society being
approached, thus enabling the organization to market the appropriate
scheme.

55
Quantitative Analysis
From the responses generated the following results were draw:
The societies lying under the category of:
Very strong 14%
Strong 55%
Moderately strong 31%

Moderately
Strong

Very Strong
Strong Strong
Moderately Strong

Very Strong

0% 10% 20% 30% 40% 50% 60%

Conclusion
A good majority of the investors questioned were of the view that the

organization they are currently dealing with is financially strong.

56
Question no. 5
The financial position of the society depends a lot on its ability to
successfully raise funds for its working. Also a regular and steady
source of funds enables the society to successfully manage the
expenses and earn a decent amount of surplus that can be
apportioned in many ways, one of those ways definitely being
investing into some profitable and safe deposit schemes, which forms
the base of the survey conducted. Therefore the fifth question aims at
generating information about the various sources of funds of the
societies approached.
Quantitative Analysis
From the responses generated the following results were drawn:
Donations 75%
Income from the institutions 4%
Aid 8%
Others 13%

57
 Q5) HOW DOES THE SOCIETY SUSTAIN FINANCIALLY?

75%
80%
70%
60%
50%
Donations
40%
30% Income from the institutions
20% 13% AID (AF)
8%
10% 4% Any others, Please Specify
0%
Donations Income from AID (AF) Any others,
the Please
institutions Specify

Conclusion
Mainly the source of income has been found to be Donations received
by the trusts. The share of other income sources is very low as
compared to Donations.
Question no. 6
The funds earned by the society need to be consistent and should be
able to meet the expenses of the society satisfactorily. The fact
whether the society is able to meet the expenses by the funds raised
by them, easily or not, points in the direction of the sound or not so
sound position of the society. Thus giving an idea about the surplus or
the deficit being earned by the society. Hence the sixth question
enables us to judge which societies to approach while targeting a
particular scheme.
Quantitative Analysis
From the responses generated the following results were drawn:
Yes 80%
No 20%

58
 NO 20%

YES
No

YES 80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Conclusion
The management of most of the Societies visited accepted that the
funds they are collecting, are meeting the expenses satisfactorily.

Question no. 7
The financial consistency of the society is the indicator of the growth of
the society. The change in the consistency in any direction, requires
the reviewing of the financial policies of the society. The more
consistent the society over the longer period, the stronger the financial
position of the society. Consistency gives a solid base to the financial
working of the society. Hence consistency is the criteria for judgement
and has been incorporated in the questionnaire in the form of seventh
question. It was observed that the officials did not give a straight
forward answer to this question, most of them preferring not to
answer the question.
The second part in the question which aimed at finding about any
significant happenings in the working of the society, good or bad, for

59
such happening affects the working and the financial position of the
society. The general response to this question was “nothing in
particular”, with a couple of responses bringing out the good aspects of
the changes brought about by certain happenings. It was observed
that the officials did not come out with the information about any
adverse happening.

Question no. 8
What the societies do with the excess funds is of utmost importance
to both the society and the companies that aim to market their
schemes to these societies. The amount of excess funds that remain
with these societies determines the uses to which it is put. These could
be towards the development of the society or for expansion purposes
or for investment purposes. Therefore this question has been included
to enable the attainment of further information on the investment
pattern of the surveyed societies which would form the base for
deciding upon the marketing of the offered investment schemes to
these societies.

Quantitative Analysis
The results obtained were in the following fashion:
The surplus is mainly used for the following purposes:
Development 8%
Expansion 19%
Investment 73%

60
 Q8) HOW DO YOU APPORTION THE SURPLUS GENERATED BY THE SOCIETY?

8%

19%

USE IT FOR DEVELOPMENTAL ACTIVITIES PLEASE

EXPANSION PURPOSES
INVESTMENTS

73%

Conclusion
The surplus generated by the society is mostly being used for making
investments.
A very small percentage of the societies are using these funds for the
expansion activities or developmental activities. It was seen that none
of the societies funded to the parent institution
The main reason cited for this attitude may be that these societies rely
heavily on the interest accrued out of these deposits. In other terms it
is there main source of income.
Question no. 9
The ninth question is meant to gather information about people who
are instrumental in advising and putting to action the investment plans
for the society. These could be people belonging to the accounts and
finance department, the trustees or the governing body, auditors,
chartered accountants, etc.

Quantitative Analysis
From the responses generated the following results were drawn:
Accounts and finance department 11%

61
Chartered accountants/consultants 6%
Auditors 7%
Trustees or Governing bodies 76%

Q9) WHO IS INSTRUMENTAL IN RECOMMENDING

INVESTMENTS IN YOUR SOCIETY?:
11% 6%
7%

76%
ACCOUNTS & FINANCE DEPARTMENT
CHARTERED ACCOUNTANTS/CONSULTANTS
AUDITORS
TRUSTEES/GOVERNING BODY

Conclusion
The trustees or the governing body of the societies play the key role in
recommending investments to the society.

Question no. 11
This question aims at gathering information about where these
societies like to invest their surplus money. It tries to find out if
investments are made only in banks or they are made in other
organizations as well. Incase they prefer only the banks then what is
the reason behind it.
Incase the answer turned out to be negative, then the next part tries
to bring out specific preferences of these societies apart from banks.

Quantitative Analysis

62
The results obtained from the first part of the question are:
Yes 88%
No 12%

Q11) ARE INVESTMENTS MADE ONLY IN BANKS?

YES
NO
NO 12%

YES 88%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Conclusion
A very large majority of the societies believe in investing their surplus
in banks, as they feel that the investments made with the banks are
safe and secure and yield a high rate of interest.

Results from the second part are:

PSU’s 22%
Financial institutions 40%
UTI 11%
Housing Finance Institutions 16%
Non Banking Finance Companies 11%

63
 Q11B) IN WHICH TYPE OF INSTITUTION IS THE MONEY INVESTED?

11%
22%

16%

11%

40%

PSU'S FINANCIAL INSTITUTIONS UTI HOUSING FINANCE INSTITUTIONS NON BANKING FINANCE

Conclusion
It is a case with those societies who don’t invest in the banks.
In such cases the second most favoured option is the various financial
institutions.

Question no. 10
Each organization or society has its own preferences for investing its
excess funds. These preferences and consequent decisions could be
guided by certain rules and regulations laid down by the department
with which they are registered, along with their own reasons which
would justify their investment decisions as being in the best interest of

64
the society. The first part of the question deals with the choices of
these societies with regards to the decision for investing in public or
private sector.

Quantitative Analysis
The results showed the following:
Public sector 80%
Private sector 20%

Q10) PREFERENCE OF INVESTORS ON THE BASIS OF THE TYPE

OF ORGANISATION?

PRIVATE PRIVATE SECTOR

SECTOR 20% PUBLIC SECTOR

PUBLIC SECTOR 80%

0% 20% 40% 60% 80% 100%

Conclusions
A huge majority of the respondents agreed to have made/ willing to
make investments in a public sector organisation.

The next part of the question deals with the preferences of the society
to invest in various deposit schemes differentiated from each other on
the basis of the time period.

Quantitative Analysis
The results showed the following:
Long term 32%

65
Medium term 52%
Short term 32%

Q10B) PREFERENCE OF INVESTORS

ON THE BASIS OF TIME PERIOD?

60%
50%
40% SHORT RANGE
30%
52% MEDIUM
20% 32% 32%
10% RANGE
0% LONG RANGE
LONG MEDIUM SHORT
RANGE RANGE RANGE

Conclusions
Almost half of the responses were in the favour of medium range
investments. And approximately one third of the respondents were
in the favour of either short range or long range investments.

Question no.12
There are various dimensions which are thoroughly scrutinized before
the investment decisions are implemented. Hence the twelfth question
tries to assess what is it exactly that the trusts look for, while
investing. For example do they prefer a high rate of interest, or better
service, or safety, etc.. these are the aspects which are dealt in the
last question.

66
Quantitative Analysis
From the responses generated the following results were drawn:
Rate of interest 95%
Flexibility of Withdrawal 50%
Minimum Period of Deposit 50%
Minimum Amount for Deposit 50%
Safety Ratings 90%
Good Service 80%
Location of the Institution 70%

67
 Q12) How do you rate the following if given a ten point scale, for selecting a
particular kind of investment?

LOCATION OF THE INSTITUTION 70%

GOOD SERVICE 85%

RATE OF INTEREST
SAFETY RATINGS 90%
FLEXIBILITY OF WITHDRAW
MINIMUM PERIOD OF DEPOSIT
MINIMUM AMOUNT FOR DEPOSIT 55% MINIMUM AMOUNT FOR DEPOSIT
SAFETY RATINGS
GOOD SERVICE
MINIMUM PERIOD OF DEPOSIT 60%
LOCATION OF THE INSTITUTION

FLEXIBILITY OF WITHDRAW 50%

RATE OF INTEREST 100%

0% 20% 40% 60% 80% 100% 120%

Conclusions
The four most important and critical considerations from the investors
point of view found to be are:
1. Rate of interest
2. Safety
3. Good service
4. Location of the institution

68
 RECOMMENDATIONS

The following are the points of consideration :-

It is required that the depositor trust and the potential depositor trust

be sent a comparative interest rate table showing the rate of interest

being offered by the various housing finance companies and other such

institutions.

It is so because when HDFC cuts interest rates the media publicizes it

widely, while when other housing finance companies do the same it

goes unnoticed. This has given an impression to the trusts that HDFC

is paying lower rate of interest.

The fact that people consider banks to be more safe than any other

institution and safety being the most preferred criteria for their

selection of investment schemes, HDFC Ltd can bank upon advertising

in a manner that emphasizes the company’s advantage in this aspect.

The role of advertising has been very limited in collecting deposits.

This needs to change, for more advertising brings more deposits.

The deposit schemes can be advertised to the trusts by post. A

brochure giving details of the deposit schemes can be sent to the

trusts who have not been participating in the deposit scheme of HDFC.

It is known that HDFC is at a disadvantage as are other housing

finance companies when it comes to advertising due to the restriction

69
by the NHB. But still the deposits schemes must be advertised within

the framework laid down by the NHB.

Most people known HDFC as a lending institution and do not know that

HDFC also accepts deposits. This fact makes it very important to

advertise vigorously, the deposit schemes of the corporation.

To increase the goodwill of the corporation further in the minds of the

depositors. HDFC should send greetings to its depositors on such

occasions as festivals. Small New Year gifts such as cards, calendars,

diaries, etc can also be sent to the depositors who place a somewhat

large deposit with the corporation.

70
 CONCLUSIONS

The trusts can participate in fixed deposits of only those institutions

which have the “Trustee Security and Benefit Status” under Sec.

11(5)(ix)). Due to this legal compulsion the options with the trusts to

invest in the fixed deposits gets restricted. All the more, the trusts

usually have very large amounts and placing these deposits with small

and not very reliable companies is not advisable because of safety

reasons. HDFC enjoys a reputation of never having defaulted in its

interest payments or refund of deposits. With ‘FAAA’ & ‘MAAA’ rating

affirmed to the corporation for 11 consecutive years by CRISIL & ICRA

respectively. HDFC holds the ‘Numero Uno’ position. As was said earlier

with the people considering banks to be the safest options for deposits

all that HDFC needs to do is to bank upon its unquestionable strength.

An awareness needs to be created amongst the masses about the

importance of “Credit Ratings” and what it actually means to earn such

credible ratings as ‘FAAA’ & ‘MAAA’ for 11 consecutive years which has

been a significant achievement of HDFC over the years.

The additional questions that formed a part of the post interview

discussion brought into light the fact that the people come to know

about the various schemes offered by the financial institutions through

the newspapers, magazines and journals. With the response available,

71
it was seen that HDFC needs to strengthen upon the reach of its

advertisements.

A lot of stress has been laid on spreading the information regarding

the fixed deposits schemes in the report. In this context HDFC is

constrained because it can advertise only in a statutory format

approved by the NHB. But advertising is absolutely essential and the

corporation must advertise within the framework prescribed by the

NHB.

To conclude, it can be said that the biggest asset of HDFC is its

goodwill and the corporation must exploit this goodwill to the

maximum possible extent to increase the participation of the general

public at large and the trust sin particular in its fixed deposits

schemes.

72
 BIBLIOGRAPHY

1. www.hdfc.com

2. www.nmc.com

3. www.hdfcfunds.com

4. www.google.com

5. www.yahoosearch.com

73
ANNEXURES

74
ANNEXURE-1

Trusts & Societies

S.No. Name Address

1. Humanity Welfare Foundation N-118, G.K.-I

2. National Safai Karamchari B-2, 1st Floor, G.K.
Finance & Development Corp. Enclave
Part-II
3. Panchtarni S-525, G.K.-II
4. Retina Associates Eye Foundation G.K. Enclave-II
5. Betterment of Human Trust S-228, G.K.-II
6. Subhash Sushila Lakhotia Trust S-228, G.K.-II
7. Shree Jain Kaushal Suri Jain Jain Dada Bari, R-Block
Khatragachh Dada Bari Trust South Ex. Part-II
8. Bal Vikash Foundation E-63, South Ex Part-I
9. BSB Educational Trust A-68, NDSE Part-I
10. D.V. Nirmal & Mangal Sain Trust C-3/3 Vasant Vihar
11. Helpage India Qutab Institutional Area
12. Indian Society for Training and Qutab Institutional Area
Development
13. Sanjivani Qutab Institutional Area
14. Chinnaya Sewa Trust 89, Lodhi Estate, Lodhi
Road
15. Council of Architecture Core 6A, 1st floor,
India Habitat Centre,
Lodhi Road
16. Council of Architecture Core 6A, 1st floor,
Employees Group Gratuity India Habitat Centre,
Scheme Lodhi Road
17. Council for Social Development 53, Lodhi Estate
18. Company Secretaries Benevolent The ICSI House,
Fund 22 Institutional Area,
Lodhi Road
19. Namdev Mission Trust 16 Institutional Area,
Lodhi Road
20. Om SAi Sadhna Sansthan D-138 Defence Colony

75
21. Namgyal Institute for Research X-14, Green Park
on Ladakhi Arts & Culture
22. Parivar National Federation of C-4/5, S.D.A., 1st floor
Parents Association
23. Rahat Ch. and Medieval Research C-7/226 S.D.A.
Trust
24. Social out Reach Foundation N-128, Panchsheel Park
25. D.D. Foundation Trust Society N-56, Panchsheel Park
26. Balaji Ch. Trust C-4, Shivalik,
near Malviya Nagar
27. Diabetic Self Care Foundation 13, Sheikh Sarai, Phase-I
Malviya Nagar
28. Children Education Foundation C-451, C.R. Park
29. Holy Child Trust 3-B SFS Block,
East of Kailash
30. Bhartiya Yatri Awas Vikas Samiti B-38, Kailash Colony
31. Pratab Ch. Trust D-50, East of Kailash
32. Sukhdevraj Soin Hospital Trust 164, Kailash Hills,
East of Kailash
33. Blue Bells Education Society Kailash Colony
34. Chandra Educational & Welfare B-94, Okhla Industrial
Society Area
Phase-II
35. Sponge Iron Manufacturer’s IS01, Hemkunt Press
Associatio
36. Bhandari Ch. Trust 203, Pragati House
47-48 Nehru Place
37. CEEFI Supply Centre Trust 805/92 Deepali Building,
Nehru Place
38. Gyan Educational Society D-1/1 Hauz Khas
39. Centre for Development & Q-1A Hauz Khas Enclave
Human Rights
40. Kali for Women K-92, 1st Floor
Hauz Khas Enclave
41. Old Cottonian Association 1 Aurobindo Marg
Hauz Khas

76
42. NIILM Trust B-11/66, NC-19
Delhi-Mathura Road
43. Path A-9, Qutab Institutional
Area
44. Banarsidas Chandiwala Sewa Chandiwala Estate,
Smarak Trust Society Maa Anandmai Marg,
Kalkaji
45. USO USO House, USO Marg
Jeet Singh Marg

Annexure-2
Hospitals
S.No. Name Address

1. Pushpawati Singhania Research Press Enclave Marg

Institute Sheikh Sarai II
2. Sama Nursing Home 8, Siri Fort Road
3. Escorts Heart Institute & Okhla Road
Research Centre
4. Apollo Hospital Sarita Vihar, Delhi-
Mathura Road
5. Venu Eye Institute & Research Sheikh Sarai
Centre Institutional Area
6. Indian Radiological & Imaging IRIA House,
Association C-5, Qutab Institutional
Area
7. Skan Institute & School of Zamindpur, N- Block

77
 Dermatology
8. R G Stone Urological Research F-12 East of Kailash
Institute
9. Well Spring A-28 Kailash Colony
10. Dr Sharma’s Nursing Home A-19/A Kailash Colony
11. Phoenix Hospital E-60, GK I
12. National Heart Institute 49-50, Community
Centre
East of Kailash
13. Focus Imaging & Research C-10 Green Park
Centre Pvt. Ltd Extension
14. Lifeline Laboratory H-11 Green Park
Extension
15. Spring Meadows Hospital F-44 East of Kailash
16. Mohinder Hospital C-5 Green Park
Extension
17. Rockland Hospital Qutab Institutional Area
18. Max Care Pushp Vihar, Saket
19. AIIMS
20. Safdurjung
21. G.B. Pant
22. Lok Nayak
23. S.S.K. Hospital
24. Kalawati Saran Children’s
Hospital
25. Ram Manohar Lohia

78
Annexure-3
Trusts & societies
S.No. Name Address
1. Stint Trial N-221, G.K.-I
2. Health Education & Research B-26, G.K.-I
Trust
3. Business & Communication E-46, G.K.-I
Foundation
4. B.I. Educational Society B-117, G.K.-I
5. Balak Ram Puri Charitable Trust B-49, G.K.-I
6. Narendra Nath Bhargava Ch. R-9, G.K.-I
Trust
7. New Delhi Television Jai Fund W-17, G.K.-I
8. Ramnivas Asha Rani Lakhotia S-228, G.K.-I
Trust
9. Dewan Shri Family Charity Trust B-75, G.K.-I
10. Bhardwaj Welfare Trust E-18, G.K.-I
11. Rameshwari Devi Trust B-22, Pumposh Enclave
G.K.-I
12. St. Janki Devi Trust N-217, G.K.-I
13. Sri Premji Maharaj Ch. Trust R-258-A, G.K.-I
14. Springdale Educational Society Benito Juareg Marg
Dhaula Kuan
15. Himalayan R&D Society A-101, SOS Vihar
Sector-13, R.K. Puram
16. Defence Accounts Sports Control West Block-V, R.K. Puram
Board
17. Safe Blood Organisation E-410, G.K.-II
18. Shri Guru Singh Sabha E- Block Gurudwara
G.K.-II

79
19. Shri Bindra Ban Dass Vimal M-13, G.K.-II
Kishore Jain Dharmarth Trust
20. Spiritual Clubs International S-288, G.K.-II
21. Humanity Welfare Trust S-228, G.K.-II
22. Babulal Aggarwal Ch. Trust W-39, G.K.-II
23. B.D. Rukhmani Khosla Charitable M-235, G.K.-II
Trust
24. Ashwat Teerthraj Sammedshikhir G.K. Enclave Part II
Trust
25. National Cancer Institute M-129, G.K.-II
26. Bhimsen Shanti Devi Trust G.K.-II
27. Sudesh Madhok Public Ch. Trust M-14, G.K.-II
28. Sai Kirpa 210, South Ex. Plaza-I
389, Masjid Moth, NDSE-III
29. Hedgewar Smarak Nyas C-99, South Ex Part-II
30. Dental Education Society of India C-56, South Ex. Part-II
31. Centra Education Society B-48, South Ex. Part-I
32. Bharat Mata Ch. Trust M-14-B, South Ex. Part-II
33. Sundale Educational Society B-37, South Ex. Part-II
34. Marchhea Devi Memorial Trust C-39, South Ex. Part-II
35. Balfeet Memorial Ch. Trust A-9/27, Vasant Vihar
36. Chaudhary Raja Ram Jakhar E-1/1 Vasant Vihar
Memorial Pubic Ch. Turst
37. Country First C-6/4, Vasant Vihar
38. C&N Charitable Trust E-4/5 , Vasant Vihar
39. Guru Amardas Memorail Trust F-4/10, Vasant Vihar
40. Goodwill Trust and Endownment 2 Vasant Marg, Vasant Vihar
Fund
41. Parkinsonism and Related D-319, Vasant Vihar
Disorders Awareness Network
42. Shri Kannashankar Nandlal Dave A-51, Vasant Vihar
Educationa Trust
43. Sunder Amarsheel Ch. Trust A-10/16, Vasant Vihar
44. Tara Tak Employees Provident B-32, Tara Crescent
Fund Trust Qutab Institutional Area
45. Society for Automotive Fitness & Core - 4B, 5th Floor
Environment India Habitat Centre
Lodhi Road

80
46. Health Fitness Trust B-307, Pragati Alhar Hostle,
Lodhi Road
47. BSF Special Relief Fund Room - 616, Block - 10
CGO Complex, Lodhi Road
48. BSF Contributory Benevolent Room - 616, Block - 10
Fund CGO Complex, Lodhi Road
49. BSF Wives Welfare Association Room - 616, Block - 10
CGO Complex, Lodhi Road
50. BSF Education Fund Room - 616, Block - 10
CGO Complex, Lodhi Road
51. Consulting Engineers Association East Court Zone-4, Core 4 B
of India 2nd floor, India Habitat Centre
52. Gymnastic Federation of India Jawaharlal Nehru Stadium,
Lodhi Road
53. National Adventure Foundation Jawaharlal Nehru Stadium,
Lodhi Road
54. Sports Authority of India Jawaharlal Nehru Stadium,
Lodhi Road
55. Shri Ramayan Vidya Peeth Lodhi Road
56. People Institute for Development C-114, Vasant Kunj
& Training
57. Centre for Development & Action D-3, 3306, Vasant Kunj
58. Godhyi 513 Pocket, C- SCEA
Vasant Kunj
59. Bunts Cultural Association C-1/1289, Vasant Kunj
60. Bhartiya Tripureshwari Shakti Flat No. 2128, Sec. 6
Peeth Pocket - 2, Vasant Kunj
61. Siray Relief And Anilam Welfare 2303, Sec D-2
Vasant Kunj
62. South Delhi Educational Society South Delhi Public School
Defence Colony
63. Baijnath Bhandari Public Ch. E-22, Defence Colony
Trust
64. Basant Rajmadhu Bhandari Ch. C-127, Defence Colony
Trust
65. D.. Mehta Ch. Trust D-196, Defence Colony

81
66. Panos Institute (India) Pvt. Ltd 49, Defence Colony, 1st floor
67. Project Corner Integrational C-38, Defence Colony
68. Deviya Nirvan Welfare Ch. A-146, Defence Colony
Society
69. Dr Mahesh Chandra Gupta Ch. D-19, Defence Colony
Trust
70. Smt. Ramrakhi & Hakim D-399, Defence Colony
Chunnilal Kohli Memorial Ch.
Trust
71. Saraswati Ch. Trust 130-C, Saraswati Niwas
Gautam Nagar
72. Centre for Human Development 99/6 Ekta Appartts,
Ground floor, Gautam Nagar
73. Leapfrog A-14, 3rd floor
Gulmohar Park
74. Jashn-E-Bahar 50 - SFS Flats, Gautam
Appartts
Gautam Nagar
75. Centre For Agriculture & Rural G-30 Lajpat Nagar Part-II
Development
76. Centre for Development of Travel J-59 Lajpat Nagar III
& Tourism
77. Rattan Chand Punjabi Ch. Trust A-61 Lajpat Nagar II
78. Dewan Chand Swahney Ch. Trust 34 Lajpat Nagar III
79. Bharat Jagrati Morcha M-67, 1st floor
Lajpat Nagar II
80. Health Care Ch. Trust R-23 Green Park
81. Hindu Sangam G-10 Green Park Extension
82. Common Wealth Human Rights N-18 1s floor
Green Park
83. Centre for Chronic Disease 17 Green Park Extension
Control 1st floor
84. Relan Foundation R-5 Green Park Market
85. Country Club Farmlands K-7 Green Park Extension
Association
86. Dr (Mrs) Sushila Mehra Ch. Trust C-15 Green Park

82
87. Desa Bhakta Trust C-6/28 SDA
88. Shri Peru Singh Educational & 33-A Yusuf Sarai
Welfare Society
89. Hospital Welfare Society A-2/171 Safdarjung Enclave
90. Deepannita Baisya Memorial C-2/60 Humayunpur
Trust Safdarjung Encalve
91. Rotary International’s India A-2/18 Safdarjung Encalve
National Polio Plus Society
92. CIOLOSOP Trust D-74 Panchsheel Enclave
93. LRG Foundation Panchsheel Park
94. Centre for Education & 173 A, Khirki Village
Communication Malviya Nagar
95. Charkha F Block 9/11
1st floor Malviya Nagar
96. St. Gregories Jacobite Syrian 33-C Pocket, Sheikh Sarai
Orthrodox Church Society
97. Sansaptak C-1276, 1st floor
C.R. Park
98. St. Georges Education Society G-74 East of Kailash
99. Home for Orphans E-164 East of Kailash
100. Radhika Trust A-73, East of Kailash
101. Society of Human Values and Panchvati 215
Universal Responsibilities Kailash Hills
102. Seth Ch. Trust E-48/14 Okhla Indl. Area
103. Nirmal Society for Educational C-124 Okhla Indl. Area
104. Bacardi Mutini India Employees 227 Okhla Indl. Estate Phase
Superannuation Fund III
105. Houses of Manj Immaalate Delhi Okhla Industrial Area, Phase
II
106. Conference of Religious India CRI House, Jamia Nagar
Okhla
107. Parivartan 209 Okhla Indl. Area Phase
III
108. Dayal Foundation F-1/7 Okhla Indl. Area Phase
I
109. Cooperative Rural Development 34 Nehru Place
110. Bairang Lal Jaju Foundation Jaju Appartts

83
 7/18, Nehru Enclave
111. Dufferin Rajendra Old Cadet 214 Hemkunt Towers
Association Nehru Place
112. Bhartiya Cattle Resource 305 Bakshi House
40-41 Nehru Place
113. Kanahyalal Dayawati Punj Ch. Trust 17 - 1B
114. Shri Mati Vidya Ch. Trust P-8 C Hauz Khas Enclave
Ground Floor
115. Program of Special Olympus Bharat N-27A, Hauz Khas
116. B.D. Education Society C-31 Hauz Khas
117. Cancer Detection Society of India H-8 C Hauz Khas
118. Dey Foundation K-2 Hauz Khas
119. Navdanya Trust A-60 Hauz Khas
120. Research Foundation for Science A-60 Hauz Khas
Technology & Ecology
121. National Bee Board NCUI Auditorium Building
5th floor
122. Centre for Logical Research and 28, Old JNU Campus Amna Asaf
Development Studies Ali Marg, Munirka
123. Cornerstone Community Trust BD 6A, DDA Flats,
Munirka
124. Daya Memorial Ch. Trust 87-A Munirka Village
125. Maraj Sani Siyan Singh Ch. Trust C-45 Mayair Garden,
Near Hauz Khas
126. Hazari Mal Durga Dutt Ch. Trust A-73, New Friends Colony
127. Centre for Femenist Legal Research A-18, 2nd Floor
New Friends Colony
128. Centre for Cross Cultural D-891 New Friends Colony
Communication
129. Centre for Himalayan Rural Action C-57 New Friends Colony
Group
130. Bhartiya Jana Kalyan Nidhi Bhilwara Bhawan 40-41
Community Centre
New Friends Colony
131. Centre for Advocacy & Research E-1 Press Enclave, Saket
132. Environment & Development on 46-A, MB Appartts
Line MB Road, Saket
133. Lok Awaz G-22, Saket
134. Prerna J-332 Sarita Vihar
135. Tyagi Foundation 331, Sant Nagar
136. Devathi Vidya Peeth A-14, Mathura Road

84
 Mohan Co-operative Indl. Estate
137. Mahaniam Spintual Fellowship 36/3 Motiram Building
Society Mathura Road
138. Guruji Ka Ashram Villa - E, Empire Estate
Mehrauli 9
Gurgaon Road
139. Purna Holistic Centres, Near
Chattarpur Mandir, Near Sat
Sang Kiran
140. Help Rural India D-10 Neb Valley
Neb Sarai, Mehrauli
141. Dr Pushpa Sethi Memorial Trust C-2 Maharani Bagh
142. Bhagwat Devi Gitaram Garg Welfare 10 Nizamudin East
Trust
143. Saranya Foundation N-42 Nizamudin West
144. Jindal South West Foundation 6, Prithvi Raj Road
145. Shri Rattan Chand Ch. Trust 19, Golf Links
146. Society for Agriculture & Education 42 Golf Links
147. PRIA 42, Tughlakabad Institutiona
Area
148. PNB Centemanj Rural Development 7 Bikaji Cama Place
Trust
149. National Network for India Trust 131/132 Som Dutt Chamber I
Bhikaji Cama Place
150. Logical Society of India 1 Tughlakabad Institutional Area

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