PPT ON HDFC BANK

1. Welcome to
HDFC Standard Life
Insurance Company Limited

2. The Company

3. History of The Joint Venture
• Discussions commenced - January 1995
• Joint venture agreement signed - October 1995
• Joint venture agreement renewed - October 1998
• Life Insurance project team established - January
2000 (Mumbai)
• Company officially incorporated - 14th August 2000
• First private sector Life Insurance company to be
granted a certificate of registration - 23 October 2000
• Shareholding - HDFC 81.4 %
June 17, 2011

4. Vision Statement
“ The most successful and admired
life insurance company, which
means that we are the most trusted
company, the easiest to deal with,
offer the best value for money, and
set the standards in the industry. In
short, “The most obvious choice for
all”.

5. Our Mission
• We aim to be the top new life insurance company in
the market.
• This does not just mean being the largest or the most
productive company in the market, rather it is a
combination of several things like-
Customer service of the highest order
Value for money for customers
Professionalism in carrying out business
Innovative products to cater to different needs of
different customers
Use of technology to improve service standards
Increasing market share
June 17, 2011

6. Values that will be observed while we work
with HDFCSL:
Integrity
Innovation
Customer Centric
People Care
Team Work - One for all & all for one
Joy & Simplicity
June 17, 2011

7. Housing Development
Finance Corporation Limited

8. Background
• Incorporated in 1977 as a public limited company
• To specialize in provision of housing finance to
individuals, co-operative societies & the corporate
sector
• First private sector retail housing finance company
• HDFC is listed on both BSE and NSE
• Market capitalisation (June 2002) - Rs. 79 billion (US $
1.6 bn)
June 17, 2011

9. HDFC’s Strengths - Home Loans
• Low average loan to value ratio
• Debt averse nature of borrowers
• Steady level of prepayments
• Growth in urban market / salaried class
• Quality of underwriting
• Geographically dispersed
June 17, 2011

10. Deposits
• Major source of funding (45%)
• Increase in deposit base from:
– Rs. 14.58 billion in FY94 to Rs. 84.91 billion in FY02
• Net increase in FY02 of Rs. 12.41 billion
• Retail deposits constitute 82% of total deposits
• Over 52,000 Deposit Agents & over 1.3 million Depositors
• Average term at origination - 4 years
• ‘AAA’ rated by CRISIL & ICRA for eight consecutive years
• Gross mobilisation of retail deposits
– FY03 - Rs 91.22 bn ; FY02 - Rs. 32.21 bn; FY01 - Rs. 27.17 bn
June 17, 2011

11. Corporate Strengths
• Strong Brand
• Customer base of over 2 million
• Stable and experienced management
• High service standards
• High quality loan portfolio
• Provision for contingencies
• Constant technological upgradation of systems
• One of the best capital adequacy ratio
June 17, 2011

12. Integrated Financial Services
SECURITISATION
Future Activities
DISTRIBUTION HDFC CHUBB
GENERAL INSURANCE
CO. LTD.

13. Awards & Accolades
India’s best managed company by Asiamoney magazine - 1995 and 1996
Most competitive Indian company by Euromoney - 1997
One of the 5 best Indian Boards by Business Today -1997
Best presented accounts 1994-95 and 1996-97 (3rd place) - in the SAARC region by the
South Asian Federation of Accounts in the financial sector category
Rated as one of the best companies in India for strategy & management and investor
relations by Asiamoney - 1998
Excellence in service industry by the Indian Institute of Marketing Management & Top
Management Club (Pune) -1998
Shield for the best presented accounts for banks and financial institutions - over 11 times (8
years in a row)
1999 IMC Ramakrishna Bajaj National Quality Award in the service category
CII-EXIM Bank Comendation Certificate for commitment to Total Quality Management - 2000
Asiamoney declared HDFC as the second best managed company in India - 2001
Euromoney identified HDFC as one of Asia’s top 10 best managed companies in the
finance sector - 2001
Rated as the Best Non-Banking Financial Company in Asia by Institutional Investor
Research Group - 2002
June 17, 2011

14. The Standard Life Insurance
Assurance Company

15. Background
• Founded in 1825
• Mutual Life Insurance Company since 1925
• Largest mutual life insurance company in Europe
• Assets under management over Rs 5,81,000 crores (£
83.2 bn)
June 17, 2011

16. Head Office - Edinburgh, Scotland (UK)
Presence
United Kingdom: 31 branches
Canada 11 "
Ireland 7 "
Germany 1 "
Austria 1 sales office
Spain 31 branches
Hong Kong 1 representative office
China 2 representative office
June 17, 2011

17. Financial Strength
• Total assets under management : Rs. 5,81,000
Crores
• New premium income 2001 :Rs. 58,000 Crores
• AA2 rated by Standard & Poor’s and Moody’s
June 17, 2011

18. Unrivaled Reputation For Quality
Year Award
• 2002 Company of the Year
• 2001 Best Personal Pension Provider
• 2000 Company of the Year
• 1999 Company of the Decade
• 1996-99 Company of the year
• 1995 4 star service award
• 1992-94 Overall best company
• 1991 3 star service award
• 1990 Best mortgage services
June 17, 2011

19. Experience In The Indian Market
• First market entry - 1847
• Innovative products & processes
• Last claim settled in 1997
June 17, 2011

20. Launched on 1st January 1998
Savings balances of £ 4.4 billion
Mortgage lending above £ 6 billion
UK’s leading private medical insurers since 1988 Assets under management £ 76 billion
Fourth in the private medical insurers market 5 million retail and institutional clients
Best Individual PMI provider for the year Global coverage of investment instruments and markets
June 17, 2011

21. What is Insurance ?
• It is a system by which the losses suffered by a few are
spread over many, exposed to similar risks.
• Insurance is a protection against financial loss arising on
the happening of an unexpected event.
• It is essential that :
– The calamity is either natural or unexpected
– The insured person does not gain out of this
arrangement
June 17, 2011

22. Life Insurance
• Gamut • Scope
– Individual – Pure - Term
– Group Insurance
– Salary Savings – Savings –
Endowment, Money
Back Policies
– Investment - Single
Premium Policies
– Income / Pension -
June 17, 2011 Annuities

23. Benefits of Insurance
Safeguards oneself and one's family for future
requirements.
Peace of mind-in case of financial loss.
Encourage saving.
Tax rebate.
Protection from the claim made by creditors.
Security against personal loan, housing loan or other
types of loan.
Provide a protection cover to industries, agriculture,
women and child.
June 17, 2011

24. Life Insurance Milestones
• 1818 - Oriental Insurance Company set up in Calcutta
• 1912 - The Indian Life Assurance Companies Act enacted
- first statute
• 1928 - The Indian Insurance Companies Act enacted to e
businesses.
• 1938 - Passing of the Insurance Act
• 1956 - Nationalisation of life insurance companies and
• 1956-1999 - Monopoly of LIC for nearly 44 years
• 1999 - Privatisation initiated
June 17, 2011

25. Privatisation - Objectives
• Broad
– Increased coverage of the population
• Specific
– Customer has a wider choice & range of products
– Service standards to customer
• Economic
– Savings mobilisation
June 17, 2011

26. Today
• 21 Life insurance business companies
• Multiple players, products
• Increased awareness
• Flexible products
June 17, 2011

27. Indian Investor Preferences
Source: SEBI-NCAER Survey of Indian Investors, June 2000
• Insurance is a popular avenue in rural & urban areas
June 17, 2011

28. Talking about potential ...
Only ONE out of FIVE insurable population in India
have insurance coverage
In terms of insurance premium per capita and
premium per GDP, India ranks as one of the lowest in
the world.
Life Insurance premium constitutes only 9% of
domestic savings.
By 2010, hundred million elderly look to planning for
old age pension and annuities.
More than 325 million labor forces have no social
security.
June 17, 2011

29. CAREER
HDFC SLIC

30. Career Growth-HDFC LIFE
• ABHIMAAN
Financial Consultant to Sales Manager
Goal sheet 3lac
On completion of Goal sheet FC becomes
eligible for assessment for Sales Manager
June 17, 2011

31. Career Growth -HDFCLIFE
• Sales Manager to Business Development
Manager (BDM)
Goal Sheet 12 lac
• BDM to Assistant Sales Manager
Goal Sheet 19 Lac (27 lac 150% of goal
sheet)
June 17, 2011

32. Career Growth – HDFC LIFE
• ASM to Branch Manager
Goal Sheet 27 lac
Becomes eligible for assessment for Branch
Manager
June 17, 2011

33. Career Growth-HDFC LIFE
• Branch Manager to Territory Manager
• Territory Manager to Regional Manager
• Regional Manager to Zonal Manager
June 17, 2011

34. June 17, 2011

35. June 17, 2011

36. June 17, 2011

37. CHANNEL
DEVELOPMENT
Project Trainee /
Management Trainee
Programme

38. The Process
• Channel Development to select Project / Management Trainees
from Business schools or referred by SM’s
• CD team then to give basic training/handholding to the trainees
on recruitment and give each trainee a weekly target
• The trainees will pitch an opportunity for a ‘Business Partner’
– The TG
• Age – 30+, men / women, at least 12th pass, salaried,
self employed, housewives, professionals
– The Pitch
• Work for just 5 hours a week and earn more than
Rs. 20,000/- per month
• Zero Investment
• World Class Training
• Part time / full time option
June 17, 2011

39. The Approach
• Trainees to first leverage their natural market –
immediate contacts: friends/relatives/neighbors
– Each trainee to list down names of at least 50 people or
more, who they can approach directly
– Each trainee to service their respective list
– CD team to support the Project trainees by giving them leads
so generated from on ground contact program activities.
CD Team to also support them with Sales tools such as presentation,
Audio visual etc made for different TG to help them to achieve
their target
June 17, 2011

40. The Control
• SM/RM/ARMs to monitor daily progress of Trainees
– Weekly status report to be submitted by SM to the CD team
– Trainees to submit filled-up FC application forms
• FC application forms to be validated by SM/RM/ARMs
• Recruitment Log-in Day
– Trainees to submit validated application forms every Friday
– Candidate ids of FC’s to be captured
June 17, 2011

41. Incentives
Rules
• All Summer trainees will work for atleast 60 days
• All Summer Trainees to be Finalised by CD Team of all
Summer Trainee recruited by CD or Sales team
• They will compulsory have to undergo one day training (To
be conducted by CD Team in presence of the respective
SM's)
• All Incentive to be paid only after proper documentation
received of the FC so recruited and completed 50 hrs IRDA
Training.
• Certification of Summer Trainees to be done by CD-Team
only after the project period
• Summer trainees will not be paid any allowances.
June 17, 2011

42. SUMMER TRAINEES
PT Payout Structure for the period April 2011 to Mar’12
A> Licensing Payout Slabs
Licensing Nos (From Recruitment done during
Payout per
applicable period )Cumulative count for Financial
Tier / Club license (Rs)
Year Apr2011 to Mar-2012
Bronze 1-5 1000
Silver 6-15 1300
Gold 16-25 1500
Gold Plus 26-35 1750
Platium 36-45 2250
Platium
46& Above 3000
Plus
June 17, 2011

43. June 17, 2011