CHAPTER – 1

PROFILE OF THE COMPANY

1.1 IDBI Federal Life Insurance Co Ltd.

IDBI Federal Life Insurance Co. Ltd. is a joint venture between three financial companies

Development and Commercial Bank, IDBI Bank, India‟s private sector Bank, Federal

Bank and European insurer Ageas (formerly Fortis). In this venture, IDBI Bank owns

48% equity while Federal Bank and Ageas own 26% equity each. The Headquarter is

located in Mumbai, India. IDBI Federal started its operations in March 2008 and is

amongst the most successful start-ups in the Indian Life Insurance market.

Name of the Firm IDBI Federal Life Insurance Co. Ltd.

Industry Life Insurance

Address IDBI Federal Life Insurance Co Ltd

903,9th Floor, Aggarwal Corporate Heights,
Plot no.- A-7, District Centre ,
Netaji subash Place,
New Delhi-110034, India
Telephone 1800 22 1120 (Toll Free)

Email support@idbifederal.com

Website http://www.idbifederal.com

Type National, Joint Venture

Registered Address IDBI Federal Life Insurance Co Ltd.

Trade View Oasis Complex, Kamala City,
P.B Marg Lowe Parel (West),
Mumbai-400013,India

1
Key People R.K Bansal (Chairman) , G V Nageswara
Rao, (MD & CEO)

Table No-1.1: Profile of IDBI Federal Life Insurance Co. Ltd

1.2 Nature of the Organization

1.21 Industry Profile - Insurance and Banking

Wherever there is uncertainty there is risk. We do not have any control over uncertainties

which involves financial losses. The risks may be certain events like death, pension,

retirement or uncertain events like theft, fire, accident, etc. Insurance may be described as

a social device to reduce or eliminate risk of loss to life and property. Under the plan of

insurance, a large number of people associate themselves by sharing risks attached to

individuals. The risks, which can be insured against, include fire, the perils of sea, death

and accidents and burglary. Any risk contingent upon these may be insured against at a

premium commensurate with the risk involved. Thus collective bearing of risk is

insurance

Insurance and Banking is coexisting financial institution while complementing and

supplementing each other. The Insurance Regulatory and Development Authority Act,

1999 have created more opportunities for expansion of the markets. Industry serves the

society in a very effective manner.

Banking Institutions have got the opportunities to enter in insurance business while

insurance institutions have already under the autonomy of start banking business. Many

non-banking institutions have been opened, acquired funds and dissolved with public

2
money at their stakes. Since they were totally in the hands of private persons, the

Government control became ineffective. Banking institutions in India are mainly under

the control of Reserve Bank of India. People need insurance but they prefer investment

over risk coverage although latter is more important.

Indian mentality for insurance is very bleak people do not feel need of insurance although

they have dire-necessity for that. Insurance institutions in India have not considered

forced insurance. The voluntary-purchasing of insurance policies is rare phenomena.

They prefer to go to bank offices rather than going to insurance offices for getting risk

coverage. The insurance institutions procure the business through their agents who are

the main link between people and the company.

a) Brief History of Insurance

The business of insurance started with marine business. Traders, who used to gather in

the Lloyd‟s coffee house in London, agreed to share the losses to their goods while being

carried by ships. The losses used to occur because of pirates who robbed on the high seas

or because of bad weather spoiling the goods or sinking the ship. The first insurance

policy was issued in 1583 in England. In India insurance began in 1818 with life

insurance being transacted by an English company, the Oriental Life Insurance co. Ltd.

The first Indian insurance company was the Bombay Mutual Assurance Society Ltd,

formed in 1870. This was followed by the Bharat Insurance Co. in 1896 in Delhi, the

Empire of India in 1897 in Mumbai.

Later, the Hindustan Cooperative was formed in Calcutta, the United India in Madras, the

Bombay Life in Bombay, the National in Calcutta, the New India in Bombay, and the

3
Jupiter in Bombay and the Lakshmi in New Delhi. These were all Indian companies,

started as a result of the Swadeshi Movement in the early 1900‟s. By the year 1956, when

the life insurance business was nationalized and the Life Insurance Corporation of India

(LIC) was formed on 1st September 1956, there were 170 companies and 75 provident

fund societies transacting life insurance business in India. After the amendments to the

relevant laws in 1999, the L.I.C. did not have the exclusive privilege of doing life

insurance business in India. By 31.8.2007, sixteen new life insurers had been registered

and were transacting life insurance business in India.

b) Present Scenario of an Insurance Industry

The Government of India liberalized the insurance sector in March 2000 with the passage

of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry

restrictions for private players and allowing foreign players to enter the market with some

limits on direct foreign ownership. Under the current guidelines, there is a 26 percent

equity cap for foreign partners in an insurance company. There is a proposal to increase

this limit to 49 percent. The opening up of the sector is likely to lead to greater spread

and deepening of insurance in India and this may also include restructuring and

revitalizing of the public sector companies. In the private sector 12 life insurance and 8

general insurance companies have been registered.

c) Insurance Regulatory And Development Authority

Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in

April 2000 has fastidiously such to its schedule of framing regulations and registering the

4
private sector insurance companies. The other decision taken simultaneously to provide

the supporting systems to the insurance sector and in particular the life insurance

companies was the launch of the IRDA online service for issue and renewal of licenses to

agents.

1.22 IDBI Federal Life Insurance Co Ltd.

It is a joint-venture of IDBI Bank, India‟s premier development and commercial bank,

Federal Bank, one of India‟s leading private sector banks and Ageas, a multinational

insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity while

Federal Bank and Ageas own 26% equity each. It started in March 2008, in just five

months of inception; IDBI Federal became one of the fastest growing new insurance

companies to garner Rs.100 Crore in premiums. Through a continuous process of

innovation in product and service delivery IDBI Federal aims to deliver world-class

wealth management, protection and retirement solutions that provide value and

convenience to the Indian customer. The company offers its services through a vast

nationwide network of 2,186 partner bank branches of IDBI Bank and Federal Bank in

addition to a sizeable network of advisors and partners. As on 31stMarch 2013, the

company has issued over Rs.4.99 lakhs policies with a sum assured of over Rs.28,580

Crore.

5
 EQUITY

26%
48%
IDBI BANK
FEDERAL BANK
26% AGEAS

Figure No-1.1: Equity Share of IDBI, Federal and Ageas

a) About Their Heritage

i. IDBI Bank

IDBI Bank Ltd., since its inception, India‟s premier industrial development bank. It came

into being as on July 01, 1964 (under the Companies Act, 1956) to support India‟s

industrial backbone. Today, it is amongst India‟s foremost commercial banks, with a

wide range of innovative products and services, serving retail and corporate customers in

all corners of the country from 1082 branches and 1715 ATMs. The Bank offers its

customers an extensive range of diversified services including project financing, term

lending, working capital facilities, lease finance, venture capital, loan syndication,

corporate advisory services and legal and technical advisory services to its corporate

clients as well as mortgages and personal loans to its retail clients. As part of its

development activities, IDBI Bank has been instrumental in sponsoring the development

of key institutions involved in India‟s financial sector –National Stock Exchange of India

6
Limited (NSE) and National Securities Depository Ltd, Stock Holding Corporation of

India Ltd (SHCIL), Credit Analysis and Research Ltd (CARL).

ii. Federal Bank

Federal Bank is one of India‟s leading private sector banks, with a dominant presence in

the state of Kerala. It has a strong network of over 1104 branches and 1195 ATMs spread

across India. The bank provides over four million retail customers with a wide variety of

financial products. Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network. In addition to interconnected branches

and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking,

Tele Banking, Any Where Banking, debit cards, online bill payment and call centre

facilities to offer round the clock banking convenience to its customers. The Bank has

been a pioneer in providing innovative technological solutions to its customers and the

Bank has won several awards and recommendations.

iii. Ageas

Ageas is an international insurance group with a heritage spanning more than 180 years.

Ranked among the top 20 insurance companies in Europe, Ageas has chosen to

concentrate its business activities in Europe and Asia, which together make up the largest

share of the global insurance market. These are grouped around four segments: Belgium,

United Kingdom, Continental Europe and Asia and served through a combination of

wholly owned subsidiaries and partnerships with strong financial institutions and key

distributors around the world. Ageas operates successful partnerships in Belgium, UK,

Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and Thailand and has

7
subsidiaries in France, Hong Kong and UK. Ageas is the market leader in Belgium for

individual life and employee benefits, as well as a leading non-life player through AG

Insurance. In the UK, Ageas has a strong presence as the fourth largest player in private

car insurance and the over 50‟s market. Ageas employs more than 13,000 people and has

annual inflows of more than EUR 21 billion.

b) Milestones

2006 IDBI Bank, Federal Bank and Belgian-Dutch insurance major Fortis Insurance
International NV signed a MoU to start a life insurance company

2008 IDBI Fortis Life Insurance Co. Ltd., which started its operations in March 2008

2008 IDBI Federal becomes one of the fastest growing new life insurers to collect
premiums worth Rs.100 crores

2009 IDBI Fortis announces Rs.250crores capital infusion

2009 Nimbus ropes in IDBI Fortis as title sponsor of India–Sri Lanka series

2009 'IDBI Fortis' Boss-Ka-Boss receives PRCI Award

2009 IDBI Fortis receives bronze Dragon at PMAA 2009

8
 2010 IDBI Fortis now renamed as IDBI Federal Life Insurance Company

2011 IDBI Federal launches Retiresurance Guaranteed Pension Plan

2012 IDBI Federal makes its online debut

2013 IDBI Federal in association with Phoenix Foundation organizes a trek for the
physically challenged

2013 IDBI Federal breaks-even in Five years; posts maiden profit of Rs.9.24 crore

Table No-1.2: Milestones of IDBI Federal

1.3 Vision & Mission of IDBI Federal

1.31 Vision

“To be the leading provider of wealth management, protection and retirement solutions

that meets the needs of our customers and adds value to their lives”.

1.32 Mission

a) “To continually strive to enhance customer experience through innovative product

offerings, dedicated relationship management and superior service delivery while

striving to interact with our customers in the most convenient and cost effective

manner”.

b) “To be transparent in the way we deal with our customers and to act with integrity”.

c) “To invest in and build quality human capital in order to achieve our mission”.

9
1.33 Values

a) Transparency : “Crystal Clear communication to our partners and stakeholders”.

b) Value to Customers : “A product and service offering in which customers perceive

value”.

c) Rock Solid and Delivery on Promise : “This translates into being financially

strong, operationally robust and having clarity in claims”.

d) Customer-friendly : “Advice and support in working with customers and partners”.

e) Profit to Stakeholders: “Balance the interests of customers, partners, employees,

shareholders and the community at large”.

1.4 Products of IDBI Federal Life Insurance Co Ltd.

IDBI Federal is providing various insurance policies for the commonwealth of the people

and its customer in particular. The various insurance policies provided by the company

are:

a) Incomesurance

IDBI Federal Incomesurance Endowment and Money Back Plan is loaded with lots of

benefits which ensure that policyholder get Guaranteed Annual Payout along with

insurance protection which will help policyholder to reach their goals with full

confidence. Incomesurance Plan is very flexible and allows policyholder to customise

their Plan as per your individual and family‟s future requirements. Moreover it also

allows policyholder to choose Premium Payment Period, Payout Period, Payout Options

and more.

10
b) Wealthsurance

The Wealthsurance Milestone Plan is a unique Insured Wealth Plan designed to help

cross different milestones in one‟s life. It enables customers to save and build wealth

under the protection of insurance to meet their financial goals. The Wealthsurance

Milestone Plan offers a wide range of Investment options, Insurance options and

unmatched flexibility that allows customers to customize a plan suited to their needs.

This Plan comes with a wide range of 13 investment options and 7 insurance benefits - all

packaged with a low charge structure and unmatched flexibility.

c) Termsurance

IDBI Federal Termsurance Protection Plan (Termsurance) comes with three cover

options which policyholder can select on the basis their requirement. Termsurance is

designed with a host of benefits and options aimed at satisfying their every need. It not

only allows policyholder to customise their plan as per their individual and family‟s

needs, it also comes with a host of benefits like convenient insurance cover options,

flexible premium payment terms, choice of policy term and lots more flexible options.

d) Homesurance

IDBI Federal Homesurance Plan is a mortgage reducing term assurance plan – MRTA,

which offers protection to their home from their home loan. The Plan provides a cover

equal to the outstanding balance of their home loan against any unfortunate events that

may occur to policyholder. This plan gives people the option of a Single Premium.

11
e) Childsurance

Whether policyholder‟s child wants to be a doctor, an engineer, an MBA, a sportsman, a

performing artist, or dreams of being an entrepreneur, the IDBI Federal Childsurance

Dream builder Insurance Plan will keep you future-ready against both, changing dreams

and life‟s twists. It allows policyholder to create build and manage wealth by providing

several choices and great flexibility so that policyholder‟s plan meets their specific

needs. Childsurance allows policyholder to protect their child plan with triple insurance

benefits so that their wealth-building efforts remain unaffected by unforeseen events and

their child‟s future goals can be achieved without any hindrance.

f) Bondsurance

The IDBI Federal Bondsurance Advantage Plan is a single premium plan where

policyholder needs to make just a one-time investment. At the end of the chosen period,

policyholder will receive a guaranteed maturity amount. In case of death of the insured

person before the Maturity Date, a guaranteed Death Benefit will be paid.

g) Group Microsurance

IDBI Federal Group Microsurance Plan provides affordable life insurance cover to

groups. This plan is extremely useful to Micro Finance Institutions, Self Help Groups and

NGOs to insure the lives of their group members and thus provide security to the group

members‟ families. The plan can also be used for providing loan protection to the group

members‟ families.

h) Retiresurance

12
A retirement plan designed to accumulate money to aid a comfortable retirement. The

plan provides a guaranteed return on investment and grows steadily over the years to

ensure that policyholder have a corpus on their retirement date, guaranteed.

i) Loansurance

Loansurance is a cost-effective way to ensure that the outstanding debt is settled in the

unfortunate event of death of the insured member. This term assurance plan provides

cover to a policyholder directly liable for loan repayment (and the partners, in case of a

partnership), as per the benefit schedule.

1.5 Size of the Organization

In terms of man power and turnover -

Year of Establishment 2008

Nature of Business Life Insurance

Number of Employees 10,000 employees (Approx in 2012-13)

Turnover Rs. 500 crore (Approx in 2012-13)

Table No-1.3: Size of the Organization

13
 IDBI Federal Life Insurance currently has over 10,000 on roll employees all over the

country and over 2,00,000 licensed agents working towards the success. The company

has reported a maiden profit of Rs 9.24 crore in 2012-13, thus making it one of the fastest

to break-even in the Life Insurance industry. In an industry challenged by falling

margins, shrinking new business volumes, high cost ratios and low profitability, this is a

significant achievement.

1.6 Organization Structure of the IDBI Federal

IDBI Federal has line structure as its Organizational structure. Authority flows from
the top level to lower levels through various managerial positions. There is vertical
flow of authority and responsibility. Every person is accountable to his immediate
boss. There is limit on subordinates under one manager. A manager has control only
over the subordinates of his department.

Chairman

CEO/CFO/COO

HOD

Zonal Manager

Regional Manager

Branch Manager

Senior Manager

Relationship Manager
14
 Figure No-1.2: Organization Structure of the IDBI Federal

1.7 Market Share & Position of the Company

1.71 Market Share of IDBI Federal

MARKET SHARE FOR FY'12~FY'13

0.53 0.41 0.41
(IN %)
0.58
0.42 0.39
0.99
0.33 Life Insurance Corporation of India
0.99
ICICI Prudential Life Insurance Co. Ltd
1.05 1.02 0.20 0.09
HDFC Standard Life Insurance Co. Ltd
1.27
1.27 SBI Life Insurance Co. Ltd
2.30 Max Life Insurance Co. Ltd
Bajaj Allianz Life Insurance Co Ltd
2.46
Birla Sun life Insurance Co. Ltd
2.73
Reliance Life Insurance Co. Ltd
3.14
Tata AIG Life Insurance Co. Ltd
ING Vysya Life Insurance Co. Ltd
4.40
MetLife Life Insurance Co Ltd
Aviva Life Insurance Co Ltd
5.66 Canara HSBC OBC Life Insurance Co Ltd
Kotak Life Insurance Co Ltd
63.47 Star Union Dai-Ichi Life Insurance Co. Ltd
5.88
Future Generali Life Insurance Co Ltd

IDBI Federal Life Insurance Co. Ltd

India First Life Insurance Co. Ltd
Bharti Axa Life Insurance Co. Ltd
Aegon Religare Life Insurance Co. Ltd
Shriram Life Insurance Co. Ltd
DLF Pramerica Life Insurance Co. Ltd

Figure No-1.3: Market Share of All Life Insurance Companies

IDBI Federal Life Insurance has achieved break even in 2012-13, its fifth year of

operations and its market share is 0.42% in the industry for the year ended march‟13.

15
IDBI Federal‟s New Business Premium grows by 23%, compared to industry‟s negative

growth of -15%. Achieves 44% increase in the number of new business policies sold.

1.72 Market Position of IDBI Federal

Market Position Life Insurance Companies

1 Life Insurance Corporation Of India
2 ICICI Prudential Life Insurance Co. Ltd
3 HDFC Standard Life Insurance Co. Ltd
4 SBI Life Insurance Co. Ltd
5 Max Life Insurance Co. Ltd
6 Bajaj Allianz Life Insurance Co Ltd
7 Birla Sun life Insurance Co.Ltd
8 Reliance Life Insurance Co. Ltd
9 Tata AIG Life Insurance Co. Ltd
10 ING Vysya Life Insurance Co. Ltd
11 MetLife Life Insurance Co Ltd
12 Aviva Life Insurance Co Ltd
13 Canara HSBC OBC Life Insurance Co Ltd
14 Kotak Life Insurance Co Ltd
15 Star Union Dai-Ichi Life Insurance Co. Ltd
16 Future Generali Life Insurance Co Ltd
17 IDBI Federal Life Insurance Co. Ltd
18 India First Life Insurance Co. Ltd
19 Bharti Axa Life Insurance Co. Ltd
20 Aegon Religare Life Insurance Co. Ltd

Table No-1.4: Market Position of All Life Insurance Companies

For the calendar year 2012, IDBI Federal Ranked 17th and its Equity Fund ranked No. 1

among 72 ULIP funds bearing testimony to the company‟s fund management expertise.

IDBI Federal Life Insurance has achieved break even in 2012-13, its fifth year of

operations. The company has reported a maiden profit of Rs 9.24 crore in 2012-13, thus

making it one of the fastest to break-even in the Life Insurance industry. One of the major

16
reasons behind the growth of IDBI Federal Life Insurance has been its employees. In an

industry challenged by falling margins, shrinking new business volumes, high cost ratios

and low profitability, this is a significant achievement.

1.8 Leadership of IDBI Federal and their Levels

Regional Manager
Mr. Lokesh Sapra

Branch Head
Mr. Manas Das

Sr. Manager
Mr. Ezad Ahmed

Figure No-1.4: Current Leadership

During the tenure of the training researcher interacted with various people. Among them

few guided him and helped him in better understanding of the functioning of different

departments of the organization. Mr. Lokesh Sapra, Regional Manager (sales) guided

the researcher with the functioning of the branch and how employees coordinate and are

accolade based on their performances.

17
Mr. Manas Das (Branch Head) and Mr. Ezad Ahmed (Sr. Manager) helped

researcher throughout by their guidance and support, during researcher‟s tenure with

IDBI Federal.

1.9 Sources of Data Collection

Data Collection is an important aspect of any type of research study. It is a term used to

describe a process of preparing and collecting data from all sources and observation. Data

was collected from various primary and secondary sources. These two methods of data

collection are discussed below:

a) Primary Data for this project has been collected through unstructured interview

conducted with management trainee from head office and various employees who

provided valuable information regarding the organization and its working.

b) Secondary Data are those which have already been collected by some other person

for their purpose and published. Secondary data are usually in the shape of finished

products.

Two types of secondary data were collected for the project.

i. Internal Data : It was generated from company‟s brochures, pamphlets, manuals

and annual report have given valuable information for the present study.

ii. External Data : It was generated from research articles, newspaper articles, books

and internet.

18
 CHAPTER – 2
SWOT ANALYSIS OF THE COMPANY

SWOT analysis is a structured planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a business venture. SWOT Analysis

provide information that helps in synchronizing the firm‟s resources and capabilities with

the competitive environment in which the firm operates.

STRENTHS WEAKNESS

SKILLED MANPOWER WITH DEPTH KNOWLEDGE.

CUSTOMER SERVICE STAFF NEED TRAINING.
INNOVATIVE PRODUCTS TO CATER NEEDS
OF CUSTOMER. POOR RETENTION PERCENTAGE OF TIED
UP AGENTS.
DOMESTIC IMAGE OF IDBI SUPPORTED BY FEDERAL
IMAGE. LOW CUSTOMER CONFIDENCE ON THE PRIVATE
PLAYERS.
STRONG CAPITAL AND SURPLUS RESERVE.
LOW MANAGEMENT EXPENSES AND
ADMINISTRATIVE COSTS.

SWOT
OPPORTUNITIES THREATS
DEMAND FOR INNOVATIVE PRODUCTS OFFERING A THER PRIVATE INSURANCE COMPANIES ALSO
RIGHT MIX OF FLEXIBILITY/ RISK/ RETURN. VYING FOR THE SAME UNINSURED POPULATION.

INTERNATIONAL COMPANIES WILL HELP IN LEGISLATION COULD IMPACT AND GREAT

BUILDING WORLD CLASS EXPERTISE IN
LOCAL MARKET BY INTRODUCING THE BEST
GLOBAL PRACTICES.
THERE WILL BE INFLOW OF MANAGERIAL
AND FINANCIAL EXPERTISE FROM THE
WORLD’S LEADING INSURANCE MARKETS
RISK INVOLVED.
VERY HIGH COMPETITION PREVAILING IN
THE INDUSTRY.
OTHER PRIVATE INSURANCE COMPANIES ALSO
VYING FOR THE SAME UNINSURED POPULATION.

Figure No-2.1: SWOT Analysis of IDBI Federal

19
2.1 Strengths and Weaknesses of the Company

2.11 Strengths

a) Large pool of technically skilled manpower with in depth knowledge and

understanding of the market.

b) The company also provides innovative products to cater to different needs of

different customers.

c) Dedicated workforce aiming at making a long-term career in the field.

d) Low management expenses and administrative costs.

e) IDBI Federal Life Insurance Company leverages on the strong distribution network

of its promoters and advisors.

f) Finance department helps the organization to keep a track on the administration cost

and all the other expenses

2.12 Weaknesses

a) Customer service staff needs training due to changing human behavior.

b) Product awareness is low in the market.

c) Low customer confidence on the private players.

d) Centralization in the organization, management decisions are taken by top authority

which leads to significant delays in decisions.

e) A centralized administrative system gives way to inequity through the instigation of

excessive regulations or strict conformity to official norms which is redundant or

bureaucratic and that hinders decision-making and delays work.

20
2.2 Opportunities and Threats of the Company

2.21 Opportunities

a) Insurable population : According to IRDA only 10% of the population is insured

which represent around 30% of the insurable population. This suggests more than

300m people, with the potential to buy insurance, remain uninsured.

b) International companies will help in building world class expertise in local market by

introducing the best global practice.

c) Fast-track career development opportunities on an industry-wide basis.

d) An applied research centre to create opportunities for developing techniques to

provide added-value services.

e) There will be inflow of managerial and financial expertise from the world‟s leading

insurance markets. Further the burden of educating consumers will also be shared

among many players.

2.22 Threats

a) Big public sector insurance companies like Life Insurance Corporation (LIC) of

India, National Insurance Company Limited, New India Assurance Company

Limited and United India Insurance Company Limited. People trust and go to them

more.

b) Legislation could impact and Great risk involved.

c) Very high competition prevailing in the industry.

d) Lack of infrastructure in rural areas could constrain investment

e) People prefer short term investments rather than insurance.

21
2.3 USP’S of IDBI Federal

IDBI Federal Life Insurance derives its maximum business or profits through Sales and

Marketing department, thus the key USP is the Marketing activity and rest all are the

practices adopted by the company which is explained below :

2.31 Sales and Marketing

a) Marketing at IDBI Federal is considered to be the backbone since different channels

of marketing which are acting as individual entities in the organization with the aim

of adding value to the organization contribute to the USP.

b) Thus, channels like direct marketing, agency selling and bancassurance uses the

USP‟S like advertisements, promotional events, internet medium etc to promote the

brand & in bancassurance, the USP is that bank uses the databases of IDBI and

Federal Bank‟s customer and sells its product to them via. Telecommunication and

finally, one to one meeting with the customers.

c) IDBI Federal Life Insurance Company leverages on the strong distribution network of

its promoters and advisors.

d) Operates through 1082 branches of IDBI Bank & 1104 branches of Federal bank.

Other than the marketing department, there are other departments which work hand in

hand with marketing department and other departments of the organization. A brief of

practices followed in these departments has been explained as under :

22
2.32 Finance

a) Finance department helps the organization to keep a track on the administration cost

and all the other expenses. It helps in cost-cutting thus lowering the cost.

b) Finance department analysis and invests in risk free, stable, does secure investments

such as in incomesurance product, it invests in government bonds which is risk free

for a customer.

2.33 Human Resource

HR includes the following practices:-

a) E-Recruitment- IDBI Federal follow online recruitments i.e. practice of using Web-

based technology resources for tasks involved with finding, attracting, assessing,

interviewing and hiring new personnel.

b) The purpose of E-recruitment is to make the processes involved more efficient and

effective, as well as less expensive.

c) Different programmes like Reward & Recognition to motivate as well as to retain the

employees.

2.34 Operations

a) Operations act as a link between different departments to ensure smooth functioning

in the organizations.

b) Thus, the main USP of operations is to timely interact among different departments,

coordination and meeting the deadlines through internet, telecommunication and

other communication channels like video conferences etc.

23
2.4 Deviations in Practices Followed by the IDBI Federal

The deviations measured during training with IDBI Federal Life Insurance Co. Ltd in its

practices in comparison with the theoretical concept are as under :

2.41 Training

The training as given to the service advisors or the employees lacked the following-

a) Quality: The quality of training lacked the skills, knowledge and communication

skills that a trainer should possess. There should be a quality trainer which should

possess good skills and in depth knowledge to impart knowledge and information to

employees. In the company, Managers itself to some level are dealing or working as

trainers.

b) In-Depth Knowledge: The managers working as part time trainers, lack in-depth

knowledge about the products & thus there is lack of understanding of the product to

the employees.

c) Training Rooms: The training rooms are compact and not much space is available

for more than 10 persons to accommodate. It gets uneasy at times and noisy too.

2.42 Employee Charter

There is no immediate employee charter to deal with employees problems. The place

lacked proper training rooms, washrooms, lunch rooms etc. Everything is governed by

head office of the company which gets difficult for the employees as they have to wait for

long days to get solution to their problems.

24
2.43 Inadequate Manpower

Due to small structure of employees in the agency, the work pressure is more which

decreases the productivity of the firm. Example- In case of absence of a trainer from the

organization, there is no one to complete the tasks in her/his absence, as a result of which

the work suffers and gets delayed.

2.44 Stock Management

There are various methods to manage the inventory in an organization for example, re-

order level etc is not adhered for forms, brochures, pamphlets etc. The main reason for

this is, there is no proper tracking on the inventory of brochures, forms, pamphlets etc on

regular basis and thus, re-order is only given, once there quantity is finished and an

application is mail to the head office, Mumbai regarding the shortage of the inventory,

later order gets dispatch from the head office which involves a long procedure which

leads to delay in the operation of the company. Thus, customers have to wait to get the

same.

25
 CHAPTER – 3
DATA COLLECTION AND DATA PRESENTATION

Data has been collected from different functional areas of IDBI Federal Life Insurance

Co. Ltd like Marketing, Human Resource, Finance, I.T etc and each department have its

own role and responsibility which aims to achieve the organisational objectives. The data

has been presented about the equity growth fund of IDBI Federal Life Insurance Co. Ltd

i.e. its portfolio for the month of June‟13 And July‟13.

A. Data Collection

3.1 Marketing

The Marketing function at IDBI Federal Life Insurance covers an array of activities -

brand and media management, channel support, direct marketing and corporate

communications. The company focuses on the formulation of an ideal mix for their

organization. The marketing mix is the combination of different marketing activities that

helps in meeting the needs of the target market. IDBI Federal Life Insurance Co Ltd deals

in services for which 5P‟s of marketing has been focused on i.e. the product, its price,

place, promotion and people in the following manner:

3.11 Product Planning Process

IDBI Federal is an insurance company which sells services and therefore services are

their product. When a person buys an insurance policy from the company, customer not

only buys a policy, but along with it the assistance and advice of the agent, the prestige of

the insurance company and the facilities of claims and compensation. It is natural that the

26
users expect a reasonable return for their investment and the insurance companies want to

maximize their profitability. Hence, while deciding the product portfolio or the product-

mix, the services or the schemes should be motivational. The Role of the Product

management department is to develop product and market them. The department uses

different strategies to maximize sales revenues, market share, and profit margin. The

product department deals in following activities:

a) Develop new product ideas and move them through the Product Development Life

Cycle (PDLC) keeping product sponsors updated.

b) Lead research and analysis of new product ideas and interprets results. Works with

management to evaluate the cost/benefit of market opportunities and new initiatives.

c) Serve as a key contact for developing and implementing new products or

administrative practices specific to the product line.

d) Provide direction and strategic perspective on product initiatives.

e) Monitor competition to ensure viability of existing product line.

f) Provide prioritization on product related issues to internal areas to include

technology, legal and state-filing units.

g) Act as a product line expert and maintain a thorough knowledge of company product

features and benefits as well as industry product trends.

h) Once the product has been analyzed from every perspective, then it is filed in

Insurance Regulatory and Development Authority (IRDA) i.e. is an autonomous apex

statutory body which regulates and develops the insurance industry in India.

i) After receiving approval from Insurance Regulatory and Development Authority

(IRDA), the product can be launch in the industry.

27
 IDBI Federal Life Insurance Co. Ltd provides many products which cater to the needs of

the Indian customers. IDBI Federal has 11 innovative products and each one of them is

crafted considering the needs of people. `Wealthsurance Milestone Plan` product is a

unique combination that aims to help people reach their important goals in life with full

confidence. It offers a wide range of investment options, insurance options and

unmatched flexibility that allows customers to customize a plan suited to their needs.

IDBI Federal‟s products are:

i. Wealthsurance

ii. Incomesurance

iii. Bondsurance

iv. Termsurance

v. Healthsurance

vi. Retiresurance

vii. Group Microsurance

viii. Homesurance

ix. Loansurance

x. Childsurance

3.12 Pricing Strategies

The pricing in insurance is in the form of premium rates. Premiums are the amount of

money the insurer needs to collect from the policyholder in order to cover the expected

losses, expenses, and a provision for profit. Every product has its own premium rate

according to the customer requirements. The pricing of the products are decided

28
according to the need and standard of the customers and the products requirements. With

a view of influencing the target market or prospects the formulation of pricing strategy

becomes significant. The strategies may be high or low pricing keeping in view the level

or standard of customers or the policyholders.

An actuary is a business professional who deals with the financial impact of risk and

uncertainty. Actuaries provide expert assessments of financial security systems, with a

focus on their complexity, their mathematics, and their mechanisms. Actuary decides the

premiums and profitability.

The three main factors are used by the company for determining the premium rates under

a life insurance plan are mortality, expense and interest. The premium rates are revised if

there are any significant changes in any of these factors.

a) Mortality (deaths in a particular area): When deciding upon the pricing strategy the

average rate of mortality is one of the main considerations.

b) Expenses: The cost of processing, commission to agents, reinsurance companies as

well as registration are all incorporated into the cost of installments and premium sum

and forms the integral part of the pricing strategy.

c) Interest: The rate of interest is one of the major factors which determine people‟s

willingness to invest in insurance. People would not be willing to put their funds to

invest in insurance business if the interest rates provided by the banks or other

financial instruments are much greater than the perceived returns from the insurance

premiums.

There are 5 main product of IDBI Federal Life Co Ltd which has different premium rate

which are decided by the actuary department as follows:

29
 i. Wealthsurance: In Wealthsurance plan the minimum premium rate is 10,000 p.a. for

maximum 10 year which provide the tax benefit under section 80(c) and give the sum

assured benefit of 1.25 times of 1st premium amount.

ii. Incomesurance: The Incomesurance product give the tax benefit under section 80(c)

and 10(10) d both .The minimum premium rate of this product is 12,000 p.a. for

maximum 15 years.

iii. Bondsurance: The Bondsurance plan is basically a guaranteed return plan at a fixed

discount rate benefit on maturity of plan .The minimum premium rate is 20,000 p.a.

for maximum 10 year.

iv. Termsurance: The Termsurance plan cover all age of people with minimum premium

amount of 20,000 p.a. with different tax benefit.

v. Homesurance: In Homesurance plan the premium rate is 2/3 of the loan amount

which is paid for maximum 15 year which provide the tax benefit under section

10(10)d.

3.13 Place

The place is the major part of 5‟Ps of marketing mix in which the different place are

found by the agent of the company for selling its products. The agents always target those

areas from where they can gain more business and will benefit the company. IDBI

Federal Life targets the different places for different products. If the company wants to

sell the incomsurance product then they cover the housing societies, schools, Industrial

areas from where they can earn maximum premium for the product. The major places

which are targeted by the company are corporate areas, societies, natural market like their

own family and references.

30
3.14 People

Prospecting is very important part of selling of insurance product for the company.

During prospecting of people the need and want of the people is to be considered. The

prospecting are only done for those people who satisfied the need and want of the

products like young people want high rate of return on maturity of product as a retirement

plan. For the selling of insurance product IDBI Federal focuses on young people, old

people, married couples, defense officers, businessmen, and women entrepreneurs‟. For

the selling of product company appoint thousand of agents which create a bridge between

the customers and company. IDBI Federal believes, India being a young country with

over 50% being the youth, it is a large segment. Life insurance is an important form of

long term contractual saving that helps people save for the long term for the unexpected

occurrences they may not foresee today.

3.15 Promotional Strategies

Promotion is the method used by the company to spread the word of their product and

service to the customers. Promotion is the best way of marketing the product and aware

the customers about the benefits of product. Following are some of the ways by which

IDBI Federal life Insurance Co. Ltd promotes its products/services and creates awareness

in the market :

a) Distributors : A strong network of distributors and parent advisors also helps a lot in

promoting products/services of IDBI Federal by word of mouth. A Viral campaign is

also run on the Internet by wherein flash videos of working of products are explained

in a very humorous manner.

31
b) Events : There are various events are organize by the company for the promotion of

their company like health camp in societies, competitions in schools, sponsor the

seminars etc.

c) Print Media : IDBI Federal has attained notice through many articles and

advertisements published in various national and regional newspapers in India like

the Economic Times, Times of India etc.

d) Hoardings : IDBI Federal has also tried making their potential customer aware of

their products and policies through billboards and hoardings by positioning them in

strategic locations. As of now, the total number of hoardings which are put up in

Hyderabad region counts to a good 17 number. The total expenses spent by the

company for this promotional activity is Rs.4 lakhs.

e) Online : Social network sites and emails are used has online promotional tools.

f) Commercial Ads : In Delhi metro, the commercial advertisement is done for its

product and giving the information about its product benefits by using AIDA method

(attention, interest, desire and actions). IDBI Federal Life Insurance Co. Ltd brought

out many interesting and humorous ads of their products such as Wealthsurance,

Incomesurance, Retiresurance etc which has got very good response from customers.

g) Magazines : There is no specific magazine in which advertisement is given. It‟s

given in magazines depending upon their sales and reputed magazines like Outlook,

Money etc. The advertisement is given every month at least once in any magazine.

h) Advertisement Strategy : Some insurance players work in the warm, emotional area,

there are some who play in the realistic, borrowed from life insight area, and some

who play more on doing stuff which brings a smile and breaks clutter. So different

32
 players have different objectives. In this case, IDBI Federal knew they wanted to

dramatize the product benefit, give enough importance to the nomenclature, and do it

in a clutter breaking way. IDBI Federal strategy has always been to focus on their

products. They believe their products are differentiator and they add tremendous

value to the consumer.

i) Pamphlets : Pamphlets are distributed across India at least 5 times in a month

without any cost. It‟s done to create maximum awareness about the products/services.

3.2 Human Resource Management

The role of the Human Resource Department is to deal with management of people

within an organization. The people strategy of IDBI Federal Life Insurance is "To build a

committed team with a culture of innovation, learning and growth”. The Human

Resource Function at IDBI Federal Life Insurance drives the people strategy of the

business. With its initial focus on operational excellence to deliver benefits and services

to staff members.

The Department is responsible for hiring members of staff and ensuring that they perform

to expectation. For hiring the employees the HR Department uses different methods of

recruitment like direct method and indirect method. In direct method the employees are

recruiting from education and professional institutions by the company and the indirect

method is used to recruit the white collar employees through newspaper advertisement,

journals, technical magazine and brochures.

a) The Department is responsible for hiring members of staff and ensuring that they

perform to expectation.

33
b) They plan, develop, organize, implement, direct and evaluate the organization's

human resource function and performance.

c) The HR department organize the training session for the employees to explain them

about the product features, benefits, how to approach customers etc.

d) Translate the strategic and tactical business plans into HR strategic and operat1ional

plans.

e) Evaluate and advise on the impact of long range planning of new programs/strategies

and regulatory action as those items impact the attraction, motivation, development

and retention of the people resources of the corporation.

f) They aims to provide a conductive work environment to the employees and nurturing

them to make them feel committed and psychologically attached to the organization.

g) The HR department makes retention strategies to retain the employees of the

organization.

h) They motivate the employees to work effectively and efficiently.

i) The HR department has the responsibility of maintaining the payroll of the

employees.

j) The HR department also looks after the development function which has three

dimensions namely - employee training, management development, and career

development.

3.21 Recruitment Process of Financial Advisor in IDBI Federal Life Insurance :

a) Human Resource Planning : The Company follows the HR planning to get the right

number of people with the right skills, experiences and competencies for the right job

at the right time at the right cost. While formulating the recruitment plan, a proper

34
 meeting is held between CEO, Branch manager, senior manager and head of

department regarding how to recruit the employees, what should be the criteria for

recruiting the employees and how many candidates should be appointed. Every year

1000 employees are appointed as an agent from different education institution and

agency companies.

The criteria which is decided by the company for the recruitment of the candidates :

i. He should be at least 12th passed.

ii. He should complete IRDA training.

iii. He should be above 18 years of age.

b) Sources of Recruitment

In recruitment process the company selects 1000 agents in a year that has skills and

convincing ability. The recruitment is done by using direct source of recruitment for

which they directly approach the educational and professional institution.

The criteria which are following by the company for the recruitment of agents are:

i. He should be at least 12th passed

ii. He should complete IRDA training

iii. He should be above 18 years of age

There are some documents which are required during the recruitment

i. 8 photographs

ii. Age proof (passport, birth certificate, college leaving certificate)

iii. Address proof

iv. Education proof

v. Copy of pan card

35
c) Selection Process

The financial advisors are selected after clearing the IRDA exam. If the candidate gets 23

marks out of 50 marks then he/she becomes the financial advisor of the company. In

IRDA exam there are 50 questions of 1 mark each and there is no negative marking.

After clearing the IRDA exam, a training session is conducted for 5days in which they

train the agents i.e. how to pitch the customer, how to do prospecting etc.

d) Training Section

After selection of the employees, proper training is conducted for the new employees.

The duration of the training is 50 hrs in which knowledge is provided regarding

insurance sector, there rules and regulations. During the training session each and every

department‟s information is provided so that they are aware of each and every

department‟s functions. The method for the training used by the company is off job

training in which the classroom training and vestibule training is provided. In the

classroom training all theoretical knowledge is provided of insurance sector. It is also

used for orientation programmes. In the vestibule training they prepare a role play to

demonstrate how to pitch customer for selling product. The main aim of the training is

to help the employee regarding how they have to perform their job satisfactorily.

e) Performance Appraisal

In the performance appraisal the company focus on self appraisal of the employees

under 360-degree in which they check the employees performance according to their

business which is given by every employee in a month. Every employee is working for

36
 the rewards and recognition of their work, in IDBI Federal every year a reward and

recognition ceremony is conducted in which employees are praise by awards, cash price,

gift vouchers, hike in salary, certificates, trophies and some tours like Turkey, Hong

Kong etc. The company organizes family functions time to time which help in building

bond among employees. Thus, the working environment is very friendly and

comfortable for employees to work. This leads to a strong teamwork.

3.22 Retention Strategies

Some of the initiatives taken by the HR department to retain and motivate their

employees are explained below :

a) Innovative Employment Policies : IDBI Federal always endeavored to create

employment policies that are flexible to accommodate an employee‟s needs and special

circumstances. Its policies around sabbatical leaves, maternity leaves and part-time

employment are tailored to meet the specific needs of an employee.

b) Open Office Architecture : IDBI Federal has always encouraged an open office

architecture wherein people can interact and exchange ideas across teams. Moreover,

this ensures that the senior management is easily accessible to other employees and that

accessibility and interactive engagement is not compromised.

c) Afterhours : To make the working week a little less boring IDBI Federal launched

Afterhours to give employees more reasons to look forward to their weekend.

Afterhours are all about workshops (that have nothing to do with work) and interactive

sessions on fun & interesting topics.

37
d) Page-Turners : A central knowledge repository that houses books, journals, magazines,

white papers etc across insurance & other non/fictional reading areas. Going forward,

IDBI Federal plans to leverage the initiative to make it a melting pot of ideas and do

book reviews.

e) Celebration of Festivals : Festivals and other days of significance are celebrated with

great vigor and energy. Fun activities are designed for such days that facilitate bonding

amongst employees and help build cohesive teams.

3.3 Finance Department

The Finance department is responsible for all external reporting to IDBI Federal‟s

shareholders and regulators. The Finance department does the analysis of risk associated

with the investment to have higher profit which ultimately leads to better performance of

the company. The main purpose of the Finance department is portfolio management and

risk management. The risk management is done through comparing the performance of

the different companies where they want to do investments of their product premium and

generate high returns from the investments.

3.31 Process of Portfolio Management In IDBI Federal Life Insurance Co. Ltd

a) The starting point of this process was to determine the characteristics of the various

investments and then matching them with the customer‟s need and preferences.

b) While planning, a careful review was been conducted about the financial situation

and current capital market conditions.

c) The most important decision in portfolio management is selection of asset mix.

38
d) It means spreading out portfolio investment into different asset classes like bonds,

stocks, mutual funds etc. In other words selection of asset mix means investing in

different kinds of assets and reduces risk and volatility and maximizes returns in

investment portfolio.

e) The strategic asset allocation policy had call for broad diversification through an

indexed holding of virtually all securities in the asset class.

f) The portfolio manager had to decide the goals before selecting the common stock.

The goal may be to achieve pure growth, growth with some income or income only.

Once the goal was been selected, the portfolio manager selects the common stocks as

per the goal.

g) The process of portfolio management involved a logical set of steps common to any

decision, plan, implementation and monitor. Thus, the last step was portfolio revision

which leads to changing the asset allocation of a portfolio as per the market scenario.

The portfolio, which is once selected, has to be continuously reviewed over a period

of time.

3.32 Tax Department

The Tax department is responsible for optimizing the tax position of IDBI Insurance. Our

main tasks are to assist management within the global regions and Business Units with

their tax issues. Where necessary, the Tax department will draft and implement policies

and procedures, such as product approval procedures and transfer pricing policies. In

addition, Tax also performs an overseeing role for the financial departments, ensuring

that all tax obligations are adequately reflected in all financial statement.

39
3.33 Balance Sheet of March’12 And March’13

Figure No-3.2: Balance Sheet IDBI Federal’s March’12 And March’13

40
According to this balance sheet the Net Current Assets has increased from Rs.5,63,436 to

Rs.8,54,322 respectively from 2012 to 2013, due to increase in the current assets from

Rs.19,37,957 to Rs. 26,36,583. As per the balance sheet the balance in Profit & Loss

Account (Shareholders' account) as on march 2013 has decrease from Rs.43,23,548 to

Rs.42,31,116 which shows a down fall in profit approx Rs.1 crore.

3.4 Information Technology (IT)

IDBI Federal Life Insurance Co. Ltd uses the IT technology for development of their

business and transparency in their working.

a) Online complaint section is also there, customers can easily solve their problem

online which save the time of customer as well as the employees.

b) The organization made the company website http://www.idbifederal.com from where

any information about the product can easily be collected, calculator and tools option

is also available from where customer can calculate the premium amount.

c) E- Payment system is used by the company to faceplate the customers so that they

can easily pay the premium of its insurance on time without any delay and problem.

Figure No-3.3: IDBI Federal’s Website

41
B. Data Presentation

3.5 Research Methodology

Research Methodology is a very organized and systematic medium through which a

particular case or problem can be solved. The type of research is Descriptive research.

For data collection purpose the secondary source was used like Equity Growth Fund

factsheet, books, websites etc. It tends to be Quantitative in nature that is to say in the

form of numbers that can be quantified and summarized. Thus, descriptive research is

useful in research conclusions and decision making. It is analytical, descriptive and

quantitative research where the comparison between Equity Growth Fund of June and

July‟13 is made on the basis of risk, volatility and return.

3.51 Research Objectives

i. To evaluate investment performance of Equity Growth Fund in terms of risk and

return.

ii. To understand the concept of portfolio management and its relation to Equity

Growth Fund.

iii. To study and compare returns of equity growth fund.

3.52 Limitations of the study

i. Time was the biggest constraint as many times it was not possible to meet senior

officials to collect much information.

ii. There may be biases on the part of the company executive while providing the

information.

iii. The project is unable to analyze each and every aspect of Equity Growth Fund to

create the ideal portfolio.

42
3.53 Scope of the Study

The Schemes were categorized and selected on evaluating their performance and

relative risk. The scope of the project is mainly concentrated on the equity growth

fund‟s portfolio. The ideal portfolio is created by analyzing the risk pattern of the

schemes and distributing the overall risk to earn maximum returns.

3.54 Tools and Techniques Used For Analysis

Equity growth fund portfolio is analyzed by using tools such as Standard Deviation,

Beta and Sharpe Ratio. Risk refers to the possibility that the actual outcome of an

investment will differ from the expected outcome. In other words we can say that

risk refers to variability or dispersion. If any investment is said to invariable it

means that it is totally risk free. Whenever we calculate the mean returns of an

investment we also need to calculate the variability in the returns.

f) Sharpe Ratio

The Sharpe ratio is the returns generated over the risk free rate, per unit of risk.

Risk in this case is taken to be the fund‟s standard deviation. As standard deviation

represents the total risk experienced by a fund, the Sharpe ratio reflects the returns

generated by undertaking all possible risk. Mathematically,

43
While investor seeks to generate high returns the question arises, how high? Usually

one asks for returns, which are higher than those accustomed to. These are returns

from risk-less instruments like treasury bills, government securities or bank saving

deposits. So the aim of investing seems to be to generate returns in excess of the

risk free return. At the same time high returns are generally associated with a high

degree of volatility.

The investors accept this volatility only because they want higher returns. The

Sharpe ratio represents this trade-off between risk and returns. At the same time it

also factors in the desire to generate returns, which are higher than those from risk

free return.

A higher Sharpe ratio is therefore better as it represents a higher return generated

per unit of risk. For an investor who puts in all his/her money in a single fund,

Sharpe ratio is a useful measure of risk-adjusted return. This is because standard

deviation measures total risk and this is the case with a single portfolio.

The Sharpe ratio tells us whether a portfolio's returns are due to smart investment

decisions or a result of excess risk. This measurement is very useful be ca use

although one portfolio or fund can reap higher returns than its peers, it is only a

good investment if those higher returns do not come with too much additional risk.

Thus, the Sharpe Index summarizes the risk and return of a portfolio in a single

measure that categorizes the performance of the fund on a risk adjusted basis. The

larger the value of Sharpe Index the better the portfolio has performed.

44
 ii) Beta

Beta describes the relationship between the stock‟s return and the index returns. It

is a measure of volatility, or systematic risk, of a security or portfolio in comparison

to the market as a whole. Beta measures a stock's volatility, the degree to which a

stock price fluctuates in relation to the overall market. Investment analysts use the

Greek letter beta, ß. It is calculated using regression analysis. Investors expecting

the market to be bullish may choose funds exhibiting high betas, which increase

investors' chances of beating the market. If an investor expects the market to be

bearish in the near future, the funds that have betas less than 1 are a good choice

because they would be expected to decline less in value than the index. Equity

funds can have beta values, which can be above one, less than one or equal to one.

By multiplying the beta value of a fund with the expected percentage movement of

an index, the expected movement in the fund can be determined. Thus if a fund has

a beta of 1.2 and the market is expected to move up by ten per cent, the fund should

move by 12 per cent Similarly if the market loses ten per cent, the fund should lose

12 per cent.

Calculating BETA
BETA (ß) = nΣxy – (Σx)( Σy)
nΣx2 – (Σx)2
Where,
n – Number of days
x – Returns of the index
y – Returns of the fund

45
A beta of 1 indicates that the security's price will move with the market. A beta

greater than 1 indicates that the security's price will be more volatile than the market,

and a beta less than 1 means that it will be less volatile than the market.

iii) Standard Deviation

The degree to which a single value in a group of values varies from the mean

(average) of the distribution. Standard deviation is a statistical measure that uses past

performance of an investment or portfolio to determine the potential range of future

performance and assess the probability of that performance. Standard deviations can

be calculated for an individual security or for the entire portfolio. The Standard

Deviation of an average is the amount by which the numbers that go into an average

deviate from that average. It tells us how closely an average represents the underlying

numbers.

If the individual monthly performances are very different from the average, then that

fund is risky, delivering high returns in some months and poor returns in others. If

they are mostly similar, then the fund is a low risk one, with about the same returns

month after month.

Standard deviation is a statistical measure of the range of a fund's performance. When

a fund has a high standard deviation, its range of performance has been very wide,

indicating that there is a greater potential for volatility. A high Standard Deviation

may be a measure of volatility, but it does not necessarily mean that such a fund is

worse than one with a low Standard Deviation. If the first fund is a much higher

performer than the second one, the deviation will not matter much.

46
3.6 Equity Growth Fund

i. Investment Objective

The investment objective of this fund is to invest in listed stocks and aim to generate

high returns by picking stocks that have growth prospects.

ii. Investment Pattern

Fixed Income Investments includes Cash and Money Market Equities and Equity

linked Instruments.

iii. Asset Allocation

An investment strategy that aims to balance risk and reward by apportioning a

portfolio's assets according to an individual's goals, risk tolerance and investment

horizon. The three main asset classes - equities, fixed-income, and cash and

equivalents - have different levels of risk and return.

iv. Portfolio Analysis – Market Cap wise

Market capitalization is calculated by multiplying a company's shares outstanding by

the current market price of one share. Market cap (i.e., small cap, mid cap or large

cap), it indicates the size of the companies in which the fund invests.

Large Cap: $10 billion plus and include the companies with the largest market
capitalization.
Mid Cap: $2 billion to $10 billion
Small Cap: Less than $2 billion

v. Sector Weights

Sectors help investors and investment professionals more easily compare and

understand the sector exposures of mutual funds and portfolios. Sector weight shows

the total investment in each sector by IDBI Federal.

47
d) Equity Growth Fund For July’2013

i. Asset Allocation

The three main asset classes - equities, fixed-income, and cash and equivalents -

have different levels of risk and return, so each will behave differently over time.

Asset allocation is an important factor in determining returns for an investment

portfolio.

Asset Allocation Cash &

Net Current
CBLO
Assets
0.55%
0.63%

Equity
98.81%

Figure No-3.4: Asset Allocation For Equity Growth Fund July’13

Interpretation:

The above chart shows, 98.81% of investment is done in equity, 0.63% in Net current

assets and 0.55% in Cash & Collateralized Borrowing and Lending Obligation (CBLO).

48
ii. Portfolio Analysis – Market Cap wise

Market capitalization is calculated by multiplying a company's shares

outstanding by the current market price of one share. Market cap (i.e., small cap,

mid cap or large cap), it indicates the size of the companies in which the fund

invests.

Portfolio Analysis - Market Capwise

Small Cap
10.02%
Mid Cap
11.12%

Large Cap
71.20%

Figure No-3.5: Portfolio Analysis For Equity Growth Fund July’13

Interpretation:

The above chart reflects 71.20% investment on large cap companies, 11.12% investment

on mid-cap companies and 10.02% of investment on small cap companies.

49
iii. Sector Weights

Sectors help investors and investment professionals more easily compare and

understand the sector exposures of mutual funds and portfolios. Sector weight shows

the total investment in each sector by IDBI Federal.

Sector Weights (%)

20
18
16
14
12
10
8
6
4
2
0

Figure No-3.6: Sector Weights For Equity Growth Fund July’13

Interpretation:

The above graph shows sector wise bifurcation of weights about the investment in

different sectors measured in terms of percentage. Major investment is made in Banking

Sector i.e. 19.5%, IT Sector i.e. 17% and least investment in Infrastructure i.e. 2%.

50
e) Equity Growth Fund For June’2013

i. Asset Allocation

Asset Allocation
Net Current
Cash & CBLO
Assets
0.12%
0.66%

Equity
99.22%

Figure No-3.7: Asset Allocation For Equity Growth Fund June’13

Interpretation:

The above chart shows, 99.22% of investment is done in equity, 0.66% in Net current

assets and 0.12% in Cash & Collateralized Borrowing and Lending Obligation (CBLO).

51
ii. Portfolio Analysis – Market Cap wise

Portfolio Analysis - Market Capwise

Small Cap
10.02%
Mid Cap
11.12%

Large Cap
71.20%

Figure No-3.8: Portfolio Analysis For Equity Growth Fund June’13

Interpretation:

The above chart reflects 71.20% investment on large cap companies, 11.12% investment

on mid-cap companies and 10.02% of investment on small cap companies.

52
iii. Sector Weights

Sector Weights (%)

25

20

15

10

Figure No-3.9: Sector Weights For Equity Growth Fund June’13

Interpretation:

The above graph shows, 21% of investment is made in banking sector after that 15% in

oil and gas sector, 1% investment in coal sector.

53
 CHAPTER – 4

FUNCTIONAL ANALYSIS OF IDBI FEDERAL

4.1 Functional Analysis

There are different functional areas in IDBI Federal Life Insurance Co. Ltd and analysis

of different departments has been explained below:

4.11 Marketing

The Marketing function at IDBI Federal Life Insurance covers an array of activities -

brand and media management, channel support, direct marketing and corporate

communications. IDBI Federal Life Insurance deals in services through 5 P‟s strategy.

a) Product Planning Process

In product planning process, the company does in-depth analysis starting with generation

of the idea to produce a new product in the market for the consumers, its designing, its

pricing, promotional strategies to be used, segmentation and positioning of the new

product for the targeted consumers etc. IRDA is considered to be the regulatory body for

insurance companies. Thus, all the strategies used by insurance company have to follow

or adhere to the guidelines of the IRDA. Once the new product has been produced the

same is mandatory to be validated by IRDA and approved before moving or targeting the

customers.

54
b) Pricing Strategy

Premiums are the amount of money the insurer needs to collect from the policyholder in

order to cover the expected losses, expenses, and a provision for profit. The pricing in

insurance is in the form of premium rates. Every product has its own premium which is

designed as per the customer needs and wants. A product with high premium caters high

income group whereas a product with low premium is to cater low income and middle

income groups. People would not be willing to put their funds to invest in insurance

business if the interest rates provided by the banks or other financial instruments are

much greater than the perceived returns from the insurance premiums.

c) Place

Place is one of the important part of marketing mix wherein different places are targeted

and product is sold. The major places which are targeted by the company are corporate

areas, societies, natural market like their own family and references. The product are sold

in areas depending upon the income group like for a product like incomesurance, the

product is targeted to places from rural areas to urban area.

d) People

Prospecting is an important term used in insurance when people are to be considered. For

selling its services company focuses on people i.e. young people, old people, married

couples, defense officers, businessman and women entrepreneurs through different

products as per needs of people and agents or service provider‟s act as a linking pin

between the company and the people.

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e) Promotion

Promotion of products is one of the important strategies used by IDBI Federal. It helps

the company to spread the word of their product and services to the customers. It helps to

spread awareness among people about the products of the company. The various

promotional strategies used by IDBI Federal are:-

i. Events - The company organizes various events like „Health Camp‟ for people and

aware them about their health. At the same time, they gather details related to the

people interested in camp and accordingly manage to arrange a meeting with agents

so that they can sell their products to these people according to their needs and wants.

ii. Pamphlets - The company promotes its product by distributing the pamphlets of the

products among the targeted people. These pamphlets contain all the necessary

information about the product. Customer can read these pamphlets and if they have

any queries related to the product, they can ask the respective agent.

iii. Online media - Social networking websites like Facebook, twitter and email etc are

used as one of the easiest mode of promotions.

4.12 Human Resource Department

Human Resource Management is considered to be the backbone of IDBI Federal Life

Insurance Co. Ltd. The company employs 1000 agents every year through both direct and

indirect method of recruitment. As the no. of agents is increasing every year, it‟s difficult

for HR Department to maintain and update the database on the daily basis. HR is not able

to keep the track on the agent‟s performance. The underperforming agents are been

ignored in company instead of that HR should motivate and encourage them to perform

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better and special training sections should be given to the underperforming agents to

improve their performance.

a) Selection process

The minimum criteria to pass IRDA exam is 33%, thus as a result a lot of agents are

recruited every year out of them. Many of the agents become inactive and stop

performing. Thus criteria should be stringent and there should be inter-competition

among the agents.

b) Rewards and recognition

IDBI Federal believes the strength of the organization is their employees and they should

be motivated to work effectively and efficiently. The motivation function is perhaps the

most important for the retention of people in today‟s organizations. The aim of the

company is to provide a conducive work environment to the employees and nurturing

them to make them feel committed and psychologically attached to the organization.

Thus, the performing employees are accolade rewards and recognition in the form of

incentives, gifts vouchers etc.

c) Human Relation

Every organization needs a good human relation in their organization so that they can

work without conflicts. IDBI Federal maintains good human relation through organizing

meetings every month between all the employees in which they have open

communication and involve the employee participation in the discussions. The employees

have the freedom to put their points and interact with other employees. The company

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organizes family functions time to time which help in building bond among employees.

Thus, the working environment is very friendly and comfortable for employees to work.

This leads to a strong teamwork.

4.13 Finance Department

The Finance department does the analysis of risk associated with the investment to have

higher profit which ultimately leads to better performance of the company. The main

purpose of the Finance department is portfolio management and risk management. This

department deals with management of all the risk to the Company and thus needs to

outperform in every sense to generate maximum returns for the investors and IDBI

Federal both. This department performs there all functions very well because unlike other

companies, IDBI Federal achieved its break even in just 5th year of its operations.

a) Portfolio Management

The portfolio management team is able to give higher returns to the customers as they

deeply analyze the risk associated with the investment to have higher profit which

ultimately leads to better performance of the company. The company should invest more

in government bonds and securities which generates fair returns and are risk free as

compared to equity market. The risk management is done through comparing the

performance of the different companies where they want to do investments of their

product premium and generate returns from the investments. One can only secure its

investment by getting good knowledge in funds available with them. Anyone can invest

in the market funds and gain higher returns. Practical knowledge of funds plays

significant role and thus one must invest in guaranteed funds and then move towards

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market fund. Portfolio of IDBI Federal varies from month to month and become less

trustful for investors who want higher return because higher flexibility leads to lower

returns.

b) Analysis of Balance Sheet

According to this balance sheet the Net Current Assets has increased from Rs.5,63,436 to

Rs.8,54,322 respectively from 2012 to 2013, due to increase in the current assets from

Rs.19,37,957 to Rs.26,36,583. As per the balance sheet the balance in Profit & Loss

Account (Shareholders' account) as on march 2013 has decrease from Rs.43,23,548 to

Rs.42,31,116 which shows a down fall in profit approx Rs.1 crore.

4.14 IT Department

IT works as the support activity to its primary functions. Information Technologies in

today‟s scenario, plays a major role in the smooth functioning of the processes and

operations of any organization. Nevertheless, it has significantly operated in the same

manner for IDBI Federal as well like all the attendance by each employee is centralized,

all the employees have their own id and password to operate and thus give them only

limited information to the extent of their designation. There is a website made by the

organization which provides all information regarding the products, premium, tax

calculator etc. The customers can complaint and pay premium online which reduces the

cost of administration. Thus, IDBI Federal are able to response the customers more

effectively and efficiently which leads to customer satisfaction.

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4.2 Analysis of Equity Growth Fund

The investment objective of this fund is to invest in listed stocks and aim to generate

high returns by picking stocks that have growth prospects. It aims to diversify risk by

investing in Large-cap as well as Mid-cap stocks and across multiple sectors.

4.21 Analysis of Asset Allocation

The assets allocation for the month of July‟13 and June‟13 has been classified mainly

into equities, net current assets, and cash and equivalents – which has different levels

of risk and return, so each behaves differently over time. There has been a negligible

change in month of July‟13 in assets allocation as compared to June‟13 wherein

equity reduced to 0.41%. The maximum investment is done in equity market and part

of the investment is done in Net Current Assets and Cash CBLO. Thus here risk and

return is high.

4.22 Analysis of Portfolio Market Cap Wise

Portfolio analysis for the month of June‟13 and July‟13 signifies the investment in the

companies as per the size of the organization. In Portfolio analysis (Market capwise),

the major investment is done in large cap for the month of July‟13 i.e. 71.20% and

10.02% & 11.12% for small cap and mid cap respectively.

4.23 Analysis of Sector Weights

The amount invested by the portfolio manager in market on behalf of IDBI Federal Life

Insurance as per Sector wise. Sector weights are the weights or percentage, in which this

amount is invested in different sectors of the market in June‟13 and July‟13.

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 Thus the analysis clearly state that sectors like Auto, IT and NBFC which were

showing higher attractiveness and were expected to give higher returns are given more

priority and more investment is made in these sectors and on the other hand sectors

like chemical, coal, power and banking are either completely dropped from the

portfolio or less investment is made in these sectors. Following are some of the

investment and disinvestment made into sectors like

1) Auto sector 3.8% to 7.8%

2) I.T sector 11.8% to 17%

3) Banking sector 21% to 19%

4) Power sector 7% to 3.8%.

The investment is the major part of the company which directly decrease the value of the

premium from which more and more customers are taking policy and help in increase

the financial position of the company.

4.24 Analysis through Quantitative Indicators

Quantitative June’13 July’13

Indicators

Sharpe Ratio (0.36) (0.70)

Beta 0.99 0.98

Standard Deviation 10.53 % 11.41 %

Table No-4.1: Quantitative Indicator of June and July’13

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 As per analysis of quantitative indicators, during portfolio revision stage there were

some fluctuations in the market scenario due to which portfolio was reviewed again

and some changes were made which resulted into better performance of the equity

growth fund.

a) As standard deviation increases from 10.53% to 11.14%, which shows higher Equity

Fund risk for the month of July.

b) As there has been no significant change in the beta i.e. 0.98 in July ‟13 which is less

than 1 indicates that the security's price will be less volatile than the market.

c) Sharpe Ratio summarizes the risk and return of a portfolio in a single measure that

categorizes the performance of the fund on a risk adjusted basis. As the Sharpe ratio

has increase from 0.36% to 0.70% which shows that portfolio of July ‟13 has

performed better.

4.3 Conceptual Framework

4.31 Definition of Portfolio Management

A portfolio is a collection of securities since it is really desirable to invest the entire funds

of an individual or an institution or a single security, it is essential that every security be

viewed in a portfolio context. Portfolio analysis considers the determine of future risk and

return in holding various blends of individual securities. Determining the mix of assets to

hold in a portfolio is referred to as portfolio management. Investors must balance risk and

performance in making portfolio management decisions.

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 4.32 Objectives of Portfolio Management

The basic objective of Portfolio Management is to maximize yield and minimize risk.

The other objectives are as follows:

a) Stability of Income : An investor considers stability of income from his investment.

He also considers the stability of purchasing power of income.

b) Capital Growth : Capital appreciation has become an important investment

principle. Investors seek growth stocks which provide a very large capital

appreciation by way of rights, bonus and appreciation in the market price of a share.

c) Liquidity : An investment is a liquid asset. It can be converted into cash with the

help of a stock exchange. Investment should be liquid as well as marketable.

d) Safety : safety means protection for investment against loss under reasonably

variations. In order to provide safety, a careful review of economic and industry

trends is necessary. In other words, errors in portfolio are unavoidable and it requires

extensive diversification.

4.33 Steps in Portfolio Management

1) Identification of the Objectives

a) The starting point in this process is to determine the characteristics of the various

investments and then matching them with the individuals need and preferences.

b) All the personal investing is designed in order to achieve certain objectives.

c) These objectives may be tangible such as buying a car, house etc. and intangible

objectives such as social status, security etc.

d) Similarly, these objectives may be classified as financial or personal objectives.

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e) Financial objectives are safety, profitability and liquidity.

f) Personal or individual objectives may be related to personal characteristics of individuals

such as family commitments, status, depends, educational requirements, income,

consumption and provision for retirement etc.

2) Formulation of Portfolio Strategy

a) The aspect of Portfolio Management is the most important element of proper portfolio

investment and speculation.

b) While planning, a careful review should be conducted about the financial situation and

current capital market conditions.

c) This will suggest a set of investment and speculation policies to be followed.

d) The statement of investment policies includes the portfolio objectives, strategies and

constraints.

e) Portfolio strategy means plan or policy to be followed while investing in different types

of assets.

f) There are different investment strategies.

g) They require changes as time passes, investor‟s wealth changes, security price change,

investor‟s knowledge expands.

h) Therefore, the optional strategic asset allocation also changes.

i) The strategic asset allocation policy would call for broad diversification through an

indexed holding of virtually all securities in the asset class.

3) Selection of Asset Mix

a) The most important decision in portfolio management is selection of asset mix.

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b) It means spreading out portfolio investment into different asset classes like bonds, stocks,

mutual funds etc.

c) In other words selection of asset mix means investing in different kinds of assets and

reduces risk and volatility and maximizes returns in investment portfolio.

d) Selection of asset mix refers to the percentage to the invested in various security classes.

e) The security classes are simply the type of securities as under: » money market

instrument » fixed income » equity shares » real estate investment » international

securities

f) Once the objective of the portfolio is determined the securities to be included in the

portfolio must be selected.

g) The portfolio manager has to decide the goals before selecting the common stock.

h) The goal may be to achieve pure growth, growth with some income or income only. Once

the goal has been selected, the portfolio manager can select the common stocks.

4) Portfolio Execution:

a) The process of portfolio management involves a logical set of steps common to any

decision, plan, implementation and monitor.

b) Applying this process to actual portfolios can be complex.

c) Therefore, in the execution stage, three decisions need to be made, if the percentage

holdings of various asset classes are currently different from desired holdings

d) The portfolio than, should be rebalanced. If the statement of investment policy requires

pure investment strategy, this is only thing, which is done in the execution stage.

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e) However, many portfolio managers engage in the speculative transactions in the belief

that such transactions will generate excess risk-adjusted returns.

f) Such speculative transactions are usually classified as timing or selection decisions.

g) Timing decisions over or under weight various asset classes, industries or economic

sectors from the strategic asset allocation.

h) Such timing decisions are known as tactical asset allocation and selection decision deals

with securities within a given asset class, industry group or economic sector.

i) Then the investor or portfolio manager can make any tactical asset allocation or security

selection decision.

5) Portfolio Revision

a) Portfolio management would be an incomplete exercise without periodic review.

b) The portfolio, which is once selected, has to be continuously reviewed over a period of

time and if necessary revised depending on the objectives of investor.

c) Thus, portfolio revision means changing the asset allocation of a portfolio.

d) Investment portfolio management involves maintaining proper combination of securities,

which comprise the investor‟s portfolio in a manner that they give maximum return with

minimum risk.

e) For this purpose, investor should have continuous review and scrutiny of his investment

portfolio.

f) Whenever adverse conditions develop, he can dispose of the securities, which are not

worth.

g) However, the frequency of review depends upon the size of the portfolio, the sum

involved, the kind of securities held and the time available to the investor.

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h) The review should include a careful examination of investment objectives, targets for

portfolio performance, actual results obtained and analysis of reason for variations.

i) The review should be followed by suitable and timely action.

j) There are techniques of portfolio revision.

k) Investors buy stock according to their objectives and return-risk framework.

l) These fluctuations may be related to economic activity or due to other factors.

m) Ideally investors should buy when prices are low and sell when prices rise to levels

higher than their normal fluctuations.

n) The investor should decide how often the portfolio should be revised.

o) If revision occurs too often, transaction and analysis costs may be high.

p) If revision is attempted too infrequently the benefits of timing may be foregone.

q) The important factor to take into consideration is, thus, timing for revision of portfolio.

6) Portfolio Performance Evaluation

a) Portfolio management involves maintaining a proper combination of securities, which

comprise the investor‟s portfolio in a manner that they give maximum return with

minimum risk.

b) The investor should have continues review and scrutiny of his investment portfolio.

c) These rates of return should be based on the market value of the assets of the fund.

d) Complete evaluation of the portfolio performance must include examining a measure of

the degree of risk taken by the fund.

e) A portfolio manager, by evaluating his own performance can identify sources of strength

or weakness.

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f) It can be viewed as a feedback and control mechanism that can make the investment

management process more effective.

g) Good performance in the past might have resulted from good luck, in which case such

performance may not be expected to continue in the future.

h) On the other hand, poor performance in the past might have been result of bad luck.

i) Therefore, the first task in performance evaluation is to determine whether past

performance was good or poor.

j) Then the second task is to determine whether such performance was due to skill or luck.

k) Good performance in the past may have resulted from the actions of a highly skilled

portfolio manager.

l) The performance of portfolio should be measured periodically, preferably once in a

month or a quarter.

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 CHAPTER-5
SUMMARY & CONCLUSION

5.1 Findings And Results

a) Marketing at IDBI Federal is considered to be the backbone which use different channel

of marketing with the aim of adding value to the organizations.

b) People don‟t give more importance for the advertisements while compared to brand, tax

benefit, death benefit, security and low premium.

c) IDBI Federal Life Insurance Company leverages on the strong distribution network of its

promoters and advisors

d) In HR practice, all need of the employees are fulfill by the company like compensation,

good working conditions etc. from which all the employees are satisfied by the HR

policies.

e) Different programmes like Reward & Recognition are done to motivate as well as to

retain the employees by giving trophy and package for foreign tour.

f) Portfolio Manager takes into consideration many factors like investment objective, risk

tolerance and expected returns while making investment.

g) The most prominent option of customers is equity with most of the investment in equity,

and rest of investment in cash and fixed income. Returns of Equity Fund in IDBI Federal

is 12.6%

h) Investors must understand past trend of the funds before making investment because

awareness provides stability in analyzing returns.

i) In the month of June‟13 investments were made more in banking sectors but in July‟13

investment in banking sector were decreased due to underperformance of banking sector.

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5.2 LESSONS LEARNT

5.21 Working Environment

The researcher completed internship in IDBI Federal Life Insurance Co Ltd. As per the

training program, researcher had training for Incomesurance product and learned

different sales techniques to pitch prospective clients. Researcher grabbed the opportunity

to meet different people from diverse backgrounds and occupations to discuss on

insurance related topics. Along with the sales part, researcher had been assigned a project

for which researcher had chosen the topic “Comparative analysis of portfolio investment

in Equity Growth Fund – June‟13 and July‟13 of IDBI Federal Life Insurance”. Working

in IDBI Federal has helped researcher to gain experience in the sale and finance field.

Researcher worked under the sales and portfolio management team and gained practical

knowledge of funds and how they are allocated in equity market. The main contribution

of an employee to its organization is to perform its responsibilities with 100% effort

honesty and dedication. Researcher‟s major responsibility was to sell the product and

analyze the performance of the investment team by comparing the June ‟13 and July ‟13

Equity Growth Fund portfolio performance for the organization. Researcher was one of

the top performers of the company, where in a month researcher gave the business of

2.40 lakhs and was given the “Best Performance” certificate. For the goodwill of the

company researcher was always honest to tell all the facts and benefits of the product to

the customer and convince them for the right product that best suited them and after

selling the product to the customers, researcher followed up with the internal department

of the organization to provide customer with policy document as soon as possible, thus

acted as a linking pin between customer and organization. Researcher also helped in

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analysis of the performance of the portfolio, design by the investment team. Portfolio of

the organization is managed after analysis of the performance of each and every company

before investing and taking into consideration the risk and return relationship. Investment

department is performing very well and company is able to provide good returns to the

customers.

5.21 Practical Knowledge

The practical knowledge researchers gained during the training in different functional

areas of the company are as follows:

a) Marketing Department provided researcher an in depth knowledge about

Incomesurance, as well as the promotional strategy used by the company i.e. how to

gather information of customers using campaigns and events.

b) The customer retention is very important which is done by company by solving the

problem of customer and providing after sales service like reminding the customer

about the premium due date etc.

c) The researcher gained the knowledge about various retention strategies implemented

by IDBI Federal to retain its employees as well as about the recruitment procedure.

d) The researcher learned the portfolio management for investors of the company where

company invests the money in different sectors of the industry.

e) Researcher also gained the knowledge regarding the tax benefits which are provided to

the customers in the different product and its applicants and implications.

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5.3 Suggestions

a) Company should increase its advertisement for generating more awareness among the

people, for investment of funds available in IDBI Federal, the awareness of IDBI

Federal is somehow not up to the mark, specially some funds are totally new concept

in insurance sector.

b) Company should invest more in equity fund and debt or bond fund as they are less

risky.

c) Promotion strategies of IDBI Federal lack innovation and thus, it should amplify its

promotional strategies.

d) IDBI Federal should focus more on the commercial advertisements.

e) It should use TV channels with high TRP rating in order to promote its brand and

spread awareness among people related to its products.

f) IDBI Federal should strongly work on commercials of their products and use TV,

Radio as a medium to target people with innovative products.

g) The company should improve its services provided to customer.

h) In each Regional Office at least one portfolio manager should be appointed in order to

cater the queries and manager their working in all regions in India.

i) Ensure high level training and development not just for staff but for agents of

organizations for better service and flexibility.

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 BIBLIOGRAPHY

Books

1. Aswathappa, (2009), Human Resource Management (5th Edition.), Tata McGraw-

Hill.

2. Chandra, Prasanna, (2006), Investment Analysis and Portfolio Management, (3rd

Edition), Tata McGraw-Hill.

3. Chabra, T.N. (2005), Marketing Management (4th Edition), Dhanpati Rai & Co. (Pvt.

Ltd.).

4. Gupta, C.B (2009), Human Resource Management, (3rd Edition), India, BPB

Publication.

5. Kotler, Philips, (2008), Marketing Management, (13th Edition), Prentice Hall.

6. Maheshwari, S.N, Financial Management, (3rd Edition), Vikas Publication House.

Websites

th
1. https://www.google.co.in on 9 June‟13.

2. http://www.idbifederal.com/Press/PressRelease/Pages/breaks-even.aspx on 10th

3. http://www.idbifederal.com on 12th June‟13.

4. http://www.idbifederal.com/Pages/home.aspx on 12th June‟13.

5. www.idbifederal.com/AboutUs/Pages/Company-Profile.aspx on 21th June‟13.

6. www.idbifederal.com/Products/Pages/default.aspx on 23rd June‟13.

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