Private Circulation only May - 2015 Issue - 96

From the President's Desk

With yet another Offer for Sale (OFS), Government of India mobilized Rs.1,550/- crore by
selling 5 percent of its stake in Rural Electrification Company Ltd (REC). Marking the first
divestment for the current fiscal a success, the OFS of Rural Electrification Corporation was
oversubscribed by 5.53 times with retail participation at 902 percent making this a highest ever.
The government is open to sell its excess holding over 51 percent in certain public sector entities
as part of its 'strategic sale' through which it aims to collect Rs 28,500 crore. Another Rs 41,000
crore is estimated to come from its minority stake sale in PSUs.

As per the Medium Term Fiscal Policy Statement of the government, the budgeted Rs 28,500
crore is expected to come from sale of government's holdings in non-government commercial
entities - The Specified Undertaking of Unit Trust of India (SUUTI), Bharat Aluminium
Company (BALCO) and Hindustan Zinc Limited (HZL). Along with this, another tranche of Mr. BANABIHARI PANDA
President & Whole time Director
share sale in state-run miner Coal India Ltd, the largest coal producer in the world, cannot be Indbank Merchant Banking Services Ltd
ruled out, the government still needs to sell about 5 percent of its stake in Coal India to bring
down its holding to 75 percent in listed state-run companies, as stipulated by the market regulator SEBI. There are lots to
come for public to be a part of India's major Government controlled companies. The move of divestment by Government of
India will help to build a strong capital market, by providing a large platform for public participation and to rebuild
confidence in the Indian Capital Market which motivates them to invest in it. REC OFS is one such example where the retail
participation was at 902 percent of its offer.

The growth of capital markets will directly make an impact on the economy. Along with its divestment strategy of GoI,
the other policy reforms will be key drives towards improving the economic status of the country and take it towards a
faster growth trajectory and lower inflation.

Prime Minister Modi's recent visit to European countries is expected to bring large Foreign Institutional Investment into
India in various sectors like Infrastructure, Defence, Skill development etc. A significant one is where India signed a deal
with a French company Dassault Aviation to purchase 36 Rafale fighter aircraft on PM's visit to France. PM visited these
countries as an ambassador of the theme Make in India.

Since the beginning of the current fiscal year foreign fund inflows has grown tremendously, which has crossed Rs. 83,000
crores this fiscal. Analysts expect the inflows to accelerate further going ahead, helped by clearance of reform bills for
insurance, coal and mining, as also on assurances on controversial issues like the General Anti Avoidance Rules (GAAR).
Still much more is to flow in, in coming days, which will help India to attain sustainable growth.

Banabihari Panda
President and Whole Time Director
Indbank Merchant Banking Services Ltd

Our Website : www.indbankonline.com

 Markets for You
Important Happenings
Snap Shots
 Government of India is planning to launch a scheme in May that would
Inflation (%) (WPI) -2.33% -2.06% -0.39% 0.11%
encourage temples to deposit their gold with banks in return for interest
(Mar (Feb (Jan (Dec
payments. The government would melt the gold and loan it to jewelers to 2015) 2015) 2015) 2014)
meet demand for gold and reduce economically-crippling gold imports,
which accounted for 28% of India's trade deficit in the year ending March Inflation (%) (CPI) 5.17% 5.37% 5.11% 5.00%
2013. India's annual gold imports of 800 to 1,000 tones could be cut by a (Mar (Feb (Jan (Dec
quarter if temples decided to participate in the scheme, say government 2015) 2015) 2015) 2014)
and industry sources. Particulars 24th Apr. 17th Apr. 10th Apr. 03rd Apr.
 India's consumer price inflation unexpectedly slowed to a three-month 2015 2015 2015 2015
low in March 2015. Retail prices rose 5.17 percent year-on-year in
March, slower than a 5.5 percent annual rise predicted by analysts in
91-Day Cut-off (%) 7.8936 7.8519 7.8519 -
various polls conducted and a 5.37 percent gain in February. Food 10-yr G-Sec yield (%) 7.7913 7.8267 7.8121 7.7924
prices were up 6.14 percent year-on-year in March compared with a 1-10 yr spread (bps) -11 -3 0 9
revised 6.88 percent rise a month earlier.
 A new power equation appears to be emerging between the Centre and
USD/INR(Rs) 63.4006 62.3460 62.3660 62.5908
states. The power ministry is willing to allow states, which approach USD 6m LIBOR 0.41 0.40 0.40 0.40
central generation utilities for projects in their territory, to retain 85 per
10 Y US Treasury 1.91 1.87 1.95 1.84
cent of electricity from such units. The new approach is expected to
galvanize state governments into walking the extra mile for the projects. USD/Euro Spot 0.9195 0.9253 0.9431 0.9117
The fresh approach has the potential to immediately benefit West
Bengal, Bihar, Andhra Pradesh and Telangana. All of them have Global Indices
separately approached NTPC, NHPC and SJVN (Satluj Jal Vidyut Index as Index as Variation
Nigam Ltd, a joint venture between the Centre and the Himachal
Country on 27 on 24 (%)
th th
Indices
government) for setting up large power plants and demanded 85 per
Mar 2015 Apr 2015 (Inc/ Dec)
cent to 100 per cent power from these projects for themselves.
 Indian Air Force has initiated a proposal to purchase three more Boeing NASDAQ United States 4,891.22 5,092.08 4.11%
C-17 Globemaster III aircraft from the US for about Rs 8,700 crore, DJIA United States 17,712.66 18,080.14 2.07%
impressed as it is by the cargo carrier's varied utility that includes
S&P 500 United States 2,061.02 2,117.69 2.75%
carrying out of large-scale humanitarian assistance operations such as
the ongoing relief effort in earthquake-hit Nepal. Hang Seng Hong Kong 24,486.20 28,060.98 14.60%
 The Pradhan Mantri Jan Dhan Yojana programme, which aims to ensure Nikkei 225 Japan 19,285.63 20,020.04 3.81%
that at least one member in every household in the country had a bank
Shanghai Composite China 3,691.10 4,393.69 19.03%
account, could soon emerge as a worldwide template for achieving rapid
financial inclusion. The Financial Action Task Force, a global anti-terror Straits Times Singapore 3,450.10 3,513.00 1.82%
financing agency, has given initial approval to a paper by India on how it FTSE 100 United Kingdom 6,855.02 7,070.70 3.15%
achieved the task in a few months while adhering to know your customer
(KYC) norms. The US, Russia, Spain and the Netherlands have CAC 40 France 5,034.06 5,201.45 3.33%
extended support to the paper. The agency, which advocates stringent DAX Germany 11,868.33 11,810.85 -0.48%
KYC standards in order to stamp out terror financing, is keen to see
whether the Indian model can be emulated by other countries.
SENSEX India 27,458.64 27,437.94 -0.08%
 Government of India, Ministry of Finance, is considering setting up a NIFTY India 8341.4 8,305.25 -0.43%
high level committee to sort out the taxations issues of the past and
make the system predictable. This committee will be instructed to report Institutional Investments
back expeditiously so that early actions can be taken.
 India failed to meet the exports target of USD 340 billion set for 2014-15 Category Debt / Gross Gross Net
due to economic slowdown in many countries, says Commerce and Equity Purchases Sales Investment
Industry Minister, GoI. The Minister said unable to meet the exports (Rs Crores) (Rs Crores) (Rs Crores)
target of last year due to the slowdown in targetted markets across the FII Investments Equity 96007.86 80414.18 15593.68
world. GoI is ready to meet the future demand by improving the capacity (in April up to 24.04.2015) Debt 16682.47 17499.58 -817.11
building and by taking many initiatives. One or two new markets would
provide more demand for our exports. Mutual Fund Equity 15835.20 11621.40 4213.80

 An inter-ministerial panel will take up as many as 41 Foreign Direct (in April up to 24.04.2015) Debt 111511.40 69737.30 41774.10
Investment proposals, including that of Kotak Mahindra Bank. Kotak
FII Derivative Trades INDEX INDEX STOCK STOCK
Mahindra Bank has approached the panel to seek nod for raising foreign
(in Apr up to 24.04.15) FUTURES OPTIONS FUTURES OPTIONS
investment cap in bank to 55 per cent. The Reserve Bank has barred
(Rs Crores)
overseas investments in the bank after foreign shareholding in it hit the
permissible threshold following the merger of Kotak Bank with ING
-Buy 22719 261855 44788 32559
Vysya Bank. Investments from FIIs, FPIs and foreign banks have
reached 48.55 per cent in the merged entity. -Sell 24423 252680 46093 32898

Editorial Team

President and Whole-time Director Head-Merchant Banking

2
May - 2015
 IPO and NFO Review
IPO NEWS
 Leading cotton seeds producer Nuziveedu Seeds has filed its draft crore from Initial Public Offer (IPO). According to draft documents filed
papers with capital markets regulator SEBI to float an Initial Public Offer with Securities and Exchange Board of India (SEBI), the Company would
(IPO). The proceed of the issue would be utilized towards loan mobilize up to Rs 510 crore by issuing fresh equity shares, while
repayment and for general corporate purposes, the company said in its Sidhhartha Corporation would rake in up to Rs 90 crore through sale of
Draft Red Herring Prospectus (DRHP). The proposed public issue existing shares. The funds would be used for capacity enhancement of
comprises fresh issue worth Rs 125 crore and an offer for sale from its
the Somathane container freight station (CFS), development of the non-
promoters and existing private equity investor Blackstone. The promoter
notified areas of CFSs and establishment of a logistics park at Valsad in
group of the company has proposed to offer up to 98.91 lakh equity
Gujarat.
shares for sale, while private equity giant Blackstone plans to offer 19.78
lakh shares.  A subsidiary of Hyderabad-based Pennar Industries Ltd, M/s Pennar
 MM Auto Industries Ltd, Gurgaon based company has withdrawn its Engineered Buildings Systems Ltd, has filed its Draft Red Herring
proposed Initial Public Offer. The company had filed draft offer Prospectus (DRHP) with securities SEBI to float its Initial Public Offer
documents with the Securities and Exchange Board of India (SEBI) for (IPO). The proposed public issue comprises fresh issue of equity shares
the proposed IPO in March. It was yet to receive SEBI's approval for the to raise up to Rs 58 crore (approximately $9.2 million), besides an offer
proposed public offer. However, the company through its lead merchant for sale which would lead to part-exit for its private equity investor Zephyr
banker Mefcom Capital Markets Limited withdrew the IPO application in Peacock. Of the proceeds of the fresh issue worth Rs 58 crore, it would
April. use Rs 34 crore for repaying debt, about Rs 8 crore for financing the
 The Maharashtra-based firm, M/s Navkar Corporation has filed draft procurement of infrastructure for its design and engineering services,
documents with capital markets regulator SEBI to garner up to Rs 600 while the remaining would be used for general corporate purposes.

Forth Coming Corporate Actions

Company Symbol Purpose Ex-Date Record Date
HINDUJA VENTURES LTD HINDUJAVEN Interim 8/5/2015 11/5/2015
G.M.BREWERIES LTD. GMBREW Dividend 8/5/2015 19/5/2015
FOSECO INDIA LTD FOSECOIND 1st Interim Dividend 7/5/2015 8/5/2015
Indiabulls Ventures Ltd IBVENTURES Interim Dividend 6/5/2015 7/5/2015
Indiabulls Housing Finance Ltd IBULHSGFIN Interim Dividend 6/5/2015 7/5/2015
CASTROL INDIA LTD CASTROLIND Final Dividend 6/5/2015 14/5/2015
TVS MOTOR COMPANY LTD. TVSMOTOR 2nd Interim Dividend 5/5/2015 6/5/2015
SUN TV NETWORK LTD. SUNTV Interim Dividend 5/5/2015 6/5/2015
GODREJ CONSUMER PRODUCTS LTD. GODREJCP Interim Dividend 5/5/2015 6/5/2015

NEW FUND OFFERS

Open Close Min Inv Category Type
Fund Name Date Date Amount
Axis Hybrid Fund - Series 22 21-04-2015 05-05-2015 5000 Debt Closed-Ended
ICICI Prudential Capital Protection Oriented
Fund - Series VIII - 1103 Days Plan C 28-04-2015 11-05-2015 5000 Hybrid Closed-Ended
Edelweiss Exchange Traded Scheme-
Nifty (Nifty EES) 24-04-2015 05-05-2015 5000 Equity Open-Ended
Reliance Fixed Horizon Fund -
XXVIII - Series 18 (1115 D) 07-05-2015 21-05-2015 5000 Diversified Closed-Ended
ICICI Pru India Recovery Fund - Series 1 (D) 09-03-2015 23-09-2015 5000 Equity Closed-Ended

3
May - 2015
 SENSEX - The Barometer of Indian Capital Markets
The Sensex is an "index". What is an index? An index is basically an indicator. It gives you a general idea about whether most
of the stocks have gone up or most of the stocks have gone down. The Sensex is an indicator of all the major companies of the
BSE.
S&P BSE SENSEX, first compiled in 1986, was calculated on a "Market Capitalization-Weighted" methodology of 30
component stocks representing large, well-established and financially sound companies across key sectors listed on Bombay
Stock Exchange. The base value of the S&P BSE SENSEX is taken as 100 on 1 April 1979, and its base year as 1978–79. S&P
BSE SENSEX today is widely reported in both domestic and international markets through print as well as electronic media. It is
scientifically designed and is based on globally accepted construction and review methodology. Since September 1, 2003, S&P
BSE SENSEX is being calculated on a free-float market capitalization methodology.
The "free-float market capitalization-weighted" methodology is a widely followed index construction methodology on which
majority of global equity indices are based; all major index providers like MSCI, FTSE, STOXX, and Dow Jones use the free-float
methodology. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares
outstanding. The index has increased by over ten times from June 1990 to the present. Using information from April 1979
onwards, the long-run rate of return on the S&P BSE SENSEX works out to be 18.6% per annum.
S& P BSE SENSEX Calculation Methodology
S&P BSE SENSEX is calculated using the "Free-float Market Capitalization" methodology, wherein, the level of index at any
point of time reflects the free-float market value of 30 component stocks relative to a base period. The market capitalization of a
company is determined by multiplying the price of its stock by the number of shares issued by the company. This market
capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.
S&P BSE SENSEX - Scrip Selection Criteria
Eligible Companies: All common equities listed at BSE Ltd (excluding companies classified in Z group, listed mutual funds,
companies suspended on the last day of the month prior to review date, stocks objected to by the Surveillance Department of BSE
Ltd. and those that are traded under a permitted category and SME category) are considered eligible.
Listing History: Stocks must have a listing history of at least three months at BSE, with the following exceptions:
 An exception may be granted if the average float market capitalization of a newly listed company ranks in the top 10 of all
companies listed at BSE. In such cases, the minimum listing history required is at least one month.
 In the event that a company is listed due to a merger/demerger/amalgamation, a minimum listing history is not required.
Trading Days: The stock must have traded on every trading day at BSE during the three month reference period. Exceptions
may be made for extreme reasons such as stock suspension.
Revenue: Eligible companies must have reported revenue in the last four quarters from core activities.
Index Construction: Companies meeting the eligibility factors above are ranked based on their average three month float
market capitalization. The top 75 are identified.
 All companies meeting the eligibility factors are then ranked again based on their average three month total market
capitalization. The top 75 are identified.
 All stocks identified based on both float and total market capitalizations are then combined and sorted based on their
average three month value traded. Stocks with a cumulative value traded greater than 98% are excluded.
 The remaining stocks are then sorted by float market capitalization. Stocks with a weight of less than 0.5% are excluded.
 All remaining stocks are classified by sector and then sorted in descending order of rank by float market capitalization.
These stocks make up the replacement pool, to be included in the index if an existing constituent is removed.
 During periodic review, index constituents no longer meeting the float market capitalization, total market capitalization,
cumulative value traded, and minimum weight criteria are removed and replaced with candidates from the replacement
pool. Industry/Sector Representation. Stock selection generally attempts to maintain index sector weights that are broadly
in-line with the overall market.
Constituent Weightings: Every stock is weighted in the index based on its float adjusted market capitalization

4
May - 2015
 Milestones: Here is a timeline on the rise of the SENSEX through Indian stock market history

Date Milestone of SENSEX Date Milestone of SENSEX

25/07/1990 SENSEX closed at 1001 9/10/2007 The SENSEX crossed 18000
15/01/1992 The SENSEX closed at 2020 followed by 15/10/2007 The SENSEX crossed 19000
the liberal economic policy initiatives
undertaken by the then finance minister
and Former Prime Minister of India
Dr Manmohan Singh.
29/02/1992 The SENSEX crossed 3000 on mark in 11/12/2007 The SENSEX crossed 20000
the wake of the market-friendly Budget
announced by Manmohan Singh.
30/03/1992 The SENSEX closed at 4091 on the 5/11/2010 The SENSEX closed at 21078
expectations of a liberal export-import
policy. It was then that the Harshad Mehta
scam hit the markets and SENSEX
witnessed unabated selling.
11/10/1999 The SENSEX crossed 5000 as the 13/03/2014 The SENSEX closes higher than the Hang
Bharatiya Janata Party-led coalition won Seng Index, to become the major Asian stock
the majority in the 13th Lok Sabha election market index with the highest value, for the
first time ever
11/2/2000 Closed at 6006, the information 24/03/2014 The SENSEX Closed at 22095.3
technology boom helped the SENSEX
21/06/2005 Crossed 7000; the news of the settlement 9/5/2014 The SENSEX Crossed 23000
between the Ambani brothers boosted
investor sentiments and the scrips of RIL,
Reliance Energy, Reliance Capital and
IPCL made huge gains. This helped the
SENSEX crossed 7,000 points for the
first time
8/9/2005 Crossed 8000 level following brisk 12/5/2014 The SENSEX closed at its record all time
buying by foreign and domestic funds high of 23,551,a rise of 2.42%(+556.77 points)
intraday due to in early trading. continued fund
inflows on hopes of a stable government
9/12/2005 Closed at 9000.32 on the back of frantic 13/05/2014 Reached its peak of 24,067.11
buying spree by foreign institutional
investors and well supported by local
operators as well as retail investors
7/2/2006 The SENSEX closed at 10003 16/05/2014 Reached its peak of 25,364.71
27/03/2006 The SENSEX closed at 11001 7/7/2014 The SENSEX Closed at 26100.08
20/04/2006 The SENSEX closed at 12004 2/9/2014 The SENSEX Closed at 27019.39
30/10/2006 The SENSEX closed at 13024.26 5/11/2014 The SENSEX crossed 28,000 mark
5/12/2006 The SENSEX closed at 14000 21/01/2015 The SENSEX crossed 29,000 mark.
6/7/2007 The SENSEX closed at 15000 23/01/2015 The SENSEX closed at 29278.84
19/09/2007 The SENSEX closed at 16000 4/3/2015 The SENSEX breaches 30000 mark due to
the steps taken by the Reserve Bank of
India as regards cutting the repo rates.
26/09/2007 The SENSEX closed at 17000

The growth of the equity market in India has been phenomenal in the present decade. Right from early nineties, the stock
market witnessed heightened activity in terms of various bull and bear runs. In the late nineties, the Indian market witnessed a
huge frenzy in the 'TMT' sectors. More recently, real estate caught the fancy of the investors. S&P BSE SENSEX has captured all
these happenings in the most judicious manner. One can identify the booms and busts of the Indian equity market through S&P
BSE SENSEX. As the oldest index in the country, it provides the time series data over a fairly long period of time (from 1979
onwards). Small wonder, the S&P BSE SENSEX has become one of the most prominent brands in the country.

5
May - 2015
 Mutual Fund Corner
Current Statistics & Profile
Scheme for the Month
Latest NAV Rs. 54.9477 as on 27/04/2015
Franklin India Opportunities Fund
52-Week Range 32.13-54.48
LEVEL OF RISK: BROWN (HIGH RISK) 52-Week High 54.48
52-Week Low 32.12
FUND MANAGER: Anil Prabhudas and R Janakiraman
Fund Category Equity: Large & Mid Cap
The scheme aims to generate capital appreciation by Type Open Ended
capitalising on the long-term growth opportunities in the Launch Date 10/05/2004
India economy. The scheme will invest in a broad range of Net Assets (Cr) Rs. 381.00 crores as on 31/03/2015
stocks without any limitation either qualitative or quantitative Benchmark S & P BSE 200
and across market capitalization
Fund Style Concentration &
Valuation
Investment Details
Investment Style No. of Stocks 35
Minimum Investment Amount (Rs) 5000 Growth Blend Value
Top 10 Holdings (%) 49.00
Additional Investment (Rs) 1000
Top 5 Holdings (%) 28.98
SIP(Rs) 500
Top 3 Sectors (%) 50.89
Minimum Balance 0
Portfolio P/B Ratio 3.93
Minimum Withdrawal 1000
Portfolio P/E Ratio 21.89
Options Growth & Dividend

Expense Ratio (%) 2.76% (as on September 30, 2014) PORTFOLIO – Top 10 Holdings as on 31/1/2015
Exit Load (%) 1% for redemption within 365 days Sl. No. Name of Holding Instrument % Net Assets
1) HDFC Bank Financial 6.48
Trailing Returns 2) ICICI Bank Financial 6.45
As on Fund S&P BSE 200 Category 3) Yes Bank Financial 5.93
31 Jan 2014 Return Return
st
4) Larson & Toubro Diversified 5.71
Year to Date 2.36 -0.36 0.31 5) Axis Bank Financial 4.41
6) Lupin Healthcare 4.38
1-Month -3.19 -1.74 -2.47
7) Bharti Airtel Communication 4.36
3-Month -5.29 -6.96 -5.96 8) BPCL Energy 4.15
1-Year 46.72 25.34 34.86 9) Amara Raja Batteries Engineering 3.94
3-Year 24.11 17.37 21.36 10) Infosys Technology 3.20
5-Year 12.93 8.83 15.07 Top 10 Sector Weights in %age
Return Since Launch18.14%
Note : Return up to 1 year are absolute and over 1 year are annualized.

Asset Allocation
As on 29/12/14 % Net Assets
Equity 91.14
Debt 0.00
Cash & Cash Equivalent 8.86

DISCLAIMER
The information and opinions contained herein have been complied or arrived at based upon information independently of the company, and forward looking statements, opinions and expectations contained herein
obtained in good faith from sources believed to be reliable. Such information has not been independently are entirely those of Indbank and given as part of its normal research activity. Descriptions of any company
verified and no guarantee, representation of warranty, express or implied is made as to its accuracy, or companies or their securities mentioned herein are not intended to be complete and this document is not,
completeness or correctness. The information has appeared in various external sources / media for public and should not be construed as an offer or solicitation of an offer, to buy or sell any securities or other financial
use or consumption and is now meant only for members and subscribers. The views expressed and/or instruments. Indbank, its directors, analysts or employees do not take any responsibility financial or
events narrated/stated in the said information/ news items are perceived by the respective source. All otherwise, of the losses or the damages sustained due to the investments made or any action taken on basis
such information and opinions are subject to change without notice. This document is for information of this report, including but not restricted to, fluctuation in the prices of the shares and bonds, changes in the
purpose only. No one can use the information as the basis for any claim, demand or cause of action. currency rates, diminution in the NAVs reduction in the dividend or income, etc. IBMBS and its affiliates,
While we would endeavor to update the information herein on a reasonable basis, we do not undertake to officers, directors and employees including persons involved in the preparations or issuance of this report
advise you as to any change of our views expressed in this document. This report has been produced may from time to time have interest in securities there of, companies mentioned there in.

6
May - 2015
 Beginner's Corner
Mutual Fund – SIP, STP and SWP
Imagine a scenario when you want to invest a big lump sum amount in stock market? As markets are volatile and can go up
or down very soon, there is always risk of loosing a big chunk of your investment. To address such risk and to have financial
discipline, the world of investing has become more and more investor-friendly. Companies offering financial products are
regularly coming out with sophisticated products, schemes, plans and options in their offering to help make investing easier.
Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) are some of the such
offerings from Mutual Fund arena for investors. Let us first understand the concept of SIP.

Systematic Investment Plan (SIP) is a smart financial planning tool that helps you to create wealth, by investing small
sums of money every month/quarter, over a period of time. Investing at an early stage of life lets you enjoy the benefits of two
powerful strategies, i.e. Rupee Cost Averaging and the Power of Compounding.

Rupee Cost Averaging – with volatile markets, most investors remain skeptical about the best time to invest and try to
'time' their entry into the market. Rupee-cost averaging allows you to opt out of the guessing game. Since you are regular
investors, your money fetches more units when the prices are low and lesser when the prices are high. During volatile period,
it may allow you to achieve a lower average cost per unit.

Power of compounding: There are two kinds of investors in this world, those who understand compounding and those
who don't. Albert Einstein once said, "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who
doesn't... pays it." The rule for compounding is simple - the sooner you start investing, the more time your money has to grow.

Almost everyone who invests money claims to understand compounding but very few do. Compound interest arises when
interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This
addition of interest to the principal is called compounding. Although we use the word 'interest', the idea applies equally to all
forms of returns, not just those that are called interest.

The biggest thing that investors should appreciate about compounding is the enormous value of time. As your returns
themselves start earning, and then the returns on those returns themselves start earning, the profit starts piling up at an
enormous pace. For Example, If you started investing Rs. 1000 a month on your 40th birthday, in 20 years time you would have
put aside Rs. 2,40,000/-. If that investment grew by an average of 8% a year, it would be worth Rs. 5,90,000/- when you reach
60. However, if you started investing 10 years earlier, your Rs. 1000 each month would add up to Rs. 3,60,000/- over 30 years.
Assuming the same average annual growth of 8%, you would have Rs. 14,85,000/- on your 60th birthday - more than double
the amount you would have received if you had started ten years earlier!
Other Benefits of Systematic Investment Plans

Disciplined Saving – Financial discipline is the key to successful investments. When you invest through SIP, you commit
yourself to save regularly. Every investment is a step towards attaining your financial objectives.

Flexibility - While it is advisable to continue SIP investments with a long-term perspective, there is no compulsion.
Investors can discontinue the plan at any time. One can also increase/ decrease the amount being invested.

Long-Term Gains - Due to rupee-cost averaging and the power of compounding SIPs have the potential to deliver
attractive returns over a long investment horizon.

Convenience - SIP is a hassle-free mode of investment. You can issue a standing instruction to your bank to facilitate auto-
debits from your bank account.

SIPs have proved to be an ideal mode of investment for retail investors who do not have the resources to pursue active
investments. Today almost all Mutual Fund schemes offers SIP systems and hence you can go and opt for SIP for your mutual
fund investments to have advantage over growing cost by averaging them and encash power of compounding. We shall
discuss on STP and SWP options in our next issue, till then Happy Investing.

7
May - 2015
 CONTACT US
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Indian Bank, 91, 1st Main Road, Gandhi Nagar, Adyar, Chennai 600020, Ph: 044-24430080, Mobile : 94457 97116, adayar@indbankonline.com
Indian Bank, Ashok Nagar Branch, No. 69, 1st Avenue, Ashok Nagar, Chennai 600 083, Ph: 044-24717736, Mobile: 9445797142, ashoknagar@indbankonline.com
Indian Bank, Nanganallur Branch, Plot: 7B/8, 6 th Main Road, Nanganallur, Chennai 600 061, Ph: 044–22243317, Mobile: 9445797106, nanganallur@indbankonline.com
Indian Bank, Ground Floor, 21 North Mada Street, Chennai 600004, Ph: 044-24618718, Mobile: 9445797118, mylapore@indbankonline.com
Indian Bank, No. 30/275 Purasawalkam, Vepery, Chennai 600 007, Ph: 044 - 26420924, Mobile: 9445797145, purasawalkam@indbankonline.com
Indian Bank, Vellore Main Branch, 46-51, TKM complex, Katpadi Road, Vellore 632 004, Ph: 0416-2229785, Mobile: 94457 97161, vellore@indbankonline.com
Indian Bank Zonal Office, RBS Branch, Upper Ground Floor, World Trade Centre, Babar Road, New Delhi 110 001, Ph: 011–43537660/23414287, Mobile: 9871700661,
delhi@indbankonline.com
Indian Bank, Shantiniketan Branch, DDA Market, Shantiniketan, New Delhi - 110021. Ph: 011-2411 2289/40520442, Mobile: 98717 00663,
shantiniketan@indbankonline.com
Varma Chambers, Ground Floor, 11, Homeji Street, Fort, Mumbai 400 001. Ph: 022-22696386, Mobile : 93222 90461, mumbai@indbankonline.com
Indian Bank, Basement, No. 266 A Temple Avenue, Deodhar Road, Matunga East, Mumbai 400 019; Ph: 022 -24142443/44, Mobile: 9987609901;
matunga@indbankonline.com
Indian Bank, Pune Cantonment Branch, 35 Aurora Towers, East Wing, 9 Moledina Road, Pune 411 001, Ph: 020-26113687, Mobile: 7588682391, pune@indbankonline.com
Indian Bank, S C O 38-39, Madhya Marg, Sector 7C, Sector 19, Chandigarh - 160 019, Ph: 0172 - 2790042, Mobile : 97808 74260, chandigarh@indbankonline.com
Indian Bank, Maruti House, Opp. Popular, Old High Court Way, Ashram Road, Ahmedabad 380 009. Ph: 0 79-40076020, Mobile: 9925113060,
ahmedabad@indbankonline.com
I Floor, 31, Variety Hall Road, Coimbatore 641 001. Ph: 0422-2394747, 2391919, Mobile : 94457 97121, coimbatore@indbankonline.com
Indian Bank, Salem Fort Branch, Door No. 45, Sannathi Street, Fort, Salem 636 001, Ph: 0427–2222866, Mobile: 94457 97159, salem@indbankonline.com
Indian Bank, P O Box: 101, No. 83. Court St, Tiruppur 641 601, Ph: 0421-4325343/2230720, Mobile: 94457 97123, tirupur@indbankonline.com
Indian Bank, Door No. 434, D B Road, R S Puram, Coimbatore 641 002, Ph: 0422–2470602/4521720, Mobile: 9445797125, rspuram@indbankonline.com
Indian Bank, 130 Palani Main Road, Udumalpet 642 126, Ph: 04252–222293, Mobile: 9445797130, udumalpet@indbankonline.com
Indian Bank, Door No. 40/8005 & 40/8006, M G Road, Nr. Padma Junction, Ernakulam - 682 035, Ph: 0484–4061532/2362060, Mobile: 8089877417,
ernakulam@indbankonline.com
Indian Bank, City Branch, No. 10, Kempegowda Road (KG Road), Bangalore 560 009; Ph: 080-40941857 / 080-22879082, Mobile: 91603 30777/7382620474,
bangalore@indbankonline.com
Indian Bank, 35, Lady Curzon Road, Shivaji Nagar, Commercial Street, Bengaluru 560 001, Ph: 080-25589081, Mobile: 9844458007, bangalorecantt@indbankonline.com

Indian Bank, P B No: 109, K S Rao Road, Hampakatta, Mangalore 575 001, Ph: 0824–2412528/4261482, Mobile: 9483506528, mangalore@indbankonline.com
st
Indian Bank, 1 Floor, New No. 33 (Old No. 5J), Madurai Road, Thirunelveli Junction, Thirunelveli 627 001. Ph: 0462–4020010, Mobile: 9445797135,
tiruneveli@indbankonline.com
Indian Bank, No. 55 New Road, Sivakasi 626 123, Ph: 04562–279188, Mobile: 9445797137; sivakasi@indbankonline.com
Indian Bank, Rajapalayam Branch, 825 Tenkasi Road, Rajapalayam 626 117; Ph:04563-221333; Mobile: 9445797166; rajapalayam@indbankonline.com
Indian Bank, Zonal Office, Third Floor, 100/101, Avani Moola Street, Madurai 625 001, Ph: 0452–2332128 / 4514126; Mobile: 94457 97143, madurai@indbankonline.com
Indian Bank, No. 1, Vinayaka Nagar, K K Nagar, Madurai 625 020, Ph: 0452–2523126/4381140, Mobile: 94457 97141, kknagar@indbankonline.com
I Floor, 3-6-150, Himayat Nagar, Hyderabad 500 029. Ph: 040-23261167 / 68, Fax : 040-23261169, Mobile : 99663 83133/7382620474, hyderabad@indbankonline.com
Indian Bank, 201, Karan Center, Sarojini Devi Road, Secunderabad, Andhra Pradesh 500 003, Ph: 040–27811200, Mobile : 9390613060/7382620475,
secundarabad@indbankonline.com
Indian Bank, 127, Srinagar Colony road, Srinagar Colony, Hyderabad, Andhra Pradesh 500 073, Ph: 040-23753200, Mobile: 7382620476, srinagarcolony@indbankonline.com
Indian Bank, Brodipet Branch, 5-37-57, IV Line, Guntur 522 002; Ph:0863 - 2220143; Mobile: 7382620472, guntur@indbankonline.com
Indian Bank, Puducherry Main Branch, No. 288, 2 nd Floor, Amudha Surabhi, M G Road, Puducherry 605 001, Ph: 0413–2226822, Mobile: 9445797167,
puducherry@indbankonline.com
Indian Bank, Erode Main Branch, No. 9, Gandhiji Road, Erode 638 001, Ph: 0424–2268890, 4020335, Mobile: 9445797149, erode@indbankonline.com
Indian Bank, No. 451/3 Rajaji Street, Opp. Surya Agency, Kangeyam 638 701, Ph: 04257–222890, Mobile: 9445797152, kangeyam@indbankonline.com
C/O Indian Bank, Old No. 195 New No. 47, East Uthra Street, Srirangam, Trichy 620 006. Phone No: 0431 2431911/4200998.
Indian Bank, Sree Naga Arcade, No. 5 Williams Road, Cantonment, Trichy 620 001, Ph: 0431-2461632 / 4001170, Mobile: 9445797154, trichy@indbankonline.com
Indian Bank, 64 Beach Road, 1st Floor, Tuticorin 638 001, Ph: 0461-2331130, Mobile: 9445797156, tuticorin@indbankonline.com
Indian Bank Micro-State Branch, Ground Floor, No:1087, Mission Street, Thanjavur 613 001, Ph: 04362-232186, Mobile: 9445797162, thanjavur@indbankonline.com
Indian Bank, Kumbakonam Main Branch, T S No. 492-32, Dr. Besant Road, Kumbakonam 612 001; Ph: 0435- 2400110; Mobile: 9445797163;
kumbakonam@indbankonline.com
Indian Bank, 30-9-3, 1st Floor, Sarada St, Dabagardens, Visakhapatnam 530 020, Ph: 0891–2525775, Mobile: 7382620477, visakhapatnam@indbankonline.com
Indian Bank, Kozhikode Branch, LIC Building, S M Street, Kozhikode 673 001, Ph: 0495–2720070, Mobile: 9495605777, calicut@indbankonline.com
Indian Bank, Kollannur Devassy Building, Round East, Thrissur, Kerala 680 001; Ph: 0487 - 2331222; Mobile: 9495563300; thrissur@indbankonline.com
Indian Bank, 1st Floor, M G Road, Opp. Fortune Murali Park, Labbipet, Vijayawada 520 010. Ph: 0866–2490402, Mobile: 7382620470, vijayawada@indbankonline.com
Indian Bank, 3/1, R N Mukherjee Road, Sriram Chambers, Kolkata 700 001, Ph: 033 - 22624958, Mobile: 9433140916, kolkata@indbankonline.com

FRANCHISEE OFFICE
176 A, Coimbatore Main Road, Mettupalayam 641 301, Ph. : 04254 222788, Mobile: 9842286479, Contact Person: Mr. Ravi Rajan