A novel method for segmentation of heart sounds (HSs) into single cardiac cycle (S"1-Systole-S"2-Diastole) using homomorphic filtering and K-means clustering is presented. Feature vectors were formed after segmentation by using Daubechies-2 wavelet detail coefficients at the second decomposition level. These feature vectors were then used as input to the neural networks. Grow and Learn (GAL) and Multilayer perceptron-Backpropagation (MLP-BP) neural networks were used for classification of three different HSs (Normal, Systolic murmur and Diastolic murmur). It was observed that the classification performance of GAL was similar to MLP-BP. However, the training and testing times of GAL were lower as compared to MLP-BP. The proposed framework could be a potential solution for automatic analysis of HSs that may be implemented in real time for classification of HSs.