Customer preference & attributes towards Saving Account of HDFC Bank

A project report on

“Customer preference &
Attributes towards saving-Account”


Prepared by: Rajesh kr.Singh Mount Carmel school, Dwarka New Delhi-24

Customer preference & attributes towards Saving Account of HDFC Bank


If words are considered to be signs of gratitude then let these words Convey the very same. My sincere gratitude to Mr. Tushar Varshney, junior manager, HDFC BANK, Noida-29 and giving necessary directions on doing this project to the best of my abilities. I am highly indebted to Mr. Manish Panchal., Branch Manager, who provided me with the necessary information and also for the support extended out to me in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible.

Rajesh kr. singh

Customer preference & attributes towards Saving Account of HDFC Bank

Customer preference & attributes towards Saving Account of HDFC Bank

CHAPTER 1 INTRODUCTION ………………. ………………………..3-11 1.1 General Introduction ………………………………………………………..3 1.2 Industry Profile……………………………………………………………… 3 a. Origin and Development of the industry……………………………4 b. Growth and Present Status of the industry………………………...6 c. Future of the industry ………………………………………….…….9 CHAPTER 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 PROFILE OF THE ORGANISATION…………………..12-29

Origin of the Organization …………………………………………….. 13 Growth and Development of the Organization ……………………… 14 Present Status of the Organization ………………………………. 17 19

Functional Departments of the Organization ……………………...

Organization Structure and Organization Chart ……………………..22 Product and Service Profile of the Organization Competitors …….. 24 Market Profile of the Organization 28 DISCUSSIONS ON TRAINING - ………………………30-33

CHAPTER 3 3.1 3.2

Student's Work Profile (Roles and Responsibilities) ………………. 31 Description of Live Experience 32

CHAPTER 4 4.1 4.2 4.3 4.4 4.5


Statement of Research Problem………….. ……………………………35 Statement of Research Objectives ..……………………………...... Research Design and Methodology………………………………… Analysis of Data ………………………………………………. . .35 35 38

Summary of Findings …………………………………………………… 46 SUMMARY AND CONCLUSIONS …………………. 48- 52 50

CHAPTER 5 5.1 5.2

Summary of Learning Experience…………………………………..

Conclusions and Recommendations …………………………………. 50

APPENDIX ……………………………………………………………………………….52 BIBLOGRAPHY………………………………………………………………………….56

Customer preference & attributes towards Saving Account of HDFC Bank

General Introduction:The project was carried out for understanding the customer preference & attributes towards saving Account of HDFC Bank and its market

potential.HDFC Bank was established in the year 1994, they are old player in banking sector, The bank has two principle client segments – customer and asset management. The bank follows values such as – Integrity, teamwork, respect, professionalism, & Mission. The segment of bank we are considering here is- Corporate banking. The product out of which have chosen for research is Saving Accounts. This research helps us in finding out the customers view regarding the product and Services offered by the HDFC bank and awareness by promotion and also identifying the bank. market potential of the product offered by the HDFC

Customer preference & attributes towards Saving Account of HDFC Bank

1.2 Industry Profile:a.) Origin and development of the industry:Banking in India originated in the first decade of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. A couple of decades later, foreign banks such as Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered.

Customer preference & attributes towards Saving Account of HDFC Bank

First of all we must note the fact that these institutions have changed very much in character since their origin, and consequently nowadays perform many functions unknown to those of former times. The first banks seem to have arisen in connection with the business of exchanging money. In ancient times and especially in the Middle Ages the varieties of coins were greater even than at the present day, and they were much less perfectly and honestly minted. Specialists were, therefore, required to determine their exact value and equivalence and to exchange coins of one mintage for those of another, and their BANK were in great demand at fairs and other places where merchants of different nations met forpurposes of trade. Inasmuch as they kept their boxes or chests of coins on benches or "banken," the name bankers came to be applied to them. On account of their technical knowledge and the fact that they were obliged constantly to keep on hand considerable quantities of the precious metals, this business in the early Middle Ages was usually carried on by goldsmiths, but later it was sometimes assumed by the governments of large commercial cities, as, for example, by Amsterdam in 1609, by Hamburg in 1619, and by Nurnberg in 1621. Of these latter the Bank of Amsterdam was the most important and may be regarded as typical of these early institutions. From the earliest times also, bankers have been the chief agents through which foreign exchanges have been conducted. As dealers in coin and bullion they had international connections and a knowledge of international affairs not possessed by other merchants, and were, therefore, in a position to undertake the settlement of international accounts by means of orders drawn on bankers in other countries or other cities with whom they had regular business

Customer preference & attributes towards Saving Account of HDFC Bank

transactions. As keepers of other people's money they also promoted saving, and banks thus became in time the chief savings institutions of the country.

b. Growth and present status of the industry:Currently (2009), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.

Customer preference & attributes towards Saving Account of HDFC Bank

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake)after merger of New Bank of India in Punjab National Bank in 1993, 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively Introduction of many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. In 1995, the Brookings Institution published a paper entitled “The Transformation of the U.S. Banking Industry: What a Long, Strange Trip It’s Been.” Using a breathtaking array of facts and figures, the paper described in great detail the dramatic changes that had occurred in the U.S. commercial banking industry over the 15 years from 1979 to 1994. The banking industry was transformed during that period, according to the paper (p. 127), by “the massive reduction in the number of banking organizations; the significant

Customer preference & attributes towards Saving Account of HDFC Bank

increase in the number of failures; the dramatic rise in off-balance sheet activities; the major expansion in lending to U.S. corporations by foreign banks; the widespread adoption of ATMs; . . . and the opening up of interstate banking markets.” The paper went on to explain that most of these major changes in banking could be traced to two developments: (1) the extraordinary number of major regulatory changes during the period, from deposit deregulation in the early 1980s to the relaxation of branching restrictions later in the decade; and (2) clearly identifiable innovations in technology and applied finance, including improvements in information processing and telecommunication technologies, the securitization and sale of bank loans, and the development of derivatives markets. Other research would later confirm the paper’s assessments and its explanation of the course of events in the banking industry over the period 1979–1994.

Over the two decades 1984–2003, the struct ure of the U.S. banking industry indeed underwent an almost unprecedented transformation—one marked by a substantial decline in the number of commercial banks and savings institutions and by a growing concentration of

Customer preference & attributes towards Saving Account of HDFC Bank

industry assets among a few dozen extremely large financial institutions. This is not news. As mentioned above, the decline in the number of banking organizations has been ongoing for more than two decades and has been well documented in the literature.3 Nevertheless, a brief overview will serve to clarify both the scope of the decline and the increasing concentration of assets among the nation’s largest banking organizations

At year-end 1984, there were 15,084 banking and thrift organizations (defined as commercial bank and thrift holding companies, independent banks, and independent thrifts). By year-end 2003, that number had fallen to 7,842—a decline of almost 48 percent (figure 1). Distributed by size, nearly all the decline occurred in the community bank sector (organizations with less than $1 billion in assets in 2002 dollars), and especially among the smallest size group (less than $100 million in assets in 2002 dollars). Yet the community banking sector still accounts for 94 percent of banking organizations

Customer preference & attributes towards Saving Account of HDFC Bank

c. Future of the industry:The burden of reporting and other regulatory requirements will fall heavily and disproportionately on small banks unless remedial action is taken. Further advances in information technology will permit the development of new products, BANK, and risk-management techniques but may also pose important competitive and supervisory issues. Nonbank entities will continue to offer bank-like products in competition with banks, raising anew the question of whether banks are still “special” and, more fundamentally ,whether banks are sufficiently different from nonblank firms to justify the maintenance of a safety net for banks. It is useful, therefore, to try to chart the course of the banking industry in the next five to ten years and to consider what policy issues the industry and regulators will face. The authors of this study do not pretend to be clairvoyant. They are mindful of the many financial predictions that were once offered with confidence but turned out to be wrong or premature. This study is perhaps best described as an exercise in strategic thinking. Its approach is to analyze what has happened in the recent past, consider in detail reasons for expecting recent trends to continue or to change, and draw the consequences for bank and regulatory policies. As always, uncertainties abound, and

Customer preference & attributes towards Saving Account of HDFC Bank

events that may now appear fairly improbable may in fact shape the future. This paper closeswith a discussion of a number of such possible events. The future-of-banking study addresses three broad questions:

1. What changes in the environment facing banking can be expected in the next five to ten years?

2. What are the prospects for different sectors of the banking industry in this anticipated environment? Because the banking industry is not monolithic and different segments of the industry have, to some degree, different opportunities and vulnerabilities, the study considers separately the prospects for large, complex banking organizations; regional and other midsize banks; community banks; and limited-purpose banks.

3. What policy issues are the industry and regulators likely to face in the years ahead? Separate consideration is given to

Customer preference & attributes towards Saving Account of HDFC Bank

2.1 Origin of the Organization:Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. HDFC Bank Limited. The Group's principal activities are to provide banking and other financial BANK. The Group operates through four segments:

Customer preference & attributes towards Saving Account of HDFC Bank

Treasury, Retail Banking, Wholesale Banking and Other Banking Business. The Treasury BANK segment consists of net interest earnings on investments portfolio of the bank and gains or losses on investment operations. The Retail Banking segment serves retail customers through a branch network and other delivery channels. This segment raises deposits from customers and makes loans and provides advisory BANK to customers. The Wholesale Banking segment provides loans and transaction BANK to corporate and institutional customers. The Other Banking Operations segment provides BANK relating to credit cards, debit cards, third party product distribution and primary dealership business and other associated costs. The Bank was Incorporated on
30th August 1994. A new private sector Bank promoted by housing Development Corporation Ltd. (HDFC), a premier housing finance company. The bank is the first of its kind to receive

an in-principle approval from the RBI for establishment of a bank in the private sector. Certificate of Commencement of Business wasreceived on

10th October 1994 from RBI. The Bank transacts both traditional commercial banking as well as investment banking. HDFC, the promoter of the bank has entered into an agreement with National Westminister Bank Pc. and its subsidiaries (Nat west Group) for subscribing 20% of the banks issued capital and providing technical assistance in relation to the banks proposed banking business.

2.2 Growth and Development of the Organization:1994.

Customer preference & attributes towards Saving Account of HDFC Bank

On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarrington Pte. Ltd. Another 400,00,000 equity shares were allotted on private placement basis to Natwest Group on 9.5.1995. 500,00,000 shares were allotted to the public on 9.5.95 The Bank opened its first branch in Ramon House at Churchgate, Mumbai on January 16th. The Bank has created an efficient operating system using well tested state-ofthe-art software. 1995 70 No. of equity shares issued to subscribers to the Memorandum &Articles of Association on 30th August 1994. On the same date 500,00,000 equity

shares were allotted to HDFC promoters. 509,20,000 shares were allotted to HDFC Employees Welfare Trust and HDFC Bank Employees Welfare Trust on 22nd December, 1996 HDFC Bank has entered the banking consortia of over 50 corporates, including some leading multinational companies, flagship companies of local business houses and strong public sector companies.

HDFC Bank has set up a state-of-the-art dealing room to handle all transactions possible in Indian financial markets. The Certificates of Deposits were awarded a PP1+ rating which is the highest rating for short term instruments indicating superior capacity for repayment.


Customer preference & attributes towards Saving Account of HDFC Bank

- The Bank has opened its first branch in Aurangabad. HDFC Standard Life Insurance has entered into a memorandum of understanding with the Chennai-based Indian Bank. The Bank has launched the international Maestro debit card inassociation with Master Card. HDFC Bank will launch its credit card in June through link-ups with MasterCard and has entered into a strategic tie-up with HDFC Bank to provide Net banking BANK to online investors. Standard Chartered Bank, HDFC Bank and Bharat Petroleum Corporation have joined the eCash Forum which has been set up by the Smart Card Forum of India. HDFC Bank has launched a new campaign for its eage savings account. HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd. to offer online real time accounting BANK to small and Medium enterprises. Today HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in India, and all branches of the bank are linked on an online real-time basis. ] As of September 30, 2008 the bank had total assets of INR 1006.82 billion. For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore, up 41% from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at Rs.19,622.8 crore in 2008-09.

Customer preference & attributes towards Saving Account of HDFC Bank

2.3 Present Status of the Organization:-

March 2007 Citied Branches ATMs 228 535 1323

March 2008 316 684 1605

March 2009 452 1412 3275

Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India. Amalgamation In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the first two private banks in the New Generation Private Sector Banks to have gone through a merger. In 2008, RBI approved

Customer preference & attributes towards Saving Account of HDFC Bank

the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore. Head Office HDFC Bank Ramon House, 169, Backbay Reclamation, H T Parekh Marg, Churchgate Mumbai - 400020 Phone: +91 (22) 66316000, 66636000, 66316060 Fax: +91 (22) 22048834 Website:


HDFC Bank has always prided itself on a highly automated environment, be it in terms of information technology or communication systems. All the braches of the bank boast of online connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to retail clients. The bank makes use of its up-to-date technology, along with market position and expertise, to create a competitive advantage and build market share.

Capital Structure

Customer preference & attributes towards Saving Account of HDFC Bank

At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the equity and about 17.6% is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol 'HDB'

2.4 Functional Departments of the Organisation:The functional departments of the organization consists of the HR department, the administrative department and the executive department. The HR department of the organization consists of the people who employ the Persons who they think would be able to do justice with the job handled.The administrative department of the organization consists of the director and the manager of the organization. They preside the organization and control all the operations of the organization such that the organization could run in a smooth and effective manner. The executive department of the organization consists of the various employees Who execute the job undertaken by them. The employees consists of the team leaders, the Corporate financial consultants,. the telecallers, various staffs and junior staffs who are the main structural framework of the organization. The organization thus runs with the effective coordination of the HR department, the administrative department and the

Customer preference & attributes towards Saving Account of HDFC Bank

executive department such that the supervisors of the organization preside over the subordinate employees to give them directions about fulfilling their works most efficiently and effectively. Technical Consultancy Department: The Technical Consultancy Department is responsible for technical appraisal of industrial projects. The mission of the division is aimed towards the verification of the technical viability of industrial projects and assisting the Funds management in taking the decisions that require technical expertise. Moreover, it is responsible for conducting technical studies and rendering technical consultancy BANK to certain industrial sectors for the purposes of investigating modern technologies and productivity levels for local

manufacturing plants.

H R Department:
HDFC Human Resources department plans and direct for the employee population as well as they are having the following functions as: Hiring  Promotions  Reassignments  Position classification and grading  Salary determination  Performance appraisal review and processing  Personnel data entry and records maintenance

Customer preference & attributes towards Saving Account of HDFC Bank

 Policy development  Work permitting immigration visa program  Workers’ compensation

Finance Department:
The Finance Manager is responsible for all aspects of the accounting and financial administration of the HDFC, the supervision of the implementation of the HDFC financial policies, directives and procedures and the initiation of the financial plans within the guidelines of HDFC The department contains

several distinct sections, each of which is responsible for a proportion of the activities taking place within the finance department.

Marketing Consultancy Department:
The Marketing Consultancy Department plays and important role within the Fund as it studies and analyzes marketing information in order to build solid base for management decisions. The division also assists projects sponsors in formulating solid marketing strategies to improve their industries and strengthen their position in the local and international markets.

Customer preference & attributes towards Saving Account of HDFC Bank

Research Department:
The Research Department is having the capacity to act through four composing units i.e., the market research unit, economic studies unit, and statistical studies unit. It is the mission of the division to provide support BANK for information and consultancy to the senior management and division in the areas of economic, statistical and marketing information and consultancy through data analysis, processing of economic and statistical data, market research studies and publishing related periodical reports.

2.5 Organization Structure and Organization Chart:The organization structure of the company HDFC is such that it comprises of the departments and the employees in the hierarchical order so that they are able to perform their functions and duties smoothly and effectively doing their job in a manner in which it should be done. The organization is headed by the administrative department which coordinates and controls the executive department. The executive department is a link from the top and the bottom comprising of the lower level employees such that they work together to fulfill the common objective of getting business from the persons who get in touch with them and see to it that they are provided with the best of the BANK which constitute giving financial advise to providing Account to the customers. The lower level employees and the corporate financial consultants work together to see to it that the database for providing financial BANK to sufficient number of people is made .They work together to see to it that this database is followed and worked upon such that more and more number of people get themselves avail the financial BANK of the organization. Team leaders who form the part

Customer preference & attributes towards Saving Account of HDFC Bank

of the administrative department of the Organization make sure that the clients that turn up for the financial BANK are dealt with most efficiently and effectively.

The organizational structure is well planned out and it follows a simple format which is follows:
Organization Chart:-

Customer preference & attributes towards Saving Account of HDFC Bank

Each team lead has a team comprising only of both senior as well as junior market research analyst who aid the team lead in the entire market research process as it has been discussed previously. This is the basic organizational structure followed by HDFC BANK.

Customer preference & attributes towards Saving Account of HDFC Bank

2.6 Product and service profile of the organization:HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from Funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing Goodwill of the company. The products of the company are categorized into various sections which are as follows:

Personal Banking Savings Accounts Salary Accounts Saving Accounts Fixed Deposits Demat Account

Customer preference & attributes towards Saving Account of HDFC Bank

Safe Deposit Lockers Loans Credit Cards Debit Cards Prepaid Cards Investments & Insurance Forex Services Payment Services NetBanking InstaAlerts MobileBanking InstaQuery ATM PhoneBanking NRI Banking Rupee Savings Accounts Rupee Saving Accounts Rupee Fixed Deposits Foreign Currency Deposits

Customer preference & attributes towards Saving Account of HDFC Bank

Accounts for Returning Indians Quick remit (North America, UK, Europe, Southeast Asia) India Link (Middle East, Africa) Coequal Lock Box In today’s world many companies have emerged who have taken a serious note on the importance of market research and he advantages of using it for the better growth and development of the company. Hence, our competitors are those company’s who are in the market research and development field as well as the consultancies, since they also make use of market research and business developers. The products and BANK of our competitors are as follows:

Customer Satisfaction Analysis:

Customer analysis involves gathering data about the customers and their characteristics. They also conduct tailored customer satisfaction surveys to gauze customer satisfaction.


These BANK are used by the competitors in order to gather external information and research the possible effect on the competitiveness of company. C.

Customer preference & attributes towards Saving Account of HDFC Bank

D. Product Research BANK: The conduction of extensive product research by this service helps the competitors to find out the marketability of a product or service. The research can be utilized to leverage the major decisions of a company on the marketing of its products.

Advertising Research BANK:

Advertising research strives to gain valuable information about the effects and reach of advertising the products in different forms of media.

Given below are the steps we follow for every assignment we take up:
1. The timetable for the search is indicated and the search process commences. 2. Target companies are examined, using any prior information provided by business development executives in conjunction with sources of information and prospective companies already known to us, augmented with original study by our search team. 3. We maintain a regular channel of communication with the client to keep them apprised of the results emerging.

Customer preference & attributes towards Saving Account of HDFC Bank

2.7 Market profile of the organization:HDFC Bank Limited provides various financial products and services. It operates in three segments: Retail Banking, Wholesale Banking, and Treasury. The Retail Banking segment provides various deposit products, including savings accounts, current accounts, fixed deposits, and demat accounts. It also offers auto, personal, commercial vehicle, home, gold, and educational loans; loans against securities, property, and rental receivables; and health care finance working capital finance, construction equipment finance, and warehouse receipt loans, as well as credit cards, debit cards, depository, investment advisory, bill payments, and transactional services. In addition, this segment sells third party financial products, such as mutual funds and insurance, as well as distributes life and general insurance products through its tie-ups with insurance companies and mutual fund houses. The wholesale banking segment provides loans, non-fund facilities, and

transaction services to large corporate, emerging corporate, small and medium enterprise, supply chain, public sector undertaking, central and state government departments, and institutional customers. It offers deposit and transaction banking products, supply chain financing, working capital and term finance, agricultural loans, and funded, non-funded treasury, and foreign exchange products. These segments services include trade services, cash management, money market, custodial, tax collection, and electronic banking.

Customer preference & attributes towards Saving Account of HDFC Bank

In addition, it provides correspondent bank services to co-operative banks, private banks, foreign banks, and regional rural banks; and wealth management products for non-resident Indians. The Treasury Services segment operates primarily in areas, such as foreign exchange, money market, interest rate trading, and equities. As of March 31, 2009, HDFC Bank had a network of 1,412 branches and 3,295 automated teller machines in 528 cities in India. The company was founded in 1994 and is based in Mumbai, India. In today’s growing world everyone needs to diversify their business so as to keep in touch with the rapid development. By analyzing the growing concerns of the market, HDFC has clients varying from investment banking sector, retail, web designing companies, etc. Due to this rapid development HDFC Group has many teams working for the above mentioned sectors. HDFC Bank began operations in 1995 with a simple mission: to be a "Worldclass Indian Bank". We realized that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

Customer preference & attributes towards Saving Account of HDFC Bank

3.1 Student’s work profile
Role and Responsibilities:-

The work profile of the student or the roles and responsibilities that are being handled by the student on his internship programmed at HDFC BANK. The first day and during the first week of the internship programmed the new employee of the HDFC BANK was welcomed by giving an induction programme in order to make him understand his role and responsibilities during his stay in the organization. Being appointed as a Financial Corporate Consultant at HDFC BANK during the internship programme my duty or the role is to meet 5 clients, collecting

Customer preference & attributes towards Saving Account of HDFC Bank

financial health check, analyzing and giving them financial planning how their net asset value will be increase and how they fulfill their short-term and longterm financial goal so that it can be assessed that which ACCOUNT they need suiting their financial obligations. Leads and databases created by the students have to be used by them in order to convince people of different age groups to take account according to their needs and suitability. • The student calls people according to the leads and database created by him and convinces people to take the account. During the absence of the recovery executives/collection executives, it will be my duty and responsibility to meet the customers against payments apart from my regular job profile and reporting the same to my team leader at HDFC BANK. • To explain the customers how a particular account would help them to make their lives more secure providing security to them. • I use all the financial knowledge that has been given by the company and I has as a MBA student and a student of Mar. so that the customer realizes that he definitely needs to take a particular account. • Must educate the clients about risks and various possible scenarios so that the clients don’t harbor unrealistic expectations.

3.2 Description of live experience:-

Customer preference & attributes towards Saving Account of HDFC Bank

The office of HDFC BANK is blessed by brilliant and skilled professionals and team leader who have the responsibility of handling the Financial Corporate Consultants. The team leader provides the particular day’s plan of action and then guide show to go about for executing the plan of action successfully .Till the time a Financial Corporate Consultant is in the office he receives the valuable suggestions and insights of the team leader. This prepares him for the day’s Work and provides him the necessary directions to achieve not only the target of the day but the target of the month. In the office the Financial Corporate consultant make calls continuously to fix the follow-up appointments so that on the basis of the financial health check collected by him and also getting the follow-up appointments from the telesales she goes in the field for making up the appointments. The financial corporate consultants provide the persons met the basics of why he should take a particular ACCOUNT to provide to him.

Customer preference & attributes towards Saving Account of HDFC Bank

4.1 Statement of research problem:PROBLEM DEFINATION: Sales Executives were with good background human being and through rigorous process of recruitment but still not able to perform up to the expectation level of company, HR is not able to sort out the problem why the performance is not coming even after giving the full marketing support. The communication technique and dealing with the customers is also a problem to the sales executives.


Customer preference & attributes towards Saving Account of HDFC Bank


 o find out the customer preferences while opening Savings A/c. T To study brand image of the bank. To increase the business of the bank.

4.3 Research Design and Methodology

Primary data source: All the people from different profession were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire. Secondary Data Source: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the company’s database and website of the company.

SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units: Customers Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview. SAMPLE SIZE:

Customer preference & attributes towards Saving Account of HDFC Bank

My sample size for this project was 100 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 100 respondents.

RESEARCH LIMITATIONS: It was not possible to understand thoroughly about the different marketing aspects of the Financial Consultant within 60 days. As stipend, money was not given it was difficult to continue the project work. All the work was limited in some limited areas of Delhi so the findings should not be generalized. The area of research was Delhi and it was too vast an area to cover within 60 days. All the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group during my job training. I have collected data from people linked with different profession at Bangalore.

4.4 Data Analysis
Q 1:What is your Monthly Transaction in your account ? Monthly transactions 5-20 lakhs 20-40 lakhs 40 lakhs and above No. of respondents 28 59 13 % (percentage) 28% 59% 13%

Customer preference & attributes towards Saving Account of HDFC Bank

Total Chart 1:



70% 60% 50% 40% 30% 20% 10% 0% 05L- 20L 20L - 40L 40L - Above 05L- 20L 20L - 40L 40L - Above

Analysis: • • • 59% respondents gave their answer in 20-40 lakhs transactions. 28% respondents gave their answer in 0-20 lakhs transactions. 13% respondents gave their answer in 40 lakhs and above transactions.

Question 2

Do you have a Saving Account? Response Yes No No. of respondents 97 3 % 97% 3%

Customer preference & attributes towards Saving Account of HDFC Bank Chart 2:





Analysis: 97% respondents have the saving accounts and only 3% do not have saving account.

Question 3 In Which Bank? Bank Kotak mahindra HDFC Co-operative ICICI Nationalized
Chart 3

No. of respondents 3 33 48 5 31

% 3% 33% 48% 5% 31%

Customer preference & attributes towards Saving Account of HDFC Bank

Kotak Mahindra Bank, 3% Co- Operative Bank, 48%

HDFC, 33%

ICICI, 5% Nationalized, 31%



Nationalized Co- Operative Bank Kotak Mahindra Bank

Analysis: 48% have saving account in co-operative, 3% in kotak mahindra, 33% in HDFC, 5% in ICICI, and 31% in nationalized bank.
Question 4

Which Factors do you consider for opening a Savings Account? No. of respondents 10 20 13 10 8 7 2 16 7 3 2 2 100 % 10 20 13 10 8 7 2 16 7 3 2 2 100

Accessibility Minimum balance DD/pay order Free cheque Debit card Cash deposit Cheque pick up Net banking Mobile banking At per cheque NEFT RTGS Total

Customer preference & attributes towards Saving Account of HDFC Bank

Chart 4

20 18 16 14 12 10 8 6 4 2 0

Acces ibility s Minim um balance DD/pay order F cheque ree Debit card C h depos as it C heque pickup Net banking Mobile banking At per cheque NE T F

Customer preference & attributes towards Saving Account of HDFC Bank

Analysis: Respondents gave their answer 10% respondents gave their answer in accessibility, 20% Minimum balance, 13 % DD/pay order,10% Free cheque, 8% Debit card, 7% Cash deposit, 2% Cheque pick up, 16% Net banking, 7% Mobile banking, 3% At per cheque, 2% NEFT, 2% RTGS.
Question 5

Which mode of transaction do you avail of frequently? Response Pay order DD Cheque Total
Chart 5

No. of response 12 22 76 100

% 12 22 76 100

Pay Order, 12%

DD, 32%

Cheque, 76%



Pay Order

Analysis: 12% Response in pay order, 32% like DD, and 76 % costumer want from cheque mode.

Customer preference & attributes towards Saving Account of HDFC Bank

Question 6 Which types of transaction do you make ? Response Intercity Outside city Both Total No. of respondents 33 15 52 100 % 33 15 52 100

Chart 6

Inter city, 33% Both 52% ,

, 15%


Outsid e

Customer preference & attributes towards Saving Account of HDFC Bank

33% account holder transaction intercity, 52 % Both, and 15% outside city.

Question 7 Does your bank assist you in case of any problem? Response Yes No Total No. of respondents 90 10 100 % 90 10 100

Chart 7





Analysis: 90% say yes bank will assist you in case of any problem, only 10% say no.

Customer preference & attributes towards Saving Account of HDFC Bank

4.5 Summary of Findings The final draft of the questionnaire was prepared on the basis of the observations from the pilot study. These were then finally filled by 100 customer, for the conclusive study. Finally the data collected was fed into the data analysis to be analyzed using statistical techniques. Types of Primary Data collected: Socioeconomic Characteristics: characteristics are sometimes called “states of being” in that they represent the type of people. The factors on which we are working are occupation. Monthly transaction is also an important parameter but it is difficult to verify. Although the amount of money that business unit earns in a month is an absolute, not a relative quantity but it is a sensitive topic in our society and it is difficult to determine. Attitudes/Opinions: Through the questionnaire we have tried to get hold of business preference, inclination and requirement. Attitude is an important notion in the marketing literature, since it is generally thought that the attitudes are related to the behavior of businessmen. Motivation:

Customer preference & attributes towards Saving Account of HDFC Bank

Through the questionnaire we have tried to find the hidden need or want of businessmen and have tried to find if these people can be tapped as the potential customer for HDFC Bank. Behavior: Behavior concerns what subjects have done or are doing. Through the questionnaire we have tried to find out the behavior of the individuals regarding the product and their responses. If the responses are favorable then the person can be said to be our potential customer. The primary data serves as an important tool to measure the behavioral trend of the customer. It helps in answering some of the vital Questions. Obtaining the Primary Data: The data collection was primarily done through communication.

Communication involves questioning respondents to secure the desired information, using a data collection instrument called questionnaire. The questions were in writing and so were the responses. Versatility: It is the ability of a technique to collect the information on the many types of primary data of interest to marketers. It has also been found that some of the people do not answer truthfully to all the questions especially in the case of the personal details

Customer preference & attributes towards Saving Account of HDFC Bank



5.1Summary of Learning Experience

Almost all the Banks offer similar features and facilities with their Savings accounts. There are certain reasons for existing customers of Saving Account of any Bank to shift to another Bank.

Customer preference & attributes towards Saving Account of HDFC Bank

The level of service in terms of delivering whatever is promised, fast response in case of problems, is the most important benefit that the customers seek, from the Bank they have a Saving Account with.

Network reach and visibility of a Bank is a very important criterion for the customer while opening a Saving Account. We can also conclude from our analysis that network reach in terms of Branches and ATMs is directly proportional to the market share in case of Private Players.


In case of a new customer, if a bank approaches it first for opening a Saving Account with them, then there is a good chance for the bank of getting many future businesses and cross sales from the deal.

3. Aggressive Marketing is the key to increasing the market share in this area, since the market has a lot of potential both in terms of untapped market . Conclusions and Recommendations

1. Contract Sales Executive (CSE) should be trained to explain the product features and its value added services to make customer’s product selection convenient.

2. Contract Sales Executive (CSE) should recommend right product to the right customer so as to ensure a high degree of satisfaction among the customer.

Customer preference & attributes towards Saving Account of HDFC Bank

3. The bank needs to make people aware about there products and the basic benefits they can derive out of it. And also the differential features of its savings account as compared to other banks.70% of the people did not even know about the concept, benefits and features of its saving accounts.

4. The bank should also target small business unit for whom maintenance of the AQB is not a problem as this segment is not much penetrated.

5. Though the bank offers free doorstep banking once a day this fact is also not known to many customers or they still do not trust this service what ever the reason the bank can popularize this service to gain an edge over nationalized banks and Co-operative Banks.

6. Quality of service has been rated highly important by all demofigureic factors as a reason for banking with a particular bank, Standard Chartered needs to improve the services provided to its existing customers before attracting more in the future and use word of mouth as a promotional tool to increase the sales potential of its savings account.

Some of the limitations of the project are listed as below:

Customer preference & attributes towards Saving Account of HDFC Bank

1. The time bound period is the major limitation in research projects. 2. Due to the financial and time constraints a cluster analysis of the population so as to get better results was not feasible.

The research conduct in Bangalore city only.

4. It was difficult to break the ice with the common people initially. It was a daunting task to convince them to fill in the personal details of the questionnaire where they have to mention the monthly income, occupation etc. 5. To convince the people for a proper interviewing process is also difficult. 6. Compilation of data on competitor analysis was difficult due to nonavailability of correct information.

7. The figures have been taken as approximations.

Customer preference & attributes towards Saving Account of HDFC Bank


Customer preference & attributes towards Saving Account of HDFC Bank

Name of Respondent _________________________________

Contact No. _______________________


Monthly Transaction?



Do you have saving Account?

(a) Yes



3. If Yes Which bank’so ICICI o HDFC o Kotak Mahindra Bank o Nationalized
o o

Other Banks _________________ Co-Operative Banks___________________

Customer preference & attributes towards Saving Account of HDFC Bank

4. Which Factors do you consider for opening a saving Account

o o o o o o

Accessibility Minimum Balance DD/ Pay Order Free Cheque Debit Card Cash Deposit

o o o o o

Cheque Pick up Net Banking Mobile Banking At Par Cheques NEFT RTGS


Which mode of transaction do you avail frequently? (a) Cheque ( b) DD (c) Pay Order


Which type of transaction do you made (a) Inter city (b) Intra city (c) Both


Does your bank assist you in case of any problem (a) Yes (b) No

Customer preference & attributes towards Saving Account of HDFC Bank

8.. What are the additional Benefits do you expect from a Saving Account? _____________________________________________________________ _____________________________________________________________ ___________________.

Date___________________ Place__________________ Signature

Customer preference & attributes towards Saving Account of HDFC Bank

1.BOOKS & AUTHORS · Marketing Management 2. NEWS PAPERS · Times of India · Financial Express 3. WEBSITES ·

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