SLIP -2

To study the comparison of products of HDFC bank and ICICI bank.

TANVI KHANDELWAL (53)

 INTRODUCTION

SLIP 2 (Skill Linked Immersion Program) was conducted to enhance an individual’s skill set in
the area of our interest and specialization. It was a great learning experience as it helped us to
gain knowledge and to apply it and use it practically. It helped us to get a clear understanding of
the subject. It bridged the gap between classroom learning and practical corporate life. This
program helped in skill enrichment and develop a critical thinking attitude.

HDFC and ICICI are major financial and banking service organizations in India.The Housing
Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as
part of RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in
August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai,
India. HDFC Bank is a consistent player in the private sector bank and have a well balanced
product and business mix in the Indian as well as overseas markets. HDFC Bank Parivartan, A
step towards progress is a foundation through which core value of Sustainability, which drives
all their initiatives from Holistic Rural Development Programme, to Zero Investment
Innovation in Education Initiative, as well as annual Blood Donation Drive. The manging
director of HDFC bank is Mr. Aditya Puri. Net revenues (net interest income plus other income)
for the year ended March 31, 2017 were 45,435.7 crore, up by 18.5% over ` 38,343.2 crore for
the year ended March 31, 2016. The Bank’s distribution network was at 4,715 branches and
12,260 ATM’s. HDFC Bank has been adjudged the Best Bank for the year 2017 in Business
India’s 19th Best Bank survey.

Whereas, ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced
to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form
of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in
an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian industry. The principal objective
was to create a development financial institution for providing medium-term and long-term
project financing to Indian businesses. ICICI Bank is deeply engaged in human and economic
development at the national level. The Bank works closely with ICICI Foundation across diverse
sectors and programs. The Bank’s contribution to social sector development includes several
pioneering interventions, and is implemented through the involvement of stakeholders within
the Bank and the broader community. The Bank established the ICICI Foundation for Inclusive
Growth (ICICI Foundation) in 2008 ICICI BANK (For Year 2017)– 101.88 Billion Consolidated
Profit After Tax . Till 2017 the Branches were 4,850 and Atms were 13,882. The Chairman of
ICICI is M.K Sharma and CEO and MD is Chanda Kochhar.
 LITERATURE REVIEW
HDFC and ICICI bank offers various products as well as services in the market. The main product
base of HDFC Bank are in personal, NRI , SME(Small to medium scale enterprise) and wholesale,
whereas ICICI Bank deals in Personal ,Privilege, Wealth, Private, NRI, Corporate Business.

The comparison of the products can be seen as under-

PRODUCTS –

1. Accounts and Deposits – HDFC Bank focuses more on day-to- day management of money
and provides current account, savings accounts, salary account ,safe deposit locker, fixed
deposits dream deposits, overdraft against fixed deposits, rural account etc.
ICICI bank caters and focus on unique banking needs such as savings account, salary
account ,3-in-1 account ,pension account ,EEFC account , iWish flexible Recurring Deposit
,money multiplier FD, tax saving fixed deposits etc.
Both the banks provides different kinds of account which can be subclassified according to
the need and requirement of the customers. Various benefits as well as discounts can be
availed on different kinds accounts.

2. Loans - HDFC bank provides loans with minimal paperwork, quick eligibility checks, and
competitive interest rates. It gives loan for home loan ,car loan ,personal loan ,business loan
,gold loan , education loan etc.
ICICI Bank offers wide variety of Loans Products to suit our requirements such as Home
loan ,car loan ,personal loan, loan against securities, Pradhan Mantri Mudra Yojana, Stand
up India scheme etc.
Both the banks compete for providing loans to customers such as the rate of home loan of
HDFC bank as well as ICICI bank is 8.35%. To promote their products they have used various
strategies to attract the customers such as ICICI bank have introduced express home loans
within 8 hours.

3. Cards - HDFC provides various options for the users, cards provided by HDFC bank can be
broadly classified as Debit card , Credit card, prepaid cards, gift plus which gives discounts,
 cashback as well as rewards. Customers can easily apply online for the cards according to
their purpose and requirements.
ICICI bank provides cards for different uses which can be classified as Credit Card ,Debit
Cards, Commercial Cards ,Prepaid Cards ,Travel Cards ,Unifare Metro Cards also these cards
can be subclassified and selected on the bases of purpose.
The banks have tied up with different brands to provide various offers to its customers.
These range from straight discount to cash back to EMI. The offers are across travel, fashion
and home furnishings, and has participation of big brands like Yatra, Grofers,
bigbasket.com, Urban Clap, Indigo, nearbuy, Shopperstop, Pantaloons & Emirates, W and
Grabon.

4. INSURANCE- HDFC believes in safeguarding what you cherish and with that tagline they
provide insurance plans such as life insurance, health and accident insurance, motor
insurance, two wheeler insurance, travel insurance, home insurance. There are 29
individual products and also 9 different group products under the company’s
portfolio. HDFC Life Click 2 Protect 3D Plus is one of their successful insurance.
ICICI provides insurance which can be purchased online, plans provided by them are life
insurance , general insurance which covers Car Insurance ,Two wheeler Insurance , Health
Insurance ,Travel Insurance , Home Insurance. Apart from that they also provides Pradhan
Mantri social security scheme. ICICI Prudential iProtect Smart is one of their successful
insurance.

5. INVESTMENT - Investment is that product which is endorsed by the banks differently. HDFC
bank provides various investment products such as Mutual Funds, Equities & Derivatives,
Inflation Indexed National Savings Securities, Savings Bonds, Capital Gains Bonds, IPO
Application through ASBA. Apart from products they also provide services such as investrack
in which they do the risk profiling, expert advice, Comprehensive Portfolio Tracker. Public
Provident Fund (PPF) scheme, National Pension System (NPS) Sukanya Samriddhi Account
are also provided.
ICICI bank believes that every individual have specific needs and priorities to cater them
they offers fixed income products which includes Fixed Deposits, Public Provident Fund
,Sukanya Samriddhi Yojana (SSY) , Bonds, Senior Citizen Saving Schemes. The investment
products provided by ICICI are mutual fund, gold monetisation gold scheme, IPO through
ASBA.

Apart from these products there are unique products that the banks provides individually.

 HDFC BANK
1. PREMIUM BANKING - HDFC Bank offers premium banking services to meet your customised
banking needs and provides special privileges to suit your lifestyle at your door step.
Premium banking are classified into four categories which are Imperia Banking, Preferred
Banking, Classic Banking, Prime Banking.
2. FOREX - HDFC Bank helps in foreign exchange needs. Whether you are a traveller, a student
studying abroad or simply remitting money for business purposes, they offer prompt
assistance and efficient services. Their FOREX facility can be used for travel solutions, forex
help, remittance products and other Forex services.

 ICICI BANK

1. RURAL BANKING- ICICI Rural banking offers easy and hassle free loans for rural agriculture
needs. They also offer term loans for buying cattle, purchase of equipment for irrigation and
for other agricultural requirements. They also provide instant gold loans. They have also
created products that are simple, convenient and locally accessible so as to maximise the
comfort.

2. PERSONAL FINANCE MANAGEMENT – With the help of personal finance management

customers can manage their finances, track expenses. Different software and tools are used
that are iWealth ,My Money, My Goals. Personal finance management tool that enables
to take better control of money. It quickly helps to understand and plan your finances.

3. POCKETS – Pockets is a VISA- powered e-wallet that customer of any bank can use to
recharge mobile, send money, shop anywhere, pay bills and much more. It also comes with
a physical shopping card which can be used to shop on any websites or retail stores.
 LEARNINGS AND FINDINGS

Banking is the backbone of a modern economy .With the help of this report I was able to
gain basic knowledge about the various products that are available and provided by the banks.
It helped to understand the variety of products that are offered to the customers in the market.

The banks which I chose were HDFC bank and ICICI bank. They were highly competitive, which
also helped to understand the way the promote their product in the market for the customers.
Customer satisfaction is necessary in banking sector therefore variety of products in each
segements are available to cater all the different needs and requirements of the customers.It
can be observed that Banks not only have to reduce cost but also have to design innovative
strategy to attract customers.

HDFC companies, HDFC Standard Life (insurance), HDFC AMC (mutual funds) and HDFC
Securities (equities) add scalability to the bank's offerings.

On the other hand ICICI bank focuses on loan origination in the large corporate, SME and rural
agricultural segments and on non-fund based products and services. Besides the bank itself
being the market leader across retail loan portfolios, its subsidiaries ICICI Life Insurance, ICICI
General Insurance and ICICI AMC are leaders in their respective businesses.

The competitors of HDFC bank and ICICI banks are SBI bank and AXIS BANK.

ICICI bank have more branches and ATM over the country than does HDFC making it more
accessible to clients.

It was also found that ICICI Prudential is No. 1 private life player in India as it provides
Innovative insurance policies with rider benefits. It has a huge database of corporate clients,
retail customer, and bank customers of ICICI & Assets base of ICICI is more than Rs 1,
08,000Crores.

The main strategies of HDFC bank is to Deliver high quality customer services, Deliver more
products to more customers, Maintaining current high standards for asset quality through
disciplined credit risk management, Developing innovation products and services that attract
target customers.

The strategies of ICICI bank are ICICI is focusing on SME under wholesale segment. It is also
focusing on Rural banking under retail segment. Offering micro-credit through micro financing
institutions(MFI’s),micro insurance and micro-investment products .Financial inclusion through
business correspondents, farmers financing and integration of agri-value chain.

It can also be seen that there are various products that banks are providing through which they
are trying to differentiate themselves from rest of the banks. For example, HDFC is providing
premium banking services, on the other hand ICICI bank is providing pocket service.
 CONCLUSION
Banking is also now being regarded as a versatile financial planning tool. Research indicates that
Indians have four basic financial needsduring their life asset accumulation (such as buying a
house or car), protecting their family, securing their children’s education, and provision for their
retirement.Public and private sector bank plays a crucial role in the economy as it is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has
reached even to the remote corners of the country. This is one of the main reasons of India's
growth process.

HDFC and ICICI are two names that stand apart among others when we talk of private sector
banks in India. Both are fairly successful banks giving stiff competition to government banks.
The reason of their success lies in the fact that both have introduced a greater efficiency of
services and also host of new services that were demanded by consumers.
 BIBLOGRAPHY
 Website of HDFC BANK (https://www.hdfcbank.com/)
 Website of ICICI BANK (https://www.icicibank.com/)
 http://www.livemint.com/Money/YOtcCEHZZnoljVk3zyXwYI/ICICI-Bank-slashes-home-loan-rates-by-
up-to-30-basis-points.html
 https://www.icicibank.com/managed-assets/docs/about-us/ICICI-Bank-CSR-Policy.pdf
 https://www.easypolicy.com/life-insurance/term-insurance/articles/comparison-of-best-online-
term-insurance-plans.html
 http://www.businesstoday.in/current/deals/sbi-icici-hdfc-bank-card-user-here-are-the-offers-on-
smartphones-air-tickets-jewellery/story/261998.html
 https://www.scribd.com/doc/35335791/A-Project-Report-on-Comparison-Between-HDFC-Bank-
amp-ICICI-Bank