SUMMER TRAINING REPORT ON

DEGITALISATION

HDFC BANK

In Partial Fulfilment for the award of the degree of

Master of Business Administration

Session - 2018-2020

Under the Guidance of: Submitted By:

MBA-3rd Semester

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 DECLARATION

I, ………………….., student of IIMT Groups OF Colleges Greater

Noida(U.P.) 2018-2020 Batch declare that every part of the Project
“DIGITALISATION” AT HDFC BANK that I have submitted is original.

I was in regular contact with the nominated guide and contacted several times for
discussing the project.

Date of project submission: ________________________

…………………..

(Signature of the Student)

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 PREFACE

The banking landscape as we know it is changing. A new wave of

technology is revolutionizing the way customers engage with their finances.
From social to mobile capabilities, banks are having to rethink the way they
do business to deliver a better customer experience and remain competitive.

The recent introduction of open banking and the Payments Services Directive
regulation is accelerating this transformation by placing power in the hands of
customers. Banks must now allow customers to share their financial data, such
as spending habits and regular payments, with authorized third-party
providers if customers wish to do so. To navigate this unchartered reality,
banks must ensure their digital offering is fit for purpose.

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 ACKNOWLEDGEMENT

I thank to HDFC BANK for giving me the opportunity to work for

this project and I would like to express my sincere thanks to Mr. Venkata
kalyan(Manager) and who helped, inspired and mentored me and without
their help this project report would not have taken its current shape. Under
their brilliant untiring guidance I could complete the project being undertaken
on the “DIGITALISATION” successfully in time. Their meticulous attention
and invaluable suggestions have helped me in simplifying the problem
involved in the work. I would also like to thank the overwhelming support of
all the people who gave me an opportunity to learn and gain knowledge about
the various aspects of the industry.

I once again express my heartfelt in debtness to all-aforesaid. Any omission or

error in acknowledgment is inadvertent. For such oversights and lapses, I
tender unconditional apology.

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 TABLE OF CONTENTS

1. Banking structure in India

2. Introduction
3. Organization Profile
4. Objective of the study
5. What is digital banking
6. Challenges of digital banking
7. SWOT analysis
8. Questionare
9. Conclusion
10. Recommendations
11. Limitation of the project
12. Learning from the project
13. Bibiliography

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 1. BANKING STRUCTURE IN INDIA
In today’s dynamic world banks are inevitable for the development of a
country. Banks play a pivotal role in enhancing each and every sector. They
have helped bring a draw of development on the world’s horizon and
developing country like India is no exception.
Banks fulfills the role of a financial intermediary. This means that it
acts as a vehicle for moving finance from those who have surplus money to
(however temporarily) those who have deficit. In everyday branch terms the
banks channel funds from depositors whose accounts are in credit to
borrowers who are in debit.
Without the intermediary of the banks both their depositors and their
borrowers would have to contact each other directly. This can and does
happen of course. This is what has lead to the very foundation of financial
institution like banks.
Before few decades there existed some influential people who used to
land money. But a substantially high rate of interest was charged which made
borrowing of money out of the reach of the majority of the people so there
arose a need for a financial intermediate.
The Bank have developed their roles to such an extent that a direct
contact between the depositors and borrowers in now known as
disintermediation.
Banking industry has always revolved around the traditional function of
taking deposits, money transfer and making advances. Those three are closely
related to each other, the objective being to lend money, which is the
profitable activity of the three. Taking deposits generates funds for lending
and money transfer services are necessary for the attention of deposits. The
Bank have introduced progressively more sophisticated versions of these
services and have diversified introduction in numerable areas of activity not
directly relating to this traditional trinity

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 INDIAN BANKING INDUSTRY ANALYSIS:

The banking scenario in India has been changing at fast pace from
being just the borrowers and lenders traditionally, the focus has shifted to
more differentiated and customized product/service provider from regulation
to liberalization in the year 1991, from planned economy to market.

Economy, from licensing to integration with Global Economics, the

changes have been swift. All most all the sector operating in the economy was
affected and banking sector is no exception to this. Thus the whole of the
banking system in the country has undergone a radical change. Let us see how
banking has evolved in the past 57 years of independence.

After independence in 1947 and proclamation in 1950 the country set

about drawing its road map for the future public ownership of banks was seen
inevitable and SBI was created in 1955 to spearhead the expansion of banking
into rural India and speed up the process of magnetization.

Political compulsion’s brought about nationalization of bank in 1969

and lobbying by bank employees and their unions added to the list of
nationalized banks a few years later.

Slowly the unions grew in strength, while bank management stagnated.

The casualty was to the customer service declined, complaints increased and
bank management was unable to item the rot.

In the meantime, technology was becoming a global phenomenon

lacking a vision of the future and the banks erred badly in opposing the

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technology up gradation of banks. They mistakenly believed the technology
would lead to retrenchment and eventually the marginalization of unions.

The problem faced by the banking industry soon surfaced in their

balance sheets. But the prevailing accounting practices unable banks to dodge
the issue.

The rules of the game under which banks operated changed in 1993.
Norms or income Recognition, Assets classification and loan loss
provisioning were put in place and capital adequacy ratio become mandatory.
The cumulative impact of all these changes has been on the concept of state
ownership in banks. It is increasingly becoming clear that the state ownership
in bank is no longer sustainable.

The amendment of banking regulation act in 1993 saw the entry of new
private sector banks and foreign banks.

MAJOR PLAYER IN INDIA

1. HDFC BANK LTD

2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10.INDUSIND BANK LTD
11.YES BANK LTD

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 2.INTRODUCTION
In this fast growing world even the banking industry is not behind, the
banks are converting themselves from fully physical branches to fully digital
branches. Firstly with the introduction of CORE banking it became possible to
do the banking transaction from any branch of the bank and now with the
emergence of digital banking the whole banking industry has changed. The
customers can do most of the transactions at home or at their comfort from
any place in the world with the help of internet. Digital banking provides 24x7
access whereas earlier it was only possible to do the transactions during the
banking hours.

HDFC bank is one of the leading banks in which digital banking is

growing at a fast rate. So in this process of converting from banking through
branches to banking digitally the customers have to be educated about the
process these digital transactions are done. Therefore as an intern of HDFC
Bank the job is to help the customers to convert swiftly from physical to
online banking. There are various types of customers with different reasons
for not using digital banking, the job involves helping them overcome this
resistance and solve the problem which they are facing while using digital
banking.

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 Aditya Puri is the Managing Director of HDFC Bank, India's largest
private sector bank. He assumed this position in September 1994, making him
the longest-serving head of any private bank in the country. He transformed
HDFC Bank from a start-up into one of the world‟s top most banks,
generating high returns by maintaining lending standards while expanding
beyond corporate loans into a full-service retail bank. India today magazine
ranked him 18th in India‟s 50 most powerful people of 2018 list.

3.ORGANISATION PROFILE
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
liberalization of the Indian Banking Industry in 1994. It was founded by
Hasmuk Bhai Parakh in the year 1977. The bank was incorporated in August
1994 in the name of 'HDFC Bank Limited', with its registered office in
Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. HDFC bank got its IPO in the year 1995.

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 Network
HDFC Bank is headquartered in Mumbai. As of March 31, 2019, the
Bank's distribution network was at 5,103 branches across 2,748 cities. All
branches are linked online on a real-time basis. Customers across India are
also serviced through multiple delivery channels such as Phone Banking, Net
Banking, Mobile Banking, and SMS based banking. The Bank's expansion
plans take into account the need to have a presence in all major industrial and
commercial centers, where its corporate customers are located, as well as the
need to build a strong retail customer base for both deposits and loan
products. Being a clearing / settlement bank to various leading stock
exchanges, the Bank has branches in center’s where the NSE / BSE have a
strong and active member base. The Bank also has a network of 13,160 ATMs
across India. HDFC Bank's ATM network can be accessed by all domestic
and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus
and American Express Credit / Charge cardholders.

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 Products and Services
Market leader in e-commerce, HDFC Bank provides a series of digital

offerings like - 10 second personal loan, PayZapp, SME Bank, 30-Minute

Auto Loan, 15-minute Two-Wheeler Loan, e-payment gateways, Digital
Wallet, etc.

HDFC Bank provides a number of products and services which includes

wholesale banking, Retail banking, Treasury, Car Loans, Two Wheeler Loans,
Personal loans, Loan against Property and Credit Cards.

The latest entry in the league is 'Project AI' under which HDFC Bank would
deploy robots at select bank branches. These robots will offer options such as
cash withdrawal or deposit, Forex, fixed deposits and Demat services
displaying on the screen to persons coming into the branch.

The HDFC Bank offers different types of accounts and deposit accounts to
meet everybody‟s requirements be it a simple saving account or a salary

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account, a current account or a premier account, a fixed deposit account or a
recurring deposit account, all types of accounts are available with the HDFC
bank.

HDFC Bank Savings Account

Savings account is useful to store the surplus money. The bank offers savings
accounts under various types starting from basic accounts to premium
accounts with variety of features. The interest rates on the Savings Account
are 3.5% p.a. which is calculated daily on the end of day balance.

The following savings accounts are offered by HDFC bank:

• Savings Max Account.

• Regular Savings Account.

• Women Savings Account.

• Kids Advantage Account.

• Senior Citizens Account.

• Family Savings Group Account.

• Basic Savings Bank Deposit Account.

• BSBDA Small Account.

HDFC Bank Salary Accounts

The bank offers different types of salary accounts with various features
provided to the accountholders like free insurance coverage, credit card
facility. The different types of Salary Accounts are:

• Premium Salary Account.

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• Regular Salary Account.

• Defense Salary Account.

• Salary Family Account.

• Classic Salary Account.

• Reimbursement Account.

• Basic Savings Bank Deposit Accounts – Salary.

Current Accounts

Current accounts are required by businessmen and professionals who have

regular transactions with the bank. The account deals mainly in liquid deposits
and allows unlimited number of transactions every day like funds being
withdrawn or cheques being written against the account without worrying
about the balance in the account. Professionals, traders, SME businessmen,
agricultural businesses can avail various benefits like fund transfers between
all HDFC Accounts, free local collections through cheque and fund transfers
as well as easy 13 inter-city banking. Moreover, the bank also offers a range
of Current Accounts to suit individual preferences like:

• ULTIMA Current Account.

• Supreme Current Account.

• Apex Current Account.

• EZEE Current Account.

• Max Current Account.

• Agri Current Account.

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• Plus Current Account.

• Current Account for Hospitals and Nursing Homes.

• Trade Current Account.

• Current Account for professionals.

• Premium Current Account.

• Merchant Advantage Plus Current Account.

• Regular Current Account.

• Merchant Advantage Current Account.

• Flexi Current Account.

• Institutional Current Account.

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 PRODUCT OF HDFC BANK
ACCOUNT & DEPOSITS SERVICE
Banking should be effortless. With HDFC Bank, the efforts are
rewarding. No matter what a customer's need and occupational status, we
have a range of solutions that are second to none. Whether you're employed in
a company and need a simple Savings account or run your own business and
require a robust banking partner, HDFC Bank not only has the perfect solution
for you, but also can recommend products that can augment your planning for
the future.

It includes these services: -

 Saving accounts.
 Current accounts.
 Fix deposits.
 Demate account.
 Safe deposits lockers.
Savings Accounts

These accounts are primarily meant to inculcate a sense of saving for

the future, accumulating funds over a period of time. Whatever person’s
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occupation, bank have confident that person will find the perfect banking
solution. There some saving accounts like: -

Regular Saving Account:

An easy-to-operate savings account that allows you to issue cheques, draw

Demand Drafts and withdraw cash. Check up on your balances from the
comfort of your home or office through Net Banking, Phone Banking and
Mobile Banking. If you need money urgently then you can take money from
the ATM machine. There are 1977 ATM centers across the country.

Saving plus Account

Introducing the best banking option for you with HDFC Bank Savings
plus Account. Now you can get access to some of the finest banking facilities
with HDFC Bank's Savings plus Account. All you have to do is maintain an
Average Quarterly Balance of Rs. 10,000/-.

Saving Max Account

Welcome to a world of convenience. Presenting Savings Max account, loaded

with maximum benefits to make your banking experience a pleasure. By
maintaining an average quarterly balance of just Rs. 25,000/- you get a host of
premium services from HDFC Bank absolutely free.

Senior Citizen Account

HDFC Bank appreciates your needs and endeavors, which is why, they
present an account especially dedicated to customer, which like a dutiful child
will help you fulfill your needs in the best manner possible.

No frills Account
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 In an effort to make banking simpler and more accessible for customers,
bank has introduced the 'No Frills' Savings Account, which offers customer all
the basic banking facilities. Customer can even avail of services like Net
Banking, Mobile banking free of cost. In this customer can put Zero Initial
Pay-in and a Zero Balance account

Institutional saving accounts

A specially designed account that offers twin benefits of a savings as well as

a current account. Customer’s funds continue to earn you interest while he
enjoys hassle-free banking & a host of other features. All this and more in a
Zero Balance account.

Salary Accounts

In this account customer can get salary from where he/she doing such job and
organization or company at where the customer of the bank in doing job
deposit their salary in to the salary account a person can get salary.There are
various kinds of saving accounts in the HDFC Bank like: -

Pay roll account.

Classic salary account.

Regular salary account.

Premium salary account.

Defense salary account.

No frills salary account.

Reimbursement salary account.

Kid’s advantage account

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 Start saving for your child today and secure his/her future a sentence tells by
the Hdfc bank. Open a Savings Account and transfer money every month into
customer’s Kids Advantage Account and watch the savings grow as
customer’s child grows. The accumulated savings in the Kids Advantage
Account can over the years help in meeting customer child's needs.

Main features and benefits of this account are as follow:-

Current accounts

HDFC Bank Current Account gives the power of inter-city banking

with a single account and access to more than cities. From special cheques
that get treated at par with local ones in any city where branch, faster
collection of outstation cheques (payable at branch locations), free account to
account funds transfer between HDFC Bank accounts to Free inter-city
clearing of up to 100 lakhs per month, bank’s priority services have become
the benchmark for banking efficiency.

Now, with an HDFC Bank Current Account, experience the freedom of multi-
city banking. Person can have the power of multi-location access to his
account from any of our 761 branches in 327 cities. Not only that, he can do
most of his banking transactions from the comfort of his office or home
without stepping out.

There are various kinds of current account in this bank like: -

Plus current account

HDFC Bank plus Current Account gives the power of inter-city

banking with a single account and access to more than cities. Plus Current
Account requires maintaining an average quarterly balance of Rs. 100,000.

Trade current account

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 In today's changing business requirements, you need to transfer funds
across cities, and time is of the essence. HDFC Bank Trade Current Account
gives power of inter-city banking with a single account.

From special cheques that get treated at par with local ones in any city where
bank have a branch, to free account to account funds transfer between HDFC
Bank accounts, to free inter-city clearing of up to 50 lakhs per month, bank’s
priority services have become the benchmark for banking efficiency. Trade
Current Account requires maintaining an average quarterly balance of Rs.
40,000.

Premium current account

Business needs a partner who can manage finances while concentrate on

growing business. Form this account customer can avail benefits of inter-city
banking account that requires an average quarterly balance of only Rs. 25,000,
offers Payable-At-Par cheque book facility & FREE inter-city clearing
transactions across our network up to Rs.25 Lacs per month.

A Current Account with the benefits of accessing account from a large

network of branches, and through direct access channels - the phone, mobile,
Internet and through the ATM.

Regular current account

A Current account is ideal for carrying out day-to-day business

transactions. With the HDFC Bank Regular Current Account, customer can
access account anytime, anywhere, pay using payable at par cheques or
deposit cheque at any HDFC bank branch. It also facilitates FREE NEFT
transactions & FREE RTGS collections for faster collections in account.
Regular Current Account requires to maintain an average quarterly balance of
only Rs. 10,000. With a vast network of branches in cities all over the

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country, and access to a multitude of ATM's, customer can keep track of all
transactions anytime.

Reimbursement Current Account

No more paperwork, no more receipts to keep track of - a hassle-free

account that allows deposit the reimbursements receive from
company/organization on a monthly basis.

To open this account a person has to follow these processes:

Procure an Account Opening Document (AOD) from HDFC Bank. (If person
has just joined, first request to company to open up a Salary Account for
particular person).

Mention Salary Account number and Debit Card number on the AOD so that
Debit card can be linked to both, Salary Account as well as new
Reimbursement Account.

Request company to directly credit cash payments to the Reimbursement

Account.

RFC – Domestic Account

Full name of this account is Resident foreign currency account.

Have you accumulated foreign currency from travelling abroad frequently?

Received gifts from relatives in foreign currency? Or earned it by any other
means as approved by the Reserve Bank of India?

If so, open Resident Foreign Currency Domestic Account and manage foreign
currency efficiently. Person can choose to set up your account either in US
Dollar, Great Britain Pound or Euro.

To open this accounts a person as to follow this process: -

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Choose the currency in which person wish to operate. Open account with an
initial amount as per the following-US Dollar = 250 Great Britain Pound =
200 Euro = 250 and maintain an Average Quarterly Balance of the same
amount.

Flexi current account

Tired of static transaction limits during peak seasons? HDFC Bank Flexi
Current Account is the answer to changing banking needs during peak
seasons.

With HDFC Bank Flexi Current Account Cash Deposit and Anywhere
Transaction limits are a multiple of the balance you maintain in Current
Account. So, during peak seasons, customer get the benefit of higher
transaction limits due to the higher average balances maintained in account.
What’s more, during lean seasons, person need not worry about maintaining
huge balances to enjoy high transaction limits, which person anyway may not
need. Flexi Current Account requires to maintain a minimum Average
Monthly Balance (AMB) of just Rs. 75,000.

Apex current account

The top position is always the desirable position. With the Apex current
account, take business to a new high. On maintaining an average quarterly
balance of Rs. 10 lakhs, this account makes sure person make the most of
every business opportunities coming his way. Unlimited, free, anywhere
Banking experience at the APEX is reserved for person who joints this.

. Max current account

Maximum benefits and minimum hassles for customer with Max Current
Account with a Rs. 5 lakhs average quarterly balance requirement, bank
present to world of privileges that helps business expand and grow. Features

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like maximum free transaction limits including other beneficial features on
this current account truly enhances business potential to the Maximum.

Fix deposits service

Long-term investments form the chunk of everybody's future plans. An

alternative to simply applying for loans, fixed deposits allow to borrow from
own funds for a limited period, thus fulfilling needs as well as keeping
savings secure.

People can invest his/her money into either in security market or gold or
mutual fund or into a fix deposits. People always go to that way where he/she
can get more benefits and minimum risks. So, for this purpose he has a better
chance to deposits money in to the fix deposit.

If people believe in long-term investments and wish to earn higher interests on

his/her savings, now is the time to invest money in HDFC bank Fixed
Deposit. Get up to 9.75% on HDFC Bank Fixed Deposit with an additional
0.50% for Senior Citizens. What's more NO PENALTY if withdraw part of
the FD in times of need. Flexibility, Security and High Returns all bundled
into one offering.

Regular fix deposit

As per the rules and regulation of the bank a person can deposit their money
in to a fix deposit in the bank and can get the benefits of these facilities.

. Five year tax saving fix deposit

In 2006, it was announced for the first time that Bank fixed deposits booked
by an Individual/HUF for 5 years & up to Rs. 1,00,000/- will be allowed
exemption under Sec 80C of the Income Tax Act,1961 subject to necessary
declarations taken from the Customer.

. Super saver facility

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 Customer can enjoy a high rate of interest along with the liquidity of a
Savings Account by opting for a Super Saver Facility on his or her savings
account. Avail of an overdraft facility of up to 75% of the value of his or her
Fixed Deposit.

Sweep-in facility

Do you wish to avoid taking overdrafts, and still take advantage of your
Fixed Deposits? Then what you need is a Sweep-In Facility on savings
account. Link Fixed Deposit to Savings or Current Account and use it to fall
back on in case of emergencies. A deficit in Savings or Current Account is
taken care of by using up an exact value from Fixed Deposit. Since deposits
are broken down in units of Re 1/-, customer will lose interest only for the
actual amount that has been withdrawn.

.Demat account service

Nowadays share market is becoming is the main occupation of the person. So

to avoid faulty processes demat account is really most important for the share
market and for the safety of shares it is most important.

HDFC BANK is one of the leading Depository Participant (DP) in the country
with over 8 Lac demat accounts.

HDFC Bank Demat services offers a secure and convenient way to keep track
of securities and investments, over a period of time, without the hassle of
handling physical documents that get mutilated or lost in transit.

HDFC BANK is Depository participant both with -National Securities

Depositories Limited (NSDL) and Central Depository Services Limited
(CDSL).

Safe deposit locker

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 A Safe Deposit Locker with HDFC Bank is the solution to person’s fear.
Located at select branches in cities all over the country, bank’s lockers ensure
the safe keeping of valuables.

Eligibility

An individual (not minor), firms, limited company, associations, clubs, trusts,

societies, etc may hire a locker.

Advantages of safe deposit locker in HDFC bank

Wide Availability.

Lockers available in various sizes. i.e. Small, Medium, Large and Extra Large
with varying rents.

Lockers are rented out for a minimum period of one year. Rent is payable in
advance.

No deposits are required to avail a locker. Just open an account and get the
locker facility.

There is a nominal annual charge, which depends on the size of the locker and
the centre in which the branch is located.

Nomination for Safe Deposit Locker

The Lockers and their contents can be nominated to people near and dear to
you.

Nomination facility is available to individual hirer of Safe Deposit Locker.

In the case of a sole hirer of a safe deposit locker, nomination can be made in
favor of only one individual.

Where the safe deposit locker is hired in the name of a minor, the nomination
shall be made by a person lawfully entitled to act on behalf of the minor.

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Terms & Conditions

For obtaining a Locker at HDFC Bank you must be an account holder with
Bank.

Lockers can be allotted individually as well as jointly.

The Locker holder is permitted to add or delete names from the list of persons
who can operate the Locker and can have access to it.

Loss of Key is to be immediately informed to the concerned Branch.

Deposits

People who wish to save money for a longer period with a view to earn a
higher rate of interest seek to invest money in term deposit accounts which
guarantee higher interest rates. HDFC Bank also offers various types of
deposit accounts promising high interest rates for customers seeking deposit
accounts. Following are the deposit accounts available with the bank:

• Regular Fixed Deposit

• Recurring Deposit

• 5-year Tax Saving Fixed Deposit

• Safe Deposit Locker

• Rural Accounts –. There are 2 types of rural accounts available:

Basic Savings Bank Deposit Accounts – Farmers

Kissan Club Savings Accounts

Loans

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HDFC bank is a leader in home loan sector and also offers various other kinds
of loans at attractive interest rates for various needs of the individuals. The
following types of loans are available with the bank:

• Personal loan.

• Home loan.

• Vehicle loan- two wheeler/four wheeler

• Loan against asset.

• Government sponsored programs.

• Business loan.

• Gold loan.

• Educational loan.

• Rural loan.

Credit Cards

The bank has a wide range of credit cards for customers which provides
special offers and privileges on dining, movies, lounge access of airports, etc.
The cards also offer Reward Points on every spending made by the cardholder
which can be redeemed for attractive offers. The different types of Credit
Cards offered by the bank are as follows:

There are 3 variants under the Super Premium Variety which are:

• Insignia

• Regalia

• Diner’s Club Black

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Debit Cards

HDFC Bank offers Debit cards with every Savings Account to customers.
These cards provide great discounts and cash back on fuel, shopping, dining,
entertainment, etc. and are used across all outlets for payment. Following are
the debit cards issued by the bank :

• Easy Shop Platinum Debit Card

• Jet Privilege HDFC Bank World Debit Card

• Easy Shop Titanium Royale Debit Card

• Easy Shop Titanium Debit Card

• Easy Shop Debit Card

• Easy Shop Business Debit Card

• Easy Shop Women’s Advantage Debit Card

• Easy Shop NRO Debit Card

• Easy Shop Imperia Platinum Chip Debit Card

• Easy Shop Gold Debit Card

• RuPay Premium Debit Card

Demat Account

HDFC Bank issues Demat Account for investors like traders, long term
investors as well as beginners for a flexible and customized solution. The
demat account offered by the bank is safe and dependable for buying
and storing a customer’s equity investments, mutual funds, IPOs, ETF
Exchange Traded Funds like Gold and Index, bonds and NCDs.The account

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can also be opened online and the types of demat accounts offered are as
follows:

• Demat Account.

• 2 in 1 Account.

• 3 in 1 account.

Insurance

HDFC Bank offers both life and non-life products to its customers. The life
insurance products are issued in association with HDFC Life Insurance
Company Limited and the non-life insurance products are issued in
association with HDFC Ergo. The following are the heads of insurance and
their respective plans:

Life Insurance

The list of below mentioned plans range from term insurance, endowment
insurance and money-back plans to those of Unit Linked Insurance Plans
(ULIPs) for a complete insurance products basket for customers to choose
from.

Health Insurance

Health Insurance falls under the purview of general insurance and four types
of health insurance plans are offered by the bank which are as follows:

Health Suraksha – A health plan covering hospitalization, pre-and

post- hospitalization expenses, day care procedures, domiciliary treatment and
organ donor expenses. The coverage can be taken for an individual and his
family with treatments in a network of 4800+ hospitals.

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 Critical Illness Silver Plan – a health plan specifically designed for
treatment of critical illnesses covering 8 critical illnesses in its scope of
coverage

Critical Illness Platinum Plan – a critical illness plan which covers 15

critical illnesses and provides the benefit upon diagnosis of the covered illness

Individual Personal Accident Plan II – a personal accident plan which can

be taken for self and family and covers hospital expenses, injuries, disability
due to accident with a coverage range of 2.5 lakhs to 15 lakhs.

Motor Insurance

Motor insurance is offered to customers in partnership with HDFC Ergo and

there are two types of motor insurance plans available:

Commercial Vehicle Insurance – it provides comprehensive coverage for

your commercial vehicle across 1600+ network garages in India

Private Car Insurance– Insurance coverage for your private car with
cashless claim across 1600+ garages. Moreover the plan also gives discounts.

Two – Wheeler Insurance

It Is an insurance plan for your two-wheeler with a provision of cashless claim

across 1600+ network garages throughout the country.

Travel Insurance

It is an insurance plan for domestic and international travel be it for business

or leisure purposes. The plan covers emergency medical expenses, emergency

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medical evacuation, repatriation of remains, emergency dental expenses,
hospital cash, accidental death and permanent total disability while flying
in a common carrier, personal accident, flight delay, loss of baggage and
personal documents, delay of checked-in baggage, personal liability, financial
emergency assistance, contingency travel benefits and hijack distress
allowance.

Home Insurance

Insurance policy issued to protect the home as well as its contents. The plan
covers risk against fire, lightning, explosion, flood, inundation, storm, riot,
strike, earthquake, terrorism, burglary and theft with coverage for 1-5 years.

Forex

Now foreign exchange transactions have become easier with

HDFC Bank’s Forex Services. The bank offers foreign exchange services
from currency notes to Traveler’s Cheques and foreign travel cards to
remittances. So, whether the customer is a student travelling abroad for
higher studies or already studying abroad or remitting money for business
purposes, HDFC Bank is the answer to all foreign exchange related
services. The bank offers the following types of Forex services under
its purview.

Premium Banking

A customized banking experience for High Net Worth customers

where the bank provides a dedicated Relationship Manager for delivering
customized banking and investment solutions. The premium banking concept
has three programs which are as follows:

31
 Imperia – An Imperia Clients Relationship Manager is assigned to each
customer who offers personalized solutions for all of the customer’s financial
needs like financial products advice, advice on loan and other banking
products. The client gets exclusive Imperia Phone Banking Service,
relationship pricing, HDFC bank Premium Credit Card, HDFC Bank Imperia
Platinum Chip Debit Card etc.

Preferred – A dedicated Relationship Manager taking care of your

family’s banking needs, comprehensive business banking solutions like
business loans, working capital overdraft, commercial vehicle loans, forex
services, etc. The Preferred feature also offers relationship based pricing on
variety of products like loans, demat accounts, forex services, etc., premium
Credit Cards from HDFC Bank, Preferred Easy Shop Platinum Debit Card,
customized investment solutions across equities, derivatives, debts and
mutual funds and also banking convenience through HDFC branch and
ATM network, Phone Banking, Mobile Banking or Net Banking.

Classic – A dedicated personal banker for you and your family,

relationship based pricing on a number of products like loans, preferential
forex rates, Demat/HSL transactions cost and Locker, HDFC Bank Credit
Cards, Easy Shop Platinum Debit Card, combined monthly statement and e-
newsletter.

Private Banking

HDFC Bank’s team of expert Financial Advisors and Relationship

Managers are engaged in giving a premier banking experience to a select
group of individuals who qualify for private banking provided by the bank.
Customers are offered a variety of banking services and investment options
like direct equity, mutual funds, fixed income products, insurance, private
equity, structured products and real estate.

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Fund transfer – HDFC Bank allows various categories of Fund Transfer
options for safe and secure fund transfers which make banking easy. The fund
transfer options are:

i. E-Monies National Electronic Funds Transfer which is easy, fast

and convenient and supports fund transfers from any bank branch to any other
bank branch anywhere in India.

ii. RTGS Fund Transfer – Real Time Gross Settlement is the fastest form of
inter- bank fund transfer in real time which is speedier, faster and has no
geographical limits.

iii. Visa Card Pay - a facility used to pay multiple Visa Credit Card bills
issued by any bank form the comfort of one’s home and the payment is safe
and charges at a negligible fee.

iv. IMPS – Immediate Payment Service from HDFC Bank is an instant real
time inter- bank electronic fund transfer service which can be done even on
Sundays or Bank holidays or late at night.

Online Banking

Online banking is one of best way for customers to do day to day

transactions without reaching out any branch. It helps both the bank as well as
the customers in one or the other way. It saves time, money for both the
parties. The bank offers the facility of Online banking to its customers which
is safe and secure and user friendly too. Online banking service offered by
HDFC Bank includes:

Credit Card Net Banking - through this facility the customer can
view the credit card activities online, pay the credit card bills, view
Credit

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Card Statements online, know the unbilled transactions and get the complete
account information.

Email statements – a savings or a current accountholder are eligible to get

their account statements on their email id. The Savings accountholders get a
monthly statement and the Current Accountholders get daily, weekly or
monthly statements. The statements are free of cost and display all the
relevant transactions of the relevant period.

Loan accounts online – this feature enables the bank to provide post loan
services to the customers. Loan customers of the bank can log in and view
their loan summary, transaction history and loan account details.

Phone Banking

The bank extends banking information to your phone where information is

available at the end of a simple phone call. Phone banking services include:

Mobile Banking – by simply downloading the bank’s app on your smart

phone, you can avail of over 75 transactions. The application is secure and
fast.

Insta Alerts – SMS & Email – your account transactions also generate a
SMS or email alert where any debit transaction, credit transaction and
maintenance of account balance is alerted to the customer if registered.

Key Financials of HDFC

The shares are listed on the Bombay Stock Exchange Limited and The
National Stock Exchange of India Limited. The Bank's American Depository
Shares are listed on the New York Stock Exchange (NYSE) under the symbol

34
'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on
Luxembourg Stock.

HDFC bank has a net profit of 21,078.14 crore

4. Objectives of the study

We all know that world is approaching towards digital mode so we
must access where we are, digitally literate is highly appreciated in today
banking scenario. HDFC Bank has a strong digital platform for different
transactions.

The digital application of HDFC Bank like PAYZAPP, CHILLR with

Unified Payment Interface (UPI) and HDFC bank are very user friendly and
help their customers to save time and money for day to day transactions.

The project will be focused towards interacting with customers to

provide knowledge of different digital application and seek feedback from

35
them to know the satisfaction level, which will help to increase the digital
footprint.

The objective of the sip was to make the customers aware about the
various services being offered digitally, it also included convincing customers
to shift to digital banking from offline banking and physical branches.

The objective was also to tell them about various advantages of using
digital banking applications and help them to overcome their resistance
change and also to help the customers in doing digital banking from the
branch.

The objectives also included to make the customers aware about the
about the various products which they can buy online such as HDFC life
insurance, instant loans and various extra services such as car loan, two
wheeler loan which they can avail if they use the digital application platform.

The objective of my SIP was also to understand the process of approaching

customers and how to take their valuable time.

5.What is Digital Banking

Digital banking is the move to online banking where banking services
are delivered over the internet. The advantages for banks and customers are
providing more convenient and faster banking services. The shift from
traditional to digital banking has been gradual and should be rather described
in degrees of service digitization than through a categorization into yes and
no. It involves high levels of process automation and web-based services and
may include APIs enabling cross-institutional service composition to deliver
banking products and provide transactions. It provides the ability f or users to
access financial data through desktop, mobile and ATM services
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Digital banking is the digitization (or moving online) of all the traditional
banking activities and programs that historically were only available to
customers when physically inside of a bank branch. This includes activities
like:

• Third Party Transfers

• Checking/Saving Account Management

• Applying for Financial Products

• Loan Management

• Bill Pay

• Opening a Fixed or a Recurring deposit.

Benefits of digital banking to customers

The major benefit of digital banking to customers is 24/7 bank services
and availability through mobile or pc as well as there are smart banking
applications that allow all transactions to be completed from the device of
their choice, from beginning to end with clear instructions.

Customers have complete range of services available online some of which

are insurance services, instant loans, applying for international forex cards,
various investment options.

Customers no more would have to depend on the bank officials to get their
work done, they can do that same work with the help on digital banking.

37
Benefits of digital banking to banks
Digital banking helps the banks on cost saving, operating cost savings
between 20%-40% could be achieved with the help of digital banking. Cutting
costs has the positive effects on profits- they go up

Digital banking helps in increased accuracy as transactions from the bank a/c
can be tracked easily

With the help of digital banking branch can minimize its footfall of customers

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 Major Services offered online

Key Highlights Of HDFC Bank’s Digital Banking

Initiatives
HDFC Bank provides more than 200 services via Net Banking some of
which are online fund transfer; opening fixed deposits/recurring deposits,
address change, submitting of form 15g or 15h and many more such
services.
HDFC Bank PayZapp, a complete payment solution, giving you the power
to pay in just One Click. With PayZapp, you can shop on your mobile at
partner apps, buy movie tickets, groceries, compare and book flight tickets
and hotels, shop online and get great discounts at Smart Buy, send money
to anyone in your contact list or to your bank account, pay bills and

39
 recharge your mobile, DTH and data card and many more. You can link
your Debit and Credit Card, of any Bank, to PayZapp and enjoy the most
convenient and secure way of payment. Keeping in mind the connectivity
in rural areas, it has introduced an app called Mobile banking Lite app
which do not need an internet connection.Customers can themselves
update their adhar card number online with the help of digital banking and
need not stand in long queues. When a cheque book is requested online, it
gets delivered within three working days where as when physically applied
through branch takes 7 working days.

Digital Banking Initiatives of Other Banks which

HDFC has yet to cover
Axis Bank, ICICI Bank and Citibank supports websites like PayPal. HDFC
don’t support banking without 2 step authentication and PayPal do not
work that way. Few banks are facilitating payments through social media
whereas HDFC has yet to cover that segment.

HDFC has not yet started web alerts and notifications, like Axis Bank
although too many alerts can be frustrating but major notifications should
be displayed so that the customers don‘t miss the offer. Few banks are
innovating at a great speed like ICICI‘s Digital locker where one can
request for lockers online.

40
Uniqueness of HDFC Bank over others
The bank has plans to roll out physical robots at branches to help customers
make cash deposits, withdrawals, fixed deposits, etc.

Unlike banks that solely targeted deposits in semi-urban and rural areas,
HDFC Bank is exploring the rural markets both for assets (cattle loan,
agriculture credit) and liabilities (deposits).

HDFC Bank has actually come up with a location based, real time ATM fraud
detection method.

It provides continuous Account Statements; there are many banks which

provide statements on a monthly basis.

6.Challenges of digital banking

Preventing unauthorized transactions which is done by the customers

Maintaining integrity of customers transactions

People above the age 40 take time to adapt to the shift from physical banking
to digital banking.

Strongest competitor in public sector bank

State Bank of India (SBI) is fighting a long battle in the technology space. The
country's largest bank has managed to migrate about a tenth of its 280 million
customers to the internet platform. SBI plans to take its branch network to
41
17,260 by setting up 560 new branches during this fiscal, of which 200 will be
fully digitized. The facilities through these new-age digital branches include
instant opening of account, printing and issue of personalized debit card, and
expert advice on investment through videoconference.

A brief comparison of Digital Banking

features of HDFC and SBI
STATE BANK OF INDIA HDFC Bank

42
• Stands 8th among the most • Stands 19 among the most
visited website in India. visited website in India.

• It has 122 SBIin Touch • It has hu hu just launched one

branches(fully digital) fully digital branch in Pune.

• State Bank buddy is the mobile • It has Payzapp(mobile wallet)

wallet of SBI. and Chillr (a third party app).

• The mobile banking share of • Its share is 17.8%, 2nd largest

SBI is 35.97% of the total. in private sector.

• It has apps like SBI saral for • It provides personalized

small and medium customers and services to the wholesale
SBI anywhere for corporates in customers through relationship
the wholesale division. managers

• Sbi has a higher no. of branches • To provide faster cash it has

and ATMs in rural India. taken initiates like Milk to
Money in the rural belt.
• Total POS terminals issued is
302,119. • Total POS terminals issued is
283,274.
• It has 385 tech learning centers
for the customers. • It provides assistance to
customers through online demos
• It has SWAYAM-through
and clear guidelines in websites.
which customers can update
passbook on their own.

43
 Comparative analysis of top 3 private
sector bank
HDFC Bank ICICI BANK AXIS BANK

1. Largest Private Sector 1. 2nd Largest Private 1. 3rd Largest Private

Bank in terms of Assets sector Bank in terms sector bank in terms
of Assets
of Assets.

2. It has 4,729 Branches and 2. It has 2. It has 3300

12,259 ATMs. 4,203branches and Branches and 13,003
11,559 ATMs.
ATMs.

3. It has 12 Mobile Banking 3. It has 5 Mobile 3. It has 7 Mobile

Apps. Banking Apps. Banking Apps

4. India’s leading bank- 4. ICICI Bank was 4. Won Best use of

Private sector by Dun & the winner in the mobile within
Bradstreet BFSI awards ‘Service’ category
Loyalty strategy and

44
 2018. HDFC Bank’s of the MQH Best won for best reward
managing director, Mr. Practices program in the year
Aditya Puri, has been Competition
2017. Won the best
conferred the Lifetime organized by IMC
performing private
Achievement Award for Chamber of
bank and excellence
his contribution to Commerce &
banking. HDFC Bank Industry. Bank in corporate social
awarded best bank in the won an award in responsibility in
new private sector bank the ‘Smart Data 2016.
by the financial services Center’ category at
the Data Center
Dynamics (DCD)
Global Awards

5. Introduced schemes like 5. Introduced ICICI 5. First Indian bank

Milk to Money in rural
areas, introduced banking on Gujrat where all the
Bharat and Sustainable
Livelihood Program, first
Indian bank to introduce
robots in some branches in
Mumbai.
Digital village in to introduce a
dedicated innovation
transactions are
lab in the country.
cashless, introduced
Introduced ISIC
digital locker for safe
transfer of documents. Forex card for
students, it is the first
photo travel currency
card available in
many currencies

45
MICHAEL PORTER’S FIVE FORCES MODEL-
ANALYSIS OF BANKING SECTOR

46
 Five Forces Risk ( High/ Remarks
Medium/ Low

Threat of new entrants Low Entry in the banking sector

requires various approvals
from RBI and other financial
obligations are needed to be
fulfilled. Also huge capital
investment is required in the
initial stages. Therefore the risk
of entry of other banks in this
sector is low. Since both entry
and exit barrier is high
therefore profit is very high
along with high risk.

Bargaining Power of Medium Bargaining power of buyers is

high when they can pressurize
Buyers
the banks and are able to
control the prices , it is high
when differentiated services
are provided, since the banking
services provided are more or

47
 less same by all the banks
therefore the bargaining power
of buyers are neither high
neither very low

Bargaining Power of Very Low There are no suppliers in

banking sectors except in a few
Suppliers
products like mutual funds of
other banks and institutions
therefore the bargaining power
of suppliers is very low

Threat of Substitutes High The Banking services are also

provided by few private
institutions like there are many
microfinance companies and
many other easy loan providing
companies. Many institutions
accept deposits(e.g. Post
Office) and there are many
institutions for investments like
stock market, mutual funds etc.
The switching cost is also low
therefore the threat is high.

Threat of Intense High There are large number of

firms all having high market
Segment Rivalry
share, also the products and
services of the banks are
almost same therefore
differentiation is low hence the
rivalry is high. Also here the
switching cost to other banks is
low, which is also one of the
reasons for high rivalry among
the banks

48
 7.SWOT ANALYSIS
SWOT Analysis is a powerful technique for understanding your Strengths and
Weaknesses, and for looking at the Opportunities and Threats you face. Used
in a business context, it helps you carve a sustainable niche in your market.
Used in a personal context, it helps you develop your career in a way that
takes best advantage of your talents, abilities and opportunities.

SWOT ANALAYSIS OF HDFC BANK

49
 STRENGTH

 Right strategy for the right products.

 Superior customer service vs. competitors.
 Great Brand Image
 Products have required accreditations.
 High degree of customer satisfaction.
 Good place to work
50
 Lower response time with efficient and effective service.
 Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES

 Some gaps in range for certain sectors.

 Customer service staff need training.
 Processes and systems, etc
 Management cover insufficient.
 Sectoral growth is constrained by low unemployment levels and
competition for staff
OPPORTUNITIES

 Profit margins will be good.

 Could extend to overseas broadly.
 New specialist applications.
 Could seek better customer deals.
 Fast-track career development opportunities on an industry-wide basis.
 An applied research centre to create opportunities for developing
techniques to provide added-value services.

THREATS

 Legislation could impact.

 Great risk involved
 Very high competition prevailing in the industry.
 Vulnerable to reactive
 attack by major competitors
 Lack of infrastructure in rural areas could constrain investment.
 High volume/low cost market is intensely competitive.

51
KEY POINT

SWOT Analysis is a simple but powerful framework for analyzing company's

Strengths and Weaknesses, and the Opportunities and Threats you face. This
helps you to focus on your strengths, minimize threats, and take the greatest
possible advantage of opportunities available to you.

52
Financial analysis of the bank

53
 For 2019 Rs 15 is the proposed dividend

54
 8.QUESTIONARE

1. Are you satisfied by the digital service provided by HDFC ?

55
 Around 83% of customers are satisfied with the digital banking facilities while 17% are not
satisfied and want more improvement in different digital platforms.

2. What benefits are you getting using the digital platforms ?

From 83 respondents 70% find it is a service which is all time available, 30% find it keeps
people updated about the transaction happening in their account, 69% find it easy to do
payments, 88% find it low cost, 95% find it time saving.

56
3. What are the issues faced while using digital platform ?

People face problem while transacting through digital platform like transaction not complete
but their money got deducted, application error during transaction etc.

57
4. What all digital payment method are you aware of ?

58
 95% of them aware of debit/credit card digital method which is mostly use to add balance
in the e-wallet, while 76% and 80% of them know how to do NEFT and RTGS through
online banking.50% of customers knows Net banking and 45% knows mobile banking.

5. Is digital net banking platform user friendly ?

59
 Digital banking is user-friendly as 53% of respondent agrees and 26% agree to some extent

6. What features of Digital Wallet (Payzapp) do you use the most?

60
 However, 64% of Though digital banking services of HDFC Bank like net banking and
Payzapp services like paying utility bills & recharge, money transfers and booking movie,
train or flight tickets can be done instantly. the respondents are using PayTM for these
services which is not a good sign.

7. Do you find digital platform safe ?

61
 Banking transactions must be safe and secure. As shown above that 49% respondent agrees
and 30% agree to some extent. From this we can conclude that digital platform of HDFC
bank is safe and secure.

62
 8. Analysis of what services are used by the customers the most?

100%
20
90% 26
1 37
80% 45
18 60 7
70%
11 79 81
83 86
60% 18 2

50% 18
16
40% 18
73
30% 68
7 9 4
3
47 6 2 5 4
20% 41 1
27 23
10% 20 22 20

0%
Account Request Book Funds Bills Pay & Mutual Demat Insurance Loans
Summary Cheque RD/FD Transfer Recharge Funds
Book/DD

Use Regularly Use sometimes Use rarely Don’t us e

63
9. What key things you find attractive about the digital platform ?

From the above graph we can conclude that 82% of customers get attracted to digital mode
of payment due to cashless transaction and 75% due to cash back and offers,70% ,65% due
to virtual payment, fast and secure.

64
10.Will you recommend others to use HDFC digital platform ?

As shown in the above pie-chart 90% of customers will recommend others to use digital
platform rather than pen paper format for doing different transactions.

65
 9.Conclusion
The work basically involved helping the customers with their digital
banking transactions and convincing them to shift to digital banking instead of
doing it via the physical mode by explaining them the benefits of using digital
banking.

While dealing with the customers we faced various problems, different

customers had different perspective towards using digital services they had
various misconceptions about the services, like extra charges on being
digitally active, security issues etc. Best possible measures were taken to solve
the customers’ problems and clarify their doubts and if the problem was not
solved by us then carry forwarding the same to the senior officials and making
sure the customers were satisfied. Therefore it was great learning
opportunities for us observing the senior bankers solve the problems of the
customers.

The job also involved learning about the various products and services of the
bank and observing the bankers in charge of sales while they had a talk with
the customers. This helped us to learn the way of talking differently to
different customers and the way of customizing the service and products
according to the demand of the customers. The bankers had individual targets
and how they worked towards achieving it was a great learning point.

Although the branch allocated was small and had fewer walk-ins of customer
because of which the exposure experienced of different banking services was
low, but it also had few advantages, like directly talking to the customers and
approaching the bankers and learning from them by talking about their work.
In big and crowded branches the bankers always busy and it takes a lot of time
to seek their help.

66
Overall it was a great experience working in the banking sector especially in
one of the most respectable private sector bank. This internship has by all
means prepared us for the corporate world. The challenges we faced during
the entire internship and overcoming them will help us to serve better in the
corporate world in future.

67
 10.Recommendations
A digital banking tutorial should be given to the customers’ specially senior
citizens and the ones with lower familiarity with smartphones and computers.
So that they don’t hesitate to use digital banking services on their own they
should be explained about the benefits of using online services and how it is
more cost effective and time saving both to the customer and the bank so that
they start using it. They should also be educated about the safety measures
that they should be taking for protecting their accounts from being
compromised.

In the branch all the bankers whether from the operations department or from
the sales department all are allocated targets because of which they visit the
clients frequently. Therefore the targets for the operations department should
be more branch based so that they don’t have to leave their desk and visit
clients this hampers the customer service of the branch, few customers have to
wait for getting the banking services

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 11.Limitations of the Project
The branch allocated to me consist of major current account holders, therefore
number of bearers are more than the account holders

The customers need to have the required device and internet connection; also
they need to have a basic education to perform banking transactions online.

69
 12.Learning from the project
HDFC Bank is a place where targets are assigned to individuals and which has
to be completed within the stipulated time frame. I also learnt about many
products of HDFC bank, Various services which are provided to the
customers and also the digital part of HDFC how transactions take place
online, how easy it is to get a complex task done by just few clicks over the
mobile phones and computer screens .With the help of this project I learnt
how to deal with customers, provide them services, build trust and get our
targets achieved.

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 13.BIBLIOGRAPHY
www.HDFCbank.com

www.investopedia.com

www.moneycontrol.com

www.icicibank.com

www.axisbank.com

www.wikipedia.org

Annual reports of the following banks used:

HDFC BANK

ICICI BANK

AXIS BANK

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